Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 22, 2021 | |
Cover [Abstract] | ||
Document type | 10-Q | |
Document quarterly report | true | |
Document period end date | Sep. 30, 2021 | |
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 | 408,835,615 | |
Entity central index key | 0001035002 | |
Amendment flag | false | |
Document fiscal year focus | 2021 | |
Document fiscal period focus | Q3 | |
Current fiscal year end date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 3,498 | $ 3,313 |
Receivables, net | 8,627 | 6,109 |
Inventories | 6,227 | 6,038 |
Prepaid expenses and other | 438 | 384 |
Total current assets | 18,790 | 15,844 |
Property, plant, and equipment, at cost | 48,235 | 46,967 |
Accumulated depreciation | (17,795) | (16,578) |
Property, plant, and equipment, net | 30,440 | 30,389 |
Deferred charges and other assets, net | 5,461 | 5,541 |
Total assets | 54,691 | 51,774 |
Current liabilities: | ||
Current portion of debt and finance lease obligations | 1,162 | 723 |
Accounts payable | 9,820 | 6,082 |
Accrued expenses | 1,539 | 994 |
Taxes other than income taxes payable | 1,548 | 1,372 |
Income taxes payable | 244 | 112 |
Total current liabilities | 14,313 | 9,283 |
Debt and finance lease obligations, less current portion | 13,071 | 13,954 |
Deferred income tax liabilities | 5,110 | 5,275 |
Other long-term liabilities | 3,608 | 3,620 |
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 | 6,830 | 6,814 |
Treasury stock, at cost; 264,680,113 and 265,096,171 common shares | (15,696) | (15,719) |
Retained earnings | 27,673 | 28,953 |
Accumulated other comprehensive loss | (1,338) | (1,254) |
Total Valero Energy Corporation stockholders’ equity | 17,476 | 18,801 |
Noncontrolling interests | 1,113 | 841 |
Total equity | 18,589 | 19,642 |
Total liabilities and equity | $ 54,691 | $ 51,774 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
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 | 264,680,113 | 265,096,171 |
Consolidated Statements of Inco
Consolidated Statements of Income (unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Revenues | [1] | $ 29,520 | $ 15,809 | $ 78,074 | $ 48,308 |
Cost of sales: | |||||
Cost of materials and other | 26,624 | 14,801 | 70,865 | 43,832 | |
Lower of cost or market (LCM) inventory valuation adjustment | 0 | (313) | 0 | (19) | |
Operating expenses (excluding depreciation and amortization expense reflected below) | 1,348 | 1,117 | 4,218 | 3,268 | |
Depreciation and amortization expense | 630 | 602 | 1,772 | 1,737 | |
Total cost of sales | 28,602 | 16,207 | 76,855 | 48,818 | |
Other operating expenses | 19 | 25 | 69 | 30 | |
General and administrative expenses (excluding depreciation and amortization expense reflected below) | 195 | 186 | 579 | 532 | |
Depreciation and amortization expense | 11 | 12 | 35 | 37 | |
Operating income (loss) | 693 | (621) | 536 | (1,109) | |
Other income, net | 32 | 48 | 179 | 107 | |
Interest and debt expense, net of capitalized interest | (152) | (143) | (451) | (410) | |
Income (loss) before income tax expense (benefit) | 573 | (716) | 264 | (1,412) | |
Income tax expense (benefit) | 65 | (337) | 86 | (614) | |
Net income (loss) | 508 | (379) | 178 | (798) | |
Less: Net income attributable to noncontrolling interests | 45 | 85 | 257 | 264 | |
Net income (loss) attributable to Valero Energy Corporation stockholders | $ 463 | $ (464) | $ (79) | $ (1,062) | |
Earnings (loss) per common share (in dollars per share) | $ 1.13 | $ (1.14) | $ (0.20) | $ (2.62) | |
Weighted-average common shares outstanding (in shares) | 407 | 407 | 407 | 407 | |
Earnings (loss) per common share – assuming dilution (in dollars per share) | $ 1.13 | $ (1.14) | $ (0.20) | $ (2.62) | |
Weighted-average common shares outstanding – assuming dilution (in shares) | 408 | 407 | 407 | 407 | |
Supplemental information: | |||||
Includes excise taxes on sales by certain of our international operations | $ 1,610 | $ 1,339 | $ 4,152 | $ 3,491 | |
[1] | Includes excise taxes on sales by certain of our international operations of $1,610 million and $1,339 million for the three months ended September 30, 2021 and 2020, respectively, and $4,152 million and $3,491 million for the nine months ended September 30, 2021 and 2020, respectively. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net income (loss) | $ 508 | $ (379) | $ 178 | $ (798) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | (259) | 217 | (114) | (252) |
Net gain on pension and other postretirement benefits | 16 | 12 | 44 | 36 |
Net gain (loss) on cash flow hedges | (17) | 5 | (14) | 9 |
Other comprehensive income (loss) before income tax expense (benefit) | (260) | 234 | (84) | (207) |
Income tax expense (benefit) related to items of other comprehensive income (loss) | (1) | 4 | 8 | 9 |
Other comprehensive income (loss) | (259) | 230 | (92) | (216) |
Comprehensive income (loss) | 249 | (149) | 86 | (1,014) |
Less: Comprehensive income attributable to noncontrolling interests | 35 | 87 | 249 | 268 |
Comprehensive income (loss) attributable to Valero Energy Corporation stockholders | $ 214 | $ (236) | $ (163) | $ (1,282) |
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, 2019 | $ 22,536 | $ 21,803 | $ 7 | $ 6,821 | $ (15,648) | $ 31,974 | $ (1,351) | $ 733 |
Increase (Decrease) in Stockholders' Equity Roll Forward | ||||||||
Net income (loss) | (798) | (1,062) | (1,062) | 264 | ||||
Dividends on common stock | (1,200) | (1,200) | (1,200) | |||||
Stock-based compensation expense | 48 | 48 | 48 | |||||
Transactions in connection with stock-based compensation plans | (16) | (16) | (35) | 19 | ||||
Open market stock purchases | (130) | (130) | (130) | |||||
Distributions to noncontrolling interests | (208) | (208) | ||||||
Other comprehensive income (loss) | (216) | (220) | (220) | 4 | ||||
Balance as of end of period at Sep. 30, 2020 | 20,016 | 19,223 | 7 | 6,834 | (15,759) | 29,712 | (1,571) | 793 |
Balance as of beginning of period at Jun. 30, 2020 | 20,634 | 19,847 | 7 | 6,824 | (15,760) | 30,575 | (1,799) | 787 |
Increase (Decrease) in Stockholders' Equity Roll Forward | ||||||||
Net income (loss) | (379) | (464) | (464) | 85 | ||||
Dividends on common stock | (399) | (399) | (399) | |||||
Stock-based compensation expense | 12 | 12 | 12 | |||||
Transactions in connection with stock-based compensation plans | (1) | (1) | (2) | 1 | ||||
Distributions to noncontrolling interests | (81) | (81) | ||||||
Other comprehensive income (loss) | 230 | 228 | 228 | 2 | ||||
Balance as of end of period at Sep. 30, 2020 | 20,016 | 19,223 | 7 | 6,834 | (15,759) | 29,712 | (1,571) | 793 |
Balance as of beginning of period at Dec. 31, 2020 | 19,642 | 18,801 | 7 | 6,814 | (15,719) | 28,953 | (1,254) | 841 |
Increase (Decrease) in Stockholders' Equity Roll Forward | ||||||||
Net income (loss) | 178 | (79) | (79) | 257 | ||||
Dividends on common stock | (1,201) | (1,201) | (1,201) | |||||
Stock-based compensation expense | 52 | 52 | 52 | |||||
Transactions in connection with stock-based compensation plans | (13) | (13) | (36) | 23 | ||||
Contributions from noncontrolling interests | 25 | 25 | ||||||
Distributions to noncontrolling interests | (2) | (2) | ||||||
Other comprehensive income (loss) | (92) | (84) | (84) | (8) | ||||
Balance as of end of period at Sep. 30, 2021 | 18,589 | 17,476 | 7 | 6,830 | (15,696) | 27,673 | (1,338) | 1,113 |
Balance as of beginning of period at Jun. 30, 2021 | 18,704 | 17,651 | 7 | 6,819 | (15,696) | 27,610 | (1,089) | 1,053 |
Increase (Decrease) in Stockholders' Equity Roll Forward | ||||||||
Net income (loss) | 508 | 463 | 463 | 45 | ||||
Dividends on common stock | (400) | (400) | (400) | |||||
Stock-based compensation expense | 11 | 11 | 11 | |||||
Contributions from noncontrolling interests | 25 | 25 | ||||||
Other comprehensive income (loss) | (259) | (249) | (249) | (10) | ||||
Balance as of end of period at Sep. 30, 2021 | $ 18,589 | $ 17,476 | $ 7 | $ 6,830 | $ (15,696) | $ 27,673 | $ (1,338) | $ 1,113 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Common stock dividends: | ||||
Dividends on common stock (in dollars per share) | $ 0.98 | $ 0.98 | $ 2.94 | $ 2.94 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 178 | $ (798) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization expense | 1,807 | 1,774 |
LCM inventory valuation adjustment | 0 | (19) |
Gain on sale of partial interest in MVP Terminalling, LLC (MVP) | (62) | 0 |
Deferred income tax expense (benefit) | (150) | 177 |
Changes in current assets and current liabilities | 1,630 | (232) |
Changes in deferred charges and credits and other operating activities, net | 2 | (50) |
Net cash provided by operating activities | 3,405 | 852 |
Cash flows from investing activities: | ||
Proceeds from sale of partial interest in MVP | 270 | 0 |
Investments in unconsolidated joint ventures | (8) | (39) |
Other investing activities, net | 33 | 16 |
Net cash used in investing activities | (1,412) | (1,852) |
Cash flows from financing activities: | ||
Purchases of common stock for treasury | (15) | (147) |
Common stock dividend payments | (1,201) | (1,200) |
Contributions from noncontrolling interests | 25 | 0 |
Distributions to noncontrolling interests | (2) | (208) |
Other financing activities, net | 1 | (32) |
Net cash provided by (used in) financing activities | (1,739) | 2,470 |
Effect of foreign exchange rate changes on cash | (69) | (6) |
Net increase in cash and cash equivalents | 185 | 1,464 |
Cash and cash equivalents at beginning of period | 3,313 | 2,583 |
Cash and cash equivalents at end of period | 3,498 | 4,047 |
Excluding Variable Interest Entities (VIEs) [Member] | ||
Cash flows from investing activities: | ||
Capital expenditures | (368) | (775) |
Deferred turnaround and catalyst cost expenditures | (544) | (529) |
Cash flows from financing activities: | ||
Proceeds from debt issuances and borrowings | 0 | 4,320 |
Repayments of debt and finance lease obligations | (672) | (461) |
Variable Interest Entities (VIEs) [Member] | ||
Cash flows from financing activities: | ||
Repayments of debt and finance lease obligations | (4) | (4) |
Diamond Green Diesel Holdings LLC (DGD) [Member] | ||
Cash flows from investing activities: | ||
Capital expenditures | (730) | (311) |
Deferred turnaround and catalyst cost expenditures | (6) | (18) |
Cash flows from financing activities: | ||
Proceeds from debt issuances and borrowings | 100 | 0 |
Other VIEs [Member] | ||
Cash flows from investing activities: | ||
Capital expenditures | (59) | (196) |
Cash flows from financing activities: | ||
Proceeds from debt issuances and borrowings | $ 29 | $ 202 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
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. The term “DGD,” as used in this report, may refer to Diamond Green Diesel Holdings LLC, its wholly owned consolidated subsidiary — Diamond Green Diesel LLC, or both 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 of our results for the nine months ended September 30, 2021 have been included. All such adjustments are of a normal recurring nature unless disclosed otherwise. Operating results for the nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The financial statements presented herein should be read in conjunction with the financial statements included in our annual report on Form 10-K for the year ended December 31, 2020. The balance sheet as of December 31, 2020 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, 2020. 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. Adoption of Accounting Pronouncement The following Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) was issued and adopted by us on January 7, 2021. Our adoption of this ASU did not have a material impact on our financial statements or related disclosures. ASU Basis of 2021-01 Reference Rate Reform (Topic 848): Scope Prospectively |
Uncertainties
Uncertainties | 9 Months Ended |
Sep. 30, 2021 | |
Unusual or Infrequent Items, or Both [Abstract] | |
