Guarantor Subsidiaries | 6 Months Ended | 12 Months Ended |
Jun. 30, 2013 | Dec. 31, 2012 |
Guarantor Subsidiaries [Abstract] | | |
Condensed Financial Statements | GUARANTOR SUBSIDIARIES | GUARANTOR SUBSIDIARIES |
CST Brands, Inc.’s (the “Parent Company”) wholly-owned, domestic subsidiaries (the “Guarantor Subsidiaries”) fully and unconditionally guarantee on a joint and several basis certain of the outstanding indebtedness of CST Brands, Inc. 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): | In connection with the separation and distribution, CST Brands, Inc. (the “Parent Company”) issued $550 million aggregate principal amount of senior unsecured bonds which are fully and unconditionally guaranteed, on a joint and several basis, by its wholly-owned, domestic subsidiaries (the “Guarantor Subsidiaries”). The following combining schedules present financial information on a combined basis in conformity with the SEC’s Regulation S-X Rule 3-10(f): |
| COMBINING BALANCE SHEETS |
COMBINING BALANCE SHEETS | (Millions of Dollars) |
(Unaudited, Millions of Dollars) | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 31-Dec-12 | | | | | | | | | | |
| 30-Jun-13 | | | | | | | | | | | | | | | Parent Company | | Guarantor Subsidiaries | | Non-Guarantor Subsidiaries | | Eliminations | | Combined | | | | | | | | | | |
| Parent Company | | Guarantor Subsidiaries | | Non-Guarantor Subsidiaries | | Eliminations | | Consolidated | | | | | | | | | | | | | | ASSETS | | | | | | | | | | | | | | | | | | | |
ASSETS | | | | | | | | | | | | | | | | | | | | | | | Current assets: | | | | | | | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | | | | | | | | | | | Cash | $ | — | | | $ | 44 | | | $ | 17 | | | $ | — | | | $ | 61 | | | | | | | | | | | |
Cash | $ | — | | | $ | 266 | | | $ | 148 | | | $ | — | | | $ | 414 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Receivables, net | — | | | 41 | | | 93 | | | — | | | 134 | | | | | | | | | | | |
Receivables, net | — | | | 98 | | | 99 | | | — | | | 197 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Inventories | — | | | 121 | | | 47 | | | — | | | 168 | | | | | | | | | | | |
Inventories | — | | | 119 | | | 44 | | | — | | | 163 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Deferred income taxes | — | | | 4 | | | 9 | | | — | | | 13 | | | | | | | | | | | |
Deferred income taxes | — | | | 1 | | | 8 | | | — | | | 9 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Prepaid expenses and other | — | | | 3 | | | 5 | | | — | | | 8 | | | | | | | | | | | |
Prepaid expenses and other | — | | | 7 | | | 7 | | | — | | | 14 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Total current assets | — | | | 213 | | | 171 | | | — | | | 384 | | | | | | | | | | | |
Total current assets | — | | | 491 | | | 306 | | | — | | | 797 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Property and equipment, at cost | — | | | 1,371 | | | 492 | | | — | | | 1,863 | | | | | | | | | | | |
Property and equipment, at cost | — | | | 1,414 | | | 478 | | | — | | | 1,892 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Accumulated depreciation | — | | | (435 | ) | | (152 | ) | | — | | | (587 | ) | | | | | | | | | | |
Accumulated depreciation | — | | | (463 | ) | | (155 | ) | | — | | | (618 | ) | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Property and equipment, net | — | | | 936 | | | 340 | | | — | | | 1,276 | | | | | | | | | | | |
Property and equipment, net | — | | | 951 | | | 323 | | | — | | | 1,274 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Intangible assets, net | — | | | 2 | | | 39 | | | — | | | 41 | | | | | | | | | | | |
Goodwill and intangible assets, net | — | | | 20 | | | 33 | | | — | | | 53 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Other assets, net | — | | | 3 | | | 5 | | | — | | | 8 | | | | | | | | | | | |
Investment in subsidiaries | 1,610 | | | — | | | — | | | (1,610 | ) | | — | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Total assets | $ | — | | | $ | 1,154 | | | $ | 555 | | | $ | — | | | $ | 1,709 | | | | | | | | | | | |
Deferred income taxes | — | | | — | | | 112 | | | — | | | 112 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | LIABILITIES AND NET INVESTMENT | | | | | | | | | | | | | | | | | | | |
Other assets, net | 32 | | | 33 | | | 6 | | | — | | | 71 | | | | | | | | | | | | | | | Current liabilities: | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Current portion of capital lease obligations | $ | — | | | $ | 1 | | | $ | — | | | $ | — | | | $ | 1 | | | | | | | | | | | |
Total assets | $ | 1,642 | | | $ | 1,495 | | | $ | 780 | | | $ | (1,610 | ) | | $ | 2,307 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Accounts payable | — | | | 52 | | | 43 | | | — | | | 95 | | | | | | | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | | | | | | | | | | | Accrued expenses | — | | | 22 | | | 18 | | | — | | | 40 | | | | | | | | | | | |
Current portion of debt and capital lease obligations | $ | 28 | | | $ | 1 | | | $ | — | | | $ | — | | | $ | 29 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Taxes other than income taxes | — | | | 22 | | | 70 | | | — | | | 92 | | | | | | | | | | | |
Accounts payable | — | | | 48 | | | 35 | | | — | | | 83 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Total current liabilities | — | | | 97 | | | 131 | | | — | | | 228 | | | | | | | | | | | |
Accounts payable to Valero | (1 | ) | | 205 | | | 138 | | | — | | | 342 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Capital lease obligations, less current portion | — | | | 4 | | | — | | | — | | | 4 | | | | | | | | | | | |
Accrued expenses | 7 | | | 21 | | | 16 | | | — | | | 44 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Deferred income taxes | — | | | 110 | | | 13 | | | — | | | 123 | | | | | | | | | | | |
Taxes other than income taxes | — | | | 20 | | | 3 | | | — | | | 23 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Other long-term liabilities | — | | | 77 | | | 30 | | | — | | | 107 | | | | | | | | | | | |
