PHILLIPS 66, 10-K filed on 2/21/2014
Annual Report
Document and Entity Information (USD $)
In Billions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Jan. 31, 2014
Jun. 28, 2013
Document and Entity Information [Abstract]
 
 
 
Trading Symbol
PSX 
 
 
Entity Registrant Name
Phillips 66 
 
 
Entity Central Index Key
0001534701 
 
 
Document Type
10-K 
 
 
Document Period End Date
Dec. 31, 2013 
 
 
Amendment Flag
false 
 
 
Document Fiscal Year Focus
2013 
 
 
Document Fiscal Period Focus
FY 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Common Stock, Shares Outstanding
 
587,624,299 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Public Float
 
 
$ 36.0 
Consolidated Statement of Income (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Revenues and Other Income
 
 
 
Sales and other operating revenues
$ 171,596 1 2
$ 179,290 1 2
$ 195,931 1 2
Equity in earnings of affiliates
3,073 
3,134 
2,843 
Net gain on dispositions
55 
193 
1,638 
Other income
85 
135 
45 
Total Revenues and Other Income
174,809 
182,752 
200,457 
Costs and Expenses
 
 
 
Purchased crude oil and products
148,245 
154,413 
172,768 
Operating expenses
4,206 
4,033 
4,071 
Selling, general and administrative expenses
1,478 
1,703 
1,394 
Depreciation and amortization
947 
906 
902 
Impairments
29 
1,158 
472 
Taxes other than income taxes
14,119 2
13,740 2
14,287 2
Accretion on discounted liabilities
24 
25 
21 
Interest and debt expense
275 
246 
17 
Foreign currency transaction gains
(40)
(28)
(34)
Total Costs and Expenses
169,283 
176,196 
193,898 
Income from continuing operations before income taxes
5,526 
6,556 
6,559 
Provision for income taxes
1,844 
2,473 
1,822 
Income from Continuing Operations
3,682 
4,083 
4,737 
Income from discontinued operations
61 3
48 3
43 3
Net income
3,743 
4,131 
4,780 
Less: net income attributable to noncontrolling interests
17 
7 
5 
Net Income Attributable to Phillips 66
3,726 
4,124 
4,775 
Amounts Attributable to Phillips 66 Common Stockholders:
 
 
 
Income from continuing operations
3,665 
4,076 
4,732 
Income from discontinued operations
$ 61 
$ 48 
$ 43 
Basic
 
 
 
Continuing operations
$ 5.97 4
$ 6.47 4
$ 7.54 4
Discontinued operations
$ 0.10 4
$ 0.08 4
$ 0.07 4
Net Income Attributable to Phillips 66 Per Share of Common Stock
$ 6.07 4
$ 6.55 4
$ 7.61 4
Diluted
 
 
 
Continuing operations
$ 5.92 4
$ 6.40 4
$ 7.45 4
Discontinued operations
$ 0.10 4
$ 0.08 4
$ 0.07 4
Net Income Attributable to Phillips 66 Per Share of Common Stock
$ 6.02 4
$ 6.48 4
$ 7.52 4
Dividends Paid Per Share of Common Stock (dollars)
$ 1.3275 
$ 0.4500 
$ 0.00 
Average Common Shares Outstanding (in thousands)
 
 
 
Basic (in shares)
612,918 3 4
628,835 3 4
627,628 3 4
Diluted (in shares)
618,989 4
636,764 4
634,645 4
Consolidated Statement of Income (Parenthetical) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Income Statement [Abstract]
 
 
 
Includes excise taxes on petroleum products sales
$ 13,866 
$ 13,371 
$ 13,955 
Net of provision for income taxes on discontinued operations
$ 34 
$ 27 
$ 22 
Consolidated Statement of Comprehensive Income (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Statement of Comprehensive Income [Abstract]
 
 
 
Net Income
$ 3,743 
$ 4,131 
$ 4,780 
Prior service cost/credit:
 
 
 
Prior service credit arising during the period
0 
18 
0 
Amortization to net income of prior service cost
0 
1 
0 
Actuarial gain/loss:
 
 
 
Actuarial gain (loss) arising during the period
401 
(152)
(8)
Amortization to net income of net actuarial loss
96 
55 
3 
Plans sponsored by equity affiliates
88 
(33)
(41)
Income taxes on defined benefit plans
(211)
18 
17 
Defined benefit plans, net of tax
374 
(93)
(29)
Income taxes on foreign currency translation adjustments
(21)
148 
28 
Income taxes on foreign currency translation adjustments
(2)
48 
(92)
Foreign currency translation adjustments, net of tax
(23)
196 
(64)
Hedging activities by equity affiliates
1 
1 
2 
Income taxes on hedging activities by equity affiliates
(1)
0 
(1)
Hedging activities by equity affiliates, net of tax
0 
1 
1 
Other Comprehensive Income (Loss), Net of Tax
351 
104 
(92)
Comprehensive Income
4,094 
4,235 
4,688 
Less: comprehensive income attributable to noncontrolling interests
17 
7 
5 
Comprehensive Income Attributable to Phillips 66
$ 4,077 
$ 4,228 
$ 4,683 
Consolidated Balance Sheet (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Assets
 
 
Cash and cash equivalents
$ 5,400 
$ 3,474 
Accounts and notes receivable (net of allowance of $47 million in 2013 and $50 million in 2012)
7,900 
8,593 
Accounts and notes receivable - related parties
1,732 
1,810 
Inventories
3,354 
3,430 
Prepaid expenses and other current assets
851 
655 
Total Current Assets
19,237 
17,962 
Investments and long-term receivables
11,220 
10,471 
Net properties, plants and equipment
15,398 1
15,407 1
Goodwill
3,096 
3,344 
Intangibles
698 
724 
Other assets
149 
165 
Total Assets
49,798 
48,073 
Liabilities
 
 
Accounts payable
9,948 
9,731 
Accounts payable - related parties
1,142 
979 
Short-term debt
24 
13 
Accrued income and other taxes
872 
901 
Employee benefit obligations
476 
441 
Other accruals
469 
417 
Total Current Liabilities
12,931 
12,482 
Long-term debt
6,131 
6,961 
Asset retirement obligations and accrued environmental costs
700 
740 
Deferred income taxes
6,125 
5,444 
Employee benefit obligations
921 
1,325 
Other liabilities and deferred credits
598 
315 
Total Liabilities
27,406 
27,267 
Equity
 
 
Common stock (2,500,000,000 shares authorized at $.01 par value) Issued (2013—634,285,955 shares; 2012—631,149,613 shares)
6 
6 
Capital in excess of par
18,887 
18,726 
Treasury stock (at cost: 2013—44,106,380 shares; 2012—7,603,896 shares)
(2,602)
(356)
Retained earnings
5,622 
2,713 
Accumulated other comprehensive income (loss)
37 
(314)
Total Stockholders' Equity
21,950 
20,775 
Noncontrolling interests
442 
31 
Total Equity
22,392 
20,806 
Total Liabilities and Equity
$ 49,798 
$ 48,073 
Consolidated Balance Sheet (Parenthetical) (USD $)
In Millions, except Share data, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Statement of Financial Position [Abstract]
 
 
Allowance for accounts and notes receivable
$ 47 
$ 50 
Common stock, shares authorized
2,500,000,000 
2,500,000,000 
Common stock, par value
$ 0.01 
$ 0.01 
Common stock, shares Issued
634,285,955 
631,149,613 
Treasury stock, shares
44,106,380 
7,603,896 
Consolidated Statement of Cash Flows (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Cash Flows From Operating Activities
 
 
 
Net income
$ 3,743 
$ 4,131 
$ 4,780 
Adjustments to reconcile net income to net cash provided by operating activities
 
 
 
Depreciation and amortization
947 
906 
902 
Impairments
29 
1,158 
472 
Accretion on discounted liabilities
24 
25 
21 
Deferred taxes
594 
221 
929 
Undistributed equity earnings
(354)
(872)
(951)
Net gain on dispositions
(55)
(193)
(1,638)
Income from discontinued operations
(61)1
(48)1
(43)1
Other
195 
71 
167 
Working capital adjustments
 
 
 
Decrease (increase) in accounts and notes receivable
481 
(132)
(189)
Decrease (increase) in inventories
38 
60 
620 
Decrease (increase) in prepaid expenses and other current assets
20 
(48)
28 
Increase (decrease) in accounts payable
360 
(985)
55 
Increase (decrease) in taxes and other accruals
(19)
(35)
(200)
Net cash provided by continuing operating activities
5,942 
4,259 
4,953 
Net cash provided by discontinued operations
85 
37 
53 
Net Cash Provided by Operating Activities
6,027 
4,296 
5,006 
Cash Flows From Investing Activities
 
 
 
Capital expenditures and investments
(1,779)
(1,701)
(1,016)
Proceeds from asset dispositions
1,214 
286 
2,627 
Advances/loans—related parties
(65)
(100)
0 
Collection of advances/loans—related parties
165 
0 
550 
Other
48 
0 
337 
Net cash provided by (used in) continuing investing activities
(417)
(1,515)
2,498 
Net cash provided by (used in) discontinued operations
(27)
(20)
(6)
Net Cash Provided by (Used in) Investing Activities
(444)
(1,535)
2,492 
Cash Flows From Financing Activities
 
 
 
Distributions to ConocoPhillips
0 
(5,255)
(7,471)
Issuance of debt
0 
7,794 
0 
Repayment of debt
(1,020)
(1,210)
(26)
Issuance of common stock
6 
47 
0 
Repurchase of common stock
(2,246)
(356)
0 
Dividends paid on common stock
(807)
(282)
0 
Distributions to noncontrolling interests
(10)
(5)
(1)
Net proceeds from issuance of Phillips 66 Partners LP common units
404 
0 
0 
Other
(6)
(34)
0 
Net cash provided by (used in) continuing financing activities
(3,679)
699 
(7,498)
Net cash provided by (used in) discontinued operations
0 
0 
0 
Net Cash Provided by (Used in) Financing Activities
(3,679)
699 
(7,498)
Effect of Exchange Rate Changes on Cash and Cash Equivalents
22 
14 
0 
Net Change in Cash and Cash Equivalents
1,926 
3,474 
0 
Cash and cash equivalents at beginning of year
3,474 
0 
0 
Cash and Cash Equivalents at End of Year
$ 5,400 
$ 3,474 
$ 0 
Consolidated Statement of Changes in Equity (USD $)
In Millions, except Share data, unless otherwise specified
Total
Par Value [Member]
Capital in Excess of Par [Member]
Treasury Stock [Member]
Retained Earnings [Member]
Net Parent Company Investment [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Noncontrolling Interests [Member]
Beginning Balance at Dec. 31, 2010
$ 26,026 
 
$ 0 
 
$ 0 
$ 25,787 
$ 214 
$ 25 
Net income
4,780 
 
 
 
 
4,775 
 
5 
Net transfers to/from ConocoPhillips
(7,420)
 
 
 
 
(7,420)
 
 
Other comprehensive income (Loss)
(92)
 
 
 
 
 
(92)
 
Distributions to noncontrolling interests and other
(1)
 
 
 
 
 
 
(1)
Ending Balance at Dec. 31, 2011
23,293 
 
0 
 
0 
23,142 
122 
29 
Net income
4,131 
 
 
 
2,999 
1,125 
 
7 
Net transfers to/from ConocoPhillips
(6,247)
 
 
 
 
(5,707)
(540)1
 
Other comprehensive income (Loss)
104 
 
 
 
 
 
104 
 
Reclassification of net parent company investment to capital in excess of par
 
 
18,560 
 
 
(18,560)
 
 
Issuance of common stock at the Separation
 
6 
(6)
 
 
 
 
 
Cash dividends paid on common stock
(282)
 
 
 
(282)
 
 
 
Repurchase of common stock
(356)
 
 
(356)
 
 
 
 
Benefit plan activity
 
 
172 
 
 
 
 
 
Benefit Plan activity
 
 
 
 
(4)
 
 
 
Benefit Plan Activity
168 
 
 
 
 
 
 
 
Distributions to noncontrolling interests and other
(5)
 
 
 
 
 
 
(5)
Shares
 
 
 
 
 
 
 
 
Issuance of common stock at the Separation, shares
625,272,000 
 
 
 
 
 
 
 
Repurchase of common stock, shares
7,604,000 
 
 
 
 
 
 
 
Shares issued - stock-based compensation
5,878,000 
 
 
 
 
 
 
 
Ending Balance at Dec. 31, 2012
20,806 
6 
18,726 
(356)
2,713 
0 
(314)
31 
Ending Balance, Treasury shares at Dec. 31, 2012
7,603,896 
 
 
 
 
 
 
 
Ending Balance, Common shares at Dec. 31, 2012
631,149,613 
 
 
 
 
 
 
 
Net income
3,743 
 
 
 
3,726 
0 
 
17 
Other comprehensive income (Loss)
351 
 
 
 
 
 
351 
 
Cash dividends paid on common stock
(807)
 
 
 
(807)
 
 
 
Repurchase of common stock
(2,246)
 
 
(2,246)
 
 
 
 
Benefit plan activity
 
 
164 
 
 
 
 
 
Benefit Plan activity
 
 
 
 
(10)
 
 
 
Benefit Plan Activity
154 
 
 
 
 
 
 
 
Issuance of Phillips 66 Partners LP common units
404 
 
 
 
 
 
 
404 
Adjustments to Additional Paid in Capital, Other
 
 
(3)
 
 
 
 
 
Distributions to noncontrolling interests and other
 
 
 
 
 
 
 
(10)
Minority Interest Decrease From Distributions To Noncontrolling Interest Holders And Adjustments To Additional Paid In Capital Other
(13)
 
 
 
 
 
 
 
Shares
 
 
 
 
 
 
 
 
Repurchase of common stock, shares
36,502,000 
 
 
 
 
 
 
 
Shares issued - stock-based compensation
3,136,000 
 
 
 
 
 
 
 
Ending Balance at Dec. 31, 2013
$ 22,392 
$ 6 
$ 18,887 
$ (2,602)
$ 5,622 
$ 0 
$ 37 
$ 442 
Ending Balance, Treasury shares at Dec. 31, 2013
44,106,380 
 
 
 
 
 
 
 
Ending Balance, Common shares at Dec. 31, 2013
634,285,955 
 
 
 
 
 
 
 
Separation and Basis of Presentation
Separation and Basis of Presentation
Separation and Basis of Presentation

The Separation
On April 4, 2012, the ConocoPhillips Board of Directors approved the separation of its downstream businesses (as defined below) into an independent, publicly traded company named Phillips 66. In accordance with the Separation and Distribution Agreement, the two companies were separated by ConocoPhillips distributing to its stockholders all 625,272,302 shares of common stock of Phillips 66 after the market closed on April 30, 2012 (the Separation). Each ConocoPhillips stockholder received one share of Phillips 66 stock for every two shares of ConocoPhillips stock held at the close of business on the record date of April 16, 2012. Following the Separation, ConocoPhillips retained no ownership interest in Phillips 66, and each company has separate public ownership, boards of directors and management.
  
Basis of Presentation
Prior to the Separation, our results of operations, financial position and cash flows consisted of ConocoPhillips' refining, marketing and transportation operations; its natural gas gathering, processing, transmission and marketing operations, primarily conducted through its equity investment in DCP Midstream, LLC (DCP Midstream); its petrochemical operations, conducted through its equity investment in Chevron Phillips Chemical Company LLC (CPChem); its power generation operations; and an allocable portion of its corporate costs (together, the “downstream businesses”). These financial statements have been presented as if the downstream businesses had been combined for all periods presented prior to the Separation. All intercompany transactions and accounts within the downstream businesses were eliminated. The statement of income for the periods prior to the Separation includes expense allocations for certain corporate functions historically performed by ConocoPhillips and not allocated to its operating segments, including allocations of general corporate expenses related to executive oversight, accounting, treasury, tax, legal, procurement and information technology. These allocations were based primarily on specific identification of time and/or activities associated with the downstream businesses, employee headcount or capital expenditures, and our management believes the assumptions underlying the allocations were reasonable. The combined financial statements may not necessarily reflect all of the actual expenses that would have been incurred had we been a stand-alone company during the periods presented prior to the Separation. All financial information presented after the Separation represents the consolidated results of operations, financial position and cash flows of Phillips 66. Accordingly:

•
Our consolidated statements of income, comprehensive income, cash flows and changes in equity for the year ended December 31, 2013, consist entirely of the consolidated results of Phillips 66. Our consolidated statements of income, comprehensive income, cash flows and changes in equity for the year ended December 31, 2012, consist of the consolidated results of Phillips 66 for the eight months ended December 31, 2012, and of the combined results of the downstream businesses for the four months ended April 30, 2012. Our consolidated statements of income, comprehensive income, cash flows and changes in equity for the year ended December 31, 2011, consist entirely of the combined results of the downstream businesses.

•
Our consolidated balance sheet at December 31, 2013 and 2012, consists of the consolidated balances of Phillips 66.

Effective January 1, 2013, we changed the organizational structure of the internal financial information reviewed by our chief executive officer, and determined this resulted in a change in the composition of our operating segments. The primary effects of this reporting reorganization were:

•
We disaggregated the former Refining and Marketing (R&M) segment into two separate operating segments titled "Refining" and "Marketing and Specialties."

•
We moved our Transportation and power businesses from the former R&M segment to the Midstream and Marketing and Specialties (M&S) segments, respectively.
Accounting Policies
Accounting Policies
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 either classified as available-for-sale if fair value is readily determinable, or the cost method is used 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, including realignment of our operating segments, as well as the movement of Phillips Specialty Products Inc. (PSPI) to discontinued operations. See Note 5—Assets Held for Sale or Sold for additional information.

▪
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 in stockholders' equity. Foreign currency transaction gains and losses are included 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 accounting principles generally accepted 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 net (i.e., on the same income statement line) in the "Purchased crude oil and products" line of our consolidated statement of income.

▪
Cash Equivalents—Cash equivalents are highly liquid, short-term investments that are readily convertible to known amounts of cash and have original maturities of 90 days or less from their date of purchase. They are carried at cost plus accrued interest, which approximates fair value.

▪
Shipping and Handling Costs—We record shipping and handling costs in purchased crude oil and products. Freight costs billed to customers are recorded as a component of revenue.

▪
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, but not unusual/nonrecurring costs or research and development costs. 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 observable inputs other than quoted prices included within Level 1 for the asset or liability, either directly or indirectly through market-corroborated inputs. Level 3 inputs are unobservable inputs for the asset or liability reflecting significant modifications to observable related market data or our assumptions about pricing by market participants.

▪
Derivative Instruments—Derivative instruments are recorded on the balance sheet at fair value. If the right of offset exists and certain other criteria are met, derivative assets and liabilities with the same counterparty are netted on the balance sheet and the collateral payable or receivable is netted 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. Gains and losses from derivatives not accounted for as hedges are recognized immediately in earnings. For derivative instruments that are designated and qualify as a fair value hedge, the gains or losses from adjusting the derivative to its fair value will be immediately recognized in earnings and, to the extent the hedge is effective, offset the concurrent recognition of changes in the fair value of the hedged item. Gains or losses from derivative instruments that are designated and qualify as a cash flow hedge or hedge of a net investment in a foreign entity are recognized in other comprehensive income and appear on the balance sheet in accumulated other comprehensive income until the hedged transaction is recognized in earnings; however, to the extent the change in the value of the derivative exceeds the change in the anticipated cash flows of the hedged transaction, the excess gains or losses will be recognized immediately in earnings.

▪
Capitalized Interest—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 underlying asset’s properties, plant and equipment and is amortized over the useful life of the assets.

▪
Intangible Assets Other Than Goodwill—Intangible assets with finite useful lives are amortized by 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. These indefinite-lived intangibles are considered impaired if the fair value of the intangible asset is lower than 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, fair value of intangible assets is determined based upon the present values of expected future cash flows using discount rates 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 resulting from a business combination is not amortized but is tested at least annually for impairment. If the fair value of a reporting unit is less than the recorded book value of the reporting unit’s assets (including goodwill), less liabilities, then a hypothetical purchase price allocation is performed on the reporting unit’s assets and liabilities using the fair value of the reporting unit as the purchase price in the calculation. If the amount of goodwill resulting from this hypothetical purchase price allocation is less than the recorded amount of goodwill, the recorded goodwill is written down to the new amount. For purposes of testing goodwill for impairment, we have three reporting units with goodwill balances, Transportation, Refining and M&S.

▪
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 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, the carrying value is written down to estimated fair value through additional amortization or depreciation provisions and reported in the "Impairment" line of 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—generally at an entire refinery complex level. Because there usually is a lack of quoted market prices for long-lived assets, the fair value of impaired assets is typically determined based on the present values of expected future cash flows using discount rates believed to be consistent with those used by principal market participants or based on a multiple of operating cash flows validated with historical market transactions of similar assets where possible. 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 believed to be consistent with those used by principal market participants, plus market analysis of comparable assets owned by the investee, 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 of 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—Fair value of legal obligations to retire and remove long-lived assets are recorded in the period in which the obligation is incurred. When the liability is initially recorded, we capitalize this cost by increasing the carrying amount of the related properties, plants and equipment. Over time, the liability is increased for the change in its present value, and the capitalized cost in properties, plants and equipment is depreciated over the useful life of the related asset. For additional information, see Note 10—Asset Retirement Obligations and Accrued Environmental Costs.

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 purchase 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—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 is essentially 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 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—We recognize stock-based compensation expense over the shorter of: (1) the service period (i.e., the 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, which is the minimum time required for an award to not be subject to forfeiture. We have elected to recognize expense on a straight-line basis over the service period for the entire award, whether the award was granted with ratable or cliff vesting.

▪
Income Taxes—For periods prior to the Separation, our taxable income was included in the U.S. federal income tax returns and in a number of state income tax returns of ConocoPhillips. In the accompanying consolidated financial statements for periods prior to the Separation, our provision for income taxes is computed as if we were a stand-alone tax-paying entity.

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 and loss and tax credit carryforwards. 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 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.
Variable Interest Entities (VIEs)
Variable Interest Entities (VIEs)
Variable Interest Entities (VIEs)

In 2013, we formed Phillips 66 Partners LP, a master limited partnership, to own, operate, develop and acquire primarily fee-based crude oil, refined petroleum product and NGL pipelines and terminals, as well as other transportation and midstream assets. We consolidate Phillips 66 Partners as we determined that Phillips 66 Partners is a VIE and we are the primary beneficiary. As general partner, we have the ability to control the financial interests, as well as the ability to direct the activities of Phillips 66 Partners that most significantly impact its economic performance. See Note 26—Phillips 66 Partners LP for additional information.

We hold significant variable interests in VIEs that have not been consolidated because we are not considered the primary beneficiary. Information on these VIEs follows:

Merey Sweeny, L.P. (MSLP) is a limited partnership that owns a delayed coker and related facilities at the Sweeny Refinery. As discussed more fully in Note 6—Investments, Loans and Long-Term Receivables, in August 2009 a call right was exercised to acquire the 50 percent ownership interest in MSLP of the co-venturer, Petróleos de Venezuela S.A. (PDVSA). That exercise has been challenged, and the dispute is being arbitrated. Because the exercise has been challenged by PDVSA, we continue to use the equity method of accounting for MSLP, and the VIE analysis below is based on the ownership and governance structure in place prior to the exercise of the call right. MSLP is a VIE because, in securing lender consents in connection with the Separation, we provided a 100 percent debt guarantee to the lender of the 8.85% senior notes issued by MSLP. PDVSA did not participate in the debt guarantee. In our VIE assessment, this disproportionate debt guarantee, plus other liquidity support provided jointly by us and PDVSA independently of equity ownership, results in MSLP not being exposed to all potential losses. We have determined we are not the primary beneficiary while the call exercise is in dispute because under the partnership agreement the co-venturers jointly direct the activities of MSLP that most significantly impact economic performance. At December 31, 2013, our maximum exposure to loss represented the outstanding principal debt balance of $214 million, and our investment of $109 million.

We have a 50 percent ownership interest with a 50 percent governance interest in Excel Paralubes (Excel). Excel is a VIE because, in securing lender consents in connection with the Separation, ConocoPhillips provided a 50 percent debt guarantee to the lender of the 7.43% senior secured bonds issued by Excel. We provided a full indemnity to ConocoPhillips for this debt guarantee. Our co-venturer did not participate in the debt guarantee. In our assessment of the VIE, this debt guarantee, plus other liquidity support up to $60 million provided jointly by us and our co-venturer independently of equity ownership, results in Excel not being exposed to all potential losses. We have determined we are not the primary beneficiary because we and our co-venturer jointly direct the activities of Excel that most significantly impact economic performance. We continue to use equity method accounting for this investment. At December 31, 2013, our maximum exposure to loss represented 50 percent of the outstanding principal debt balance of $116 million, or $58 million, half of the $60 million liquidity support, or $30 million, and our investment of $113 million.

During October 2013, we entered into a multi-year consignment fuels agreement with a marketer that we currently support with debt guarantees. Pursuant to the consignment fuels agreement, we own the fuels inventory, control the fuel marketing at each site, and pay a fixed monthly fee to the marketer. We determined the consignment fuels agreement and the debt guarantees together create a variable interest in the marketer with the marketer not being exposed to all potential losses. We determined we are not the primary beneficiary because we do not have the power to direct the activities that most significantly impact the economic performance of the marketer. We have no ownership interest in the marketer. Our maximum exposure to loss represented the outstanding debt balance of $190 million and the fixed annual contractual payments under the consignment fuels agreement of $80 million.
Inventories
Inventories
Inventories

Inventories at December 31 consisted of the following:
 
 
Millions of Dollars
 
2013

 
2012

 
 
 
 
Crude oil and petroleum products
$
3,093

 
3,138

Materials and supplies
261

 
292

 
$
3,354

 
3,430




Inventories valued on the LIFO basis totaled $2,945 million and $2,987 million at December 31, 2013 and 2012, respectively. The estimated excess of current replacement cost over LIFO cost of inventories amounted to approximately $7,600 million and $7,700 million at December 31, 2013 and 2012, respectively.

During each of the three years ending December 31, 2013, certain reductions in inventory caused liquidations of LIFO inventory values. These liquidations increased net income by approximately $109 million, $162 million and $155 million in 2013, 2012 and 2011, respectively.
Assets Held for Sale or Sold
Assets Held for Sale or Sold
Assets Held for Sale or Sold

Assets Sold
In August 2011, we sold our refinery in Wilhelmshaven, Germany, which had been operating as a terminal since the fourth quarter of 2009. The refinery was included in our Refining segment and at the time of disposition had a net carrying value of $211 million, which included $243 million of net properties, plants and equipment (PP&E). A $234 million before-tax loss was recognized from this disposition in 2011.

In October 2011, we sold Seaway Products Pipeline Company to DCP Midstream. The total carrying value of the asset, which was included in our Midstream segment, was $84 million, consisting of $55 million of net PP&E and $29 million of allocated goodwill. The sale resulted in a before-tax gain of $312 million, 50 percent of which was recognized in 2011, while the remaining 50 percent was deferred and will be amortized as an adjustment to equity in earnings. Amortization of this deferred gain began in 2013 following the commencement of operations of the Southern Hills pipeline. Approximately $2 million of the deferred gain was amortized in 2013. See Note 6—Investments, Loans and Long-Term Receivables for information about our investment in Southern Hills.

In December 2011, we sold our ownership interests in Colonial Pipeline Company and Seaway Crude Pipeline Company. The total carrying value of these assets, which were included in our Midstream segment, was $348 million, including $104 million of investment in equity affiliates and $244 million of allocated goodwill. A $1,661 million before-tax gain was recognized from these dispositions in 2011.

In June 2012, we sold our refinery located on the Delaware River in Trainer, Pennsylvania, for $229 million. The refinery and associated terminal and pipeline assets were primarily included in our Refining segment and at the time of the disposition had a net carrying value of $38 million, which included $37 million of net PP&E, $25 million of allocated goodwill and a $53 million asset retirement obligation. A $189 million before-tax gain was recognized from this disposition in 2012.

In November 2012, we sold the Riverhead Terminal located in Riverhead, New York, for $36 million. The terminal and associated assets were included in our Midstream segment and had a net carrying value of $34 million at the time of the disposition, which included $33 million of net PP&E and $1 million of inventory. A $2 million before-tax gain was recognized from this disposition in 2012.

In May 2013, we sold our E-Gas™ Technology business. The business was included in our M&S segment and at the time of disposition had a net carrying value of approximately $13 million, including a goodwill allocation. The $48 million before-tax gain was recognized from this disposition in 2013.

In July 2013, we sold our Immingham Combined Heat and Power Plant (ICHP), which was included in our M&S segment. At the time of the disposition, ICHP had a net carrying value of $762 million, which primarily included $724 million of net PP&E, $110 million of allocated goodwill, and $111 million of deferred tax liabilities. As of December 31, 2013, a before-tax gain of $375 million was deferred due to an indemnity provided to the buyer. A portion of the deferred gain is denominated in a foreign currency; accordingly, the amount of the deferred gain translated into U.S. dollars is subject to change based on currency fluctuations. Absent claims under the indemnity, the deferred gain will be recognized into earnings as our exposure under this indemnity declines.

Gains and losses recognized from asset sales, including sales of investments in unconsolidated entities and controlled assets that meet the definition of a business, are included in the “Net gain on dispositions” line in the consolidated statement of income, unless noted otherwise above.

Assets Held for Sale
On December 30, 2013, we entered into an agreement pursuant to which we will exchange PSPI, a flow improver business, which was included in our M&S segment, for shares of Phillips 66 common stock owned by the other party. We expect PSPI's balance sheet at closing to include approximately $450 million of cash and cash equivalents. The exact number of Phillips 66 shares to be delivered will be determined by reference to the volume weighted average price of Phillips 66 common stock on the closing date. Had the closing occurred on February 14, 2014, approximately 18 million shares would have been exchanged. The reacquired stock will be held as treasury shares. Following customary regulatory review, the transaction is expected to close in the first quarter of 2014. As of December 31, 2013, the net assets of PSPI are classified as held for sale and the results of operations of PSPI are reported as discontinued operations.

The carrying amounts of the major classes of assets and liabilities of PSPI, excluding allocated goodwill of $117 million, at December 31 are below. The 2013 amounts were reclassified to the “Prepaid expenses and other current assets” and “Other accruals” lines of our consolidated balance sheet.

 
Millions of Dollars
 
2013

 
2012

Assets
 
 
 
Accounts and notes receivable
$
24

 
23

Inventories
18

 
18

Total current assets of discontinued operations
42

 
41

Net properties, plants and equipment
58

 
42

Intangibles
6

 
6

Total assets of discontinued operations
$
106

 
89

 
 
 
 
Liabilities
 
 
 
Accounts payable and other current liabilities
$
18

 
8

Total current liabilities of discontinued operations
18

 
8

Deferred income taxes
12

 
7

Total liabilities of discontinued operations
$
30

 
15



Sales and other operating revenues and income from discontinued operations related to PSPI, were as follows:

 
Millions of Dollars
 
2013

 
2012

 
2011

 
 
 
 
 
 
Sales and other operating revenues from discontinued operations
$
232

 
180

 
167

 
 
 
 
 
 
Income from discontinued operations before-tax
$
95

 
75

 
65

Income tax expense
34

 
27

 
22

Income from discontinued operations
$
61

 
48

 
43

Investments, Loans and Long-Term Receivables
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
 
2013

 
2012

 
 
 
 
Equity investments
$
11,080

 
10,291

Long-term receivables
74

 
132

Other investments
66

 
48

 
$
11,220

 
10,471


Equity Investments
Affiliated companies in which we had a significant equity investment at December 31, 2013, included:
 
•
WRB Refining LP—50 percent owned business venture with Cenovus Energy Inc. (Cenovus)—owns the Wood River and Borger refineries.
•
DCP Midstream—50 percent owned joint venture with Spectra Energy Corp—owns and operates gas plants, gathering systems, storage facilities and fractionation plants.
•
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.
•
Malaysian Refining Company Sdn. Bdh. (MRC)—47 percent owned business venture with Petronas, the Malaysian state oil company—owns the Melaka, Malaysia refinery.
•
Rockies Express Pipeline LLC (REX)—25 percent owned joint venture with Tallgrass Energy Partners L.P. and Sempra Energy Corp.—owns and operates a natural gas pipeline system from Meeker, Colorado to Clarington, Ohio.
•
DCP Sand Hills Pipeline, LLC—33 percent owned joint venture with DCP Midstream and Spectra Energy—owns and operates NGL pipeline systems from the Permian and Eagle Ford basins to Mont Belvieu, Texas.
•
DCP Southern Hills Pipeline, LLC—33 percent owned joint venture with DCP Midstream and Spectra Energy—owns and operates NGL pipeline systems from the Midcontinent region to Mont Belvieu, Texas.
Summarized 100 percent financial information for all equity method investments in affiliated companies, combined, was as follows:
 
 
Millions of Dollars
 
2013

 
2012

 
2011

 
 
 
 
 
 
Revenues
$
59,500

 
55,401

 
59,044

Income before income taxes
5,975

 
6,265

 
6,083

Net income
5,838

 
6,122

 
5,742

Current assets
9,865

 
9,646

 
8,752

Noncurrent assets
40,188

 
37,269

 
34,329

Current liabilities
7,971

 
8,319

 
6,837

Noncurrent liabilities
9,959

 
9,251

 
10,279




Our share of income taxes incurred directly by the equity companies is included in equity in earnings of affiliates, and as such is not included in the provision for income taxes in our consolidated financial statements.

At December 31, 2013, retained earnings included $878 million related to the undistributed earnings of affiliated companies. Dividends received from affiliates were $2,752 million, $2,304 million and $2,209 million in 2013, 2012 and 2011, respectively.

WRB
WRB’s operating assets consist of the Wood River and Borger refineries, located in Roxana, Illinois, and Borger, Texas, respectively and 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’ property, plant and equipment at the closing date. In the third quarter of 2013, we increased our ownership interest in WRB to 50 percent by purchasing ConocoPhillips' 0.4 percent interest. At December 31, 2013, the book value of our investment in WRB was $3,475 million, and the basis difference was $3,555 million. Equity earnings in 2013, 2012 and 2011 were increased by $185 million, $180 million and $185 million, respectively, due to amortization of the basis difference. Cenovus is obligated to contribute $7.5 billion, plus accrued interest, to WRB over a 10-year period that began in 2007, of which $2.9 billion remains at December 31, 2013.

DCP Midstream
DCP Midstream owns and operates gas plants, gathering systems, storage facilities and fractionation plants. At December 31, 2013, the book value of our equity method investment in DCP Midstream was $1,335 million. DCP Midstream markets a portion of its NGL to us and CPChem under a supply agreement that continues at the current volume commitment with a primary term ending December 31, 2014. This purchase commitment is on an “if-produced, will-purchase” basis and so has no fixed production schedule, but has had, and is expected over the remaining term of the contract to have, a relatively stable purchase pattern. NGL are purchased under this agreement at various published market index prices, less transportation and fractionation fees.

CPChem
CPChem manufactures and markets petrochemicals and plastics. At December 31, 2013, the book value of our equity method investment in CPChem was $4,241 million. 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. Delivery quantities vary by product, and are generally on an “if-produced, will-purchase” basis. All products are purchased and sold under specified pricing formulas based on various published pricing indices.
MRC
MRC’s operating asset is a refinery in Melaka, Malaysia. The refinery operates in merchant mode in which each co-venturer sells crude oil to MRC and purchases the resulting refined product. At December 31, 2013, the book value of our equity method investment in MRC was $419 million. In the fourth quarter of 2012, we recorded a before-tax impairment of $564 million. See Note 9—Impairments, for additional information.
 
REX
REX owns a natural gas pipeline that runs from Meeker, Colorado to Clarington, Ohio, which became fully operational in November 2009. Long-term, binding firm commitments have been secured for virtually all of the pipeline’s capacity through 2019. At December 31, 2013, the book value of our equity method investment in REX was $250 million. During 2012, we recorded before-tax impairments totaling $480 million on this investment. See Note 9—Impairments, for additional information.

Sand Hills Pipeline
In the fourth quarter of 2012, we invested $234 million to acquire from DCP Midstream a one-third ownership in DCP Sand Hills Pipeline, LLC. In December 2012, the first phase of the Sand Hills pipeline, which extends from Eagle Ford into Mont Belvieu, Texas, was placed in service. The second phase of the project, with deliveries from the Permian Basin, was completed on schedule in the second quarter of 2013. At December 31, 2013, the book value of our equity investment in DCP Sand Hills Pipeline was $392 million.

Southern Hills Pipeline
In the fourth quarter of 2012, we invested $225 million to acquire from DCP Midstream a one-third ownership in DCP Southern Hills Pipeline, LLC. The Southern Hills pipeline, which is a reconfiguration of the former Seaway refined products line into an NGL pipeline, was completed on schedule in the second quarter of 2013 with service from the Midcontinent region to Mont Belvieu, Texas. In 2011, we sold our interest in Seaway Products Pipeline Company to DCP Midstream. The deferred gain on the sale of $156 million began amortizing in 2013 following the commencement of operations of the Southern Hills pipeline. At December 31, 2013, the book value of our investment in DCP Southern Hills was $157 million, and the basis difference was $161 million. Equity earnings in 2013 were increased by $2 million due to amortization of the basis difference.

Other
MSLP owns a delayed coker and related facilities at the Sweeny Refinery. MSLP processes long residue, which is produced from heavy sour crude oil, for a processing fee. Fuel-grade petroleum coke is produced as a by-product and becomes the property of MSLP. Prior to August 28, 2009, MSLP was owned 50/50 by ConocoPhillips and PDVSA. Under the agreements that govern the relationships between the partners, certain defaults by PDVSA with respect to supply of crude oil to the Sweeny Refinery triggered the right to acquire PDVSA’s 50 percent ownership interest in MSLP, which was exercised on August 28, 2009. PDVSA has initiated arbitration with the International Chamber of Commerce challenging the exercise of the call right and claiming it was invalid. The arbitral tribunal held hearings on the merits of the dispute in December 2012, and post-hearing briefs were exchanged in March 2013. A decision from the arbitral tribunal is expected in the first quarter of 2014.  Following the Separation, Phillips 66 generally indemnifies ConocoPhillips for liabilities, if any, arising out of the exercise of the call right or otherwise with respect to the joint venture or the refinery. We continue to use the equity method of accounting for our investment in MSLP.

