Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 29, 2019 | |
Cover page. | ||
Document type | 10-Q | |
Document quarterly report | true | |
Document period end date | Sep. 30, 2019 | |
Document transition report | false | |
Entity file number | 001-13175 | |
Entity registrant name | VALERO ENERGY CORP/TX | |
Entity incorporation, state or country code | DE | |
Entity tax identification number | 74-1828067 | |
Entity address, address line one | One Valero Way | |
Entity address, city or town | San Antonio | |
Entity address, state or province | TX | |
Entity address, postal zip code | 78249 | |
City area code | 210 | |
Local phone number | 345-2000 | |
Title of 12(b) security | Common stock | |
Trading symbol | VLO | |
Security exchange name | NYSE | |
Entity current reporting status | Yes | |
Entity interactive data current | Yes | |
Entity filer category | Large Accelerated Filer | |
Entity small business | false | |
Entity emerging growth company | false | |
Entity shell company | false | |
Entity common stock, shares outstanding | 410,652,732 | |
Entity central index key | 0001035002 | |
Amendment flag | false | |
Document fiscal year focus | 2019 | |
Document fiscal period focus | Q3 | |
Current fiscal year end date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 2,137 | $ 2,982 |
Receivables, net | 7,994 | 7,345 |
Inventories | 6,376 | 6,532 |
Prepaid expenses and other | 526 | 816 |
Total current assets | 17,033 | 17,675 |
Property, plant, and equipment, at cost | 43,539 | 42,473 |
Accumulated depreciation | (14,649) | (13,625) |
Property, plant, and equipment, net | 28,890 | 28,848 |
Deferred charges and other assets, net | 5,306 | 3,632 |
Total assets | 51,229 | 50,155 |
Current liabilities: | ||
Current portion of debt and finance lease obligations | 402 | 238 |
Accounts payable | 9,504 | 8,594 |
Accrued expenses | 881 | 630 |
Taxes other than income taxes payable | 1,175 | 1,213 |
Income taxes payable | 168 | 49 |
Total current liabilities | 12,130 | 10,724 |
Debt and finance lease obligations, less current portion | 9,170 | 8,871 |
Deferred income tax liabilities | 4,920 | 4,962 |
Other long-term liabilities | 3,421 | 2,867 |
Commitments and contingencies | ||
Valero Energy Corporation stockholders’ equity: | ||
Common stock, $0.01 par value; 1,200,000,000 shares authorized; 673,501,593 and 673,501,593 shares issued | 7 | 7 |
Additional paid-in capital | 6,818 | 7,048 |
Treasury stock, at cost; 262,691,943 and 255,905,051 common shares | (15,472) | (14,925) |
Retained earnings | 31,283 | 31,044 |
Accumulated other comprehensive loss | (1,529) | (1,507) |
Total Valero Energy Corporation stockholders’ equity | 21,107 | 21,667 |
Noncontrolling interests | 481 | 1,064 |
Total equity | 21,588 | 22,731 |
Total liabilities and equity | $ 51,229 | $ 50,155 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Valero Energy Corporation stockholders’ equity: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,200,000,000 | 1,200,000,000 |
Common stock, shares issued | 673,501,593 | 673,501,593 |
Treasury stock, common shares | 262,691,943 | 255,905,051 |
Consolidated Statements of Inco
Consolidated Statements of Income (unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Revenues | [1] | $ 27,249 | $ 30,849 | $ 80,445 | $ 88,303 |
Cost of sales: | |||||
Cost of materials and other | 24,335 | 27,701 | 72,396 | 79,317 | |
Operating expenses (excluding depreciation and amortization expense reflected below) | 1,239 | 1,193 | 3,629 | 3,439 | |
Depreciation and amortization expense | 556 | 504 | 1,645 | 1,499 | |
Total cost of sales | 26,130 | 29,398 | 77,670 | 84,255 | |
Other operating expenses | 10 | 10 | 14 | 41 | |
General and administrative expenses (excluding depreciation and amortization expense reflected below) | 217 | 209 | 625 | 695 | |
Depreciation and amortization expense | 11 | 13 | 39 | 39 | |
Operating income (loss) | 881 | 1,219 | 2,097 | 3,273 | |
Other income, net | 34 | 42 | 68 | 88 | |
Interest and debt expense, net of capitalized interest | (111) | (111) | (335) | (356) | |
Income before income tax expense (benefit) | 804 | 1,150 | 1,830 | 3,005 | |
Income tax expense | 165 | 276 | 376 | 674 | |
Net income | 639 | 874 | 1,454 | 2,331 | |
Less: Net income attributable to noncontrolling interests | 30 | 18 | 92 | 161 | |
Net income attributable to Valero Energy Corporation stockholders | $ 609 | $ 856 | $ 1,362 | $ 2,170 | |
Earnings per common share (in dollars per share) | $ 1.48 | $ 2.01 | $ 3.28 | $ 5.05 | |
Weighted-average common shares outstanding (in shares) | 412 | 425 | 415 | 428 | |
Earnings per common share – assuming dilution (in dollars per share) | $ 1.48 | $ 2.01 | $ 3.28 | $ 5.05 | |
Weighted-average common shares outstanding – assuming dilution (in shares) | 413 | 427 | 416 | 430 | |
Supplemental information: | |||||
Includes excise taxes on sales by certain of our international operations | $ 1,399 | $ 1,338 | $ 4,139 | $ 4,272 | |
[1] | Includes excise taxes on sales by certain of our international operations of $1,399 million and $1,338 million for the three months ended September 30, 2019 and 2018, respectively, and $4,139 million and $4,272 million for the nine months ended September 30, 2019 and 2018, respectively. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Net income | $ 874 | $ 2,331 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | 23 | (223) |
Net gain on pension and other postretirement benefits | 8 | 25 |
Net gain (loss) on cash flow hedges | 0 | 0 |
Other comprehensive income (loss) before income tax expense (benefit) | 31 | (198) |
Income tax expense related to items of other comprehensive income (loss) | 1 | 5 |
Other comprehensive income (loss) | 30 | (203) |
Comprehensive income | 904 | 2,128 |
Less: Comprehensive income attributable to noncontrolling interests | 21 | 162 |
Comprehensive income attributable to Valero Energy Corporation stockholders | $ 883 | $ 1,966 |
Consolidated Statements of Equi
Consolidated Statements of Equity (unaudited) - USD ($) $ in Millions | Total | Valero Energy Corporation Stockholders' Equity [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Non-controlling Interests [Member] |
Balance as of beginning of period at Dec. 31, 2017 | $ 22,900 | $ 21,991 | $ 7 | $ 7,039 | $ (13,315) | $ 29,200 | $ (940) | $ 909 |
Increase (Decrease) in Stockholders' Equity Roll Forward | ||||||||
Reclassification of stranded income tax effects | 0 | 0 | 91 | (91) | ||||
Net income | 2,331 | 2,170 | 2,170 | 161 | ||||
Dividends on common stock | (1,031) | (1,031) | (1,031) | |||||
Stock-based compensation expense | 40 | 40 | 40 | |||||
Transactions in connection with stock-based compensation plans | (149) | (149) | (34) | (115) | ||||
Stock purchases under purchase program | (904) | (904) | (904) | |||||
Contributions from noncontrolling interests | 32 | 32 | ||||||
Distributions to noncontrolling interests | (63) | (63) | ||||||
Other | 7 | (3) | (3) | 0 | 0 | 0 | 10 | |
Other comprehensive income (loss) | (203) | (204) | (204) | 1 | ||||
Balance as of end of period at Sep. 30, 2018 | 22,960 | 21,910 | 7 | 7,042 | (14,334) | 30,430 | (1,235) | 1,050 |
Balance as of beginning of period at Jun. 30, 2018 | 22,804 | 21,769 | 7 | 7,032 | (13,923) | 29,915 | (1,262) | 1,035 |
Increase (Decrease) in Stockholders' Equity Roll Forward | ||||||||
Net income | 874 | 856 | 856 | 18 | ||||
Dividends on common stock | (341) | (341) | (341) | |||||
Stock-based compensation expense | 11 | 11 | 11 | |||||
Transactions in connection with stock-based compensation plans | (15) | (15) | 0 | (15) | ||||
Stock purchases under purchase program | (396) | (396) | (396) | |||||
Distributions to noncontrolling interests | (13) | (13) | ||||||
Other | 6 | (1) | (1) | 0 | 0 | 0 | 7 | |
Other comprehensive income (loss) | 30 | 27 | 27 | 3 | ||||
Balance as of end of period at Sep. 30, 2018 | 22,960 | 21,910 | 7 | 7,042 | (14,334) | 30,430 | (1,235) | 1,050 |
Balance as of beginning of period at Dec. 31, 2018 | 22,731 | 21,667 | 7 | 7,048 | (14,925) | 31,044 | (1,507) | 1,064 |
Increase (Decrease) in Stockholders' Equity Roll Forward | ||||||||
Reclassification of stranded income tax effects | 0 | |||||||
Net income | 1,454 | 1,362 | 1,362 | 92 | ||||
Dividends on common stock | (1,123) | (1,123) | (1,123) | |||||
Stock-based compensation expense | 30 | 30 | 30 | |||||
Transactions in connection with stock-based compensation plans | (1) | (1) | (6) | 5 | ||||
Stock purchases under purchase program | (552) | (552) | (552) | |||||
Acquisition of Valero Energy Partners LP publicly held common units | (950) | (328) | (328) | (622) | ||||
Distributions to noncontrolling interests | (57) | (57) | ||||||
Other | 74 | 74 | 74 | 0 | 0 | 0 | 0 | |
Other comprehensive income (loss) | (18) | (22) | (22) | 4 | ||||
Balance as of end of period at Sep. 30, 2019 | 21,588 | 21,107 | 7 | 6,818 | (15,472) | 31,283 | (1,529) | 481 |
Balance as of beginning of period at Jun. 30, 2019 | 21,837 | 21,345 | 7 | 6,812 | (15,170) | 31,046 | (1,350) | 492 |
Increase (Decrease) in Stockholders' Equity Roll Forward | ||||||||
Net income | 639 | 609 | 609 | 30 | ||||
Dividends on common stock | (372) | (372) | (372) | |||||
Stock-based compensation expense | 9 | 9 | 9 | |||||
Transactions in connection with stock-based compensation plans | 1 | 1 | (3) | 4 | ||||
Stock purchases under purchase program | (306) | (306) | (306) | |||||
Distributions to noncontrolling interests | (39) | (39) | ||||||
Other comprehensive income (loss) | (181) | (179) | (179) | (2) | ||||
Balance as of end of period at Sep. 30, 2019 | $ 21,588 | $ 21,107 | $ 7 | $ 6,818 | $ (15,472) | $ 31,283 | $ (1,529) | $ 481 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Common stock dividends: | ||||
Dividends on common stock (in dollars per share) | $ 0.9 | $ 0.8 | $ 2.7 | $ 2.4 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 1,454 | $ 2,331 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 1,684 | 1,538 |
Deferred income tax expense (benefit) | 19 | (62) |
Changes in current assets and current liabilities | 728 | (1,174) |
Changes in deferred charges and credits and other operating activities, net | (62) | 60 |
Net cash provided by operating activities | 3,823 | 2,693 |
Cash flows from investing activities: | ||
Investments in unconsolidated joint ventures | (122) | (124) |
Peru Acquisition, net of cash acquired | 0 | (466) |
Acquisitions of undivided interests | (65) | (181) |
Other investing activities, net | 5 | 9 |
Net cash provided by (used in) investing activities | (2,190) | (2,768) |
Cash flows from financing activities: | ||
Purchases of common stock for treasury | (555) | (1,081) |
Common stock dividends | (1,123) | (1,031) |
Acquisition of Valero Energy Partners LP publicly held common units | (950) | 0 |
Contributions from noncontrolling interests | 0 | 32 |
Distributions to noncontrolling interests | (57) | (63) |
Other financing activities, net | (29) | (15) |
Net cash used in financing activities | (2,474) | (2,181) |
Effect of foreign exchange rate changes on cash | (4) | (43) |
Net increase (decrease) in cash and cash equivalents | (845) | (2,299) |
Cash and cash equivalents at beginning of period | 2,982 | 5,850 |
Cash and cash equivalents at end of period | 2,137 | 3,551 |
Minor Acquisitions [Member] | ||
Cash flows from investing activities: | ||
Minor acquisitions | 0 | (88) |
Variable Interest Entities (VIEs) [Member] | ||
Cash flows from financing activities: | ||
Proceeds from debt issuances and borrowings | 148 | 71 |
Repayments of debt and finance lease obligations | (4) | (4) |
Diamond Green Diesel Holdings LLC (DGD) [Member] | ||
Cash flows from investing activities: | ||
Capital expenditures | (91) | (143) |
Deferred turnaround and catalyst cost expenditures | (16) | (20) |
Other VIEs [Member] | ||
Cash flows from investing activities: | ||
Capital expenditures | (139) | (89) |
Excluding Variable Interest Entities (VIEs) [Member] | ||
Cash flows from investing activities: | ||
Capital expenditures | (1,179) | (1,025) |
Deferred turnaround and catalyst cost expenditures | (583) | (641) |
Cash flows from financing activities: | ||
Proceeds from debt issuances and borrowings | 1,892 | 1,258 |
Repayments of debt and finance lease obligations | $ (1,796) | $ (1,348) |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation General The terms “Valero,” “we,” “our,” and “us,” as used in this report, may refer to Valero Energy Corporation, one or more of its consolidated subsidiaries, or all of them taken as a whole. These unaudited financial statements have been prepared in accordance with United States (U.S.) generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Act of 1934. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All such adjustments are of a normal recurring nature unless disclosed otherwise. Operating results for the nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . The balance sheet as of December 31, 2018 has been derived from our audited financial statements as of that date. For further information, refer to our financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2018 . Reclassifications Effective January 1, 2019, we revised our reportable segments to reflect a new reportable segment — renewable diesel. The renewable diesel segment includes the operations of Diamond Green Diesel Holdings LLC (DGD), our consolidated joint venture as discussed in Note 8 , which were transferred from the refining segment. Also effective January 1, 2019, we no longer have a VLP segment, and we now include the operations of Valero Energy Partners LP and its consolidated subsidiaries (VLP) in our refining segment. Our prior period segment information has been retrospectively adjusted to reflect our current segment presentation. See Note 2 regarding our merger with VLP, which occurred on January 10, 2019, and Note 11 for segment information. Certain prior year amounts in the consolidated statement of cash flows have been reclassified to conform to the 2019 presentation. Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. On an ongoing basis, we review our estimates based on currently available information. Changes in facts and circumstances may result in revised estimates. Leases Background We adopted the provisions of Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 842, “Leases,” (Topic 842) on January 1, 2019, as described below in “Accounting Pronouncements Adopted on January 1, 2019.” Accordingly, our lease accounting policy has been revised to reflect the adoption of this standard. Revised Policy We evaluate if a contract is or contains a lease at inception of the contract. If we determine that a contract is or contains a lease, we recognize a right-of-use (ROU) asset and lease liability at the commencement date of the lease based on the present value of lease payments over the lease term. The present value of the lease payments is determined by using the implicit rate when readily determinable, or if not, our incremental borrowing rate for a term similar to the duration of the lease based on information available at the commencement date. Lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise those options. We recognize ROU assets and lease liabilities for leasing arrangements with terms greater than one year. Except for the marine transportation asset class, we account for lease and non-lease components in a contract as a single lease component for all classes of underlying assets. Our marine transportation contracts include non-lease components such as maintenance and crew costs. We allocate the consideration in these contracts based on pricing information provided by the third-party broker. Expense for an operating lease is recognized as a single lease cost on a straight-line basis over the lease term and reflected in the appropriate income statement line item based on the leased asset’s function. Amortization expense of a finance lease ROU asset is recognized on a straight-line basis over the lesser of the useful life of the leased asset or the lease term and is reflected in “depreciation and amortization expense.” Interest expense is incurred based on the carrying value of the lease liability and is reflected in “interest and debt expense, net of capitalized interest.” Accounting Pronouncements Adopted on January 1, 2019 Topic 842 As previously noted, we adopted the provisions of Topic 842 on January 1, 2019. Topic 842 increases the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Topic 842 supersedes previous lease accounting requirements under FASB ASC Topic 840, “Leases,” (Topic 840). We adopted Topic 842 using the optional transition method that permits us to apply the new disclosure requirements beginning in 2019 and continue to present comparative period information as required under Topic 840; however, we did not have a cumulative-effect adjustment to the opening balance of retained earnings at the date of adoption. In addition, we elected the transition practical expedient package that permits us to not reassess our prior conclusions about lease identification, lease classification, and initial direct costs under the new standard, as well as the practical expedient that permits us to not assess existing land easements under the new standard. See “Leases” above for a discussion of our accounting policy affected by our adoption of Topic 842. Also see Note 4 for information on our leases. In preparation for the adoption of Topic 842, we enhanced our contracting and lease evaluation systems and related processes, and we developed a new lease accounting system to capture our leases and support the required disclosures. We integrated our lease accounting system with our general ledger and modified our related procurement and payment processes. Adoption of this standard resulted in (i) the recognition of ROU assets and lease liabilities for our operating leases of $1.3 billion , (ii) the derecognition of existing assets under construction of $539 million related to a build-to-suit lease arrangement with respect to the MVP Terminal (see Note 6 under “ Commitments— MVP Terminal”), and (iii) the presentation of new disclosures about our leasing activities beginning in the first quarter of 2019. Adoption of this standard did not impact our results of operations or liquidity, and our accounting for finance leases is substantially unchanged. Other In addition to the adoption of Topic 842 discussed above, we adopted the following Accounting Standards Update (ASU) during the nine months ended September 30, 2019 . Our adoption of this ASU did not affect our financial statements or related disclosures. ASU Adoption Date Basis of Adoption 2017-12 Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities January 1, 2019 Cumulative effect Accounting Pronouncements Not Yet Adopted The following ASUs have not yet been adopted and are not expected to have a material impact on our financial statements or related disclosures. ASU Expected Adoption Date Basis of Adoption 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments January 1, 2020 Cumulative effect 2018-15 Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract January 1, 2020 Prospectively 2018-17 Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities January 1, 2020 Cumulative effect |
Merger and Acquisition
Merger and Acquisition | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
MERGER AND ACQUISITION | 2. MERGER AND ACQUISITION Merger with VLP On January 10, 2019, we completed our acquisition of all of the outstanding publicly held common units of VLP pursuant to a definitive Agreement and Plan of Merger (Merger Agreement, and together with the transactions contemplated thereby, the Merger Transaction) with VLP. Upon completion of the Merger Transaction, each outstanding publicly held common unit was converted into the right to receive $42.25 per common unit in cash without any interest thereon, and all such publicly traded common units were automatically canceled and ceased to exist. Upon completion of the Merger Transaction, we paid aggregate merger consideration of $950 million , which was funded with available cash on hand. Prior to the completion of the Merger Transaction, we consolidated the financial statements of VLP (see Note 8 ) and reflected noncontrolling interests on our balance sheet for the portion of VLP’s partners’ capital held by VLP’s public common unitholders. Upon completion of the Merger Transaction, VLP became our indirect wholly owned subsidiary and, as a result, we no longer reflect noncontrolling interests on our balance sheet with respect to VLP. In addition, we no longer attribute a portion of VLP’s net income to noncontrolling interests. Because we had a controlling financial interest in VLP before the Merger Transaction and retained our controlling financial interest in VLP after the Merger Transaction, the change in our ownership interest in VLP as a result of the merger was accounted for as an equity transaction. Accordingly, we did not recognize a gain or loss on the Merger Transaction. Peru Acquisition On May 14, 2018 , we acquired 100 percent of the issued and outstanding equity interests in Pure Biofuels del Peru S.A.C. (Pure Biofuels) from Pegasus Capital Advisors L.P. and various minority equity holders. Pure Biofuels markets refined petroleum products through its logistics assets in Peru. This acquisition, which is referred to as the Peru Acquisition, was accounted for as a business acquisition. We paid $466 million from available cash on hand, of which $130 million was for working capital. During the third and fourth quarters of 2018, we recognized immaterial adjustments to the preliminary amounts recorded for the Peru Acquisition with a corresponding adjustment to goodwill due to the completion of an independent appraisal in the fourth quarter of 2018. The assets acquired and the liabilities assumed were recognized at their acquisition-date fair values, as disclosed in Note 2 of Notes to Consolidated Financial Statements included in our annual report on Form 10-K for the year ended December 31, 2018. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 3. INVENTORIES Inventories consisted of the following (in millions): September 30, December 31, Refinery feedstocks $ 2,051 $ 2,265 Refined petroleum products and blendstocks 3,746 3,653 Ethanol feedstocks and products 253 298 Renewable diesel feedstocks and products 53 52 Materials and supplies 273 264 Inventories $ 6,376 $ 6,532 As of September 30, 2019 and December 31, 2018 , the replacement cost (market value) of last-in, first-out (LIFO) inventories exceeded their LIFO carrying amounts by $2.6 billion and $1.5 billion , respectively. Our non-LIFO inventories accounted for $1.1 billion of our total inventories as of September 30, 2019 and December 31, 2018 . |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
LEASES | 4. LEASES General We have entered into long-term leasing arrangements for the right to use various classes of underlying assets as follows: • Pipelines, Terminals, and Tanks includes facilities and equipment used in the storage, transportation, production, and sale of refinery feedstock, refined petroleum product, and corn inventories; • Marine Transportation includes time charters for ocean-going tankers and coastal vessels; • Rail Transportation includes railcars and related storage facilities; • Feedstock Processing Equipment includes machinery, equipment, and various facilities used in our refining, ethanol, and renewable diesel operations; • Energy and Gases includes facilities and equipment related to industrial gases and power used in our operations; • Real Estate includes land and rights-of-way associated with our refineries and pipelines, as well as office facilities; and • Other includes equipment primarily used at our corporate offices, such as printers and copiers. In addition to fixed lease payments, some arrangements contain provisions for variable lease payments. Certain leases for pipelines, terminals, and tanks provide for variable lease payments based on, among other things, throughput volumes in excess of a base amount. Certain marine transportation leases contain provisions for payments that are contingent on usage. Additionally, if the rental increases are not scheduled in the lease, such as an increase based on subsequent changes in the index or rate, those rents are considered variable lease payments. In all instances, variable lease payments are recognized in the period in which the obligation for those payments is incurred. Lease Costs and Other Supplemental Information In accordance with Topic 842, our total lease cost comprises costs that are included in our income statement, as well as costs capitalized as part of an item of property, plant, and equipment or inventory. Total lease cost by class of underlying asset was as follows (in millions): Pipelines, Terminals, and Tanks Transportation Feedstock Processing Equipment Energy and Gases Real Estate Other Total Marine Rail Three months ended September 30, 2019: Finance lease cost: Amortization of ROU assets $ 12 $ — $ — $ 2 $ — $ — $ — $ 14 Interest on lease liabilities 13 — — — — — — 13 Operating lease cost 46 39 14 4 3 7 1 114 Variable lease cost 20 4 — 1 — 1 — 26 Short-term lease cost 1 13 — 8 — — — 22 Sublease income — (8 ) — — — (1 ) — (9 ) Total lease cost $ 92 $ 48 $ 14 $ 15 $ 3 $ 7 $ 1 $ 180 Nine months ended September 30, 2019: Finance lease cost: Amortization of ROU assets $ 32 $ — $ — $ 4 $ 2 $ — $ — $ 38 Interest on lease liabilities 35 — — 1 2 — — 38 Operating lease cost 140 107 38 16 7 21 3 332 Variable lease cost 53 21 — 1 — 1 — 76 Short-term lease cost 8 39 — 22 — — — 69 Sublease income — (24 ) — — — (3 ) — (27 ) Total lease cost $ 268 $ 143 $ 38 $ 44 $ 11 $ 19 $ 3 $ 526 In accordance with Topic 840, “rental expense, net of sublease rental income” was as follows (in millions): Three Months Ended September 30, 2018 Nine Months Ended Minimum rental expense $ 126 $ 377 Contingent rental expense 5 14 Total rental expense 131 391 Less sublease rental income 8 24 Rental expense, net of sublease rental income $ 123 $ 367 The following table presents additional information related to our operating and finance leases (in millions, except for lease terms and discount rates): September 30, 2019 Operating Leases Finance Leases Supplemental balance sheet information: ROU assets, net reflected in the following balance sheet line items: Property, plant, and equipment, net $ — $ 787 Deferred charges and other assets, net 1,338 — Total ROU assets, net $ 1,338 $ 787 Current lease liabilities reflected in the following balance sheet line items: Current portion of debt and finance lease obligations $ — $ 41 Accrued expenses 333 — Noncurrent lease liabilities reflected in the following balance sheet line items: Debt and finance lease obligations, less current portion — 744 Other long-term liabilities 970 — Total lease liabilities $ 1,303 $ 785 Other supplemental information: Weighted-average remaining lease term 7.7 years 20.0 years Weighted-average discount rate 5.0 % 5.2 % Supplemental cash flow information related to our operating and finance leases is presented in Note 12 . Maturity Analysis The remaining minimum lease payments due under our long-term leases were as follows (in millions): September 30, 2019 December 31, 2018 Operating Leases Finance Leases Operating Leases Capital Leases 2019 (a) $ 108 $ 22 $ 359 $ 69 2020 349 87 245 65 2021 236 85 178 62 2022 183 85 146 64 2023 150 89 123 65 Thereafter 598 1,078 514 957 Total undiscounted lease payments 1,624 1,446 $ 1,565 1,282 Less amount associated with discounting 321 661 676 Total lease liabilities $ 1,303 $ 785 $ 606 ____________________ (a) The amounts as of September 30, 2019 are for the remaining three months of 2019 . Future Lease Commencement As described and defined in Note 6 , we have a terminaling agreement with MVP to utilize the MVP Terminal upon completion of phase two, which is expected to occur in late 2019 . We expect to recognize an ROU asset and lease liability of approximately $1.1 billion in 2020 in connection with this agreement. |
