Document_and_Entity_Informatio
Document and Entity Information (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Nov. 08, 2013 | |
Entity Information | ' | ' |
Entity Registrant Name | 'CST Brands, Inc. | ' |
Entity Central Index Key | '0001562039 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding (actual number) | ' | 75,600,204 |
Common Stock, Par Value Per Share | ' | $0.01 |
Consolidated_and_Combined_Bala
Consolidated and Combined Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Current Assets: | ' | ' | ' | ' |
Cash | $424 | $61 | $65 | $132 |
Receivables, net of allowances of $1 and $2, respectively | 190 | 134 | ' | ' |
Inventories | 166 | 168 | ' | ' |
Deferred income taxes | 10 | 13 | ' | ' |
Prepaid expenses and other | 12 | 8 | ' | ' |
Total current assets | 802 | 384 | ' | ' |
Property and equipment, at cost | 1,943 | 1,863 | ' | ' |
Accumulated depreciation | -643 | -587 | ' | ' |
Property and equipment, net | 1,300 | 1,276 | ' | ' |
Goodwill and intangible assets, net | 52 | 41 | ' | ' |
Deferred income taxes | 98 | 0 | ' | ' |
Other assets, net | 70 | 8 | ' | ' |
Total assets | 2,322 | 1,709 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Current portion of debt and capital lease obligations | 32 | 1 | ' | ' |
Accounts payable | 82 | 95 | ' | ' |
Accounts payable to Valero | 299 | 0 | ' | ' |
Dividends payable | 5 | 0 | ' | ' |
Accrued expenses | 59 | 40 | ' | ' |
Taxes other than income taxes | 28 | 92 | ' | ' |
Income taxes payable | 7 | 0 | ' | ' |
Total current liabilities | 512 | 228 | ' | ' |
Debt and capital lease obligations, less current portion | 1,016 | 4 | ' | ' |
Deferred income taxes | 94 | 123 | ' | ' |
Other long-term liabilities | 113 | 107 | ' | ' |
Total liabilities | 1,735 | 462 | ' | ' |
Commitments and contingencies | ' | ' | ' | ' |
Stockholders’ Equity / Net Investment: | ' | ' | ' | ' |
Common stock (250,000,000 shares authorized at $0.01 par value and 75,397,241 shares issued and outstanding at September 30, 2013) | 1 | 0 | ' | ' |
Additional paid-in capital (APIC) | 382 | 0 | ' | ' |
Net parent investment | 0 | 1,082 | ' | ' |
Retained earnings | 57 | 0 | ' | ' |
Accumulated other comprehensive income (AOCI) | 147 | 165 | ' | ' |
Total stockholders’ equity / net investment | 587 | 1,247 | ' | ' |
Total liabilities and stockholders’ equity / net investment | $2,322 | $1,709 | ' | ' |
Consolidated_and_Combined_Bala1
Consolidated and Combined Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Receivable, allowance | $1 | $2 |
Common stock, shares authorized | 250,000,000 | ' |
Common stock, par value per share | $0.01 | ' |
Common stock, shares, issued | 75,397,241 | ' |
Common stock, shares, outstanding | 75,397,241 | ' |
Common Stock | ' | ' |
Common stock, shares authorized | 250,000,000 | ' |
Common stock, shares, issued | 75,397,241 | ' |
Common stock, shares, outstanding | 75,397,241 | ' |
Common Stock Par Value | ' | ' |
Common stock, par value per share | $0.01 | ' |
Consolidated_and_Combined_Stat
Consolidated and Combined Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Operating revenues (a) | $3,316 | $3,382 | $9,715 | $9,939 |
Cost of sales | 3,026 | 3,137 | 8,900 | 9,110 |
Gross margin | 290 | 245 | 815 | 829 |
Operating expenses: | ' | ' | ' | ' |
Operating expenses | 169 | 168 | 489 | 484 |
General and administrative expenses | 21 | 15 | 56 | 44 |
Depreciation, amortization and accretion expense | 30 | 27 | 90 | 83 |
Asset impairments | 2 | 0 | 2 | 0 |
Total operating expenses | 222 | 210 | 637 | 611 |
Operating income | 68 | 35 | 178 | 218 |
Other income, net | 1 | 1 | 3 | 1 |
Interest expense | -10 | 0 | -17 | 0 |
Income before income tax expense | 59 | 36 | 164 | 219 |
Income tax expense | 18 | 12 | 59 | 73 |
Net income | 41 | 24 | 105 | 146 |
Earnings per Common Share | ' | ' | ' | ' |
Basic earnings per common share | $0.55 | $0.31 | $1.39 | $1.93 |
Weighted-average common shares outstanding (in thousands) | 75,397 | 75,397 | 75,397 | 75,397 |
Earnings per Common Share – Assuming Dilution | ' | ' | ' | ' |
Diluted earnings per common share | $0.55 | $0.31 | $1.39 | $1.93 |
Weighted-average common shares outstanding – assuming dilution (in thousands) | 75,432 | 75,397 | 75,416 | 75,397 |
Supplemental information: | ' | ' | ' | ' |
(a) Includes excise taxes of: | $482 | $517 | $1,447 | $1,496 |
Consolidated_and_Combined_Stat1
Consolidated and Combined Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net income | $41 | $24 | $105 | $146 |
Other Comprehensive Income (Loss): | ' | ' | ' | ' |
Foreign currency translation adjustment | 12 | 13 | -18 | 14 |
Other comprehensive income (loss) before income taxes | 12 | 13 | -18 | 14 |
Income taxes related to items of other comprehensive income | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 12 | 13 | -18 | 14 |
Comprehensive income | $53 | $37 | $87 | $160 |
Consolidated_and_Combined_Stat2
Consolidated and Combined Statements of Cash Flows (USD $) | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 |
Cash Flows From Operating Activities: | ' | ' | ' |
Net income | $41 | $105 | $146 |
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: | ' | ' | ' |
Stock-based compensation expense | 1 | 3 | 1 |
Depreciation, amortization and accretion expense | 30 | 90 | 83 |
Asset impairments | 2 | 2 | 0 |
Deferred income tax expense (benefit) | ' | 14 | 5 |
Changes in current assets and current liabilities | ' | 197 | -1 |
Other operating activities, net | ' | -1 | 3 |
Net cash provided by operating activities | ' | 410 | 237 |
Cash Flows From Investing Activities: | ' | ' | ' |
Capital expenditures | ' | -137 | -90 |
Acquisitions | ' | -6 | -61 |
Proceeds from dispositions of property and equipment | ' | 1 | 2 |
Other investing activities, net | ' | 0 | -2 |
Net cash used in investing activities | ' | -142 | -151 |
Cash Fows From Financing Activities: | ' | ' | ' |
Proceeds from issuance of long-term debt | ' | 500 | 0 |
Debt issuance and credit facility origination costs | ' | 19 | 0 |
Payments of capital lease obligations | ' | 1 | 1 |
Payments of long-term debt | ' | -6 | 0 |
Net transfers to Valero | ' | -378 | -152 |
Net cash provided by (used in) financing activities | ' | 96 | -153 |
Effect of foreign exchange rate changes on cash | ' | -1 | 0 |
Net increase (decrease) in cash | ' | 363 | -67 |
Cash at beginning of period | ' | 61 | 132 |
Cash at end of period | $424 | $424 | $65 |
Consolidated_and_Combined_Stat3
Consolidated and Combined Statement of Stockholders' Equity Statement (USD $) | Total | Common Stock | Common Stock Par Value | Additional Paid-in Capital | Net Parent Investment | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
In Millions | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |
Stockholders' equity at Dec. 31, 2012 | $1,247 | ' | $0 | $0 | $1,082 | $0 | $165 |
Shares, outstanding at Dec. 31, 2012 | ' | 0 | ' | ' | ' | ' | ' |
Net income | 105 | ' | ' | ' | 43 | 62 | ' |
Net transfers to Valero | -744 | ' | ' | ' | -744 | ' | ' |
Issuance of stock at the separation and distribution | ' | ' | 1 | -1 | ' | ' | ' |
Issuance of stock at the separation and distribution, shares | ' | 75 | ' | ' | ' | ' | ' |
Reclassification of net parent investment to APIC | 0 | ' | ' | 381 | -381 | ' | 0 |
Stock-based compensation expense | 2 | ' | ' | 2 | ' | ' | ' |
Dividends ($0.625 per share) | -5 | ' | ' | ' | ' | -5 | ' |
Other comprehensive loss | -18 | ' | ' | 0 | ' | ' | -18 |
Stockholders' equity at Sep. 30, 2013 | $587 | ' | $1 | $382 | $0 | $57 | $147 |
Shares, outstanding at Sep. 30, 2013 | ' | 75 | ' | ' | ' | ' | ' |
Significant_Accounting_Policie
Significant Accounting Policies | 9 Months Ended | |
Sep. 30, 2013 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |
The Separation and Distribution, Basis of Presentation, Concentration Risk and Interim Financial Information | ' | |
THE SEPARATION AND DISTRIBUTION, BASIS OF PRESENTATION, CONCENTRATION RISK AND INTERIM FINANCIAL INFORMATION | ||
The Separation and Distribution | ||
On April 4, 2013, the Valero Energy Corporation (“Valero” or “Parent”) Board of Directors approved the separation and distribution (the “separation and distribution”) of its retail business resulting in a separate, publicly-traded company named CST Brands, Inc. (“CST”). In accordance with a separation and distribution agreement, the two companies were separated by Valero’s distributing to its stockholders 80% of the common stock of CST on May 1, 2013 (the “Distribution Date”). Each Valero stockholder received one share of CST common stock for every nine shares of Valero common stock held at the close of business on the record date of April 19, 2013 (the “Record Date”). Fractional shares of CST common stock were not distributed and any fractional shares of CST common stock otherwise issuable to a Valero stockholder were sold in the open market on such stockholder’s behalf, and such stockholder received a cash payment with respect to that fractional share. The remaining 20% of the common stock of CST was retained by Valero. A registration statement on Form 10, as amended through the time of its effectiveness, describing the separation and the distribution was filed by CST with the Securities and Exchange Commission (“SEC”) and was declared effective on April 11, 2013 (the “Form 10”). On May 2, 2013, CST stock began trading on the New York Stock Exchange (“NYSE”) under the “CST” stock symbol. In conjunction with the separation and distribution, Valero received a private letter ruling from the Internal Revenue Service to the effect that the distribution will not result in any taxable income, gain or loss to Valero, except for taxable income or gain arising as a result of certain intercompany transactions, and no gain or loss was recognized by (and no amount will be included in the income of) United States (“U.S.”) holders of Valero common stock upon their receipt of shares of CST common stock in the distribution, except with respect to cash received in lieu of fractional shares. However, the transfer of assets and liabilities associated with Valero’s retail business in Canada is taxable for Canadian income tax purposes. | ||
In connection with the separation and distribution, CST incurred an aggregate of $1.05 billion in new debt, consisting of: (i) $550 million aggregate principal amount of senior unsecured notes (the “notes”); and (ii) $800 million in senior secured credit facilities (the “credit facilities”), comprised of a $500 million term loan facility (the “term loan”) and a $300 million revolving credit facility (the “revolving credit facility”). We have no borrowings outstanding under the revolving credit facility as of the date of this filing; however, approximately $4 million of letters of credit have been issued under this facility. For more information on our indebtedness, see Note 8 to these condensed notes to consolidated and combined financial statements. | ||
We transferred the cash proceeds of the term loan to Valero and issued the notes to Valero in connection with the separation of the assets (including the equity interests of certain Valero subsidiaries) and liabilities of Valero’s retail business from Valero and the transfer of those assets (including the equity interests of certain Valero subsidiaries) and liabilities to us. Valero transferred our notes to a third-party lender to satisfy certain of Valero’s then-outstanding debt obligations. As a result of these financing transactions, we incurred total indebtedness of $1.05 billion for which we did not retain any cash following the separation and distribution. | ||
As a result of the separation and distribution, the tax basis of certain of our Retail–U.S. assets related to certain historical intercompany transactions between Valero and us were stepped-up, but the historical book basis of these assets was not stepped-up because the distribution represents a transaction with Valero’s stockholders. Therefore, we realized an $18 million adjustment to a portion of our U.S. deferred income tax liabilities. | ||
The separation and distribution was a taxable event in Canada and, as a result, the tax basis of certain assets and liabilities of our Retail–Canada segment were stepped up to their fair values. The historical book basis of those assets and liabilities, however, were not stepped-up because they were wholly owned by Valero and were transferred within the Valero consolidated group. As a result, we recognized a deferred tax asset of $115 million from the step-up in the tax basis of those assets and liabilities. During the third quarter of 2013, certain adjustments were made to true-up the differences between the book basis and the tax basis of certain assets and liabilities, which resulted in a $13 million reduction in this deferred tax asset and an offsetting reduction to APIC. | ||
Also, we recorded $7 million of deferred tax expense related to the loss of certain state tax credits that were no longer eligible for use in our consolidated tax return as a result of the separation and distribution. | ||
CST was not responsible for any tax payments related to the separation and distribution in the U.S. and Canada. | ||
On November 7, 2013, Valero and CST entered into an exchange agreement with a third party lender, pursuant to which such lender agreed to acquire the 13,112,564 of Valero’s shares of our common stock in exchange for the satisfaction and discharge of a portion of a short-term loan made by the lender to Valero. Concurrently therewith Valero, CST, the lender, and the several underwriters named therein entered into an underwriting agreement pursuant to which the shares exchanged pursuant to the exchange agreement were sold to the public. The exchange and the offering are expected to close on November 14, 2013. The underwriters and the lender have the option to purchase up to 1,966,884 additional shares of our common stock from Valero for a period of 30 days after the date of the exchange agreement and underwriting agreement. If the underwriters exercise such option, Valero will no longer own any of our common stock. | ||
Basis of Presentation | ||
CST was incorporated in November 2012. In connection with its incorporation, CST issued 1,000 shares of common stock, par value $0.01 per share, to Valero for $10. CST was formed solely in contemplation of the separation and distribution and, prior to May 1, 2013, had not commenced operations and had no material assets, liabilities or commitments. | ||
Prior to the separation and distribution, these financial statements reflect the combined historical financial position, results of operations and cash flows of Valero’s retail business in the U.S. and Canada that were owned by direct and indirect wholly-owned subsidiaries of Valero, including an allocable portion of Valero’s corporate costs. The transfer of the assets (including the equity interests of certain Valero subsidiaries), liabilities and operations of Valero’s retail business into CST occurred on May 1, 2013. However, for ease of reference, these consolidated and combined financial statements are referred to as those of CST. Unless otherwise stated or the context otherwise indicates, all references in these consolidated and combined financial statements to “us,” “our,” or “we” mean CST. | ||
We operate in two segments: Retail–U.S. and Retail–Canada. Neither of our segments carried out transactions with the other during the periods presented; therefore, there were no intercompany transactions or accounts to be eliminated in connection with the consolidation or combination of these operations. | ||
The unaudited combined financial statements are presented as if Valero’s retail businesses in the U.S. and Canada were combined for all periods prior to the separation and distribution. The assets and liabilities in the combined balance sheet have been reflected on a historical cost basis, as immediately prior to the separation and distribution. All of the assets and liabilities presented were wholly owned by Valero and were transferred within the Valero consolidated group. The combined statements of income prior to the separation and distribution also include expense allocations for certain corporate functions historically performed by Valero and not allocated to its operating segments, including allocations of general corporate expenses related to executive oversight, accounting, treasury, tax, legal, procurement, human resources and information technology (“IT”). These allocations were based primarily on specific identification of time and/or activities associated with CST’s operations, employee headcount or capital expenditures. We believe the assumptions underlying the combined financial statements, including the assumptions regarding allocating general corporate expenses from Valero, are reasonable. Subsequent to the separation and distribution, Valero continues to perform certain of these corporate functions on our behalf, for which we are charged a fee, in accordance with the Transition Services Agreements. Nevertheless, the combined financial statements may not include all of the actual expenses that would have been incurred had we operated as a stand-alone, publicly-traded company during the combined periods presented and may not reflect our combined financial position, results of operations and cash flows had we operated as a stand-alone, publicly-traded company during the combined periods presented. Actual costs that would have been incurred if we had operated as a stand-alone, publicly-traded company during the combined periods presented would depend on multiple factors, including organizational structure and strategic decisions made in various areas, including IT and related infrastructure. | ||
Prior to the separation and distribution, we transferred cash to Valero daily and Valero funded our operating and investing activities as needed. Accordingly, cash held by Valero at the corporate level was not allocated to us. Cash presented on our combined balance sheet prior to the separation and distribution represented cash on hand at our convenience stores, cash that had not yet been transferred to Valero and cash held by us in automated teller machines (“ATMs”) in our Retail–Canada segment. We reflected transfers of cash to and from Valero’s cash management system as a component of net parent investment on our combined balance sheet, and these net transfers of cash were reflected as a financing activity in our combined statement of cash flows. We did not include any interest income on the net cash transfers to Valero. | ||
The consolidated financial statements reflect our financial results for all periods subsequent to the separation and distribution while the combined financial statements reflect our financial results for all periods prior to the separation and distribution. Accordingly: | ||
• | Our consolidated statement of income and comprehensive income for the three months ended September 30, 2013, consists of the consolidated results of CST. Our consolidated and combined statement of income and comprehensive income for the nine months ended September 30, 2013, consists of the consolidated results of CST for the five months ended September 30, 2013 and of the combined results of Valero’s retail business for the four months ended April 30, 2013. Our combined statements of income and comprehensive income for the three and nine months ended September 30, 2012 consist entirely of the combined results of Valero’s retail business. | |
• | Our consolidated balance sheet at September 30, 2013, consists of the consolidated balances of CST, while our combined balance sheet at December 31, 2012 consists of the combined balances of Valero’s retail business. | |
• | Our consolidated and combined statement of cash flows for the nine months ended September 30, 2013, consists of the consolidated results of CST for the five months ended September 30, 2013 and the combined results of Valero’s retail business for the four months ended April 30, 2013. Our combined statement of cash flows for the nine months ended September 30, 2012 consists entirely of the combined results of Valero’s retail business. | |
• | Our consolidated and combined statement of changes in stockholders’ equity for the nine months ended September 30, 2013, consists of the consolidated results of CST for the five months ended September 30, 2013 and the combined results of Valero’s retail business for the four months ended April 30, 2013. | |
Concentration Risk | ||
Valero supplied substantially all of the motor fuel purchased by us for resale during all periods presented. | ||
We entered into a Branded Distributor Marketing Agreement, a Petroleum Product Sale Agreement and a Master Agreement with Valero in connection with the separation and distribution for the supply of motor fuel to our Retail–U.S. operations, which we refer to as the “U.S. Fuel Supply Agreements.” In addition, we entered into a separate Petroleum Product Supply Agreement with Valero for the supply of motor fuel to our Retail–Canada segment. Under the U.S. Fuel Supply Agreements and the Product Supply Agreement in Canada, we will continue to purchase motor fuel from Valero. The U.S. Fuel Supply Agreements and Petroleum Product Supply Agreement in Canada contain minimum annual purchase obligations. The minimum purchase obligation provisions of these agreements require us to purchase minimum annual volumes of motor fuel at market-based prices. In the event that we do not purchase the minimum volumes, the agreements include a charge for the difference between the total minimum volume commitment to be purchased over the terms of the agreements and the volumes actually purchased by us. This amount will decline over time as we purchase motor fuel from Valero. | ||