Loans and Long-term Receivables
We enter into agreements with other parties to pursue business opportunities. Included in such activity are loans and long-term receivables 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.
In 2012, we entered into a market-based shareholder financing agreement for up to $100 million with the MRC. In the third quarter of 2013, MRC drew $65 million in funds and repaid the advance in December 2013. At December 31, 2013 and 2012, the balance on the facility was $0 and $100 million, respectively. Advances are recorded as a short-term related party advance with interest income recorded in equity earnings to offset the corresponding interest expense by MRC.
Properties, Plants and Equipment
Properties, Plants and Equipment
Properties, Plants and Equipment

Our investment in PP&E is recorded at cost. Investments in refining manufacturing facilities are generally depreciated on a straight-line basis over a 25-year life, and pipeline assets over a 45-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
 
2013
 
2012
 
Gross
PP&E

 
Accum.
D&A

 
Net
PP&E

 
Gross
PP&E

 
Accum.
D&A

 
Net
PP&E

 
 
 
 
 
 
 
 
 
 
 
 
Midstream
$
2,792

 
1,104

 
1,688

 
2,460

 
1,016

 
1,444

Chemicals
—

 
—

 
—

 
—

 
—

 
—

Refining
19,264

 
6,718

 
12,546

 
17,989

 
5,913

 
12,076

Marketing and Specialties
1,395

 
749

 
646

 
2,437

 
1,057

 
1,380

Corporate and Other
975

 
457

 
518

 
880

 
415

 
465

Discontinued Operations*
—

 
—

 
—

 
63

 
21

 
42

 
$
24,426

 
9,028

 
15,398


23,829


8,422

 
15,407


* At December 31, 2013, net PP&E of $58 million associated with discontinued operations was classified as current assets.
Goodwill and Intangibles
Goodwill and Intangibles
Goodwill and Intangibles

Goodwill
Effective January 1, 2013, we realigned our operating segments and determined that goodwill (which, prior to the realignment, had been assigned fully to our former R&M segment) should now be assigned to three of the realigned operating segments—Midstream, Refining and M&S. We further determined that, for the Midstream segment, Transportation constituted a reporting unit. For the Refining and M&S segments, we determined the goodwill reporting unit was at the operating segment level, due to the economic similarities of the components of those segments. Goodwill was reassigned to the realigned units using a relative fair value approach. See Note 5—Assets Held for Sale or Sold for information on goodwill allocated to assets held for sale or sold.

The carrying amount of goodwill was as follows:
 
 
Millions of Dollars
 
Midstream

 
Refining

 
Marketing and Specialties

 
Total

 
 
 
 
 
 
 
 
Balance at January 1, 2012
$
518

 
1,922

 
892

 
3,332

Goodwill allocated to assets sold
—

 
(25
)
 
—

 
(25
)
Tax and other adjustments
—

 
37

 
—

 
37

Balance at December 31, 2012
518

 
1,934

 
892

 
3,344

Tax and other adjustments
—

 
(15
)
 
—

 
(15
)
Goodwill allocated to assets held-for-sale or sold
—

 
—

 
(233
)
 
(233
)
Balance at December 31, 2013
$
518

 
1,919

 
659

 
3,096


Intangible Assets
Information at December 31 on the carrying value of intangible assets follows:
 
 
Millions of Dollars
 
Gross Carrying
Amount
 
2013

 
2012

Indefinite-Lived Intangible Assets
 
 
 
Trade names and trademarks
$
494

 
494

Refinery air and operating permits
200

 
207

 
$
694

 
701




At year-end 2013, our amortized intangible asset balance was $4 million, compared with $23 million at year-end 2012. Amortization expense was not material for 2013 and 2012, and is not expected to be material in future years.
Impairments
Impairments
Impairments

During 2013, 2012 and 2011, we recognized the following before-tax impairment charges:
 
 
Millions of Dollars
 
2013

 
2012

 
2011

 
 
 
 
 
 
Midstream
$
1

 
524

 
6

Refining
3

 
608

 
465

Marketing and Specialties
16

 
1

 
1

Corporate and Other
9

 
25

 
—

 
$
29

 
1,158

 
472



2013
We recorded impairments of $16 million in our M&S segment, primarily related to PP&E associated with our planned exit from the composite graphite business.

2012
We have a 47 percent interest in MRC, which is included in our Refining segment. Due to significantly lower estimated future refining margins in this region, driven primarily by assumed increases in future crude oil pricing over the long term, we determined that the fair value of our investment in MRC was lower than our carrying value, and that this loss in value was other than temporary. Accordingly, we recorded a $564 million impairment of our investment in MRC.

We have a 25 percent interest in REX, which is included in our Midstream segment. During 2012, marketing activities by a co-venturer that resulted in them recording an impairment charge and then subsequently selling their interest at an amount below our adjusted carrying value were determined to be indicators of impairment. After identifying these impairment indicators, we performed our own assessment of the fair value of our investment in REX. Based on these assessments, we concluded our investment in REX was impaired, and the decline in fair value was other than temporary. Accordingly, we recorded impairment charges totaling $480 million to write down the carrying amount of our investment in REX to fair value.

We recorded an impairment of $43 million on the Riverhead Terminal in our Midstream segment and a held-for-sale impairment of $42 million in our Refining segment related to equipment formerly associated with the canceled Wilhelmshaven Refinery upgrade project. See Note 5—Assets Held for Sale or Sold, for additional information. In addition, we recorded an impairment of $25 million on a corporate property.

2011
We recorded a $467 million impairment of our refinery and associated pipelines and terminals in Trainer, Pennsylvania. The impairment charge primarily related to the assets included in our Refining segment. In June 2012, we sold the Trainer Refinery and associated pipeline and terminal assets.
Asset Retirement Obligations and Accrued Environmental Costs
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
 
2013

 
2012

 
 
 
 
Asset retirement obligations
$
309

 
314

Accrued environmental costs
492

 
530

Total asset retirement obligations and accrued environmental costs
801

 
844

Asset retirement obligations and accrued environmental costs due within one year*
(101
)
 
(104
)
Long-term asset retirement obligations and accrued environmental costs
$
700

 
740

*Classified as a current liability on the balance sheet, under the caption “Other accruals.”


Asset Retirement Obligations
We have asset removal 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 will be funded from general company resources at the time of removal. Our largest individual obligations involve asbestos abatement at refineries.
During 2013 and 2012, our overall asset retirement obligation changed as follows:
 
 
Millions of Dollars
 
2013

 
2012

 
 
 
 
Balance at January 1
$
314

 
378

Accretion of discount
11

 
13

New obligations
3

 
3

Changes in estimates of existing obligations
12

 
(14
)
Spending on existing obligations
(13
)
 
(16
)
Property dispositions
(20
)
 
(53
)
Foreign currency translation
2

 
3

Balance at December 31
$
309

 
314




Accrued Environmental Costs
Total accrued environmental costs at December 31, 2013 and 2012, were $492 million and $530 million, respectively. The 2013 decrease in total accrued environmental costs is due to payments and settlements during the year exceeding new accruals, accrual adjustments and accretion.

We had accrued environmental costs at December 31, 2013 and 2012, of $255 million and $271 million, respectively, primarily related to cleanup at domestic refineries and underground storage tanks at U.S. service stations; $184 million and $203 million, respectively, associated with nonoperator sites; and $53 million and $56 million, respectively, where the company has been named a potentially responsible party under the Federal Comprehensive Environmental Response, Compensation and Liability Act, or similar state laws. Accrued environmental liabilities are expected to be paid over periods extending up to 30 years. Because a large portion of the accrued environmental costs were acquired in various business combinations, they are discounted obligations. Expected expenditures for acquired environmental obligations are discounted using a weighted-average 5 percent discount factor, resulting in an accrued balance for acquired environmental liabilities of $258 million at December 31, 2013. The expected future undiscounted payments related to the portion of the accrued environmental costs that have been discounted are: $25 million in 2014, $29 million in 2015, $28 million in 2016, $28 million in 2017, $26 million in 2018, and $183 million for all future years after 2018.
Earnings Per Share
Earnings Per Share
Earnings Per Share

The numerator of basic earnings per share (EPS) is net income attributable to Phillips 66, reduced by noncancelable dividends paid on unvested share-based employee awards during the vesting period (participating securities). The denominator of basic EPS is the sum of the daily weighted-average number of common shares outstanding during the periods presented and fully vested stock and unit awards that have not yet been issued as common stock. The numerator of diluted EPS is also based on net income attributable to Phillips 66, which is reduced only by dividend equivalents paid on participating securities for which the dividends are more dilutive than the participation of the awards in the earnings of the periods presented. To the extent unvested stock, unit or option awards and vested unexercised stock options are dilutive, they are included with the weighted-average common shares outstanding in the denominator. Treasury stock is excluded from the denominator in both basic and diluted EPS.

On April 30, 2012, 625.3 million shares of our common stock were distributed to ConocoPhillips stockholders in conjunction with the Separation. For comparative purposes, and to provide a more meaningful calculation of weighted-average shares outstanding, we have assumed this amount to be outstanding as of the beginning of each period prior to the Separation presented in the calculation of weighted-average shares. In addition, we have assumed the fully vested stock and unit awards outstanding at April 30, 2012, were also outstanding for each of the periods presented prior to the Separation; and we have assumed the dilutive securities outstanding at April 30, 2012, were also outstanding for each period prior to the Separation.
 
2013
 
2012
 
2011
 
Basic
Diluted
 
Basic
Diluted
 
Basic
Diluted
Amounts attributed to Phillips 66 Common Stockholders (millions):
 
 
 
 
 
 
 
 
Income from continuing operations attributable to Phillips 66
$
3,665

3,665

 
4,076

4,076

 
4,732

4,732

Income allocated to participating securities
(5
)
—

 
(2
)
—

 
—

—

Income from continuing operations available to common stockholders
3,660

3,665

 
4,074

4,076

 
4,732

4,732

Discontinued operations
61

61

 
48

48

 
43

43

Net income available to common stockholders
$
3,721

3,726

 
4,122

4,124

 
4,775

4,775

 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding (thousands):
612,918

612,918

 
628,835

628,835

 
627,628

627,628

Dilutive effect of stock-based compensation
—

6,071

 
—

7,929

 
—

7,017

Weighted-average common shares outstanding
612,918

618,989

 
628,835

636,764

 
627,628

634,645

 
 
 
 
 
 
 
 
 
Earnings Per Share of Common Stock (dollars):
 
 
 
 
 
 
 
 
Income from continuing operations attributable to Phillips 66
$
5.97

5.92

 
6.47

6.40

 
7.54

7.45

Discontinued operations
0.10

0.10

 
0.08

0.08

 
0.07

0.07

Earnings Per Share
$
6.07

6.02

 
6.55

6.48

 
7.61

7.52

Debt
Debt
Debt

Long-term debt at December 31 was:
 
 
Millions of Dollars
 
2013

 
2012

 
 
 
 
1.95% Senior Notes due 2015
$
800

 
800

2.95% Senior Notes due 2017
1,500

 
1,500

4.30% Senior Notes due 2022
2,000

 
2,000

5.875% Senior Notes due 2042
1,500

 
1,500

Industrial Development Bonds due 2018 through 2021 at 0.05%-0.07%
 at year-end 2013 and 0.09%–0.23% at year-end 2012
50

 
50

Term loan due 2014 through 2015 at 1.465% at year-end 2012
—

 
1,000

Note payable to Merey Sweeny, L.P. due 2020 at 7% (related party)
110

 
122

Other
1

 
1

Debt at face value
5,961

 
6,973

Capitalized leases
199

 
6

Net unamortized premiums and discounts
(5
)
 
(5
)
Total debt
6,155

 
6,974

Short-term debt
(24
)
 
(13
)
Long-term debt
$
6,131

 
6,961




Maturities of long-term borrowings, inclusive of net unamortized premiums and discounts, in 2014 through 2018 are: $24 million, $823 million, $23 million, $1,525 million and $37 million, respectively.

We had no material scheduled debt maturities in 2013; however, in 2013, we prepaid the $1 billion outstanding balance on our term loan. During 2013, we entered into a capital lease which resulted in $189 million of debt being included on the balance sheet at December 31, 2013. For additional information on our capital leases, see Note 18—Leases.

Credit Facilities
During the second quarter of 2013, we amended our revolving credit agreement by entering into the First Amendment to Credit Agreement (Amendment). The Amendment increased the borrowing capacity from $4.0 billion to $4.5 billion, extended the maturity from February 2017 to June 2018, reduced the margin applied to interest and fees accruing on and after the Amendment effective date, and made certain amendments with respect to Phillips 66 Partners LP. No amount has been drawn under this facility. However, as of December 31, 2013, $51 million in letters of credit had been issued that were supported by this facility.

The revolving credit agreement 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 credit agreement will incur interest at the London Interbank Offered Rate (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 revolving credit agreement also provides for customary fees, including administrative agent fees and commitment fees.

On June 7, 2013, Phillips 66 Partners entered into a senior unsecured $250 million revolving credit agreement (Revolver) with a syndicate of financial institutions, which became effective upon its initial public offering of common units on July 26, 2013. Phillips 66 Partners has the option to increase the overall capacity of the Revolver by up to an additional $250 million, subject to certain conditions. The Revolver has an initial term of five years. As of December 31, 2013, no amount had been drawn under this facility.

Trade Receivables Securitization Facility
During the second quarter of 2013, we amended our trade receivables securitization facility by entering into the First Amendment to Receivables Purchase Agreement (Securitization Amendment). The Securitization Amendment decreased the borrowing capacity from $1.2 billion to $696 million and made certain amendments with respect to Phillips 66 Partners. As of December 31, 2013, no amount had been drawn under the facility, but $26 million in letters of credit had been issued that were collateralized by trade receivables held by the subsidiary under this facility.
Guarantees
Guarantees
Guarantees

At December 31, 2013, we were liable for certain contingent obligations under various contractual arrangements as described below. We recognize a liability, at inception, for the fair value of our obligation as a guarantor for newly issued or modified guarantees. Unless the carrying amount of the liability is noted below, we have not recognized a liability either because the guarantees were issued prior to December 31, 2002, or because the fair value of the obligation is immaterial. In addition, unless otherwise stated we are not currently performing with any significance under the guarantee and expect future performance to be either immaterial or have only a remote chance of occurrence.

Guarantees of Joint Venture Debt
In April 2012, in connection with the Separation, we issued a guarantee for 100 percent of the 8.85% senior notes issued by MSLP in July 1999. At December 31, 2013, the maximum potential amount of future payments to third parties under the guarantee is estimated to be $214 million, which could become payable if MSLP fails to meet its obligations under the senior notes agreement. The senior notes mature in 2019.

At December 31, 2013, we had other guarantees outstanding for our portion of certain joint venture debt obligations, which have terms of up to 12 years. The maximum potential amount of future payments under the guarantees is approximately $103 million. Payment would be required if a joint venture defaults on its debt obligations.

Other Guarantees
We have residual value guarantees associated with leases with maximum future potential payments totaling approximately $228 million. We have other guarantees with maximum future potential payment amounts totaling $305 million, which consist primarily of guarantees to fund the short-term cash liquidity deficits of certain joint ventures, guarantees of third parties related to prior asset dispositions, and guarantees of the lease payment obligations of a joint venture. These guarantees generally extend up to 11 years or life of the venture.

Indemnifications
Over the years, we have entered into various agreements to sell ownership interests in certain corporations, joint ventures and assets that gave rise to qualifying indemnifications. Agreements associated with these sales include indemnifications for taxes, litigation, environmental liabilities, permits and licenses, supply arrangements, and employee claims, and real estate indemnity against tenant defaults. The terms of these indemnifications vary greatly. The majority of these indemnifications are related to environmental issues, the term is generally indefinite, and the maximum amount of future payments is generally unlimited. The carrying amount recorded for indemnifications at December 31, 2013, was $246 million. We amortize the indemnification liability over the relevant time period, if one exists, based on the facts and circumstances surrounding each type of indemnity. In cases where the indemnification term is indefinite, we will reverse the liability when we have information the liability is essentially relieved or amortize the liability over an appropriate time period as the fair value of our indemnification exposure declines. Although it is reasonably possible future payments may exceed amounts recorded, due to the nature of the indemnifications, it is not possible to make a reasonable
estimate of the maximum potential amount of future payments. Included in the recorded carrying amount were $112 million of environmental accruals for known contamination that are included in asset retirement obligations and accrued environmental costs at December 31, 2013. For additional information about environmental liabilities, see Note 14—Contingencies and Commitments.

Indemnification and Release Agreement
In conjunction with, and effective as of, the Separation, we entered into the Indemnification and Release Agreement with ConocoPhillips. This agreement governs the treatment between ConocoPhillips and us of 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
Contingencies and Commitments

A number of lawsuits involving a variety of claims have been made against us in connection with matters that arise in the ordinary course of business. We also may be required to remove or mitigate the effects on the environment of the placement, storage, disposal or release of certain chemical, mineral and petroleum substances at various active and inactive sites. We regularly assess the need for accounting recognition or disclosure of these contingencies. In the case of all known contingencies (other than those related to income taxes), we accrue a liability when the loss is probable and the amount is reasonably estimable. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. We do not reduce these liabilities for potential insurance or third-party recoveries. If applicable, we record receivables for probable insurance or other third-party recoveries. In the case of income-tax-related contingencies, we use a cumulative probability-weighted loss accrual in cases where sustaining a tax position is less than certain. See Note 20—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 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 that is available at the time. We measure estimates and base liabilities on currently available facts, existing technology, and presently enacted laws and regulations, taking into account stakeholder and business considerations. When measuring environmental liabilities, we also consider our prior experience in remediation of contaminated sites, other companies’ cleanup experience, and data released by the U.S. Environmental Protection Agency (EPA) or other organizations. We consider unasserted claims in our determination of environmental liabilities, and we accrue them in the period they are both probable and reasonably estimable.

Although liability of those potentially responsible for environmental remediation costs is generally joint and several for federal sites and frequently so for state sites, we are usually only one of many companies cited at a particular site. Due to such joint and several liabilities, we could be responsible for all cleanup costs related to any site at which we have been designated as a potentially responsible party. We have been successful to date in sharing cleanup costs with other financially sound companies. Many of the sites at which we are potentially responsible are still under investigation by
the EPA or the state agencies concerned. Prior to actual cleanup, those potentially responsible normally assess the site conditions, apportion responsibility and determine the appropriate remediation. In some instances, we may have no liability or may attain a settlement of liability. Where it appears that other potentially responsible parties may be financially unable to bear their proportional share, we consider this inability in estimating our potential liability, and we adjust our accruals accordingly. As a result of various acquisitions in the past, we assumed certain environmental obligations. Some of these environmental obligations are mitigated by indemnifications made by others for our benefit and some of the indemnifications are subject to dollar and time limits.

We are currently participating in environmental assessments and cleanups at numerous federal Superfund and comparable state sites. After an assessment of environmental exposures for cleanup and other costs, we make accruals on an undiscounted basis (except those acquired in a purchase business combination, which we record on a discounted basis) for planned investigation and remediation activities for sites where it is probable future costs will be incurred and these costs can be reasonably estimated. 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. This process also enables us to track those cases that have been scheduled for trial and/or mediation. Based on professional judgment and experience in using these litigation management tools and available information about current developments in all our cases, our legal organization regularly assesses the adequacy of current accruals and determines if adjustment of existing accruals, or establishment of new accruals, is required.

Other Contingencies
We have contingent liabilities resulting from throughput agreements with pipeline and processing companies not associated with financing arrangements. Under these agreements, we may be required to provide any such company with additional funds through advances and penalties for fees related to throughput capacity not utilized.

At December 31, 2013, we had performance obligations secured by letters of credit of $822 million (of which $26 million was issued under the trade receivables securitization facility, $51 million was issued under the provisions of our revolving credit facility, and the remainder was issued as direct bank letters of credit) 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 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: 2014—$338 million; 2015—$338 million; 2016—$338 million; 2017—$338 million; 2018—$338 million; and 2019 and after—$4,063 million. Total payments under the agreements were $342 million in 2013, $358 million in 2012 and $300 million in 2011.
Derivatives and Financial Instruments
Derivatives and Financial Instruments
Derivatives and Financial Instruments

Derivative Instruments
We use financial and commodity-based derivative contracts to manage exposures to fluctuations in foreign currency exchange rates and commodity prices or to capture market opportunities. Since we are not currently using cash-flow hedge accounting, all gains and losses, realized or unrealized, from commodity derivative contracts have been recognized in the consolidated statement of income. Gains and losses from derivative contracts held for trading not directly related to our physical business, whether realized or unrealized, have been reported net in “Other income” on our consolidated statement of income. Cash flows from all our derivative activity for the periods presented appear in the operating section of the consolidated statement of cash flows.

Purchase and sales contracts with fixed minimum notional volumes for commodities that are readily convertible to cash (e.g., crude oil and gasoline) are recorded on the balance sheet as derivatives unless the contracts are eligible for, and we elect, the normal purchases and normal sales exception (i.e., contracts to purchase or sell quantities we expect to use or sell over a reasonable period in the normal course of business). We generally apply this normal purchases and normal sales exception to eligible crude oil, refined product, natural gas and power commodity purchase and sales contracts; however, we may elect not to apply this exception (e.g., when another derivative instrument will be used to mitigate the risk of the purchase or sales contract but hedge accounting will not be applied, in which case both the purchase or sales contract and the derivative contract mitigating the resulting risk will be recorded on the balance sheet at fair value). Our derivative instruments are held at fair value on our consolidated balance sheet. For further information on the fair value of derivatives, see Note 16—Fair Value Measurements.

Commodity Derivative Contracts—We operate in the worldwide crude oil, refined products, NGL, natural gas and electric power markets and are exposed to fluctuations in the prices for these commodities. These fluctuations can affect our revenues, as well as the cost of operating, investing and financing activities. Generally, our policy is to remain exposed to the market prices of commodities; however, we use futures, forwards, swaps and options in various markets to balance physical systems, meet customer needs, manage price exposures on specific transactions, and do a limited, immaterial amount of trading not directly related to our physical business. We also use the market knowledge gained from these activities to capture market opportunities such as moving physical commodities to more profitable locations, storing commodities to capture seasonal or time premiums, and blending commodities to capture quality upgrades. Derivatives may be used to optimize these activities, which may move our risk profile away from market average prices.

The following table indicates the balance sheet line items that include the fair values of commodity derivative assets and liabilities presented net (i.e., commodity derivative assets and liabilities with the same counterparty are netted where the right of setoff exists); however, the balances in the following table are presented gross. For information on the impact of counterparty netting and collateral netting, see Note 16—Fair Value Measurements.

 
Millions of Dollars
 
2013

 
2012

Assets
 
 
 
Accounts and notes receivable
$
2

 
—

Prepaid expenses and other current assets
592

 
767

Other assets
2

 
3

Liabilities
 
 
 
Other accruals
633

 
766

Other liabilities and deferred credits
1

 
3

Hedge accounting has not been used for any item in the table.


The gains (losses) from commodity derivatives incurred, and the line items where they appear on our consolidated statement of income were:
 
 
Millions of Dollars
 
2013

 
2012

 
2011

 
 
 
 
 
 
Sales and other operating revenues
$
17

 
3

 
(620
)
Equity in earnings of affiliates
(19
)
 
6

 
—

Other income
3

 
39

 
12

Purchased crude oil and products
95

 
32

 
162

Hedge accounting has not been used for any item in the table.


The following table summarizes our material net exposures resulting from outstanding commodity derivative contracts. These financial and physical derivative contracts are primarily used to manage price exposure on our underlying operations. The underlying exposures may be from non-derivative positions such as inventory volumes. Financial derivative contracts may also offset physical derivative contracts, such as forward sales contracts. As of each of December 31, 2013, and December 31, 2012, the percentage of our derivative contract volume expiring within the next 12 months was over 99 percent for both periods.
 
 
Open Position
Long / (Short)
 
2013

 
2012

Commodity
 
 
 
Crude oil, refined products and NGL (millions of barrels)
(9
)
 
(8
)



Credit Risk
Financial instruments potentially exposed to concentrations of credit risk consist primarily of over-the-counter (OTC) derivative contracts and trade receivables.

The credit risk from our OTC derivative contracts, such as forwards and swaps, derives from the counterparty to the transaction. Individual counterparty exposure is managed within predetermined credit limits and includes the use of cash-call margins when appropriate, thereby reducing the risk of significant nonperformance. We also use futures, swaps and option contracts that have a negligible credit risk because these trades are cleared with an exchange clearinghouse and subject to mandatory margin requirements until settled; however, we are exposed to the credit risk of those exchange brokers for receivables arising from daily margin cash calls, as well as for cash deposited to meet initial margin requirements.

Our trade receivables result primarily from the sale of products from, or related to, our refinery operations and reflect a broad national and international customer base, which limits our exposure to concentrations of credit risk. The majority of these receivables have payment terms of 30 days or less. We continually monitor this exposure and the creditworthiness of the counterparties and recognize bad debt expense based on historical write-off experience or specific counterparty collectability. Generally, we do not require collateral to limit the exposure to loss; however, we will sometimes use letters of credit, prepayments, and master netting arrangements to mitigate credit risk with counterparties that both buy from and sell to us, as these agreements permit the amounts owed by us or owed to others to be offset against amounts due us.

Certain of our derivative instruments contain provisions that require us to post collateral if the derivative exposure exceeds a threshold amount. We have contracts with fixed threshold amounts and other contracts with variable threshold amounts that are contingent on our credit rating. The variable threshold amounts typically decline for lower credit ratings, while both the variable and fixed threshold amounts typically revert to zero if our credit ratings fall below investment grade. Cash is the primary collateral in all contracts; however, many contracts also permit us to post letters of credit as collateral.

The aggregate fair values of all derivative instruments with such credit-risk-related contingent features that were in a liability position were not material at December 31, 2013, or at December 31, 2012.
Fair Value Measurements
Fair Value Measurements
Fair Value Measurements

Fair Values of Financial Instruments
We used the following methods and assumptions to estimate the fair value of financial instruments:

•
Cash and cash equivalents: The carrying amount reported on the balance sheet approximates fair value.
•
Accounts and notes receivable: The carrying amount reported on the balance sheet approximates fair value.
•
Debt: The carrying amount of our floating-rate debt approximates fair value. The fair value of our fixed-rate debt is estimated based on quoted market prices.
•
Commodity swaps: Fair value is estimated based on forward market prices and approximates the exit price at period end. When forward market prices are not available, fair value is estimated using the forward prices of a similar commodity with adjustments for differences in quality or location.
•
Futures: Fair values are based on quoted market prices obtained from the New York Mercantile Exchange, the InterContinental Exchange Futures or other traded exchanges.
•
Forward-exchange contracts: Fair values are estimated by comparing the contract rate to the forward rate in effect at the end of the respective reporting periods and approximating the exit price at those dates.

We carry certain assets and liabilities at fair value, which we measure at the reporting date using an exit price (i.e., the price that would be received to sell an asset or paid to transfer a liability), and disclose the quality of these fair values based on the valuation inputs used in these measurements under the following hierarchy:

•
Level 1: Fair value measured with unadjusted quoted prices from an active market for identical assets or liabilities.
•
Level 2: Fair value measured with: 1) adjusted quoted prices from an active market for similar assets; or 2) other valuation inputs that are directly or indirectly observable.
•
Level 3: Fair value measured with unobservable inputs that are significant to the measurement.

We classify the fair value of an asset or liability based on the lowest level of input significant to its measurement; however, the fair value of an asset or liability initially reported as Level 3 will be subsequently reported as Level 2 if the unobservable inputs become inconsequential to its measurement or corroborating market data becomes available. Conversely, an asset or liability initially reported as Level 2 will be subsequently reported as Level 3 if corroborating market data becomes unavailable. We made no material transfers in or out of Level 1 during the twelve-month periods ended December 31, 2013 and 2012.

Recurring Fair Value Measurements
Financial assets and liabilities recorded at fair value on a recurring basis consist primarily of investments to support nonqualified deferred compensation plans and derivative instruments. The deferred compensation investments are measured at fair value using unadjusted prices available from national securities exchanges; therefore, these assets are categorized as Level 1 in the fair value hierarchy. We value our exchange-traded commodity derivatives using closing prices provided by the exchange as of the balance sheet date, and these are also classified as Level 1 in the fair value hierarchy. When exchange-cleared contracts lack sufficient liquidity or are valued using either adjusted exchange-provided prices or non-exchange quotes, we classify those contracts as Level 2. OTC financial swaps and physical commodity forward purchase and sales contracts are generally valued using quotations provided by brokers and price index developers such as Platts and Oil Price Information Service. We corroborate these quotes with market data and classify the resulting fair values as Level 2. In certain less liquid markets or for longer-term contracts, forward prices are not as readily available. In these circumstances, OTC swaps and physical commodity purchase and sales contracts are valued using internally developed methodologies that consider historical relationships among various commodities that result in management's best estimate of fair value. We classify these contracts as Level 3. Financial OTC and physical commodity options are valued using industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and contractual prices for the underlying instruments, as well as other relevant economic measures. The degree to which these inputs are observable in the forward markets determines whether the options are classified as Level 2 or 3. We use a mid-market pricing convention (the mid-point between bid and ask prices). When appropriate, valuations are adjusted to reflect credit considerations, generally based on available market evidence.

The following tables display the fair value hierarchy for our material financial assets and liabilities either accounted for or disclosed at fair value on a recurring basis. These values are determined by treating each contract as the fundamental unit of account; therefore, derivative assets and liabilities with the same counterparty are shown gross (i.e., without the effect of netting where the legal right of setoff exists) in the hierarchy sections of these tables. These tables also show that our Level 3 activity was not material.

We have master netting arrangements for all of our exchange-cleared derivative instruments, the majority of our OTC derivative instruments, and certain physical commodity forward contracts (primarily pipeline crude oil deliveries). The following tables show these contracts on a net basis in the column “Effect of Counterparty Netting.” We have no contracts that are subject to master netting arrangements that are reflected gross on the balance sheet.

The carrying values and fair values by hierarchy of our material financial instruments, either carried or disclosed at fair value, and derivative assets and liabilities, including any effects of master netting agreements or collateral, were:
 
Millions of Dollars
 
December 31, 2013
 
Fair Value Hierarchy
 
Total Fair Value of Gross Assets & Liabilities

Effect of Counterparty Netting

Effect of Collateral Netting

Difference in Carrying Value and Fair Value

Net Carrying Value Presented on the Balance Sheet

Cash Collateral Received or Paid, Not Offset on Balance Sheet

 
Level 1

 
Level 2

 
Level 3

Commodity Derivative Assets
 
 
 
 
 
 
 
 
 
 
 
 
Exchange-cleared instruments
$
227

 
332

 
—

 
559

(538
)
—

—

21

—

OTC instruments
—

 
10

 
—

 
10

(8
)
—

—

2

—

Physical forward contracts*
—

 
25

 
2

 
27

—

—

—

27

—

Rabbi trust assets
64

 
—

 
—

 
64

N/A

N/A

—

64

N/A

 
$
291

 
367

 
2

 
660

(546
)
—

—

114

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity Derivative Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Exchange-cleared instruments
$
253

 
326

 
—

 
579

(538
)
(41
)
—

—

—

OTC instruments
—

 
11

 
—

 
11

(8
)
—

—

3

—

Physical forward contracts*
—

 
43

 
1

 
44

—

—

—

44

—

Floating-rate debt
50

 
—

 
—

 
50

N/A

N/A

—

50

N/A

Fixed-rate debt, excluding capital leases**
—

 
6,168

 
—

 
6,168

N/A

N/A

(262
)
5,906

N/A

 
$
303

 
6,548

 
1

 
6,852

(546
)
(41
)
(262
)
6,003

 
*Physical forward contracts may have a larger value on the balance sheet than disclosed in the fair value hierarchy when the remaining contract term at the reporting date is greater than 12 months and the short-term portion is an asset while the long-term portion is a liability, or vice versa.
**We carry fixed-rate debt on the balance sheet at amortized cost.

 
Millions of Dollars
 
December 31, 2012
 
Fair Value Hierarchy
 
Total Fair Value of Gross Assets & Liabilities

Effect of Counterparty Netting

Effect of Collateral Netting

Difference in Carrying Value and Fair Value

Net Carrying Value Presented on the Balance Sheet

Cash Collateral Received or Paid, Not Offset on Balance Sheet

 
Level 1

 
Level 2

 
Level 3

 
Commodity Derivative Assets
 
 
 
 
 
 
 
 
 
 
 
 
Exchange-cleared instruments
$
380

 
309

 
—

 
689

(672
)
(8
)
—

9

—

OTC instruments
—

 
15

 
—

 
15

(7
)
—

—

8

—

Physical forward contracts*
—

 
61

 
2

 
63

4

—

—

67

—

Rabbi trust assets
50

 
—

 
—

 
50

N/A

N/A

—

50

N/A

 
$
430

 
385

 
2

 
817

(675
)
(8
)
—

134

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity Derivative Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Exchange-cleared instruments
$
393

 
328

 
—

 
721

(672
)
(42
)
—

7

(7
)
OTC instruments
—

 
13

 
—

 
13

(7
)
—

—

6

—

Physical forward contracts*
—

 
31

 
1

 
32

4

—

—

36

—

Floating-rate debt
1,050

 
—

 
—

 
1,050

N/A

N/A

—

1,050

N/A

Fixed-rate debt, excluding capital leases**
—

 
6,508

 
—

 
6,508

N/A

N/A

(590
)
5,918

N/A

 
$
1,443

 
6,880

 
1

 
8,324

(675
)
(42
)
(590
)
7,017

 
*Physical forward contracts may have a larger value on the balance sheet than disclosed in the fair value hierarchy when the remaining contract term at the reporting date is greater than 12 months and the short-term portion is an asset while the long-term portion is a liability, or vice versa.
**We carry fixed-rate debt on the balance sheet at amortized cost.
Nonrecurring Fair Value Remeasurements
The following table shows the values of assets, by major category, measured at fair value on a nonrecurring basis in periods subsequent to their initial recognition during the years ended December 31, 2013 and 2012:

 
 
Millions of Dollars
 
 
 
Fair Value
Measurements Using
 
 
 
Fair Value*

 
Level 1
Inputs

 
Level 3
Inputs

 
Before-
Tax Loss

Year Ended December 31, 2013
 
 
 
 
 
 
 
Net properties, plants and equipment (held for use)
$
22

 
22

 
—

 
27

 
 
 
 
 
 
 
 
Year Ended December 31, 2012
 
 
 
 
 
 
 
Net properties, plants and equipment (held for use)
$
84

 
84

 
—

 
68

Net properties, plants and equipment (held for sale)
32

 
32

 
—

 
42

Equity method investment
781

 
—

 
781

 
1,044

*Represents the fair value at the time of the impairment.


During 2013, net PP&E held for use related to our composite graphite business in our M&S segment, with a carrying amount of $18 million, was written down to its fair value, resulting in a before-tax loss of $18 million. Fair value was based on an internal assessment of expected discounted future cash flows. During this same period, Corporate net PP&E with a carrying amount of $31 million was written down to its fair value of $22 million, resulting in a before-tax loss of $9 million. The fair value was primarily determined by a third-party valuation.

During 2012, net PP&E held for use related to a terminal and storage facility in our Midstream segment, with a carrying amount of $76 million, was written down to its fair value of $33 million, resulting in a before-tax loss of $43 million. In addition, net PP&E held for sale by our Refining segment related to equipment formerly associated with a canceled refinery upgrade project, with a carrying amount of $74 million, was written down to its fair value of $32 million, resulting in a before-tax loss of $42 million. The fair values in each case were primarily determined by negotiated selling prices with third parties. In addition, corporate property with a carrying amount of $76 million was written down to its fair value of $51 million, resulting in a before-tax loss of $25 million. The fair value was based on third-party valuations.

Also, during 2012, certain equity method investments were determined to have fair values below their carrying amount, and the declines in fair value were considered to be other than temporary. This included an investment in our Refining segment with a book value of $1,062 million, which was written down to its fair value of $498 million, resulting in a before-tax loss of $564 million. In addition, our investment in a natural gas transmission pipeline, included in our Midstream segment, was written down to a fair value of $283 million, resulting in a before-tax loss of $480 million. The fair values were principally determined by the application of an internal discounted cash flow model using estimates of future production, prices, costs and a discount rate believed to be consistent with those used by principal market participants.
Equity
Equity
Equity

Preferred Stock
We have 500 million shares of preferred stock authorized, with a par value of $0.01 per share. No shares of preferred stock were outstanding as of December 31, 2013 or 2012.

Treasury Stock
During 2012, our Board of Directors authorized the repurchase of up to $2 billion of our outstanding common stock. In October 2013, we completed our initial $2 billion share repurchase program. During 2013, our Board of Directors authorized additional share repurchases of $1 billion and $2 billion on July 30 and December 6, respectively. The share repurchases are expected to be funded primarily through available cash. 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 and the Tax Sharing Agreement entered into in connection with the Separation. 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 our share repurchase programs began, share repurchases totaled 44,106,380 shares at a cost of $2.6 billion through December 31, 2013. Shares of stock repurchased are held as treasury shares.

Common Stock Dividends
On February 7, 2014, our Board of Directors declared a quarterly cash dividend of $0.39 per common share, payable March 3, 2014, to holders of record at the close of business on February 18, 2014.
Leases
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 $206 million and $17 million at December 31, 2013 and 2012, respectively.

Future minimum lease payments as of December 31, 2013, for capital lease obligations and operating lease obligations having initial or remaining payments due under noncancelable leases were:
 
 
Millions of Dollars
 
Capital Lease Obligations
Operating Lease Obligations
 
 
 
2014
$
19

522

2015
15

437

2016
14

289

2017
16

245

2018
13

197

Remaining years
196

355

Total
273

2,045

Less: income from subleases*
—

112

Net minimum lease payments
$
273

1,933

Less: amount representing interest
74

 
Capital lease obligations
$
199

 
*Includes $37 million related to subleases to related parties.
 



Operating lease rental expense for the years ended December 31 was:
 
 
Millions of Dollars
 
2013

 
2012

 
2011

 
 
 
 
 
 
Minimum rentals
$
572

 
554

 
576

Contingent rentals
7

 
8

 
5

Less: sublease rental income
133

 
93

 
97

 
$
446

 
469

 
484

Employee Benefit Plans
Employee Benefit Plans
Employee Benefit Plans

Shared Pension and Postretirement Plans
Prior to the Separation, certain of our U.S. and U.K. employees participated in defined benefit pension plans and postretirement benefit plans (Shared Plans) sponsored by ConocoPhillips, which included participants of other ConocoPhillips subsidiaries. Prior to the Separation, we accounted for such Shared Plans as multiemployer benefit plans. Accordingly, we did not record an asset or liability to recognize the funded status of the Shared Plans on our consolidated balance sheet until the Separation. At the Separation, the assets and liabilities of these Shared Plans, which were allocable to Phillips 66 employees, were transferred to Phillips 66. Plan assets of $2,056 million, benefit obligations of $3,060 million and $869 million of accumulated other comprehensive loss ($540 million, net of tax) were recorded in 2012 for the plans transferred to us.

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
 
2013
 
2012
 
2013

 
2012

 
U.S.

 
Int'l.

 
U.S.

 
Int'l.

 
 
 
 
Change in Benefit Obligation
 
 
 
 
 
 
 
 
 
 
 
Benefit obligation at January 1
$
2,624

 
757

 
—

 
237

 
191

 
—

Service cost
125

 
36

 
82

 
22

 
8

 
4

Interest cost
91

 
31

 
65

 
25

 
7

 
5

Plan participant contributions
—

 
4

 
—

 
2

 
—

 
—

Plan amendments
—

 
—

 
—

 
—

 
—

 
(18
)
Actuarial loss (gain)
(194
)
 
1

 
90

 
83

 
(14
)
 
2

Benefits paid
(173
)
 
(15
)
 
(78
)
 
(12
)
 
(3
)
 
(1
)
Liabilities assumed from Separation
—

 
—

 
2,465

 
396

 
—

 
199

Foreign currency exchange rate change
—

 
26

 
—

 
4

 
—

 
—

Benefit obligation at December 31*
$
2,473

 
840

 
2,624

 
757

 
189

 
191

*Accumulated benefit obligation portion of above at December 31:
$
2,151

 
627

 
2,265

 
563

 


 


 
 
 
 
 
 
 
 
 
 
 
 
Change in Fair Value of Plan Assets
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets at January 1
$
1,762

 
527

 
—

 
120

 
—

 
—

Actual return on plan assets
283

 
60

 
91

 
35

 
—

 
—

Company contributions
136

 
50

 
37

 
36

 
3

 
1

Plan participant contributions
—

 
4

 
—

 
2

 
—

 
—

Benefits paid
(173
)
 
(15
)
 
(78
)
 
(12
)
 
(3
)
 
(1
)
Assets received from Separation
—

 
—

 
1,712

 
344

 
—

 
—

Foreign currency exchange rate change
—

 
19

 
—

 
2

 
—

 
—

Fair value of plan assets at December 31
$
2,008

 
645

 
1,762

 
527

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Funded Status at December 31
$
(465
)
 
(195
)
 
(862
)
 
(230
)
 
(189
)
 
(191
)



Amounts recognized in the consolidated balance sheet for our pension and other postretirement benefit plans at December 31, 2013 and 2012, include:
      
 
Millions of Dollars
 
Pension Benefits
 
Other Benefits
 
2013
 
2012
 
2013

 
2012

 
U.S.

