PHILLIPS 66, 10-Q filed on 10/30/2015
Quarterly Report
Document and Entity Information
9 Months Ended
Sep. 30, 2015
Document and Entity Information [Abstract]
 
Entity Registrant Name
Phillips 66 
Entity Central Index Key
0001534701 
Trading Symbol
PSX 
Current Fiscal Year End Date
--12-31 
Entity Filer Category
Large Accelerated Filer 
Document Type
10-Q 
Document Period End Date
Sep. 30, 2015 
Document Fiscal Year Focus
2015 
Document Fiscal Period Focus
Q3 
Amendment Flag
false 
Entity Common Stock, Shares Outstanding
533,440,280 
Consolidated Statement of Income (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Sales and other operating revenues
 
 
 
 
Sales and other operating revenues
$ 25,792 1
$ 40,417 1
$ 77,082 1
$ 126,249 1
Equity in earnings of affiliates
583 
511 
1,446 
2,053 
Net gain on dispositions
22 
109 
283 
125 
Other income
20 
11 
109 
59 
Total Revenues and Other Income
26,417 
41,048 
78,920 
128,486 
Costs and Expenses
 
 
 
 
Purchased crude oil and products
18,580 
33,602 
57,528 
107,299 
Operating expenses
1,083 
1,104 
3,220 
3,271 
Selling, general and administrative expenses
437 
401 
1,237 
1,215 
Depreciation and amortization
270 
249 
797 
722 
Impairments
12 
16 
Taxes other than income taxes
3,610 1
3,874 1
10,621 1
11,344 1
Accretion on discounted liabilities
16 
18 
Interest and debt expense
71 
60 
236 
194 
Foreign currency transaction losses
13 
50 
23 
Total Costs and Expenses
24,058 
39,321 
73,708 
124,102 
Income from continuing operations before income taxes
2,359 
1,727 
5,212 
4,384 
Provision for income taxes
767 
538 
1,598 
1,451 
Income From Continuing Operations
1,592 
1,189 
3,614 
2,933 
Income from discontinued operations
 
 
 
706 2 3
Net Income
1,592 
1,189 
3,614 
3,639 
Less: net income attributable to noncontrolling interests
14 
37 
24 
Net Income Attributable to Phillips 66
1,578 
1,180 
3,577 
3,615 
Amounts Attributable to Phillips 66 Common Stockholders:
 
 
 
 
Income from continuing operations
1,578 
1,180 
3,577 
2,909 
Income from discontinued operations
   
 
 
$ 706 
Basic
 
 
 
 
Continuing operations
$ 2.92 
$ 2.11 
$ 6.56 
$ 5.10 
Discontinued operations
 
 
 
$ 1.24 
Net Income Attributable to Phillips 66 Per Share of Common Stock
$ 2.92 
$ 2.11 
$ 6.56 
$ 6.34 
Diluted
 
 
 
 
Continuing operations
$ 2.90 
$ 2.09 
$ 6.52 
$ 5.05 
Discontinued operations
 
 
 
$ 1.23 
Net Income Attributable to Phillips 66 Per Share of Common Stock
$ 2.90 
$ 2.09 
$ 6.52 
$ 6.28 
Dividends Paid Per Share of Common Stock (dollars)
$ 0.56 
$ 0.5 
$ 1.62 
$ 1.39 
Average Common Shares Outstanding (in thousands)
 
 
 
 
Basic
540,357 
559,492 
544,362 
569,692 
Diluted
544,696 
564,958 
549,034 
575,589 
Consolidated Statement of Income (Parenthetical) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Income Statement [Abstract]
 
 
 
 
Includes excise taxes on petroleum products sales
$ 3,513 
$ 3,781 
$ 10,338 
$ 11,046 
Net of provision for income taxes on discontinued operations
 
 
 
$ 5 
Consolidated Statement of Comprehensive Income (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
 
 
 
 
Net Income
$ 1,592 
$ 1,189 
$ 3,614 
$ 3,639 
Actuarial gain (loss):
 
 
 
 
Actuarial loss arising during the period
(116)
 
(116)
 
Amortization to net income of net actuarial loss and settlements
98 
15 
147 
41 
Plans sponsored by equity affiliates
14 
10 
Income taxes on defined benefit plans
(5)
(14)
(16)
Defined benefit plans, net of tax
(8)
14 
31 
35 
Foreign currency translation adjustments
(106)
(233)
(91)
(106)
Income taxes on foreign currency translation adjustments
(5)
Foreign currency translation adjustments, net of tax
(111)
(225)
(88)
(97)
Other Comprehensive Loss, Net of Tax
(119)
(211)
(57)
(62)
Comprehensive Income
1,473 
978 
3,557 
3,577 
Less: comprehensive income attributable to noncontrolling interests
14 
37 
24 
Comprehensive Income Attributable to Phillips 66
$ 1,459 
$ 969 
$ 3,520 
$ 3,553 
Consolidated Balance Sheet (USD $)
In Millions, unless otherwise specified
Sep. 30, 2015
Dec. 31, 2014
Assets
 
 
Cash and cash equivalents
$ 4,822 
$ 5,207 
Accounts and notes receivable (net of allowances of $68 million in 2015 and $71 million in 2014)
4,315 
6,306 
Accounts and notes receivable - related parties
883 
949 
Inventories
4,388 
3,397 
Prepaid expenses and other current assets
641 
837 
Total Current Assets
15,049 
16,696 
Investments and long-term receivables
10,601 
10,189 
Net properties, plants and equipment
19,257 
17,346 
Goodwill
3,275 
3,274 
Intangibles
879 
900 
Other assets
354 
336 
Total Assets
49,415 
48,741 
Liabilities
 
 
Accounts payable
6,151 
7,488 
Accounts payable - related parties
711 
576 
Short-term debt
43 
842 
Accrued income and other taxes
980 
878 
Employee benefit obligations
458 
462 
Other accruals
532 
848 
Total Current Liabilities
8,875 
11,094 
Long-term debt
8,908 
7,842 
Asset retirement obligations and accrued environmental costs
681 
683 
Deferred income taxes
5,401 
5,491 
Employee benefit obligations
1,249 
1,305 
Other liabilities and deferred credits
269 
289 
Total Liabilities
25,383 
26,704 
Equity
 
 
Common stock (2,500,000,000 shares authorized at $.01 par value) Issued (2015—638,634,255 shares; 2014—637,031,760 shares) Par Value
Capital in excess of par
19,116 
19,040 
Treasury stock (at cost: 2015—105,193,975 shares; 2014—90,649,984 shares)
(7,340)
(6,234)
Retained earnings
12,000 
9,309 
Accumulated other comprehensive loss
(588)
(531)
Total Stockholders' Equity
23,194 
21,590 
Noncontrolling interests
838 
447 
Total Equity
24,032 
22,037 
Total Liabilities and Equity
$ 49,415 
$ 48,741 
Consolidated Balance Sheet (Parenthetical) (USD $)
In Millions, except Share data, unless otherwise specified
Sep. 30, 2015
Dec. 31, 2014
Accounts and notes receivable - allowance
$ 68 
$ 71 
Common stock authorized, shares
2,500,000,000 
2,500,000,000 
Common stock, par value
$ 0.01 
$ 0.01 
Common stock issued, shares
638,634,255 
637,031,760 
Treasury stock, shares
105,193,975 
90,649,984 
Consolidated Statement of Cash Flows (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract]
 
 
Net income
$ 3,614 
$ 3,639 
Adjustments to reconcile net income to net cash provided by operating activities
 
 
Depreciation and amortization
797 
722 
Impairments
16 
Accretion on discounted liabilities
16 
18 
Deferred taxes
(125)
(527)
Undistributed equity earnings
17 
360 
Net gain on dispositions
(283)
(125)
Income from discontinued operations
 
(706)1 2
Other
70 
70 
Working capital adjustments
 
 
Decrease (increase) in accounts and notes receivable
2,158 
810 
Decrease (increase) in inventories
(1,047)
(2,336)
Decrease (increase) in prepaid expenses and other current assets
165 
(95)
Increase (decrease) in accounts payable
(1,136)
299 
Increase (decrease) in taxes and other accruals
(33)
510 
Net cash provided by continuing operating activities
4,216 
2,655 
Net cash provided by discontinued operations
 
Net Cash Provided by Operating Activities
4,216 
2,657 
Cash Flows From Investing Activities
 
 
Capital expenditures and investments
(3,286)3
(2,647)3
Proceeds from asset dispositions
68 4
663 4
Advances/loans—related parties
(50)
(3)
Collection of advances/loans—related parties
50 
 
Other
161 
Net cash used in continuing investing activities
(3,216)
(1,826)
Net cash used in discontinued operations
 
(2)
Net Cash Used in Investing Activities
(3,216)
(1,828)
Cash Flows From Financing Activities
 
 
Issuance of debt
1,169 
 
Repayment of debt
(918)
(30)
Issuance of common stock
(27)
Repurchase of common stock
(1,106)
(1,750)
Share exchange—PSPI transaction
 
(450)
Dividends paid on common stock
(874)
(787)
Distributions to noncontrolling interests
(30)
(18)
Net proceeds from issuance of Phillips 66 Partners LP common units
384 
 
Other
3
23 3
Net cash used in continuing financing activities
(1,400)
(3,011)
Net Cash Used in Financing Activities
(1,400)
(3,011)
Effect of Exchange Rate Changes on Cash and Cash Equivalents
15 
(110)
Net Change in Cash and Cash Equivalents
(385)
(2,292)
Cash and cash equivalents at beginning of period
5,207 
5,400 
Cash and Cash Equivalents at End of Period
$ 4,822 
$ 3,108 
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]
Treasury Stock Repurchase Plan [Member]
Treasury Stock Received On Disposition [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Noncontrolling Interests [Member]
Beginning Balance at Dec. 31, 2013
$ 22,392 
$ 6 
$ 18,887 
$ (2,602)
 
 
$ 5,622 
$ 37 
$ 442 
Beginning Balance, Treasury Stock at Dec. 31, 2013
44,106,000 
 
 
 
 
 
 
 
 
Beginning Balance, Common Stock Issued, shares at Dec. 31, 2013
634,286,000 
 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
Net income
3,639 
 
 
 
 
 
3,615 
 
24 
Other comprehensive income
(62)
 
 
 
 
 
 
(62)
 
Cash dividends paid on common stock
(787)
 
 
 
 
 
(787)
 
 
Treasury stock, Repurchase of common stock and Share exchange-PSPI transaction
 
 
 
 
(1,750)
(1,350)
 
 
 
Benefit plan activity
 
 
141 
 
 
 
 
 
 
Benefit plan activity
 
 
 
 
 
 
(11)
 
 
Benefit plan activity
130 
 
 
 
 
 
 
 
 
Distributions to noncontrolling interests and other
 
 
 
 
 
 
 
 
(18)
Distributions to noncontrolling interests and other
(18)
 
 
 
 
 
 
 
 
Shares
 
 
 
 
 
 
 
 
 
Shares issued - share-based compensation
2,655,000 
 
 
 
 
 
 
 
 
Repurchase of common stock and share exchange-PSPI transaction, shares
 
 
 
 
21,898,000 
17,423,000 
 
 
 
Ending Balance at Sep. 30, 2014
22,194 
19,028 
(5,702)
 
 
8,439 
(25)
448 
Ending Balance, Treasury Stock at Sep. 30, 2014
83,427,000 
 
 
 
 
 
 
 
 
Ending Balance, Common Stock Issued, shares at Sep. 30, 2014
636,941,000 
 
 
 
 
 
 
 
 
Beginning Balance at Dec. 31, 2014
22,037 
19,040 
(6,234)
 
 
9,309 
(531)
447 
Beginning Balance, Treasury Stock at Dec. 31, 2014
90,649,984 
 
 
 
 
 
 
 
 
Beginning Balance, Common Stock Issued, shares at Dec. 31, 2014
637,031,760 
 
 
 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
Net income
3,614 
 
 
 
 
 
3,577 
 
37 
Other comprehensive income
(57)
 
 
 
 
 
 
(57)
 
Cash dividends paid on common stock
(874)
 
 
 
 
 
(874)
 
 
Treasury stock, Repurchase of common stock and Share exchange-PSPI transaction
(1,106)
 
 
(1,106)
 
 
 
 
 
Benefit plan activity
 
 
76 
 
 
 
 
 
 
Benefit plan activity
 
 
 
 
 
 
(12)
 
 
Benefit plan activity
64 
 
 
 
 
 
 
 
 
Issuance of Phillips 66 Partners LP common units
384 
 
 
 
 
 
 
 
384 
Distributions to noncontrolling interests and other
 
 
 
 
 
 
 
 
(30)
Distributions to noncontrolling interests and other
(30)
 
 
 
 
 
 
 
 
Shares
 
 
 
 
 
 
 
 
 
Shares issued - share-based compensation
1,602,000 
 
 
 
 
 
 
 
 
Repurchase of common stock and share exchange-PSPI transaction, shares
14,544,000 
 
 
 
 
 
 
 
 
Ending Balance at Sep. 30, 2015
$ 24,032 
$ 6 
$ 19,116 
$ (7,340)
 
 
$ 12,000 
$ (588)
$ 838 
Ending Balance, Treasury Stock at Sep. 30, 2015
105,193,975 
 
 
 
 
 
 
 
 
Ending Balance, Common Stock Issued, shares at Sep. 30, 2015
638,634,255 
 
 
 
 
 
 
 
 
Interim Financial Information
Interim Financial Information
Interim Financial Information

The interim financial information presented in the financial statements included in this report is unaudited and includes all known accruals and adjustments necessary, in the opinion of management, for a fair presentation of the consolidated financial position of Phillips 66 and its results of operations and cash flows for the periods presented. Unless otherwise specified, all such adjustments are of a normal and recurring nature. Certain notes and other information have been condensed or omitted from the interim financial statements included in this report. Therefore, these interim financial statements should be read in conjunction with the consolidated financial statements and notes included in our 2014 Annual Report on Form 10-K. The results of operations for the three and nine months ended September 30, 2015, are not necessarily indicative of the results to be expected for the full year.
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 natural gas liquids pipelines and terminals, as well as other transportation and midstream assets. We consolidate Phillips 66 Partners as we determined that Phillips 66 Partners is a VIE and we are the primary beneficiary. As general partner of Phillips 66 Partners, we have the ability to control its financial interests, as well as the ability to direct the activities of Phillips 66 Partners that most significantly impact its economic performance. See Note 20—Phillips 66 Partners LP, for additional information.

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

Merey Sweeny, L.P. (MSLP) is a limited partnership that owns a delayed coker and related facilities at the Sweeny Refinery. As discussed more fully in Note 6—Investments, Loans and Long-Term Receivables, in August 2009, a call right was exercised to acquire the 50 percent ownership interest in MSLP of the co-venturer, Petróleos de Venezuela S.A. (PDVSA). That exercise was challenged, and the dispute has been arbitrated. In April 2014, the arbitral tribunal upheld the exercise of the call right and the acquisition of the 50 percent ownership interest. In July 2014, PDVSA filed a petition to vacate the tribunal’s award, and in September 2015, the petition was denied. We expect PDVSA will appeal this denial. Until all legal challenges are resolved, we will continue to use the equity method of accounting for MSLP, and the VIE analysis below is based on the ownership and governance structure in place prior to the exercise of the call right. MSLP is a VIE because, in securing lender consents in connection with our separation from ConocoPhillips in 2012 (the Separation), we provided a 100 percent debt guarantee to the lender of MSLP’s 8.85% senior notes (MSLP Senior Notes). PDVSA did not participate in the debt guarantee. In our VIE assessment, this disproportionate debt guarantee, plus other liquidity support provided jointly by us and PDVSA independently of equity ownership, results in MSLP not being exposed to all potential losses. We have determined we are not the primary beneficiary while our call exercise award is subject to being vacated because, under the partnership agreement, the co-venturers jointly direct the activities of MSLP that most significantly impact economic performance. At September 30, 2015, our maximum exposure to loss represented the outstanding $173 million principal balance of the MSLP Senior Notes and our investment in MSLP of $149 million.

We have a 50 percent ownership interest with a 50 percent governance interest in Excel Paralubes (Excel). Excel is a VIE because, in securing lender consents in connection with the Separation, ConocoPhillips provided a 50 percent debt guarantee to the lender of Excel’s 7.43% senior secured bonds (Excel Senior Bonds). We provided a full indemnity to ConocoPhillips for this debt guarantee. Our co-venturer did not participate in the debt guarantee. In our assessment of the VIE, this debt guarantee, plus other liquidity support up to $60 million provided jointly by us and our co-venturer independently of equity ownership, results in Excel not being exposed to all potential losses. We have determined we are not the primary beneficiary because we and our co-venturer jointly direct the activities of Excel that most significantly impact economic performance. We use the equity method of accounting for this investment. At September 30, 2015, our maximum exposure to loss represented 50 percent of the outstanding $32 million principal balance of the Excel Senior Bonds, or $16 million, half of the $60 million liquidity support, or $30 million, and our investment in Excel of $117 million.
Inventories
Inventories
Inventories

Inventories consisted of the following:

 
Millions of Dollars
 
September 30
2015

 
December 31
2014

 
 
 
 
Crude oil and petroleum products
$
4,124

 
3,141

Materials and supplies
264

 
256

 
$
4,388

 
3,397




Inventories valued on the last-in, first-out (LIFO) basis totaled $4,021 million and $3,004 million at September 30, 2015, and December 31, 2014, respectively. The estimated excess of current replacement cost over LIFO cost of inventories amounted to approximately $2,300 million and $3,000 million at September 30, 2015, and December 31, 2014, respectively.
Business Combinations
Business Combinations
Business Combinations

We completed the following acquisitions in 2014:

In August 2014, we acquired a 7.1 million-barrel-storage-capacity crude oil and petroleum products terminal located near Beaumont, Texas, to promote growth plans in our Midstream segment.
In July 2014, we acquired Spectrum Corporation, a private label and specialty lubricants business headquartered in Memphis, Tennessee. The acquisition supports our plans to selectively grow stable-return businesses in our Marketing and Specialties (M&S) segment.
In March 2014, we acquired our co-venturer’s interest in an entity that operates a power and steam generation plant located in Texas that is included in our M&S segment. This acquisition provided us with full operational control over a key facility supplying utilities and other services to one of our refineries.

We funded each of these acquisitions with cash on hand. Total cash consideration paid in 2014 was $741 million, net of cash acquired. Cash consideration paid for acquisitions is included in the “Capital expenditures and investments” line of our consolidated statement of cash flows. In the aggregate, as of December 31, 2014, we provisionally recorded $471 million of properties, plants and equipment (PP&E), $232 million of goodwill, $196 million of intangible assets, $70 million of net working capital and $109 million of long-term liabilities. Our acquisition accounting for these transactions is final and there were no material adjustments to the provisional amounts recorded.
Assets Held for Sale or Sold
Assets Held for Sale or Sold
Assets Held for Sale or Sold

In July 2014, we entered into an agreement to sell the Bantry Bay terminal in Ireland, which was included in our Refining segment. Accordingly, the net assets of the terminal were classified as held for sale, which resulted in a before-tax impairment of $12 million from the reduction of the carrying value of the long-lived assets to estimated fair value less costs to sell. As of December 31, 2014, long-lived assets of $77 million were recorded in the “Prepaid expenses and other current assets” line of our consolidated balance sheet. In addition, an immaterial amount of long-term liabilities was recorded in the “Other accruals” line of our consolidated balance sheet. In February 2015, we completed the sale of the terminal. At the time of the disposition, the terminal had a net carrying value of $68 million, which primarily related to net PP&E. An immaterial gain was recognized on this disposition.

