Condensed Consolidating Financial Statements (Tables)

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet

June 30, 2019

(in millions)

	Valero Energy Corporation			Valero Energy Partners LP		Other Non- Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	246		$	—	$	1,787		$	—		$	2,033
Receivables, net	—			—		9,050			—			9,050
Receivables from affiliates	4,382			—		11,824			(16,206		)	—
Inventories	—			—		6,281			—			6,281
Prepaid expenses and other	63			—		384			—			447
Total current assets	4,691			—		29,326			(16,206		)	17,811
Property, plant and equipment, at cost	—			—		43,110			—			43,110
Accumulated depreciation	—			—		(14,326		)	—			(14,326		)
Property, plant and equipment, net	—			—		28,784			—			28,784
Investment in affiliates	36,639			2,453		383			(39,475		)	—
Deferred charges and other assets, net	547			—		4,880			—			5,427
Total assets	$	41,877		$	2,453	$	63,373		$	(55,681	)	$	52,022
LIABILITIES AND EQUITY
Current liabilities:
Current portion of debt and finance lease obligations	$	—		$	—	$	323		$	—		$	323
Accounts payable	—			—		10,135			—			10,135
Accounts payable to affiliates	10,753			1,071		4,382			(16,206		)	—
Accrued expenses	123			7		634			—			764
Taxes other than income taxes payable	—			—		1,144			—			1,144
Income taxes payable	99			—		83			—			182
Total current liabilities	10,975			1,078		16,701			(16,206		)	12,548
Debt and finance lease obligations, less current portion	7,093			990		1,084			—			9,167
Deferred income tax liabilities	—			2		4,897			—			4,899
Other long-term liabilities	1,972			—		1,599			—			3,571
Equity:
Stockholders’ equity:
Common stock	7			—		1			(1		)	7
Additional paid-in capital	6,812			—		9,770			(9,770		)	6,812
Treasury stock, at cost	(15,170		)	—		—			—			(15,170		)
Retained earnings	31,046			—		29,824			(29,824		)	31,046
Partners’ equity	—			383		—			(383		)	—
Accumulated other comprehensive loss	(1,350		)	—		(995		)	995			(1,350		)
Total stockholders’ equity	21,345			383		38,600			(38,983		)	21,345
Noncontrolling interests	492			—		492			(492		)	492
Total equity	21,837			383		39,092			(39,475		)	21,837
Total liabilities and equity	$	41,877		$	2,453	$	63,373		$	(55,681	)	$	52,022

Condensed Consolidating Balance Sheet

December 31, 2018

(in millions)

	Valero Energy Corporation			Valero Energy Partners LP		Other Non- Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	291		$	152	$	2,539		$	—		$	2,982
Receivables, net	—			—		7,345			—			7,345
Receivables from affiliates	4,369			2		11,010			(15,381		)	—
Inventories	—			—		6,532			—			6,532
Prepaid expenses and other	466			—		355			(5		)	816
Total current assets	5,126			154		27,781			(15,386		)	17,675
Property, plant and equipment, at cost	—			—		42,473			—			42,473
Accumulated depreciation	—			—		(13,625		)	—			(13,625		)
Property, plant and equipment, net	—			—		28,848			—			28,848
Investment in affiliates	36,086			2,267		299			(38,652		)	—
Long-term notes receivable from affiliates	285			—		—			(285		)	—
Deferred charges and other assets, net	572			1		3,059			—			3,632
Total assets	$	42,069		$	2,422	$	59,987		$	(54,323	)	$	50,155
LIABILITIES AND EQUITY
Current liabilities:
Current portion of debt and finance lease obligations	$	—		$	—	$	238		$	—		$	238
Accounts payable	14			—		8,580			—			8,594
Accounts payable to affiliates	10,173			837		4,370			(15,380		)	—
Accrued expenses	155			7		468			—			630
Accrued expenses to affiliates	—			1		—			(1		)	—
Taxes other than income taxes payable	—			—		1,213			—			1,213
Income taxes payable	53			1		—			(5		)	49
Total current liabilities	10,395			846		14,869			(15,386		)	10,724
Debt and finance lease obligations, less current portion	6,955			990		926			—			8,871
Long-term notes payable to affiliates	—			285		—			(285		)	—
Deferred income taxes	—			2		4,960			—			4,962
Other long-term liabilities	1,988			—		879			—			2,867
Equity:
Stockholders’ equity:
Common stock	7			—		1			(1		)	7
Additional paid-in capital	7,048			—		9,754			(9,754		)	7,048
Treasury stock, at cost	(14,925		)	—		—			—			(14,925		)
Retained earnings	31,044			—		28,631			(28,631		)	31,044
Partners’ equity	—			299		—			(299		)	—
Accumulated other comprehensive loss	(1,507		)	—		(1,097		)	1,097			(1,507		)
Total stockholders’ equity	21,667			299		37,289			(37,588		)	21,667
Noncontrolling interests	1,064			—		1,064			(1,064		)	1,064
Total equity	22,731			299		38,353			(38,652		)	22,731
Total liabilities and equity	$	42,069		$	2,422	$	59,987		$	(54,323	)	$	50,155