Income taxes payable | — | | | 5 | | | 4 | | | — | | | 9 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Commitments and contingencies | | | | | | | | | | | | | | | | | | | |
Total current liabilities | 34 | | | 300 | | | 196 | | | — | | | 530 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Net investment: | | | | | | | | | | | | | | | | | | | |
Debt and capital lease obligations, less current portion | 1,022 | | | 3 | | | — | | | — | | | 1,025 | | | | | | | | | | | | | | | Net parent investment | — | | | 866 | | | 216 | | | — | | | 1,082 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Deferred income taxes | — | | | 89 | | | — | | | — | | | 89 | | | | | | | | | | | | | | | Accumulated other comprehensive income (AOCI) | — | | | — | | | 165 | | | — | | | 165 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Intercompany payables (receivables) | 20 | | | (20 | ) | | — | | | — | | | — | | | | | | | | | | | | | | | Total net investment | — | | | 866 | | | 381 | | | — | | | 1,247 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Other long-term liabilities | 15 | | | 68 | | | 29 | | | — | | | 112 | | | | | | | | | | | | | | | Total liabilities and net investment | $ | — | | | $ | 1,154 | | | $ | 555 | | | $ | — | | | $ | 1,709 | | | | | | | | | | | |
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Commitments and contingencies | | | | | | | | | | | | | | | | | | | | | | | |
Stockholders’ equity: | | | | | | | | | | | | | | | | | | | | | | | COMBINING BALANCE SHEETS (CONTINUED) |
Common stock | 1 | | | — | | | — | | | — | | | 1 | | | | | | | | | | | | | | | (Millions of Dollars) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Additional paid-in capital (APIC) | 395 | | | 1,038 | | | 544 | | | (1,582 | ) | | 395 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | 31-Dec-11 | | | | | | | | | | | | | | | | | |
Retained earnings | 20 | | | 17 | | | 11 | | | (28 | ) | | 20 | | | | | | | | | | | | | | | | | Guarantor Subsidiaries | | Non-Guarantor Subsidiaries | | Combined | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | ASSETS | | | | | | | | | | | | | | | | | | | | | | | |
Accumulated other comprehensive income (AOCI) | 135 | | | — | | | — | | | — | | | 135 | | | | | | | | | | | | | | | Current assets: | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Cash | | $ | 116 | | | $ | 16 | | | $ | 132 | | | | | | | | | | | | | | | | | | |
Total stockholders’ equity | 551 | | | 1,055 | | | 555 | | | (1,610 | ) | | 551 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Receivables, net | | 64 | | | 108 | | | 172 | | | | | | | | | | | | | | | | | | |
Total liabilities and stockholders’ equity | $ | 1,642 | | | $ | 1,495 | | | $ | 780 | | | $ | (1,610 | ) | | $ | 2,307 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Inventories | | 109 | | | 50 | | | 159 | | | | | | | | | | | | | | | | | | |
COMBINING BALANCE SHEETS (CONTINUED) | | | | | | | | | | | | | | | | | |
(Millions of Dollars) | Deferred income taxes | | 3 | | | 9 | | | 12 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Prepaid expenses and other | | 5 | | | 5 | | | 10 | | | | | | | | | | | | | | | | | | |
| 31-Dec-12 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Parent Company | | Guarantor Subsidiaries | | Non-Guarantor Subsidiaries | | Eliminations | | Combined | | | | | | | | | | | | | | Total current assets | | 297 | | | 188 | | | 485 | | | | | | | | | | | | | | | | | | |
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | | | | | | | | | | | Property and equipment, at cost | | 1,224 | | | 454 | | | 1,678 | | | | | | | | | | | | | | | | | | |
Cash | $ | — | | | $ | 44 | | | $ | 17 | | | $ | — | | | $ | 61 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Accumulated depreciation | | (390 | ) | | (135 | ) | | (525 | ) | | | | | | | | | | | | | | | | | |
Receivables, net | — | | | 41 | | | 93 | | | — | | | 134 | | | | | | | | | | | | | | | Property and equipment, net | | 834 | | | 319 | | | 1,153 | | | | | | | | | | | | | | | | | | |
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Inventories | — | | | 121 | | | 47 | | | — | | | 168 | | | | | | | | | | | | | | | Intangible assets, net | | 2 | | | 45 | | | 47 | | | | | | | | | | | | | | | | | | |
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Deferred income taxes | — | | | 4 | | | 9 | | | — | | | 13 | | | | | | | | | | | | | | | Other assets, net | | 1 | | | 5 | | | 6 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Prepaid expenses and other | — | | | 3 | | | 5 | | | — | | | 8 | | | | | | | | | | | | | | | Total assets | | $ | 1,134 | | | $ | 557 | | | $ | 1,691 | | | | | | | | | | | | | | | | | | |
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Total current assets | — | | | 213 | | | 171 | | | — | | | 384 | | | | | | | | | | | | | | | LIABILITIES AND NET INVESTMENT | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Current liabilities: | | | | | | | | | | | | | | | | | | | | | | | |
Property and equipment, at cost | — | | | 1,371 | | | 492 | | | — | | | 1,863 | | | | | | | | | | | | | | | Current portion of capital lease obligations | | $ | 1 | | | $ | — | | | $ | 1 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accumulated depreciation | — | | | (435 | ) | | (152 | ) | | — | | | (587 | ) | | | | | | | | | | | | | | Accounts payable | | 46 | | | 38 | | | 84 | | | | | | | | | | | | | | | | | | |
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Property and equipment, net | — | | | 936 | | | 340 | | | — | | | 1,276 | | | | | | | | | | | | | | | Accrued expenses | | 18 | | | 23 | | | 41 | | | | | | | | | | | | | | | | | | |
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Intangible assets, net | — | | | 2 | | | 39 | | | — | | | 41 | | | | | | | | | | | | | | | Taxes other than income taxes | | 19 | | | 67 | | | 86 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other assets, net | — | | | 3 | | | 5 | | | — | | | 8 | | | | | | | | | | | | | | | Total current liabilities | | 84 | | | 128 | | | 212 | | | | | | | | | | | | | | | | | | |