 
Int'l.

 
U.S.

 
Int'l.

 
 
 
 
Amounts Recognized in the Consolidated Balance Sheet at December 31
 
 
 
 
 
 
 
 
 
 
 
Noncurrent assets
$
—

 
2

 
—

 
—

 
—

 
—

Current liabilities
(8
)
 
—

 
(8
)
 
—

 
(3
)
 
(3
)
Noncurrent liabilities
(457
)
 
(197
)
 
(854
)
 
(230
)
 
(186
)
 
(188
)
Total recognized
$
(465
)
 
(195
)
 
(862
)
 
(230
)
 
(189
)
 
(191
)



Included in accumulated other comprehensive income 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
 
2013
 
2012
 
2013

 
2012

 
U.S.

 
Int'l.

 
U.S.

 
Int'l.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrecognized net actuarial loss (gain)
$
399

 
120

 
839

 
161

 
(18
)
 
(4
)
Unrecognized prior service cost (credit)
12

 
(11
)
 
15

 
(12
)
 
(13
)
 
(15
)



 
Millions of Dollars
 
Pension Benefits
 
Other Benefits
 
2013
 
2012
 
2013

 
2012

 
U.S.

 
Int'l.

 
U.S.

 
Int'l.

 
 
 
 
Sources of Change in Other Comprehensive Income
 
 
 
 
 
 
 
 
 
 
 
Net gain (loss) arising during the period
$
356

 
25

 
(78
)
 
(72
)
 
14

 
(2
)
Amortization of (gain) loss included in income
84

 
16

 
49

 
7

 
—

 
(1
)
Net change during the period
$
440

 
41

 
(29
)
 
(65
)
 
14

 
(3
)
 
 
 
 
 
 
 
 
 
 
 
 
Prior service credit arising during the period
$
—

 
—

 
—

 
—

 
—

 
18

Amortization of prior service cost (credit) included in income
3

 
(1
)
 
2

 
(1
)
 
(2
)
 
—

Net change during the period
$
3

 
(1
)
 
2

 
(1
)
 
(2
)
 
18




For our tax-qualified pension plans with projected benefit obligations in excess of plan assets, the projected benefit obligation, the accumulated benefit obligation, and the fair value of plan assets were $2,757 million, $2,407 million, and $2,177 million, respectively, at December 31, 2013, and $3,308 million, $2,777 million, and $2,289 million, respectively, at December 31, 2012. For our unfunded nonqualified key employee supplemental pension plans, the projected benefit obligation and the accumulated benefit obligation were $82 million and $58 million, respectively, at December 31, 2013, and $73 million and $51 million, respectively, at December 31, 2012.

The allocated benefit cost from Shared Plans, as well as the components of net periodic benefit cost associated with plans sponsored by us, for 2013, 2012 and 2011 is shown in the table below:

 
Millions of Dollars
 
Pension Benefits
 
Other Benefits
 
2013
 
2012
 
2011
 
2013

 
2012

 
2011

 
U.S.

 
Int'l.

 
U.S.

 
Int'l.

 
U.S.

 
Int'l.

 
 
 
 
 
 
Components of Net Periodic Benefit Cost
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
125

 
36

 
82

 
22

 
—

 
5

 
8

 
4

 
—

Interest cost
91

 
31

 
65

 
25

 
—

 
13

 
7

 
5

 
—

Expected return on plan assets
(120
)
 
(29
)
 
(81
)
 
(21
)
 
—

 
(8
)
 
—

 
—

 
—

Amortization of prior service cost (credit)
3

 
(1
)
 
2

 
(1
)
 
—

 
—

 
(2
)
 
—

 
—

Recognized net actuarial loss (gain)
84

 
16

 
49

 
7

 
—

 
3

 
—

 
(1
)
 
—

Subtotal net periodic benefit cost
183

 
53

 
117

 
32

 
—

 
13

 
13

 
8

 
—

Allocated benefit cost from ConocoPhillips
—

 
—

 
71

 
13

 
199

 
39

 
—

 
7

 
19

Total net periodic benefit cost
$
183

 
53

 
188

 
45

 
199

 
52

 
13

 
15

 
19




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 at December 31, 2013, that are expected to be amortized into net periodic benefit cost during 2014 are provided below:

 
Millions of Dollars
 
Pension Benefits
 
Other Benefits

 
U.S.

 
Int'l.

 
 
 
 
 
 
 
 
Unrecognized net actuarial loss (gain)
$
40

 
12

 
(2
)
Unrecognized prior service cost (credit)
3

 
(2
)
 
(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
 
2013
 
2012
 
2013
 
2012
 
U.S.

 
Int'l.
 
U.S.
 
Int'l.
 
 
 
 
Assumptions Used to Determine Benefit Obligations:
 
 
 
 
 
 
 
 
 
 
 
Discount rate
4.55
%
 
4.30
 
3.60
 
4.20
 
4.40
 
3.70
Rate of compensation increase
4.00

 
3.90
 
3.85
 
3.60
 
—
 
—
 
 
 
 
 
 
 
 
 
 
 
 
Assumptions Used to Determine Net Periodic Benefit Cost:
 
 
 
 
 
 
 
 
 
 
 
Discount rate
3.60
%
 
4.20
 
4.20
 
5.10
 
3.70
 
4.20
Expected return on plan assets
7.00

 
5.50
 
7.00
 
5.80
 
—
 
—
Rate of compensation increase
3.85

 
3.60
 
3.75
 
3.60
 
—
 
—



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. On or after January 1, 2013, eligible employees are 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 7.25 percent in 2014 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 broadly 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 62 percent equity securities, 37 percent debt securities and 1 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 categorized in Level 1 are primarily based on quoted market prices.
•
Fair values of corporate debt securities, agency and mortgage-backed securities and government debt securities categorized in Level 2 are estimated using recently executed transactions and market price quotations. If there have been no market transactions in a particular fixed income security, its fair market value is calculated by pricing models that benchmark the security against other securities with actual market prices. When observable price quotations are not available, fair value is based on pricing models that use something other than actual
market prices (e.g., observable inputs such as benchmark yields, reported trades and issuer spreads for similar securities), and these securities are categorized in Level 3 of the fair value hierarchy.
•
Fair values of investments in common/collective trusts are determined by the issuer of each fund based on the fair value of the underlying assets.
•
Fair values of mutual funds are valued based on quoted market prices, which represent the net asset value of shares held. Certain mutual funds are categorized in Level 2 as they are not valued on a daily basis.
•
Cash and cash equivalents are valued at cost, which approximates fair value.
•
Fair values of exchange-traded derivatives classified in Level 1 are based on quoted market prices. For other derivatives classified in Level 2, the fair values are generally calculated from pricing models with market input parameters from third-party sources.
•
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.

The fair values of our pension plan assets at December 31, by asset class, were as follows:

 
Millions of Dollars
 
U.S.
 
International
 
Level 1

 
Level 2

 
Level 3

 
Total

 
Level 1

 
Level 2

 
Level 3

 
Total

2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.
$
552

 
—

 
—

 
552

 
129

 
—

 
—

 
129

International
439

 
—

 
—

 
439

 
104

 
—

 
—

 
104

Common/collective trusts
—

 
302

 
—

 
302

 
—

 
103

 
—

 
103

Mutual funds
—

 
42

 
—

 
42

 
5

 
—

 
—

 
5

Debt Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government
114

 
70

 
—

 
184

 
117

 
—

 
—

 
117

Corporate
—

 
305

 
—

 
305

 
—

 
—

 
—

 
—

Agency and mortgage-backed securities
—

 
90

 
—

 
90

 
—

 
—

 
—

 
—

Common/collective trusts
—

 
17

 
—

 
17

 
—

 
148

 
—

 
148

Mutual funds
—

 
—

 
—

 
—

 
1

 
—

 
—

 
1

Cash and cash equivalents
77

 
—

 
—

 
77

 
14

 
—

 
—

 
14

Derivatives
(1
)
 
1

 
—

 
—

 
—

 
—

 
—

 
—

Insurance contracts
—

 
—

 
—

 
—

 
—

 
—

 
16

 
16

Real estate
—

 
—

 
—

 
—

 
—

 
—

 
8

 
8

Total
$
1,181

 
827

 
—

 
2,008

 
370

 
251

 
24

 
645



 

 
Millions of Dollars
 
U.S.
 
International
 
Level 1

 
Level 2

 
Level 3

 
Total

 
Level 1

 
Level 2

 
Level 3

 
Total

2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.
$
529

 
—

 
—

 
529

 
100

 
—

 
—

 
100

International
340

 
—

 
—

 
340

 
86

 
—

 
—

 
86

Common/collective trusts
—

 
237

 
—

 
237

 
—

 
97

 
—

 
97

Mutual funds
—

 
42

 
—

 
42

 
2

 
—

 
—

 
2

Debt Securities
 
 
 
 
 
 

 
 
 
 
 
 
 
 
Government
160

 
54

 
—

 
214

 
97

 
—

 
—

 
97

Corporate
—

 
287

 
1

 
288

 
—

 
—

 
—

 
—

Agency and mortgage-backed securities
—

 
45

 
—

 
45

 
—

 
—

 
—

 
—

Common/collective trusts
—

 
17

 
—

 
17

 
—

 
112

 
—

 
112

Mutual funds
—

 
—

 
—

 
—

 
1

 
—

 
—

 
1

Cash and cash equivalents
42

 
—

 
—

 
42

 
9

 
—

 
—

 
9

Derivatives
—

 
2

 
—

 
2

 
—

 
—

 
—

 
—

Insurance contracts
—

 
—

 
—

 
—

 
—

 
—

 
15

 
15

Real estate
—

 
—

 
—

 
—

 
—

 
—

 
7

 
7

Total*
$
1,071

 
684

 
1

 
1,756

 
295

 
209

 
22

 
526


* Fair values in the table exclude net receivables related to security transactions of $7 million.

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 2014, we expect to contribute approximately $175 million to our U.S. pension plans and other postretirement benefit plans and $60 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.

 
 
 
 
 
 
 
 
2014
$
203

 
18

 
9

2015
210

 
20

 
12

2016
222

 
25

 
15

2017
233

 
27

 
17

2018
259

 
26

 
19

2019-2023
1,333

 
156

 
106




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. For the period January 2013 through June 2013, Success Share had an actual payout of 3 percent and for the period July 2013 through December 2013, it had an actual payout of 5 percent.

The Savings Plan was amended effective January 1, 2013. Prior to that date, the company matched up to 1.25 percent of eligible pay, the Success Share did not exist, and instead the plan included a stock savings feature (discussed below). The total expense related to participants in the Savings Plan and predecessor plans for Phillips 66 employees, excluding the stock savings feature, was $111 million in 2013, $15 million in 2012 and $13 million in 2011.

Prior to the Separation, the stock savings feature of the Savings Plan was a leveraged employee stock ownership plan. After the Separation, it was a non-leveraged employee stock ownership plan. Employees could elect to participate in the stock savings feature by contributing 1 percent of eligible pay. Subsequently, they received a proportionate allocation of shares of common stock. The total expense related to participants of Phillips 66 in this stock savings feature and predecessor plans for Phillips 66 employees was $157 million in 2012, and $38 million in 2011, all of which was compensation expense. The stock savings feature of the Savings Plan was terminated on December 31, 2012.

Share-Based Compensation Plans
Prior to the Separation, our employees participated in the “2011 Omnibus Stock and Performance Incentive Plan of ConocoPhillips” (the COP Omnibus Plan), under which they were eligible to receive ConocoPhillips stock options, restricted stock units (RSUs) and restricted performance share units (PSUs). Effective on the separation date of April 30, 2012, our employees and non-employee directors began participating in the “Omnibus Stock and Performance Incentive Plan of Phillips 66” (the 2012 Plan). The 2012 Plan was superseded by the 2013 Omnibus Stock and Performance Incentive Plan of Phillips 66 (the P66 Omnibus Plan) that was approved by shareholders in May 2013. Subsequent to this approval, all new share-based awards are granted under the P66 Omnibus Plan.

The P66 Omnibus Plan authorizes the Human Resources and Compensation Committee of our Board of Directors (the Committee) 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 shares issued under the P66 Omnibus Plan to settle share-based awards may not exceed 45 million shares.

In connection with the Separation, share-based compensation awards granted under the COP Omnibus Plan and held by grantees as of April 30, 2012, were adjusted or substituted to preserve the intrinsic value of the awards as of April 30, 2012, as follows:

•
Exercisable awards of stock options and stock appreciation rights were converted in accordance with the Employee Matters Agreement providing the grantee with replacement options to purchase both ConocoPhillips and Phillips 66 common stock.
•
Unexercisable awards of stock options held by Phillips 66 employees were replaced with substitute options to purchase only Phillips 66 common stock.
•
Restricted stock and PSUs awarded for completed performance periods under the ConocoPhillips Performance Share Program (PSP) were converted in accordance with the Employee Matters Agreement providing the grantee with both ConocoPhillips and Phillips 66 restricted stock and PSUs.
•
Restricted stock and RSUs held by Phillips 66 employees under all programs other than the PSP were replaced entirely with Phillips 66 restricted stock and RSUs.

Awards granted in connection with the adjustment and substitution of awards originally issued under the COP Omnibus Plan are a part of and became subject to the 2012 Plan.

The aforementioned adjustment and substitution of awards resulted in the recognition of $9 million of incremental compensation expense in the second quarter of 2012.
Our share-based compensation 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. For share-based awards granted prior to our adoption of Statement of Financial Accounting Standards No. 123(R), codified into Financial Accounting Standards Board Accounting Standards Codification (ASC) Topic 718, “Compensation-Stock Compensation,” we recognize expense over the period of time during which the employee earns the award, accelerating the recognition of expense only when an employee actually retires. For share-based awards granted after our adoption of ASC 718 on January 1, 2006, we recognize share-based compensation expense over the shorter of: the service period (i.e., the stated period of time required to earn the award); or 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 to not be subject to forfeiture.

Some of our share-based awards vest ratably (i.e., portions of the award vest at different times) while some of our awards cliff vest (i.e., all of the award vests at the same time). The company made a policy election under ASC 718 to recognize expense on a straight-line basis over the service period for the entire award, whether the award was granted with ratable or cliff vesting.

Total share-based compensation expense recognized in income and the associated tax benefit for the years ended December 31, were as follows:
 
 
Millions of Dollars
 
2013

 
2012

 
2011

 
 
 
 
 
 
Compensation cost
$
132

 
94

 
46

Tax benefit
(50
)
 
(35
)
 
(18
)



Stock Options
Stock options granted under the provisions of the P66 Omnibus Plan and earlier plans permit purchase of our common stock at exercise prices equivalent to the average market price of the stock on the date the options were granted. The options have terms of 10 years and generally vest ratably, with one-third of the options awarded vesting and becoming exercisable on each anniversary date following the date of grant. Options awarded to employees already eligible for retirement vest within six months of the grant date, but those options do not become exercisable until the end of the normal vesting period.

The following summarizes our stock option activity from January 1, 2013 to December 31, 2013:
 
 
 
 
 
 
 
 
Millions of Dollars 

 
Options

 
Weighted-  
Average
Exercise Price

 
Weighted-Average
Grant-Date
Fair Value

 
 Aggregate
Intrinsic Value

 
 
 
 
 
 
 
 
Outstanding at January 1, 2013
8,350,641

 
$
26.25

 


 

Granted
546,900

 
62.17

 
$
16.77

 

Forfeited
(4,900
)
 
62.17

 

 


Exercised
(2,002,575
)
 
21.74

 

 
$
81

Expired or canceled
—

 
—

 

 

Outstanding at December 31, 2013
6,890,066

 
$
30.38

 

 

 
 
 
 
 
 
 
 
Vested at December 31, 2013
6,358,111

 
$
29.47

 

 
$
297

 
 
 
 
 
 
 
 
Exercisable at December 31, 2013
5,007,009

 
$
26.61

 

 
$
248

All option awards presented in this table are for Phillips 66 stock only, including those awards held by ConocoPhillips employees.

The weighted-average remaining contractual terms of vested options and exercisable options at December 31, 2013, were 5.67 years and 4.98 years, respectively. During 2013, we received $44 million in cash and realized a tax benefit of $10 million from the exercise of options. At December 31, 2013, the remaining unrecognized compensation expense from unvested options held by employees of Phillips 66 was $4 million, which will be recognized over a weighted-average period of 16 months, the longest period being 25 months. The calculations of realized tax benefit, unamortized expense and weighted-average periods include awards based on both Phillips 66 and ConocoPhillips stock held by Phillips 66 employees.

The following table provides the significant assumptions used to calculate the grant date fair market values of options granted over the years shown below, as calculated using the Black-Scholes-Merton option-pricing model:
 
 
2013

 
2012
 
2011
Assumptions used
 
 
 
 
 
Risk-free interest rate
1.18
%
 
1.62
 
3.10
Dividend yield
2.50
%
 
4.00
 
4.00
Volatility factor
35.47
%
 
33.30
 
33.40
Expected life (years)
6.23

 
7.42
 
6.87


Prior to the Separation, we calculated volatility using the most recent ConocoPhillips end-of-week closing stock prices spanning a period equal to the expected life of the options granted. We calculate the volatility of options granted after the Separation 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.

We periodically calculate the average period of time lapsed between grant dates and exercise dates of past grants to estimate the expected life of new option grants.

Stock Unit Program
Generally, after the Separation RSUs are granted annually under the provisions of the P66 Omnibus Plan and cliff vest at the end of three years. Most RSU awards granted prior to the Separation vested ratably over five years, with one-third of the units vesting in 36 months, one-third vesting in 48 months, and the final third vesting 60 months from the date of grant. In addition to the regularly scheduled annual awards, RSUs are also granted ad hoc to attract or retain key personnel, and the terms and conditions under which these RSUs vest vary by award. Upon vesting, RSUs are settled by issuing one share of Phillips 66 common stock per RSU. RSUs awarded to employees already eligible for retirement vest within six months of the grant date, but those units are not issued as shares until the end of the normal vesting period. Until issued as stock, most recipients of RSUs receive a quarterly cash payment of a dividend equivalent, and for this reason the grant date fair value of these units is deemed equal to the average Phillips 66 stock price on the date of grant. The grant date fair market value of RSUs that do not receive a dividend equivalent while unvested is deemed equal to the average Phillips 66 common stock price on the grant date, less the net present value of the dividend equivalents that will not be received.

The following summarizes our stock unit activity from January 1, 2013 to December 31, 2013:

 
 
 
 
 
Millions of Dollars

 
Stock Units

 
Weighted-Average
Grant-Date  Fair Value

 
Total Fair Value

 
 
 
 
 
 
Outstanding at January 1, 2013
5,226,610

 
$
28.62

 

Granted
850,824

 
62.14

 

Forfeited
(64,762
)
 
43.23

 

Issued
(1,572,411
)
 
26.80

 
$
100

Outstanding at December 31, 2013
4,440,261

 
$
35.48

 

 
 
 
 
 
 
Not Vested at December 31, 2013
2,843,964

 
$
35.64

 

All RSU awards presented in this table are for Phillips 66 stock only, including those awards held by ConocoPhillips employees.


At December 31, 2013, the remaining unrecognized compensation cost from the unvested RSU awards held by employees of Phillips 66 was $50 million, which will be recognized over a weighted-average period of 25 months, the longest period being 40 months. The calculations of unamortized expense and weighted-average periods include awards based on both Phillips 66 and ConocoPhillips stock held by Phillips 66 employees.

Performance Share Program
Under the P66 Omnibus Plan, we also annually grant to senior management restricted PSUs that vest: (i) with respect to awards for performance periods beginning before 2009, when the employee becomes eligible for retirement by reaching age 55 with five years of service; or (ii) with respect to awards for performance periods beginning in 2009, five years after the grant date of the award (although recipients can elect to defer the lapsing of restrictions until retirement after reaching age 55 with five years of service); or (iii) with respect to awards for performance periods beginning in 2013 or later, on the grant date.

For PSU awards with performance periods beginning before 2013, we recognize compensation expense beginning on the date of grant and ending on the date the PSUs are scheduled to vest; however, since these awards are authorized three years prior to the grant date, we recognize compensation expense for employees that will become eligible for retirement by or shortly after the grant date over the period beginning on the date of authorization and ending on the date of grant. 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 participating in the PSU grant.

We settle PSUs with performance periods that begin before 2013 by issuing one share of Phillips 66 common stock for each PSU. Recipients of these PSUs receive a quarterly cash payment of a dividend equivalent beginning on the grant date and ending on the settlement date.

We settle PSUs with performance periods beginning in 2013 or later by paying cash equal to the fair value of the PSU on the grant date, which is also the date the PSU vests. Since these PSUs vest and settle on the grant date, dividend equivalents are never paid on these awards.

The following summarizes our performance share unit activity from January 1, 2013 to December 31, 2013:
 
 
 
 
 
 
Millions of Dollars

 
Performance
Share Units

 
Weighted-Average
Grant-Date 
Fair Value

 
Total Fair Value

 
 
 
 
 
 
Outstanding at January 1, 2013
2,592,274

 
$
34.36

 

Granted
266,052

 
62.17

 

Forfeited
—

 


 

Issued
(145,358
)
 
33.84

 
$
9

Outstanding at December 31, 2013
2,712,968

 
$
37.12

 

 
 
 
 
 
 
Not Vested at December 31, 2013
649,672

 
$
37.73

 

All PSU awards presented in this table are for Phillips 66 stock only, including those awards held by ConocoPhillips employees.


At December 31, 2013, the remaining unrecognized compensation cost from unvested PSU awards held by employees of Phillips 66 was $12 million, which will be recognized over a weighted-average period of 33 months, the longest period being 13 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.
Income Taxes
Income Taxes
Income Taxes

Income taxes charged to income were:
 
 
Millions of Dollars
 
2013

 
2012

 
2011

Income Taxes
 
 
 
 
 
Federal
 
 
 
 
 
Current
$
1,054

 
1,967

 
713

Deferred
526

 
69

 
745

Foreign
 
 
 
 
 
Current
98

 
160

 
126

Deferred
(48
)
 
45

 
(9
)
State and local
 
 
 
 
 
Current
146

 
253

 
132

Deferred
68

 
(21
)
 
115

 
$
1,844

 
2,473

 
1,822




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
 
2013

 
2012

Deferred Tax Liabilities
 
 
 
Properties, plants and equipment, and intangibles
$
3,747

 
3,721

Investment in joint ventures
2,696

 
2,183

Investment in foreign subsidiaries
401

 
386

Other
—

 
24

Total deferred tax liabilities
6,844

 
6,314

Deferred Tax Assets
 
 
 
Benefit plan accruals
499

 
614

Inventory
51

 
92

Asset retirement obligations and accrued environmental costs
223

 
234

Other financial accruals and deferrals
223

 
166

Loss and credit carryforwards
123

 
313

Other
18

 
59

Total deferred tax assets
1,137

 
1,478

Less: valuation allowance
127

 
329

Net deferred tax assets
1,010

 
1,149

Net deferred tax liabilities
$
5,834

 
5,165




Current assets, long-term assets, current liabilities and long-term liabilities included deferred taxes of $291 million, $0 million, $0 million and $6,125 million, respectively, at December 31, 2013, and $307 million, $1 million, $29 million and $5,444 million, respectively, at December 31, 2012.

With the exception of certain foreign tax credit and separate company loss carryforwards, tax attributes were not allocated to us from ConocoPhillips. The foreign tax credit carryforwards, which have a full valuation allowance against them, begin to expire in 2019. The loss carryforwards, all of which are related to foreign operations, have indefinite carryforward periods.

Valuation allowances have been established to reduce deferred tax assets to an amount that will, more likely than not, be realized. During 2013, valuation allowances decreased by a total of $202 million. This decrease is primarily related to the write off of deferred tax assets deemed unrecoverable as a result of the Separation and the utilization of certain foreign tax credits, partially offset by the recording of current year valuation allowances. Based on our historical taxable income, expectations for the future, and available tax-planning strategies, management expects remaining net deferred tax assets will be realized as offsets to reversing deferred tax liabilities and the tax consequences of future taxable income.

As of December 31, 2013, we had undistributed earnings related to foreign subsidiaries and foreign corporate joint ventures of approximately $1.7 billion for which deferred income taxes have not been provided. We plan to reinvest these earnings for the foreseeable future. If these amounts were distributed to the United States, we would be subject to additional U.S. income taxes. Determination of the amount of unrecognized deferred income tax liability is not practicable due to the number of unknown variables inherent in the calculation.

As a result of the Separation and pursuant to the Tax Sharing Agreement with ConocoPhillips, the unrecognized 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. Those unrecognized tax benefits are reflected in the following table which shows a reconciliation of the beginning and ending unrecognized tax benefits.

 
Millions of Dollars
 
2013

 
2012

 
2011

 
 
 
 
 
 
Balance at January 1
$
158

 
169

 
166

Additions based on tax positions related to the current year
30

 
3

 
11

Additions for tax positions of prior years
25

 
35

 
27

Reductions for tax positions of prior years
(8
)
 
(47
)
 
(32
)
Settlements
(3
)
 
(2
)
 
(2
)
Lapse of statute
—

 
—

 
(1
)
Balance at December 31
$
202

 
158

 
169




Included in the balance of unrecognized tax benefits for 2013, 2012 and 2011 were $161 million, $125 million and $114 million, respectively, which, if recognized, would affect our effective tax rate. With respect to various unrecognized tax benefits and the related accrued liability, approximately $118 million may be recognized or paid within the next twelve months due to completion of audits.

At December 31, 2013, 2012 and 2011, accrued liabilities for interest and penalties totaled $18 million, $15 million and $9 million, respectively, net of accrued income taxes. Interest and penalties decreased earnings by $3 million and $6 million in 2013 and 2012, respectively, and benefited earnings by $7 million in 2011.

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 (2010), Germany (2007) and United States (2008). Certain issues remain in dispute for audited years, and unrecognized tax benefits for years still subject to or currently undergoing an audit are subject to change. As a consequence, the balance in unrecognized 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 tax benefits, the amount of change is not estimable.

The amounts of U.S. and foreign income (loss) before income taxes, with a reconciliation of tax at the federal statutory rate with the provision for income taxes, were:
 
 
Millions of Dollars
 
Percent of Pre-tax Income
 
2013

 
2012

 
2011

 
2013

 
2012

 
2011

Income from continuing operations before income taxes
 
 
 
 
 
 
 
 
 
 
 
United States
$
5,158

 
6,192

 
6,107

 
93.3
 %
 
94.4

 
93.1

Foreign
368

 
364

 
452

 
6.7

 
5.6

 
6.9

 
$
5,526

 
6,556

 
6,559

 
100.0
 %
 
100.0

 
100.0

 
 
 
 
 
 
 
 
 
 
 
 
Federal statutory income tax
$
1,934

 
2,295

 
2,295

 
35.0
 %
 
35.0

 
35.0

Goodwill allocated to assets sold
—

 
9

 
96

 
—

 
0.1

 
1.4

Capital loss utilization
—

 
—

 
(619
)
 
—

 
—

 
(9.4
)
Tax on foreign operations
(198
)
 
141

 
(61
)
 
(3.6
)
 
2.2

 
(0.9
)
Federal manufacturing deduction
(68
)
 
(124
)
 
(52
)
 
(1.2
)
 
(1.9
)
 
(0.8
)
State income tax, net of federal benefit
139

 
151

 
161

 
2.5

 
2.3

 
2.5

Other
37

 
1

 
2

 
0.7

 
—

 
—

 
$
1,844

 
2,473

 
1,822

 
33.4
 %
 
37.7

 
27.8




During 2011, we realized a significant tax capital loss, which had not previously been recognized, that was related to the disposition of the legal entity which ultimately held the Wilhelmshaven Refinery assets. The tax benefit of this loss was realized as a reduction of capital gains generated in 2011. During 2012, we impaired a foreign investment for which no tax benefit was recognized. No tax benefit was recognized due to our ownership structure and assertion that the earnings of the foreign subsidiary that holds the investment will be reinvested for the foreseeable future. This item is reflected in “Tax on foreign operations” in the table above.

Prior to the Separation, and except for certain state and dedicated foreign entity income tax returns, we were included in the ConocoPhillips income tax returns for all applicable years. In accordance with the Tax Sharing Agreement, a cash settlement was received from ConocoPhillips in 2013 upon the filing of the income tax return for the calendar year ended December 31, 2011. We received a further cash settlement in January 2014 for the January 1, 2012, through April 30, 2012 period. In 2013, we filed our initial U.S. consolidated income tax returns for the period May 1, 2012, through December 31, 2012.
Accumulated Other Comprehensive Income (Loss)
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
Income (Loss)

 
 
 
 
 
 
 
 
December 31, 2010
$
(116
)
 
334

 
(4
)
 
214

Other comprehensive income (loss)
(29
)
 
(64
)
 
1

 
(92
)
December 31, 2011
(145
)
 
270

 
(3
)
 
122

Other comprehensive income (loss)
(93
)
 
196

 
1

 
104

Net transfer from ConocoPhillips*
(540
)
 
—

 
—

 
(540
)
December 31, 2012
(778
)
 
466

 
(2
)
 
(314
)
Other comprehensive income (loss) before reclassifications
312

 
(44
)
 
—

 
268

Amounts reclassified from accumulated other comprehensive income (loss)
 
 
 
 
 
 


Foreign currency translation**
—

 
21

 
—

 
21

Amortization of defined benefit plan items***
 
 
 
 
 
 


Actuarial losses
62

 
—

 
—

 
62

Net current period other comprehensive income (loss)
374

 
(23
)
 
—

 
351

December 31, 2013
$
(404
)
 
443

 
(2
)
 
37

*See Consolidated Statement of Changes in Equity.
**Included in the deferred gain on the sale of ICHP. See Note 5—Assets Held for Sale or Sold, for additional information.
***Included in the computation of net periodic benefit cost. See Note 19—Employee Benefit Plans, for additional information.
Cash Flow Information
Cash Flow Information
Cash Flow Information
 
 
Millions of Dollars
 
2013

 
2012

 
2011

Noncash Investing and Financing Activities
 
 
 
 
 
Increase in net PP&E and debt related to capital lease obligation
$
177

 
—

 
—

Transfer of net PP&E in accordance with the Separation and Distribution Agreement with ConocoPhillips
—

 
374

 
—

Transfer of employee benefit obligations in accordance with the Separation and Distribution Agreement with ConocoPhillips
—

 
1,234

 
—

Increase in deferred tax assets associated with the employee benefit liabilities transferred in accordance with the Separation and Distribution Agreement with ConocoPhillips
—

 
461

 
—

 
 
 
 
 
 
Cash Payments
 
 
 
 
 
Interest
$
259

 
176

 
—

Income taxes*
1,021

 
2,183

 
197


*Excludes our share of cash tax payments made directly by ConocoPhillips prior to the Separation on April 30, 2012.
Other Financial Information
Other Financial Information
Other Financial Information
 
 
Millions of Dollars
Except Per Share Amounts
 
2013

 
2012

 
2011

Interest and Debt Expense
 
 
 
 
 
Incurred
 
 
 
 
 
Debt
$
251

 
221

 
12

Other
24

 
25

 
5

 
275

 
246

 
17

Capitalized
—

 
—

 
—

Expensed
$
275

 
246

 
17

 
 
 
 
 
 
Other Income
 
 
 
 
 
Interest income
$
20

 
18

 
33

Other, net*
65

 
117

 
12

 
$
85

 
135

 
45

*Includes derivatives-related activities. 2012 also includes a $37 million co-venturer contractual payment related to Rockies Express Pipeline.
 
 
 
 
 
 
Research and Development Expenditures—expensed
$
69

 
70

 
69

 
 
 
 
 
 
Advertising Expenses
$
68

 
57

 
63

 
 
 
 
 
 
Foreign Currency Transaction (Gains) Losses—after-tax
 
 
 
 
 
Midstream
$
—

 
—

 
—

Chemicals
—

 
—

 
—

Refining
(41
)
 
(17
)
 
(15
)
Marketing and Specialties
(5
)
 
(5
)
 
(9
)
Corporate and Other
2

 
—

 
—

 
$
(44
)
 
(22
)
 
(24
)
Related Party Transactions
Related Party Transactions
Related Party Transactions
Significant transactions with related parties were:
 
 
Millions of Dollars
 
2013

 
2012

 
2011

 
 
 
 
 
 
Operating revenues and other income (a)
$
7,907

 
8,226

 
9,024

Gain on dispositions (b)
—

 
—

 
156

Purchases (c)
18,320

 
22,446

 
34,554

Operating expenses and selling, general and
administrative expenses (d)
109

 
208

 
361

Net interest expense (e)
8

 
8

 
10



(a)
We sold crude oil to MRC. NGL and other petrochemical feedstocks, along with solvents, were sold to CPChem, and gas oil and hydrogen feedstocks were sold to Excel. Certain feedstocks and intermediate products were sold to WRB. We also acted as agent for WRB in supplying other crude oil and feedstocks, wherein the transactional amounts did not impact operating revenues. In addition, we charged several of our affiliates, including CPChem and MSLP, for the use of common facilities, such as steam generators, waste and water treaters, and warehouse facilities.

(b)
In 2011, we sold the Seaway Products Pipeline Company to DCP Midstream for cash proceeds of $400 million, resulting in a before-tax gain of $156 million.

(c)
We purchased refined products from WRB. We also acted as agent for WRB in distributing asphalt and solvents, wherein the transactional amounts did not impact purchases. We purchased natural gas and NGL from DCP Midstream and CPChem for use in our refinery processes and other feedstocks from various affiliates. We purchased refined products from MRC. We also paid fees to various pipeline equity companies for transporting finished refined products. In addition, we paid a price upgrade to MSLP for heavy crude processing. We purchased base oils and fuel products from Excel for use in our refining and specialty businesses.

(d)
We paid utility and processing fees to various affiliates.

(e)
We incurred interest expense on a note payable to MSLP. See Note 6—Investments, Loans and Long-Term Receivables and Note 12—Debt, for additional information on loans with affiliated companies.

Also included in the table above are transactions with ConocoPhillips through April 30, 2012, the effective date of the Separation. These transactions include crude oil purchased from ConocoPhillips as feedstock for our refineries and power sold to ConocoPhillips from our power generation facilities. For 2012 and 2011, sales to ConocoPhillips, while it was a related party, were $381 million and $1,197 million, respectively, while purchases from ConocoPhillips were $5,328 million and $15,798 million, respectively.

As discussed in Note 1—Separation and Basis of Presentation, the consolidated statement of income includes expense allocations for certain corporate functions historically performed by ConocoPhillips and not allocated to its operating segments, including allocations of general corporate expenses related to executive oversight, accounting, treasury, tax, legal, procurement and information technology. Net charges from ConocoPhillips for these services, reflected in selling, general and administrative expenses in the consolidated statement of income, were $70 million and $180 million for 2012 and 2011, respectively.
Phillips 66 Partners LP
Phillips 66 Partners LP
Phillips 66 Partners LP

Initial Public Offering of Phillips 66 Partners LP
In 2013, we formed Phillips 66 Partners, a master limited partnership, to own, operate, develop and acquire primarily fee-based crude oil, refined petroleum product and NGL pipelines and terminals, as well as other transportation and midstream assets. On July 26, 2013, Phillips 66 Partners completed its initial public offering of 18,888,750 common units at a price of $23.00 per unit, which included a 2,463,750 common unit over-allotment option that was fully exercised by the underwriters. Phillips 66 Partners received $404 million in net proceeds from the sale of the units, after deducting underwriting discounts, commissions, structuring fees and offering expenses. Headquartered in Houston, Texas, Phillips 66 Partners' assets consist of crude oil and refined petroleum product pipeline, terminal, and storage systems in the Central and Gulf Coast regions of the United States, each of which is integral to a connected Phillips 66-operated refinery.

We own a 71.7 percent limited partner interest and a 2.0 percent general partner interest in Phillips 66 Partners, while the public owns a 26.3 percent limited partner interest. We consolidate Phillips 66 Partners as a VIE for financial reporting purposes (see Note 3—Variable Interest Entities (VIEs) for additional information). The public's ownership interest in Phillips 66 Partners is reflected as a noncontrolling interest in our financial statements, including $409 million in the equity section of our consolidated balance sheet as of December 31, 2013. Phillips 66 Partners' cash and cash equivalents at December 31, 2013, were $425 million.
Condensed Consolidating Financial Information
Condensed Consolidating Financial Information

Our $5.8 billion of Senior Notes were issued by Phillips 66, and are guaranteed by Phillips 66 Company, a 100-percent-owned subsidiary. Phillips 66 Company has fully and unconditionally guaranteed the payment obligations of Phillips 66 with respect to these debt securities. The following condensed consolidating financial information presents the results of operations, financial position and cash flows for:

•
Phillips 66 and Phillips 66 Company (in each case, reflecting investments in subsidiaries utilizing the equity method of accounting).
•
All other nonguarantor subsidiaries.
•
The consolidating adjustments necessary to present Phillips 66's results on a consolidated basis.

This condensed consolidating financial information should be read in conjunction with the accompanying consolidated financial statements and notes.
Effective with fiscal year 2013, we revised the cash flow presentation of inter-column transactions associated with the company’s centralized cash management program and intercompany loans, from operating cash flows to investing cash flows, in a new line item labeled “Intercompany lending activities.” Applicable prior periods have been revised to conform to this presentation. In addition, the 2012 condensed consolidating financial information was further revised to correct certain presentation matters associated with comprehensive income and accumulated comprehensive income.