LEASES | 4. LEASES General We have entered into long-term leasing arrangements for the right to use various classes of underlying assets as follows: • Pipelines, Terminals, and Tanks includes facilities and equipment used in the storage, transportation, production, and sale of refinery feedstock, refined petroleum product, and corn inventories; • Marine Transportation includes time charters for ocean-going tankers and coastal vessels; • Rail Transportation includes railcars and related storage facilities; • Feedstock Processing Equipment includes machinery, equipment, and various facilities used in our refining, ethanol, and renewable diesel operations; • Energy and Gases includes facilities and equipment related to industrial gases and power used in our operations; • Real Estate includes land and rights-of-way associated with our refineries and pipelines, as well as office facilities; and • Other includes equipment primarily used at our corporate offices, such as printers and copiers. In addition to fixed lease payments, some arrangements contain provisions for variable lease payments. Certain leases for pipelines, terminals, and tanks provide for variable lease payments based on, among other things, throughput volumes in excess of a base amount. Certain marine transportation leases contain provisions for payments that are contingent on usage. Additionally, if the rental increases are not scheduled in the lease, such as an increase based on subsequent changes in the index or rate, those rents are considered variable lease payments. In all instances, variable lease payments are recognized in the period in which the obligation for those payments is incurred. Lease Costs and Other Supplemental Information In accordance with Topic 842, our total lease cost comprises costs that are included in our income statement, as well as costs capitalized as part of an item of property, plant, and equipment or inventory. Total lease cost by class of underlying asset was as follows (in millions): Pipelines, Terminals, and Tanks Transportation Feedstock Processing Equipment Energy and Gases Real Estate Other Total Marine Rail Three months ended September 30, 2019: Finance lease cost: Amortization of ROU assets $ 12 $ — $ — $ 2 $ — $ — $ — $ 14 Interest on lease liabilities 13 — — — — — — 13 Operating lease cost 46 39 14 4 3 7 1 114 Variable lease cost 20 4 — 1 — 1 — 26 Short-term lease cost 1 13 — 8 — — — 22 Sublease income — (8 ) — — — (1 ) — (9 ) Total lease cost $ 92 $ 48 $ 14 $ 15 $ 3 $ 7 $ 1 $ 180 Nine months ended September 30, 2019: Finance lease cost: Amortization of ROU assets $ 32 $ — $ — $ 4 $ 2 $ — $ — $ 38 Interest on lease liabilities 35 — — 1 2 — — 38 Operating lease cost 140 107 38 16 7 21 3 332 Variable lease cost 53 21 — 1 — 1 — 76 Short-term lease cost 8 39 — 22 — — — 69 Sublease income — (24 ) — — — (3 ) — (27 ) Total lease cost $ 268 $ 143 $ 38 $ 44 $ 11 $ 19 $ 3 $ 526 In accordance with Topic 840, “rental expense, net of sublease rental income” was as follows (in millions): Three Months Ended September 30, 2018 Nine Months Ended Minimum rental expense $ 126 $ 377 Contingent rental expense 5 14 Total rental expense 131 391 Less sublease rental income 8 24 Rental expense, net of sublease rental income $ 123 $ 367 The following table presents additional information related to our operating and finance leases (in millions, except for lease terms and discount rates): September 30, 2019 Operating Leases Finance Leases Supplemental balance sheet information: ROU assets, net reflected in the following balance sheet line items: Property, plant, and equipment, net $ — $ 787 Deferred charges and other assets, net 1,338 — Total ROU assets, net $ 1,338 $ 787 Current lease liabilities reflected in the following balance sheet line items: Current portion of debt and finance lease obligations $ — $ 41 Accrued expenses 333 — Noncurrent lease liabilities reflected in the following balance sheet line items: Debt and finance lease obligations, less current portion — 744 Other long-term liabilities 970 — Total lease liabilities $ 1,303 $ 785 Other supplemental information: Weighted-average remaining lease term 7.7 years 20.0 years Weighted-average discount rate 5.0 % 5.2 % Supplemental cash flow information related to our operating and finance leases is presented in Note 12 . Maturity Analysis The remaining minimum lease payments due under our long-term leases were as follows (in millions): September 30, 2019 December 31, 2018 Operating Leases Finance Leases Operating Leases Capital Leases 2019 (a) $ 108 $ 22 $ 359 $ 69 2020 349 87 245 65 2021 236 85 178 62 2022 183 85 146 64 2023 150 89 123 65 Thereafter 598 1,078 514 957 Total undiscounted lease payments 1,624 1,446 $ 1,565 1,282 Less amount associated with discounting 321 661 676 Total lease liabilities $ 1,303 $ 785 $ 606 ____________________ (a) The amounts as of September 30, 2019 are for the remaining three months of 2019 . Future Lease Commencement As described and defined in Note 6 , we have a terminaling agreement with MVP to utilize the MVP Terminal upon completion of phase two, which is expected to occur in late 2019 . We expect to recognize an ROU asset and lease liability of approximately $1.1 billion in 2020 in connection with this agreement. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | 5. DEBT Public Debt During the nine months ended September 30, 2019 , the following activity occurred: • We issued $1.0 billion of 4.00 percent Senior Notes due April 1, 2029 ( 4.00 percent Senior Notes). Proceeds from this debt issuance totaled $992 million before deducting the underwriting discount and other debt issuance costs. The proceeds were used to redeem our 6.125 percent Senior Notes due February 1, 2020 ( 6.125 percent Senior Notes) for $871 million , or 102.48 percent of stated value, which includes an early redemption fee of $21 million that is reflected in “ other income, net ” in our statement of income for the nine months ended September 30, 2019 . • In connection with the completion of the Merger Transaction as described in Note 2 , Valero entered into a guarantee agreement to fully and unconditionally guarantee the prompt payment, when due, of any amount owed to the holders of VLP’s 4.375 percent Senior Notes due December 15, 2026 and 4.5 percent Senior Notes due March 15, 2028 . See Note 15 for condensed consolidating financial statements. During the nine months ended September 30, 2018 , the following activity occurred: • We issued $750 million of 4.35 percent Senior Notes due June 1, 2028 . Proceeds from this debt issuance totaled $749 million before deducting the underwriting discount and other debt issuance costs. The proceeds were used to redeem our 9.375 percent Senior Notes due March 15, 2019 ( 9.375 percent Senior Notes) for $787 million , or 104.9 percent of stated value, which included an early redemption fee of $37 million that is reflected in “ other income, net ” in our statement of income for the nine months ended September 30, 2018 . • VLP issued $500 million of 4.5 percent Senior Notes due March 15, 2028 . Proceeds from this debt issuance totaled $498 million before deducting the underwriting discount and other debt issuance costs. The proceeds were available only to the operations of VLP and were used to repay the outstanding balance of $410 million on the VLP Revolver (defined below) and $85 million of VLP’s notes payable to us, which were eliminated in consolidation. Other Debt During the nine months ended September 30, 2018 , we retired $137 million of debt assumed in connection with the Peru Acquisition with available cash on hand. Credit Facilities Summary of Credit Facilities We had outstanding borrowings, letters of credit issued, and availability under our credit facilities as follows (amounts in millions and currency in U.S. dollars, except as noted): September 30, 2019 Facility Maturity Date Outstanding Letters of Credit Availability Committed facilities: Valero Revolver $ 4,000 March 2024 $ — $ 34 $ 3,966 Canadian Revolver (b) C$ 150 November 2019 C$ — C$ 5 C$ 145 Accounts receivable sales facility $ 1,300 July 2020 $ 100 n/a $ 1,200 Letter of credit facility (c) $ 100 November 2019 n/a $ — $ 100 Committed facilities of VIE (d): IEnova Revolver $ 340 February 2028 $ 257 n/a $ 83 Uncommitted facilities: Letter of credit facilities n/a n/a n/a $ 129 n/a ____________ (a) Letters of credit issued as of September 30, 2019 expire at various times in 2019 through 2020 . (b) The Canadian Revolver was amended in November 2019 to extend the maturity date from November 2019 to November 2020. (c) The letter of credit facility was amended in November 2019 to reduce the facility from $100 million to $50 million and to extend the maturity date from November 2019 to November 2020. (d) Creditors of our VIE do not have recourse against us. Valero Revolver In March 2019, we amended our revolving credit facility (the Valero Revolver) to increase the borrowing capacity from $3 billion to $4 billion and to extend the maturity date from November 2020 to March 2024. The Valero Revolver also provides for the issuance of letters of credit of up to $2.4 billion . VLP Revolver As of December 31, 2018 , VLP had a $750 million senior unsecured revolving credit facility (the VLP Revolver) with a group of lenders that was scheduled to mature in November 2020. However, on January 10, 2019, in connection with the completion of the Merger Transaction as described in Note 2 , the VLP Revolver was terminated. Accounts Receivable Sales Facility During the nine months ended September 30, 2019 , we sold and repaid $900 million of eligible receivables under our accounts receivable sales facility. As of September 30, 2019 and December 31, 2018 , the variable interest rate on the accounts receivable sales facility was 2.7836 percent and 3.0618 percent, respectively. IEnova Revolver During the nine months ended September 30, 2019 and 2018 , Central Mexico Terminals (as described in Note 8 ) borrowed $148 million and $71 million , respectively, and had no repayments under a combined $340 million unsecured revolving credit facility (IEnova Revolver) with IEnova (defined in Note 8 ). As of September 30, 2019 and December 31, 2018 , the variable interest rate was 5.969 percent and 6.046 percent, respectively. Other Disclosures “Interest and debt expense, net of capitalized interest” is comprised of the following (in millions): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Interest and debt expense $ 133 $ 134 $ 405 $ 417 Less capitalized interest 22 23 70 61 Interest and debt expense, net of capitalized interest $ 111 $ 111 $ 335 $ 356 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 6. COMMITMENTS AND CONTINGENCIES Commitments MVP Terminal We have a 50 percent membership interest in MVP Terminalling, LLC (MVP), a Delaware limited liability company formed in September 2017 with a subsidiary of Magellan Midstream Partners LP (Magellan), to construct, own, and operate the Magellan Valero Pasadena marine terminal (MVP Terminal) located adjacent to the Houston Ship Channel in Pasadena, Texas. Construction of phases one and two of the project began in 2017 with a total estimated cost of approximately $840 million , of which we have committed to contribute 50 percent (approximately $420 million ). The project could expand up to four phases with a total project cost of approximately $1.4 billion if warranted by additional demand and agreed to by Magellan and us. Since inception, we have contributed $362 million to MVP, of which $115 million was contributed during the nine months ended September 30, 2019 . Concurrent with the formation of MVP, we entered into a terminaling agreement with MVP to utilize the MVP Terminal upon completion of phase two, which is expected to occur in late 2019 . The terminaling agreement has an initial term of 12 years with two five -year automatic renewals, and year-to-year renewals thereafter. Prior to our adoption of Topic 842 as described in Note 1 , we were considered the accounting owner of the MVP Terminal during the construction period due to our membership interest in MVP and because we determined that the terminaling agreement was a capital lease. Accordingly, as of December 31, 2018, we had recorded an asset of $539 million in property, plant, and equipment representing 100 percent of the construction costs incurred by MVP, as well as capitalized interest incurred by us, and a long-term liability of $292 million payable to Magellan. The amounts recorded for the portion of the construction costs associated with the payable to Magellan were noncash investing and financing items, respectively. On January 1, 2019, as a result of our adoption of Topic 842, we derecognized the asset and liability related to MVP discussed above and recorded our equity investment in MVP of $247 million , which is included in “deferred charges and other assets, net.” The amounts derecognized are noncash investing and financing items, respectively. As of September 30, 2019 , our equity investment in MVP was $362 million . Central Texas Pipeline We committed to a 40 percent undivided interest in a project with a subsidiary of Magellan to jointly build a 135 -mile, 20 -inch refined petroleum products pipeline with a capacity of up to 150,000 barrels per day from Houston to Hearne, Texas. The pipeline was placed in service in the third quarter of 2019. The cost of our 40 percent undivided interest in the pipeline was $160 million , of which $65 million was spent during the nine months ended September 30, 2019 . |
Equity
Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
EQUITY | 7. EQUITY Share Activity Activity in the number of shares of common stock and treasury stock was as follows (in millions): Nine Months Ended September 30, 2019 2018 Common Stock Treasury Stock Common Stock Treasury Stock Balance as of beginning of period 673 (256 ) 673 (240 ) Transactions in connection with stock-based compensation plans — — — (1 ) Stock purchases under purchase programs — (7 ) — (8 ) Balance as of end of period 673 (263 ) 673 (249 ) Common Stock Dividends On October 30, 2019 , our board of directors declared a quarterly cash dividend of $0.90 per common share payable on December 11, 2019 to holders of record at the close of business on November 20, 2019 . Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss by component, net of tax, were as follows (in millions): Three Months Ended September 30, 2019 2018 Foreign Currency Translation Adjustment Defined Benefit Plans Items Gains (Losses) on Cash Flow Hedges Total Foreign Currency Translation Adjustment Defined Benefit Plans Items Total Balance as of beginning of period $ (870 ) $ (481 ) $ 1 $ (1,350 ) $ (751 ) $ (511 ) $ (1,262 ) Other comprehensive income (loss) before reclassifications (180 ) — 1 (179 ) 20 — 20 Amounts reclassified from accumulated other comprehensive income (loss) — 2 (2 ) — — 7 7 Other comprehensive income (loss) (180 ) 2 (1 ) (179 ) 20 7 27 Balance as of end of period $ (1,050 ) $ (479 ) $ — $ (1,529 ) $ (731 ) $ (504 ) $ (1,235 ) Nine Months Ended September 30, 2019 2018 Foreign Currency Translation Adjustment Defined Benefit Plans Items Gains (Losses) on Cash Flow Hedges Total Foreign Currency Translation Adjustment Defined Benefit Plans Items Total Balance as of beginning of period $ (1,022 ) $ (485 ) $ — $ (1,507 ) $ (507 ) $ (433 ) $ (940 ) Other comprehensive income (loss) before reclassifications (28 ) — 2 (26 ) (224 ) — (224 ) Amounts reclassified from accumulated other comprehensive income (loss) — 6 (2 ) 4 — 20 20 Other comprehensive income (loss) (28 ) 6 — (22 ) (224 ) 20 (204 ) Reclassification of stranded income tax effects of Tax Reform to retained earnings — — — — — (91 ) (91 ) Balance as of end of period $ (1,050 ) $ (479 ) $ — $ (1,529 ) $ (731 ) $ (504 ) $ (1,235 ) |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | 8. VARIABLE INTEREST ENTITIES Consolidated VIEs We consolidate a VIE when we have a variable interest in an entity for which we are the primary beneficiary. As of September 30, 2019 , our significant consolidated VIEs included: • DGD, a joint venture with a subsidiary of Darling Ingredients Inc., which owns and operates a plant that processes animal fats, used cooking oils, and other vegetable oils into renewable diesel; and • Central Mexico Terminals, which is a collective group of three subsidiaries of Infraestructura Energetica Nova, S.A.B. de C.V. (IEnova), a Mexican company and subsidiary of Sempra Energy, a U.S. public company. We have terminaling agreements with Central Mexico Terminals that represent variable interests. We do not have an ownership interest in Central Mexico Terminals. The VIEs’ assets can only be used to settle their own obligations and the VIEs’ creditors have no recourse to our assets. We do not provide financial guarantees to our VIEs. Although we have provided credit facilities to some of our VIEs in support of their construction or acquisition activities, these transactions are eliminated in consolidation. Our financial position, results of operations, and cash flows are impacted by our consolidated VIEs’ performance, net of intercompany eliminations, to the extent of our ownership interest in each VIE. The following tables present summarized balance sheet information for the significant assets and liabilities of our VIEs, which are included in our balance sheets (in millions). September 30, 2019 DGD Central Mexico Other Total Assets Cash and cash equivalents $ 74 $ — $ 23 $ 97 Other current assets 110 26 94 230 Property, plant, and equipment, net 646 284 107 1,037 Liabilities Current liabilities, including current portion of debt and finance lease obligations $ 40 $ 307 $ 19 $ 366 Debt and finance lease obligations, less current portion 1 — 31 32 December 31, 2018 VLP (a) DGD Central Mexico Other Total Assets Cash and cash equivalents $ 152 $ 65 $ — $ 18 $ 235 Other current assets 2 112 20 64 198 Property, plant, and equipment, net 1,409 576 156 113 2,254 Liabilities Current liabilities, including current portion of debt and finance lease obligations $ 27 $ 28 $ 118 $ 9 $ 182 Debt and finance lease obligations, less current portion 990 — — 34 1,024 ____________________ (a) Prior to the completion of the Merger Transaction with VLP on January 10, 2019 as discussed in Note 2 , VLP was a publicly traded master limited partnership that we had determined was a VIE. VLP was formed by us to own, operate, develop, and acquire crude oil and refined petroleum products pipelines, terminals, and other transportation and logistics assets. As of December 31, 2018, we owned a 66.2 percent limited partner interest and a 2.0 percent general partner interest in VLP, and public unitholders owned a 31.8 percent limited partner interest. Upon completion of the Merger Transaction, VLP became our indirect wholly owned subsidiary and, as a result, was no longer a VIE. Non-Consolidated VIEs We hold variable interests in VIEs that have not been consolidated because we are not considered the primary beneficiary. These non-consolidated VIEs are not material to our financial position or results of operations and are accounted for as equity investments. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2019 | |
Defined Benefit Plan [Abstract] | |
EMPLOYEE BENEFIT PLANS | 9. EMPLOYEE BENEFIT PLANS The components of net periodic benefit cost related to our defined benefit plans were as follows (in millions): Pension Plans Other Postretirement Benefit Plans 2019 2018 2019 2018 Three months ended September 30: Service cost $ 29 $ 33 $ 1 $ 2 Interest cost 25 22 2 2 Expected return on plan assets (41 ) (40 ) — — Amortization of: Net actuarial (gain) loss 10 16 — (1 ) Prior service credit (5 ) (5 ) (2 ) (2 ) Special charges — 2 — — Net periodic benefit cost $ 18 $ 28 $ 1 $ 1 Nine months ended September 30: Service cost $ 89 $ 100 $ 3 $ 5 Interest cost 74 68 8 7 Expected return on plan assets (124 ) (122 ) — — Amortization of: Net actuarial (gain) loss 30 49 (2 ) (2 ) Prior service credit (14 ) (14 ) (6 ) (8 ) Special charges 2 7 1 — Net periodic benefit cost $ 57 $ 88 $ 4 $ 2 The components of net periodic benefit cost other than the service cost component (i.e., the non-service cost components) are included in “ other income, net ” in the statements of income. During the nine months ended September 30, 2019 and 2018 , we contributed $120 million and $132 million , respectively, to our pension plans and $13 million and $15 million , respectively, to our other postretirement benefit plans. Of the $120 million contributed to our pension plans during the nine months ended September 30, 2019 , $85 million was discretionary and was contributed during the third quarter of 2019. Our expected contribution to our pension plans has increased to approximately $125 million for 2019 primarily as a result of the discretionary pension contribution discussed above. Our expected contribution of approximately $21 million to our other postretirement benefit plans during 2019 has not changed. |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | 10. EARNINGS PER COMMON SHARE Earnings per common share were computed as follows (dollars and shares in millions, except per share amounts): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Earnings per common share: Net income attributable to Valero stockholders $ 609 $ 856 $ 1,362 $ 2,170 Less income allocated to participating securities 1 2 3 6 Net income available to common stockholders $ 608 $ 854 $ 1,359 $ 2,164 Weighted-average common shares outstanding 412 425 415 428 Earnings per common share $ 1.48 $ 2.01 $ 3.28 $ 5.05 Earnings per common share – assuming dilution: Net income attributable to Valero stockholders $ 609 $ 856 $ 1,362 $ 2,170 Weighted-average common shares outstanding 412 425 415 428 Effect of dilutive securities 1 2 1 2 Weighted-average common shares outstanding – assuming dilution 413 427 416 430 Earnings per common share – assuming dilution $ 1.48 $ 2.01 $ 3.28 $ 5.05 Participating securities include restricted stock and performance awards granted under our 2011 Omnibus Stock Incentive Plan. Dilutive securities include participating securities as well as outstanding stock options granted under our 2011 Omnibus Stock Incentive Plan. |
Revenues and Segment Informatio
Revenues and Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
REVENUES AND SEGMENT INFORMATION | 11. REVENUES AND SEGMENT INFORMATION Revenue from Contracts with Customers Disaggregation of Revenue Revenue is presented in the table below under “Segment Information” disaggregated by product because this is the level of disaggregation that management has determined to be beneficial to users of our financial statements. Receivables from Contracts with Customers Our receivables from contracts with customers are included in “receivables, net” and totaled $5.3 billion and $4.7 billion as of September 30, 2019 and December 31, 2018 , respectively. Remaining Performance Obligations We have spot and term contracts with customers, the majority of which are spot contracts with no remaining performance obligations. We do not disclose remaining performance obligations for contracts that have terms of one year or less. The transaction price for our remaining term contracts includes a fixed component and variable consideration (i.e., a commodity price), both of which are allocated entirely to a wholly unsatisfied promise to transfer a distinct good that forms part of a single performance obligation. The fixed component is not material and the variable consideration is highly uncertain. Therefore, as of September 30, 2019 , we have not disclosed the aggregate amount of the transaction price allocated to our remaining performance obligations. Segment Information Effective January 1, 2019, we revised our reportable segments to align with certain changes in how our chief operating decision maker manages and allocates resources to our business. Accordingly, we created a new reportable segment — renewable diesel — because of the growing importance of renewable fuels in the market and the growth of our investments in renewable fuels production. The renewable diesel segment includes the operations of DGD, which were transferred from the refining segment on January 1, 2019. Also effective January 1, 2019, we no longer have a VLP segment, and we include the operations of VLP in our refining segment. This change was made because of the Merger Transaction with VLP, as described in Note 2 , and the resulting change in how we manage VLP’s operations. We no longer manage VLP as a business but as logistics assets that support the operations of our refining segment. Our prior period segment information has been retrospectively adjusted to reflect our current segment presentation. We have three reportable segments — refining, ethanol, and renewable diesel. Each segment is a strategic business unit that offers different products and services by employing unique technologies and marketing strategies and whose operations and operating performance are managed and evaluated separately. Operating performance is measured based on the operating income generated by the segment, which includes revenues and expenses that are directly attributable to the management of the respective segment. Intersegment sales are generally derived from transactions made at prevailing market rates. The following is a description of each segment’s business operations. • The refining segment includes the operations of our 15 petroleum refineries, the associated marketing activities, and logistics assets that support our refining operations. The principal products manufactured by our refineries and sold by this segment include gasolines and blendstocks, distillates, and other products. • The ethanol segment includes the operations of our 14 ethanol plants, the associated marketing activities, and logistics assets that support our ethanol operations. The principal products manufactured by our ethanol plants are ethanol and distillers grains. This segment sells some ethanol to the refining segment for blending into gasoline, which is sold to that segment’s customers as a finished gasoline product. • The renewable diesel segment includes the operations of DGD, our consolidated joint venture as discussed in Note 8 . The principal product manufactured by DGD and sold by this segment is renewable diesel. This segment sells some renewable diesel to the refining segment, which is then sold to that segment’s customers. Operations that are not included in any of the reportable segments are included in the corporate category. The following tables reflect information about our operating income (loss) by reportable segment (in millions): Refining Ethanol Renewable Diesel Corporate and Eliminations Total Three months ended September 30, 2019: Revenues: Revenues from external customers $ 26,145 $ 891 $ 212 $ 1 $ 27,249 Intersegment revenues 2 57 50 (109 ) — Total revenues 26,147 948 262 (108 ) 27,249 Cost of sales: Cost of materials and other 23,432 847 164 (108 ) 24,335 Operating expenses (excluding depreciation and amortization expense reflected below) 1,100 121 18 — 1,239 Depreciation and amortization expense 518 23 15 — 556 Total cost of sales 25,050 991 197 (108 ) 26,130 Other operating expenses 10 — — — 10 General and administrative expenses (excluding depreciation and amortization expense reflected below) — — — 217 217 Depreciation and amortization expense — — — 11 11 Operating income (loss) by segment $ 1,087 $ (43 ) $ 65 $ (228 ) $ 881 Three months ended September 30, 2018: Revenues: Revenues from external customers $ 29,894 $ 864 $ 90 $ 1 $ 30,849 Intersegment revenues 5 68 15 (88 ) — Total revenues 29,899 932 105 (87 ) 30,849 Cost of sales: Cost of materials and other 26,928 776 85 (88 ) 27,701 Operating expenses (excluding depreciation and amortization expense reflected below) 1,058 116 19 — 1,193 Depreciation and amortization expense 479 19 6 — 504 Total cost of sales 28,465 911 110 (88 ) 29,398 Other operating expenses 10 — — — 10 General and administrative expenses (excluding depreciation and amortization