Condensed Consolidating Statement of Income

Condensed Consolidating Statement of Income

Three Months Ended June 30, 2019

(in millions)

	Valero Energy Corporation			Valero Energy Partners LP			Other Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	—		$	28,933		$	—		$	28,933
Cost of sales:
Cost of materials and other	—			—			26,083			—			26,083
Operating expenses (excluding depreciation and amortization expense reflected below)	—			—			1,175			—			1,175
Depreciation and amortization expense	—			—			552			—			552
Total cost of sales	—			—			27,810			—			27,810
Other operating expenses	—			—			2			—			2
General and administrative expenses (excluding depreciation and amortization expense reflected below)	—			—			199			—			199
Depreciation and amortization expense	—			—			14			—			14
Operating income	—			—			908			—			908
Equity in earnings of subsidiaries	821			105			132			(1,058		)	—
Other income, net	30			—			157			(175		)	12
Interest and debt expense, net of capitalized interest	(231		)	(9		)	(47		)	175			(112		)
Income before income tax expense	620			96			1,150			(1,058		)	808
Income tax expense (benefit)	(28		)	—			188			—			160
Net income	648			96			962			(1,058		)	648
Less: Net income attributable to noncontrolling interests	36			—			36			(36		)	36
Net income attributable to stockholders	$	612		$	96		$	926		$	(1,022	)	$	612

Condensed Consolidating Statement of Income

Three Months Ended June 30, 2018

(in millions)

	Valero Energy Corporation			Valero Energy Partners LP			Other Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	—		$	31,015		$	—		$	31,015
Cost of sales:
Cost of materials and other	—			—			27,860			—			27,860
Operating expenses (excluding depreciation and amortization expense reflected below)	—			—			1,110			—			1,110
Depreciation and amortization expense	—			—			510			—			510
Total cost of sales	—			—			29,480			—			29,480
Other operating expenses	—			—			21			—			21
General and administrative expenses (excluding depreciation and amortization expense reflected below)	—			—			248			—			248
Depreciation and amortization expense	—			—			13			—			13
Operating income	—			—			1,253			—			1,253
Equity in earnings of subsidiaries	1,052			78			94			(1,224		)	—
Other income (expense), net	29			1			143			(178		)	(5		)
Interest and debt expense, net of capitalized interest	(233		)	(14		)	(55		)	178			(124		)
Income before income tax expense	848			65			1,435			(1,224		)	1,124
Income tax expense (benefit)	(27		)	1			275			—			249
Net income	875			64			1,160			(1,224		)	875
Less: Net income attributable to noncontrolling interests	30			—			30			(30		)	30
Net income attributable to stockholders	$	845		$	64		$	1,130		$	(1,194	)	$	845

Condensed Consolidating Statement of Income

Six Months Ended June 30, 2019

(in millions)

	Valero Energy Corporation			Valero Energy Partners LP			Other Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	—		$	53,196		$	—		$	53,196
Cost of sales:
Cost of materials and other	—			—			48,061			—			48,061
Operating expenses (excluding depreciation and amortization expense reflected below)	—			—			2,390			—			2,390
Depreciation and amortization expense	—			—			1,089			—			1,089
Total cost of sales	—			—			51,540			—			51,540
Other operating expenses	—			—			4			—			4
General and administrative expenses (excluding depreciation and amortization expense reflected below)	1			—			407			—			408
Depreciation and amortization expense	—			—			28			—			28
Operating income (loss)	(1		)	—			1,217			—			1,216
Equity in earnings of subsidiaries	1,085			187			225			(1,497		)	—
Other income, net	84			—			304			(354		)	34
Interest and debt expense, net of capitalized interest	(463		)	(24		)	(91		)	354			(224		)
Income before income tax expense	705			163			1,655			(1,497		)	1,026
Income tax expense (benefit)	(110		)	—			321			—			211
Net income	815			163			1,334			(1,497		)	815
Less: Net income attributable to noncontrolling interests	62			—			62			(62		)	62
Net income attributable to stockholders	$	753		$	163		$	1,272		$	(1,435	)	$	753

Condensed Consolidating Statement of Income

Six Months Ended June 30, 2018

(in millions)