 
Millions of Dollars
 
Year Ended December 31, 2013
Statement of Income
Phillips 66

Phillips 66 Company

All Other Subsidiaries

Consolidating Adjustments

Total Consolidated

Revenues and Other Income
 
 
 
 
 
Sales and other operating revenues
$
—

113,499

58,097

—

171,596

Equity in earnings of affiliates
3,905

3,723

509

(5,064
)
3,073

Net gain on dispositions
—

50

5

—

55

Other income (loss)
(3
)
53

35

—

85

Intercompany revenues
—

1,436

20,316

(21,752
)
—

Total Revenues and Other Income
3,902

118,761

78,962

(26,816
)
174,809

 
 
 
 
 
 
Costs and Expenses
 
 
 
 
 
Purchased crude oil and products
—

102,781

66,745

(21,281
)
148,245

Operating expenses
—

3,442

790

(26
)
4,206

Selling, general and administrative expenses
6

1,024

541

(93
)
1,478

Depreciation and amortization
—

730

217

—

947

Impairments
—

—

29

—

29

Taxes other than income taxes
—

5,148

8,972

(1
)
14,119

Accretion on discounted liabilities
—

19

5

—

24

Interest and debt expense
266

13

347

(351
)
275

Foreign currency transaction gains
—

—

(40
)
—

(40
)
Total Costs and Expenses
272

113,157

77,606

(21,752
)
169,283

Income from continuing operations before income taxes
3,630

5,604

1,356

(5,064
)
5,526

Provision (benefit) for income taxes
(96
)
1,699

241

—

1,844

Income From Continuing Operations
3,726

3,905

1,115

(5,064
)
3,682

Income from discontinued operations*
—

—

61

—

61

Net income
3,726

3,905

1,176

(5,064
)
3,743

Less: net income attributable to noncontrolling interests
—

—

17

—

17

Net Income Attributable to Phillips 66
$
3,726

3,905

1,159

(5,064
)
3,726

 
 
 
 
 

Comprehensive Income
$
4,077

4,256

1,199

(5,438
)
4,094

*Net of provision for income taxes on discontinued operations:
$
—

—

34

—

34


 
Millions of Dollars
 
Year Ended December 31, 2012
Statement of Income
Phillips 66

Phillips 66 Company

All Other Subsidiaries

Consolidating Adjustments

Total Consolidated

Revenues and Other Income
 
 
 
 
 
Sales and other operating revenues
$
—

117,574

61,716

—

179,290

Equity in earnings of affiliates
4,284

3,269

445

(4,864
)
3,134

Net gain on dispositions
—

192

1

—

193

Other income (loss)
2

(15
)
148

—

135

Intercompany revenues
1

2,739

23,346

(26,086
)
—

Total Revenues and Other Income
4,287

123,759

85,656

(30,950
)
182,752

 
 
 
 
 
 
Costs and Expenses
 
 
 
 
 
Purchased crude oil and products
—

106,687

73,715

(25,989
)
154,413

Operating expenses
—

3,329

760

(56
)
4,033

Selling, general and administrative expenses
4

1,312

428

(41
)
1,703

Depreciation and amortization
—

668

238

—

906

Impairments
—

71

1,087

—

1,158

Taxes other than income taxes
—

5,155

8,586

(1
)
13,740

Accretion on discounted liabilities
—

18

7

—

25

Interest and debt expense
212

29

4

1

246

Foreign currency transaction gains
—

—

(28
)
—

(28
)
Total Costs and Expenses
216

117,269

84,797

(26,086
)
176,196

Income from continuing operations before income taxes
4,071

6,490

859

(4,864
)
6,556

Provision (benefit) for income taxes
(53
)
2,206

320

—

2,473

Income From Continuing Operations
4,124

4,284

539

(4,864
)
4,083

Income from discontinued operations*
—

—

48

—

48

Net income
4,124

4,284

587

(4,864
)
4,131

Less: net income attributable to noncontrolling interests
—

—

7

—

7

Net Income Attributable to Phillips 66
$
4,124

4,284

580

(4,864
)
4,124

 
 
 
 
 
 
Comprehensive Income
$
4,228

4,388

623

(5,004
)
4,235

*Net of provision for income taxes on discontinued operations:
$
—

—

27

—

27



 
Millions of Dollars
 
Year Ended December 31, 2011
Statement of Income
Phillips 66

Phillips 66 Company

All Other Subsidiaries

Consolidating Adjustments

Total Consolidated

Revenues and Other Income
 
 
 
 
 
Sales and other operating revenues
$
—

131,761

64,170

—

195,931

Equity in earnings of affiliates
4,775

2,835

723

(5,490
)
2,843

Net gain (loss) on dispositions
—

1,867

(229
)
—

1,638

Other income
—

10

35

—

45

Intercompany revenues
—

4,887

27,249

(32,136
)
—

Total Revenues and Other Income
4,775

141,360

91,948

(37,626
)
200,457

 
 
 
 
 
 
Costs and Expenses
 
 
 
 
 
Purchased crude oil and products
—

124,772

80,088

(32,092
)
172,768

Operating expenses
—

3,278

837

(44
)
4,071

Selling, general and administrative expenses
—

995

399

—

1,394

Depreciation and amortization
—

655

247

—

902

Impairments
—

468

4

—

472

Taxes other than income taxes
—

4,801

9,486

—

14,287

Accretion on discounted liabilities
—

13

8

—

21

Interest and debt expense
—

16

1

—

17

Foreign currency transaction gains
—

(1
)
(33
)
—

(34
)
Total Costs and Expenses
—

134,997

91,037

(32,136
)
193,898

Income from continuing operations before income taxes
4,775

6,363

911

(5,490
)
6,559

Provision for income taxes
—

1,588

234

—

1,822

Income From Continuing Operations
4,775

4,775

677

(5,490
)
4,737

Income from discontinued operations*
—

—

43

—

43

Net income
4,775

4,775

720

(5,490
)
4,780

Less: net income attributable to noncontrolling interests
—

—

5

—

5

Net Income Attributable to Phillips 66
$
4,775

4,775

715

(5,490
)
4,775

 
 
 
 
 
 
Comprehensive Income
$
4,683

4,683

747

(5,425
)
4,688

*Net of provision for income taxes on discontinued operations:
$
—

—

22

—

22




 
Millions of Dollars
 
At December 31, 2013
Balance Sheet
Phillips 66

Phillips 66 Company

All Other Subsidiaries

Consolidating Adjustments

Total Consolidated

Assets
 
 
 
 
 
Cash and cash equivalents
$
—

2,162

3,238

—

5,400

Accounts and notes receivable
9

2,176

8,131

(684
)
9,632

Inventories
—

1,962

1,392

—

3,354

Prepaid expenses and other current assets
10

368

473

—

851

Total Current Assets
19

6,668

13,234

(684
)
19,237

Investments and long-term receivables
33,178

27,414

7,496

(56,868
)
11,220

Net properties, plants and equipment
—

12,031

3,367

—

15,398

Goodwill
—

3,094

2

—

3,096

Intangibles
—

694

4

—

698

Other assets
40

112

1

(4
)
149

Total Assets
$
33,237

50,013

24,104

(57,556
)
49,798

 
 
 
 
 
 
Liabilities and Equity
 
 
 
 
 
Accounts payable
$
1

7,508

4,265

(684
)
11,090

Short-term debt
—

18

6

—

24

Accrued income and other taxes
—

250

622

—

872

Employee benefit obligations
—

422

54

—

476

Other accruals
49

178

242

—

469

Total Current Liabilities
50

8,376

5,189

(684
)
12,931

Long-term debt
5,796

152

183

—

6,131

Asset retirement obligations and accrued environmental costs
—

527

173

—

700

Deferred income taxes
—

5,045

1,084

(4
)
6,125

Employee benefit obligations
—

724

197

—

921

Other liabilities and deferred credits
5,441

2,153

7,052

(14,048
)
598

Total Liabilities
11,287

16,977

13,878

(14,736
)
27,406

Common stock
16,291

25,938

8,302

(34,240
)
16,291

Retained earnings
5,622

7,061

1,163

(8,224
)
5,622

Accumulated other comprehensive income
37

37

319

(356
)
37

Noncontrolling interests
—

—

442

—

442

Total Liabilities and Equity
$
33,237

50,013

24,104

(57,556
)
49,798


 
Millions of Dollars
 
At December 31, 2012
Balance Sheet
Phillips 66

Phillips 66 Company

All Other Subsidiaries

Consolidating Adjustments

Total Consolidated

Assets
 
 
 
 
 
Cash and cash equivalents
$
—

2,410

1,064

—

3,474

Accounts and notes receivable
47

2,889

8,456

(989
)
10,403

Inventories
—

1,938

1,492

—

3,430

Prepaid expenses and other current assets
11

403

241

—

655

Total Current Assets
58

7,640

11,253

(989
)
17,962

Investments and long-term receivables
28,934

20,937

6,235

(45,635
)
10,471

Net properties, plants and equipment
—

11,714

3,693

—

15,407

Goodwill
—

3,344

—

—

3,344

Intangibles
—

710

14

—

724

Other assets
78

114

9

(36
)
165

Total Assets
$
29,070

44,459

21,204

(46,660
)
48,073

 
 
 
 
 
 
Liabilities and Equity
 
 
 
 
 
Accounts payable
$
17

7,014

4,668

(989
)
10,710

Short-term debt
—

13

—

—

13

Accrued income and other taxes
—

245

656

—

901

Employee benefit obligations
—

391

50

—

441

Other accruals
50

279

88

—

417

Total Current Liabilities
67

7,942

5,462

(989
)
12,482

Long-term debt
6,795

165

1

—

6,961

Asset retirement obligations and accrued environmental costs
—

563

177

—

740

Deferred income taxes
—

4,478

1,002

(36
)
5,444

Employee benefit obligations
—

1,094

231

—

1,325

Other liabilities and deferred credits
1,433

1,435

5,768

(8,321
)
315

Total Liabilities
8,295

15,677

12,641

(9,346
)
27,267

Common stock
18,376

25,951

8,149

(34,100
)
18,376

Retained earnings
2,713

3,145

87

(3,232
)
2,713

Accumulated other comprehensive income (loss)
(314
)
(314
)
296

18

(314
)
Noncontrolling interests
—

—

31

—

31

Total Liabilities and Equity
$
29,070

44,459

21,204

(46,660
)
48,073




 
Millions of Dollars
 
Year Ended December 31, 2013
Statement of Cash Flows
Phillips 66

Phillips 66 Company

All Other Subsidiaries

Consolidating Adjustments

Total Consolidated

Cash Flows From Operating Activities
 
 
 
 
 
Net cash provided by continuing operating activities
$
5

4,972

1,045

(80
)
5,942

Net cash provided by discontinued operations
—

—

85

—

85

Net Cash Provided by Operating Activities
5

4,972

1,130

(80
)
6,027

 
 
 
 
 
 
Cash Flows From Investing Activities
 
 
 
 
 
Capital expenditures and investments
—

(1,108
)
(690
)
19

(1,779
)
Proceeds from asset dispositions
—

63

1,151

—

1,214

Intercompany lending activities
4,055

(4,206
)
151

—

—

Advances/loans—related parties
—

—

(65
)
—

(65
)
Collection of advances/loans—related parties
—

—

165

—

165

Other
—

42

6

—

48

Net cash provided by (used in) continuing investing activities
4,055

(5,209
)
718

19

(417
)
Net cash used in discontinued operations
—

—

(27
)
—

(27
)
Net Cash Provided by (Used in) Investing Activities
4,055

(5,209
)
691

19

(444
)
 
 
 
 
 
 
Cash Flows From Financing Activities
 
 
 
 
 
Repayment of debt
(1,000
)
(18
)
(2
)
—

(1,020
)
Issuance of common stock
6

—

—

—

6

Repurchase of common stock
(2,246
)
—

—

—

(2,246
)
Dividends paid on common stock
(807
)
—

(72
)
72

(807
)
Distributions to controlling interests
—

—

(8
)
8

—

Distributions to noncontrolling interests
—

—

(10
)
—

(10
)
Net proceeds from issuance of Phillips 66 Partners LP common units
—

—

404

—

404

Other
(13
)
7

19

(19
)
(6
)
Net cash provided by (used in) continuing financing activities
(4,060
)
(11
)
331

61

(3,679
)
Net cash provided by (used in) discontinued operations
—

—

—

—

—

Net Cash Provided by (Used in) Financing Activities
(4,060
)
(11
)
331

61

(3,679
)
 
 
 
 
 
 
Effect of Exchange Rate Changes on Cash and Cash Equivalents
—

—

22

—

22

 
 
 
 
 
 
Net Change in Cash and Cash Equivalents
—

(248
)
2,174

—

1,926

Cash and cash equivalents at beginning of period
—

2,410

1,064

—

3,474

Cash and Cash Equivalents at End of Period
$
—

2,162

3,238

—

5,400



 
Millions of Dollars
 
Year Ended December 31, 2012
Statement of Cash Flows
Phillips 66

Phillips 66 Company

All Other Subsidiaries

Consolidating Adjustments

Total Consolidated

Cash Flows From Operating Activities
 
 
 
 
 
Net cash provided by (used in) continuing operating activities
$
(42
)
7,429

(3,128
)
—

4,259

Net cash provided by discontinued operations
—

—

37

—

37

Net Cash Provided by (Used in) Operating Activities
(42
)
7,429

(3,091
)
—

4,296

 
 
 
 
 
 
Cash Flows From Investing Activities
 
 
 
 
 
Capital expenditures and investments
—

(861
)
(850
)
10

(1,701
)
Proceeds from asset dispositions
—

240

46

—

286

Intercompany lending activities
1,376

(4,334
)
2,958

—

—

Advances/loans—related parties
—

—

(100
)
—

(100
)
Collection of advances/loans—related parties
—

—

7

(7
)
—

Other
—

—

—

—

—

Net cash provided by (used in) continuing investing activities
1,376

(4,955
)
2,061

3

(1,515
)
Net cash used in discontinued operations
—

—

(20
)
—

(20
)
Net Cash Provided by (Used in) Investing Activities
1,376

(4,955
)
2,041

3

(1,535
)
 
 
 
 
 
 
Cash Flows From Financing Activities
 
 
 
 
 
Contributions from (distributions to) ConocoPhillips
(7,469
)
110

2,104

—

(5,255
)
Issuance of debt
7,794

—

—

—

7,794

Repayment of debt
(1,000
)
(208
)
(9
)
7

(1,210
)
Issuance of common stock
47

—

—

—

47

Repurchase of common stock
(356
)
—

—

—

(356
)
Dividends paid on common stock
(282
)
—

—

—

(282
)
Distributions to controlling interests
—

—

—

—

—

Distributions to noncontrolling interests
—

—

(5
)
—

(5
)
Other
(68
)
34

10

(10
)
(34
)
Net cash provided by (used in) continuing financing activities
(1,334
)
(64
)
2,100

(3
)
699

Net cash provided by (used in) discontinued operations
—

—

—

—

—

Net Cash Provided by (Used in) Financing Activities
(1,334
)
(64
)
2,100

(3
)
699

 
 
 
 
 
 
Effect of Exchange Rate Changes on Cash and Cash Equivalents
—

—

14

—

14

 
 
 
 
 
 
Net Change in Cash and Cash Equivalents
—

2,410

1,064

—

3,474

Cash and cash equivalents at beginning of period
—

—

—

—

—

Cash and Cash Equivalents at End of Period
$
—

2,410

1,064

—

3,474



 
Millions of Dollars
 
Year Ended December 31, 2011
Statement of Cash Flows
Phillips 66

Phillips 66 Company

All Other Subsidiaries

Consolidating Adjustments

Total Consolidated

Cash Flows From Operating Activities
 
 
 
 
 
Net cash provided by continuing operating activities
$
—

3,038

1,915

—

4,953

Net cash provided by discontinued operations
—

—

53

—

53

Net Cash Provided by Operating Activities
—

3,038

1,968

—

5,006

 
 
 
 
 
 
Cash Flows From Investing Activities
 
 
 
 
 
Capital expenditures and investments
—

(717
)
(299
)
—

(1,016
)
Proceeds from asset dispositions
—

2,517

110

—

2,627

Collection of advances/loans—related parties
—

550

—

—

550

Other
—

51

286

—

337

Net cash provided by continuing investing activities
—

2,401

97

—

2,498

Net cash used in discontinued operations
—

—

(6
)
—

(6
)
Net Cash Provided by Investing Activities
—

2,401

91

—

2,492

 
 
 
 
 
 
Cash Flows From Financing Activities
 
 
 
 
 
Distributions to ConocoPhillips
—

(5,421
)
(2,050
)
—

(7,471
)
Repayment of debt
—

(18
)
(8
)
—

(26
)
Distributions to noncontrolling interests
—

—

(1
)
—

(1
)
Other
—

—

—

—

—

Net cash used in continuing financing activities
—

(5,439
)
(2,059
)
—

(7,498
)
Net cash provided by (used in) discontinued operations
—

—

—

—

—

Net Cash Used in Financing Activities
—

(5,439
)
(2,059
)
—

(7,498
)
 
 
 
 
 
 
Net Change in Cash and Cash Equivalents
—

—

—

—

—

Cash and cash equivalents at beginning of period
—

—

—

—

—

Cash and Cash Equivalents at End of Period
$
—

—

—

—

—

Schedule II - Valuation and Qualifying Accounts
Valuation and Qualifying Accounts
VALUATION AND QUALIFYING ACCOUNTS (Consolidated)
 
  
Millions of Dollars
Description
Balance at
January 1

 
Charged to
Expense

 
Other (a)

 
Deductions

 
 
 
Balance at
December 31

2013
 
 
 
 
 
 
 
 
 
 
 
Deducted from asset accounts:
 
 
 
 
 
 
 
 
 
 
 
Allowance for doubtful accounts and notes receivable
$
50

 
10

 
—

 
(13
)
 
(b)
 
47

Deferred tax asset valuation allowance
329

 
20

 
(222
)
 
—

 
  
 
127

2012
 
 
 
 
 
 
 
 
 
 
 
Deducted from asset accounts:
 
 
 
 
 
 
 
 
 
 
 
Allowance for doubtful accounts and notes receivable
$
13

 
36

 
—

 
1

 
(b)
 
50

Deferred tax asset valuation allowance
210

 
61

 
54

 
4

 
  
 
329

2011
 
 
 
 
 
 
 
 
 
 
 
Deducted from asset accounts:
 
 
 
 
 
 
 
 
 
 
 
Allowance for doubtful accounts and notes receivable
$
7

 
7

 
—

 
(1
)
 
(b)
 
13

Deferred tax asset valuation allowance
165

 
54

 
(9
)
 
—

 
 
 
210

(a)Represents acquisitions/dispositions/revisions, net transfers associated with the Separation and the effect of translating foreign financial statements.
(b)Amounts charged off less recoveries of amounts previously charged off.
Accounting Policies (Policies)
Basis of Presentation 
Basis of Presentation
Prior to the Separation, our results of operations, financial position and cash flows consisted of ConocoPhillips' refining, marketing and transportation operations; its natural gas gathering, processing, transmission and marketing operations, primarily conducted through its equity investment in DCP Midstream, LLC (DCP Midstream); its petrochemical operations, conducted through its equity investment in Chevron Phillips Chemical Company LLC (CPChem); its power generation operations; and an allocable portion of its corporate costs (together, the “downstream businesses”). These financial statements have been presented as if the downstream businesses had been combined for all periods presented prior to the Separation. All intercompany transactions and accounts within the downstream businesses were eliminated. The statement of income for the periods prior to the Separation includes expense allocations for certain corporate functions historically performed by ConocoPhillips and not allocated to its operating segments, including allocations of general corporate expenses related to executive oversight, accounting, treasury, tax, legal, procurement and information technology. These allocations were based primarily on specific identification of time and/or activities associated with the downstream businesses, employee headcount or capital expenditures, and our management believes the assumptions underlying the allocations were reasonable. The combined financial statements may not necessarily reflect all of the actual expenses that would have been incurred had we been a stand-alone company during the periods presented prior to the Separation. All financial information presented after the Separation represents the consolidated results of operations, financial position and cash flows of Phillips 66. Accordingly:

•
Our consolidated statements of income, comprehensive income, cash flows and changes in equity for the year ended December 31, 2013, consist entirely of the consolidated results of Phillips 66. Our consolidated statements of income, comprehensive income, cash flows and changes in equity for the year ended December 31, 2012, consist of the consolidated results of Phillips 66 for the eight months ended December 31, 2012, and of the combined results of the downstream businesses for the four months ended April 30, 2012. Our consolidated statements of income, comprehensive income, cash flows and changes in equity for the year ended December 31, 2011, consist entirely of the combined results of the downstream businesses.

•
Our consolidated balance sheet at December 31, 2013 and 2012, consists of the consolidated balances of Phillips 66.

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 either classified as available-for-sale if fair value is readily determinable, or the cost method is used 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, including realignment of our operating segments, as well as the movement of Phillips Specialty Products Inc. (PSPI) to discontinued operations. See Note 5—Assets Held for Sale or Sold for additional information.
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 in stockholders' equity. Foreign currency transaction gains and losses are included 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 accounting principles generally accepted 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 net (i.e., on the same income statement line) in the "Purchased crude oil and products" line of our consolidated statement of income.
Cash Equivalents 
Cash Equivalents—Cash equivalents are highly liquid, short-term investments that are readily convertible to known amounts of cash and have original maturities of 90 days or less from their date of purchase. They are carried at cost plus accrued interest, which approximates fair value.
Shipping and Handling Costs 
Shipping and Handling Costs—We record shipping and handling costs in purchased crude oil and products. Freight costs billed to customers are recorded as a component of revenue.
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, but not unusual/nonrecurring costs or research and development costs. 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 observable inputs other than quoted prices included within Level 1 for the asset or liability, either directly or indirectly through market-corroborated inputs. Level 3 inputs are unobservable inputs for the asset or liability reflecting significant modifications to observable related market data or our assumptions about pricing by market participants.
Derivative Instruments 
Derivative Instruments—Derivative instruments are recorded on the balance sheet at fair value. If the right of offset exists and certain other criteria are met, derivative assets and liabilities with the same counterparty are netted on the balance sheet and the collateral payable or receivable is netted 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. Gains and losses from derivatives not accounted for as hedges are recognized immediately in earnings. For derivative instruments that are designated and qualify as a fair value hedge, the gains or losses from adjusting the derivative to its fair value will be immediately recognized in earnings and, to the extent the hedge is effective, offset the concurrent recognition of changes in the fair value of the hedged item. Gains or losses from derivative instruments that are designated and qualify as a cash flow hedge or hedge of a net investment in a foreign entity are recognized in other comprehensive income and appear on the balance sheet in accumulated other comprehensive income until the hedged transaction is recognized in earnings; however, to the extent the change in the value of the derivative exceeds the change in the anticipated cash flows of the hedged transaction, the excess gains or losses will be recognized immediately in earnings.
Capitalized Interest 
Capitalized Interest—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 underlying asset’s properties, plant and equipment and is amortized over the useful life of the assets.

Intangible Assets Other Than Goodwill 
Intangible Assets Other Than Goodwill—Intangible assets with finite useful lives are amortized by 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. These indefinite-lived intangibles are considered impaired if the fair value of the intangible asset is lower than 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, fair value of intangible assets is determined based upon the present values of expected future cash flows using discount rates 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 resulting from a business combination is not amortized but is tested at least annually for impairment. If the fair value of a reporting unit is less than the recorded book value of the reporting unit’s assets (including goodwill), less liabilities, then a hypothetical purchase price allocation is performed on the reporting unit’s assets and liabilities using the fair value of the reporting unit as the purchase price in the calculation. If the amount of goodwill resulting from this hypothetical purchase price allocation is less than the recorded amount of goodwill, the recorded goodwill is written down to the new amount. For purposes of testing goodwill for impairment, we have three reporting units with goodwill balances, Transportation, Refining and M&S.
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 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, the carrying value is written down to estimated fair value through additional amortization or depreciation provisions and reported in the "Impairment" line of 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—generally at an entire refinery complex level. Because there usually is a lack of quoted market prices for long-lived assets, the fair value of impaired assets is typically determined based on the present values of expected future cash flows using discount rates believed to be consistent with those used by principal market participants or based on a multiple of operating cash flows validated with historical market transactions of similar assets where possible. 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 believed to be consistent with those used by principal market participants, plus market analysis of comparable assets owned by the investee, 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 of 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—Fair value of legal obligations to retire and remove long-lived assets are recorded in the period in which the obligation is incurred. When the liability is initially recorded, we capitalize this cost by increasing the carrying amount of the related properties, plants and equipment. Over time, the liability is increased for the change in its present value, and the capitalized cost in properties, plants and equipment is depreciated over the useful life of the related asset. For additional information, see Note 10—Asset Retirement Obligations and Accrued Environmental Costs.

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 purchase 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—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 is essentially 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 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 
Stock-Based Compensation—We recognize stock-based compensation expense over the shorter of: (1) the service period (i.e., the 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, which is the minimum time required for an award to not be subject to forfeiture. We have elected to recognize expense on a straight-line basis over the service period for the entire award, whether the award was granted with ratable or cliff vesting.
Income Taxes 
Income Taxes—For periods prior to the Separation, our taxable income was included in the U.S. federal income tax returns and in a number of state income tax returns of ConocoPhillips. In the accompanying consolidated financial statements for periods prior to the Separation, our provision for income taxes is computed as if we were a stand-alone tax-paying entity.

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 and loss and tax credit carryforwards. 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 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.

Loans and Long-term Receivables 
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.
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 record receivables for probable insurance or other third-party recoveries. In the case of income-tax-related contingencies, we use a cumulative probability-weighted loss accrual in cases where sustaining a tax position is less than certain.
Inventories (Tables)
Summary of inventories
Inventories at December 31 consisted of the following:
 
 
Millions of Dollars
 
2013

 
2012

 
 
 
 
Crude oil and petroleum products
$
3,093

 
3,138

Materials and supplies
261

 
292

 
$
3,354

 
3,430

Assets Held for Sale or Sold Assets Held for Sale or Sold (Tables)
Summary of Assets and Liabilities and Sales, Revenues and Income of Assets Held for Sale

 
Millions of Dollars
 
2013

 
2012

Assets
 
 
 
Accounts and notes receivable
$
24

 
23

Inventories
18

 
18

Total current assets of discontinued operations
42

 
41

Net properties, plants and equipment
58

 
42

Intangibles
6

 
6

Total assets of discontinued operations
$
106

 
89

 
 
 
 
Liabilities
 
 
 
Accounts payable and other current liabilities
$
18

 
8

Total current liabilities of discontinued operations
18

 
8

Deferred income taxes
12

 
7

Total liabilities of discontinued operations
$
30

 
15



Sales and other operating revenues and income from discontinued operations related to PSPI, were as follows:

 
Millions of Dollars
 
2013

 
2012

 
2011

 
 
 
 
 
 
Sales and other operating revenues from discontinued operations
$
232

 
180

 
167

 
 
 
 
 
 
Income from discontinued operations before-tax
$
95

 
75

 
65

Income tax expense
34

 
27

 
22

Income from discontinued operations
$
61

 
48

 
43

Investments, Loans and Long-Term Receivables (Tables)
Schedule of Long Term Investments and Receivables 
Components of investments, loans and long-term receivables at December 31 were:
 
 
Millions of Dollars
 
2013

 
2012

 
 
 
 
Equity investments
$
11,080

 
10,291

Long-term receivables
74

 
132

Other investments
66

 
48

 
$
11,220

 
10,471

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 as follows:
 
 
Millions of Dollars
 
2013

 
2012

 
2011

 
 
 
 
 
 
Revenues
$
59,500

 
55,401

 
59,044

Income before income taxes
5,975

 
6,265

 
6,083

Net income
5,838

 
6,122

 
5,742

Current assets
9,865

 
9,646

 
8,752

Noncurrent assets
40,188

 
37,269

 
34,329

Current liabilities
7,971

 
8,319

 
6,837

Noncurrent liabilities
9,959

 
9,251

 
10,279

Properties, Plants and Equipment (Tables)
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
 
2013
 
2012
 
Gross
PP&E

 
Accum.
D&A

 
Net
PP&E

 
Gross
PP&E

 
Accum.
D&A

 
Net
PP&E

 
 
 
 
 
 
 
 
 
 
 
 
Midstream
$
2,792

 
1,104

 
1,688

 
2,460

 
1,016

 
1,444

Chemicals
—

 
—

 
—

 
—

 
—

 
—

Refining
19,264

 
6,718

 
12,546

 
17,989

 
5,913

 
12,076

Marketing and Specialties
1,395

 
749

 
646

 
2,437

 
1,057

 
1,380

Corporate and Other
975

 
457

 
518

 
880

 
415

 
465

Discontinued Operations*
—

 
—

 
—

 
63

 
21

 
42

 
$
24,426

 
9,028

 
15,398


23,829


8,422

 
15,407


* At December 31, 2013, net PP&E of $58 million associated with discontinued operations was classified as current assets.
Goodwill and Intangibles (Tables)
Schedule of Changes in Carrying Amount of Goodwill 
he carrying amount of goodwill was as follows:
 
 
Millions of Dollars
 
Midstream

 
Refining

 
Marketing and Specialties

 
Total

 
 
 
 
 
 
 
 
Balance at January 1, 2012
$
518

 
1,922

 
892

 
3,332

Goodwill allocated to assets sold
—

 
(25
)
 
—

 
(25
)
Tax and other adjustments
—

 
37

 
—

 
37

Balance at December 31, 2012
518

 
1,934

 
892

 
3,344

Tax and other adjustments
—

 
(15
)
 
—

 
(15
)
Goodwill allocated to assets held-for-sale or sold
—

 
—

 
(233
)
 
(233
)
Balance at December 31, 2013
$
518

 
1,919

 
659

 
3,096

Schedule of Changes in Carrying Value of Intangible Assets 
Information at December 31 on the carrying value of intangible assets follows:
 
 
Millions of Dollars
 
Gross Carrying
Amount
 
2013

 
2012

Indefinite-Lived Intangible Assets
 
 
 
Trade names and trademarks
$
494

 
494

Refinery air and operating permits
200

 
207

 
$
694

 
701

Impairments (Tables)
Impairment Charges
During 2013, 2012 and 2011, we recognized the following before-tax impairment charges:
 
 
Millions of Dollars
 
2013

 
2012

 
2011

 
 
 
 
 
 
Midstream
$
1

 
524

 
6

Refining
3

 
608

 
465

Marketing and Specialties
16

 
1

 
1

Corporate and Other
9

 
25

 
—

 
$
29

 
1,158

 
472

Asset Retirement Obligations and Accrued Environmental Costs (Tables)
Schedule of Asset Retirement Obligations and Accrual for Environmental Costs 
Asset retirement obligations and accrued environmental costs at December 31 were:
 
 
Millions of Dollars
 
2013

 
2012

 
 
 
 
Asset retirement obligations
$
309

 
314

Accrued environmental costs
492

 
530

Total asset retirement obligations and accrued environmental costs
801

 
844

Asset retirement obligations and accrued environmental costs due within one year*
(101
)
 
(104
)
Long-term asset retirement obligations and accrued environmental costs
$
700

 
740

*Classified as a current liability on the balance sheet, under the caption “Other accruals.”
Schedule of Change in Asset Retirement Obligation 
During 2013 and 2012, our overall asset retirement obligation changed as follows:
 
 
Millions of Dollars
 
2013

 
2012

 
 
 
 
Balance at January 1
$
314

 
378

Accretion of discount
11

 
13

New obligations
3

 
3

Changes in estimates of existing obligations
12

 
(14
)
Spending on existing obligations
(13
)
 
(16
)
Property dispositions
(20
)
 
(53
)
Foreign currency translation
2

 
3

Balance at December 31
$
309

 
314

Earnings per Share (Tables)
Reconciliation of Basic and Diluted Earnings Per Share
On April 30, 2012, 625.3 million shares of our common stock were distributed to ConocoPhillips stockholders in conjunction with the Separation. For comparative purposes, and to provide a more meaningful calculation of weighted-average shares outstanding, we have assumed this amount to be outstanding as of the beginning of each period prior to the Separation presented in the calculation of weighted-average shares. In addition, we have assumed the fully vested stock and unit awards outstanding at April 30, 2012, were also outstanding for each of the periods presented prior to the Separation; and we have assumed the dilutive securities outstanding at April 30, 2012, were also outstanding for each period prior to the Separation.
 
2013
 
2012
 
2011
 
Basic
Diluted
 
Basic
Diluted
 
Basic
Diluted
Amounts attributed to Phillips 66 Common Stockholders (millions):
 
 
 
 
 
 
 
 
Income from continuing operations attributable to Phillips 66
$
3,665

3,665

 
4,076

4,076

 
4,732

4,732

Income allocated to participating securities
(5
)
—

 
(2
)
—

 
—

—

Income from continuing operations available to common stockholders
3,660

3,665

 
4,074

4,076

 
4,732

4,732

Discontinued operations
61

61

 
48

48

 
43

43

Net income available to common stockholders
$
3,721

3,726

 
4,122

4,124

 
4,775

4,775

 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding (thousands):
612,918

612,918

 
628,835

628,835

 
627,628

627,628

Dilutive effect of stock-based compensation
—

6,071

 
—

7,929

 
—

7,017

Weighted-average common shares outstanding
612,918

618,989

 
628,835

636,764

 
627,628

634,645

 
 
 
 
 
 
 
 
 
Earnings Per Share of Common Stock (dollars):
 
 
 
 
 
 
 
 
Income from continuing operations attributable to Phillips 66
$
5.97

5.92

 
6.47

6.40

 
7.54

7.45

Discontinued operations
0.10

0.10

 
0.08

0.08

 
0.07

0.07

Earnings Per Share
$
6.07

6.02

 
6.55

6.48

 
7.61

7.52

Debt (Tables)
Summary of long term debt
Long-term debt at December 31 was:
 
 
Millions of Dollars
 
2013

 
2012

 
 
 
 
1.95% Senior Notes due 2015
$
800

 
800

2.95% Senior Notes due 2017
1,500

 
1,500

4.30% Senior Notes due 2022
2,000

 
2,000

5.875% Senior Notes due 2042
1,500

 
1,500

Industrial Development Bonds due 2018 through 2021 at 0.05%-0.07%
 at year-end 2013 and 0.09%–0.23% at year-end 2012
50

 
50

Term loan due 2014 through 2015 at 1.465% at year-end 2012
—

 
1,000

Note payable to Merey Sweeny, L.P. due 2020 at 7% (related party)
110

 
122

Other
1

 
1

Debt at face value
5,961

 
6,973

Capitalized leases
199

 
6

Net unamortized premiums and discounts
(5
)
 
(5
)
Total debt
6,155

 
6,974

Short-term debt
(24
)
 
(13
)
Long-term debt
$
6,131

 
6,961

Derivatives and Financial Instruments (Tables)
Summary of fair value of commodity derivative assets and liabilities and gains (losses) from derivative contracts 
 
Millions of Dollars
 
2013

 
2012

Assets
 
 
 
Accounts and notes receivable
$
2

 
—

Prepaid expenses and other current assets
592

 
767

Other assets
2

 
3

Liabilities
 
 
 
Other accruals
633

 
766

Other liabilities and deferred credits
1

 
3

Hedge accounting has not been used for any item in the table.


The gains (losses) from commodity derivatives incurred, and the line items where they appear on our consolidated statement of income were:
 
 
Millions of Dollars
 
2013

 
2012

 
2011

 
 
 
 
 
 
Sales and other operating revenues
$
17

 
3

 
(620
)
Equity in earnings of affiliates
(19
)
 
6

 
—

Other income
3

 
39

 
12

Purchased crude oil and products
95

 
32

 
162

Hedge accounting has not been used for any item in the table.
Summary of material net exposures from outstanding commodity derivative contracts 
 
 
Open Position
Long / (Short)
 
2013

 
2012

Commodity
 
 
 
Crude oil, refined products and NGL (millions of barrels)
(9
)
 
(8
)
Fair Value Measurements (Tables)
Fair Value Hierarchy for Material Financial Instruments and Derivative Assets and Liabilities, Including the Effect of Counterparty Netting 
The carrying values and fair values by hierarchy of our material financial instruments, either carried or disclosed at fair value, and derivative assets and liabilities, including any effects of master netting agreements or collateral, were:
 
Millions of Dollars
 
December 31, 2013
 
Fair Value Hierarchy
 
Total Fair Value of Gross Assets & Liabilities

Effect of Counterparty Netting

Effect of Collateral Netting

Difference in Carrying Value and Fair Value

Net Carrying Value Presented on the Balance Sheet

Cash Collateral Received or Paid, Not Offset on Balance Sheet

 
Level 1

 
Level 2

 
Level 3

Commodity Derivative Assets
 
 
 
 
 
 
 
 
 
 
 
 
Exchange-cleared instruments
$
227

 
332

 
—

 
559

(538
)
—

—

21

—

OTC instruments
—

 
10

 
—

 
10

(8
)
—

—

2

—

Physical forward contracts*
—

 
25

 
2

 
27

—

—

—

27

—

Rabbi trust assets
64

 
—

 
—

 
64

N/A

N/A

—

64

N/A

 
$
291

 
367

 
2

 
660

(546
)
—

—

114

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity Derivative Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Exchange-cleared instruments
$
253

 
326

 
—

 
579

(538
)
(41
)
—

—

—

OTC instruments
—

 
11

 
—

 
11

(8
)
—

—

3

—

Physical forward contracts*
—

 
43

 
1

 
44

—

—

—

44

—

Floating-rate debt
50

 
—

 
—

 
50

N/A

N/A

—

50

N/A

Fixed-rate debt, excluding capital leases**
—

 
6,168

 
—

 
6,168

N/A

N/A

(262
)
5,906

N/A

 
$
303

 
6,548

 
1

 
6,852

(546
)
(41
)
(262
)
6,003

 
*Physical forward contracts may have a larger value on the balance sheet than disclosed in the fair value hierarchy when the remaining contract term at the reporting date is greater than 12 months and the short-term portion is an asset while the long-term portion is a liability, or vice versa.
**We carry fixed-rate debt on the balance sheet at amortized cost.

 
Millions of Dollars
 
December 31, 2012
 
Fair Value Hierarchy
 
Total Fair Value of Gross Assets & Liabilities

Effect of Counterparty Netting

Effect of Collateral Netting

Difference in Carrying Value and Fair Value

Net Carrying Value Presented on the Balance Sheet

Cash Collateral Received or Paid, Not Offset on Balance Sheet

 
Level 1

 
Level 2

 
Level 3

 
Commodity Derivative Assets
 
 
 
 
 
 
 
 
 
 
 
 
Exchange-cleared instruments
$
380

 
309

 
—

 
689

(672
)
(8
)
—

9

—

OTC instruments
—

 
15

 
—

 
15

(7
)
—

—

8

—

Physical forward contracts*
—

 
61

 
2

 
63

4

—

—

67

—

Rabbi trust assets
50

 
—

 
—

 
50

N/A

N/A

—

50

N/A

 
$
430

 
385

 
2

 
817

(675
)
(8
)
—

134

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity Derivative Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Exchange-cleared instruments
$
393

 
328

 
—

 
721

(672
)
(42
)
—

7

(7
)
OTC instruments
—

 
13

 
—

 
13

(7
)
—

—

6

—

Physical forward contracts*
—

 
31

 
1

 
32

4

—

—

36

—

Floating-rate debt
1,050

 
—

 
—

 
1,050

N/A

N/A

—

1,050

N/A

Fixed-rate debt, excluding capital leases**
—

 
6,508

 
—

 
6,508

N/A

N/A

(590
)
5,918

N/A

 
$
1,443

 
6,880

 
1

 
8,324

(675
)
(42
)
(590
)
7,017

 
*Physical forward contracts may have a larger value on the balance sheet than disclosed in the fair value hierarchy when the remaining contract term at the reporting date is greater than 12 months and the short-term portion is an asset while the long-term portion is a liability, or vice versa.
**We carry fixed-rate debt on the balance sheet at amortized cost.
Value of Assets by Major Category, Measured at Fair Value on Nonrecurring Basis 
The following table shows the values of assets, by major category, measured at fair value on a nonrecurring basis in periods subsequent to their initial recognition during the years ended December 31, 2013 and 2012:

 
 
Millions of Dollars
 
 
 
Fair Value
Measurements Using
 
 
 
Fair Value*

 
Level 1
Inputs

 
Level 3
Inputs

 
Before-
Tax Loss

Year Ended December 31, 2013
 
 
 
 
 
 
 
Net properties, plants and equipment (held for use)
$
22

 
22

 
—

 
27

 
 
 
 
 
 
 
 
Year Ended December 31, 2012
 
 
 
 
 
 
 
Net properties, plants and equipment (held for use)
$
84

 
84

 
—

 
68

Net properties, plants and equipment (held for sale)
32

 
32

 
—

 
42

Equity method investment
781

 
—

 
781

 
1,044

*Represents the fair value at the time of the impairment.