expense reflected below) — — — 209 209 Depreciation and amortization expense — — — 13 13 Operating income (loss) by segment $ 1,424 $ 21 $ (5 ) $ (221 ) $ 1,219 Refining Ethanol Renewable Diesel Corporate and Eliminations Total Nine months ended September 30, 2019: Revenues: Revenues from external customers $ 77,109 $ 2,648 $ 686 $ 2 $ 80,445 Intersegment revenues 12 162 174 (348 ) — Total revenues 77,121 2,810 860 (346 ) 80,445 Cost of sales: Cost of materials and other 69,769 2,396 577 (346 ) 72,396 Operating expenses (excluding depreciation and amortization expense reflected below) 3,197 378 54 — 3,629 Depreciation and amortization expense 1,539 68 38 — 1,645 Total cost of sales 74,505 2,842 669 (346 ) 77,670 Other operating expenses 13 1 — — 14 General and administrative expenses (excluding depreciation and amortization expense reflected below) — — — 625 625 Depreciation and amortization expense — — — 39 39 Operating income (loss) by segment $ 2,603 $ (33 ) $ 191 $ (664 ) $ 2,097 Nine months ended September 30, 2018: Revenues: Revenues from external customers $ 85,371 $ 2,625 $ 304 $ 3 $ 88,303 Intersegment revenues 20 156 103 (279 ) — Total revenues 85,391 2,781 407 (276 ) 88,303 Cost of sales: Cost of materials and other 77,195 2,279 122 (279 ) 79,317 Operating expenses (excluding depreciation and amortization expense reflected below) 3,057 336 46 — 3,439 Depreciation and amortization expense 1,423 57 19 — 1,499 Total cost of sales 81,675 2,672 187 (279 ) 84,255 Other operating expenses 41 — — — 41 General and administrative expenses (excluding depreciation and amortization expense reflected below) — — — 695 695 Depreciation and amortization expense — — — 39 39 Operating income by segment $ 3,675 $ 109 $ 220 $ (731 ) $ 3,273 The following table provides a disaggregation of revenues from external customers for our principal products by reportable segment (in millions). Three Months Ended Nine Months Ended 2019 2018 2019 2018 Refining: Gasolines and blendstocks $ 10,978 $ 12,660 $ 31,882 $ 35,803 Distillates 12,861 13,963 38,254 40,866 Other product revenues 2,306 3,271 6,973 8,702 Total refining revenues 26,145 29,894 77,109 85,371 Ethanol: Ethanol 714 695 2,108 2,092 Distillers grains 177 169 540 533 Total ethanol revenues 891 864 2,648 2,625 Renewable diesel: Renewable diesel 212 90 686 304 Corporate – other revenues 1 1 2 3 Revenues $ 27,249 $ 30,849 $ 80,445 $ 88,303 Total assets by reportable segment were as follows (in millions): September 30, December 31, Refining $ 45,646 $ 43,488 Ethanol 1,617 1,691 Renewable diesel 878 787 Corporate and eliminations 3,088 4,189 Total assets $ 51,229 $ 50,155 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | 12. SUPPLEMENTAL CASH FLOW INFORMATION In order to determine net cash provided by operating activities, net income is adjusted by, among other things, changes in current assets and current liabilities as follows (in millions): Nine Months Ended 2019 2018 Decrease (increase) in current assets: Receivables, net $ (669 ) $ (1,307 ) Inventories 126 (1,134 ) Prepaid expenses and other 373 (65 ) Increase (decrease) in current liabilities: Accounts payable 914 1,890 Accrued expenses (92 ) (168 ) Taxes other than income taxes payable (25 ) (32 ) Income taxes payable 101 (358 ) Changes in current assets and current liabilities $ 728 $ (1,174 ) Cash flows related to interest and income taxes were as follows (in millions): Nine Months Ended 2019 2018 Interest paid in excess of amount capitalized, including interest on finance leases $ 303 $ 344 Income taxes paid (received), net (184 ) 1,116 Supplemental cash flow information related to our operating and finance leases was as follows (in millions): Nine Months Ended September 30, 2019 Operating Leases Finance Leases Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows $ 329 $ 38 Investing cash flows 1 — Financing cash flows — 24 Changes in lease balances resulting from new and modified leases (a) 1,673 221 ___________________ (a) Includes noncash activity of $1.3 billion for ROU assets for operating leases recorded on January 1, 2019 upon adoption of Topic 842. Noncash investing and financing activities during the nine months ended September 30, 2019 also included the derecognition of the property, plant, and equipment and long-term liability related to previous owner accounting and the recognition of our investment in joint venture associated with a build-to-suit lease arrangement as described in Note 6 . Noncash investing and financing activities during the nine months ended September 30, 2018 included the recognition of terminal assets and related obligation under owner accounting as described in Note 6 . |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 13. FAIR VALUE MEASUREMENTS Recurring Fair Value Measurements The following tables present information (in millions) about our assets and liabilities recognized at their fair values in our balance sheets categorized according to the fair value hierarchy of the inputs utilized by us to determine the fair values as of September 30, 2019 and December 31, 2018 . We have elected to offset the fair value amounts recognized for multiple similar derivative contracts executed with the same counterparty, including any related cash collateral assets or obligations as shown below; however, fair value amounts by hierarchy level are presented in the following tables on a gross basis. We have no derivative contracts that are subject to master netting arrangements that are reflected gross on the balance sheet. September 30, 2019 Total Gross Fair Value Effect of Counter- party Netting Effect of Cash Collateral Netting Net Carrying Value on Balance Sheet Cash Collateral Paid or Received Not Offset Fair Value Hierarchy Level 1 Level 2 Level 3 Assets: Commodity derivative contracts $ 634 $ — $ — $ 634 $ (620 ) $ (9 ) $ 5 $ — Physical purchase contracts — 2 — 2 n/a n/a 2 n/a Foreign currency contracts 2 — — 2 n/a n/a 2 n/a Investments of certain benefit plans 62 — 9 71 n/a n/a 71 n/a Total $ 698 $ 2 $ 9 $ 709 $ (620 ) $ (9 ) $ 80 Liabilities: Commodity derivative contracts $ 729 $ — $ — $ 729 $ (620 ) $ (109 ) $ — $ (50 ) Environmental credit obligations — 3 — 3 n/a n/a 3 n/a Physical purchase contracts — 4 — 4 n/a n/a 4 n/a Foreign currency contracts 6 — — 6 n/a n/a 6 n/a Total $ 735 $ 7 $ — $ 742 $ (620 ) $ (109 ) $ 13 December 31, 2018 Total Gross Fair Value Effect of Counter- party Netting Effect of Cash Collateral Netting Net Carrying Value on Balance Sheet Cash Collateral Paid or Received Not Offset Fair Value Hierarchy Level 1 Level 2 Level 3 Assets: Commodity derivative contracts $ 2,792 $ — $ — $ 2,792 $ (2,669 ) $ (34 ) $ 89 $ — Foreign currency contracts 4 — — 4 n/a n/a 4 n/a Investments of certain benefit plans 60 — 9 69 n/a n/a 69 n/a Total $ 2,856 $ — $ 9 $ 2,865 $ (2,669 ) $ (34 ) $ 162 Liabilities: Commodity derivative contracts $ 2,681 $ — $ — $ 2,681 $ (2,669 ) $ (12 ) $ — $ (136 ) Environmental credit obligations — 13 — 13 n/a n/a 13 n/a Physical purchase contracts — 5 — 5 n/a n/a 5 n/a Foreign currency contracts 1 — — 1 n/a n/a 1 n/a Total $ 2,682 $ 18 $ — $ 2,700 $ (2,669 ) $ (12 ) $ 19 A description of our assets and liabilities recognized at fair value along with the valuation methods and inputs we used to develop their fair value measurements are as follows: • Commodity derivative contracts consist primarily of exchange-traded futures, which are used to reduce the impact of price volatility on our results of operations and cash flows as discussed in Note 14 . These contracts are measured at fair value using a market approach based on quoted prices from the commodity exchange and are categorized in Level 1 of the fair value hierarchy. • Physical purchase contracts represent the fair value of fixed-price corn purchase contracts. The fair values of these purchase contracts are measured using a market approach based on quoted prices from the commodity exchange or an independent pricing service and are categorized in Level 2 of the fair value hierarchy. • Investments of certain benefit plans consist of investment securities held by trusts for the purpose of satisfying a portion of our obligations under certain U.S. nonqualified benefit plans. The plan assets categorized in Level 1 of the fair value hierarchy are measured at fair value using a market approach based on quoted prices from national securities exchanges. The plan assets categorized in Level 3 of the fair value hierarchy represent insurance contracts, the fair value of which is provided by the insurer. • Foreign currency contracts consist of foreign currency exchange and purchase contracts and foreign currency swap agreements related to our international operations to manage our exposure to exchange rate fluctuations on transactions denominated in currencies other than the local (functional) currencies of our operations. These contracts are valued based on quoted foreign currency exchange rates and are categorized in Level 1 of the fair value hierarchy. • Environmental credit obligations represent our liability for the purchase of (i) biofuel credits (primarily Renewable Identification Numbers (RINs) in the U.S.) needed to satisfy our obligation to blend biofuels into the products we produce and (ii) emission credits under the California Global Warming Solutions Act (the California cap-and-trade system, also known as AB 32) and similar programs (collectively, the cap-and-trade systems). To the degree we are unable to blend biofuels (such as ethanol and biodiesel) at percentages required under the biofuel programs, we must purchase biofuel credits to comply with these programs. Under the cap-and-trade systems, we must purchase emission credits to comply with these systems. The liability for environmental credits is based on our deficit for such credits as of the balance sheet date, if any, after considering any credits acquired or under contract, and is equal to the product of the credits deficit and the market price of these credits as of the balance sheet date. The environmental credit obligations are categorized in Level 2 of the fair value hierarchy and are measured at fair value using the market approach based on quoted prices from an independent pricing service. There were no transfers into or out of Level 3 for assets and liabilities held as of September 30, 2019 and December 31, 2018 that were measured at fair value on a recurring basis. There was no significant activity during the three and nine months ended September 30, 2019 and 2018 related to the fair value amounts categorized in Level 3 as of September 30, 2019 and December 31, 2018 . Nonrecurring Fair Value Measurements There were no assets or liabilities that were measured at fair value on a nonrecurring basis as of September 30, 2019 and December 31, 2018 . Other Financial Instruments Financial instruments that we recognize in our balance sheets at their carrying amounts are shown in the following table along with their associated fair values (in millions): September 30, 2019 December 31, 2018 Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Financial assets: Cash and cash equivalents Level 1 $ 2,137 $ 2,137 $ 2,982 $ 2,982 Financial liabilities: Debt (excluding finance leases) Level 2 8,788 10,336 8,503 8,986 |
Price Risk Management Activitie
Price Risk Management Activities | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
PRICE RISK MANAGEMENT ACTIVITIES | 14. PRICE RISK MANAGEMENT ACTIVITIES General We are exposed to market risks primarily related to the volatility in the price of commodities, foreign currency exchange rates, and the price of credits needed to comply with various government and regulatory programs. We enter into derivative instruments to manage some of these risks, including derivative instruments related to the various commodities we purchase or produce, and foreign currency exchange and purchase contracts, as described below under “Risk Management Activities by Type of Risk.” These derivative instruments are recorded as either assets or liabilities measured at their fair values (see Note 13 ), as summarized below under “Fair Values of Derivative Instruments.” The effect of these derivative instruments on our income is summarized below under “Effect of Derivative Instruments on Income.” Risk Management Activities by Type of Risk Commodity Price Risk We are exposed to market risks related to the volatility in the price of crude oil, refined petroleum products (primarily gasoline and distillate), renewable diesel, grain (primarily corn), soybean oil, and natural gas used in our operations. To reduce the impact of price volatility on our results of operations and cash flows, we use commodity derivative instruments, such as futures and options. Our positions in commodity derivative instruments are monitored and managed on a daily basis by our risk control group to ensure compliance with our stated risk management policy that has been approved by our board of directors. We primarily use commodity derivative instruments as cash flow hedges and economic hedges. Our objective for entering into each type of hedge is described below. • Cash flow hedges – The objective of our cash flow hedges is to lock in the price of forecasted (i) feedstock, refined petroleum product, or natural gas purchases, or (ii) refined petroleum product or renewable diesel sales at existing market prices that we deem favorable. • Economic hedges – Our objectives for holding economic hedges are to (i) manage price volatility in certain feedstock and refined petroleum product inventories and fixed-price purchase contracts, and (ii) lock in the price of forecasted feedstock, refined petroleum product, or natural gas purchases, or refined petroleum product or renewable diesel sales at existing market prices that we deem favorable. As of September 30, 2019 , we had the following outstanding commodity derivative instruments that were used as cash flow hedges and economic hedges, as well as commodity derivative instruments related to the physical purchase of corn at a fixed price. The information presents the notional volume of outstanding contracts by type of instrument and year of maturity (volumes in thousands of barrels, except corn contracts that are presented in thousands of bushels). Notional Contract Volumes by Year of Maturity 2019 2020 Derivatives designated as cash flow hedges: Renewable diesel: Futures – long 906 73 Futures – short 2,571 242 Derivatives designated as economic hedges: Crude oil and refined petroleum products: Futures – long 136,760 2,849 Futures – short 134,196 3,063 Options – long 16,634 — Options – short 15,987 — Corn: Futures – long 71,555 1,540 Futures – short 88,825 10,345 Physical contracts – long 20,368 8,831 Foreign Currency Risk We are exposed to exchange rate fluctuations on transactions related to our international operations that are denominated in currencies other than the local (functional) currencies of our operations. To manage our exposure to these exchange rate fluctuations, we use foreign currency contracts. These contracts are not designated as hedging instruments for accounting purposes and therefore are classified as economic hedges. As of September 30, 2019 , we had foreign currency contracts to purchase $436 million of U.S. dollars, $1.8 billion of U.S. dollar equivalent Canadian dollars, and $150 million of U.S. dollar equivalent pounds sterling. All of these commitments matured on or before October 31, 2019 . Environmental Compliance Program Price Risk We are exposed to market risk related to the volatility in the price of credits needed to comply with various governmental and regulatory environmental compliance programs. To manage this risk, we enter into contracts to purchase these credits when prices are deemed favorable. Some of these contracts are derivative instruments; however, we elect the normal purchase exception and do not record these contracts at their fair values. Certain of these programs require us to blend biofuels into the products we produce, and we are subject to such programs in most of the countries in which we operate. These countries set annual quotas for the percentage of biofuels that must be blended into the motor fuels consumed in these countries. As a producer of motor fuels from petroleum, we are obligated to blend biofuels into the products we produce at a rate that is at least equal to the applicable quota. To the degree we are unable to blend at the applicable rate, we must purchase biofuel credits (primarily RINs in the U.S.). We are exposed to the volatility in the market price of these credits, and we manage that risk by purchasing biofuel credits when prices are deemed favorable. The cost of meeting our obligations under these compliance programs was $69 million and $94 million for the three months ended September 30, 2019 and 2018 , respectively, and $227 million and $431 million for the nine months ended September 30, 2019 and 2018 , respectively. These amounts are reflected in cost of materials and other. Fair Values of Derivative Instruments The following tables provide information about the fair values of our derivative instruments as of September 30, 2019 and December 31, 2018 (in millions) and the line items in the balance sheets in which the fair values are reflected. See Note 13 for additional information related to the fair values of our derivative instruments. As indicated in Note 13 , we net fair value amounts recognized for multiple similar derivative contracts executed with the same counterparty under master netting arrangements, including cash collateral assets and obligations. The following tables, however, are presented on a gross asset and gross liability basis, which results in the reflection of certain assets in liability accounts and certain liabilities in asset accounts. Balance Sheet Location September 30, 2019 December 31, 2018 Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments: Commodity contracts Receivables, net $ 6 $ 6 $ — $ — Derivatives not designated as hedging instruments: Commodity contracts Receivables, net $ 628 $ 723 $ 2,792 $ 2,681 Physical purchase contracts Inventories 2 4 — 5 Foreign currency contracts Receivables, net 2 — 4 — Foreign currency contracts Accrued expenses — 6 — 1 Total $ 632 $ 733 $ 2,796 $ 2,687 Market Risk Our price risk management activities involve the receipt or payment of fixed price commitments into the future. These transactions give rise to market risk, which is the risk that future changes in market conditions may make an instrument less valuable. We closely monitor and manage our exposure to market risk on a daily basis in accordance with policies approved by our board of directors. Market risks are monitored by our risk control group to ensure compliance with our stated risk management policy. We do not require any collateral or other security to support derivative instruments into which we enter. We also do not have any derivative instruments that require us to maintain a minimum investment-grade credit rating. Effect of Derivative Instruments on Income The following table provides information about the gain (loss) recognized in income on our derivative instruments and the line items in the statements of income in which such gains (losses) are reflected (in millions). Derivatives Not Designated Location of Gain (Loss) Three Months Ended Nine Months Ended 2019 2018 2019 2018 Commodity contracts Revenues $ (1 ) $ — $ 4 $ — Commodity contracts Cost of materials and other (26 ) (98 ) (25 ) (125 ) Foreign currency contracts Cost of materials and other 9 (7 ) 2 7 Foreign currency contracts Other income, net (19 ) 11 36 (6 ) |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | 15. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS In connection with the completion of the Merger Transaction as described in Note 2 , Valero Energy Corporation, the parent company, entered into a guarantee agreement to fully and unconditionally guarantee the prompt payment, when due, of the following debt issued by Valero Energy Partners LP, an indirect wholly owned subsidiary of Valero Energy Corporation, that was outstanding as of September 30, 2019 : • 4.375 percent Senior Notes due December 15, 2026 ; and • 4.5 percent Senior Notes due March 15, 2028 . The following condensed consolidating financial information is provided as an alternative to providing separate financial statements for Valero Energy Partners LP, which has no independent assets or operations. The financial position, results of operations, and cash flows of Valero Energy Partners LP’s wholly owned subsidiaries are included in “Other Non-Guarantor Subsidiaries.” The accounts for all companies reflected herein are presented using the equity method of accounting for investments in subsidiaries. Condensed Consolidating Balance Sheet September 30, 2019 (in millions) Valero Valero Other Non- Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 209 $ — $ 1,928 $ — $ 2,137 Receivables, net — — 7,994 — 7,994 Receivables from affiliates 4,396 — 12,406 (16,802 ) — Inventories — — 6,376 — 6,376 Prepaid expenses and other 64 — 462 — 526 Total current assets 4,669 — 29,166 (16,802 ) 17,033 Property, plant and equipment, at cost — — 43,539 — 43,539 Accumulated depreciation — — (14,649 ) — (14,649 ) Property, plant and equipment, net — — 28,890 — 28,890 Investment in affiliates 36,327 2,566 383 (39,276 ) — Deferred charges and other assets, net 552 — 4,754 — 5,306 Total assets $ 41,548 $ 2,566 $ 63,193 $ (56,078 ) $ 51,229 LIABILITIES AND EQUITY Current liabilities: Current portion of debt and finance lease obligations $ — $ — $ 402 $ — $ 402 Accounts payable — — 9,504 — 9,504 Accounts payable to affiliates 11,223 1,183 4,396 (16,802 ) — Accrued expenses 155 7 719 — 881 Taxes other than income taxes payable — — 1,175 — 1,175 Income taxes payable 83 — 85 — 168 Total current liabilities 11,461 1,190 16,281 (16,802 ) 12,130 Debt and finance lease obligations, less current portion 7,094 991 1,085 — 9,170 Deferred income tax liabilities — 2 4,918 — 4,920 Other long-term liabilities 1,886 — 1,535 — 3,421 Equity: Stockholders’ equity: Common stock 7 — 1 (1 ) 7 Additional paid-in capital 6,818 — 9,765 (9,765 ) 6,818 Treasury stock, at cost (15,472 ) — — — (15,472 ) Retained earnings 31,283 — 30,286 (30,286 ) 31,283 Partners’ equity — 383 — (383 ) — Accumulated other comprehensive loss (1,529 ) — (1,159 ) 1,159 (1,529 ) Total stockholders’ equity 21,107 383 38,893 (39,276 ) 21,107 Noncontrolling interests — — 481 — 481 Total equity 21,107 383 39,374 (39,276 ) 21,588 Total liabilities and equity $ 41,548 $ 2,566 $ 63,193 $ (56,078 ) $ 51,229 Condensed Consolidating Balance Sheet December 31, 2018 (in millions) Valero Valero Other Non- Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 291 $ 152 $ 2,539 $ — $ 2,982 Receivables, net — — 7,345 — 7,345 Receivables from affiliates 4,369 2 10,684 (15,055 ) — Inventories — — 6,532 — 6,532 Prepaid expenses and other 466 — 355 (5 ) 816 Total current assets 5,126 154 27,455 (15,060 ) 17,675 Property, plant and equipment, at cost — — 42,473 — 42,473 Accumulated depreciation — — (13,625 ) — (13,625 ) Property, plant and equipment, net — — 28,848 — 28,848 Investment in affiliates 34,696 2,267 (321 ) (36,642 ) — Long-term notes receivable from affiliates 285 — — (285 ) — Deferred charges and other assets, net 572 1 3,059 — 3,632 Total assets $ 40,679 $ 2,422 $ 59,041 $ (51,987 ) $ 50,155 LIABILITIES AND EQUITY Current liabilities: Current portion of debt and finance lease obligations $ — $ — $ 238 $ — $ 238 Accounts payable 14 — 8,580 — 8,594 Accounts payable to affiliates 9,847 837 4,370 (15,054 ) — Accrued expenses 155 7 468 — 630 Accrued expenses to affiliates — 1 — (1 ) — Taxes other than income taxes payable — — 1,213 — 1,213 Income taxes payable 53 1 — (5 ) 49 Total current liabilities 10,069 846 14,869 (15,060 ) 10,724 Debt and finance lease obligations, less current portion 6,955 990 926 — 8,871 Long-term notes payable to affiliates — 285 — (285 ) — Deferred income tax liabilities — 2 4,960 — 4,962 Other long-term liabilities 1,988 — 879 — 2,867 Equity: Stockholders’ equity: Common stock 7 — 1 (1 ) 7 Additional paid-in capital 7,048 — 9,754 (9,754 ) 7,048 Treasury stock, at cost (14,925 ) — — — (14,925 ) Retained earnings 31,044 — 28,305 (28,305 ) 31,044 Partners’ equity — 299 — (299 ) — Accumulated other comprehensive loss (1,507 ) — (1,097 ) 1,097 (1,507 ) Total stockholders’ equity 21,667 299 36,963 (37,262 ) 21,667 Noncontrolling interests — — 444 620 1,064 Total equity 21,667 299 37,407 (36,642 ) 22,731 Total liabilities and equity $ 40,679 $ 2,422 $ 59,041 $ (51,987 ) $ 50,155 Condensed Consolidating Statement of Income Three Months Ended September 30, 2019 (in millions) Valero Valero Other Non- Eliminations Consolidated Revenues $ — $ — $ 27,249 $ — $ 27,249 Cost of sales: Cost of materials and other — — 24,335 — 24,335 Operating expenses (excluding depreciation and amortization expense reflected below) — — 1,239 — 1,239 Depreciation and amortization expense — — 556 — 556 Total cost of sales — — 26,130 — 26,130 Other operating expenses — — 10 — 10 General and administrative expenses (excluding depreciation and amortization expense reflected below) 2 — 215 — 217 Depreciation and amortization expense — — 11 — 11 Operating income (loss) (2 ) — 883 — 881 Equity in earnings of subsidiaries 740 112 100 (952 ) — Other income, net 54 — 158 (178 ) 34 Interest and debt expense, net of capitalized interest (230 ) (12 ) (47 ) 178 (111 ) Income before income tax expense (benefit) 562 100 1,094 (952 ) 804 Income tax expense (benefit) (47 ) — 212 — 165 Net income 609 100 882 (952 ) 639 Less: Net income attributable to noncontrolling interests — — 30 — 30 Net income attributable to stockholders $ 609 $ 100 $ 852 $ (952 ) $ 609 Condensed Consolidating Statement of Income Three Months Ended September 30, 2018 (in millions) Valero Valero Other Non- Eliminations Consolidated Revenues $ — $ — $ 30,849 $ — $ 30,849 Cost of sales: Cost of materials and other — — 27,701 — 27,701 Operating expenses (excluding depreciation and amortization expense reflected below) — — 1,193 — 1,193 Depreciation and amortization expense — — 504 — 504 Total cost of sales — — 29,398 — 29,398 Other operating expenses — — 10 — 10 General and administrative expenses (excluding depreciation and amortization expense reflected below) 3 — 206 — 209 Depreciation and amortization expense — — 13 — 13 Operating income (loss) (3 ) — 1,222 — 1,219 Equity in earnings of subsidiaries 1,005 85 53 (1,143 ) — Other income, net 65 — 161 (184 ) 42 Interest and debt expense, net of capitalized interest (230 ) (15 ) (50 ) 184 (111 ) Income before income tax expense (benefit) 837 70 1,386 (1,143 ) 1,150 Income tax expense (benefit) (19 ) — 295 — 276 Net income 856 70 1,091 (1,143 ) 874 Less: Net income attributable to noncontrolling interests — — 1 17 18 Net income attributable to stockholders $ 856 $ 70 $ 1,090 $ (1,160 ) $ 856 Condensed Consolidating Statement of Income Nine Months Ended September 30, 2019 (in millions) Valero Valero Other Non- Eliminations Consolidated Revenues $ — $ — $ 80,445 $ — $ 80,445 Cost of sales: Cost of materials and other — — 72,396 — 72,396 Operating expenses (excluding depreciation and amortization expense reflected below) — — 3,629 — 3,629 Depreciation and amortization expense — — 1,645 — 1,645 Total cost of sales — — 77,670 — 77,670 Other operating expenses — — 14 — 14 General and administrative expenses (excluding depreciation and amortization expense reflected below) 3 — 622 — 625 Depreciation and amortization expense — — 39 — 39 Operating income (loss) (3 ) — 2,100 — 2,097 Equity in earnings of subsidiaries 1,763 299 261 (2,323 ) — Other income, net 138 — 462 (532 ) 68 Interest and debt expense, net of capitalized interest (693 ) (36 ) (138 ) 532 (335 ) Income before income tax expense (benefit) 1,205 263 2,685 (2,323 ) 1,830 Income tax expense (benefit) (157 ) — 533 — 376 Net income 1,362 263 2,152 (2,323 ) 1,454 Less: Net income attributable to noncontrolling interests — — 90 2 92 Net income attributable to stockholders $ 1,362 $ 263 $ 2,062 $ (2,325 ) $ 1,362 Condensed Consolidating Statement of Income Nine Months Ended September 30, 2018 (in millions) Valero Valero Other Non- Eliminations Consolidated Revenues $ — $ — $ 88,303 $ — $ 88,303 Cost of sales: Cost of materials and other — — 79,317 — 79,317 Operating expenses (excluding depreciation and amortization expense reflected below) — — 3,439 — 3,439 Depreciation and amortization expense — — 1,499 — 1,499 Total cost of sales — — 84,255 — 84,255 Other operating expenses — — 41 — 41 General and administrative expenses (excluding depreciation and amortization expense reflected below) 4 — 691 — 695 Depreciation and amortization expense — — 39 — 39 Operating income (loss) (4 ) — 3,277 — 3,273 Equity in earnings of subsidiaries 2,634 241 152 (3,027 ) — Other income, net 163 1 455 (531 ) 88 Interest and debt expense, net of capitalized interest (681 ) (41 ) (165 ) 531 (356 ) Income before income tax expense (benefit) 2,112 201 3,719 (3,027 ) 3,005 Income tax expense (benefit) (58 ) 1 731 — 674 Net income 2,170 200 2,988 (3,027 ) 2,331 Less: Net income attributable to noncontrolling interests — — 113 48 161 Net income attributable to stockholders $ 2,170 $ 200 $ 2,875 $ (3,075 ) $ 2,170 Condensed Consolidating Statement of Comprehensive Income Three Months Ended September 30, 2019 (in millions) Valero Valero Other Non- Eliminations Consolidated Net income $ 609 $ 100 $ 882 $ (952 ) $ 639 Other comprehensive loss: Foreign currency translation adjustment (180 ) — (163 ) 163 (180 ) Net gain on pension and other postretirement benefits 3 — — — 3 Net loss on cash flow hedges (2 ) — (4 ) 2 (4 ) Other comprehensive loss before income tax benefit (179 ) — (167 ) 165 (181 ) Income tax benefit related to items of other comprehensive loss — — (1 ) 1 — Other comprehensive loss (179 ) — (166 ) 164 (181 ) Comprehensive income 430 100 716 (788 ) 458 Less: Comprehensive income attributable to noncontrolling interests — — 28 — 28 Comprehensive income attributable to stockholders $ 430 $ 100 $ 688 $ (788 ) $ 430 Condensed Consolidating Statement of Comprehensive Income Three Months Ended September 30, 2018 (in millions) Valero Valero Other Non- Eliminations Consolidated Net income $ 856 $ 70 $ 1,091 $ (1,143 ) $ 874 Other comprehensive income: Foreign currency translation adjustment 20 — 2 1 23 Net gain on pension and other postretirement benefits 8 — — — 8 Other comprehensive income before income tax expense 28 — 2 1 31 Income tax expense related to items of other comprehensive income 1 — — — 1 Other comprehensive income 27 — 2 1 30 Comprehensive income 883 70 1,093 (1,142 ) 904 Less: Comprehensive income attributable to noncontrolling interests — — 4 17 21 Comprehensive income attributable to stockholders $ 883 $ 70 $ 1,089 $ (1,159 ) $ 883 Condensed Consolidating Statement of Comprehensive Income Nine Months Ended September 30, 2019 (in millions) Valero Valero Other Non- Eliminations Consolidated Net income $ 1,362 $ 263 $ 2,152 $ (2,323 ) $ 1,454 Other comprehensive loss: Foreign currency translation adjustment (28 ) — (59 ) 62 (25 ) Net gain on pension and other postretirement benefits 8 — — — 8 Net gain on cash flow hedges — — 1 — 1 Other comprehensive loss before income tax expense (20 ) — (58 ) 62 (16 ) Income tax expense related to items of other comprehensive loss 2 — — — 2 Other comprehensive loss (22 ) — (58 ) 62 (18 ) Comprehensive income 1,340 263 2,094 (2,261 ) 1,436 Less: Comprehensive income attributable to noncontrolling interests — — 94 2 96 Comprehensive income attributable to stockholders $ 1,340 $ 263 $ 2,000 $ (2,263 ) $ 1,340 Condensed Consolidating Statement of Comprehensive Income Nine Months Ended September 30, 2018 (in millions) Valero Valero Other Non- Eliminations Consolidated Net income $ 2,170 $ 200 $ 2,988 $ (3,027 ) $ 2,331 Other comprehensive loss: Foreign currency translation adjustment (224 ) — (190 ) 191 (223 ) Net gain on pension and other postretirement benefits 25 — 1 (1 ) 25 Other comprehensive loss before income tax expense (199 ) — (189 ) 190 (198 ) Income tax expense related to items of other comprehensive loss 5 — — — 5 Other comprehensive loss (204 ) — (189 ) 190 (203 ) Comprehensive income 1,966 200 2,799 (2,837 ) 2,128 Less: Comprehensive income attributable to noncontrolling interests — — 114 48 162 Comprehensive income attributable to stockholders $ 1,966 $ 200 $ 2,685 $ (2,885 ) $ 1,966 Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2019 (in millions) Valero Valero Other Non- Eliminations Consolidated Net cash provided by (used in) operating activities $ 15 $ (35 ) $ 4,203 $ (360 ) $ 3,823 Cash flows from investing activities: Capital expenditures (excluding VIEs) — — (1,179 ) — (1,179 ) Capital expenditures of VIEs: DGD — — (91 ) — (91 ) Other VIEs — — (139 ) — (139 ) Deferred turnaround and catalyst cost expenditures (excluding VIEs) — — (583 ) — (583 ) Deferred turnaround and catalyst cost expenditures of DGD — — (16 ) — (16 ) Investments in unconsolidated joint ventures — — (122 ) — (122 ) Acquisitions of undivided interests — — (65 ) — (65 ) Intercompany investing activities 289 2 (1,533 ) 1,242 — Other investing activities, net — — 5 — 5 Net cash provided by (used in) investing activities 289 2 (3,723 ) 1,242 (2,190 ) Cash flows from financing activities: Proceeds from debt issuances and borrowings (excluding VIEs) 992 — 900 — 1,892 Proceeds from borrowings of VIEs — — 148 — 148 Repayments of debt and finance lease obligations (excluding VIEs) (871 ) — (925 ) — (1,796 ) Repayments of debt of VIEs — — (4 ) — (4 ) Intercompany financing activities 1,187 160 (105 ) (1,242 ) — Purchases of common stock for treasury (555 ) — — — (555 ) Common stock dividends (1,123 ) — (81 ) 81 (1,123 ) Acquisition of VLP publicly held common units — — (950 ) — (950 ) Distributions to noncontrolling interests and unitholders of VLP — (279 ) (57 ) 279 (57 ) Other financing activities, net (16 ) — (13 ) — (29 ) Net cash used in financing activities (386 ) (119 ) (1,087 ) (882 ) (2,474 ) Effect of foreign exchange rate changes on cash — — (4 ) — (4 ) Net decrease in cash and cash equivalents (82 ) (152 ) (611 ) — (845 ) Cash and cash equivalents at beginning of period 291 152 2,539 — 2,982 Cash and cash equivalents at end of period $ 209 $ — $ 1,928 $ — $ 2,137 Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2018 (in millions) Valero Valero Other Non- Eliminations Consolidated Net cash provided by (used in) operating activities $ (824 ) $ (37 ) $ 3,709 $ (155 ) $ 2,693 Cash flows from investing activities: Capital expenditures (excluding VIEs) — — (1,025 ) — (1,025 ) Capital expenditures of VIEs: DGD — — (143 ) — (143 ) Other VIEs — — (89 ) — (89 ) Deferred turnaround and catalyst cost expenditures (excluding VIEs) — — (641 ) — (641 ) Deferred turnaround and catalyst cost expenditures of DGD — — (20 ) — (20 ) Investments in unconsolidated joint ventures — — (124 ) — (124 ) Peru Acquisition, net of cash acquired — — (466 ) — (466 ) Acquisitions of undivided interests — — (181 ) — (181 ) Minor acquisitions — — (88 ) — (88 ) Intercompany investing activities 590 292 (1,425 ) 543 — Other investing activities, net — — 9 — 9 Net cash provided by (used in) investing activities 590 292 (4,193 ) 543 (2,768 ) Cash flows from financing activities: Proceeds from debt issuances and borrowings (excluding VIEs) 750 498 10 — 1,258 Proceeds from borrowings of VIEs — — 71 — 71 Repayments of debt and finance lease obligations (excluding VIEs) (787 ) (410 ) (151 ) — (1,348 ) Repayments of debt of VIEs — — (4 ) — (4 ) Intercompany financing activities 1,435 (94 ) (798 ) (543 ) — Purchases of common stock for treasury (1,081 ) — — — (1,081 ) Common stock dividends (1,031 ) — (32 ) 32 (1,031 ) Contributions from noncontrolling interests — — 32 — 32 Distributions to noncontrolling interests and unitholders of VLP — (159 ) (27 ) 123 (63 ) Other financing activities, net 2 (4 ) (13 ) — (15 ) Net cash used in financing activities (712 ) (169 ) (912 ) (388 ) (2,181 ) Effect of foreign exchange rate changes on cash — — (43 ) — (43 ) Net increase (decrease) in cash and cash equivalents (946 ) 86 (1,439 ) — (2,299 ) Cash and cash equivalents at beginning of period 1,746 42 4,062 — 5,850 Cash and cash equivalents at end of period $ 800 $ 128 $ 2,623 $ — $ 3,551 |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation General The terms “Valero,” “we,” “our,” and “us,” as used in this report, may refer to Valero Energy Corporation, one or more of its consolidated subsidiaries, or all of them taken as a whole. These unaudited financial statements have been prepared in accordance with United States (U.S.) generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Act of 1934. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All such adjustments are of a normal recurring nature unless disclosed otherwise. Operating results for the nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . The balance sheet as of December 31, 2018 has been derived from our audited financial statements as of that date. For further information, refer to our financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2018 . |
Reclassifications | Reclassifications Effective January 1, 2019, we revised our reportable segments to reflect a new reportable segment — renewable diesel. The renewable diesel segment includes the operations of Diamond Green Diesel Holdings LLC (DGD), our consolidated joint venture as discussed in Note 8 , which were transferred from the refining segment. Also effective January 1, 2019, we no longer have a VLP segment, and we now include the operations of Valero Energy Partners LP and its consolidated subsidiaries (VLP) in our refining segment. Our prior period segment information has been retrospectively adjusted to reflect our current segment presentation. See Note 2 regarding our merger with VLP, which occurred on January 10, 2019, and Note 11 for segment information. Certain prior year amounts in the consolidated statement of cash flows have been reclassified to conform to the 2019 presentation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. On an ongoing basis, we review our estimates based on currently available information. Changes in facts and circumstances may result in revised estimates. |
Leases | Leases Background We adopted the provisions of Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 842, “Leases,” (Topic 842) on January 1, 2019, as described below in “Accounting Pronouncements Adopted on January 1, 2019.” Accordingly, our lease accounting policy has been revised to reflect the adoption of this standard. Revised Policy We evaluate if a contract is or contains a lease at inception of the contract. If we determine that a contract is or contains a lease, we recognize a right-of-use (ROU) asset and lease liability at the commencement date of the lease based on the present value of lease payments over the lease term. The present value of the lease payments is determined by using the implicit rate when readily determinable, or if not, our incremental borrowing rate for a term similar to the duration of the lease based on information available at the commencement date. Lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise those options. We recognize ROU assets and lease liabilities for leasing arrangements with terms greater than one year. Except for the marine transportation asset class, we account for lease and non-lease components in a contract as a single lease component for all classes of underlying assets. Our marine transportation contracts include non-lease components such as maintenance and crew costs. We allocate the consideration in these contracts based on pricing information provided by the third-party broker. Expense for an operating lease is recognized as a single lease cost on a straight-line basis over the lease term and reflected in the appropriate income statement line item based on the leased asset’s function. Amortization expense of a finance lease ROU asset is recognized on a straight-line basis over the lesser of the useful life of the leased asset or the lease term and is reflected in “depreciation and amortization expense.” Interest expense is incurred based on the carrying value of the lease liability and is reflected in “interest and debt expense, net of capitalized interest.” |
New Accounting Pronouncements | Accounting Pronouncements Adopted on January 1, 2019 Topic 842 As previously noted, we adopted the provisions of Topic 842 on January 1, 2019. Topic 842 increases the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Topic 842 supersedes previous lease accounting requirements under FASB ASC Topic 840, “Leases,” (Topic 840). We adopted Topic 842 using the optional transition method that permits us to apply the new disclosure requirements beginning in 2019 and continue to present comparative period information as required under Topic 840; however, we did not have a cumulative-effect adjustment to the opening balance of retained earnings at the date of adoption. In addition, we elected the transition practical expedient package that permits us to not reassess our prior conclusions about lease identification, lease classification, and initial direct costs under the new standard, as well as the practical expedient that permits us to not assess existing land easements under the new standard. See “Leases” above for a discussion of our accounting policy affected by our adoption of Topic 842. Also see Note 4 for information on our leases. In preparation for the adoption of Topic 842, we enhanced our contracting and lease evaluation systems and related processes, and we developed a new lease accounting system to capture our leases and support the required disclosures. We integrated our lease accounting system with our general ledger and modified our related procurement and payment processes. Adoption of this standard resulted in (i) the recognition of ROU assets and lease liabilities for our operating leases of $1.3 billion , (ii) the derecognition of existing assets under construction of $539 million related to a build-to-suit lease arrangement with respect to the MVP Terminal (see Note 6 under “ Commitments— MVP Terminal”), and (iii) the presentation of new disclosures about our leasing activities beginning in the first quarter of 2019. Adoption of this standard did not impact our results of operations or liquidity, and our accounting for finance leases is substantially unchanged. Other In addition to the adoption of Topic 842 discussed above, we adopted the following Accounting Standards Update (ASU) during the nine months ended September 30, 2019 . Our adoption of this ASU did not affect our financial statements or related disclosures. ASU Adoption Date Basis of Adoption 2017-12 Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities January 1, 2019 Cumulative effect Accounting Pronouncements Not Yet Adopted The following ASUs have not yet been adopted and are not expected to have a material impact on our financial statements or related disclosures. ASU Expected Adoption Date Basis of Adoption 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments January 1, 2020 Cumulative effect 2018-15 Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract January 1, 2020 Prospectively 2018-17 Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities January 1, 2020 Cumulative effect |
Variable interest entities | We hold variable interests in VIEs that have not been consolidated because we are not considered the primary beneficiary. These non-consolidated VIEs are not material to our financial position or results of operations and are accounted for as equity investments. |
Offsetting fair value amounts of commodity derivative contracts | We have elected to offset the fair value amounts recognized for multiple similar derivative contracts executed with the same counterparty, including any related cash collateral assets or obligations as shown below; however, fair value amounts by hierarchy level are presented in the following tables on a gross basis. We have no derivative contracts that are subject to master netting arrangements that are reflected gross on the balance sheet. |
Derivatives | We are exposed to market risks primarily related to the volatility in the price of commodities, foreign currency exchange rates, and the price of credits needed to comply with various government and regulatory programs. We enter into derivative instruments to manage some of these risks, including derivative instruments related to the various commodities we purchase or produce, and foreign currency exchange and purchase contracts, as described below under “Risk Management Activities by Type of Risk.” These derivative instruments are recorded as either assets or liabilities measured at their fair values (see Note 13 ), as summarized below under “Fair Values of Derivative Instruments.” The effect of these derivative instruments on our income is summarized below under “Effect of Derivative Instruments on Income.” |
Derivative instruments collateral requirements | We do not require any collateral or other security to support derivative instruments into which we enter. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements | The following ASUs have not yet been adopted and are not expected to have a material impact on our financial statements or related disclosures. ASU Expected Adoption Date Basis of Adoption 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments January 1, 2020 Cumulative effect 2018-15 Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract January 1, 2020 Prospectively 2018-17 Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities January 1, 2020 Cumulative effect In addition to the adoption of Topic 842 discussed above, we adopted the following Accounting Standards Update (ASU) during the nine months ended September 30, 2019 . Our adoption of this ASU did not affect our financial statements or related disclosures. ASU Adoption Date Basis of Adoption 2017-12 Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities January 1, 2019 Cumulative effect |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consisted of the following (in millions): September 30, December 31, Refinery feedstocks $ 2,051 $ 2,265 Refined petroleum products and blendstocks 3,746 3,653 Ethanol feedstocks and products 253 298 Renewable diesel feedstocks and products 53 52 Materials and supplies 273 264 Inventories $ 6,376 $ 6,532 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Total lease cost by class of underlying asset | Total lease cost by class of underlying asset was as follows (in millions): Pipelines, Terminals, and Tanks Transportation Feedstock Processing Equipment Energy and Gases Real Estate Other Total Marine Rail Three months ended September 30, 2019: Finance lease cost: Amortization of ROU assets $ 12 $ — $ — $ 2 $ — $ — $ — $ 14 Interest on lease liabilities 13 — — — — — — 13 Operating lease cost 46 39 14 4 3 7 1 114 Variable lease cost 20 4 — 1 — 1 — 26 Short-term lease cost 1 13 — 8 — — — 22 Sublease income — (8 ) — — — (1 ) — (9 ) Total lease cost $ 92 $ 48 $ 14 $ 15 $ 3 $ 7 $ 1 $ 180 Nine months ended September 30, 2019: Finance lease cost: Amortization of ROU assets $ 32 $ — $ — $ 4 $ 2 $ — $ — $ 38 Interest on lease liabilities 35 — — 1 2 — — 38 Operating lease cost 140 107 38 16 7 21 3 332 Variable lease cost 53 21 — 1 — 1 — 76 Short-term lease cost 8 39 — 22 — — — 69 Sublease income — (24 ) — — — (3 ) — (27 ) Total lease cost $ 268 $ 143 $ 38 $ 44 $ 11 $ 19 $ 3 $ 526 |
Rental expense, net of sublease rental income | In accordance with Topic 840, “rental expense, net of sublease rental income” was as follows (in millions): Three Months Ended September 30, 2018 Nine Months Ended Minimum rental expense $ 126 $ 377 Contingent rental expense 5 14 Total rental expense 131 391 Less sublease rental income 8 24 Rental expense, net of sublease rental income $ 123 $ 367 |
Additional information related to operating and finance leases | The following table presents additional information related to our operating and finance leases (in millions, except for lease terms and discount rates): September 30, 2019 Operating Leases Finance Leases Supplemental balance sheet information: ROU assets, net reflected in the following balance sheet line items: Property, plant, and equipment, net $ — $ 787 Deferred charges and other assets, net 1,338 — Total ROU assets, net $ 1,338 $ 787 Current lease liabilities reflected in the following balance sheet line items: Current portion of debt and finance lease obligations $ — $ 41 Accrued expenses 333 — Noncurrent lease liabilities reflected in the following balance sheet line items: Debt and finance lease obligations, less current portion — 744 Other long-term liabilities 970 — Total lease liabilities $ 1,303 $ 785 Other supplemental information: Weighted-average remaining lease term 7.7 years 20.0 years Weighted-average discount rate 5.0 % 5.2 % |
Remaining minimum lease payments due under long-term operating leases | The remaining minimum lease payments due under our long-term leases were as follows (in millions): September 30, 2019 December 31, 2018 Operating Leases Finance Leases Operating Leases Capital Leases 2019 (a) $ 108 $ 22 $ 359 $ 69 2020 349 87 245 65 2021 236 85 178 62 2022 183 85 146 64 2023 150 89 123 65 Thereafter 598 1,078 514 957 Total undiscounted lease payments 1,624 1,446 $ 1,565 1,282 Less amount associated with discounting 321 661 676 Total lease liabilities $ 1,303 $ 785 $ 606 ____________________ (a) The amounts as of September 30, 2019 are for the remaining three months of 2019 . |
Remaining minimum lease payments due under long-term finance leases | The remaining minimum lease payments due under our long-term leases were as follows (in millions): September 30, 2019 December 31, 2018 Operating Leases Finance Leases Operating Leases Capital Leases 2019 (a) $ 108 $ 22 $ 359 $ 69 2020 349 87 245 65 2021 236 85 178 62 2022 183 85 146 64 2023 150 89 123 65 Thereafter 598 1,078 514 957 Total undiscounted lease payments 1,624 1,446 $ 1,565 1,282 Less amount associated with discounting 321 661 676 Total lease liabilities $ 1,303 $ 785 $ 606 ____________________ (a) The amounts as of September 30, 2019 are for the remaining three months of 2019 . |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Summary of credit facilities | We had outstanding borrowings, letters of credit issued, and availability under our credit facilities as follows (amounts in millions and currency in U.S. dollars, except as noted): September 30, 2019 Facility Maturity Date Outstanding Letters of Credit Availability Committed facilities: Valero Revolver $ 4,000 March 2024 $ — $ 34 $ 3,966 Canadian Revolver (b) C$ 150 November 2019 C$ — C$ 5 C$ 145 Accounts receivable sales facility $ 1,300 July 2020 $ 100 n/a $ 1,200 Letter of credit facility (c) $ 100 November 2019 n/a $ — $ 100 Committed facilities of VIE (d): IEnova Revolver $ 340 February 2028 $ 257 n/a $ 83 Uncommitted facilities: Letter of credit facilities n/a n/a n/a $ 129 n/a ____________ (a) Letters of credit issued as of September 30, 2019 expire at various times in 2019 through 2020 . (b) The Canadian Revolver was amended in November 2019 to extend the maturity date from November 2019 to November 2020. (c) The letter of credit facility was amended in November 2019 to reduce the facility from $100 million to $50 million and to extend the maturity date from November 2019 to November 2020. (d) Creditors of our VIE do not have recourse against us. |
Interest and debt expense, net of capitalized interest | “Interest and debt expense, net of capitalized interest” is comprised of the following (in millions): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Interest and debt expense $ 133 $ 134 $ 405 $ 417 Less capitalized interest 22 23 70 61 Interest and debt expense, net of capitalized interest $ 111 $ 111 $ 335 $ 356 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Share activity | Activity in the number of shares of common stock and treasury stock was as follows (in millions): Nine Months Ended September 30, 2019 2018 Common Stock Treasury Stock Common Stock Treasury Stock Balance as of beginning of period 673 (256 ) 673 (240 ) Transactions in connection with stock-based compensation plans — — — (1 ) Stock purchases under purchase programs — (7 ) — (8 ) Balance as of end of period 673 (263 ) 673 (249 ) |
Schedule of changes in accumulated other comprehensive loss | Changes in accumulated other comprehensive loss by component, net of tax, were as follows (in millions): Three Months Ended September 30, 2019 2018 Foreign Currency Translation Adjustment Defined Benefit Plans Items Gains (Losses) on Cash Flow Hedges Total Foreign Currency Translation Adjustment Defined Benefit Plans Items Total Balance as of beginning of period $ (870 ) $ (481 ) $ 1 $ (1,350 ) $ (751 ) $ (511 ) $ (1,262 ) Other comprehensive income (loss) before reclassifications (180 ) — 1 (179 ) 20 — 20 Amounts reclassified from accumulated other comprehensive income (loss) — 2 (2 ) — — 7 7 Other comprehensive income (loss) (180 ) 2 (1 ) (179 ) 20 7 27 Balance as of end of period $ (1,050 ) $ (479 ) $ — $ (1,529 ) $ (731 ) $ (504 ) $ (1,235 ) Nine Months Ended September 30, 2019 2018 Foreign Currency Translation Adjustment Defined Benefit Plans Items Gains (Losses) on Cash Flow Hedges Total Foreign Currency Translation Adjustment Defined Benefit Plans Items Total Balance as of beginning of period $ (1,022 ) $ (485 ) $ — $ (1,507 ) $ (507 ) $ (433 ) $ (940 ) Other comprehensive income (loss) before reclassifications (28 ) — 2 (26 ) (224 ) — (224 ) Amounts reclassified from accumulated other comprehensive income (loss) — 6 (2 ) 4 — 20 20 Other comprehensive income (loss) (28 ) 6 — (22 ) (224 ) 20 (204 ) Reclassification of stranded income tax effects of Tax Reform to retained earnings — — — — — (91 ) (91 ) Balance as of end of period $ (1,050 ) $ (479 ) $ — $ (1,529 ) $ (731 ) $ (504 ) $ (1,235 ) |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summarized balance sheet information of VIEs | The following tables present summarized balance sheet information for the significant assets and liabilities of our VIEs, which are included in our balance sheets (in millions). September 30, 2019 DGD Central Mexico Other Total Assets Cash and cash equivalents $ 74 $ — $ 23 $ 97 Other current assets 110 26 94 230 Property, plant, and equipment, net 646 284 107 1,037 Liabilities Current liabilities, including current portion of debt and finance lease obligations $ 40 $ 307 $ 19 $ 366 Debt and finance lease obligations, less current portion 1 — 31 32 December 31, 2018 VLP (a) DGD Central Mexico Other Total Assets Cash and cash equivalents $ 152 $ 65 $ — $ 18 $ 235 Other current assets 2 112 20 64 198 Property, plant, and equipment, net 1,409 576 156 113 2,254 Liabilities Current liabilities, including current portion of debt and finance lease obligations $ 27 $ 28 $ 118 $ 9 $ 182 Debt and finance lease obligations, less current portion 990 — — 34 1,024 ____________________ (a) Prior to the completion of the Merger Transaction with VLP on January 10, 2019 as discussed in Note 2 , VLP was a publicly traded master limited partnership that we had determined was a VIE. VLP was formed by us to own, operate, develop, and acquire crude oil and refined petroleum products pipelines, terminals, and other transportation and logistics assets. As of December 31, 2018, we owned a 66.2 percent limited partner interest and a 2.0 percent general partner interest in VLP, and public unitholders owned a 31.8 percent limited partner interest. Upon completion of the Merger Transaction, VLP became our indirect wholly owned subsidiary and, as a result, was no longer a VIE. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Defined Benefit Plan [Abstract] | |