No customers are individually material to our operations. | ||
Interim Financial Information | ||
These unaudited financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Act of 1934. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All such adjustments are of a normal recurring nature unless disclosed otherwise. Management believes that the disclosures made are adequate to make the information presented not misleading. The financial statements contained herein should be read in conjunction with the combined financial statements and notes thereto included in the Form 10. Financial information for the three and nine months ended September 30, 2013 and 2012 included in these condensed notes to consolidated and combined financial statements is derived from our unaudited financial statements. Operating results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. | ||
The balance sheet as of December 31, 2012 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 Form 10. |
Acquisitions
Acquisitions | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Business Combinations [Abstract] | ' | |||
Acquisitions | ' | |||
ACQUISITIONS | ||||
In July 2012, we completed the acquisition of The Crackerbox, LLC (“Crackerbox”) for total cash consideration of $61 million. No contingent assets or liabilities were acquired or assumed. In the first quarter of 2013, an independent appraisal of the assets acquired through the acquisition of Crackerbox was completed. The purchase price of Crackerbox was allocated based on the fair values of the assets acquired at the date of acquisition resulting from this appraisal. The primary changes to the preliminary purchase price allocation disclosed in the Form 10 consisted of an $18 million adjustment to goodwill resulting from a change in the estimated fair value of property and equipment. The purchase price allocation of the acquisition of Crackerbox was determined based on the acquisition-date fair values of the assets acquired and is as follows (in millions): | ||||
Inventories | $ | 3 | ||
Property and equipment | 38 | |||
Other assets | 2 | |||
Goodwill | 18 | |||
Total consideration | $ | 61 | ||
The adjustment to property and equipment discussed above did not result in a material adjustment to depreciation expense. | ||||
We have not presented pro forma results of operations for the three and nine months ended September 30, 2012 because this acquisition was not material to our results of operations. | ||||
During 2013, we acquired one new company operated site and converted four dealer/agent sites to company operated sites in our Retail–Canada segment for $6 million. |
Asset_Impairments_Notes
Asset Impairments (Notes) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Asset Impairments [Abstract] | ' | |||||||
Asset Impairments | ' | |||||||
ASSET IMPAIRMENTS | ||||||||
Our retail sites are the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of long-lived assets. Cash flows from each retail site vary from year to year and as a result, we identified and recorded asset impairments during the three months ended September 30, 2013 as changes in market demographics, traffic patterns, competition and other factors impacted the overall operations of certain of our individual retail sites. | ||||||||
For each retail site where events or changes in circumstances indicated that the carrying amount of the assets might not be recoverable, we compared the retail site’s carrying amount to its estimated future undiscounted cash flows to determine recoverability. If the sum of the estimated undiscounted cash flows did not exceed the carrying value, we then estimated the fair value of these retail sites to measure the impairment. To estimate the fair value of our retail sites, we used an income approach reflecting internally developed cash flows that included, among other things, our expectations of future cash flows based on sales volume, gross margins and operating expenses. | ||||||||
As a result of our impairment evaluation process, we concluded that certain retail sites in our Retail–U.S. segment were impaired. The aggregate carrying values, estimated fair values and asset impairments for these sites were as follows (in millions): | ||||||||
Three Months Ended | Nine Months Ended | |||||||
30-Sep-13 | 30-Sep-13 | |||||||
Carrying values | $ | 3 | $ | 3 | ||||
Less: Estimated fair values | (1 | ) | (1 | ) | ||||
Asset impairments | $ | 2 | $ | 2 | ||||
We did not record any asset impairments in our Retail–Canada segment during the first nine months of 2013. We did not record any asset impairments in our Retail–U.S. segment or our Retail–Canada segment in 2012. |
Earnings_Per_Common_Share_Note
Earnings Per Common Share (Notes) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings Per Common Share | ' | |||||||||||||||
EARNINGS PER COMMON SHARE | ||||||||||||||||
Basic earnings per common share is computed by dividing the net income available to common stockholders by the weighted average of common shares outstanding during the period. Diluted earnings per common share adjusts basic earnings per common share for the effects of stock options and restricted stock in the periods in which such effect is dilutive. | ||||||||||||||||
On May 1, 2013, 75,397,241 shares of our common stock were distributed to Valero’s stockholders and Valero in conjunction with the separation and distribution. For comparative purposes, and to provide a more meaningful calculation of earnings per share, we have assumed this amount to be outstanding during each period prior to the separation and distribution presented in the calculation of weighted-average shares outstanding. | ||||||||||||||||
The following table provides a reconciliation of basic and diluted earnings per common share computations for the three and nine months ended September 30, 2013 and 2012 (in millions, except per share amounts): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended | |||||||||||||||
September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Earnings per common share: | ||||||||||||||||
Net income attributable to stockholders | $ | 41 | $ | 24 | $ | 105 | $ | 146 | ||||||||
Weighted-average common shares outstanding (in thousands) | 75,397 | 75,397 | 75,397 | 75,397 | ||||||||||||
Total earnings per share | $ | 0.55 | $ | 0.31 | $ | 1.39 | $ | 1.93 | ||||||||
Earnings per common share - assuming dilution: | ||||||||||||||||
Net income attributable to stockholders | $ | 41 | $ | 24 | $ | 105 | $ | 146 | ||||||||
Weighted-average common shares outstanding (in thousands) | 75,397 | 75,397 | 75,397 | 75,397 | ||||||||||||
Common equivalent shares: | ||||||||||||||||
Restricted stock (in thousands) | 35 | — | 19 | — | ||||||||||||
Weighted-average common shares outstanding - assuming dilution (in thousands) | 75,432 | 75,397 | 75,416 | 75,397 | ||||||||||||
Earnings per common shares - assuming dilution | $ | 0.55 | $ | 0.31 | $ | 1.39 | $ | 1.93 | ||||||||
Excluded from the calculation of shares used in the diluted earnings per share calculation for the three and nine months ended September 30, 2013 are 234,106 and 123,072 of weighted-average anti-dilutive options, respectively. Excluded from the calculation of shares used in the diluted earnings per share calculation for the three months ended September 30, 2013 are 1,155 of weighted-average anti-dilutive restricted shares. There were no anti-dilutive restricted shares for the nine months ended September 30, 2013. | ||||||||||||||||
No stock-based awards of CST were issued in exchange for either vested or non-vested Valero stock-based awards held by our employees prior to the separation and distribution. Therefore, there are no stock-based awards included in the calculation of shares used in the diluted earnings per share prior to the separation and distribution. |
Inventories
Inventories | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
INVENTORIES | ||||||||
Inventories consisted of the following (in millions): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Convenience store merchandise | $ | 109 | $ | 111 | ||||
Motor fuel (at LIFO) | 56 | 56 | ||||||
Supplies | 1 | 1 | ||||||
Inventories | $ | 166 | $ | 168 | ||||
As of September 30, 2013 and December 31, 2012, the replacement cost (market value) of motor fuel inventories exceeded their LIFO carrying amounts by approximately $56 million. |
Income_Taxes_Notes
Income Taxes (Notes) | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
INCOME TAXES | |
Our effective income tax rate for the three and nine months ended September 30, 2013 was 31% and 36%, respectively, compared with 33% for the corresponding periods of 2012. The effective tax rate differs from the federal statutory rate of 35% primarily due to state income taxes and the impact of foreign operations. Also impacting our effective tax rate for the first nine months of 2013 was $7 million of deferred tax expense resulting from the loss of certain state tax credits that were no longer eligible for use in our consolidated tax return as a result of the separation and distribution. This $7 million deferred tax item represented a 4% component of the effective rate for the nine months ended September 30, 2013. | |
The provision for income taxes for periods prior to the separation and distribution were computed as if we were a stand-alone company. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
COMMITMENTS AND CONTINGENCIES | |
Tax Matters | |
We are subject to extensive tax liabilities imposed by multiple jurisdictions, including income taxes, indirect taxes (excise/duty, sales/use and gross receipts taxes), payroll taxes, franchise taxes, withholding taxes and ad valorem taxes. New tax laws and regulations and changes in existing tax laws and regulations are continuously being enacted or proposed that could result in increased expenditures for tax liabilities in the future. Many of these liabilities are subject to periodic audits by the respective taxing authority. Subsequent changes to our tax liabilities as a result of these audits may subject us to interest and penalties. | |
Litigation Matters | |
We are party to claims and legal proceedings arising in the ordinary course of business. We have not recorded a loss contingency liability with respect to some of these matters because we have determined that it is remote that a loss has been incurred. For other matters, we have recorded a loss contingency liability where we have determined that it is probable that a loss has been incurred and that the loss is reasonably estimable. These loss contingency liabilities are not material to our financial position. We re-evaluate and update our loss contingency liabilities as matters progress over time, and we believe that any possible loss in excess of amounts already recorded will not be material to our results of operations, financial position or liquidity. | |
There have been no significant changes to the litigation matters discussed in Note 9 of our combined financial statements for the year ended December 31, 2012, which are included in the Form 10. |
Debt
Debt | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Debt | ' | ||||||||
DEBT | |||||||||
Our balances for long-term debt and capital leases are as follows (in millions): | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
5.0% senior notes due 2023 | $ | 550 | $ | — | |||||
Term loan due 2018 (effective rate of 1.93% at September 30, 2013) | 494 | — | |||||||
Capital leases | 4 | 5 | |||||||
Total debt and capital leases outstanding | 1,048 | 5 | |||||||
Less current portion | (32 | ) | (1 | ) | |||||
Debt and capital leases, less current portion | $ | 1,016 | $ | 4 | |||||
Availability under the revolving credit facility (expires 2018): | |||||||||
Total available credit facility limit | $ | 300 | $ | — | |||||
Letters of credit outstanding | (4 | ) | — | ||||||
Maximum leverage ratio constraint (a) | — | — | |||||||
Total available and undrawn | $ | 296 | $ | — | |||||
(a) | Our credit facility contains a maximum lease adjusted leverage ratio of 3.75 to 1.00, and as such the amount that we can borrow under the revolving credit facility could potentially be constrained. As of September 30, 2013, our lease adjusted leverage ratio was 2.95; resulting in no additional constraint to the amount we could borrow under the revolving credit facility. | ||||||||
In connection with the issuance of our new long-term debt, we incurred debt issuance and credit facility origination costs of $19 million, which are being amortized into interest expense using the effective interest method over the terms of the associated notes and credit facilities. | |||||||||
Notes | |||||||||
Our $550 million notes are guaranteed, jointly and severally, on a senior unsecured basis by certain of our domestic subsidiaries. The notes and the guarantees are unsecured senior obligations of CST and the guarantor subsidiaries, respectively. Accordingly, they are: equal in right of payment with all of our and the guarantors’ existing and future senior unsecured indebtedness; senior in right of payment to any of our and the guarantors’ future subordinated indebtedness; effectively subordinated to all of our and the guarantors’ existing and future secured indebtedness, including indebtedness under our new credit facilities; and effectively subordinated to all future indebtedness and other liabilities, including trade payables, of our non-guarantor subsidiaries (other than indebtedness and other liabilities owed to us). | |||||||||
If we sell certain assets and do not repay certain debt or reinvest the proceeds of such sales within certain periods of time, we will be required to use such proceeds to offer to repurchase the notes at 100% of their principal amount, plus accrued and unpaid interest, if any, to the date of repurchase. Upon the occurrence of certain specific change of control events, we will be required to offer to repurchase all outstanding notes at 101% of the aggregate principal amount of notes repurchased, plus accrued and unpaid interest, if any, to the date of repurchase. | |||||||||
The indenture governing the notes, among other things, imposes limitations on our ability to: borrow money or guarantee debt; create liens; pay dividends on or redeem or repurchase stock; make specified types of investments and acquisitions; enter into new lines of business; enter into transactions with affiliates; and sell assets or merge with other companies. | |||||||||
The notes were issued in a private transaction that was not subject to the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”). In connection with the offering of the notes, we entered into a registration rights agreement pursuant to which we and the guarantors of the notes agree to register substantially identical exchange notes under the Securities Act and permit holders to exchange the notes for the registered exchange notes. On November 8, 2013, we commenced such an exchange offer pursuant to an effective registration statement. In the exchange offer, we will exchange all outstanding notes that are validly tendered and not validly withdrawn prior to the expiration of the exchange offer with new notes with substantially identical terms. The exchange offer will expire at 5:00 p.m., New York City time, on December 11, 2013, unless we extend the offer. | |||||||||
Credit Facilities | |||||||||
Our credit facilities provide for an aggregate amount of $800 million in financing, with a final maturity date on May 1, 2018, consisting of the following: | |||||||||
• | a term loan facility in an aggregate principal amount of $500 million; and | ||||||||
• | a revolving credit facility in an aggregate principal amount of up to $300 million. | ||||||||
The credit facilities are guaranteed by our domestic subsidiaries and secured by security interests and liens on substantially all of our domestic subsidiaries’ assets, including 100% of the capital stock of our domestic subsidiaries and 65% of the voting equity interests and 100% of the non-voting equity interests of material, first-tier, foreign subsidiaries, subject to certain customary exceptions. The credit facilities have, among others, the following terms: | |||||||||
• | subject to exclusions, mandatory prepayments with the net cash proceeds of certain asset sales, insurance proceeds or condemnation awards, the incurrence of certain indebtedness and our excess cash flow (as defined in the credit agreement); | ||||||||
• | customary affirmative and negative covenants for credit agreements of this type, including limitations on us and our guarantor subsidiaries with respect to indebtedness, liens, fundamental changes, restrictive agreements, prepayments and amendments of certain indebtedness, dispositions of assets, acquisitions and other investments, sale leaseback transactions, conduct of business, transactions with affiliates and dividends and redemptions or repurchases of stock; and | ||||||||
• | financial covenants (as defined in the agreement governing the credit facilities) consisting of (a) a maximum total lease adjusted leverage ratio initially set at 3.75 to 1.00, (b) a minimum fixed charge coverage ratio set at 1.30 to 1.00, and (c) limitations on expansion capital expenditures. As of September 30, 2013, our lease adjusted leverage ratio and fixed charge coverage ratio were 2.95 and 4.93, respectively. | ||||||||
Borrowings under our credit facilities bear interest at the “London Interbank Offered Rate” (“LIBOR”) plus a margin, or an alternate base rate as defined under the agreement, plus a margin. Initially, all LIBOR loans have an applicable interest rate margin of 1.75%, and all alternate base rate loans have an applicable interest rate margin of 0.75%. Future interest rate margins will increase or decrease based on our leverage ratio as prescribed under the credit agreement governing the credit facilities. The revolving credit facility provides for customary fees, including commitment fees and other fees. | |||||||||
Outstanding borrowings under our term loan facility are LIBOR loans bearing interest at 1.93% (LIBOR plus 1.75%) as of September 30, 2013. | |||||||||
We are required to make principal payments on the term loan in accordance with an amortization schedule as follows (in millions): | |||||||||
Years Ending December 31, | Total Principal to be Repaid | ||||||||
2013 (remainder) | $ | 6 | |||||||
2014 | 34 | ||||||||
2015 | 47 | ||||||||
2016 | 69 | ||||||||
2017 | 75 | ||||||||
2018 | 263 | ||||||||
Total | $ | 494 | |||||||
The aggregate fair value and carrying amount of the notes and term loan at September 30, 2013 was $1.01 billion and $1.04 billion, respectively. The fair value of our debt is determined primarily using the market approach based on quoted prices provided by third-party brokers and vendor pricing services, but are not exchange-traded. These quoted prices are considered Level 2 inputs under the fair value hierarchy established by ASC 820, Fair Value Measurements and Disclosures. |
RelatedParty_Transactions
Related-Party Transactions | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||||||
Related-Party Transactions | ' | |||||||||||||||
RELATED-PARTY TRANSACTIONS | ||||||||||||||||
Purchased Motor Fuel | ||||||||||||||||
Motor fuel purchased by us from Valero is recorded as a component of cost of sales based on price formulas that vary from terminal to terminal. The actual prices we pay typically change daily, based on market fluctuations of wholesale motor fuel in the geographic locations where we purchase our motor fuel for resale. | ||||||||||||||||
Under the U.S. Fuel Supply Agreements and the Petroleum Product Supply Agreement in Canada, we purchase a substantial portion of our motor fuel from Valero at “per-terminal,” market-based prices. The pricing formulas under our supply agreements changed effective January 1, 2013 and our cost of sales increased as a result of differences in price formulas from those historically charged prior to the separation and distribution. These differences in price formulas increased our cost of sales $2 million and $1 million in Retail–U.S. and Retail–Canada, respectively, during the three months ended September 30, 2013, and $6 million and $7 million in Retail–U.S. and Retail–Canada, respectively, during the nine months ended September 30, 2013. In addition, the U.S. Fuel Supply Agreements and the Petroleum Product Supply Agreement in Canada differ from our arrangements prior to the separation and distribution by providing for payment terms of “net 10” days after taking title to the motor fuel versus “on delivered” payment. These new payment terms became effective at the time of the separation and distribution. Primarily as a result of this change in payment terms, our cash increased by $299 million during the nine months ended September 30, 2013 related to our “Accounts payable to Valero.” | ||||||||||||||||
Medical insurance, life insurance, and employee benefit plan expenses | ||||||||||||||||