Leases (Tables)
Schedule of Future Minimum Lease Payments 
Future minimum lease payments as of December 31, 2013, for capital lease obligations and operating lease obligations having initial or remaining payments due under noncancelable leases were:
 
 
Millions of Dollars
 
Capital Lease Obligations
Operating Lease Obligations
 
 
 
2014
$
19

522

2015
15

437

2016
14

289

2017
16

245

2018
13

197

Remaining years
196

355

Total
273

2,045

Less: income from subleases*
—

112

Net minimum lease payments
$
273

1,933

Less: amount representing interest
74

 
Capital lease obligations
$
199

 
*Includes $37 million related to subleases to related parties.
 
Schedule of Operating Lease Rental Expense 
Operating lease rental expense for the years ended December 31 was:
 
 
Millions of Dollars
 
2013

 
2012

 
2011

 
 
 
 
 
 
Minimum rentals
$
572

 
554

 
576

Contingent rentals
7

 
8

 
5

Less: sublease rental income
133

 
93

 
97

 
$
446

 
469

 
484

Employee Benefit Plans (Tables)
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
 
2013
 
2012
 
2013

 
2012

 
U.S.

 
Int'l.

 
U.S.

 
Int'l.

 
 
 
 
Change in Benefit Obligation
 
 
 
 
 
 
 
 
 
 
 
Benefit obligation at January 1
$
2,624

 
757

 
—

 
237

 
191

 
—

Service cost
125

 
36

 
82

 
22

 
8

 
4

Interest cost
91

 
31

 
65

 
25

 
7

 
5

Plan participant contributions
—

 
4

 
—

 
2

 
—

 
—

Plan amendments
—

 
—

 
—

 
—

 
—

 
(18
)
Actuarial loss (gain)
(194
)
 
1

 
90

 
83

 
(14
)
 
2

Benefits paid
(173
)
 
(15
)
 
(78
)
 
(12
)
 
(3
)
 
(1
)
Liabilities assumed from Separation
—

 
—

 
2,465

 
396

 
—

 
199

Foreign currency exchange rate change
—

 
26

 
—

 
4

 
—

 
—

Benefit obligation at December 31*
$
2,473

 
840

 
2,624

 
757

 
189

 
191

*Accumulated benefit obligation portion of above at December 31:
$
2,151

 
627

 
2,265

 
563

 


 


 
 
 
 
 
 
 
 
 
 
 
 
Change in Fair Value of Plan Assets
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets at January 1
$
1,762

 
527

 
—

 
120

 
—

 
—

Actual return on plan assets
283

 
60

 
91

 
35

 
—

 
—

Company contributions
136

 
50

 
37

 
36

 
3

 
1

Plan participant contributions
—

 
4

 
—

 
2

 
—

 
—

Benefits paid
(173
)
 
(15
)
 
(78
)
 
(12
)
 
(3
)
 
(1
)
Assets received from Separation
—

 
—

 
1,712

 
344

 
—

 
—

Foreign currency exchange rate change
—

 
19

 
—

 
2

 
—

 
—

Fair value of plan assets at December 31
$
2,008

 
645

 
1,762

 
527

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Funded Status at December 31
$
(465
)
 
(195
)
 
(862
)
 
(230
)
 
(189
)
 
(191
)
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, 2013 and 2012, include:
      
 
Millions of Dollars
 
Pension Benefits
 
Other Benefits
 
2013
 
2012
 
2013

 
2012

 
U.S.

 
Int'l.

 
U.S.

 
Int'l.

 
 
 
 
Amounts Recognized in the Consolidated Balance Sheet at December 31
 
 
 
 
 
 
 
 
 
 
 
Noncurrent assets
$
—

 
2

 
—

 
—

 
—

 
—

Current liabilities
(8
)
 
—

 
(8
)
 
—

 
(3
)
 
(3
)
Noncurrent liabilities
(457
)
 
(197
)
 
(854
)
 
(230
)
 
(186
)
 
(188
)
Total recognized
$
(465
)
 
(195
)
 
(862
)
 
(230
)
 
(189
)
 
(191
)
Before Tax Amounts Unrecognized in Net Periodic Benefit Cost Included in Accumulated Other Comprehensive Income 
Included in accumulated other comprehensive income 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
 
2013
 
2012
 
2013

 
2012

 
U.S.

 
Int'l.

 
U.S.

 
Int'l.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrecognized net actuarial loss (gain)
$
399

 
120

 
839

 
161

 
(18
)
 
(4
)
Unrecognized prior service cost (credit)
12

 
(11
)
 
15

 
(12
)
 
(13
)
 
(15
)
Sources of Change in Other Comprehensive Income 
 
Millions of Dollars
 
Pension Benefits
 
Other Benefits
 
2013
 
2012
 
2013

 
2012

 
U.S.

 
Int'l.

 
U.S.

 
Int'l.

 
 
 
 
Sources of Change in Other Comprehensive Income
 
 
 
 
 
 
 
 
 
 
 
Net gain (loss) arising during the period
$
356

 
25

 
(78
)
 
(72
)
 
14

 
(2
)
Amortization of (gain) loss included in income
84

 
16

 
49

 
7

 
—

 
(1
)
Net change during the period
$
440

 
41

 
(29
)
 
(65
)
 
14

 
(3
)
 
 
 
 
 
 
 
 
 
 
 
 
Prior service credit arising during the period
$
—

 
—

 
—

 
—

 
—

 
18

Amortization of prior service cost (credit) included in income
3

 
(1
)
 
2

 
(1
)
 
(2
)
 
—

Net change during the period
$
3

 
(1
)
 
2

 
(1
)
 
(2
)
 
18

Components of Net Periodic Benefit Cost 
The allocated benefit cost from Shared Plans, as well as the components of net periodic benefit cost associated with plans sponsored by us, for 2013, 2012 and 2011 is shown in the table below:

 
Millions of Dollars
 
Pension Benefits
 
Other Benefits
 
2013
 
2012
 
2011
 
2013

 
2012

 
2011

 
U.S.

 
Int'l.

 
U.S.

 
Int'l.

 
U.S.

 
Int'l.

 
 
 
 
 
 
Components of Net Periodic Benefit Cost
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
125

 
36

 
82

 
22

 
—

 
5

 
8

 
4

 
—

Interest cost
91

 
31

 
65

 
25

 
—

 
13

 
7

 
5

 
—

Expected return on plan assets
(120
)
 
(29
)
 
(81
)
 
(21
)
 
—

 
(8
)
 
—

 
—

 
—

Amortization of prior service cost (credit)
3

 
(1
)
 
2

 
(1
)
 
—

 
—

 
(2
)
 
—

 
—

Recognized net actuarial loss (gain)
84

 
16

 
49

 
7

 
—

 
3

 
—

 
(1
)
 
—

Subtotal net periodic benefit cost
183

 
53

 
117

 
32

 
—

 
13

 
13

 
8

 
—

Allocated benefit cost from ConocoPhillips
—

 
—

 
71

 
13

 
199

 
39

 
—

 
7

 
19

Total net periodic benefit cost
$
183

 
53

 
188

 
45

 
199

 
52

 
13

 
15

 
19

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 at December 31, 2013, that are expected to be amortized into net periodic benefit cost during 2014 are provided below:

 
Millions of Dollars
 
Pension Benefits
 
Other Benefits

 
U.S.

 
Int'l.

 
 
 
 
 
 
 
 
Unrecognized net actuarial loss (gain)
$
40

 
12

 
(2
)
Unrecognized prior service cost (credit)
3

 
(2
)
 
(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
 
2013
 
2012
 
2013
 
2012
 
U.S.

 
Int'l.
 
U.S.
 
Int'l.
 
 
 
 
Assumptions Used to Determine Benefit Obligations:
 
 
 
 
 
 
 
 
 
 
 
Discount rate
4.55
%
 
4.30
 
3.60
 
4.20
 
4.40
 
3.70
Rate of compensation increase
4.00

 
3.90
 
3.85
 
3.60
 
—
 
—
 
 
 
 
 
 
 
 
 
 
 
 
Assumptions Used to Determine Net Periodic Benefit Cost:
 
 
 
 
 
 
 
 
 
 
 
Discount rate
3.60
%
 
4.20
 
4.20
 
5.10
 
3.70
 
4.20
Expected return on plan assets
7.00

 
5.50
 
7.00
 
5.80
 
—
 
—
Rate of compensation increase
3.85

 
3.60
 
3.75
 
3.60
 
—
 
—
Fair Values of Pension Plan Assets 
The fair values of our pension plan assets at December 31, by asset class, were as follows:

 
Millions of Dollars
 
U.S.
 
International
 
Level 1

 
Level 2

 
Level 3

 
Total

 
Level 1

 
Level 2

 
Level 3

 
Total

2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.
$
552

 
—

 
—

 
552

 
129

 
—

 
—

 
129

International
439

 
—

 
—

 
439

 
104

 
—

 
—

 
104

Common/collective trusts
—

 
302

 
—

 
302

 
—

 
103

 
—

 
103

Mutual funds
—

 
42

 
—

 
42

 
5

 
—

 
—

 
5

Debt Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government
114

 
70

 
—

 
184

 
117

 
—

 
—

 
117

Corporate
—

 
305

 
—

 
305

 
—

 
—

 
—

 
—

Agency and mortgage-backed securities
—

 
90

 
—

 
90

 
—

 
—

 
—

 
—

Common/collective trusts
—

 
17

 
—

 
17

 
—

 
148

 
—

 
148

Mutual funds
—

 
—

 
—

 
—

 
1

 
—

 
—

 
1

Cash and cash equivalents
77

 
—

 
—

 
77

 
14

 
—

 
—

 
14

Derivatives
(1
)
 
1

 
—

 
—

 
—

 
—

 
—

 
—

Insurance contracts
—

 
—

 
—

 
—

 
—

 
—

 
16

 
16

Real estate
—

 
—

 
—

 
—

 
—

 
—

 
8

 
8

Total
$
1,181

 
827

 
—

 
2,008

 
370

 
251

 
24

 
645



 

 
Millions of Dollars
 
U.S.
 
International
 
Level 1

 
Level 2

 
Level 3

 
Total

 
Level 1

 
Level 2

 
Level 3

 
Total

2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.
$
529

 
—

 
—

 
529

 
100

 
—

 
—

 
100

International
340

 
—

 
—

 
340

 
86

 
—

 
—

 
86

Common/collective trusts
—

 
237

 
—

 
237

 
—

 
97

 
—

 
97

Mutual funds
—

 
42

 
—

 
42

 
2

 
—

 
—

 
2

Debt Securities
 
 
 
 
 
 

 
 
 
 
 
 
 
 
Government
160

 
54

 
—

 
214

 
97

 
—

 
—

 
97

Corporate
—

 
287

 
1

 
288

 
—

 
—

 
—

 
—

Agency and mortgage-backed securities
—

 
45

 
—

 
45

 
—

 
—

 
—

 
—

Common/collective trusts
—

 
17

 
—

 
17

 
—

 
112

 
—

 
112

Mutual funds
—

 
—

 
—

 
—

 
1

 
—

 
—

 
1

Cash and cash equivalents
42

 
—

 
—

 
42

 
9

 
—

 
—

 
9

Derivatives
—

 
2

 
—

 
2

 
—

 
—

 
—

 
—

Insurance contracts
—

 
—

 
—

 
—

 
—

 
—

 
15

 
15

Real estate
—

 
—

 
—

 
—

 
—

 
—

 
7

 
7

Total*
$
1,071

 
684

 
1

 
1,756

 
295

 
209

 
22

 
526

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.

 
 
 
 
 
 
 
 
2014
$
203

 
18

 
9

2015
210

 
20

 
12

2016
222

 
25

 
15

2017
233

 
27

 
17

2018
259

 
26

 
19

2019-2023
1,333

 
156

 
106

Share-Based Compensation Expense Recognized in Income and the Associated Tax Benefit 
Total share-based compensation expense recognized in income and the associated tax benefit for the years ended December 31, were as follows:
 
 
Millions of Dollars
 
2013

 
2012

 
2011

 
 
 
 
 
 
Compensation cost
$
132

 
94

 
46

Tax benefit
(50
)
 
(35
)
 
(18
)
Stock Option Activity 
The following summarizes our stock option activity from January 1, 2013 to December 31, 2013:
 
 
 
 
 
 
 
 
Millions of Dollars 

 
Options

 
Weighted-  
Average
Exercise Price

 
Weighted-Average
Grant-Date
Fair Value

 
 Aggregate
Intrinsic Value

 
 
 
 
 
 
 
 
Outstanding at January 1, 2013
8,350,641

 
$
26.25

 


 

Granted
546,900

 
62.17

 
$
16.77

 

Forfeited
(4,900
)
 
62.17

 

 


Exercised
(2,002,575
)
 
21.74

 

 
$
81

Expired or canceled
—

 
—

 

 

Outstanding at December 31, 2013
6,890,066

 
$
30.38

 

 

 
 
 
 
 
 
 
 
Vested at December 31, 2013
6,358,111

 
$
29.47

 

 
$
297

 
 
 
 
 
 
 
 
Exercisable at December 31, 2013
5,007,009

 
$
26.61

 

 
$
248

All option awards presented in this table are for Phillips 66 stock only, including those awards held by ConocoPhillips employees.

Significant Assumptions and Ranges in Assumptions Used to Calculate the Fair Market Values of Options Granted 
he following table provides the significant assumptions used to calculate the grant date fair market values of options granted over the years shown below, as calculated using the Black-Scholes-Merton option-pricing model:
 
 
2013

 
2012
 
2011
Assumptions used
 
 
 
 
 
Risk-free interest rate
1.18
%
 
1.62
 
3.10
Dividend yield
2.50
%
 
4.00
 
4.00
Volatility factor
35.47
%
 
33.30
 
33.40
Expected life (years)
6.23

 
7.42
 
6.87

Summary of Stock Unit Activity 
The following summarizes our stock unit activity from January 1, 2013 to December 31, 2013:

 
 
 
 
 
Millions of Dollars

 
Stock Units

 
Weighted-Average
Grant-Date  Fair Value

 
Total Fair Value

 
 
 
 
 
 
Outstanding at January 1, 2013
5,226,610

 
$
28.62

 

Granted
850,824

 
62.14

 

Forfeited
(64,762
)
 
43.23

 

Issued
(1,572,411
)
 
26.80

 
$
100

Outstanding at December 31, 2013
4,440,261

 
$
35.48

 

 
 
 
 
 
 
Not Vested at December 31, 2013
2,843,964

 
$
35.64

 

All RSU awards presented in this table are for Phillips 66 stock only, including those awards held by ConocoPhillips employees.
Summary of Performance Share Program Activity 
The following summarizes our performance share unit activity from January 1, 2013 to December 31, 2013:
 
 
 
 
 
 
Millions of Dollars

 
Performance
Share Units

 
Weighted-Average
Grant-Date 
Fair Value

 
Total Fair Value

 
 
 
 
 
 
Outstanding at January 1, 2013
2,592,274

 
$
34.36

 

Granted
266,052

 
62.17

 

Forfeited
—

 


 

Issued
(145,358
)
 
33.84

 
$
9

Outstanding at December 31, 2013
2,712,968

 
$
37.12

 

 
 
 
 
 
 
Not Vested at December 31, 2013
649,672

 
$
37.73

 

All PSU awards presented in this table are for Phillips 66 stock only, including those awards held by ConocoPhillips employees.

Income Taxes (Tables)
Schedule of Components of Income Tax Expense 
Income taxes charged to income were:
 
 
Millions of Dollars
 
2013

 
2012

 
2011

Income Taxes
 
 
 
 
 
Federal
 
 
 
 
 
Current
$
1,054

 
1,967

 
713

Deferred
526

 
69

 
745

Foreign
 
 
 
 
 
Current
98

 
160

 
126

Deferred
(48
)
 
45

 
(9
)
State and local
 
 
 
 
 
Current
146

 
253

 
132

Deferred
68

 
(21
)
 
115

 
$
1,844

 
2,473

 
1,822

Schedule of Deferred Tax Assets and Liabilities 
Major components of deferred tax liabilities and assets at December 31 were:
 
 
Millions of Dollars
 
2013

 
2012

Deferred Tax Liabilities
 
 
 
Properties, plants and equipment, and intangibles
$
3,747

 
3,721

Investment in joint ventures
2,696

 
2,183

Investment in foreign subsidiaries
401

 
386

Other
—

 
24

Total deferred tax liabilities
6,844

 
6,314

Deferred Tax Assets
 
 
 
Benefit plan accruals
499

 
614

Inventory
51

 
92

Asset retirement obligations and accrued environmental costs
223

 
234

Other financial accruals and deferrals
223

 
166

Loss and credit carryforwards
123

 
313

Other
18

 
59

Total deferred tax assets
1,137

 
1,478

Less: valuation allowance
127

 
329

Net deferred tax assets
1,010

 
1,149

Net deferred tax liabilities
$
5,834

 
5,165

Schedule of Unrecognized Tax Benefits Roll Forward 

As a result of the Separation and pursuant to the Tax Sharing Agreement with ConocoPhillips, the unrecognized 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. Those unrecognized tax benefits are reflected in the following table which shows a reconciliation of the beginning and ending unrecognized tax benefits.

 
Millions of Dollars
 
2013

 
2012

 
2011

 
 
 
 
 
 
Balance at January 1
$
158

 
169

 
166

Additions based on tax positions related to the current year
30

 
3

 
11

Additions for tax positions of prior years
25

 
35

 
27

Reductions for tax positions of prior years
(8
)
 
(47
)
 
(32
)
Settlements
(3
)
 
(2
)
 
(2
)
Lapse of statute
—

 
—

 
(1
)
Balance at December 31
$
202

 
158

 
169

Schedule of Effective Income Tax Rate Reconciliation 
The amounts of U.S. and foreign income (loss) before income taxes, with a reconciliation of tax at the federal statutory rate with the provision for income taxes, were:
 
 
Millions of Dollars
 
Percent of Pre-tax Income
 
2013

 
2012

 
2011

 
2013

 
2012

 
2011

Income from continuing operations before income taxes
 
 
 
 
 
 
 
 
 
 
 
United States
$
5,158

 
6,192

 
6,107

 
93.3
 %
 
94.4

 
93.1

Foreign
368

 
364

 
452

 
6.7

 
5.6

 
6.9

 
$
5,526

 
6,556

 
6,559

 
100.0
 %
 
100.0

 
100.0

 
 
 
 
 
 
 
 
 
 
 
 
Federal statutory income tax
$
1,934

 
2,295

 
2,295

 
35.0
 %
 
35.0

 
35.0

Goodwill allocated to assets sold
—

 
9

 
96

 
—

 
0.1

 
1.4

Capital loss utilization
—

 
—

 
(619
)
 
—

 
—

 
(9.4
)
Tax on foreign operations
(198
)
 
141

 
(61
)
 
(3.6
)
 
2.2

 
(0.9
)
Federal manufacturing deduction
(68
)
 
(124
)
 
(52
)
 
(1.2
)
 
(1.9
)
 
(0.8
)
State income tax, net of federal benefit
139

 
151

 
161

 
2.5

 
2.3

 
2.5

Other
37

 
1

 
2

 
0.7

 
—

 
—

 
$
1,844

 
2,473

 
1,822

 
33.4
 %
 
37.7

 
27.8

Accumulated Other Comprehensive Income (Loss) (Tables)
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
Income (Loss)

 
 
 
 
 
 
 
 
December 31, 2010
$
(116
)
 
334

 
(4
)
 
214

Other comprehensive income (loss)
(29
)
 
(64
)
 
1

 
(92
)
December 31, 2011
(145
)
 
270

 
(3
)
 
122

Other comprehensive income (loss)
(93
)
 
196

 
1

 
104

Net transfer from ConocoPhillips*
(540
)
 
—

 
—

 
(540
)
December 31, 2012
(778
)
 
466

 
(2
)
 
(314
)
Other comprehensive income (loss) before reclassifications
312

 
(44
)
 
—

 
268

Amounts reclassified from accumulated other comprehensive income (loss)
 
 
 
 
 
 


Foreign currency translation**
—

 
21

 
—

 
21

Amortization of defined benefit plan items***
 
 
 
 
 
 


Actuarial losses
62

 
—

 
—

 
62

Net current period other comprehensive income (loss)
374

 
(23
)
 
—

 
351

December 31, 2013
$
(404
)
 
443

 
(2
)
 
37

*See Consolidated Statement of Changes in Equity.
**Included in the deferred gain on the sale of ICHP. See Note 5—Assets Held for Sale or Sold, for additional information.
Cash Flow Information (Tables)
Cash Flow Information
 
Millions of Dollars
 
2013

 
2012

 
2011

Noncash Investing and Financing Activities
 
 
 
 
 
Increase in net PP&E and debt related to capital lease obligation
$
177

 
—

 
—

Transfer of net PP&E in accordance with the Separation and Distribution Agreement with ConocoPhillips
—

 
374

 
—

Transfer of employee benefit obligations in accordance with the Separation and Distribution Agreement with ConocoPhillips
—

 
1,234

 
—

Increase in deferred tax assets associated with the employee benefit liabilities transferred in accordance with the Separation and Distribution Agreement with ConocoPhillips
—

 
461

 
—

 
 
 
 
 
 
Cash Payments
 
 
 
 
 
Interest
$
259

 
176

 
—

Income taxes*
1,021

 
2,183

 
197

Other Financial Information (Tables)
Other Financial Information
 
Millions of Dollars
Except Per Share Amounts
 
2013

 
2012

 
2011

Interest and Debt Expense
 
 
 
 
 
Incurred
 
 
 
 
 
Debt
$
251

 
221

 
12

Other
24

 
25

 
5

 
275

 
246

 
17

Capitalized
—

 
—

 
—

Expensed
$
275

 
246

 
17

 
 
 
 
 
 
Other Income
 
 
 
 
 
Interest income
$
20

 
18

 
33

Other, net*
65

 
117

 
12

 
$
85

 
135

 
45

*Includes derivatives-related activities. 2012 also includes a $37 million co-venturer contractual payment related to Rockies Express Pipeline.
 
 
 
 
 
 
Research and Development Expenditures—expensed
$
69

 
70

 
69

 
 
 
 
 
 
Advertising Expenses
$
68

 
57

 
63

 
 
 
 
 
 
Foreign Currency Transaction (Gains) Losses—after-tax
 
 
 
 
 
Midstream
$
—

 
—

 
—

Chemicals
—

 
—

 
—

Refining
(41
)
 
(17
)
 
(15
)
Marketing and Specialties
(5
)
 
(5
)
 
(9
)
Corporate and Other
2

 
—

 
—

 
$
(44
)
 
(22
)
 
(24
)
Related Party Transactions (Tables)
Significant transactions with related parties
Significant transactions with related parties were:
 
 
Millions of Dollars
 
2013

 
2012

 
2011

 
 
 
 
 
 
Operating revenues and other income (a)
$
7,907

 
8,226

 
9,024

Gain on dispositions (b)
—

 
—

 
156

Purchases (c)
18,320

 
22,446

 
34,554

Operating expenses and selling, general and
administrative expenses (d)
109

 
208

 
361

Net interest expense (e)
8

 
8

 
10



(a)
We sold crude oil to MRC. NGL and other petrochemical feedstocks, along with solvents, were sold to CPChem, and gas oil and hydrogen feedstocks were sold to Excel. Certain feedstocks and intermediate products were sold to WRB. We also acted as agent for WRB in supplying other crude oil and feedstocks, wherein the transactional amounts did not impact operating revenues. In addition, we charged several of our affiliates, including CPChem and MSLP, for the use of common facilities, such as steam generators, waste and water treaters, and warehouse facilities.

(b)
In 2011, we sold the Seaway Products Pipeline Company to DCP Midstream for cash proceeds of $400 million, resulting in a before-tax gain of $156 million.

(c)
We purchased refined products from WRB. We also acted as agent for WRB in distributing asphalt and solvents, wherein the transactional amounts did not impact purchases. We purchased natural gas and NGL from DCP Midstream and CPChem for use in our refinery processes and other feedstocks from various affiliates. We purchased refined products from MRC. We also paid fees to various pipeline equity companies for transporting finished refined products. In addition, we paid a price upgrade to MSLP for heavy crude processing. We purchased base oils and fuel products from Excel for use in our refining and specialty businesses.

(d)
We paid utility and processing fees to various affiliates.

(e)
We incurred interest expense on a note payable to MSLP. See Note 6—Investments, Loans and Long-Term Receivables and Note 12—Debt, for additional information on loans with affiliated companies.
Condensed Consolidating Financial Information (Tables)
Condensed Consolidated Income Statement 
 
Millions of Dollars
 
Year Ended December 31, 2013
Statement of Income
Phillips 66

Phillips 66 Company

All Other Subsidiaries

Consolidating Adjustments

Total Consolidated

Revenues and Other Income
 
 
 
 
 
Sales and other operating revenues
$
—

113,499

58,097

—

171,596

Equity in earnings of affiliates
3,905

3,723

509

(5,064
)
3,073

Net gain on dispositions
—

50

5

—

55

Other income (loss)
(3
)
53

35

—

85

Intercompany revenues
—

1,436

20,316

(21,752
)
—

Total Revenues and Other Income
3,902

118,761

78,962

(26,816
)
174,809

 
 
 
 
 
 
Costs and Expenses
 
 
 
 
 
Purchased crude oil and products
—

102,781

66,745

(21,281
)
148,245

Operating expenses
—

3,442

790

(26
)
4,206

Selling, general and administrative expenses
6

1,024

541

(93
)
1,478

Depreciation and amortization
—

730

217

—

947

Impairments
—

—

29

—

29

Taxes other than income taxes
—

5,148

8,972

(1
)
14,119

Accretion on discounted liabilities
—

19

5

—

24

Interest and debt expense
266

13

347

(351
)
275

Foreign currency transaction gains
—

—

(40
)
—

(40
)
Total Costs and Expenses
272

113,157

77,606

(21,752
)
169,283

Income from continuing operations before income taxes
3,630

5,604

1,356

(5,064
)
5,526

Provision (benefit) for income taxes
(96
)
1,699

241

—

1,844

Income From Continuing Operations
3,726

3,905

1,115

(5,064
)
3,682

Income from discontinued operations*
—

—

61

—

61

Net income
3,726

3,905

1,176

(5,064
)
3,743

Less: net income attributable to noncontrolling interests
—

—

17

—

17

Net Income Attributable to Phillips 66
$
3,726

3,905

1,159

(5,064
)
3,726

 
 
 
 
 

Comprehensive Income
$
4,077

4,256

1,199

(5,438
)
4,094

*Net of provision for income taxes on discontinued operations:
$
—

—

34

—

34


 
Millions of Dollars
 
Year Ended December 31, 2012
Statement of Income
Phillips 66

Phillips 66 Company

All Other Subsidiaries

Consolidating Adjustments

Total Consolidated

Revenues and Other Income
 
 
 
 
 
Sales and other operating revenues
$
—

117,574

61,716

—

179,290

Equity in earnings of affiliates
4,284

3,269

445

(4,864
)
3,134

Net gain on dispositions
—

192

1

—

193

Other income (loss)
2

(15
)
148

—

135

Intercompany revenues
1

2,739

23,346

(26,086
)
—

Total Revenues and Other Income
4,287

123,759

85,656

(30,950
)
182,752

 
 
 
 
 
 
Costs and Expenses
 
 
 
 
 
Purchased crude oil and products
—

106,687

73,715

(25,989
)
154,413

Operating expenses
—

3,329

760

(56
)
4,033

Selling, general and administrative expenses
4

1,312

428

(41
)
1,703

Depreciation and amortization
—

668

238

—

906

Impairments
—

71

1,087

—

1,158

Taxes other than income taxes
—

5,155

8,586

(1
)
13,740

Accretion on discounted liabilities
—

18

7

—

25

Interest and debt expense
212

29

4

1

246

Foreign currency transaction gains
—

—

(28
)
—

(28
)
Total Costs and Expenses
216

117,269

84,797

(26,086
)
176,196

Income from continuing operations before income taxes
4,071

6,490

859

(4,864
)
6,556

Provision (benefit) for income taxes
(53
)
2,206

320

—

2,473

Income From Continuing Operations
4,124

4,284

539

(4,864
)
4,083

Income from discontinued operations*
—

—

48

—

48

Net income
4,124

4,284

587

(4,864
)
4,131

Less: net income attributable to noncontrolling interests
—

—

7

—

7

Net Income Attributable to Phillips 66
$
4,124

4,284

580

(4,864
)
4,124

 
 
 
 
 
 
Comprehensive Income
$
4,228

4,388

623

(5,004
)
4,235

*Net of provision for income taxes on discontinued operations:
$
—

—

27

—

27



 
Millions of Dollars
 
Year Ended December 31, 2011
Statement of Income
Phillips 66

Phillips 66 Company

All Other Subsidiaries

Consolidating Adjustments

Total Consolidated

Revenues and Other Income
 
 
 
 
 
Sales and other operating revenues
$
—

131,761

64,170

—

195,931

Equity in earnings of affiliates
4,775

2,835

723

(5,490
)
2,843

Net gain (loss) on dispositions
—

1,867

(229
)
—

1,638

Other income
—

10

35

—

45

Intercompany revenues
—

4,887

27,249

(32,136
)
—

Total Revenues and Other Income
4,775

141,360

91,948

(37,626
)
200,457

 
 
 
 
 
 
Costs and Expenses
 
 
 
 
 
Purchased crude oil and products
—

124,772

80,088

(32,092
)
172,768

Operating expenses
—

3,278

837

(44
)
4,071

Selling, general and administrative expenses
—

995

399

—

1,394

Depreciation and amortization
—

655

247

—

902

Impairments
—

468

4

—

472

Taxes other than income taxes
—

4,801

9,486

—

14,287

Accretion on discounted liabilities
—

13

8

—

21

Interest and debt expense
—

16

1

—

17

Foreign currency transaction gains
—

(1
)
(33
)
—

(34
)
Total Costs and Expenses
—

134,997

91,037

(32,136
)
193,898

Income from continuing operations before income taxes
4,775

6,363

911

(5,490
)
6,559

Provision for income taxes
—

1,588

234

—

1,822

Income From Continuing Operations
4,775

4,775

677

(5,490
)
4,737

Income from discontinued operations*
—

—

43

—

43

Net income
4,775

4,775

720

(5,490
)
4,780

Less: net income attributable to noncontrolling interests
—

—

5

—

5

Net Income Attributable to Phillips 66
$
4,775

4,775

715

(5,490
)
4,775

 
 
 
 
 
 
Comprehensive Income
$
4,683

4,683

747

(5,425
)
4,688

*Net of provision for income taxes on discontinued operations:
$
—

—

22

—

22

Condensed Consolidated Balance Sheet 
 
Millions of Dollars
 
At December 31, 2013
Balance Sheet
Phillips 66

Phillips 66 Company

All Other Subsidiaries

Consolidating Adjustments

Total Consolidated

Assets
 
 
 
 
 
Cash and cash equivalents
$
—

2,162

3,238

—

5,400

Accounts and notes receivable
9

2,176

8,131

(684
)
9,632

Inventories
—

1,962

1,392

—

3,354

Prepaid expenses and other current assets
10

368

473

—

851

Total Current Assets
19

6,668

13,234

(684
)
19,237

Investments and long-term receivables
33,178

27,414

7,496

(56,868
)
11,220

Net properties, plants and equipment
—

12,031

3,367

—

15,398

Goodwill
—

3,094

2

—

3,096

Intangibles
—

694

4

—

698

Other assets
40

112

1

(4
)
149

Total Assets
$
33,237

50,013

24,104

(57,556
)
49,798

 
 
 
 
 
 
Liabilities and Equity
 
 
 
 
 
Accounts payable
$
1

7,508

4,265

(684
)
11,090

Short-term debt
—

18

6

—

24

Accrued income and other taxes
—

250

622

—

872

Employee benefit obligations
—

422

54

—

476

Other accruals
49

178

242

—

469

Total Current Liabilities
50

8,376

5,189

(684
)
12,931

Long-term debt
5,796

152

183

—

6,131

Asset retirement obligations and accrued environmental costs
—

527

173

—

700

Deferred income taxes
—

5,045

1,084

(4
)
6,125

Employee benefit obligations
—

724

197

—

921

Other liabilities and deferred credits
5,441

2,153

7,052

(14,048
)
598

Total Liabilities
11,287

16,977

13,878

(14,736
)
27,406

Common stock
16,291

25,938

8,302

(34,240
)
16,291

Retained earnings
5,622

7,061

1,163

(8,224
)
5,622

Accumulated other comprehensive income
37

37

319

(356
)
37

Noncontrolling interests
—

—

442

—

442

Total Liabilities and Equity
$
33,237

50,013

24,104

(57,556
)
49,798


 
Millions of Dollars
 
At December 31, 2012
Balance Sheet
Phillips 66

Phillips 66 Company

All Other Subsidiaries

Consolidating Adjustments

Total Consolidated

Assets
 
 
 
 
 
Cash and cash equivalents
$
—

2,410

1,064

—

3,474

Accounts and notes receivable
47

2,889

8,456

(989
)
10,403

Inventories
—

1,938

1,492

—

3,430

Prepaid expenses and other current assets
11

403

241

—

655

Total Current Assets
58

7,640

11,253

(989
)
17,962

Investments and long-term receivables
28,934

20,937

6,235

(45,635
)
10,471

Net properties, plants and equipment
—

11,714

3,693

—

15,407

Goodwill
—

3,344

—

—

3,344

Intangibles
—

710

14

—

724

Other assets
78

114

9

(36
)
165

Total Assets
$
29,070

44,459

21,204

(46,660
)
48,073

 
 
 
 
 
 
Liabilities and Equity
 
 
 
 
 
Accounts payable
$
17

7,014

4,668

(989
)
10,710

Short-term debt
—

13

—

—

13

Accrued income and other taxes
—

245

656

—

901

Employee benefit obligations
—

391

50

—

441

Other accruals
50

279

88

—

417

Total Current Liabilities
67

7,942

5,462

(989
)
12,482

Long-term debt
6,795

165

1

—

6,961

Asset retirement obligations and accrued environmental costs
—

563

177

—

740

Deferred income taxes
—

4,478

1,002

(36
)
5,444

Employee benefit obligations
—

1,094

231

—

1,325

Other liabilities and deferred credits
1,433

1,435

5,768

(8,321
)
315

Total Liabilities
8,295

15,677

12,641

(9,346
)
27,267

Common stock
18,376

25,951

8,149

(34,100
)
18,376

Retained earnings
2,713

3,145

87

(3,232
)
2,713

Accumulated other comprehensive income (loss)
(314
)
(314
)
296

18

(314
)
Noncontrolling interests
—

—

31

—

31

Total Liabilities and Equity
$
29,070

44,459

21,204

(46,660
)
48,073

Condensed Consolidated Cash Flow 
 
Millions of Dollars
 
Year Ended December 31, 2013
Statement of Cash Flows
Phillips 66

Phillips 66 Company

All Other Subsidiaries

Consolidating Adjustments

Total Consolidated

Cash Flows From Operating Activities
 
 
 
 
 
Net cash provided by continuing operating activities
$
5

4,972

1,045

(80
)
5,942

Net cash provided by discontinued operations
—

—

85

—

85

Net Cash Provided by Operating Activities
5

4,972

1,130

(80
)
6,027

 
 
 
 
 
 
Cash Flows From Investing Activities
 
 
 
 
 
Capital expenditures and investments
—

(1,108
)
(690
)
19

(1,779
)
Proceeds from asset dispositions
—

63

1,151

—

1,214

Intercompany lending activities
4,055

(4,206
)
151

—

—

Advances/loans—related parties
—

—

(65
)
—

(65
)
Collection of advances/loans—related parties
—

—

165

—

165

Other
—

42

6

—

48

Net cash provided by (used in) continuing investing activities
4,055

(5,209
)
718

19

(417
)
Net cash used in discontinued operations
—

—

(27
)
—

(27
)
Net Cash Provided by (Used in) Investing Activities
4,055

(5,209
)
691

19

(444
)
 
 
 
 
 
 
Cash Flows From Financing Activities
 
 
 
 
 
Repayment of debt
(1,000
)
(18
)
(2
)
—

(1,020
)
Issuance of common stock
6

—

—

—

6

Repurchase of common stock
(2,246
)
—

—

—

(2,246
)
Dividends paid on common stock
(807
)
—

(72
)
72

(807
)
Distributions to controlling interests
—

—

(8
)
8

—

Distributions to noncontrolling interests
—

—

(10
)
—

(10
)
Net proceeds from issuance of Phillips 66 Partners LP common units
—

—

404

—

404

Other
(13
)
7

19

(19
)
(6
)
Net cash provided by (used in) continuing financing activities
(4,060
)
(11
)
331

61

(3,679
)
Net cash provided by (used in) discontinued operations
—

—

—

—

—

Net Cash Provided by (Used in) Financing Activities
(4,060
)
(11
)
331

61

(3,679
)
 
 
 
 
 
 
Effect of Exchange Rate Changes on Cash and Cash Equivalents
—

—

22

—

22

 
 
 
 
 
 
Net Change in Cash and Cash Equivalents
—

(248
)
2,174

—

1,926

Cash and cash equivalents at beginning of period
—

2,410

1,064

—

3,474

Cash and Cash Equivalents at End of Period
$
—

2,162

3,238

—

5,400



 
Millions of Dollars
 
Year Ended December 31, 2012
Statement of Cash Flows
Phillips 66

Phillips 66 Company

All Other Subsidiaries

Consolidating Adjustments

Total Consolidated

Cash Flows From Operating Activities
 
 
 
 
 
Net cash provided by (used in) continuing operating activities
$
(42
)
7,429

(3,128
)
—

4,259

Net cash provided by discontinued operations
—

—

37

—

37

Net Cash Provided by (Used in) Operating Activities
(42
)
7,429

(3,091
)
—

4,296

 
 
 
 
 
 
Cash Flows From Investing Activities
 
 
 
 
 
Capital expenditures and investments
—

(861
)
(850
)
10

(1,701
)
Proceeds from asset dispositions
—

240

46

—

286

Intercompany lending activities
1,376

(4,334
)
2,958

—

—

Advances/loans—related parties
—

—

(100
)
—

(100
)
Collection of advances/loans—related parties
—

—

7

(7
)
—

Other
—

—

—

—

—

Net cash provided by (used in) continuing investing activities
1,376

(4,955
)
2,061

3

(1,515
)
Net cash used in discontinued operations
—

—

(20
)
—

(20
)
Net Cash Provided by (Used in) Investing Activities
1,376

(4,955
)
2,041

3

(1,535
)
 
 
 
 
 