Periodic benefit cost related to our defined benefit plans, net | The components of net periodic benefit cost related to our defined benefit plans were as follows (in millions): Pension Plans Other Postretirement Benefit Plans 2019 2018 2019 2018 Three months ended September 30: Service cost $ 29 $ 33 $ 1 $ 2 Interest cost 25 22 2 2 Expected return on plan assets (41 ) (40 ) — — Amortization of: Net actuarial (gain) loss 10 16 — (1 ) Prior service credit (5 ) (5 ) (2 ) (2 ) Special charges — 2 — — Net periodic benefit cost $ 18 $ 28 $ 1 $ 1 Nine months ended September 30: Service cost $ 89 $ 100 $ 3 $ 5 Interest cost 74 68 8 7 Expected return on plan assets (124 ) (122 ) — — Amortization of: Net actuarial (gain) loss 30 49 (2 ) (2 ) Prior service credit (14 ) (14 ) (6 ) (8 ) Special charges 2 7 1 — Net periodic benefit cost $ 57 $ 88 $ 4 $ 2 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per common share, basic and diluted | Earnings per common share were computed as follows (dollars and shares in millions, except per share amounts): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Earnings per common share: Net income attributable to Valero stockholders $ 609 $ 856 $ 1,362 $ 2,170 Less income allocated to participating securities 1 2 3 6 Net income available to common stockholders $ 608 $ 854 $ 1,359 $ 2,164 Weighted-average common shares outstanding 412 425 415 428 Earnings per common share $ 1.48 $ 2.01 $ 3.28 $ 5.05 Earnings per common share – assuming dilution: Net income attributable to Valero stockholders $ 609 $ 856 $ 1,362 $ 2,170 Weighted-average common shares outstanding 412 425 415 428 Effect of dilutive securities 1 2 1 2 Weighted-average common shares outstanding – assuming dilution 413 427 416 430 Earnings per common share – assuming dilution $ 1.48 $ 2.01 $ 3.28 $ 5.05 |
Revenues and Segment Informat_2
Revenues and Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment information for our reportable segments | The following tables reflect information about our operating income (loss) by reportable segment (in millions): Refining Ethanol Renewable Diesel Corporate and Eliminations Total Three months ended September 30, 2019: Revenues: Revenues from external customers $ 26,145 $ 891 $ 212 $ 1 $ 27,249 Intersegment revenues 2 57 50 (109 ) — Total revenues 26,147 948 262 (108 ) 27,249 Cost of sales: Cost of materials and other 23,432 847 164 (108 ) 24,335 Operating expenses (excluding depreciation and amortization expense reflected below) 1,100 121 18 — 1,239 Depreciation and amortization expense 518 23 15 — 556 Total cost of sales 25,050 991 197 (108 ) 26,130 Other operating expenses 10 — — — 10 General and administrative expenses (excluding depreciation and amortization expense reflected below) — — — 217 217 Depreciation and amortization expense — — — 11 11 Operating income (loss) by segment $ 1,087 $ (43 ) $ 65 $ (228 ) $ 881 Three months ended September 30, 2018: Revenues: Revenues from external customers $ 29,894 $ 864 $ 90 $ 1 $ 30,849 Intersegment revenues 5 68 15 (88 ) — Total revenues 29,899 932 105 (87 ) 30,849 Cost of sales: Cost of materials and other 26,928 776 85 (88 ) 27,701 Operating expenses (excluding depreciation and amortization expense reflected below) 1,058 116 19 — 1,193 Depreciation and amortization expense 479 19 6 — 504 Total cost of sales 28,465 911 110 (88 ) 29,398 Other operating expenses 10 — — — 10 General and administrative expenses (excluding depreciation and amortization expense reflected below) — — — 209 209 Depreciation and amortization expense — — — 13 13 Operating income (loss) by segment $ 1,424 $ 21 $ (5 ) $ (221 ) $ 1,219 Refining Ethanol Renewable Diesel Corporate and Eliminations Total Nine months ended September 30, 2019: Revenues: Revenues from external customers $ 77,109 $ 2,648 $ 686 $ 2 $ 80,445 Intersegment revenues 12 162 174 (348 ) — Total revenues 77,121 2,810 860 (346 ) 80,445 Cost of sales: Cost of materials and other 69,769 2,396 577 (346 ) 72,396 Operating expenses (excluding depreciation and amortization expense reflected below) 3,197 378 54 — 3,629 Depreciation and amortization expense 1,539 68 38 — 1,645 Total cost of sales 74,505 2,842 669 (346 ) 77,670 Other operating expenses 13 1 — — 14 General and administrative expenses (excluding depreciation and amortization expense reflected below) — — — 625 625 Depreciation and amortization expense — — — 39 39 Operating income (loss) by segment $ 2,603 $ (33 ) $ 191 $ (664 ) $ 2,097 Nine months ended September 30, 2018: Revenues: Revenues from external customers $ 85,371 $ 2,625 $ 304 $ 3 $ 88,303 Intersegment revenues 20 156 103 (279 ) — Total revenues 85,391 2,781 407 (276 ) 88,303 Cost of sales: Cost of materials and other 77,195 2,279 122 (279 ) 79,317 Operating expenses (excluding depreciation and amortization expense reflected below) 3,057 336 46 — 3,439 Depreciation and amortization expense 1,423 57 19 — 1,499 Total cost of sales 81,675 2,672 187 (279 ) 84,255 Other operating expenses 41 — — — 41 General and administrative expenses (excluding depreciation and amortization expense reflected below) — — — 695 695 Depreciation and amortization expense — — — 39 39 Operating income by segment $ 3,675 $ 109 $ 220 $ (731 ) $ 3,273 The following table provides a disaggregation of revenues from external customers for our principal products by reportable segment (in millions). Three Months Ended Nine Months Ended 2019 2018 2019 2018 Refining: Gasolines and blendstocks $ 10,978 $ 12,660 $ 31,882 $ 35,803 Distillates 12,861 13,963 38,254 40,866 Other product revenues 2,306 3,271 6,973 8,702 Total refining revenues 26,145 29,894 77,109 85,371 Ethanol: Ethanol 714 695 2,108 2,092 Distillers grains 177 169 540 533 Total ethanol revenues 891 864 2,648 2,625 Renewable diesel: Renewable diesel 212 90 686 304 Corporate – other revenues 1 1 2 3 Revenues $ 27,249 $ 30,849 $ 80,445 $ 88,303 Total assets by reportable segment were as follows (in millions): September 30, December 31, Refining $ 45,646 $ 43,488 Ethanol 1,617 1,691 Renewable diesel 878 787 Corporate and eliminations 3,088 4,189 Total assets $ 51,229 $ 50,155 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of cash flows, supplemental disclosures | In order to determine net cash provided by operating activities, net income is adjusted by, among other things, changes in current assets and current liabilities as follows (in millions): Nine Months Ended 2019 2018 Decrease (increase) in current assets: Receivables, net $ (669 ) $ (1,307 ) Inventories 126 (1,134 ) Prepaid expenses and other 373 (65 ) Increase (decrease) in current liabilities: Accounts payable 914 1,890 Accrued expenses (92 ) (168 ) Taxes other than income taxes payable (25 ) (32 ) Income taxes payable 101 (358 ) Changes in current assets and current liabilities $ 728 $ (1,174 ) Cash flows related to interest and income taxes were as follows (in millions): Nine Months Ended 2019 2018 Interest paid in excess of amount capitalized, including interest on finance leases $ 303 $ 344 Income taxes paid (received), net (184 ) 1,116 Supplemental cash flow information related to our operating and finance leases was as follows (in millions): Nine Months Ended September 30, 2019 Operating Leases Finance Leases Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows $ 329 $ 38 Investing cash flows 1 — Financing cash flows — 24 Changes in lease balances resulting from new and modified leases (a) 1,673 221 ___________________ (a) Includes noncash activity of $1.3 billion for ROU assets for operating leases recorded on January 1, 2019 upon adoption of Topic 842. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair value of assets and liabilities measured on recurring basis | The following tables present information (in millions) about our assets and liabilities recognized at their fair values in our balance sheets categorized according to the fair value hierarchy of the inputs utilized by us to determine the fair values as of September 30, 2019 and December 31, 2018 . We have elected to offset the fair value amounts recognized for multiple similar derivative contracts executed with the same counterparty, including any related cash collateral assets or obligations as shown below; however, fair value amounts by hierarchy level are presented in the following tables on a gross basis. We have no derivative contracts that are subject to master netting arrangements that are reflected gross on the balance sheet. September 30, 2019 Total Gross Fair Value Effect of Counter- party Netting Effect of Cash Collateral Netting Net Carrying Value on Balance Sheet Cash Collateral Paid or Received Not Offset Fair Value Hierarchy Level 1 Level 2 Level 3 Assets: Commodity derivative contracts $ 634 $ — $ — $ 634 $ (620 ) $ (9 ) $ 5 $ — Physical purchase contracts — 2 — 2 n/a n/a 2 n/a Foreign currency contracts 2 — — 2 n/a n/a 2 n/a Investments of certain benefit plans 62 — 9 71 n/a n/a 71 n/a Total $ 698 $ 2 $ 9 $ 709 $ (620 ) $ (9 ) $ 80 Liabilities: Commodity derivative contracts $ 729 $ — $ — $ 729 $ (620 ) $ (109 ) $ — $ (50 ) Environmental credit obligations — 3 — 3 n/a n/a 3 n/a Physical purchase contracts — 4 — 4 n/a n/a 4 n/a Foreign currency contracts 6 — — 6 n/a n/a 6 n/a Total $ 735 $ 7 $ — $ 742 $ (620 ) $ (109 ) $ 13 December 31, 2018 Total Gross Fair Value Effect of Counter- party Netting Effect of Cash Collateral Netting Net Carrying Value on Balance Sheet Cash Collateral Paid or Received Not Offset Fair Value Hierarchy Level 1 Level 2 Level 3 Assets: Commodity derivative contracts $ 2,792 $ — $ — $ 2,792 $ (2,669 ) $ (34 ) $ 89 $ — Foreign currency contracts 4 — — 4 n/a n/a 4 n/a Investments of certain benefit plans 60 — 9 69 n/a n/a 69 n/a Total $ 2,856 $ — $ 9 $ 2,865 $ (2,669 ) $ (34 ) $ 162 Liabilities: Commodity derivative contracts $ 2,681 $ — $ — $ 2,681 $ (2,669 ) $ (12 ) $ — $ (136 ) Environmental credit obligations — 13 — 13 n/a n/a 13 n/a Physical purchase contracts — 5 — 5 n/a n/a 5 n/a Foreign currency contracts 1 — — 1 n/a n/a 1 n/a Total $ 2,682 $ 18 $ — $ 2,700 $ (2,669 ) $ (12 ) $ 19 |
Carrying amounts and estimated fair value of financial instruments | Financial instruments that we recognize in our balance sheets at their carrying amounts are shown in the following table along with their associated fair values (in millions): September 30, 2019 December 31, 2018 Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Financial assets: Cash and cash equivalents Level 1 $ 2,137 $ 2,137 $ 2,982 $ 2,982 Financial liabilities: Debt (excluding finance leases) Level 2 8,788 10,336 8,503 8,986 |
Price Risk Management Activit_2
Price Risk Management Activities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Risk management activities by type of risk | As of September 30, 2019 , we had the following outstanding commodity derivative instruments that were used as cash flow hedges and economic hedges, as well as commodity derivative instruments related to the physical purchase of corn at a fixed price. The information presents the notional volume of outstanding contracts by type of instrument and year of maturity (volumes in thousands of barrels, except corn contracts that are presented in thousands of bushels). Notional Contract Volumes by Year of Maturity 2019 2020 Derivatives designated as cash flow hedges: Renewable diesel: Futures – long 906 73 Futures – short 2,571 242 Derivatives designated as economic hedges: Crude oil and refined petroleum products: Futures – long 136,760 2,849 Futures – short 134,196 3,063 Options – long 16,634 — Options – short 15,987 — Corn: Futures – long 71,555 1,540 Futures – short 88,825 10,345 Physical contracts – long 20,368 8,831 |
Fair values of derivative instruments | The following tables provide information about the fair values of our derivative instruments as of September 30, 2019 and December 31, 2018 (in millions) and the line items in the balance sheets in which the fair values are reflected. See Note 13 for additional information related to the fair values of our derivative instruments. As indicated in Note 13 , we net fair value amounts recognized for multiple similar derivative contracts executed with the same counterparty under master netting arrangements, including cash collateral assets and obligations. The following tables, however, are presented on a gross asset and gross liability basis, which results in the reflection of certain assets in liability accounts and certain liabilities in asset accounts. Balance Sheet Location September 30, 2019 December 31, 2018 Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments: Commodity contracts Receivables, net $ 6 $ 6 $ — $ — Derivatives not designated as hedging instruments: Commodity contracts Receivables, net $ 628 $ 723 $ 2,792 $ 2,681 Physical purchase contracts Inventories 2 4 — 5 Foreign currency contracts Receivables, net 2 — 4 — Foreign currency contracts Accrued expenses — 6 — 1 Total $ 632 $ 733 $ 2,796 $ 2,687 |
Effect of derivative instruments on income | The following table provides information about the gain (loss) recognized in income on our derivative instruments and the line items in the statements of income in which such gains (losses) are reflected (in millions). Derivatives Not Designated Location of Gain (Loss) Three Months Ended Nine Months Ended 2019 2018 2019 2018 Commodity contracts Revenues $ (1 ) $ — $ 4 $ — Commodity contracts Cost of materials and other (26 ) (98 ) (25 ) (125 ) Foreign currency contracts Cost of materials and other 9 (7 ) 2 7 Foreign currency contracts Other income, net (19 ) 11 36 (6 ) |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Statements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet September 30, 2019 (in millions) Valero Valero Other Non- Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 209 $ — $ 1,928 $ — $ 2,137 Receivables, net — — 7,994 — 7,994 Receivables from affiliates 4,396 — 12,406 (16,802 ) — Inventories — — 6,376 — 6,376 Prepaid expenses and other 64 — 462 — 526 Total current assets 4,669 — 29,166 (16,802 ) 17,033 Property, plant and equipment, at cost — — 43,539 — 43,539 Accumulated depreciation — — (14,649 ) — (14,649 ) Property, plant and equipment, net — — 28,890 — 28,890 Investment in affiliates 36,327 2,566 383 (39,276 ) — Deferred charges and other assets, net 552 — 4,754 — 5,306 Total assets $ 41,548 $ 2,566 $ 63,193 $ (56,078 ) $ 51,229 LIABILITIES AND EQUITY Current liabilities: Current portion of debt and finance lease obligations $ — $ — $ 402 $ — $ 402 Accounts payable — — 9,504 — 9,504 Accounts payable to affiliates 11,223 1,183 4,396 (16,802 ) — Accrued expenses 155 7 719 — 881 Taxes other than income taxes payable — — 1,175 — 1,175 Income taxes payable 83 — 85 — 168 Total current liabilities 11,461 1,190 16,281 (16,802 ) 12,130 Debt and finance lease obligations, less current portion 7,094 991 1,085 — 9,170 Deferred income tax liabilities — 2 4,918 — 4,920 Other long-term liabilities 1,886 — 1,535 — 3,421 Equity: Stockholders’ equity: Common stock 7 — 1 (1 ) 7 Additional paid-in capital 6,818 — 9,765 (9,765 ) 6,818 Treasury stock, at cost (15,472 ) — — — (15,472 ) Retained earnings 31,283 — 30,286 (30,286 ) 31,283 Partners’ equity — 383 — (383 ) — Accumulated other comprehensive loss (1,529 ) — (1,159 ) 1,159 (1,529 ) Total stockholders’ equity 21,107 383 38,893 (39,276 ) 21,107 Noncontrolling interests — — 481 — 481 Total equity 21,107 383 39,374 (39,276 ) 21,588 Total liabilities and equity $ 41,548 $ 2,566 $ 63,193 $ (56,078 ) $ 51,229 Condensed Consolidating Balance Sheet December 31, 2018 (in millions) Valero Valero Other Non- Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 291 $ 152 $ 2,539 $ — $ 2,982 Receivables, net — — 7,345 — 7,345 Receivables from affiliates 4,369 2 10,684 (15,055 ) — Inventories — — 6,532 — 6,532 Prepaid expenses and other 466 — 355 (5 ) 816 Total current assets 5,126 154 27,455 (15,060 ) 17,675 Property, plant and equipment, at cost — — 42,473 — 42,473 Accumulated depreciation — — (13,625 ) — (13,625 ) Property, plant and equipment, net — — 28,848 — 28,848 Investment in affiliates 34,696 2,267 (321 ) (36,642 ) — Long-term notes receivable from affiliates 285 — — (285 ) — Deferred charges and other assets, net 572 1 3,059 — 3,632 Total assets $ 40,679 $ 2,422 $ 59,041 $ (51,987 ) $ 50,155 LIABILITIES AND EQUITY Current liabilities: Current portion of debt and finance lease obligations $ — $ — $ 238 $ — $ 238 Accounts payable 14 — 8,580 — 8,594 Accounts payable to affiliates 9,847 837 4,370 (15,054 ) — Accrued expenses 155 7 468 — 630 Accrued expenses to affiliates — 1 — (1 ) — Taxes other than income taxes payable — — 1,213 — 1,213 Income taxes payable 53 1 — (5 ) 49 Total current liabilities 10,069 846 14,869 (15,060 ) 10,724 Debt and finance lease obligations, less current portion 6,955 990 926 — 8,871 Long-term notes payable to affiliates — 285 — (285 ) — Deferred income tax liabilities — 2 4,960 — 4,962 Other long-term liabilities 1,988 — 879 — 2,867 Equity: Stockholders’ equity: Common stock 7 — 1 (1 ) 7 Additional paid-in capital 7,048 — 9,754 (9,754 ) 7,048 Treasury stock, at cost (14,925 ) — — — (14,925 ) Retained earnings 31,044 — 28,305 (28,305 ) 31,044 Partners’ equity — 299 — (299 ) — Accumulated other comprehensive loss (1,507 ) — (1,097 ) 1,097 (1,507 ) Total stockholders’ equity 21,667 299 36,963 (37,262 ) 21,667 Noncontrolling interests — — 444 620 1,064 Total equity 21,667 299 37,407 (36,642 ) 22,731 Total liabilities and equity $ 40,679 $ 2,422 $ 59,041 $ (51,987 ) $ 50,155 |
Condensed Consolidating Statement of Income | Condensed Consolidating Statement of Income Three Months Ended September 30, 2019 (in millions) Valero Valero Other Non- Eliminations Consolidated Revenues $ — $ — $ 27,249 $ — $ 27,249 Cost of sales: Cost of materials and other — — 24,335 — 24,335 Operating expenses (excluding depreciation and amortization expense reflected below) — — 1,239 — 1,239 Depreciation and amortization expense — — 556 — 556 Total cost of sales — — 26,130 — 26,130 Other operating expenses — — 10 — 10 General and administrative expenses (excluding depreciation and amortization expense reflected below) 2 — 215 — 217 Depreciation and amortization expense — — 11 — 11 Operating income (loss) (2 ) — 883 — 881 Equity in earnings of subsidiaries 740 112 100 (952 ) — Other income, net 54 — 158 (178 ) 34 Interest and debt expense, net of capitalized interest (230 ) (12 ) (47 ) 178 (111 ) Income before income tax expense (benefit) 562 100 1,094 (952 ) 804 Income tax expense (benefit) (47 ) — 212 — 165 Net income 609 100 882 (952 ) 639 Less: Net income attributable to noncontrolling interests — — 30 — 30 Net income attributable to stockholders $ 609 $ 100 $ 852 $ (952 ) $ 609 Condensed Consolidating Statement of Income Three Months Ended September 30, 2018 (in millions) Valero Valero Other Non- Eliminations Consolidated Revenues $ — $ — $ 30,849 $ — $ 30,849 Cost of sales: Cost of materials and other — — 27,701 — 27,701 Operating expenses (excluding depreciation and amortization expense reflected below) — — 1,193 — 1,193 Depreciation and amortization expense — — 504 — 504 Total cost of sales — — 29,398 — 29,398 Other operating expenses — — 10 — 10 General and administrative expenses (excluding depreciation and amortization expense reflected below) 3 — 206 — 209 Depreciation and amortization expense — — 13 — 13 Operating income (loss) (3 ) — 1,222 — 1,219 Equity in earnings of subsidiaries 1,005 85 53 (1,143 ) — Other income, net 65 — 161 (184 ) 42 Interest and debt expense, net of capitalized interest (230 ) (15 ) (50 ) 184 (111 ) Income before income tax expense (benefit) 837 70 1,386 (1,143 ) 1,150 Income tax expense (benefit) (19 ) — 295 — 276 Net income 856 70 1,091 (1,143 ) 874 Less: Net income attributable to noncontrolling interests — — 1 17 18 Net income attributable to stockholders $ 856 $ 70 $ 1,090 $ (1,160 ) $ 856 Condensed Consolidating Statement of Income Nine Months Ended September 30, 2019 (in millions) Valero Valero Other Non- Eliminations Consolidated Revenues $ — $ — $ 80,445 $ — $ 80,445 Cost of sales: Cost of materials and other — — 72,396 — 72,396 Operating expenses (excluding depreciation and amortization expense reflected below) — — 3,629 — 3,629 Depreciation and amortization expense — — 1,645 — 1,645 Total cost of sales — — 77,670 — 77,670 Other operating expenses — — 14 — 14 General and administrative expenses (excluding depreciation and amortization expense reflected below) 3 — 622 — 625 Depreciation and amortization expense — — 39 — 39 Operating income (loss) (3 ) — 2,100 — 2,097 Equity in earnings of subsidiaries 1,763 299 261 (2,323 ) — Other income, net 138 — 462 (532 ) 68 Interest and debt expense, net of capitalized interest (693 ) (36 ) (138 ) 532 (335 ) Income before income tax expense (benefit) 1,205 263 2,685 (2,323 ) 1,830 Income tax expense (benefit) (157 ) — 533 — 376 Net income 1,362 263 2,152 (2,323 ) 1,454 Less: Net income attributable to noncontrolling interests — — 90 2 92 Net income attributable to stockholders $ 1,362 $ 263 $ 2,062 $ (2,325 ) $ 1,362 Condensed Consolidating Statement of Income Nine Months Ended September 30, 2018 (in millions) Valero Valero Other Non- Eliminations Consolidated Revenues $ — $ — $ 88,303 $ — $ 88,303 Cost of sales: Cost of materials and other — — 79,317 — 79,317 Operating expenses (excluding depreciation and amortization expense reflected below) — — 3,439 — 3,439 Depreciation and amortization expense — — 1,499 — 1,499 Total cost of sales — — 84,255 — 84,255 Other operating expenses — — 41 — 41 General and administrative expenses (excluding depreciation and amortization expense reflected below) 4 — 691 — 695 Depreciation and amortization expense — — 39 — 39 Operating income (loss) (4 ) — 3,277 — 3,273 Equity in earnings of subsidiaries 2,634 241 152 (3,027 ) — Other income, net 163 1 455 (531 ) 88 Interest and debt expense, net of capitalized interest (681 ) (41 ) (165 ) 531 (356 ) Income before income tax expense (benefit) 2,112 201 3,719 (3,027 ) 3,005 Income tax expense (benefit) (58 ) 1 731 — 674 Net income 2,170 200 2,988 (3,027 ) 2,331 Less: Net income attributable to noncontrolling interests — — 113 48 161 Net income attributable to stockholders $ 2,170 $ 200 $ 2,875 $ (3,075 ) $ 2,170 |
Condensed Consolidating Statement of Comprehensive Income | Condensed Consolidating Statement of Comprehensive Income Three Months Ended September 30, 2019 (in millions) Valero Valero Other Non- Eliminations Consolidated Net income $ 609 $ 100 $ 882 $ (952 ) $ 639 Other comprehensive loss: Foreign currency translation adjustment (180 ) — (163 ) 163 (180 ) Net gain on pension and other postretirement benefits 3 — — — 3 Net loss on cash flow hedges (2 ) — (4 ) 2 (4 ) Other comprehensive loss before income tax benefit (179 ) — (167 ) 165 (181 ) Income tax benefit related to items of other comprehensive loss — — (1 ) 1 — Other comprehensive loss (179 ) — (166 ) 164 (181 ) Comprehensive income 430 100 716 (788 ) 458 Less: Comprehensive income attributable to noncontrolling interests — — 28 — 28 Comprehensive income attributable to stockholders $ 430 $ 100 $ 688 $ (788 ) $ 430 Condensed Consolidating Statement of Comprehensive Income Three Months Ended September 30, 2018 (in millions) Valero Valero Other Non- Eliminations Consolidated Net income $ 856 $ 70 $ 1,091 $ (1,143 ) $ 874 Other comprehensive income: Foreign currency translation adjustment 20 — 2 1 23 Net gain on pension and other postretirement benefits 8 — — — 8 Other comprehensive income before income tax expense 28 — 2 1 31 Income tax expense related to items of other comprehensive income 1 — — — 1 Other comprehensive income 27 — 2 1 30 Comprehensive income 883 70 1,093 (1,142 ) 904 Less: Comprehensive income attributable to noncontrolling interests — — 4 17 21 Comprehensive income attributable to stockholders $ 883 $ 70 $ 1,089 $ (1,159 ) $ 883 Condensed Consolidating Statement of Comprehensive Income Nine Months Ended September 30, 2019 (in millions) Valero Valero Other Non- Eliminations Consolidated Net income $ 1,362 $ 263 $ 2,152 $ (2,323 ) $ 1,454 Other comprehensive loss: Foreign currency translation adjustment (28 ) — (59 ) 62 (25 ) Net gain on pension and other postretirement benefits 8 — — — 8 Net gain on cash flow hedges — — 1 — 1 Other comprehensive loss before income tax expense (20 ) — (58 ) 62 (16 ) Income tax expense related to items of other comprehensive loss 2 — — — 2 Other comprehensive loss (22 ) — (58 ) 62 (18 ) Comprehensive income 1,340 263 2,094 (2,261 ) 1,436 Less: Comprehensive income attributable to noncontrolling interests — — 94 2 96 Comprehensive income attributable to stockholders $ 1,340 $ 263 $ 2,000 $ (2,263 ) $ 1,340 Condensed Consolidating Statement of Comprehensive Income Nine Months Ended September 30, 2018 (in millions) Valero Valero Other Non- Eliminations Consolidated Net income $ 2,170 $ 200 $ 2,988 $ (3,027 ) $ 2,331 Other comprehensive loss: Foreign currency translation adjustment (224 ) — (190 ) 191 (223 ) Net gain on pension and other postretirement benefits 25 — 1 (1 ) 25 Other comprehensive loss before income tax expense (199 ) — (189 ) 190 (198 ) Income tax expense related to items of other comprehensive loss 5 — — — 5 Other comprehensive loss (204 ) — (189 ) 190 (203 ) Comprehensive income 1,966 200 2,799 (2,837 ) 2,128 Less: Comprehensive income attributable to noncontrolling interests — — 114 48 162 Comprehensive income attributable to stockholders $ 1,966 $ 200 $ 2,685 $ (2,885 ) $ 1,966 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2019 (in millions) Valero Valero Other Non- Eliminations Consolidated Net cash provided by (used in) operating activities $ 15 $ (35 ) $ 4,203 $ (360 ) $ 3,823 Cash flows from investing activities: Capital expenditures (excluding VIEs) — — (1,179 ) — (1,179 ) Capital expenditures of VIEs: DGD — — (91 ) — (91 ) Other VIEs — — (139 ) — (139 ) Deferred turnaround and catalyst cost expenditures (excluding VIEs) — — (583 ) — (583 ) Deferred turnaround and catalyst cost expenditures of DGD — — (16 ) — (16 ) Investments in unconsolidated joint ventures — — (122 ) — (122 ) Acquisitions of undivided interests — — (65 ) — (65 ) Intercompany investing activities 289 2 (1,533 ) 1,242 — Other investing activities, net — — 5 — 5 Net cash provided by (used in) investing activities 289 2 (3,723 ) 1,242 (2,190 ) Cash flows from financing activities: Proceeds from debt issuances and borrowings (excluding VIEs) 992 — 900 — 1,892 Proceeds from borrowings of VIEs — — 148 — 148 Repayments of debt and finance lease obligations (excluding VIEs) (871 ) — (925 ) — (1,796 ) Repayments of debt of VIEs — — (4 ) — (4 ) Intercompany financing activities 1,187 160 (105 ) (1,242 ) — Purchases of common stock for treasury (555 ) — — — (555 ) Common stock dividends (1,123 ) — (81 ) 81 (1,123 ) Acquisition of VLP publicly held common units — — (950 ) — (950 ) Distributions to noncontrolling interests and unitholders of VLP — (279 ) (57 ) 279 (57 ) Other financing activities, net (16 ) — (13 ) — (29 ) Net cash used in financing activities (386 ) (119 ) (1,087 ) (882 ) (2,474 ) Effect of foreign exchange rate changes on cash — — (4 ) — (4 ) Net decrease in cash and cash equivalents (82 ) (152 ) (611 ) — (845 ) Cash and cash equivalents at beginning of period 291 152 2,539 — 2,982 Cash and cash equivalents at end of period $ 209 $ — $ 1,928 $ — $ 2,137 Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2018 (in millions) Valero Valero Other Non- Eliminations Consolidated Net cash provided by (used in) operating activities $ (824 ) $ (37 ) $ 3,709 $ (155 ) $ 2,693 Cash flows from investing activities: Capital expenditures (excluding VIEs) — — (1,025 ) — (1,025 ) Capital expenditures of VIEs: DGD — — (143 ) — (143 ) Other VIEs — — (89 ) — (89 ) Deferred turnaround and catalyst cost expenditures (excluding VIEs) — — (641 ) — (641 ) Deferred turnaround and catalyst cost expenditures of DGD — — (20 ) — (20 ) Investments in unconsolidated joint ventures — — (124 ) — (124 ) Peru Acquisition, net of cash acquired — — (466 ) — (466 ) Acquisitions of undivided interests — — (181 ) — (181 ) Minor acquisitions — — (88 ) — (88 ) Intercompany investing activities 590 292 (1,425 ) 543 — Other investing activities, net — — 9 — 9 Net cash provided by (used in) investing activities 590 292 (4,193 ) 543 (2,768 ) Cash flows from financing activities: Proceeds from debt issuances and borrowings (excluding VIEs) 750 498 10 — 1,258 Proceeds from borrowings of VIEs — — 71 — 71 Repayments of debt and finance lease obligations (excluding VIEs) (787 ) (410 ) (151 ) — (1,348 ) Repayments of debt of VIEs — — (4 ) — (4 ) Intercompany financing activities 1,435 (94 ) (798 ) (543 ) — Purchases of common stock for treasury (1,081 ) — — — (1,081 ) Common stock dividends (1,031 ) — (32 ) 32 (1,031 ) Contributions from noncontrolling interests — — 32 — 32 Distributions to noncontrolling interests and unitholders of VLP — (159 ) (27 ) 123 (63 ) Other financing activities, net 2 (4 ) (13 ) — (15 ) Net cash used in financing activities (712 ) (169 ) (912 ) (388 ) (2,181 ) Effect of foreign exchange rate changes on cash — — (43 ) — (43 ) Net increase (decrease) in cash and cash equivalents (946 ) 86 (1,439 ) — (2,299 ) Cash and cash equivalents at beginning of period 1,746 42 4,062 — 5,850 Cash and cash equivalents at end of period $ 800 $ 128 $ 2,623 $ — $ 3,551 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Sep. 30, 2019 | |