In February 2014, we exchanged the stock of Phillips Specialty Products Inc. (PSPI), a flow improver business, which was included in our M&S segment, for shares of Phillips 66 common stock owned by another party. The PSPI share exchange resulted in the receipt of approximately 17.4 million shares of Phillips 66 common stock, which are held as treasury shares, and the recognition of a before-tax gain of $696 million. At the time of the disposition, PSPI had a net carrying value of $685 million, which primarily included $481 million of cash and cash equivalents, $60 million of net PP&E and $117 million of allocated goodwill. Cash and cash equivalents of $450 million included in PSPI’s net carrying value is reflected as a financing cash outflow in the “Share exchange—PSPI transaction” line of our consolidated statement of cash flows. Revenues, income before tax and net income from discontinued operations, excluding the recognized before-tax gain of $696 million, were not material for the nine-month period ended September 30, 2014.

In July 2013, we completed the sale of the Immingham Combined Heat and Power Plant (ICHP), which was included in our M&S segment. A gain on this disposal was deferred at the time of sale due to an indemnity provided to the buyer. We recognized the deferred gain in earnings as our exposure under the indemnity declined, beginning in the third quarter of 2014 and ending in the second quarter of 2015 when the indemnity expired. We recognized $242 million and $109 million of the deferred gain during the nine-month periods ended September 30, 2015 and 2014, respectively. These amounts are included in the “Net gain on dispositions” line of our consolidated statement of income.
Investments, Loans and Long-Term Receivables
Investments, Loans and Long-Term Receivables
Investments, Loans and Long-Term Receivables

Equity Investments
Summarized 100 percent financial information for WRB Refining LP (WRB) and Chevron Phillips Chemical Company LLC (CPChem) was as follows:
 
 
Millions of Dollars
 
Three Months Ended
September 30
 
Nine Months Ended
September 30
 
2015

 
2014

 
2015

 
2014

 
 
 
 
 
 
 
 
Revenues
$
5,266

 
7,896

 
16,092

 
24,579

Income before income taxes
881

 
784

 
2,611

 
3,094

Net income
860

 
758

 
2,556

 
3,021




WRB
WRB is a 50-percent-owned business venture with Cenovus Energy Inc. (Cenovus). Cenovus was obligated to contribute $7.5 billion, plus accrued interest, to WRB over a 10-year period that began in 2007. In the first quarter of 2014, Cenovus prepaid its remaining balance under this obligation. As a result, WRB declared a special dividend, which was distributed to the co-venturers in March 2014. Of the $1,232 million that we received, $760 million was considered a return on our investment in WRB (an operating cash inflow), and $472 million was considered a return of our investment in WRB (an investing cash inflow). The return of investment portion of the dividend was included in the “Proceeds from asset dispositions” line in our consolidated statement of cash flows. At September 30, 2015, the book value of our investment in WRB was $2,049 million and our basis difference was $3,235 million.

Other
In April 2015, Rockies Express Pipeline LLC (REX) repaid $450 million of its debt, reducing its long-term debt to approximately $2.6 billion.  REX funded the repayment through member cash contributions. Our 25 percent share was approximately $112 million, which we contributed to REX in April 2015.

MSLP owns a delayed coker and related facilities at the Sweeny Refinery. MSLP processes long residue, which is produced from heavy sour crude oil, for a processing fee. Fuel-grade petroleum coke is produced as a by-product and becomes the property of MSLP. Prior to August 28, 2009, MSLP was owned 50/50 by ConocoPhillips and PDVSA. Under the agreements that govern the relationships between the partners, certain defaults by PDVSA with respect to supply of crude oil to the Sweeny Refinery triggered the right to acquire PDVSA’s 50 percent ownership interest in MSLP, which was exercised on August 28, 2009. PDVSA initiated arbitration with the International Chamber of Commerce challenging the exercise of the call right and claiming it was invalid. The arbitral tribunal held hearings on the merits of the dispute in December 2012, and post-hearing briefs were exchanged in March 2013. The arbitral tribunal issued its ruling in April 2014, which upheld the exercise of the call right and the acquisition of the 50 percent ownership interest. In July 2014, PDVSA filed a petition in U.S. district court to vacate the tribunal’s ruling, and in September 2015, the petition was denied. We expect PDVSA will appeal this denial. Following the Separation, Phillips 66 generally indemnifies ConocoPhillips for liabilities, if any, arising out of the exercise of the call right or otherwise with respect to the joint venture or the refinery. Until all legal challenges are resolved, we will continue to use the equity method of accounting for our investment in MSLP.
Properties, Plants and Equipment
Properties, Plants and Equipment
Properties, Plants and Equipment

Our investment in PP&E, with the associated accumulated depreciation and amortization (Accum. D&A), was:

 
Millions of Dollars
 
September 30, 2015
 
December 31, 2014
 
Gross
PP&E

 
Accum.
D&A

 
Net
PP&E

 
Gross
PP&E

 
Accum.
D&A

 
Net
PP&E

 
 
 
 
 
 
 
 
 
 
 
 
Midstream
$
6,571

 
1,257

 
5,314

 
4,726

 
1,185

 
3,541

Chemicals

 

 

 

 

 

Refining
20,656

 
7,898

 
12,758

 
19,951

 
7,424

 
12,527

Marketing and Specialties
1,445

 
745

 
700

 
1,490

 
738

 
752

Corporate and Other
966

 
481

 
485

 
978

 
452

 
526

 
$
29,638

 
10,381

 
19,257

 
27,145

 
9,799

 
17,346

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.
 
Three Months Ended
September 30
 
Nine Months Ended
September 30
 
2015
 
2014
 
2015
 
2014
 
Basic

Diluted

 
Basic

Diluted

 
Basic

Diluted

 
Basic

Diluted

Amounts attributed to Phillips 66 Common Stockholders (millions):
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations attributable to Phillips 66
$
1,578

1,578

 
1,180

1,180

 
3,577

3,577

 
2,909

2,909

Income allocated to participating securities
(1
)

 
(2
)

 
(5
)

 
(5
)

Income from continuing operations available to common stockholders
1,577

1,578

 
1,178

1,180

 
3,572

3,577

 
2,904

2,909

Discontinued operations


 


 


 
706

706

Net Income available to common stockholders
$
1,577

1,578

 
1,178

1,180

 
3,572

3,577

 
3,610

3,615

 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding (thousands):
535,618

540,357

 
555,677

559,492

 
539,616

544,362

 
565,831

569,692

Effect of stock-based compensation
4,739

4,339

 
3,815

5,466

 
4,746

4,672

 
3,861

5,897

Weighted-average common shares outstanding—EPS
540,357

544,696

 
559,492

564,958

 
544,362

549,034

 
569,692

575,589

 
 
 
 
 
 
 
 
 
 
 
 
Earnings Per Share of Common Stock (dollars):
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations attributable to Phillips 66
$
2.92

2.90

 
2.11

2.09

 
6.56

6.52

 
5.10

5.05

Discontinued operations


 


 


 
1.24

1.23

Earnings Per Share
$
2.92

2.90

 
2.11

2.09

 
6.56

6.52

 
6.34

6.28

Debt
Debt
Debt

Debt Repayment
In March 2015, we repaid $800 million of 1.95% Senior Notes upon maturity.

Debt Issuance
In February 2015, Phillips 66 Partners closed on a public offering of $1.1 billion aggregate principal amount of unsecured senior notes, consisting of:

$300 million of 2.646% Senior Notes due 2020.
$500 million of 3.605% Senior Notes due 2025.
$300 million of 4.680% Senior Notes due 2045.

Phillips 66 Partners utilized a portion of the net proceeds to fund part of the purchase price for its acquisition of our equity interests in Explorer Pipeline Company, DCP Sand Hills Pipeline, LLC, and DCP Southern Hills Pipeline, LLC. The remaining proceeds were used to repay existing borrowings from a subsidiary of Phillips 66, fund capital expenditures and for general partnership purposes. See Note 20—Phillips 66 Partners LP, for additional information.

Credit Facilities
At both September 30, 2015, and December 31, 2014, we had no direct outstanding borrowings under our $5 billion revolving credit agreement, while $51 million in letters of credit had been issued that were supported by it. At September 30, 2015, and December 31, 2014, no amount and $18 million, respectively, were outstanding under the $500 million revolving credit agreement of Phillips 66 Partners. Accordingly, as of September 30, 2015, an aggregate $5.4 billion of total capacity was available under these facilities.
Guarantees
Guarantees
Guarantees

At September 30, 2015, we were liable for certain contingent obligations under various contractual arrangements as described below. We recognize a liability, at inception, for the fair value of our obligation as a guarantor for newly issued or modified guarantees. Unless the carrying amount of the liability is noted below, we have not recognized a liability either because the guarantees were issued prior to December 31, 2002, or because the fair value of the obligation is immaterial. In addition, unless otherwise stated, we are not currently performing with any significance under the guarantee and expect future performance to be either immaterial or have only a remote chance of occurrence.

Guarantees of Joint Venture Debt
In 2012, in connection with the Separation, we issued a guarantee for 100 percent of the MSLP Senior Notes issued in July 1999. At September 30, 2015, the maximum potential amount of future payments to third parties under the guarantee was estimated to be $173 million, which could become payable if MSLP fails to meet its obligations under the senior notes agreement. The MSLP Senior Notes mature in 2019.

Other Guarantees
We have residual value guarantees associated with leases with maximum future potential payments totaling $395 million. We have other guarantees with maximum future potential payment amounts totaling $117 million, which consist primarily of guarantees to fund the short-term cash liquidity deficits of certain joint ventures and guarantees of the lease payment obligations of a joint venture. These guarantees generally extend up to 9 years or life of the venture.

Indemnifications
Over the years, we have entered into various agreements to sell ownership interests in certain corporations, joint ventures and assets that gave rise to qualifying indemnifications. Agreements associated with these sales include indemnifications for taxes, litigation, environmental liabilities, permits and licenses, and employee claims; and real estate indemnity against tenant defaults. The provisions of these indemnifications vary greatly. The majority of these indemnifications are related to environmental issues with generally indefinite terms, and the maximum amount of future payments is generally unlimited. The carrying amount recorded for indemnifications at September 30, 2015, was $210 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 $105 million of environmental accruals for known contamination that were primarily included in “Asset retirement obligations and accrued environmental costs” at September 30, 2015. For additional information about environmental liabilities, see Note 11—Contingencies and Commitments.

Indemnification and Release Agreement
In 2012, we entered into the Indemnification and Release Agreement with ConocoPhillips. This agreement governs the treatment between ConocoPhillips and us of matters relating to indemnification, insurance, litigation responsibility and management, and litigation document sharing and cooperation arising in connection with the Separation. Generally, the agreement provides for cross-indemnities principally designed to place financial responsibility for the obligations and liabilities of our business with us and financial responsibility for the obligations and liabilities of ConocoPhillips’ business with ConocoPhillips. The agreement also establishes procedures for handling claims subject to indemnification and related matters.
Contingencies and Commitments
Contingencies and Commitments
Contingencies and Commitments

A number of lawsuits involving a variety of claims that arose in the ordinary course of business have been filed against us or are subject to indemnifications provided by us. We also may be required to remove or mitigate the effects on the environment of the placement, storage, disposal or release of certain chemical, mineral and petroleum substances at various active and inactive sites. We regularly assess the need for accounting recognition or disclosure of these contingencies. In the case of all known contingencies (other than those related to income taxes), we accrue a liability when the loss is probable and the amount is reasonably estimable. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. We do not reduce these liabilities for potential insurance or third-party recoveries. If applicable, we record receivables for probable insurance or other third-party recoveries. In the case of income-tax-related contingencies, we use a cumulative probability-weighted loss accrual in cases where sustaining a tax position is less than certain.

Based on currently available information, we believe it is remote that future costs related to known contingent liability exposures will exceed current accruals by an amount that would have a material adverse impact on our consolidated financial statements. As we learn new facts concerning contingencies, we reassess our position both with respect to accrued liabilities and other potential exposures. Estimates particularly sensitive to future changes include contingent liabilities recorded for environmental remediation, tax and legal matters. Estimated future environmental remediation costs are subject to change due to such factors as the uncertain magnitude of cleanup costs, the unknown time and extent of such remedial actions that may be required, and the determination of our liability in proportion to that of other potentially responsible parties. Estimated future costs related to tax and legal matters are subject to change as events evolve and as additional information becomes available during the administrative and litigation processes.

Environmental
We are subject to international, federal, state and local environmental laws and regulations. When we prepare our consolidated financial statements, we record accruals for environmental liabilities based on management’s best estimates, using all information available at the time. We measure estimates and base liabilities on currently available facts, existing technology, and presently enacted laws and regulations, taking into account stakeholder and business considerations. When measuring environmental liabilities, we also consider our prior experience in remediation of contaminated sites, other companies’ cleanup experience, and data released by the U.S. Environmental Protection Agency (EPA) or other organizations. We consider unasserted claims in our determination of environmental liabilities, and we accrue them in the period they are both probable and reasonably estimable.

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

We are currently participating in environmental assessments and cleanups at numerous federal Superfund and comparable state sites. After an assessment of environmental exposures for cleanup and other costs, we make accruals on an undiscounted basis (except those pertaining to sites acquired in a purchase business combination, which we record on a discounted basis) for planned investigation and remediation activities for sites where it is probable future costs will be incurred and these costs can be reasonably estimated. At September 30, 2015, our total environmental accrual was $490 million, compared with $496 million at December 31, 2014. We expect to incur a substantial amount of these expenditures within the next 30 years. We have not reduced these accruals for possible insurance recoveries. In the future, we may be involved in additional environmental assessments, cleanups and proceedings.

Legal Proceedings
Our legal organization applies its knowledge, experience and professional judgment to the specific characteristics of our cases, employing a litigation management process to manage and monitor the legal proceedings against us. Our process facilitates the early evaluation and quantification of potential exposures in individual cases. This process also enables us to track those cases that have been scheduled for trial and/or mediation. Based on professional judgment and experience in using these litigation management tools and available information about current developments in all our cases, our legal organization regularly assesses the adequacy of current accruals and determines if adjustment of existing accruals, or establishment of new accruals, is required.

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

At September 30, 2015, we had performance obligations secured by letters of credit and bank guarantees of $473 million (of which $51 million was issued under the provisions of our revolving credit facility, and the remainder was issued as direct bank letters of credit and bank guarantees) related to various purchase and other commitments incident to the ordinary conduct of business.
Derivatives and Financial 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. Because we do not use cash-flow hedge accounting, all gains and losses, realized or unrealized, from commodity derivative contracts have been recognized in the consolidated statement of income. Gains and losses from derivative contracts held for trading not directly related to our physical business, whether realized or unrealized, have been reported net in “Other income” on our consolidated statement of income. Cash flows from all our derivative activity for the periods presented appear in the operating section of the consolidated statement of cash flows.

Purchase and sales contracts with fixed minimum notional volumes for commodities that are readily convertible to cash (e.g., crude oil and gasoline) are recorded on the balance sheet as derivatives unless the contracts are eligible for, and we elect, the normal purchases and normal sales exception (i.e., contracts to purchase or sell quantities we expect to use or sell over a reasonable period in the normal course of business). We generally apply this normal purchases and normal sales exception to eligible crude oil, refined product, natural gas liquids (NGL), natural gas and power commodity purchase and sales contracts; however, we may elect not to apply this exception (e.g., when another derivative instrument will be used to mitigate the risk of the purchase or sales contract but hedge accounting will not be applied, in which case both the purchase or sales contract and the derivative contract mitigating the resulting risk will be recorded on the balance sheet at fair value). Our derivative instruments are held at fair value on our consolidated balance sheet. For further information on the fair value of derivatives, see Note 13—Fair Value Measurements.

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

The following table indicates the balance sheet line items that include the fair values of commodity derivative assets and liabilities presented net (i.e., commodity derivative assets and liabilities with the same counterparty are netted where the right of setoff exists); however, the balances in the following table are presented gross. For information on the impact of counterparty netting and collateral netting, see Note 13—Fair Value Measurements.

 
Millions of Dollars
 
September 30
2015

 
December 31
2014

Assets
 
 
 
Accounts and notes receivable
$
(1
)
 
(1
)
Prepaid expenses and other current assets
1,770

 
3,839

Other assets
25

 
29

Liabilities
 
 
 
Other accruals
1,657

 
3,472

Other liabilities and deferred credits
21

 
1

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


The gains (losses) incurred from commodity derivatives, and the line items where they appear on our consolidated statement of income, were:
 
 
Millions of Dollars
 
Three Months Ended
September 30
 
Nine Months Ended
September 30
 
2015

 
2014

 
2015

 
2014

 
 
 
 
 
 
 
 
Sales and other operating revenues
$
195

 
179

 
21

 
208

Equity in earnings of affiliates

 
6

 

 
4

Other income
12

 
(3
)
 
59

 
12

Purchased crude oil and products
117

 
71

 
66

 
28

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 September 30, 2015, and December 31, 2014, the percentages of our derivative contract volumes expiring within the next 12 months were approximately 98 percent and 99 percent, respectively.
 
Open Position
Long/(Short)
 
September 30
2015

 
December 31
2014

Commodity
 
 
 
Crude oil, refined products and NGL (millions of barrels)
(29
)
 
(11
)



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

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

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

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

The aggregate fair values of all derivative instruments with such credit-risk-related contingent features that were in a liability position were not material at September 30, 2015, or December 31, 2014.
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 consolidated balance sheet approximates fair value.
Accounts and notes receivable: The carrying amount reported on the consolidated balance sheet approximates fair value.
Debt: The carrying amount of our floating-rate debt approximates fair value. The fair value of our fixed-rate debt is estimated based on quoted market prices.
Commodity swaps: Fair value is estimated based on forward market prices and approximates the exit price at period end. When forward market prices are not available, we estimate fair value using the forward price of a similar commodity, adjusted for the difference in quality or location.
Futures: Fair values are based on quoted market prices obtained from the New York Mercantile Exchange, the InterContinental Exchange, or other traded exchanges.
Forward-exchange contracts: Fair value is estimated by comparing the contract rate to the forward rate in effect at the end of the reporting period, which approximates the exit price at that date.

