Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 22, 2022 | |
Cover [Abstract] | ||
Document type | 10-Q | |
Document quarterly report | true | |
Document period end date | Mar. 31, 2022 | |
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 | 408,096,416 | |
Entity central index key | 0001035002 | |
Amendment flag | false | |
Document fiscal year focus | 2022 | |
Document fiscal period focus | Q1 | |
Current fiscal year end date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 2,638 | $ 4,122 |
Receivables, net | 13,080 | 10,378 |
Inventories | 7,174 | 6,265 |
Prepaid expenses and other | 421 | 400 |
Total current assets | 23,313 | 21,165 |
Property, plant, and equipment, at cost | 49,488 | 49,072 |
Accumulated depreciation | (18,612) | (18,225) |
Property, plant, and equipment, net | 30,876 | 30,847 |
Deferred charges and other assets, net | 6,213 | 5,876 |
Total assets | 60,402 | 57,888 |
Current liabilities: | ||
Current portion of debt and finance lease obligations | 1,295 | 1,264 |
Accounts payable | 15,236 | 12,495 |
Accrued expenses | 1,140 | 1,253 |
Taxes other than income taxes payable | 1,482 | 1,461 |
Income taxes payable | 632 | 378 |
Total current liabilities | 19,785 | 16,851 |
Debt and finance lease obligations, less current portion | 11,866 | 12,606 |
Deferred income tax liabilities | 4,971 | 5,210 |
Other long-term liabilities | 3,370 | 3,404 |
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 | 6,832 | 6,827 |
Treasury stock, at cost; 265,399,517 and 264,305,955 common shares | (15,794) | (15,677) |
Retained earnings | 28,785 | 28,281 |
Accumulated other comprehensive loss | (1,009) | (1,008) |
Total Valero Energy Corporation stockholders’ equity | 18,821 | 18,430 |
Noncontrolling interests | 1,589 | 1,387 |
Total equity | 20,410 | 19,817 |
Total liabilities and equity | $ 60,402 | $ 57,888 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
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 | 265,399,517 | 264,305,955 |
Consolidated Statements of Inco
Consolidated Statements of Income (unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Revenues | [1] | $ 38,542 | $ 20,806 |
Cost of sales: | |||
Cost of materials and other | [2] | 34,949 | 18,992 |
Operating expenses (excluding depreciation and amortization expense reflected below) | 1,379 | 1,656 | |
Depreciation and amortization expense | 595 | 566 | |
Total cost of sales | 36,923 | 21,214 | |
Other operating expenses | 19 | 38 | |
General and administrative expenses (excluding depreciation and amortization expense reflected below) | 205 | 208 | |
Depreciation and amortization expense | 11 | 12 | |
Operating income (loss) | 1,384 | (666) | |
Other income (expense), net | (20) | 45 | |
Interest and debt expense, net of capitalized interest | (145) | (149) | |
Income (loss) before income tax expense (benefit) | 1,219 | (770) | |
Income tax expense (benefit) | 252 | (148) | |
Net income (loss) | 967 | (622) | |
Less: Net income attributable to noncontrolling interests | 62 | 82 | |
Net income (loss) attributable to Valero Energy Corporation stockholders | $ 905 | $ (704) | |
Earnings (loss) per common share (in dollars per share) | $ 2.21 | $ (1.73) | |
Weighted-average common shares outstanding (in shares) | 408 | 407 | |
Earnings (loss) per common share – assuming dilution (in dollars per share) | $ 2.21 | $ (1.73) | |
Weighted-average common shares outstanding – assuming dilution (in shares) | 408 | 407 | |
Supplemental information: | |||
Includes excise taxes on sales by certain of our foreign operations | $ 1,423 | $ 1,120 | |
[1] | Includes excise taxes on sales by certain of our foreign operations of $1,423 million and $1,120 million for the three months ended March 31, 2022 and 2021, respectively | ||
[2] | Cost of materials and other for our Renewable Diesel segment is net of the blender’s tax credit on qualified fuel mixtures of $156 million and $79 million for the three months ended March 31, 2022 and 2021, respectively. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net income (loss) | $ 967 | $ (622) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | 13 | 76 |
Net gain on pension and other postretirement benefits | 8 | 15 |
Net gain (loss) on cash flow hedges | (45) | 10 |
Other comprehensive income (loss) before income tax expense | (24) | 101 |
Income tax expense related to items of other comprehensive income (loss) | 0 | 7 |
Other comprehensive income (loss) | (24) | 94 |
Comprehensive income (loss) | 943 | (528) |
Less: Comprehensive income attributable to noncontrolling interests | 39 | 87 |
Comprehensive income (loss) attributable to Valero Energy Corporation stockholders | $ 904 | $ (615) |
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, 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) | (622) | (704) | (704) | 82 | ||||
Dividends on common stock | (400) | (400) | (400) | |||||
Stock-based compensation expense | 28 | 28 | 28 | |||||
Transactions in connection with stock-based compensation plans | (13) | (13) | (32) | 19 | ||||
Distributions to noncontrolling interests | (2) | (2) | ||||||
Other comprehensive income (loss) | 94 | 89 | 89 | 5 | ||||
Balance as of end of period at Mar. 31, 2021 | 18,727 | 17,801 | 7 | 6,810 | (15,700) | 27,849 | (1,165) | 926 |
Balance as of beginning of period at Dec. 31, 2021 | 19,817 | 18,430 | 7 | 6,827 | (15,677) | 28,281 | (1,008) | 1,387 |
Increase (Decrease) in Stockholders' Equity Roll Forward | ||||||||
Net income (loss) | 967 | 905 | 905 | 62 | ||||
Dividends on common stock | (401) | (401) | (401) | |||||
Stock-based compensation expense | 32 | 32 | 32 | |||||
Transactions in connection with stock-based compensation plans | (18) | (18) | (27) | 9 | ||||
Open market stock purchases | (126) | (126) | (126) | |||||
Contributions from noncontrolling interests | 165 | 165 | ||||||
Distributions to noncontrolling interests | (2) | (2) | ||||||
Other comprehensive income (loss) | (24) | (1) | (1) | (23) | ||||
Balance as of end of period at Mar. 31, 2022 | $ 20,410 | $ 18,821 | $ 7 | $ 6,832 | $ (15,794) | $ 28,785 | $ (1,009) | $ 1,589 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Common stock dividends: | ||
Dividends on common stock (in dollars per share) | $ 0.98 | $ 0.98 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 967 | $ (622) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization expense | 606 | 578 |
Loss on early retirement of debt | 50 | 0 |
Deferred income tax benefit | (234) | (239) |
Changes in current assets and current liabilities | (722) | 184 |
Changes in deferred charges and credits and other operating activities, net | (79) | 47 |
Net cash provided by (used in) operating activities | 588 | (52) |
Cash flows from investing activities: | ||
Investments in nonconsolidated joint ventures | 0 | (12) |
Other investing activities, net | 2 | 2 |
Net cash used in investing activities | (841) | (580) |
Cash flows from financing activities: | ||
Premiums on early retirement of debt | (48) | 0 |
Purchases of common stock for treasury | (144) | (14) |
Common stock dividend payments | (401) | (400) |
Contributions from noncontrolling interests | 165 | 0 |
Other financing activities, net | (10) | (1) |
Net cash used in financing activities | (1,228) | (439) |
Effect of foreign exchange rate changes on cash | (3) | 12 |
Net decrease in cash and cash equivalents | (1,484) | (1,059) |
Cash and cash equivalents at beginning of period | 4,122 | 3,313 |
Cash and cash equivalents at end of period | 2,638 | 2,254 |
Excluding Variable Interest Entities (VIEs) [Member] | ||
Cash flows from investing activities: | ||
Capital expenditures | (152) | (160) |
Deferred turnaround and catalyst cost expenditures | (453) | (230) |
Cash flows from financing activities: | ||
Proceeds from debt issuances and borrowings | 939 | 0 |
Repayments of debt and finance lease obligations | (1,738) | (31) |
Diamond Green Diesel Holdings LLC (DGD) [Member] | ||
Cash flows from investing activities: | ||
Capital expenditures | (219) | (153) |
Deferred turnaround and catalyst cost expenditures | (6) | (1) |
Cash flows from financing activities: | ||
Proceeds from debt issuances and borrowings | 99 | 0 |
Repayments of debt and finance lease obligations | (102) | 0 |
Other VIEs [Member] | ||
Cash flows from investing activities: | ||
Capital expenditures | (13) | (26) |
Cash flows from financing activities: | ||
Proceeds from debt issuances and borrowings | 28 | 8 |
Repayments of debt and finance lease obligations | $ (16) | $ (1) |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
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, 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 GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation of our results for the three months ended March 31, 2022 have been included. All such adjustments are of a normal recurring nature unless disclosed otherwise. Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. 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, 2021. The balance sheet as of December 31, 2021 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, 2021. Significant Accounting Policy Use of Estimates The preparation of financial statements in conformity with 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. |
Uncertainties
Uncertainties | 3 Months Ended |
Mar. 31, 2022 | |
Unusual or Infrequent Items, or Both [Abstract] | |