Valero allocated these costs to us based on Valero’s determination of actual costs attributable to our employees, which we recorded as components of operating expenses and general and administrative expenses for all periods presented. In connection with the separation and distribution, we entered into an Employee Matters Agreement between us and Valero. The Employee Matters Agreement governs Valero’s and our compensation and employee benefit obligations with respect to the current and former employees of each company, and generally allocates liabilities and responsibilities relating to employee compensation and benefit plans and programs. In connection with the separation and distribution, we recognized a $15 million receivable from Valero in connection with Valero’s agreement to indemnify us for self-insurance obligations that we incurred up to and including the distribution date. | ||||||||||||||||
Certain corporate functions | ||||||||||||||||
As discussed in Note 1, certain corporate functions performed by Valero on our behalf prior to the separation and distribution were charged to us based primarily on specific identification of time and/or activities associated with CST, employee headcount or capital expenditures. We recorded these corporate allocations as a component of general and administrative expenses in the consolidated and combined statements of income. | ||||||||||||||||
Transition services agreements | ||||||||||||||||
In connection with the separation and distribution, we entered into two Transition Services Agreements: one between CST and Valero and one between our Canadian subsidiary and Valero. The Transition Services Agreements set forth the terms on which Valero provides to us, and we provide to Valero, on a temporary basis, certain services or functions that the companies historically have shared. Transition services include administrative, payroll, human resources, data processing, environmental health and safety, financial audit support, financial transaction support, legal support services, IT and network infrastructure systems and various other support and corporate services. The Transition Services Agreements provide for the provision of specified transition services generally for a period of up to eighteen months, on a cost or a cost-plus basis. We record the fee Valero charges us for these services as a component of general and administrative expenses. | ||||||||||||||||
We believe that the operating expenses and general and administrative expenses charged to us under the Transition Services Agreements or allocated to us and included in the accompanying consolidated and combined statements of income were a reasonable approximation of the costs related to CST’s operations. However, such related-party transactions cannot be presumed to be carried out on an arm’s-length basis as the requisite conditions of competitive, free-market dealings may not exist. For purposes of these financial statements, payables and receivables related to transactions between us and Valero, prior to the separation and distribution, are included as a component of the net parent investment. Subsequent to the separation and distribution, payables and receivables between us and Valero are shown as “Accounts Payable to Valero” on our consolidated balance sheet. | ||||||||||||||||
The following table reflects significant transactions with Valero (in millions): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Cost of sales | $ | 2,683 | $ | 2,817 | $ | 7,971 | $ | 8,207 | ||||||||
Operating expenses | — | 11 | 14 | 32 | ||||||||||||
General and administrative expenses | 1 | 9 | 13 | 26 | ||||||||||||
We did not have any other significant transactions with any related parties. | ||||||||||||||||
Net Parent Company Investment | ||||||||||||||||
The following is a reconciliation of amounts presented as “Net transfers to Valero” on the consolidated and combined statement of stockholders’ equity and “Net transfers to Valero” on the consolidated and combined statement of cash flows for the nine months ended September 30, 2013 (in millions): | ||||||||||||||||
Net transfers to Valero per the consolidated and combined statement of stockholders’ equity | $ | (744 | ) | |||||||||||||
Non-cash adjustments: | ||||||||||||||||
Net transfers of assets and liabilities with Valero | 366 | |||||||||||||||
Net transfers to Valero per the consolidated and combined statements of cash flows | $ | (378 | ) | |||||||||||||
During the third quarter of 2013, certain adjustments were made to true-up the differences between the book basis and the tax basis of certain assets and liabilities, which resulted in a $13 million decline to APIC as discussed in Note 1. |
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Information | ' | |||||||||||||||
SEGMENT INFORMATION | ||||||||||||||||
Our operations include (i) the sale of motor fuel at convenience stores, dealer/agent sites and cardlocks, (ii) the sale of convenience merchandise items and services at convenience stores and (iii) the sale of heating oil to residential customers and heating oil and motor fuel to small commercial customers. | ||||||||||||||||
We have two reportable segments: Retail–U.S. and Retail–Canada. The Retail–U.S. segment includes convenience stores located in the United States. The Retail–Canada segment includes convenience stores, dealer/agent sites, cardlock sites and heating oil operations located in Canada. Operating revenues from our heating oil business were less than 5% of our consolidated operating revenues for the three and nine months ended September 30, 2013 and have been included within the Retail–Canada segment information. | ||||||||||||||||
The reportable segments are strategic business units that experience different operating income margins due to geographic supply and demand attributes and specific country and local regulatory environments. Performance is evaluated based on operating income. There are no intersegment revenues. No single customer accounted for more than 10% of our consolidated and combined operating revenues. | ||||||||||||||||
The following table reflects activity related to our reportable segments (in millions): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Operating revenues | ||||||||||||||||
Retail–U.S. | $ | 2,013 | $ | 2,046 | $ | 5,948 | $ | 5,994 | ||||||||
Retail–Canada | 1,303 | 1,336 | 3,767 | 3,945 | ||||||||||||
Total | $ | 3,316 | $ | 3,382 | $ | 9,715 | $ | 9,939 | ||||||||
Gross Margin | ||||||||||||||||
Retail–U.S. | $ | 192 | $ | 151 | 519 | $ | 522 | |||||||||
Retail–Canada | 98 | 94 | 296 | 307 | ||||||||||||
Total | $ | 290 | $ | 245 | $ | 815 | $ | 829 | ||||||||
Depreciation, amortization and accretion expense | ||||||||||||||||
Retail–U.S. | $ | 21 | $ | 19 | $ | 63 | $ | 57 | ||||||||
Retail–Canada | 9 | 8 | 27 | 26 | ||||||||||||
Total | $ | 30 | $ | 27 | $ | 90 | $ | 83 | ||||||||
Operating income (loss) | ||||||||||||||||
Retail–U.S. | $ | 61 | $ | 26 | $ | 147 | $ | 165 | ||||||||
Retail–Canada | 28 | 24 | 87 | 97 | ||||||||||||
General and administrative expense | (21 | ) | (15 | ) | (56 | ) | (44 | ) | ||||||||
Total | $ | 68 | $ | 35 | $ | 178 | $ | 218 | ||||||||
Income before income taxes | ||||||||||||||||
Operating income | $ | 68 | $ | 35 | $ | 178 | $ | 218 | ||||||||
Other income, net | 1 | 1 | 3 | 1 | ||||||||||||
Interest expense | (10 | ) | — | (17 | ) | — | ||||||||||
Income before income tax expense | $ | 59 | $ | 36 | $ | 164 | $ | 219 | ||||||||
Capital expenditures | ||||||||||||||||
Retail–U.S. | $ | 37 | $ | 33 | $ | 115 | $ | 68 | ||||||||
Retail–Canada | 10 | 11 | 22 | 22 | ||||||||||||
Total | $ | 47 | $ | 44 | $ | 137 | $ | 90 | ||||||||
Operating revenues for our principal products were as follows (in millions): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Motor fuel sales | $ | 2,798 | $ | 2,873 | $ | 8,140 | $ | 8,363 | ||||||||
Merchandise sales | 413 | 399 | 1,164 | 1,130 | ||||||||||||
Other | 105 | 110 | 411 | 446 | ||||||||||||
Total operating revenues | $ | 3,316 | $ | 3,382 | $ | 9,715 | $ | 9,939 | ||||||||
Other operating revenues are derived from our Canadian heating oil business as well as revenues from car wash and commissions from lottery, money orders, air/water/vacuum services, video and game rentals and access to ATMs. | ||||||||||||||||
Long-lived assets include property and equipment, goodwill and intangible assets. Geographic information by country for long-lived assets consisted of the following (in millions): | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
U.S. | $ | 985 | $ | 938 | ||||||||||||
Canada | 367 | 379 | ||||||||||||||
Total long-lived assets | $ | 1,352 | $ | 1,317 | ||||||||||||
Total assets by reportable segment were as follows (in millions): | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Retail–U.S. | $ | 1,499 | $ | 1,154 | ||||||||||||
Retail–Canada | 791 | 555 | ||||||||||||||
Corporate | 32 | — | ||||||||||||||
Total assets | $ | 2,322 | $ | 1,709 | ||||||||||||
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Supplemental Cash Flow Information [Abstract] | ' | |||||||
Supplemental Cash Flow Information | ' | |||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||
In order to determine net cash provided by operating activities, net income is adjusted by, among other things, changes in current assets and current liabilities as follows (in millions): | ||||||||
Nine Months Ended | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
(Increase) decrease in current assets: | ||||||||
Receivables, net | $ | (61 | ) | $ | (21 | ) | ||
Inventories | 1 | 9 | ||||||
Prepaid expenses and other | (4 | ) | 3 | |||||
Increase (decrease) in current liabilities: | ||||||||
Accounts payable | 1 | 1 | ||||||
Accounts payable to Valero | 299 | — | ||||||
Accrued expenses | 15 | (5 | ) | |||||
Taxes other than income taxes | (61 | ) | 12 | |||||
Income taxes payable | 7 | — | ||||||
Changes in current assets and current liabilities | $ | 197 | $ | (1 | ) | |||
The above changes in current assets and current liabilities differ from changes between amounts reflected in the applicable balance sheets for the respective periods for the following reasons: | ||||||||
• | amounts accrued for capital expenditures are reflected in investing activities when such amounts are paid; and | |||||||
• | certain differences between balance sheet changes and the changes reflected above result from translating foreign currency denominated amounts at the applicable exchange rates as of each balance sheet date. | |||||||
We made interest payments of $5 million for the nine months ended September 30, 2013. We issued the notes to Valero in connection with the separation and distribution and Valero transferred the notes to a third-party lender to satisfy certain of Valero’s then-outstanding debt obligations. As a result, we did not receive cash proceeds related to the notes. | ||||||||
We issued 75,397,241 shares of our common stock to Valero, 80% of which were distributed to Valero’s stockholders and 20% of which were retained by Valero, in connection with the separation and distribution. As a result, we did not receive cash proceeds from the issuance of our common stock. | ||||||||
There were no significant interest payments, noncash investing or financing activities for the nine months ended September, 2012. | ||||||||
As consolidated subsidiaries of Valero, our financial results were included in the U.S. and Canada consolidated tax returns of Valero. As such, with the exception of certain states, we did not make cash tax payments directly to taxing jurisdictions; rather, our share of Valero’s tax payments were reflected as changes in “Net parent investment.” Direct cash payments for income taxes were $13 million during the nine months ended September 30, 2013. There were no significant direct cash payments for income taxes made during the nine months ended September 30, 2012. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Goodwill and Intangible Assets | ' | |||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ||||||||||||||||
Goodwill and intangible assets consisted of the following (in millions): | ||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | |||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Goodwill | $ | 18 | $ | — | ||||||||||||
Intangible assets: | ||||||||||||||||
Customer lists and other | 122 | 127 | $ | (88 | ) | $ | (86 | ) | ||||||||
Total | $ | 140 | $ | 127 | $ | (88 | ) | $ | (86 | ) | ||||||
The customer lists and other relate primarily to our Retail–Canada segment. Therefore, the historical gross carrying amounts are translated at each balance sheet date, resulting in changes to historical amounts presented. | ||||||||||||||||
Goodwill is not amortized, but instead is tested for impairment at the reporting unit level at least annually, and tested for impairment more frequently if events and circumstances indicate that the goodwill might be impaired. The annual impairment test of goodwill is performed as of the first day of the fourth quarter of our fiscal year. | ||||||||||||||||
In performing our annual impairment analysis, ASC 350–20, Intangibles–Goodwill and Other, allows us to use qualitative factors to determine whether it is more likely than not (likelihood of more than 50%) that the fair value of a reporting unit is less than its carrying amount, including goodwill. | ||||||||||||||||
If, after assessing the totality of events or circumstances, we determine that it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, no further testing is necessary. However, if we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then we perform the first step of the two-step goodwill impairment test. | ||||||||||||||||
In the first step of the goodwill impairment test, the reporting unit’s carrying amount (including goodwill) and its fair value are compared. If the estimated fair value of a reporting unit is less than the carrying value, a second step is performed to compute the amount of the impairment by determining an “implied fair value” of goodwill. The determination of our “implied fair value” requires us to allocate the estimated fair value of the reporting unit to the assets and liabilities of the reporting unit. Any unallocated fair value represents the “implied fair value” of goodwill, which is compared to the corresponding carrying value. If the “implied fair value” is less than the carrying value, an impairment charge would be recorded. |
Equity_Notes
Equity (Notes) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Equity [Abstract] | ' | |||||||
Equity | ' | |||||||
EQUITY | ||||||||
Share Activity | ||||||||
As of September 30, 2013, a total of 250 million shares of common stock, $0.01 par value, were authorized, of which 75,397,241 were issued and outstanding. | ||||||||
Stock-based compensation | ||||||||
Prior to the separation and distribution, Valero allocated stock-based compensation costs to us based on Valero’s determination of actual costs attributable to our employees. No stock-based awards of CST were issued in exchange for either vested or non-vested Valero stock-based awards held by our employees prior to the distribution. Valero accelerated the vesting of all of its non-vested restricted stock awards held by CST employees, including its named executive officers, in connection with the separation and distribution. As a result, we were charged for the remaining unrecognized stock-based compensation related to those awards at that time, which was $1 million. | ||||||||
Performance shares held by CST employees were forfeited pursuant to the provisions in the performance share agreements between Valero and the affected employees. With respect to stock options to purchase Valero stock held by CST employees, Valero has adjusted the exercise prices and the number of shares subject thereto to reflect the impact of the distribution, as more particularly set forth in the Employee Matters Agreement. | ||||||||
In anticipation of the distribution, Valero, as sole stockholder of CST, and the CST Board of Directors approved the 2013 CST Brands, Inc. Omnibus Stock Incentive Plan (the “Plan”). The Plan permits us to grant stock options, stock appreciation rights, restricted stock, restricted stock shares, other stock-based awards and cash awards to CST officers, directors and certain other employees. The Plan provided a pool of shares representing 10% of CST common stock issued and outstanding immediately following the separation and the distribution, or approximately 7.5 million shares of our common stock. We have granted the following stock-based awards under the Plan: | ||||||||
Actual Number of Awards | Weighted-Average Grant-Date Fair Value | |||||||
Stock options | 238,060 | $ | 11.83 | |||||
Restricted stock | 203,043 | $ | 29.72 | |||||
As of September 30, 2013, there were approximately 7.1 million shares available for grant under the Plan. | ||||||||
Compensation expense for stock-based awards is based on the fair values of the awards on the date of grant and is recognized on a straight-line basis over the vesting period of each vesting tranche. We record stock-based compensation as components of operating expenses and administrative expenses in the consolidated and combined statements of income. We recognized $1 million of stock-based compensation during the three months ended September 30, 2013. We recognized $3 million of stock-based compensation during the nine months ended September 30, 2013, including the $1 million allocated to us by Valero. | ||||||||
Stock Options | ||||||||
Stock options granted under the Plan become exercisable in equal increments on the first, second and third anniversaries of their date of grant, and expire on the tenth anniversary of their date of grant. Exercise prices of these stock options are equal to the market value of the common stock on the date of grant. Market value is defined by the Plan as the mean of the highest and lowest prices per share of our stock on the New York Stock Exchange on the date of grant. The weighted-average exercise price of stock options granted under the Plan was $29.84. | ||||||||
The fair value of each option was estimated on the date of grant using the Black-Scholes option-pricing model based on the exercise price and market value on the date of grant, and assumptions, including term, stock price volatility, risk-free interest rate and dividend yield. Expected term was estimated using the simplified method, which takes into account vesting and contractual term. The simplified method is being used to calculate expected term due to the lack of prior grant history and a relatively small number of recent expected life assumptions available from our peers. Expected stock price volatility was based on the weighted average of our peer group’s median implied volatility, our own mean reversion volatility, and the median of our peer group’s most recent volatilities over the expected term. The risk-free interest rate was based on the rate of a zero-coupon U.S. Treasury instrument with a remaining term approximately equal to the expected term. The risk free rate was calculated by interpolating between the published 5-year and 7-year U.S. Treasury spot rates. The expected dividend yield was based on the market value of the common stock on the date of grant (as defined by the Plan) and assumed future annual dividends over the expected term. | ||||||||
As of September 30, 2013, there was $2 million of unrecognized compensation cost related to unvested stock options. This cost is expected to be recognized over a weighted-average period of approximately 1.7 years. | ||||||||
Restricted Stock Awards | ||||||||
Restricted stock awards granted under the Plan vest under one of the following schedules: | ||||||||
• | in full on the first anniversary of their date of grant; | |||||||
• | in full on the third anniversary of their date of grant; or | |||||||
• | in three equal increments on the first, second and third anniversaries of their date of grant. | |||||||
The fair value of each share of restricted stock is estimated on the date of grant as the mean of the highest and lowest prices per share of our stock price on the NYSE on the date of grant. As of September 30, 2013, there was $5 million of unrecognized compensation cost related to unvested restricted stock. This cost is expected to be recognized over a weighted-average period of approximately 2.1 years. | ||||||||
Comprehensive Income | ||||||||
Comprehensive income for a period encompasses net income and all other changes in equity other than from transactions with our stockholders. Foreign currency translation adjustments are the only component of our accumulated other comprehensive income. Our other comprehensive income or loss before reclassifications results from foreign currencies (the Canadian dollar) that fluctuate in value compared to the U.S. dollar. Changes in foreign currency translation adjustment were as follows for the three and nine months ended September 30, 2013 (in millions): | ||||||||
Three Months Ended | Nine Months Ended | |||||||
30-Sep-13 | 30-Sep-13 | |||||||
Balance at the beginning of the period | $ | 135 | $ | 165 | ||||
Other comprehensive income (loss) before reclassifications | 12 | (18 | ) | |||||
Amounts reclassified from other comprehensive income | — | — | ||||||
Net other comprehensive income (loss) | 12 | (18 | ) | |||||