UNCERTAINTIES | 2. UNCERTAINTIES At the onset of the COVID-19 pandemic in March 2020, governmental authorities around the world imposed restrictions, such as stay-at-home orders and other social distancing measures, to slow the spread of COVID-19. These measures resulted in significant economic disruption globally as reduced economic activity negatively impacted many businesses, including our business. We experienced a decline in the demand for most of the transportation fuels that we produce and sell, and thus also a decline in the market prices of those products, due to a decrease in the level of individual movement and travel resulting from the restrictions and general public health concerns. Some governmental authorities began lifting restrictions in the latter part of 2020 and this has continued throughout the first nine months of 2021. These actions have contributed to increasing levels of individual movement and travel and a resulting increase in the demand for and market prices of our products. However, some governmental authorities continue to impose some level of restrictions due in part to new outbreaks, including those related to new variants of the COVID-19 virus. The distribution of vaccines beginning in late 2020 has helped decrease rates of infection and contributed to the lifting of many restrictions. The ongoing distribution of vaccines may result in the continued lifting of restrictions globally and may be seen as a key factor contributing to the ongoing restoration of public confidence, and thus also to stimulating and increasing global economic activity. However, the risk remains that vaccines may not be distributed widely on a timely basis, they may not be as effective against new variants of the virus, the distribution of some or all of the vaccines may be paused or withdrawn due to concerns with potential side effects, and/or the level of individuals’ willingness to receive a vaccine may not be as strong or as timely as needed. Additionally, many governmental authorities have recently announced requirements and mandates, including steep fines for non-compliance, on employers concerning workforce vaccination and testing. Many large companies across the globe, independent of such government regulations, have also begun implementing vaccine requirements and mandates for their workforce, or as a prerequisite to providing customers certain goods and services in person. These requirements and mandates have evoked mixed reactions and have created additional challenges and costs, both administratively and operationally, for employers and employees. Developments with respect to such requirements and mandates are evolving at a rapid pace and the ultimate impact thereof remains uncertain. Based on these and other circumstances that cannot be predicted, the broader implications of the pandemic on our results of operations and financial position remain uncertain and may continue to be significant. We believe we have proactively responded to many of the known impacts of the pandemic on our business to the extent practicable and we strive to continue to do so, but there can be no assurance that these or other measures will be fully effective. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 3. INVENTORIES Inventories consisted of the following (in millions): September 30, December 31, Refinery feedstocks $ 1,646 $ 1,979 Refined petroleum products and blendstocks 3,944 3,425 Renewable diesel feedstocks and products 113 50 Ethanol feedstocks and products 233 297 Materials and supplies 291 287 Inventories $ 6,227 $ 6,038 We compare the market value of inventories to their cost on an aggregate basis, excluding materials and supplies. In determining the market value of our inventories, we assume that feedstocks are converted into refined products, which requires us to make estimates regarding the refined products expected to be produced from those feedstocks and the conversion costs required to convert those feedstocks into refined products. We also estimate the usual and customary transportation costs required to move the inventory from our plants to the appropriate points of sale. We then apply an estimated selling price to our inventories. If the aggregate market value is less than the aggregate cost, we recognize a loss for the difference in our statements of income. To the extent the aggregate market value of our last-in, first-out (LIFO) inventories subsequently increases, we recognize an increase to the value of our inventories (not to exceed cost) and a gain in our statements of income. The market value of our LIFO inventories fell below their LIFO inventory carrying amounts as of March 31, 2020, and as a result, we recorded an LCM inventory valuation reserve of $2.5 billion in order to state our inventories at market. As of September 30, 2020, we reevaluated our inventories and determined that our cost was lower than market. As a result, our LCM inventory valuation reserve was fully reversed as of September 30, 2020. The change in our LCM inventory valuation reserve resulted in a net benefit of $313 million during the three months ended September 30, 2020. The net benefit of $19 million for the nine months ended September 30, 2020 was due to the foreign currency translation effect of the portion of the LCM inventory valuation adjustment attributable to our international operations. As of September 30, 2021 and December 31, 2020, the replacement cost (market value) of LIFO inventories exceeded their LIFO carrying amounts by $5.2 billion and $1.3 billion, respectively. During the three and nine months ended September 30, 2020, we recognized the impact of an expected liquidation of LIFO inventory layers that increased cost of materials and other by $326 million. Our LIFO inventory levels decreased throughout the first nine months of 2020 due to lower production resulting from lower demand for our products caused by the negative economic impacts of the COVID-19 pandemic on our business. Consequently, we expected our LIFO inventory levels as of December 31, 2020 would remain below their December 31, 2019 levels. Our non-LIFO inventories accounted for $1.2 billion and $918 million of our total inventories as of September 30, 2021 and December 31, 2020, respectively. |
Property, Plant, and Equipment
Property, Plant, and Equipment | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT, AND EQUIPMENT | 4. PROPERTY, PLANT, AND EQUIPMENT In September 2021 and 2020, we reduced the estimated useful lives of our ethanol plants in Jefferson, Wisconsin and Riga, Michigan, respectively, which reduced their net book values to estimated salvage value. The additional depreciation expense for the three and nine months ended September 30, 2021 and 2020 of $48 million and $30 million, respectively, resulting from these changes did not have a material impact on our results of operations nor was there a material impact to our financial position. The Jefferson plant was temporarily idled in 2020 at the onset of the COVID-19 pandemic in response to the decreased demand for ethanol resulting from the effects of the pandemic on our business, and we had previously evaluated this plant for potential impairment assuming that operations would resume. However, we completed an evaluation of the plant during the third quarter of 2021 and concluded that it was no longer a strategic asset for our ethanol business. As a result, the plant’s operations have permanently ceased. The Riga plant was temporarily idled in 2019 due to corn quality issues with the local third-party corn feedstock supply. Although we expected operations to resume after an improved corn harvest, we completed an evaluation of this plant during the third quarter of 2020 and concluded that it was no longer a strategic asset for our ethanol business. The plant’s operations permanently ceased at that time. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | 5. DEBT Public Debt In September 2021, we redeemed our Floating Rate Senior Notes due September 15, 2023 (the Floating Rate Notes) for $575 million, or 100.00 percent of stated value, plus accrued and unpaid interest. During the nine months ended September 30, 2020, the following activity occurred: • In September 2020, we issued the following senior notes: ◦ the Floating Rate Notes, which bore interest at a rate of three-month London Interbank Offered Rate (LIBOR) plus 1.150 percent per annum, subject to certain adjustments set forth in the terms of the Floating Rate Notes; ◦ $925 million of 1.200 percent Senior Notes due March 15, 2024; ◦ $400 million of 2.850 percent Senior Notes due April 15, 2025 that constitute an additional issuance of our 2.850 percent Senior Notes due April 15, 2025 that were issued in April 2020 (see below); and ◦ $600 million of 2.150 percent Senior Notes due September 15, 2027. • In April 2020, we issued $850 million of 2.700 percent Senior Notes due April 15, 2023 and $650 million of 2.850 percent Senior Notes due April 15, 2025. Proceeds from the April and September 2020 debt issuances totaled $4.020 billion before deducting the underwriting discount and other debt issuance costs. 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, 2021 Facility Maturity Date Outstanding Letters of Credit Availability Committed facilities: Valero Revolver $ 4,000 March 2024 $ — $ 288 $ 3,712 Canadian Revolver C$ 150 November 2021 C$ — C$ 5 C$ 145 Accounts receivable sales facility (b) $ 1,300 July 2022 $ — n/a $ 1,300 Letter of credit facility $ 50 November 2021 n/a $ — $ 50 Committed facilities of VIEs (c): DGD Revolver $ 400 March 2024 $ 100 $ 7 $ 293 IEnova Revolver $ 743 February 2028 $ 627 n/a $ 116 Uncommitted facilities: Letter of credit facilities n/a n/a n/a $ 127 n/a ________________________ (a) Letters of credit issued as of September 30, 2021 expire at various times in 2021 through 2023. (b) In July 2021, we extended the maturity date of this facility to July 2022 and increased the facility amount from $1.0 billion to $1.3 billion. (c) Creditors of our VIEs do not have recourse against us. Activity under our credit facilities was as follows (in millions): Nine Months Ended 2021 2020 Borrowings: Accounts receivable sales facility $ — $ 300 DGD Revolver 100 — IEnova Revolver 29 202 Repayments: Accounts receivable sales facility — (400) DGD Revolver In March 2021, DGD (as described in Note 7) entered into a $400 million unsecured revolving credit facility (the DGD Revolver) that matures in March 2024. DGD has the option to increase the aggregate commitments under the DGD Revolver to $550 million, subject to certain restrictions. Initially, the DGD Revolver also provided for the issuance of letters of credit of up to $10 million. In September 2021, the DGD Revolver was amended to increase the letter of credit facility from $10 million to $50 million and to limit DGD’s indebtedness arising under other letters of credit that DGD may obtain up to $25 million at any one time outstanding. This restriction does not impact Valero’s other letter of credit facilities. The DGD Revolver is only available to the operations of DGD. DGD’s lender does not have recourse against us. Outstanding borrowings under the DGD Revolver generally bear interest, at DGD’s option, at either (i) an alternate base rate plus the applicable margin or (ii) an adjusted LIBOR rate for the applicable interest period in effect from time to time plus the applicable margin. The DGD Revolver also requires payments for customary fees, including unused commitment fees, letter of credit fees, and administrative agent fees. As of September 30, 2021, the variable interest rate on the DGD Revolver was 1.840 percent. IEnova Revolver In May 2021, the borrowing capacity under the IEnova Revolver was increased from $660 million to $743 million. As of September 30, 2021 and December 31, 2020, the variable weighted-average interest rate on the IEnova Revolver was 3.497 percent and 3.870 percent, respectively. The IEnova Revolver is available only to the operations of Central Mexico Terminals (as described in Note 7). IEnova does not have recourse against us. Other Disclosures “Interest and debt expense, net of capitalized interest” is comprised as follows (in millions): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Interest and debt expense $ 162 $ 162 $ 488 $ 468 Less: Capitalized interest 10 19 37 58 Interest and debt expense, net of capitalized interest $ 152 $ 143 $ 451 $ 410 |
Equity
Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
EQUITY | 6. EQUITY Share Activity There was no significant share activity during the nine months ended September 30, 2021 and 2020. Common Stock Dividends On October 27, 2021, our board of directors declared a quarterly cash dividend of $0.98 per common share payable on December 9, 2021 to holders of record at the close of business on November 18, 2021. 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, 2021 2020 Foreign Defined Gains Total Foreign Defined Gains Total Balance as of beginning of period $ (373) $ (715) $ (1) $ (1,089) $ (1,144) $ (653) $ (2) $ (1,799) Other comprehensive income (loss) before reclassifications (255) — (8) (263) 217 — — 217 Amounts reclassified from accumulated other comprehensive loss — 10 2 12 — 9 2 11 Effect of exchange rates — 2 — 2 — — — — Other comprehensive income (loss) (255) 12 (6) (249) 217 9 2 228 Balance as of end of period $ (628) $ (703) $ (7) $ (1,338) $ (927) $ (644) $ — $ (1,571) Nine Months Ended September 30, 2021 2020 Foreign Defined Gains Total Foreign Defined Gains Total Balance as of beginning of period $ (515) $ (737) $ (2) $ (1,254) $ (676) $ (672) $ (3) $ (1,351) Other comprehensive income (loss) before reclassifications (113) 1 (20) (132) (251) — 19 (232) Amounts reclassified from accumulated other comprehensive loss — 32 15 47 — 28 (16) 12 Effect of exchange rates — 1 — 1 — — — — Other comprehensive income (loss) (113) 34 (5) (84) (251) 28 3 (220) Balance as of end of period $ (628) $ (703) $ (7) $ (1,338) $ (927) $ (644) $ — $ (1,571) |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | 7. 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, 2021, our significant consolidated VIEs included: • DGD, a joint venture with a subsidiary of Darling Ingredients Inc., which owns and operates a plant that processes rendered and recycled materials, including 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 assets of our VIEs can only be used to settle their own obligations and the creditors of our VIEs have no recourse to our other 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 the performance of our consolidated VIEs, 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 consolidated VIEs, which are included in our balance sheets (in millions): September 30, 2021 DGD Central Other Total Assets Cash and cash equivalents $ 159 $ — $ 17 $ 176 Other current assets 191 10 22 223 Property, plant, and equipment, net 2,110 676 93 2,879 Liabilities Current liabilities, including current portion of debt and finance lease obligations $ 320 $ 700 $ 13 $ 1,033 Debt and finance lease obligations, less current portion 28 — 22 50 December 31, 2020 DGD Central Other Total Assets Cash and cash equivalents $ 144 $ 1 $ 16 $ 161 Other current assets 219 24 8 251 Property, plant, and equipment, net 1,232 590 96 1,918 Liabilities Current liabilities, including current portion of debt and finance lease obligations $ 90 $ 620 $ 8 $ 718 Debt and finance lease obligations, less current portion 1 — 25 26 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. On April 19, 2021, we sold a 24.99 percent membership interest in MVP, an unconsolidated joint venture with a subsidiary of Magellan Midstream Partners, L.P. (Magellan), for $270 million that resulted in a gain of $62 million, which is included in “other income, net.” MVP owns and operates a marine terminal located adjacent to the Houston Ship Channel in Pasadena, Texas. We retained a 25.01 percent membership interest in MVP. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | 8. 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 2021 2020 2021 2020 Three months ended September 30 Service cost $ 40 $ 35 $ 1 $ 1 Interest cost 19 21 2 3 Expected return on plan assets (48) (44) — — Amortization of: Net actuarial loss 21 18 — — Prior service credit (5) (4) (2) (2) Special charges 3 2 — — Net periodic benefit cost $ 30 $ 28 $ 1 $ 2 Nine months ended September 30 Service cost $ 121 $ 105 $ 4 $ 4 Interest cost 55 64 5 7 Expected return on plan assets (144) (134) — — Amortization of: Net actuarial loss 61 55 — — Prior service credit (14) (14) (5) (5) Special charges 7 3 — — Net periodic benefit cost $ 86 $ 79 $ 4 $ 6 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.” As previously disclosed in our annual report on Form 10-K for the year ended December 31, 2020, we plan to contribute approximately $128 million to our pension plans and $22 million to our other postretirement benefit plans during 2021. During the nine months ended September 30, 2021, we contributed $121 million and $12 million to our pension and other postretirement benefit plans, respectively. During the nine months ended September 30, 2020, we contributed $28 million and $12 million to our pension and other postretirement benefit plans, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 9. INCOME TAXES Our income tax expense for the three and nine months ended September 30, 2021 included a permanent income tax benefit to our estimated annual effective tax rate from DGD’s share of pre-tax income that is not taxable to us and a benefit for the settlement of the audits of certain state tax returns for 2004 through 2006. In addition, income tax expense for the nine months ended September 30, 2021 included a $64 million charge, which resulted from certain statutory income tax rate changes (primarily an increase in the United Kingdom (U.K.) rate from 19 percent to 25 percent effective in 2023) that were enacted during the three months ended June 30, 2021. The variation in the customary relationship of our effective tax rate to the U.S. federal statutory rate for the three and nine months ended September 30, 2021 was primarily due to these components of our tax expense. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (CARES) Act was enacted, which resulted in significant changes to the U.S. Internal Revenue Code of 1986, as amended. Our income tax benefit for the three and nine months ended September 30, 2020, therefore, included a tax benefit of $121 million and $238 million, respectively, attributable to the carryback of our 2020 tax net operating loss (NOL) to our 2015 income tax year when we paid U.S. federal income taxes at a 35 percent tax rate. The variation in the customary relationship of our effective tax rate to the U.S. federal statutory rate for the three and nine months ended September 30, 2020 was primarily due to this income tax benefit. |
Earnings (Loss) Per Common Shar
Earnings (Loss) Per Common Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER COMMON SHARE | 10. EARNINGS (LOSS) PER COMMON SHARE Earnings (loss) per common share was computed as follows (dollars and shares in millions, except per share amounts): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Earnings (loss) per common share: Net income (loss) attributable to Valero stockholders $ 463 $ (464) $ (79) $ (1,062) Less: Income allocated to participating securities 1 1 4 4 Net income (loss) available to common stockholders $ 462 $ (465) $ (83) $ (1,066) Weighted-average common shares outstanding 407 407 407 407 Earnings (loss) per common share $ 1.13 $ (1.14) $ (0.20) $ (2.62) Earnings (loss) per common share – assuming dilution: Net income (loss) attributable to Valero stockholders $ 463 $ (464) $ (79) $ (1,062) Less: Income allocated to participating securities 1 1 4 4 Net income (loss) available to common stockholders $ 462 $ (465) $ (83) $ (1,066) Weighted-average common shares outstanding 407 407 407 407 Effect of dilutive securities 1 — — — Weighted-average common shares outstanding – assuming dilution 408 407 407 407 Earnings (loss) per common share – assuming dilution $ 1.13 $ (1.14) $ (0.20) $ (2.62) |
Revenues and Segment Informatio
Revenues and Segment Information | 9 Months Ended |
Sep. 30, 2021 | |
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. Contract Balances Contract balances were as follows (in millions): September 30, December 31, Receivables from contracts with customers, included in receivables, net $ 5,597 $ 3,642 Contract liabilities, included in accrued expenses 67 55 During the nine months ended September 30, 2021 and 2020, we recognized as revenue $44 million and $53 million that was included in contract liabilities as of December 31, 2020 and 2019, respectively. Revenue recognized during the three months ended September 30, 2021 and 2020 related to contract liabilities was not material. 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, 2021, we have not disclosed the aggregate amount of the transaction price allocated to our remaining performance obligations. Segment Information We have three reportable segments — refining, renewable diesel, and ethanol. 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 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 renewable diesel segment represents the operations of DGD, our consolidated joint venture as discussed in Note 7. 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. • The ethanol segment includes the operations of our 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. 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 Renewable Ethanol Corporate Total Three months ended September 30, 2021 Revenues: Revenues from external customers $ 27,989 $ 342 $ 1,189 $ — $ 29,520 Intersegment revenues 3 60 115 (178) — Total revenues 27,992 402 1,304 (178) 29,520 Cost of sales: Cost of materials and other 25,395 256 1,150 (177) 26,624 Operating expenses (excluding depreciation and amortization expense reflected below) 1,195 26 128 (1) 1,348 Depreciation and amortization expense 549 11 70 — 630 Total cost of sales 27,139 293 1,348 (178) 28,602 Other operating expenses 18 1 — — 19 General and administrative expenses (excluding depreciation and amortization expense reflected below) — — — 195 195 Depreciation and amortization expense — — — 11 11 Operating income (loss) by segment $ 835 $ 108 $ (44) $ (206) $ 693 Three months ended September 30, 2020 Revenues: Revenues from external customers $ 14,727 $ 305 $ 777 $ — $ 15,809 Intersegment revenues 2 40 58 (100) — Total revenues 14,729 345 835 (100) 15,809 Cost of sales: Cost of materials and other 14,103 128 670 (100) 14,801 LCM inventory valuation adjustment (296) — (17) — (313) Operating expenses (excluding depreciation and amortization expense reflected below) 989 23 105 — 1,117 Depreciation and amortization expense 538 10 54 — 602 Total cost of sales 15,334 161 812 (100) 16,207 Other operating expenses 24 — 1 — 25 General and administrative expenses (excluding depreciation and amortization expense reflected below) — — — 186 186 Depreciation and amortization expense — — — 12 12 Operating income (loss) by segment $ (629) $ 184 $ 22 $ (198) $ (621) Refining Renewable Ethanol Corporate Total Nine months ended September 30, 2021 Revenues: Revenues from external customers $ 73,426 $ 1,190 $ 3,458 $ — $ 78,074 Intersegment revenues 7 215 259 (481) — Total revenues 73,433 1,405 3,717 (481) 78,074 Cost of sales: Cost of materials and other 67,417 724 3,204 (480) 70,865 Operating expenses (excluding depreciation and amortization expense reflected below) 3,730 86 403 (1) 4,218 Depreciation and amortization expense 1,626 35 111 — 1,772 Total cost of sales 72,773 845 3,718 (481) 76,855 Other operating expenses 68 1 — — 69 General and administrative expenses (excluding depreciation and amortization expense reflected below) — — — 579 579 Depreciation and amortization expense — — — 35 35 Operating income (loss) by segment $ 592 $ 559 $ (1) $ (614) $ 536 Nine months ended September 30, 2020 Revenues: Revenues from external customers $ 45,327 $ 850 $ 2,131 $ — $ 48,308 Intersegment revenues 6 150 160 (316) — Total revenues 45,333 1,000 2,291 (316) 48,308 Cost of sales: Cost of materials and other 41,769 393 1,984 (314) 43,832 LCM inventory valuation adjustment (19) — — — (19) Operating expenses (excluding depreciation and amortization expense reflected below) 2,912 63 293 — 3,268 Depreciation and amortization expense 1,607 33 97 — 1,737 Total cost of sales 46,269 489 2,374 (314) 48,818 Other operating expenses 29 — 1 — 30 General and administrative expenses (excluding depreciation and amortization expense reflected below) — — — 532 532 Depreciation and amortization expense — — — 37 37 Operating income (loss) by segment $ (965) $ 511 $ (84) $ (571) $ (1,109) 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 2021 2020 2021 2020 Refining: Gasolines and blendstocks $ 13,132 $ 7,021 $ 34,293 $ 19,258 Distillates 11,588 6,327 31,044 21,369 Other product revenues 3,269 1,379 8,089 4,700 Total refining revenues 27,989 14,727 73,426 45,327 Renewable diesel: Renewable diesel 342 305 1,190 850 Ethanol: Ethanol 948 624 2,683 1,685 Distillers grains 241 153 775 446 Total ethanol revenues 1,189 777 3,458 2,131 Revenues $ 29,520 $ 15,809 $ 78,074 $ 48,308 Total assets by reportable segment were as follows (in millions): September 30, December 31, Refining $ 45,975 $ 42,939 Renewable diesel 2,588 1,659 Ethanol 1,621 1,728 Corporate and eliminations 4,507 5,448 Total assets $ 54,691 $ 51,774 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2021 | |
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 (loss) is adjusted by, among other things, changes in current assets and current liabilities as follows (in millions): Nine Months Ended 2021 2020 Decrease (increase) in current assets: Receivables, net $ (2,643) $ 3,229 Inventories (232) 1,577 Prepaid expenses and other 28 70 Increase (decrease) in current liabilities: Accounts payable 3,624 (4,893) Accrued expenses 538 17 Taxes other than income taxes payable 200 (24) Income taxes payable 115 (208) Changes in current assets and current liabilities $ 1,630 $ (232) Changes in current assets and current liabilities for the nine months ended September 30, 2021 were primarily due to the following: • the increase in receivables was primarily due to an increase in refined petroleum product prices in September 2021 compared to December 2020 combined with an increase in refined petroleum product sales volumes, partially offset by a decrease in income taxes receivable associated with the receipt of a $962 million refund related to our U.S federal income tax return for 2020; • the increase in accounts payable was primarily due to an increase in crude oil and other feedstock prices in September 2021 compared to December 2020 combined with an increase in crude oil and other feedstock volumes purchased; and • the increase in accrued expenses was primarily due to an increase in our environmental credit obligations under fixed-price contracts that resulted from higher prices for Renewable Identification Numbers (RINs) in September 2021 compared to December 2020. Changes in current assets and current liabilities for the nine months ended September 30, 2020 were primarily due to the following: • the decrease in receivables was due to (i) a decrease of $3.6 billion as a result of a decrease in sales volumes combined with a decrease in refined petroleum product prices in September 2020 compared to December 2019 and (ii) the collection of $449 million for a blender’s tax credit receivable attributable to volumes blended during 2019 and 2018, partially offset by an increase in income taxes receivable of $770 million primarily due to the recognition of a current income tax benefit; • the decrease in inventories was primarily due to lower inventory levels in September 2020 compared to December 2019; and • the decrease in accounts payable was due to a decrease in crude oil and other feedstock volumes purchased combined with a decrease in crude oil and other feedstock prices in September 2020 compared to December 2019. Cash flows related to interest and income taxes were as follows (in millions): Nine Months Ended 2021 2020 Interest paid in excess of amount capitalized, including interest on finance leases $ 397 $ 338 Income taxes paid (refunded), net (876) 206 Supplemental cash flow information related to our operating and finance leases was as follows (in millions): Nine Months Ended September 30, 2021 2020 Operating Finance Operating Finance Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows $ 296 $ 53 $ 329 $ 74 Investing cash flows 1 — 1 — Financing cash flows — 97 — 51 Changes in lease balances resulting from new and modified leases (a) 366 93 211 1,506 ________________________ (a) Noncash activity for the nine months ended September 30, 2020 primarily included $1.4 billion for a finance lease right-of-use asset and related liability recognized in connection with the terminaling agreement with MVP. There were no significant noncash investing and financing activities during the nine months ended September 30, 2021 and 2020, except as noted in the table above. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021 and December 31, 2020. 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, 2021 Total Effect of Effect of Net Cash Fair Value Hierarchy Level 1 Level 2 Level 3 Assets Commodity derivative contracts $ 785 $ — $ — $ 785 $ (677) $ (48) $ 60 $ — Physical purchase contracts — 6 — 6 n/a n/a 6 n/a Foreign currency contracts 4 — — 4 n/a n/a 4 n/a Investments of certain benefit plans 84 — 6 90 n/a n/a 90 n/a Total $ 873 $ 6 $ 6 $ 885 $ (677) $ (48) $ 160 Liabilities Commodity derivative contracts $ 736 $ — $ — $ 736 $ (677) $ (59) $ — $ (55) Environmental credit obligations — 94 — 94 n/a n/a 94 n/a Physical purchase contracts — 5 — 5 n/a n/a 5 n/a Foreign currency contracts 5 — — 5 n/a n/a 5 n/a Total $ 741 $ 99 $ — $ 840 $ (677) $ (59) $ 104 December 31, 2020 Total Effect of Effect of Net Cash Fair Value Hierarchy Level 1 Level 2 Level 3 Assets Commodity derivative contracts $ 403 $ — $ — $ 403 $ (373) $ (18) $ 12 $ — Physical purchase contracts — 13 — 13 n/a n/a 13 n/a Investments of certain benefit plans 74 — 8 82 n/a n/a 82 n/a Total $ 477 $ 13 $ 8 $ 498 $ (373) $ (18) $ 107 Liabilities Commodity derivative contracts $ 405 $ — $ — $ 405 $ (373) $ (32) $ — $ (44) Environmental credit obligations — 96 — 96 n/a n/a 96 n/a Foreign currency contracts 4 — — 4 n/a n/a 4 n/a Total $ 409 $ 96 $ — $ 505 $ (373) $ (32) $ 100 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. • 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. • 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. • Environmental credit obligations represent our liability for the purchase of (i) biofuel credits (primarily RINs in the U.S.) needed to satisfy our blending obligation under the U.S. federal Renewable Fuel Standard (RFS) and similar biofuel blending programs, such as the U.K. Renewable Transport Fuel Obligation, (collectively, the biofuels programs); and (ii) emission credits needed under various other environmental emissions programs (collectively, the other environmental emissions programs). To the degree we are unable to blend biofuels (such as ethanol and biodiesel, including renewable diesel) at percentages required under the biofuel programs, we must purchase biofuel credits to comply with these programs. Under the other environmental emissions programs, we also must purchase emission credits to comply with these programs. These programs are described in Note 14 under “ Risk Management Activities by Type of Risk —Environmental Compliance Program Price Risk.” 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 a market approach based on quoted prices from an independent pricing service. Nonrecurring Fair Value Measurements There were no assets or liabilities that were measured at fair value on a nonrecurring basis as of September 30, 2021 and December 31, 2020. 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, 2021 December 31, 2020 Fair Value Carrying Fair Carrying Fair Financial assets: Cash and cash equivalents Level 1 $ 3,498 $ 3,498 $ 3,313 $ 3,313 Financial liabilities: Debt (excluding finance leases) Level 2 12,573 14,574 13,013 15,103 |
Price Risk Management Activitie
Price Risk Management Activities | 9 Months Ended |
Sep. 30, 2021 | |
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 and other comprehensive income (loss) is summarized below under “ Effect of Derivative Instruments on Income and Other Comprehensive Income (Loss) .” Risk Management Activities by Type of Risk Commodity Price Risk We are exposed to market risks related to the volatility in the price of feedstocks (primarily crude oil and corn), the products we produce (primarily refined petroleum products), 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 objectives 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 purchases and/or product 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 product inventories and (ii) lock in the price of forecasted purchases and/or product sales at existing market prices that we deem favorable. As of September 30, 2021, 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 2021 2022 Derivatives designated as cash flow hedges: Refined petroleum products: Futures – long 1,162 501 Futures – short 3,400 501 Derivatives designated as economic hedges: Crude oil and refined petroleum products: Futures – long 63,320 1,354 Futures – short 61,498 1,173 Corn: Futures – long 85,540 1,615 Futures – short 103,295 6,395 Physical contracts – long 16,441 4,792 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, 2021, we had foreign currency contracts to purchase $463 million of U.S. dollars and $1.1 billion of U.S. dollar equivalent Canadian dollars. Of these commitments, $425 million matured on or before October 25, 2021 and the remaining $1.138 billion will mature by December 6, 2021. 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 as appropriate. 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, such as the biofuels programs described in Note 13, 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, or local governments thereof, set annual quotas for the percentage of biofuels that must be blended into the motor fuels consumed in their jurisdictions. 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 as appropriate. The cost of meeting our credit obligations under the biofuels programs was $618 million and $143 million for the three months ended September 30, 2021 and 2020, respectively, and $1.6 billion and $391 million for the nine months ended September 30, 2021 and 2020, respectively. These amounts are reflected in cost of materials and other. We are subject to additional requirements under the other environmental emissions programs as discussed in Note 13. Under these other environmental emissions programs, we purchase various emission credits to comply with these programs. Therefore, we are exposed to the volatility in the market price of these credits. The cost of the various credits under the other environmental emissions programs are significant; however, we recovered substantially all of these costs from our customers for the three and nine months ended September 30, 2021 and 2020 and expect to continue to recover the majority of these costs in the future. For the three and nine months ended September 30, 2021 and 2020, the net cost of meeting our credit obligations under these other environmental emissions programs was immaterial. Fair Values of Derivative Instruments The following tables provide information about the fair values of our derivative instruments as of September 30, 2021 and December 31, 2020 (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 table, however, is 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 September 30, 2021 December 31, 2020 Asset Liability Asset Liability Derivatives designated as hedging instruments: Commodity contracts Receivables, net $ 18 $ 41 $ 4 $ 17 Derivatives not designated as hedging instruments: Commodity contracts Receivables, net $ 767 $ 695 $ 399 $ 388 Physical purchase contracts Inventories 6 5 13 — Foreign currency contracts Receivables, net 4 — — — Foreign currency contracts Accrued expenses — 5 — 4 Total $ 777 $ 705 $ 412 $ 392 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 and Other Comprehensive Income (Loss) The following table provides information about the gain (loss) recognized in income and other comprehensive income (loss) due to fair value adjustments of our cash flow hedges (in millions): Derivatives in Location of Gain (Loss) Three Months Ended Nine Months Ended 2021 2020 2021 2020 Commodity contracts: Gain (loss) recognized in other comprehensive income (loss) on derivatives n/a $ (21) $ 2 $ (52) $ 52 Gain (loss) reclassified from accumulated other comprehensive loss into income Revenues (3) (3) (37) 42 For cash flow hedges, no component of any derivative instrument’s gains or losses was excluded from the assessment of hedge effectiveness for the three and nine months ended September 30, 2021 and 2020. For the three and nine months ended September 30, 2021 and 2020, cash flow hedges primarily related to forward sales of renewable diesel. The estimated deferred after-tax loss that is expected to be reclassified into revenues over the next 12 months as a result of the hedged transactions that are forecasted to occur as of September 30, 2021 was immaterial. For the three and nine months ended September 30, 2021 and 2020, there were no amounts reclassified from accumulated other comprehensive loss into income as a result of the discontinuance of cash flow hedge accounting. The changes in accumulated other comprehensive loss by component, net of tax, for the three and nine months ended September 30, 2021 and 2020 are described in Note 6. The following table provides information about the gain (loss) recognized in income on our derivative instruments with respect to our economic hedges and our foreign currency hedges and the line items in the statements of income in which such gains (losses) are reflected (in millions): Derivatives Not Location of Gain (Loss) Three Months Ended Nine Months Ended 2021 2020 2021 2020 Commodity contracts Revenues $ (7) $ (4) $ 13 $ (3) Commodity contracts Cost of materials 6 118 (51) 106 Commodity contracts Operating expenses (1) — 2 2 Foreign currency contracts Cost of materials 19 (6) 17 43 Foreign currency contracts Other income, net (28) 56 55 (49) |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
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. The term “DGD,” as used in this report, may refer to Diamond Green Diesel Holdings LLC, its wholly owned consolidated subsidiary — Diamond Green Diesel LLC, or both 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 of our results for the nine months ended September 30, 2021 have been included. All such adjustments are of a normal recurring nature unless disclosed otherwise. Operating results for the nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The financial statements presented herein should be read in conjunction with the financial statements included in our annual report on Form 10-K for the year ended December 31, 2020. The balance sheet as of December 31, 2020 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, 2020. |
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. |
Adoption of Accounting Pronouncement | Adoption of Accounting Pronouncement The following Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) was issued and adopted by us on January 7, 2021. Our adoption of this ASU did not have a material impact on our financial statements or related disclosures. ASU Basis of 2021-01 Reference Rate Reform (Topic 848): Scope Prospectively |
Variable interest entities | We consolidate a VIE when we have a variable interest in an entity for which we are the primary beneficiary.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 and other comprehensive income (loss) is summarized below under “ Effect of Derivative Instruments on Income and Other Comprehensive Income (Loss) .” |
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, 2021 | |
Accounting Policies [Abstract] | |
Schedule of adopted accounting pronouncements | The following Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) was issued and adopted by us on January 7, 2021. Our adoption of this ASU did not have a material impact on our financial statements or related disclosures. ASU Basis of 2021-01 Reference Rate Reform (Topic 848): Scope Prospectively |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consisted of the following (in millions): September 30, December 31, Refinery feedstocks $ 1,646 $ 1,979 Refined petroleum products and blendstocks 3,944 3,425 Renewable diesel feedstocks and products 113 50 Ethanol feedstocks and products 233 297 Materials and supplies 291 287 Inventories $ 6,227 $ 6,038 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021 Facility Maturity Date Outstanding Letters of Credit Availability Committed facilities: Valero Revolver $ 4,000 March 2024 $ — $ 288 $ 3,712 Canadian Revolver C$ 150 November 2021 C$ — C$ 5 C$ 145 Accounts receivable sales facility (b) $ 1,300 July 2022 $ — n/a $ 1,300 Letter of credit facility $ 50 November 2021 n/a $ — $ 50 Committed facilities of VIEs (c): DGD Revolver $ 400 March 2024 $ 100 $ 7 $ 293 IEnova Revolver $ 743 February 2028 $ 627 n/a $ 116 Uncommitted facilities: Letter of credit facilities n/a n/a n/a $ 127 n/a ________________________ (a) Letters of credit issued as of September 30, 2021 expire at various times in 2021 through 2023. (b) In July 2021, we extended the maturity date of this facility to July 2022 and increased the facility amount from $1.0 billion to $1.3 billion. (c) Creditors of our VIEs do not have recourse against us. Activity under our credit facilities was as follows (in millions): Nine Months Ended 2021 2020 Borrowings: Accounts receivable sales facility $ — $ 300 DGD Revolver 100 — IEnova Revolver 29 202 Repayments: Accounts receivable sales facility — (400) |
Interest and debt expense, net of capitalized interest | “Interest and debt expense, net of capitalized interest” is comprised as follows (in millions): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Interest and debt expense $ 162 $ 162 $ 488 $ 468 Less: Capitalized interest 10 19 37 58 Interest and debt expense, net of capitalized interest $ 152 $ 143 $ 451 $ 410 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