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Total assets | $ | — | | | $ | 1,154 | | | $ | 555 | | | $ | — | | | $ | 1,709 | | | | | | | | | | | | | | | Capital lease obligations, less current portion | | 5 | | | — | | | 5 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
LIABILITIES AND NET INVESTMENT | | | | | | | | | | | | | | | | | | | | | | Deferred income taxes | | 109 | | | 15 | | | 124 | | | | | | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current portion of capital lease obligations | $ | — | | | $ | 1 | | | $ | — | | | $ | — | | | $ | 1 | | | | | | | | | | | | | | | Other long-term liabilities | | 75 | | | 26 | | | 101 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable | — | | | 52 | | | 43 | | | — | | | 95 | | | | | | | | | | | | | | | Commitments and contingencies | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Net investment: | | | | | | | | | | | | | | | | | | | | | | | |
Accrued expenses | — | | | 22 | | | 18 | | | — | | | 40 | | | | | | | | | | | | | | | Net parent investment | | 861 | | | 233 | | | 1,094 | | | | | | | | | | | | | | | | | | |
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Taxes other than income taxes | — | | | 22 | | | 70 | | | — | | | 92 | | | | | | | | | | | | | | | Accumulated other comprehensive income (AOCI) | | — | | | 155 | | | 155 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income taxes payable | — | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | | Total net investment | | 861 | | | 388 | | | 1,249 | | | | | | | | | | | | | | | | | | |
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Total current liabilities | — | | | 97 | | | 131 | | | — | | | 228 | | | | | | | | | | | | | | | Total liabilities and net investment | | $ | 1,134 | | | $ | 557 | | | $ | 1,691 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Capital lease obligations, less current portion | — | | | 4 | | | — | | | — | | | 4 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | COMBINING STATEMENTS OF INCOME |
Deferred income taxes | — | | | 110 | | | 13 | | | — | | | 123 | | | | | | | | | | | | | | | (Millions of Dollars) |
| | | | | | | | | | | | | | | | | | | | | | | |
Other long-term liabilities | — | | | 77 | | | 30 | | | — | | | 107 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | Year Ended December 31, 2012 | | | | | | | | | | |
Commitments and contingencies | | | | | | | | | | | | | | | | | | | | | | | | Parent Company | | Guarantor Subsidiaries | | Non-Guarantor Subsidiaries | | Eliminations | | Combined | | | | | | | | | | |
Net investment: | | | | | | | | | | | | | | | | | | | | | | | Operating revenues | $ | — | | | $ | 7,907 | | | $ | 5,228 | | | $ | — | | | $ | 13,135 | | | | | | | | | | | |
Net parent investment | — | | | 866 | | | 216 | | | — | | | 1,082 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Costs and expenses: | | | | | | | | | | | | | | | | | | | |
Accumulated other comprehensive income (AOCI) | — | | | — | | | 165 | | | — | | | 165 | | | | | | | | | | | | | | | Cost of sales | — | | | 7,185 | | | 4,815 | | | — | | | 12,000 | | | | | | | | | | | |
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Total net investment | — | | | 866 | | | 381 | | | — | | | 1,247 | | | | | | | | | | | | | | | Operating expenses | — | | | 398 | | | 246 | | | — | | | 644 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Total liabilities and net investment | $ | — | | | $ | 1,154 | | | $ | 555 | | | $ | — | | | $ | 1,709 | | | | | | | | | | | | | | | General and administrative expenses | — | | | 44 | | | 17 | | | — | | | 61 | | | | | | | | | | | |
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| Depreciation, amortization and accretion expense | — | | | 78 | | | 37 | | | — | | | 115 | | | | | | | | | | | |
COMBINING STATEMENTS OF INCOME | | | | | | | | | | |
(Unaudited, Millions of Dollars) | Total costs and expenses | — | | | 7,705 | | | 5,115 | | | — | | | 12,820 | | | | | | | | | | | |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Operating income | — | | | 202 | | | 113 | | | — | | | 315 | | | | | | | | | | | |
| Six Months Ended June 30, 2013 | | | | | | | | | | | | | | | | | | | | | | | |
| Parent Company | | Guarantor Subsidiaries | | Non-Guarantor Subsidiaries | | Eliminations | | Consolidated and Combined | | | | | | | | | | | | | | Other income, net | — | | | — | | | 1 | | | — | | | 1 | | | | | | | | | | | |
Operating revenues | $ | — | | | $ | 3,935 | | | $ | 2,464 | | | $ | — | | | $ | 6,399 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Interest expense | — | | | (1 | ) | | — | | | — | | | (1 | ) | | | | | | | | | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of sales | — | | | 3,608 | | | 2,266 | | | — | | | 5,874 | | | | | | | | | | | | | | | Income before income tax expense | — | | | 201 | | | 114 | | | — | | | 315 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Operating expenses | — | | | 200 | | | 120 | | | — | | | 320 | | | | | | | | | | | | | | | Income tax expense | — | | | 74 | | | 31 | | | — | | | 105 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
General and administrative expenses | 1 | | | 26 | | | 8 | | | — | | | 35 | | | | | | | | | | | | | | | Net income | $ | — | | | $ | 127 | | | $ | 83 | | | $ | — | | | $ | 210 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Depreciation, amortization and accretion expense | — | | | 42 | | | 18 | | | — | | | 60 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total costs and expenses | 1 | | | 3,876 | | | 2,412 | | | — | | | 6,289 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Year Ended December 31, 2011 | | | | | | | | | | | | | | | | | |
Operating income | (1 | ) | | 59 | | | 52 | | | — | | | 110 | | | | | | | | | | | | | | | | | Guarantor Subsidiaries | | Non-Guarantor Subsidiaries | | Combined | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Operating revenues | | $ | 7,557 | | | $ | 5,306 | | | $ | 12,863 | | | | | | | | | | | | | | | | | | |