Balance at the end of the period | $ | 147 | $ | 147 | ||||
Fair_Value_Notes
Fair Value (Notes) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
Fair Value | ' | |||||||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||||||||
General | ||||||||||||||||||||
U.S. GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP requires the disclosure of the fair values of all financial instruments, regardless of whether they are recognized at their fair values or carrying amounts in our balance sheets. | ||||||||||||||||||||
U.S. GAAP provides a framework for measuring fair value and establishes a three-level fair value hierarchy that prioritizes inputs to valuation techniques based on the degree to which objective prices in external active markets are available to measure fair value. Following is a description of each of the levels of the fair value hierarchy. | ||||||||||||||||||||
• | Level 1–Observable inputs, such as unadjusted quoted prices in active markets for identical assets or liabilities. | |||||||||||||||||||
• | Level 2–Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. | |||||||||||||||||||
• | Level 3–Unobservable inputs for the asset or liability for which there is little, if any, market activity at the measurement date. Unobservable inputs reflect our own assumptions about what market participants would use to price the asset or liability. The inputs are developed based on the best information available in the circumstances, which might include occasional market quotes or sales of similar instruments or our own financial data such as internally developed pricing models, discounted cash flow methodologies, as well as instruments for which the fair value determination requires significant judgment. | |||||||||||||||||||
During the nine months ended September 30, 2013, there were no transfers between the fair value hierarchy levels. | ||||||||||||||||||||
We do not have any financial instruments measured at fair value on our balance sheets for any of the years presented. Because of their maturities and/or variable interest rates, certain financial instruments have fair values approximating their carrying values (Level 1). These instruments include cash, accounts receivable, our credit facilities and trade payables. The fair value disclosure related to our debt is located in Note 8. | ||||||||||||||||||||
Nonfinancial assets, such as property, plant and equipment, and nonfinancial liabilities are recognized at their carrying amounts in our balance sheets. U.S. GAAP does not permit nonfinancial assets and liabilities to be remeasured at their fair values on a recurring basis. However, U.S. GAAP requires the remeasurement of such assets and liabilities to their fair values upon the occurrence of certain events, such as the impairment of property, plant and equipment or goodwill. In addition, if such an event occurs, U.S. GAAP requires the disclosure of the fair value of the asset or liability along with other information, including the gain or loss recognized in income in the period the remeasurement occurred. | ||||||||||||||||||||
Nonrecurring Fair Value Measurements | ||||||||||||||||||||
The fair value disclosure related to our 2012 acquisition of Crackerbox is located in Note 2. | ||||||||||||||||||||
As discussed in Note 3, we concluded that certain of our U.S. retail sites were impaired as of September 30, 2013. To estimate fair value of the retail sites, we used an income approach reflecting internally developed discounted cash flows that included, among other things, our expectations of future cash flows based on sales volume, gross margins and operating expenses. | ||||||||||||||||||||
The table below presents the fair value of our nonfinancial assets measured on a nonrecurring basis during the three months ended September 30, 2013, and categorized according to the fair value hierarchy of the inputs utilized by us to determine the fair values as of September 30, 2013 (in millions): | ||||||||||||||||||||
Total Loss | ||||||||||||||||||||
Fair Value Measurements Using | Recognized | |||||||||||||||||||
Quoted | Significant | Total | During the | |||||||||||||||||
Prices in | Other | Significant | Fair Value | Three Months | ||||||||||||||||
Active | Observable | Unobservable | as of | Ended | ||||||||||||||||
Markets | Inputs | Inputs | September 30, | September 30, | ||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | 2013 | 2013 | ||||||||||||||||
Property and equipment | $ | — | $ | — | $ | 1 | $ | 1 | $ | 2 | ||||||||||
Guarantor_Subsidiaries_Notes
Guarantor Subsidiaries (Notes) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Guarantor Financial Statements [Abstract] | ' | |||||||||||||||||||
Guarantor Subsidiaries | ' | |||||||||||||||||||
GUARANTOR SUBSIDIARIES | ||||||||||||||||||||
CST’s wholly-owned, domestic subsidiaries (the “Guarantor Subsidiaries”) fully and unconditionally guarantee, on a joint and several basis, certain of the outstanding indebtedness of CST. The following consolidating and combining schedules present financial information on a consolidated and combined basis in conformity with the SEC’s Regulation S-X Rule 3-10(f): | ||||||||||||||||||||
CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||
(Unaudited, Millions of Dollars) | ||||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash | $ | — | $ | 261 | $ | 163 | $ | — | $ | 424 | ||||||||||
Receivables, net | — | 92 | 98 | — | 190 | |||||||||||||||
Inventories | — | 122 | 44 | — | 166 | |||||||||||||||
Deferred income taxes | — | 1 | 9 | — | 10 | |||||||||||||||
Prepaid expenses and other | — | 5 | 7 | — | 12 | |||||||||||||||
Total current assets | — | 481 | 321 | — | 802 | |||||||||||||||
Property and equipment, at cost | — | 1,445 | 498 | — | 1,943 | |||||||||||||||
Accumulated depreciation | — | (480 | ) | (163 | ) | — | (643 | ) | ||||||||||||
Property and equipment, net | — | 965 | 335 | — | 1,300 | |||||||||||||||
Goodwill and intangible assets, net | — | 20 | 32 | — | 52 | |||||||||||||||
Investment in subsidiaries | 1,659 | — | — | (1,659 | ) | — | ||||||||||||||
Deferred income taxes | — | — | 98 | — | 98 | |||||||||||||||
Other assets, net | 32 | 33 | 5 | — | 70 | |||||||||||||||
Total assets | $ | 1,691 | $ | 1,499 | $ | 791 | $ | (1,659 | ) | $ | 2,322 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Current portion of debt and capital lease obligations | $ | 31 | $ | 1 | $ | — | $ | — | $ | 32 | ||||||||||
Accounts payable | — | 49 | 33 | — | 82 | |||||||||||||||
Accounts payable to Valero | (1 | ) | 175 | 125 | — | 299 | ||||||||||||||
Dividends payable | 5 | — | — | — | 5 | |||||||||||||||
Accrued expenses | 11 | 26 | 22 | — | 59 | |||||||||||||||
Taxes other than income taxes | — | 25 | 3 | — | 28 | |||||||||||||||
Income taxes payable | — | 1 | 6 | — | 7 | |||||||||||||||
Total current liabilities | 46 | 277 | 189 | — | 512 | |||||||||||||||
Debt and capital lease obligations, less current portion | 1,013 | 3 | — | — | 1,016 | |||||||||||||||
Deferred income taxes | — | 92 | 2 | — | 94 | |||||||||||||||
Intercompany payables (receivables) | 30 | (30 | ) | — | — | — | ||||||||||||||
Other long-term liabilities | 15 | 69 | 29 | — | 113 | |||||||||||||||
Total liabilities | 1,104 | 411 | 220 | — | 1,735 | |||||||||||||||
Commitments and contingencies | ||||||||||||||||||||
Stockholders’ equity: | ||||||||||||||||||||
Common stock | 1 | — | — | — | 1 | |||||||||||||||
APIC | 382 | 1,037 | 541 | (1,578 | ) | 382 | ||||||||||||||
Retained earnings | 57 | 51 | 30 | (81 | ) | 57 | ||||||||||||||
AOCI | 147 | — | — | — | 147 | |||||||||||||||
Total stockholders’ equity | 587 | 1,088 | 571 | (1,659 | ) | 587 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,691 | $ | 1,499 | $ | 791 | $ | (1,659 | ) | $ | 2,322 | |||||||||
COMBINING BALANCE SHEETS | ||||||||||||||||||||
(Millions of Dollars) | ||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Combined | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash | $ | — | $ | 44 | $ | 17 | $ | — | $ | 61 | ||||||||||
Receivables, net | — | 41 | 93 | — | 134 | |||||||||||||||
Inventories | — | 121 | 47 | — | 168 | |||||||||||||||
Deferred income taxes | — | 4 | 9 | — | 13 | |||||||||||||||
Prepaid expenses and other | — | 3 | 5 | — | 8 | |||||||||||||||
Total current assets | — | 213 | 171 | — | 384 | |||||||||||||||
Property and equipment, at cost | — | 1,371 | 492 | — | 1,863 | |||||||||||||||
Accumulated depreciation | — | (435 | ) | (152 | ) | — | (587 | ) | ||||||||||||
Property and equipment, net | — | 936 | 340 | — | 1,276 | |||||||||||||||
Intangible assets, net | — | 2 | 39 | — | 41 | |||||||||||||||
Other assets, net | — | 3 | 5 | — | 8 | |||||||||||||||
Total assets | $ | — | $ | 1,154 | $ | 555 | $ | — | $ | 1,709 | ||||||||||
LIABILITIES AND NET INVESTMENT | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Current portion of capital lease obligations | $ | — | $ | 1 | $ | — | $ | — | $ | 1 | ||||||||||
Accounts payable | — | 52 | 43 | — | 95 | |||||||||||||||
Accrued expenses | — | 22 | 18 | — | 40 | |||||||||||||||
Taxes other than income taxes | — | 22 | 70 | — | 92 | |||||||||||||||
Income taxes payable | — | — | — | — | — | |||||||||||||||
Total current liabilities | — | 97 | 131 | — | 228 | |||||||||||||||
Capital lease obligations, less current portion | — | 4 | — | — | 4 | |||||||||||||||
Deferred income taxes | — | 110 | 13 | — | 123 | |||||||||||||||
Other long-term liabilities | — | 77 | 30 | — | 107 | |||||||||||||||
Total liabilities | — | 288 | 174 | — | 462 | |||||||||||||||
Commitments and contingencies | — | — | — | — | — | |||||||||||||||
Net investment: | ||||||||||||||||||||
Net parent investment | — | 866 | 216 | — | 1,082 | |||||||||||||||
AOCI | — | — | 165 | — | 165 | |||||||||||||||
Total net investment | — | 866 | 381 | — | 1,247 | |||||||||||||||
Total liabilities and net investment | $ | — | $ | 1,154 | $ | 555 | $ | — | $ | 1,709 | ||||||||||
CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||||||||||||||
(Unaudited, Millions of Dollars) | ||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Operating revenues | $ | — | $ | 2,013 | $ | 1,303 | $ | — | $ | 3,316 | ||||||||||
Cost of sales | — | 1,821 | 1,205 | — | 3,026 | |||||||||||||||
Gross margin | — | 192 | 98 | — | 290 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Operating expenses | — | 108 | 61 | — | 169 | |||||||||||||||
General and administrative expenses | 1 | 15 | 5 | — | 21 | |||||||||||||||
Depreciation, amortization and accretion expense | — | 21 | 9 | — | 30 | |||||||||||||||
Asset impairments | — | 2 | — | — | 2 | |||||||||||||||
Total operating expenses | 1 | 146 | 75 | — | 222 | |||||||||||||||
Operating income | (1 | ) | 46 | 23 | — | 68 | ||||||||||||||
Other income, net | — | — | 1 | — | 1 | |||||||||||||||
Interest expense | (10 | ) | — | — | — | (10 | ) | |||||||||||||
Equity in earnings of subsidiaries | 52 | — | — | (52 | ) | — | ||||||||||||||
Income before income tax expense | 41 | 46 | 24 | (52 | ) | 59 | ||||||||||||||
Income tax expense | — | 13 | 5 | — | 18 | |||||||||||||||
Net income | 41 | 33 | 19 | (52 | ) | 41 | ||||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Foreign currency translation adjustment | $ | 12 | $ | — | $ | — | $ | — | $ | 12 | ||||||||||
Comprehensive income | $ | 53 | $ | 33 | $ | 19 | $ | (52 | ) | $ | 53 | |||||||||
COMBINING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||||||||||||||
(Unaudited, Millions of Dollars) | ||||||||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Combined | ||||||||||||||||||
Operating revenues | $ | 2,046 | $ | 1,336 | $ | 3,382 | ||||||||||||||
Cost of sales | 1,895 | 1,242 | 3,137 | |||||||||||||||||
Gross margin | 151 | 94 | 245 | |||||||||||||||||
Operating expenses: | ||||||||||||||||||||
Operating expenses | 106 | 62 | 168 | |||||||||||||||||
General and administrative expenses | 11 | 4 | 15 | |||||||||||||||||
Depreciation, amortization and accretion expense | 19 | 8 | 27 | |||||||||||||||||
Total operating expenses | 136 | 74 | 210 | |||||||||||||||||
Operating income | 15 | 20 | 35 | |||||||||||||||||
Other income, net | 1 | — | 1 | |||||||||||||||||
Interest expense | — | — | — | |||||||||||||||||
Equity in earnings of subsidiaries | — | — | — | |||||||||||||||||
Income before income tax expense | 16 | 20 | 36 | |||||||||||||||||
Income tax expense | 7 | 5 | 12 | |||||||||||||||||
Net income | 9 | 15 | 24 | |||||||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Foreign currency translation adjustment | $ | — | $ | 13 | $ | 13 | ||||||||||||||
Comprehensive income | $ | 9 | $ | 28 | $ | 37 | ||||||||||||||
CONSOLIDATING AND COMBINING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||||||||||||||
(Unaudited, Millions of Dollars) | ||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated and Combined | ||||||||||||||||
Operating revenues | $ | — | $ | 5,948 | $ | 3,767 | $ | — | $ | 9,715 | ||||||||||
Cost of sales | — | 5,429 | 3,471 | — | 8,900 | |||||||||||||||
Gross margin | — | 519 | 296 | — | 815 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Operating expenses | — | 307 | 182 | — | 489 | |||||||||||||||
General and administrative expenses | 2 | 42 | 12 | — | 56 | |||||||||||||||
Depreciation, amortization and accretion expense | — | 63 | 27 | — | 90 | |||||||||||||||
Asset impairments | — | 2 | — | — | 2 | |||||||||||||||
Total operating expenses | 2 | 414 | 221 | — | 637 | |||||||||||||||
Operating income | (2 | ) | 105 | 75 | — | 178 | ||||||||||||||
Other income, net | — | — | 3 | — | 3 | |||||||||||||||
Interest expense | (17 | ) | — | — | — | (17 | ) | |||||||||||||
Equity in earnings of subsidiaries | 81 | — | — | (81 | ) | — | ||||||||||||||
Income before income tax expense | 62 | 105 | 78 | (81 | ) | 164 | ||||||||||||||
Income tax expense | — | 38 | 21 | — | 59 | |||||||||||||||
Net income | 62 | 67 | 57 | (81 | ) | 105 | ||||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Foreign currency translation adjustment | $ | (18 | ) | $ | — | $ | — | $ | — | $ | (18 | ) | ||||||||
Comprehensive income | $ | 44 | $ | 67 | $ | 57 | $ | (81 | ) | $ | 87 | |||||||||
COMBINING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||||||||||||||
(Unaudited, Millions of Dollars) | ||||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Combined | ||||||||||||||||||
Operating revenues | $ | 5,994 | $ | 3,945 | $ | 9,939 | ||||||||||||||
Cost of sales | 5,472 | 3,638 | 9,110 | |||||||||||||||||
Gross margin | 522 | 307 | 829 | |||||||||||||||||
Operating expenses: | ||||||||||||||||||||
Operating expenses | 300 | 184 | 484 | |||||||||||||||||
General and administrative expenses | 32 | 12 | 44 | |||||||||||||||||
Depreciation, amortization and accretion expense | 57 | 26 | 83 | |||||||||||||||||
Operating expenses | 389 | 222 | 611 | |||||||||||||||||
Operating income | 133 | 85 | 218 | |||||||||||||||||
Other income, net | — | 1 | 1 | |||||||||||||||||
Interest expense | — | — | — | |||||||||||||||||
Income before income tax expense | 133 | 86 | 219 | |||||||||||||||||
Income tax expense | 50 | 23 | 73 | |||||||||||||||||
Net income | 83 | 63 | 146 | |||||||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||
Foreign currency translation adjustment | $ | — | $ | 14 | $ | 14 | ||||||||||||||
Comprehensive income | $ | 83 | $ | 77 | $ | 160 | ||||||||||||||
CONSOLIDATING AND COMBINING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
(Unaudited, Millions of Dollars) | ||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated and Combined | ||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net income | $ | 62 | $ | 67 | $ | 57 | $ | (81 | ) | $ | 105 | |||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||||||||||
Stock-based compensation expense | — | 3 | — | — | 3 | |||||||||||||||
Depreciation, amortization and accretion expense | — | 63 | 27 | — | 90 | |||||||||||||||
Asset impairments | — | 2 | — | — | 2 | |||||||||||||||
Deferred income tax expense | — | 26 | (12 | ) | — | 14 | ||||||||||||||
Changes in current assets and current liabilities | 15 | 129 | 53 | — | 197 | |||||||||||||||
Equity in earnings of subsidiaries | (81 | ) | — | — | 81 | — | ||||||||||||||
Other operating activities, net | — | (1 | ) | — | — | (1 | ) | |||||||||||||
Net cash provided by (used in) operating activities | (4 | ) | 289 | 125 | — | 410 | ||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Capital expenditures | — | (115 | ) | (22 | ) | — | (137 | ) | ||||||||||||
Acquisition | — | — | (6 | ) | — | (6 | ) | |||||||||||||
Proceeds from dispositions of property and equipment | — | — | 1 | — | 1 | |||||||||||||||
Other investing activities, net | — | — | — | — | — | |||||||||||||||
Net cash used in investing activities | — | (115 | ) | (27 | ) | — | (142 | ) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Proceeds from issuance of long-term debt | 500 | — | — | — | 500 | |||||||||||||||
Debt issuance and credit facility origination costs | (19 | ) | — | — | — | (19 | ) | |||||||||||||
Intercompany funding | 29 | (29 | ) | — | — | — | ||||||||||||||
Payments of capital lease obligations | — | (1 | ) | — | — | (1 | ) | |||||||||||||
Payments on long-term debt | (6 | ) | — | — | — | (6 | ) | |||||||||||||
Net transfers (to)/from Valero | (500 | ) | 73 | 49 | — | (378 | ) | |||||||||||||
Net cash provided by financing activities | 4 | 43 | 49 | — | 96 | |||||||||||||||
Effect of foreign exchange rate changes on cash | — | — | (1 | ) | — | (1 | ) | |||||||||||||
Net increase in cash | — | 217 | 146 | — | 363 | |||||||||||||||
Cash at beginning of year | — | 44 | 17 | — | 61 | |||||||||||||||
Cash at end of period | $ | — | $ | 261 | $ | 163 | $ | — | $ | 424 | ||||||||||
COMBINING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
(Unaudited, Millions of Dollars) | ||||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Combined | ||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net income | $ | 83 | $ | 63 | $ | 146 | ||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
Stock-based compensation expense | 1 | — | 1 | |||||||||||||||||
Depreciation, amortization and accretion expense | 57 | 26 | 83 | |||||||||||||||||
Deferred income tax expense (benefit) | (1 | ) | 6 | 5 | ||||||||||||||||
Changes in current assets and current liabilities | (13 | ) | 12 | (1 | ) | |||||||||||||||
Other operating activities, net | 2 | 1 | 3 | |||||||||||||||||
Net cash provided by operating activities | 129 | 108 | 237 | |||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Capital expenditures | (68 | ) | (22 | ) | (90 | ) | ||||||||||||||
Acquisitions | (61 | ) | — | (61 | ) | |||||||||||||||
Proceeds from dispositions of property and equipment | 1 | 1 | 2 | |||||||||||||||||
Other investing activities, net | (1 | ) | (1 | ) | (2 | ) | ||||||||||||||
Net cash used in investing activities | (129 | ) | (22 | ) | (151 | ) | ||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Payments of capital lease obligations | (1 | ) | — | (1 | ) | |||||||||||||||
Net transfers to Parent | (62 | ) | (90 | ) | (152 | ) | ||||||||||||||
Net cash used in financing activities | (63 | ) | (90 | ) | (153 | ) | ||||||||||||||
Effect of foreign exchange rate changes on cash | — | — | — | |||||||||||||||||
Net decrease in cash | (63 | ) | (4 | ) | (67 | ) | ||||||||||||||
Cash at beginning of year | 116 | 16 | 132 | |||||||||||||||||
Cash at end of period | $ | 53 | $ | 12 | $ | 65 | ||||||||||||||
Significant_Accounting_Policie1
Significant Accounting Policies - Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
CST was incorporated in November 2012. In connection with its incorporation, CST issued 1,000 shares of common stock, par value $0.01 per share, to Valero for $10. CST was formed solely in contemplation of the separation and distribution and, prior to May 1, 2013, had not commenced operations and had no material assets, liabilities or commitments. | |
Prior to the separation and distribution, these financial statements reflect the combined historical financial position, results of operations and cash flows of Valero’s retail business in the U.S. and Canada that were owned by direct and indirect wholly-owned subsidiaries of Valero, including an allocable portion of Valero’s corporate costs. The transfer of the assets (including the equity interests of certain Valero subsidiaries), liabilities and operations of Valero’s retail business into CST occurred on May 1, 2013. However, for ease of reference, these consolidated and combined financial statements are referred to as those of CST. Unless otherwise stated or the context otherwise indicates, all references in these consolidated and combined financial statements to “us,” “our,” or “we” mean CST. | |
We operate in two segments: Retail–U.S. and Retail–Canada. Neither of our segments carried out transactions with the other during the periods presented; therefore, there were no intercompany transactions or accounts to be eliminated in connection with the consolidation or combination of these operations. | |