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, 2021 2020 Foreign Defined Gains Total Foreign Defined Gains Total Balance as of beginning of period $ (373) $ (715) $ (1) $ (1,089) $ (1,144) $ (653) $ (2) $ (1,799) Other comprehensive income (loss) before reclassifications (255) — (8) (263) 217 — — 217 Amounts reclassified from accumulated other comprehensive loss — 10 2 12 — 9 2 11 Effect of exchange rates — 2 — 2 — — — — Other comprehensive income (loss) (255) 12 (6) (249) 217 9 2 228 Balance as of end of period $ (628) $ (703) $ (7) $ (1,338) $ (927) $ (644) $ — $ (1,571) Nine Months Ended September 30, 2021 2020 Foreign Defined Gains Total Foreign Defined Gains Total Balance as of beginning of period $ (515) $ (737) $ (2) $ (1,254) $ (676) $ (672) $ (3) $ (1,351) Other comprehensive income (loss) before reclassifications (113) 1 (20) (132) (251) — 19 (232) Amounts reclassified from accumulated other comprehensive loss — 32 15 47 — 28 (16) 12 Effect of exchange rates — 1 — 1 — — — — Other comprehensive income (loss) (113) 34 (5) (84) (251) 28 3 (220) Balance as of end of period $ (628) $ (703) $ (7) $ (1,338) $ (927) $ (644) $ — $ (1,571) |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summarized balance sheet information of consolidated VIEs | The following tables present summarized balance sheet information for the significant assets and liabilities of our consolidated VIEs, which are included in our balance sheets (in millions): September 30, 2021 DGD Central Other Total Assets Cash and cash equivalents $ 159 $ — $ 17 $ 176 Other current assets 191 10 22 223 Property, plant, and equipment, net 2,110 676 93 2,879 Liabilities Current liabilities, including current portion of debt and finance lease obligations $ 320 $ 700 $ 13 $ 1,033 Debt and finance lease obligations, less current portion 28 — 22 50 December 31, 2020 DGD Central Other Total Assets Cash and cash equivalents $ 144 $ 1 $ 16 $ 161 Other current assets 219 24 8 251 Property, plant, and equipment, net 1,232 590 96 1,918 Liabilities Current liabilities, including current portion of debt and finance lease obligations $ 90 $ 620 $ 8 $ 718 Debt and finance lease obligations, less current portion 1 — 25 26 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [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 2021 2020 2021 2020 Three months ended September 30 Service cost $ 40 $ 35 $ 1 $ 1 Interest cost 19 21 2 3 Expected return on plan assets (48) (44) — — Amortization of: Net actuarial loss 21 18 — — Prior service credit (5) (4) (2) (2) Special charges 3 2 — — Net periodic benefit cost $ 30 $ 28 $ 1 $ 2 Nine months ended September 30 Service cost $ 121 $ 105 $ 4 $ 4 Interest cost 55 64 5 7 Expected return on plan assets (144) (134) — — Amortization of: Net actuarial loss 61 55 — — Prior service credit (14) (14) (5) (5) Special charges 7 3 — — Net periodic benefit cost $ 86 $ 79 $ 4 $ 6 |
Earnings (Loss) Per Common Sh_2
Earnings (Loss) Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of earnings (loss) per common share, basic and diluted | Earnings (loss) per common share was computed as follows (dollars and shares in millions, except per share amounts): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Earnings (loss) per common share: Net income (loss) attributable to Valero stockholders $ 463 $ (464) $ (79) $ (1,062) Less: Income allocated to participating securities 1 1 4 4 Net income (loss) available to common stockholders $ 462 $ (465) $ (83) $ (1,066) Weighted-average common shares outstanding 407 407 407 407 Earnings (loss) per common share $ 1.13 $ (1.14) $ (0.20) $ (2.62) Earnings (loss) per common share – assuming dilution: Net income (loss) attributable to Valero stockholders $ 463 $ (464) $ (79) $ (1,062) Less: Income allocated to participating securities 1 1 4 4 Net income (loss) available to common stockholders $ 462 $ (465) $ (83) $ (1,066) Weighted-average common shares outstanding 407 407 407 407 Effect of dilutive securities 1 — — — Weighted-average common shares outstanding – assuming dilution 408 407 407 407 Earnings (loss) per common share – assuming dilution $ 1.13 $ (1.14) $ (0.20) $ (2.62) |
Revenues and Segment Informat_2
Revenues and Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of contract balances | Contract balances were as follows (in millions): September 30, December 31, Receivables from contracts with customers, included in receivables, net $ 5,597 $ 3,642 Contract liabilities, included in accrued expenses 67 55 |
Segment information for our reportable segments | The following tables reflect information about our operating income (loss) by reportable segment (in millions): Refining Renewable Ethanol Corporate Total Three months ended September 30, 2021 Revenues: Revenues from external customers $ 27,989 $ 342 $ 1,189 $ — $ 29,520 Intersegment revenues 3 60 115 (178) — Total revenues 27,992 402 1,304 (178) 29,520 Cost of sales: Cost of materials and other 25,395 256 1,150 (177) 26,624 Operating expenses (excluding depreciation and amortization expense reflected below) 1,195 26 128 (1) 1,348 Depreciation and amortization expense 549 11 70 — 630 Total cost of sales 27,139 293 1,348 (178) 28,602 Other operating expenses 18 1 — — 19 General and administrative expenses (excluding depreciation and amortization expense reflected below) — — — 195 195 Depreciation and amortization expense — — — 11 11 Operating income (loss) by segment $ 835 $ 108 $ (44) $ (206) $ 693 Three months ended September 30, 2020 Revenues: Revenues from external customers $ 14,727 $ 305 $ 777 $ — $ 15,809 Intersegment revenues 2 40 58 (100) — Total revenues 14,729 345 835 (100) 15,809 Cost of sales: Cost of materials and other 14,103 128 670 (100) 14,801 LCM inventory valuation adjustment (296) — (17) — (313) Operating expenses (excluding depreciation and amortization expense reflected below) 989 23 105 — 1,117 Depreciation and amortization expense 538 10 54 — 602 Total cost of sales 15,334 161 812 (100) 16,207 Other operating expenses 24 — 1 — 25 General and administrative expenses (excluding depreciation and amortization expense reflected below) — — — 186 186 Depreciation and amortization expense — — — 12 12 Operating income (loss) by segment $ (629) $ 184 $ 22 $ (198) $ (621) Refining Renewable Ethanol Corporate Total Nine months ended September 30, 2021 Revenues: Revenues from external customers $ 73,426 $ 1,190 $ 3,458 $ — $ 78,074 Intersegment revenues 7 215 259 (481) — Total revenues 73,433 1,405 3,717 (481) 78,074 Cost of sales: Cost of materials and other 67,417 724 3,204 (480) 70,865 Operating expenses (excluding depreciation and amortization expense reflected below) 3,730 86 403 (1) 4,218 Depreciation and amortization expense 1,626 35 111 — 1,772 Total cost of sales 72,773 845 3,718 (481) 76,855 Other operating expenses 68 1 — — 69 General and administrative expenses (excluding depreciation and amortization expense reflected below) — — — 579 579 Depreciation and amortization expense — — — 35 35 Operating income (loss) by segment $ 592 $ 559 $ (1) $ (614) $ 536 Nine months ended September 30, 2020 Revenues: Revenues from external customers $ 45,327 $ 850 $ 2,131 $ — $ 48,308 Intersegment revenues 6 150 160 (316) — Total revenues 45,333 1,000 2,291 (316) 48,308 Cost of sales: Cost of materials and other 41,769 393 1,984 (314) 43,832 LCM inventory valuation adjustment (19) — — — (19) Operating expenses (excluding depreciation and amortization expense reflected below) 2,912 63 293 — 3,268 Depreciation and amortization expense 1,607 33 97 — 1,737 Total cost of sales 46,269 489 2,374 (314) 48,818 Other operating expenses 29 — 1 — 30 General and administrative expenses (excluding depreciation and amortization expense reflected below) — — — 532 532 Depreciation and amortization expense — — — 37 37 Operating income (loss) by segment $ (965) $ 511 $ (84) $ (571) $ (1,109) 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 2021 2020 2021 2020 Refining: Gasolines and blendstocks $ 13,132 $ 7,021 $ 34,293 $ 19,258 Distillates 11,588 6,327 31,044 21,369 Other product revenues 3,269 1,379 8,089 4,700 Total refining revenues 27,989 14,727 73,426 45,327 Renewable diesel: Renewable diesel 342 305 1,190 850 Ethanol: Ethanol 948 624 2,683 1,685 Distillers grains 241 153 775 446 Total ethanol revenues 1,189 777 3,458 2,131 Revenues $ 29,520 $ 15,809 $ 78,074 $ 48,308 Total assets by reportable segment were as follows (in millions): September 30, December 31, Refining $ 45,975 $ 42,939 Renewable diesel 2,588 1,659 Ethanol 1,621 1,728 Corporate and eliminations 4,507 5,448 Total assets $ 54,691 $ 51,774 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of cash flows, supplemental disclosures | In order to determine net cash provided by operating activities, net income (loss) is adjusted by, among other things, changes in current assets and current liabilities as follows (in millions): Nine Months Ended 2021 2020 Decrease (increase) in current assets: Receivables, net $ (2,643) $ 3,229 Inventories (232) 1,577 Prepaid expenses and other 28 70 Increase (decrease) in current liabilities: Accounts payable 3,624 (4,893) Accrued expenses 538 17 Taxes other than income taxes payable 200 (24) Income taxes payable 115 (208) Changes in current assets and current liabilities $ 1,630 $ (232) Cash flows related to interest and income taxes were as follows (in millions): Nine Months Ended 2021 2020 Interest paid in excess of amount capitalized, including interest on finance leases $ 397 $ 338 Income taxes paid (refunded), net (876) 206 Supplemental cash flow information related to our operating and finance leases was as follows (in millions): Nine Months Ended September 30, 2021 2020 Operating Finance Operating Finance Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows $ 296 $ 53 $ 329 $ 74 Investing cash flows 1 — 1 — Financing cash flows — 97 — 51 Changes in lease balances resulting from new and modified leases (a) 366 93 211 1,506 ________________________ (a) Noncash activity for the nine months ended September 30, 2020 primarily included $1.4 billion for a finance lease right-of-use asset and related liability recognized in connection with the terminaling agreement with MVP. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2021 and December 31, 2020. 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, 2021 Total Effect of Effect of Net Cash Fair Value Hierarchy Level 1 Level 2 Level 3 Assets Commodity derivative contracts $ 785 $ — $ — $ 785 $ (677) $ (48) $ 60 $ — Physical purchase contracts — 6 — 6 n/a n/a 6 n/a Foreign currency contracts 4 — — 4 n/a n/a 4 n/a Investments of certain benefit plans 84 — 6 90 n/a n/a 90 n/a Total $ 873 $ 6 $ 6 $ 885 $ (677) $ (48) $ 160 Liabilities Commodity derivative contracts $ 736 $ — $ — $ 736 $ (677) $ (59) $ — $ (55) Environmental credit obligations — 94 — 94 n/a n/a 94 n/a Physical purchase contracts — 5 — 5 n/a n/a 5 n/a Foreign currency contracts 5 — — 5 n/a n/a 5 n/a Total $ 741 $ 99 $ — $ 840 $ (677) $ (59) $ 104 December 31, 2020 Total Effect of Effect of Net Cash Fair Value Hierarchy Level 1 Level 2 Level 3 Assets Commodity derivative contracts $ 403 $ — $ — $ 403 $ (373) $ (18) $ 12 $ — Physical purchase contracts — 13 — 13 n/a n/a 13 n/a Investments of certain benefit plans 74 — 8 82 n/a n/a 82 n/a Total $ 477 $ 13 $ 8 $ 498 $ (373) $ (18) $ 107 Liabilities Commodity derivative contracts $ 405 $ — $ — $ 405 $ (373) $ (32) $ — $ (44) Environmental credit obligations — 96 — 96 n/a n/a 96 n/a Foreign currency contracts 4 — — 4 n/a n/a 4 n/a Total $ 409 $ 96 $ — $ 505 $ (373) $ (32) $ 100 |
Carrying amount 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, 2021 December 31, 2020 Fair Value Carrying Fair Carrying Fair Financial assets: Cash and cash equivalents Level 1 $ 3,498 $ 3,498 $ 3,313 $ 3,313 Financial liabilities: Debt (excluding finance leases) Level 2 12,573 14,574 13,013 15,103 |
Price Risk Management Activit_2
Price Risk Management Activities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Risk management activities by type of risk | As of September 30, 2021, 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 2021 2022 Derivatives designated as cash flow hedges: Refined petroleum products: Futures – long 1,162 501 Futures – short 3,400 501 Derivatives designated as economic hedges: Crude oil and refined petroleum products: Futures – long 63,320 1,354 Futures – short 61,498 1,173 Corn: Futures – long 85,540 1,615 Futures – short 103,295 6,395 Physical contracts – long 16,441 4,792 |
Fair values of derivative instruments | The following tables provide information about the fair values of our derivative instruments as of September 30, 2021 and December 31, 2020 (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 table, however, is 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 September 30, 2021 December 31, 2020 Asset Liability Asset Liability Derivatives designated as hedging instruments: Commodity contracts Receivables, net $ 18 $ 41 $ 4 $ 17 Derivatives not designated as hedging instruments: Commodity contracts Receivables, net $ 767 $ 695 $ 399 $ 388 Physical purchase contracts Inventories 6 5 13 — Foreign currency contracts Receivables, net 4 — — — Foreign currency contracts Accrued expenses — 5 — 4 Total $ 777 $ 705 $ 412 $ 392 |
