Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Document type | 10-K | ||
Document annual report | true | ||
Document period end date | Dec. 31, 2019 | ||
Document transition report | false | ||
Entity file number | 001-13175 | ||
Entity registrant name | VALERO ENERGY CORP/TX | ||
Entity incorporation, state or country code | DE | ||
Entity tax identification number | 74-1828067 | ||
Entity address, address line one | One Valero Way | ||
Entity address, city or town | San Antonio | ||
Entity address, state or province | TX | ||
Entity address, postal zip code | 78249 | ||
City area code | 210 | ||
Local phone number | 345-2000 | ||
Title of 12(b) security | Common stock | ||
Trading symbol | VLO | ||
Security exchange name | NYSE | ||
Entity well-known seasoned issuer | Yes | ||
Entity voluntary filers | No | ||
Entity current reporting status | Yes | ||
Entity interactive data current | Yes | ||
Entity filer category | Large Accelerated Filer | ||
Entity small business | false | ||
Entity emerging growth company | false | ||
Entity shell company | false | ||
Entity public float | $ 35.5 | ||
Entity common stock, shares outstanding | 409,337,126 | ||
Documents incorporated by reference | We intend to file with the Securities and Exchange Commission a definitive Proxy Statement for our Annual Meeting of Stockholders scheduled for April 30, 2020, at which directors will be elected. Portions of the 2020 Proxy Statement are incorporated by reference in Part III of this Form 10-K and are deemed to be a part of this report. | ||
Entity central index key | 0001035002 | ||
Amendment flag | false | ||
Document fiscal year focus | 2019 | ||
Document fiscal period focus | FY | ||
Current fiscal year end date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 2,583 | $ 2,982 |
Receivables, net | 8,904 | 7,345 |
Inventories | 7,013 | 6,532 |
Prepaid expenses and other | 469 | 816 |
Total current assets | 18,969 | 17,675 |
Property, plant, and equipment, at cost | 44,294 | 42,473 |
Accumulated depreciation | (15,030) | (13,625) |
Property, plant, and equipment, net | 29,264 | 28,848 |
Deferred charges and other assets, net | 5,631 | 3,632 |
Total assets | 53,864 | 50,155 |
Current liabilities: | ||
Current portion of debt and finance lease obligations | 494 | 238 |
Accounts payable | 10,205 | 8,594 |
Accrued expenses | 949 | 630 |
Taxes other than income taxes payable | 1,304 | 1,213 |
Income taxes payable | 208 | 49 |
Total current liabilities | 13,160 | 10,724 |
Debt and finance lease obligations, less current portion | 9,178 | 8,871 |
Deferred income tax liabilities | 5,103 | 4,962 |
Other long-term liabilities | 3,887 | 2,867 |
Commitments and contingencies | ||
Valero Energy Corporation stockholders’ equity: | ||
Common stock, $0.01 par value; 1,200,000,000 shares authorized; 673,501,593 and 673,501,593 shares issued | 7 | 7 |
Additional paid-in capital | 6,821 | 7,048 |
Treasury stock, at cost; 264,209,742 and 255,905,051 common shares | (15,648) | (14,925) |
Retained earnings | 31,974 | 31,044 |
Accumulated other comprehensive loss | (1,351) | (1,507) |
Total Valero Energy Corporation stockholders’ equity | 21,803 | 21,667 |
Noncontrolling interests | 733 | 1,064 |
Total equity | 22,536 | 22,731 |
Total liabilities and equity | $ 53,864 | $ 50,155 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Valero Energy Corporation stockholders’ equity: | ||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock authorized (shares) | 1,200,000,000 | 1,200,000,000 |
Common stock issued (shares) | 673,501,593 | 673,501,593 |
Treasury stock (shares) | 264,209,742 | 255,905,051 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Revenues | [1] | $ 108,324 | $ 117,033 | $ 93,980 |
Cost of sales: | ||||
Cost of materials and other | 96,476 | 104,732 | 83,037 | |
Operating expenses (excluding depreciation and amortization expense reflected below) | 4,868 | 4,690 | 4,504 | |
Depreciation and amortization expense | 2,202 | 2,017 | 1,934 | |
Total cost of sales | 103,546 | 111,439 | 89,475 | |
Other operating expenses | 21 | 45 | 61 | |
General and administrative expenses (excluding depreciation and amortization expense reflected below) | 868 | 925 | 829 | |
Depreciation and amortization expense | 53 | 52 | 52 | |
Operating income (loss) | 3,836 | 4,572 | 3,563 | |
Other income, net | 104 | 130 | 112 | |
Interest and debt expense, net of capitalized interest | (454) | (470) | (468) | |
Income before income tax expense (benefit) | 3,486 | 4,232 | 3,207 | |
Income tax expense (benefit) | 702 | 879 | (949) | |
Net income | 2,784 | 3,353 | 4,156 | |
Less: Net income attributable to noncontrolling interests | 362 | 231 | 91 | |
Net income attributable to Valero Energy Corporation stockholders | $ 2,422 | $ 3,122 | $ 4,065 | |
Earnings per common share (in usd per share) | $ 5.84 | $ 7.30 | $ 9.17 | |
Weighted-average common shares outstanding (shares) | 413 | 426 | 442 | |
Earnings per common share – assuming dilution (in usd per share) | $ 5.84 | $ 7.29 | $ 9.16 | |
Weighted-average common shares outstanding – assuming dilution (shares) | 414 | 428 | 444 | |
Supplemental information: | ||||
Includes excise taxes on sales by certain of our international operations | $ 5,595 | $ 5,626 | $ 5,573 | |
[1] | Includes excise taxes on sales by certain of our international operations of $5,595 million, $5,626 million, and $5,573 million for the years ended December 31, 2019, 2018, and 2017. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Net income | $ 3,353 | $ 4,156 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | (517) | 514 |
Net gain (loss) on pension and other postretirement benefits | 49 | (65) |
Net loss on cash flow hedges | 0 | 0 |
Other comprehensive income (loss) before income tax expense (benefit) | (468) | 449 |
Income tax expense (benefit) related to items of other comprehensive income (loss) | 10 | (21) |
Other comprehensive income (loss) | (478) | 470 |
Comprehensive income | 2,875 | 4,626 |
Less: Comprehensive income attributable to noncontrolling interests | 229 | 91 |
Comprehensive income attributable to Valero Energy Corporation stockholders | $ 2,646 | $ 4,535 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Valero Energy Partners LP [Member] | Entities Other Than Valero Energy Partners LP [Member] | Valero Energy Corporation Stockholders' Equity [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Non-controlling Interests [Member] | Non-controlling Interests [Member]Valero Energy Partners LP [Member] | Non-controlling Interests [Member]Entities Other Than Valero Energy Partners LP [Member] |
Balance as of beginning of period at Dec. 31, 2016 | $ 20,854 | $ 20,024 | $ 7 | $ 7,088 | $ (12,027) | $ 26,366 | $ (1,410) | $ 830 | ||||
Increase (Decrease) in Stockholders' Equity Roll Forward | ||||||||||||
Net income | 4,156 | 4,065 | 4,065 | 91 | ||||||||
Dividends on common stock | (1,242) | (1,242) | (1,242) | |||||||||
Stock-based compensation expense | 68 | 68 | 68 | |||||||||
Transactions in connection with stock-based compensation plans | (63) | (63) | (82) | 19 | ||||||||
Stock purchases under purchase programs | (1,307) | (1,307) | (1,307) | |||||||||
Issuance of Valero Energy Partners LP common units and contributions from noncontrolling interests | $ 33 | $ 30 | $ 33 | $ 30 | ||||||||
Distributions to noncontrolling interests | (67) | (67) | ||||||||||
Other | (32) | (24) | (35) | 11 | (8) | |||||||
Other comprehensive income (loss) | 470 | 470 | 470 | 0 | ||||||||
Balance as of end of period at Dec. 31, 2017 | 22,900 | 21,991 | 7 | 7,039 | (13,315) | 29,200 | (940) | 909 | ||||
Increase (Decrease) in Stockholders' Equity Roll Forward | ||||||||||||
Reclassification of stranded income tax effects | 0 | 0 | 91 | (91) | ||||||||
Net income | 3,353 | 3,122 | 3,122 | 231 | ||||||||
Dividends on common stock | (1,369) | (1,369) | (1,369) | |||||||||
Stock-based compensation expense | 82 | 82 | 82 | |||||||||
Transactions in connection with stock-based compensation plans | (169) | (169) | (70) | (99) | ||||||||
Stock purchases under purchase programs | (1,511) | (1,511) | (1,511) | |||||||||
Issuance of Valero Energy Partners LP common units and contributions from noncontrolling interests | $ 32 | $ 32 | ||||||||||
Distributions to noncontrolling interests | (116) | (116) | ||||||||||
Other | 7 | (3) | (3) | 0 | 10 | |||||||
Other comprehensive income (loss) | (478) | (476) | (476) | (2) | ||||||||
Balance as of end of period at Dec. 31, 2018 | 22,731 | 21,667 | 7 | 7,048 | (14,925) | 31,044 | (1,507) | 1,064 | ||||
Increase (Decrease) in Stockholders' Equity Roll Forward | ||||||||||||
Net income | 2,784 | 2,422 | 2,422 | 362 | ||||||||
Dividends on common stock | (1,492) | (1,492) | (1,492) | |||||||||
Stock-based compensation expense | 77 | 77 | 77 | |||||||||
Transactions in connection with stock-based compensation plans | (20) | (20) | (50) | 30 | ||||||||
Stock purchases under purchase programs | (753) | (753) | (753) | |||||||||
Acquisition of Valero Energy Partners LP publicly held common units | (950) | (328) | (328) | (622) | ||||||||
Distributions to noncontrolling interests | (70) | (70) | ||||||||||
Other | 74 | 74 | 74 | 0 | 0 | |||||||
Other comprehensive income (loss) | 155 | 156 | 156 | (1) | ||||||||
Balance as of end of period at Dec. 31, 2019 | $ 22,536 | $ 21,803 | $ 7 | $ 6,821 | $ (15,648) | $ 31,974 | $ (1,351) | $ 733 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Common stock dividends: | |||
Dividends on common stock (in usd per share) | $ 3.6 | $ 3.2 | $ 2.8 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 2,784 | $ 3,353 | $ 4,156 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 2,255 | 2,069 | 1,986 |
Deferred income tax expense (benefit) | 234 | 203 | (2,543) |
Changes in current assets and current liabilities | 294 | (1,297) | 1,289 |
Changes in deferred charges and credits and other operating activities, net | (36) | 43 | 594 |
Net cash provided by operating activities | 5,531 | 4,371 | 5,482 |
Cash flows from investing activities: | |||
Investments in unconsolidated joint ventures | (164) | (181) | (406) |
Peru Acquisition, net of cash acquired | 0 | (468) | 0 |
Acquisitions of undivided interests | (72) | (212) | (72) |
Other investing activities, net | 12 | 8 | (2) |
Net cash provided by (used in) investing activities | (3,001) | (3,928) | (2,382) |
Cash flows from financing activities: | |||
Purchases of common stock for treasury | (777) | (1,708) | (1,372) |
Common stock dividends | (1,492) | (1,369) | (1,242) |
Acquisition of Valero Energy Partners LP publicly held common units | (950) | 0 | 0 |
Contributions from noncontrolling interests | 0 | 32 | 30 |
Distributions to noncontrolling interests | (70) | (116) | (67) |
Other financing activities, net | (28) | (15) | 20 |
Net cash provided by (used in) financing activities | (2,997) | (3,168) | (2,272) |
Effect of foreign exchange rate changes on cash | 68 | (143) | 206 |
Net increase (decrease) in cash and cash equivalents | (399) | (2,868) | 1,034 |
Cash and cash equivalents at beginning of year | 2,982 | 5,850 | 4,816 |
Cash and cash equivalents at end of year | 2,583 | 2,982 | 5,850 |
Minor Acquisitions [Member] | |||
Cash flows from investing activities: | |||
Asset acquisitions | 0 | (88) | 0 |
Ethanol Plants [Member] | |||
Cash flows from investing activities: | |||
Asset acquisitions | (3) | (320) | 0 |
Variable Interest Entities (VIEs) [Member] | |||
Cash flows from financing activities: | |||
Proceeds from debt issuances and borrowings | 239 | 109 | 0 |
Repayments of debt and finance lease obligations | (6) | (6) | (6) |
Diamond Green Diesel Holdings LLC (DGD) [Member] | |||
Cash flows from investing activities: | |||
Capital expenditures | (142) | (165) | (84) |
Deferred turnaround and catalyst cost expenditures | (18) | (27) | (4) |
Other VIEs [Member] | |||
Cash flows from investing activities: | |||
Capital expenditures | (225) | (124) | (26) |
Excluding Variable Interest Entities (VIEs) [Member] | |||
Cash flows from investing activities: | |||
Capital expenditures | (1,627) | (1,463) | (1,269) |
Deferred turnaround and catalyst cost expenditures | (762) | (888) | (519) |
Cash flows from financing activities: | |||
Proceeds from debt issuances and borrowings | 1,892 | 1,258 | 380 |
Repayments of debt and finance lease obligations | $ (1,805) | $ (1,353) | $ (15) |
Description of Business, Basis
Description of Business, Basis of Presentation, and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES | 1. DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES Description of Business The terms “Valero,” “we,” “our,” and “us,” as used in this report, may refer to Valero Energy Corporation, one or more of its consolidated subsidiaries, or all of them taken as a whole. We are an international manufacturer and marketer of transportation fuels and petrochemical products. We own and operate 15 petroleum refineries with a combined throughput capacity of approximately 3.15 million barrels per day and 14 ethanol plants with a combined production capacity of approximately 1.73 billion gallons per year as of December 31, 2019 . The petroleum refineries are located in the United States (U.S.), Canada, and the United Kingdom (U.K.), and the ethanol plants are located in the Mid-Continent region of the U.S. We are also a joint venture partner in DGD, which owns and operates a renewable diesel plant in Norco, Louisiana. We sell our products in the wholesale rack or bulk markets in the U.S., Canada, the U.K., Ireland, and Latin America. Approximately 7,000 outlets carry our brand names. Basis of Presentation General These consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles (GAAP) and with the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Reclassifications Effective January 1, 2019, we revised our reportable segments to reflect a new reportable segment — renewable diesel. The renewable diesel segment includes the operations of DGD, our consolidated joint venture as discussed in Note 12 , that were transferred from the refining segment. Also effective January 1, 2019, we no longer have a VLP segment, and we now include the operations of Valero Energy Partners LP and its consolidated subsidiaries (VLP) in our refining segment. Our prior period segment information has been retrospectively adjusted to reflect our current segment presentation. See Note 2 regarding our merger with VLP, which occurred on January 10, 2019, and Note 17 for segment information. Prior year amounts for capital expenditures and deferred turnaround and catalyst cost expenditures in the consolidated statements of cash flows have been reclassified to conform to the 2019 presentation to separately provide these expenditures for us and our consolidated VIEs. Significant Accounting Policies Principles of Consolidation These financial statements include those of Valero, our wholly owned subsidiaries, and VIEs in which we have a controlling financial interest. Our VIEs are described in Note 12 . The ownership interests held by others in the VIEs are recorded as noncontrolling interests. Intercompany items and transactions have been eliminated in consolidation. Investments in less than wholly owned entities where we have significant influence are accounted for using the equity method. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. On an ongoing basis, we review our estimates based on currently available information. Changes in facts and circumstances may result in revised estimates. Cash Equivalents Our cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and have a maturity of three months or less when acquired. Receivables Trade receivables are carried at original invoice amount. We maintain an allowance for doubtful accounts, which is adjusted based on management’s assessment of our customers’ historical collection experience, known credit risks, and industry and economic conditions. Inventories The cost of refinery feedstocks and refined petroleum products, grain and ethanol, and renewable diesel feedstocks (animal fats, used cooking oils, and other vegetable oils) and renewable diesel is determined under the last-in, first-out (LIFO) method using the dollar-value LIFO approach, with any increments valued based on average purchase prices during the year. Our LIFO inventories are carried at the lower of cost or market. The cost of products purchased for resale and the cost of materials and supplies are determined principally under the weighted-average cost method. Our non-LIFO inventories are carried at the lower of cost or net realizable value. If the aggregate market value of our LIFO inventories or the aggregate net realizable value of our non-LIFO inventories is less than the related aggregate cost, we recognize a loss for the difference in our statements of income. Property, Plant, and Equipment The cost of property, plant, and equipment (property assets) purchased or constructed, including betterments of property assets, is capitalized. However, the cost of repairs to and normal maintenance of property assets is expensed as incurred. Betterments of property assets are those that extend the useful life, increase the capacity or improve the operating efficiency of the asset, or improve the safety of our operations. The cost of property assets constructed includes interest and certain overhead costs allocable to the construction activities. Our operations, especially those of our refining segment, are highly capital intensive. Each of our refineries comprises a large base of property assets, consisting of a series of interconnected, highly integrated and interdependent crude oil processing facilities and supporting logistical infrastructure (Units), and these Units are continuously improved. Improvements consist of the addition of new Units and betterments of existing Units. We plan for these improvements by developing a multi-year capital program that is updated and revised based on changing internal and external factors. Depreciation of property assets used in our refining and renewable diesel segments is recorded on a straight-line basis over the estimated useful lives of these assets primarily using the composite method of depreciation. We maintain a separate composite group of property assets for each of our refineries and our renewable diesel plant. We estimate the useful life of each group based on an evaluation of the property assets comprising the group, and such evaluations consist of, but are not limited to, the physical inspection of the assets to determine their condition, consideration of the manner in which the assets are maintained, assessment of the need to replace assets, and evaluation of the manner in which improvements impact the useful life of the group. The estimated useful lives of our composite groups range primarily from 20 to 30 years. Under the composite method of depreciation, the cost of an improvement is added to the composite group to which it relates and is depreciated over that group’s estimated useful life. We design improvements to our refineries and renewable diesel plant in accordance with engineering specifications, design standards, and practices accepted in our industry, and these improvements have design lives consistent with our estimated useful lives. Therefore, we believe the use of the group life to depreciate the cost of improvements made to the group is reasonable because the estimated useful life of each improvement is consistent with that of the group. Also under the composite method of depreciation, the historical cost of a minor property asset (net of salvage value) that is retired or replaced is charged to accumulated depreciation and no gain or loss is recognized in income. However, a gain or loss is recognized in income for a major property asset that is retired, replaced, sold, or for an abnormal disposition of a property asset (primarily involuntary conversions). Gains and losses are reflected in depreciation and amortization expense, unless such amounts are reported separately due to materiality. Depreciation of property assets used in our ethanol segment is recorded on a straight-line basis over the estimated useful lives of the related assets. The estimated useful life of our grain processing equipment is 20 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or the estimated useful life of the related asset. Finance lease ROU (defined below) assets are amortized as discussed in “Leases” below. Deferred Charges and Other Assets “Deferred charges and other assets, net” primarily include the following: • turnaround costs, which are incurred in connection with planned major maintenance activities at our refineries, ethanol plants, and renewable diesel plant, are deferred when incurred and amortized on a straight-line basis over the period of time estimated to lapse until the next turnaround occurs; • fixed-bed catalyst costs, representing the cost of catalyst that is changed out at periodic intervals when the quality of the catalyst has deteriorated beyond its prescribed function, are deferred when incurred and amortized on a straight-line basis over the estimated useful life of the specific catalyst; • operating lease ROU (defined below) assets, which are amortized as discussed in “Leases” below; • investments in unconsolidated joint ventures; • income taxes receivable; • intangible assets, which are amortized over their estimated useful lives; and • goodwill. Leases We evaluate if a contract is or contains a lease at inception of the contract. If we determine that a contract is or contains a lease, we recognize a right-of-use (ROU) asset and lease liability at the commencement date of the lease based on the present value of lease payments over the lease term. The present value of the lease payments is determined by using the implicit rate when readily determinable. If not determinable, our centrally managed treasury group provides an incremental borrowing rate based on quoted interest rates obtained from financial institutions. The rate used is for a term similar to the duration of the lease based on information available at the commencement date. Lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise those options. We recognize ROU assets and lease liabilities for leasing arrangements with terms greater than one year. Except for the marine transportation asset class, we account for lease and non-lease components in a contract as a single lease component for all classes of underlying assets. Our marine transportation contracts include non-lease components, such as maintenance and crew costs. We allocate the consideration in these contracts based on pricing information provided by the third-party broker. Expense for an operating lease is recognized as a single lease cost on a straight-line basis over the lease term and is reflected in the appropriate income statement line item based on the leased asset’s function. Amortization expense of a finance lease ROU asset is recognized on a straight-line basis over the lesser of the useful life of the leased asset or the lease term. However, if the lease transfers ownership of the finance lease ROU asset to us at the end of the lease term, the finance lease ROU asset is amortized over the useful life of the leased asset. Amortization expense is reflected in “depreciation and amortization expense.” Interest expense is incurred based on the carrying value of the lease liability and is reflected in “interest and debt expense, net of capitalized interest.” Impairment of Assets Long-lived assets are tested for recoverability whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. A long-lived asset is not recoverable if its carrying amount exceeds the sum of the undiscounted cash flows expected to result from its use and eventual disposition. If a long-lived asset is not recoverable, an impairment loss is recognized for the amount by which the carrying amount of the long-lived asset exceeds its fair value, with fair value determined based on discounted estimated net cash flows or other appropriate methods. We evaluate our equity method investments for impairment when there is evidence that we may not be able to recover the carrying amount of our investments or the investee is unable to sustain an earnings capacity that justifies the carrying amount. A loss in the value of an investment that is other than a temporary decline is recognized currently in income based on the difference between the estimated current fair value of the investment and its carrying amount. Asset Retirement Obligations We record a liability, which is referred to as an asset retirement obligation, at fair value for the estimated cost to retire a tangible long-lived asset at the time we incur that liability, which is generally when the asset is purchased, constructed, or leased. We record the liability when we have a legal obligation to incur costs to retire the asset and when a reasonable estimate of the fair value of the liability can be made. If a reasonable estimate cannot be made at the time the liability is incurred, we record the liability when sufficient information is available to estimate the liability’s fair value. We have obligations with respect to certain of our assets related to our refining and ethanol segments to clean and/or dispose of various component parts of the assets at the time they are retired. However, these component parts can be used for extended and indeterminate periods of time as long as they are properly maintained and/or upgraded. It is our practice and current intent to maintain all our assets and continue making improvements to those assets based on technological advances. As a result, we believe that our assets related to our refining and ethanol segments have indeterminate lives for purposes of estimating asset retirement obligations because dates or ranges of dates upon which we would retire such assets cannot reasonably be estimated at this time. We will recognize a liability at such time when sufficient information exists to estimate a date or range of potential settlement dates that is needed to employ a present value technique to estimate fair value. Environmental Matters Liabilities for future remediation costs are recorded when environmental assessments and/or remedial efforts are probable and the costs can be reasonably estimated. Other than for assessments, the timing and magnitude of these accruals generally are based on the completion of investigations or other studies or a commitment to a formal plan of action. Amounts recorded for environmental liabilities have not been reduced by possible recoveries from third parties and have not been measured on a discounted basis. Legal Contingencies We are subject to legal proceedings, claims, and liabilities that arise in the ordinary course of business. We accrue losses associated with legal claims when such losses are probable and reasonably estimable. If we determine that a loss is probable and cannot estimate a specific amount for that loss but can estimate a range of loss, the best estimate within the range is accrued. If no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. Estimates are adjusted as additional information becomes available or circumstances change. Legal defense costs associated with loss contingencies are expensed in the period incurred. Foreign Currency Translation Generally, our international subsidiaries use their local currency as their functional currency. Balance sheet amounts are translated into U.S. dollars using exchange rates in effect as of the balance sheet date. Income statement amounts are translated into U.S. dollars using the exchange rates in effect at the time the underlying transactions occur. Foreign currency translation adjustments are recorded as a component of accumulated other comprehensive loss. Revenue Recognition Our revenues are primarily generated from contracts with customers. We generate revenue from contracts with customers from the sale of products by our refining, ethanol, and renewable diesel segments. Revenues are recognized when we satisfy our performance obligation to transfer products to our customers, which typically occurs at a point in time upon shipment or delivery of the products, and for an amount that reflects the transaction price that is allocated to the performance obligation. The customer is able to direct the use of, and obtain substantially all of the benefits from, the products at the point of shipment or delivery. As a result, we consider control to have transferred upon shipment or delivery because we have a present right to payment at that time, the customer has legal title to the asset, we have transferred physical possession of the asset, and the customer has significant risks and rewards of ownership of the asset. Our contracts with customers state the final terms of the sale, including the description, quantity, and price for goods sold. Payment is typically due in full within two to ten days of delivery. In the normal course of business, we generally do not accept product returns. The transaction price is the consideration that we expect to be entitled to in exchange for our products. The transaction price for substantially all of our contracts is generally based on commodity market pricing (i.e., variable consideration). As such, this market pricing may be constrained (i.e., not estimable) at the inception of the contract but will be recognized based on the applicable market pricing, which will be known upon transfer of the goods to the customer. Some of our contracts also contain variable consideration in the form of sales incentives to our customers, such as discounts and rebates. For contracts that include variable consideration, we estimate the factors that determine the variable consideration in order to establish the transaction price. We have elected to exclude from the measurement of the transaction price all taxes assessed by governmental authorities that are both imposed on and concurrent with a specific revenue-producing transaction and collected by us from a customer (e.g., sales tax, use tax, value-added tax, etc.). We continue to include in the transaction price excise taxes that are imposed on certain inventories in our international operations. The amount of such taxes is provided in supplemental information in a footnote on the statements of income. There are instances where we provide shipping services in relation to the goods sold to our customer. Shipping and handling costs that occur before the customer obtains control of the goods are deemed to be fulfillment activities and are included in cost of materials and other. We have elected to account for shipping and handling activities that occur after the customer has obtained control of a good as fulfillment activities rather than as a promised service and we have included these activities in cost of materials and other. We enter into certain purchase and sale arrangements with the same counterparty that are deemed to be made in contemplation of one another. We combine these transactions and present the net effect in cost of materials and other. We also enter into refined petroleum product exchange transactions to fulfill sales contracts with our customers by accessing refined petroleum products in markets where we do not operate our own refineries. These refined petroleum product exchanges are accounted for as exchanges of nonmonetary assets, and no revenues are recorded on these transactions. Cost Classifications “Cost of materials and other” primarily includes the cost of materials that are a component of our products sold. These costs include (i) the direct cost of materials (such as crude oil and other refinery feedstocks, refined petroleum products and blendstocks, and ethanol feedstocks and products) that are a component of our products sold; (ii) costs related to the delivery (such as shipping and handling costs) of products sold; (iii) costs related to our environmental credit obligations to comply with various governmental and regulatory programs (such as the cost of Renewable Identification Numbers (RINs) as required by the U.S. Environmental Protection Agency’s (EPA) Renewable Fuel Standard, emission credits under various cap-and-trade systems, as defined in Note 19 ); (iv) the blender’s tax credit recognized on qualified biodiesel mixtures; (v) gains and losses on our commodity derivative instruments; and (vi) certain excise taxes. “Operating expenses (excluding depreciation and amortization expense)” include costs to operate our refineries, ethanol plants, and logistics assets, except for depreciation and amortization expense. These costs primarily include employee-related expenses, energy and utility costs, catalysts and chemical costs, and repair and maintenance expenses. “Depreciation and amortization expense” associated with our operations is separately presented in our statement of income as a component of cost of sales and general and administrative expenses and is disclosed by reportable segment in Note 17 . “Other operating expenses” include costs, if any, incurred by our reportable segments that are not associated with our cost of sales. Environmental Compliance Program Costs We purchase credits in the open market to meet our obligations under various environmental compliance programs. We purchase biofuel credits (primarily RINs in the U.S.) to comply with government regulations that require us to blend a certain percentage of biofuels into the products we produce. To the degree that we are unable to blend biofuels at the required percentage, we must purchase biofuel credits to meet our obligation. We purchase greenhouse gas (GHG) emission credits to comply with government regulations concerning various GHG emission programs, including cap-and-trade systems. These programs are described in Note 20 under “Environmental Compliance Program Price Risk.” The costs of purchased biofuel credits and GHG emission credits are charged to cost of materials and other as such credits are needed