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

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

We classify the fair value of an asset or liability based on the lowest level of input significant to its measurement; however, the fair value of an asset or liability initially reported as Level 3 will be subsequently reported as Level 2 if the unobservable inputs become inconsequential to its measurement or corroborating market data becomes available. Conversely, an asset or liability initially reported as Level 2 will be subsequently reported as Level 3 if corroborating market data becomes unavailable. For the nine-month period ended September 30, 2015, derivative assets with an aggregate value of $316 million and derivative liabilities with an aggregate value of $324 million were transferred into Level 1, as measured from the beginning of the reporting period. The measurements were reclassified within the fair value hierarchy due to the availability of unadjusted quoted prices from an active market.

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

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

We have master netting agreements for all of our exchange-cleared derivative instruments, the majority of our OTC derivative instruments, and certain physical commodity forward contracts (primarily pipeline crude oil deliveries). The following tables show the fair value of these contracts on a net basis in the column “Effect of Counterparty Netting,” which is how these also appear on the consolidated balance sheet.

The carrying values and fair values by hierarchy of our material financial instruments and commodity forward contracts, either carried or disclosed at fair value, including any effects of netting derivative assets with liabilities and netting collateral due to right of setoff or master netting agreements, were:

 
Millions of Dollars
 
September 30, 2015
 
Fair Value Hierarchy
 
Total Fair Value of Gross Assets & Liabilities

Effect of Counterparty Netting

Effect of Collateral Netting

Difference in Carrying Value and Fair Value

Net Carrying Value Presented on the Balance Sheet

Cash Collateral Received or Paid, Not Offset on Balance Sheet

 
Level 1

 
Level 2

 
Level 3

Commodity Derivative Assets
 
 
 
 
 
 
 
 
 
 
 
 
Exchange-cleared instruments
$
979

 
738

 

 
1,717

(1,588
)
(10
)

119

1

OTC instruments

 
12

 

 
12

(5
)


7


Physical forward contracts*

 
63

 
2

 
65

(4
)


61


Rabbi trust assets
80

 

 

 
80

N/A

N/A


80

N/A

 
$
1,059

 
813

 
2

 
1,874

(1,597
)
(10
)

267

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity Derivative Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Exchange-cleared instruments
$
979

 
660

 

 
1,639

(1,588
)
(50
)

1

1

OTC instruments

 
9

 

 
9

(5
)


4


Physical forward contracts*

 
30

 

 
30

(4
)


26


Floating-rate debt
50

 

 

 
50

N/A

N/A


50

N/A

Fixed-rate debt, excluding capital leases**

 
8,793

 

 
8,793

N/A

N/A

(106
)
8,687

N/A

 
$
1,029

 
9,492

 

 
10,521

(1,597
)
(50
)
(106
)
8,768


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


 
Millions of Dollars
 
December 31, 2014
 
Fair Value Hierarchy
 
Total Fair Value of Gross Assets & Liabilities

Effect of Counterparty Netting

Effect of Collateral Netting

Difference in Carrying Value and Fair Value

Net Carrying Value Presented on the Balance Sheet

Cash Collateral Received or Paid, Not Offset on Balance Sheet

 
Level 1

 
Level 2

 
Level 3

 
Commodity Derivative Assets
 
 
 
 
 
 
 
 
 
 
 
 
Exchange-cleared instruments
$
2,058

 
1,525

 

 
3,583

(3,255
)
(225
)

103


OTC instruments

 
24

 

 
24

(14
)


10


Physical forward contracts*

 
253

 
7

 
260

(38
)


222


Rabbi trust assets
76

 

 

 
76

N/A

N/A


76

N/A

 
$
2,134

 
1,802

 
7

 
3,943

(3,307
)
(225
)

411



 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity Derivative Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Exchange-cleared instruments
$
1,833

 
1,422

 

 
3,255

(3,255
)




OTC instruments

 
29

 

 
29

(14
)


15


Physical forward contracts*

 
189

 

 
189

(38
)


151


Floating-rate debt
68

 

 

 
68

N/A

N/A


68

N/A

Fixed-rate debt, excluding capital leases**

 
8,806

 

 
8,806

N/A

N/A

(400
)
8,406

N/A

 
$
1,901

 
10,446

 

 
12,347

(3,307
)

(400
)
8,640


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


The rabbi trust assets appear on our consolidated balance sheet in the “Investments and long-term receivables” line, while the floating-rate and fixed-rate debt appear in the “Short-term debt” and “Long-term debt” lines. For information regarding where our commodity derivative assets and liabilities appear on the balance sheet, see the first table in Note 12—Derivatives and Financial Instruments.

Nonrecurring Fair Value Remeasurements
During the nine-month period ended September 30, 2015, there were no significant nonrecurring fair value remeasurements of assets subsequent to their initial recognition.

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 nine-month period ended September 30, 2014:

 
Millions of Dollars
 
 
 
Fair Value
Measurements Using
 
 
 
Fair Value*

 
Level 1
Inputs

 
Level 2
Inputs

 
Level 3
Inputs

 
Before-
Tax Loss

September 30, 2014
 
 
 
 
 
 
 
 
 
Net asset disposal group (held for sale)
$
72

 
72

 

 

 
12

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


During the nine-month period ended September 30, 2014, net assets related to the Bantry Bay terminal in our Refining segment, with a carrying amount of $84 million, primarily consisting of net PP&E, were written down to fair value less costs to sell, resulting in a before-tax loss of $12 million. This impairment was attributed to the long-lived assets in the disposal group. The fair value was determined by a negotiated selling price with a third party. See Note 5—Assets Held for Sale or Sold, for additional information.
Employee Benefit Plans
Employee Benefit Plans
Employee Benefit Plans

Pension and Postretirement Plans
The components of net periodic benefit cost for the three and nine months ended September 30, 2015 and 2014, were as follows:
 
Millions of Dollars
 
Pension Benefits
 
Other Benefits
 
2015
 
2014
 
2015

 
2014

 
U.S.

 
Int’l.

 
U.S.

 
Int’l.

 
 
 
 
Components of Net Periodic Benefit Cost
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
32

 
9

 
30

 
9

 
1

 
1

Interest cost
27

 
7

 
27

 
9

 
2

 
2

Expected return on plan assets
(35
)
 
(9
)
 
(35
)
 
(9
)
 

 

Amortization of prior service cost

 

 
1

 

 

 

Recognized net actuarial loss
19

 
4

 
10

 
3

 

 

Settlements
75

 

 

 

 

 

Net periodic benefit cost
$
118


11


33


12


3


3

 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
94

 
29

 
91

 
29

 
5

 
5

Interest cost
81

 
21

 
81

 
27

 
6

 
6

Expected return on plan assets
(105
)
 
(28
)
 
(106
)
 
(28
)
 

 

Amortization of prior service cost (credit)
2

 
(1
)
 
2

 
(1
)
 
(1
)
 
(1
)
Recognized net actuarial loss (gain)
56

 
12

 
30

 
9

 
(1
)
 
(1
)
Settlements
76

 

 

 

 

 

Net periodic benefit cost
$
204

 
33

 
98

 
36

 
9

 
9




During the first nine months of 2015, we contributed $225 million to our U.S. benefit plans and $52 million to our international benefit plans. We currently expect to make additional contributions of approximately $5 million to our U.S. benefit plans and $10 million to our international benefit plans during the remainder of 2015.

During the three months ended September 30, 2015, lump-sum benefit payments exceeded the sum of service and interest costs for the plan year for the U.S. qualified pension plan. As a result, we recognized a proportionate share of prior actuarial losses, or pension settlement expense, of $73 million. We have also recognized year-to-date pension settlement expense of $3 million related to our U.S. non-qualified supplemental retirement plan. In conjunction with the recognition of pension settlement expense, the plan assets and pension benefit obligation of the U.S. qualified pension plan were remeasured as of September 30, 2015. At the measurement date, the net pension liability increased $116 million resulting in a corresponding decrease to other comprehensive income. The increase in the net pension liability was primarily due to a decline in plan asset fair value.
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)

The following table depicts changes in accumulated other comprehensive income (loss) by component, as well as detail on reclassifications out of accumulated other comprehensive income (loss):
 
 
Millions of Dollars
 
Defined Benefit Plans

 
Foreign Currency Translation

 
Hedging

 
Accumulated Other Comprehensive Income (Loss)

 
 
 
 
 
 
 
 
December 31, 2013
$
(404
)
 
443

 
(2
)
 
37

Other comprehensive income (loss) before reclassifications
6

 
(97
)
 

 
(91
)
Amounts reclassified from accumulated other comprehensive income (loss)*
 
 
 
 
 
 
 
Amortization of defined benefit plan items**
 
 
 
 
 
 
 
Actuarial losses
29

 

 

 
29

Net current period other comprehensive income (loss)
35

 
(97
)
 

 
(62
)
September 30, 2014
$
(369
)
 
346

 
(2
)
 
(25
)
 
 
 
 
 
 
 
 
December 31, 2014
$
(696
)
 
167

 
(2
)
 
(531
)
Other comprehensive loss before reclassifications
(63
)
 
(88
)
 

 
(151
)
Amounts reclassified from accumulated other comprehensive income (loss)*
 
 
 
 
 
 


Amortization of defined benefit plan items**
 
 
 
 
 
 
 
Actuarial losses and settlements
94

 

 

 
94

Net current period other comprehensive income (loss)
31

 
(88
)
 

 
(57
)
September 30, 2015
$
(665
)
 
79

 
(2
)
 
(588
)
* There were no significant reclassifications related to foreign currency translation or hedging.
** These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost (see Note 14—Employee Benefit Plans, for additional information).
Cash Flow Information
Cash Flow Information
Cash Flow Information

PSPI Noncash Stock Exchange
As discussed more fully in Note 5—Assets Held for Sale or Sold, in February 2014 we completed the exchange of the stock of PSPI for shares of Phillips 66 common stock owned by the other party to the transaction. The noncash portion of the net assets surrendered by us in the exchange was $204 million, and we received approximately 17.4 million shares of our common stock, with a fair value at the time of the exchange of $1.35 billion.
Related Party Transactions
Related Party Transactions
Related Party Transactions

Significant transactions with related parties were:

 
Millions of Dollars
 
Three Months Ended
September 30
 
Nine Months Ended
September 30
 
2015

 
2014

 
2015

 
2014

 
 
 
 
 
 
 
 
Operating revenues and other income (a)
$
581

 
1,653

 
1,872

 
5,306

Purchases (b)
1,927

 
3,772

 
6,281

 
12,298

Operating expenses and selling, general and administrative expenses (c)
29

 
33

 
91

 
109

Interest expense (d)
2

 
2

 
5

 
6



In December 2014, we completed the sale of our interest in the Malaysian Refining Company Sdn. Bdh. (MRC). Accordingly, sales of crude oil to MRC and purchases of refined products from MRC are only included in the 2014 period in the table above.

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

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

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

(d)
We incurred interest expense on a note payable to MSLP.
Income Taxes
Income Taxes
Income Taxes

Our effective tax rate for the third quarter and the first nine months of 2015 was 33 percent and 31 percent, respectively, compared with 31 percent and 33 percent for the corresponding periods of 2014. The increase in the effective tax rate for the third quarter of 2015, compared with the third quarter of 2014, was primarily attributable to the recognition of a nontaxable gain associated with the sale of ICHP in 2014. The decrease in the effective tax rate for the first nine months of 2015, compared with the first nine months of 2014, was primarily attributable to a favorable tax settlement in the United Kingdom and a larger impact in 2015 from the recognition of a nontaxable gain associated with the sale of ICHP. For additional information on the nontaxable gain, see Note 5—Assets Held for Sale or Sold. The effective tax rate varies from the federal statutory tax rate of 35 percent primarily as a result of state tax expense, offset by the manufacturing deduction and foreign operations.
Phillips 66 Partners LP
Phillips 66 Partners LP
Phillips 66 Partners LP

In 2013, we formed Phillips 66 Partners, a master limited partnership, to own, operate, develop and acquire primarily fee-based crude oil, refined petroleum product and NGL pipelines and terminals, as well as other transportation and midstream assets.
In March 2015, we contributed to Phillips 66 Partners our equity interests in Explorer Pipeline Company (19.5 percent), DCP Sand Hills Pipeline, LLC (33.3 percent), and DCP Southern Hills Pipeline, LLC (33.3 percent). Each of these investments is accounted for under the equity method of accounting. The total consideration for the transaction was $1,010 million, which consisted of $880 million in cash and the issuance of common units and general partner units to us with an aggregate fair value of $130 million.
In February 2015, Phillips 66 Partners completed a public offering of 5,250,000 common units representing limited partner interests, at a public offering price of $75.50 per unit. The net proceeds received at closing were $384 million. Additionally, Phillips 66 Partners closed a public offering of $1.1 billion aggregate principal amount of senior notes. For additional information about the senior notes, see Note 9—Debt.
Phillips 66 Partners used a portion of the net proceeds of both offerings to fund the acquisition transaction discussed above and repay existing borrowings from a subsidiary of Phillips 66. The remainder is being used for capital expenditures and for general partnership purposes.
At September 30, 2015, we owned a 69 percent limited partner interest and a 2 percent general partner interest in Phillips 66 Partners, while the public owned a 29 percent limited partner interest. We consolidate Phillips 66 Partners because we control the partnership through our general partner interest (see Note 2—Variable Interest Entities (VIEs), for additional information). The public’s ownership interest in Phillips 66 Partners was $805 million at September 30, 2015, and is reflected as a noncontrolling interest in our financial statements. The most significant assets of Phillips 66 Partners that are available to settle only its obligations were equity investments of $858 million and net PP&E of $489 million at September 30, 2015.
New Accounting Standards
New Accounting Standards
New Accounting Standards

In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-03, “Interest - Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs.” This ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 is effective for annual and quarterly reporting periods of public entities beginning after December 15, 2015, applied on a retrospective basis. Early adoption is permitted for financial statements that have not been previously issued. In August 2015, the FASB issued ASU 2015-15, "Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements." This standard states that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing these costs when they relate to a line-of-credit arrangement. We currently have debt issuance costs included as deferred charges in our balance sheet, which will be reclassified as a reduction of debt when we adopt ASU 2015-03. At September 30, 2015, this amount was $55 million.

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The new standard converged guidance on recognizing revenues in contracts with customers under accounting principles generally accepted in the United States and International Financial Reporting Standards. This ASU is intended to improve comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date.” The amendment in this ASU defers the effective date of ASU 2014-09 for all entities for one year. Public business entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier adoption is permitted only as of annual reporting periods beginning after December 31, 2016, including interim reporting periods within that reporting period. Retrospective or modified retrospective application of the accounting standard is required. We are currently evaluating the provisions of ASU 2014-09 and assessing the impact, if any, it may have on our financial position and results of operations.
Subsequent Event
Subsequent Events
Subsequent Event

On October 18, 2015, we entered into a definitive agreement with DCP Midstream and our co-venturer in DCP Midstream pursuant to which we will contribute $1.5 billion of cash to DCP Midstream and our co-venturer will contribute their interests in certain operating assets that are held as equity investments. The transaction closed on October 30, 2015. Upon completion of this transaction our interest in DCP Midstream will remain at 50 percent.
Condensed Consolidating Financial Information
Condensed Consolidating Financial Information
Condensed Consolidating Financial Information

$7.5 billion of our senior notes were issued by Phillips 66, and are guaranteed by Phillips 66 Company, a 100-percent-owned subsidiary. Phillips 66 Company has fully and unconditionally guaranteed the payment obligations of Phillips 66 with respect to these debt securities. The following condensed consolidating financial information presents the results of operations, financial position and cash flows for:

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

This condensed consolidating financial information should be read in conjunction with the accompanying consolidated financial statements and notes. The 2014 condensed consolidating statements of income and cash flows were revised to eliminate intra-column lending transactions, to realign interest revenue from certain inter-column lending activities to the appropriate column, and to make the associated adjustments required to equity earnings and investments. These changes did not impact the total consolidated amounts.
 
Millions of Dollars
 
Three Months Ended September 30, 2015
Statement of Income
Phillips 66

Phillips 66 Company

All Other Subsidiaries

Consolidating Adjustments

Total Consolidated

Revenues and Other Income
 
 
 
 
 
Sales and other operating revenues
$

18,122

7,670


25,792

Equity in earnings of affiliates
1,637

946

89

(2,089
)
583

Net gain on dispositions


22


22

Other income

12

8


20

Intercompany revenues

264

2,556

(2,820
)

Total Revenues and Other Income
1,637

19,344

10,345

(4,909
)
26,417

 
 
 
 
 
 
Costs and Expenses
 
 
 
 
 
Purchased crude oil and products

14,210

7,138

(2,768
)
18,580

Operating expenses

887

203

(7
)
1,083

Selling, general and administrative expenses
2

339

107

(11
)
437

Depreciation and amortization

206

64


270

Impairments

1



1

Taxes other than income taxes

1,396

2,214


3,610

Accretion on discounted liabilities

4

1


5

Interest and debt expense
90

7

8

(34
)
71

Foreign currency transaction losses

1



1

Total Costs and Expenses
92

17,051

9,735

(2,820
)
24,058

Income from continuing operations before income taxes
1,545

2,293

610

(2,089
)
2,359

Provision (benefit) for income taxes
(33
)
656

144


767

Income From Continuing Operations
1,578

1,637

466

(2,089
)
1,592

Income from discontinued operations





Net income
1,578

1,637

466

(2,089
)
1,592

Less: net income attributable to noncontrolling interests


14


14

Net Income Attributable to Phillips 66
$
1,578

1,637

452

(2,089
)
1,578

 
 
 
 
 
 
Comprehensive Income
$
1,459

1,518

365

(1,869
)
1,473

 
Millions of Dollars
 
Three Months Ended September 30, 2014
Statement of Income
Phillips 66

Phillips 66 Company

All Other Subsidiaries

Consolidating Adjustments

Total Consolidated

Revenues and Other Income
 
 
 
 
 
Sales and other operating revenues
$

27,700

12,717


40,417

Equity in earnings of affiliates
1,225

816

87

(1,617
)
511

Net gain on dispositions


109


109

Other income

3

8


11

Intercompany revenues

749

4,757

(5,506
)

Total Revenues and Other Income
1,225

29,268

17,678

(7,123
)
41,048

 
 
 
 
 
 
Costs and Expenses
 
 
 
 
 
Purchased crude oil and products

24,785

14,272

(5,455
)
33,602

Operating expenses

893

221

(10
)
1,104

Selling, general and administrative expenses

301

122

(22
)
401

Depreciation and amortization

189

60


249

Impairments


12


12

Taxes other than income taxes

1,405

2,470

(1
)
3,874

Accretion on discounted liabilities

5

1


6

Interest and debt expense
69

3

6

(18
)
60

Foreign currency transaction losses


13


13

Total Costs and Expenses
69

27,581

17,177

(5,506
)
39,321

Income from continuing operations before income taxes
1,156

1,687

501

(1,617
)
1,727

Provision (benefit) for income taxes
(24
)
462

100


538

Income From Continuing Operations
1,180

1,225

401

(1,617
)
1,189

Income from discontinued operations





Net income
1,180

1,225

401

(1,617
)
1,189

Less: net income attributable to noncontrolling interests


9


9

Net Income Attributable to Phillips 66
$
1,180

1,225

392

(1,617
)
1,180

 
 
 
 
 
 