	Valero Energy Corporation			Valero Energy Partners LP			Other Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	—		$	57,454		$	—		$	57,454
Cost of sales:
Cost of materials and other	—			—			51,616			—			51,616
Operating expenses (excluding depreciation and amortization expense reflected below)	—			—			2,246			—			2,246
Depreciation and amortization expense	—			—			995			—			995
Total cost of sales	—			—			54,857			—			54,857
Other operating expenses	—			—			31			—			31
General and administrative expenses (excluding depreciation and amortization expense reflected below)	1			—			485			—			486
Depreciation and amortization expense	—			—			26			—			26
Operating income (loss)	(1		)	—			2,055			—			2,054
Equity in earnings of subsidiaries	1,772			156			273			(2,201		)	—
Other income, net	98			1			294			(347		)	46
Interest and debt expense, net of capitalized interest	(451		)	(26		)	(115		)	347			(245		)
Income before income tax expense	1,418			131			2,507			(2,201		)	1,855
Income tax expense (benefit)	(39		)	1			436			—			398
Net income	1,457			130			2,071			(2,201		)	1,457
Less: Net income attributable to noncontrolling interests	143			—			143			(143		)	143
Net income attributable to stockholders	$	1,314		$	130		$	1,928		$	(2,058	)	$	1,314

Condensed Consolidating Statement of Comprehensive Income

Condensed Consolidating Statement of Comprehensive Income

Three Months Ended June 30, 2019

(in millions)

	Valero Energy Corporation		Valero Energy Partners LP		Other Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income	$	648	$	96	$	962		$	(1,058	)	$	648
Other comprehensive income (loss):
Foreign currency translation adjustment	—		—		(27		)	27			—
Net gain on pension and other postretirement benefits	2		—		—			—			2
Net gain on cash flow hedges	5		—		5			(5		)	5
Other comprehensive income (loss) before income tax expense	7		—		(22		)	22			7
Income tax expense related to items of other comprehensive income (loss)	1		—		1			(1		)	1
Other comprehensive income (loss)	6		—		(23		)	23			6
Comprehensive income	654		96		939			(1,035		)	654
Less: Comprehensive income attributable to noncontrolling interests	40		—		40			(40		)	40
Comprehensive income attributable to stockholders	$	614	$	96	$	899		$	(995	)	$	614

Condensed Consolidating Statement of Comprehensive Income

Three Months Ended June 30, 2018

(in millions)

	Valero Energy Corporation			Valero Energy Partners LP		Other Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income	$	875		$	64	$	1,160		$	(1,224	)	$	875
Other comprehensive loss:
Foreign currency translation adjustment	(291		)	—		(268		)	268			(291		)
Net gain on pension and other postretirement benefits	9			—		1			(1		)	9
Other comprehensive loss before income tax expense	(282		)	—		(267		)	267			(282		)
Income tax expense related to items of other comprehensive loss	2			—		—			—			2
Other comprehensive loss	(284		)	—		(267		)	267			(284		)
Comprehensive income	591			64		893			(957		)	591
Less: Comprehensive income attributable to noncontrolling interests	25			—		25			(25		)	25
Comprehensive income attributable to stockholders	$	566		$	64	$	868		$	(932	)	$	566

Condensed Consolidating Statement of Comprehensive Income

Six Months Ended June 30, 2019

(in millions)

	Valero Energy Corporation		Valero Energy Partners LP		Other Non- Guarantor Subsidiaries		Eliminations			Consolidated
Net income	$	815	$	163	$	1,334	$	(1,497	)	$	815
Other comprehensive income:
Foreign currency translation adjustment	155		—		104		(104		)	155
Net gain on pension and other postretirement benefits	5		—		—		—			5
Net gain on cash flow hedges	5		—		5		(5		)	5
Other comprehensive income before income tax expense	165		—		109		(109		)	165
Income tax expense related to items of other comprehensive income	2		—		1		(1		)	2
Other comprehensive income	163		—		108		(108		)	163
Comprehensive income	978		163		1,442		(1,605		)	978
Less: Comprehensive income attributable to noncontrolling interests	68		—		68		(68		)	68
Comprehensive income attributable to stockholders	$	910	$	163	$	1,374	$	(1,537	)	$	910

Condensed Consolidating Statement of Comprehensive Income

Six Months Ended June 30, 2018

(in millions)