to satisfy our obligation. To the extent we have not purchased enough credits to satisfy our obligation as of the balance sheet date, we charge cost of materials and other for such deficiency based on the market price of the credits as of the balance sheet date, and we record a liability for our obligation to purchase those credits. See Note 19 for disclosure of our fair value liability. Stock-Based Compensation Compensation expense for our share-based compensation plans is based on the fair value of the awards granted and is recognized in income on a straight-line basis over the shorter of (i) the requisite service period of each award or (ii) the period from the grant date to the date retirement eligibility is achieved if that date is expected to occur during the vesting period established in the award. Income Taxes Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred amounts are measured using enacted tax rates expected to apply to taxable income in the year those temporary differences are expected to be recovered or settled. Deferred tax assets are reduced by unrecognized tax benefits, if such items may be available to offset the unrecognized tax benefit. Stranded income tax effects are released from accumulated other comprehensive loss to retained earnings on an individual item basis as those items are reclassified into income. We have elected to classify any interest expense and penalties related to the underpayment of income taxes in income tax expense. We have elected to treat the global intangible low-taxed income (GILTI) tax as a period expense. Earnings per Common Share Earnings per common share is computed by dividing net income attributable to Valero stockholders by the weighted-average number of common shares outstanding for the year. Participating securities are included in the computation of basic earnings per share using the two-class method. Earnings per common share – assuming dilution is computed by dividing net income attributable to Valero stockholders by the weighted-average number of common shares outstanding for the year increased by the effect of dilutive securities. Potentially dilutive securities are excluded from the computation of earnings per common share – assuming dilution when the effect of including such shares would be antidilutive. Financial Instruments Our financial instruments include cash and cash equivalents, receivables, payables, debt, operating and finance lease obligations, commodity derivative contracts, and foreign currency derivative contracts. The estimated fair values of these financial instruments approximate their carrying amounts, except for certain debt as discussed in Note 19 . Derivatives and Hedging All derivative instruments, not designated as normal purchases or sales, are recorded in the balance sheet as either assets or liabilities measured at their fair values with changes in fair value recognized currently in income. To manage commodity price risk, we primarily use cash flow hedges and economic hedges, and we also use fair value hedges from time to time. The cash flow effects of all of our derivative instruments are reflected in operating activities in the consolidated statements of cash flows. Accounting Pronouncements Adopted During 2019 Topic 842 We adopted the provisions of Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 842, “Leases,” (Topic 842) on January 1, 2019. Topic 842 increases the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Topic 842 supersedes previous lease accounting requirements under FASB ASC Topic 840, “Leases,” (Topic 840). We adopted Topic 842 using the optional transition method that permits us to record a cumulative-effect adjustment and apply the new disclosure requirements beginning in 2019 and continue to present comparative period information as required under Topic 840; however, we did not have a cumulative-effect adjustment to the opening balance of retained earnings at the date of adoption. In addition, we elected the transition practical expedient package that permits us to not reassess our prior conclusions about lease identification, lease classification, and initial direct costs under the new standard, as well as the practical expedient that permits us to not assess existing land easements under the new standard. See “Leases” above for a discussion of our revised accounting policy and also see Note 5 for information on our leases. In preparation for the adoption of Topic 842, we enhanced our contracting and lease evaluation systems and related processes, and we developed a new lease accounting system to capture our leases and support the required disclosures. We integrated our lease accounting system with our general ledger and modified our related procurement and payment processes. Adoption of this standard resulted in (i) the recognition of ROU assets and lease liabilities for our operating leases of $1.3 billion , (ii) the derecognition of existing assets under construction of $539 million related to a build-to-suit lease arrangement with respect to the MVP Terminal (see Note 10 under “ Contractual Capital Commitments— MVP Terminal”), and (iii) the presentation of new disclosures about our leasing activities beginning in the first quarter of 2019. Adoption of this standard did not impact our results of operations or liquidity, and our accounting for finance leases is substantially unchanged. Other In addition to the adoption of Topic 842 discussed above, we adopted the following Accounting Standards Update (ASU) on January 1, 2019 . Our adoption of this ASU did not affect our financial statements or related disclosures. ASU Basis of Adoption 2017-12 Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities Cumulative effect Accounting Pronouncements Adopted on January 1, 2020 The following ASUs were adopted on January 1, 2020, and our adoption did not have a material impact on our financial statements or related disclosures. ASU Basis of Adoption 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (including codification improvements in ASUs 2018-19 and 2019-11 and ASU 2020-02— Financial Instruments—Credit Losses (Topic 326): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119) Cumulative effect 2018-15 Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract Prospectively 2019-12 Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes Prospectively |
Merger and Acquisitions
Merger and Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
MERGER AND ACQUISITIONS | 2. MERGER AND ACQUISITIONS Merger with VLP On January 10, 2019, we completed our acquisition of all of the outstanding publicly held common units of VLP pursuant to a definitive Agreement and Plan of Merger (Merger Agreement, and together with the transactions contemplated thereby, the Merger Transaction) with VLP. Upon completion of the Merger Transaction, each outstanding publicly held common unit was converted into the right to receive $42.25 per common unit in cash without any interest thereon, and all such publicly traded common units were automatically canceled and ceased to exist. Upon completion of the Merger Transaction, we paid aggregate merger consideration of $950 million , which was funded with available cash on hand. Prior to the completion of the Merger Transaction, we consolidated the financial statements of VLP (see Note 12 ) and reflected noncontrolling interests on our balance sheet for the portion of VLP’s partners’ capital held by VLP’s public common unitholders. Upon completion of the Merger Transaction, VLP became our indirect wholly owned subsidiary and, as a result, we no longer reflect noncontrolling interests on our balance sheet with respect to VLP. In addition, we no longer attribute a portion of VLP’s net income to noncontrolling interests. Because we had a controlling financial interest in VLP before the Merger Transaction and retained our controlling financial interest in VLP after the Merger Transaction, the change in our ownership interest in VLP as a result of the merger was accounted for as an equity transaction. Accordingly, we did not recognize a gain or loss on the Merger Transaction. Acquisition of Ethanol Plants On November 15, 2018 , we acquired three ethanol plants from two subsidiaries of Green Plains Inc. for total cash consideration of $320 million including working capital of $20 million . The ethanol plants are located in Bluffton, Indiana; Lakota, Iowa; and Riga, Michigan with a combined ethanol production capacity of 280 million gallons per year. This acquisition was accounted for as an asset acquisition. Peru Acquisition On May 14, 2018 , we acquired 100 percent of the issued and outstanding equity interests in Pure Biofuels del Peru S.A.C. (now known as Valero Peru S.A.C.) (Valero Peru) from Pegasus Capital Advisors L.P. and various minority equity holders. Valero Peru markets refined petroleum products through its logistics assets in Peru. Valero Peru owns a terminal at the Port of Callao, near Lima, with approximately 1 million barrels of storage capacity for refined petroleum and renewable products. Through one of its subsidiaries, Valero Peru also owns a 180,000 -barrel storage terminal in Paita, in northern Peru, which is scheduled to commence operations in the second quarter of 2020, pending regulatory approvals. This acquisition, which is referred to as the Peru Acquisition, was consistent with our general business strategy and broadens the geographic diversity of our refining segment. This acquisition was accounted for as a business combination. The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date, based on an independent appraisal that was completed in the fourth quarter of 2018 (in millions). We paid $468 million from available cash on hand, of which $132 million was for working capital. During the third and fourth quarters of 2018, we recognized immaterial adjustments to the preliminary amounts recorded for the Peru Acquisition with a corresponding adjustment to goodwill due to the completion of the independent appraisal. These adjustments did not have a material effect on our results of operations for the year ended December 31, 2018. Current assets, net of cash acquired $ 158 Property, plant, and equipment 102 Deferred charges and other assets 466 Current liabilities, excluding current portion of debt (26 ) Debt assumed, including current portion (137 ) Deferred income tax liabilities (62 ) Other long-term liabilities (27 ) Noncontrolling interest (6 ) Total consideration, net of cash acquired $ 468 Deferred charges and other assets primarily include identifiable intangible assets of $200 million and goodwill of $260 million . Identifiable intangible assets, which consist of customer contracts and relationships, are amortized on a straight-line basis over ten years . Goodwill is calculated as the excess of the consideration transferred over the estimated fair values of the underlying tangible and identifiable intangible assets acquired and liabilities assumed. Goodwill represents the future economic benefits expected to be recognized from our expansion into the Latin American refined petroleum products markets arising from other assets acquired that were not individually identified and separately recognized. We determined that the entire balance of goodwill is related to the refining segment. None of the goodwill is deductible for tax purposes. Our statements of income include the results of operations of Valero Peru since the date of acquisition, and such results are reflected in the refining segment. Results of operations since the date of acquisition, supplemental pro forma financial information, and acquisition-related costs have not been presented for the Peru Acquisition as such information is not material to our results of operations. |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
RECEIVABLES | 3. RECEIVABLES Receivables consisted of the following (in millions): December 31, 2019 2018 Receivables from contracts with customers $ 5,610 $ 4,673 Receivables from certain purchase and sale arrangements 2,484 2,311 Commodity derivative and foreign currency contract receivables 116 229 Other receivables 730 166 Total receivables 8,940 7,379 Allowance for doubtful accounts (36 ) (34 ) Receivables, net $ 8,904 $ 7,345 There were no significant changes in our allowance for doubtful accounts during the years ended December 31, 2019 , 2018 , and 2017 . |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 4. INVENTORIES Inventories consisted of the following (in millions): December 31, 2019 2018 Refinery feedstocks $ 2,399 $ 2,265 Refined petroleum products and blendstocks 4,034 3,653 Ethanol feedstocks and products 260 298 Renewable diesel feedstocks and products 46 52 Materials and supplies 274 264 Inventories $ 7,013 $ 6,532 As of December 31, 2019 and 2018 , the replacement cost (market value) of LIFO inventories exceeded their LIFO carrying amounts by $2.5 billion and $1.5 billion , respectively. Our non-LIFO inventories accounted for $1.4 billion and $1.1 billion of our total inventories as of December 31, 2019 and 2018 , respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
LEASES | 5. LEASES General We have entered into long-term leasing arrangements for the right to use various classes of underlying assets as follows: • Pipelines, Terminals, and Tanks includes facilities and equipment used in the storage, transportation, production, and sale of refinery feedstock, refined petroleum product, and corn inventories; • Marine Transportation includes time charters for ocean-going tankers and coastal vessels; • Rail Transportation includes railcars and related storage facilities; • Feedstock Processing Equipment includes machinery, equipment, and various facilities used in our refining, ethanol, and renewable diesel operations; • Energy and Gases includes facilities and equipment related to industrial gases and power used in our operations; • Real Estate includes land and rights-of-way associated with our refineries and pipelines, as well as office facilities; and • Other includes equipment primarily used at our corporate offices, such as printers and copiers. In addition to fixed lease payments, some arrangements contain provisions for variable lease payments. Certain leases for pipelines, terminals, and tanks provide for variable lease payments based on, among other things, throughput volumes in excess of a base amount. Certain marine transportation leases contain provisions for payments that are contingent on usage. Additionally, if the rental increases are not scheduled in the lease, such as an increase based on subsequent changes in the index or rate, those rents are considered variable lease payments. In all instances, variable lease payments are recognized in the period in which the obligation for those payments is incurred. Lease Costs and Other Supplemental Information In accordance with Topic 842, our total lease cost comprises costs that are included in our income statement, as well as costs capitalized as part of an item of property, plant, and equipment or inventory. Total lease cost by class of underlying asset was as follows (in millions): Year Ended December 31, 2019 Pipelines, Terminals, and Tanks Transportation Feedstock Processing Equipment Energy and Gases Real Estate Other Total Marine Rail Finance lease cost: Amortization of ROU assets $ 44 $ — $ — $ 7 $ 3 $ — $ — $ 54 Interest on lease liabilities 47 — — 1 2 — — 50 Operating lease cost 182 145 52 20 9 27 4 439 Variable lease cost 66 35 — 1 — 1 — 103 Short-term lease cost 9 53 — 29 — — — 91 Sublease income — (27 ) — — — (3 ) — (30 ) Total lease cost $ 348 $ 206 $ 52 $ 58 $ 14 $ 25 $ 4 $ 707 In accordance with Topic 840, “rental expense, net of sublease rental income” was as follows (in millions): Year Ended December 31, 2018 2017 Minimum rental expense $ 515 $ 691 Contingent rental expense 19 21 Total rental expense 534 712 Less: Sublease rental income 31 54 Rental expense, net of sublease rental income $ 503 $ 658 The following table presents additional information related to our operating and finance leases (in millions, except for lease terms and discount rates): December 31, 2019 Operating Leases Finance Leases Supplemental balance sheet information ROU assets, net reflected in the following balance sheet line items: Property, plant, and equipment, net $ — $ 790 Deferred charges and other assets, net 1,329 — Total ROU assets, net $ 1,329 $ 790 Current lease liabilities reflected in the following balance sheet line items: Current portion of debt and finance lease obligations $ — $ 41 Accrued expenses 331 — Noncurrent lease liabilities reflected in the following balance sheet line items: Debt and finance lease obligations, less current portion — 750 Other long-term liabilities 959 — Total lease liabilities $ 1,290 $ 791 Other supplemental information Weighted-average remaining lease term 7.7 years 19.7 years Weighted-average discount rate 4.9 % 5.2 % Supplemental cash flow information related to our operating and finance leases is presented in Note 18 . Maturity Analysis The remaining minimum lease payments due under our long-term leases were as follows (in millions): December 31, 2019 December 31, 2018 Operating Leases Finance Leases Operating Leases Capital Leases 2019 n/a n/a $ 359 $ 69 2020 $ 376 $ 88 245 65 2021 250 86 178 62 2022 194 87 146 64 2023 160 91 123 65 2024 125 82 n/a n/a Thereafter 498 1,011 514 957 Total undiscounted lease payments 1,603 1,445 $ 1,565 1,282 Less: Amount associated with discounting 313 654 676 Total lease liabilities $ 1,290 $ 791 $ 606 Future Lease Commencement As described and defined in Note 10 , we have a terminaling agreement with MVP to utilize certain assets at the MVP Terminal upon completion of construction, which is expected to occur during the first quarter of 2020 . We expect to recognize a finance lease ROU asset and related liability of approximately $1.5 billion in 2020 in connection with this agreement. |