Other income, net | — | | | — | | | 2 | | | — | | | 2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | (7 | ) | | — | | | — | | | — | | | (7 | ) | | | | | | | | | | | | | | Cost of sales | | 6,893 | | | 4,842 | | | 11,735 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity in earnings of subsidiaries | 28 | | | — | | | — | | | (28 | ) | | — | | | | | | | | | | | | | | | Operating expenses | | 383 | | | 253 | | | 636 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income before income tax expense | 20 | | | 59 | | | 54 | | | (28 | ) | | 105 | | | | | | | | | | | | | | | General and administrative expenses | | 42 | | | 17 | | | 59 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income tax expense | — | | | 25 | | | 16 | | | — | | | 41 | | | | | | | | | | | | | | | Depreciation, amortization and accretion expense | | 76 | | | 37 | | | 113 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income | $ | 20 | | | $ | 34 | | | $ | 38 | | | $ | (28 | ) | | $ | 64 | | | | | | | | | | | | | | | Asset impairment losses | | 2 | | | 1 | | | 3 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total costs and expenses | | 7,396 | | | 5,150 | | | 12,546 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Operating income | | 161 | | | 156 | | | 317 | | | | | | | | | | | | | | | | | | |
| Six Months Ended June 30, 2012 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Guarantor Subsidiaries | | Non-Guarantor Subsidiaries | | Combined | | | | | | | | | | | | | | | | | | | | | Other income, net | | — | | | 1 | | | 1 | | | | | | | | | | | | | | | | | | |
Operating revenues | | $ | 3,948 | | | $ | 2,609 | | | $ | 6,557 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | Interest expense | | (1 | ) | | — | | | (1 | ) | | | | | | | | | | | | | | | | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of sales | | 3,577 | | | 2,396 | | | 5,973 | | | | | | | | | | | | | | | | | | | | | | Income before income tax expense | | 160 | | | 157 | | | 317 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating expenses | | 194 | | | 122 | | | 316 | | | | | | | | | | | | | | | | | | | | | | Income tax expense | | 59 | | | 44 | | | 103 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
General and administrative expenses | | 21 | | | 8 | | | 29 | | | | | | | | | | | | | | | | | | | | | | Net income | | $ | 101 | | | $ | 113 | | | $ | 214 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Depreciation, amortization and accretion expense | | 38 | | | 18 | | | 56 | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Total costs and expenses | | 3,830 | | | 2,544 | | | 6,374 | | | | | | | | | | | | | | | | | | | | | | COMBINING STATEMENTS OF INCOME (CONTINUED) |
| | | | | | | | | | | | | | | | | | | | (Millions of Dollars) |
Operating income | | 118 | | | 65 | | | 183 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other income, net | | — | | | — | | | — | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2010 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | Guarantor Subsidiaries | | Non-Guarantor Subsidiaries | | Combined | | | | | | | | | | | | | | | | | |
Interest expense | | — | | | — | | | — | | | | | | | | | | | | | | | | | | | | | | Operating revenues | | $ | 6,183 | | | $ | 4,188 | | | $ | 10,371 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income before income tax expense | | 118 | | | 65 | | | 183 | | | | | | | | | | | | | | | | | | | | | | Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | Cost of sales | | 5,540 | | | 3,770 | | | 9,310 | | | | | | | | | | | | | | | | | | |
Income tax expense | | 43 | | | 18 | | | 61 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | Operating expenses | | 372 | | | 233 | | | 605 | | | | | | | | | | | | | | | | | | |
Net income | | $ | 75 | | | $ | 47 | | | $ | 122 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | General and administrative expenses | | 40 | | | 17 | | | 57 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
COMBINING STATEMENTS OF COMPREHENSIVE INCOME | Depreciation, amortization and accretion expense | | 72 | | | 33 | | | 105 | | | | | | | | | | | | | | | | | | |
(Unaudited, Millions of Dollars) | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | Asset impairment losses | | 2 | | | 3 | | | 5 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Six Months Ended June 30, 2013 | | | | | | | | | | | | | | Total costs and expenses | | 6,026 | | | 4,056 | | | 10,082 | | | | | | | | | | | | | | | | | | |
| Parent Company | | Guarantor Subsidiaries | | Non-Guarantor Subsidiaries | | Eliminations | | Consolidated and Combined | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income | $ | 20 | | | $ | 34 | | | $ | 38 | | | $ | (28 | ) | | $ | 64 | | | | | | | | | | | | | | | Operating income | | 157 | | | 132 | | | 289 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other comprehensive income (loss): | | | | | | | | | | | | | | | | | | | | | | | Other income, net | | 1 | | | 1 | | | 2 | | | | | | | | | | | | | | | | | | |
Foreign currency translation adjustment | (30 | ) | | — | | | — | | | — | | | (30 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Interest expense | | (1 | ) | | — | | | (1 | ) | | | | | | | | | | | | | | | | | |
Other comprehensive income (loss) before income taxes | (30 | ) | | — | | | — | | | — | | | (30 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Income before income tax expense | | 157 | | | 133 | | | 290 | | | | | | | | | | | | | | | | | | |
Income taxes related to items of other comprehensive income | — | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Income tax expense | | 57 | | | 40 | | | 97 | | | | | | | | | | | | | | | | | | |
Other comprehensive income (loss) | (30 | ) | | — | | | — | | | — | | | (30 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Net income | | $ | 100 | | | $ | 93 | | | $ | 193 | | | | | | | | | | | | | | | | | | |