Effect of derivative instruments on income and other comprehensive income (loss) | The following table provides information about the gain (loss) recognized in income and other comprehensive income (loss) due to fair value adjustments of our cash flow hedges (in millions): Derivatives in Location of Gain (Loss) Three Months Ended Nine Months Ended 2021 2020 2021 2020 Commodity contracts: Gain (loss) recognized in other comprehensive income (loss) on derivatives n/a $ (21) $ 2 $ (52) $ 52 Gain (loss) reclassified from accumulated other comprehensive loss into income Revenues (3) (3) (37) 42 The following table provides information about the gain (loss) recognized in income on our derivative instruments with respect to our economic hedges and our foreign currency hedges and the line items in the statements of income in which such gains (losses) are reflected (in millions): Derivatives Not Location of Gain (Loss) Three Months Ended Nine Months Ended 2021 2020 2021 2020 Commodity contracts Revenues $ (7) $ (4) $ 13 $ (3) Commodity contracts Cost of materials 6 118 (51) 106 Commodity contracts Operating expenses (1) — 2 2 Foreign currency contracts Cost of materials 19 (6) 17 43 Foreign currency contracts Other income, net (28) 56 55 (49) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Mar. 31, 2020 | |
Schedule of Inventories | ||||||
Refinery feedstocks | $ 1,646 | $ 1,646 | $ 1,979 | |||
Refined petroleum products and blendstocks | 3,944 | 3,944 | 3,425 | |||
Renewable diesel feedstocks and products | 113 | 113 | 50 | |||
Ethanol feedstocks and products | 233 | 233 | 297 | |||
Materials and supplies | 291 | 291 | 287 | |||
Inventories | 6,227 | 6,227 | 6,038 | |||
Inventories (Textual) | ||||||
LCM inventory valuation reserve | $ 2,500 | |||||
Lower of cost or market (LCM) inventory valuation adjustment | 0 | $ (313) | 0 | $ (19) | ||
Excess of market value over carrying amount of LIFO inventories | 5,200 | 5,200 | 1,300 | |||
Liquidation of LIFO inventory, increase to cost of materials and other | $ 326 | $ 326 | ||||
Amount of non-LIFO inventory | $ 1,200 | $ 1,200 | $ 918 |
Property, Plant, and Equipment
Property, Plant, and Equipment - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021plant | Sep. 30, 2020plant | Sep. 30, 2021USD ($)plant | Sep. 30, 2020USD ($)plant | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020plant | Dec. 31, 2019plant | |
Ethanol Plants, Jefferson, Wisconsin [Member] | ||||||||
Property, Plant and Equipment (Textual) | ||||||||
Number of ethanol plants with reduced estimated useful life | 1 | |||||||
Additional depreciation expense | $ | $ 48 | $ 48 | ||||||
Number of ethanol plants temporarily idled | 1 | |||||||
Number of ethanol plants ceased operations | 1 | |||||||
Ethanol Plants, Riga, Michigan [Member] | ||||||||
Property, Plant and Equipment (Textual) | ||||||||
Number of ethanol plants with reduced estimated useful life | 1 | |||||||
Additional depreciation expense | $ | $ 30 | $ 30 | ||||||
Number of ethanol plants temporarily idled | 1 | |||||||
Number of ethanol plants ceased operations | 1 |
Debt, Narrative (Details)
Debt, Narrative (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2021 | May 31, 2021 | Apr. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Apr. 30, 2020 | |||
IEnova Revolver [Member] | Line of Credit [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Central Mexico Terminals [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 743,000,000 | $ 660,000,000 | ||||||||
Interest rate at period end (percent) | 3.497% | 3.87% | ||||||||
Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Proceeds from issuance of senior long-term debt | $ 4,020,000,000 | |||||||||
Line of Credit [Member] | DGD Revolver [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Diamond Green Diesel Holdings LLC [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 400,000,000 | [1] | $ 400,000,000 | |||||||
Option to increase aggregate commitments under line of credit facility, increase limit, subject to certain restrictions | 550,000,000 | |||||||||
Line of Credit [Member] | DGD Revolver Letter Of Credit [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Diamond Green Diesel Holdings LLC [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | 50,000,000 | $ 10,000,000 | ||||||||
Debt instrument, covenant, indebtedness limitation | $ 25,000,000 | |||||||||
Interest rate at period end (percent) | 1.84% | |||||||||
Line of Credit [Member] | IEnova Revolver [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Central Mexico Terminals [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | [1] | $ 743,000,000 | ||||||||
Floating Rate Senior Notes Due September 15, 2023 [Member] | Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Early repayment of senior debt | $ 575,000,000 | |||||||||
Debt instrument, redemption price, percentage of principal amount redeemed (percent) | 100.00% | |||||||||
Floating Rate Senior Notes Due September 15, 2023 [Member] | Senior Notes [Member] | Three-month LIBOR [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 1.15% | |||||||||
Senior Notes Due March 15, 2024 [Member] | Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Face amount of long-term debt issuance | $ 925,000,000 | $ 925,000,000 | ||||||||
Stated rate on debt instrument (percent) | 1.20% | 1.20% | ||||||||
Senior Notes Due April 15, 2025, Issued September 2020 [Member] | Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Face amount of long-term debt issuance | $ 400,000,000 | $ 400,000,000 | ||||||||
Stated rate on debt instrument (percent) | 2.85% | 2.85% | ||||||||
Senior Notes Due September 15, 2027 [Member] | Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Face amount of long-term debt issuance | $ 600,000,000 | $ 600,000,000 | ||||||||
Stated rate on debt instrument (percent) | 2.15% | 2.15% | ||||||||
Senior Notes Due April 15, 2023 [Member] | Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Face amount of long-term debt issuance | $ 850,000,000 | |||||||||
Stated rate on debt instrument (percent) | 2.70% | |||||||||
Senior Notes Due April 15, 2025, Issued April 2020 [Member] | Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Face amount of long-term debt issuance | $ 650,000,000 | |||||||||
Stated rate on debt instrument (percent) | 2.85% | |||||||||
[1] | Creditors of our VIEs do not have recourse against us. |
Debt, Credit Facilities (Detail
Debt, Credit Facilities (Details) | Sep. 30, 2021USD ($) | Sep. 30, 2021CAD ($) | Jul. 31, 2021USD ($) | Jun. 30, 2021USD ($) | May 31, 2021USD ($) | Apr. 30, 2021USD ($) | Mar. 31, 2021USD ($) | ||
Valero Revolver [Member] | Credit Facilities [Member] | |||||||||
Line of Credit Facility | |||||||||
Facility amount | $ 4,000,000,000 | ||||||||
Outstanding borrowings or letters of credit issued | 0 | ||||||||
Availability | 3,712,000,000 | ||||||||
Valero Revolver Letter of Credit [Member] | Credit Facilities [Member] | |||||||||
Line of Credit Facility | |||||||||
Outstanding borrowings or letters of credit issued | [1] | 288,000,000 | |||||||
Canadian Revolver [Member] | Credit Facilities [Member] | |||||||||
Line of Credit Facility | |||||||||
Facility amount | $ 150,000,000 | ||||||||
Outstanding borrowings or letters of credit issued, short-term | 0 | ||||||||
Availability | 145,000,000 | ||||||||
Canadian Revolver Letter of Credit [Member] | Credit Facilities [Member] | |||||||||
Line of Credit Facility | |||||||||
Outstanding borrowings or letters of credit issued, short-term | [1] | $ 5,000,000 | |||||||
Accounts Receivable Sales Facility [Member] | Credit Facilities [Member] | |||||||||
Line of Credit Facility | |||||||||
Facility amount | 1,300,000,000 | [2] | $ 1,300,000,000 | $ 1,000,000,000 | |||||
Outstanding borrowings or letters of credit issued, short-term | [2] | 0 | |||||||
Availability | [2] | 1,300,000,000 | |||||||
Committed Letter of Credit Facility [Member] | Credit Facilities [Member] | |||||||||
Line of Credit Facility | |||||||||
Facility amount | 50,000,000 | ||||||||
Outstanding borrowings or letters of credit issued, short-term | [1] | 0 | |||||||
Availability | 50,000,000 | ||||||||
DGD Revolver [Member] | Credit Facilities [Member] | Diamond Green Diesel Holdings LLC [Member] | Variable Interest Entities (VIEs) [Member] | |||||||||
Line of Credit Facility | |||||||||
Facility amount | 400,000,000 | [3] | $ 400,000,000 | ||||||
Outstanding borrowings or letters of credit issued | [3] | 100,000,000 | |||||||
Availability | [3] | 293,000,000 | |||||||
DGD Revolver Letter Of Credit [Member] | Credit Facilities [Member] | Diamond Green Diesel Holdings LLC [Member] | Variable Interest Entities (VIEs) [Member] | |||||||||
Line of Credit Facility | |||||||||
Facility amount | 50,000,000 | $ 10,000,000 | |||||||
Outstanding borrowings or letters of credit issued | [1],[3] | 7,000,000 | |||||||
IEnova Revolver [Member] | Credit Facilities [Member] | Central Mexico Terminals [Member] | Variable Interest Entities (VIEs) [Member] | |||||||||
Line of Credit Facility | |||||||||
Facility amount | $ 743,000,000 | $ 660,000,000 | |||||||
Outstanding borrowings or letters of credit issued, short-term | [3] | 627,000,000 | |||||||
IEnova Revolver [Member] | Credit Facilities [Member] | Central Mexico Terminals [Member] | Variable Interest Entities (VIEs) [Member] | |||||||||
Line of Credit Facility | |||||||||
Facility amount | [3] | 743,000,000 | |||||||
Availability | [3] | 116,000,000 | |||||||
Uncommitted Letter of Credit Facility [Member] | Credit Facilities [Member] | |||||||||
Line of Credit Facility | |||||||||
Outstanding borrowings or letters of credit issued, short-term | [1] | $ 127,000,000 | |||||||
[1] | Letters of credit issued as of September 30, 2021 expire at various times in 2021 through 2023. | ||||||||
[2] | In July 2021, we extended the maturity date of this facility to July 2022 and increased the facility amount from $1.0 billion to $1.3 billion. | ||||||||
[3] | Creditors of our VIEs do not have recourse against us. |
Debt, Activity Under Credit Fac
Debt, Activity Under Credit Facilities (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Accounts Receivable Sales Facility [Member] | Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Borrowings | $ 0 | $ 300 |
Repayments | 0 | (400) |
DGD Revolver [Member] | DGD [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Borrowings | 100 | 0 |
IEnova Revolver [Member] | Line of Credit [Member] | Central Mexico Terminals [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Line of Credit Facility [Line Items] | ||
Borrowings | $ 29 | $ 202 |
Debt, Interest Incurred (Detail
Debt, Interest Incurred (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Interest and Debt Expense, Net of Capitalized Interest | ||||
Interest and debt expense | $ 162 | $ 162 | $ 488 | $ 468 |
Less: Capitalized interest | 10 | 19 | 37 | 58 |
Interest and debt expense, net of capitalized interest | $ 152 | $ 143 | $ 451 | $ 410 |
Equity, Narrative (Details)
Equity, Narrative (Details) | Oct. 27, 2021$ / shares |
Subsequent Event [Member] | |
Equity (Textual) | |
Dividends declared, amount per share (in dollars per share) | $ 0.98 |
Equity, Changes in Accumulated
Equity, Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Changes in Accumulated Other Comprehensive Loss, By Component, Net of Tax | ||||
Beginning balance, accumulated other comprehensive loss, net of tax | $ 18,801 | |||
Other comprehensive income (loss) before reclassifications | $ (263) | $ 217 | (132) | $ (232) |
Amounts reclassified from accumulated other comprehensive loss | 12 | 11 | 47 | 12 |
Effect of exchange rates | 2 | 0 | 1 | 0 |
Other comprehensive income (loss) | (249) | 228 | (84) | (220) |
Ending balance, accumulated other comprehensive loss, net of tax | 17,476 | 17,476 | ||
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 | (1,089) | (1,799) | (1,254) | (1,351) |
Ending balance, accumulated other comprehensive loss, net of tax | (1,338) | (1,571) | (1,338) | (1,571) |
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 | (373) | (1,144) | (515) | (676) |
Other comprehensive income (loss) before reclassifications | (255) | 217 | (113) | (251) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Effect of exchange rates | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | (255) | 217 | (113) | (251) |
Ending balance, accumulated other comprehensive loss, net of tax | (628) | (927) | (628) | (927) |
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 | (715) | (653) | (737) | (672) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 1 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 10 | 9 | 32 | 28 |
Effect of exchange rates | 2 | 0 | 1 | 0 |
Other comprehensive income (loss) | 12 | 9 | 34 | 28 |
Ending balance, accumulated other comprehensive loss, net of tax | (703) | (644) | (703) | (644) |
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) | (2) | (2) | (3) |
Other comprehensive income (loss) before reclassifications | (8) | 0 | (20) | 19 |
Amounts reclassified from accumulated other comprehensive loss | 2 | 2 | 15 | (16) |
Effect of exchange rates | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | (6) | 2 | (5) | 3 |
Ending balance, accumulated other comprehensive loss, net of tax | $ (7) | $ 0 | $ (7) | $ 0 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Millions | Apr. 19, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Assets | ||||
Cash and cash equivalents | $ 3,498 | $ 3,313 | ||
Property, plant, and equipment, net | 30,440 | 30,389 | ||
Liabilities | ||||
Current liabilities, including current portion of debt and finance lease obligations | 14,313 | 9,283 | ||
Debt and finance lease obligations, less current portion | 13,071 | 13,954 | ||
Variable Interest Entity (Textual) | ||||