Comprehensive Income
$
969

1,014

178

(1,183
)
978

 
Millions of Dollars
 
Nine Months Ended September 30, 2015
Statement of Income
Phillips 66

Phillips 66 Company

All Other Subsidiaries

Consolidating Adjustments

Total Consolidated

Revenues and Other Income
 
 
 
 
 
Sales and other operating revenues
$

53,612

23,470


77,082

Equity in earnings (losses) of affiliates
3,760

2,362

(13
)
(4,663
)
1,446

Net gain (loss) on dispositions

(115
)
398


283

Other income

77

32


109

Intercompany revenues

753

7,699

(8,452
)

Total Revenues and Other Income
3,760

56,689

31,586

(13,115
)
78,920

 
 
 
 
 
 
Costs and Expenses
 
 
 
 
 
Purchased crude oil and products

42,959

22,899

(8,330
)
57,528

Operating expenses
4

2,543

704

(31
)
3,220

Selling, general and administrative expenses
5

934

311

(13
)
1,237

Depreciation and amortization

614

183


797

Impairments

3



3

Taxes other than income taxes

4,212

6,409


10,621

Accretion on discounted liabilities

12

4


16

Interest and debt expense
273

19

22

(78
)
236

Foreign currency transaction losses

1

49


50

Total Costs and Expenses
282

51,297

30,581

(8,452
)
73,708

Income from continuing operations before income taxes
3,478

5,392

1,005

(4,663
)
5,212

Provision (benefit) for income taxes
(99
)
1,632

65


1,598

Income from Continuing Operations
3,577

3,760

940

(4,663
)
3,614

Income from discontinued operations





Net income
3,577

3,760

940

(4,663
)
3,614

Less: net income attributable to noncontrolling interests


37


37

Net Income Attributable to Phillips 66
$
3,577

3,760

903

(4,663
)
3,577

 
 
 
 
 
 
Comprehensive Income
$
3,520

3,703

878

(4,544
)
3,557



 
Millions of Dollars
 
Nine Months Ended September 30, 2014
Statement of Income
Phillips 66

Phillips 66 Company

All Other Subsidiaries

Consolidating Adjustments

Total Consolidated

Revenues and Other Income
 
 
 
 
 
Sales and other operating revenues
$

85,084

41,165


126,249

Equity in earnings of affiliates
3,055

2,269

395

(3,666
)
2,053

Net gain on dispositions


125


125

Other income

43

16


59

Intercompany revenues

2,084

15,158

(17,242
)

Total Revenues and Other Income
3,055

89,480

56,859

(20,908
)
128,486

 
 
 
 
 
 
Costs and Expenses
 
 
 
 
 
Purchased crude oil and products

76,839

47,568

(17,108
)
107,299

Operating expenses
2

2,658

638

(27
)
3,271

Selling, general and administrative expenses
5

903

377

(70
)
1,215

Depreciation and amortization

552

170


722

Impairments

2

14


16

Taxes other than income taxes

4,122

7,223

(1
)
11,344

Accretion on discounted liabilities

14

4


18

Interest and debt expense
202

13

15

(36
)
194

Foreign currency transaction losses


23


23

Total Costs and Expenses
209

85,103

56,032

(17,242
)
124,102

Income from continuing operations before income taxes
2,846

4,377

827

(3,666
)
4,384

Provision (benefit) for income taxes
(73
)
1,322

202


1,451

Income from Continuing Operations
2,919

3,055

625

(3,666
)
2,933

Income from discontinued operations*
696


10


706

Net income
3,615

3,055

635

(3,666
)
3,639

Less: net income attributable to noncontrolling interests


24


24

Net Income Attributable to Phillips 66
$
3,615

3,055

611

(3,666
)
3,615

 
 
 
 
 
 
Comprehensive Income
$
3,553

2,993

546

(3,515
)
3,577

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


5


5




 
Millions of Dollars
 
September 30, 2015
Balance Sheet
Phillips 66

Phillips 66 Company

All Other Subsidiaries

Consolidating Adjustments

Total Consolidated

Assets
 
 
 
 
 
Cash and cash equivalents
$

984

3,838


4,822

Accounts and notes receivable
15

3,438

2,297

(552
)
5,198

Inventories

2,698

1,690


4,388

Prepaid expenses and other current assets

395

246


641

Total Current Assets
15

7,515

8,071

(552
)
15,049

Investments and long-term receivables
32,970

22,799

5,729

(50,897
)
10,601

Net properties, plants and equipment

12,479

6,778


19,257

Goodwill

3,040

235


3,275

Intangibles

696

183


879

Other assets
62

146

150

(4
)
354

Total Assets
$
33,047

46,675

21,146

(51,453
)
49,415

 
 
 
 
 
 
Liabilities and Equity
 
 
 
 
 
Accounts payable
$

4,166

3,248

(552
)
6,862

Short-term debt

25

18


43

Accrued income and other taxes

408

572


980

Employee benefit obligations

415

43


458

Other accruals
144

246

142


532

Total Current Liabilities
144

5,260

4,023

(552
)
8,875

Long-term debt
7,457

162

1,289


8,908

Asset retirement obligations and accrued environmental costs

492

189


681

Deferred income taxes

4,224

1,181

(4
)
5,401

Employee benefit obligations

1,045

204


1,249

Other liabilities and deferred credits
2,223

2,570

3,035

(7,559
)
269

Total Liabilities
9,824

13,753

9,921

(8,115
)
25,383

Common stock
11,782

25,404

9,314

(34,718
)
11,782

Retained earnings
12,029

8,106

1,128

(9,263
)
12,000

Accumulated other comprehensive income (loss)
(588
)
(588
)
(55
)
643

(588
)
Noncontrolling interests


838


838

Total Liabilities and Equity
$
33,047

46,675

21,146

(51,453
)
49,415



 
Millions of Dollars
 
December 31, 2014
Balance Sheet
Phillips 66

Phillips 66 Company

All Other Subsidiaries

Consolidating Adjustments

Total Consolidated

Assets
 
 
 
 
 
Cash and cash equivalents
$

2,045

3,162


5,207

Accounts and notes receivable
14

5,069

3,274

(1,102
)
7,255

Inventories

2,026

1,371


3,397

Prepaid expenses and other current assets
9

429

399


837

Total Current Assets
23

9,569

8,206

(1,102
)
16,696

Investments and long-term receivables
30,141

18,896

4,631

(43,479
)
10,189

Net properties, plants and equipment

12,267

5,079


17,346

Goodwill

3,040

234


3,274

Intangibles

694

206


900

Other assets
60

159

121

(4
)
336

Total Assets
$
30,224

44,625

18,477

(44,585
)
48,741

 
 
 
 
 
 
Liabilities and Equity
 
 
 
 
 
Accounts payable
$

5,618

3,548

(1,102
)
8,064

Short-term debt
798

26

18


842

Accrued income and other taxes

356

522


878

Employee benefit obligations

409

53


462

Other accruals
65

242

541


848

Total Current Liabilities
863

6,651

4,682

(1,102
)
11,094

Long-term debt
7,457

159

226


7,842

Asset retirement obligations and accrued environmental costs

494

189


683

Deferred income taxes

4,240

1,255

(4
)
5,491

Employee benefit obligations

1,074

231


1,305

Other liabilities and deferred credits
285

1,919

2,126

(4,041
)
289

Total Liabilities
8,605

14,537

8,709

(5,147
)
26,704

Common stock
12,812

25,405

8,240

(33,645
)
12,812

Retained earnings
9,338

5,214

1,074

(6,317
)
9,309

Accumulated other comprehensive income (loss)
(531
)
(531
)
7

524

(531
)
Noncontrolling interests


447


447

Total Liabilities and Equity
$
30,224

44,625

18,477

(44,585
)
48,741




 
Millions of Dollars
 
Nine Months Ended September 30, 2015
Statement of Cash Flows
Phillips 66

Phillips 66 Company

All Other Subsidiaries

Consolidating Adjustments

Total Consolidated

Cash Flows From Operating Activities
 
 
 
 
 
Net cash provided by continuing operating activities
$
884

2,179

2,131

(978
)
4,216

Net cash provided by discontinued operations





Net Cash Provided by Operating Activities
884

2,179

2,131

(978
)
4,216

 
 
 
 
 
 
Cash Flows From Investing Activities
 
 
 
 
 
Capital expenditures and investments*

(925
)
(3,195
)
834

(3,286
)
Proceeds from asset dispositions

774

176

(882
)
68

Intercompany lending activities
1,938

(2,201
)
263



Advances/loans—related parties

(50
)


(50
)
Collection of advances/loans—related parties

50



50

Other

(22
)
24


2

Net cash provided by (used in) continuing investing activities
1,938

(2,374
)
(2,732
)
(48
)
(3,216
)
Net cash used in discontinued operations





Net Cash Provided by (Used in) Investing Activities
1,938

(2,374
)
(2,732
)
(48
)
(3,216
)
 
 
 
 
 
 
Cash Flows From Financing Activities
 
 
 
 
 
Issuance of debt


1,169


1,169

Repayment of debt
(800
)
(19
)
(99
)

(918
)
Issuance of common stock
(27
)



(27
)
Repurchase of common stock
(1,106
)



(1,106
)
Dividends paid on common stock
(874
)
(874
)
(64
)
938

(874
)
Distributions to controlling interests


(186
)
186


Distributions to noncontrolling interests


(30
)

(30
)
Net proceeds from issuance of Phillips 66 Partners LP common units


384


384

Other*
(15
)
27

88

(98
)
2

Net cash provided by (used in) continuing financing activities
(2,822
)
(866
)
1,262

1,026

(1,400
)
Net cash provided by (used in) discontinued operations





Net Cash Provided by (Used in) Financing Activities
(2,822
)
(866
)
1,262

1,026

(1,400
)
 
 
 
 
 
 
Effect of Exchange Rate Changes on Cash and Cash Equivalents


15


15

 
 
 
 
 
 
Net Change in Cash and Cash Equivalents

(1,061
)
676


(385
)
Cash and cash equivalents at beginning of period

2,045

3,162


5,207

Cash and Cash Equivalents at End of Period
$

984

3,838


4,822

* Includes intercompany capital contributions.

 
Millions of Dollars
 
Nine Months Ended September 30, 2014
Statement of Cash Flows
Phillips 66

Phillips 66 Company

All Other Subsidiaries

Consolidating Adjustments

Total Consolidated

Cash Flows From Operating Activities
 
 
 
 
 
Net cash provided by continuing operating activities
$
60

982

1,759

(146
)
2,655

Net cash provided by discontinued operations


2


2

Net Cash Provided by Operating Activities
60

982

1,761

(146
)
2,657

 
 
 
 
 
 
Cash Flows From Investing Activities
 
 
 
 
 
Capital expenditures and investments*

(1,747
)
(1,885
)
985

(2,647
)
Proceeds from asset dispositions

999

64

(400
)
663

Intercompany lending activities
2,937

(1,743
)
(1,194
)


Advances/loans—related parties


(3
)

(3
)
Other

(1
)
162


161

Net cash provided by (used in) continuing investing activities
2,937

(2,492
)
(2,856
)
585

(1,826
)
Net cash used in discontinued operations


(2
)

(2
)
Net Cash Provided by (Used in) Investing Activities
2,937

(2,492
)
(2,858
)
585

(1,828
)
 
 
 
 
 
 
Cash Flows From Financing Activities
 
 
 
 
 
Repayment of debt

(15
)
(15
)

(30
)
Issuance of common stock
1




1

Repurchase of common stock
(1,750
)



(1,750
)
Share exchange—PSPI transaction
(450
)



(450
)
Dividends paid on common stock
(787
)

(102
)
102

(787
)
Distributions to controlling interests


(305
)
305


Distributions to noncontrolling interests


(18
)

(18
)
Other*
(11
)
33

847

(846
)
23

Net cash provided by (used in) continuing financing activities
(2,997
)
18

407

(439
)
(3,011
)
Net cash provided by (used in) discontinued operations





Net Cash Provided by (Used in) Financing Activities
(2,997
)
18

407

(439
)
(3,011
)
 
 
 
 
 
 
Effect of Exchange Rate Changes on Cash and Cash Equivalents


(110
)

(110
)
 
 
 
 
 
 
Net Change in Cash and Cash Equivalents

(1,492
)
(800
)

(2,292
)
Cash and cash equivalents at beginning of period

2,162

3,238


5,400

Cash and Cash Equivalents at End of Period
$

670

2,438


3,108

* Includes intercompany capital contributions.
Interim Financial Information Interim Financial Information (Policies)
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.
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 consisted of the following:

 
Millions of Dollars
 
September 30
2015

 
December 31
2014

 
 
 
 
Crude oil and petroleum products
$
4,124

 
3,141

Materials and supplies
264

 
256

 
$
4,388

 
3,397

Investments, Loans and Long-Term Receivables (Tables)
Summary of Financial Information
Summarized 100 percent financial information for WRB Refining LP (WRB) and Chevron Phillips Chemical Company LLC (CPChem) was as follows:
 
 
Millions of Dollars
 
Three Months Ended
September 30
 
Nine Months Ended
September 30
 
2015

 
2014

 
2015

 
2014

 
 
 
 
 
 
 
 
Revenues
$
5,266

 
7,896

 
16,092

 
24,579

Income before income taxes
881

 
784

 
2,611

 
3,094

Net income
860

 
758

 
2,556

 
3,021

Properties, Plants and Equipment (Tables)
Properties, Plants and Equipment with Associated Accumulated Depreciation and Amortization
Our investment in PP&E, with the associated accumulated depreciation and amortization (Accum. D&A), was:

 
Millions of Dollars
 
September 30, 2015
 
December 31, 2014
 
Gross
PP&E

 
Accum.
D&A

 
Net
PP&E

 
Gross
PP&E

 
Accum.
D&A

 
Net
PP&E

 
 
 
 
 
 
 
 
 
 
 
 
Midstream
$
6,571

 
1,257

 
5,314

 
4,726

 
1,185

 
3,541

Chemicals

 

 

 

 

 

Refining
20,656

 
7,898

 
12,758

 
19,951

 
7,424

 
12,527

Marketing and Specialties
1,445

 
745

 
700

 
1,490

 
738

 
752

Corporate and Other
966

 
481

 
485

 
978

 
452

 
526

 
$
29,638

 
10,381

 
19,257

 
27,145

 
9,799

 
17,346

Earnings per Share (Tables)
Reconciliation of Basic and Diluted Earnings Per Share
 
Three Months Ended
September 30
 
Nine Months Ended
September 30
 
2015
 
2014
 
2015
 
2014
 
Basic

Diluted

 
Basic

Diluted

 
Basic

Diluted

 
Basic

Diluted

Amounts attributed to Phillips 66 Common Stockholders (millions):
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations attributable to Phillips 66
$
1,578

1,578

 
1,180

1,180

 
3,577

3,577

 
2,909

2,909

Income allocated to participating securities
(1
)

 
(2
)

 
(5
)

 
(5
)

Income from continuing operations available to common stockholders
1,577

1,578

 
1,178

1,180

 
3,572

3,577

 
2,904

2,909

Discontinued operations


 


 


 
706

706

Net Income available to common stockholders
$
1,577

1,578

 
1,178

1,180

 
3,572

3,577

 
3,610

3,615

 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding (thousands):
535,618

540,357

 
555,677

559,492

 
539,616

544,362

 
565,831

569,692

Effect of stock-based compensation
4,739

4,339

 
3,815

5,466

 
4,746

4,672

 
3,861

5,897

Weighted-average common shares outstanding—EPS
540,357

544,696

 
559,492

564,958

 
544,362

549,034

 
569,692

575,589

 
 
 
 
 
 
 
 
 
 
 
 
Earnings Per Share of Common Stock (dollars):
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations attributable to Phillips 66
$
2.92

2.90

 
2.11

2.09

 
6.56

6.52

 
5.10

5.05

Discontinued operations


 


 


 
1.24

1.23

Earnings Per Share
$
2.92

2.90

 
2.11

2.09

 
6.56

6.52

 
6.34

6.28

Derivatives and Financial Instruments (Tables)
The following table indicates the balance sheet line items that include the fair values of commodity derivative assets and liabilities presented net (i.e., commodity derivative assets and liabilities with the same counterparty are netted where the right of setoff exists); however, the balances in the following table are presented gross. For information on the impact of counterparty netting and collateral netting, see Note 13—Fair Value Measurements.

 
Millions of Dollars
 
September 30
2015

 
December 31
2014

Assets
 
 
 
Accounts and notes receivable
$
(1
)
 
(1
)
Prepaid expenses and other current assets
1,770

 
3,839

Other assets
25

 
29

Liabilities
 
 
 
Other accruals
1,657

 
3,472

Other liabilities and deferred credits
21

 
1

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


The gains (losses) incurred from commodity derivatives, and the line items where they appear on our consolidated statement of income, were:
 
 
Millions of Dollars
 
Three Months Ended
September 30
 
Nine Months Ended
September 30
 
2015

 
2014

 
2015

 
2014

 
 
 
 
 
 
 
 
Sales and other operating revenues
$
195

 
179

 
21

 
208

Equity in earnings of affiliates

 
6

 

 
4

Other income
12

 
(3
)
 
59

 
12

Purchased crude oil and products
117

 
71

 
66

 
28

Hedge accounting has not been used for any item in the table.
 