LEASES | 5. LEASES General We have entered into long-term leasing arrangements for the right to use various classes of underlying assets as follows: • Pipelines, Terminals, and Tanks includes facilities and equipment used in the storage, transportation, production, and sale of refinery feedstock, refined petroleum product, and corn inventories; • Marine Transportation includes time charters for ocean-going tankers and coastal vessels; • Rail Transportation includes railcars and related storage facilities; • Feedstock Processing Equipment includes machinery, equipment, and various facilities used in our refining, ethanol, and renewable diesel operations; • Energy and Gases includes facilities and equipment related to industrial gases and power used in our operations; • Real Estate includes land and rights-of-way associated with our refineries and pipelines, as well as office facilities; and • Other includes equipment primarily used at our corporate offices, such as printers and copiers. In addition to fixed lease payments, some arrangements contain provisions for variable lease payments. Certain leases for pipelines, terminals, and tanks provide for variable lease payments based on, among other things, throughput volumes in excess of a base amount. Certain marine transportation leases contain provisions for payments that are contingent on usage. Additionally, if the rental increases are not scheduled in the lease, such as an increase based on subsequent changes in the index or rate, those rents are considered variable lease payments. In all instances, variable lease payments are recognized in the period in which the obligation for those payments is incurred. Lease Costs and Other Supplemental Information In accordance with Topic 842, our total lease cost comprises costs that are included in our income statement, as well as costs capitalized as part of an item of property, plant, and equipment or inventory. Total lease cost by class of underlying asset was as follows (in millions): Year Ended December 31, 2019 Pipelines, Terminals, and Tanks Transportation Feedstock Processing Equipment Energy and Gases Real Estate Other Total Marine Rail Finance lease cost: Amortization of ROU assets $ 44 $ — $ — $ 7 $ 3 $ — $ — $ 54 Interest on lease liabilities 47 — — 1 2 — — 50 Operating lease cost 182 145 52 20 9 27 4 439 Variable lease cost 66 35 — 1 — 1 — 103 Short-term lease cost 9 53 — 29 — — — 91 Sublease income — (27 ) — — — (3 ) — (30 ) Total lease cost $ 348 $ 206 $ 52 $ 58 $ 14 $ 25 $ 4 $ 707 In accordance with Topic 840, “rental expense, net of sublease rental income” was as follows (in millions): Year Ended December 31, 2018 2017 Minimum rental expense $ 515 $ 691 Contingent rental expense 19 21 Total rental expense 534 712 Less: Sublease rental income 31 54 Rental expense, net of sublease rental income $ 503 $ 658 The following table presents additional information related to our operating and finance leases (in millions, except for lease terms and discount rates): December 31, 2019 Operating Leases Finance Leases Supplemental balance sheet information ROU assets, net reflected in the following balance sheet line items: Property, plant, and equipment, net $ — $ 790 Deferred charges and other assets, net 1,329 — Total ROU assets, net $ 1,329 $ 790 Current lease liabilities reflected in the following balance sheet line items: Current portion of debt and finance lease obligations $ — $ 41 Accrued expenses 331 — Noncurrent lease liabilities reflected in the following balance sheet line items: Debt and finance lease obligations, less current portion — 750 Other long-term liabilities 959 — Total lease liabilities $ 1,290 $ 791 Other supplemental information Weighted-average remaining lease term 7.7 years 19.7 years Weighted-average discount rate 4.9 % 5.2 % Supplemental cash flow information related to our operating and finance leases is presented in Note 18 . Maturity Analysis The remaining minimum lease payments due under our long-term leases were as follows (in millions): December 31, 2019 December 31, 2018 Operating Leases Finance Leases Operating Leases Capital Leases 2019 n/a n/a $ 359 $ 69 2020 $ 376 $ 88 245 65 2021 250 86 178 62 2022 194 87 146 64 2023 160 91 123 65 2024 125 82 n/a n/a Thereafter 498 1,011 514 957 Total undiscounted lease payments 1,603 1,445 $ 1,565 1,282 Less: Amount associated with discounting 313 654 676 Total lease liabilities $ 1,290 $ 791 $ 606 Future Lease Commencement As described and defined in Note 10 , we have a terminaling agreement with MVP to utilize certain assets at the MVP Terminal upon completion of construction, which is expected to occur during the first quarter of 2020 . We expect to recognize a finance lease ROU asset and related liability of approximately $1.5 billion in 2020 in connection with this agreement. |
Property, Plant, and Equipment
Property, Plant, and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT, AND EQUIPMENT | 6. PROPERTY, PLANT, AND EQUIPMENT Major classes of property, plant, and equipment, including assets held under finance leases, consisted of the following (in millions): December 31, 2019 2018 Land $ 476 $ 416 Crude oil processing facilities 32,047 30,721 Transportation and terminaling facilities 5,179 4,935 Grain processing equipment 1,201 1,212 Administrative buildings 1,015 953 Finance lease ROU assets (see Note 5) 944 711 Other 1,701 1,565 Construction in progress 1,731 1,960 Property, plant, and equipment, at cost 44,294 42,473 Accumulated depreciation (15,030 ) (13,625 ) Property, plant, and equipment, net $ 29,264 $ 28,848 Capital lease assets, as determined in accordance with Topic 840, are presented as “Finance lease ROU assets” as of December 31, 2018 . Effective January 1, 2019, in connection with our adoption of Topic 842, these assets are considered finance lease ROU assets and are presented as “Finance lease ROU assets.” As further described in Note 5 , our finance lease ROU assets arise from leasing arrangements for the right to use various classes of underlying assets including (i) pipelines, terminals, and tanks, (ii) marine and rail transportation, and (iii) feedstock processing equipment. Accumulated amortization on the assets presented as “Finance lease ROU assets” was $155 million and $106 million as of December 31, 2019 and 2018 , respectively. Depreciation expense for the years ended December 31, 2019 , 2018 , and 2017 was $1.5 billion , $1.4 billion , and $1.3 billion , respectively. |
Deferred Charges and Other Asse
Deferred Charges and Other Assets | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
DEFERRED CHARGES AND OTHER ASSETS | 7. DEFERRED CHARGES AND OTHER ASSETS “Deferred charges and other assets, net” consisted of the following (in millions): December 31, 2019 2018 Deferred turnaround and catalyst costs, net $ 1,778 $ 1,749 Operating lease ROU assets, net (see Note 5) 1,329 — Investments in unconsolidated joint ventures 942 542 Income taxes receivable 525 343 Intangible assets, net 283 307 Goodwill 260 260 Other 514 431 Deferred charges and other assets, net $ 5,631 $ 3,632 Amortization expense for deferred turnaround and catalyst costs and intangible assets was $759 million , $668 million , and $650 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. |
Accrued Expenses and Other Long
Accrued Expenses and Other Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
ACCRUED EXPENSES AND OTHER LONG-TERM LIABILITIES | 8. ACCRUED EXPENSES AND OTHER LONG-TERM LIABILITIES Accrued expenses and other long-term liabilities consisted of the following (in millions): Accrued Expenses Other Long-Term Liabilities December 31, December 31, 2019 2018 2019 2018 Operating lease liabilities (see Note 5) $ 331 $ — $ 959 $ — Liability for unrecognized tax benefits (see Note 15) — — 954 721 Defined benefit plan liabilities (see Note 13) 37 43 834 654 Repatriation tax liability (see Note 15) (a) — — 508 603 Environmental liabilities 27 29 319 327 Wage and other employee-related liabilities 292 302 121 109 Accrued interest expense 83 93 — — Contract liabilities from contracts with customers (see Note 17) 55 31 — — Environmental credit obligations (see Note 19) 31 34 — — Other accrued liabilities 93 98 192 453 Accrued expenses and other long-term liabilities $ 949 $ 630 $ 3,887 $ 2,867 __________________________ (a) The current portion of repatriation tax liability is included in income taxes payable. As of December 31, 2019 , the current portion of repatriation tax liability was $54 million . There was no current portion of repatriation tax liability as of December 31, 2018 . |
Debt and Finance Lease Obligati
Debt and Finance Lease Obligations | 12 Months Ended |
Dec. 31, 2019 | |
Debt and Lease Obligation [Abstract] | |
DEBT AND FINANCE LEASE OBLIGATIONS | 9. DEBT AND FINANCE LEASE OBLIGATIONS Debt, at stated values, and finance lease obligations consisted of the following (in millions): Final Maturity December 31, 2019 2018 Credit facilities: Valero Revolver 2024 $ — $ — IEnova Revolver 2028 348 109 Canadian Revolver 2020 — — Accounts receivable sales facility 2020 100 100 Public debt: Valero Senior Notes 6.625% 2037 1,500 1,500 3.4% 2026 1,250 1,250 4.0% 2029 1,000 — 6.125% 2020 — 850 4.35% 2028 750 750 7.5% 2032 750 750 4.9% 2045 650 650 3.65% 2025 600 600 10.5% 2039 250 250 8.75% 2030 200 200 7.45% 2097 100 100 6.75% 2037 24 24 VLP Senior Notes 4.375% 2026 500 500 4.5% 2028 500 500 Gulf Opportunity Zone Revenue Bonds, Series 2010, 4.0% 2040 300 300 Debenture, 7.65% 2026 100 100 Other debt Various 47 50 Net unamortized debt issuance costs and other (88 ) (80 ) Total debt 8,881 8,503 Finance lease obligations (see Note 5) 791 606 Total debt and finance lease obligations 9,672 9,109 Less: Current portion 494 238 Debt and finance lease obligations, less current portion $ 9,178 $ 8,871 Credit Facilities Valero Revolver In March 2019, we amended our revolving credit facility (the Valero Revolver) to increase the borrowing capacity from $3 billion to $4 billion and to extend the maturity date from November 2020 to March 2024 . The Valero Revolver also provides for the issuance of letters of credit of up to $2.4 billion . Outstanding borrowings under the Valero Revolver bear interest, at our option, at either (i) the adjusted LIBO rate (as defined in the Valero Revolver) for the applicable interest period in effect from time to time plus the applicable margin or (ii) the alternate base rate (as defined in the Valero Revolver) plus the applicable margin. The Valero Revolver also requires payments for customary fees, including facility fees, letter of credit participation fees, and administrative agent fees. The interest rate and facility fees under the Valero Revolver are subject to adjustment based upon the credit ratings assigned to our senior unsecured debt. We had no borrowings or repayments under the Valero Revolver during the years ended December 31, 2019 , 2018 , and 2017 . VLP Revolver As of December 31, 2018 , VLP had a $750 million senior unsecured revolving credit facility (the VLP Revolver) with a group of lenders that was scheduled to mature in November 2020 . However, on January 10, 2019 , in connection with the completion of the Merger Transaction as described in Note 2 , the VLP Revolver was terminated. During the year ended December 31, 2018 , VLP repaid the outstanding balance of $410 million on the VLP Revolver using proceeds from its public offering of $500 million 4.5 percent Senior Notes as described in “Public Debt” below. During the year ended December 31, 2017 , VLP borrowed $380 million under the revolver and made no repayments. IEnova Revolver In February 2018, Central Mexico Terminals (as described in Note 12 ) entered into a combined $340 million unsecured revolving credit facility (IEnova Revolver) with IEnova (defined in Note 12 ) that matures in February 2028 . In November 2019, the IEnova Revolver was increased to $491 million . IEnova may terminate this revolver at any time and demand repayment of all outstanding amounts; therefore, all outstanding borrowings are reflected in current portion of debt. The IEnova Revolver is available only to the operations of Central Mexico Terminals, and the creditors of Central Mexico Terminals do not have recourse against us. Outstanding borrowings under this revolver bear interest at the three-month LIBO rate for the applicable interest period in effect from time to time plus the applicable margin. The interest rate under this revolver is subject to adjustment, with agreement by both parties, based upon changes in market conditions. As of December 31, 2019 and 2018 , the variable rate was 5.749 percent and 6.046 percent, respectively. During the year ended December 31, 2019 and 2018 , Central Mexico Terminals borrowed $239 million and $109 million , respectively, and had no repayments under this revolver. Canadian Revolver In November 2019, one of our Canadian subsidiaries amended its committed revolving credit facility (the Canadian Revolver) of C$150 million , under which it may borrow and obtain letters of credit, to extend the maturity date from November 2019 to November 2020 . We had no borrowings or repayments under this revolver during the years ended December 31, 2019 , 2018 , and 2017 . Accounts Receivable Sales Facility We have an accounts receivable sales facility with a group of third-party entities and financial institutions to sell up to $1.3 billion of eligible trade receivables on a revolving basis. In July 2019 , we amended our agreement to extend the maturity date to July 2020 . Under this program, one of our marketing subsidiaries (Valero Marketing) sells eligible receivables, without recourse, to another of our subsidiaries (Valero Capital), whereupon the receivables are no longer owned by Valero Marketing. Valero Capital, in turn, sells an undivided percentage ownership interest in the eligible receivables, without recourse, to the third-party entities and financial institutions. To the extent that Valero Capital retains an ownership interest in the receivables it has purchased from Valero Marketing, such interest is included in our financial statements solely as a result of the consolidation of the financial statements of Valero Capital with those of Valero Energy Corporation; the receivables are not available to satisfy the claims of the creditors of Valero Marketing or Valero Energy Corporation. As of December 31, 2019 and 2018 , $2.2 billion and $1.8 billion , respectively, of our accounts receivable composed the designated pool of accounts receivable included in the program. All amounts outstanding under the accounts receivable sales facility are reflected as debt on our balance sheets and proceeds and repayments are reflected as cash flows from financing activities on the statements of cash flows. As of December 31, 2019 and 2018 , the variable interest rate on the accounts receivable sales facility was 2.3866 percent and 3.0618 percent, respectively. During the year ended December 31, 2019 , we sold and repaid $900 million of eligible receivables under the accounts receivable sales facility. During the years ended December 31, 2018 and 2017 , we had no proceeds from or repayments under the accounts receivable sales facility. Summary of Credit Facilities We had outstanding borrowings, letters of credit issued, and availability under our credit facilities as follows (amounts in millions and currency in U.S. dollars, except as noted): December 31, 2019 Facility Amount Maturity Date Outstanding Borrowings Letters of Credit Issued (a) Availability Committed facilities: Valero Revolver $ 4,000 March 2024 $ — $ 34 $ 3,966 Canadian Revolver C$ 150 November 2020 C$ — C$ 5 C$ 145 Accounts receivable sales facility $ 1,300 July 2020 $ 100 n/a $ 1,200 Letter of credit facility (b) $ 50 November 2020 n/a $ — $ 50 Committed facility of VIE (c): IEnova Revolver $ 491 February 2028 $ 348 n/a $ 143 Uncommitted facilities: Letter of credit facilities n/a n/a n/a $ 121 n/a __________________________ (a) Letters of credit issued as of December 31, 2019 expire at various times in 2020 through 2021 . (b) The letter of credit facility was amended to reduce the facility from $100 million to $50 million and to extend the maturity date from November 2019 to November 2020. (c) Creditors of our VIE do not have recourse against us. We are charged letter of credit issuance fees under our various uncommitted short-term bank credit facilities. These uncommitted credit facilities have no commitment fees or compensating balance requirements. Public Debt During the year ended December 31, 2019 , the following activity occurred: • We issued $1.0 billion of 4.00 percent Senior Notes due April 1, 2029 ( 4.00 percent Senior Notes). Proceeds from this debt issuance totaled $992 million before deducting the underwriting discount and other debt issuance costs. The proceeds were used to redeem our 6.125 percent Senior Notes due February 1, 2020 ( 6.125 percent Senior Notes) for $871 million , or 102.48 percent of stated value, which includes an early redemption fee of $21 million that is reflected in “ other income, net ” in our statement of income for the year ended December 31, 2019 . • In connection with the completion of the Merger Transaction as described in Note 2 , Valero entered into a guarantee agreement to fully and unconditionally guarantee the prompt payment, when due, of any amount owed to the holders of VLP’s 4.375 percent Senior Notes due December 15, 2026 and 4.5 percent Senior Notes due March 15, 2028 . See Note 21 for condensed consolidating financial statements. During the year ended December 31, 2018 , the following activity occurred: • We issued $750 million of 4.35 percent Senior Notes due June 1, 2028 . Proceeds from this debt issuance totaled $749 million before deducting the underwriting discount and other debt issuance costs. The proceeds were used to redeem our 9.375 percent Senior Notes due March 15, 2019 for $787 million , or 104.9 percent of stated value, which includes an early redemption fee of $37 million that is reflected in “ other income, net ” in our statement of income for the year ended December 31, 2018 . • VLP issued $500 million of 4.5 percent Senior Notes due March 15, 2028 . Proceeds from this debt issuance totaled $498 million before deducting the underwriting discount and other debt issuance costs. The proceeds were available only to the operations of VLP and were used to repay the outstanding balance of $410 million on the VLP Revolver and $85 million on its notes payable to us, which is eliminated in consolidation. During the year ended December 31, 2017 , there was no issuance or redemption activity related to our public debt. Other Debt During the year ended December 31, 2018 , we retired $137 million of debt assumed in connection with the Peru Acquisition with available cash on hand. Other Disclosures “Interest and debt expense, net of capitalized interest” is comprised as follows (in millions): Year Ended December 31, 2019 2018 2017 Interest and debt expense $ 544 $ 557 $ 539 Less: Capitalized interest 90 87 71 Interest and debt expense, net of capitalized interest $ 454 $ 470 $ 468 Our credit facilities and other debt arrangements contain various customary restrictive covenants, including cross-default and cross-acceleration clauses. Principal maturities for our debt obligations as of December 31, 2019 were as follows (in millions): 2020 (a) $ 453 2021 17 2022 6 2023 19 2024 — Thereafter 8,474 Net unamortized debt issuance costs and other (88 ) Total debt $ 8,881 __________________________ (a) As of December 31, 2019 , our debt obligations due in 2020 include $348 million associated with borrowings under the IEnova Revolver. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 10. COMMITMENTS AND CONTINGENCIES Purchase Obligations We have various purchase obligations under certain crude oil and other feedstock supply arrangements, industrial gas supply arrangements (such as hydrogen supply arrangements), natural gas supply arrangements, and various throughput, transportation and terminaling agreements. We enter into these contracts to ensure an adequate supply of feedstock and utilities and adequate storage capacity to operate our refineries and ethanol plants. Substantially all of our purchase obligations are based on market prices or adjustments based on market indices. Certain of these purchase obligations include fixed or minimum volume requirements, while others are based on our usage requirements. None of these obligations is associated with suppliers’ financing arrangements. These purchase obligations are not reflected as liabilities. Contractual Capital Commitments MVP Terminal We have a 50 percent membership interest in MVP Terminalling, LLC (MVP), a Delaware limited liability company formed in September 2017 with a subsidiary of Magellan Midstream Partners LP (Magellan), to construct, own, and operate the Magellan Valero Pasadena marine terminal (MVP Terminal) located adjacent to the Houston Ship Channel in Pasadena, Texas. The MVP Terminal contains (i) approximately 5 million barrels of storage capacity, (ii) a dock with two ship berths, and (iii) a three-bay truck rack facility. In connection with our terminaling agreement with MVP, described below, we will have dedicated use of (i) approximately 4 million barrels of storage, (ii) one ship berth, and (iii) the three-bay truck rack facility. Construction of phases one and two of the project began in 2017 with a total cost of $840 million , of which we have committed to contribute 50 percent ( $420 million ). The project could expand up to four phases with a total project cost of approximately $1.4 billion if warranted by additional demand and agreed to by Magellan and us. Since inception, we have contributed $404 million to MVP, of which $157 million was contributed during the year ended December 31, 2019 . Concurrent with the formation of MVP, we entered into a terminaling agreement with MVP to utilize the MVP Terminal upon completion of the majority of phase two, which is expected to occur in the first quarter of 2020 . The terminaling agreement has an initial term of 12 years with two five -year automatic renewals, and year-to-year renewals thereafter. Prior to our adoption of Topic 842 as described in Note 1 , we were considered the accounting owner of the MVP Terminal during the construction period due to our membership interest in MVP and because we determined that the terminaling agreement was a capital lease. Accordingly, as of December 31, 2018, we had recorded an asset of $539 million in property, plant, and equipment representing 100 percent of the construction costs incurred by MVP, as well as capitalized interest incurred by us, and a long-term liability of $292 million payable to Magellan. The amounts recorded for the portion of the construction costs associated with the payable to Magellan were noncash investing and financing items, respectively. On January 1, 2019, as a result of our adoption of Topic 842, we derecognized the asset and liability related to MVP discussed above and recorded our equity investment in MVP of $247 million , which is included in “deferred charges and other assets, net.” The amounts derecognized are noncash investing and financing items, respectively. As of December 31, 2019 , the carrying value of our equity investment in MVP was $401 million . Central Texas Pipeline We committed to a 40 percent undivided interest in a project with a subsidiary of Magellan to jointly build a 135 -mile, 20 -inch refined petroleum products pipeline with a capacity of up to 150,000 barrels per day from Houston to Hearne, Texas. The pipeline was placed in service in the third quarter of 2019. The cost of our 40 percent undivided interest in the pipeline was $160 million , of which $80 million was spent during the year ended December 31, 2019 . Self-Insurance We are self-insured for certain medical and dental, workers’ compensation, automobile liability, general liability, and property liability claims up to applicable retention limits. Liabilities are accrued for self-insured claims, or when estimated losses exceed coverage limits, and when sufficient information is available to reasonably estimate the amount of the loss. These liabilities are included in accrued expenses and other long-term liabilities. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
EQUITY | 11. EQUITY Share Activity Activity in the number of shares of common stock and treasury stock was as follows (in millions): Common Stock Treasury Stock Balance as of December 31, 2016 673 (222 ) Transactions in connection with stock-based compensation plans — 1 Stock purchases under purchase programs — (19 ) Balance as of December 31, 2017 673 (240 ) Stock purchases under purchase programs — (16 ) Balance as of December 31, 2018 673 (256 ) Transactions in connection with stock-based compensation plans — 1 Stock purchases under purchase program — (9 ) Balance as of December 31, 2019 673 (264 ) Preferred Stock We have 20 million shares of preferred stock authorized with a par value of $0.01 per share. No shares of preferred stock were outstanding as of December 31, 2019 or 2018 . Treasury Stock We purchase shares of our common stock as authorized under our common stock purchase program (described below) and to meet our obligations under employee stock-based compensation plans. On July 13, 2015 , our board of directors authorized us to purchase $2.5 billion of our outstanding common stock with no expiration date, and we completed that program during 2017. On September 21, 2016 , our board of directors authorized our purchase of up to an additional $2.5 billion with no expiration date, and we completed that program during 2018. On January 23, 2018 , our board of directors authorized our purchase of up to an additional $2.5 billion (the 2018 Program) with no expiration date. During the years ended December 31, 2019 , 2018 , and 2017 , we purchased $752 million , $1.5 billion , and $1.3 billion , respectively, of our common stock under our programs. As of December 31, 2019 , we have approval under the 2018 Program to purchase approximately $1.5 billion of our common stock. Common Stock Dividends On January 23, 2020 , our board of directors declared a quarterly cash dividend of $0.98 per common share payable on March 4, 2020 to holders of record at the close of business on February 12, 2020 . Income Tax Effects Related to Components of Other Comprehensive Income (Loss) The tax effects allocated to each component of other comprehensive income (loss) were as follows (in millions): Before-Tax Amount Tax Expense (Benefit) Net Amount Year ended December 31, 2019 Foreign currency translation adjustment $ 349 $ — $ 349 Pension and other postretirement benefits: Loss arising during the year related to: Net actuarial loss (245 ) (54 ) (191 ) Prior service cost (3 ) (1 ) (2 ) Miscellaneous loss — 4 (4 ) Amounts reclassified into income related to: Net actuarial loss 38 9 29 Prior service credit (28 ) (6 ) (22 ) Curtailment and settlement loss 4 1 3 Net loss on pension and other postretirement benefits (234 ) (47 ) (187 ) Derivative instruments designated and qualifying as cash flow hedges: Net loss arising during the year (6 ) (1 ) (5 ) Net gain reclassified into income (2 ) — (2 ) Net loss on cash flow hedges (8 ) (1 ) (7 ) Other comprehensive income $ 107 $ (48 ) $ 155 Before-Tax Amount Tax Expense (Benefit) Net Amount Year ended December 31, 2018 Foreign currency translation adjustment $ (517 ) $ — $ (517 ) Pension and other postretirement benefits: Gain arising during the year related to: Net actuarial gain 1 — 1 Prior service credit 7 1 6 Amounts reclassified into income related to: Net actuarial loss 63 14 49 Prior service credit (29 ) (7 ) (22 ) Curtailment and settlement loss 7 2 5 Net gain on pension and other postretirement benefits 49 10 39 Other comprehensive loss $ (468 ) $ 10 $ (478 ) Year ended December 31, 2017 Foreign currency translation adjustment $ 514 $ — $ 514 Pension and other postretirement benefits: Loss arising during the year related to: Net actuarial loss (79 ) (29 ) (50 ) Prior service cost (4 ) (1 ) (3 ) Miscellaneous loss — 3 (3 ) Amounts reclassified into income related to: Net actuarial loss 50 18 32 Prior service credit (36 ) (13 ) (23 ) Curtailment and settlement loss 4 1 3 Net loss on pension and other postretirement benefits (65 ) (21 ) (44 ) Other comprehensive income $ 449 $ (21 ) $ 470 Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss by component, net of tax, were as follows (in millions): Foreign Currency Translation Adjustment Defined Benefit Plans Items Losses on Cash Flow Hedges Total Balance as of December 31, 2016 $ (1,021 ) $ (389 ) $ — $ (1,410 ) Other comprehensive income (loss) before reclassifications 514 (56 ) — 458 Amounts reclassified from accumulated other comprehensive loss — 12 — 12 Other comprehensive income (loss) 514 (44 ) — 470 Balance as of December 31, 2017 (507 ) (433 ) — (940 ) Other comprehensive income (loss) before reclassifications (515 ) 7 — (508 ) Amounts reclassified from accumulated other comprehensive loss — 32 — 32 Other comprehensive income (loss) (515 ) 39 — (476 ) Reclassification of stranded income tax effects — (91 ) — (91 ) Balance as of December 31, 2018 (1,022 ) (485 ) — (1,507 ) Other comprehensive income (loss) before reclassifications 346 (197 ) (2 ) 147 Amounts reclassified from accumulated other comprehensive loss — 10 (1 ) 9 Other comprehensive income (loss) 346 (187 ) (3 ) 156 Balance as of December 31, 2019 $ (676 ) $ (672 ) $ (3 ) $ (1,351 ) Gains (losses) reclassified out of accumulated other comprehensive loss and into net income were as follows (in millions): Details about Accumulated Other Comprehensive Loss Components Affected Line Item in the Statement of Income Year Ended December 31, 2019 2018 2017 Amortization of items related to defined benefit pension plans: Net actuarial loss $ (38 ) $ (63 ) $ (50 ) (a) Other income, net Prior service credit 28 29 36 (a) Other income, net Curtailment and settlement (4 ) (7 ) (4 ) (a) Other income, net (14 ) (41 ) (18 ) Total before tax 4 9 6 Tax benefit $ (10 ) $ (32 ) $ (12 ) Net of tax Gains on cash flow hedges: Commodity contracts $ 2 $ — $ — Revenues $ 2 $ — $ — Net of tax Total reclassifications for the year $ (8 ) $ (32 ) $ (12 ) Net of tax _________________________ (a) These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost (credit), as discussed in Note 13 . |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | 12. VARIABLE INTEREST ENTITIES Consolidated VIEs In the normal course of business, we have financial interests in certain entities that have been determined to be VIEs. We consolidate a VIE when we have a variable interest in an entity for which we are the primary beneficiary such that we have (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses of or the right to receive benefits from the VIE that could potentially be significant to the VIE. In order to make this determination, we evaluated our contractual arrangements with the VIEs, including arrangements for the use of assets, purchases of products and services, debt, equity, or management of operating activities. The following discussion summarizes our involvement with our VIEs: • DGD is a joint venture with a subsidiary of Darling Ingredients Inc. that owns and operates a plant that processes animal fats, used cooking oils, and other vegetable oils into renewable diesel. The plant is located in Norco, Louisiana next to our St. Charles Refinery. Our significant agreements with DGD include an operations agreement that outlines our responsibilities as operator of the plant and a marketing agreement. As operator, we operate the plant and perform certain day-to-day operating and management functions for DGD as an independent contractor. The operations agreement provides us (as operator) with certain power to direct the activities that most significantly impact DGD’s economic performance. Because this agreement conveys such power to us and is separate from our ownership rights, we determined that DGD was a VIE. For this reason and because we hold a 50 percent ownership interest that provides us with significant economic rights and obligations, we determined that we are the primary beneficiary of DGD. DGD has risk associated with its operations because it generates revenues from third-party customers. • Central Mexico Terminals is a collective group of three subsidiaries of Infraestructura Energetica Nova, S.A.B. de C.V. (IEnova), a Mexican company and subsidiary of Sempra Energy, a U.S. public company. We have terminaling agreements with Central Mexico Terminals that represent variable interests because we have determined them to be finance leases due to our exclusive use of the terminals. Although we do not have an ownership interest in the entities that own each of the three terminals, the finance leases convey to us (i) the power to direct the activities that most significantly impact the economic performance of all three terminals and (ii) the ability to influence the benefits received or the losses incurred by the terminals because of our use of the terminals. As a result, we determined each of the entities was a VIE and that we are the primary beneficiary of each. Substantially all of Central Mexico Terminals’ revenues will be derived from us; therefore, there is limited risk to us associated with Central Mexico Terminals’ operations. • We also have financial interests in other entities that have been determined to be VIEs because the entities’ contractual arrangements transfer the power to us to direct the activities that most significantly impact their economic performance or reduce the exposure to operational variability and risk of loss created by the entity that otherwise would be held exclusively by the equity owners. Furthermore, we determined that we are the primary beneficiary of these VIEs because (i) certain contractual arrangements (exclusive of our ownership rights) provide us with the power to direct the activities that most significantly impact the economic performance of these entities and/or (ii) our 50 percent ownership interests provide us with significant economic rights and obligations. The VIEs’ assets can only be used to settle their own obligations and the VIEs’ creditors have no recourse to our assets. We do not provide financial guarantees to our VIEs. Although we have provided credit facilities to some of our VIEs in support of their construction or acquisition activities, these transactions are eliminated in consolidation. Our financial position, results of operations, and cash flows are impacted by our consolidated VIEs’ performance, net of intercompany eliminations, to the extent of our ownership interest in each VIE. The following tables present summarized balance sheet information for the significant assets and liabilities of our VIEs, which are included in our balance sheets (in millions). December 31, 2019 DGD Central Mexico Other Total Assets Cash and cash equivalents $ 85 $ — $ 25 $ 110 Other current assets 567 33 89 689 Property, plant, and equipment, net 706 381 105 1,192 Liabilities Current liabilities, including current portion of debt and finance lease obligations $ 66 $ 409 $ 8 $ 483 Debt and finance lease obligations, less current portion — — 31 31 December 31, 2018 VLP (a) DGD Central Mexico Other Total Assets Cash and cash equivalents $ 152 $ 65 $ — $ 18 $ 235 Other current assets 2 112 20 64 198 Property, plant, and equipment, net 1,409 576 156 113 2,254 Liabilities Current liabilities, including current portion of debt and finance lease obligations $ 27 $ 28 $ 118 $ 9 $ 182 Debt and finance lease obligations, less current portion 990 — — 34 1,024 ____________________ (a) Prior to the completion of the Merger Transaction with VLP on January 10, 2019 as discussed in Note 2 , VLP was a publicly traded master limited partnership that we had determined was a VIE. VLP was formed by us to own, operate, develop, and acquire crude oil and refined petroleum products pipelines, terminals, and other transportation and logistics assets. As of December 31, 2018, we owned a 66.2 percent limited partner interest and a 2.0 percent general partner interest in VLP, and public unitholders owned a 31.8 percent limited partner interest. Upon completion of the Merger Transaction, VLP became our indirect wholly owned subsidiary and, as a result, was no longer a VIE. Non-Consolidated VIEs We hold variable interests in VIEs that have not been consolidated because we are not considered the primary beneficiary. These non-consolidated VIEs are not material to our financial position or results of operations and are accounted for as equity investments. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | 13. EMPLOYEE BENEFIT PLANS Defined Benefit Plans We have defined benefit pension plans, some of which are subject to collective bargaining agreements, that cover most of our employees. These plans provide eligible employees with retirement income based primarily on years of service and compensation during specific periods under final average pay and cash balance formulas. We fund our pension plans as required by local regulations. In the U.S., all qualified pension plans are subject to the Employee Retirement Income Security Act’s minimum funding standard. We typically do not fund or fully fund U.S. nonqualified and certain international pension plans that are not subject to funding requirements because contributions to these pension plans may be less economic and investment returns may be less attractive than our other investment alternatives. We also provide health care and life insurance benefits for certain retired employees through our postretirement benefit plans. Most of our employees become eligible for these benefits if, while still working for us, they reach normal retirement age or take early retirement. These plans are unfunded, and retired employees share the cost with us. Individuals who became our employees as a result of an acquisition became eligible for postretirement benefits under our plans as determined by the terms of the relevant acquisition agreement. The changes in benefit obligation related to all of our defined benefit plans, the changes in fair value of plan assets (a) , and the funded status of our defined benefit plans as of and for the years ended were as follows (in millions): Pension Plans Other Postretirement Benefit Plans December 31, December 31, 2019 2018 2019 2018 Changes in benefit obligation Benefit obligation as of beginning of year $ 2,639 $ 2,926 $ 292 $ 306 Service cost 119 133 5 6 Interest cost 98 91 11 10 Participant contributions — — 11 10 Benefits paid (154 ) (207 ) (29 ) (28 ) Actuarial (gain) loss 528 (285 ) 41 (9 ) Other 9 (19 ) 5 (3 ) Benefit obligation as of end of year $ 3,239 $ 2,639 $ 336 $ 292 Changes in plan assets (a) Fair value of plan assets as of beginning of year $ 2,236 $ 2,428 $ — $ — Actual return on plan assets 490 (130 ) — — Valero contributions 128 156 18 18 Participant contributions — — 11 10 Benefits paid (154 ) (207 ) (29 ) (28 ) Other 9 (11 ) — — Fair value of plan assets as of end of year $ 2,709 $ 2,236 $ — $ — Reconciliation of funded status (a) Fair value of plan assets as of end of year $ 2,709 $ 2,236 $ — $ — Less: Benefit obligation as of end of year 3,239 2,639 336 292 Funded status as of end of year $ (530 ) $ (403 ) $ (336 ) $ (292 ) Accumulated benefit obligation $ 3,039 $ 2,492 n/a n/a __________________________ (a) Plan assets include only the assets associated with pension plans subject to legal minimum funding standards. Plan assets associated with U.S. nonqualified pension plans are not included here because they are not protected from our creditors and therefore cannot be reflected as a reduction from our obligations under the pension plans. As a result, the reconciliation of funded status does not reflect the effect of plan assets that exist for all of our defined benefit plans. See Note 19 for the assets associated with certain U.S. nonqualified pension plans. The actuarial loss for the year ended December 31, 2019 primarily resulted from a decrease in the discount rates used to determine our benefit obligations for our pension plans from 4.25 percent in 2018 to 3.14 percent in 2019 . The actuarial gain for the year ended December 31, 2018 primarily resulted from an increase in the discount rates used to determine our benefit obligations for our pension plans from 3.58 percent in 2017 to 4.25 percent in 2018 . The fair value of our plan assets as of December 31, 2019 was favorably impacted by the return on plan assets resulting primarily from an improvement in equity market prices for the year. The fair value of our plan assets as of December 31, 2018 was unfavorably impacted by the negative return on plan assets resulting primarily from a significant decline in equity market prices for the year. Amounts recognized in our balance sheet for our pension and other postretirement benefits plans include (in millions): Pension Plans Other Postretirement Benefit Plans December 31, December 31, 2019 2018 2019 2018 Deferred charges and other assets, net $ 5 $ 2 $ — $ — Accrued expenses (17 ) (22 ) (20 ) (21 ) Other long-term liabilities (518 ) (383 ) (316 ) (271 ) $ (530 ) $ (403 ) $ (336 ) $ (292 ) The following table presents information for our pension plans with projected benefit obligations in excess of plan assets (in millions). December 31, 2019 2018 Projected benefit obligation $ 3,182 $ 2,564 Fair value of plan assets 2,647 2,160 The following table presents information for our pension plans with accumulated benefit obligations in excess of plan assets (in millions). December 31, 2019 2018 Accumulated benefit obligation $ 2,760 $ 2,253 Fair value of plan assets 2,402 1,974 Benefit payments that we expect to pay, including amounts related to expected future services that we expect to receive, are as follows for the years ending December 31 (in millions): Pension Benefits Other Postretirement Benefits 2020 $ 179 $ 21 2021 219 20 2022 190 20 2023 204 19 2024 205 19 2025-2029 1,105 88 We plan to contribute approximately $140 million to our pension plans and $21 million to our other postretirement benefit plans during 2020 . The components of net periodic benefit cost (credit) related to our defined benefit plans were as follows (in millions): Pension Plans Other Postretirement Benefit Plans Year Ended December 31, Year Ended December 31, 2019 2018 2017 2019 2018 2017 Service cost $ 119 $ 133 $ 123 $ 5 $ 6 $ 6 Interest cost 98 91 86 11 10 10 Expected return on plan assets (166 ) (163 ) (150 ) — — — Amortization of: Net actuarial (gain) loss 41 65 53 (3 ) (2 ) (3 ) Prior service credit (19 ) (18 ) (20 ) (9 ) (11 ) (16 ) Special charges 4 7 4 1 — — Net periodic benefit cost (credit) $ 77 $ 115 $ 96 $ 5 $ 3 $ (3 ) The components of net periodic benefit cost (credit) other than the service cost component (i.e., the non-service cost components) are included in “ other income, net ” in the statements of income. Amortization of prior service credit shown in the preceding table was based on a straight-line amortization of the cost over the average remaining service period of employees expected to receive benefits under each respective plan. Amortization of the net actuarial (gain) loss shown in the preceding table was based on the straight-line amortization of the excess of the unrecognized (gain) loss over 10 percent of the greater of the projected benefit obligation or market-related value of plan assets (smoothed asset value) over the average remaining service period of active employees expected to receive benefits under each respective plan. Pre-tax amounts recognized in other comprehensive income (loss) were as follows (in millions): Pension Plans Other Postretirement Benefit Plans Year Ended December 31, Year Ended December 31, 2019 2018 2017 2019 2018 2017 Net gain (loss) arising during the year: Net actuarial gain (loss) $ (204 ) $ (8 ) $ (73 ) $ (41 ) $ 9 $ (6 ) Prior service (cost) credit — 7 (4 ) (3 ) — — Net (gain) loss reclassified into income: Net actuarial (gain) loss 41 65 53 (3 ) (2 ) (3 ) Prior service credit (19 ) (18 ) (20 ) (9 ) (11 ) (16 ) Curtailment and settlement loss 4 7 4 — — — Total changes in other comprehensive income (loss) $ (178 ) $ 53 $ (40 ) $ (56 ) $ (4 ) $ (25 ) The pre-tax amounts in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit cost (credit) were as follows (in millions): Pension Plans Other Postretirement Benefit Plans December 31, December 31, 2019 2018 2019 2018 Net actuarial (gain) loss $ 988 $ 828 $ (20 ) $ (64 ) Prior service credit (90 ) (108 ) (19 ) (31 ) Total $ 898 $ 720 $ (39 ) $ (95 ) The weighted-average assumptions used to determine the benefit obligations were as follows: Pension Plans Other Postretirement Benefit Plans December 31, December 31, 2019 2018 2019 2018 Discount rate 3.14 % 4.25 % 3.32 % 4.40 % Rate of compensation increase 3.75 % 3.78 % n/a n/a Interest crediting rate for cash balance plans 3.03 % 3.04 % n/a n/a The discount rate assumption used to determine the benefit obligations as of December 31, 2019 and 2018 for the majority of our pension plans and other postretirement benefit plans was based on the Aon AA Only Above Median yield curve and considered the timing of the projected cash outflows under our plans. This curve was designed by Aon to provide a means for plan sponsors to value the liabilities of their pension plans or postretirement benefit plans. It is a hypothetical double-A yield curve represented by a series of annualized individual discount rates with maturities from one-half year to 99 years . Each bond issue underlying the curve is required to have an average rating of double-A when averaging all available ratings by Moody’s Investors Service, Standard & Poor’s Ratings Services, and Fitch Ratings. Only the bonds representing the 50 percent highest yielding issuances among those with average ratings of double-A are included in this yield curve. We based our discount rate assumption on the Aon AA Only Above Median yield curve because we believe it is representative of the types of bonds we would use to settle our pension and other postretirement benefit plan liabilities as of those dates. We believe that the yields associated with the bonds used to develop this yield curve reflect the current level of interest rates. The weighted-average assumptions used to determine the net periodic benefit cost were as follows: Pension Plans Other Postretirement Benefit Plans Year Ended December 31, Year Ended December 31, 2019 2018 2017 2019 2018 2017 Discount rate 4.24 % 3.59 % 4.08 % 4.40 % 3.72 % 4.26 % Expected long-term rate of return on plan assets 7.22 % 7.24 % 7.29 % n/a n/a n/a Rate of compensation increase 3.78 % 3.86 % 3.81 % n/a n/a n/a Interest crediting rate for cash balance plans 3.04 % 3.04 % 3.04 % n/a n/a n/a The assumed health care cost trend rates were as follows: December 31, 2019 2018 Health care cost trend rate assumed for the next year 7.32 % 7.29 % Rate to which the cost trend rate was assumed to decline (the ultimate trend rate) 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate 2026 2026 The following tables present the fair values of the assets of our pension plans (in millions) as of December 31, 2019 and 2018 by level of the fair value hierarchy. Assets categorized in Level 1 of the hierarchy are measured at fair value using a market approach based on unadjusted quoted prices from national securities exchanges. Assets categorized in Level 2 of the hierarchy are measured at net asset value in a market that is not active. As previously noted, we do not fund or fully fund U.S. nonqualified and certain international pension plans that are not subject to funding requirements, and we do not fund our other postretirement benefit plans. Fair Value Hierarchy Total as of Level 1 Level 2 Level 3 Equity securities: U.S. companies (a) $ 622 $ — $ — $ 622 International companies 205 1 — 206 Preferred stock 4 — — 4 Mutual funds: International growth 123 — — 123 Index funds 90 — — 90 Corporate debt instruments (a) — 293 — 293 Government securities: U.S. Treasury securities 53 — — 53 Other government securities — 148 — 148 Common collective trusts (b) — 751 — 751 Pooled separate accounts — 250 — 250 Private funds — 104 — 104 Insurance contract — 17 — 17 Interest and dividends receivable 5 — — 5 Cash and cash equivalents 59 — — 59 Securities transactions payable, net (16 ) — — (16 ) Total pension plan assets $ 1,145 $ 1,564 $ — $ 2,709 ___________________________ See notes on page 108 . Fair Value Hierarchy Total as of Level 1 Level 2 Level 3 Equity securities: U.S. companies (a) $ 497 $ — $ — $ 497 International companies 159 1 — 160 Preferred stock 4 — — 4 Mutual funds: International growth 97 — — 97 Index funds 76 — — 76 Corporate debt instruments (a) — 284 — 284 Government securities: U.S. Treasury securities 45 — — 45 Other government securities — 138 — 138 Common collective trusts (b) — 609 — 609 Pooled separate accounts — 190 — 190 Private funds — 87 — 87 Insurance contract — 18 — 18 Interest and dividends receivable 5 — — 5 Cash and cash equivalents 40 — — 40 Securities transactions payable, net (14 ) — — (14 ) Total pension plan assets $ 909 $ 1,327 $ — $ 2,236 __________________________________ (a) This class of securities is held in a wide range of industrial sectors. (b) This class includes primarily investments in approximately 75 percent equities and 25 percent bonds as of December 31, 2019 . As of December 31, 2018 , this class included primarily investments in approximately 70 percent equities and 30 percent bonds. The investment policies and strategies for the assets of our pension plans incorporate a well-diversified approach that is expected to earn long-term returns from capital appreciation and a growing stream of current income. This approach recognizes that assets are exposed to risk and the market value of the pension plans’ assets may fluctuate from year to year. Risk tolerance is determined