Comprehensive income | $ | (10 | ) | | $ | 34 | | | $ | 38 | | | $ | (28 | ) | | $ | 34 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| COMBINING STATEMENTS OF COMPREHENSIVE INCOME |
| | | | | | | | | | | | | | | | | | | | | (Millions of Dollars) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Six Months Ended June 30, 2012 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Guarantor Subsidiaries | | Non-Guarantor Subsidiaries | | Combined | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2012 | | | | | | | | | | |
Net income | | $ | 75 | | | $ | 47 | | | $ | 122 | | | | | | | | | | | | | | | | | | | | | | | Parent Company | | Guarantor Subsidiaries | | Non-Guarantor Subsidiaries | | Eliminations | | Combined | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | Net income | $ | — | | | $ | 127 | | | $ | 83 | | | $ | — | | | $ | 210 | | | | | | | | | | | |
Other comprehensive income (loss): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Foreign currency translation adjustment | | — | | | 1 | | | 1 | | | | | | | | | | | | | | | | | | | | | | Other comprehensive income (loss): | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | Foreign currency translation adjustment | — | | | — | | | 10 | | | — | | | 10 | | | | | | | | | | | |
Other comprehensive income (loss) before income taxes | | — | | | 1 | | | 1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | Other comprehensive income (loss) before income taxes | — | | | — | | | 10 | | | — | | | 10 | | | | | | | | | | | |
Income taxes related to items of other comprehensive income | | — | | | — | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | Income taxes related to items of other comprehensive income | — | | | — | | | — | | | — | | | — | | | | | | | | | | | |
Other comprehensive income (loss) | | — | | | 1 | | | 1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | Other comprehensive income (loss) | — | | | — | | | 10 | | | — | | | 10 | | | | | | | | | | | |
Comprehensive income | | $ | 75 | | | $ | 48 | | | $ | 123 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | Comprehensive income | $ | — | | | $ | 127 | | | $ | 93 | | | $ | — | | | $ | 220 | | | | | | | | | | | |
COMBINING STATEMENTS OF CASH FLOWS | | | | | | | | | | |
(Unaudited, Millions of Dollars) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Six Months Ended June 30, 2013 | | | | | | | | | | | | | | | | Year Ended December 31, 2011 | | | | | | | | | | | | | | | | | |
| Parent Company | | Guarantor Subsidiaries | | Non-Guarantor Subsidiaries | | Eliminations | | Consolidated and Combined | | | | | | | | | | | | | | | | Guarantor Subsidiaries | | Non-Guarantor Subsidiaries | | Combined | | | | | | | | | | | | | | | | | |
Cash flows from operating activities: | | | | | | | | | | | | | | | | | | | | | | | Net income | | $ | 101 | | | $ | 113 | | | $ | 214 | | | | | | | | | | | | | | | | | | |
Net income | $ | 20 | | | $ | 34 | | | $ | 38 | | | $ | (28 | ) | | $ | 64 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Other comprehensive income (loss): | | | | | | | | | | | | | | | | | | | | | | | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | | | | | | | | | | | | | | | | | | | | | | | Foreign currency translation adjustment | | — | | | (7 | ) | | (7 | ) | | | | | | | | | | | | | | | | | |
Stock-based compensation expense | — | | | 2 | | | — | | | — | | | $ | 2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Other comprehensive income (loss) before income taxes | | — | | | (7 | ) | | (7 | ) | | | | | | | | | | | | | | | | | |
Depreciation, amortization and accretion expense | — | | | 42 | | | 18 | | | — | | | 60 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Income taxes related to items of other comprehensive income | | — | | | — | | | — | | | | | | | | | | | | | | | | | | |
Deferred income tax expense | — | | | 5 | | | 3 | | | — | | | 8 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Other comprehensive income (loss) | | — | | | (7 | ) | | (7 | ) | | | | | | | | | | | | | | | | | |
Changes in current assets and current liabilities | 6 | | | 149 | | | 62 | | | — | | | 217 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Comprehensive income | | $ | 101 | | | $ | 106 | | | $ | 207 | | | | | | | | | | | | | | | | | | |
Equity in earnings of subsidiaries | (28 | ) | | — | | | — | | | 28 | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Other operating activities, net | — | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net cash provided by (used in) operating activities | (2 | ) | | 232 | | | 121 | | | — | | | 351 | | | | | | | | | | | | | | | | | Year Ended December 31, 2010 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Guarantor Subsidiaries | | Non-Guarantor Subsidiaries | | Combined | | | | | | | | | | | | | | | | | |
Cash flows from investing activities: | | | | | | | | | | | | | | | | | | | | | | | Net income | | $ | 100 | | | $ | 93 | | | $ | 193 | | | | | | | | | | | | | | | | | | |
Capital expenditures | — | | | (78 | ) | | (12 | ) | | — | | | (90 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Other comprehensive income (loss): | | | | | | | | | | | | | | | | | | | | | | | |
Acquisition | — | | | — | | | (4 | ) | | — | | | (4 | ) | | | | | | | | | | | | | | Foreign currency translation adjustment | | — | | | 24 | | | 24 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Proceeds from dispositions of property and equipment | — | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | | Other comprehensive income (loss) before income taxes | | — | | | 24 | | | 24 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other investing activities, net | — | | | (1 | ) | | (1 | ) | | — | | | (2 | ) | | | | | | | | | | | | | | Income taxes related to items of other comprehensive income | | — | | | — | | | — | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net cash used in investing activities | — | | | (79 | ) | | (17 | ) | | — | | | (96 | ) | | | | | | | | | | | | | | Other comprehensive income (loss) | | — | | | 24 | | | 24 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash flows from financing activities: | | | | | | | | | | | | | | | | | | | | | | | Comprehensive income | | $ | 100 | | | $ | 117 | | | $ | 217 | | | | | | | | | | | | | | | | | | |