Open Position
Long/(Short)
 
September 30
2015

 
December 31
2014

Commodity
 
 
 
Crude oil, refined products and NGL (millions of barrels)
(29
)
 
(11
)
Fair Value Measurements (Tables)
The carrying values and fair values by hierarchy of our material financial instruments and commodity forward contracts, either carried or disclosed at fair value, including any effects of netting derivative assets with liabilities and netting collateral due to right of setoff or master netting agreements, were:

 
Millions of Dollars
 
September 30, 2015
 
Fair Value Hierarchy
 
Total Fair Value of Gross Assets & Liabilities

Effect of Counterparty Netting

Effect of Collateral Netting

Difference in Carrying Value and Fair Value

Net Carrying Value Presented on the Balance Sheet

Cash Collateral Received or Paid, Not Offset on Balance Sheet

 
Level 1

 
Level 2

 
Level 3

Commodity Derivative Assets
 
 
 
 
 
 
 
 
 
 
 
 
Exchange-cleared instruments
$
979

 
738

 

 
1,717

(1,588
)
(10
)

119

1

OTC instruments

 
12

 

 
12

(5
)


7


Physical forward contracts*

 
63

 
2

 
65

(4
)


61


Rabbi trust assets
80

 

 

 
80

N/A

N/A


80

N/A

 
$
1,059

 
813

 
2

 
1,874

(1,597
)
(10
)

267

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity Derivative Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Exchange-cleared instruments
$
979

 
660

 

 
1,639

(1,588
)
(50
)

1

1

OTC instruments

 
9

 

 
9

(5
)


4


Physical forward contracts*

 
30

 

 
30

(4
)


26


Floating-rate debt
50

 

 

 
50

N/A

N/A


50

N/A

Fixed-rate debt, excluding capital leases**

 
8,793

 

 
8,793

N/A

N/A

(106
)
8,687

N/A

 
$
1,029

 
9,492

 

 
10,521

(1,597
)
(50
)
(106
)
8,768


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


 
Millions of Dollars
 
December 31, 2014
 
Fair Value Hierarchy
 
Total Fair Value of Gross Assets & Liabilities

Effect of Counterparty Netting

Effect of Collateral Netting

Difference in Carrying Value and Fair Value

Net Carrying Value Presented on the Balance Sheet

Cash Collateral Received or Paid, Not Offset on Balance Sheet

 
Level 1

 
Level 2

 
Level 3

 
Commodity Derivative Assets
 
 
 
 
 
 
 
 
 
 
 
 
Exchange-cleared instruments
$
2,058

 
1,525

 

 
3,583

(3,255
)
(225
)

103


OTC instruments

 
24

 

 
24

(14
)


10


Physical forward contracts*

 
253

 
7

 
260

(38
)


222


Rabbi trust assets
76

 

 

 
76

N/A

N/A


76

N/A

 
$
2,134

 
1,802

 
7

 
3,943

(3,307
)
(225
)

411



 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity Derivative Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Exchange-cleared instruments
$
1,833

 
1,422

 

 
3,255

(3,255
)




OTC instruments

 
29

 

 
29

(14
)


15


Physical forward contracts*

 
189

 

 
189

(38
)


151


Floating-rate debt
68

 

 

 
68

N/A

N/A


68

N/A

Fixed-rate debt, excluding capital leases**

 
8,806

 

 
8,806

N/A

N/A

(400
)
8,406

N/A

 
$
1,901

 
10,446

 

 
12,347

(3,307
)

(400
)
8,640


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

The 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 nine-month period ended September 30, 2014:

 
Millions of Dollars
 
 
 
Fair Value
Measurements Using
 
 
 
Fair Value*

 
Level 1
Inputs

 
Level 2
Inputs

 
Level 3
Inputs

 
Before-
Tax Loss

September 30, 2014
 
 
 
 
 
 
 
 
 
Net asset disposal group (held for sale)
$
72

 
72

 

 

 
12

* Represents the fair value at the time of the impairment.
Employee Benefit Plans (Tables)
Components of Net Periodic Benefit Cost
The components of net periodic benefit cost for the three and nine months ended September 30, 2015 and 2014, were as follows:
 
Millions of Dollars
 
Pension Benefits
 
Other Benefits
 
2015
 
2014
 
2015

 
2014

 
U.S.

 
Int’l.

 
U.S.

 
Int’l.

 
 
 
 
Components of Net Periodic Benefit Cost
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
32

 
9

 
30

 
9

 
1

 
1

Interest cost
27

 
7

 
27

 
9

 
2

 
2

Expected return on plan assets
(35
)
 
(9
)
 
(35
)
 
(9
)
 

 

Amortization of prior service cost

 

 
1

 

 

 

Recognized net actuarial loss
19

 
4

 
10

 
3

 

 

Settlements
75

 

 

 

 

 

Net periodic benefit cost
$
118


11


33


12


3


3

 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
94

 
29

 
91

 
29

 
5

 
5

Interest cost
81

 
21

 
81

 
27

 
6

 
6

Expected return on plan assets
(105
)
 
(28
)
 
(106
)
 
(28
)
 

 

Amortization of prior service cost (credit)
2

 
(1
)
 
2

 
(1
)
 
(1
)
 
(1
)
Recognized net actuarial loss (gain)
56

 
12

 
30

 
9

 
(1
)
 
(1
)
Settlements
76

 

 

 

 

 

Net periodic benefit cost
$
204

 
33

 
98

 
36

 
9

 
9

Accumulated Other Comprehensive Income (Loss) (Tables)
Summary of Changes in and Reclassifications Out of Accumulated Other Comprehensive Income (Loss) by Component
The following table depicts changes in accumulated other comprehensive income (loss) by component, as well as detail on reclassifications out of accumulated other comprehensive income (loss):
 
 
Millions of Dollars
 
Defined Benefit Plans

 
Foreign Currency Translation

 
Hedging

 
Accumulated Other Comprehensive Income (Loss)

 
 
 
 
 
 
 
 
December 31, 2013
$
(404
)
 
443

 
(2
)
 
37

Other comprehensive income (loss) before reclassifications
6

 
(97
)
 

 
(91
)
Amounts reclassified from accumulated other comprehensive income (loss)*
 
 
 
 
 
 
 
Amortization of defined benefit plan items**
 
 
 
 
 
 
 
Actuarial losses
29

 

 

 
29

Net current period other comprehensive income (loss)
35

 
(97
)
 

 
(62
)
September 30, 2014
$
(369
)
 
346

 
(2
)
 
(25
)
 
 
 
 
 
 
 
 
December 31, 2014
$
(696
)
 
167

 
(2
)
 
(531
)
Other comprehensive loss before reclassifications
(63
)
 
(88
)
 

 
(151
)
Amounts reclassified from accumulated other comprehensive income (loss)*
 
 
 
 
 
 


Amortization of defined benefit plan items**
 
 
 
 
 
 
 
Actuarial losses and settlements
94

 

 

 
94

Net current period other comprehensive income (loss)
31

 
(88
)
 

 
(57
)
September 30, 2015
$
(665
)
 
79

 
(2
)
 
(588
)
* There were no significant reclassifications related to foreign currency translation or hedging.
** These accumulated other comprehensive income (loss) components are included in the computation of net periodic benefit cost (see Note 14—Employee Benefit Plans, for additional information).
Related Party Transactions (Tables)
Significant Transactions with Related Parties
Significant transactions with related parties were:

 
Millions of Dollars
 
Three Months Ended
September 30
 
Nine Months Ended
September 30
 
2015

 
2014

 
2015

 
2014

 
 
 
 
 
 
 
 
Operating revenues and other income (a)
$
581

 
1,653

 
1,872

 
5,306

Purchases (b)
1,927

 
3,772

 
6,281

 
12,298

Operating expenses and selling, general and administrative expenses (c)
29

 
33

 
91

 
109

Interest expense (d)
2

 
2

 
5

 
6



In December 2014, we completed the sale of our interest in the Malaysian Refining Company Sdn. Bdh. (MRC). Accordingly, sales of crude oil to MRC and purchases of refined products from MRC are only included in the 2014 period in the table above.

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

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

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

(d)
We incurred interest expense on a note payable to MSLP.
Condensed Consolidating Financial Information (Tables)
 
Millions of Dollars
 
Three Months Ended September 30, 2015
Statement of Income
Phillips 66

Phillips 66 Company

All Other Subsidiaries

Consolidating Adjustments

Total Consolidated

Revenues and Other Income
 
 
 
 
 
Sales and other operating revenues
$

18,122

7,670


25,792

Equity in earnings of affiliates
1,637

946

89

(2,089
)
583

Net gain on dispositions


22


22

Other income

12

8


20

Intercompany revenues

264

2,556

(2,820
)

Total Revenues and Other Income
1,637

19,344

10,345

(4,909
)
26,417

 
 
 
 
 
 
Costs and Expenses
 
 
 
 
 
Purchased crude oil and products

14,210

7,138

(2,768
)
18,580

Operating expenses

887

203

(7
)
1,083

Selling, general and administrative expenses
2

339

107

(11
)
437

Depreciation and amortization

206

64


270

Impairments

1



1

Taxes other than income taxes

1,396

2,214


3,610

Accretion on discounted liabilities

4

1


5

Interest and debt expense
90

7

8

(34
)
71

Foreign currency transaction losses

1



1

Total Costs and Expenses
92

17,051

9,735

(2,820
)
24,058

Income from continuing operations before income taxes
1,545

2,293

610

(2,089
)
2,359

Provision (benefit) for income taxes
(33
)
656

144


767

Income From Continuing Operations
1,578

1,637

466

(2,089
)
1,592

Income from discontinued operations





Net income
1,578

1,637

466

(2,089
)
1,592

Less: net income attributable to noncontrolling interests


14


14

Net Income Attributable to Phillips 66
$
1,578

1,637

452

(2,089
)
1,578

 
 
 
 
 
 
Comprehensive Income
$
1,459

1,518

365

(1,869
)
1,473

 
Millions of Dollars
 
Three Months Ended September 30, 2014
Statement of Income
Phillips 66

Phillips 66 Company

All Other Subsidiaries

Consolidating Adjustments

Total Consolidated

Revenues and Other Income
 
 
 
 
 
Sales and other operating revenues
$

27,700

12,717


40,417

Equity in earnings of affiliates
1,225

816

87

(1,617
)
511

Net gain on dispositions


109


109

Other income

3

8


11

Intercompany revenues

749

4,757

(5,506
)

Total Revenues and Other Income
1,225

29,268

17,678

(7,123
)
41,048

 
 
 
 
 
 
Costs and Expenses
 
 
 
 
 
Purchased crude oil and products

24,785

14,272

(5,455
)
33,602

Operating expenses

893

221

(10
)
1,104

Selling, general and administrative expenses

301

122

(22
)
401

Depreciation and amortization

189

60


249

Impairments


12


12

Taxes other than income taxes

1,405

2,470

(1
)
3,874

Accretion on discounted liabilities

5

1


6

Interest and debt expense
69

3

6

(18
)
60

Foreign currency transaction losses


13


13

Total Costs and Expenses
69

27,581

17,177

(5,506
)
39,321

Income from continuing operations before income taxes
1,156

1,687

501

(1,617
)
1,727

Provision (benefit) for income taxes
(24
)
462

100


538

Income From Continuing Operations
1,180

1,225

401

(1,617
)
1,189

Income from discontinued operations





Net income
1,180

1,225

401

(1,617
)
1,189

Less: net income attributable to noncontrolling interests


9


9

Net Income Attributable to Phillips 66
$
1,180

1,225

392

(1,617
)
1,180

 
 
 
 
 
 
Comprehensive Income
$
969

1,014

178

(1,183
)
978

 
Millions of Dollars
 
Nine Months Ended September 30, 2015
Statement of Income
Phillips 66

Phillips 66 Company

All Other Subsidiaries

Consolidating Adjustments

Total Consolidated

Revenues and Other Income
 
 
 
 
 
Sales and other operating revenues
$

53,612

23,470


77,082

Equity in earnings (losses) of affiliates
3,760

2,362

(13
)
(4,663
)
1,446

Net gain (loss) on dispositions

(115
)
398


283

Other income

77

32


109

Intercompany revenues

753

7,699

(8,452
)

Total Revenues and Other Income
3,760

56,689

31,586

(13,115
)
78,920

 
 
 
 
 
 
Costs and Expenses
 
 
 
 
 
Purchased crude oil and products

42,959

22,899

(8,330
)
57,528

Operating expenses
4

2,543

704

(31
)
3,220

Selling, general and administrative expenses
5

934

311

(13
)
1,237

Depreciation and amortization

614

183


797

Impairments

3



3

Taxes other than income taxes

4,212

6,409


10,621

Accretion on discounted liabilities

12

4


16

Interest and debt expense
273

19

22

(78
)
236

Foreign currency transaction losses

1

49


50

Total Costs and Expenses
282

51,297

30,581

(8,452
)
73,708

Income from continuing operations before income taxes
3,478

5,392

1,005

(4,663
)
5,212

Provision (benefit) for income taxes
(99
)
1,632

65


1,598

Income from Continuing Operations
3,577

3,760

940

(4,663
)
3,614

Income from discontinued operations





Net income
3,577

3,760

940

(4,663
)
3,614

Less: net income attributable to noncontrolling interests


37


37

Net Income Attributable to Phillips 66
$
3,577

3,760

903

(4,663
)
3,577

 
 
 
 
 
 
Comprehensive Income
$
3,520

3,703

878

(4,544
)
3,557



 
Millions of Dollars
 
Nine Months Ended September 30, 2014
Statement of Income
Phillips 66

Phillips 66 Company

All Other Subsidiaries

Consolidating Adjustments

Total Consolidated

Revenues and Other Income
 
 
 
 
 
Sales and other operating revenues
$

85,084

41,165


126,249

Equity in earnings of affiliates
3,055

2,269

395

(3,666
)
2,053

Net gain on dispositions


125


125

Other income

43

16


59

Intercompany revenues

2,084

15,158

(17,242
)

Total Revenues and Other Income
3,055

89,480

56,859

(20,908
)
128,486

 
 
 
 
 
 
Costs and Expenses
 
 
 
 
 
Purchased crude oil and products

76,839

47,568

(17,108
)
107,299

Operating expenses
2

2,658

638

(27
)
3,271

Selling, general and administrative expenses
5

903

377

(70
)
1,215

Depreciation and amortization

552

170


722

Impairments

2

14


16

Taxes other than income taxes

4,122

7,223

(1
)
11,344

Accretion on discounted liabilities

14

4


18

Interest and debt expense
202

13

15

(36
)
194

Foreign currency transaction losses


23


23

Total Costs and Expenses
209

85,103

56,032

(17,242
)
124,102

Income from continuing operations before income taxes
2,846

4,377

827

(3,666
)
4,384

Provision (benefit) for income taxes
(73
)
1,322

202


1,451

Income from Continuing Operations
2,919

3,055

625

(3,666
)
2,933

Income from discontinued operations*
696


10


706

Net income
3,615

3,055

635

(3,666
)
3,639

Less: net income attributable to noncontrolling interests


24


24

Net Income Attributable to Phillips 66
$
3,615

3,055

611

(3,666
)
3,615

 
 
 
 
 
 
Comprehensive Income
$
3,553

2,993

546

(3,515
)
3,577

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


5


5

 
Millions of Dollars
 
September 30, 2015
Balance Sheet
Phillips 66

Phillips 66 Company

All Other Subsidiaries

Consolidating Adjustments

Total Consolidated

Assets
 
 
 
 
 
Cash and cash equivalents
$

984

3,838


4,822

Accounts and notes receivable
15

3,438

2,297

(552
)
5,198

Inventories

2,698

1,690


4,388

Prepaid expenses and other current assets

395

246


641

Total Current Assets
15

7,515

8,071

(552
)
15,049

Investments and long-term receivables
32,970

22,799

5,729

(50,897
)
10,601

Net properties, plants and equipment

12,479

6,778


19,257

Goodwill

3,040

235


3,275

Intangibles

696

183


879

Other assets
62

146

150

(4
)
354

Total Assets
$
33,047

46,675

21,146

(51,453
)
49,415

 
 
 
 
 
 
Liabilities and Equity
 
 
 
 
 
Accounts payable
$

4,166

3,248

(552
)
6,862

Short-term debt

25

18


43

Accrued income and other taxes

408

572


980

Employee benefit obligations

415

43


458

Other accruals
144

246

142


532

Total Current Liabilities
144

5,260

4,023

(552
)
8,875

Long-term debt
7,457

162

1,289


8,908

Asset retirement obligations and accrued environmental costs

492

189


681

Deferred income taxes

4,224

1,181

(4
)
5,401

Employee benefit obligations

1,045

204


1,249

Other liabilities and deferred credits
2,223

2,570

3,035

(7,559
)
269

Total Liabilities
9,824

13,753

9,921

(8,115
)
25,383

Common stock
11,782

25,404

9,314

(34,718
)
11,782

Retained earnings
12,029

8,106

1,128

(9,263
)
12,000

Accumulated other comprehensive income (loss)
(588
)
(588
)
(55
)
643

(588
)
Noncontrolling interests


838


838

Total Liabilities and Equity
$
33,047

46,675

21,146

(51,453
)
49,415



 
Millions of Dollars
 
December 31, 2014
Balance Sheet
Phillips 66

Phillips 66 Company

All Other Subsidiaries

Consolidating Adjustments

Total Consolidated

Assets
 
 
 
 
 
Cash and cash equivalents
$

2,045

3,162


5,207

Accounts and notes receivable
14

5,069

3,274

(1,102
)
7,255

Inventories

2,026

1,371


3,397

Prepaid expenses and other current assets
9

429

399


837

Total Current Assets
23

9,569

8,206

(1,102
)
16,696

Investments and long-term receivables
30,141

18,896

4,631

(43,479
)
10,189

Net properties, plants and equipment

12,267

5,079


17,346

Goodwill

3,040

234


3,274

Intangibles

694

206


900

Other assets
60

159

121

(4
)
336

Total Assets
$
30,224

44,625

18,477

(44,585
)
48,741

 
 
 
 
 
 
Liabilities and Equity
 
 
 
 
 
Accounts payable
$

5,618

3,548

(1,102
)
8,064

Short-term debt
798

26

18


842

Accrued income and other taxes

356

522


878

Employee benefit obligations

409

53


462

Other accruals
65

242

541


848

Total Current Liabilities
863

6,651

4,682

(1,102
)
11,094

Long-term debt
7,457

159

226


7,842

Asset retirement obligations and accrued environmental costs

494

189


683

Deferred income taxes

4,240

1,255

(4
)
5,491

Employee benefit obligations

1,074

231


1,305

Other liabilities and deferred credits
285

1,919

2,126

(4,041
)
289

Total Liabilities
8,605

14,537

8,709

(5,147
)
26,704

Common stock
12,812

25,405

8,240

(33,645
)
12,812

Retained earnings
9,338

5,214

1,074

(6,317
)
9,309

Accumulated other comprehensive income (loss)
(531
)
(531
)
7

524

(531
)
Noncontrolling interests


447


447

Total Liabilities and Equity
$
30,224

44,625

18,477

(44,585
)
48,741

 
Millions of Dollars
 
Nine Months Ended September 30, 2015
Statement of Cash Flows
Phillips 66

Phillips 66 Company

All Other Subsidiaries

Consolidating Adjustments

Total Consolidated

Cash Flows From Operating Activities
 
 
 
 
 
Net cash provided by continuing operating activities
$
884

2,179

2,131

(978
)
4,216

Net cash provided by discontinued operations





Net Cash Provided by Operating Activities
884

2,179

2,131

(978
)
4,216

 
 
 
 
 
 
Cash Flows From Investing Activities
 
 
 
 
 
Capital expenditures and investments*

(925
)
(3,195
)
834

(3,286
)
Proceeds from asset dispositions

774

176

(882
)
68

Intercompany lending activities
1,938

(2,201
)
263



Advances/loans—related parties

(50
)


(50
)
Collection of advances/loans—related parties

50



50

Other

(22
)
24


2

Net cash provided by (used in) continuing investing activities
1,938

(2,374
)
(2,732
)
(48
)
(3,216
)
Net cash used in discontinued operations





Net Cash Provided by (Used in) Investing Activities
1,938

(2,374
)
(2,732
)
(48
)
(3,216
)
 
 
 
 
 
 
Cash Flows From Financing Activities
 
 
 
 
 
Issuance of debt


1,169


1,169

Repayment of debt
(800
)
(19
)
(99
)

(918
)
Issuance of common stock
(27
)



(27
)
Repurchase of common stock
(1,106
)



(1,106
)
Dividends paid on common stock
(874
)
(874
)
(64
)
938

(874
)
Distributions to controlling interests


(186
)
186


Distributions to noncontrolling interests


(30
)

(30
)
Net proceeds from issuance of Phillips 66 Partners LP common units


384


384

Other*
(15
)
27

88

(98
)
2

Net cash provided by (used in) continuing financing activities
(2,822
)
(866
)
1,262

1,026

(1,400
)
Net cash provided by (used in) discontinued operations





Net Cash Provided by (Used in) Financing Activities
(2,822
)
(866
)
1,262

1,026

(1,400
)
 
 
 
 
 
 
Effect of Exchange Rate Changes on Cash and Cash Equivalents


15


15

 
 
 
 
 
 
Net Change in Cash and Cash Equivalents

(1,061
)
676


(385
)
Cash and cash equivalents at beginning of period

2,045

3,162


5,207

Cash and Cash Equivalents at End of Period
$

984

3,838


4,822

* Includes intercompany capital contributions.