Basis of Presentation and Significant Accounting Policies (Textual) | |||
Recognition of ROU assets and lease liabilities for operating leases | [1] | $ 1,673 | |
Topic 842 [Member] | |||
Basis of Presentation and Significant Accounting Policies (Textual) | |||
Recognition of ROU assets and lease liabilities for operating leases | $ 1,300 | ||
Topic 842 [Member] | MVP Terminal [Member] | |||
Basis of Presentation and Significant Accounting Policies (Textual) | |||
Derecognition of existing assets under construction related to build-to-suit lease arrangement | $ 539 | ||
[1] | Includes noncash activity of $1.3 billion for ROU assets for operating leases recorded on January 1, 2019 upon adoption of Topic 842. |
Merger and Acquisition (Details
Merger and Acquisition (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 10, 2019 | May 14, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Merger and Acquisition (Textual) | ||||
Merger transaction, aggregate merger consideration funded with available cash on hand | $ 950 | $ 0 | ||
Amount paid from available cash on hand | $ 0 | $ 466 | ||
VLP [Member] | ||||
Merger and Acquisition (Textual) | ||||
Merger transaction, price per common unit (in usd per unit) | $ 42.25 | |||
Merger transaction, aggregate merger consideration funded with available cash on hand | $ 950 | |||
Pure Biofuels [Member] | ||||
Merger and Acquisition (Textual) | ||||
Percent equity interests acquired | 100.00% | |||
Amount paid from available cash on hand | $ 466 | |||
Working capital | $ 130 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule of Inventories | ||
Refinery feedstocks | $ 2,051 | $ 2,265 |
Refined petroleum products and blendstocks | 3,746 | 3,653 |
Ethanol feedstocks and products | 253 | 298 |
Renewable diesel feedstocks and products | 53 | 52 |
Materials and supplies | 273 | 264 |
Inventories | 6,376 | 6,532 |
Inventories (Textual) | ||
Excess of market value over carrying amount of LIFO inventories | 2,600 | 1,500 |
Amount of non-LIFO inventory | $ 1,100 | $ 1,100 |
Leases, Total Lease Cost by Cla
Leases, Total Lease Cost by Class of Underlying Asset (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Finance lease cost: | ||
Amortization of ROU assets | $ 14 | $ 38 |
Interest on lease liabilities | 13 | 38 |
Lease cost: | ||
Operating lease cost | 114 | 332 |
Variable lease cost | 26 | 76 |
Short-term lease cost | 22 | 69 |
Sublease income | (9) | (27) |
Total lease cost | 180 | 526 |
Pipelines, Terminals, and Tanks [Member] | ||
Finance lease cost: | ||
Amortization of ROU assets | 12 | 32 |
Interest on lease liabilities | 13 | 35 |
Lease cost: | ||
Operating lease cost | 46 | 140 |
Variable lease cost | 20 | 53 |
Short-term lease cost | 1 | 8 |
Sublease income | 0 | 0 |
Total lease cost | 92 | 268 |
Transportation, Marine [Member] | ||
Finance lease cost: | ||
Amortization of ROU assets | 0 | 0 |
Interest on lease liabilities | 0 | 0 |
Lease cost: | ||
Operating lease cost | 39 | 107 |
Variable lease cost | 4 | 21 |
Short-term lease cost | 13 | 39 |
Sublease income | (8) | (24) |
Total lease cost | 48 | 143 |
Transportation, Rail [Member] | ||
Finance lease cost: | ||
Amortization of ROU assets | 0 | 0 |
Interest on lease liabilities | 0 | 0 |
Lease cost: | ||
Operating lease cost | 14 | 38 |
Variable lease cost | 0 | 0 |
Short-term lease cost | 0 | 0 |
Sublease income | 0 | 0 |
Total lease cost | 14 | 38 |
Feedstock Processing Equipment [Member] | ||
Finance lease cost: | ||
Amortization of ROU assets | 2 | 4 |
Interest on lease liabilities | 0 | 1 |
Lease cost: | ||
Operating lease cost | 4 | 16 |
Variable lease cost | 1 | 1 |
Short-term lease cost | 8 | 22 |
Sublease income | 0 | 0 |
Total lease cost | 15 | 44 |
Energy and Gases [Member] | ||
Finance lease cost: | ||
Amortization of ROU assets | 0 | 2 |
Interest on lease liabilities | 0 | 2 |
Lease cost: | ||
Operating lease cost | 3 | 7 |
Variable lease cost | 0 | 0 |
Short-term lease cost | 0 | 0 |
Sublease income | 0 | 0 |
Total lease cost | 3 | 11 |
Real Estate [Member] | ||
Finance lease cost: | ||
Amortization of ROU assets | 0 | 0 |
Interest on lease liabilities | 0 | 0 |
Lease cost: | ||
Operating lease cost | 7 | 21 |
Variable lease cost | 1 | 1 |
Short-term lease cost | 0 | 0 |
Sublease income | (1) | (3) |
Total lease cost | 7 | 19 |
Other [Member] | ||
Finance lease cost: | ||
Amortization of ROU assets | 0 | 0 |
Interest on lease liabilities | 0 | 0 |
Lease cost: | ||
Operating lease cost | 1 | 3 |
Variable lease cost | 0 | 0 |
Short-term lease cost | 0 | 0 |
Sublease income | 0 | 0 |
Total lease cost | $ 1 | $ 3 |
Leases, Rental Expense, Net of
Leases, Rental Expense, Net of Sublease Rental Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Rental Expense, Net of Sublease Income | ||
Minimum rental expense | $ 126 | $ 377 |
Contingent rental expense | 5 | 14 |
Total rental expense | 131 | 391 |
Less sublease rental income | 8 | 24 |
Rental expense, net of sublease rental income | $ 123 | $ 367 |
Leases, Additional Information
Leases, Additional Information (Details) $ in Millions | Sep. 30, 2019USD ($) |
ROU assets, net reflected in the following balance sheet line items: | |
Operating lease ROU assets, net, balance sheet line item | us-gaap:OtherAssetsNoncurrent |
Operating leases - deferred charges and other assets, net | $ 1,338 |
Current lease liabilities reflected in the following balance sheet line items: | |
Current operating lease liabilities, balance sheet line item | us-gaap:AccruedLiabilitiesCurrent |
Operating leases - accrued expenses | $ 333 |
Noncurrent lease liabilities reflected in the following balance sheet line items: | |
Noncurrent operating lease liabilities, balance sheet line item | us-gaap:OtherLiabilitiesNoncurrent |
Operating leases - other long-term liabilities | $ 970 |
Operating leases - total lease liabilities | $ 1,303 |
ROU assets, net reflected in the following balance sheet line items: | |
Finance lease ROU assets, net, balance sheet line item | us-gaap:PropertyPlantAndEquipmentNet |
Finance leases - property, plant, and equipment, net | $ 787 |
Current lease liabilities reflected in the following balance sheet line items: | |
Current finance lease liabilities, balance sheet line item | us-gaap:DebtCurrent |
Finance leases - current portion of debt and finance lease obligations | $ 41 |
Noncurrent lease liabilities reflected in the following balance sheet line items: | |
Noncurrent finance lease liabilities, balance sheet line item | us-gaap:LongTermDebtAndCapitalLeaseObligations |
Finance leases - debt and finance lease obligations, less current portion | $ 744 |
Finance leases - total lease liabilities | $ 785 |
Operating Leases | |
Weighted-average remaining lease term | 7 years 8 months 12 days |
Weighted-average discount rate | 5.00% |
Finance Leases | |
Weighted-average remaining lease term | 20 years |
Weighted-average discount rate | 5.20% |
Leases, Remaining Minimum Lease
Leases, Remaining Minimum Lease Payments (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | |
Operating Leases | |||
2019 | [1] | $ 108 | |
2020 | 349 | ||
2021 | 236 | ||
2022 | 183 | ||
2023 | 150 | ||
Thereafter | 598 | ||
Total undiscounted lease payments | 1,624 | ||
Less amount associated with discounting | 321 | ||
Total lease liabilities | 1,303 | ||
Finance Leases | |||
2019 | [1] | 22 | |
2020 | 87 | ||
2021 | 85 | ||
2022 | 85 | ||
2023 | 89 | ||
Thereafter | 1,078 | ||
Total undiscounted lease payments | 1,446 | ||
Less amount associated with discounting | 661 | ||
Total lease liabilities | $ 785 | ||
Operating Leases | |||
2019 | $ 359 | ||
2020 | 245 | ||
2021 | 178 | ||
2022 | 146 | ||
2023 | 123 | ||
Thereafter | 514 | ||
Total undiscounted lease payments | 1,565 | ||
Capital Leases | |||
2019 | 69 | ||
2020 | 65 | ||
2021 | 62 | ||
2022 | 64 | ||
2023 | 65 | ||
Thereafter | 957 | ||
Total undiscounted lease payments | 1,282 | ||
Less amount associated with discounting | 676 | ||
Total lease liabilities | $ 606 | ||
[1] | The amounts as of September 30, 2019 are for the remaining three months of 2019 . |
Leases, Future Lease Commenceme
Leases, Future Lease Commencement (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Sep. 30, 2019 |
Future Lease Commencement (Textual) | ||
ROU asset | $ 1,338 | |
Lease liability | $ 1,303 | |
MVP Terminal [Member] | Expected [Member] | ||
Future Lease Commencement (Textual) | ||
ROU asset | $ 1,100 | |
Lease liability | $ 1,100 |
Debt, Narrative (Details)
Debt, Narrative (Details) - USD ($) | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | |
Pure Biofuels [Member] | ||||
Debt Instrument [Line Items] | ||||
Amount of debt retired | $ 137,000,000 | |||
Senior Notes [Member] | Senior Notes Due April 1, 2029 [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount of long-term debt issuance | $ 1,000,000,000 | |||
Stated rate on debt instrument (percent) | 4.00% | |||
Proceeds from issuance of senior long-term debt | $ 992,000,000 | |||
Senior Notes [Member] | Senior Notes Due February 1, 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated rate on debt instrument (percent) | 6.125% | |||
Early repayment of senior debt | $ 871,000,000 | |||
Debt instrument, redemption price, percentage of principal amount redeemed (percent) | 102.48% | |||
Early redemption fee | $ 21,000,000 | |||
Senior Notes [Member] | VLP Senior Notes Due December 15, 2026 [Member] | Valero Energy Partners LP [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated rate on debt instrument (percent) | 4.375% | |||
Senior Notes [Member] | VLP Senior Notes Due March 15, 2028 [Member] | Valero Energy Partners LP [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount of long-term debt issuance | $ 500,000,000 | |||
Stated rate on debt instrument (percent) | 4.50% | 4.50% | ||
Proceeds from issuance of senior long-term debt | $ 498,000,000 | |||
Senior Notes [Member] | Senior Notes Due June 1, 2028 [Member] | ||||
Debt Instrument [Line Items] | ||||
Face amount of long-term debt issuance | $ 750,000,000 | |||
Stated rate on debt instrument (percent) | 4.35% | |||
Proceeds from issuance of senior long-term debt | $ 749,000,000 | |||
Senior Notes [Member] | Senior Notes Due March 15, 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Stated rate on debt instrument (percent) | 9.375% | |||
Early repayment of senior debt | $ 787,000,000 | |||
Debt instrument, redemption price, percentage of principal amount redeemed (percent) | 104.90% | |||
Early redemption fee | $ 37,000,000 | |||
Credit Facilities [Member] | Valero Revolver [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 4,000,000,000 | $ 4,000,000,000 | $ 3,000,000,000 | |
Credit Facilities [Member] | Valero Revolver Letter of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 2,400,000,000 | |||
Credit Facilities [Member] | Accounts Receivable Sales Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Repayments of outstanding amounts | 900,000,000 | |||
Amount of eligible receivables sold under accounts receivable sales facility | $ 900,000,000 | |||
Variable interest rate (percent) | 2.7836% | 3.0618% | ||
Credit Facilities [Member] | Valero Energy Partners LP [Member] | VLP Revolver [Member] | ||||
Debt Instrument [Line Items] | ||||
Repayments of outstanding amounts | 410,000,000 | |||
Line of credit facility, maximum borrowing capacity | $ 750,000,000 | |||
Credit Facilities [Member] | Central Mexico Terminals [Member] | IEnova Revolver [Member] | ||||
Debt Instrument [Line Items] | ||||
Variable interest rate (percent) | 5.969% | 6.046% | ||
Amount borrowed on lines of credit | $ 148,000,000 | 71,000,000 | ||
Repayments on lines of credit | $ 0 | |||
Subordinated Debt [Member] | VLP Subordinated Notes [Member] | Valero Energy Partners LP [Member] | ||||
Debt Instrument [Line Items] | ||||
Repayments of notes payable-related party | $ 85,000,000 |
Debt, Credit Facilities (Detail
Debt, Credit Facilities (Details) | Nov. 07, 2019USD ($) | Sep. 30, 2019CAD ($) | Sep. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Valero Revolver [Member] | Credit Facilities [Member] | ||||||
Line of Credit Facility | ||||||
Facility amount | $ 4,000,000,000 | $ 4,000,000,000 | $ 3,000,000,000 | |||
Outstanding borrowings or letters of credit issued | 0 | |||||
Availability | 3,966,000,000 | |||||
Valero Revolver Letter of Credit [Member] | Credit Facilities [Member] | ||||||
Line of Credit Facility | ||||||
Facility amount | $ 2,400,000,000 | |||||
Outstanding borrowings or letters of credit issued | [1] | 34,000,000 | ||||
Canadian Revolver [Member] | Credit Facilities [Member] | ||||||
Line of Credit Facility | ||||||
Facility amount | [2] | $ 150,000,000 | ||||
Outstanding borrowings, short-term | [2] | 0 | ||||
Availability | [2] | 145,000,000 | ||||
Canadian Revolver Letter of Credit [Member] | Credit Facilities [Member] | ||||||
Line of Credit Facility | ||||||
Outstanding borrowings, short-term | [1],[2] | $ 5,000,000 | ||||
Accounts Receivable Sales Facility [Member] | Credit Facilities [Member] | ||||||
Line of Credit Facility | ||||||
Facility amount | 1,300,000,000 | |||||
Outstanding borrowings, short-term | 100,000,000 | |||||
Availability | 1,200,000,000 | |||||
Committed Letter of Credit Facility Expires November 2019 [Member] | Credit Facilities [Member] | ||||||
Line of Credit Facility | ||||||
Facility amount | [3] | 100,000,000 | ||||
Outstanding borrowings, short-term | [1],[3] | 0 | ||||
Availability | [3] | 100,000,000 | ||||
Committed Letter of Credit Facility Expires November 2019 [Member] | Credit Facilities [Member] | ||||||
Line of Credit Facility | ||||||
Facility amount | 100,000,000 | |||||
Committed Letter of Credit Facility Expires November 2019 [Member] | Credit Facilities [Member] | Subsequent Event [Member] | ||||||
Line of Credit Facility | ||||||
Facility amount | $ 50,000,000 | |||||
IEnova Revolver [Member] | Central Mexico Terminals [Member] | Credit Facilities [Member] | Variable Interest Entities (VIEs) [Member] | ||||||
Line of Credit Facility | ||||||
Facility amount | [4] | 340,000,000 | ||||
Outstanding borrowings or letters of credit issued | [4] | 257,000,000 | ||||
Availability | [4] | 83,000,000 | ||||
Uncommitted Letter of Credit Facility [Member] | Credit Facilities [Member] | ||||||
Line of Credit Facility | ||||||
Outstanding borrowings, short-term | [1] | $ 129,000,000 | ||||
[1] | Letters of credit issued as of September 30, 2019 expire at various times in 2019 through 2020 . | |||||
[2] | The Canadian Revolver was amended in November 2019 to extend the maturity date from November 2019 to November 2020. | |||||
[3] | The letter of credit facility was amended in November 2019 to reduce the facility from $100 million to $50 million and to extend the maturity date from November 2019 to November 2020. | |||||
[4] | Creditors of our VIE do not have recourse against us. |
Debt, Interest Incurred (Detail
Debt, Interest Incurred (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Interest and Debt Expense, Net of Capitalized Interest | ||||
Interest and debt expense | $ 133 | $ 134 | $ 405 | $ 417 |
Less capitalized interest | 22 | 23 | 70 | 61 |
Interest and debt expense, net of capitalized interest | $ 111 | $ 111 | $ 335 | $ 356 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Jan. 01, 2019USD ($) | Sep. 30, 2019USD ($)bbl / drenewal | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)bbl / drenewal | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Commitments and Contingencies (Textual) | ||||||
MVP Terminal construction costs | $ 43,539 | $ 43,539 | $ 42,473 | |||
Contributions to MVP | 122 | $ 124 | ||||
Cost of undivided interest in pipeline | $ 65 | $ 181 | ||||
MVP Terminalling, LLC (MVP) [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Initial term of terminal agreement | 12 years | |||||
Number of available automatic renewals | renewal | 2 | 2 | ||||
Automatic renewal term of terminalling agreement | 5 years | |||||
MVP Terminal [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Contributions to MVP | $ 115 | $ 362 | ||||
Equity investment in MVP | $ 362 | $ 362 | ||||
MVP Terminal [Member] | Topic 842 [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Derecognized assets related to MVP | $ 539 | |||||
Derecognized liability related to MVP | 292 | |||||
Equity investment in MVP recorded due to derecognition of assets and liabilities | $ 247 | |||||
MVP Terminal [Member] | Magellan Midstream Partners LP (Magellan) [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Long-term liability recorded | 292 | |||||
MVP Terminal [Member] | Expected [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Contributions to MVP | $ 420 | |||||
MVP Terminal [Member] | Construction in Progress [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
MVP Terminal construction costs | $ 539 | |||||
MVP Terminal [Member] | Minimum [Member] | Construction in Progress [Member] | Expected [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
MVP Terminal construction costs | 840 | |||||
MVP Terminal [Member] | Maximum [Member] | Construction in Progress [Member] | Expected [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
MVP Terminal construction costs | $ 1,400 | |||||
Central Texas Pipeline [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Undivided interest in project (percent) | 40.00% | 40.00% | ||||
Pipeline capacity (in barrels per day) | bbl / d | 150,000 | 150,000 | ||||
Cost of undivided interest in pipeline | $ 65 | $ 160 | ||||
Variable Interest Entity, Not Primary Beneficiary [Member] | MVP Terminalling, LLC (MVP) [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Membership percentage in VIE (percent) | 50.00% | |||||
Variable Interest Entity, Not Primary Beneficiary [Member] | MVP Terminalling, LLC (MVP) [Member] | Expected [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Membership percentage in VIE (percent) | 50.00% |
Equity, Share Activity Rollforw
Equity, Share Activity Rollforward (Details) - shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Share Activity | ||
Treasury stock, beginning balance (shares) | (255,905,051) | |
Treasury stock, ending balance (shares) | (262,691,943) | |
Common Stock [Member] | ||
Share Activity | ||
Common stock, beginning balance (shares) | 673,000,000 | 673,000,000 |
Common stock, ending balance (shares) | 673,000,000 | 673,000,000 |
Treasury Stock [Member] | ||
Share Activity | ||
Treasury stock, beginning balance (shares) | (256,000,000) | (240,000,000) |
Transactions in connection with stock-based compensation plans (shares) | 0 | (1,000,000) |
Stock purchases under purchase programs (shares) | (7,000,000) | (8,000,000) |
Treasury stock, ending balance (shares) | (263,000,000) | (249,000,000) |
Equity, Narrative (Details)
Equity, Narrative (Details) | Oct. 30, 2019$ / shares |
Dividend Declared [Member] | Subsequent Event [Member] | |
Equity (Textual) | |
Dividends payable, amount per share (in dollars per share) | $ 0.90 |
Equity, Changes in Accumulated
Equity, Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Changes in Accumulated Other Comprehensive Loss, By Component, Net of Tax | ||||
Beginning balance, accumulated other comprehensive loss, net of tax | $ 21,667 | |||
Other comprehensive income (loss) before reclassifications | $ (179) | $ 20 | (26) | $ (224) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 7 | 4 | 20 |
Other comprehensive income (loss) | (179) | 27 | (22) | (204) |
Reclassification of stranded income tax effects of Tax Reform to retained earnings | 0 | |||
Ending balance, accumulated other comprehensive loss, net of tax | 21,107 | 21,107 | ||
Accumulated Other Comprehensive Loss [Member] | ||||
Changes in Accumulated Other Comprehensive Loss, By Component, Net of Tax | ||||
Beginning balance, accumulated other comprehensive loss, net of tax | (1,350) | (1,262) | (1,507) | (940) |
Reclassification of stranded income tax effects of Tax Reform to retained earnings | 0 | (91) | ||
Ending balance, accumulated other comprehensive loss, net of tax | (1,529) | (1,235) | (1,529) | (1,235) |
Foreign Currency Translation Adjustment [Member] | ||||
Changes in Accumulated Other Comprehensive Loss, By Component, Net of Tax | ||||
Beginning balance, accumulated other comprehensive loss, net of tax | (870) | (751) | (1,022) | (507) |
Other comprehensive income (loss) before reclassifications | (180) | 20 | (28) | (224) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | (180) | 20 | (28) | (224) |
Reclassification of stranded income tax effects of Tax Reform to retained earnings | 0 | 0 | ||
Ending balance, accumulated other comprehensive loss, net of tax | (1,050) | (731) | (1,050) | (731) |
Defined Benefit Plans Items [Member] | ||||
Changes in Accumulated Other Comprehensive Loss, By Component, Net of Tax | ||||
Beginning balance, accumulated other comprehensive loss, net of tax | (481) | (511) | (485) | (433) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 2 | 7 | 6 | 20 |
Other comprehensive income (loss) | 2 | 7 | 6 | 20 |
Reclassification of stranded income tax effects of Tax Reform to retained earnings | 0 | (91) | ||
Ending balance, accumulated other comprehensive loss, net of tax | (479) | $ (504) | (479) | $ (504) |
Gains (Losses) on Cash Flow Hedges [Member] | ||||
Changes in Accumulated Other Comprehensive Loss, By Component, Net of Tax | ||||
Beginning balance, accumulated other comprehensive loss, net of tax | 1 | 0 | ||
Other comprehensive income (loss) before reclassifications | 1 | 2 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (2) | (2) | ||
Other comprehensive income (loss) | (1) | 0 | ||
Reclassification of stranded income tax effects of Tax Reform to retained earnings | 0 | |||
Ending balance, accumulated other comprehensive loss, net of tax | $ 0 | $ 0 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Sep. 30, 2019 | ||
Assets | |||
Cash and cash equivalents | $ 2,982 | $ 2,137 | |
Property, plant, and equipment, net | 28,848 | 28,890 | |
Liabilities | |||
Current liabilities, including current portion of debt and finance lease obligations | 10,724 | 12,130 | |
Debt and finance lease obligations, less current portion | 8,871 | 9,170 | |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Assets | |||
Cash and cash equivalents | 235 | 97 | |
Other current assets | 198 | 230 | |
Property, plant, and equipment, net | 2,254 | 1,037 | |
Liabilities | |||
Current liabilities, including current portion of debt and finance lease obligations | 182 | 366 | |
Debt and finance lease obligations, less current portion | 1,024 | 32 | |
Valero Energy Partners LP [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Assets | |||
Cash and cash equivalents | [1] | 152 | |
Other current assets | [1] | 2 | |
Property, plant, and equipment, net | [1] | 1,409 | |
Liabilities | |||
Current liabilities, including current portion of debt and finance lease obligations | [1] | 27 | |
Debt and finance lease obligations, less current portion | [1] | 990 | |
Diamond Green Diesel Holdings LLC [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Assets | |||
Cash and cash equivalents | 65 | 74 | |
Other current assets | 112 | 110 | |
Property, plant, and equipment, net | 576 | 646 | |
Liabilities | |||
Current liabilities, including current portion of debt and finance lease obligations | 28 | 40 | |
Debt and finance lease obligations, less current portion | 0 | 1 | |
Central Mexico Terminals [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Other current assets | 20 | 26 | |
Property, plant, and equipment, net | 156 | 284 | |
Liabilities | |||
Current liabilities, including current portion of debt and finance lease obligations | 118 | 307 | |
Debt and finance lease obligations, less current portion | 0 | 0 | |
Other Variable Interest Entities [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Assets | |||
Cash and cash equivalents | 18 | 23 | |
Other current assets | 64 | 94 | |
Property, plant, and equipment, net | 113 | 107 | |
Liabilities | |||
Current liabilities, including current portion of debt and finance lease obligations | 9 | 19 | |
Debt and finance lease obligations, less current portion | $ 34 | $ 31 | |
Limited Partner [Member] | Valero Energy Partners LP [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Variable Interest Entity (Textual) | |||
Ownership percentage (percent) | 66.20% | ||
Limited Partner [Member] | Valero Energy Partners LP [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||
Variable Interest Entity (Textual) | |||
Ownership percentage (percent) | 31.80% | ||
General Partner [Member] | Valero Energy Partners LP [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Variable Interest Entity (Textual) | |||
Ownership percentage (percent) | 2.00% | ||
[1] | Prior to the completion of the Merger Transaction with VLP on January 10, 2019 as discussed in Note 2 , VLP was a publicly traded master limited partnership that we had determined was a VIE. VLP was formed by us to own, operate, develop, and acquire crude oil and refined petroleum products pipelines, terminals, and other transportation and logistics assets. As of December 31, 2018, we owned a 66.2 percent limited partner interest and a 2.0 percent general partner interest in VLP, and public unitholders owned a 31.8 percent limited partner interest. Upon completion of the Merger Transaction, VLP became our indirect wholly owned subsidiary and, as a result, was no longer a VIE. |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Pension Plans [Member] | ||||
Components of net periodic benefit cost: | ||||
Service cost | $ 29 | $ 33 | $ 89 | $ 100 |
Interest cost | 25 | 22 | 74 | 68 |
Expected return on plan assets | (41) | (40) | (124) | (122) |
Amortization of: | ||||
Net actuarial (gain) loss | 10 | 16 | 30 | 49 |
Prior service credit | (5) | (5) | (14) | (14) |
Special charges | 0 | 2 | 2 | 7 |
Net periodic benefit cost | 18 | 28 | 57 | 88 |
Employee Benefit Plans (Textual) | ||||
Contributions to benefit plans | 120 | 132 | ||
Employer discretionary contributions | 85 | |||
Expected employer contribution for current fiscal year | 125 | 125 | ||
Other Postretirement Benefit Plans [Member] | ||||
Components of net periodic benefit cost: | ||||
Service cost | 1 | 2 | 3 | 5 |
Interest cost | 2 | 2 | 8 | 7 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of: | ||||
Net actuarial (gain) loss | 0 | (1) | (2) | (2) |
Prior service credit | (2) | (2) | (6) | (8) |
Special charges | 0 | 0 | 1 | 0 |
Net periodic benefit cost | 1 | $ 1 | 4 | 2 |
Employee Benefit Plans (Textual) | ||||
Contributions to benefit plans | 13 | $ 15 | ||
Expected employer contribution for current fiscal year | $ 21 | $ 21 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings per common share: | ||||
Net income attributable to Valero stockholders | $ 609 | $ 856 | $ 1,362 | $ 2,170 |
Less income allocated to participating securities | 1 | 2 | 3 | 6 |
Net income available to common stockholders | $ 608 | $ 854 | $ 1,359 | $ 2,164 |
Weighted-average common shares outstanding (in shares) | 412 | 425 | 415 | 428 |