Proceeds from sale of membership interest in unconsolidated joint venture | 270 | $ 0 | ||
Gain on sale of partial interest in MVP Terminalling, LLC (MVP) | 62 | $ 0 | ||
MVP Terminalling, LLC (MVP) [Member] | ||||
Variable Interest Entity (Textual) | ||||
Percent membership interest in unconsolidated joint venture sold (percent) | 24.99% | |||
Proceeds from sale of membership interest in unconsolidated joint venture | $ 270 | |||
Gain on sale of partial interest in MVP Terminalling, LLC (MVP) | $ 62 | |||
Membership percentage in VIE (percent) | 25.01% | |||
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Assets | ||||
Cash and cash equivalents | 176 | 161 | ||
Other current assets | 223 | 251 | ||
Property, plant, and equipment, net | 2,879 | 1,918 | ||
Liabilities | ||||
Current liabilities, including current portion of debt and finance lease obligations | 1,033 | 718 | ||
Debt and finance lease obligations, less current portion | 50 | 26 | ||
Diamond Green Diesel Holdings LLC (DGD) [Member] | ||||
Assets | ||||
Cash and cash equivalents | 159 | 144 | ||
Other current assets | 191 | 219 | ||
Property, plant, and equipment, net | 2,110 | 1,232 | ||
Liabilities | ||||
Current liabilities, including current portion of debt and finance lease obligations | 320 | 90 | ||
Debt and finance lease obligations, less current portion | 28 | 1 | ||
Central Mexico Terminals [Member] | ||||
Assets | ||||
Cash and cash equivalents | 0 | 1 | ||
Other current assets | 10 | 24 | ||
Property, plant, and equipment, net | 676 | 590 | ||
Liabilities | ||||
Current liabilities, including current portion of debt and finance lease obligations | 700 | 620 | ||
Debt and finance lease obligations, less current portion | 0 | 0 | ||
Other VIEs [Member] | ||||
Assets | ||||
Cash and cash equivalents | 17 | 16 | ||
Other current assets | 22 | 8 | ||
Property, plant, and equipment, net | 93 | 96 | ||
Liabilities | ||||
Current liabilities, including current portion of debt and finance lease obligations | 13 | 8 | ||
Debt and finance lease obligations, less current portion | $ 22 | $ 25 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Pension Plans [Member] | ||||
Components of net periodic benefit cost: | ||||
Service cost | $ 40 | $ 35 | $ 121 | $ 105 |
Interest cost | 19 | 21 | 55 | 64 |
Expected return on plan assets | (48) | (44) | (144) | (134) |
Amortization of: | ||||
Net actuarial loss | 21 | 18 | 61 | 55 |
Prior service credit | (5) | (4) | (14) | (14) |
Special charges | 3 | 2 | 7 | 3 |
Net periodic benefit cost | 30 | 28 | 86 | 79 |
Employee Benefit Plans (Textual) | ||||
Future employer contributions to pension and other postretirement plans, as disclosed in annual report on Form 10-K | 128 | 128 | ||
Contributions to benefit plans | 121 | 28 | ||
Other Postretirement Benefit Plans [Member] | ||||
Components of net periodic benefit cost: | ||||
Service cost | 1 | 1 | 4 | 4 |
Interest cost | 2 | 3 | 5 | 7 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of: | ||||
Net actuarial loss | 0 | 0 | 0 | 0 |
Prior service credit | (2) | (2) | (5) | (5) |
Special charges | 0 | 0 | 0 | 0 |
Net periodic benefit cost | 1 | $ 2 | 4 | 6 |
Employee Benefit Plans (Textual) | ||||
Future employer contributions to pension and other postretirement plans, as disclosed in annual report on Form 10-K | $ 22 | 22 | ||
Contributions to benefit plans | $ 12 | $ 12 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Taxes (Textual) | |||
Income tax expense recognized which represents the estimated increase in deferred tax liabilities resulting from change in income tax rates | $ 64 | ||
Income tax benefit, tax NOL carryback provided for under CARES Act | $ 121 | $ 238 |
Earnings (Loss) Per Common Sh_3
Earnings (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings (loss) per common share: | ||||
Net income (loss) attributable to Valero stockholders | $ 463 | $ (464) | $ (79) | $ (1,062) |
Less: Income allocated to participating securities | 1 | 1 | 4 | 4 |
Net income (loss) available to common stockholders | $ 462 | $ (465) | $ (83) | $ (1,066) |
Weighted-average common shares outstanding (in shares) | 407 | 407 | 407 | 407 |
Earnings (loss) per common share (in dollars per share) | $ 1.13 | $ (1.14) | $ (0.20) | $ (2.62) |
Earnings (loss) per common share – assuming dilution: | ||||
Net income (loss) attributable to Valero stockholders | $ 463 | $ (464) | $ (79) | $ (1,062) |
Less: Income allocated to participating securities | 1 | 1 | 4 | 4 |
Net income (loss) available to common stockholders | $ 462 | $ (465) | $ (83) | $ (1,066) |
Weighted-average common shares outstanding (in shares) | 407 | 407 | 407 | 407 |
Effect of dilutive securities (in shares) | 1 | 0 | 0 | 0 |
Weighted-average common shares outstanding – assuming dilution (in shares) | 408 | 407 | 407 | 407 |
Earnings (loss) per common share – assuming dilution (in dollars per share) | $ 1.13 | $ (1.14) | $ (0.20) | $ (2.62) |
Revenues and Segment Informat_3
Revenues and Segment Information, Contract Balances (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Contract liabilities, included in accrued expenses | $ 67 | $ 55 | |
Contract Balances (Textual) | |||
Revenue recognized that was included in contract liabilities as of prior year end | 44 | $ 53 | |
Receivables from Contracts with Customers [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Receivables from contracts with customers, included in receivables, net | $ 5,597 | $ 3,642 |
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, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | ||
Segment Information for our Reportable Segments | |||||
Revenues | [1] | $ 29,520 | $ 15,809 | $ 78,074 | $ 48,308 |
Cost of sales: | |||||
Cost of materials and other | 26,624 | 14,801 | 70,865 | 43,832 | |
LCM inventory valuation adjustment | 0 | (313) | 0 | (19) | |
Operating expenses (excluding depreciation and amortization expense reflected below) | 1,348 | 1,117 | 4,218 | 3,268 | |
Depreciation and amortization expense | 630 | 602 | 1,772 | 1,737 | |
Total cost of sales | 28,602 | 16,207 | 76,855 | 48,818 | |
Other operating expenses | 19 | 25 | 69 | 30 | |
General and administrative expenses (excluding depreciation and amortization expense reflected below) | 195 | 186 | 579 | 532 | |
Depreciation and amortization expense | 11 | 12 | 35 | 37 | |
Operating income (loss) | 693 | (621) | $ 536 | (1,109) | |
Disclosure of Entity's Reportable Segments (Textual) | |||||
Number of reportable segments | segment | 3 | ||||
Corporate, Reconciling Items And Eliminations [Member] | |||||
Segment Information for our Reportable Segments | |||||
Revenues | (178) | (100) | $ (481) | (316) | |
Cost of sales: | |||||
Operating income (loss) | (206) | (198) | (614) | (571) | |
Corporate [Member] | |||||
Segment Information for our Reportable Segments | |||||
Revenues | 0 | 0 | 0 | 0 | |
Cost of sales: | |||||
General and administrative expenses (excluding depreciation and amortization expense reflected below) | 195 | 186 | 579 | 532 | |
Depreciation and amortization expense | 11 | 12 | 35 | 37 | |
Intersegment Eliminations [Member] | |||||
Segment Information for our Reportable Segments | |||||
Revenues | (178) | (100) | (481) | (316) | |
Cost of sales: | |||||
Cost of materials and other | (177) | (100) | (480) | (314) | |
LCM inventory valuation adjustment | 0 | 0 | |||
Operating expenses (excluding depreciation and amortization expense reflected below) | (1) | 0 | (1) | 0 | |
Depreciation and amortization expense | 0 | 0 | 0 | 0 | |
Total cost of sales | (178) | (100) | (481) | (314) | |
Other operating expenses | 0 | 0 | 0 | 0 | |
Refining [Member] | |||||
Segment Information for our Reportable Segments | |||||
Revenues | 27,989 | 14,727 | 73,426 | 45,327 | |
Refining [Member] | Operating Segments [Member] | |||||
Segment Information for our Reportable Segments | |||||
Revenues | 27,992 | 14,729 | 73,433 | 45,333 | |
Cost of sales: | |||||
Cost of materials and other | 25,395 | 14,103 | 67,417 | 41,769 | |
LCM inventory valuation adjustment | (296) | (19) | |||
Operating expenses (excluding depreciation and amortization expense reflected below) | 1,195 | 989 | 3,730 | 2,912 | |
Depreciation and amortization expense | 549 | 538 | 1,626 | 1,607 | |
Total cost of sales | 27,139 | 15,334 | 72,773 | 46,269 | |
Other operating expenses | 18 | 24 | 68 | 29 | |
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) | 835 | (629) | 592 | (965) | |
Refining [Member] | Intersegment Eliminations [Member] | |||||
Segment Information for our Reportable Segments | |||||
Revenues | 3 | 2 | 7 | 6 | |
Renewable Diesel [Member] | |||||
Segment Information for our Reportable Segments | |||||
Revenues | 342 | 305 | 1,190 | 850 | |
Renewable Diesel [Member] | Operating Segments [Member] | |||||
Segment Information for our Reportable Segments | |||||
Revenues | 402 | 345 | 1,405 | 1,000 | |
Cost of sales: | |||||
Cost of materials and other | 256 | 128 | 724 | 393 | |
LCM inventory valuation adjustment | 0 | 0 | |||
Operating expenses (excluding depreciation and amortization expense reflected below) | 26 | 23 | 86 | 63 | |
Depreciation and amortization expense | 11 | 10 | 35 | 33 | |
Total cost of sales | 293 | 161 | 845 | 489 | |
Other operating expenses | 1 | 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) | 108 | 184 | 559 | 511 | |
Renewable Diesel [Member] | Intersegment Eliminations [Member] | |||||
Segment Information for our Reportable Segments | |||||
Revenues | 60 | 40 | 215 | 150 | |
Ethanol [Member] | |||||
Segment Information for our Reportable Segments | |||||
Revenues | 1,189 | 777 | 3,458 | 2,131 | |
Ethanol [Member] | Operating Segments [Member] | |||||
Segment Information for our Reportable Segments | |||||
Revenues | 1,304 | 835 | 3,717 | 2,291 | |
Cost of sales: | |||||
Cost of materials and other | 1,150 | 670 | 3,204 | 1,984 | |
LCM inventory valuation adjustment | (17) | 0 | |||
Operating expenses (excluding depreciation and amortization expense reflected below) | 128 | 105 | 403 | 293 | |
Depreciation and amortization expense | 70 | 54 | 111 | 97 | |
Total cost of sales | 1,348 | 812 | 3,718 | 2,374 | |
Other operating expenses | 0 | 1 | 0 | 1 | |
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) | (44) | 22 | (1) | (84) | |
Ethanol [Member] | Intersegment Eliminations [Member] | |||||
Segment Information for our Reportable Segments | |||||
Revenues | $ 115 | $ 58 | $ 259 | $ 160 | |
[1] | Includes excise taxes on sales by certain of our international operations of $1,610 million and $1,339 million for the three months ended September 30, 2021 and 2020, respectively, and $4,152 million and $3,491 million for the nine months ended September 30, 2021 and 2020, respectively. |
Revenues and Segment Informat_5
Revenues and Segment Information, Disaggregation of Revenue by Product (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Revenue by Segment | |||||
Revenues | [1] | $ 29,520 | $ 15,809 | $ 78,074 | $ 48,308 |
Refining [Member] | |||||
Revenue by Segment | |||||
Revenues | 27,989 | 14,727 | 73,426 | 45,327 | |
Refining [Member] | Gasoline and Blendstocks [Member] | |||||
Revenue by Segment | |||||
Revenues | 13,132 | 7,021 | 34,293 | 19,258 | |
Refining [Member] | Distillates [Member] | |||||
Revenue by Segment | |||||
Revenues | 11,588 | 6,327 | 31,044 | 21,369 | |
Refining [Member] | Other Product Revenues [Member] | |||||
Revenue by Segment | |||||
Revenues | 3,269 | 1,379 | 8,089 | 4,700 | |
Renewable Diesel [Member] | |||||
Revenue by Segment | |||||
Revenues | 342 | 305 | 1,190 | 850 | |
Renewable Diesel [Member] | Renewable Diesel [Member] | |||||
Revenue by Segment | |||||
Revenues | 342 | 305 | 1,190 | 850 | |
Ethanol [Member] | |||||
Revenue by Segment | |||||
Revenues | 1,189 | 777 | 3,458 | 2,131 | |
Ethanol [Member] | Ethanol [Member] | |||||
Revenue by Segment | |||||
Revenues | 948 | 624 | 2,683 | 1,685 | |
Ethanol [Member] | Distillers Grains [Member] | |||||
Revenue by Segment | |||||
Revenues | $ 241 | $ 153 | $ 775 | $ 446 | |
[1] | Includes excise taxes on sales by certain of our international operations of $1,610 million and $1,339 million for the three months ended September 30, 2021 and 2020, respectively, and $4,152 million and $3,491 million for the nine months ended September 30, 2021 and 2020, respectively. |
Revenues and Segment Informat_6
Revenues and Segment Information, Assets (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Total Assets by Reportable Segment | ||
Reportable segment assets | $ 54,691 | $ 51,774 |
Corporate and Eliminations [Member] | ||
Total Assets by Reportable Segment | ||
Reportable segment assets | 4,507 | 5,448 |
Refining [Member] | Operating Segments [Member] | ||
Total Assets by Reportable Segment | ||
Reportable segment assets | 45,975 | 42,939 |
Renewable Diesel [Member] | Operating Segments [Member] | ||
Total Assets by Reportable Segment | ||
Reportable segment assets | 2,588 | 1,659 |
Ethanol [Member] | Operating Segments [Member] | ||
Total Assets by Reportable Segment | ||
Reportable segment assets | $ 1,621 | $ 1,728 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | ||
Decrease (increase) in current assets: | |||
Receivables, net | $ (2,643) | $ 3,229 | |
Inventories | (232) | 1,577 | |
Prepaid expenses and other | 28 | 70 | |
Increase (decrease) in current liabilities: | |||
Accounts payable | 3,624 | (4,893) | |
Accrued expenses | 538 | 17 | |
Taxes other than income taxes payable | 200 | (24) | |
Income taxes payable | 115 | (208) | |
Changes in current assets and current liabilities | 1,630 | (232) | |
Cash Flows Related to Interest and Income Taxes | |||