 
Millions of Dollars
 
Nine Months Ended September 30, 2014
Statement of Cash Flows
Phillips 66

Phillips 66 Company

All Other Subsidiaries

Consolidating Adjustments

Total Consolidated

Cash Flows From Operating Activities
 
 
 
 
 
Net cash provided by continuing operating activities
$
60

982

1,759

(146
)
2,655

Net cash provided by discontinued operations


2


2

Net Cash Provided by Operating Activities
60

982

1,761

(146
)
2,657

 
 
 
 
 
 
Cash Flows From Investing Activities
 
 
 
 
 
Capital expenditures and investments*

(1,747
)
(1,885
)
985

(2,647
)
Proceeds from asset dispositions

999

64

(400
)
663

Intercompany lending activities
2,937

(1,743
)
(1,194
)


Advances/loans—related parties


(3
)

(3
)
Other

(1
)
162


161

Net cash provided by (used in) continuing investing activities
2,937

(2,492
)
(2,856
)
585

(1,826
)
Net cash used in discontinued operations


(2
)

(2
)
Net Cash Provided by (Used in) Investing Activities
2,937

(2,492
)
(2,858
)
585

(1,828
)
 
 
 
 
 
 
Cash Flows From Financing Activities
 
 
 
 
 
Repayment of debt

(15
)
(15
)

(30
)
Issuance of common stock
1




1

Repurchase of common stock
(1,750
)



(1,750
)
Share exchange—PSPI transaction
(450
)



(450
)
Dividends paid on common stock
(787
)

(102
)
102

(787
)
Distributions to controlling interests


(305
)
305


Distributions to noncontrolling interests


(18
)

(18
)
Other*
(11
)
33

847

(846
)
23

Net cash provided by (used in) continuing financing activities
(2,997
)
18

407

(439
)
(3,011
)
Net cash provided by (used in) discontinued operations





Net Cash Provided by (Used in) Financing Activities
(2,997
)
18

407

(439
)
(3,011
)
 
 
 
 
 
 
Effect of Exchange Rate Changes on Cash and Cash Equivalents


(110
)

(110
)
 
 
 
 
 
 
Net Change in Cash and Cash Equivalents

(1,492
)
(800
)

(2,292
)
Cash and cash equivalents at beginning of period

2,162

3,238


5,400

Cash and Cash Equivalents at End of Period
$

670

2,438


3,108

* Includes intercompany capital contributions.
Variable Interest Entities (VIEs) (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 9 Months Ended
Sep. 30, 2015
Merey Sweeny [Member]
Aug. 31, 2009
Merey Sweeny [Member]
Aug. 28, 2009
Merey Sweeny [Member]
Aug. 27, 2009
Merey Sweeny [Member]
Conocophillips [Member]
Dec. 31, 2012
Merey Sweeny [Member]
MSLP 8.85% Senior Notes [Member]
Guarantees of Joint Venture Debt [Member]
Sep. 30, 2015
Merey Sweeny [Member]
MSLP 8.85% Senior Notes [Member]
Guarantees of Joint Venture Debt [Member]
Sep. 30, 2015
Excel Paralubes [Member]
Dec. 31, 2012
Excel Paralubes [Member]
Sep. 30, 2015
Excel Paralubes [Member]
Excel 7.43% Senior Secured Bonds [Member]
Sep. 30, 2015
Excel Paralubes [Member]
Excel 7.43% Senior Secured Bonds [Member]
Guarantees of Joint Venture Debt [Member]
Dec. 31, 2012
Excel Paralubes [Member]
Excel 7.43% Senior Secured Bonds [Member]
Guarantees of Joint Venture Debt [Member]
Dec. 31, 2012
Excel Paralubes [Member]
Excel 7.43% Senior Secured Bonds [Member]
Conocophillips [Member]
Guarantees of Joint Venture Debt [Member]
Variable interest entities VIEs (Textual) [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
Additional ownership interest acquired in MSLP that is in dispute
 
50.00% 
50.00% 
 
 
 
 
 
 
 
 
 
Debt guarantee to lender of 8.85% senior notes issued by MSLP, percentage
 
 
 
 
100.00% 
 
 
 
 
 
 
 
Stated interest rate of debt issued, percentage
 
 
 
 
8.85% 
 
 
 
 
 
7.43% 
 
Maximum exposure under debt guarantee
 
 
 
 
 
$ 173 
 
 
 
$ 16 
 
 
Book value of investment
149 
 
 
 
 
 
117 
 
 
 
 
 
Percentage of ownership interest
 
 
 
50.00% 
 
 
50.00% 
 
 
 
 
 
Percentage of governance interest in Excel
 
 
 
 
 
 
50.00% 
 
 
 
 
 
Percentage of guarantee
 
 
 
 
100.00% 
 
 
 
 
50.00% 
 
50.00% 
Liquidity support guarantee of VIE shared with CoVenturer
 
 
 
 
 
 
60 
60 
 
 
 
 
Outstanding principal debt balance of Excel
 
 
 
 
 
 
 
 
32 
 
 
 
Liquidity support guarantee of Excel
 
 
 
 
 
 
$ 30 
 
 
 
 
 
Inventories (Summary of Inventory) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2015
Dec. 31, 2014
Summary of inventories
 
 
Crude oil and petroleum products
$ 4,124 
$ 3,141 
Materials and supplies
264 
256 
Inventories
$ 4,388 
$ 3,397 
Inventories (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2015
Dec. 31, 2014
Inventory Disclosure [Abstract]
 
 
Inventories valued on the last-in, first out (LIFO) basis
$ 4,021 
$ 3,004 
Estimated excess of current replacement cost over LIFO cost of inventories
$ 2,300 
$ 3,000 
Business Combinations (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
1 Months Ended 12 Months Ended
Mar. 31, 2014
Sep. 30, 2015
Dec. 31, 2014
Aug. 31, 2014
Beaumont, Texas,Crude Oil And Petroleum Products Terminal, 7.1 Million-Barrel-Storage-Capacity [Member]
Midstream Segment [Member]
bbl
Dec. 31, 2014
Series of Individually Immaterial Business Acquisitions [Member]
Dec. 31, 2014
Series of Individually Immaterial Business Acquisitions [Member]
CapitalExpendituresAndInvestments [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
Storage capacity of terminal acquired, in barrels
 
 
 
7,100,000 
 
 
Number of refineries to which facility provides utilities and other services
 
 
 
 
 
Consideration paid, net of cash acquired
 
 
 
 
 
$ 741 
PP&E provisionally recorded
 
 
 
 
471 
 
Goodwill provisionally recorded
 
3,275 
3,274 
 
232 
 
Intangible assets provisionally recorded
 
 
 
 
196 
 
Net working capital provisionally recorded
 
 
 
 
70 
 
Assumed long-term liabilities provisionally recorded
 
 
 
 
$ 109 
 
Assets Held for Sale or Sold (Narrative) (Details) (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
3 Months Ended 9 Months Ended 1 Months Ended 9 Months Ended 1 Months Ended 1 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2014
Bantry Bay Terminal [Member]
Refining [Member]
Feb. 28, 2014
Phillips Specialty Products Inc [Member]
Marketing and Specialties [Member]
Sep. 30, 2014
Phillips Specialty Products Inc [Member]
Marketing and Specialties [Member]
Sep. 30, 2015
Immingham Combined Heat and Power Plant [Member]
Marketing and Specialties [Member]
Sep. 30, 2014
Immingham Combined Heat and Power Plant [Member]
Marketing and Specialties [Member]
Jul. 31, 2014
IRELAND
Bantry Bay Terminal [Member]
Refining [Member]
Feb. 28, 2015
IRELAND
Bantry Bay Terminal [Member]
Refining [Member]
Dec. 31, 2014
Prepaid Expenses and Other Current Assets [Member]
IRELAND
Bantry Bay Terminal [Member]
Refining [Member]
Feb. 28, 2014
Share Exchange—PSPI Transaction [Member]
Phillips Specialty Products Inc [Member]
Marketing and Specialties [Member]
Assets Held for Sale or Sold (Narrative) [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
Held for sale impairment, before tax
 
 
 
$ 12 
$ 12 
 
 
 
 
$ 12 
 
 
 
Carrying value
 
 
 
 
84 
685 
 
 
 
 
68 
77 
 
Shares of Phillips 66 common stock received in exchange
 
 
14,544 
 
 
17,400 
 
 
 
 
 
 
 
PSPI before-tax gain
 
 
 
 
 
696 
696 
 
 
 
 
 
 
Cash and cash equivalents included in carrying value
 
 
 
 
 
481 
 
 
 
 
 
 
 
Net PP&E included in net carrying value
 
 
 
 
 
60 
 
 
 
 
 
 
 
Allocated goodwill included in net carrying value
 
 
 
 
 
117 
 
 
 
 
 
 
 
PSPI's cash included in net carrying value
 
 
 
450 
 
 
 
 
 
 
 
 
450 
Net gain on dispositions
$ 22 
$ 109 
$ 283 
$ 125 
 
 
 
$ 242 
$ 109 
 
 
 
 
Investments, Loans and Long-Term Receivables (Summary of Financial Information for Equity Method Investments) (Details) (WRB Refining LP And Chevron Phillips Chemical Company LLC [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
WRB Refining LP And Chevron Phillips Chemical Company LLC [Member]
 
 
 
 
Summary of financial information
 
 
 
 
Revenues
$ 5,266 
$ 7,896 
$ 16,092 
$ 24,579 
Income before income taxes
881 
784 
2,611 
3,094 
Net income
$ 860 
$ 758 
$ 2,556 
$ 3,021 
Investments, Loans and Long-Term Receivables (Narrative) (Details) (USD $)
9 Months Ended 1 Months Ended 1 Months Ended 9 Months Ended 84 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Mar. 31, 2014
WRB Refining LP [Member]
Sep. 30, 2015
WRB Refining LP [Member]
Apr. 30, 2015
Rockies Express Pipeline Llc Rex [Member]
Aug. 31, 2009
Merey Sweeny [Member]
Aug. 28, 2009
Merey Sweeny [Member]
Aug. 27, 2009
Petroleos De Venezuela S.A. (PDVSA) [Member]
Merey Sweeny [Member]
Sep. 30, 2015
Cenovus Energy Inc [Member]
WRB Refining LP [Member]
Dec. 31, 2013
Cenovus Energy Inc [Member]
WRB Refining LP [Member]
Aug. 27, 2009
Conocophillips [Member]
Merey Sweeny [Member]
Schedule of Equity Method Investments [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Percentage of ownership interest
 
 
 
50.00% 
25.00% 
 
 
 
 
 
50.00% 
Contribution to WRB Cenovus was obligated to make
 
 
 
 
 
 
 
 
 
$ 7,500,000,000 
 
Length of period of Cenovus' obligation to contribute, years
 
 
 
 
 
 
 
 
10 years 
 
 
Total distribution received
 
 
1,232,000,000 
 
 
 
 
 
 
 
 
Dividend considered an operating cash inflow
 
 
760,000,000 
 
 
 
 
 
 
 
 
Dividend considered an investing cash inflow
 
 
472,000,000 
 
 
 
 
 
 
 
 
Book value of our investment in WRB
 
 
 
2,049,000,000 
 
 
 
 
 
 
 
Basis difference in book value of our investment in WRB
 
 
 
3,235,000,000 
 
 
 
 
 
 
 
Repayments of Long-term Debt
 
 
 
 
450,000,000 
 
 
 
 
 
 
Long-term debt
 
 
 
 
2,600,000,000 
 
 
 
 
 
 
Capital Expenditures And Investments
$ 3,286,000,000 1
$ 2,647,000,000 1
 
 
$ 112,000,000 
 
 
 
 
 
 
Percentage of equity interest of others
 
 
 
 
 
 
 
50.00% 
 
 
 
Additional ownership interest acquired
 
 
 
 
 
50.00% 
50.00% 
 
 
 
 
Properties, Plants and Equipment (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2015
Dec. 31, 2014
Properties, plants and equipment with the associated accumulated depreciation and amortization
 
 
Gross PP&E
$ 29,638 
$ 27,145 
Accum D&A
10,381 
9,799 
Net PP&E
19,257 
17,346 
Midstream [Member]
 
 
Properties, plants and equipment with the associated accumulated depreciation and amortization
 
 
Gross PP&E
6,571 
4,726 
Accum D&A
1,257 
1,185 
Net PP&E
5,314 
3,541 
Refining [Member]
 
 
Properties, plants and equipment with the associated accumulated depreciation and amortization
 
 
Gross PP&E
20,656 
19,951 
Accum D&A
7,898 
7,424 
Net PP&E
12,758 
12,527 
Marketing and Specialties [Member]
 
 
Properties, plants and equipment with the associated accumulated depreciation and amortization
 
 
Gross PP&E
1,445 
1,490 
Accum D&A
745 
738 
Net PP&E
700 
752 
Corporate and Other [Member]
 
 
Properties, plants and equipment with the associated accumulated depreciation and amortization
 
 
Gross PP&E
966 
978 
Accum D&A
481 
452 
Net PP&E
$ 485 
$ 526 
Earnings per Share (Summary of Earnings Per Share Calculation) (Details) (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Basic EPS Calculation
 
 
 
 
Income from continuing operations attributable to Phillips 66
$ 1,578 
$ 1,180 
$ 3,577 
$ 2,909 
Income allocated to participating securities
(1)
(2)
(5)
(5)
Income from continuing operations available to common stockholders
1,577 
1,178 
3,572 
2,904 
Discontinued operations
   
 
 
706 
Net Income available to common stockholders
1,577 
1,178 
3,572 
3,610 
Weighted-average common shares outstanding (thousands)
535,618 
555,677 
539,616 
565,831 
Effect of stock-based compensation (thousands)
4,739 
3,815 
4,746 
3,861 
Weighted-average commons shares outstanding - EPS (thousands)
540,357 
559,492 
544,362 
569,692 
Income from continuing operations attributable to Phillips 66, per share (dollars)
$ 2.92 
$ 2.11 
$ 6.56 
$ 5.10 
Discontinued operations, per share (dollars)
 
 
 
$ 1.24 
Earnings Per Share (dollars)
$ 2.92 
$ 2.11 
$ 6.56 
$ 6.34 
Diluted EPS Calculation
 
 
 
 
Income from continuing operations available to common stockholders
1,578 
1,180 
3,577 
2,909 
Net Income available to common stockholders
$ 1,578 
$ 1,180 
$ 3,577 
$ 3,615 
Effect of stock-based compensation (thousands)
4,339 
5,466 
4,672 
5,897 
Weighted-average commons shares outstanding - EPS (thousands)
544,696 
564,958 
549,034 
575,589 
Income from continuing operations attributable to Phillips 66, per share (dollars)
$ 2.90 
$ 2.09 
$ 6.52 
$ 5.05 
Discontinued operations, per share (dollars)
 
 
 
$ 1.23 
Earnings Per Share (dollars)
$ 2.90 
$ 2.09 
$ 6.52 
$ 6.28 
Debt (Narrative) (Details) (USD $)
1 Months Ended
Sep. 30, 2015
Revolving Credit Facility [Member]
Sep. 30, 2015
5 Billion US Dollars Revolver [Member]
Revolving Credit Facility [Member]
Dec. 31, 2014
5 Billion US Dollars Revolver [Member]
Revolving Credit Facility [Member]
Sep. 30, 2015
Phillips 66 Partners Revolving Credit Facility [Member]
Revolving Credit Facility [Member]
Dec. 31, 2014
Phillips 66 Partners Revolving Credit Facility [Member]
Revolving Credit Facility [Member]
Feb. 28, 2015
Senior Notes [Member]
Mar. 31, 2015
Senior Notes [Member]
1.95% Senior Notes [Member]
Feb. 28, 2015
Senior Notes [Member]
Phillips 66 Partners 2.646% Senior Notes [Member]
Feb. 28, 2015
Senior Notes [Member]
Phillips 66 Partners 3.605% Senior Notes [Member]
Feb. 28, 2015
Senior Notes [Member]
Phillips 66 Partners 4.680% Senior Notes [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
Senior Notes repaid upon maturity
 
 
 
 
 
 
$ 800,000,000 
 
 
 
Interest Rate, Stated Percentage
 
 
 
 
 
 
1.95% 
2.646% 
3.605% 
4.68% 
Phillips 66 Partners public offering of senior notes
 
 
 
 
 
1,100,000,000 
 
300,000,000 
500,000,000 
300,000,000 
Amount of outstanding borrowings under revolving credit agreement
 
18,000,000 
 
 
 
 
 
Borrowing capacity under revolving credit agreement
 
5,000,000,000 
 
500,000,000 
 
 
 
 
 
 
Letters of credit issued
 
51,000,000 
51,000,000 
 
 
 
 
 
 
 
Aggregate total capacity available under credit facilities
$ 5,400,000,000 
 
 
 
 
 
 
 
 
 
Guarantees (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2015
Dec. 31, 2014
Sep. 30, 2015
Residual Value Guarantees [Member]
Sep. 30, 2015
Other Guarantees [Member]
Sep. 30, 2015
Indemnifications [Member]
Sep. 30, 2015
Asset Retirement Obligations And Accrued Environmental Cost [Member]
Indemnifications [Member]
Sep. 30, 2015
Maximum [Member]
Other Guarantees [Member]
Sep. 30, 2015
Merey Sweeny [Member]
MSLP 8.85% Senior Notes [Member]
Guarantees of Joint Venture Debt [Member]
Dec. 31, 2012
Merey Sweeny [Member]
MSLP 8.85% Senior Notes [Member]
Guarantees of Joint Venture Debt [Member]
Guarantees (Textual) [Abstract]
 
 
 
 
 
 
 
 
 
Percentage of guarantee
 
 
 
 
 
 
 
 
100.00% 
Maximum potential amount of future payments under the guarantees
 
 
$ 395 
$ 117 
 
 
 
$ 173 
 
Term of the guarantees, in years
 
 
 
 
 
 
9 years 
 
 
Carrying amount of indemnifications
 
 
 
 
210 
 
 
 
 
Environmental accruals included in recorded carrying amount
$ 490 
$ 496 
 
 
 
$ 105 
 
 
 
Contingencies and Commitments (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2015
Dec. 31, 2014
Contingencies and Commitments (Textual) [Abstract]
 
 
Total environmental accrual
$ 490 
$ 496 
Expected years to incur a substantial amount of expenditures
30 years 
 