The unaudited combined financial statements are presented as if Valero’s retail businesses in the U.S. and Canada were combined for all periods prior to the separation and distribution. The assets and liabilities in the combined balance sheet have been reflected on a historical cost basis, as immediately prior to the separation and distribution. All of the assets and liabilities presented were wholly owned by Valero and were transferred within the Valero consolidated group. The combined statements of income prior to the separation and distribution also include expense allocations for certain corporate functions historically performed by Valero and not allocated to its operating segments, including allocations of general corporate expenses related to executive oversight, accounting, treasury, tax, legal, procurement, human resources and information technology (“IT”). These allocations were based primarily on specific identification of time and/or activities associated with CST’s operations, employee headcount or capital expenditures. We believe the assumptions underlying the combined financial statements, including the assumptions regarding allocating general corporate expenses from Valero, are reasonable. Subsequent to the separation and distribution, Valero continues to perform certain of these corporate functions on our behalf, for which we are charged a fee, in accordance with the Transition Services Agreements. Nevertheless, the combined financial statements may not include all of the actual expenses that would have been incurred had we operated as a stand-alone, publicly-traded company during the combined periods presented and may not reflect our combined financial position, results of operations and cash flows had we operated as a stand-alone, publicly-traded company during the combined periods presented. Actual costs that would have been incurred if we had operated as a stand-alone, publicly-traded company during the combined periods presented would depend on multiple factors, including organizational structure and strategic decisions made in various areas, including IT and related infrastructure. | |
Cash | ' |
Prior to the separation and distribution, we transferred cash to Valero daily and Valero funded our operating and investing activities as needed. Accordingly, cash held by Valero at the corporate level was not allocated to us. Cash presented on our combined balance sheet prior to the separation and distribution represented cash on hand at our convenience stores, cash that had not yet been transferred to Valero and cash held by us in automated teller machines (“ATMs”) in our Retail–Canada segment. We reflected transfers of cash to and from Valero’s cash management system as a component of net parent investment on our combined balance sheet, and these net transfers of cash were reflected as a financing activity in our combined statement of cash flows. We did not include any interest income on the net cash transfers to Valero. |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets Policies | 9 Months Ended |
Sep. 30, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
Goodwill and Intangible Assets | ' |
Goodwill is not amortized, but instead is tested for impairment at the reporting unit level at least annually, and tested for impairment more frequently if events and circumstances indicate that the goodwill might be impaired. The annual impairment test of goodwill is performed as of the first day of the fourth quarter of our fiscal year. | |
In performing our annual impairment analysis, ASC 350–20, Intangibles–Goodwill and Other, allows us to use qualitative factors to determine whether it is more likely than not (likelihood of more than 50%) that the fair value of a reporting unit is less than its carrying amount, including goodwill. | |
If, after assessing the totality of events or circumstances, we determine that it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, no further testing is necessary. However, if we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then we perform the first step of the two-step goodwill impairment test. | |
In the first step of the goodwill impairment test, the reporting unit’s carrying amount (including goodwill) and its fair value are compared. If the estimated fair value of a reporting unit is less than the carrying value, a second step is performed to compute the amount of the impairment by determining an “implied fair value” of goodwill. The determination of our “implied fair value” requires us to allocate the estimated fair value of the reporting unit to the assets and liabilities of the reporting unit. Any unallocated fair value represents the “implied fair value” of goodwill, which is compared to the corresponding carrying value. If the “implied fair value” is less than the carrying value, an impairment charge would be recorded. |
Acquisitions_Tables
Acquisitions (Tables) | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Business Combinations [Abstract] | ' | |||
Purchase Price Allocation | ' | |||
The purchase price allocation of the acquisition of Crackerbox was determined based on the acquisition-date fair values of the assets acquired and is as follows (in millions): | ||||
Inventories | $ | 3 | ||
Property and equipment | 38 | |||
Other assets | 2 | |||
Goodwill | 18 | |||
Total consideration | $ | 61 | ||
Asset_Impairments_Tables
Asset Impairments (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Asset Impairments [Abstract] | ' | |||||||
Asset Impairments | ' | |||||||
The aggregate carrying values, estimated fair values and asset impairments for these sites were as follows (in millions): | ||||||||
Three Months Ended | Nine Months Ended | |||||||
30-Sep-13 | 30-Sep-13 | |||||||
Carrying values | $ | 3 | $ | 3 | ||||
Less: Estimated fair values | (1 | ) | (1 | ) | ||||
Asset impairments | $ | 2 | $ | 2 | ||||
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Schedule of Earnings Per Common Share, Basic and Diluted | ' | |||||||||||||||
The following table provides a reconciliation of basic and diluted earnings per common share computations for the three and nine months ended September 30, 2013 and 2012 (in millions, except per share amounts): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended | |||||||||||||||
September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Earnings per common share: | ||||||||||||||||
Net income attributable to stockholders | $ | 41 | $ | 24 | $ | 105 | $ | 146 | ||||||||
Weighted-average common shares outstanding (in thousands) | 75,397 | 75,397 | 75,397 | 75,397 | ||||||||||||
Total earnings per share | $ | 0.55 | $ | 0.31 | $ | 1.39 | $ | 1.93 | ||||||||
Earnings per common share - assuming dilution: | ||||||||||||||||
Net income attributable to stockholders | $ | 41 | $ | 24 | $ | 105 | $ | 146 | ||||||||
Weighted-average common shares outstanding (in thousands) | 75,397 | 75,397 | 75,397 | 75,397 | ||||||||||||
Common equivalent shares: | ||||||||||||||||
Restricted stock (in thousands) | 35 | — | 19 | — | ||||||||||||
Weighted-average common shares outstanding - assuming dilution (in thousands) | 75,432 | 75,397 | 75,416 | 75,397 | ||||||||||||
Earnings per common shares - assuming dilution | $ | 0.55 | $ | 0.31 | $ | 1.39 | $ | 1.93 | ||||||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of Inventories | ' | |||||||
Inventories consisted of the following (in millions): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Convenience store merchandise | $ | 109 | $ | 111 | ||||
Motor fuel (at LIFO) | 56 | 56 | ||||||
Supplies | 1 | 1 | ||||||
Inventories | $ | 166 | $ | 168 | ||||
Debt_Tables
Debt (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Long-Term Debt Instruments | ' | ||||||||
Our balances for long-term debt and capital leases are as follows (in millions): | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
5.0% senior notes due 2023 | $ | 550 | $ | — | |||||
Term loan due 2018 (effective rate of 1.93% at September 30, 2013) | 494 | — | |||||||
Capital leases | 4 | 5 | |||||||
Total debt and capital leases outstanding | 1,048 | 5 | |||||||
Less current portion | (32 | ) | (1 | ) | |||||
Debt and capital leases, less current portion | $ | 1,016 | $ | 4 | |||||
Availability under the revolving credit facility (expires 2018): | |||||||||
Total available credit facility limit | $ | 300 | $ | — | |||||
Letters of credit outstanding | (4 | ) | — | ||||||
Maximum leverage ratio constraint (a) | — | — | |||||||
Total available and undrawn | $ | 296 | $ | — | |||||
(a) | Our credit facility contains a maximum lease adjusted leverage ratio of 3.75 to 1.00, and as such the amount that we can borrow under the revolving credit facility could potentially be constrained. As of September 30, 2013, our lease adjusted leverage ratio was 2.95; resulting in no additional constraint to the amount we could borrow under the revolving credit facility. | ||||||||
Schedule of Maturities of Long-Term Debt | ' | ||||||||
We are required to make principal payments on the term loan in accordance with an amortization schedule as follows (in millions): | |||||||||
Years Ending December 31, | Total Principal to be Repaid | ||||||||
2013 (remainder) | $ | 6 | |||||||
2014 | 34 | ||||||||
2015 | 47 | ||||||||
2016 | 69 | ||||||||
2017 | 75 | ||||||||
2018 | 263 | ||||||||
Total | $ | 494 | |||||||
RelatedParty_Transactions_Tabl
Related-Party Transactions (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||||||
Schedule of Related-Party Transactions | ' | |||||||||||||||
The following table reflects significant transactions with Valero (in millions): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Cost of sales | $ | 2,683 | $ | 2,817 | $ | 7,971 | $ | 8,207 | ||||||||
Operating expenses | — | 11 | 14 | 32 | ||||||||||||
General and administrative expenses | 1 | 9 | 13 | 26 | ||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Activity by Reportable Segment | ' | |||||||||||||||
The following table reflects activity related to our reportable segments (in millions): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Operating revenues | ||||||||||||||||
Retail–U.S. | $ | 2,013 | $ | 2,046 | $ | 5,948 | $ | 5,994 | ||||||||
Retail–Canada | 1,303 | 1,336 | 3,767 | 3,945 | ||||||||||||
Total | $ | 3,316 | $ | 3,382 | $ | 9,715 | $ | 9,939 | ||||||||
Gross Margin | ||||||||||||||||
Retail–U.S. | $ | 192 | $ | 151 | 519 | $ | 522 | |||||||||
Retail–Canada | 98 | 94 | 296 | 307 | ||||||||||||
Total | $ | 290 | $ | 245 | $ | 815 | $ | 829 | ||||||||
Depreciation, amortization and accretion expense | ||||||||||||||||
Retail–U.S. | $ | 21 | $ | 19 | $ | 63 | $ | 57 | ||||||||
Retail–Canada | 9 | 8 | 27 | 26 | ||||||||||||
Total | $ | 30 | $ | 27 | $ | 90 | $ | 83 | ||||||||
Operating income (loss) | ||||||||||||||||
Retail–U.S. | $ | 61 | $ | 26 | $ | 147 | $ | 165 | ||||||||
Retail–Canada | 28 | 24 | 87 | 97 | ||||||||||||
General and administrative expense | (21 | ) | (15 | ) | (56 | ) | (44 | ) | ||||||||
Total | $ | 68 | $ | 35 | $ | 178 | $ | 218 | ||||||||
Income before income taxes | ||||||||||||||||
Operating income | $ | 68 | $ | 35 | $ | 178 | $ | 218 | ||||||||
Other income, net | 1 | 1 | 3 | 1 | ||||||||||||
Interest expense | (10 | ) | — | (17 | ) | — | ||||||||||
Income before income tax expense | $ | 59 | $ | 36 | $ | 164 | $ | 219 | ||||||||
Capital expenditures | ||||||||||||||||
Retail–U.S. | $ | 37 | $ | 33 | $ | 115 | $ | 68 | ||||||||
Retail–Canada | 10 | 11 | 22 | 22 | ||||||||||||
Total | $ | 47 | $ | 44 | $ | 137 | $ | 90 | ||||||||
Operating Revenues from External Customers by Product | ' | |||||||||||||||
Operating revenues for our principal products were as follows (in millions): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Motor fuel sales | $ | 2,798 | $ | 2,873 | $ | 8,140 | $ | 8,363 | ||||||||
Merchandise sales | 413 | 399 | 1,164 | 1,130 | ||||||||||||
Other | 105 | 110 | 411 | 446 | ||||||||||||
Total operating revenues | $ | 3,316 | $ | 3,382 | $ | 9,715 | $ | 9,939 | ||||||||
Geographic Information by Segment for Long-Lived Assets | ' | |||||||||||||||
Geographic information by country for long-lived assets consisted of the following (in millions): | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
U.S. | $ | 985 | $ | 938 | ||||||||||||
Canada | 367 | 379 | ||||||||||||||
Total long-lived assets | $ | 1,352 | $ | 1,317 | ||||||||||||
Total Assets by Reportable Segment | ' | |||||||||||||||
Total assets by reportable segment were as follows (in millions): | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2013 | 2012 | |||||||||||||||
Retail–U.S. | $ | 1,499 | $ | 1,154 | ||||||||||||
Retail–Canada | 791 | 555 | ||||||||||||||
Corporate | 32 | — | ||||||||||||||
Total assets | $ | 2,322 | $ | 1,709 | ||||||||||||
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Supplemental Cash Flow Information [Abstract] | ' | |||||||
Changes in Current Assets and Current Liabilities | ' | |||||||
In order to determine net cash provided by operating activities, net income is adjusted by, among other things, changes in current assets and current liabilities as follows (in millions): | ||||||||
Nine Months Ended | ||||||||
September 30, | ||||||||
2013 | 2012 | |||||||
(Increase) decrease in current assets: | ||||||||
Receivables, net | $ | (61 | ) | $ | (21 | ) | ||
Inventories | 1 | 9 | ||||||
Prepaid expenses and other | (4 | ) | 3 | |||||
Increase (decrease) in current liabilities: | ||||||||
Accounts payable | 1 | 1 | ||||||
Accounts payable to Valero | 299 | — | ||||||
Accrued expenses | 15 | (5 | ) | |||||
Taxes other than income taxes | (61 | ) | 12 | |||||
Income taxes payable | 7 | — | ||||||
Changes in current assets and current liabilities | $ | 197 | $ | (1 | ) | |||
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Goodwill and Intangible Assets | ' | |||||||||||||||
Goodwill and intangible assets consisted of the following (in millions): | ||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | |||||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Goodwill | $ | 18 | $ | — | ||||||||||||
Intangible assets: | ||||||||||||||||
Customer lists and other | 122 | 127 | $ | (88 | ) | $ | (86 | ) | ||||||||
Total | $ | 140 | $ | 127 | $ | (88 | ) | $ | (86 | ) | ||||||
Equity_Tables
Equity (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Equity [Abstract] | ' | |||||||
Schedule of Share-Based Compensation, Stock Options, Activity | ' | |||||||
We have granted the following stock-based awards under the Plan: | ||||||||
Actual Number of Awards | Weighted-Average Grant-Date Fair Value | |||||||
Stock options | 238,060 | $ | 11.83 | |||||
Restricted stock | 203,043 | $ | 29.72 | |||||
Schedule of Changes in Foreign Currency Translation Adjustments | ' | |||||||
Changes in foreign currency translation adjustment were as follows for the three and nine months ended September 30, 2013 (in millions): | ||||||||
Three Months Ended | Nine Months Ended | |||||||
30-Sep-13 | 30-Sep-13 | |||||||
Balance at the beginning of the period | $ | 135 | $ | 165 | ||||
Other comprehensive income (loss) before reclassifications | 12 | (18 | ) | |||||
Amounts reclassified from other comprehensive income | — | — | ||||||
Net other comprehensive income (loss) | 12 | (18 | ) | |||||
Balance at the end of the period | $ | 147 | $ | 147 | ||||
Fair_Value_Tables
Fair Value (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||
The table below presents the fair value of our nonfinancial assets measured on a nonrecurring basis during the three months ended September 30, 2013, and categorized according to the fair value hierarchy of the inputs utilized by us to determine the fair values as of September 30, 2013 (in millions): | ||||||||||||||||||||
Total Loss | ||||||||||||||||||||
Fair Value Measurements Using | Recognized | |||||||||||||||||||
Quoted | Significant | Total | During the | |||||||||||||||||
Prices in | Other | Significant | Fair Value | Three Months | ||||||||||||||||
Active | Observable | Unobservable | as of | Ended | ||||||||||||||||
Markets | Inputs | Inputs | September 30, | September 30, | ||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | 2013 | 2013 | ||||||||||||||||
Property and equipment | $ | — | $ | — | $ | 1 | $ | 1 | $ | 2 | ||||||||||
Guarantor_Subsidiaries_Tables
Guarantor Subsidiaries (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Guarantor Financials [Abstract] | ' | ||||||||||||||||||||||||||||||||
Consolidating and Combining Balance Sheets | ' | ||||||||||||||||||||||||||||||||
CONSOLIDATING BALANCE SHEETS | |||||||||||||||||||||||||||||||||
(Unaudited, Millions of Dollars) | |||||||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||||||||||
Cash | $ | — | $ | 261 | $ | 163 | $ | — | $ | 424 | |||||||||||||||||||||||
Receivables, net | — | 92 | 98 | — | 190 | ||||||||||||||||||||||||||||
Inventories | — | 122 | 44 | — | 166 | ||||||||||||||||||||||||||||
Deferred income taxes | — | 1 | 9 | — | 10 | ||||||||||||||||||||||||||||
Prepaid expenses and other | — | 5 | 7 | — | 12 | ||||||||||||||||||||||||||||
Total current assets | — | 481 | 321 | — | 802 | ||||||||||||||||||||||||||||
Property and equipment, at cost | — | 1,445 | 498 | — | 1,943 | ||||||||||||||||||||||||||||
Accumulated depreciation | — | (480 | ) | (163 | ) | — | (643 | ) | |||||||||||||||||||||||||
Property and equipment, net | — | 965 | 335 | — | 1,300 | ||||||||||||||||||||||||||||
Goodwill and intangible assets, net | — | 20 | 32 | — | 52 | ||||||||||||||||||||||||||||
Investment in subsidiaries | 1,659 | — | — | (1,659 | ) | — | |||||||||||||||||||||||||||
Deferred income taxes | — | — | 98 | — | 98 | ||||||||||||||||||||||||||||
Other assets, net | 32 | 33 | 5 | — | 70 | ||||||||||||||||||||||||||||
Total assets | $ | 1,691 | $ | 1,499 | $ | 791 | $ | (1,659 | ) | $ | 2,322 | ||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||||||||||
Current portion of debt and capital lease obligations | $ | 31 | $ | 1 | $ | — | $ | — | $ | 32 | |||||||||||||||||||||||
Accounts payable | — | 49 | 33 | — | 82 | ||||||||||||||||||||||||||||
Accounts payable to Valero | (1 | ) | 175 | 125 | — | 299 | |||||||||||||||||||||||||||
Dividends payable | 5 | — | — | — | 5 | ||||||||||||||||||||||||||||
Accrued expenses | 11 | 26 | 22 | — | 59 | ||||||||||||||||||||||||||||
Taxes other than income taxes | — | 25 | 3 | — | 28 | ||||||||||||||||||||||||||||
Income taxes payable | — | 1 | 6 | — | 7 | ||||||||||||||||||||||||||||
Total current liabilities | 46 | 277 | 189 | — | 512 | ||||||||||||||||||||||||||||
Debt and capital lease obligations, less current portion | 1,013 | 3 | — | — | 1,016 | ||||||||||||||||||||||||||||
Deferred income taxes | — | 92 | 2 | — | 94 | ||||||||||||||||||||||||||||
Intercompany payables (receivables) | 30 | (30 | ) | — | — | — | |||||||||||||||||||||||||||
Other long-term liabilities | 15 | 69 | 29 | — | 113 | ||||||||||||||||||||||||||||
Total liabilities | 1,104 | 411 | 220 | — | 1,735 | ||||||||||||||||||||||||||||
Commitments and contingencies | |||||||||||||||||||||||||||||||||
Stockholders’ equity: | |||||||||||||||||||||||||||||||||
Common stock | 1 | — | — | — | 1 | ||||||||||||||||||||||||||||
APIC | 382 | 1,037 | 541 | (1,578 | ) | 382 | |||||||||||||||||||||||||||
Retained earnings | 57 | 51 | 30 | (81 | ) | 57 | |||||||||||||||||||||||||||
AOCI | 147 | — | — | — | 147 | ||||||||||||||||||||||||||||
Total stockholders’ equity | 587 | 1,088 | 571 | (1,659 | ) | 587 | |||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,691 | $ | 1,499 | $ | 791 | $ | (1,659 | ) | $ | 2,322 | ||||||||||||||||||||||
COMBINING BALANCE SHEETS | |||||||||||||||||||||||||||||||||
(Millions of Dollars) | |||||||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Combined | |||||||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||||||||||
Cash | $ | — | $ | 44 | $ | 17 | $ | — | $ | 61 | |||||||||||||||||||||||
Receivables, net | — | 41 | 93 | — | 134 | ||||||||||||||||||||||||||||
Inventories | — | 121 | 47 | — | 168 | ||||||||||||||||||||||||||||
Deferred income taxes | — | 4 | 9 | — | 13 | ||||||||||||||||||||||||||||
Prepaid expenses and other | — | 3 | 5 | — | 8 | ||||||||||||||||||||||||||||
Total current assets | — | 213 | 171 | — | 384 | ||||||||||||||||||||||||||||
Property and equipment, at cost | — | 1,371 | 492 | — | 1,863 | ||||||||||||||||||||||||||||
Accumulated depreciation | — | (435 | ) | (152 | ) | — | (587 | ) | |||||||||||||||||||||||||
Property and equipment, net | — | 936 | 340 | — | 1,276 | ||||||||||||||||||||||||||||
Intangible assets, net | — | 2 | 39 | — | 41 | ||||||||||||||||||||||||||||
Other assets, net | — | 3 | 5 | — | 8 | ||||||||||||||||||||||||||||
Total assets | $ | — | $ | 1,154 | $ | 555 | $ | — | $ | 1,709 | |||||||||||||||||||||||
LIABILITIES AND NET INVESTMENT | |||||||||||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||||||||||
Current portion of capital lease obligations | $ | — | $ | 1 | $ | — | $ | — | $ | 1 | |||||||||||||||||||||||
Accounts payable | — | 52 | 43 | — | 95 | ||||||||||||||||||||||||||||
Accrued expenses | — | 22 | 18 | — | 40 | ||||||||||||||||||||||||||||
Taxes other than income taxes | — | 22 | 70 | — | 92 | ||||||||||||||||||||||||||||
Income taxes payable | — | — | — | — | — | ||||||||||||||||||||||||||||
Total current liabilities | — | 97 | 131 | — | 228 | ||||||||||||||||||||||||||||
Capital lease obligations, less current portion | — | 4 | — | — | 4 | ||||||||||||||||||||||||||||
Deferred income taxes | — | 110 | 13 | — | 123 | ||||||||||||||||||||||||||||
Other long-term liabilities | — | 77 | 30 | — | 107 | ||||||||||||||||||||||||||||
Total liabilities | — | 288 | 174 | — | 462 | ||||||||||||||||||||||||||||
Commitments and contingencies | — | — | — | — | — | ||||||||||||||||||||||||||||