 
Cash Flows From Financing Activities
 
 
 
 
 
Contributions from (distributions to) ConocoPhillips
(7,469
)
110

2,104

—

(5,255
)
Issuance of debt
7,794

—

—

—

7,794

Repayment of debt
(1,000
)
(208
)
(9
)
7

(1,210
)
Issuance of common stock
47

—

—

—

47

Repurchase of common stock
(356
)
—

—

—

(356
)
Dividends paid on common stock
(282
)
—

—

—

(282
)
Distributions to controlling interests
—

—

—

—

—

Distributions to noncontrolling interests
—

—

(5
)
—

(5
)
Other
(68
)
34

10

(10
)
(34
)
Net cash provided by (used in) continuing financing activities
(1,334
)
(64
)
2,100

(3
)
699

Net cash provided by (used in) discontinued operations
—

—

—

—

—

Net Cash Provided by (Used in) Financing Activities
(1,334
)
(64
)
2,100

(3
)
699

 
 
 
 
 
 
Effect of Exchange Rate Changes on Cash and Cash Equivalents
—

—

14

—

14

 
 
 
 
 
 
Net Change in Cash and Cash Equivalents
—

2,410

1,064

—

3,474

Cash and cash equivalents at beginning of period
—

—

—

—

—

Cash and Cash Equivalents at End of Period
$
—

2,410

1,064

—

3,474



 
Millions of Dollars
 
Year Ended December 31, 2011
Statement of Cash Flows
Phillips 66

Phillips 66 Company

All Other Subsidiaries

Consolidating Adjustments

Total Consolidated

Cash Flows From Operating Activities
 
 
 
 
 
Net cash provided by continuing operating activities
$
—

3,038

1,915

—

4,953

Net cash provided by discontinued operations
—

—

53

—

53

Net Cash Provided by Operating Activities
—

3,038

1,968

—

5,006

 
 
 
 
 
 
Cash Flows From Investing Activities
 
 
 
 
 
Capital expenditures and investments
—

(717
)
(299
)
—

(1,016
)
Proceeds from asset dispositions
—

2,517

110

—

2,627

Collection of advances/loans—related parties
—

550

—

—

550

Other
—

51

286

—

337

Net cash provided by continuing investing activities
—

2,401

97

—

2,498

Net cash used in discontinued operations
—

—

(6
)
—

(6
)
Net Cash Provided by Investing Activities
—

2,401

91

—

2,492

 
 
 
 
 
 
Cash Flows From Financing Activities
 
 
 
 
 
Distributions to ConocoPhillips
—

(5,421
)
(2,050
)
—

(7,471
)
Repayment of debt
—

(18
)
(8
)
—

(26
)
Distributions to noncontrolling interests
—

—

(1
)
—

(1
)
Other
—

—

—

—

—

Net cash used in continuing financing activities
—

(5,439
)
(2,059
)
—

(7,498
)
Net cash provided by (used in) discontinued operations
—

—

—

—

—

Net Cash Used in Financing Activities
—

(5,439
)
(2,059
)
—

(7,498
)
 
 
 
 
 
 
Net Change in Cash and Cash Equivalents
—

—

—

—

—

Cash and cash equivalents at beginning of period
—

—

—

—

—

Cash and Cash Equivalents at End of Period
$
—

—

—

—

—

Separation and Basis of Presentation (Narrative) (Details)
0 Months Ended 1 Months Ended 12 Months Ended
Apr. 30, 2012
Apr. 30, 2012
Dec. 31, 2013
segment
Dec. 31, 2012
Organization, Consolidation and Presentation of Financial Statements [Abstract]
 
 
 
 
Shares of Phillips 66 common stock distributed at time of the Separation
 
625,272,302 
 
625,272,000 
Number of shares of Phillips 66 stock received for every share of ConocoPhillips stock held, ratio
1 
 
 
 
Number of shares of ConocoPhillips stock held for every share of Phillips 66 stock received, ratio
2 
 
 
 
Number of operating segments
 
 
2 
 
Accounting Policies (Narrative) (Details)
12 Months Ended
Dec. 31, 2013
Share-based Arrangements with Employees and Nonemployees [Abstract]
 
Minimum Service Period to Avoid Award Forfeiture
6 months 
Variable Interest Entities (VIEs) (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 12 Months Ended
Oct. 31, 2013
Dec. 31, 2013
Merey Sweeny L.P. [Member]
Aug. 28, 2009
Merey Sweeny L.P. [Member]
Dec. 31, 2013
Merey Sweeny L.P. [Member]
Guarantees of Joint Venture Debt [Member]
Dec. 31, 2013
Merey Sweeny L.P. [Member]
Guarantees of Joint Venture Debt [Member]
MSLP 8.85% Senior Notes [Member]
Dec. 31, 2013
Excel Paralubes, L.P. [Member]
Dec. 31, 2013
Excel Paralubes, L.P. [Member]
Guarantees of Joint Venture Debt [Member]
Variable Interest Entities (VIEs) (Textual) [Abstract]
 
 
 
 
 
 
 
Additional equity method ownership interest acquired in Merey Sweeny Limited Partnership
 
 
50.00% 
 
 
 
 
Debt guarantee to lender, percentage
 
 
 
100.00% 
 
 
 
Stated interest rate of debt
 
 
 
 
8.85% 
 
7.43% 
Maximum exposure under debt guarantee
 
 
 
$ 214 
 
 
$ 58 
Book value of VIE
 
109 
 
 
 
113 
 
Percentage of ownership interest
 
 
 
 
 
50.00% 
 
Governance interest percentage
 
 
 
 
 
50.00% 
 
Percentage of guarantee
 
 
 
 
 
 
50.00% 
Liquidity support guarantee of VIE shared with CoVenturer
 
 
 
 
 
60 
 
Outstanding principal balance of variable interest entity
 
 
 
 
 
 
116 
Liquidity support guarantee of VIE
 
 
 
 
 
30 
 
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount
190 
 
 
 
 
 
 
Purchase Commitment, Annual Obligation
$ 80 
 
 
 
 
 
 
Inventories (Summary of Inventory) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Summary of inventories
 
 
Crude oil and petroleum products
$ 3,093 
$ 3,138 
Materials and supplies
261 
292 
Inventories
$ 3,354 
$ 3,430 
Inventories (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Inventory Disclosure [Abstract]
 
 
 
Total inventories
$ 2,945 
$ 2,987 
 
Excess of current replacement cost over LIFO cost of inventories
7,600 
7,700 
 
Net income increase due to effect of LIFO inventory liquidation
$ 109 
$ 162 
$ 155 
Assets Held for Sale or Sold Assets Held for Sale or Sold (Summary of Assets and Liabilities and Sales, Revenues and Income of Assets Held for Sale)(Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
 
 
 
Income tax expense
$ 34 
$ 27 
$ 22 
Income from discontinued operations
61 1
48 1
43 1
Phillips Specialty Products Inc [Member]
 
 
 
Assets
 
 
 
Accounts and notes receivable
24 
23 
 
Inventories
18 
18 
 
Total current assets of discontinued operations
42 
41 
 
Net properties, plants and equipment
58 
42 
 
Other assets
6 
6 
 
Total assets of discontinued operations
106 
89 
 
Liabilities
 
 
 
Accounts payable
18 
8 
 
Total current liabilities of discontinued operations
18 
8 
 
Deferred income taxes
12 
7 
 
Total liabilities of discontinued operations
30 
15 
 
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
 
 
 
Sales and other operating revenues from discontinued operations
232 
180 
167 
Income from discontinued operations before-tax
95 
75 
65 
Income tax expense
34 
27 
22 
Income from discontinued operations
$ 61 
$ 48 
$ 43 
Assets Held for Sale or Sold (Narrative) (Details) (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
12 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 12 Months Ended 1 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2013
Phillips Specialty Products Inc [Member]
Dec. 31, 2012
Phillips Specialty Products Inc [Member]
Dec. 31, 2013
Southern Hills [Member]
Dec. 31, 2013
Refining [Member]
Dec. 31, 2012
Refining [Member]
Dec. 31, 2011
Refining [Member]
Dec. 31, 2012
Refining [Member]
Wilhelmshaven Refinery [Member]
Aug. 30, 2011
Refining [Member]
Wilhelmshaven Refinery [Member]
Jun. 30, 2012
Refining [Member]
Trainer Refinery [Member]
Dec. 31, 2012
Refining [Member]
Trainer Refinery [Member]
Dec. 31, 2013
Midstream [Member]
Dec. 31, 2012
Midstream [Member]
Dec. 31, 2011
Midstream [Member]
Oct. 31, 2011
Midstream [Member]
Seaway Products Pipeline Company [Member]
Dec. 31, 2011
Midstream [Member]
Interests in Colonial Pipeline Company and Seaway Crude Pipeline Company [Member]
Dec. 31, 2011
Midstream [Member]
Interests in Colonial Pipeline Company and Seaway Crude Pipeline Company [Member]
Nov. 30, 2012
Midstream [Member]
Riverhead Terminal [Member]
Dec. 31, 2013
Midstream [Member]
Riverhead Terminal [Member]
Dec. 31, 2013
Marketing And Specialties [Member]
Dec. 31, 2012
Marketing And Specialties [Member]
Dec. 31, 2011
Marketing And Specialties [Member]
Dec. 31, 2013
Marketing And Specialties [Member]
E-Gas Technology Business [Member]
May 31, 2013
Marketing And Specialties [Member]
E-Gas Technology Business [Member]
Dec. 31, 2013
Marketing And Specialties [Member]
Immingham Combined Heat and Power Plant [Member]
Jul. 31, 2013
Marketing And Specialties [Member]
Immingham Combined Heat and Power Plant [Member]
Mar. 31, 2014
Scenario, Forecast [Member]
Phillips Specialty Products Inc [Member]
Feb. 14, 2014
Scenario, Forecast [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Before tax gain (loss) on disposition
$ 55 
$ 193 
$ 1,638 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 1,661 
 
 
 
 
 
$ 48 
 
 
 
 
 
Net carrying value at time of disposition
 
 
 
 
 
 
 
 
 
 
 
211 
38 
 
 
 
 
 
 
 
34 
 
 
 
 
 
13 
 
762 
 
 
Property, plant, and equipment, net included in carrying value of disposed asset
 
 
 
 
58 
42 
 
 
 
 
 
243 
37 
 
 
 
 
55 
 
 
33 
 
 
 
 
 
 
 
724 
 
 
Before tax gain (loss) on disposition of property
 
 
 
 
 
 
 
 
 
 
(234)
 
 
189 
 
 
 
 
 
 
 
2 
 
 
 
 
 
 
 
 
 
Net carrying value of Seaway Products Pipeline Company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
84 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allocated goodwill included in carrying value of disposed asset
 
 
 
 
117 
 
 
 
 
 
 
 
25 
 
 
 
 
29 
244 
244 
 
 
 
 
 
 
 
 
110 
 
 
Deferred income taxes
 
 
 
 
12 
7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
111 
 
 
Before tax gain, including deferred gain, on disposition of asets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
312 
 
 
 
 
 
 
 
 
 
375 
 
 
 
Cash and cash equivalents
5,400 
3,474 
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
450 
 
Shares of Phillips 66 stock that would have been exchanged
36,502 
7,604 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
18,000 
Percent of gain on disposition recognized in earnings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percent of gain on disposition deferred and amortized
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) from Equity Method Investments
3,073 
3,134 
2,843 
 
 
 
2 
1,213 
1,542 
1,270 
 
 
 
 
436 
343 
544 
 
 
 
 
 
63 
57 
54 
 
 
 
 
 
 
Total carrying value of ownership interest sold
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
348 
 
 
 
 
 
 
 
 
 
 
 
 
Investment in equity affiliates
11,080 
10,291 
 
 
 
 
157 
 
1,062 
 
 
 
 
 
 
 
 
 
104 
104 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from asset dispositions
 
 
 
 
 
 
 
 
 
 
 
 
229 
 
 
 
 
 
 
 
36 
 
 
 
 
 
 
 
 
 
 
Asset retirement obligations and accrued environmental costs
 
 
 
 
 
 
 
 
 
 
 
 
53 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inventory included in carrying value of disposed asset
 
 
 
 
$ 18 
$ 18 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 1 
 
 
 
 
 
 
 
 
 
 
Investments, Loans and Long-Term Receivables (Summary of Components of Investments, Loans, and Long-Term Receivables) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Equity Method Investments and Joint Ventures [Abstract]
 
 
Equity investments
$ 11,080 
$ 10,291 
Long-term receivables
74 
132 
Other investments
66 
48 
Total
$ 11,220 
$ 10,471 
Investments, Loans and Long-Term Receivables (Summary of Financial Information for Equity Method Investments) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Summary of financial information
 
 
 
Revenues
$ 59,500 
$ 55,401 
$ 59,044 
Income before income taxes
5,975 
6,265 
6,083 
Net income
5,838 
6,122 
5,742 
Current assets
9,865 
9,646 
8,752 
Noncurrent assets
40,188 
37,269 
34,329 
Current liabilities
7,971 
8,319 
6,837 
Noncurrent liabilities
$ 9,959 
$ 9,251 
$ 10,279 
Investments, Loans and Long-Term Receivables (Narrative) (Details) (USD $)
12 Months Ended 12 Months Ended 9 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 1 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2013
WRB Refining LP [Member]
Dec. 31, 2012
WRB Refining LP [Member]
Dec. 31, 2011
WRB Refining LP [Member]
Sep. 30, 2013
WRB Refining LP [Member]
Dec. 31, 2013
DCP Midstream [Member]
Dec. 31, 2013
CP Chem [Member]
Dec. 31, 2013
CP Chem [Member]
Minimum [Member]
Dec. 31, 2013
CP Chem [Member]
Maximum [Member]
Dec. 31, 2013
Malaysian Refining Company [Member]
Dec. 31, 2012
Rockies Express Pipeline LLC (REX) [Member]
Dec. 31, 2013
Rockies Express Pipeline LLC (REX) [Member]
Dec. 31, 2012
DCP Sand Hills Pipeline, LLC [Member]
Dec. 31, 2013
DCP Sand Hills Pipeline, LLC [Member]
Dec. 31, 2013
DCP Southern Hills Pipeline, LLC [Member]
Dec. 31, 2012
DCP Southern Hills Pipeline, LLC [Member]
Dec. 31, 2011
Seaway Products Pipeline Company [Member]
Dec. 31, 2012
Southern Hills [Member]
Dec. 31, 2013
Southern Hills [Member]
Aug. 28, 2009
Merey Sweeny [Member]
Dec. 31, 2013
Refining [Member]
Dec. 31, 2012
Refining [Member]
Dec. 31, 2011
Refining [Member]
Dec. 31, 2012
Refining [Member]
Malaysian Refining Company [Member]
Dec. 31, 2013
Refining [Member]
Malaysian Refining Company [Member]
Dec. 31, 2013
Cenovus Energy Inc [Member]
WRB Refining LP [Member]
Aug. 27, 2009
Petroleos De Venezuela Sa [Member]
Merey Sweeny [Member]
Aug. 27, 2009
Conocophillips [Member]
Merey Sweeny [Member]
Dec. 31, 2013
Malaysian Refining Company (MRC) [Member]
Market-based Shareholder Financing Agreement [Member]
Sep. 30, 2013
Conocophillips [Member]
WRB Refining LP [Member]
Schedule of Equity Method Investments [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of ownership interest
 
 
 
50.00% 
 
 
50.00% 
50.00% 
50.00% 
 
 
47.00% 
 
25.00% 
33.30% 
33.30% 
33.30% 
33.30% 
 
 
 
 
 
 
 
 
47.00% 
 
 
50.00% 
 
 
Retained earnings related to undistributed earnings of affilated companies
$ 878,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends received from affiliates
2,752,000,000 
2,304,000,000 
2,209,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity investments, amortization period for basis difference
 
 
 
26 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Additional ownership interest purchased
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.40% 
Equity investments
11,080,000,000 
10,291,000,000 
 
3,475,000,000 
 
 
 
1,335,000,000 
4,241,000,000 
 
 
419,000,000 
 
250,000,000 
 
392,000,000 
 
 
 
 
157,000,000 
 
 
1,062,000,000 
 
 
 
 
 
 
 
 
Equity investments, basis difference
 
 
 
3,555,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
161,000,000 
 
 
 
 
 
 
 
 
 
 
 
Equity investment, amortization of basis difference
 
 
 
185,000,000 
180,000,000 
185,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contribution obligation by co-venturer
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7,500,000,000 
 
 
 
 
Contribution obligation by co-venturer, obligation period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10 years 
 
 
 
 
Contribution obligation remaining
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,900,000,000 
 
 
 
 
Supply and purchase agreements, initial term
 
 
 
 
 
 
 
 
 
1 year 
99 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity method investment, before tax impairment
 
1,044,000,000 
 
 
 
 
 
 
 
 
 
 
480,000,000 
 
 
 
 
 
 
 
 
 
 
564,000,000 
 
564,000,000 
 
 
 
 
 
 
Investment made to acquire ownership interest
 
 
 
 
 
 
 
 
 
 
 
 
 
 
234,000,000 
 
 
 
 
225,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred gain on sale of equity method investment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
156,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (Loss) from Equity Method Investments
3,073,000,000 
3,134,000,000 
2,843,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,000,000 
 
1,213,000,000 
1,542,000,000 
1,270,000,000 
 
 
 
 
 
 
 
Additional equity method ownership interest acquired in Merey Sweeny Limited Partnership
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50.00% 
 
 
 
 
 
 
 
 
 
 
Co-venturers interest in equity investment, percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50.00% 
 
 
 
Repayment of Notes Receivable from Related Parties
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 65,000,000 
 
Investments, Loans and Long-Term Receivables (Loans and Long-Term Receivables Narrative) (Details) (USD $)
12 Months Ended 3 Months Ended 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Sep. 30, 2013
Malaysian Refining Company (MRC) [Member]
Market-based Shareholder Financing Agreement [Member]
Dec. 31, 2012
Malaysian Refining Company (MRC) [Member]
Market-based Shareholder Financing Agreement [Member]
Dec. 31, 2013
Malaysian Refining Company (MRC) [Member]
Market-based Shareholder Financing Agreement [Member]
Related Party Transaction [Line Items]
 
 
 
 
 
 
Financing agreement amount
 
 
 
 
$ 100,000,000 
 
Payments for Advance to Affiliate
65,000,000 
100,000,000 
0 
65,000,000 
 
 
Balance outstanding on facility
 
 
 
 
$ 100,000,000 
$ 0 
Properties, Plants and Equipment (Summary of Investment in Property, Plant, and Equipment) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Properties, plants and equipment with the associated accumulated depreciation and amortization
 
 
Gross PP&E
$ 24,426 
$ 23,829 1
Accum D&A
9,028 
8,422 1
Net PP&E
15,398 1
15,407 1
Discontinued Operations [Member]
 
 
Properties, plants and equipment with the associated accumulated depreciation and amortization
 
 
Gross PP&E
 
63 1
Accum D&A
 
21 1
Net PP&E
 
42 1
Midstream [Member]
 
 
Properties, plants and equipment with the associated accumulated depreciation and amortization
 
 
Gross PP&E
2,792 
2,460 1
Accum D&A
1,104 
1,016 1
Net PP&E
1,688 
1,444 1
Chemicals [Member]
 
 
Properties, plants and equipment with the associated accumulated depreciation and amortization
 
 
Gross PP&E
0 
0 1
Accum D&A
0 
0 1
Net PP&E
0 
0 1
Refining [Member]
 
 
Properties, plants and equipment with the associated accumulated depreciation and amortization
 
 
Gross PP&E
19,264 
17,989 1
Accum D&A
6,718 
5,913 1
Net PP&E
12,546 
12,076 1
Marketing And Specialties [Member]
 
 
Properties, plants and equipment with the associated accumulated depreciation and amortization
 
 
Gross PP&E
1,395 
2,437 1
Accum D&A
749 
1,057 1
Net PP&E
646 
1,380 1
Corporate and Other [Member]
 
 
Properties, plants and equipment with the associated accumulated depreciation and amortization
 
 
Gross PP&E
975 
880 1
Accum D&A
457 
415 1
Net PP&E
$ 518 
$ 465 1
Properties, Plants and Equipment (Narrative) (Details)
12 Months Ended
Dec. 31, 2013
Refining [Member] |
Refining Manufacturing Facilities [Member]
 
Property, Plant and Equipment [Line Items]
 
Useful llfe
25 years 
Midstream [Member] |
Pipeline Assets [Member]
 
Property, Plant and Equipment [Line Items]
 
Useful llfe
45 years 
Goodwill and Intangibles (Goodwill) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Goodwill [Roll Forward]
 
 
Balance at January 1
$ 3,344 
$ 3,332 
Goodwill allocated to assets sold
(233)
(25)
Tax and other adjustments
(15)
37 
Balance at December 31
3,096 
3,344 
Midstream [Member]
 
 
Goodwill [Roll Forward]
 
 
Balance at January 1
518 
518 
Goodwill allocated to assets sold
 
0 
Tax and other adjustments
0 
0 
Balance at December 31
518 
518 
Refining [Member]
 
 
Goodwill [Roll Forward]
 
 
Balance at January 1
1,934 
1,922 
Goodwill allocated to assets sold
 
(25)
Tax and other adjustments
(15)
37 
Balance at December 31
1,919 
1,934 
Marketing And Specialties [Member]
 
 
Goodwill [Roll Forward]
 
 
Balance at January 1
892 
892 
Goodwill allocated to assets sold
(233)
0 
Tax and other adjustments
0 
0 
Balance at December 31
$ 659 
$ 892 
Goodwill and Intangibles (Intangible Assets) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Indefinite-lived Intangible Assets [Line Items]
 
 
Indefinite-lived intangible assets
$ 694 
$ 701 
Trade names and trademarks [Member]
 
 
Indefinite-lived Intangible Assets [Line Items]
 
 
Indefinite-lived intangible assets
494 
494 
Refinery air and operating permits [Member]
 
 
Indefinite-lived Intangible Assets [Line Items]
 
 
Indefinite-lived intangible assets
$ 200 
$ 207 
Goodwill and Intangibles (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Goodwill and Intangible Assets Disclosure [Abstract]
 
 
Amortized intangible asset balance
$ 4 
$ 23 
Impairments (Summary of Before-Tax Impairment Charges) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Impairment Charges
 
 
 
Before-tax impairment charges
$ 29 
$ 1,158 
$ 472 
Midstream [Member]
 
 
 
Impairment Charges
 
 
 
Before-tax impairment charges
1 
524 
6 
R&M [Member]
 
 
 
Impairment Charges
 
 
 
Before-tax impairment charges
3 
608 
465 
Marketing And Specialties [Member]
 
 
 
Impairment Charges
 
 
 
Before-tax impairment charges
16 
1 
1 
Corporate and Other [Member]
 
 
 
Impairment Charges
 
 
 
Before-tax impairment charges
9 
25 
0 
Corporate [Member]
 
 
 
Impairment Charges
 
 
 
Before-tax impairment charges
 
$ 25 
 
Impairments (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 9 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2011
Trainer Refinery [Member]
Dec. 31, 2013
Malaysian Refining Company [Member]
Dec. 31, 2012
Rockies Express Pipeline LLC (REX) [Member]
Dec. 31, 2013
Rockies Express Pipeline LLC (REX) [Member]
Dec. 31, 2013
Marketing And Specialties [Member]
Dec. 31, 2012
Marketing And Specialties [Member]
Dec. 31, 2011
Marketing And Specialties [Member]
Dec. 31, 2013
Refining [Member]
Dec. 31, 2012
Refining [Member]
Dec. 31, 2011
Refining [Member]
Dec. 31, 2012
Refining [Member]
Wilhelmshaven Refinery [Member]
Dec. 31, 2012
Refining [Member]
Malaysian Refining Company [Member]
Dec. 31, 2013
Refining [Member]
Malaysian Refining Company [Member]
Dec. 31, 2013
Midstream [Member]
Dec. 31, 2012
Midstream [Member]
Dec. 31, 2011
Midstream [Member]
Dec. 31, 2012
Midstream [Member]
Riverhead Terminal [Member]
Jun. 30, 2012
Midstream [Member]
Rockies Express Pipeline LLC (REX) [Member]
Dec. 31, 2013
Midstream [Member]
Rockies Express Pipeline LLC (REX) [Member]
Dec. 31, 2012
Corporate [Member]
Schedule of Impaired Long-Lived Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset impairments
$ 29 
$ 1,158 
$ 472 
$ 467 
 
 
 
$ 16 
$ 1 
$ 1 
$ 3 
$ 608 
$ 465 
$ 42 
 
 
$ 1 
$ 524 
$ 6 
$ 43 
 
 
$ 25 
Percentage of ownership interest
 
 
 
 
47.00% 
 
25.00% 
 
 
 
 
 
 
 
 
47.00% 
 
 
 
 
 
25.00% 
 
Equity method investment, before tax impairment other than temporary
 
$ 1,044 
 
 
 
$ 480 
 
 
 
 
 
$ 564 
 
 
$ 564 
 
 
 
 
 
$ 480 
 
 
Asset Retirement Obligations and Accrued Environmental Costs (Summary of Asset Retirement Obligations and Accrued Environmental Costs) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Asset Retirement Obligation and Accrual for Environmental Cost Disclosure [Abstract]
 
 
 
Asset retirement obligations
$ 309 
$ 314 
$ 378 
Accrued environmental costs
492 
530 
 
Total asset retirement obligations and accrued environmental costs
801 
844 
 
Asset retirement obligations and accrued environmental costs due within one year
(101)1
(104)1
 
Long-term asset retirement obligations and accrued environmental costs
$ 700 
$ 740 
 
Asset Retirement Obligations and Accrued Environmental Costs (Summary of Overall Asset Retirement Obligation) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
 
 
Balance at beginning of period
$ 314 
$ 378 
Accretion of discount
11 
13 
New obligations
3 
3 
Changes in estimates of existing obligations
12 
(14)
Spending on existing obligations
(13)
(16)
Property dispositions
(20)
(53)
Foreign currency translation
2 
3 
Balance at end of period
$ 309 
$ 314 
Asset Retirement Obligations and Accrued Environmental Costs (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Site Contingency [Line Items]
 
 
Accrued environmental costs
$ 492 
$ 530 
Maximum period over which accrued environmental costs are expected to be paid, years
30 years 
 
Domestic refineries and underground storage tanks [Member]
 
 
Site Contingency [Line Items]
 
 
Accrued environmental costs
255 
271 
Nonoperator sites [Member]
 
 
Site Contingency [Line Items]
 
 
Accrued environmental costs
184 
203 
Other sites [Member]
 
 
Site Contingency [Line Items]
 
 
Accrued environmental costs
53 
56 
Acquired through Business Combination [Member]
 
 
Site Contingency [Line Items]
 
 
Accrued environmental costs
258 
 
Accrued environmental costs, discount rate
5.00% 
 
Expected future undiscounted payments related to the portion of the accrued environmental costs that have been discounted
 
 
Expected future undiscounted payments, due within one year
25 
 
Expected future undiscounted payments, due in second year
29 
 
Expected future undiscounted payments, due in third year
28 
 
Expected future undiscounted payments, due in fourth year
28 
 
Expected future undiscounted payments, due in fifth year
26 
 
Expected future undiscounted payments, due after fifth year
$ 183 
 
Earnings per Share (Summary of Earnings Per Share Calculation) (Details) (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Earnings Per Share, Basic and Diluted [Abstract]
 
 
 
Income from continuing operations attributable to Phillips 66
$ 3,665 
$ 4,076 
$ 4,732 
Income allocated to participating securities
(5)
(2)
   
Income from continuing operations available to common stockholders, Basic
3,660 
4,074 
4,732 
Income from continuing operations available to common stockholders, Diluted
3,665 
4,076 
4,732 
Discontinued operations
61 
48 
43 
Net Income available to common stockholders, Basic
3,721 
4,122 
4,775 
Net Income available to common stockholders, Diluted
$ 3,726 
$ 4,124 
$ 4,775 
Weighted-average commons shares outstanding - basic
612,918 1 2
628,835 1 2
627,628 1 2
Dilutive effect of stock-based compensation
6,071 
7,929 
7,017 
Weighted-average commons shares outstanding - diluted
618,989 1
636,764 1
634,645 1
Income from continuing operations attributable to Phillips 66, Per Basic Share
$ 5.97 1
$ 6.47 1
$ 7.54 1
Income from continuing operations attributable to Phillips 66, Per Diluted Share
$ 5.92 1
$ 6.40 1
$ 7.45 1
Discontinued operations, Per Basic Share
$ 0.10 1
$ 0.08 1
$ 0.07 1
Discontinued operations, Per Diluted Share
$ 0.10 1
$ 0.08 1
$ 0.07 1
Earnings per share - basic
$ 6.07 1
$ 6.55 1
$ 7.61 1
Earnings per share - diluted
$ 6.02 1
$ 6.48 1
$ 7.52 1
Earnings per Share (Narrative) (Details)
1 Months Ended 12 Months Ended
Apr. 30, 2012
Dec. 31, 2012
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract]
 
 
Shares of Phillips 66 common stock distributed at time of the Separation
625,272,302 
625,272,000 
Debt (Summary of Long-Term Debt) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Summary of long term debt
 
 
Senior Notes
$ 5,800 
 
Debt at face value
5,961 
6,973 
Capitalized leases
(199)
(6)
Net unamortized premiums and discounts
(5)
(5)
Total debt
6,155 
6,974 
Short-term debt
(24)
(13)
Long-term debt
6,131 
6,961 
1.95% Senior Notes Due 2015 [Member]
 
 
Summary of long term debt
 
 
Senior Notes
800 
800 
Stated interest rate of debt
1.95% 
 
2.95% Senior Notes Due 2017 [Member]
 
 
Summary of long term debt
 
 
Senior Notes
1,500 
1,500 
Stated interest rate of debt
2.95% 
 
4.30% Senior Notes Due 2022 [Member]
 
 
Summary of long term debt
 
 
Senior Notes
2,000 
2,000 
Stated interest rate of debt
4.30% 
 
5.875% Senior Notes Due 2042 [Member]
 
 
Summary of long term debt
 
 
Senior Notes
1,500 
1,500 
Stated interest rate of debt
5.875% 
 
Industrial Development Bonds due 2018 through 2021 at 0.05% - 0.07% at year-end 2013 and 0.09% - 0.23% at year-end 2012 [Member]
 
 
Summary of long term debt
 
 
Debt
50 
50 
Stated percentage of debt minimum
0.05% 
0.09% 
Stated percentage of debt maximum
0.07% 
0.23% 
Term loan due 2014 through 2015 at 1.465% at December 31, 2012 [Member]
 
 
Summary of long term debt
 
 
Debt
0 
1,000 
Stated interest rate of debt
 
1.465% 
Note payable to Merey Sweeny, L.P. due 2020 at 7% (related party) [Member]
 
 
Summary of long term debt
 
 
Notes Payable to Merey Sweeny, L.P. (related party)
110 
122 
Stated interest rate of debt
7.00% 
 
Other [Member]
 
 
Summary of long term debt
 
 
Debt
$ 1 
$ 1 
Debt (Narrative) (Details) (USD $)
12 Months Ended 12 Months Ended 12 Months Ended 9 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Jun. 30, 2013
Dec. 31, 2013
Revolving Credit Facility [Member]
Jun. 30, 2013
Revolving Credit Facility [Member]
Sep. 30, 2012
Revolving Credit Facility [Member]
Dec. 31, 2013
Trade Receivables Securitization Facility [Member]
Jun. 30, 2013
Trade Receivables Securitization Facility [Member]
Dec. 31, 2013
Capital Lease Obligations [Member]
Dec. 31, 2013
Term loan due 2014 through 2015 at 1.465% at December 31, 2012 [Member]
Sep. 30, 2013
Phillips 66 Partners LP [Member]
Revolving Credit Facility [Member]
Jul. 24, 2013
Phillips 66 Partners LP [Member]
Revolving Credit Facility [Member]
Long-term Debt, Fiscal Year Maturity [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term borrowing maturities, 2014
$ 24,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term borrowing maturities, 2015
823,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term borrowing maturities, 2016
23,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term borrowing maturities, 2017
1,525,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term borrowing maturities, 2018
37,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Previously existing debt retired
1,020,000,000 
1,210,000,000 
26,000,000 
 
 
 
 
 
 
 
1,000,000,000 
 
 
Debt, Long-term and Short-term, Combined Amount
 
 
 
 
 
 
 
 
 
189,000,000 
 
 
 
Line of Credit Facility Initial Maximum Borrowing Capacity
 
 
 
 
 
4,000,000,000.0 
 
 
 
 
 
 
 
Maximum borrowing capacity under credit facility
 
 
 
 
 
4,500,000,000 
 
 
 
 
 
 
250,000,000 
Line of credit facility amount outstanding
 
 
 
 
 
 
   
 
 
 
 
0 
 
Letters of credit issued
 
 
 
 
51,000,000 
 
 
26,000,000 
 
 
 
 
 
Maximum consolidated net debt-to-capitalization ratio
 
 
 
 
0.6 
 
 
 
 
 
 
 
 
Line of Credit Facility Additional Capacity Increase Option
 
 
 
 
 
 
 
 
 
 
 
 
250,000,000 
Period Of Revolving Credit Agreement
 
 
 
 
 
 
 
 
 
 
 
5 years 
 
Aggregate borrowing capacity of trade receivable securitization facility
 
 
 
 
 
 
 
 
696,000,000 
 
 
 
 
Cash borrowed under the trade receivables securitization facility
 
 
 
 
 
 
 
   
 
 
 
 
 
TradeReceivablesSecuritizationFacilityInitialBorrowingCapacity
 
 
 
$ 1,200,000,000.0 
 
 
 
 
 
 
 
 
 
Guarantees (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2013
Guarantees of Joint Venture Debt [Member]
Debt Joint Venture [Member]
Dec. 31, 2013
Residual Value Guarantees [Member]
Dec. 31, 2013
Other Guarantees [Member]
Dec. 31, 2013
Indemnifications [Member]
Dec. 31, 2013
MSLP 8.85% Senior Notes [Member]
Guarantees of Joint Venture Debt [Member]
Apr. 30, 2012
MSLP 8.85% Senior Notes [Member]
Guarantees of Joint Venture Debt [Member]
Guarantees (Textual) [Abstract]
 
 
 
 
 
 
 
 
Percentage Of Guarantee
 
 
 
 
 
 
 
100.00% 
Senior notes, interest
 
 
 
 
 
 
 
8.85% 
Maximum potential amount of future payments under the guarantees
 
 
$ 103 
$ 228 
$ 305 
 
$ 214 
 
Remaining terms in years of guarantees outstanding
 
 
12 years 
 
11 years 
 
 
 
Carrying amount of indemnifications
 
 
 
 
 
246 
 
 
Environmental accruals for known contamination in carrying amount recorded for indemnifications
$ 492 
$ 530 
 
 
 
$ 112 
 
 
Contingencies and Commitments (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Contingencies and Commitments (Textual) [Abstract]
 
 
 
Performance obligations secured by letters of credit
$ 822 
 
 
Aggregate amounts of estimated payments under long-term throughput and take-or-pay agreements - 2014
338 
 
 
Aggregate amounts of estimated payments under long-term throughput and take-or-pay agreements - 2015
338 
 
 
Aggregate amounts of estimated payments under long-term throughput and take-or-pay agreements - 2016
338 
 
 
Aggregate amounts of estimated payments under long-term throughput and take-or-pay agreements - 2017
338 
 
 
Aggregate amounts of estimated payments under long-term throughput and take-or-pay agreements - 2018
338 
 
 
Aggregate amounts of estimated payments under long-term throughput and take-or-pay agreements - 2019 and after
4,063 
 
 
Total payments under long-term throughput and take-or-pay agreements
342 
358 
300 
Trade Receivables Securitization Facility [Member]
 
 
 
Contingencies and Commitments (Textual) [Abstract]
 
 
 
Letters of credit issued
26 
 
 
Revolving Credit Facility [Member]
 
 
 
Contingencies and Commitments (Textual) [Abstract]
 
 
 
Letters of credit issued
$ 51 
 
 
Derivatives and Financial Instruments (Narrative) (Details)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Derivatives and Financial Instruments (Textual) [Abstract]
 
 
Estimated percentage of derivative contract volume expiring within twelve months
99.00% 
99.00% 
Payment terms of receivables
30 days or less 
 
Fair Value Measurements (Summary of Fair Value of Derivative Assets and Liabilities and Effect of Counterparty Netting) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Asset, Fair Value, Gross Liability
$ (546)
$ (675)
Derivative Asset, Fair Value, Amount Offset Against Collateral
   
(8)
Investments, Fair Value Disclosure
64 
50 
Total assets
660 
817 
Derivative Liability, Fair Value, Gross Asset
(546)
(675)
Derivative Liability, Fair Value, Amount Offset Against Collateral
(41)
(42)
Debt Excluding Capital Leases Difference In Carrying Value And Fair Value
(262)
(590)
Total liabilities
6,852 
8,324 
Derivative Liabilities And Debt Instrument, Fair Value Disclosure
6,003 
7,017 
Reported Value Measurement [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Investments, Fair Value Disclosure
64 
50 
Derivative Assets And Investments, Fair Value Disclosure
114 
134 
Floating Rate Debt [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Debt Instrument, Fair Value Disclosure
50 
1,050 
Debt Excluding Capital Leases Carrying Value
50 
1,050 
Fixed Rate Debt Excluding Capital Leases [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Debt Instrument, Fair Value Disclosure
6,168 
6,508 
Debt Excluding Capital Leases Carrying Value
5,906 
5,918 
Debt Excluding Capital Leases Difference In Carrying Value And Fair Value
(262)
(590)
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Investments, Fair Value Disclosure
64 
50 
Total assets
291 
430 
Total liabilities
303 
1,443 
Level 1 [Member] |
Floating Rate Debt [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Debt Instrument, Fair Value Disclosure
50 
1,050 
Level 1 [Member] |
Fixed Rate Debt Excluding Capital Leases [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Debt Instrument, Fair Value Disclosure
0 
0 
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Investments, Fair Value Disclosure
0 
0 
Total assets
367 
385 
Total liabilities
6,548 
6,880 
Level 2 [Member] |
Floating Rate Debt [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Debt Instrument, Fair Value Disclosure
0 
0 
Level 2 [Member] |
Fixed Rate Debt Excluding Capital Leases [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Debt Instrument, Fair Value Disclosure
6,168 
6,508 
Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Investments, Fair Value Disclosure
0 
0 
Total assets
2 
2 
Total liabilities
1 
1 
Level 3 [Member] |
Floating Rate Debt [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Debt Instrument, Fair Value Disclosure
0 
0 
Level 3 [Member] |
Fixed Rate Debt Excluding Capital Leases [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Debt Instrument, Fair Value Disclosure
0 
0 
Exchange Cleared [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Price Risk Derivative Instruments Not Designated as Hedging Instruments Asset, at Fair Value
559 
689 
Derivative Asset, Fair Value, Gross Liability
538 
672 
Derivative Asset, Fair Value, Amount Offset Against Collateral
0 
8 
Derivative Asset
21 
9 
Price Risk Derivative Instruments Not Designated as Hedging Instruments Liability, at Fair Value
579 
721 
Derivative Liability, Fair Value, Gross Asset
538 
672 
Derivative Liability, Fair Value, Amount Offset Against Collateral
41 
42 
Derivative Liability
   