Earnings per common share (in dollars per share) | $ 1.48 | $ 2.01 | $ 3.28 | $ 5.05 |
Earnings per common share – assuming dilution: | ||||
Net income attributable to Valero stockholders | $ 609 | $ 856 | $ 1,362 | $ 2,170 |
Weighted-average common shares outstanding (in shares) | 412 | 425 | 415 | 428 |
Effect of dilutive securities (in shares) | 1 | 2 | 1 | 2 |
Weighted-average common shares outstanding – assuming dilution (in shares) | 413 | 427 | 416 | 430 |
Earnings per common share – assuming dilution (in dollars per share) | $ 1.48 | $ 2.01 | $ 3.28 | $ 5.05 |
Revenues and Segment Informat_3
Revenues and Segment Information, Receivables from Contracts with Customers (Details) - USD ($) $ in Billions | Sep. 30, 2019 | Dec. 31, 2018 |
Receivables from Contracts with Customers [Member] | ||
Receivables from Contracts with Customers | ||
Receivables from contracts with customers | $ 5.3 | $ 4.7 |
Revenues and Segment Informat_4
Revenues and Segment Information, Components of Operating Income (Loss) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($)refineryethanol_plant | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)refineryethanol_plantsegment | Sep. 30, 2018USD ($) | ||
Segment Information for our Reportable Segments | |||||
Revenues | [1] | $ 27,249 | $ 30,849 | $ 80,445 | $ 88,303 |
Cost of materials and other | 24,335 | 27,701 | 72,396 | 79,317 | |
Operating expenses (excluding depreciation and amortization expense reflected below) | 1,239 | 1,193 | 3,629 | 3,439 | |
Depreciation and amortization expense | 556 | 504 | 1,645 | 1,499 | |
Total cost of sales | 26,130 | 29,398 | 77,670 | 84,255 | |
Other operating expenses | 10 | 10 | 14 | 41 | |
General and administrative expenses (excluding depreciation and amortization expense reflected below) | 217 | 209 | 625 | 695 | |
Depreciation and amortization expense | 11 | 13 | 39 | 39 | |
Operating income (loss) | $ 881 | 1,219 | $ 2,097 | 3,273 | |
Disclosure of Entity's Reportable Segments (Textual) | |||||
Number of reportable segments | segment | 3 | ||||
Number of petroleum refineries | refinery | 15 | 15 | |||
Number of ethanol plants | ethanol_plant | 14 | 14 | |||
Corporate, Reconciling Items And Eliminations [Member] | |||||
Segment Information for our Reportable Segments | |||||
Revenues | $ (108) | (87) | $ (346) | (276) | |
Operating income (loss) | (228) | (221) | (664) | (731) | |
Corporate [Member] | |||||
Segment Information for our Reportable Segments | |||||
Revenues | 1 | 1 | 2 | 3 | |
General and administrative expenses (excluding depreciation and amortization expense reflected below) | 217 | 209 | 625 | 695 | |
Depreciation and amortization expense | 11 | 13 | 39 | 39 | |
Intersegment Eliminations [Member] | |||||
Segment Information for our Reportable Segments | |||||
Revenues | (109) | (88) | (348) | (279) | |
Cost of materials and other | (108) | (88) | (346) | (279) | |
Operating expenses (excluding depreciation and amortization expense reflected below) | 0 | 0 | 0 | 0 | |
Depreciation and amortization expense | 0 | 0 | 0 | 0 | |
Total cost of sales | (108) | (88) | (346) | (279) | |
Other operating expenses | 0 | 0 | 0 | 0 | |
Refining [Member] | |||||
Segment Information for our Reportable Segments | |||||
Revenues | 26,145 | 29,894 | 77,109 | 85,371 | |
Refining [Member] | Operating Segments [Member] | |||||
Segment Information for our Reportable Segments | |||||
Revenues | 26,147 | 29,899 | 77,121 | 85,391 | |
Cost of materials and other | 23,432 | 26,928 | 69,769 | 77,195 | |
Operating expenses (excluding depreciation and amortization expense reflected below) | 1,100 | 1,058 | 3,197 | 3,057 | |
Depreciation and amortization expense | 518 | 479 | 1,539 | 1,423 | |
Total cost of sales | 25,050 | 28,465 | 74,505 | 81,675 | |
Other operating expenses | 10 | 10 | 13 | 41 | |
General and administrative expenses (excluding depreciation and amortization expense reflected below) | 0 | 0 | 0 | 0 | |
Depreciation and amortization expense | 0 | 0 | 0 | 0 | |
Operating income (loss) | 1,087 | 1,424 | 2,603 | 3,675 | |
Refining [Member] | Intersegment Eliminations [Member] | |||||
Segment Information for our Reportable Segments | |||||
Revenues | 2 | 5 | 12 | 20 | |
Ethanol [Member] | |||||
Segment Information for our Reportable Segments | |||||
Revenues | 891 | 864 | 2,648 | 2,625 | |
Ethanol [Member] | Operating Segments [Member] | |||||
Segment Information for our Reportable Segments | |||||
Revenues | 948 | 932 | 2,810 | 2,781 | |
Cost of materials and other | 847 | 776 | 2,396 | 2,279 | |
Operating expenses (excluding depreciation and amortization expense reflected below) | 121 | 116 | 378 | 336 | |
Depreciation and amortization expense | 23 | 19 | 68 | 57 | |
Total cost of sales | 991 | 911 | 2,842 | 2,672 | |
Other operating expenses | 0 | 0 | 1 | 0 | |
General and administrative expenses (excluding depreciation and amortization expense reflected below) | 0 | 0 | 0 | 0 | |
Depreciation and amortization expense | 0 | 0 | 0 | 0 | |
Operating income (loss) | (43) | 21 | (33) | 109 | |
Ethanol [Member] | Intersegment Eliminations [Member] | |||||
Segment Information for our Reportable Segments | |||||
Revenues | 57 | 68 | 162 | 156 | |
Renewable Diesel [Member] | |||||
Segment Information for our Reportable Segments | |||||
Revenues | 212 | 90 | 686 | 304 | |
Renewable Diesel [Member] | Operating Segments [Member] | |||||
Segment Information for our Reportable Segments | |||||
Revenues | 262 | 105 | 860 | 407 | |
Cost of materials and other | 164 | 85 | 577 | 122 | |
Operating expenses (excluding depreciation and amortization expense reflected below) | 18 | 19 | 54 | 46 | |
Depreciation and amortization expense | 15 | 6 | 38 | 19 | |
Total cost of sales | 197 | 110 | 669 | 187 | |
Other operating expenses | 0 | 0 | 0 | 0 | |
General and administrative expenses (excluding depreciation and amortization expense reflected below) | 0 | 0 | 0 | 0 | |
Depreciation and amortization expense | 0 | 0 | 0 | 0 | |
Operating income (loss) | 65 | (5) | 191 | 220 | |
Renewable Diesel [Member] | Intersegment Eliminations [Member] | |||||
Segment Information for our Reportable Segments | |||||
Revenues | $ 50 | $ 15 | $ 174 | $ 103 | |
[1] | Includes excise taxes on sales by certain of our international operations of $1,399 million and $1,338 million for the three months ended September 30, 2019 and 2018, respectively, and $4,139 million and $4,272 million for the nine months ended September 30, 2019 and 2018, respectively. |
Revenues and Segment Informat_5
Revenues and Segment Information, Disaggregation of Revenue by Product (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Revenue by Segment | |||||
Revenues | [1] | $ 27,249 | $ 30,849 | $ 80,445 | $ 88,303 |
Corporate [Member] | |||||
Revenue by Segment | |||||
Revenues | 1 | 1 | 2 | 3 | |
Corporate [Member] | Corporate - Other Revenues [Member] | |||||
Revenue by Segment | |||||
Revenues | 1 | 1 | 2 | 3 | |
Refining [Member] | |||||
Revenue by Segment | |||||
Revenues | 26,145 | 29,894 | 77,109 | 85,371 | |
Refining [Member] | Gasoline and Blendstocks [Member] | |||||
Revenue by Segment | |||||
Revenues | 10,978 | 12,660 | 31,882 | 35,803 | |
Refining [Member] | Distillates [Member] | |||||
Revenue by Segment | |||||
Revenues | 12,861 | 13,963 | 38,254 | 40,866 | |
Refining [Member] | Other Product Revenues [Member] | |||||
Revenue by Segment | |||||
Revenues | 2,306 | 3,271 | 6,973 | 8,702 | |
Ethanol [Member] | |||||
Revenue by Segment | |||||
Revenues | 891 | 864 | 2,648 | 2,625 | |
Ethanol [Member] | Ethanol [Member] | |||||
Revenue by Segment | |||||
Revenues | 714 | 695 | 2,108 | 2,092 | |
Ethanol [Member] | Distillers Grains [Member] | |||||
Revenue by Segment | |||||
Revenues | 177 | 169 | 540 | 533 | |
Renewable Diesel [Member] | |||||
Revenue by Segment | |||||
Revenues | 212 | 90 | 686 | 304 | |
Renewable Diesel [Member] | Renewable Diesel [Member] | |||||
Revenue by Segment | |||||
Revenues | $ 212 | $ 90 | $ 686 | $ 304 | |
[1] | Includes excise taxes on sales by certain of our international operations of $1,399 million and $1,338 million for the three months ended September 30, 2019 and 2018, respectively, and $4,139 million and $4,272 million for the nine months ended September 30, 2019 and 2018, respectively. |
Revenues and Segment Informat_6
Revenues and Segment Information, Assets (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Total Assets by Reportable Segment | ||
Reportable segment assets | $ 51,229 | $ 50,155 |
Corporate and Eliminations [Member] | ||
Total Assets by Reportable Segment | ||
Reportable segment assets | 3,088 | 4,189 |
Refining [Member] | Operating Segments [Member] | ||
Total Assets by Reportable Segment | ||
Reportable segment assets | 45,646 | 43,488 |
Ethanol [Member] | Operating Segments [Member] | ||
Total Assets by Reportable Segment | ||
Reportable segment assets | 1,617 | 1,691 |
Renewable Diesel [Member] | Operating Segments [Member] | ||
Total Assets by Reportable Segment | ||
Reportable segment assets | $ 878 | $ 787 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Decrease (increase) in current assets: | ||||
Receivables, net | $ (669) | $ (1,307) | ||
Inventories | 126 | (1,134) | ||
Prepaid expenses and other | 373 | (65) | ||
Increase (decrease) in current liabilities: | ||||
Accounts payable | 914 | 1,890 | ||
Accrued expenses | (92) | (168) | ||
Taxes other than income taxes payable | (25) | (32) | ||
Income taxes payable | 101 | (358) | ||
Changes in current assets and current liabilities | 728 | (1,174) | ||
Cash Flows Related to Interest and Income Taxes | ||||
Interest paid in excess of amount capitalized, including interest on finance leases | 303 | 344 | ||
Income taxes paid (received), net | (184) | $ 1,116 | ||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating leases - operating cash flows | 329 | |||
Operating leases - investing cash flows | 1 | |||
Changes in lease balances resulting from new and modified leases | ||||
Operating leases - changes in lease balances resulting from new and modified leases | [1] | 1,673 | ||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Finance leases - operating cash flows | 38 | |||
Finance leases - financing cash flows | 24 | |||
Change in lease balances resulting from new and modified leases | ||||
Finance leases - changes in lease balances resulting from new and modified leases | $ 221 | |||
Topic 842 [Member] | ||||
Changes in lease balances resulting from new and modified leases | ||||
Operating leases - changes in lease balances resulting from new and modified leases | $ 1,300 | |||
[1] | Includes noncash activity of $1.3 billion for ROU assets for operating leases recorded on January 1, 2019 upon adoption of Topic 842. |
Fair Value Measurements, Recurr
Fair Value Measurements, Recurring (Details) - Fair Value, Recurring [Member] - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Total gross fair value, assets | $ 709 | $ 2,865 |
Effect of counterparty netting | (620) | (2,669) |
Effect of cash collateral netting | (9) | (34) |
Net carrying value on Balance Sheet, assets | 80 | 162 |
Liabilities: | ||
Environmental credit obligations | 3 | 13 |
Total gross fair value, liabilities | 742 | 2,700 |
Effect of counterparty netting | (620) | (2,669) |
Effect of cash collateral netting | (109) | (12) |
Net carrying value on Balance Sheet, liabilities | 13 | 19 |
Assets Held in Trust [Member] | ||
Assets: | ||
Investments of certain benefit plans | 71 | 69 |
Commodity Contracts [Member] | ||
Assets: | ||
Derivative contracts | 634 | 2,792 |
Effect of counterparty netting | (620) | (2,669) |
Effect of cash collateral netting | (9) | (34) |
Derivative contracts, net assets | 5 | 89 |
Cash collateral received not offset | 0 | 0 |
Liabilities: | ||
Derivative contracts | 729 | 2,681 |
Effect of counterparty netting | (620) | (2,669) |
Effect of cash collateral netting | (109) | (12) |
Derivative contracts, net liabilities | 0 | 0 |
Cash collateral paid not offset | (50) | (136) |
Physical Purchase Contracts [Member] | ||
Assets: | ||
Derivative contracts | 2 | |
Derivative contracts, net assets | 2 | |
Liabilities: | ||
Derivative contracts | 4 | 5 |
Derivative contracts, net liabilities | 4 | 5 |
Foreign Currency Contracts [Member] | ||
Assets: | ||
Derivative contracts | 2 | 4 |
Derivative contracts, net assets | 2 | 4 |
Liabilities: | ||
Derivative contracts | 6 | 1 |
Derivative contracts, net liabilities | 6 | 1 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Total gross fair value, assets | 698 | 2,856 |
Liabilities: | ||
Environmental credit obligations | 0 | 0 |
Total gross fair value, liabilities | 735 | 2,682 |
Fair Value, Inputs, Level 1 [Member] | Assets Held in Trust [Member] | ||
Assets: | ||
Investments of certain benefit plans | 62 | 60 |
Fair Value, Inputs, Level 1 [Member] | Commodity Contracts [Member] | ||
Assets: | ||
Derivative contracts | 634 | 2,792 |
Liabilities: | ||
Derivative contracts | 729 | 2,681 |
Fair Value, Inputs, Level 1 [Member] | Physical Purchase Contracts [Member] | ||
Assets: | ||
Derivative contracts | 0 | |
Liabilities: | ||
Derivative contracts | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Foreign Currency Contracts [Member] | ||
Assets: | ||
Derivative contracts | 2 | 4 |
Liabilities: | ||
Derivative contracts | 6 | 1 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Total gross fair value, assets | 2 | 0 |
Liabilities: | ||
Environmental credit obligations | 3 | 13 |
Total gross fair value, liabilities | 7 | 18 |
Fair Value, Inputs, Level 2 [Member] | Assets Held in Trust [Member] | ||
Assets: | ||
Investments of certain benefit plans | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Commodity Contracts [Member] | ||
Assets: | ||
Derivative contracts | 0 | 0 |
Liabilities: | ||
Derivative contracts | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Physical Purchase Contracts [Member] | ||
Assets: | ||
Derivative contracts | 2 | |
Liabilities: | ||
Derivative contracts | 4 | 5 |
Fair Value, Inputs, Level 2 [Member] | Foreign Currency Contracts [Member] | ||
Assets: | ||
Derivative contracts | 0 | 0 |
Liabilities: | ||
Derivative contracts | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Total gross fair value, assets | 9 | 9 |
Liabilities: | ||
Environmental credit obligations | 0 | 0 |
Total gross fair value, liabilities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Assets Held in Trust [Member] | ||
Assets: | ||
Investments of certain benefit plans | 9 | 9 |
Fair Value, Inputs, Level 3 [Member] | Commodity Contracts [Member] | ||
Assets: | ||
Derivative contracts | 0 | 0 |
Liabilities: | ||
Derivative contracts | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Physical Purchase Contracts [Member] | ||
Assets: | ||
Derivative contracts | 0 | |
Liabilities: | ||
Derivative contracts | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Foreign Currency Contracts [Member] | ||
Assets: | ||
Derivative contracts | 0 | 0 |
Liabilities: | ||
Derivative contracts | $ 0 | $ 0 |
Fair Value Measurements, Nonrec
Fair Value Measurements, Nonrecurring (Details) - Fair Value, Nonrecurring [Member] - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value Measurements (Textual) | ||
Assets measured at fair value, nonrecurring | $ 0 | $ 0 |
Liabilities measured at fair value, nonrecurring | $ 0 | $ 0 |
Fair Value Measurements, Other
Fair Value Measurements, Other Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Financial assets: | ||
Cash and cash equivalents, at carrying amount | $ 2,137 | $ 2,982 |
Financial liabilities: | ||
Debt (excluding finance leases), at carrying amount | 8,788 | 8,503 |
Fair Value, Inputs, Level 1 [Member] | ||
Financial assets: | ||
Cash and cash equivalents, at fair value | 2,137 | 2,982 |
Fair Value, Inputs, Level 2 [Member] | ||
Financial liabilities: | ||
Debt (excluding finance leases), at fair value | $ 10,336 | $ 8,986 |
Price Risk Management Activit_3
Price Risk Management Activities (Details) bu in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)MBblsbu | Sep. 30, 2018USD ($) | |
Price Risk Management Activities (Textual) | ||||
Compliance program costs | $ | $ 24,335 | $ 27,701 | $ 72,396 | $ 79,317 |
Environmental Compliance Program Price Risk [Member] | ||||
Price Risk Management Activities (Textual) | ||||
Compliance program costs | $ | 69 | $ 94 | $ 227 | $ 431 |
Derivatives Designated as Hedges [Member] | Cash Flow Hedges [Member] | Future, 2019 Maturity [Member] | Long (Purchases) [Member] | Renewable Diesel (in thousands of barrels) [Member] | ||||
Volume of Outstanding Contracts | ||||
Nonmonetary notional amount of price risk derivatives, volume | 906 | |||
Derivatives Designated as Hedges [Member] | Cash Flow Hedges [Member] | Future, 2019 Maturity [Member] | Short (Sales) [Member] | Renewable Diesel (in thousands of barrels) [Member] | ||||
Volume of Outstanding Contracts | ||||
Nonmonetary notional amount of price risk derivatives, volume | 2,571 | |||
Derivatives Designated as Hedges [Member] | Cash Flow Hedges [Member] | Future, 2020 Maturity [Member] | Long (Purchases) [Member] | Renewable Diesel (in thousands of barrels) [Member] | ||||
Volume of Outstanding Contracts | ||||
Nonmonetary notional amount of price risk derivatives, volume | 73 | |||
Derivatives Designated as Hedges [Member] | Cash Flow Hedges [Member] | Future, 2020 Maturity [Member] | Short (Sales) [Member] | Renewable Diesel (in thousands of barrels) [Member] | ||||
Volume of Outstanding Contracts | ||||
Nonmonetary notional amount of price risk derivatives, volume | 242 | |||
Derivatives Designated as Economic Hedges [Member] | Future, 2019 Maturity [Member] | Long (Purchases) [Member] | Crude Oil and Refined Petroleum Products (in thousands of barrels) [Member] | ||||
Volume of Outstanding Contracts | ||||
Nonmonetary notional amount of price risk derivatives, volume | 136,760 | |||
Derivatives Designated as Economic Hedges [Member] | Future, 2019 Maturity [Member] | Long (Purchases) [Member] | Corn (in thousands of bushels) [Member] | ||||
Volume of Outstanding Contracts | ||||
Nonmonetary notional amount of price risk derivatives, volume | bu | 71,555 | |||
Derivatives Designated as Economic Hedges [Member] | Future, 2019 Maturity [Member] | Short (Sales) [Member] | Crude Oil and Refined Petroleum Products (in thousands of barrels) [Member] | ||||
Volume of Outstanding Contracts | ||||
Nonmonetary notional amount of price risk derivatives, volume | 134,196 | |||
Derivatives Designated as Economic Hedges [Member] | Future, 2019 Maturity [Member] | Short (Sales) [Member] | Corn (in thousands of bushels) [Member] | ||||
Volume of Outstanding Contracts | ||||
Nonmonetary notional amount of price risk derivatives, volume | bu | 88,825 | |||
Derivatives Designated as Economic Hedges [Member] | Future, 2020 Maturity [Member] | Long (Purchases) [Member] | Crude Oil and Refined Petroleum Products (in thousands of barrels) [Member] | ||||
Volume of Outstanding Contracts | ||||
Nonmonetary notional amount of price risk derivatives, volume | 2,849 | |||
Derivatives Designated as Economic Hedges [Member] | Future, 2020 Maturity [Member] | Long (Purchases) [Member] | Corn (in thousands of bushels) [Member] | ||||
Volume of Outstanding Contracts | ||||
Nonmonetary notional amount of price risk derivatives, volume | bu | 1,540 | |||
Derivatives Designated as Economic Hedges [Member] | Future, 2020 Maturity [Member] | Short (Sales) [Member] | Crude Oil and Refined Petroleum Products (in thousands of barrels) [Member] | ||||
Volume of Outstanding Contracts | ||||
Nonmonetary notional amount of price risk derivatives, volume | 3,063 | |||
Derivatives Designated as Economic Hedges [Member] | Future, 2020 Maturity [Member] | Short (Sales) [Member] | Corn (in thousands of bushels) [Member] | ||||
Volume of Outstanding Contracts | ||||
Nonmonetary notional amount of price risk derivatives, volume | bu | 10,345 | |||
Derivatives Designated as Economic Hedges [Member] | Options, 2019 Maturity [Member] | Long (Purchases) [Member] | Crude Oil and Refined Petroleum Products (in thousands of barrels) [Member] | ||||
Volume of Outstanding Contracts | ||||
Nonmonetary notional amount of price risk derivatives, volume | 16,634 | |||
Derivatives Designated as Economic Hedges [Member] | Options, 2019 Maturity [Member] | Short (Sales) [Member] | Crude Oil and Refined Petroleum Products (in thousands of barrels) [Member] | ||||
Volume of Outstanding Contracts | ||||
Nonmonetary notional amount of price risk derivatives, volume | 15,987 | |||
Derivatives Designated as Economic Hedges [Member] | Options, 2020 Maturity [Member] | Long (Purchases) [Member] | Crude Oil and Refined Petroleum Products (in thousands of barrels) [Member] | ||||
Volume of Outstanding Contracts | ||||
Nonmonetary notional amount of price risk derivatives, volume | 0 | |||
Derivatives Designated as Economic Hedges [Member] | Options, 2020 Maturity [Member] | Short (Sales) [Member] | Crude Oil and Refined Petroleum Products (in thousands of barrels) [Member] | ||||
Volume of Outstanding Contracts | ||||
Nonmonetary notional amount of price risk derivatives, volume | 0 | |||
Derivatives Designated as Economic Hedges [Member] | Physical Contracts, 2019 Maturity [Member] | Long (Purchases) [Member] | Corn (in thousands of bushels) [Member] | ||||
Volume of Outstanding Contracts | ||||
Nonmonetary notional amount of price risk derivatives, volume | bu | 20,368 | |||
Derivatives Designated as Economic Hedges [Member] | Physical Contracts, 2020 Maturity [Member] | Long (Purchases) [Member] | Corn (in thousands of bushels) [Member] | ||||
Volume of Outstanding Contracts | ||||
Nonmonetary notional amount of price risk derivatives, volume | bu | 8,831 | |||
Derivatives Designated as Economic Hedges [Member] | Foreign Exchange Contract, US Dollars [Member] | ||||
Price Risk Management Activities (Textual) | ||||
Monetary notional amount of derivative liabilities | $ | 436 | $ 436 | ||
Derivatives Designated as Economic Hedges [Member] | Foreign Exchange Contract, US Dollar Equivalent Canadian Dollars [Member] | ||||
Price Risk Management Activities (Textual) | ||||
Monetary notional amount of derivative liabilities | $ | 1,800 | 1,800 | ||
Derivatives Designated as Economic Hedges [Member] | Foreign Exchange Contract, US Dollar Equivalent Pounds Sterling [Member] | ||||
Price Risk Management Activities (Textual) | ||||
Monetary notional amount of derivative liabilities | $ | $ 150 | $ 150 |
Price Risk Management Activit_4
Price Risk Management Activities, Hedging Instruments by Consolidated Balance Sheet Location (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Derivatives Designated as Hedging Instruments [Member] | Commodity Contracts [Member] | Receivable, Net [Member] | ||
Fair Values of Derivative Instruments | ||
Derivative asset, fair value, gross asset | $ 6 | $ 0 |
Derivative asset, fair value, gross liability | 6 | 0 |
Derivatives Not Designated as Hedging Instruments [Member] | ||
Fair Values of Derivative Instruments | ||
Derivative asset, fair value, gross asset | 632 | 2,796 |
Derivative liability, fair value, gross liability | 733 | 2,687 |
Derivatives Not Designated as Hedging Instruments [Member] | Commodity Contracts [Member] | Receivable, Net [Member] | ||
Fair Values of Derivative Instruments | ||
Derivative asset, fair value, gross asset | 628 | 2,792 |
Derivative asset, fair value, gross liability | 723 | 2,681 |
Derivatives Not Designated as Hedging Instruments [Member] | Physical Purchase Contracts [Member] | Inventories [Member] | ||
Fair Values of Derivative Instruments | ||
Derivative asset, fair value, gross asset | 2 | 0 |
Derivative asset, fair value, gross liability | 4 | 5 |
Derivatives Not Designated as Hedging Instruments [Member] | Foreign Currency Contracts [Member] | Receivable, Net [Member] | ||
Fair Values of Derivative Instruments | ||
Derivative asset, fair value, gross asset | 2 | 4 |
Derivative asset, fair value, gross liability | 0 | 0 |
Derivatives Not Designated as Hedging Instruments [Member] | Foreign Currency Contracts [Member] | Accrued Expenses [Member] | ||
Fair Values of Derivative Instruments | ||
Derivative liability, fair value, gross asset | 0 | 0 |
Derivative liability, fair value, gross liability | $ 6 | $ 1 |
Price Risk Management Activit_5
Price Risk Management Activities, Effect of Derivative Instruments on Income (Details) - Derivatives Not Designated as Hedging Instruments [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Commodity Contracts [Member] | Revenues [Member] | ||||
Effect of Derivative Instruments on Income | ||||
Gain (loss) recognized in income on derivatives | $ (1) | $ 0 | $ 4 | $ 0 |
Commodity Contracts [Member] | Cost of Materials and Other [Member] | ||||
Effect of Derivative Instruments on Income | ||||
Gain (loss) recognized in income on derivatives | (26) | (98) | (25) | (125) |
Foreign Currency Contracts [Member] | Cost of Materials and Other [Member] | ||||
Effect of Derivative Instruments on Income | ||||
Gain (loss) recognized in income on derivatives | 9 | (7) | 2 | 7 |
Foreign Currency Contracts [Member] | Other Income, Net [Member] | ||||
Effect of Derivative Instruments on Income | ||||
Gain (loss) recognized in income on derivatives | $ (19) | $ 11 | $ 36 | $ (6) |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Statements (Details) - Valero Energy Partners LP [Member] - Senior Notes [Member] | Sep. 30, 2019 | Sep. 30, 2018 |
VLP Senior Notes Due December 15, 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Stated rate on debt instrument (percent) | 4.375% | |
VLP Senior Notes Due March 15, 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Stated rate on debt instrument (percent) | 4.50% | 4.50% |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Statements, Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||||||
Cash and cash equivalents | $ 2,137 | $ 2,982 | ||||
Receivables, net | 7,994 | 7,345 | ||||
Receivables from affiliates | 0 | 0 | ||||
Inventories | 6,376 | 6,532 | ||||
Prepaid expenses and other | 526 | 816 | ||||
Total current assets | 17,033 | 17,675 | ||||
Property, plant, and equipment, at cost | 43,539 | 42,473 | ||||
Accumulated depreciation | (14,649) | (13,625) | ||||
Property, plant, and equipment, net | 28,890 | 28,848 | ||||
Investment in affiliates | 0 | 0 | ||||
Long-term notes receivable from affiliates | 0 | |||||
Deferred charges and other assets, net | 5,306 | 3,632 | ||||
Total assets | 51,229 | 50,155 | ||||
Current liabilities: | ||||||
Current portion of debt and finance lease obligations | 402 | 238 | ||||
Accounts payable | 9,504 | 8,594 | ||||
Accounts payable to affiliates | 0 | 0 | ||||
Accrued expenses | 881 | 630 | ||||
Accrued expenses to affiliates | 0 | |||||
Taxes other than income taxes payable | 1,175 | 1,213 | ||||
Income taxes payable | 168 | 49 | ||||
Total current liabilities | 12,130 | 10,724 | ||||
Debt and finance lease obligations, less current portion | 9,170 | 8,871 | ||||
Long-term notes payable to affiliates | 0 | |||||
Deferred income tax liabilities | 4,920 | 4,962 | ||||
Other long-term liabilities | 3,421 | 2,867 | ||||
Stockholders’ equity: | ||||||
Common stock | 7 | 7 | ||||
Additional paid-in capital | 6,818 | 7,048 | ||||
Treasury stock, at cost | (15,472) | (14,925) | ||||
Retained earnings | 31,283 | 31,044 | ||||
Partners’ equity | 0 | 0 | ||||
Accumulated other comprehensive loss | (1,529) | (1,507) | ||||
Total Valero Energy Corporation stockholders’ equity | 21,107 | 21,667 | ||||
Noncontrolling interests | 481 | 1,064 | ||||
Total equity | 21,588 | $ 21,837 | 22,731 | $ 22,960 | $ 22,804 | $ 22,900 |
Total liabilities and equity | 51,229 | 50,155 | ||||
Eliminations [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Receivables, net | 0 | 0 | ||||
Receivables from affiliates | (16,802) | (15,055) | ||||
Inventories | 0 | 0 | ||||
Prepaid expenses and other | 0 | (5) | ||||
Total current assets | (16,802) | (15,060) | ||||
Property, plant, and equipment, at cost | 0 | 0 | ||||
Accumulated depreciation | 0 | 0 | ||||
Property, plant, and equipment, net | 0 | 0 | ||||