Net investment: | |||||||||||||||||||||||||||||||||
Net parent investment | — | 866 | 216 | — | 1,082 | ||||||||||||||||||||||||||||
AOCI | — | — | 165 | — | 165 | ||||||||||||||||||||||||||||
Total net investment | — | 866 | 381 | — | 1,247 | ||||||||||||||||||||||||||||
Total liabilities and net investment | $ | — | $ | 1,154 | $ | 555 | $ | — | $ | 1,709 | |||||||||||||||||||||||
Consolidating and Combining Income and Comprehensive Income Statements | ' | ||||||||||||||||||||||||||||||||
CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | |||||||||||||||||||||||||||||||||
(Unaudited, Millions of Dollars) | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||||||||||||||
Operating revenues | $ | — | $ | 2,013 | $ | 1,303 | $ | — | $ | 3,316 | |||||||||||||||||||||||
Cost of sales | — | 1,821 | 1,205 | — | 3,026 | ||||||||||||||||||||||||||||
Gross margin | — | 192 | 98 | — | 290 | ||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||
Operating expenses | — | 108 | 61 | — | 169 | ||||||||||||||||||||||||||||
General and administrative expenses | 1 | 15 | 5 | — | 21 | ||||||||||||||||||||||||||||
Depreciation, amortization and accretion expense | — | 21 | 9 | — | 30 | ||||||||||||||||||||||||||||
Asset impairments | — | 2 | — | — | 2 | ||||||||||||||||||||||||||||
Total operating expenses | 1 | 146 | 75 | — | 222 | ||||||||||||||||||||||||||||
Operating income | (1 | ) | 46 | 23 | — | 68 | |||||||||||||||||||||||||||
Other income, net | — | — | 1 | — | 1 | ||||||||||||||||||||||||||||
Interest expense | (10 | ) | — | — | — | (10 | ) | ||||||||||||||||||||||||||
Equity in earnings of subsidiaries | 52 | — | — | (52 | ) | — | |||||||||||||||||||||||||||
Income before income tax expense | 41 | 46 | 24 | (52 | ) | 59 | |||||||||||||||||||||||||||
Income tax expense | — | 13 | 5 | — | 18 | ||||||||||||||||||||||||||||
Net income | 41 | 33 | 19 | (52 | ) | 41 | |||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | $ | 12 | $ | — | $ | — | $ | — | $ | 12 | |||||||||||||||||||||||
Comprehensive income | $ | 53 | $ | 33 | $ | 19 | $ | (52 | ) | $ | 53 | ||||||||||||||||||||||
COMBINING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | |||||||||||||||||||||||||||||||||
(Unaudited, Millions of Dollars) | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2012 | |||||||||||||||||||||||||||||||||
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Combined | |||||||||||||||||||||||||||||||
Operating revenues | $ | 2,046 | $ | 1,336 | $ | 3,382 | |||||||||||||||||||||||||||
Cost of sales | 1,895 | 1,242 | 3,137 | ||||||||||||||||||||||||||||||
Gross margin | 151 | 94 | 245 | ||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||
Operating expenses | 106 | 62 | 168 | ||||||||||||||||||||||||||||||
General and administrative expenses | 11 | 4 | 15 | ||||||||||||||||||||||||||||||
Depreciation, amortization and accretion expense | 19 | 8 | 27 | ||||||||||||||||||||||||||||||
Total operating expenses | 136 | 74 | 210 | ||||||||||||||||||||||||||||||
Operating income | 15 | 20 | 35 | ||||||||||||||||||||||||||||||
Other income, net | 1 | — | 1 | ||||||||||||||||||||||||||||||
Interest expense | — | — | — | ||||||||||||||||||||||||||||||
Equity in earnings of subsidiaries | — | — | — | ||||||||||||||||||||||||||||||
Income before income tax expense | 16 | 20 | 36 | ||||||||||||||||||||||||||||||
Income tax expense | 7 | 5 | 12 | ||||||||||||||||||||||||||||||
Net income | 9 | 15 | 24 | ||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | $ | — | $ | 13 | $ | 13 | |||||||||||||||||||||||||||
Comprehensive income | $ | 9 | $ | 28 | $ | 37 | |||||||||||||||||||||||||||
CONSOLIDATING AND COMBINING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | |||||||||||||||||||||||||||||||||
(Unaudited, Millions of Dollars) | |||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated and Combined | |||||||||||||||||||||||||||||
Operating revenues | $ | — | $ | 5,948 | $ | 3,767 | $ | — | $ | 9,715 | |||||||||||||||||||||||
Cost of sales | — | 5,429 | 3,471 | — | 8,900 | ||||||||||||||||||||||||||||
Gross margin | — | 519 | 296 | — | 815 | ||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||
Operating expenses | — | 307 | 182 | — | 489 | ||||||||||||||||||||||||||||
General and administrative expenses | 2 | 42 | 12 | — | 56 | ||||||||||||||||||||||||||||
Depreciation, amortization and accretion expense | — | 63 | 27 | — | 90 | ||||||||||||||||||||||||||||
Asset impairments | — | 2 | — | — | 2 | ||||||||||||||||||||||||||||
Total operating expenses | 2 | 414 | 221 | — | 637 | ||||||||||||||||||||||||||||
Operating income | (2 | ) | 105 | 75 | — | 178 | |||||||||||||||||||||||||||
Other income, net | — | — | 3 | — | 3 | ||||||||||||||||||||||||||||
Interest expense | (17 | ) | — | — | — | (17 | ) | ||||||||||||||||||||||||||
Equity in earnings of subsidiaries | 81 | — | — | (81 | ) | — | |||||||||||||||||||||||||||
Income before income tax expense | 62 | 105 | 78 | (81 | ) | 164 | |||||||||||||||||||||||||||
Income tax expense | — | 38 | 21 | — | 59 | ||||||||||||||||||||||||||||
Net income | 62 | 67 | 57 | (81 | ) | 105 | |||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | $ | (18 | ) | $ | — | $ | — | $ | — | $ | (18 | ) | |||||||||||||||||||||
Comprehensive income | $ | 44 | $ | 67 | $ | 57 | $ | (81 | ) | $ | 87 | ||||||||||||||||||||||
COMBINING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | |||||||||||||||||||||||||||||||||
(Unaudited, Millions of Dollars) | |||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||||||
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Combined | |||||||||||||||||||||||||||||||
Operating revenues | $ | 5,994 | $ | 3,945 | $ | 9,939 | |||||||||||||||||||||||||||
Cost of sales | 5,472 | 3,638 | 9,110 | ||||||||||||||||||||||||||||||
Gross margin | 522 | 307 | 829 | ||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||
Operating expenses | 300 | 184 | 484 | ||||||||||||||||||||||||||||||
General and administrative expenses | 32 | 12 | 44 | ||||||||||||||||||||||||||||||
Depreciation, amortization and accretion expense | 57 | 26 | 83 | ||||||||||||||||||||||||||||||
Operating expenses | 389 | 222 | 611 | ||||||||||||||||||||||||||||||
Operating income | 133 | 85 | 218 | ||||||||||||||||||||||||||||||
Other income, net | — | 1 | 1 | ||||||||||||||||||||||||||||||
Interest expense | — | — | — | ||||||||||||||||||||||||||||||
Income before income tax expense | 133 | 86 | 219 | ||||||||||||||||||||||||||||||
Income tax expense | 50 | 23 | 73 | ||||||||||||||||||||||||||||||
Net income | 83 | 63 | 146 | ||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | $ | — | $ | 14 | $ | 14 | |||||||||||||||||||||||||||
Comprehensive income | $ | 83 | $ | 77 | $ | 160 | |||||||||||||||||||||||||||
Consolidating and Combining Statements of Cash Flows | ' | ||||||||||||||||||||||||||||||||
COMBINING STATEMENTS OF CASH FLOWS | |||||||||||||||||||||||||||||||||
(Unaudited, Millions of Dollars) | |||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated and Combined | |||||||||||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||||||||||||
Net income | $ | 62 | $ | 67 | $ | 57 | $ | (81 | ) | $ | 105 | ||||||||||||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | 3 | — | — | 3 | ||||||||||||||||||||||||||||
Depreciation, amortization and accretion expense | — | 63 | 27 | — | 90 | ||||||||||||||||||||||||||||
Asset impairments | — | 2 | — | — | 2 | ||||||||||||||||||||||||||||
Deferred income tax expense | — | 26 | (12 | ) | — | 14 | |||||||||||||||||||||||||||
Changes in current assets and current liabilities | 15 | 129 | 53 | — | 197 | ||||||||||||||||||||||||||||
Equity in earnings of subsidiaries | (81 | ) | — | — | 81 | — | |||||||||||||||||||||||||||
Other operating activities, net | — | (1 | ) | — | — | (1 | ) | ||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | (4 | ) | 289 | 125 | — | 410 | |||||||||||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||||||||||
Capital expenditures | — | (115 | ) | (22 | ) | — | (137 | ) | |||||||||||||||||||||||||
Acquisition | — | — | (6 | ) | — | (6 | ) | ||||||||||||||||||||||||||
Proceeds from dispositions of property and equipment | — | — | 1 | — | 1 | ||||||||||||||||||||||||||||
Other investing activities, net | — | — | — | — | — | ||||||||||||||||||||||||||||
Net cash used in investing activities | — | (115 | ) | (27 | ) | — | (142 | ) | |||||||||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||||||||||
Proceeds from issuance of long-term debt | 500 | — | — | — | 500 | ||||||||||||||||||||||||||||
Debt issuance and credit facility origination costs | (19 | ) | — | — | — | (19 | ) | ||||||||||||||||||||||||||
Intercompany funding | 29 | (29 | ) | — | — | — | |||||||||||||||||||||||||||
Payments of capital lease obligations | — | (1 | ) | — | — | (1 | ) | ||||||||||||||||||||||||||
Payments on long-term debt | (6 | ) | — | — | — | (6 | ) | ||||||||||||||||||||||||||
Net transfers (to)/from Valero | (500 | ) | 73 | 49 | — | (378 | ) | ||||||||||||||||||||||||||
Net cash provided by financing activities | 4 | 43 | 49 | — | 96 | ||||||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||||||||||||
Net increase in cash | — | 217 | 146 | — | 363 | ||||||||||||||||||||||||||||
Cash at beginning of year | — | 44 | 17 | — | 61 | ||||||||||||||||||||||||||||
Cash at end of period | $ | — | $ | 261 | $ | 163 | $ | — | $ | 424 | |||||||||||||||||||||||
COMBINING STATEMENTS OF CASH FLOWS | |||||||||||||||||||||||||||||||||
(Unaudited, Millions of Dollars) | |||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||||||
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Combined | |||||||||||||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||||||||||||
Net income | $ | 83 | $ | 63 | $ | 146 | |||||||||||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||||||||||||
Stock-based compensation expense | 1 | — | 1 | ||||||||||||||||||||||||||||||
Depreciation, amortization and accretion expense | 57 | 26 | 83 | ||||||||||||||||||||||||||||||
Deferred income tax expense (benefit) | (1 | ) | 6 | 5 | |||||||||||||||||||||||||||||
Changes in current assets and current liabilities | (13 | ) | 12 | (1 | ) | ||||||||||||||||||||||||||||
Other operating activities, net | 2 | 1 | 3 | ||||||||||||||||||||||||||||||
Net cash provided by operating activities | 129 | 108 | 237 | ||||||||||||||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||||||||||
Capital expenditures | (68 | ) | (22 | ) | (90 | ) | |||||||||||||||||||||||||||
Acquisitions | (61 | ) | — | (61 | ) | ||||||||||||||||||||||||||||
Proceeds from dispositions of property and equipment | 1 | 1 | 2 | ||||||||||||||||||||||||||||||
Other investing activities, net | (1 | ) | (1 | ) | (2 | ) | |||||||||||||||||||||||||||
Net cash used in investing activities | (129 | ) | (22 | ) | (151 | ) | |||||||||||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||||||||||
Payments of capital lease obligations | (1 | ) | — | (1 | ) | ||||||||||||||||||||||||||||
Net transfers to Parent | (62 | ) | (90 | ) | (152 | ) | |||||||||||||||||||||||||||
Net cash used in financing activities | (63 | ) | (90 | ) | (153 | ) | |||||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash | — | — | — | ||||||||||||||||||||||||||||||
Net decrease in cash | (63 | ) | (4 | ) | (67 | ) | |||||||||||||||||||||||||||
Cash at beginning of year | 116 | 16 | 132 | ||||||||||||||||||||||||||||||
Cash at end of period | $ | 53 | $ | 12 | $ | 65 | |||||||||||||||||||||||||||
COMBINING STATEMENTS OF CASH FLOWS | |||||||||||||||||||||||||||||||||
(Unaudited, Millions of Dollars) | |||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated and Combined | |||||||||||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||||||||||||
Net income | $ | 62 | $ | 67 | $ | 57 | $ | (81 | ) | $ | 105 | ||||||||||||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | 3 | — | — | 3 | ||||||||||||||||||||||||||||
Depreciation, amortization and accretion expense | — | 63 | 27 | — | 90 | ||||||||||||||||||||||||||||
Asset impairments | — | 2 | — | — | 2 | ||||||||||||||||||||||||||||
Deferred income tax expense | — | 26 | (12 | ) | — | 14 | |||||||||||||||||||||||||||
Changes in current assets and current liabilities | 15 | 129 | 53 | — | 197 | ||||||||||||||||||||||||||||
Equity in earnings of subsidiaries | (81 | ) | — | — | 81 | — | |||||||||||||||||||||||||||
Other operating activities, net | — | (1 | ) | — | — | (1 | ) | ||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | (4 | ) | 289 | 125 | — | 410 | |||||||||||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||||||||||
Capital expenditures | — | (115 | ) | (22 | ) | — | (137 | ) | |||||||||||||||||||||||||
Acquisition | — | — | (6 | ) | — | (6 | ) | ||||||||||||||||||||||||||
Proceeds from dispositions of property and equipment | — | — | 1 | — | 1 | ||||||||||||||||||||||||||||
Other investing activities, net | — | — | — | — | — | ||||||||||||||||||||||||||||
Net cash used in investing activities | — | (115 | ) | (27 | ) | — | (142 | ) | |||||||||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||||||||||
Proceeds from issuance of long-term debt | 500 | — | — | — | 500 | ||||||||||||||||||||||||||||
Debt issuance and credit facility origination costs | (19 | ) | — | — | — | (19 | ) | ||||||||||||||||||||||||||
Intercompany funding | 29 | (29 | ) | — | — | — | |||||||||||||||||||||||||||
Payments of capital lease obligations | — | (1 | ) | — | — | (1 | ) | ||||||||||||||||||||||||||
Payments on long-term debt | (6 | ) | — | — | — | (6 | ) | ||||||||||||||||||||||||||
Net transfers (to)/from Valero | (500 | ) | 73 | 49 | — | (378 | ) | ||||||||||||||||||||||||||
Net cash provided by financing activities | 4 | 43 | 49 | — | 96 | ||||||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||||||||||||
Net increase in cash | — | 217 | 146 | — | 363 | ||||||||||||||||||||||||||||
Cash at beginning of year | — | 44 | 17 | — | 61 | ||||||||||||||||||||||||||||
Cash at end of period | $ | — | $ | 261 | $ | 163 | $ | — | $ | 424 | |||||||||||||||||||||||
COMBINING STATEMENTS OF CASH FLOWS | |||||||||||||||||||||||||||||||||
(Unaudited, Millions of Dollars) | |||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||||||
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Combined | |||||||||||||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||||||||||||
Net income | $ | 83 | $ | 63 | $ | 146 | |||||||||||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||||||||||||
Stock-based compensation expense | 1 | — | 1 | ||||||||||||||||||||||||||||||
Depreciation, amortization and accretion expense | 57 | 26 | 83 | ||||||||||||||||||||||||||||||
Deferred income tax expense (benefit) | (1 | ) | 6 | 5 | |||||||||||||||||||||||||||||
Changes in current assets and current liabilities | (13 | ) | 12 | (1 | ) | ||||||||||||||||||||||||||||
Other operating activities, net | 2 | 1 | 3 | ||||||||||||||||||||||||||||||
Net cash provided by operating activities | 129 | 108 | 237 | ||||||||||||||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||||||||||
Capital expenditures | (68 | ) | (22 | ) | (90 | ) | |||||||||||||||||||||||||||
Acquisitions | (61 | ) | — | (61 | ) | ||||||||||||||||||||||||||||
Proceeds from dispositions of property and equipment | 1 | 1 | 2 | ||||||||||||||||||||||||||||||
Other investing activities, net | (1 | ) | (1 | ) | (2 | ) | |||||||||||||||||||||||||||
Net cash used in investing activities | (129 | ) | (22 | ) | (151 | ) | |||||||||||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||||||||||
Payments of capital lease obligations | (1 | ) | — | (1 | ) | ||||||||||||||||||||||||||||
Net transfers to Parent | (62 | ) | (90 | ) | (152 | ) | |||||||||||||||||||||||||||
Net cash used in financing activities | (63 | ) | (90 | ) | (153 | ) | |||||||||||||||||||||||||||
Effect of foreign exchange rate changes on cash | — | — | — | ||||||||||||||||||||||||||||||
Net decrease in cash | (63 | ) | (4 | ) | (67 | ) | |||||||||||||||||||||||||||
Cash at beginning of year | 116 | 16 | 132 | ||||||||||||||||||||||||||||||
Cash at end of period | $ | 53 | $ | 12 | $ | 65 | |||||||||||||||||||||||||||
Consolidating and Combining Statement of Changes in Equity | ' | ||||||||||||||||||||||||||||||||
COMBINING STATEMENT OF CHANGES IN EQUITY | |||||||||||||||||||||||||||||||||
(Unaudited, Millions of Dollars) | |||||||||||||||||||||||||||||||||
Common Stock | APIC | ||||||||||||||||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Net income | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Net transfers to Valero | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Issuance of stock at the separation and distribution | 1 | — | — | — | 1 | (1 | ) | — | — | (1 | ) | ||||||||||||||||||||||
Reclassification of net parent investment to APIC | — | — | — | — | — | 381 | 1,037 | 554 | (1,591 | ) | 381 | ||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | 2 | — | — | — | 2 | |||||||||||||||||||||||
Dividends | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | — | (13 | ) | 13 | — | ||||||||||||||||||||||
Balance as of September 30, 2013 | $ | 1 | $ | — | $ | — | $ | — | $ | 1 | $ | 382 | $ | 1,037 | $ | 541 | $ | (1,578 | ) | $ | 382 | ||||||||||||
Net Parent Investment | Retained Earnings | ||||||||||||||||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | — | $ | 866 | $ | 216 | $ | — | $ | 1,082 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Net income | — | 16 | 27 | — | 43 | 62 | 51 | 30 | (81 | ) | 62 | ||||||||||||||||||||||
Net transfers to Valero | 381 | 155 | 311 | (1,591 | ) | (744 | ) | — | — | — | — | — | |||||||||||||||||||||
Issuance of stock at the separation and distribution | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Reclassification of net parent investment to APIC | (381 | ) | (1,037 | ) | (554 | ) | 1,591 | (381 | ) | — | — | — | — | — | |||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Dividends | — | — | — | — | — | (5 | ) | — | — | — | (5 | ) | |||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Balance as of September 30, 2013 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 57 | $ | 51 | $ | 30 | $ | (81 | ) | $ | 57 | ||||||||||||
AOCI | Total | ||||||||||||||||||||||||||||||||
Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||||||||
Balance as of December 31, 2012 | $ | — | $ | — | $ | 165 | $ | — | $ | 165 | $ | — | $ | 866 | $ | 381 | $ | — | $ | 1,247 | |||||||||||||
Net income | — | — | — | — | — | 62 | 67 | 57 | (81 | ) | 105 | ||||||||||||||||||||||
Net transfers to Valero | — | — | — | — | — | 381 | 155 | 311 | (1,591 | ) | (744 | ) | |||||||||||||||||||||
Issuance of stock at the separation and distribution | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Reclassification of net parent investment to APIC | 165 | — | (165 | ) | — | — | 165 | — | (165 | ) | — | — | |||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | 2 | — | — | — | 2 | |||||||||||||||||||||||
Dividends | — | — | — | — | — | (5 | ) | — | — | — | (5 | ) | |||||||||||||||||||||
Other comprehensive loss | (18 | ) | — | — | — | (18 | ) | (18 | ) | — | (13 | ) | 13 | (18 | ) | ||||||||||||||||||
Balance as of September 30, 2013 | $ | 147 | $ | — | $ | — | $ | — | $ | 147 | $ | 587 | $ | 1,088 | $ | 571 | $ | (1,659 | ) | $ | 587 | ||||||||||||
Significant_Accounting_Policie2
Significant Accounting Policies - Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2013 | Sep. 30, 2013 | 1-May-13 | Dec. 31, 2012 | 1-May-13 | 1-May-13 | Nov. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Retail - Canada | Valero Energy Corporation | Valero Energy Corporation | Line of Credit | Revolving Credit Facility | Revolving Credit Facility | |||||
Separation and Distribution | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Spinoff transaction, ownership percentage by parent company stockholders | ' | ' | 80.00% | ' | ' | ' | ' | ' | ' | ' |
Equity method investment, ownership percentage | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' |
Aggregate new debt | ' | ' | $1,050,000,000 | ' | ' | ' | ' | ' | ' | ' |
Senior notes | 550,000,000 | 550,000,000 | ' | 0 | ' | ' | ' | ' | ' | ' |
Line of credit facility, maximum borrowing capacity | 800,000,000 | 800,000,000 | ' | ' | ' | ' | ' | 500,000,000 | 300,000,000 | 0 |
Letters of credit outstanding | ' | ' | ' | ' | ' | ' | ' | ' | -4,000,000 | 0 |
Adjustment to deferred tax liabilities paid by Valero | ' | ' | ' | ' | ' | 18,000,000 | ' | ' | ' | ' |
Net deferred tax asset | ' | ' | ' | ' | 115,000,000 | ' | ' | ' | ' | ' |
Deferred tax asset, change in amount | 13,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred state income tax expense (benefit) | ' | 7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Basis of Presentation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares, issued | 75,397,241 | 75,397,241 | ' | ' | ' | ' | 1,000 | ' | ' | ' |
Common stock, par value per share | $0.01 | $0.01 | ' | ' | ' | ' | $0.01 | ' | ' | ' |
Common stock, CST shares sold to Valero | $1,000,000 | $1,000,000 | ' | $0 | ' | ' | $10 | ' | ' | ' |
Acquisitions_Narrative_Details
Acquisitions - Narrative (Details) (USD $) | 1 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Jul. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Business Acquisition | ' | ' | ' |
Purchase price of acquired entity | $61 | ' | ' |
Purchase price allocation adjustment to goodwill | ' | 18 | ' |