Proceeds from issuance of long-term debt | 500 | | | — | | | — | | | — | | | 500 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Debt issuance and credit facility origination costs | (18 | ) | | — | | | — | | | — | | | (18 | ) | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Intercompany funding | 20 | | | (20 | ) | | — | | | — | | | — | | | | | | | | | | | | | | | COMBINING STATEMENTS OF CASH FLOWS |
| | | | | | | | | | | | | (Millions of Dollars) |
Payments of capital lease obligations | — | | | (1 | ) | | — | | | — | | | (1 | ) | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net transfers to Valero | (500 | ) | | 90 | | | 32 | | | — | | | (378 | ) | | | | | | | | | | | | | | | Year Ended December 31, 2012 | | | | | | | | | | |
| | | | | | | | | | | | | | Parent Company | | Guarantor Subsidiaries | | Non-Guarantor Subsidiaries | | Eliminations | | Combined | | | | | | | | | | |
Net cash provided by financing activities | 2 | | | 69 | | | 32 | | | — | | | 103 | | | | | | | | | | | | | | | Cash flows from operating activities: | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Net income | $ | — | | | $ | 127 | | | $ | 83 | | | $ | — | | | $ | 210 | | | | | | | | | | | |
Effect of foreign exchange rate changes on cash | — | | | — | | | (5 | ) | | — | | | (5 | ) | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | | | | | | | |
Net increase in cash | — | | | 222 | | | 131 | | | — | | | 353 | | | | | | | | | | | | | | | Depreciation, amortization and accretion expense | — | | | 78 | | | 37 | | | — | | | 115 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Cash at beginning of year | — | | | 44 | | | 17 | | | — | | | 61 | | | | | | | | | | | | | | | Deferred income tax expense (benefit) | — | | | 1 | | | (2 | ) | | — | | | (1 | ) | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Cash at end of period | $ | — | | | $ | 266 | | | $ | 148 | | | $ | — | | | $ | 414 | | | | | | | | | | | | | | | Changes in current assets and current liabilities | — | | | 20 | | | 22 | | | — | | | 42 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
COMBINING STATEMENTS OF CASH FLOWS (CONTINUED) | Other operating activities, net | — | | | (2 | ) | | — | | | — | | | (2 | ) | | | | | | | | | | |
(Unaudited, Millions of Dollars) | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | Net cash provided by operating activities | — | | | 224 | | | 140 | | | — | | | 364 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Six Months Ended June 30, 2012 | | | | | | | | | | | | | | | | | | | | Cash flows from investing activities: | | | | | | | | | | | | | | | | | | | |
| | Guarantor Subsidiaries | | Non-Guarantor Subsidiaries | | Combined | | | | | | | | | | | | | | | | | | | | Capital expenditures | — | | | (114 | ) | | (42 | ) | | — | | | (156 | ) | | | | | | | | | | |
Cash flows from operating activities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 75 | | | $ | 47 | | | $ | 122 | | | | | | | | | | | | | | | | | | | | | Acquisition | — | | | (61 | ) | | — | | | — | | | (61 | ) | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | | | | | | | | | | | | | | Proceeds from dispositions of property and equipment | — | | | 2 | | | — | | | — | | | 2 | | | | | | | | | | | |
Stock-based compensation expense | | 1 | | | — | | | $ | 1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | Other investing activities, net | — | | | — | | | — | | | — | | | — | | | | | | | | | | | |
Depreciation, amortization and accretion expense | | 38 | | | 18 | | | 56 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | Net cash used in investing activities | — | | | (173 | ) | | (42 | ) | | — | | | (215 | ) | | | | | | | | | | |
Deferred income tax expense (benefit) | | (5 | ) | | 1 | | — | | (4 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | Cash flows from financing activities: | | | | | | | | | | | | | | | | | | | |
Changes in current assets and current liabilities | | (3 | ) | | 25 | | | 22 | | | | | | | | | | | | | | | | | | | | | Payments of capital lease obligations | — | | | (1 | ) | | — | | | — | | | (1 | ) | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other operating activities, net | | 3 | | | — | | | 3 | | | | | | | | | | | | | | | | | | | | | Net transfers to Parent | — | | | (122 | ) | | (97 | ) | | — | | | (219 | ) | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net cash provided by operating activities | | 109 | | | 91 | | | 200 | | | | | | | | | | | | | | | | | | | | | Net cash used in financing activities | — | | | (123 | ) | | (97 | ) | | — | | | (220 | ) | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash flows from investing activities: | | | | | | | | | | | | | | | | | | | | | | | | | | Effect of foreign exchange rate changes on cash | — | | | — | | | — | | | — | | | — | | | | | | | | | | | |
Capital expenditures | | (35 | ) | | (11 | ) | | (46 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Acquisitions | | (61 | ) | | — | | | (61 | ) | | | | | | | | | | | | | | | | | | | | Net increase (decrease) in cash | — | | | (72 | ) | | 1 | | | — | | | (71 | ) | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Proceeds from dispositions of property and equipment | | 1 | | | 1 | | | 2 | | | | | | | | | | | | | | | | | | | | | Cash at beginning of year | — | | | 116 | | | 16 | | | — | | | 132 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other investing activities, net | | — | | | — | | | — | | | | | | | | | | | | | | | | | | | | | Cash at end of year | $ | — | | | $ | 44 | | | $ | 17 | | | $ | — | | | $ | 61 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net cash used in investing activities | | (95 | ) | | (10 | ) | | (105 | ) | | | | | | | | | | | | | | | | | | | | |