7 
Derivative, Collateral, Right to Reclaim Cash
 
(7)
Exchange Cleared [Member] |
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Price Risk Derivative Instruments Not Designated as Hedging Instruments Asset, at Fair Value
227 
380 
Price Risk Derivative Instruments Not Designated as Hedging Instruments Liability, at Fair Value
253 
393 
Exchange Cleared [Member] |
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Price Risk Derivative Instruments Not Designated as Hedging Instruments Asset, at Fair Value
332 
309 
Price Risk Derivative Instruments Not Designated as Hedging Instruments Liability, at Fair Value
326 
328 
Exchange Cleared [Member] |
Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Price Risk Derivative Instruments Not Designated as Hedging Instruments Asset, at Fair Value
0 
0 
Price Risk Derivative Instruments Not Designated as Hedging Instruments Liability, at Fair Value
0 
0 
Over the Counter [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Price Risk Derivative Instruments Not Designated as Hedging Instruments Asset, at Fair Value
10 
15 
Derivative Asset, Fair Value, Gross Liability
8 
7 
Derivative Asset
2 
8 
Price Risk Derivative Instruments Not Designated as Hedging Instruments Liability, at Fair Value
11 
13 
Derivative Liability, Fair Value, Gross Asset
8 
7 
Derivative Liability
3 
6 
Over the Counter [Member] |
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Price Risk Derivative Instruments Not Designated as Hedging Instruments Asset, at Fair Value
0 
0 
Price Risk Derivative Instruments Not Designated as Hedging Instruments Liability, at Fair Value
0 
0 
Over the Counter [Member] |
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Price Risk Derivative Instruments Not Designated as Hedging Instruments Asset, at Fair Value
10 
15 
Price Risk Derivative Instruments Not Designated as Hedging Instruments Liability, at Fair Value
11 
13 
Over the Counter [Member] |
Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Price Risk Derivative Instruments Not Designated as Hedging Instruments Asset, at Fair Value
0 
0 
Price Risk Derivative Instruments Not Designated as Hedging Instruments Liability, at Fair Value
0 
0 
Forward Contracts [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Price Risk Derivative Instruments Not Designated as Hedging Instruments Asset, at Fair Value
27 
63 
Derivative Asset, Fair Value, Gross Liability
0 
(4)
Derivative Asset
27 
67 
Price Risk Derivative Instruments Not Designated as Hedging Instruments Liability, at Fair Value
44 
32 
Derivative Liability, Fair Value, Gross Asset
0 
(4)
Derivative Liability
44 
36 
Forward Contracts [Member] |
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Price Risk Derivative Instruments Not Designated as Hedging Instruments Asset, at Fair Value
0 
0 
Price Risk Derivative Instruments Not Designated as Hedging Instruments Liability, at Fair Value
0 
0 
Forward Contracts [Member] |
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Price Risk Derivative Instruments Not Designated as Hedging Instruments Asset, at Fair Value
25 
61 
Price Risk Derivative Instruments Not Designated as Hedging Instruments Liability, at Fair Value
43 
31 
Forward Contracts [Member] |
Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Price Risk Derivative Instruments Not Designated as Hedging Instruments Asset, at Fair Value
2 
2 
Price Risk Derivative Instruments Not Designated as Hedging Instruments Liability, at Fair Value
$ 1 
$ 1 
Fair Value Measurements (Summary of Nonrecurring Fair Value Measurements) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Before-tax loss on net properties, plants and equipment (held for use)
$ 27 
$ 68 
Before-tax loss on net properties, plants and equipment (held for sale)
 
42 
Equity Method Investment, other than temporary impairment
 
1,044 
Fair Value, Measurements, Nonrecurring [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Net properties, plants and equipment (held for use)
22 1
84 1
Net properties, plants and equipment (held for sale)
 
32 1
Equity method investments, fair value
 
781 1
Fair Value, Measurements, Nonrecurring [Member] |
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Net properties, plants and equipment (held for use)
22 
84 
Net properties, plants and equipment (held for sale)
 
32 
Equity method investments, fair value
 
0 
Fair Value, Measurements, Nonrecurring [Member] |
Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Net properties, plants and equipment (held for use)
0 
0 
Net properties, plants and equipment (held for sale)
 
0 
Equity method investments, fair value
 
$ 781 
Fair Value Measurements (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 9 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2012
Rockies Express Pipeline Llc Rex [Member]
Dec. 31, 2013
Rockies Express Pipeline Llc Rex [Member]
Dec. 31, 2012
Corporate Property [Member]
Dec. 31, 2012
Refining [Member]
Dec. 31, 2013
Refining [Member]
Dec. 31, 2012
Refining [Member]
Equipment [Member]
Dec. 31, 2013
M&S Segment [Member]
Dec. 31, 2012
M&S Segment [Member]
Dec. 31, 2013
Corporate and Other [Member]
Dec. 31, 2012
Corporate and Other [Member]
Dec. 31, 2013
Corporate and Other [Member]
Corporate Property [Member]
Dec. 31, 2013
Midstream Segment [Member]
Dec. 31, 2012
Midstream Segment [Member]
Jun. 30, 2012
Midstream Segment [Member]
Rockies Express Pipeline Llc Rex [Member]
Dec. 31, 2012
Midstream Segment [Member]
Terminals and Storage Facilities [Member]
Dec. 31, 2012
Midstream Segment [Member]
Natural Gas Transmission Pipeline [Member]
Dec. 31, 2013
Composite Graphite Business [Member]
M&S Segment [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Carrying amount of net PP&E held for use
$ 15,398 1
$ 15,407 1
 
 
 
$ 12,076 1
$ 12,546 
 
$ 646 
$ 1,380 1
$ 518 
$ 465 1
$ 31 
$ 1,688 
$ 1,444 1
 
$ 76 
 
$ 18 
Fair value of net PP&E held for use
 
 
 
 
51 
 
 
 
 
 
 
 
22 
 
 
 
33 
 
 
Before-tax loss on net properties, plants and equipment (held for use)
27 
68 
 
 
25 
 
 
 
 
 
 
 
9 
 
 
 
43 
 
18 
Carrying amount of net PP&E held for sale
 
 
 
 
 
 
 
74 
 
 
 
 
 
 
 
 
 
 
 
Fair value of net PP&E held for sale
 
 
 
 
 
 
 
32 
 
 
 
 
 
 
 
 
 
 
 
Before-tax loss on net PP&E held for sale
 
42 
 
 
 
 
 
42 
 
 
 
 
 
 
 
 
 
 
 
Net properties, plants and equipment (held for use), carrying amount
 
 
 
 
76 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity investments
11,080 
10,291 
 
250 
 
1,062 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity method investments, fair value
 
 
 
 
 
498 
 
 
 
 
 
 
 
 
 
 
 
283 
 
Equity method investment, before tax impairment other than temporary
 
$ 1,044 
$ 480 
 
 
$ 564 
 
 
 
 
 
 
 
 
 
$ 480 
 
$ 480 
 
Equity (Narrative) (Details) (USD $)
1 Months Ended 12 Months Ended 7 Months Ended 11 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Feb. 7, 2014
Subsequent Event [Member]
Dec. 31, 2012
Initial Share Repurchase Program [Member]
Jul. 30, 2013
Additional Share Repurchase Program July Thirty Two Thousand Thirteen [Member]
Dec. 6, 2013
AdditionalShareRepurchaseProgramDecemberSixTwoThousandThirteen [Member]
Class of Stock [Line Items]
 
 
 
 
 
 
Preferred stock authorized
500,000,000 
 
 
 
 
 
Par value of preferred stock
$ 0.01 
 
 
 
 
 
Amount authorized for stock repurchase
 
 
 
$ 2,000,000,000 
$ 1,000,000,000 
$ 2,000,000,000 
Share repurchases
44,106,380 
7,603,896 
 
 
 
 
Cost of shares repurchased
$ 2,602,000,000 
$ 356,000,000 
 
 
 
 
Dividend declared
 
 
$ 0.39 
 
 
 
Leases (Summary of Future Minimum Rental Payments) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Future Minimum Rental Payments Due, Fiscal Year Maturity [Abstract]
 
 
Capital Lease Obligations, 2014
$ 19 
 
Capital Lease Obligations, 2015
15 
 
Capital Lease Obligations, 2016
14 
 
Capital Lease Obligations, 2017
16 
 
Capital Lease Obligations, 2018
13 
 
Capital Lease Obligations, Remaining years
196 
 
Capital Lease Obligations, Total
273 
 
Income from subleases
   1
 
Less amount representing interest
74 
 
Operating Lease Obligations, 2014
522 
 
Operating Lease Obligations, 2015
437 
 
Operating Lease Obligations, 2016
289 
 
Operating Lease Obligations, 2017
245 
 
Operating Lease Obligations, 2018
197 
 
Operating Lease Obligations, Remaining years
355 
 
Operating Lease Obligations, Total
2,045 
 
Less income from subleases
112 1
 
Net minimum operating lease payments
1,933 
 
Income related to subleases to related parties
37 
 
Capital Lease Obligations
$ 199 
$ 6 
Leases (Summary of Operating Lease Rental Expense) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Operating Leases, Rent Expense, Net [Abstract]
 
 
 
Minimum rentals
$ 572 
$ 554 
$ 576 
Contingent rentals
7 
8 
5 
Less sublease rental income
133 
93 
97 
Rent expense, net
$ 446 
$ 469 
$ 484 
Leases Leases (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Leases [Abstract]
 
 
Capital Leases, Balance Sheet, Assets by Major Class, Net
$ 206 
$ 17 
Employee Benefit Plans (Reconciliation of Projected Benefit Obligations and Plan Assets) (Details) (USD $)
In Millions, unless otherwise specified
1 Months Ended 12 Months Ended
Apr. 30, 2012
Dec. 31, 2013
United States Pension Plans of U S Entity Defined Benefit [Member]
Dec. 31, 2012
United States Pension Plans of U S Entity Defined Benefit [Member]
Dec. 31, 2011
United States Pension Plans of U S Entity Defined Benefit [Member]
Dec. 31, 2013
Foreign Pension Plans Defined Benefit [Member]
Dec. 31, 2012
Foreign Pension Plans Defined Benefit [Member]
Dec. 31, 2011
Foreign Pension Plans Defined Benefit [Member]
Dec. 31, 2013
Other Postretirement Benefit Plans Defined Benefit [Member]
Dec. 31, 2012
Other Postretirement Benefit Plans Defined Benefit [Member]
Dec. 31, 2011
Other Postretirement Benefit Plans Defined Benefit [Member]
Change in Benefit Obligation
 
 
 
 
 
 
 
 
 
 
Benefit obligation, beginning balance
 
$ 2,624 
$ 0 
 
$ 757 
$ 237 
 
$ 191 
$ 0 
 
Service cost
 
125 
82 
0 
36 
22 
5 
8 
4 
0 
Interest cost
 
91 
65 
0 
31 
25 
13 
7 
5 
0 
Plan participant contributions
 
0 
0 
 
4 
2 
 
0 
0 
 
Plan amendments
 
0 
0 
 
0 
0 
 
0 
(18)
 
Actuarial loss
 
(194)
90 
 
1 
83 
 
(14)
2 
 
Benefits paid
 
(173)
(78)
 
(15)
(12)
 
(3)
(1)
 
Liabilities assumed from Separation
3,060 
0 
2,465 
 
0 
396 
 
0 
199 
 
Foreign currency exchange rate change
 
0 
0 
 
26 
4 
 
0 
0 
 
Benefit obligation, ending balance
 
2,473 
2,624 
0 
840 
757 
237 
189 
191 
0 
Accumulated benefit obligation portion of above at December 31
 
2,151 
2,265 
 
627 
563 
 
 
 
 
Change in Fair Value of Plan Assets
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets, beginning balance
 
1,762 
0 
 
527 
120 
 
0 
0 
 
Actual return on plan assets
 
283 
91 
 
60 
35 
 
0 
0 
 
Company contributions
 
136 
37 
 
50 
36 
 
3 
1 
 
Plan participant contributions
 
0 
0 
 
4 
2 
 
0 
0 
 
Benefits paid
 
(173)
(78)
 
(15)
(12)
 
(3)
(1)
 
Assets received from Separation
2,056 
0 
1,712 
 
0 
344 
 
0 
0 
 
Foreign currency exchange rate change
 
0 
0 
 
19 
2 
 
0 
0 
 
Fair value of plan assets, ending balance
 
2,008 
1,762 
0 
645 
527 
120 
0 
0 
0 
Funded Status at December 31
 
$ (465)
$ (862)
 
$ (195)
$ (230)
 
$ (189)
$ (191)
 
Employee Benefit Plans (Summary of Amounts Recognized in the Consolidated Balance Sheet (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Defined Benefit Plan Disclosure [Line Items]
 
 
Noncurrent liabilities
$ (921)
$ (1,325)
United States Pension Plans of US Entity, Defined Benefit [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Current liabilities
(8)
(8)
Noncurrent liabilities
(457)
(854)
Total recognized
(465)
(862)
Foreign Pension Plans, Defined Benefit [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Noncurrent assets
2 
 
Current liabilities
0 
0 
Noncurrent liabilities
(197)
(230)
Total recognized
(195)
(230)
Other Postretirement Benefit Plans, Defined Benefit [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Current liabilities
(3)
(3)
Noncurrent liabilities
(186)
(188)
Total recognized
$ (189)
$ (191)
Employee Benefit Plans (Summary of Amounts Recognized in Other Comprehensive Income (Loss)) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Amortization of (gain) loss included in income
$ (401)
$ 152 
$ 8 
Prior service (cost) credit arising during the period
0 
(18)
0 
Amortization of prior service cost (credit) included in income
0 
(1)
0 
United States Pension Plans of US Entity, Defined Benefit [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Unrecognized net actuarial loss (gain)
399 
839 
 
Unrecognized prior service cost (credit)
12 
15 
 
Net loss arising during the period
356 
(78)
 
Amortization of (gain) loss included in income
84 
49 
 
Net change during the period
440 
(29)
 
Prior service (cost) credit arising during the period
0 
0 
 
Amortization of prior service cost (credit) included in income
3 
2 
 
Net change during the period
3 
2 
 
Foreign Pension Plans, Defined Benefit [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Unrecognized net actuarial loss (gain)
120 
161 
 
Unrecognized prior service cost (credit)
(11)
(12)
 
Net loss arising during the period
25 
(72)
 
Amortization of (gain) loss included in income
16 
7 
 
Net change during the period
41 
(65)
 
Prior service (cost) credit arising during the period
0 
0 
 
Amortization of prior service cost (credit) included in income
(1)
(1)
 
Net change during the period
(1)
(1)
 
Other Postretirement Benefit Plans, Defined Benefit [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Unrecognized net actuarial loss (gain)
(18)
(4)
 
Unrecognized prior service cost (credit)
(13)
(15)
 
Net loss arising during the period
14 
(2)
 
Amortization of (gain) loss included in income
0 
(1)
 
Net change during the period
14 
(3)
 
Prior service (cost) credit arising during the period
0 
18 
 
Amortization of prior service cost (credit) included in income
(2)
0 
 
Net change during the period
$ (2)
$ 18 
 
Employee Benefit Plans (Summary of Components of Net Periodic Benefit Cost) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
United States Pension Plans of US Entity, Defined Benefit [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Service cost
$ 125 
$ 82 
$ 0 
Interest cost
91 
65 
0 
Expected return on plan assets
(120)
(81)
0 
Amortization of prior service cost
3 
2 
0 
Recognized net actuarial loss (gain)
84 
49 
0 
Subtotal net periodic benefit cost
183 
117 
0 
Allocated benefit cost from ConocoPhillips
0 
71 
199 
Total net periodic benefit cost
183 
188 
199 
Foreign Pension Plans, Defined Benefit [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Service cost
36 
22 
5 
Interest cost
31 
25 
13 
Expected return on plan assets
(29)
(21)
(8)
Amortization of prior service cost
(1)
(1)
0 
Recognized net actuarial loss (gain)
16 
7 
3 
Subtotal net periodic benefit cost
53 
32 
13 
Allocated benefit cost from ConocoPhillips
0 
13 
39 
Total net periodic benefit cost
53 
45 
52 
Other Postretirement Benefit Plans, Defined Benefit [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Service cost
8 
4 
0 
Interest cost
7 
5 
0 
Expected return on plan assets
0 
0 
0 
Amortization of prior service cost
(2)
0 
0 
Recognized net actuarial loss (gain)
0 
(1)
0 
Subtotal net periodic benefit cost
13 
8 
0 
Allocated benefit cost from ConocoPhillips
0 
7 
19 
Total net periodic benefit cost
$ 13 
$ 15 
$ 19 
Employee Benefit Plans (Summary of Net Periodic Benefit Cost) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
United States Pension Plans of US Entity, Defined Benefit [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
Unrecognized net actuarial loss
$ 40 
Unrecognized prior service cost (credit)
3 
Foreign Pension Plans, Defined Benefit [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
Unrecognized net actuarial loss
12 
Unrecognized prior service cost (credit)
(2)
Other Postretirement Benefit Plans, Defined Benefit [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
Unrecognized net actuarial loss
(2)
Unrecognized prior service cost (credit)
$ (1)
Employee Benefit Plans (Summary of Weighted-Average Assumptions) (Details)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
United States Pension Plans of US Entity, Defined Benefit [Member]
 
 
Assumptions Used to Determine Benefit Obligations
 
 
Discount rate
4.55% 
3.60% 
Rate of compensation increase
4.00% 
3.85% 
Assumptions Used to Determine Net Periodic Benefit Cost
 
 
Discount rate
3.60% 
4.20% 
Expected return on plan assets
7.00% 
7.00% 
Rate of compensation increase
3.85% 
3.75% 
Foreign Pension Plans, Defined Benefit [Member]
 
 
Assumptions Used to Determine Benefit Obligations
 
 
Discount rate
4.30% 
4.20% 
Rate of compensation increase
3.90% 
3.60% 
Assumptions Used to Determine Net Periodic Benefit Cost
 
 
Discount rate
4.20% 
5.10% 
Expected return on plan assets
5.50% 
5.80% 
Rate of compensation increase
3.60% 
3.60% 
Other Postretirement Benefit Plans, Defined Benefit [Member]
 
 
Assumptions Used to Determine Benefit Obligations
 
 
Discount rate
4.40% 
3.70% 
Rate of compensation increase
0.00% 
0.00% 
Assumptions Used to Determine Net Periodic Benefit Cost
 
 
Discount rate
3.70% 
4.20% 
Expected return on plan assets
0.00% 
0.00% 
Rate of compensation increase
0.00% 
0.00% 
Employee Benefit Plans (Summary of Pension Plan Asset Fair Values) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
United States Pension Plans of US Entity, Defined Benefit [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
$ 2,008 
$ 1,762 
$ 0 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
1,181 
 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
827 
 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
United States Equity Securities [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
552 
529 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
United States Equity Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
552 
529 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
United States Equity Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
United States Equity Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
International Equity Securities [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
439 
340 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
International Equity Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
439 
340 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
International Equity Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
International Equity Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Common or Collective Trusts Equity Securities [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
302 
237 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Common or Collective Trusts Equity Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Common or Collective Trusts Equity Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
302 
237 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Common or Collective Trusts Equity Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Mutual Funds Equity Securities [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
42 
42 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Mutual Funds Equity Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Mutual Funds Equity Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
42 
42 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Mutual Funds Equity Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Government Debt Securities [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
184 
214 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Government Debt Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
114 
160 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Government Debt Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
70 
54 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Government Debt Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Corporate Debt Securities [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
305 
288 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Corporate Debt Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Corporate Debt Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
305 
287 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Corporate Debt Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
1 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Agency and Mortgage-Backed Debt Securities [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
90 
45 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Agency and Mortgage-Backed Debt Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Agency and Mortgage-Backed Debt Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
90 
45 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Agency and Mortgage-Backed Debt Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Common or Collective Trusts Debt Securities [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
17 
17 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Common or Collective Trusts Debt Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Common or Collective Trusts Debt Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
17 
17 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Common or Collective Trusts Debt Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Mutual Funds Debt Securities [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Mutual Funds Debt Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Mutual Funds Debt Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Mutual Funds Debt Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Cash [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
77 
42 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Cash [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
77 
42 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Cash [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Cash [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Derivative [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
2 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Derivative [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
(1)
 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Derivative [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
1 
2 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Derivative [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Insurance Contracts [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Insurance Contracts [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Insurance Contracts [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Insurance Contracts [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Real Estate [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Real Estate [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Real Estate [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Real Estate [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Excluding Net Receivables Related To Security Transactions [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
2,008 
1,756 1
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Excluding Net Receivables Related To Security Transactions [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
 
1,071 1
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Excluding Net Receivables Related To Security Transactions [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
 
684 1
 
United States Pension Plans of US Entity, Defined Benefit [Member] |
Excluding Net Receivables Related To Security Transactions [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
 
1 1
 
Foreign Pension Plans, Defined Benefit [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
645 
527 
120 
Foreign Pension Plans, Defined Benefit [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
370 
 
 
Foreign Pension Plans, Defined Benefit [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
251 
 
 
Foreign Pension Plans, Defined Benefit [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
24 
 
 
Foreign Pension Plans, Defined Benefit [Member] |
United States Equity Securities [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
129 
100 
 
Foreign Pension Plans, Defined Benefit [Member] |
United States Equity Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
129 
100 
 
Foreign Pension Plans, Defined Benefit [Member] |
United States Equity Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
Foreign Pension Plans, Defined Benefit [Member] |
United States Equity Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
Foreign Pension Plans, Defined Benefit [Member] |
International Equity Securities [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
104 
86 
 
Foreign Pension Plans, Defined Benefit [Member] |
International Equity Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
104 
86 
 
Foreign Pension Plans, Defined Benefit [Member] |
International Equity Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
Foreign Pension Plans, Defined Benefit [Member] |
International Equity Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
Foreign Pension Plans, Defined Benefit [Member] |
Common or Collective Trusts Equity Securities [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
103 
97 
 
Foreign Pension Plans, Defined Benefit [Member] |
Common or Collective Trusts Equity Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
Foreign Pension Plans, Defined Benefit [Member] |
Common or Collective Trusts Equity Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
103 
97 
 
Foreign Pension Plans, Defined Benefit [Member] |
Common or Collective Trusts Equity Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
Foreign Pension Plans, Defined Benefit [Member] |
Mutual Funds Equity Securities [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
5 
2 
 
Foreign Pension Plans, Defined Benefit [Member] |
Mutual Funds Equity Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
5 
2 
 
Foreign Pension Plans, Defined Benefit [Member] |
Mutual Funds Equity Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
Foreign Pension Plans, Defined Benefit [Member] |
Mutual Funds Equity Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
Foreign Pension Plans, Defined Benefit [Member] |
Government Debt Securities [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
117 
97 
 
Foreign Pension Plans, Defined Benefit [Member] |
Government Debt Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
117 
97 
 
Foreign Pension Plans, Defined Benefit [Member] |
Government Debt Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
Foreign Pension Plans, Defined Benefit [Member] |
Government Debt Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
Foreign Pension Plans, Defined Benefit [Member] |
Corporate Debt Securities [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
Foreign Pension Plans, Defined Benefit [Member] |
Corporate Debt Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
Foreign Pension Plans, Defined Benefit [Member] |
Corporate Debt Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
Foreign Pension Plans, Defined Benefit [Member] |
Corporate Debt Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
Foreign Pension Plans, Defined Benefit [Member] |
Agency and Mortgage-Backed Debt Securities [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
Foreign Pension Plans, Defined Benefit [Member] |
Agency and Mortgage-Backed Debt Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
Foreign Pension Plans, Defined Benefit [Member] |
Agency and Mortgage-Backed Debt Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
Foreign Pension Plans, Defined Benefit [Member] |
Agency and Mortgage-Backed Debt Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
Foreign Pension Plans, Defined Benefit [Member] |
Common or Collective Trusts Debt Securities [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
148 
112 
 
Foreign Pension Plans, Defined Benefit [Member] |
Common or Collective Trusts Debt Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
Foreign Pension Plans, Defined Benefit [Member] |
Common or Collective Trusts Debt Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
148 
112 
 
Foreign Pension Plans, Defined Benefit [Member] |
Common or Collective Trusts Debt Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
Foreign Pension Plans, Defined Benefit [Member] |
Mutual Funds Debt Securities [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
1 
1 
 
Foreign Pension Plans, Defined Benefit [Member] |
Mutual Funds Debt Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
1 
1 
 
Foreign Pension Plans, Defined Benefit [Member] |
Mutual Funds Debt Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
Foreign Pension Plans, Defined Benefit [Member] |
Mutual Funds Debt Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
Foreign Pension Plans, Defined Benefit [Member] |
Cash [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
14 
9 
 
Foreign Pension Plans, Defined Benefit [Member] |
Cash [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
14 
9 
 
Foreign Pension Plans, Defined Benefit [Member] |
Cash [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
Foreign Pension Plans, Defined Benefit [Member] |
Cash [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
Foreign Pension Plans, Defined Benefit [Member] |
Derivative [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
 
 
Foreign Pension Plans, Defined Benefit [Member] |
Derivative [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
 
 
Foreign Pension Plans, Defined Benefit [Member] |
Derivative [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
 
 
Foreign Pension Plans, Defined Benefit [Member] |
Derivative [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
 
 
Foreign Pension Plans, Defined Benefit [Member] |
Insurance Contracts [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
16 
15 
 
Foreign Pension Plans, Defined Benefit [Member] |
Insurance Contracts [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
Foreign Pension Plans, Defined Benefit [Member] |
Insurance Contracts [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
Foreign Pension Plans, Defined Benefit [Member] |
Insurance Contracts [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
16 
15 
 
Foreign Pension Plans, Defined Benefit [Member] |
Real Estate [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
8 
7 
 
Foreign Pension Plans, Defined Benefit [Member] |
Real Estate [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
Foreign Pension Plans, Defined Benefit [Member] |
Real Estate [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
0 
0 
 
Foreign Pension Plans, Defined Benefit [Member] |
Real Estate [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
8 
7 
 
Foreign Pension Plans, Defined Benefit [Member] |
Excluding Net Receivables Related To Security Transactions [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
645 
526 1
 
Foreign Pension Plans, Defined Benefit [Member] |
Excluding Net Receivables Related To Security Transactions [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
 
295 1
 
Foreign Pension Plans, Defined Benefit [Member] |
Excluding Net Receivables Related To Security Transactions [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
 
209 1
 
Foreign Pension Plans, Defined Benefit [Member] |
Excluding Net Receivables Related To Security Transactions [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Fair value of pension plan assets
 
$ 22 1
 
Employee Benefit Plans (Summary of Future Service Benefit Payments) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
United States Pension Plans of US Entity, Defined Benefit [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
2013
$ 203 
2014
210 
2015
222 
2016
233 
2017
259 
2018-2022
1,333 
Foreign Pension Plans, Defined Benefit [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
2013
18 
2014
20 
2015
25 
2016
27 
2017
26 
2018-2022
156 
Other Postretirement Benefit Plans, Defined Benefit [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
2013
9 
2014
12 
2015
15 
2016
17 
2017
19 
2018-2022
$ 106 
Employee Benefit Plans (Summary of Compensation Expense and Tax Benefit) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Compensation and Retirement Disclosure [Abstract]
 
 
 
Compensation cost
$ 132 
$ 94 
$ 46 
Tax benefit
$ (50)
$ (35)
$ (18)
Employee Benefit Plans (Summary of Stock Option Activity) (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Compensation and Retirement Disclosure [Abstract]
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross
546,900 1
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price
$ 62.17 1
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value
$ 16.77 1
Options, Outstanding at January 1, 2013
8,350,641 1
Options, Forfeited
(4,900)1
Options, Excercised
(2,002,575)1
Options, Expired or canceled
0 1
Options, Outstanding at December 31, 2013
6,890,066 1
Options, Vested at December 31, 2013
6,358,111 1
Options, Exercisable at December 31, 2013
5,007,009 1
Weighted-Average Exercise Price, Outstanding at January 1, 2013
$ 26.25 1
Weighted-Average Exercise Price, Forfeited
$ 62.17 1
Weighted Average Exercise Price, Exercised
$ 21.74 1
Weighted-Average Exercise Price, Expired or canceled
$ 0 1
Weighted-Average Exercise Price, Outstanding at December 31, 2013
$ 30.38 1
Weighted-Average Exercise Price, Vested at December 31, 2013
$ 29.47 1
Weighted-Average Exercise Price, Exercisable at December 31, 2013
$ 26.61 1
Aggregate Intrinsic Value, Exercised
$ 81 1
Aggregate Intrinsic Value, Vested at December 31, 2012
297 1
Aggregate Intrinsic Value, Exercisable at December 31, 2012
$ 248 1
Employee Benefit Plans (Fair Value Assumption and Assumption Ranges) (Details) (Stock Options [Member])
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Stock Options [Member]
 
 
 
Assumptions Used
 
 
 
Risk-free interest rate
1.18% 
1.62% 
3.10% 
Dividend yield
2.50% 
4.00% 
4.00% 
Volatility factor
35.47% 
33.30% 
33.40% 
Expected life (years)
6 years 2 months 23 days 
7 years 5 months 1 day 
6 years 10 months 13 days 
Employee Benefit Plans (Summary of Stock Unit Activity) (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Issued
(2,002,575)1
Restricted Stock Units (RSUs) [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Outstanding at January 1, 2013
5,226,610 2
Granted
850,824 2
Forfeited
(64,762)2
Issued
(1,572,411)2
Outstanding at December 31, 2013
4,440,261 2
Not Vested at December 31, 2013
2,843,964 2
Outstanding at January 1, 2013
$ 28.62 2
Granted
$ 62.14 2
Forfeited
$ 43.23 2
Issued
$ 26.80 2
Outstanding at December 31, 2013
$ 35.48 2
Not Vested at December 31, 2013
$ 35.64 2
Issued
$ 100 2
Employee Benefit Plans (Summary of Performance Share Activity) (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Issued
(2,002,575)1
Performance Shares [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Outstanding at January 1, 2013
2,592,274 2
Granted
266,052 2
Forfeited
0 2
Issued
(145,358)2
Outstanding at December 31, 2013
2,712,968 2
Not Vested at December 31, 2013
649,672 2
Outstanding at January 1, 2013
$ 34.36 2
Granted
$ 62.17 2
Forfeited
   2
Issued
$ 33.84 2
Outstanding at December 31, 2013
$ 37.12 2
Not Vested at December 31, 2013
$ 37.73 2
Issued
$ 9 2
Employee Benefit Plans (Narrative) (Details) (USD $)
In Millions, except Share data, unless otherwise specified
1 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended
Apr. 30, 2012
Mar. 31, 2013
Jun. 30, 2012
Dec. 31, 2013
Jun. 30, 2013
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2013
United States Pension Plans of U S Entity Defined Benefit [Member]
Dec. 31, 2012
United States Pension Plans of U S Entity Defined Benefit [Member]
Dec. 31, 2013
Foreign Pension Plans Defined Benefit [Member]
Dec. 31, 2012
Foreign Pension Plans Defined Benefit [Member]
Dec. 31, 2013
Other Postretirement Benefit Plans, Defined Benefit [Member]
Dec. 31, 2012
Other Postretirement Benefit Plans, Defined Benefit [Member]
Dec. 31, 2013
Tax-Qualified Pension Plans [Member]
Dec. 31, 2012
Tax-Qualified Pension Plans [Member]
Dec. 31, 2013
Unfunded Nonqualified Key Employee Pension Plans [Member]
Dec. 31, 2012
Unfunded Nonqualified Key Employee Pension Plans [Member]
Dec. 31, 2013
Equity Securities [Member]
Dec. 31, 2013
Debt Securities [Member]
Dec. 31, 2013
Other Types of Investments [Member]
Dec. 31, 2013
Stock Options [Member]
Dec. 31, 2013
Restricted Stock Units (RSUs) [Member]
Dec. 31, 2013
Performance Shares [Member]
Dec. 31, 2009
Performance Shares [Member]
Dec. 31, 2008
Performance Shares [Member]
Dec. 31, 2010
Performance Shares [Member]
Mar. 31, 2013
Minimum [Member]
Mar. 31, 2013
Maximum [Member]
Dec. 31, 2013
First Third of Options [Member]
Restricted Stock Units (RSUs) [Member]
Dec. 31, 2013
Second Third of Options [Member]
Restricted Stock Units (RSUs) [Member]
Dec. 31, 2013
Final Third of Options [Member]
Restricted Stock Units (RSUs) [Member]
Dec. 31, 2013
Employees Eligible for Retirement [Member]
Stock Options [Member]
Dec. 31, 2013
Employees Eligible for Retirement [Member]
Restricted Stock Units (RSUs) [Member]
Dec. 31, 2012
Defined Benefit Plan [Member]
Dec. 31, 2011
Defined Benefit Plan [Member]
Employee Benefit Plans (Textual) [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Transfer of plan assets
$ 2,056 
 
 
 
 
 
 
 
$ 0 
$ 1,712 
$ 0 
$ 344 
$ 0 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Transfer of benefit obligations
3,060 
 
 
 
 
 
 
 
0 
2,465 
0 
396 
0 
199 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Transfer of other comprehensive loss
869 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Transfer of other comprehensive loss, net of tax
540 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Projected benefit obligation, Tax-qualified pension plans with projected benefit obligations in excess of plan assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,757 
3,308 
82 
73 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated benefit obligation, Tax-qualified pension plans with projected benefit obligations in excess of plan assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,407 
2,777 
58 
51 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets, Tax-qualified pension plans with projected benefit obligations in excess of plan assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,177 
2,289 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net actuarial gains and losses, Percent amortized
 
 
 
 
 
10.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Measurement of the accumulated postretirement benefit obligation assumes a health care cost trend rate
 
 
 
 
 
 
 
 
 
 
 
 
7.25% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Measurement of the accumulated postretirement benefit obligation assumes a health care cost trend rate, after decline
 
 
 
 
 
5.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year of measurement of the accumulated postretirement benefit obligation assumes a health care cost trend rate, after decline
 
 
 
2023 
 
2023 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage-point change in the assumed health care cost trend rate
 
 
 
 
 
1.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Target allocations for plan assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
62.00% 
37.00% 
1.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Receivables related to security transactions, Net
 
 
 
 
 
 
7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expected future employer contributions next fiscal year
 
 
 
 
 
 
 
 
175 
 
60 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum employee contribution of eligible pay, Percent
 
 
 
 
 
75.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Defined Contribution Plan, Employer Matching Contribution, Percent of Match
 
 
 
 
 
5.00% 
1.25% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Defined Contribution Plan, Employee Contribution of Gross Pay, Percentage Required to be Eligible for Discretionary Company Contributions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.00% 
 
 
 
 
 
 
 
 
Company matching contribution of eligible pay per employee, Percent
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.00% 
6.00% 
 
 
 
 
 
 
 
Defined Contribution Plan, Employer Discretionary Contribution, Target Percent of Employees' Gross Pay
 
2.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Defined Contribution Plan, Employer Discretionary Contribution Percentage
 
 
 
5.00% 
3.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contributions charged to expense
 
 
 
 
 
111 
15 
13 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
157 
38 
Employee percent of eligible pay contribution for participation in stock savings feature, Percent
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.00% 
 
Common stock issuable under P66 Omnibus Plan, maximum
 
 
 
45,000,000 
 
45,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Incremental compensation expense
 
 
9 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Minimum Service Period to Avoid Award Forfeiture
 
 
 
 
 
6 months 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock option terms in years
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
P10Y 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Award vesting rights per anniversary date
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
one-third 
one-third 
 
 
 
 
 
 
 
 
 
 
 
 
 
Award vesting period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
36 months 
48 months 
60 months 
6 months 
6 months 
 
 
Weighted-average remaining contractual terms of vested options
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5 years 7 months 30 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average remaining contractual terms of exercisable options
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4 years 11 months 22 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash received from the exercise of options
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
44 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tax benefit from the exercise of options
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrecognized compensation expense from unvested awards held by employees
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 4 
$ 50 
$ 12 
 
 
 
 
 
 
 
 
 
 
 
 
Unrecognized compensation expense from unvested awards held by employees, Weighted-average period for recognition
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
16 months 
25 months 
33 months 
 
 
 
 
 
 
 
 
 
 
 
 
Unrecognized compensation expense from unvested awards held by employees, Longest period for recognition
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
25 months 
40 months 
13 years 
 
 
 
 
 
 
 
 
 
 
 
 
Eligible retirement age
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
55 
55 
 
 
 
 
 
 
 
 
 
Years of service
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
five years 
five years 
 
 
 
 
 
 
 
 
 
 
Date of performance awards authorization relative to grant date
 
 
 
 
 
3 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of shares of common stock to be issued per stock unit
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 
1 
 
 
 
 
 
 
 
 
 
 
 
 
Income Taxes (Components of Income Tax Expense) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Federal
 
 
 
Current
$ 1,054 
$ 1,967 
$ 713 
Deferred
526 
69 
745 
Foreign
 
 
 
Current
98 
160 
126 
Deferred
(48)
45 
(9)
State and Local
 
 
 
Current
146 
253 
132 
Deferred
68 
(21)
115 
Income tax expense
$ 1,844 
$ 2,473 
$ 1,822 
Income Taxes (Deferred Tax Liabilities and Assets) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Deferred Tax Liabilities
 
 
Properties, plants and equipment, and intangibles
$ 3,747 
$ 3,721 
Investment in joint ventures
2,696 
2,183 
Investments in foreign subsidiaries
401 
386 
Other
0 
24 
Total deferred tax liabilities
6,844 
6,314 
Deferred Tax Assets
 
 
Benefit plan accruals
499 
614 
Inventory
51 
92 
Asset retirement obligations and accrued environmental costs
223 
234 
Other financial accruals and deferrals
223 
166 
Loss and credit carryforwards
123 
313 
Other
18 
59 
Total deferred tax assets
1,137 
1,478 
Less valuation allowance
127 
329 
Net deferred tax assets
1,010 
1,149 
Net deferred tax liabilities
$ 5,834 
$ 5,165 
Income Taxes (Unrecognized Tax Benefits) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Reconciliation of Unrecognized Tax Benefits [Roll Forward]
 
 
 
Unrecognized tax benefits, beinning of period
$ 158 
$ 169 
$ 166 
Additions based on tax positions related to the current year
30 
3 
11 
Additions for tax positions of prior years
25 
35 
27 
Reductions for tax positions of prior years
(8)
(47)
(32)
Settlements
(3)
(2)
(2)
Lapse of statute
0 
0 
(1)
Unrecognized tax benefits, end of period
$ 202 
$ 158 
$ 169 
Income Taxes (Income Tax Reconciliation) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Income (loss) before income taxes [Abstract]
 
 
 
United States
$ 5,158 
$ 6,192 
$ 6,107 
Foreign
368 
364 
452 
Income from continuing operations before income taxes
5,526 
6,556 
6,559 
United States, percent of pre-tax income
93.30% 
94.40% 
93.10% 
Foreign, percent of pre-tax income
6.70% 
5.60% 
6.90% 
Total, percent of pre-tax income
100.00% 
100.00% 
100.00% 
Income Tax Expense (Benefit), Income Tax Reconciliation
 
 
 
Federal statutory income tax
1,934 
2,295 
2,295 
Goodwill allocated to assets sold
0 
9 
96 
Capital loss utilization
0 
0 
(619)
Tax on foreign operations
(198)
141 
(61)
Federal manufacturing deduction
(68)
(124)
(52)
State income tax, net of federal benefit
139 
151 
161 
Other
37 
1 
2 
Income tax expense
$ 1,844 
$ 2,473 
$ 1,822 
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent
0.70% 
0.00% 
0.00% 
Effective Income Tax Rate, Tax Rate Reconciliation
 