Performance Guarantee [Member]
 
 
Contingencies and Commitments (Textual) [Abstract]
 
 
Letters of credit and bank guarantees
473 
 
Performance Guarantee [Member] |
Revolving Credit Facility [Member]
 
 
Contingencies and Commitments (Textual) [Abstract]
 
 
Letters of credit and bank guarantees
$ 51 
 
Derivatives and Financial Instruments (Summary of Commodity Derivative Assets and Liabilities) (Details) (Commodity Derivatives [Member], USD $)
In Millions, unless otherwise specified
Sep. 30, 2015
Dec. 31, 2014
Accounts and notes receivable [Member]
 
 
Fair value of commodity derivative assets and liabilities, without netting
 
 
Commodity derivative assets, fair value gross
$ (1)1
$ (1)1
Prepaid Expenses and Other Current Assets [Member]
 
 
Fair value of commodity derivative assets and liabilities, without netting
 
 
Commodity derivative assets, fair value gross
1,770 1
3,839 1
Other Assets [Member]
 
 
Fair value of commodity derivative assets and liabilities, without netting
 
 
Commodity derivative assets, fair value gross
25 1
29 1
Other Accruals [Member]
 
 
Fair value of commodity derivative assets and liabilities, without netting
 
 
Commodity derivative liabilities, fair value gross
1,657 1
3,472 1
Other Liabilities and Deferred Credits [Member]
 
 
Fair value of commodity derivative assets and liabilities, without netting
 
 
Commodity derivative liabilities, fair value gross
$ 21 1
$ 1 1
Derivatives and Financial Instruments (Summary of Gains/(Losses) From Commodity Derivatives) (Details) (Commodity Derivatives [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Sales and Other Operating Revenues [Member]
 
 
 
 
Summary of gains (losses) from commodity derivatives
 
 
 
 
Gains (losses) from commodity derivatives
$ 195 1
$ 179 1
$ 21 1
$ 208 1
Equity In Earnings Of Affiliates [Member]
 
 
 
 
Summary of gains (losses) from commodity derivatives
 
 
 
 
Gains (losses) from commodity derivatives
 
1
 
1
Other Income [Member]
 
 
 
 
Summary of gains (losses) from commodity derivatives
 
 
 
 
Gains (losses) from commodity derivatives
12 1
(3)1
59 1
12 1
Purchased Crude Oil and Products [Member]
 
 
 
 
Summary of gains (losses) from commodity derivatives
 
 
 
 
Gains (losses) from commodity derivatives
$ 117 1
$ 71 1
$ 66 1
$ 28 1
Derivatives and Financial Instruments (Summary of Outstanding Commodity Derivative Contracts) (Details)
Sep. 30, 2015
MMBbls
Dec. 31, 2014
MMBbls
Derivative [Line Items]
 
 
Crude oil, refined products and NGL (millions of barrels)
(29)
(11)
Derivatives and Financial Instruments (Narrative) (Details)
9 Months Ended 12 Months Ended
Sep. 30, 2015
Dec. 31, 2014
Financial instruments and derivative contracts (Textual) [Abstract]
 
 
Percentage of derivative contract volume expiring within twelve months
98.00% 
99.00% 
Fair Value Measurements (Summary of Fair Value of Derivative Assets and Liabilities and Effect of Counterparty Netting) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2015
Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Net carrying value presented on balance sheet, floating-rate debt
$ 50 
$ 68 
Difference In Carrying Value And Fair Value Liability
106 
400 
Net carrying value presented on balance sheet, fixed-rate debt, excluding capital leases
8,687 1
8,406 1
Fixed Rate Debt Excluding Capital Leases [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Difference In Carrying Value And Fair Value Liability
106 1
400 1
Carrying (Reported) Amount, Fair Value Disclosure [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Net carrying value presented on balance sheet, commodity derivative assets and investments
267 
411 
Net carrying value presented on balance sheet, commodity derivative liabilities and debt
8,768 
8,640 
Carrying (Reported) Amount, Fair Value Disclosure [Member] |
Rabbi Trust Assets [Member] |
Investments And Long-term Receivables [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Rabbi trust assets
80 
76 
Exchange-cleared Instruments [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Cash Collateral Received of Paid Not Offset on Balance Sheet
 
Cash Collateral Received of Paid Not Offset on Balance Sheet
 
Exchange-cleared Instruments [Member] |
Carrying (Reported) Amount, Fair Value Disclosure [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Net carrying value presented on balance sheet, commodity derivative assets
119 
103 
Net carrying value presented on balance sheet, commodity derivative liabilities
 
OTC Instruments [Member] |
Carrying (Reported) Amount, Fair Value Disclosure [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Net carrying value presented on balance sheet, commodity derivative assets
10 
Net carrying value presented on balance sheet, commodity derivative liabilities
15 
Physical Forward Contracts [Member] |
Carrying (Reported) Amount, Fair Value Disclosure [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Net carrying value presented on balance sheet, commodity derivative assets
61 2
222 2
Net carrying value presented on balance sheet, commodity derivative liabilities
26 2
151 2
Fair Value, Measurements, Recurring [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Effect of counterparty netting, commodity derivative assets
(1,597)
(3,307)
Effect of collateral netting, commodity derivative assets
(10)
(225)
Total assets, fair value disclosure gross
1,874 
3,943 
Effect of counterparty netting, commodity derivative liabilities
(1,597)
(3,307)
Effect of collateral netting, commodity derivative liabilities
(50)
 
Total liabilities, fair value disclosure gross
10,521 
12,347 
Fair Value, Measurements, Recurring [Member] |
Floating Rate Debt [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Debt, fair value gross
50 
68 
Fair Value, Measurements, Recurring [Member] |
Fixed Rate Debt Excluding Capital Leases [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Debt, fair value gross
8,793 1
8,806 1
Fair Value, Measurements, Recurring [Member] |
Rabbi Trust Assets [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Rabbi trust assets
80 
76 
Fair Value, Measurements, Recurring [Member] |
Exchange-cleared Instruments [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Commodity derivative assets, fair value gross
1,717 
3,583 
Effect of counterparty netting, commodity derivative assets
(1,588)
(3,255)
Effect of collateral netting, commodity derivative assets
(10)
(225)
Commodity derivative liabilities, fair value gross
1,639 
3,255 
Effect of counterparty netting, commodity derivative liabilities
(1,588)
(3,255)
Effect of collateral netting, commodity derivative liabilities
(50)
 
Fair Value, Measurements, Recurring [Member] |
OTC Instruments [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Commodity derivative assets, fair value gross
12 
24 
Effect of counterparty netting, commodity derivative assets
(5)
(14)
Commodity derivative liabilities, fair value gross
29 
Effect of counterparty netting, commodity derivative liabilities
(5)
(14)
Fair Value, Measurements, Recurring [Member] |
Physical Forward Contracts [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Commodity derivative assets, fair value gross
65 2
260 2
Effect of counterparty netting, commodity derivative assets
(4)2
(38)2
Commodity derivative liabilities, fair value gross
30 2
189 2
Effect of counterparty netting, commodity derivative liabilities
(4)2
(38)2
Fair Value, Measurements, Recurring [Member] |
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total assets, fair value disclosure gross
1,059 
2,134 
Total liabilities, fair value disclosure gross
1,029 
1,901 
Fair Value, Measurements, Recurring [Member] |
Level 1 [Member] |
Floating Rate Debt [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Debt, fair value gross
50 
68 
Fair Value, Measurements, Recurring [Member] |
Level 1 [Member] |
Rabbi Trust Assets [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Rabbi trust assets
80 
76 
Fair Value, Measurements, Recurring [Member] |
Level 1 [Member] |
Exchange-cleared Instruments [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Commodity derivative assets, fair value gross
979 
2,058 
Commodity derivative liabilities, fair value gross
979 
1,833 
Fair Value, Measurements, Recurring [Member] |
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total assets, fair value disclosure gross
813 
1,802 
Total liabilities, fair value disclosure gross
9,492 
10,446 
Fair Value, Measurements, Recurring [Member] |
Level 2 [Member] |
Fixed Rate Debt Excluding Capital Leases [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Debt, fair value gross
8,793 1
8,806 1
Fair Value, Measurements, Recurring [Member] |
Level 2 [Member] |
Exchange-cleared Instruments [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Commodity derivative assets, fair value gross
738 
1,525 
Commodity derivative liabilities, fair value gross
660 
1,422 
Fair Value, Measurements, Recurring [Member] |
Level 2 [Member] |
OTC Instruments [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Commodity derivative assets, fair value gross
12 
24 
Commodity derivative liabilities, fair value gross
29 
Fair Value, Measurements, Recurring [Member] |
Level 2 [Member] |
Physical Forward Contracts [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Commodity derivative assets, fair value gross
63 2
253 2
Commodity derivative liabilities, fair value gross
30 2
189 2
Fair Value, Measurements, Recurring [Member] |
Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Total assets, fair value disclosure gross
Fair Value, Measurements, Recurring [Member] |
Level 3 [Member] |
Physical Forward Contracts [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Commodity derivative assets, fair value gross
$ 2 2
$ 7 2
Fair Value Measurements (Summary of Nonrecurring Fair Value Measurements) (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
Before-Tax Loss
$ 12 
Fair Value, Measurements, Nonrecurring [Member]
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
Net asset disposal group (held for sale)
72 
Fair Value, Measurements, Nonrecurring [Member] |
Level 1 [Member]
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
Net asset disposal group (held for sale)
$ 72 
Fair Value Measurements (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2014
Sep. 30, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Asset value transferred into Level 1, as measured from the beginning of the reporting period
 
$ 316 
Liability value transferred into Level 1, as measured from the beginning of the reporting period
 
324 
Before-Tax Loss
12 
 
Bantry Bay Terminal [Member] |
Refining [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Carrying amount
84 
 
Before-Tax Loss
$ 12 
 
Employee Benefit Plans (Summary of Components of Net Periodic Benefit Cost) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
United States Pension Plans of U S Entity, Defined Benefit [Member]
 
 
 
 
Components of Net Periodic Benefit Cost
 
 
 
 
Service cost
$ 32 
$ 30 
$ 94 
$ 91 
Interest cost
27 
27 
81 
81 
Expected return on plan assets
(35)
(35)
(105)
(106)
Amortization of prior service cost (credit)
 
Recognized net actuarial loss (gain)
19 
10 
56 
30 
Settlements
75 
 
76 
 
Net periodic benefit cost
118 
33 
204 
98 
Foreign Pension Plans, Defined Benefit [Member]
 
 
 
 
Components of Net Periodic Benefit Cost
 
 
 
 
Service cost
29 
29 
Interest cost
21 
27 
Expected return on plan assets
(9)
(9)
(28)
(28)
Amortization of prior service cost (credit)
 
 
(1)
(1)
Recognized net actuarial loss (gain)
12 
Net periodic benefit cost
11 
12 
33 
36 
Other Postretirement Benefit Plans, Defined Benefit [Member]
 
 
 
 
Components of Net Periodic Benefit Cost
 
 
 
 
Service cost
Interest cost
Amortization of prior service cost (credit)
 
 
(1)
(1)
Recognized net actuarial loss (gain)
 
 
(1)
(1)
Net periodic benefit cost
$ 3 
$ 3 
$ 9 
$ 9 
Employee Benefit Plans (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2015
Employee Benefit Plans (Textual) [Abstract]
 
 
Decrease to other comprehensive income
$ 116 
$ 116 
United States Pension Plans of U S Entity, Defined Benefit [Member]
 
 
Employee Benefit Plans (Textual) [Abstract]
 
 
Company contributions to plans
 
225 
Additional contributions expected to be made during remainder of 2015
 
Settlements
75 
76 
Qualified Pension Plan [Member]
 
 
Employee Benefit Plans (Textual) [Abstract]
 
 
Settlements
73 
 
Increase in net pension liability
 
116 
Decrease to other comprehensive income
 
116 
Non-qualified Supplement Retirement Plan[Member]
 
 
Employee Benefit Plans (Textual) [Abstract]
 
 
Settlements
 
Foreign Pension Plans, Defined Benefit [Member]
 
 
Employee Benefit Plans (Textual) [Abstract]
 
 
Company contributions to plans
 
52 
Additional contributions expected to be made during remainder of 2015
 
$ 10 
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
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Defined Benefit Plans [Member]
Sep. 30, 2014
Defined Benefit Plans [Member]
Sep. 30, 2015
Foreign Curency Translation [Member]
Sep. 30, 2014
Foreign Curency Translation [Member]
Sep. 30, 2015
Hedging [Member]
Dec. 31, 2014
Hedging [Member]
Sep. 30, 2014
Hedging [Member]
Dec. 31, 2013
Hedging [Member]
Amounts reclassified from accumulated other comprehensive income (loss)
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated other comprehensive income (loss), beginning balance
 
 
$ (531)
$ 37 
$ (696)
$ (404)
$ 167 
$ 443 
$ (2)
$ (2)
$ (2)
$ (2)
Other comprehensive income before reclassifications
 
 
(151)
(91)
(63)
(88)
(97)
 
 
 
 
Actuarial losses and settlements
 
 
94 1
29 1
94 1
29 1
 
 
 
 
 
 
Other Comprehensive Loss, Net of Tax
(119)
(211)
(57)
(62)
31 
35 
(88)
(97)
 
 
 
 
Accumulated other comprehensive income (loss), ending balance
$ (588)
$ (25)
$ (588)
$ (25)
$ (665)
$ (369)
$ 79 
$ 346 
$ (2)
$ (2)
$ (2)
$ (2)
Cash Flow Information (Narrative) (Details) (Phillips Specialty Products Inc [Member], USD $)
Share data in Millions, unless otherwise specified
1 Months Ended
Feb. 28, 2014
Phillips Specialty Products Inc [Member]
 
Noncash or Part Noncash Divestitures [Line Items]
 
Noncash portion of net assets surrendered in exchange
$ 204,000,000 
Number of shares of Phillips 66 common stock received in exchange
17.4 
Fair value of shares at time of the exchange
$ 1,350,000,000 
Income Taxes (Narrative) (Details)
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Income Taxes (Textual) [Abstract]
 
 
 
 
Effective tax rate, percent
33.00% 
31.00% 
31.00% 
33.00% 
Federal statutory tax rate, percent
 
 
35.00% 
 
Phillips 66 Partners LP (Narrative) (Details) (USD $)
In Millions, except Share data, unless otherwise specified
9 Months Ended 1 Months Ended 3 Months Ended
Sep. 30, 2015
Dec. 31, 2014
Sep. 30, 2015
Phillips 66 Partners LP [Member]
Sep. 30, 2015
Phillips 66 Partners LP [Member]
Feb. 28, 2015
Phillips 66 Partners LP [Member]
Common Units [Member]
Sep. 30, 2015
Noncontrolling Interest [Member]
Phillips 66 Partners LP [Member]
Mar. 31, 2015
Phillips 66 Partners LP [Member]
Explorer Pipeline Company [Member]
Mar. 31, 2015
Phillips 66 Partners LP [Member]
DCP Sand Hills Pipeline, LLC [Member]
Mar. 31, 2015
Phillips 66 Partners LP [Member]
DCP Southern Hills Pipeline, LLC [Member]
Mar. 31, 2015
Phillips 66 Partners LP [Member]
ExplorerPipelineCompanyDcpSandHillsPipelineLlcDcpSouthernHillsPipelineLlc [Member]
Mar. 31, 2015
Common And General Partner Units [Member]
Phillips 66 Partners LP [Member]
ExplorerPipelineCompanyDcpSandHillsPipelineLlcDcpSouthernHillsPipelineLlc [Member]
Feb. 28, 2015
Senior Notes [Member]
Feb. 28, 2015
Senior Notes [Member]
Phillips 66 Partners LP [Member]
Subsidiary or Equity Method Investee [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity interests contributed, percentage
 
 
 
 
 
 
0.195 
0.333 
0.333 
 
 
 
 
Total consideration for contributed assets
 
 
 
 
 
 
 
 
 
$ 1,010 
 
 
 
Cash received for contributed assets
 
 
 
 
 
 
 
 
 
880 
 
 
 
Aggregate fair value of units received
 
 
 
 
 
 
 
 
 
 
130 
 
 
Public offering of common units
 
 
 
 
5,250,000 
 
 
 
 
 
 
 
 
Public offering price, per share
 
 
 
 
$ 75.50 
 
 
 
 
 
 
 
 
Partners' Capital Account, Public Sale of Units Net of Offering Costs
 
 
 
 
384 
 
 
 
 
 
 
 
 
Phillips 66 Partners public offering of senior notes
 
 
 
 
 
 
 
 
 
 
 
1,100 
1,100 
Limited partnership interest in Phillips 66 Partners, percentage
 
 
69.00% 
 
 
 
 
 
 
 
 
 
 
General partnership interest in Phillips 66 Partners, percentage
 
 
2.00% 
 
 
 
 
 
 
 
 
 
 
Limited partner interest in Phillips 66 Partners owned by public, percentage
 
 
 
29.00% 
 
 
 
 
 
 
 
 
 
Public's ownership interest in Phillips 66 Partners reflected as a noncontrolling interest
838 
447 
 
 
 
805 
 
 
 
 
 
 
 
Equity investments
 
 
 
858 
 
 
 
 
 
 
 
 
 
Net properties, plants and equipment
$ 19,257 
$ 17,346 
 
$ 489 
 
 
 
 
 
 
 
 
 
New Accounting Standards New Accounting Standards (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2015
New Accounting Standards [Abstract]
 
Deferred Finance Costs, Noncurrent, Net
$ 55 
Subsequent Event (Narrative) (Details) (Subsequent Event [Member], DCP Midstream [Member], USD $)
In Billions, unless otherwise specified
1 Months Ended
Oct. 30, 2015
Subsequent Event [Member] |
DCP Midstream [Member]
 
Subsequent Event [Line Items]
 
Cash contribution
$ 1.5 
Percentage of ownership interest
50.00% 
Condensed Consolidating Financial Information (Condensed Consolidating Statement of Income) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Revenues and Other Income
 
 
 
 
Sales and other operating revenues
$ 25,792 1
$ 40,417 1
$ 77,082 1
$ 126,249 1
Equity in earnings (losses) of affiliates
583 
511 
1,446 
2,053 
Net gain (loss) on dispositions
22 
109 
283 
125 
Other income
20 
11 
109 
59 
Total Revenues and Other Income
26,417 
41,048 
78,920 
128,486 
Cost And Expenses
 
 
 
 
Purchased crude oil and products
18,580 
33,602 
57,528 
107,299 
Operating expenses
1,083 
1,104 
3,220 
3,271 
Selling, general and administrative expenses
437 
401 
1,237 
1,215 
Depreciation and amortization
270 
249 
797 
722 
Impairments
12 
16 
Taxes other than income taxes
3,610 1
3,874 1
10,621 1
11,344 1
Accretion on discounted liabilities
16 
18 
Interest and debt expense
71 
60 
236 
194 
Foreign currency transaction losses
13 
50 
23 
Total Costs and Expenses
24,058 
39,321 
73,708 
124,102 
Income from continuing operations before income taxes
2,359 
1,727 
5,212 
4,384 
Provision (benefit) for income taxes
767 
538 
1,598 
1,451 
Income From Continuing Operations
1,592 
1,189 
3,614 
2,933 
Income from discontinued operations
 
 
 
706 2 3
Net income
1,592 
1,189 
3,614 
3,639 
Less: net income attributable to noncontrolling interests
14 
37 
24 
Net Income Attributable to Phillips 66
1,578 
1,180 
3,577 
3,615 
Comprehensive Income
1,473 
978 
3,557 
3,577 
Phillips 66 [Member]
 
 
 
 
Revenues and Other Income
 
 
 
 
Equity in earnings (losses) of affiliates
1,637 
1,225 
3,760 
3,055 
Total Revenues and Other Income
1,637 
1,225 
3,760 
3,055 
Cost And Expenses
 
 
 
 
Operating expenses
 
 
Selling, general and administrative expenses
 
Interest and debt expense
90 
69 
273 
202 
Total Costs and Expenses
92 
69 
282 
209 
Income from continuing operations before income taxes
1,545 
1,156 
3,478 
2,846 
Provision (benefit) for income taxes
(33)
(24)
(99)
(73)
Income From Continuing Operations
1,578 
1,180 
3,577 
2,919 
Income from discontinued operations
 
 
 
696 3
Net income
1,578 
1,180 
3,577 
3,615 
Net Income Attributable to Phillips 66
1,578 
1,180 
3,577 
3,615 
Comprehensive Income
1,459 
969 
3,520 
3,553 
Phillips 66 Company [Member]
 
 
 
 
Revenues and Other Income
 
 
 
 
Equity in earnings (losses) of affiliates
946 
816 
2,362 
2,269 
Net gain (loss) on dispositions
 
 
(115)
 
Other income
12 
77 
43 
Total Revenues and Other Income
19,344 
29,268 
56,689 
89,480 
Cost And Expenses
 
 
 
 
Purchased crude oil and products
14,210 
24,785 
42,959 
76,839 
Operating expenses
887 
893 
2,543 
2,658 
Selling, general and administrative expenses
339 
301 
934 
903 
Depreciation and amortization
206 
189 
614 
552 
Impairments
 
Taxes other than income taxes
1,396 
1,405 
4,212 
4,122 
Accretion on discounted liabilities
12 
14 
Interest and debt expense
19 
13 
Foreign currency transaction losses
 
 
Total Costs and Expenses
17,051 
27,581 
51,297 
85,103 
Income from continuing operations before income taxes
2,293 
1,687 
5,392 
4,377 
Provision (benefit) for income taxes
656 
462 
1,632 
1,322 
Income From Continuing Operations
1,637 
1,225 
3,760 
3,055 
Net income
1,637 
1,225 
3,760 
3,055 
Net Income Attributable to Phillips 66
1,637 
1,225 
3,760 
3,055 
Comprehensive Income
1,518 
1,014 
3,703 
2,993 
All Other Subsidiaries [Member]
 
 
 
 
Revenues and Other Income
 
 
 
 
Equity in earnings (losses) of affiliates
89 
87 
(13)
395 
Net gain (loss) on dispositions
22 
109 
398 
125 
Other income
32 
16 
Total Revenues and Other Income
10,345 
17,678 
31,586 
56,859 
Cost And Expenses
 
 
 
 
Purchased crude oil and products
7,138 
14,272 
22,899 
47,568 
Operating expenses
203 
221 
704 
638 
Selling, general and administrative expenses
107 
122 
311 
377 
Depreciation and amortization
64 
60 
183 
170 
Impairments
 
12 
 
14 
Taxes other than income taxes
2,214 
2,470 
6,409 
7,223 
Accretion on discounted liabilities
Interest and debt expense
22 
15 
Foreign currency transaction losses
 
13 
49 
23 
Total Costs and Expenses
9,735 
17,177 
30,581 
56,032 
Income from continuing operations before income taxes
610 
501 
1,005 
827 
Provision (benefit) for income taxes
144 
100 
65 
202 
Income From Continuing Operations
466 
401 
940 
625 
Income from discontinued operations
 
 
 
10 3
Net income
466 
401 
940 
635 
Less: net income attributable to noncontrolling interests
14 
37 
24 
Net Income Attributable to Phillips 66
452 
392 
903 
611 
Comprehensive Income
365 
178 
878 
546 
Reportable Legal Entities [Member] |
Phillips 66 Company [Member]
 
 
 
 
Revenues and Other Income
 
 
 
 
Sales and other operating revenues
18,122 
27,700 
53,612 
85,084 
Reportable Legal Entities [Member] |
All Other Subsidiaries [Member]
 
 
 
 
Revenues and Other Income
 
 
 
 
Sales and other operating revenues
7,670 
12,717 
23,470 
41,165 
Consolidating Adjustments [Member]
 
 
 
 
Revenues and Other Income
 
 
 
 
Sales and other operating revenues
(2,820)
(5,506)
(8,452)
(17,242)
Equity in earnings (losses) of affiliates
(2,089)
(1,617)
(4,663)
(3,666)
Total Revenues and Other Income
(4,909)
(7,123)
(13,115)
(20,908)
Cost And Expenses
 
 
 
 
Purchased crude oil and products
(2,768)
(5,455)
(8,330)
(17,108)
Operating expenses
(7)
(10)
(31)
(27)
Selling, general and administrative expenses
(11)
(22)
(13)
(70)
Taxes other than income taxes
 
(1)
 
(1)
Interest and debt expense
(34)
(18)
(78)
(36)
Total Costs and Expenses
(2,820)
(5,506)
(8,452)
(17,242)
Income from continuing operations before income taxes
(2,089)
(1,617)
(4,663)
(3,666)
Income From Continuing Operations
(2,089)
(1,617)
(4,663)
(3,666)
Net income
(2,089)
(1,617)
(4,663)
(3,666)
Net Income Attributable to Phillips 66
(2,089)
(1,617)
(4,663)
(3,666)
Comprehensive Income
(1,869)
(1,183)
(4,544)
(3,515)
Consolidating Adjustments [Member] |
Phillips 66 Company [Member]
 
 
 
 
Revenues and Other Income
 
 
 
 
Sales and other operating revenues
(264)
(749)
(753)
(2,084)
Consolidating Adjustments [Member] |
All Other Subsidiaries [Member]
 
 
 
 
Revenues and Other Income
 
 
 
 
Sales and other operating revenues
$ (2,556)
$ (4,757)
$ (7,699)
$ (15,158)
Condensed Consolidating Financial Information (Condensed Consolidating Balance Sheet) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2015
Dec. 31, 2014
Sep. 30, 2014
Dec. 31, 2013
Assets [Abstract]
 
 
 
 
Cash and cash equivalents
$ 4,822 
$ 5,207 
$ 3,108 
$ 5,400 
Accounts and notes receivable
5,198 
7,255 
 
 
Inventories
4,388 
3,397 
 
 
Prepaid expenses and other current assets
641 
837 
 
 
Total Current Assets
15,049 
16,696 
 
 
Investments and long-term receivables
10,601 
10,189 
 
 
Net properties, plants and equipment
19,257 
17,346 
 
 
Goodwill
3,275 
3,274 
 
 
Intangibles
879 
900 
 
 
Other assets
354 
336 
 
 
Total Assets
49,415 
48,741 
 
 
Liabilities and Equity [Abstract]
 
 
 
 
Accounts payable
6,862 
8,064 
 
 
Short-term debt
43 
842 
 
 
Accrued income and other taxes
980 
878 
 
 
Employee benefit obligations
458 
462 
 
 
Other accruals
532 
848 
 
 
Total Current Liabilities
8,875 
11,094 
 
 
Long-term debt
8,908 
7,842 
 
 
Asset retirement obligations and accrued environmental costs
681 
683 
 
 
Deferred income taxes
5,401 
5,491 
 
 
Employee benefit obligations
1,249 
1,305 
 
 
Other liabilities and deferred credits
269 
289 
 
 
Total Liabilities
25,383 
26,704 
 
 
Common stock
11,782 
12,812 
 
 
Retained earnings
12,000 
9,309 
 
 
Accumulated other comprehensive income (loss)
(588)
(531)
(25)
37 
Noncontrolling interests
838 
447 
 
 
Total Liabilities and Equity
49,415 
48,741 
 
 
Phillips 66 [Member]
 
 
 
 
Assets [Abstract]
 
 
 
 
Accounts and notes receivable
15 
14 
 
 
Prepaid expenses and other current assets
 
 
 
Total Current Assets
15 
23 
 
 
Investments and long-term receivables
32,970 
30,141 
 
 
Other assets
62 
60 
 
 
Total Assets
33,047 
30,224 
 
 
Liabilities and Equity [Abstract]
 
 
 
 
Short-term debt
 
798 
 
 
Other accruals
144 
65 
 
 
Total Current Liabilities
144 
863 
 
 
Long-term debt
7,457 
7,457 
 
 
Other liabilities and deferred credits
2,223 
285 
 
 
Total Liabilities
9,824 
8,605 
 
 
Common stock
11,782 
12,812 
 
 
Retained earnings
12,029 
9,338 
 
 
Accumulated other comprehensive income (loss)
(588)
(531)
 
 
Total Liabilities and Equity
33,047 
30,224 
 
 
Phillips 66 Company [Member]
 
 
 
 
Assets [Abstract]
 
 
 
 
Cash and cash equivalents
984 
2,045 
670 
2,162 
Accounts and notes receivable
3,438 
5,069 
 
 
Inventories
2,698 
2,026 
 
 
Prepaid expenses and other current assets
395 
429 
 
 
Total Current Assets
7,515 
9,569 
 
 
Investments and long-term receivables
22,799 
18,896 
 
 
Net properties, plants and equipment
12,479 
12,267 
 
 
Goodwill
3,040 
3,040 
 
 
Intangibles
696 
694 
 
 
Other assets
146 
159 
 
 
Total Assets
46,675 
44,625 
 
 
Liabilities and Equity [Abstract]
 
 
 
 
Accounts payable
4,166 
5,618 
 
 
Short-term debt
25 
26 
 
 
Accrued income and other taxes
408 
356 
 
 
Employee benefit obligations
415 
409 
 
 
Other accruals
246 
242 
 
 
Total Current Liabilities
5,260 
6,651 
 
 
Long-term debt
162 
159 
 
 
Asset retirement obligations and accrued environmental costs
492 
494 
 
 
Deferred income taxes
4,224 
4,240 
 
 
Employee benefit obligations
1,045 
1,074 
 
 
Other liabilities and deferred credits
2,570 
1,919 
 
 
Total Liabilities
13,753 
14,537 
 
 
Common stock
25,404 
25,405 
 
 
Retained earnings
8,106 
5,214 
 
 
Accumulated other comprehensive income (loss)
(588)
(531)
 
 
Total Liabilities and Equity
46,675 
44,625 
 
 
All Other Subsidiaries [Member]
 
 
 
 
Assets [Abstract]
 
 
 
 
Cash and cash equivalents
3,838 
3,162 
2,438 
3,238 
Accounts and notes receivable
2,297 
3,274 
 
 
Inventories
1,690 
1,371 
 
 
Prepaid expenses and other current assets
246 
399 
 
 
Total Current Assets
8,071 
8,206 
 
 
Investments and long-term receivables
5,729 
4,631 
 
 
Net properties, plants and equipment
6,778 
5,079 
 
 
Goodwill
235 
234 
 
 
Intangibles
183 
206 
 
 
Other assets
150 
121 
 
 
Total Assets
21,146 
18,477 
 
 
Liabilities and Equity [Abstract]
 
 
 
 
Accounts payable
3,248 
3,548 
 
 
Short-term debt
18 
18 
 
 
Accrued income and other taxes
572 
522 
 
 
Employee benefit obligations
43 
53 
 
 
Other accruals
142 
541 
 
 
Total Current Liabilities
4,023 
4,682 
 
 
Long-term debt
1,289 
226 
 
 
Asset retirement obligations and accrued environmental costs
189 
189 
 
 
Deferred income taxes
1,181 
1,255 
 
 
Employee benefit obligations
204 
231 
 
 
Other liabilities and deferred credits
3,035 
2,126 
 
 
Total Liabilities
9,921 
8,709 
 
 
Common stock
9,314 
8,240 
 
 
Retained earnings
1,128 
1,074 
 
 
Accumulated other comprehensive income (loss)
(55)
 
 
Noncontrolling interests
838 
447 
 
 
Total Liabilities and Equity
21,146 
18,477 
 
 
Consolidating Adjustments [Member]
 
 
 
 
Assets [Abstract]
 
 
 
 
Accounts and notes receivable
(552)
(1,102)
 
 
Total Current Assets
(552)
(1,102)
 
 
Investments and long-term receivables
(50,897)
(43,479)
 
 
Other assets
(4)
(4)
 
 
Total Assets
(51,453)
(44,585)
 
 
Liabilities and Equity [Abstract]
 
 
 
 
Accounts payable
(552)
(1,102)
 
 
Total Current Liabilities
(552)
(1,102)
 
 
Deferred income taxes
(4)
(4)
 
 
Other liabilities and deferred credits
(7,559)
(4,041)
 
 
Total Liabilities
(8,115)
(5,147)
 
 
Common stock
(34,718)
(33,645)
 
 
Retained earnings
(9,263)
(6,317)
 
 
Accumulated other comprehensive income (loss)
643 
524 
 
 
Total Liabilities and Equity
$ (51,453)
$ (44,585)
 
 
Condensed Consolidating Financial Information (Condensed Consolidating Statement of Cash Flows) (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Condensed Financial Statements, Captions [Line Items]
 
 
Net cash provided by continuing operating activities
$ 4,216 
$ 2,655 
Net cash provided by discontinued operations
 
Net Cash Provided by Operating Activities
4,216 
2,657 
Capital expenditures and investments
(3,286)1
(2,647)1
Proceeds from asset dispositions
68 2
663 2
Advances/loans—related parties
(50)
(3)
Collection of advances/loans—related parties
50 
 
Other
161 
Net cash used in continuing investing activities
(3,216)
(1,826)
Net cash used in discontinued operations
 
(2)
Net Cash Used in Investing Activities
(3,216)
(1,828)
Issuance of debt
1,169 
 
Repayment of debt
(918)
(30)
Issuance of common stock
(27)
Repurchase of common stock
(1,106)
(1,750)
Share exchange—PSPI transaction
 
(450)
Dividends paid on common stock
(874)
(787)
Distributions to noncontrolling interests
(30)
(18)
Net proceeds from issuance of Phillips 66 Partners LP common units
384 
 
Other
1
23 1
Net cash used in continuing financing activities
(1,400)
(3,011)
Net Cash Used in Financing Activities
(1,400)
(3,011)
Effect of Exchange Rate Changes on Cash and Cash Equivalents
15 
(110)
Net Change in Cash and Cash Equivalents
(385)
(2,292)
Cash and cash equivalents at beginning of period
5,207 
5,400 
Cash and Cash Equivalents at End of Period
4,822 
3,108 
Phillips 66 [Member]
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Net cash provided by continuing operating activities
884 
60 
Net Cash Provided by Operating Activities
884 
60 
Intercompany lending activities
1,938 
2,937 
Net cash used in continuing investing activities
1,938 
2,937 
Net Cash Used in Investing Activities
1,938 
2,937 
Repayment of debt
(800)
 
Issuance of common stock
(27)
Repurchase of common stock
(1,106)
(1,750)
Share exchange—PSPI transaction
 
(450)
Dividends paid on common stock
(874)
(787)
Other
(15)1
(11)1
Net cash used in continuing financing activities
(2,822)
(2,997)
Net Cash Used in Financing Activities
(2,822)
(2,997)
Phillips 66 Company [Member]
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Net cash provided by continuing operating activities
2,179 
982 
Net Cash Provided by Operating Activities
2,179 
982 
Capital expenditures and investments
(925)1
(1,747)1
Proceeds from asset dispositions
774 
999 
Intercompany lending activities
(2,201)
(1,743)
Advances/loans—related parties
(50)
 
Collection of advances/loans—related parties
50 
 
Other
(22)
(1)
Net cash used in continuing investing activities
(2,374)
(2,492)
Net Cash Used in Investing Activities
(2,374)
(2,492)
Repayment of debt
(19)
(15)
Dividends paid on common stock
(874)
 
Other
27 1
33 1
Net cash used in continuing financing activities
(866)
18 
Net Cash Used in Financing Activities
(866)
18 
Net Change in Cash and Cash Equivalents
(1,061)
(1,492)
Cash and cash equivalents at beginning of period
2,045 
2,162 
Cash and Cash Equivalents at End of Period
984 
670 
All Other Subsidiaries [Member]
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Net cash provided by continuing operating activities
2,131 
1,759 
Net cash provided by discontinued operations
 
Net Cash Provided by Operating Activities
2,131 
1,761 
Capital expenditures and investments
(3,195)1
(1,885)1
Proceeds from asset dispositions
176 
64 
Intercompany lending activities
263 
(1,194)
Advances/loans—related parties
 
(3)
Other
24 
162 
Net cash used in continuing investing activities
(2,732)
(2,856)
Net cash used in discontinued operations
 
(2)
Net Cash Used in Investing Activities
(2,732)
(2,858)
Issuance of debt
1,169 
 
Repayment of debt
(99)
(15)
Dividends paid on common stock
(64)
(102)
Distributions to noncontrolling interests
(30)
(18)
Net proceeds from issuance of Phillips 66 Partners LP common units
384 
 
Other
88 1
847 1
Net cash used in continuing financing activities
1,262 
407 
Net Cash Used in Financing Activities
1,262 
407 
Effect of Exchange Rate Changes on Cash and Cash Equivalents
15 
(110)
Net Change in Cash and Cash Equivalents
676 
(800)
Cash and cash equivalents at beginning of period
3,162 
3,238 
Cash and Cash Equivalents at End of Period
3,838 
2,438 
Consolidating Adjustments [Member]
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Net cash provided by continuing operating activities
(978)
(146)
Net Cash Provided by Operating Activities
(978)
(146)
Capital expenditures and investments
834 1
985 1
Proceeds from asset dispositions
(882)
(400)
Net cash used in continuing investing activities
(48)
585 
Net Cash Used in Investing Activities
(48)
585 
Dividends paid on common stock
938 
102 
Distributions to controlling interests
186 
305 
Other
(98)1
(846)1
Net cash used in continuing financing activities
1,026 
(439)
Net Cash Used in Financing Activities
1,026 
(439)
Consolidating Adjustments [Member] |
All Other Subsidiaries [Member]
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Distributions to controlling interests
$ (186)
$ (305)
Condensed Consolidating Financial Information (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2015
Feb. 28, 2015
Senior Notes [Member]
Sep. 30, 2015
Phillips 66 [Member]
Senior Notes [Member]
Sep. 30, 2014
All Other Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
Debt issued
 
 
$ 1,100 
$ 7,500 
 
Percentage of ownership in subsidiary
 
100.00% 
 
 
 
Net of provision for income taxes on discontinued operations
$ 5 
 
 
 
$ 5