Cash flows from financing activities: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Payments of capital lease obligations | | — | | | — | | | — | | | | | | | | | | | | | | | | | | | | | COMBINING STATEMENTS OF CASH FLOWS (CONTINUED) |
| | | | | | | | | | | | | | | | | | | (Millions of Dollars) |
Net transfers to Parent | | (89 | ) | | (83 | ) | | (172 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net cash used in financing activities | | (89 | ) | | (83 | ) | | (172 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Effect of foreign exchange rate changes on cash | | — | | | (1 | ) | | (1 | ) | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2011 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | Guarantor Subsidiaries | | Non-Guarantor Subsidiaries | | Combined | | | | | | | | | | | | | | | | | |
Net decrease in cash | | (75 | ) | | (3 | ) | | (78 | ) | | | | | | | | | | | | | | | | | | | | Cash flows from operating activities: | | | | | | | | | | | | | | | | | | | | | | | |
Cash at beginning of year | | 116 | | | 16 | | | 132 | | | | | | | | | | | | | | | | | | | | | Net income | | $ | 101 | | | $ | 113 | | | $ | 214 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash at end of period | | $ | 41 | | | $ | 13 | | | $ | 54 | | | | | | | | | | | | | | | | | | | | | Adjustments to reconcile net income to net cash provided | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | by operating activities: | | | | | | | | | | | | | | | | | |
COMBINING STATEMENT OF CHANGES IN EQUITY | Depreciation, amortization and accretion expense | | 76 | | | 37 | | | 113 | | | | | | | | | | | | | | | | | | |
(Unaudited, Millions of Dollars) | | | | | | | | | | | | | | | | | |
| Asset impairment losses | | 2 | | | 1 | | | 3 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Common Stock | | APIC | Non-cash interest expense | | 1 | | | — | | | 1 | | | | | | | | | | | | | | | | | | |
| | Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | | Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | | | | | | | | | | | | | | | | | |
Balance as of December 31, 2012 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | Deferred income tax expense (benefit) | | 14 | | | (2 | ) | | 12 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Net income | | — | | — | | — | | — | | — | | | — | | — | | — | | — | | — | | Changes in current assets and current liabilities | | (35 | ) | | (5 | ) | | (40 | ) | | | | | | | | | | | | | | | | | |
Other operating activities, net | | 5 | | | — | | | 5 | | | | | | | | | | | | | | | | | | |
Net transfers to Valero | | — | | — | | — | | — | | — | | | — | | — | | — | | — | | — | | | | | | | | | | | | | | | | | | |
Net cash provided by operating activities | | 164 | | | 144 | | | 308 | | | | | | | | | | | | | | | | | | |
Issuance of stock at the separation and distribution | | 1 | | — | | — | | — | | 1 | | | (1 | ) | | — | | — | | (1 | ) | | | | | | | | | | | | | | | | | |
Cash flows from investing activities: | | | | | | | | | | | | | | | | | | | | | | | |
Reclassification of net parent investment to APIC | | — | | — | | — | | — | | — | | | 395 | | 1,038 | | 544 | | (1,582 | ) | 395 | | Capital expenditures | | (91 | ) | | (39 | ) | | (130 | ) | | | | | | | | | | | | | | | | | |
Proceeds from dispositions of property and equipment | | 3 | | | 2 | | | 5 | | | | | | | | | | | | | | | | | | |
Stock-based compensation expense | | — | | — | | — | | — | | — | | | 1 | | | — | | — | | 1 | | | | | | | | | | | | | | | | | | |
Other investing activities, net | | (1 | ) | | (1 | ) | | (2 | ) | | | | | | | | | | | | | | | | | |
Other comprehensive loss | | — | | — | | — | | — | | — | | | — | | — | | — | | — | | — | | Net cash used in investing activities | | (89 | ) | | (38 | ) | | (127 | ) | | | | | | | | | | | | | | | | | |
Cash flows from financing activities: | | | | | | | | | | | | | | | | | | | | | | | |
Balance as of June 30, 2013 | | $ | 1 | | $ | — | | $ | — | | $ | — | | $ | 1 | | | $ | 395 | | $ | 1,038 | | $ | 544 | | $ | (1,582 | ) | $ | 395 | | Payments of capital lease obligations | | (1 | ) | | — | | | (1 | ) | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | Net transfers to Parent | | (47 | ) | | (103 | ) | | (150 | ) | | | | | | | | | | | | | | | | | |
| | Net Parent Investment | | Retained Earnings | Net cash used in financing activities | | (48 | ) | | (103 | ) | | (151 | ) | | | | | | | | | | | | | | | | | |
| | Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | | Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | Effect of foreign exchange rate changes on cash | | — | | | — | | | — | | | | | | | | | | | | | | | | | | |
Balance as of December 31, 2012 | | $ | — | | $ | 866 | | $ | 216 | | $ | — | | $ | 1,082 | | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | | | | | | | | | | | | | | | | |
Net increase in cash | | 27 | | | 3 | | | 30 | | | | | | | | | | | | | | | | | | |
Net income | | — | | 17 | | 27 | | — | | 44 | | | 20 | | 17 | | 11 | | (28 | ) | 20 | | | | | | | | | | | | | | | | | | |
Cash at beginning of year | | 89 | | | 13 | | | 102 | | | | | | | | | | | | | | | | | | |
Net transfers to Valero | | 395 | | 155 | | 301 | | (1,582 | ) | (731 | ) | | — | | — | | — | | — | | — | | | | | | | | | | | | | | | | | | |
Cash at end of year | | $ | 116 | | | $ | 16 | | | $ | 132 | | | | | | | | | | | | | | | | | | |
Issuance of stock at the separation and distribution | | — | | — | | — | | — | | — | | | — | | — | | — | | — | | — | | | | | | | | | | | | | | | | | | |
|
Reclassification of net parent investment to APIC | | (395 | ) | (1,038 | ) | (544 | ) | 1,582 | | (395 | ) | | — | | — | | — | | — | | — | | |
|
Stock-based compensation expense | | — | | — | | — | | — | | — | | | | | | | — | | |
|
Other comprehensive loss | | — | | — | | — | | — | | — | | | | — | | — | | | — | | COMBINING STATEMENTS OF CASH FLOWS (CONTINUED) |
(Millions of Dollars) |