	Valero Energy Corporation			Valero Energy Partners LP		Other Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income	$	1,457		$	130	$	2,071		$	(2,201	)	$	1,457
Other comprehensive loss:
Foreign currency translation adjustment	(246		)	—		(192		)	192			(246		)
Net gain on pension and other postretirement benefits	17			—		1			(1		)	17
Other comprehensive loss before income tax expense	(229		)	—		(191		)	191			(229		)
Income tax expense related to items of other comprehensive loss	4			—		—			—			4
Other comprehensive loss	(233		)	—		(191		)	191			(233		)
Comprehensive income	1,224			130		1,880			(2,010		)	1,224
Less: Comprehensive income attributable to noncontrolling interests	141			—		141			(141		)	141
Comprehensive income attributable to stockholders	$	1,083		$	130	$	1,739		$	(1,869	)	$	1,083

Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows

Six Months Ended June 30, 2019

(in millions)

	Valero Energy Corporation			Valero Energy Partners LP			Other Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	244		$	(25	)	$	2,435		$	(260	)	$	2,394
Cash flows from investing activities:
Capital expenditures	—			—			(905		)	—			(905		)
Deferred turnaround and catalyst costs	—			—			(471		)	—			(471		)
Investments in joint ventures	—			—			(90		)	—			(90		)
Capital expenditures of certain VIEs	—			—			(69		)	—			(69		)
Acquisitions of undivided interests	—			—			(29		)	—			(29		)
Intercompany investing activities	212			2			(630		)	416			—
Other investing activities, net	—			—			9			—			9
Net cash provided by (used in) investing activities	212			2			(2,185		)	416			(1,555		)
Cash flows from financing activities:
Proceeds from debt issuances and borrowings (excluding borrowings of certain VIEs)	992			—			900			—			1,892
Proceeds from borrowings of certain VIEs	—			—			70			—			70
Repayments of debt and finance lease obligations	(871		)	—			(918		)	—			(1,789		)
Intercompany financing activities	395			50			(29		)	(416		)	—
Purchases of common stock for treasury	(248		)	—			—			—			(248		)
Common stock dividends	(751		)	—			(81		)	81			(751		)
Acquisition of VLP publicly held common units	—			—			(950		)	—			(950		)
Distributions to noncontrolling interests and unitholders of VLP	—			(179		)	(18		)	179			(18		)
Other financing activities, net	(18		)	—			(13		)	—			(31		)
Net cash used in financing activities	(501		)	(129		)	(1,039		)	(156		)	(1,825		)
Effect of foreign exchange rate changes on cash	—			—			37			—			37
Net decrease in cash and cash equivalents	(45		)	(152		)	(752		)	—			(949		)
Cash and cash equivalents at beginning of period	291			152			2,539			—			2,982
Cash and cash equivalents at end of period	$	246		$	—		$	1,787		$	—		$	2,033

Condensed Consolidating Statement of Cash Flows

Six Months Ended June 30, 2018

(in millions)

	Valero Energy Corporation			Valero Energy Partners LP			Other Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	(558	)	$	(22	)	$	2,874		$	(97	)	$	2,197
Cash flows from investing activities:
Capital expenditures	—			—			(740		)	—			(740		)
Deferred turnaround and catalyst costs	—			—			(490		)	—			(490		)
Investments in joint ventures	—			—			(119		)	—			(119		)
Capital expenditures of certain VIEs	—			—			(78		)	—			(78		)
Peru Acquisition, net of cash acquired	—			—			(471		)	—			(471		)
Acquisitions of undivided interests	—			—			(145		)	—			(145		)
Minor acquisitions	—			—			(91		)	—			(91		)
Intercompany investing activities	408			186			(1,339		)	745			—
Other investing activities, net	—			—			2			—			2
Net cash provided by (used in) investing activities	408			186			(3,471		)	745			(2,132		)
Cash flows from financing activities:
Proceeds from debt issuances and borrowings (excluding borrowings of certain VIEs)	750			498			10			—			1,258
Proceeds from borrowings of certain VIEs	—			—			56			—			56
Repayments of debt and finance lease obligations	(787		)	(410		)	(148		)	—			(1,345		)
Intercompany financing activities	1,341			(87		)	(509		)	(745		)	—
Purchases of common stock for treasury	(647		)	—			—			—			(647		)
Common stock dividends	(690		)	—			(17		)	17			(690		)
Contributions from noncontrolling interests	—			—			32			—			32
Distributions to noncontrolling interests and unitholders of VLP	—			(103		)	(27		)	80			(50		)
Other financing activities, net	1			(4		)	(13		)	—			(16		)
Net cash used in financing activities	(32		)	(106		)	(616		)	(648		)	(1,402		)
Effect of foreign exchange rate changes on cash	—			—			(62		)	—			(62		)
Net increase (decrease) in cash and cash equivalents	(182		)	58			(1,275		)	—			(1,399		)
Cash and cash equivalents at beginning of period	1,746			42			4,062			—			5,850
Cash and cash equivalents at end of period	$	1,564		$	100		$	2,787		$	—		$	4,451