Payments to acquire businesses, net of cash acquired | ' | $6 | $61 |
Acquisitions_Purchase_Price_Al
Acquisitions - Purchase Price Allocation of Crackerbox Acquisition (Details) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Business Combinations [Abstract] | ' |
Inventories | $3 |
Property and equipment | 38 |
Other assets | 2 |
Goodwill | 18 |
Total consideration | $61 |
Asset_Impairments_Details
Asset Impairments (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Impairment [Abstract] | ' | ' | ' | ' |
Carrying values of assets subject to impairment | $3 | ' | $3 | ' |
Fair values of assets subject to impairment | -1 | ' | -1 | ' |
Asset impairments | $2 | $0 | $2 | $0 |
Earnings_Per_Common_Share_Narr
Earnings Per Common Share - Narrative (Details) | 1-May-13 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Stock Options | Stock Options | Restricted Stock | Restricted Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | ' | ' | ' | ' |
Common stock, shares issued and outstanding | 75,397,241 | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share, amount | ' | 234,106 | 123,072 | 1,155 | 0 |
Earnings_Per_Common_Share_Deta
Earnings Per Common Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net income attributable to stockholders | $41 | $24 | $105 | $146 |
Weighted-average common shares outstanding (in thousands) | 75,397 | 75,397 | 75,397 | 75,397 |
Total earnings per share | $0.55 | $0.31 | $1.39 | $1.93 |
Weighted-average common shares outstanding (in thousands) | 75,397 | 75,397 | 75,397 | 75,397 |
Restricted stock (in thousands) | 35 | 0 | 19 | 0 |
Weighted-average common shares outstanding - assuming dilution (in thousands) | 75,432 | 75,397 | 75,416 | 75,397 |
Earnings per common share - assuming dilution | $0.55 | $0.31 | $1.39 | $1.93 |
Inventories_Narrative_Details
Inventories - Narrative (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Excess of market value over carrying amount of LIFO inventories | $56 | $56 |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule of Inventories | ' | ' |
Convenience store merchandise | $109 | $111 |
Motor fuel (at LIFO) | 56 | 56 |
Supplies | 1 | 1 |
Inventories | $166 | $168 |
Income_Taxes_Narrative_Details
Income Taxes - Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Effective income tax rate reconciliation, at federal statutory income tax rate | 31.00% | 33.00% | 36.00% |
U.S. Federal statutory tax rate | ' | ' | 35.00% |
Deferred state income tax expense (benefit) | ' | ' | $7 |
Effective income tax rate reconciliation, change in deferred tax assets valuation allowance | ' | ' | 4.00% |
Debt_Narrative_Details
Debt - Narrative (Details) (USD $) | 9 Months Ended | 9 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | 1-May-13 | |
Asset Sales | Change of Control | Senior Notes | ||||
Debt Instrument | ' | ' | ' | ' | ' | ' |
Debt issuance and credit facility origination costs | $19,000,000 | $0 | ' | ' | ' | ' |
Senior notes | 550,000,000 | ' | 0 | ' | ' | 550,000,000 |
Redemption price, percentage of principal amount | ' | ' | ' | 100.00% | 101.00% | ' |
Fixed charge coverage ratio | 4.93 | ' | ' | ' | ' | ' |
Total lease adjusted leverage ratio | 2.95 | ' | ' | ' | ' | ' |
Long-term debt, fair value | 1,010,000,000 | ' | ' | ' | ' | ' |
Long-term debt, carrying amount | $1,040,000,000 | ' | ' | ' | ' | ' |
Debt_Details
Debt (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Debt Instruments | ' | ' | ||
5.0% senior notes due 2023 | $550 | $0 | ||
Term loan due 2018 (effective rate of 1.93% at September 30, 2013) | 494 | 0 | ||
Capital leases | 4 | 5 | ||
Total debt outstanding | 1,048 | 5 | ||
Less current portion | -32 | -1 | ||
Debt, less current portion | 1,016 | 4 | ||
Availability Under Revolving Credit Facility (Expires 2018): | ' | ' | ||
Total available credit facility limit | 800 | ' | ||
Total lease adjusted leverage ratio | 2.95 | ' | ||
Revolving Credit Facility | ' | ' | ||
Availability Under Revolving Credit Facility (Expires 2018): | ' | ' | ||
Total available credit facility limit | 300 | 0 | ||
Letters of credit outstanding | -4 | 0 | ||
Maximum leverage ratio constraint | 0 | [1] | 0 | [1] |
Total available and undrawn | $296 | $0 | ||
Maximum | ' | ' | ||
Availability Under Revolving Credit Facility (Expires 2018): | ' | ' | ||
Total lease adjusted leverage ratio | 3.75 | ' | ||
[1] | Our credit facility contains a maximum lease adjusted leverage ratio of 3.75 to 1.00, and as such the amount that we can borrow under the revolving credit facility could potentially be constrained. As of September 30, 2013, our lease adjusted leverage ratio was 2.95; resulting in no additional constraint to the amount we could borrow under the revolving credit facility. |
Debt_Parenthetical_Details
Debt - Parenthetical (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Debt Instrument | ' |
Debt instrument, interest rate, stated percentage | 5.00% |
Debt instruments maturity date | '2023 |
Line of Credit | ' |
Debt Instrument | ' |
Term loan maturity date | 1-May-18 |
Line of Credit | London Interbank Offered Rate (LIBOR) | ' |
Debt Instrument | ' |
Line of credit facility, interest rate at period end | 1.93% |
Basis spreads on variable rate debt | 1.75% |
Debt_Credit_Facilities_Details
Debt - Credit Facilities (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 |
In Millions, unless otherwise specified | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Revolving Credit Facility | Revolving Credit Facility | Maximum | Minimum | |
Interest rate margin | London Interbank Offered Rate (LIBOR) | Alternate Base Rate | |||||||
Credit Facilities | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, maximum borrowing capacity | $800 | $500 | ' | ' | ' | $300 | $0 | ' | ' |
Term loan maturity date | ' | 1-May-18 | ' | ' | ' | ' | ' | ' | ' |
Security interests in the capital stock of domestic subsidiaries | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Security interests in the voting equity interests of foreign subsidiaries | 65.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Security interests in the non-voting equity interests of foreign subsidiaries | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Total lease adjusted leverage ratio | 2.95 | ' | ' | ' | ' | ' | ' | 3.75 | ' |
Fixed charge coverage ratio | 4.93 | ' | ' | ' | ' | ' | ' | ' | 1.3 |
Basis spreads on variable rate debt | ' | ' | 1.75% | 1.75% | 0.75% | ' | ' | ' | ' |
Line of credit facility, interest rate at period end | ' | ' | ' | 1.93% | ' | ' | ' | ' | ' |
Debt_Principal_Payments_Due_De
Debt - Principal Payments Due (Details) (Subsequent Event, USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Subsequent Event | ' |
Maturities of Long-Term Debt | ' |
2013 (remainder) | $6 |
2014 | 34 |
2015 | 47 |
2016 | 69 |
2017 | 75 |
2018 | 263 |
Total | $494 |
RelatedParty_Transactions_Narr
Related-Party Transactions - Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Related-Party Transaction | ' | ' | ' | ' | ' |
Increase in cost of sales | $3,026 | $3,137 | $8,900 | $9,110 | ' |
Accounts payable to Valero | 299 | ' | 299 | ' | 0 |
Retail - U.S. | Change in Motor Fuel Price Formulas | ' | ' | ' | ' | ' |
Related-Party Transaction | ' | ' | ' | ' | ' |
Increase in cost of sales | 2 | ' | 6 | ' | ' |
Retail - Canada | Change in Motor Fuel Price Formulas | ' | ' | ' | ' | ' |
Related-Party Transaction | ' | ' | ' | ' | ' |
Increase in cost of sales | $1 | ' | $7 | ' | ' |
RelatedParty_Transactions_Sign
Related-Party Transactions - Significant Transactions with Valero (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Related Party Transactions [Abstract] | ' | ' | ' | ' |
Cost of sales from transactions with related party | $2,683 | $2,817 | $7,971 | $8,207 |
Operating expenses from transactions with related party | 0 | 11 | 14 | 32 |
General and administrative expenses from transactions with related party | $1 | $9 | $13 | $26 |
RelatedParty_Transactions_Tran
Related-Party Transactions - Transfers to Valero (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 |
Related-Party Transaction | ' | ' | ' |
Net transfers to Valero per the consolidated and combined statement of stockholders’ equity | ' | ($744) | ' |
Net transfers to Valero per the consolidated and combined statements of cash flows | ' | -378 | -152 |
Deferred tax asset, change in amount | 13 | ' | ' |
Net Parent Investment | ' | ' | ' |
Related-Party Transaction | ' | ' | ' |
Net transfers to Valero per the consolidated and combined statement of stockholders’ equity | ' | -744 | ' |
Net transfers of assets and liabilities with Valero | ' | $366 | ' |
Segment_Information_Narrative_
Segment Information - Narrative (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
segments | |
Segment Reporting [Abstract] | ' |
Number of reportable segments | 2 |
Segment reporting information, intersegment revenue | $0 |
Entity-wide revenue, major customer, amount | $0 |
Segment_Information_Reportable
Segment Information - Reportable Segments (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information | ' | ' | ' | ' |
Operating revenues | $3,316 | $3,382 | $9,715 | $9,939 |
Gross margin | 290 | 245 | 815 | 829 |
Depreciation, amortization and accretion expense | 30 | 27 | 90 | 83 |
Operating income (loss) | 68 | 35 | 178 | 218 |
Other income, net | 1 | 1 | 3 | 1 |
Interest expense | 10 | 0 | 17 | 0 |
Income before income tax expense | 59 | 36 | 164 | 219 |
Capital expenditures | 47 | 44 | 137 | 90 |
Retail - U.S. | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Operating revenues | 2,013 | 2,046 | 5,948 | 5,994 |
Gross margin | 192 | 151 | 519 | 522 |
Depreciation, amortization and accretion expense | 21 | 19 | 63 | 57 |
Operating income (loss) | 61 | 26 | 147 | 165 |
Capital expenditures | 37 | 33 | 115 | 68 |
Retail - Canada | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Operating revenues | 1,303 | 1,336 | 3,767 | 3,945 |
Gross margin | 98 | 94 | 296 | 307 |
Depreciation, amortization and accretion expense | 9 | 8 | 27 | 26 |
Operating income (loss) | 28 | 24 | 87 | 97 |
Capital expenditures | 10 | 11 | 22 | 22 |
Corporate | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
General and administrative expense | ($21) | ($15) | ($56) | ($44) |
Segment_Information_Revenue_by
Segment Information - Revenue by Product (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenue from External Customers | ' | ' | ' | ' |
Operating revenues | $3,316 | $3,382 | $9,715 | $9,939 |
Motor Fuel Sales | ' | ' | ' | ' |
Revenue from External Customers | ' | ' | ' | ' |
Operating revenues | 2,798 | 2,873 | 8,140 | 8,363 |
Merchandise Sales | ' | ' | ' | ' |
Revenue from External Customers | ' | ' | ' | ' |
Operating revenues | 413 | 399 | 1,164 | 1,130 |
Other | ' | ' | ' | ' |
Revenue from External Customers | ' | ' | ' | ' |
Operating revenues | $105 | $110 | $411 | $446 |
Segment_Information_Geographic
Segment Information - Geographic Information by Country for Long-Lived Assets by Reportable Segment (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Geographic Information by Country for Long-Lived Assets | ' | ' |
Total long-lived assets | $1,352 | $1,317 |
U.S. | ' | ' |
Geographic Information by Country for Long-Lived Assets | ' | ' |
Long-lived assets in the U.S. | 985 | 938 |
Canada | ' | ' |
Geographic Information by Country for Long-Lived Assets | ' | ' |
Long-lived assets in Canada | $367 | $379 |
Segment_Information_Total_Asse
Segment Information - Total Assets by Reportable Segment (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Total Assets by Reportable Segments | ' | ' |
Reportable segment assets | $2,322 | $1,709 |
Retail - U.S. | ' | ' |
Total Assets by Reportable Segments | ' | ' |
Reportable segment assets | 1,499 | 1,154 |
Retail - Canada | ' | ' |
Total Assets by Reportable Segments | ' | ' |
Reportable segment assets | 791 | 555 |
Corporate | ' | ' |
Total Assets by Reportable Segments | ' | ' |
Reportable segment assets | $32 | $0 |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information - Narrative (Details) (USD $) | 9 Months Ended | |
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Other Significant Noncash Transactions | ' | ' |
Interest payments | $5 | ' |
Senior notes | 550 | 0 |
Common stock, shares, issued | 75,397,241 | ' |
Income taxes paid | $0 | ' |
Supplemental_Cash_Flow_Informa3
Supplemental Cash Flow Information - Changes in Current Assets and Current Liabilities (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
(Increase) decrease in current assets: | ' | ' |
Receivables, net | ($61) | ($21) |
Inventories | 1 | 9 |
Prepaid expenses and other | -4 | 3 |
Increase (decrease) in current liabilities: | ' | ' |
Accounts payable | 1 | 1 |
Accounts payable to Valero | 299 | 0 |
Accrued expenses | 15 | -5 |
Taxes other than income taxes | -61 | 12 |
Income taxes payable | 7 | 0 |
Changes in current assets and current liabilities | $197 | ($1) |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Goodwill and Intangible Assets | ' | ' |
Goodwill | $18 | $0 |
Intangible assets, customer lists and other | 122 | 127 |
Goodwill and intangible assets | 140 | 127 |
Intangible assets, accumulated amortization | ($88) | ($86) |
Equity_Narrative_Details
Equity - Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 |
Equity [Abstract] | ' | ' | ' |
Common stock, shares authorized | 250,000,000 | 250,000,000 | ' |
Common stock, par value per share | $0.01 | $0.01 | ' |
Common stock, shares, issued | 75,397,241 | 75,397,241 | ' |
Share-based compensation for services provided prior to legal separation | ' | $1 | ' |
Share-based compensation arrangement by share-based payment award, number of shares authorized | 7,500,000 | 7,500,000 | ' |
Share-based compensation arrangement by share-based payment award, number of shares available for grant | 7,100,000 | 7,100,000 | ' |
Stock-based compensation expense | 1 | 3 | 1 |
Share-based compensation arrangements by share-based payment award, options, grants in period, weighted average exercise price | $29.84 | ' | ' |
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, stock options | 2 | 2 | ' |
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, period for recognition | ' | '1 year 8 months 12 days | ' |
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, share-based awards other than options | $5 | $5 | ' |
Share-based compensation arrangement by share-based payment award, options, outstanding, weighted average remaining contractual term | ' | '2 years 1 month 6 days | ' |
Common stock, shares, outstanding | 75,397,241 | 75,397,241 | ' |
Equity_StockBased_Compensation
Equity Stock-Based Compensation (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Stock Options | ' |
Class of Stock | ' |
Actual number of awards | 238,060 |
Weighted-average grant-date fair value | $11.83 |
Restricted Stock | ' |
Class of Stock | ' |
Actual number of awards | 203,043 |
Weighted-average grant-date fair value | $29.72 |
Equity_Foreign_Currency_Transl
Equity Foreign Currency Translation Adjustment (Details) (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Foreign Currency Translation Adjustment [Abstract] | ' | ' |
Balance at the beginning of the period | $135 | $165 |
Other comprehensive income (loss) before reclassifications | 12 | -18 |
Amounts reclassified from other comprehensive income | 0 | 0 |
Net other comprehensive income (loss) | 12 | -18 |
Balance at the end of the period | $147 | $147 |
Fair_Value_Details
Fair Value (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Total loss recognized during the three months ended September 30, 2013 | $2 | $0 | $2 | $0 |
Nonrecurring | ' | ' | ' | ' |
Property and equipment, fair value | 1 | ' | 1 | ' |
Nonrecurring | Level 1 | ' | ' | ' | ' |
Property and equipment, fair value | 0 | ' | 0 | ' |
Nonrecurring | Level 2 | ' | ' | ' | ' |
Property and equipment, fair value | 0 | ' | 0 | ' |
Nonrecurring | Level 3 | ' | ' | ' | ' |
Property and equipment, fair value | $1 | ' | $1 | ' |
Guarantor_Subsidiaries_Guarant
Guarantor Subsidiaries - Guarantor Balance Sheet (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
Current Assets: | ' | ' | ' | ' |
Cash | $424,000,000 | $61,000,000 | $65,000,000 | $132,000,000 |
Receivables, net | 190,000,000 | 134,000,000 | ' | ' |
Inventories | 166,000,000 | 168,000,000 | ' | ' |
Deferred income taxes | 10,000,000 | 13,000,000 | ' | ' |
Prepaid expenses and other | 12,000,000 | 8,000,000 | ' | ' |
Total current assets | 802,000,000 | 384,000,000 | ' | ' |
Property and equipment, at cost | 1,943,000,000 | 1,863,000,000 | ' | ' |
Accumulated depreciation | -643,000,000 | -587,000,000 | ' | ' |
Property and equipment, net | 1,300,000,000 | 1,276,000,000 | ' | ' |
Intangible assets, net (including goodwill) | ' | 41,000,000 | ' | ' |
Goodwill and intangible assets, net | 52,000,000 | 41,000,000 | ' | ' |
Investments in subsidiaries | 0 | ' | ' | ' |
Deferred income taxes | 98,000,000 | 0 | ' | ' |
Other assets, net | 70,000,000 | 8,000,000 | ' | ' |
Total assets | 2,322,000,000 | 1,709,000,000 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Current portion of debt and capital lease obligations | 32,000,000 | 1,000,000 | ' | ' |
Accounts payable | 82,000,000 | 95,000,000 | ' | ' |
Accounts payable to Valero | 299,000,000 | 0 | ' | ' |
Dividends payable | 5,000,000 | 0 | ' | ' |
Accrued expenses | 59,000,000 | 40,000,000 | ' | ' |
Taxes other than income taxes | 28,000,000 | 92,000,000 | ' | ' |
Income taxes payable | 7,000,000 | 0 | ' | ' |
Total current liabilities | 512,000,000 | 228,000,000 | ' | ' |
Debt and capital lease obligations, less current portion | 1,016,000,000 | 4,000,000 | ' | ' |
Deferred income taxes | 94,000,000 | 123,000,000 | ' | ' |
Intercompany payables (receivables) | 0 | ' | ' | ' |
Other long-term liabilities | 113,000,000 | 107,000,000 | ' | ' |
Total liabilities | 1,735,000,000 | 462,000,000 | ' | ' |
Commitments and contingencies | ' | ' | ' | ' |
Stockholders’ Equity / Net Investment: | ' | ' | ' | ' |
Net parent investment | 0 | 1,082,000,000 | ' | ' |
Common stock | -1,000,000 | 0 | ' | ' |
Additional paid-in capital (APIC) | 382,000,000 | 0 | ' | ' |
Retained earnings | 57,000,000 | 0 | ' | ' |
Accumulated other comprehensive income (AOCI) | 147,000,000 | 165,000,000 | ' | ' |
Total stockholders’ equity / net investment | 587,000,000 | 1,247,000,000 | ' | ' |
Total liabilities and stockholders’ equity / net investment | 2,322,000,000 | 1,709,000,000 | ' | ' |
Parent Company | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash | 0 | 0 | ' | ' |
Receivables, net | 0 | 0 | ' | ' |
Inventories | 0 | 0 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Prepaid expenses and other | 0 | 0 | ' | ' |
Total current assets | 0 | 0 | ' | ' |
Property and equipment, at cost | 0 | 0 | ' | ' |
Accumulated depreciation | 0 | 0 | ' | ' |
Property and equipment, net | 0 | 0 | ' | ' |
Intangible assets, net (including goodwill) | ' | 0 | ' | ' |
Goodwill and intangible assets, net | 0 | ' | ' | ' |
Investments in subsidiaries | 1,659,000,000 | ' | ' | ' |
Deferred income taxes | 0 | ' | ' | ' |
Other assets, net | 32,000,000 | 0 | ' | ' |
Total assets | 1,691,000,000 | ' | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Current portion of debt and capital lease obligations | 31,000,000 | 0 | ' | ' |
Accounts payable | 0 | 0 | ' | ' |
Accounts payable to Valero | -1,000,000 | ' | ' | ' |
Dividends payable | 5,000,000 | ' | ' | ' |
Accrued expenses | 11,000,000 | 0 | ' | ' |
Taxes other than income taxes | 0 | 0 | ' | ' |
Income taxes payable | 0 | 0 | ' | ' |
Total current liabilities | 46,000,000 | 0 | ' | ' |
Debt and capital lease obligations, less current portion | 1,013,000,000 | 0 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Intercompany payables (receivables) | 30,000,000 | ' | ' | ' |
Other long-term liabilities | 15,000,000 | 0 | ' | ' |
Total liabilities | 1,104,000,000 | 0 | ' | ' |
Commitments and contingencies | ' | 0 | ' | ' |
Stockholders’ Equity / Net Investment: | ' | ' | ' | ' |
Net parent investment | ' | 0 | ' | ' |
Common stock | -1,000,000 | ' | ' | ' |
Additional paid-in capital (APIC) | 382,000,000 | ' | ' | ' |
Retained earnings | 57,000,000 | ' | ' | ' |
Accumulated other comprehensive income (AOCI) | 147,000,000 | 0 | ' | ' |
Total stockholders’ equity / net investment | 587,000,000 | 0 | ' | ' |
Total liabilities and stockholders’ equity / net investment | 1,691,000,000 | 0 | ' | ' |
Guarantor Subsidiaries | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash | 261,000,000 | 44,000,000 | 53,000,000 | 116,000,000 |
Receivables, net | 92,000,000 | 41,000,000 | ' | ' |
Inventories | 122,000,000 | 121,000,000 | ' | ' |
Deferred income taxes | 1,000,000 | 4,000,000 | ' | ' |
Prepaid expenses and other | 5,000,000 | 3,000,000 | ' | ' |
Total current assets | 481,000,000 | 213,000,000 | ' | ' |
Property and equipment, at cost | 1,445,000,000 | 1,371,000,000 | ' | ' |
Accumulated depreciation | -480,000,000 | -435,000,000 | ' | ' |
Property and equipment, net | 965,000,000 | 936,000,000 | ' | ' |
Intangible assets, net (including goodwill) | ' | 2,000,000 | ' | ' |
Goodwill and intangible assets, net | 20,000,000 | ' | ' | ' |
Investments in subsidiaries | 0 | ' | ' | ' |
Deferred income taxes | 0 | ' | ' | ' |
Other assets, net | 33,000,000 | 3,000,000 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Current portion of debt and capital lease obligations | 1,000,000 | 1,000,000 | ' | ' |