Balance as of June 30, 2013 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | $ | 20 | | $ | 17 | | $ | 11 | | $ | (28 | ) | $ | 20 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Year Ended December 31, 2010 | | | | | | | | | | | | | | | | | |
| | AOCI | | Total | | | Guarantor Subsidiaries | | Non-Guarantor Subsidiaries | | Combined | | | | | | | | | | | | | | | | | |
| | Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | | Parent Company | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | Cash flows from operating activities: | | | | | | | | | | | | | | | | | | | | | | | |
Balance as of December 31, 2012 | | $ | — | | $ | — | | $ | 165 | | $ | — | | $ | 165 | | | $ | — | | $ | 866 | | $ | 381 | | $ | — | | $ | 1,247 | | Net income | | $ | 100 | | | $ | 93 | | | $ | 193 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Net income | | — | | — | | — | | — | | — | | | $ | 20 | | $ | 34 | | $ | 38 | | $ | (28 | ) | $ | 64 | | Adjustments to reconcile net income to net cash provided | | | | | | | | | | | | | | | | | | | | | | | |
by operating activities: | | | | | | | | | | | | | | | | | |
Net transfers to Valero | | — | | — | | — | | — | | — | | | $ | 395 | | $ | 155 | | $ | 301 | | $ | (1,582 | ) | $ | (731 | ) | Depreciation, amortization and accretion expense | | 72 | | | 33 | | | 105 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Issuance of stock at the separation and distribution | | — | | — | | — | | — | | — | | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | Asset impairment losses | | 2 | | | 3 | | | 5 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Reclassification of net parent investment to APIC | | 165 | | — | | (165 | ) | — | | — | | | $ | 165 | | $ | — | | $ | (165 | ) | $ | — | | $ | — | | Deferred income tax expense (benefit) | | 9 | | | (3 | ) | | 6 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Stock-based compensation expense | | — | | — | | — | | — | | — | | | $ | 1 | | $ | — | | $ | — | | $ | — | | $ | 1 | | Changes in current assets and current liabilities | | (6 | ) | | 18 | | | 12 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Other comprehensive loss | | (30 | ) | — | | — | | — | | (30 | ) | | $ | (30 | ) | $ | — | | $ | — | | $ | — | | $ | (30 | ) | Other operating activities, net | | 1 | | | 1 | | | 2 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Balance as of June 30, 2013 | | $ | 135 | | $ | — | | $ | — | | $ | — | | $ | 135 | | | $ | 551 | | $ | 1,055 | | $ | 555 | | $ | (1,610 | ) | $ | 551 | | Net cash provided by operating activities | | 178 | | | 145 | | | 323 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Cash flows from investing activities: | | | | | | | | | | | | | | | | | | | | | | | |
| Capital expenditures | | (68 | ) | | (37 | ) | | (105 | ) | | | | | | | | | | | | | | | | | |
| Proceeds from dispositions of property and equipment | | 2 | | | 1 | | | 3 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Other investing activities, net | | (1 | ) | | (1 | ) | | (2 | ) | | | | | | | | | | | | | | | | | |
| Net cash used in investing activities | | (67 | ) | | (37 | ) | | (104 | ) | | | | | | | | | | | | | | | | | |
| Cash flows from financing activities: | | | | | | | | | | | | | | | | | | | | | | | |
| Payments of capital lease obligations | | (1 | ) | | — | | | (1 | ) | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Net transfers to Parent | | (116 | ) | | (104 | ) | | (220 | ) | | | | | | | | | | | | | | | | | |
| Net cash used in financing activities | | (117 | ) | | (104 | ) | | (221 | ) | | | | | | | | | | | | | | | | | |
| Effect of foreign exchange rate changes on cash | | — | | | 1 | | | 1 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Net increase (decrease) in cash | | (6 | ) | | 5 | | | (1 | ) | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Cash at beginning of year | | 95 | | | 8 | | | 103 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Cash at end of year | | $ | 89 | | | $ | 13 | | | $ | 102 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| |
| |
| |
| COMBINING STATEMENTS OF CHANGES IN NET INVESTMENT |
| (Millions of Dollars) |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Accumulated Other Comprehensive Income | | Net Parent Investment | | Net Investment |
| | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Combined | | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Combined | | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Combined |
| Balance as of December 31, 2009 | $ | — | | $ | 138 | | $ | 138 | | | $ | 823 | | $ | 236 | | $ | 1,059 | | | $ | 823 | | $ | 374 | | $ | 1,197 | |
|
| Net income | — | | — | | — | | | 100 | | 93 | | 193 | | | 100 | | 93 | | 193 | |
|
| Net transfers to Parent | — | | — | | — | | | (116 | ) | (105 | ) | (221 | ) | | (116 | ) | (105 | ) | (221 | ) |
|
| Other comprehensive income | — | | 24 | | 24 | | | — | | — | | — | | | — | | 24 | | 24 | |
|
| Balance as of December 31, 2010 | — | | 162 | | 162 | | | 807 | | 224 | | 1,031 | | | 807 | | 386 | | 1,193 | |
|
| Net income | — | | — | | — | | | 101 | | 113 | | 214 | | | 101 | | 113 | | 214 | |
|
| Net transfers to Parent | — | | — | | — | | | (47 | ) | (104 | ) | (151 | ) | | (47 | ) | (104 | ) | (151 | ) |
|
| Other comprehensive income | — | | (7 | ) | (7 | ) | | — | | — | | — | | | — | | (7 | ) | (7 | ) |
|
| Balance as of December 31, 2011 | — | | 155 | | 155 | | | 861 | | 233 | | 1,094 | | | 861 | | 388 | | 1,249 | |
|
| Net income | — | | — | | — | | | 127 | | 83 | | 210 | | | 127 | | 83 | | 210 | |
|
| Net transfers to Parent | — | | — | | — | | | (122 | ) | (100 | ) | (222 | ) | | (122 | ) | (100 | ) | (222 | ) |
|
| Other comprehensive income | — | | 10 | | 10 | | | — | | — | | — | | | — | | 10 | | 10 | |
|
| Balance as of December 31, 2012 | $ | — | | $ | 165 | | $ | 165 | | | $ | 866 | | $ | 216 | | $ | 1,082 | | | $ | 866 | | $ | 381 | | $ | 1,247 | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |