Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

September 30, 2019

(in millions)



	Valero Energy Corporation			Valero Energy Partners LP		Other Non- Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	209		$	—	$	1,928		$	—		$	2,137
Receivables, net	—			—		7,994			—			7,994
Receivables from affiliates	4,396			—		12,406			(16,802		)	—
Inventories	—			—		6,376			—			6,376
Prepaid expenses and other	64			—		462			—			526
Total current assets	4,669			—		29,166			(16,802		)	17,033
Property, plant and equipment, at cost	—			—		43,539			—			43,539
Accumulated depreciation	—			—		(14,649		)	—			(14,649		)
Property, plant and equipment, net	—			—		28,890			—			28,890
Investment in affiliates	36,327			2,566		383			(39,276		)	—
Deferred charges and other assets, net	552			—		4,754			—			5,306
Total assets	$	41,548		$	2,566	$	63,193		$	(56,078	)	$	51,229
LIABILITIES AND EQUITY
Current liabilities:
Current portion of debt and finance lease obligations	$	—		$	—	$	402		$	—		$	402
Accounts payable	—			—		9,504			—			9,504
Accounts payable to affiliates	11,223			1,183		4,396			(16,802		)	—
Accrued expenses	155			7		719			—			881
Taxes other than income taxes payable	—			—		1,175			—			1,175
Income taxes payable	83			—		85			—			168
Total current liabilities	11,461			1,190		16,281			(16,802		)	12,130
Debt and finance lease obligations, less current portion	7,094			991		1,085			—			9,170
Deferred income tax liabilities	—			2		4,918			—			4,920
Other long-term liabilities	1,886			—		1,535			—			3,421
Equity:
Stockholders’ equity:
Common stock	7			—		1			(1		)	7
Additional paid-in capital	6,818			—		9,765			(9,765		)	6,818
Treasury stock, at cost	(15,472		)	—		—			—			(15,472		)
Retained earnings	31,283			—		30,286			(30,286		)	31,283
Partners’ equity	—			383		—			(383		)	—
Accumulated other comprehensive loss	(1,529		)	—		(1,159		)	1,159			(1,529		)
Total stockholders’ equity	21,107			383		38,893			(39,276		)	21,107
Noncontrolling interests	—			—		481			—			481
Total equity	21,107			383		39,374			(39,276		)	21,588
Total liabilities and equity	$	41,548		$	2,566	$	63,193		$	(56,078	)	$	51,229

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		10,684			(15,055		)	—
Inventories	—			—		6,532			—			6,532
Prepaid expenses and other	466			—		355			(5		)	816
Total current assets	5,126			154		27,455			(15,060		)	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	34,696			2,267		(321		)	(36,642		)	—
Long-term notes receivable from affiliates	285			—		—			(285		)	—
Deferred charges and other assets, net	572			1		3,059			—			3,632
Total assets	$	40,679		$	2,422	$	59,041		$	(51,987	)	$	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	9,847			837		4,370			(15,054		)	—
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	10,069			846		14,869			(15,060		)	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 tax liabilities	—			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			—		28,305			(28,305		)	31,044
Partners’ equity	—			299		—			(299		)	—
Accumulated other comprehensive loss	(1,507		)	—		(1,097		)	1,097			(1,507		)
Total stockholders’ equity	21,667			299		36,963			(37,262		)	21,667
Noncontrolling interests	—			—		444			620			1,064
Total equity	21,667			299		37,407			(36,642		)	22,731
Total liabilities and equity	$	40,679		$	2,422	$	59,041		$	(51,987	)	$	50,155

Condensed Consolidating Statement of Income

Three Months Ended September 30, 2019

(in millions)



	Valero Energy Corporation			Valero Energy Partners LP			Other Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	—		$	27,249		$	—		$	27,249
Cost of sales:
Cost of materials and other	—			—			24,335			—			24,335
Operating expenses (excluding depreciation and amortization expense reflected below)	—			—			1,239			—			1,239
Depreciation and amortization expense	—			—			556			—			556
Total cost of sales	—			—			26,130			—			26,130
Other operating expenses	—			—			10			—			10
General and administrative expenses (excluding depreciation and amortization expense reflected below)	2			—			215			—			217
Depreciation and amortization expense	—			—			11			—			11
Operating income (loss)	(2		)	—			883			—			881
Equity in earnings of subsidiaries	740			112			100			(952		)	—
Other income, net	54			—			158			(178		)	34
Interest and debt expense, net of capitalized interest	(230		)	(12		)	(47		)	178			(111		)
Income before income tax expense (benefit)	562			100			1,094			(952		)	804
Income tax expense (benefit)	(47		)	—			212			—			165
Net income	609			100			882			(952		)	639
Less: Net income attributable to noncontrolling interests	—			—			30			—			30
Net income attributable to stockholders	$	609		$	100		$	852		$	(952	)	$	609

Condensed Consolidating Statement of Income

Three Months Ended September 30, 2018

(in millions)



	Valero Energy Corporation			Valero Energy Partners LP			Other Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	—		$	30,849		$	—		$	30,849
Cost of sales:
Cost of materials and other	—			—			27,701			—			27,701
Operating expenses (excluding depreciation and amortization expense reflected below)	—			—			1,193			—			1,193
Depreciation and amortization expense	—			—			504			—			504
Total cost of sales	—			—			29,398			—			29,398
Other operating expenses	—			—			10			—			10
General and administrative expenses (excluding depreciation and amortization expense reflected below)	3			—			206			—			209
Depreciation and amortization expense	—			—			13			—			13
Operating income (loss)	(3		)	—			1,222			—			1,219
Equity in earnings of subsidiaries	1,005			85			53			(1,143		)	—
Other income, net	65			—			161			(184		)	42
Interest and debt expense, net of capitalized interest	(230		)	(15		)	(50		)	184			(111		)
Income before income tax expense (benefit)	837			70			1,386			(1,143		)	1,150
Income tax expense (benefit)	(19		)	—			295			—			276
Net income	856			70			1,091			(1,143		)	874
Less: Net income attributable to noncontrolling interests	—			—			1			17			18
Net income attributable to stockholders	$	856		$	70		$	1,090		$	(1,160	)	$	856

Condensed Consolidating Statement of Income

Nine Months Ended September 30, 2019

(in millions)



	Valero Energy Corporation			Valero Energy Partners LP			Other Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	—		$	80,445		$	—		$	80,445
Cost of sales:
Cost of materials and other	—			—			72,396			—			72,396
Operating expenses (excluding depreciation and amortization expense reflected below)	—			—			3,629			—			3,629
Depreciation and amortization expense	—			—			1,645			—			1,645
Total cost of sales	—			—			77,670			—			77,670
Other operating expenses	—			—			14			—			14
General and administrative expenses (excluding depreciation and amortization expense reflected below)	3			—			622			—			625
Depreciation and amortization expense	—			—			39			—			39
Operating income (loss)	(3		)	—			2,100			—			2,097
Equity in earnings of subsidiaries	1,763			299			261			(2,323		)	—
Other income, net	138			—			462			(532		)	68
Interest and debt expense, net of capitalized interest	(693		)	(36		)	(138		)	532			(335		)
Income before income tax expense (benefit)	1,205			263			2,685			(2,323		)	1,830
Income tax expense (benefit)	(157		)	—			533			—			376
Net income	1,362			263			2,152			(2,323		)	1,454
Less: Net income attributable to noncontrolling interests	—			—			90			2			92
Net income attributable to stockholders	$	1,362		$	263		$	2,062		$	(2,325	)	$	1,362

Condensed Consolidating Statement of Income

Nine Months Ended September 30, 2018

(in millions)



	Valero Energy Corporation			Valero Energy Partners LP			Other Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	—		$	88,303		$	—		$	88,303
Cost of sales:
Cost of materials and other	—			—			79,317			—			79,317
Operating expenses (excluding depreciation and amortization expense reflected below)	—			—			3,439			—			3,439
Depreciation and amortization expense	—			—			1,499			—			1,499
Total cost of sales	—			—			84,255			—			84,255
Other operating expenses	—			—			41			—			41
General and administrative expenses (excluding depreciation and amortization expense reflected below)	4			—			691			—			695
Depreciation and amortization expense	—			—			39			—			39
Operating income (loss)	(4		)	—			3,277			—			3,273
Equity in earnings of subsidiaries	2,634			241			152			(3,027		)	—
Other income, net	163			1			455			(531		)	88
Interest and debt expense, net of capitalized interest	(681		)	(41		)	(165		)	531			(356		)
Income before income tax expense (benefit)	2,112			201			3,719			(3,027		)	3,005
Income tax expense (benefit)	(58		)	1			731			—			674
Net income	2,170			200			2,988			(3,027		)	2,331
Less: Net income attributable to noncontrolling interests	—			—			113			48			161
Net income attributable to stockholders	$	2,170		$	200		$	2,875		$	(3,075	)	$	2,170

Condensed Consolidating Statement of Comprehensive Income

Three Months Ended September 30, 2019

(in millions)



	Valero Energy Corporation			Valero Energy Partners LP		Other Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income	$	609		$	100	$	882		$	(952	)	$	639
Other comprehensive loss:
Foreign currency translation adjustment	(180		)	—		(163		)	163			(180		)
Net gain on pension and other postretirement benefits	3			—		—			—			3
Net loss on cash flow hedges	(2		)	—		(4		)	2			(4		)
Other comprehensive loss before income tax benefit	(179		)	—		(167		)	165			(181		)
Income tax benefit related to items of other comprehensive loss	—			—		(1		)	1			—
Other comprehensive loss	(179		)	—		(166		)	164			(181		)
Comprehensive income	430			100		716			(788		)	458
Less: Comprehensive income attributable to noncontrolling interests	—			—		28			—			28
Comprehensive income attributable to stockholders	$	430		$	100	$	688		$	(788	)	$	430

Condensed Consolidating Statement of Comprehensive Income

Three Months Ended September 30, 2018

(in millions)



	Valero Energy Corporation		Valero Energy Partners LP		Other Non- Guarantor Subsidiaries		Eliminations			Consolidated
Net income	$	856	$	70	$	1,091	$	(1,143	)	$	874
Other comprehensive income:
Foreign currency translation adjustment	20		—		2		1			23
Net gain on pension and other postretirement benefits	8		—		—		—			8
Other comprehensive income before income tax expense	28		—		2		1			31
Income tax expense related to items of other comprehensive income	1		—		—		—			1
Other comprehensive income	27		—		2		1			30
Comprehensive income	883		70		1,093		(1,142		)	904
Less: Comprehensive income attributable to noncontrolling interests	—		—		4		17			21
Comprehensive income attributable to stockholders	$	883	$	70	$	1,089	$	(1,159	)	$	883

Condensed Consolidating Statement of Comprehensive Income

Nine Months Ended September 30, 2019

(in millions)



	Valero Energy Corporation			Valero Energy Partners LP		Other Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income	$	1,362		$	263	$	2,152		$	(2,323	)	$	1,454
Other comprehensive loss:
Foreign currency translation adjustment	(28		)	—		(59		)	62			(25		)
Net gain on pension and other postretirement benefits	8			—		—			—			8
Net gain on cash flow hedges	—			—		1			—			1
Other comprehensive loss before income tax expense	(20		)	—		(58		)	62			(16		)
Income tax expense related to items of other comprehensive loss	2			—		—			—			2
Other comprehensive loss	(22		)	—		(58		)	62			(18		)
Comprehensive income	1,340			263		2,094			(2,261		)	1,436
Less: Comprehensive income attributable to noncontrolling interests	—			—		94			2			96
Comprehensive income attributable to stockholders	$	1,340		$	263	$	2,000		$	(2,263	)	$	1,340

Condensed Consolidating Statement of Comprehensive Income

Nine Months Ended September 30, 2018

(in millions)



	Valero Energy Corporation			Valero Energy Partners LP		Other Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income	$	2,170		$	200	$	2,988		$	(3,027	)	$	2,331
Other comprehensive loss:
Foreign currency translation adjustment	(224		)	—		(190		)	191			(223		)
Net gain on pension and other postretirement benefits	25			—		1			(1		)	25
Other comprehensive loss before income tax expense	(199		)	—		(189		)	190			(198		)
Income tax expense related to items of other comprehensive loss	5			—		—			—			5
Other comprehensive loss	(204		)	—		(189		)	190			(203		)
Comprehensive income	1,966			200		2,799			(2,837		)	2,128
Less: Comprehensive income attributable to noncontrolling interests	—			—		114			48			162
Comprehensive income attributable to stockholders	$	1,966		$	200	$	2,685		$	(2,885	)	$	1,966

Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 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	$	15		$	(35	)	$	4,203		$	(360	)	$	3,823
Cash flows from investing activities:
Capital expenditures (excluding VIEs)	—			—			(1,179		)	—			(1,179		)
Capital expenditures of VIEs:
DGD	—			—			(91		)	—			(91		)
Other VIEs	—			—			(139		)	—			(139		)
Deferred turnaround and catalyst cost expenditures (excluding VIEs)	—			—			(583		)	—			(583		)
Deferred turnaround and catalyst cost expenditures of DGD	—			—			(16		)	—			(16		)
Investments in unconsolidated joint ventures	—			—			(122		)	—			(122		)
Acquisitions of undivided interests	—			—			(65		)	—			(65		)
Intercompany investing activities	289			2			(1,533		)	1,242			—
Other investing activities, net	—			—			5			—			5
Net cash provided by (used in) investing activities	289			2			(3,723		)	1,242			(2,190		)
Cash flows from financing activities:
Proceeds from debt issuances and borrowings (excluding VIEs)	992			—			900			—			1,892
Proceeds from borrowings of VIEs	—			—			148			—			148
Repayments of debt and finance lease obligations (excluding VIEs)	(871		)	—			(925		)	—			(1,796		)
Repayments of debt of VIEs	—			—			(4		)	—			(4		)
Intercompany financing activities	1,187			160			(105		)	(1,242		)	—
Purchases of common stock for treasury	(555		)	—			—			—			(555		)
Common stock dividends	(1,123		)	—			(81		)	81			(1,123		)
Acquisition of VLP publicly held common units	—			—			(950		)	—			(950		)
Distributions to noncontrolling interests and unitholders of VLP	—			(279		)	(57		)	279			(57		)
Other financing activities, net	(16		)	—			(13		)	—			(29		)
Net cash used in financing activities	(386		)	(119		)	(1,087		)	(882		)	(2,474		)
Effect of foreign exchange rate changes on cash	—			—			(4		)	—			(4		)
Net decrease in cash and cash equivalents	(82		)	(152		)	(611		)	—			(845		)
Cash and cash equivalents at beginning of period	291			152			2,539			—			2,982
Cash and cash equivalents at end of period	$	209		$	—		$	1,928		$	—		$	2,137

Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 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	$	(824	)	$	(37	)	$	3,709		$	(155	)	$	2,693
Cash flows from investing activities:
Capital expenditures (excluding VIEs)	—			—			(1,025		)	—			(1,025		)
Capital expenditures of VIEs:
DGD	—			—			(143		)	—			(143		)
Other VIEs	—			—			(89		)	—			(89		)
Deferred turnaround and catalyst cost expenditures (excluding VIEs)	—			—			(641		)	—			(641		)
Deferred turnaround and catalyst cost expenditures of DGD	—			—			(20		)	—			(20		)
Investments in unconsolidated joint ventures	—			—			(124		)	—			(124		)
Peru Acquisition, net of cash acquired	—			—			(466		)	—			(466		)
Acquisitions of undivided interests	—			—			(181		)	—			(181		)
Minor acquisitions	—			—			(88		)	—			(88		)
Intercompany investing activities	590			292			(1,425		)	543			—
Other investing activities, net	—			—			9			—			9
Net cash provided by (used in) investing activities	590			292			(4,193		)	543			(2,768		)
Cash flows from financing activities:
Proceeds from debt issuances and borrowings (excluding VIEs)	750			498			10			—			1,258
Proceeds from borrowings of VIEs	—			—			71			—			71
Repayments of debt and finance lease obligations (excluding VIEs)	(787		)	(410		)	(151		)	—			(1,348		)
Repayments of debt of VIEs	—			—			(4		)	—			(4		)
Intercompany financing activities	1,435			(94		)	(798		)	(543		)	—
Purchases of common stock for treasury	(1,081		)	—			—			—			(1,081		)
Common stock dividends	(1,031		)	—			(32		)	32			(1,031		)
Contributions from noncontrolling interests	—			—			32			—			32
Distributions to noncontrolling interests and unitholders of VLP	—			(159		)	(27		)	123			(63		)
Other financing activities, net	2			(4		)	(13		)	—			(15		)
Net cash used in financing activities	(712		)	(169		)	(912		)	(388		)	(2,181		)
Effect of foreign exchange rate changes on cash	—			—			(43		)	—			(43		)
Net increase (decrease) in cash and cash equivalents	(946		)	86			(1,439		)	—			(2,299		)
Cash and cash equivalents at beginning of period	1,746			42			4,062			—			5,850
Cash and cash equivalents at end of period	$	800		$	128		$	2,623		$	—		$	3,551