Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Phillips 66 (NYSE:PSX)

This company was transferred to the archive: financial data is no longer updated!

Analysis of Income Taxes

Advanced level

Income Tax Expense (Benefit)

Phillips 66, income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Federal 354  739  (105) 1,128 
Foreign 204  326  126  66  (74)
State and local 61  255  61  (24) 227 
Current 619  1,320  196  (63) 1,281 
Federal 177  257  (1,960) 645  444 
Foreign (50) 53  (84) 42 
State and local 55  (58) 68  49  (3)
Deferred 182  252  (1,889) 610  483 
Income tax expense (benefit) 801  1,572  (1,693) 547  1,764 

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Phillips 66’s current increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Phillips 66’s deferred increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.
Income tax expense (benefit) Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Phillips 66’s income tax expense (benefit) increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.

Effective Income Tax Rate (EITR)

Phillips 66, effective income tax rate (EITR) reconciliation

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Federal statutory income tax rate 21.00% 21.00% 35.00% 35.00% 35.00%
State income tax, net of federal benefit 2.20% 2.10% 2.20% 0.60% 2.50%
Foreign rate differential -0.70% -1.20% -5.90% -6.90% -3.90%
Noncontrolling interests -1.50% -0.80% -1.30% -1.20% -0.20%
Change in valuation allowance 0.30% -0.30% -0.10% -3.70% -0.20%
Federal manufacturing deduction 0.00% 0.00% -0.50% 0.00% -1.30%
Goodwill allocated to assets sold 0.00% 0.00% 0.00% 0.00% 0.70%
German tax legislation 0.00% 0.00% 0.00% 0.00% -1.70%
Sale of foreign subsidiaries 0.00% 0.00% 0.00% 0.00% -2.10%
Other -1.10% -0.20% -0.50% 1.20% 0.40%
Effective income tax rate, before Tax Cuts and Jobs Act 20.20% 20.60% 28.90% 25.00% 29.20%
Tax Cuts and Jobs Act -1.00% 0.50% -76.50% 0.00% 0.00%
Effective income tax rate 19.20% 21.10% -47.60% 25.00% 29.20%

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

Item Description The company
Effective income tax rate, before Tax Cuts and Jobs Act Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Phillips 66’s effective income tax rate, before Tax Cuts and Jobs Act decreased from 2017 to 2018 and from 2018 to 2019.

Components of Deferred Tax Assets and Liabilities

Phillips 66, components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Benefit plan accruals 460  395  314  669  751 
Asset retirement obligations and accrued environmental costs 115  109  121  211  215 
Loss and credit carryforwards 54  59  96  261  227 
Other financial accruals and deferrals 70  16  44  188  175 
Inventory 28  —  10  —  — 
Other 281  — 
Deferred tax assets 1,008  579  588  1,330  1,369 
Valuation allowance (22) (8) (28) (38) (160)
Net deferred tax assets 986  571  560  1,292  1,209 
Properties, plants and equipment, and intangibles (3,297) (3,074) (2,942) (4,525) (4,361)
Investment in joint ventures (2,137) (2,041) (1,923) (2,442) (2,292)
Investment in subsidiaries (794) (602) (594) (803) (236)
Inventory —  (66) —  (154) (176)
Other (263) (14) (18) (19) (24)
Deferred tax liabilities (6,491) (5,797) (5,477) (7,943) (7,089)
Net deferred tax assets (liabilities) (5,505) (5,226) (4,917) (6,651) (5,880)

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

Item Description The company
Deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Phillips 66’s deferred tax assets decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.
Net deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Phillips 66’s net deferred tax assets increased from 2017 to 2018 and from 2018 to 2019.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Phillips 66’s net deferred tax assets (liabilities) decreased from 2017 to 2018 and from 2018 to 2019.

Deferred Tax Assets and Liabilities, Classification

Phillips 66, deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Deferred tax assets (included in Other assets) 48  49  91  92  161 
Deferred tax liabilities 5,553  5,275  5,008  6,743  6,041 

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

Item Description The company
Deferred tax assets (included in Other assets) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Phillips 66’s deferred tax assets (included in Other assets) decreased from 2017 to 2018 and from 2018 to 2019.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Phillips 66’s deferred tax liabilities increased from 2017 to 2018 and from 2018 to 2019.

Adjustments to Financial Statements: Removal of Deferred Taxes

Phillips 66, adjustments to financial statements

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Adjustment to Total Assets
Total assets (as reported) 58,720  54,302  54,371  51,653  48,580 
Less: Noncurrent deferred tax assets, net 48  49  91  92  161 
Total assets (adjusted) 58,672  54,253  54,280  51,561  48,419 
Adjustment to Total Liabilities
Total liabilities (as reported) 31,551  27,149  26,943  27,928  24,642 
Less: Noncurrent deferred tax liabilities, net 5,553  5,275  5,008  6,743  6,041 
Total liabilities (adjusted) 25,998  21,874  21,935  21,185  18,601 
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 24,910  24,653  25,085  22,390  23,100 
Less: Net deferred tax assets (liabilities) (5,505) (5,226) (4,917) (6,651) (5,880)
Stockholders’ equity (adjusted) 30,415  29,879  30,002  29,041  28,980 
Adjustment to Net Income Attributable To Phillips 66
Net income attributable to Phillips 66 (as reported) 3,076  5,595  5,106  1,555  4,227 
Add: Deferred income tax expense (benefit) 182  252  (1,889) 610  483 
Net income attributable to Phillips 66 (adjusted) 3,258  5,847  3,217  2,165  4,710 

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).


Phillips 66, Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Phillips 66, adjusted financial ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net Profit Margin
Reported net profit margin 2.87% 5.02% 4.99% 1.85% 4.27%
Adjusted net profit margin 3.04% 5.25% 3.14% 2.57% 4.76%
Total Asset Turnover
Reported total asset turnover 1.83 2.05 1.88 1.63 2.04
Adjusted total asset turnover 1.83 2.05 1.89 1.63 2.04
Financial Leverage
Reported financial leverage 2.36 2.20 2.17 2.31 2.10
Adjusted financial leverage 1.93 1.82 1.81 1.78 1.67
Return on Equity (ROE)
Reported ROE 12.35% 22.70% 20.35% 6.95% 18.30%
Adjusted ROE 10.71% 19.57% 10.72% 7.45% 16.25%
Return on Assets (ROA)
Reported ROA 5.24% 10.30% 9.39% 3.01% 8.70%
Adjusted ROA 5.55% 10.78% 5.93% 4.20% 9.73%

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Phillips 66’s adjusted net profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Phillips 66’s adjusted total asset turnover ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Phillips 66’s adjusted financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Phillips 66’s adjusted ROE improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Phillips 66’s adjusted ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Phillips 66, Financial Ratios: Reported vs. Adjusted


Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Phillips 66 3,076  5,595  5,106  1,555  4,227 
Sales and other operating revenues 107,293  111,461  102,354  84,279  98,975 
Profitability Ratio
Net profit margin1 2.87% 5.02% 4.99% 1.85% 4.27%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Phillips 66 3,258  5,847  3,217  2,165  4,710 
Sales and other operating revenues 107,293  111,461  102,354  84,279  98,975 
Profitability Ratio
Adjusted net profit margin2 3.04% 5.25% 3.14% 2.57% 4.76%

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

2019 Calculations

1 Net profit margin = 100 × Net income attributable to Phillips 66 ÷ Sales and other operating revenues
= 100 × 3,076 ÷ 107,293 = 2.87%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to Phillips 66 ÷ Sales and other operating revenues
= 100 × 3,258 ÷ 107,293 = 3.04%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Phillips 66’s adjusted net profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Sales and other operating revenues 107,293  111,461  102,354  84,279  98,975 
Total assets 58,720  54,302  54,371  51,653  48,580 
Activity Ratio
Total asset turnover1 1.83 2.05 1.88 1.63 2.04
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Sales and other operating revenues 107,293  111,461  102,354  84,279  98,975 
Adjusted total assets 58,672  54,253  54,280  51,561  48,419 
Activity Ratio
Adjusted total asset turnover2 1.83 2.05 1.89 1.63 2.04

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

2019 Calculations

1 Total asset turnover = Sales and other operating revenues ÷ Total assets
= 107,293 ÷ 58,720 = 1.83

2 Adjusted total asset turnover = Sales and other operating revenues ÷ Adjusted total assets
= 107,293 ÷ 58,672 = 1.83

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Phillips 66’s adjusted total asset turnover ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Total assets 58,720  54,302  54,371  51,653  48,580 
Stockholders’ equity 24,910  24,653  25,085  22,390  23,100 
Solvency Ratio
Financial leverage1 2.36 2.20 2.17 2.31 2.10
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 58,672  54,253  54,280  51,561  48,419 
Adjusted stockholders’ equity 30,415  29,879  30,002  29,041  28,980 
Solvency Ratio
Adjusted financial leverage2 1.93 1.82 1.81 1.78 1.67

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

2019 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 58,720 ÷ 24,910 = 2.36

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 58,672 ÷ 30,415 = 1.93

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Phillips 66’s adjusted financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Phillips 66 3,076  5,595  5,106  1,555  4,227 
Stockholders’ equity 24,910  24,653  25,085  22,390  23,100 
Profitability Ratio
ROE1 12.35% 22.70% 20.35% 6.95% 18.30%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Phillips 66 3,258  5,847  3,217  2,165  4,710 
Adjusted stockholders’ equity 30,415  29,879  30,002  29,041  28,980 
Profitability Ratio
Adjusted ROE2 10.71% 19.57% 10.72% 7.45% 16.25%

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

2019 Calculations

1 ROE = 100 × Net income attributable to Phillips 66 ÷ Stockholders’ equity
= 100 × 3,076 ÷ 24,910 = 12.35%

2 Adjusted ROE = 100 × Adjusted net income attributable to Phillips 66 ÷ Adjusted stockholders’ equity
= 100 × 3,258 ÷ 30,415 = 10.71%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Phillips 66’s adjusted ROE improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Phillips 66 3,076  5,595  5,106  1,555  4,227 
Total assets 58,720  54,302  54,371  51,653  48,580 
Profitability Ratio
ROA1 5.24% 10.30% 9.39% 3.01% 8.70%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Phillips 66 3,258  5,847  3,217  2,165  4,710 
Adjusted total assets 58,672  54,253  54,280  51,561  48,419 
Profitability Ratio
Adjusted ROA2 5.55% 10.78% 5.93% 4.20% 9.73%

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

2019 Calculations

1 ROA = 100 × Net income attributable to Phillips 66 ÷ Total assets
= 100 × 3,076 ÷ 58,720 = 5.24%

2 Adjusted ROA = 100 × Adjusted net income attributable to Phillips 66 ÷ Adjusted total assets
= 100 × 3,258 ÷ 58,672 = 5.55%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Phillips 66’s adjusted ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.