 
 
Federal statutory income tax, percent
35.00% 
35.00% 
35.00% 
Goodwill allocated to assets sold, percent
0.00% 
0.10% 
1.40% 
Capital loss utilization, percent
0.00% 
0.00% 
(9.40%)
Tax on foreign operations, percent
(3.60%)
2.20% 
(0.90%)
Federal manufacturing deduction, percent
(1.20%)
(1.90%)
(0.80%)
State income tax, net of federal benefit, percent
2.50% 
2.30% 
2.50% 
Effective income tax rate
33.40% 
37.70% 
27.80% 
Income Taxes (Narrative) (Details) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Deferred Tax Assets
 
 
 
Deferred tax assets, current
$ 291,000,000 
$ 307,000,000 
 
Deferred tax assets, noncurrent
0 
1,000,000 
 
Deferred Tax Liabilities
 
 
 
Deferred tax liabilities, current
0 
29,000,000 
 
Deferred tax liabilities, noncurrent
6,125,000,000 
5,444,000,000 
 
Change in deferred tax asset valuation allowance
202,000,000 
 
 
Income considered to be permanently reinvested in foreign subsidiaries and foreign corporate joint ventures
1,700,000,000 
 
 
Income Tax Uncertainties
 
 
 
Unrecognized tax benefits that if recognized, would affect effective tax rate
161,000,000 
125,000,000 
114,000,000 
Unrecognized tax benefits and the related accrued liability that may be recognized or paid within the next twelve months
118,000,000 
 
 
Accrued liabilities for interest and penalties
18,000,000 
15,000,000 
9,000,000 
Interest and penalties affecting earnings, increase (decrease)
$ 3,000,000 
$ 6,000,000 
$ (7,000,000)
Accumulated Other Comprehensive Income (Loss) (Summary of the Components of Accumulated Other Comprehensive Income (Loss) and Detail on Reclassifications) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent
 
$ 104 
$ (92)
Accumulated other comprehensive income (loss) in the equity section of the balance sheet included:
 
 
 
Accumulated Other Comprehensive Income (Loss), Beginning Balance
(314)
122 
214 
Other comprehensive income (loss)
351 
104 
(92)
Net Transfer To Parent Company
 
(6,247)
(7,420)
Defined benefit plans, Other comprehensive income (loss)
268 
 
 
Accumulated Other Comprehensive Income (Loss), Ending Balance
37 
(314)
122 
Accumulated Defined Benefit Plans Adjustment [Member]
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent
 
(93)
(29)
Accumulated other comprehensive income (loss) in the equity section of the balance sheet included:
 
 
 
Accumulated Other Comprehensive Income (Loss), Beginning Balance
(778)
(145)
(116)
Other comprehensive income (loss)
374 
 
 
Net Transfer To Parent Company
 
(540)
 
Defined benefit plans, Other comprehensive income (loss)
312 
 
 
Defined benefit plans, Net transfer from ConocoPhillips
62 
 
 
Accumulated Other Comprehensive Income (Loss), Ending Balance
(404)
(778)
(145)
Accumulated Other Comprehensive Income (Loss) [Member]
 
 
 
Accumulated other comprehensive income (loss) in the equity section of the balance sheet included:
 
 
 
Other comprehensive income (loss)
351 
104 
(92)
Net Transfer To Parent Company
 
(540)1
 
Accumulated Translation Adjustment [Member]
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent
 
196 
(64)
Accumulated other comprehensive income (loss) in the equity section of the balance sheet included:
 
 
 
Accumulated Other Comprehensive Income (Loss), Beginning Balance
466 
270 
334 
Other comprehensive income (loss)
(23)
 
 
Defined benefit plans, Other comprehensive income (loss)
(44)
 
 
Defined benefit plans, Net transfer from ConocoPhillips
21 
 
 
Accumulated Other Comprehensive Income (Loss), Ending Balance
443 
466 
270 
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent
 
1 
1 
Accumulated other comprehensive income (loss) in the equity section of the balance sheet included:
 
 
 
Accumulated Other Comprehensive Income (Loss), Beginning Balance
(2)
(3)
(4)
Other comprehensive income (loss)
0 
 
 
Defined benefit plans, Other comprehensive income (loss)
0 
 
 
Accumulated Other Comprehensive Income (Loss), Ending Balance
$ (2)
$ (2)
$ (3)
Cash Flow Information (Summary of Cash Flow Information) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Noncash Investing and Financing Activities
 
 
 
Capital Lease Obligations Incurred
$ 177 
 
 
Transfer of PP&E in accordance with the Separation and Distribution Agreement with ConocoPhillips
 
374 
 
Transfer of employee benefit liabilities in accordance with the Separation and Distribution Agreement with ConocoPhillips
 
1,234 
 
Increase in deferred taxes associated with the employee benefit liabilities transferred in accordance with the Separation and Distribution Agreement with ConocoPhillips
 
461 
 
Interest Paid [Abstract]
 
 
 
Interest Paid, Net
259 
176 
   
Income Taxes Paid
 
 
 
Income taxes
$ 1,021 1
$ 2,183 1
$ 197 1
Other Financial Information (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Interest and Debt Expense [Abstract]
 
 
 
Incurred, debt
$ 251 
$ 221 
$ 12 
Incurred, other
24 
25 
5 
Total incurred
275 
246 
17 
Capitalized
0 
0 
0 
Expensed
275 
246 
17 
Other Income [Abstract]
 
 
 
Interest income
20 
18 
33 
Other, net
65 1
117 1
12 1
Other income
85 
135 
45 
Research and Development Expense [Abstract]
 
 
 
Research and development expenditures
69 
70 
69 
Advertising expenses
68 
57 
63 
Foreign Currency Transaction Gain (Loss), by Segment [Line Items]
 
 
 
Foreign currency transaction (gains) losses, after-tax
(44)
(22)
(24)
Midstream [Member]
 
 
 
Foreign Currency Transaction Gain (Loss), by Segment [Line Items]
 
 
 
Foreign currency transaction (gains) losses, after-tax
0 
0 
0 
Chemicals [Member]
 
 
 
Foreign Currency Transaction Gain (Loss), by Segment [Line Items]
 
 
 
Foreign currency transaction (gains) losses, after-tax
0 
0 
0 
Refining [Member]
 
 
 
Foreign Currency Transaction Gain (Loss), by Segment [Line Items]
 
 
 
Foreign currency transaction (gains) losses, after-tax
(41)
(17)
(15)
Marketing And Specialties [Member]
 
 
 
Foreign Currency Transaction Gain (Loss), by Segment [Line Items]
 
 
 
Foreign currency transaction (gains) losses, after-tax
(5)
(5)
(9)
Corporate and Other [Member]
 
 
 
Interest and Debt Expense [Abstract]
 
 
 
Expensed
275 
246 
17 
Foreign Currency Transaction Gain (Loss), by Segment [Line Items]
 
 
 
Foreign currency transaction (gains) losses, after-tax
$ 2 
$ 0 
$ 0 
Other Financial Information (Details 1) (Rockies Express Pipeline Llc Rex [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Rockies Express Pipeline Llc Rex [Member]
 
Other Income
 
Contractual Payment from Co-Venturer
$ 37 
Related Party Transactions (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Related Party Transaction [Line Items]
 
 
 
Before-tax gain on sale to DCP Midstream
    1
    1
$ 156 1
Sales to ConocoPhillips while it was a related party
7,907 2
8,226 2
9,024 2
Purchases from ConocoPhillips while it was a related party
18,320 3
22,446 3
34,554 3
Net charges from ConocoPhillips while it was a related party
109 4
208 4
361 4
Net distributions to ConocoPhillips in 2012
0 
(5,255)
(7,471)
ConocoPhillips [Member]
 
 
 
Related Party Transaction [Line Items]
 
 
 
Sales to ConocoPhillips while it was a related party
 
381 
1,197 
Purchases from ConocoPhillips while it was a related party
 
5,328 
15,798 
Net charges from ConocoPhillips while it was a related party
 
70 
180 
DCP Midstream [Member] |
Seaway Products Pipeline Company [Member]
 
 
 
Related Party Transaction [Line Items]
 
 
 
Cash proceeds from sale of Seaway Products Pipeline Company to DCP Midstream
 
 
400 
Before-tax gain on sale to DCP Midstream
 
 
$ 156 
Phillips 66 Partners LP (Details) (USD $)
In Millions, except Share data, unless otherwise specified
1 Months Ended 1 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Jul. 27, 2013
Phillips 66 Partners LP [Member]
Jul. 27, 2013
Phillips 66 Partners LP [Member]
Dec. 31, 2013
Phillips 66 Partners LP [Member]
Jul. 27, 2013
Phillips 66 Partners LP [Member]
Common Units [Member]
Jul. 24, 2013
Phillips 66 Partners LP [Member]
Common Units [Member]
Dec. 31, 2013
Noncontrolling Interest [Member]
Phillips 66 Partners LP [Member]
Subsidiary or Equity Method Investee [Line Items]
 
 
 
 
 
 
 
 
 
 
Phillips 66 Partners common units issued in initial public offering
 
 
 
 
 
 
 
18,888,750 
 
 
Price of Phillips 66 Partners common units, price per unit
 
 
 
 
 
 
 
 
$ 23.00 
 
Phillips 66 Partners common unit over-allotment option exercised by underwriters, units
 
 
 
 
 
 
 
2,463,750 
 
 
Net proceeds received by Phillips 66 Partners from initial public offering sale of common units
 
 
 
 
 
 
 
$ 404 
 
 
Limited partnership interest in Phillips 66 Partners, percentage
 
 
 
 
71.70% 
 
 
 
 
 
General partnership interest in Phillips 66 Partners, percentage
 
 
 
 
2.00% 
 
 
 
 
 
Limited partner interest in Phillips 66 Partners owned by public, percentage
 
 
 
 
 
26.30% 
 
 
 
 
Public's ownership interest in Phillips 66 Partners reflected as a noncontrolling interest
442 
31 
 
 
 
 
 
 
 
409 
Phillips 66 Partners' cash and cash equivalents
$ 5,400 
$ 3,474 
$ 0 
$ 0 
 
 
$ 425 
 
 
 
Condensed Consolidating Financial Information (Income Statement) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Revenues and Other Income
 
 
 
Sales and other operating revenues
$ 171,596 1 2
$ 179,290 1 2
$ 195,931 1 2
Equity in earnings of affiliates
3,073 
3,134 
2,843 
Net gain on dispositions
55 
193 
1,638 
Other income (loss)
85 
135 
45 
Intercompany revenues
0 
0 
0 
Total Revenues and Other Income
174,809 
182,752 
200,457 
Costs and Expenses
 
 
 
Purchased crude oil and products
148,245 
154,413 
172,768 
Operating expenses
4,206 
4,033 
4,071 
Selling, general and administrative expenses
1,478 
1,703 
1,394 
Depreciation and amortization
947 
906 
902 
Impairments
29 
1,158 
472 
Taxes other than income taxes
14,119 2
13,740 2
14,287 2
Accretion on discounted liabilities
24 
25 
21 
Interest and debt expense
275 
246 
17 
Foreign currency transaction (gains) losses
(40)
(28)
(34)
Total Costs and Expenses
169,283 
176,196 
193,898 
Income (loss) before income taxes
5,526 
6,556 
6,559 
Provision (benefit) for income taxes
1,844 
2,473 
1,822 
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest
3,682 
4,083 
4,737 
Less: net income attributable to noncontrolling interests
17 
7 
5 
Net income attributable to Phillips 66
3,726 
4,124 
4,775 
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest
4,094 
4,235 
4,688 
Income from discontinued operations
61 3
48 3
43 3
Income from continuing operations before taxes
3,743 
4,131 
4,780 
Consolidating Adjustments [Member]
 
 
 
Revenues and Other Income
 
 
 
Sales and other operating revenues
0 
0 
0 
Equity in earnings of affiliates
(5,064)
(4,864)
(5,490)
Net gain on dispositions
0 
0 
0 
Other income (loss)
0 
0 
0 
Intercompany revenues
(21,752)
(26,086)
(32,136)
Total Revenues and Other Income
(26,816)
(30,950)
(37,626)
Costs and Expenses
 
 
 
Purchased crude oil and products
(21,281)
(25,989)
(32,092)
Operating expenses
(26)
(56)
(44)
Selling, general and administrative expenses
(93)
(41)
0 
Depreciation and amortization
   
0 
0 
Impairments
   
0 
0 
Taxes other than income taxes
(1)
(1)
0 
Accretion on discounted liabilities
0 
0 
0 
Interest and debt expense
(351)
1 
0 
Foreign currency transaction (gains) losses
0 
0 
0 
Total Costs and Expenses
(21,752)
(26,086)
(32,136)
Income (loss) before income taxes
(5,064)
(4,864)
(5,490)
Provision (benefit) for income taxes
0 
0 
0 
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest
(5,064)
(4,864)
(5,490)
Less: net income attributable to noncontrolling interests
0 
0 
0 
Net income attributable to Phillips 66
(5,064)
(4,864)
(5,490)
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest
(5,438)
(5,004)
(5,425)
Income from discontinued operations
0 
   
   
Income from continuing operations before taxes
(5,064)
(4,864)
(5,490)
Phillips 66 [Member]
 
 
 
Revenues and Other Income
 
 
 
Sales and other operating revenues
0 
0 
0 
Equity in earnings of affiliates
3,905 
4,284 
4,775 
Net gain on dispositions
0 
0 
0 
Other income (loss)
(3)
2 
0 
Intercompany revenues
0 
1 
0 
Total Revenues and Other Income
3,902 
4,287 
4,775 
Costs and Expenses
 
 
 
Purchased crude oil and products
0 
0 
0 
Operating expenses
0 
0 
0 
Selling, general and administrative expenses
6 
4 
0 
Depreciation and amortization
   
0 
0 
Impairments
0 
0 
0 
Taxes other than income taxes
0 
0 
0 
Accretion on discounted liabilities
0 
0 
0 
Interest and debt expense
266 
212 
0 
Foreign currency transaction (gains) losses
0 
0 
0 
Total Costs and Expenses
272 
216 
0 
Income (loss) before income taxes
3,630 
4,071 
4,775 
Provision (benefit) for income taxes
(96)
(53)
0 
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest
3,726 
4,124 
4,775 
Less: net income attributable to noncontrolling interests
0 
0 
0 
Net income attributable to Phillips 66
3,726 
4,124 
4,775 
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest
4,077 
4,228 
4,683 
Income from discontinued operations
0 
   
   
Income from continuing operations before taxes
3,726 
4,124 
4,775 
Phillips 66 Company [Member]
 
 
 
Revenues and Other Income
 
 
 
Sales and other operating revenues
113,499 
117,574 
131,761 
Equity in earnings of affiliates
3,723 
3,269 
2,835 
Net gain on dispositions
50 
192 
1,867 
Other income (loss)
53 
(15)
10 
Intercompany revenues
1,436 
2,739 
4,887 
Total Revenues and Other Income
118,761 
123,759 
141,360 
Costs and Expenses
 
 
 
Purchased crude oil and products
102,781 
106,687 
124,772 
Operating expenses
3,442 
3,329 
3,278 
Selling, general and administrative expenses
1,024 
1,312 
995 
Depreciation and amortization
730 
668 
655 
Impairments
   
71 
468 
Taxes other than income taxes
5,148 
5,155 
4,801 
Accretion on discounted liabilities
19 
18 
13 
Interest and debt expense
13 
29 
16 
Foreign currency transaction (gains) losses
0 
0 
(1)
Total Costs and Expenses
113,157 
117,269 
134,997 
Income (loss) before income taxes
5,604 
6,490 
6,363 
Provision (benefit) for income taxes
1,699 
2,206 
1,588 
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest
3,905 
4,284 
4,775 
Less: net income attributable to noncontrolling interests
0 
0 
0 
Net income attributable to Phillips 66
3,905 
4,284 
4,775 
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest
4,256 
4,388 
4,683 
Income from discontinued operations
0 
   
   
Income from continuing operations before taxes
3,905 
4,284 
4,775 
All Other Subsidiaries [Member]
 
 
 
Revenues and Other Income
 
 
 
Sales and other operating revenues
58,097 
61,716 
64,170 
Equity in earnings of affiliates
509 
445 
723 
Net gain on dispositions
5 
1 
(229)
Other income (loss)
35 
148 
35 
Intercompany revenues
20,316 
23,346 
27,249 
Total Revenues and Other Income
78,962 
85,656 
91,948 
Costs and Expenses
 
 
 
Purchased crude oil and products
66,745 
73,715 
80,088 
Operating expenses
790 
760 
837 
Selling, general and administrative expenses
541 
428 
399 
Depreciation and amortization
217 
238 
247 
Impairments
29 
1,087 
4 
Taxes other than income taxes
8,972 
8,586 
9,486 
Accretion on discounted liabilities
5 
7 
8 
Interest and debt expense
347 
4 
1 
Foreign currency transaction (gains) losses
(40)
(28)
(33)
Total Costs and Expenses
77,606 
84,797 
91,037 
Income (loss) before income taxes
1,356 
859 
911 
Provision (benefit) for income taxes
241 
320 
234 
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest
1,115 
539 
677 
Less: net income attributable to noncontrolling interests
17 
7 
5 
Net income attributable to Phillips 66
1,159 
580 
715 
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest
1,199 
623 
747 
Income from discontinued operations
61 
48 
43 
Income from continuing operations before taxes
$ 1,176 
$ 587 
$ 720 
Condensed Consolidating Financial Information (Balance Sheet) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Assets
 
 
 
 
Cash and cash equivalents
$ 5,400 
$ 3,474 
$ 0 
$ 0 
Accounts and notes receivable
9,632 
10,403 
 
 
Inventories
3,354 
3,430 
 
 
Prepaid expenses and other current assets
851 
655 
 
 
Total Current Assets
19,237 
17,962 
 
 
Investments and long-term receivables
11,220 
10,471 
 
 
Net properties, plants and equipment
15,398 1
15,407 1
 
 
Goodwill
3,096 
3,344 
3,332 
 
Intangibles
698 
724 
 
 
Other assets
149 
165 
 
 
Total Assets
49,798 
48,073 
43,211 
 
Liabilities and Equity
 
 
 
 
Accounts payable
11,090 
10,710 
 
 
Short-term debt
24 
13 
 
 
Accrued income and other taxes
872 
901 
 
 
Employee benefit obligations
476 
441 
 
 
Other accruals
469 
417 
 
 
Total Current Liabilities
12,931 
12,482 
 
 
Long-term debt
6,131 
6,961 
 
 
Asset retirement obligations and accrued environmental costs
700 
740 
 
 
Deferred income taxes
6,125 
5,444 
 
 
Employee benefit obligations
921 
1,325 
 
 
Other liabilities and deferred credits
598 
315 
 
 
Total Liabilities
27,406 
27,267 
 
 
Common stock
16,291 
 
 
 
Retained earnings
5,622 
2,713 
 
 
Net ConocoPhillips investments
 
18,376 
 
 
Accumulated other comprehensive income (loss)
37 
(314)
122 
214 
Noncontrolling interests
442 
31 
 
 
Total Liabilities and Equity
49,798 
48,073 
 
 
Consolidating Adjustments [Member]
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
0 
0 
0 
0 
Accounts and notes receivable
(684)
(989)
 
 
Inventories
0 
0 
 
 
Prepaid expenses and other current assets
0 
0 
 
 
Total Current Assets
(684)
(989)
 
 
Investments and long-term receivables
(56,868)
(45,635)
 
 
Net properties, plants and equipment
0 
0 
 
 
Goodwill
0 
0 
 
 
Intangibles
0 
0 
 
 
Other assets
(4)
(36)
 
 
Total Assets
(57,556)
(46,660)
 
 
Liabilities and Equity
 
 
 
 
Accounts payable
(684)
(989)
 
 
Short-term debt
0 
0 
 
 
Accrued income and other taxes
0 
0 
 
 
Employee benefit obligations
0 
0 
 
 
Other accruals
0 
0 
 
 
Total Current Liabilities
(684)
(989)
 
 
Long-term debt
0 
0 
 
 
Asset retirement obligations and accrued environmental costs
0 
0 
 
 
Deferred income taxes
(4)
(36)
 
 
Employee benefit obligations
0 
0 
 
 
Other liabilities and deferred credits
(14,048)
(8,321)
 
 
Total Liabilities
(14,736)
(9,346)
 
 
Common stock
(34,240)
 
 
 
Retained earnings
(8,224)
(3,232)
 
 
Net ConocoPhillips investments
 
(34,100)
 
 
Accumulated other comprehensive income (loss)
(356)
18 
 
 
Noncontrolling interests
0 
0 
 
 
Total Liabilities and Equity
(57,556)
(46,660)
 
 
Phillips 66 [Member]
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
0 
0 
0 
0 
Accounts and notes receivable
9 
47 
 
 
Inventories
0 
0 
 
 
Prepaid expenses and other current assets
10 
11 
 
 
Total Current Assets
19 
58 
 
 
Investments and long-term receivables
33,178 
28,934 
 
 
Net properties, plants and equipment
0 
0 
 
 
Goodwill
0 
0 
 
 
Intangibles
0 
0 
 
 
Other assets
40 
78 
 
 
Total Assets
33,237 
29,070 
 
 
Liabilities and Equity
 
 
 
 
Accounts payable
1 
17 
 
 
Short-term debt
0 
0 
 
 
Accrued income and other taxes
0 
0 
 
 
Employee benefit obligations
0 
0 
 
 
Other accruals
49 
50 
 
 
Total Current Liabilities
50 
67 
 
 
Long-term debt
5,796 
6,795 
 
 
Asset retirement obligations and accrued environmental costs
0 
0 
 
 
Deferred income taxes
0 
0 
 
 
Employee benefit obligations
0 
0 
 
 
Other liabilities and deferred credits
5,441 
1,433 
 
 
Total Liabilities
11,287 
8,295 
 
 
Common stock
16,291 
 
 
 
Retained earnings
5,622 
2,713 
 
 
Net ConocoPhillips investments
 
18,376 
 
 
Accumulated other comprehensive income (loss)
37 
(314)
 
 
Noncontrolling interests
0 
0 
 
 
Total Liabilities and Equity
33,237 
29,070 
 
 
Phillips 66 Company [Member]
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
2,162 
2,410 
0 
0 
Accounts and notes receivable
2,176 
2,889 
 
 
Inventories
1,962 
1,938 
 
 
Prepaid expenses and other current assets
368 
403 
 
 
Total Current Assets
6,668 
7,640 
 
 
Investments and long-term receivables
27,414 
20,937 
 
 
Net properties, plants and equipment
12,031 
11,714 
 
 
Goodwill
3,094 
3,344 
 
 
Intangibles
694 
710 
 
 
Other assets
112 
114 
 
 
Total Assets
50,013 
44,459 
 
 
Liabilities and Equity
 
 
 
 
Accounts payable
7,508 
7,014 
 
 
Short-term debt
18 
13 
 
 
Accrued income and other taxes
250 
245 
 
 
Employee benefit obligations
422 
391 
 
 
Other accruals
178 
279 
 
 
Total Current Liabilities
8,376 
7,942 
 
 
Long-term debt
152 
165 
 
 
Asset retirement obligations and accrued environmental costs
527 
563 
 
 
Deferred income taxes
5,045 
4,478 
 
 
Employee benefit obligations
724 
1,094 
 
 
Other liabilities and deferred credits
2,153 
1,435 
 
 
Total Liabilities
16,977 
15,677 
 
 
Common stock
25,938 
 
 
 
Retained earnings
7,061 
3,145 
 
 
Net ConocoPhillips investments
 
25,951 
 
 
Accumulated other comprehensive income (loss)
37 
(314)
 
 
Noncontrolling interests
0 
0 
 
 
Total Liabilities and Equity
50,013 
44,459 
 
 
All Other Subsidiaries [Member]
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
3,238 
1,064 
0 
0 
Accounts and notes receivable
8,131 
8,456 
 
 
Inventories
1,392 
1,492 
 
 
Prepaid expenses and other current assets
473 
241 
 
 
Total Current Assets
13,234 
11,253 
 
 
Investments and long-term receivables
7,496 
6,235 
 
 
Net properties, plants and equipment
3,367 
3,693 
 
 
Goodwill
2 
0 
 
 
Intangibles
4 
14 
 
 
Other assets
1 
9 
 
 
Total Assets
24,104 
21,204 
 
 
Liabilities and Equity
 
 
 
 
Accounts payable
4,265 
4,668 
 
 
Short-term debt
6 
0 
 
 
Accrued income and other taxes
622 
656 
 
 
Employee benefit obligations
54 
50 
 
 
Other accruals
242 
88 
 
 
Total Current Liabilities
5,189 
5,462 
 
 
Long-term debt
183 
1 
 
 
Asset retirement obligations and accrued environmental costs
173 
177 
 
 
Deferred income taxes
1,084 
1,002 
 
 
Employee benefit obligations
197 
231 
 
 
Other liabilities and deferred credits
7,052 
5,768 
 
 
Total Liabilities
13,878 
12,641 
 
 
Common stock
8,302 
 
 
 
Retained earnings
1,163 
87 
 
 
Net ConocoPhillips investments
 
8,149 
 
 
Accumulated other comprehensive income (loss)
319 
296 
 
 
Noncontrolling interests
442 
31 
 
 
Total Liabilities and Equity
$ 24,104 
$ 21,204 
 
 
Condensed Consolidating Financial Information (Cash Flow) (Details) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract]
 
 
 
Net Cash Provided by (Used in) Operating Activities, Continuing Operations
$ 5,942,000,000 
$ 4,259,000,000 
$ 4,953,000,000 
Net cash provided by (used in) discontinued operations
85,000,000 
37,000,000 
53,000,000 
Net Cash Provided by (Used in) Operating Activities
6,027,000,000 
4,296,000,000 
5,006,000,000 
Net Cash Provided by (Used in) Investing Activities, Continuing Operations [Abstract]
 
 
 
Capital expenditures and investments
(1,779,000,000)
(1,701,000,000)
(1,016,000,000)
Proceeds from asset dispositions
1,214,000,000 
286,000,000 
2,627,000,000 
Proceeds from Collection of Long-term Loans to Related Parties
0 
0 
 
Advances/loans—related parties
(65,000,000)
(100,000,000)
0 
Collection of advances/loans—related parties
165,000,000 
0 
550,000,000 
Other
48,000,000 
0 
337,000,000 
Net Cash Provided by (Used in) Financing Activities
(417,000,000)
(1,515,000,000)
2,498,000,000 
Net cash used in discontinued operations
(27,000,000)
(20,000,000)
(6,000,000)
Net Cash Provided by (Used in) Investing Activities
(444,000,000)
(1,535,000,000)
2,492,000,000 
Net Cash Provided by (Used in) Financing Activities, Continuing Operations [Abstract]
 
 
 
Repayment of debt
(1,020,000,000)
(1,210,000,000)
(26,000,000)
Issuance of common stock
6,000,000 
47,000,000 
0 
Issuance of common stock
6,000,000 
 
 
Repurchase of common stock
(2,246,000,000)
(356,000,000)
0 
Dividends paid on common stock
(807,000,000)
(282,000,000)
0 
Distributions to noncontrolling interests
(10,000,000)
(5,000,000)
(1,000,000)
Net proceeds from issuance of Phillips 66 Partners LP common units
404,000,000 
0 
0 
Contributions from (distributions to) ConocoPhillips
0 
(5,255,000,000)
(7,471,000,000)
Issuance of debt
0 
7,794,000,000 
0 
Other
(6,000,000)
(34,000,000)
0 
Net Cash Provided by (Used in) Financing Activities, Continuing Operations
(3,679,000,000)
699,000,000 
(7,498,000,000)
Net cash provided by (used in) discontinued operations
0 
0 
0 
Net Cash Provided by (Used in) Financing Activities
(3,679,000,000)
699,000,000 
(7,498,000,000)
Effect of Exchange Rate Changes on Cash and Cash Equivalents
22,000,000 
14,000,000 
0 
Net Change in Cash and Cash Equivalents
1,926,000,000 
3,474,000,000 
0 
Cash and cash equivalents at beginning of year
3,474,000,000 
0 
0 
Cash and Cash Equivalents at End of Year
5,400,000,000 
3,474,000,000 
0 
Consolidating Adjustments [Member]
 
 
 
Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract]
 
 
 
Net Cash Provided by (Used in) Operating Activities, Continuing Operations
(80,000,000)
0 
0 
Net cash provided by (used in) discontinued operations
0 
0 
0 
Net Cash Provided by (Used in) Operating Activities
(80,000,000)
0 
0 
Net Cash Provided by (Used in) Investing Activities, Continuing Operations [Abstract]
 
 
 
Capital expenditures and investments
19,000,000 
10,000,000 
0 
Proceeds from asset dispositions
0 
0 
0 
Proceeds from Collection of Long-term Loans to Related Parties
0 
0 
 
Advances/loans—related parties
0 
0 
 
Collection of advances/loans—related parties
0 
(7,000,000)
0 
Other
0 
0 
0 
Net Cash Provided by (Used in) Financing Activities
19,000,000 
3,000,000 
   
Net cash used in discontinued operations
   
   
   
Net Cash Provided by (Used in) Investing Activities
19,000,000 
3,000,000 
0 
Net Cash Provided by (Used in) Financing Activities, Continuing Operations [Abstract]
 
 
 
Repayment of debt
   
7,000,000 
0 
Issuance of common stock
 
0 
 
Issuance of common stock
   
 
 
Repurchase of common stock
   
0 
 
Dividends paid on common stock
72,000,000 
0 
 
Partners' Capital Account, Distributions
(8,000,000)
 
 
Distributions to noncontrolling interests
   
0 
0 
Net proceeds from issuance of Phillips 66 Partners LP common units
   
 
 
Contributions from (distributions to) ConocoPhillips
 
0 
0 
Issuance of debt
 
0 
 
Other
(19,000,000)
(10,000,000)
0 
Net Cash Provided by (Used in) Financing Activities, Continuing Operations
61,000,000 
(3,000,000)
0 
Net cash provided by (used in) discontinued operations
0 
0 
0 
Net Cash Provided by (Used in) Financing Activities
61,000,000 
(3,000,000)
0 
Effect of Exchange Rate Changes on Cash and Cash Equivalents
0 
0 
 
Net Change in Cash and Cash Equivalents
0 
0 
0 
Cash and cash equivalents at beginning of year
0 
0 
0 
Cash and Cash Equivalents at End of Year
0 
0 
0 
Phillips 66 [Member]
 
 
 
Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract]
 
 
 
Net Cash Provided by (Used in) Operating Activities, Continuing Operations
5,000,000 
(42,000,000)
0 
Net cash provided by (used in) discontinued operations
0 
0 
0 
Net Cash Provided by (Used in) Operating Activities
5,000,000 
(42,000,000)
0 
Net Cash Provided by (Used in) Investing Activities, Continuing Operations [Abstract]
 
 
 
Capital expenditures and investments
0 
0 
0 
Proceeds from asset dispositions
0 
0 
0 
Proceeds from Collection of Long-term Loans to Related Parties
4,055,000,000 
1,376,000,000 
 
Advances/loans—related parties
0 
0 
 
Collection of advances/loans—related parties
0 
0 
0 
Other
0 
0 
0 
Net Cash Provided by (Used in) Financing Activities
4,055,000,000 
1,376,000,000 
   
Net cash used in discontinued operations
   
   
   
Net Cash Provided by (Used in) Investing Activities
4,055,000,000 
1,376,000,000 
0 
Net Cash Provided by (Used in) Financing Activities, Continuing Operations [Abstract]
 
 
 
Repayment of debt
(1,000,000,000)
(1,000,000,000)
0 
Issuance of common stock
 
47,000,000 
 
Issuance of common stock
6,000,000 
 
 
Repurchase of common stock
(2,246,000,000)
(356,000,000)
 
Dividends paid on common stock
(807,000,000)
(282,000,000)
 
Distributions to noncontrolling interests
   
0 
0 
Net proceeds from issuance of Phillips 66 Partners LP common units
   
 
 
Contributions from (distributions to) ConocoPhillips
 
(7,469,000,000)
0 
Issuance of debt
 
7,794,000,000 
 
Other
(13,000,000)
(68,000,000)
0 
Net Cash Provided by (Used in) Financing Activities, Continuing Operations
(4,060,000,000)
(1,334,000,000)
0 
Net cash provided by (used in) discontinued operations
0 
0 
0 
Net Cash Provided by (Used in) Financing Activities
(4,060,000,000)
(1,334,000,000)
0 
Effect of Exchange Rate Changes on Cash and Cash Equivalents
0 
0 
 
Net Change in Cash and Cash Equivalents
0 
0 
0 
Cash and cash equivalents at beginning of year
0 
0 
0 
Cash and Cash Equivalents at End of Year
0 
0 
0 
Phillips 66 Company [Member]
 
 
 
Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract]
 
 
 
Net Cash Provided by (Used in) Operating Activities, Continuing Operations
4,972,000,000 
7,429,000,000 
3,038,000,000 
Net cash provided by (used in) discontinued operations
0 
0 
0 
Net Cash Provided by (Used in) Operating Activities
4,972,000,000 
7,429,000,000 
3,038,000,000 
Net Cash Provided by (Used in) Investing Activities, Continuing Operations [Abstract]
 
 
 
Capital expenditures and investments
(1,108,000,000)
(861,000,000)
(717,000,000)
Proceeds from asset dispositions
63,000,000 
240,000,000 
2,517,000,000 
Proceeds from Collection of Long-term Loans to Related Parties
(4,206,000,000)
(4,334,000,000)
 
Advances/loans—related parties
0 
0 
 
Collection of advances/loans—related parties
0 
0 
550,000,000 
Other
42,000,000 
0 
51,000,000 
Net Cash Provided by (Used in) Financing Activities
(5,209,000,000)
(4,955,000,000)
2,401,000,000 
Net cash used in discontinued operations
   
   
   
Net Cash Provided by (Used in) Investing Activities
(5,209,000,000)
(4,955,000,000)
2,401,000,000 
Net Cash Provided by (Used in) Financing Activities, Continuing Operations [Abstract]
 
 
 
Repayment of debt
(18,000,000)
(208,000,000)
(18,000,000)
Issuance of common stock
 
0 
 
Issuance of common stock
   
 
 
Repurchase of common stock
   
0 
 
Dividends paid on common stock
   
0 
 
Distributions to noncontrolling interests
   
0 
0 
Net proceeds from issuance of Phillips 66 Partners LP common units
   
 
 
Contributions from (distributions to) ConocoPhillips
 
110,000,000 
(5,421,000,000)
Issuance of debt
 
0 
 
Other
7,000,000 
34,000,000 
0 
Net Cash Provided by (Used in) Financing Activities, Continuing Operations
(11,000,000)
(64,000,000)
(5,439,000,000)
Net cash provided by (used in) discontinued operations
0 
0 
0 
Net Cash Provided by (Used in) Financing Activities
(11,000,000)
(64,000,000)
(5,439,000,000)
Effect of Exchange Rate Changes on Cash and Cash Equivalents
0 
0 
 
Net Change in Cash and Cash Equivalents
(248,000,000)
2,410,000,000 
0 
Cash and cash equivalents at beginning of year
2,410,000,000 
0 
0 
Cash and Cash Equivalents at End of Year
2,162,000,000 
2,410,000,000 
0 
All Other Subsidiaries [Member]
 
 
 
Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract]
 
 
 
Net Cash Provided by (Used in) Operating Activities, Continuing Operations
1,045,000,000 
(3,128,000,000)
1,915,000,000 
Net cash provided by (used in) discontinued operations
85,000,000 
37,000,000 
53,000,000 
Net Cash Provided by (Used in) Operating Activities
1,130,000,000 
(3,091,000,000)
1,968,000,000 
Net Cash Provided by (Used in) Investing Activities, Continuing Operations [Abstract]
 
 
 
Capital expenditures and investments
(690,000,000)
(850,000,000)
(299,000,000)
Proceeds from asset dispositions
1,151,000,000 
46,000,000 
110,000,000 
Proceeds from Collection of Long-term Loans to Related Parties
151,000,000 
2,958,000,000 
 
Advances/loans—related parties
(65,000,000)
(100,000,000)
 
Collection of advances/loans—related parties
165,000,000 
7,000,000 
0 
Other
6,000,000 
0 
286,000,000 
Net Cash Provided by (Used in) Financing Activities
718,000,000 
2,061,000,000 
97,000,000 
Net cash used in discontinued operations
(27,000,000)
(20,000,000)
(6,000,000)
Net Cash Provided by (Used in) Investing Activities
691,000,000 
2,041,000,000 
91,000,000 
Net Cash Provided by (Used in) Financing Activities, Continuing Operations [Abstract]
 
 
 
Repayment of debt
(2,000,000)
(9,000,000)
(8,000,000)
Issuance of common stock
 
0 
 
Issuance of common stock
   
 
 
Repurchase of common stock
   
0 
 
Dividends paid on common stock
(72,000,000)
0 
 
Distributions to noncontrolling interests
(10,000,000)
(5,000,000)
(1,000,000)
Net proceeds from issuance of Phillips 66 Partners LP common units
404,000,000 
 
 
Contributions from (distributions to) ConocoPhillips
 
2,104,000,000 
(2,050,000,000)
Issuance of debt
 
0 
 
Other
19,000,000 
10,000,000 
0 
Net Cash Provided by (Used in) Financing Activities, Continuing Operations
331,000,000 
2,100,000,000 
(2,059,000,000)
Net cash provided by (used in) discontinued operations
0 
0 
0 
Net Cash Provided by (Used in) Financing Activities
331,000,000 
2,100,000,000 
(2,059,000,000)
Effect of Exchange Rate Changes on Cash and Cash Equivalents
22,000,000 
14,000,000 
 
Net Change in Cash and Cash Equivalents
2,174,000,000 
1,064,000,000 
0 
Cash and cash equivalents at beginning of year
1,064,000,000 
0 
0 
Cash and Cash Equivalents at End of Year
3,238,000,000 
1,064,000,000 
0 
All Other Subsidiaries [Member] |
Consolidating Adjustments [Member]
 
 
 
Net Cash Provided by (Used in) Financing Activities, Continuing Operations [Abstract]
 
 
 
Partners' Capital Account, Distributions
$ (8,000,000)
 
 
Condensed Consolidating Financial Information (Narrative) (Details) (USD $)
In Billions, unless otherwise specified
Dec. 31, 2013
Condensed Consolidating Financial Information [Abstract]
 
Debt at face value
$ 5.8 
Percentage of ownership in subsidiary
100.00% 
Schedule II - Valuation and Qualifying Accounts (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Allowance for doubtful accounts and notes receivable [Member]
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Balance at beginning of period
$ 50 
$ 13 
$ 7 
Charged to Expense
10 
36 
7 
Other
0 1
0 1
0 1
Deductions
(13)2
1 2
(1)2
Balance at end of period
47 
50 
13 
Deferred tax asset valuation allowance [Member]
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Balance at beginning of period
329 
210 
165 
Charged to Expense
20 
61 
54 
Other
(222)1
54 1
(9)1
Deductions
0 
4 
0 
Balance at end of period
$ 127 
$ 329 
$ 210