Investment in affiliates | (39,276) | (36,642) | ||||
Long-term notes receivable from affiliates | (285) | |||||
Deferred charges and other assets, net | 0 | 0 | ||||
Total assets | (56,078) | (51,987) | ||||
Current liabilities: | ||||||
Current portion of debt and finance lease obligations | 0 | 0 | ||||
Accounts payable | 0 | 0 | ||||
Accounts payable to affiliates | (16,802) | (15,054) | ||||
Accrued expenses | 0 | 0 | ||||
Accrued expenses to affiliates | (1) | |||||
Taxes other than income taxes payable | 0 | 0 | ||||
Income taxes payable | 0 | (5) | ||||
Total current liabilities | (16,802) | (15,060) | ||||
Debt and finance lease obligations, less current portion | 0 | 0 | ||||
Long-term notes payable to affiliates | (285) | |||||
Deferred income tax liabilities | 0 | 0 | ||||
Other long-term liabilities | 0 | 0 | ||||
Stockholders’ equity: | ||||||
Common stock | (1) | (1) | ||||
Additional paid-in capital | (9,765) | (9,754) | ||||
Treasury stock, at cost | 0 | 0 | ||||
Retained earnings | (30,286) | (28,305) | ||||
Partners’ equity | (383) | (299) | ||||
Accumulated other comprehensive loss | 1,159 | 1,097 | ||||
Total Valero Energy Corporation stockholders’ equity | (39,276) | (37,262) | ||||
Noncontrolling interests | 0 | 620 | ||||
Total equity | (39,276) | (36,642) | ||||
Total liabilities and equity | (56,078) | (51,987) | ||||
Valero Energy Corporation [Member] | Reportable Legal Entities [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 209 | 291 | ||||
Receivables, net | 0 | 0 | ||||
Receivables from affiliates | 4,396 | 4,369 | ||||
Inventories | 0 | 0 | ||||
Prepaid expenses and other | 64 | 466 | ||||
Total current assets | 4,669 | 5,126 | ||||
Property, plant, and equipment, at cost | 0 | 0 | ||||
Accumulated depreciation | 0 | 0 | ||||
Property, plant, and equipment, net | 0 | 0 | ||||
Investment in affiliates | 36,327 | 34,696 | ||||
Long-term notes receivable from affiliates | 285 | |||||
Deferred charges and other assets, net | 552 | 572 | ||||
Total assets | 41,548 | 40,679 | ||||
Current liabilities: | ||||||
Current portion of debt and finance lease obligations | 0 | 0 | ||||
Accounts payable | 0 | 14 | ||||
Accounts payable to affiliates | 11,223 | 9,847 | ||||
Accrued expenses | 155 | 155 | ||||
Accrued expenses to affiliates | 0 | |||||
Taxes other than income taxes payable | 0 | 0 | ||||
Income taxes payable | 83 | 53 | ||||
Total current liabilities | 11,461 | 10,069 | ||||
Debt and finance lease obligations, less current portion | 7,094 | 6,955 | ||||
Long-term notes payable to affiliates | 0 | |||||
Deferred income tax liabilities | 0 | 0 | ||||
Other long-term liabilities | 1,886 | 1,988 | ||||
Stockholders’ equity: | ||||||
Common stock | 7 | 7 | ||||
Additional paid-in capital | 6,818 | 7,048 | ||||
Treasury stock, at cost | (15,472) | (14,925) | ||||
Retained earnings | 31,283 | 31,044 | ||||
Partners’ equity | 0 | 0 | ||||
Accumulated other comprehensive loss | (1,529) | (1,507) | ||||
Total Valero Energy Corporation stockholders’ equity | 21,107 | 21,667 | ||||
Noncontrolling interests | 0 | 0 | ||||
Total equity | 21,107 | 21,667 | ||||
Total liabilities and equity | 41,548 | 40,679 | ||||
Valero Energy Partners LP [Member] | Reportable Legal Entities [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 0 | 152 | ||||
Receivables, net | 0 | 0 | ||||
Receivables from affiliates | 0 | 2 | ||||
Inventories | 0 | 0 | ||||
Prepaid expenses and other | 0 | 0 | ||||
Total current assets | 0 | 154 | ||||
Property, plant, and equipment, at cost | 0 | 0 | ||||
Accumulated depreciation | 0 | 0 | ||||
Property, plant, and equipment, net | 0 | 0 | ||||
Investment in affiliates | 2,566 | 2,267 | ||||
Long-term notes receivable from affiliates | 0 | |||||
Deferred charges and other assets, net | 0 | 1 | ||||
Total assets | 2,566 | 2,422 | ||||
Current liabilities: | ||||||
Current portion of debt and finance lease obligations | 0 | 0 | ||||
Accounts payable | 0 | 0 | ||||
Accounts payable to affiliates | 1,183 | 837 | ||||
Accrued expenses | 7 | 7 | ||||
Accrued expenses to affiliates | 1 | |||||
Taxes other than income taxes payable | 0 | 0 | ||||
Income taxes payable | 0 | 1 | ||||
Total current liabilities | 1,190 | 846 | ||||
Debt and finance lease obligations, less current portion | 991 | 990 | ||||
Long-term notes payable to affiliates | 285 | |||||
Deferred income tax liabilities | 2 | 2 | ||||
Other long-term liabilities | 0 | 0 | ||||
Stockholders’ equity: | ||||||
Common stock | 0 | 0 | ||||
Additional paid-in capital | 0 | 0 | ||||
Treasury stock, at cost | 0 | 0 | ||||
Retained earnings | 0 | 0 | ||||
Partners’ equity | 383 | 299 | ||||
Accumulated other comprehensive loss | 0 | 0 | ||||
Total Valero Energy Corporation stockholders’ equity | 383 | 299 | ||||
Noncontrolling interests | 0 | 0 | ||||
Total equity | 383 | 299 | ||||
Total liabilities and equity | 2,566 | 2,422 | ||||
Other Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 1,928 | 2,539 | ||||
Receivables, net | 7,994 | 7,345 | ||||
Receivables from affiliates | 12,406 | 10,684 | ||||
Inventories | 6,376 | 6,532 | ||||
Prepaid expenses and other | 462 | 355 | ||||
Total current assets | 29,166 | 27,455 | ||||
Property, plant, and equipment, at cost | 43,539 | 42,473 | ||||
Accumulated depreciation | (14,649) | (13,625) | ||||
Property, plant, and equipment, net | 28,890 | 28,848 | ||||
Investment in affiliates | 383 | (321) | ||||
Long-term notes receivable from affiliates | 0 | |||||
Deferred charges and other assets, net | 4,754 | 3,059 | ||||
Total assets | 63,193 | 59,041 | ||||
Current liabilities: | ||||||
Current portion of debt and finance lease obligations | 402 | 238 | ||||
Accounts payable | 9,504 | 8,580 | ||||
Accounts payable to affiliates | 4,396 | 4,370 | ||||
Accrued expenses | 719 | 468 | ||||
Accrued expenses to affiliates | 0 | |||||
Taxes other than income taxes payable | 1,175 | 1,213 | ||||
Income taxes payable | 85 | 0 | ||||
Total current liabilities | 16,281 | 14,869 | ||||
Debt and finance lease obligations, less current portion | 1,085 | 926 | ||||
Long-term notes payable to affiliates | 0 | |||||
Deferred income tax liabilities | 4,918 | 4,960 | ||||
Other long-term liabilities | 1,535 | 879 | ||||
Stockholders’ equity: | ||||||
Common stock | 1 | 1 | ||||
Additional paid-in capital | 9,765 | 9,754 | ||||
Treasury stock, at cost | 0 | 0 | ||||
Retained earnings | 30,286 | 28,305 | ||||
Partners’ equity | 0 | 0 | ||||
Accumulated other comprehensive loss | (1,159) | (1,097) | ||||
Total Valero Energy Corporation stockholders’ equity | 38,893 | 36,963 | ||||
Noncontrolling interests | 481 | 444 | ||||
Total equity | 39,374 | 37,407 | ||||
Total liabilities and equity | $ 63,193 | $ 59,041 |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Statements, Statement of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Condensed Income Statements, Captions [Line Items] | |||||
Revenues | [1] | $ 27,249 | $ 30,849 | $ 80,445 | $ 88,303 |
Cost of sales: | |||||
Cost of materials and other | 24,335 | 27,701 | 72,396 | 79,317 | |
Operating expenses (excluding depreciation and amortization expense reflected below) | 1,239 | 1,193 | 3,629 | 3,439 | |
Depreciation and amortization expense | 556 | 504 | 1,645 | 1,499 | |
Total cost of sales | 26,130 | 29,398 | 77,670 | 84,255 | |
Other operating expenses | 10 | 10 | 14 | 41 | |
General and administrative expenses (excluding depreciation and amortization expense reflected below) | 217 | 209 | 625 | 695 | |
Depreciation and amortization expense | 11 | 13 | 39 | 39 | |
Operating income (loss) | 881 | 1,219 | 2,097 | 3,273 | |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 | |
Other income, net | 34 | 42 | 68 | 88 | |
Interest and debt expense, net of capitalized interest | (111) | (111) | (335) | (356) | |
Income before income tax expense (benefit) | 804 | 1,150 | 1,830 | 3,005 | |
Income tax expense (benefit) | 165 | 276 | 376 | 674 | |
Net income | 639 | 874 | 1,454 | 2,331 | |
Less: Net income attributable to noncontrolling interests | 30 | 18 | 92 | 161 | |
Net income attributable to Valero Energy Corporation stockholders | 609 | 856 | 1,362 | 2,170 | |
Eliminations [Member] | |||||
Condensed Income Statements, Captions [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Cost of sales: | |||||
Cost of materials and other | 0 | 0 | 0 | 0 | |
Operating expenses (excluding depreciation and amortization expense reflected below) | 0 | 0 | 0 | 0 | |
Depreciation and amortization expense | 0 | 0 | 0 | 0 | |
Total cost of sales | 0 | 0 | 0 | 0 | |
Other operating expenses | 0 | 0 | 0 | 0 | |
General and administrative expenses (excluding depreciation and amortization expense reflected below) | 0 | 0 | 0 | 0 | |
Depreciation and amortization expense | 0 | 0 | 0 | 0 | |
Operating income (loss) | 0 | 0 | 0 | 0 | |
Equity in earnings of subsidiaries | (952) | (1,143) | (2,323) | (3,027) | |
Other income, net | (178) | (184) | (532) | (531) | |
Interest and debt expense, net of capitalized interest | 178 | 184 | 532 | 531 | |
Income before income tax expense (benefit) | (952) | (1,143) | (2,323) | (3,027) | |
Income tax expense (benefit) | 0 | 0 | 0 | 0 | |
Net income | (952) | (1,143) | (2,323) | (3,027) | |
Less: Net income attributable to noncontrolling interests | 0 | 17 | 2 | 48 | |
Net income attributable to Valero Energy Corporation stockholders | (952) | (1,160) | (2,325) | (3,075) | |
Valero Energy Corporation [Member] | Reportable Legal Entities [Member] | |||||
Condensed Income Statements, Captions [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Cost of sales: | |||||
Cost of materials and other | 0 | 0 | 0 | 0 | |
Operating expenses (excluding depreciation and amortization expense reflected below) | 0 | 0 | 0 | 0 | |
Depreciation and amortization expense | 0 | 0 | 0 | 0 | |
Total cost of sales | 0 | 0 | 0 | 0 | |
Other operating expenses | 0 | 0 | 0 | 0 | |
General and administrative expenses (excluding depreciation and amortization expense reflected below) | 2 | 3 | 3 | 4 | |
Depreciation and amortization expense | 0 | 0 | 0 | 0 | |
Operating income (loss) | (2) | (3) | (3) | (4) | |
Equity in earnings of subsidiaries | 740 | 1,005 | 1,763 | 2,634 | |
Other income, net | 54 | 65 | 138 | 163 | |
Interest and debt expense, net of capitalized interest | (230) | (230) | (693) | (681) | |
Income before income tax expense (benefit) | 562 | 837 | 1,205 | 2,112 | |
Income tax expense (benefit) | (47) | (19) | (157) | (58) | |
Net income | 609 | 856 | 1,362 | 2,170 | |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Net income attributable to Valero Energy Corporation stockholders | 609 | 856 | 1,362 | 2,170 | |
Valero Energy Partners LP [Member] | Reportable Legal Entities [Member] | |||||
Condensed Income Statements, Captions [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Cost of sales: | |||||
Cost of materials and other | 0 | 0 | 0 | 0 | |
Operating expenses (excluding depreciation and amortization expense reflected below) | 0 | 0 | 0 | 0 | |
Depreciation and amortization expense | 0 | 0 | 0 | 0 | |
Total cost of sales | 0 | 0 | 0 | 0 | |
Other operating expenses | 0 | 0 | 0 | 0 | |
General and administrative expenses (excluding depreciation and amortization expense reflected below) | 0 | 0 | 0 | 0 | |
Depreciation and amortization expense | 0 | 0 | 0 | 0 | |
Operating income (loss) | 0 | 0 | 0 | 0 | |
Equity in earnings of subsidiaries | 112 | 85 | 299 | 241 | |
Other income, net | 0 | 0 | 0 | 1 | |
Interest and debt expense, net of capitalized interest | (12) | (15) | (36) | (41) | |
Income before income tax expense (benefit) | 100 | 70 | 263 | 201 | |
Income tax expense (benefit) | 0 | 0 | 0 | 1 | |
Net income | 100 | 70 | 263 | 200 | |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Net income attributable to Valero Energy Corporation stockholders | 100 | 70 | 263 | 200 | |
Other Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | |||||
Condensed Income Statements, Captions [Line Items] | |||||
Revenues | 27,249 | 30,849 | 80,445 | 88,303 | |
Cost of sales: | |||||
Cost of materials and other | 24,335 | 27,701 | 72,396 | 79,317 | |
Operating expenses (excluding depreciation and amortization expense reflected below) | 1,239 | 1,193 | 3,629 | 3,439 | |
Depreciation and amortization expense | 556 | 504 | 1,645 | 1,499 | |
Total cost of sales | 26,130 | 29,398 | 77,670 | 84,255 | |
Other operating expenses | 10 | 10 | 14 | 41 | |
General and administrative expenses (excluding depreciation and amortization expense reflected below) | 215 | 206 | 622 | 691 | |
Depreciation and amortization expense | 11 | 13 | 39 | 39 | |
Operating income (loss) | 883 | 1,222 | 2,100 | 3,277 | |
Equity in earnings of subsidiaries | 100 | 53 | 261 | 152 | |
Other income, net | 158 | 161 | 462 | 455 | |
Interest and debt expense, net of capitalized interest | (47) | (50) | (138) | (165) | |
Income before income tax expense (benefit) | 1,094 | 1,386 | 2,685 | 3,719 | |
Income tax expense (benefit) | 212 | 295 | 533 | 731 | |
Net income | 882 | 1,091 | 2,152 | 2,988 | |
Less: Net income attributable to noncontrolling interests | 30 | 1 | 90 | 113 | |
Net income attributable to Valero Energy Corporation stockholders | $ 852 | $ 1,090 | $ 2,062 | $ 2,875 | |
[1] | Includes excise taxes on sales by certain of our international operations of $1,399 million and $1,338 million for the three months ended September 30, 2019 and 2018, respectively, and $4,139 million and $4,272 million for the nine months ended September 30, 2019 and 2018, respectively. |
Condensed Consolidating Finan_6
Condensed Consolidating Financial Statements, Statement of Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Statement of Income Captions [Line Items] | ||||
Net income | $ 639 | $ 874 | $ 1,454 | $ 2,331 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | (180) | 23 | (25) | (223) |
Net gain on pension and other postretirement benefits | 3 | 8 | 8 | 25 |
Net gain (loss) on cash flow hedges | (4) | 1 | ||
Other comprehensive income (loss) before income tax expense (benefit) | (181) | 31 | (16) | (198) |
Income tax expense (benefit) related to items of other comprehensive income (loss) | 0 | 1 | 2 | 5 |
Other comprehensive income (loss) | (181) | 30 | (18) | (203) |
Comprehensive income | 458 | 904 | 1,436 | 2,128 |
Less: Comprehensive income attributable to noncontrolling interests | 28 | 21 | 96 | 162 |
Comprehensive income attributable to Valero Energy Corporation stockholders | 430 | 883 | 1,340 | 1,966 |
Eliminations [Member] | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income | (952) | (1,143) | (2,323) | (3,027) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 163 | 1 | 62 | 191 |
Net gain on pension and other postretirement benefits | 0 | 0 | 0 | (1) |
Net gain (loss) on cash flow hedges | 2 | 0 | ||
Other comprehensive income (loss) before income tax expense (benefit) | 165 | 1 | 62 | 190 |
Income tax expense (benefit) related to items of other comprehensive income (loss) | 1 | 0 | 0 | 0 |
Other comprehensive income (loss) | 164 | 1 | 62 | 190 |
Comprehensive income | (788) | (1,142) | (2,261) | (2,837) |
Less: Comprehensive income attributable to noncontrolling interests | 0 | 17 | 2 | 48 |
Comprehensive income attributable to Valero Energy Corporation stockholders | (788) | (1,159) | (2,263) | (2,885) |
Valero Energy Corporation [Member] | Reportable Legal Entities [Member] | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income | 609 | 856 | 1,362 | 2,170 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | (180) | 20 | (28) | (224) |
Net gain on pension and other postretirement benefits | 3 | 8 | 8 | 25 |
Net gain (loss) on cash flow hedges | (2) | 0 | ||
Other comprehensive income (loss) before income tax expense (benefit) | (179) | 28 | (20) | (199) |
Income tax expense (benefit) related to items of other comprehensive income (loss) | 0 | 1 | 2 | 5 |
Other comprehensive income (loss) | (179) | 27 | (22) | (204) |
Comprehensive income | 430 | 883 | 1,340 | 1,966 |
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Valero Energy Corporation stockholders | 430 | 883 | 1,340 | 1,966 |
Valero Energy Partners LP [Member] | Reportable Legal Entities [Member] | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income | 100 | 70 | 263 | 200 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 0 | 0 | 0 | 0 |
Net gain on pension and other postretirement benefits | 0 | 0 | 0 | 0 |
Net gain (loss) on cash flow hedges | 0 | 0 | ||
Other comprehensive income (loss) before income tax expense (benefit) | 0 | 0 | 0 | 0 |
Income tax expense (benefit) related to items of other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Comprehensive income | 100 | 70 | 263 | 200 |
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Valero Energy Corporation stockholders | 100 | 70 | 263 | 200 |
Other Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Condensed Statement of Income Captions [Line Items] | ||||
Net income | 882 | 1,091 | 2,152 | 2,988 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | (163) | 2 | (59) | (190) |
Net gain on pension and other postretirement benefits | 0 | 0 | 0 | 1 |
Net gain (loss) on cash flow hedges | (4) | 1 | ||
Other comprehensive income (loss) before income tax expense (benefit) | (167) | 2 | (58) | (189) |
Income tax expense (benefit) related to items of other comprehensive income (loss) | (1) | 0 | 0 | 0 |
Other comprehensive income (loss) | (166) | 2 | (58) | (189) |
Comprehensive income | 716 | 1,093 | 2,094 | 2,799 |
Less: Comprehensive income attributable to noncontrolling interests | 28 | 4 | 94 | 114 |
Comprehensive income attributable to Valero Energy Corporation stockholders | $ 688 | $ 1,089 | $ 2,000 | $ 2,685 |
Condensed Consolidating Finan_7
Condensed Consolidating Financial Statements, Statement of Cash Flows (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | $ 3,823 | $ 2,693 |
Cash flows from investing activities: | ||
Capital expenditures (excluding VIEs) | (1,179) | (1,025) |
Deferred turnaround and catalyst cost expenditures (excluding VIEs) | (583) | (641) |
Investments in unconsolidated joint ventures | (122) | (124) |
Peru Acquisition, net of cash acquired | 0 | (466) |
Acquisitions of undivided interests | (65) | (181) |
Intercompany investing activities | 0 | 0 |
Other investing activities, net | 5 | 9 |
Net cash provided by (used in) investing activities | (2,190) | (2,768) |
Cash flows from financing activities: | ||
Proceeds from debt issuances and borrowings (excluding VIEs) | 1,892 | 1,258 |
Proceeds from borrowings of VIEs | 148 | 71 |
Repayments of debt and finance lease obligations (excluding VIEs) | (1,796) | (1,348) |
Repayments of debt of VIEs | (4) | (4) |
Intercompany financing activities | 0 | 0 |
Purchases of common stock for treasury | (555) | (1,081) |
Common stock dividends | (1,123) | (1,031) |
Acquisition of Valero Energy Partners LP publicly held common units | (950) | 0 |
Contributions from noncontrolling interests | 0 | 32 |
Distributions to noncontrolling interests and unitholders of VLP | (57) | (63) |
Other financing activities, net | (29) | (15) |
Net cash used in financing activities | (2,474) | (2,181) |
Effect of foreign exchange rate changes on cash | (4) | (43) |
Net increase (decrease) in cash and cash equivalents | (845) | (2,299) |
Cash and cash equivalents at beginning of period | 2,982 | 5,850 |
Cash and cash equivalents at end of period | 2,137 | 3,551 |
Minor Acquisitions [Member] | ||
Cash flows from investing activities: | ||
Minor acquisitions | 0 | (88) |
DGD [Member] | ||
Cash flows from investing activities: | ||
Capital expenditures of VIEs | (91) | (143) |
Deferred turnaround and catalyst cost expenditures of DGD | (16) | (20) |
Other VIEs [Member] | ||
Cash flows from investing activities: | ||
Capital expenditures of VIEs | (139) | (89) |
Eliminations [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | (360) | (155) |
Cash flows from investing activities: | ||
Capital expenditures (excluding VIEs) | 0 | 0 |
Deferred turnaround and catalyst cost expenditures (excluding VIEs) | 0 | 0 |
Investments in unconsolidated joint ventures | 0 | 0 |
Peru Acquisition, net of cash acquired | 0 | |
Acquisitions of undivided interests | 0 | 0 |
Intercompany investing activities | 1,242 | 543 |
Other investing activities, net | 0 | 0 |
Net cash provided by (used in) investing activities | 1,242 | 543 |
Cash flows from financing activities: | ||
Proceeds from debt issuances and borrowings (excluding VIEs) | 0 | 0 |
Proceeds from borrowings of VIEs | 0 | 0 |
Repayments of debt and finance lease obligations (excluding VIEs) | 0 | 0 |
Repayments of debt of VIEs | 0 | 0 |
Intercompany financing activities | (1,242) | (543) |
Purchases of common stock for treasury | 0 | 0 |
Common stock dividends | 81 | 32 |
Acquisition of Valero Energy Partners LP publicly held common units | 0 | |
Contributions from noncontrolling interests | 0 | |
Distributions to noncontrolling interests and unitholders of VLP | 279 | 123 |
Other financing activities, net | 0 | 0 |
Net cash used in financing activities | (882) | (388) |
Effect of foreign exchange rate changes on cash | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Eliminations [Member] | Minor Acquisitions [Member] | ||
Cash flows from investing activities: | ||
Minor acquisitions | 0 | |
Eliminations [Member] | DGD [Member] | ||
Cash flows from investing activities: | ||
Capital expenditures of VIEs | 0 | 0 |
Deferred turnaround and catalyst cost expenditures of DGD | 0 | 0 |
Eliminations [Member] | Other VIEs [Member] | ||
Cash flows from investing activities: | ||
Capital expenditures of VIEs | 0 | 0 |
Valero Energy Corporation [Member] | Reportable Legal Entities [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 15 | (824) |
Cash flows from investing activities: | ||
Capital expenditures (excluding VIEs) | 0 | 0 |
Deferred turnaround and catalyst cost expenditures (excluding VIEs) | 0 | 0 |
Investments in unconsolidated joint ventures | 0 | 0 |
Peru Acquisition, net of cash acquired | 0 | |
Acquisitions of undivided interests | 0 | 0 |
Intercompany investing activities | 289 | 590 |
Other investing activities, net | 0 | 0 |
Net cash provided by (used in) investing activities | 289 | 590 |
Cash flows from financing activities: | ||
Proceeds from debt issuances and borrowings (excluding VIEs) | 992 | 750 |
Proceeds from borrowings of VIEs | 0 | 0 |
Repayments of debt and finance lease obligations (excluding VIEs) | (871) | (787) |
Repayments of debt of VIEs | 0 | 0 |
Intercompany financing activities | 1,187 | 1,435 |
Purchases of common stock for treasury | (555) | (1,081) |
Common stock dividends | (1,123) | (1,031) |
Acquisition of Valero Energy Partners LP publicly held common units | 0 | |
Contributions from noncontrolling interests | 0 | |
Distributions to noncontrolling interests and unitholders of VLP | 0 | 0 |
Other financing activities, net | (16) | 2 |
Net cash used in financing activities | (386) | (712) |
Effect of foreign exchange rate changes on cash | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | (82) | (946) |
Cash and cash equivalents at beginning of period | 291 | 1,746 |
Cash and cash equivalents at end of period | 209 | 800 |
Valero Energy Corporation [Member] | Reportable Legal Entities [Member] | Minor Acquisitions [Member] | ||
Cash flows from investing activities: | ||
Minor acquisitions | 0 | |
Valero Energy Corporation [Member] | Reportable Legal Entities [Member] | DGD [Member] | ||
Cash flows from investing activities: | ||
Capital expenditures of VIEs | 0 | 0 |
Deferred turnaround and catalyst cost expenditures of DGD | 0 | 0 |
Valero Energy Corporation [Member] | Reportable Legal Entities [Member] | Other VIEs [Member] | ||
Cash flows from investing activities: | ||
Capital expenditures of VIEs | 0 | 0 |
Valero Energy Partners LP [Member] | Reportable Legal Entities [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | (35) | (37) |
Cash flows from investing activities: | ||
Capital expenditures (excluding VIEs) | 0 | 0 |
Deferred turnaround and catalyst cost expenditures (excluding VIEs) | 0 | 0 |
Investments in unconsolidated joint ventures | 0 | 0 |
Peru Acquisition, net of cash acquired | 0 | |
Acquisitions of undivided interests | 0 | 0 |
Intercompany investing activities | 2 | 292 |
Other investing activities, net | 0 | 0 |
Net cash provided by (used in) investing activities | 2 | 292 |
Cash flows from financing activities: | ||
Proceeds from debt issuances and borrowings (excluding VIEs) | 0 | 498 |
Proceeds from borrowings of VIEs | 0 | 0 |
Repayments of debt and finance lease obligations (excluding VIEs) | 0 | (410) |
Repayments of debt of VIEs | 0 | 0 |
Intercompany financing activities | 160 | (94) |
Purchases of common stock for treasury | 0 | 0 |
Common stock dividends | 0 | 0 |
Acquisition of Valero Energy Partners LP publicly held common units | 0 | |
Contributions from noncontrolling interests | 0 | |
Distributions to noncontrolling interests and unitholders of VLP | (279) | (159) |
Other financing activities, net | 0 | (4) |
Net cash used in financing activities | (119) | (169) |
Effect of foreign exchange rate changes on cash | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | (152) | 86 |
Cash and cash equivalents at beginning of period | 152 | 42 |
Cash and cash equivalents at end of period | 0 | 128 |
Valero Energy Partners LP [Member] | Reportable Legal Entities [Member] | Minor Acquisitions [Member] | ||
Cash flows from investing activities: | ||
Minor acquisitions | 0 | |
Valero Energy Partners LP [Member] | Reportable Legal Entities [Member] | DGD [Member] | ||
Cash flows from investing activities: | ||
Capital expenditures of VIEs | 0 | 0 |
Deferred turnaround and catalyst cost expenditures of DGD | 0 | 0 |
Valero Energy Partners LP [Member] | Reportable Legal Entities [Member] | Other VIEs [Member] | ||
Cash flows from investing activities: | ||
Capital expenditures of VIEs | 0 | 0 |
Other Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 4,203 | 3,709 |
Cash flows from investing activities: | ||
Capital expenditures (excluding VIEs) | (1,179) | (1,025) |
Deferred turnaround and catalyst cost expenditures (excluding VIEs) | (583) | (641) |
Investments in unconsolidated joint ventures | (122) | (124) |
Peru Acquisition, net of cash acquired | (466) | |
Acquisitions of undivided interests | (65) | (181) |
Intercompany investing activities | (1,533) | (1,425) |
Other investing activities, net | 5 | 9 |
Net cash provided by (used in) investing activities | (3,723) | (4,193) |
Cash flows from financing activities: | ||
Proceeds from debt issuances and borrowings (excluding VIEs) | 900 | 10 |
Proceeds from borrowings of VIEs | 148 | 71 |
Repayments of debt and finance lease obligations (excluding VIEs) | (925) | (151) |
Repayments of debt of VIEs | (4) | (4) |
Intercompany financing activities | (105) | (798) |
Purchases of common stock for treasury | 0 | 0 |
Common stock dividends | (81) | (32) |
Acquisition of Valero Energy Partners LP publicly held common units | (950) | |
Contributions from noncontrolling interests | 32 | |
Distributions to noncontrolling interests and unitholders of VLP | (57) | (27) |
Other financing activities, net | (13) | (13) |
Net cash used in financing activities | (1,087) | (912) |
Effect of foreign exchange rate changes on cash | (4) | (43) |
Net increase (decrease) in cash and cash equivalents | (611) | (1,439) |
Cash and cash equivalents at beginning of period | 2,539 | 4,062 |
Cash and cash equivalents at end of period | 1,928 | 2,623 |
Other Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | Minor Acquisitions [Member] | ||
Cash flows from investing activities: | ||
Minor acquisitions | (88) | |
Other Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | DGD [Member] | ||
Cash flows from investing activities: | ||
Capital expenditures of VIEs | (91) | (143) |
Deferred turnaround and catalyst cost expenditures of DGD | (16) | (20) |
Other Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | Other VIEs [Member] | ||
Cash flows from investing activities: | ||
Capital expenditures of VIEs | $ (139) | $ (89) |