UNCERTAINTIES | 2. UNCERTAINTIES Developments with respect to the uncertainties described below are occurring at a rapid pace and cannot be predicted. Their overall economic impact and resulting impact on us also cannot be predicted with certainty at this time. However, we are proactively responding to and actively monitoring the known impacts of the Russia-Ukraine conflict and the COVID-19 pandemic on our business, to the extent practicable, and we will strive to continue to do so, but there can be no assurance that our response or other measures we may take will be fully effective. Russia-Ukraine Conflict In late February 2022, Russia began an invasion and military attack on Ukraine. This has resulted in many countries, including the U.S., imposing economic and financial sanctions on Russia and providing humanitarian and military aid to Ukraine. In addition, on March 8, 2022, the U.S. presidential administration issued an Executive Order that, among other matters, banned the import of Russian crude oil and other petroleum and energy products to the U.S. The ban on Russian energy imports took effect immediately, but companies were granted (through issuance of a General License published by the U.S. Office of Foreign Assets Control (OFAC)) 45 days to import petroleum products secured under pre-existing contracts. As allowed by OFAC’s General License, we took delivery of certain feedstocks (procured under contracts entered into prior to the invasion) before the General License’s expiration on April 22, 2022. We currently do not anticipate any significant future feedstock sourcing disruptions resulting from the U.S. ban on Russian crude oil and other petroleum and energy product imports, as we obtain crude oil and other feedstocks from many other sources. The conflict and responsive actions taken by the U.S. and other countries have created uncertainty for both domestic and international financial and commodity markets. Crude oil and consumer fuel prices significantly increased in March 2022 and remain volatile, as change in trade flows in Russian crude oil, other feedstocks, and energy products have impacted the global supply markets. Also, the continued increases in fuel prices have the potential to negatively impact the demand for our products. Thus, the implications of the Russia-Ukraine conflict on our financial position and results of operations remain uncertain. Impact of the COVID-19 Pandemic 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. Although we have continued to experience improvements in our business, compared to the significant negative effects from the pandemic in 2020, the implications of the pandemic on our financial position and results of operations remain uncertain. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 3. INVENTORIES Inventories consisted of the following (in millions): March 31, December 31, Refinery feedstocks $ 2,068 $ 1,995 Refined petroleum products and blendstocks 4,199 3,567 Renewable diesel feedstocks and products 245 135 Ethanol feedstocks and products 364 273 Materials and supplies 298 295 Inventories $ 7,174 $ 6,265 As of March 31, 2022 and December 31, 2021, the replacement cost (market value) of last-in, first-out (LIFO) inventories exceeded their LIFO carrying amounts by $9.3 billion and $5.2 billion, respectively. Our non-LIFO inventories accounted for $1.6 billion and $1.4 billion of our total inventories as of March 31, 2022 and December 31, 2021, respectively. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | 4. DEBT Public Debt In February 2022, we issued $650 million of 4.000 percent Senior Notes due June 1, 2052. Proceeds from this debt issuance totaled $639 million before deducting the underwriting discount and other debt issuance costs. The proceeds and cash on hand were used to repurchase and retire the following notes in connection with cash tender offers that we publicly announced and completed in February 2022 (in millions): Debt Repurchased and Retired Principal 3.65% Senior Notes due 2025 $ 72 2.850% Senior Notes due 2025 507 4.375% VLP Senior Notes due 2026 168 3.400% Senior Notes due 2026 653 Total $ 1,400 In connection with the early debt retirement activity described above, we recognized a charge of $50 million in “other income (expense), net” primarily comprised of $48 million of premiums paid. During the three months ended March 31, 2021, there was no issuance or redemption activity related to our public debt. 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): March 31, 2022 Facility Maturity Date Outstanding Letters of Credit Availability Committed facilities: Valero Revolver $ 4,000 March 2024 $ — $ 615 $ 3,385 Canadian Revolver C$ 150 November 2022 C$ — C$ 5 C$ 145 Accounts receivable sales facility $ 1,300 July 2022 $ — n/a $ 1,300 Letter of credit facility $ 50 November 2022 n/a $ — $ 50 Committed facilities of VIEs (b): DGD Revolver (c) $ 400 March 2024 $ 100 $ 15 $ 285 DGD Loan Agreement (d) $ 25 April 2023 $ 25 n/a $ — IEnova Revolver (e) $ 830 February 2028 $ 692 n/a $ 138 Uncommitted facilities: Letter of credit facilities n/a n/a n/a $ 834 n/a ________________________ (a) Letters of credit issued as of March 31, 2022 expire at various times in 2022 through 2023. (b) Creditors of the VIEs do not have recourse against us. (c) The variable interest rate on the DGD Revolver was 2.140 percent and 1.860 percent as of March 31, 2022 and December 31, 2021, respectively. (d) In March 2022, the maturity date of this facility was extended to April 2023. The amounts shown for this facility represent the facility amount available from, and borrowings outstanding to, the noncontrolling member as any transactions between DGD and us under this facility are eliminated in consolidation. The variable interest rate on the DGD Loan Agreement was 2.735 percent and 2.603 percent as of March 31, 2022 and December 31, 2021, respectively. (e) The variable interest rate on the IEnova Revolver was 3.864 percent and 3.781 percent as of March 31, 2022 and December 31, 2021, respectively. Activity under our credit facilities was as follows (in millions): Three Months Ended 2022 2021 Borrowings: Accounts receivable sales facility $ 300 $ — DGD Revolver 99 — IEnova Revolver 28 8 Repayments: Accounts receivable sales facility (300) — DGD Revolver (99) — IEnova Revolver (15) — Other Disclosures “Interest and debt expense, net of capitalized interest” is comprised as follows (in millions): Three Months Ended 2022 2021 Interest and debt expense $ 157 $ 164 Less: Capitalized interest 12 15 Interest and debt expense, net of capitalized interest $ 145 $ 149 |
Equity
Equity | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
EQUITY | 5. EQUITY Treasury Stock We purchase shares of our outstanding common stock as authorized under our stock purchase program and with respect to our employee stock-based compensation plans. During the three months ended March 31, 2022, we made open market purchases of 1,334,550 shares for $126 million in connection with our stock purchase program. No open market purchases were made during the three months ended March 31, 2021. As of March 31, 2022, we had $1.2 billion remaining available for purchase under our stock purchase program, which has no expiration date. Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss by component, net of tax, were as follows (in millions): Three Months Ended March 31, 2022 2021 Foreign Defined Gains Total Foreign Defined Gains Total Balance as of beginning of period $ (562) $ (441) $ (5) $ (1,008) $ (515) $ (737) $ (2) $ (1,254) Other comprehensive income (loss) before reclassifications 13 (3) (64) (54) 76 1 (5) 72 Amounts reclassified from accumulated other comprehensive loss — 7 46 53 — 8 9 17 Other comprehensive income (loss) 13 4 (18) (1) 76 9 4 89 Balance as of end of period $ (549) $ (437) $ (23) $ (1,009) $ (439) $ (728) $ 2 $ (1,165) |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | 6. 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 March 31, 2022, the significant consolidated VIEs included: • DGD, a joint venture with a subsidiary of Darling Ingredients Inc. that owns and operates a plant that processes waste and renewable feedstocks (predominately animal fats, used cooking oils, and inedible distillers corn oils) into renewable diesel; and • Central Mexico Terminals, a collective group of three subsidiaries of Infraestructura Energetica Nova, S.A.P.I. de C.V. (IEnova), which is a Mexican company and indirect 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 the consolidated VIEs can only be used to settle their own obligations and the creditors of the consolidated VIEs have no recourse to our other assets. We generally do not provide financial guarantees to the VIEs. Although we have provided credit facilities to some of the 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 the 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 the consolidated VIEs, which are included in our balance sheets (in millions): DGD Central Other Total March 31, 2022 Assets Cash and cash equivalents $ 142 $ — $ 15 $ 157 Other current assets 702 11 17 730 Property, plant, and equipment, net 2,854 659 92 3,605 Liabilities Current liabilities, including current portion of debt and finance lease obligations $ 470 $ 716 $ 8 $ 1,194 Debt and finance lease obligations, less current portion 261 — 19 280 DGD Central Other Total December 31, 2021 Assets Cash and cash equivalents $ 21 $ — $ 15 $ 36 Other current assets 558 10 13 581 Property, plant, and equipment, net 2,629 676 91 3,396 Liabilities Current liabilities, including current portion of debt and finance lease obligations $ 398 $ 729 $ 9 $ 1,136 Debt and finance lease obligations, less current portion 264 — 20 284 Nonconsolidated VIEs We hold variable interests in VIEs that have not been consolidated because we are not considered the primary beneficiary. These nonconsolidated VIEs are not material to our financial position or results of operations and are accounted for as equity investments. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | 7. 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 2022 2021 2022 2021 Three months ended March 31 Service cost $ 38 $ 40 $ 2 $ 2 Interest cost 21 18 2 2 Expected return on plan assets (48) (48) — — Amortization of: Net actuarial loss 13 20 — — Prior service credit (4) (4) (1) (2) Net periodic benefit cost $ 20 $ 26 $ 3 $ 2 The components of net periodic benefit cost other than the service cost component (i.e., the non-service cost components) are included in “other income (expense), net.” |
Earnings (Loss) Per Common Shar
Earnings (Loss) Per Common Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER COMMON SHARE | 8. 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 2022 2021 Earnings (loss) per common share: Net income (loss) attributable to Valero stockholders $ 905 $ (704) Less: Income allocated to participating securities 3 1 Net income (loss) available to common stockholders $ 902 $ (705) Weighted-average common shares outstanding 408 407 Earnings (loss) per common share $ 2.21 $ (1.73) Earnings (loss) per common share – assuming dilution: Net income (loss) attributable to Valero stockholders $ 905 $ (704) Less: Income allocated to participating securities 3 1 Net income (loss) available to common stockholders $ 902 $ (705) Weighted-average common shares outstanding 408 407 Effect of dilutive securities — — Weighted-average common shares outstanding – assuming dilution 408 407 Earnings (loss) per common share – assuming dilution $ 2.21 $ (1.73) Participating securities include restricted stock and performance awards granted under our 2020 Omnibus Stock Incentive Plan (OSIP) or our 2011 OSIP. Dilutive securities include participating securities as well as outstanding stock options. |
Revenues and Segment Informatio
Revenues and Segment Information | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
REVENUES AND SEGMENT INFORMATION | 9. 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): March 31, December 31, Receivables from contracts with customers, included in receivables, net $ 8,395 $ 6,228 Contract liabilities, included in accrued expenses 164 78 During the three months ended March 31, 2022 and 2021, we recognized as revenue $69 million and $37 million that was included in contract liabilities as of December 31, 2021 and 2020, respectively. Remaining Performance Obligations We have spot and term contracts with customers, the majority of which are spot contracts with no remaining performance obligations. We do not disclose remaining performance obligations for contracts that have terms of one year or less. The transaction price for our remaining term contracts includes a fixed component and variable consideration (i.e., a commodity price), both of which are allocated entirely to a wholly unsatisfied promise to transfer a distinct good that forms part of a single performance obligation. The fixed component is not material and the variable consideration is highly uncertain. Therefore, as of March 31, 2022, 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 activities to market our refined petroleum products, and the 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, a consolidated joint venture as discussed in Note 6, and the associated activities to market renewable diesel. 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 and the associated activities to market our ethanol and co-products. 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 March 31, 2022 Revenues: Revenues from external customers $ 36,813 $ 595 $ 1,134 $ — $ 38,542 Intersegment revenues 4 386 127 (517) — Total revenues 36,817 981 1,261 (517) 38,542 Cost of sales: Cost of materials and other (a) 33,606 755 1,104 (516) 34,949 Operating expenses (excluding depreciation and amortization expense reflected below) 1,193 51 135 — 1,379 Depreciation and amortization expense 549 26 20 — 595 Total cost of sales 35,348 832 1,259 (516) 36,923 Other operating expenses 18 — 1 — 19 General and administrative expenses (excluding depreciation and amortization expense reflected below) — — — 205 205 Depreciation and amortization expense — — — 11 11 Operating income by segment $ 1,451 $ 149 $ 1 $ (217) $ 1,384 Three months ended March 31, 2021 Revenues: Revenues from external customers $ 19,469 $ 352 $ 985 $ — $ 20,806 Intersegment revenues 3 79 60 (142) — Total revenues 19,472 431 1,045 (142) 20,806 Cost of sales: Cost of materials and other (a) 18,022 187 924 (141) 18,992 Operating expenses (excluding depreciation and amortization expense reflected below) 1,471 29 156 — 1,656 Depreciation and amortization expense 533 12 21 — 566 Total cost of sales 20,026 228 1,101 (141) 21,214 Other operating expenses 38 — — — 38 General and administrative expenses (excluding depreciation and amortization expense reflected below) — — — 208 208 Depreciation and amortization expense — — — 12 12 Operating income (loss) by segment $ (592) $ 203 $ (56) $ (221) $ (666) ________________________ (a) Cost of materials and other for our Renewable Diesel segment is net of the blender’s tax credit on qualified fuel mixtures of $156 million and $79 million for the three months ended March 31, 2022 and 2021, respectively. The following table provides a disaggregation of revenues from external customers for our principal products by reportable segment (in millions): Three Months Ended 2022 2021 Refining: Gasolines and blendstocks $ 15,560 $ 8,729 Distillates 17,444 8,581 Other product revenues 3,809 2,159 Total refining revenues 36,813 19,469 Renewable Diesel: Renewable diesel 595 352 Ethanol: Ethanol 875 752 Distillers grains 259 233 Total ethanol revenues 1,134 985 Revenues $ 38,542 $ 20,806 Total assets by reportable segment were as follows (in millions): March 31, December 31, Refining $ 51,071 $ 47,365 Renewable Diesel 3,933 3,437 Ethanol 1,780 1,812 Corporate and eliminations 3,618 5,274 Total assets $ 60,402 $ 57,888 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | 10. SUPPLEMENTAL CASH FLOW INFORMATION In order to determine net cash provided by (used in) operating activities, net income (loss) is adjusted by, among other things, changes in current assets and current liabilities as follows (in millions): Three Months Ended 2022 2021 Decrease (increase) in current assets: Receivables, net $ (2,653) $ (2,946) Inventories (940) 175 Prepaid expenses and other (77) (24) Increase (decrease) in current liabilities: Accounts payable 2,744 2,992 Accrued expenses (120) 105 Taxes other than income taxes payable 36 (144) Income taxes payable 288 26 Changes in current assets and current liabilities $ (722) $ 184 Changes in current assets and current liabilities for the three months ended March 31, 2022 were primarily due to the following: • The increase in receivables was primarily due to an increase in refined petroleum product prices in March 2022 compared to December 2021; • The increase in inventories was primarily due to an increase in inventory unit prices and higher inventory levels in March 2022 compared to December 2021; and • The increase in accounts payable was due to an increase in crude oil and other feedstock prices in March 2022 compared to December 2021, partially offset by a decrease in crude oil and other feedstock volumes purchased. Changes in current assets and current liabilities for the three months ended March 31, 2021 were primarily due to the following: • The increase in receivables was primarily due to an increase in refined petroleum product prices in March 2021 compared to December 2020 combined with an increase in sales volumes; • The decrease in inventories was primarily due to lower inventory levels in March 2021 compared to December 2020; and • The increase in accounts payable was due to an increase in crude oil and other feedstock prices in March 2021 compared to December 2020 combined with an increase in crude oil and other feedstock volumes purchased. Cash flows related to interest and income taxes were as follows (in millions): Three Months Ended 2022 2021 Interest paid in excess of amount capitalized, including interest on finance leases $ 93 $ 103 Income taxes paid, net 204 36 Supplemental cash flow information related to our operating and finance leases was as follows (in millions): Three Months Ended March 31, 2022 2021 Operating Finance Operating Finance Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows $ 97 $ 20 $ 100 $ 18 Financing cash flows — 41 — 31 Changes in lease balances resulting from new and modified leases 79 100 72 7 There were no significant noncash investing and financing activities during the three months ended March 31, 2022 and 2021, except as noted in the table above. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 11. 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 March 31, 2022 and December 31, 2021. 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. March 31, 2022 Total Effect of Effect of Net Cash Fair Value Hierarchy Level 1 Level 2 Level 3 Assets Commodity derivative contracts $ 1,815 $ — $ — $ 1,815 $ (1,811) $ — $ 4 $ — Physical purchase contracts — 24 — 24 n/a n/a 24 n/a Foreign currency contracts 48 — — 48 n/a n/a 48 n/a Investments of certain benefit plans 79 — 6 85 n/a n/a 85 n/a Total $ 1,942 $ 24 $ 6 $ 1,972 $ (1,811) $ — $ 161 Liabilities Commodity derivative contracts $ 2,423 $ — $ — $ 2,423 $ (1,811) $ (612) $ — $ (194) Blending program obligations — 18 — 18 n/a n/a 18 n/a Physical purchase contracts — 2 — 2 n/a n/a 2 n/a Foreign currency contracts 7 — — 7 n/a n/a 7 n/a Total $ 2,430 $ 20 $ — $ 2,450 $ (1,811) $ (612) $ 27 December 31, 2021 Total Effect of Effect of Net Cash Fair Value Hierarchy Level 1 Level 2 Level 3 Assets Commodity derivative contracts $ 522 $ — $ — $ 522 $ (444) $ (15) $ 63 $ — Physical purchase contracts — 4 — 4 n/a n/a 4 n/a Foreign currency contracts 1 — — 1 n/a n/a 1 n/a Investments of certain benefit plans 83 — 6 89 n/a n/a 89 n/a Total $ 606 $ 4 $ 6 $ 616 $ (444) $ (15) $ 157 Liabilities Commodity derivative contracts $ 472 $ — $ — $ 472 $ (444) $ (28) $ — $ (41) Blending program obligations — 57 — 57 n/a n/a 57 n/a Physical purchase contracts — 5 — 5 n/a n/a 5 n/a Foreign currency contracts 10 — — 10 n/a n/a 10 n/a Total $ 482 $ 62 $ — $ 544 $ (444) $ (28) $ 72 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 12. 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 foreign 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. • Blending program obligations represent our liability for the purchase of compliance credits needed to satisfy our blending obligations under various governmental and regulatory blending programs, such as the U.S. Environmental Protection Agency’s (EPA) Renewable Fuel Standard (RFS), the California Low Carbon Fuel Standard, and similar programs in other jurisdictions in which we operate (collectively, the Renewable and Low-Carbon Fuel Blending Programs). The blending program 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 March 31, 2022 and December 31, 2021. 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): March 31, 2022 December 31, 2021 Fair Value Carrying Fair Carrying Fair Financial assets: Cash and cash equivalents Level 1 $ 2,638 $ 2,638 $ 4,122 $ 4,122 Financial liabilities: Debt (excluding finance lease obligations) Level 2 11,195 11,952 11,950 13,668 |
Price Risk Management Activitie
Price Risk Management Activities | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
PRICE RISK MANAGEMENT ACTIVITIES | 12. 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 the Renewable and Low-Carbon Fuel Blending 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 11), 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, waste and renewable feedstocks, and corn), the products we produce, 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 (Board). 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 March 31, 2022, 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 2022 2023 Derivatives designated as cash flow hedges: Refined petroleum products: Futures – long 1,634 — Futures – short 4,617 — Derivatives designated as economic hedges: Crude oil and refined petroleum products: Futures – long 77,765 6 Futures – short 79,740 — Corn: Futures – long 70,295 205 Futures – short 119,175 1,580 Physical contracts – long 46,597 1,391 Foreign Currency Risk We are exposed to exchange rate fluctuations on transactions related to our foreign 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 often use foreign currency contracts. These contracts are not designated as hedging instruments for accounting purposes and therefore are classified as economic hedges. As of March 31, 2022, we had foreign currency contracts to purchase $709 million of U.S. dollars and $3.1 billion of U.S. dollar equivalent Canadian dollars. Of these commitments, $1.8 billion matured on or before April 25, 2022 and the remaining $2.0 billion will mature by June 16, 2022. Renewable and Low-Carbon Fuel Blending Programs Price Risk We are exposed to market risk related to the volatility in the price of credits needed to comply with the Renewable and Low-Carbon Fuel Blending Programs. To manage this risk, we enter into contracts to purchase these credits. Some of these contracts are derivative instruments; however, we elect the normal purchase exception and do not record these contracts at their fair values. The Renewable and Low-Carbon Fuel Blending Programs require us to blend a certain volume of renewable and low-carbon fuels into the petroleum-based transportation fuels we produce in, or import into, the respective jurisdiction to be consumed therein based on annual quotas. To the degree we are unable to blend at the required quotas, we must purchase compliance credits (primarily renewable identification numbers (RINs)). For the three months ended March 31, 2022 and 2021, the cost of meeting our credit obligations under the Renewable and Low-Carbon Fuel Blending Programs was $302 million and $395 million, respectively, which are reflected in cost of materials and other. Fair Values of Derivative Instruments The following tables provide information about the fair values of our derivative instruments as of March 31, 2022 and December 31, 2021 (in millions) and the line items in the balance sheets in which the fair values are reflected. See Note 11 for additional information related to the fair values of our derivative instruments. As indicated in Note 11, 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 March 31, 2022 December 31, 2021 Asset Liability Asset Liability Derivatives designated as hedging instruments: Commodity contracts Receivables, net $ 94 $ 220 $ 3 $ 26 Derivatives not designated as hedging instruments: Commodity contracts Receivables, net $ 1,721 $ 2,203 $ 519 $ 446 Physical purchase contracts Inventories 24 2 4 5 Foreign currency contracts Receivables, net 48 — 1 — Foreign currency contracts Accrued expenses — 7 — 10 Total $ 1,793 $ 2,212 $ 524 $ 461 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. 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 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 2022 2021 Commodity contracts: Loss recognized in other comprehensive income (loss) on derivatives n/a $ (164) $ (13) Loss reclassified from accumulated other comprehensive loss into income Revenues (119) (23) 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 months ended March 31, 2022 and 2021. For the three months ended March 31, 2022 and 2021, 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 March 31, 2022 was immaterial. For the three months ended March 31, 2022 and 2021, 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 months ended March 31, 2022 and 2021 are described in Note 5. 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 2022 2021 Commodity contracts Revenues $ (4) $ 7 Commodity contracts Cost of materials and other (595) (78) Commodity contracts Operating expenses 3 1 Foreign currency contracts Cost of materials and other (2) (8) Foreign currency contracts Other income (expense), net 34 30 |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
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, 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 GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation of our results for the three months ended March 31, 2022 have been included. All such adjustments are of a normal recurring nature unless disclosed otherwise. Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. 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, 2021. The balance sheet as of December 31, 2021 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, 2021. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with 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. |
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 nonconsolidated 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 the Renewable and Low-Carbon Fuel Blending 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 11), 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. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consisted of the following (in millions): March 31, December 31, Refinery feedstocks $ 2,068 $ 1,995 Refined petroleum products and blendstocks 4,199 3,567 Renewable diesel feedstocks and products 245 135 Ethanol feedstocks and products 364 273 Materials and supplies 298 295 Inventories $ 7,174 $ 6,265 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt repurchased and retired | The proceeds and cash on hand were used to repurchase and retire the following notes in connection with cash tender offers that we publicly announced and completed in February 2022 (in millions): Debt Repurchased and Retired Principal 3.65% Senior Notes due 2025 $ 72 2.850% Senior Notes due 2025 507 4.375% VLP Senior Notes due 2026 168 3.400% Senior Notes due 2026 653 Total $ 1,400 |
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): March 31, 2022 Facility Maturity Date Outstanding Letters of Credit Availability Committed facilities: Valero Revolver $ 4,000 March 2024 $ — $ 615 $ 3,385 Canadian Revolver C$ 150 November 2022 C$ — C$ 5 C$ 145 Accounts receivable sales facility $ 1,300 July 2022 $ — n/a $ 1,300 Letter of credit facility $ 50 November 2022 n/a $ — $ 50 Committed facilities of VIEs (b): DGD Revolver (c) $ 400 March 2024 $ 100 $ 15 $ 285 DGD Loan Agreement (d) $ 25 April 2023 $ 25 n/a $ — IEnova Revolver (e) $ 830 February 2028 $ 692 n/a $ 138 Uncommitted facilities: Letter of credit facilities n/a n/a n/a $ 834 n/a ________________________ (a) Letters of credit issued as of March 31, 2022 expire at various times in 2022 through 2023. (b) Creditors of the VIEs do not have recourse against us. (c) The variable interest rate on the DGD Revolver was 2.140 percent and 1.860 percent as of March 31, 2022 and December 31, 2021, respectively. (d) In March 2022, the maturity date of this facility was extended to April 2023. The amounts shown for this facility represent the facility amount available from, and borrowings outstanding to, the noncontrolling member as any transactions between DGD and us under this facility are eliminated in consolidation. The variable interest rate on the DGD Loan Agreement was 2.735 percent and 2.603 percent as of March 31, 2022 and December 31, 2021, respectively. (e) The variable interest rate on the IEnova Revolver was 3.864 percent and 3.781 percent as of March 31, 2022 and December 31, 2021, respectively. Activity under our credit facilities was as follows (in millions): Three Months Ended 2022 2021 Borrowings: Accounts receivable sales facility $ 300 $ — DGD Revolver 99 — IEnova Revolver 28 8 Repayments: Accounts receivable sales facility (300) — DGD Revolver (99) — IEnova Revolver (15) — |
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 2022 2021 Interest and debt expense $ 157 $ 164 Less: Capitalized interest 12 15 Interest and debt expense, net of capitalized interest $ 145 $ 149 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 2021 Foreign Defined Gains Total Foreign Defined Gains Total Balance as of beginning of period $ (562) $ (441) $ (5) $ (1,008) $ (515) $ (737) $ (2) $ (1,254) Other comprehensive income (loss) before reclassifications 13 (3) (64) (54) 76 1 (5) 72 Amounts reclassified from accumulated other comprehensive loss — 7 46 53 — 8 9 17 Other comprehensive income (loss) 13 4 (18) (1) 76 9 4 89 Balance as of end of period $ (549) $ (437) $ (23) $ (1,009) $ (439) $ (728) $ 2 $ (1,165) |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 the consolidated VIEs, which are included in our balance sheets (in millions): DGD Central Other Total March 31, 2022 Assets Cash and cash equivalents $ 142 $ — $ 15 $ 157 Other current assets 702 11 17 730 Property, plant, and equipment, net 2,854 659 92 3,605 Liabilities Current liabilities, including current portion of debt and finance lease obligations $ 470 $ 716 $ 8 $ 1,194 Debt and finance lease obligations, less current portion 261 — 19 280 DGD Central Other Total December 31, 2021 Assets Cash and cash equivalents $ 21 $ — $ 15 $ 36 Other current assets 558 10 13 581 Property, plant, and equipment, net 2,629 676 91 3,396 Liabilities Current liabilities, including current portion of debt and finance lease obligations $ 398 $ 729 $ 9 $ 1,136 Debt and finance lease obligations, less current portion 264 — 20 284 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 2022 2021 2022 2021 Three months ended March 31 Service cost $ 38 $ 40 $ 2 $ 2 Interest cost 21 18 2 2 Expected return on plan assets (48) (48) — — Amortization of: Net actuarial loss 13 20 — — Prior service credit (4) (4) (1) (2) Net periodic benefit cost $ 20 $ 26 $ 3 $ 2 |
Earnings (Loss) Per Common Sh_2
Earnings (Loss) Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 2022 2021 Earnings (loss) per common share: Net income (loss) attributable to Valero stockholders $ 905 $ (704) Less: Income allocated to participating securities 3 1 Net income (loss) available to common stockholders $ 902 $ (705) Weighted-average common shares outstanding 408 407 Earnings (loss) per common share $ 2.21 $ (1.73) Earnings (loss) per common share – assuming dilution: Net income (loss) attributable to Valero stockholders $ 905 $ (704) Less: Income allocated to participating securities 3 1 Net income (loss) available to common stockholders $ 902 $ (705) Weighted-average common shares outstanding 408 407 Effect of dilutive securities — — Weighted-average common shares outstanding – assuming dilution 408 407 Earnings (loss) per common share – assuming dilution $ 2.21 $ (1.73) |
Revenues and Segment Informat_2
Revenues and Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of contract balances | Contract balances were as follows (in millions): March 31, December 31, Receivables from contracts with customers, included in receivables, net $ 8,395 $ 6,228 Contract liabilities, included in accrued expenses 164 78 |
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 March 31, 2022 Revenues: Revenues from external customers $ 36,813 $ 595 $ 1,134 $ — $ 38,542 Intersegment revenues 4 386 127 (517) — Total revenues 36,817 981 1,261 (517) 38,542 Cost of sales: Cost of materials and other (a) 33,606 755 1,104 (516) 34,949 Operating expenses (excluding depreciation and amortization expense reflected below) 1,193 51 135 — 1,379 Depreciation and amortization expense 549 26 20 — 595 Total cost of sales 35,348 832 1,259 (516) 36,923 Other operating expenses 18 — 1 — 19 General and administrative expenses (excluding depreciation and amortization expense reflected below) — — — 205 205 Depreciation and amortization expense — — — 11 11 Operating income by segment $ 1,451 $ 149 $ 1 $ (217) $ 1,384 Three months ended March 31, 2021 Revenues: Revenues from external customers $ 19,469 $ 352 $ 985 $ — $ 20,806 Intersegment revenues 3 79 60 (142) — Total revenues 19,472 431 1,045 (142) 20,806 Cost of sales: Cost of materials and other (a) 18,022 187 924 (141) 18,992 Operating expenses (excluding depreciation and amortization expense reflected below) 1,471 29 156 — 1,656 Depreciation and amortization expense 533 12 21 — 566 Total cost of sales 20,026 228 1,101 (141) 21,214 Other operating expenses 38 — — — 38 General and administrative expenses (excluding depreciation and amortization expense reflected below) — — — 208 208 Depreciation and amortization expense — — — 12 12 Operating income (loss) by segment $ (592) $ 203 $ (56) $ (221) $ (666) ________________________ (a) Cost of materials and other for our Renewable Diesel segment is net of the blender’s tax credit on qualified fuel mixtures of $156 million and $79 million for the three months ended March 31, 2022 and 2021, respectively. The following table provides a disaggregation of revenues from external customers for our principal products by reportable segment (in millions): Three Months Ended 2022 2021 Refining: Gasolines and blendstocks $ 15,560 $ 8,729 Distillates 17,444 8,581 Other product revenues 3,809 2,159 Total refining revenues 36,813 19,469 Renewable Diesel: Renewable diesel 595 352 Ethanol: Ethanol 875 752 Distillers grains 259 233 Total ethanol revenues 1,134 985 Revenues $ 38,542 $ 20,806 Total assets by reportable segment were as follows (in millions): March 31, December 31, Refining $ 51,071 $ 47,365 Renewable Diesel 3,933 3,437 Ethanol 1,780 1,812 Corporate and eliminations 3,618 5,274 Total assets $ 60,402 $ 57,888 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of cash flows, supplemental disclosures | In order to determine net cash provided by (used in) operating activities, net income (loss) is adjusted by, among other things, changes in current assets and current liabilities as follows (in millions): Three Months Ended 2022 2021 Decrease (increase) in current assets: Receivables, net $ (2,653) $ (2,946) Inventories (940) 175 Prepaid expenses and other (77) (24) Increase (decrease) in current liabilities: Accounts payable 2,744 2,992 Accrued expenses (120) 105 Taxes other than income taxes payable 36 (144) Income taxes payable 288 26 Changes in current assets and current liabilities $ (722) $ 184 Cash flows related to interest and income taxes were as follows (in millions): Three Months Ended 2022 2021 Interest paid in excess of amount capitalized, including interest on finance leases $ 93 $ 103 Income taxes paid, net 204 36 Supplemental cash flow information related to our operating and finance leases was as follows (in millions): Three Months Ended March 31, 2022 2021 Operating Finance Operating Finance Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows $ 97 $ 20 $ 100 $ 18 Financing cash flows — 41 — 31 Changes in lease balances resulting from new and modified leases 79 100 72 7 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 and December 31, 2021. 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. March 31, 2022 Total Effect of Effect of Net Cash Fair Value Hierarchy Level 1 Level 2 Level 3 Assets Commodity derivative contracts $ 1,815 $ — $ — $ 1,815 $ (1,811) $ — $ 4 $ — Physical purchase contracts — 24 — 24 n/a n/a 24 n/a Foreign currency contracts 48 — — 48 n/a n/a 48 n/a Investments of certain benefit plans 79 — 6 85 n/a n/a 85 n/a Total $ 1,942 $ 24 $ 6 $ 1,972 $ (1,811) $ — $ 161 Liabilities Commodity derivative contracts $ 2,423 $ — $ — $ 2,423 $ (1,811) $ (612) $ — $ (194) Blending program obligations — 18 — 18 n/a n/a 18 n/a Physical purchase contracts — 2 — 2 n/a n/a 2 n/a Foreign currency contracts 7 — — 7 n/a n/a 7 n/a Total $ 2,430 $ 20 $ — $ 2,450 $ (1,811) $ (612) $ 27 December 31, 2021 Total Effect of Effect of Net Cash Fair Value Hierarchy Level 1 Level 2 Level 3 Assets Commodity derivative contracts $ 522 $ — $ — $ 522 $ (444) $ (15) $ 63 $ — Physical purchase contracts — 4 — 4 n/a n/a 4 n/a Foreign currency contracts 1 — — 1 n/a n/a 1 n/a Investments of certain benefit plans 83 — 6 89 n/a n/a 89 n/a Total $ 606 $ 4 $ 6 $ 616 $ (444) $ (15) $ 157 Liabilities Commodity derivative contracts $ 472 $ — $ — $ 472 $ (444) $ (28) $ — $ (41) Blending program obligations — 57 — 57 n/a n/a 57 n/a Physical purchase contracts — 5 — 5 n/a n/a 5 n/a Foreign currency contracts 10 — — 10 n/a n/a 10 n/a Total $ 482 $ 62 $ — $ 544 $ (444) $ (28) $ 72 |
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): March 31, 2022 December 31, 2021 Fair Value Carrying Fair Carrying Fair Financial assets: Cash and cash equivalents Level 1 $ 2,638 $ 2,638 $ 4,122 $ 4,122 Financial liabilities: Debt (excluding finance lease obligations) Level 2 11,195 11,952 11,950 13,668 |
Price Risk Management Activit_2
Price Risk Management Activities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Risk management activities by type of risk | As of March 31, 2022, 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 2022 2023 Derivatives designated as cash flow hedges: Refined petroleum products: Futures – long 1,634 — Futures – short 4,617 — Derivatives designated as economic hedges: Crude oil and refined petroleum products: Futures – long 77,765 6 Futures – short 79,740 — Corn: Futures – long 70,295 205 Futures – short 119,175 1,580 Physical contracts – long 46,597 1,391 |
Fair values of derivative instruments | The following tables provide information about the fair values of our derivative instruments as of March 31, 2022 and December 31, 2021 (in millions) and the line items in the balance sheets in which the fair values are reflected. See Note 11 for additional information related to the fair values of our derivative instruments. As indicated in Note 11, 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 March 31, 2022 December 31, 2021 Asset Liability Asset Liability Derivatives designated as hedging instruments: Commodity contracts Receivables, net $ 94 $ 220 $ 3 $ 26 Derivatives not designated as hedging instruments: Commodity contracts Receivables, net $ 1,721 $ 2,203 $ 519 $ 446 Physical purchase contracts Inventories 24 2 4 5 Foreign currency contracts Receivables, net 48 — 1 — Foreign currency contracts Accrued expenses — 7 — 10 Total $ 1,793 $ 2,212 $ 524 $ 461 |
Effect of derivative instruments on income and other comprehensive income (loss) | The following table provides information about the 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 2022 2021 Commodity contracts: Loss recognized in other comprehensive income (loss) on derivatives n/a $ (164) $ (13) Loss reclassified from accumulated other comprehensive loss into income Revenues (119) (23) 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 2022 2021 Commodity contracts Revenues $ (4) $ 7 Commodity contracts Cost of materials and other (595) (78) Commodity contracts Operating expenses 3 1 Foreign currency contracts Cost of materials and other (2) (8) Foreign currency contracts Other income (expense), net 34 30 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule of Inventories | ||
Refinery feedstocks | $ 2,068 | $ 1,995 |
Refined petroleum products and blendstocks | 4,199 | 3,567 |
Renewable diesel feedstocks and products | 245 | 135 |
Ethanol feedstocks and products | 364 | 273 |
Materials and supplies | 298 | 295 |
Inventories | 7,174 | 6,265 |
Inventories (Textual) | ||
Excess of market value over carrying amount of LIFO inventories | 9,300 | 5,200 |
Amount of non-LIFO inventory | $ 1,600 | $ 1,400 |
Debt, Public Debt (Details)
Debt, Public Debt (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Feb. 28, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | |
Public Debt (Textual) | |||
Loss on early retirement of debt | $ 50,000,000 | $ 0 | |
Premiums paid | $ 48,000,000 | $ 0 | |
Senior Notes [Member] | |||
Debt Repurchased and Retired | |||
Debt repurchased and retired amount | $ 1,400,000,000 | ||
Public Debt (Textual) | |||
Loss on early retirement of debt | 50,000,000 | ||
Premiums paid | $ 48,000,000 | ||
Senior Notes [Member] | 4.000% Valero Senior Notes Due June 1, 2052 [Member] | |||
Debt Repurchased and Retired | |||
Interest rate of notes (percent) | 4.00% | ||
Public Debt (Textual) | |||
Face amount of long-term debt issuance | $ 650,000,000 | ||
Proceeds from issuance of senior long-term debt | $ 639,000,000 | ||
Senior Notes [Member] | 3.65% Valero Senior Notes Due in 2025 [Member] | |||
Debt Repurchased and Retired | |||
Interest rate of notes (percent) | 3.65% | ||
Debt repurchased and retired amount | $ 72,000,000 | ||
Senior Notes [Member] | 2.850% Valero Senior Notes Due in 2025 [Member] | |||
Debt Repurchased and Retired | |||
Interest rate of notes (percent) | 2.85% | ||
Debt repurchased and retired amount | $ 507,000,000 | ||
Senior Notes [Member] | 4.375% VLP Senior Notes Due in 2026 [Member] | |||
Debt Repurchased and Retired | |||
Interest rate of notes (percent) | 4.375% | ||
Debt repurchased and retired amount | $ 168,000,000 | ||
Senior Notes [Member] | 3.400% Valero Senior Notes Due in 2026 [Member] | |||
Debt Repurchased and Retired | |||
Interest rate of notes (percent) | 3.40% | ||
Debt repurchased and retired amount | $ 653,000,000 |
Debt, Credit Facilities (Detail
Debt, Credit Facilities (Details) | Mar. 31, 2022USD ($) | Mar. 31, 2022CAD ($) | Dec. 31, 2021 | |
Valero Revolver [Member] | Credit Facilities [Member] | ||||
Line of Credit Facility | ||||
Facility amount | $ 4,000,000,000 | |||
Outstanding borrowings, long term | 0 | |||
Availability | 3,385,000,000 | |||
Valero Revolver Letter of Credit [Member] | Credit Facilities [Member] | ||||
Line of Credit Facility | ||||
Letters of credit issued | [1] | 615,000,000 | ||
Canadian Revolver [Member] | Credit Facilities [Member] | ||||
Line of Credit Facility | ||||
Facility amount | $ 150,000,000 | |||
Outstanding borrowings, short-term | 0 | |||
Availability | $ 145,000,000 | |||
Canadian Revolver Letter of Credit [Member] | Credit Facilities [Member] | ||||
Line of Credit Facility | ||||
Letters of credit issued | [1] | 5,000,000 | ||
Accounts Receivable Sales Facility [Member] | Credit Facilities [Member] | ||||
Line of Credit Facility | ||||
Facility amount | 1,300,000,000 | |||
Outstanding borrowings, short-term | 0 | |||
Availability | 1,300,000,000 | |||
Committed Letter of Credit Facility [Member] | Credit Facilities [Member] | ||||
Line of Credit Facility | ||||
Facility amount | 50,000,000 | |||
Letters of credit issued | [1] | 0 | ||
Availability | 50,000,000 | |||
DGD Revolver [Member] | Credit Facilities [Member] | Diamond Green Diesel Holdings LLC [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Line of Credit Facility | ||||
Facility amount | [2],[3] | 400,000,000 | ||
Outstanding borrowings, long term | [2],[3] | 100,000,000 | ||
Availability | [2],[3] | $ 285,000,000 | ||
Interest rate at period end (percent) | 2.14% | 2.14% | 1.86% | |
DGD Revolver Letter Of Credit [Member] | Credit Facilities [Member] | Diamond Green Diesel Holdings LLC [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Line of Credit Facility | ||||
Letters of credit issued | [1],[2],[3] | $ 15,000,000 | ||
DGD Loan Agreement [Member] | Credit Facilities [Member] | Diamond Green Diesel Holdings LLC [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Valero Energy Corporation | ||||
Line of Credit Facility | ||||
Facility amount | [2],[4] | 25,000,000 | ||
Outstanding borrowings, long term | [2],[4] | 25,000,000 | ||
Availability | [2],[4] | $ 0 | ||
Interest rate at period end (percent) | 2.735% | 2.735% | 2.603% | |
IEnova Revolver [Member] | Credit Facilities [Member] | Central Mexico Terminals [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Line of Credit Facility | ||||
Facility amount | [2],[5] | $ 830,000,000 | ||
Outstanding borrowings, long term | [2],[5] | 692,000,000 | ||
Availability | [2],[5] | $ 138,000,000 | ||
Interest rate at period end (percent) | 3.864% | 3.864% | 3.781% | |
Uncommitted Letter of Credit Facility [Member] | Credit Facilities [Member] | ||||
Line of Credit Facility | ||||
Letters of credit issued | [1] | $ 834,000,000 | ||
[1] | Letters of credit issued as of March 31, 2022 expire at various times in 2022 through 2023. | |||
[2] | Creditors of the VIEs do not have recourse against us. | |||
[3] | The variable interest rate on the DGD Revolver was 2.140 percent and 1.860 percent as of March 31, 2022 and December 31, 2021, respectively. | |||
[4] | In March 2022, the maturity date of this facility was extended to April 2023. The amounts shown for this facility represent the facility amount available from, and borrowings outstanding to, the noncontrolling member as any transactions between DGD and us under this facility are eliminated in consolidation. The variable interest rate on the DGD Loan Agreement was 2.735 percent and 2.603 percent as of March 31, 2022 and December 31, 2021, respectively. | |||
[5] | The variable interest rate on the IEnova Revolver was 3.864 percent and 3.781 percent as of March 31, 2022 and December 31, 2021, respectively. |
Debt, Activity Under Credit Fac
Debt, Activity Under Credit Facilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accounts Receivable Sales Facility [Member] | Line of Credit [Member] | ||
Line of Credit Facility | ||
Borrowings, short-term credit facilities | $ 300 | $ 0 |
Repayments, short-term credit facilities | (300) | 0 |
DGD Revolver [Member] | Line of Credit [Member] | DGD [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Line of Credit Facility | ||
Borrowings, long-term credit facilities | 99 | 0 |
Repayments, long-term credit facilities | (99) | 0 |
IEnova Revolver [Member] | Line of Credit [Member] | Central Mexico Terminals [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Line of Credit Facility | ||
Borrowings, long-term credit facilities | 28 | 8 |
Repayments, long-term credit facilities | $ (15) | $ 0 |
Debt, Interest Incurred (Detail
Debt, Interest Incurred (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest and Debt Expense, Net of Capitalized Interest | ||
Interest and debt expense | $ 157 | $ 164 |
Less: Capitalized interest | 12 | 15 |
Interest and debt expense, net of capitalized interest | $ 145 | $ 149 |
Equity, Narrative (Details)
Equity, Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Equity (Textual) | ||
Open market stock purchases | $ 126 | |
Remaining authorized repurchase amount | $ 1,200 | |
Treasury Stock [Member] | ||
Equity (Textual) | ||
Stock purchases under purchase program (shares) | 1,334,550 | 0 |
Open market stock purchases | $ 126 |
Equity, Changes in Accumulated
Equity, Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Changes in Accumulated Other Comprehensive Loss, By Component, Net of Tax | ||
Beginning balance, accumulated other comprehensive loss, net of tax | $ 18,430 | |
Other comprehensive income (loss) before reclassifications | (54) | $ 72 |
Amounts reclassified from accumulated other comprehensive loss | 53 | 17 |
Other comprehensive income (loss) | (1) | 89 |
Ending balance, accumulated other comprehensive loss, net of tax | 18,821 | |
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 | (1,008) | (1,254) |
Ending balance, accumulated other comprehensive loss, net of tax | (1,009) | (1,165) |
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 | (562) | (515) |
Other comprehensive income (loss) before reclassifications | 13 | 76 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Other comprehensive income (loss) | 13 | 76 |
Ending balance, accumulated other comprehensive loss, net of tax | (549) | (439) |
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 | (441) | (737) |
Other comprehensive income (loss) before reclassifications | (3) | 1 |
Amounts reclassified from accumulated other comprehensive loss | 7 | 8 |
Other comprehensive income (loss) | 4 | 9 |
Ending balance, accumulated other comprehensive loss, net of tax | (437) | (728) |
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 | (5) | (2) |
Other comprehensive income (loss) before reclassifications | (64) | (5) |
Amounts reclassified from accumulated other comprehensive loss | 46 | 9 |
Other comprehensive income (loss) | (18) | 4 |
Ending balance, accumulated other comprehensive loss, net of tax | $ (23) | $ 2 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 2,638 | $ 4,122 |
Property, plant, and equipment, net | 30,876 | 30,847 |
Liabilities | ||
Current liabilities, including current portion of debt and finance lease obligations | 19,785 | 16,851 |
Debt and finance lease obligations, less current portion | 11,866 | 12,606 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Assets | ||
Cash and cash equivalents | 157 | 36 |
Other current assets | 730 | 581 |
Property, plant, and equipment, net | 3,605 | 3,396 |
Liabilities | ||
Current liabilities, including current portion of debt and finance lease obligations | 1,194 | 1,136 |
Debt and finance lease obligations, less current portion | 280 | 284 |
Diamond Green Diesel Holdings LLC (DGD) [Member] | ||
Assets | ||
Cash and cash equivalents | 142 | 21 |
Other current assets | 702 | 558 |
Property, plant, and equipment, net | 2,854 | 2,629 |
Liabilities | ||
Current liabilities, including current portion of debt and finance lease obligations | 470 | 398 |
Debt and finance lease obligations, less current portion | 261 | 264 |
Central Mexico Terminals [Member] | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Other current assets | 11 | 10 |
Property, plant, and equipment, net | 659 | 676 |
Liabilities | ||
Current liabilities, including current portion of debt and finance lease obligations | 716 | 729 |
Debt and finance lease obligations, less current portion | 0 | 0 |
Other VIEs [Member] | ||
Assets | ||
Cash and cash equivalents | 15 | 15 |
Other current assets | 17 | 13 |
Property, plant, and equipment, net | 92 | 91 |
Liabilities | ||
Current liabilities, including current portion of debt and finance lease obligations | 8 | 9 |
Debt and finance lease obligations, less current portion | $ 19 | $ 20 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Pension Plans [Member] | ||
Components of net periodic benefit cost: | ||
Service cost | $ 38 | $ 40 |
Interest cost | 21 | 18 |
Expected return on plan assets | (48) | (48) |
Amortization of: | ||
Net actuarial loss | 13 | 20 |
Prior service credit | (4) | (4) |
Net periodic benefit cost | 20 | 26 |
Other Postretirement Benefit Plans [Member] | ||
Components of net periodic benefit cost: | ||
Service cost | 2 | 2 |
Interest cost | 2 | 2 |
Expected return on plan assets | 0 | 0 |
Amortization of: | ||
Net actuarial loss | 0 | 0 |
Prior service credit | (1) | (2) |
Net periodic benefit cost | $ 3 | $ 2 |
Earnings (Loss) Per Common Sh_3
Earnings (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings (loss) per common share: | ||
Net income (loss) attributable to Valero stockholders | $ 905 | $ (704) |
Less: Income allocated to participating securities | 3 | 1 |
Net income (loss) available to common stockholders | $ 902 | $ (705) |
Weighted-average common shares outstanding (in shares) | 408 | 407 |
Earnings (loss) per common share (in dollars per share) | $ 2.21 | $ (1.73) |
Earnings (loss) per common share – assuming dilution: | ||
Net income (loss) attributable to Valero stockholders | $ 905 | $ (704) |
Less: Income allocated to participating securities | 3 | 1 |
Net income (loss) available to common stockholders | $ 902 | $ (705) |
Weighted-average common shares outstanding (in shares) | 408 | 407 |
Effect of dilutive securities (in shares) | 0 | 0 |
Weighted-average common shares outstanding – assuming dilution (in shares) | 408 | 407 |
Earnings (loss) per common share – assuming dilution (in dollars per share) | $ 2.21 | $ (1.73) |
Revenues and Segment Informat_3
Revenues and Segment Information, Contract Balances (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Contract liabilities, included in accrued expenses | $ 164 | $ 78 | |
Contract Balances (Textual) | |||
Revenue recognized that was included in contract liabilities as of prior year end | 69 | $ 37 | |
Receivables from Contracts with Customers [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Receivables from contracts with customers, included in receivables, net | $ 8,395 | $ 6,228 |
Revenues and Segment Informat_4
Revenues and Segment Information, Components of Operating Income (Loss) (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022USD ($)segment | Mar. 31, 2021USD ($) | ||
Segment Information for our Reportable Segments | |||
Revenues | [1] | $ 38,542 | $ 20,806 |
Cost of sales: | |||
Cost of materials and other | [2] | 34,949 | 18,992 |
Operating expenses (excluding depreciation and amortization expense reflected below) | 1,379 | 1,656 | |
Depreciation and amortization expense | 595 | 566 | |
Total cost of sales | 36,923 | 21,214 | |
Other operating expenses | 19 | 38 | |
General and administrative expenses (excluding depreciation and amortization expense reflected below) | 205 | 208 | |
Depreciation and amortization expense | 11 | 12 | |
Operating income (loss) | $ 1,384 | (666) | |
Segment Information (Textual) | |||
Number of reportable segments | segment | 3 | ||
Corporate, Reconciling Items And Eliminations [Member] | |||
Segment Information for our Reportable Segments | |||
Revenues | $ (517) | (142) | |
Cost of sales: | |||
Operating income (loss) | (217) | (221) | |
Corporate [Member] | |||
Segment Information for our Reportable Segments | |||
Revenues | 0 | 0 | |
Cost of sales: | |||
General and administrative expenses (excluding depreciation and amortization expense reflected below) | 205 | 208 | |
Depreciation and amortization expense | 11 | 12 | |
Intersegment Eliminations [Member] | |||
Segment Information for our Reportable Segments | |||
Revenues | (517) | (142) | |
Cost of sales: | |||
Cost of materials and other | [2] | (516) | (141) |
Operating expenses (excluding depreciation and amortization expense reflected below) | 0 | 0 | |
Depreciation and amortization expense | 0 | 0 | |
Total cost of sales | (516) | (141) | |
Other operating expenses | 0 | 0 | |
Refining [Member] | |||
Segment Information for our Reportable Segments | |||
Revenues | 36,813 | 19,469 | |
Refining [Member] | Operating Segments [Member] | |||
Segment Information for our Reportable Segments | |||
Revenues | 36,817 | 19,472 | |
Cost of sales: | |||
Cost of materials and other | [2] | 33,606 | 18,022 |
Operating expenses (excluding depreciation and amortization expense reflected below) | 1,193 | 1,471 | |
Depreciation and amortization expense | 549 | 533 | |
Total cost of sales | 35,348 | 20,026 | |
Other operating expenses | 18 | 38 | |
General and administrative expenses (excluding depreciation and amortization expense reflected below) | 0 | 0 | |
Depreciation and amortization expense | 0 | 0 | |
Operating income (loss) | 1,451 | (592) | |
Refining [Member] | Intersegment Eliminations [Member] | |||
Segment Information for our Reportable Segments | |||
Revenues | 4 | 3 | |
Renewable Diesel [Member] | |||
Segment Information for our Reportable Segments | |||
Revenues | 595 | 352 | |
Renewable Diesel [Member] | Operating Segments [Member] | |||
Segment Information for our Reportable Segments | |||
Revenues | 981 | 431 | |
Cost of sales: | |||
Cost of materials and other | [2] | 755 | 187 |
Operating expenses (excluding depreciation and amortization expense reflected below) | 51 | 29 | |
Depreciation and amortization expense | 26 | 12 | |
Total cost of sales | 832 | 228 | |
Other operating expenses | 0 | 0 | |
General and administrative expenses (excluding depreciation and amortization expense reflected below) | 0 | 0 | |
Depreciation and amortization expense | 0 | 0 | |
Operating income (loss) | 149 | 203 | |
Segment Information (Textual) | |||
Blender's tax credit | 156 | 79 | |
Renewable Diesel [Member] | Intersegment Eliminations [Member] | |||
Segment Information for our Reportable Segments | |||
Revenues | 386 | 79 | |
Ethanol [Member] | |||
Segment Information for our Reportable Segments | |||
Revenues | 1,134 | 985 | |
Ethanol [Member] | Operating Segments [Member] | |||
Segment Information for our Reportable Segments | |||
Revenues | 1,261 | 1,045 | |
Cost of sales: | |||
Cost of materials and other | [2] | 1,104 | 924 |
Operating expenses (excluding depreciation and amortization expense reflected below) | 135 | 156 | |
Depreciation and amortization expense | 20 | 21 | |
Total cost of sales | 1,259 | 1,101 | |
Other operating expenses | 1 | 0 | |
General and administrative expenses (excluding depreciation and amortization expense reflected below) | 0 | 0 | |
Depreciation and amortization expense | 0 | 0 | |
Operating income (loss) | 1 | (56) | |
Ethanol [Member] | Intersegment Eliminations [Member] | |||
Segment Information for our Reportable Segments | |||
Revenues | $ 127 | $ 60 | |
[1] | Includes excise taxes on sales by certain of our foreign operations of $1,423 million and $1,120 million for the three months ended March 31, 2022 and 2021, respectively | ||
[2] | Cost of materials and other for our Renewable Diesel segment is net of the blender’s tax credit on qualified fuel mixtures of $156 million and $79 million for the three months ended March 31, 2022 and 2021, respectively. |
Revenues and Segment Informat_5
Revenues and Segment Information, Disaggregation of Revenue by Product (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Revenue by Segment | |||
Revenues | [1] | $ 38,542 | $ 20,806 |
Refining [Member] | |||
Revenue by Segment | |||
Revenues | 36,813 | 19,469 | |
Refining [Member] | Gasoline and Blendstocks [Member] | |||
Revenue by Segment | |||
Revenues | 15,560 | 8,729 | |
Refining [Member] | Distillates [Member] | |||
Revenue by Segment | |||
Revenues | 17,444 | 8,581 | |
Refining [Member] | Other Product Revenues [Member] | |||
Revenue by Segment | |||
Revenues | 3,809 | 2,159 | |
Renewable Diesel [Member] | |||
Revenue by Segment | |||
Revenues | 595 | 352 | |
Renewable Diesel [Member] | Renewable Diesel [Member] | |||
Revenue by Segment | |||
Revenues | 595 | 352 | |
Ethanol [Member] | |||
Revenue by Segment | |||
Revenues | 1,134 | 985 | |
Ethanol [Member] | Ethanol [Member] | |||
Revenue by Segment | |||
Revenues | 875 | 752 | |
Ethanol [Member] | Distillers Grains [Member] | |||
Revenue by Segment | |||
Revenues | $ 259 | $ 233 | |
[1] | Includes excise taxes on sales by certain of our foreign operations of $1,423 million and $1,120 million for the three months ended March 31, 2022 and 2021, respectively |
Revenues and Segment Informat_6
Revenues and Segment Information, Assets (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Total Assets by Reportable Segment | ||
Reportable segment assets | $ 60,402 | $ 57,888 |
Corporate and Eliminations [Member] | ||
Total Assets by Reportable Segment | ||
Reportable segment assets | 3,618 | 5,274 |
Refining [Member] | Operating Segments [Member] | ||
Total Assets by Reportable Segment | ||
Reportable segment assets | 51,071 | 47,365 |
Renewable Diesel [Member] | Operating Segments [Member] | ||
Total Assets by Reportable Segment | ||
Reportable segment assets | 3,933 | 3,437 |
Ethanol [Member] | Operating Segments [Member] | ||
Total Assets by Reportable Segment | ||
Reportable segment assets | $ 1,780 | $ 1,812 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Decrease (increase) in current assets: | ||
Receivables, net | $ (2,653) | $ (2,946) |
Inventories | (940) | 175 |
Prepaid expenses and other | (77) | (24) |
Increase (decrease) in current liabilities: | ||
Accounts payable | 2,744 | 2,992 |
Accrued expenses | (120) | 105 |
Taxes other than income taxes payable | 36 | (144) |
Income taxes payable | 288 | 26 |
Changes in current assets and current liabilities | (722) | 184 |
Cash Flows Related to Interest and Income Taxes | ||
Interest paid in excess of amount capitalized, including interest on finance leases | 93 | 103 |
Income taxes paid, net | 204 | 36 |
Operating cash flows | ||
Operating Leases | 97 | 100 |
Finance Leases | 20 | 18 |
Financing cash flows | ||
Finance Leases | 41 | 31 |
Changes in lease balances resulting from new and modified leases, Operating Leases | 79 | 72 |
Changes in lease balances resulting from new and modified leases, Finance Leases | $ 100 | $ 7 |
Fair Value Measurements, Recurr
Fair Value Measurements, Recurring (Details) - Fair Value, Recurring [Member] - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Total gross fair value, assets | $ 1,972 | $ 616 |
Effect of counterparty netting | (1,811) | (444) |
Effect of cash collateral netting | 0 | (15) |
Net carrying value on Balance Sheet, assets | 161 | 157 |
Liabilities | ||
Blending program obligations | 18 | 57 |
Total gross fair value, liabilities | 2,450 | 544 |
Effect of counterparty netting | (1,811) | (444) |
Effect of cash collateral netting | (612) | (28) |
Net carrying value on Balance Sheet, liabilities | 27 | 72 |
Assets Held in Trust [Member] | ||
Assets | ||
Investments of certain benefit plans | 85 | 89 |
Commodity Contracts [Member] | ||
Assets | ||
Derivative contracts | 1,815 | 522 |
Effect of counterparty netting | (1,811) | (444) |
Effect of cash collateral netting | 0 | (15) |
Derivative contracts, net assets | 4 | 63 |
Cash collateral received not offset | 0 | 0 |
Liabilities | ||
Derivative contracts | 2,423 | 472 |
Effect of counterparty netting | (1,811) | (444) |
Effect of cash collateral netting | (612) | (28) |
Derivative contracts, net liabilities | 0 | 0 |
Cash collateral paid not offset | (194) | (41) |
Physical Purchase Contracts [Member] | ||
Assets | ||
Derivative contracts | 24 | 4 |
Derivative contracts, net assets | 24 | 4 |
Liabilities | ||
Derivative contracts | 2 | 5 |
Derivative contracts, net liabilities | 2 | 5 |
Foreign Currency Contracts [Member] | ||
Assets | ||
Derivative contracts | 48 | 1 |
Derivative contracts, net assets | 48 | 1 |
Liabilities | ||
Derivative contracts | 7 | 10 |
Derivative contracts, net liabilities | 7 | 10 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets | ||
Total gross fair value, assets | 1,942 | 606 |
Liabilities | ||
Blending program obligations | 0 | 0 |
Total gross fair value, liabilities | 2,430 | 482 |
Fair Value, Inputs, Level 1 [Member] | Assets Held in Trust [Member] | ||
Assets | ||
Investments of certain benefit plans | 79 | 83 |
Fair Value, Inputs, Level 1 [Member] | Commodity Contracts [Member] | ||
Assets | ||
Derivative contracts | 1,815 | 522 |
Liabilities | ||
Derivative contracts | 2,423 | 472 |
Fair Value, Inputs, Level 1 [Member] | Physical Purchase Contracts [Member] | ||
Assets | ||
Derivative contracts | 0 | 0 |
Liabilities | ||
Derivative contracts | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Foreign Currency Contracts [Member] | ||
Assets | ||
Derivative contracts | 48 | 1 |
Liabilities | ||
Derivative contracts | 7 | 10 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets | ||
Total gross fair value, assets | 24 | 4 |
Liabilities | ||
Blending program obligations | 18 | 57 |
Total gross fair value, liabilities | 20 | 62 |
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 | 24 | 4 |
Liabilities | ||
Derivative contracts | 2 | 5 |
Fair Value, Inputs, Level 2 [Member] | Foreign Currency Contracts [Member] | ||
Assets | ||
Derivative contracts | 0 | 0 |
Liabilities | ||
Derivative contracts | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets | ||
Total gross fair value, assets | 6 | 6 |
Liabilities | ||
Blending program 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 | 6 |
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 | 0 |
Fair Value, Inputs, Level 3 [Member] | Foreign Currency Contracts [Member] | ||
Assets | ||
Derivative contracts | 0 | 0 |
Liabilities | ||
Derivative contracts | $ 0 | $ 0 |
Fair Value Measurements, Nonrec
Fair Value Measurements, Nonrecurring (Details) - Fair Value, Nonrecurring [Member] - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
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 | Mar. 31, 2022 | Dec. 31, 2021 |
Financial assets: | ||
Cash and cash equivalents, at carrying amount | $ 2,638 | $ 4,122 |
Financial liabilities: | ||
Debt (excluding finance lease obligations), at carrying amount | 11,195 | 11,950 |
Fair Value, Inputs, Level 1 [Member] | ||
Financial assets: | ||
Cash and cash equivalents, at fair value | 2,638 | 4,122 |
Fair Value, Inputs, Level 2 [Member] | ||
Financial liabilities: | ||
Debt (excluding finance lease obligations), at fair value | $ 11,952 | $ 13,668 |
Price Risk Management Activit_3
Price Risk Management Activities (Details) bu in Thousands, $ in Millions | 3 Months Ended | ||
Mar. 31, 2022USD ($)MBblsbu | Mar. 31, 2021USD ($) | ||
Price Risk Management Activities (Textual) | |||
Compliance program costs | $ | [1] | $ 34,949 | $ 18,992 |
Renewable And Low-Carbon Fuel Blending Programs | |||
Price Risk Management Activities (Textual) | |||
Compliance program costs | $ | $ 302 | $ 395 | |
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 | 1,634 | ||
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 | 4,617 | ||
Derivatives Designated as Hedges [Member] | Cash Flow Hedges [Member] | Future, 2023 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 | 0 | ||
Derivatives Designated as Hedges [Member] | Cash Flow Hedges [Member] | Future, 2023 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 | 0 | ||
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 | 77,765 | ||
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 | 70,295 | ||
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 | 79,740 | ||
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 | 119,175 | ||
Derivatives Designated as Economic Hedges [Member] | Future, 2023 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 | 6 | ||
Derivatives Designated as Economic Hedges [Member] | Future, 2023 Maturity [Member] | Long (Purchases) [Member] | Corn (in thousands of bushels) [Member] | |||
Volume of Outstanding Contracts | |||
Nonmonetary notional amount of price risk derivatives, volume | bu | 205 | ||
Derivatives Designated as Economic Hedges [Member] | Future, 2023 Maturity [Member] | Short (Sales) [Member] | Crude Oil and Refined Petroleum Products (in thousands of barrels) [Member] | |||
Volume of Outstanding Contracts | |||
Nonmonetary notional amount of price risk derivatives, volume | 0 | ||
Derivatives Designated as Economic Hedges [Member] | Future, 2023 Maturity [Member] | Short (Sales) [Member] | Corn (in thousands of bushels) [Member] | |||
Volume of Outstanding Contracts | |||
Nonmonetary notional amount of price risk derivatives, volume | bu | 1,580 | ||
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 | 46,597 | ||
Derivatives Designated as Economic Hedges [Member] | Physical Contracts, 2023 Maturity [Member] | Long (Purchases) [Member] | Corn (in thousands of bushels) [Member] | |||
Volume of Outstanding Contracts | |||
Nonmonetary notional amount of price risk derivatives, volume | bu | 1,391 | ||
Derivatives Designated as Economic Hedges [Member] | Foreign Exchange Contract, US Dollars [Member] | |||
Price Risk Management Activities (Textual) | |||
Monetary notional amount of derivative liabilities | $ | $ 709 | ||
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 | $ | 3,100 | ||
Derivatives Designated as Economic Hedges [Member] | Foreign Exchange Contract, Maturity on or Before April 25, 2022 [Member] | |||
Price Risk Management Activities (Textual) | |||
Monetary notional amount of derivative liabilities | $ | 1,800 | ||
Derivatives Designated as Economic Hedges [Member] | Foreign Exchange Contract, Maturity by June 16, 2022 [Member] | |||
Price Risk Management Activities (Textual) | |||
Monetary notional amount of derivative liabilities | $ | $ 2,000 | ||
[1] | Cost of materials and other for our Renewable Diesel segment is net of the blender’s tax credit on qualified fuel mixtures of $156 million and $79 million for the three months ended March 31, 2022 and 2021, respectively. |
Price Risk Management Activit_4
Price Risk Management Activities, Hedging Instruments by Consolidated Balance Sheet Location (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivatives Designated as Hedging Instruments [Member] | Commodity Contracts [Member] | Receivable, Net [Member] | ||
Fair Values of Derivative Instruments | ||
Derivative asset, fair value, gross asset | $ 94 | $ 3 |
Derivative asset, fair value, gross liability | 220 | 26 |
Derivatives Not Designated as Hedging Instruments [Member] | ||
Fair Values of Derivative Instruments | ||
Derivative asset, fair value, gross asset | 1,793 | 524 |
Derivative liability, fair value, gross liability | 2,212 | 461 |
Derivatives Not Designated as Hedging Instruments [Member] | Commodity Contracts [Member] | Receivable, Net [Member] | ||
Fair Values of Derivative Instruments | ||
Derivative asset, fair value, gross asset | 1,721 | 519 |
Derivative asset, fair value, gross liability | 2,203 | 446 |
Derivatives Not Designated as Hedging Instruments [Member] | Physical Purchase Contracts [Member] | Inventories [Member] | ||
Fair Values of Derivative Instruments | ||
Derivative asset, fair value, gross asset | 24 | 4 |
Derivative asset, fair value, gross liability | 2 | 5 |
Derivatives Not Designated as Hedging Instruments [Member] | Foreign Currency Contracts [Member] | Receivable, Net [Member] | ||
Fair Values of Derivative Instruments | ||
Derivative asset, fair value, gross asset | 48 | 1 |
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 | $ 7 | $ 10 |
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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Commodity Contracts [Member] | ||
Effect of Derivative Instruments on Income | ||
Loss recognized in other comprehensive income (loss) on derivatives | $ (164) | $ (13) |
Commodity Contracts [Member] | Revenues [Member] | ||
Effect of Derivative Instruments on Income | ||
Loss reclassified from accumulated other comprehensive loss into income | (119) | (23) |
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 | (4) | 7 |
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 | (595) | (78) |
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 | 3 | 1 |
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 | (2) | (8) |
Foreign Currency Contracts [Member] | Other Income (Expense), Net [Member] | Derivatives Not Designated as Hedging Instruments [Member] | ||
Effect of Derivative Instruments on Income | ||
Gain (loss) recognized in income on derivatives | $ 34 | $ 30 |