Interest paid in excess of amount capitalized, including interest on finance leases | 397 | 338 | |
Income taxes paid (refunded), net | (876) | 206 | |
Operating cash flows | |||
Operating Leases | 296 | 329 | |
Finance Leases | 53 | 74 | |
Investing cash flows | |||
Operating Leases | 1 | 1 | |
Financing cash flows | |||
Finance Leases | 97 | 51 | |
Changes in lease balances resulting from new and modified leases, Operating Leases | [1] | 366 | 211 |
Changes in lease balances resulting from new and modified leases, Finance Leases | [1] | 93 | 1,506 |
Supplemental Cash Flow Information (Textual) | |||
Proceeds from income tax refunds | $ 962 | ||
Decrease in receivables as a result of decrease in sales volumes and commodity prices | 3,600 | ||
Increase in income taxes receivable | 770 | ||
MVP Terminal [Member] | |||
Financing cash flows | |||
Changes in lease balances resulting from new and modified leases, Finance Leases | 1,400 | ||
Blender's Tax Credit Receivable [Member] | |||
Supplemental Cash Flow Information (Textual) | |||
Collection of blender's tax credit receivable | $ 449 | ||
[1] | Noncash activity for the nine months ended September 30, 2020 primarily included $1.4 billion for a finance lease right-of-use asset and related liability recognized in connection with the terminaling agreement with MVP. |
Fair Value Measurements, Recurr
Fair Value Measurements, Recurring (Details) - Fair Value, Recurring [Member] - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Total gross fair value, assets | $ 885 | $ 498 |
Effect of counterparty netting | (677) | (373) |
Effect of cash collateral netting | (48) | (18) |
Net carrying value on Balance Sheet, assets | 160 | 107 |
Liabilities | ||
Environmental credit obligations | 94 | 96 |
Total gross fair value, liabilities | 840 | 505 |
Effect of counterparty netting | (677) | (373) |
Effect of cash collateral netting | (59) | (32) |
Net carrying value on Balance Sheet, liabilities | 104 | 100 |
Assets Held in Trust [Member] | ||
Assets | ||
Investments of certain benefit plans | 90 | 82 |
Commodity Contracts [Member] | ||
Assets | ||
Derivative contracts | 785 | 403 |
Effect of counterparty netting | (677) | (373) |
Effect of cash collateral netting | (48) | (18) |
Derivative contracts, net assets | 60 | 12 |
Cash collateral received not offset | 0 | 0 |
Liabilities | ||
Derivative contracts | 736 | 405 |
Effect of counterparty netting | (677) | (373) |
Effect of cash collateral netting | (59) | (32) |
Derivative contracts, net liabilities | 0 | 0 |
Cash collateral paid not offset | (55) | (44) |
Physical Purchase Contracts [Member] | ||
Assets | ||
Derivative contracts | 6 | 13 |
Derivative contracts, net assets | 6 | 13 |
Liabilities | ||
Derivative contracts | 5 | |
Derivative contracts, net liabilities | 5 | |
Foreign Currency Contracts [Member] | ||
Assets | ||
Derivative contracts | 4 | |
Derivative contracts, net assets | 4 | |
Liabilities | ||
Derivative contracts | 5 | 4 |
Derivative contracts, net liabilities | 5 | 4 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets | ||
Total gross fair value, assets | 873 | 477 |
Liabilities | ||
Environmental credit obligations | 0 | 0 |
Total gross fair value, liabilities | 741 | 409 |
Fair Value, Inputs, Level 1 [Member] | Assets Held in Trust [Member] | ||
Assets | ||
Investments of certain benefit plans | 84 | 74 |
Fair Value, Inputs, Level 1 [Member] | Commodity Contracts [Member] | ||
Assets | ||
Derivative contracts | 785 | 403 |
Liabilities | ||
Derivative contracts | 736 | 405 |
Fair Value, Inputs, Level 1 [Member] | Physical Purchase Contracts [Member] | ||
Assets | ||
Derivative contracts | 0 | 0 |
Liabilities | ||
Derivative contracts | 0 | |
Fair Value, Inputs, Level 1 [Member] | Foreign Currency Contracts [Member] | ||
Assets | ||
Derivative contracts | 4 | |
Liabilities | ||
Derivative contracts | 5 | 4 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets | ||
Total gross fair value, assets | 6 | 13 |
Liabilities | ||
Environmental credit obligations | 94 | 96 |
Total gross fair value, liabilities | 99 | 96 |
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 | 6 | 13 |
Liabilities | ||
Derivative contracts | 5 | |
Fair Value, Inputs, Level 2 [Member] | Foreign Currency Contracts [Member] | ||
Assets | ||
Derivative contracts | 0 | |
Liabilities | ||
Derivative contracts | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets | ||
Total gross fair value, assets | 6 | 8 |
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 | 6 | 8 |
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 | 0 |
Liabilities | ||
Derivative contracts | 0 | |
Fair Value, Inputs, Level 3 [Member] | Foreign Currency Contracts [Member] | ||
Assets | ||
Derivative contracts | 0 | |
Liabilities | ||
Derivative contracts | $ 0 | $ 0 |
Fair Value Measurements, Nonrec
Fair Value Measurements, Nonrecurring (Details) - Fair Value, Nonrecurring [Member] - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Nonrecurring Fair Value Measurements (Textual) | ||
Assets measured at fair value | $ 0 | $ 0 |
Liabilities measured at fair value | $ 0 | $ 0 |
Fair Value Measurements, Other
Fair Value Measurements, Other Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Financial assets: | ||
Cash and cash equivalents, at carrying amount | $ 3,498 | $ 3,313 |
Financial liabilities: | ||
Debt (excluding finance leases), at carrying amount | 12,573 | 13,013 |
Fair Value, Inputs, Level 1 [Member] | ||
Financial assets: | ||
Cash and cash equivalents, at fair value | 3,498 | 3,313 |
Fair Value, Inputs, Level 2 [Member] | ||
Financial liabilities: | ||
Debt (excluding finance leases), at fair value | $ 14,574 | $ 15,103 |
Price Risk Management Activit_3
Price Risk Management Activities (Details) bu in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)MBblsbu | Sep. 30, 2020USD ($) | |
Price Risk Management Activities (Textual) | ||||
Compliance program costs | $ | $ 26,624 | $ 14,801 | $ 70,865 | $ 43,832 |
Environmental Compliance Program Price Risk [Member] | ||||
Price Risk Management Activities (Textual) | ||||
Compliance program costs | $ | 618 | $ 143 | $ 1,600 | $ 391 |
Derivatives Designated as Hedges [Member] | Cash Flow Hedges [Member] | Future, 2021 Maturity [Member] | Long (Purchases) [Member] | Refined Petroleum Products (in thousands of barrels) [Member] | ||||
Volume of Outstanding Contracts | ||||
Nonmonetary notional amount of price risk derivatives, volume | 1,162 | |||
Derivatives Designated as Hedges [Member] | Cash Flow Hedges [Member] | Future, 2021 Maturity [Member] | Short (Sales) [Member] | Refined Petroleum Products (in thousands of barrels) [Member] | ||||
Volume of Outstanding Contracts | ||||
Nonmonetary notional amount of price risk derivatives, volume | 3,400 | |||
Derivatives Designated as Hedges [Member] | Cash Flow Hedges [Member] | Future, 2022 Maturity [Member] | Long (Purchases) [Member] | Refined Petroleum Products (in thousands of barrels) [Member] | ||||
Volume of Outstanding Contracts | ||||
Nonmonetary notional amount of price risk derivatives, volume | 501 | |||
Derivatives Designated as Hedges [Member] | Cash Flow Hedges [Member] | Future, 2022 Maturity [Member] | Short (Sales) [Member] | Refined Petroleum Products (in thousands of barrels) [Member] | ||||
Volume of Outstanding Contracts | ||||
Nonmonetary notional amount of price risk derivatives, volume | 501 | |||
Derivatives Designated as Economic Hedges [Member] | Future, 2021 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 | 63,320 | |||
Derivatives Designated as Economic Hedges [Member] | Future, 2021 Maturity [Member] | Long (Purchases) [Member] | Corn (in thousands of bushels) [Member] | ||||
Volume of Outstanding Contracts | ||||
Nonmonetary notional amount of price risk derivatives, volume | bu | 85,540 | |||
Derivatives Designated as Economic Hedges [Member] | Future, 2021 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 | 61,498 | |||
Derivatives Designated as Economic Hedges [Member] | Future, 2021 Maturity [Member] | Short (Sales) [Member] | Corn (in thousands of bushels) [Member] | ||||
Volume of Outstanding Contracts | ||||
Nonmonetary notional amount of price risk derivatives, volume | bu | 103,295 | |||
Derivatives Designated as Economic Hedges [Member] | Future, 2022 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 | 1,354 | |||
Derivatives Designated as Economic Hedges [Member] | Future, 2022 Maturity [Member] | Long (Purchases) [Member] | Corn (in thousands of bushels) [Member] | ||||
Volume of Outstanding Contracts | ||||
Nonmonetary notional amount of price risk derivatives, volume | bu | 1,615 | |||
Derivatives Designated as Economic Hedges [Member] | Future, 2022 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 | 1,173 | |||
Derivatives Designated as Economic Hedges [Member] | Future, 2022 Maturity [Member] | Short (Sales) [Member] | Corn (in thousands of bushels) [Member] | ||||
Volume of Outstanding Contracts | ||||
Nonmonetary notional amount of price risk derivatives, volume | bu | 6,395 | |||
Derivatives Designated as Economic Hedges [Member] | Physical Contracts, 2021 Maturity [Member] | Long (Purchases) [Member] | Corn (in thousands of bushels) [Member] | ||||
Volume of Outstanding Contracts | ||||
Nonmonetary notional amount of price risk derivatives, volume | bu | 16,441 | |||
Derivatives Designated as Economic Hedges [Member] | Physical Contracts, 2022 Maturity [Member] | Long (Purchases) [Member] | Corn (in thousands of bushels) [Member] | ||||
Volume of Outstanding Contracts | ||||
Nonmonetary notional amount of price risk derivatives, volume | bu | 4,792 | |||
Derivatives Designated as Economic Hedges [Member] | Foreign Exchange Contract, US Dollars [Member] | ||||
Price Risk Management Activities (Textual) | ||||
Monetary notional amount of derivative liabilities | $ | 463 | $ 463 | ||
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 | $ | 1,100 | 1,100 | ||
Derivatives Designated as Economic Hedges [Member] | Foreign Exchange Contract, Maturity on or Before October 25. 2021 [Member] | ||||
Price Risk Management Activities (Textual) | ||||
Monetary notional amount of derivative liabilities | $ | 425 | 425 | ||
Derivatives Designated as Economic Hedges [Member] | Foreign Exchange Contract, Maturity by December 6, 2021 [Member] | ||||
Price Risk Management Activities (Textual) | ||||
Monetary notional amount of derivative liabilities | $ | $ 1,138 | $ 1,138 |
Price Risk Management Activit_4
Price Risk Management Activities, Hedging Instruments by Consolidated Balance Sheet Location (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Derivatives Designated as Hedging Instruments [Member] | Commodity Contracts [Member] | Receivable, Net [Member] | ||
Fair Values of Derivative Instruments | ||
Derivative asset, fair value, gross asset | $ 18 | $ 4 |
Derivative asset, fair value, gross liability | 41 | 17 |
Derivatives Not Designated as Hedging Instruments [Member] | ||
Fair Values of Derivative Instruments | ||
Derivative asset, fair value, gross asset | 777 | 412 |
Derivative liability, fair value, gross liability | 705 | 392 |
Derivatives Not Designated as Hedging Instruments [Member] | Commodity Contracts [Member] | Receivable, Net [Member] | ||
Fair Values of Derivative Instruments | ||
Derivative asset, fair value, gross asset | 767 | 399 |
Derivative asset, fair value, gross liability | 695 | 388 |
Derivatives Not Designated as Hedging Instruments [Member] | Physical Purchase Contracts [Member] | Inventories [Member] | ||
Fair Values of Derivative Instruments | ||
Derivative asset, fair value, gross asset | 6 | 13 |
Derivative asset, fair value, gross liability | 5 | 0 |
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 | 4 | 0 |
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 | $ 5 | $ 4 |
Price Risk Management Activit_5
Price Risk Management Activities, Effect of Derivative Instruments on Income and Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Commodity Contracts [Member] | ||||
Effect of Derivative Instruments on Income | ||||
Gain (loss) recognized in other comprehensive income (loss) on derivatives | $ (21) | $ 2 | $ (52) | $ 52 |
Commodity Contracts [Member] | Revenues [Member] | ||||
Effect of Derivative Instruments on Income | ||||
Gain (loss) reclassified from accumulated other comprehensive loss into income | (3) | (3) | (37) | 42 |
Commodity Contracts [Member] | Revenues [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||||
Effect of Derivative Instruments on Income | ||||
Gain (loss) recognized in income on derivatives | (7) | (4) | 13 | (3) |
Commodity Contracts [Member] | Cost of Materials and Other [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||||
Effect of Derivative Instruments on Income | ||||
Gain (loss) recognized in income on derivatives | 6 | 118 | (51) | 106 |
Commodity Contracts [Member] | Operating Expenses (Excluding Depreciation and Amortization Expense) [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||||
Effect of Derivative Instruments on Income | ||||
Gain (loss) recognized in income on derivatives | (1) | 0 | 2 | 2 |
Foreign Currency Contracts [Member] | Cost of Materials and Other [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||||
Effect of Derivative Instruments on Income | ||||
Gain (loss) recognized in income on derivatives | 19 | (6) | 17 | 43 |
Foreign Currency Contracts [Member] | Other Income, Net [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||||
Effect of Derivative Instruments on Income | ||||
Gain (loss) recognized in income on derivatives | $ (28) | $ 56 | $ 55 | $ (49) |