Accounts payable | 49,000,000 | 52,000,000 | ' | ' |
Accounts payable to Valero | 175,000,000 | ' | ' | ' |
Dividends payable | 0 | ' | ' | ' |
Accrued expenses | 26,000,000 | 22,000,000 | ' | ' |
Taxes other than income taxes | 25,000,000 | 22,000,000 | ' | ' |
Income taxes payable | 1,000,000 | 0 | ' | ' |
Total current liabilities | 277,000,000 | 97,000,000 | ' | ' |
Debt and capital lease obligations, less current portion | 3,000,000 | 4,000,000 | ' | ' |
Deferred income taxes | 92,000,000 | 110,000,000 | ' | ' |
Intercompany payables (receivables) | -30,000,000 | ' | ' | ' |
Other long-term liabilities | 69,000,000 | 77,000,000 | ' | ' |
Total liabilities | 411,000,000 | 288,000,000 | ' | ' |
Commitments and contingencies | ' | 0 | ' | ' |
Stockholders’ Equity / Net Investment: | ' | ' | ' | ' |
Net parent investment | ' | 866,000,000 | ' | ' |
Common stock | 0 | ' | ' | ' |
Additional paid-in capital (APIC) | 1,037,000,000 | ' | ' | ' |
Retained earnings | 51,000,000 | ' | ' | ' |
Accumulated other comprehensive income (AOCI) | 0 | 0 | ' | ' |
Total stockholders’ equity / net investment | 1,088,000,000 | 866,000,000 | ' | ' |
Total liabilities and stockholders’ equity / net investment | 1,499,000,000 | 1,154,000,000 | ' | ' |
Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash | 163,000,000 | 17,000,000 | 12,000,000 | 16,000,000 |
Receivables, net | 98,000,000 | 93,000,000 | ' | ' |
Inventories | 44,000,000 | 47,000,000 | ' | ' |
Deferred income taxes | 9,000,000 | 9,000,000 | ' | ' |
Prepaid expenses and other | 7,000,000 | 5,000,000 | ' | ' |
Total current assets | 321,000,000 | 171,000,000 | ' | ' |
Property and equipment, at cost | 498,000,000 | 492,000,000 | ' | ' |
Accumulated depreciation | -163,000,000 | -152,000,000 | ' | ' |
Property and equipment, net | 335,000,000 | 340,000,000 | ' | ' |
Intangible assets, net (including goodwill) | ' | 39,000,000 | ' | ' |
Goodwill and intangible assets, net | 32,000,000 | ' | ' | ' |
Investments in subsidiaries | 0 | ' | ' | ' |
Deferred income taxes | 98,000,000 | ' | ' | ' |
Other assets, net | 5,000,000 | 5,000,000 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Current portion of debt and capital lease obligations | 0 | 0 | ' | ' |
Accounts payable | 33,000,000 | 43,000,000 | ' | ' |
Accounts payable to Valero | 125,000,000 | ' | ' | ' |
Dividends payable | 0 | ' | ' | ' |
Accrued expenses | 22,000,000 | 18,000,000 | ' | ' |
Taxes other than income taxes | 3,000,000 | 70,000,000 | ' | ' |
Income taxes payable | 6,000,000 | 0 | ' | ' |
Total current liabilities | 189,000,000 | 131,000,000 | ' | ' |
Debt and capital lease obligations, less current portion | 0 | 0 | ' | ' |
Deferred income taxes | 2,000,000 | 13,000,000 | ' | ' |
Intercompany payables (receivables) | 0 | ' | ' | ' |
Other long-term liabilities | 29,000,000 | 30,000,000 | ' | ' |
Total liabilities | 220,000,000 | 174,000,000 | ' | ' |
Commitments and contingencies | ' | 0 | ' | ' |
Stockholders’ Equity / Net Investment: | ' | ' | ' | ' |
Net parent investment | ' | 216,000,000 | ' | ' |
Common stock | 0 | ' | ' | ' |
Additional paid-in capital (APIC) | 541,000,000 | ' | ' | ' |
Retained earnings | 30,000,000 | ' | ' | ' |
Accumulated other comprehensive income (AOCI) | 0 | 165,000,000 | ' | ' |
Total stockholders’ equity / net investment | 571,000,000 | 381,000,000 | ' | ' |
Total liabilities and stockholders’ equity / net investment | 791,000,000 | 555,000,000 | ' | ' |
Consolidation, Eliminations | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash | 0 | 0 | ' | ' |
Receivables, net | 0 | 0 | ' | ' |
Inventories | 0 | 0 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Prepaid expenses and other | 0 | 0 | ' | ' |
Total current assets | 0 | 0 | ' | ' |
Property and equipment, at cost | 0 | 0 | ' | ' |
Accumulated depreciation | 0 | 0 | ' | ' |
Property and equipment, net | 0 | 0 | ' | ' |
Intangible assets, net (including goodwill) | ' | 0 | ' | ' |
Goodwill and intangible assets, net | 0 | ' | ' | ' |
Investments in subsidiaries | -1,659,000,000 | ' | ' | ' |
Deferred income taxes | 0 | ' | ' | ' |
Other assets, net | 0 | 0 | ' | ' |
Total assets | -1,659,000,000 | 0 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Current portion of debt and capital lease obligations | 0 | 0 | ' | ' |
Accounts payable | 0 | 0 | ' | ' |
Accounts payable to Valero | 0 | ' | ' | ' |
Dividends payable | 0 | ' | ' | ' |
Accrued expenses | 0 | 0 | ' | ' |
Taxes other than income taxes | 0 | 0 | ' | ' |
Income taxes payable | 0 | 0 | ' | ' |
Total current liabilities | 0 | 0 | ' | ' |
Debt and capital lease obligations, less current portion | 0 | 0 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Intercompany payables (receivables) | 0 | ' | ' | ' |
Other long-term liabilities | 0 | 0 | ' | ' |
Total liabilities | 0 | 0 | ' | ' |
Commitments and contingencies | ' | 0 | ' | ' |
Stockholders’ Equity / Net Investment: | ' | ' | ' | ' |
Net parent investment | ' | 0 | ' | ' |
Common stock | 0 | ' | ' | ' |
Additional paid-in capital (APIC) | -1,578,000,000 | ' | ' | ' |
Retained earnings | -81,000,000 | ' | ' | ' |
Accumulated other comprehensive income (AOCI) | 0 | 0 | ' | ' |
Total stockholders’ equity / net investment | -1,659,000,000 | 0 | ' | ' |
Total liabilities and stockholders’ equity / net investment | ($1,659,000,000) | $0 | ' | ' |
Guarantor_Subsidiaries_Guarant1
Guarantor Subsidiaries - Guarantor Income and Comprehensive Income Statement (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Operating revenues | $3,316 | $3,382 | $9,715 | $9,939 |
Cost of sales | 3,026 | 3,137 | 8,900 | 9,110 |
Gross margin | 290 | 245 | 815 | 829 |
Operating expenses: | ' | ' | ' | ' |
Operating expenses | 169 | 168 | 489 | 484 |
General and administrative expenses | 21 | 15 | 56 | 44 |
Depreciation, amortization and accretion expense | 30 | 27 | 90 | 83 |
Asset impairments | 2 | 0 | 2 | 0 |
Total operating expenses | 222 | 210 | 637 | 611 |
Operating income | 68 | 35 | 178 | 218 |
Other income, net | 1 | 1 | 3 | 1 |
Interest expense | -10 | 0 | -17 | 0 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | ' |
Income before income tax expense | 59 | 36 | 164 | 219 |
Income tax expense | 18 | 12 | 59 | 73 |
Net income | 41 | 24 | 105 | 146 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Foreign currency translation adjustment | 12 | 13 | -18 | 14 |
Comprehensive income | 53 | 37 | 87 | 160 |
Parent Company | ' | ' | ' | ' |
Operating revenues | 0 | ' | 0 | ' |
Cost of sales | 0 | ' | ' | ' |
Gross margin | 0 | ' | 0 | ' |
Operating expenses: | ' | ' | ' | ' |
Operating expenses | 0 | ' | 0 | ' |
General and administrative expenses | 1 | ' | 2 | ' |
Depreciation, amortization and accretion expense | 0 | ' | 0 | ' |
Asset impairments | 0 | ' | 0 | ' |
Total operating expenses | 1 | ' | 2 | ' |
Operating income | -1 | ' | -2 | ' |
Other income, net | 0 | ' | 0 | ' |
Interest expense | -10 | ' | -17 | ' |
Equity in earnings of subsidiaries | 52 | ' | 81 | ' |
Income before income tax expense | 41 | ' | 62 | ' |
Income tax expense | 0 | ' | 0 | ' |
Net income | 41 | ' | 62 | ' |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Foreign currency translation adjustment | 12 | ' | -18 | ' |
Comprehensive income | 53 | ' | 44 | ' |
Guarantor Subsidiaries | ' | ' | ' | ' |
Operating revenues | 2,013 | 2,046 | 5,948 | 5,994 |
Cost of sales | 1,821 | 1,895 | 5,429 | 5,472 |
Gross margin | 192 | 151 | 519 | 522 |
Operating expenses: | ' | ' | ' | ' |
Operating expenses | 108 | 106 | 307 | 300 |
General and administrative expenses | 15 | 11 | 42 | 32 |
Depreciation, amortization and accretion expense | 21 | 19 | 63 | 57 |
Asset impairments | 2 | ' | 2 | ' |
Total operating expenses | 146 | 136 | 414 | 389 |
Operating income | 46 | 15 | 105 | 133 |
Other income, net | 0 | 1 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | ' |
Income before income tax expense | 46 | 16 | 105 | 133 |
Income tax expense | 13 | 7 | 38 | 50 |
Net income | 33 | 9 | 67 | 83 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 |
Comprehensive income | 33 | 9 | 67 | 83 |
Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Operating revenues | 1,303 | 1,336 | 3,767 | 3,945 |
Cost of sales | 1,205 | 1,242 | 3,471 | 3,638 |
Gross margin | 98 | 94 | 296 | 307 |
Operating expenses: | ' | ' | ' | ' |
Operating expenses | 61 | 62 | 182 | 184 |
General and administrative expenses | 5 | 4 | 12 | 12 |
Depreciation, amortization and accretion expense | 9 | 8 | 27 | 26 |
Asset impairments | 0 | ' | 0 | ' |
Total operating expenses | 75 | 74 | 221 | 222 |
Operating income | 23 | 20 | 75 | 85 |
Other income, net | 1 | 0 | 3 | 1 |
Interest expense | 0 | 0 | 0 | 0 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | ' |
Income before income tax expense | 24 | 20 | 78 | 86 |
Income tax expense | 5 | 5 | 21 | 23 |
Net income | 19 | 15 | 57 | 63 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Foreign currency translation adjustment | 0 | 13 | 0 | 14 |
Comprehensive income | 19 | 28 | 57 | 77 |
Consolidation, Eliminations | ' | ' | ' | ' |
Operating revenues | 0 | ' | 0 | ' |
Cost of sales | 0 | ' | 0 | ' |
Gross margin | 0 | ' | 0 | ' |
Operating expenses: | ' | ' | ' | ' |
Operating expenses | 0 | ' | 0 | ' |
General and administrative expenses | 0 | ' | 0 | ' |
Depreciation, amortization and accretion expense | 0 | ' | 0 | ' |
Asset impairments | 0 | ' | 0 | ' |
Total operating expenses | 0 | ' | 0 | ' |
Operating income | 0 | ' | 0 | ' |
Other income, net | 0 | ' | 0 | ' |
Interest expense | 0 | ' | 0 | ' |
Equity in earnings of subsidiaries | -52 | ' | -81 | ' |
Income before income tax expense | -52 | ' | -81 | ' |
Income tax expense | 0 | ' | 0 | ' |
Net income | -52 | ' | -81 | ' |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Foreign currency translation adjustment | 0 | ' | 0 | ' |
Comprehensive income | ($52) | ' | ($81) | ' |
Guarantor_Subsidiaries_Guarant2
Guarantor Subsidiaries - Guarantor Statements of Cash Flows (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash Flows From Operating Activities: | ' | ' |
Net income | $105 | $146 |
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: | ' | ' |
Stock-based compensation expense | 3 | 1 |
Depreciation, amortization and accretion expense | 90 | 83 |
Asset impairments | 2 | 0 |
Deferred income tax expense (benefit) | 14 | 5 |
Increase (decrease) in other current assets and liabilities, net | -197 | 1 |
Equity in earnings of subsidiaries | 0 | ' |
Other operating activities, net | -1 | 3 |
Net cash provided by operating activities | 410 | 237 |
Cash Flows From Investing Activities: | ' | ' |
Payments to Acquire Productive Assets | 137 | 90 |
Payments to acquire businesses, net of cash acquired | 6 | 61 |
Proceeds from dispositions of property and equipment | 1 | 2 |
Payments for (Proceeds from) Other Investing Activities | 0 | 2 |
Net cash used in investing activities | -142 | -151 |
Cash Fows From Financing Activities: | ' | ' |
Proceeds from issuance of long-term debt | 500 | 0 |
Debt issuance and credit facility origination costs | 19 | 0 |
Equity Method Investment, Unrealized Intercompany Profit (Loss) Not Eliminated, Amount | 0 | ' |
Payments of capital lease obligations | 1 | 1 |
Net transfers to Valero | -378 | -152 |
Repayments of Long-term Debt | 6 | 0 |
Proceeds from Issuance of Common Stock | -378 | ' |
Net cash provided by (used in) financing activities | 96 | -153 |
Effect of foreign exchange rate changes on cash | -1 | 0 |
Net increase (decrease) in cash | 363 | -67 |
Cash at beginning of period | 61 | 132 |
Cash at end of period | 424 | 65 |
Parent Company | ' | ' |
Cash Flows From Operating Activities: | ' | ' |
Net income | 62 | ' |
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: | ' | ' |
Stock-based compensation expense | 0 | ' |
Depreciation, amortization and accretion expense | 0 | ' |
Asset impairments | 0 | ' |
Deferred income tax expense (benefit) | 0 | ' |
Increase (decrease) in other current assets and liabilities, net | -15 | ' |
Equity in earnings of subsidiaries | 81 | ' |
Other operating activities, net | 0 | ' |
Net cash provided by operating activities | -4 | ' |
Cash Flows From Investing Activities: | ' | ' |
Payments to Acquire Productive Assets | 0 | ' |
Payments to acquire businesses, net of cash acquired | 0 | ' |
Proceeds from dispositions of property and equipment | 0 | ' |
Payments for (Proceeds from) Other Investing Activities | 0 | ' |
Net cash used in investing activities | 0 | ' |
Cash Fows From Financing Activities: | ' | ' |
Proceeds from issuance of long-term debt | 500 | ' |
Debt issuance and credit facility origination costs | 19 | ' |
Equity Method Investment, Unrealized Intercompany Profit (Loss) Not Eliminated, Amount | -29 | ' |
Payments of capital lease obligations | 0 | ' |
Repayments of Long-term Debt | 6 | ' |
Proceeds from Issuance of Common Stock | -500 | ' |
Net cash provided by (used in) financing activities | 4 | ' |
Effect of foreign exchange rate changes on cash | 0 | ' |
Net increase (decrease) in cash | 0 | ' |
Cash at beginning of period | 0 | ' |
Cash at end of period | 0 | ' |
Guarantor Subsidiaries | ' | ' |
Cash Flows From Operating Activities: | ' | ' |
Net income | 67 | 83 |
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: | ' | ' |
Stock-based compensation expense | 3 | 1 |
Depreciation, amortization and accretion expense | 63 | 57 |
Asset impairments | 2 | ' |
Deferred income tax expense (benefit) | 26 | -1 |
Increase (decrease) in other current assets and liabilities, net | -129 | 13 |
Equity in earnings of subsidiaries | 0 | ' |
Other operating activities, net | -1 | 2 |
Net cash provided by operating activities | 289 | 129 |
Cash Flows From Investing Activities: | ' | ' |
Payments to Acquire Productive Assets | 115 | 68 |
Payments to acquire businesses, net of cash acquired | 0 | 61 |
Proceeds from dispositions of property and equipment | 0 | 1 |
Payments for (Proceeds from) Other Investing Activities | 0 | 1 |
Net cash used in investing activities | -115 | -129 |
Cash Fows From Financing Activities: | ' | ' |
Proceeds from issuance of long-term debt | 0 | ' |
Debt issuance and credit facility origination costs | 0 | ' |
Equity Method Investment, Unrealized Intercompany Profit (Loss) Not Eliminated, Amount | 29 | ' |
Payments of capital lease obligations | 1 | 1 |
Net transfers to Valero | ' | -62 |
Repayments of Long-term Debt | 0 | ' |
Proceeds from Issuance of Common Stock | 73 | ' |
Net cash provided by (used in) financing activities | 43 | -63 |
Effect of foreign exchange rate changes on cash | 0 | 0 |
Net increase (decrease) in cash | 217 | -63 |
Cash at beginning of period | 44 | 116 |
Cash at end of period | 261 | 53 |
Non-Guarantor Subsidiaries | ' | ' |
Cash Flows From Operating Activities: | ' | ' |
Net income | 57 | 63 |
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: | ' | ' |
Stock-based compensation expense | 0 | 0 |
Depreciation, amortization and accretion expense | 27 | 26 |
Asset impairments | 0 | ' |
Deferred income tax expense (benefit) | -12 | 6 |
Increase (decrease) in other current assets and liabilities, net | -53 | -12 |
Equity in earnings of subsidiaries | 0 | ' |
Other operating activities, net | 0 | 1 |
Net cash provided by operating activities | 125 | 108 |
Cash Flows From Investing Activities: | ' | ' |
Payments to Acquire Productive Assets | 22 | 22 |
Payments to acquire businesses, net of cash acquired | 6 | 0 |
Proceeds from dispositions of property and equipment | 1 | 1 |
Payments for (Proceeds from) Other Investing Activities | 0 | 1 |
Net cash used in investing activities | -27 | -22 |
Cash Fows From Financing Activities: | ' | ' |
Proceeds from issuance of long-term debt | 0 | ' |
Debt issuance and credit facility origination costs | 0 | ' |
Equity Method Investment, Unrealized Intercompany Profit (Loss) Not Eliminated, Amount | 0 | ' |
Payments of capital lease obligations | 0 | 0 |
Net transfers to Valero | ' | -90 |
Repayments of Long-term Debt | 0 | ' |
Proceeds from Issuance of Common Stock | 49 | ' |
Net cash provided by (used in) financing activities | 49 | -90 |
Effect of foreign exchange rate changes on cash | -1 | 0 |
Net increase (decrease) in cash | 146 | -4 |
Cash at beginning of period | 17 | 16 |
Cash at end of period | 163 | 12 |
Consolidation, Eliminations | ' | ' |
Cash Flows From Operating Activities: | ' | ' |
Net income | -81 | ' |
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: | ' | ' |
Stock-based compensation expense | 0 | ' |
Depreciation, amortization and accretion expense | 0 | ' |
Asset impairments | 0 | ' |
Deferred income tax expense (benefit) | 0 | ' |
Increase (decrease) in other current assets and liabilities, net | 0 | ' |
Equity in earnings of subsidiaries | -81 | ' |
Other operating activities, net | 0 | ' |
Net cash provided by operating activities | 0 | ' |
Cash Flows From Investing Activities: | ' | ' |
Payments to Acquire Productive Assets | 0 | ' |
Payments to acquire businesses, net of cash acquired | 0 | ' |
Proceeds from dispositions of property and equipment | 0 | ' |
Payments for (Proceeds from) Other Investing Activities | 0 | ' |
Net cash used in investing activities | 0 | ' |
Cash Fows From Financing Activities: | ' | ' |
Proceeds from issuance of long-term debt | 0 | ' |
Debt issuance and credit facility origination costs | 0 | ' |
Equity Method Investment, Unrealized Intercompany Profit (Loss) Not Eliminated, Amount | 0 | ' |
Payments of capital lease obligations | 0 | ' |
Repayments of Long-term Debt | 0 | ' |
Proceeds from Issuance of Common Stock | 0 | ' |
Net cash provided by (used in) financing activities | 0 | ' |
Effect of foreign exchange rate changes on cash | 0 | ' |
Net increase (decrease) in cash | 0 | ' |
Cash at beginning of period | 0 | ' |
Cash at end of period | $0 | ' |
Guarantor_Subsidiaries_Guarant3
Guarantor Subsidiaries - Guarantor Statement of Changes in Equity (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Parent Company | Parent Company | Guarantor Subsidiaries | Guarantor Subsidiaries | Guarantor Subsidiaries | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Intersegment Elimination | Consolidation, Eliminations | Consolidation, Eliminations | Common Stock Par Value | Common Stock Par Value | Common Stock Par Value | Common Stock Par Value | Common Stock Par Value | Common Stock Par Value | Common Stock Par Value | Common Stock Par Value | Additional Paid-in Capital | Additional Paid-in Capital | Additional Paid-in Capital | Additional Paid-in Capital | Additional Paid-in Capital | Net Parent Investment | Net Parent Investment | Net Parent Investment | Net Parent Investment | Net Parent Investment | Retained Earnings | Retained Earnings | Retained Earnings | Retained Earnings | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | |||||
Parent Company | Guarantor Subsidiaries | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidation, Eliminations | Consolidation, Eliminations | Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidation, Eliminations | Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Intersegment Elimination | Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Intersegment Elimination | Parent Company | Guarantor Subsidiaries | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidation, Eliminations | Consolidation, Eliminations | |||||||||||||||||||||||
Stockholders' equity | ' | ' | $1,247 | ' | ' | $0 | ' | ' | $866 | ' | ' | ' | $381 | ' | $0 | ' | ' | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | ' | $0 | $1,082 | $0 | $866 | $216 | $0 | $0 | $0 | $0 | $0 | $0 | $165 | $0 | $0 | $0 | $165 | $0 | $0 |
Net income | 41 | 24 | 105 | 146 | 41 | 62 | 33 | 9 | 67 | 83 | 19 | 15 | 57 | 63 | -81 | -52 | -81 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43 | ' | 16 | 27 | ' | 62 | 62 | 51 | 30 | -81 | ' | ' | ' | ' | ' | ' | ' |
Net transfers to Valero | ' | ' | -744 | ' | ' | 381 | ' | ' | 155 | ' | ' | ' | 311 | ' | -1,591 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -744 | 381 | 155 | 311 | -1,591 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of stock at the separation and distribution | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1 | ' | ' | ' | ' | ' | ' | -1 | -1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification of net parent investment to APIC | ' | ' | 0 | ' | ' | 165 | ' | ' | ' | ' | ' | ' | 165 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 381 | 381 | 1,037 | 554 | -1,591 | -381 | -381 | -1,037 | -554 | 1,591 | ' | ' | ' | ' | ' | 0 | 165 | ' | ' | -165 | ' | ' |
Stock-based compensation expense | ' | ' | 2 | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends | ' | ' | -5 | ' | ' | -5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -5 | -5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other comprehensive loss | -12 | -13 | 18 | -14 | ' | 18 | ' | ' | ' | ' | ' | ' | -13 | ' | -13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | 13 | -13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18 | 18 | ' | ' | ' | ' | ' |
Stockholders' equity | $587 | ' | $587 | ' | $587 | $587 | $1,088 | ' | $1,088 | ' | $571 | ' | $571 | ' | ($1,659) | ' | ' | $1 | $1 | $0 | $0 | $0 | $0 | $0 | $0 | $382 | $382 | $1,037 | $541 | ($1,578) | $0 | $0 | $0 | $0 | $0 | $57 | $57 | $51 | $30 | ($81) | $147 | $147 | $0 | $0 | $0 | $0 | $0 |