based on our financial ability to withstand risk within the investment program and the willingness to accept return volatility. In line with the investment return objective and risk parameters, the pension plans’ mix of assets includes a diversified portfolio of equity and fixed-income investments. Equity securities include international stocks and a blend of U.S. growth and value stocks of various sizes of capitalization. Fixed income securities include bonds and notes issued by the U.S. government and its agencies, corporate bonds, and mortgage-backed securities. The aggregate asset allocation is reviewed on an annual basis. As of December 31, 2019 , the target allocations for plan assets under our primary pension plan are 70 percent equity securities and 30 percent fixed income investments. The expected long-term rate of return on plan assets is based on a forward-looking expected asset return model. This model derives an expected rate of return based on the target asset allocation of a plan’s assets. The underlying assumptions regarding expected rates of return for each asset class reflect Aon’s best expectations for these asset classes. The model reflects the positive effect of periodic rebalancing among diversified asset classes. We select an expected asset return that is supported by this model. Defined Contribution Plans We have defined contribution plans that cover most of our employees. Our contributions to these plans are based on employees’ compensation and/or a partial match of employee contributions to the plans. Our contributions to these defined contribution plans were $77 million , $74 million , and $70 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | 14. STOCK-BASED COMPENSATION Overview Under our 2011 Omnibus Stock Incentive Plan (the OSIP), various stock and stock-based awards may be granted to employees and non-employee directors. Awards available under the OSIP include, but are not limited to, (i) restricted stock that vests over a period determined by our compensation committee, (ii) performance awards that vest upon the achievement of an objective performance goal, (iii) options to purchase shares of common stock, (iv) dividend equivalent rights, and (v) stock unit awards. The OSIP was approved by our stockholders on April 28, 2011 and re-approved by our stockholders on May 12, 2016. As of December 31, 2019 , 7,740,665 shares of our common stock remained available to be awarded under the OSIP. We also maintain another stock-based compensation plan under which previously granted equity awards remain outstanding. No additional grants may be awarded under this plan. The following table reflects activity related to our stock-based compensation arrangements (in millions): Year Ended December 31, 2019 2018 2017 Stock-based compensation expense: Restricted stock $ 64 $ 63 $ 58 Performance awards 23 22 19 Stock options and other awards 2 1 — Total stock-based compensation expense $ 89 $ 86 $ 77 Tax benefit recognized on stock-based compensation expense $ 19 $ 18 $ 27 Tax benefit realized for tax deductions resulting from exercises and vestings 17 32 44 Effect of tax deductions in excess of recognized stock-based compensation expense 7 20 24 The following is a discussion of our significant stock-based compensation arrangement. Restricted Stock Restricted stock is granted to employees and non-employee directors. Restricted stock granted to employees vests in accordance with individual written agreements between the participants and us, usually in equal annual installments over a period of three years beginning one year after the date of grant. Restricted stock granted to our non-employee directors vests in equal annual installments over a period of three years beginning one year after the date of grant. The fair value of each restricted stock per share is equal to the market price of our common stock. A summary of the status of our restricted stock awards is presented in the following table. Number of Shares Weighted- Average Grant-Date Fair Value Per Share Nonvested shares as of January 1, 2019 1,176,578 $ 80.70 Granted 677,482 98.75 Vested (757,217 ) 78.54 Forfeited (4,989 ) 83.18 Nonvested shares as of December 31, 2019 1,091,854 93.38 As of December 31, 2019 , there was $59 million of unrecognized compensation cost related to outstanding unvested restricted stock awards, which is expected to be recognized over a weighted-average period of approximately two years . The following table reflects activity related to our restricted stock: Year Ended December 31, 2019 2018 2017 Weighted-average grant-date fair value per share of restricted stock granted $ 98.75 $ 92.12 $ 79.32 Fair value of restricted stock vested (in millions) 74 80 71 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 15. INCOME TAXES Income Statement Components Income before income tax expense (benefit) was as follows (in millions): Year Ended December 31, 2019 2018 2017 U.S. operations $ 2,496 $ 3,168 $ 2,283 International operations 990 1,064 924 Income before income tax expense (benefit) $ 3,486 $ 4,232 $ 3,207 Statutory income tax rates applicable to the countries in which we operate were as follows: Year Ended December 31, 2019 2018 2017 U.S. 21 % 21 % 35 % Canada 15 % 15 % 15 % U.K. 19 % 19 % 19 % Ireland 13 % 13 % 13 % Peru 30 % 30 % n/a Mexico 30 % 30 % n/a The following is a reconciliation of income tax expense (benefit) computed by applying statutory income tax rates as reflected in the preceding table to actual income tax expense (benefit) (in millions): U.S. International Total Amount Percent Amount Percent Amount Percent Year ended December 31, 2019 Income tax expense at statutory rates $ 524 21.0 % $ 147 14.8 % $ 671 19.2 % U.S. state and Canadian provincial tax expense, net of federal income tax effect 16 0.7 % 88 8.9 % 104 3.0 % Permanent differences (36 ) (1.5 )% 10 1.0 % (26 ) (0.7 )% GILTI tax (a) 115 4.6 % — — 115 3.3 % Foreign tax credits (95 ) (3.8 )% — — (95 ) (2.7 )% Repatriation withholding tax 45 1.8 % — — 45 1.3 % Tax effects of income associated with noncontrolling interests (77 ) (3.1 )% 2 0.2 % (75 ) (2.2 )% Other, net (36 ) (1.4 )% (1 ) (0.1 )% (37 ) (1.1 )% Income tax expense $ 456 18.3 % $ 246 24.8 % $ 702 20.1 % __________________________ (a) See note on page 112 . U.S. International Total Amount Percent Amount Percent Amount Percent Year ended December 31, 2018 Income tax expense at statutory rates $ 665 21.0 % $ 163 15.3 % $ 828 19.6 % U.S. state and Canadian provincial tax expense, net of federal income tax effect 44 1.4 % 80 7.5 % 124 2.9 % Permanent differences (9 ) (0.3 )% — — (9 ) (0.2 )% GILTI tax (a) 67 2.1 % — — 67 1.6 % Foreign tax credits (50 ) (1.6 )% — — (50 ) (1.2 )% Effects of Tax Reform (a) (12 ) (0.4 )% — — (12 ) (0.3 )% Tax effects of income associated with noncontrolling interests (49 ) (1.5 )% — — (49 ) (1.2 )% Other, net (23 ) (0.7 )% 3 0.3 % (20 ) (0.5 )% Income tax expense $ 633 20.0 % $ 246 23.1 % $ 879 20.7 % Year ended December 31, 2017 Income tax expense at statutory rates $ 799 35.0 % $ 158 17.1 % $ 957 29.8 % U.S. state and Canadian provincial tax expense, net of federal income tax effect 37 1.6 % 46 5.0 % 83 2.6 % Permanent differences: Manufacturing deduction (42 ) (1.8 )% — — (42 ) (1.3 )% Other (9 ) (0.4 )% — — (9 ) (0.3 )% Change in tax law (a) (1,862 ) (81.6 )% — — (1,862 ) (58.1 )% Tax effects of income associated with noncontrolling interests (31 ) (1.4 )% — — (31 ) (1.0 )% Other, net (52 ) (2.3 )% 7 0.8 % (45 ) (1.4 )% Income tax expense (benefit) $ (1,160 ) (50.9 )% $ 211 22.9 % $ (949 ) (29.7 )% __________________________ (a) See “Tax Reform” below for a discussion of the changes in tax law in the U.S. that were enacted in December 2017. Components of income tax expense (benefit) were as follows (in millions): U.S. International Total Year ended December 31, 2019 Current: Country $ 145 $ 186 $ 331 U.S. state / Canadian provincial 37 100 137 Total current 182 286 468 Deferred: Country 290 (28 ) 262 U.S. state / Canadian provincial (16 ) (12 ) (28 ) Total deferred 274 (40 ) 234 Income tax expense $ 456 $ 246 $ 702 Year ended December 31, 2018 Current: Country $ 432 $ 141 $ 573 U.S. state / Canadian provincial 37 66 103 Total current 469 (a) 207 676 Deferred: Country 145 25 170 U.S. state / Canadian provincial 19 14 33 Total deferred 164 (b) 39 203 Income tax expense $ 633 $ 246 $ 879 Year ended December 31, 2017 Current: Country $ 1,305 $ 194 $ 1,499 U.S. state / Canadian provincial 34 61 95 Total current 1,339 (a) 255 1,594 Deferred: Country (2,522 ) (29 ) (2,551 ) U.S. state / Canadian provincial 23 (15 ) 8 Total deferred (2,499 ) (b) (44 ) (2,543 ) Income tax expense (benefit) $ (1,160 ) $ 211 $ (949 ) ___________________________ (a) Current income tax expense includes a $21 million benefit and a $781 million expense related to our Tax Reform adjustment for the years ended December 31, 2018 and 2017, respectively, as described in “Tax Reform” below. (b) Deferred income tax expense (benefit) includes a $9 million expense and a $2.6 billion benefit related to our Tax Reform adjustment for the years ended December 31, 2018 and 2017, respectively, as described in “Tax Reform” below. Income Taxes Paid (Refunded) Income taxes paid to (received from) U.S. and international taxing authorities were as follows (in millions): Year Ended December 31, 2019 2018 2017 U.S. $ (298 ) (a) $ 1,016 $ 239 International 182 345 171 Income taxes paid (refunded), net $ (116 ) $ 1,361 $ 410 __________________________ (a) This amount includes a refund of $348 million , including interest, that we received related to the settlement of the combined audit of our U.S. federal income tax returns for 2010 and 2011. See “ Tax Returns Under Audit – U.S. Federal” below. Deferred Income Tax Assets and Liabilities The tax effects of significant temporary differences representing deferred income tax assets and liabilities were as follows (in millions): December 31, 2019 2018 Deferred income tax assets: Tax credit carryforwards $ 683 $ 644 Net operating losses (NOLs) 582 523 Inventories 141 101 Compensation and employee benefit liabilities 213 175 Environmental liabilities 69 71 Other 156 141 Total deferred income tax assets 1,844 1,655 Valuation allowance (1,200 ) (1,111 ) Net deferred income tax assets 644 544 Deferred income tax liabilities: Property, plant, and equipment 4,924 4,589 Deferred turnaround costs 331 316 Inventories 217 287 Investments 122 142 Other 153 172 Total deferred income tax liabilities 5,747 5,506 Net deferred income tax liabilities $ 5,103 $ 4,962 We had the following income tax credit and loss carryforwards as of December 31, 2019 (in millions): Amount Expiration U.S. state income tax credits (gross amount) $ 89 2020 through 2033 U.S. state income tax credits (gross amount) 17 Unlimited U.S. foreign tax credits 598 2027 U.S. state NOLs (gross amount) 10,913 2020 through 2039 We have recorded a valuation allowance as of December 31, 2019 and 2018 due to uncertainties related to our ability to utilize some of our deferred income tax assets associated with our U.S. foreign tax credits and certain U.S. state income tax credits and NOLs before they expire. The valuation allowance is based on our estimates of future taxable income in the various jurisdictions in which we operate and the period over which deferred income tax assets will be recoverable. The valuation allowance increased by $89 million in 2019 primarily due to an increase in excess U.S. foreign tax credits as well as U.S. state income tax NOLs. As a part of completing our accounting for Tax Reform in 2018 as described in “Tax Reform” below, we assessed our ability to use our foreign tax credits to offset the tax on the deemed repatriation of the accumulated earnings and profits of our international subsidiaries and concluded that our foreign tax credit carryforwards were not more likely than not to be realized, and we recorded a full valuation allowance against the deferred income tax asset associated with those carryforwards. As described in “Tax Reform” below, one of the most significant changes in Tax Reform was the shift from a worldwide system of taxation to a hybrid territorial system. The shift to a hybrid territorial system allows us to distribute cash via a dividend from our international subsidiaries with a full dividend received deduction in the U.S. As a result, we will not recognize U.S. federal deferred taxes for the future tax consequences attributable to undistributed earnings of our international subsidiaries. However, there may be a cost to repatriate the undistributed earnings of certain of our international subsidiaries to us, including, but not limited to, withholding taxes imposed by certain international jurisdictions and U.S. state income taxes. As of December 31, 2019 , the cumulative undistributed earnings of these subsidiaries that is considered permanently reinvested in those countries were approximately $4.2 billion . It is not practicable to estimate the amount of additional tax that would be payable on those earnings, if distributed. Unrecognized Tax Benefits Change in Unrecognized Tax Benefits The following is a reconciliation of the change in unrecognized tax benefits, excluding related interest and penalties, (in millions): Year Ended December 31, 2019 2018 2017 Balance as of beginning of year $ 970 $ 941 $ 936 Additions for tax positions related to the current year 19 23 33 Additions for tax positions related to prior years 30 28 15 Reductions for tax positions related to prior years (101 ) (19 ) (42 ) Reductions for tax positions related to the lapse of applicable statute of limitations (14 ) (1 ) (1 ) Settlements (7 ) (2 ) — Balance as of end of year $ 897 $ 970 $ 941 Liability for Unrecognized Tax Benefits The following is a reconciliation of unrecognized tax benefits to our liability for unrecognized tax benefits presented in our balance sheets (in millions). December 31, 2019 2018 Unrecognized tax benefits $ 897 $ 970 Tax refund claims not yet filed but that we intend to file (29 ) (277 ) Interest and penalties 100 88 Liability for unrecognized tax benefits presented in our balance sheets $ 968 $ 781 Our liability for unrecognized tax benefits is reflected in the following balance sheet line items (in millions): December 31, 2019 2018 Income taxes payable $ — $ 42 Other long-term liabilities 954 721 Deferred tax liabilities 14 18 Liability for unrecognized tax benefits presented in our balance sheets $ 968 $ 781 As of December 31, 2019 , our liability for unrecognized tax benefits includes $525 million of refund claims associated with taxes paid on incentive payments received from the U.S. federal government for blending biofuels into refined petroleum products. We recorded a tax refund receivable of $525 million in connection with our refund claims, but we also recorded a liability for unrecognized tax benefits of $525 million due to the complexity of this matter and uncertainties with respect to sustaining these refund claims. Therefore, our financial position, results of operations, and liquidity will not be negatively impacted if we are unsuccessful in sustaining these refund claims. Other Disclosures As of December 31, 2019 and 2018 , there was $762 million and $807 million , respectively, of unrecognized tax benefits that if recognized would reduce our annual effective tax rate. Interest and penalties incurred during the years ended December 31, 2019 , 2018 , and 2017 was immaterial. Although reasonably possible, we do not anticipate that any of our tax audits will be resolved in 2020 that would result in a reduction in our liability for unrecognized tax benefits due to the tax positions being sustained or due to our agreement of their disallowance. Should any reductions occur, we do not expect they would have a significant impact on our financial statements because such reductions would not significantly affect our annual effective tax rate. Tax Returns Under Audit U.S. Federal In 2019, we settled the combined audit related to our U.S. federal income tax returns for 2010 and 2011 and received a refund of $348 million , including interest. We did not have a significant change to our liability for unrecognized tax benefits upon settlement of the audit. As of December 31, 2019 , our U.S. federal income tax returns for 2012 through 2015 were under audit by the IRS. The IRS has proposed adjustments and we are working with the IRS to resolve these matters. We believe that these matters will be resolved for amounts consistent with our liability for unrecognized tax benefits associated with these matters. We have amended our U.S federal income tax returns for 2005 through 2011 to exclude from taxable income incentive payments received from the U.S. federal government for blending biofuels into refined petroleum products, and we have claimed $525 million in refunds. The 2005 through 2009 amended return refund claims have been disallowed by the IRS and we are currently evaluating our options to contest the disallowance of these adjustments. As noted above in the discussion of our liability for unrecognized tax benefits, an ultimate disallowance of these refund claims would not negatively impact our financial position, results of operations, and liquidity. U.S. State As of December 31, 2019 , our California tax returns for 2004 through 2008 and 2011 through 2016 were under audit by the state of California. We do not expect the ultimate disposition of these audits will result in a material change to our financial position, results of operations, or liquidity. We believe these audits will be resolved for amounts consistent with the liability for unrecognized tax benefits associated with these audits. International As of December 31, 2019 , our Canadian subsidiary’s federal tax returns for 2013 through 2016 were under audit by the Canada Revenue Agency (CRA) and our Quebec provincial tax returns for 2013 through 2016 were under audit by Revenue Quebec. We are currently protesting the proposed adjustments by the CRA for 2013 and 2014 and we do not expect the ultimate disposition of these adjustments will result in a material change to our financial position, results of operations, or liquidity. Tax Reform On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (Tax Reform) was enacted, which resulted in significant changes to the Code and was effective beginning on January 1, 2018. The most significant changes affecting us are as follows: • reduction in the statutory income tax rate from 35 percent to 21 percent; • assessment of a one-time transition tax on deemed repatriated earnings and profits from our international subsidiaries; • shift from a worldwide system of taxation to a hybrid territorial system of taxation, resulting in a minimum tax on the income of international subsidiaries (the GILTI tax) rather than a tax deferral on such earnings in certain circumstances; • deduction for all of the costs to acquire or construct certain business assets in the year they are placed in service through 2022; and • repeal of the manufacturing deduction; The following narrative describes the activity that occurred with respect to Tax Reform for the years ended December 31, 2017 and 2018. We reflected an overall income tax benefit of $1.9 billion for the year ended December 31, 2017 with respect to Tax Reform as a result of the following: • We remeasured our U.S. deferred tax assets and liabilities using the 21 percent rate, which resulted in a tax benefit and a reduction to our net deferred tax liabilities of $2.6 billion . • We recognized a one-time transition tax of $734 million on the deemed repatriation of previously undistributed accumulated earnings and profits of our international subsidiaries based on approximately $4.7 billion of the combined earnings and profits of our international subsidiaries that had not been distributed to us. This transition tax will be remitted to the Internal Revenue Service (IRS) over the eight-year period provided in the Code, with the first annual remittance paid in 2018. • We accrued withholding tax of $47 million on a portion of the earnings of one of our international subsidiaries that we have deemed to not be permanently reinvested in our operations in that country. Because of the significant and complex changes to the Code from Tax Reform, including the need for regulatory guidance from the IRS to properly account for many of the provisions, the SEC issued Staff Accounting Bulletin No. 118, “Income Tax Accounting Implications of the Tax Cuts and Jobs Act,” which required that the effects of Tax Reform be recorded for items where the accounting was complete, as well as for items where a reasonable estimate could be made (referred to as provisional amounts). For items where reasonable estimates could not be made, provisional amounts were not recorded and those items continued to be accounted for under the Code prior to changes from Tax Reform until a reasonable estimate could be made. The following table summarizes the components of our adjustment (in millions) to reflect the effects of Tax Reform for the years ended December 31, 2018 and 2017, including whether such amounts were complete, provisional, or incomplete. The amounts presented for 2018 were completed during the fourth quarter of 2018. Year Ended December 31, Cumulative Tax Reform Adjustment 2017 2018 Accounting Status Amount Accounting Status Amount Income tax benefit from the remeasurement of U.S. deferred income tax assets and liabilities Complete $ (2,643 ) Complete $ — $ (2,643 ) Tax on the deemed repatriation of the accumulated earnings and profits of our international subsidiaries Provisional 734 Complete 6 740 Recognition of foreign withholding tax, net of U.S. federal tax benefit Complete 47 Complete — 47 Deductibility of certain executive compensation expense Incomplete — Complete 5 5 Income tax expense associated with the statutory income tax rate differential on accrual to return adjustments that were identified upon completion of our U.S. federal income tax return in 2018 Incomplete — Complete 9 9 Foreign tax credit available to offset the tax on deemed repatriation of the accumulated earnings and profits of our international subsidiaries Incomplete — Complete (32 ) (32 ) Tax Reform benefit $ (1,862 ) $ (12 ) $ (1,874 ) |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | 16. EARNINGS PER COMMON SHARE Earnings per common share were computed as follows (dollars and shares in millions, except per share amounts): Year Ended December 31, 2019 2018 2017 Earnings per common share Net income attributable to Valero stockholders $ 2,422 $ 3,122 $ 4,065 Less: Income allocated to participating securities 7 9 14 Net income available to common shareholders $ 2,415 $ 3,113 $ 4,051 Weighted-average common shares outstanding 413 426 442 Earnings per common share $ 5.84 $ 7.30 $ 9.17 Earnings per common share – assuming dilution Net income attributable to Valero stockholders $ 2,422 $ 3,122 $ 4,065 Weighted-average common shares outstanding 413 426 442 Effect of dilutive securities 1 2 2 Weighted-average common shares outstanding – assuming dilution 414 428 444 Earnings per common share – assuming dilution $ 5.84 $ 7.29 $ 9.16 Participating securities include restricted stock and performance awards granted under our 2011 Omnibus Stock Incentive Plan. Dilutive securities include participating securities as well as outstanding stock options granted under our 2011 Omnibus Stock Incentive Plan. |
Revenues and Segment Informatio
Revenues and Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
REVENUES AND SEGMENT INFORMATION | 17. REVENUES AND SEGMENT INFORMATION Revenue from Contracts with Customers Disaggregation of Revenue Revenue is presented in the table below under “Segment Information” disaggregated by product because this is the level of disaggregation that management has determined to be beneficial to users of our financial statements. Receivables from Contracts with Customers Our receivables from contracts with customers are included in “receivables, net” as presented in Note 3 . Contract Liabilities from Contracts with Customers Our contract liabilities from contracts with customers are included in accrued expenses as presented in Note 8 . Substantially all of the contract liabilities as of December 31, 2018 were recognized into revenue during the year ended December 31, 2019 . Remaining Performance Obligations We have spot and term contracts with customers, the majority of which are spot contracts with no remaining performance obligations. We do not disclose remaining performance obligations for contracts that have terms of one year or less. The transaction price for our remaining term contracts includes a fixed component and variable consideration (i.e., a commodity price), both of which are allocated entirely to a wholly unsatisfied promise to transfer a distinct good that forms part of a single performance obligation. The fixed component is not material and the variable consideration is highly uncertain. Therefore, as of December 31, 2019 , we have not disclosed the aggregate amount of the transaction price allocated to our remaining performance obligations. Segment Information Effective January 1, 2019, we revised our reportable segments to align with certain changes in how our chief operating decision maker manages and allocates resources to our business. Accordingly, we created a new reportable segment — renewable diesel — because of the growing importance of renewable fuels in the market and the growth of our investments in renewable fuels production. The renewable diesel segment includes the operations of DGD, which were transferred from the refining segment on January 1, 2019. Also effective January 1, 2019, we no longer have a VLP segment, and we include the operations of VLP in our refining segment. This change was made because of the Merger Transaction with VLP, as described in Note 2 , and the resulting change in how we manage VLP’s operations. We no longer manage VLP as a business but as logistics assets that support the operations of our refining segment. Our prior period segment information has been retrospectively adjusted to reflect our current segment presentation. We have three reportable segments — refining, ethanol, and renewable diesel. Each segment is a strategic business unit that offers different products and services by employing unique technologies and marketing strategies and whose operations and operating performance are managed and evaluated separately. Operating performance is measured based on the operating income generated by the segment, which includes revenues and expenses that are directly attributable to the management of the respective segment. Intersegment sales are generally derived from transactions made at prevailing market rates. The following is a description of each segment’s business operations. • The refining segment includes the operations of our 15 petroleum refineries, the associated marketing activities, and logistics assets that support our refining operations. The principal products manufactured by our refineries and sold by this segment include gasolines and blendstocks, distillates, and other products. • The ethanol segment includes the operations of our 14 ethanol plants, the associated marketing activities, and logistics assets that support our ethanol operations. The principal products manufactured by our ethanol plants are ethanol and distillers grains. This segment sells some ethanol to the refining segment for blending into gasoline, which is sold to that segment’s customers as a finished gasoline product. • The renewable diesel segment includes the operations of DGD, our consolidated joint venture as discussed in Note 12 . The principal product manufactured by DGD and sold by this segment is renewable diesel. This segment sells some renewable diesel to the refining segment, which is then sold to that segment’s customers. Operations that are not included in any of the reportable segments are included in the corporate category. The following tables reflect information about our operating income and total expenditures for long-lived assets by reportable segment (in millions): Refining Ethanol Renewable Diesel Corporate and Eliminations Total Year ended December 31, 2019 Revenues: Revenues from external customers $ 103,746 $ 3,606 $ 970 $ 2 $ 108,324 Intersegment revenues 18 231 247 (496 ) — Total revenues 103,764 3,837 1,217 (494 ) 108,324 Cost of sales: Cost of materials and other 93,371 3,239 360 (494 ) 96,476 Operating expenses (excluding depreciation and amortization expense reflected below) 4,289 504 75 — 4,868 Depreciation and amortization expense 2,062 90 50 — 2,202 Total cost of sales 99,722 3,833 485 (494 ) 103,546 Other operating expenses 20 1 — — 21 General and administrative expenses (excluding depreciation and amortization expense reflected below) — — — 868 868 Depreciation and amortization expense — — — 53 53 Operating income by segment $ 4,022 $ 3 $ 732 $ (921 ) $ 3,836 Total expenditures for long-lived assets (a) $ 2,581 $ 47 $ 160 $ 58 $ 2,846 __________________________ (a) See note on page 123 . Refining Ethanol Renewable Diesel Corporate and Eliminations Total Year ended December 31, 2018 Revenues: Revenues from external customers $ 113,093 $ 3,428 $ 508 $ 4 $ 117,033 Intersegment revenues 25 210 170 (405 ) — Total revenues 113,118 3,638 678 (401 ) 117,033 Cost of sales: Cost of materials and other 101,866 3,008 262 (404 ) 104,732 Operating expenses (excluding depreciation and amortization expense reflected below) 4,154 470 66 — 4,690 Depreciation and amortization expense 1,910 78 29 — 2,017 Total cost of sales 107,930 3,556 357 (404 ) 111,439 Other operating expenses 45 — — — 45 General and administrative expenses (excluding depreciation and amortization expense reflected below) — — — 925 925 Depreciation and amortization expense — — — 52 52 Operating income by segment $ 5,143 $ 82 $ 321 $ (974 ) $ 4,572 Total expenditures for long-lived assets (a) $ 2,767 $ 373 $ 192 $ 44 $ 3,376 Year ended December 31, 2017 Revenues: Revenues from external customers $ 90,258 $ 3,324 $ 393 $ 5 $ 93,980 Intersegment revenues 8 176 241 (425 ) — Total revenues 90,266 3,500 634 (420 ) 93,980 Cost of sales: Cost of materials and other 80,160 2,804 498 (425 ) 83,037 Operating expenses (excluding depreciation and amortization expense reflected below) 4,014 443 47 — 4,504 Depreciation and amortization expense 1,824 81 29 — 1,934 Total cost of sales 85,998 3,328 574 (425 ) 89,475 Other operating expenses 61 — — — 61 General and administrative expenses (excluding depreciation and amortization expense reflected below) — — — 829 829 Depreciation and amortization expense — — — 52 52 Operating income by segment $ 4,207 $ 172 $ 60 $ (876 ) $ 3,563 Total expenditures for long-lived assets (a) $ 1,732 $ 84 $ 88 $ 44 $ 1,948 __________________________ (a) Total expenditures for long-lived assets includes amounts related to capital expenditures; deferred turnaround and catalyst costs; and property, plant, and equipment for acquisitions. The following table provides a disaggregation of revenues from external customers for our principal products by reportable segment (in millions). Year Ended December 31, 2019 2018 2017 Refining: Gasolines and blendstocks $ 42,798 $ 46,596 $ 40,347 Distillates 51,942 55,037 41,680 Other product revenues 9,006 11,460 8,231 Total refining revenues 103,746 113,093 90,258 Ethanol: Ethanol 2,889 2,713 2,764 Distillers grains 717 715 560 Total ethanol revenues 3,606 3,428 3,324 Renewable diesel: Renewable diesel 970 508 393 Corporate – other revenues 2 4 5 Revenues $ 108,324 $ 117,033 $ 93,980 Revenues by geographic area are shown in the following table (in millions). The geographic area is based on location of customer and no customer accounted for 10 percent or more of our revenues. Year Ended December 31, 2019 2018 2017 U.S. $ 77,173 $ 82,992 $ 66,614 Canada 7,915 9,211 7,039 U.K. and Ireland 13,584 15,208 11,556 Other countries 9,652 9,622 8,771 Revenues $ 108,324 $ 117,033 $ 93,980 Long-lived assets include property, plant, and equipment and certain long-lived assets included in “deferred charges and other assets, net.” Long-lived assets by geographic area consisted of the following (in millions): December 31, 2019 2018 U.S. $ 27,485 $ 27,475 Canada 1,886 1,798 U.K. and Ireland 1,232 1,113 Other countries 497 266 Total long-lived assets $ 31,100 $ 30,652 Total assets by reportable segment were as follows (in millions): December 31, 2019 2018 Refining $ 47,067 $ 43,488 Ethanol 1,615 1,691 Renewable diesel 1,412 787 Corporate and eliminations 3,770 4,189 Total assets $ 53,864 $ 50,155 As of December 31, 2019 and 2018 , our investments in unconsolidated joint ventures accounted for under the equity method were $942 million and $542 million , respectively, all of which related to the refining segment and are reflected in “deferred charges and other assets, net” as presented in Note 7 . |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | 18. 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): Year Ended December 31, 2019 2018 2017 Decrease (increase) in current assets: Receivables, net $ (1,468 ) $ (457 ) $ (870 ) Inventories (385 ) (197 ) (516 ) Prepaid expenses and other 427 (77 ) 151 Increase (decrease) in current liabilities: Accounts payable 1,534 304 1,842 Accrued expenses (27 ) (113 ) 21 Taxes other than income taxes payable 60 (73 ) 172 Income taxes payable 153 (684 ) 489 Changes in current assets and current liabilities $ 294 $ (1,297 ) $ 1,289 Cash flows related to interest and income taxes were as follows (in millions): Year Ended December 31, 2019 2018 2017 Interest paid in excess of amount capitalized, including interest on finance leases $ 452 $ 463 $ 457 Income taxes paid (refunded), net (see Note 15) (116 ) 1,361 410 Supplemental cash flow information related to our operating and finance leases was as follows (in millions): Year Ended December 31, 2019 Operating Leases Finance Leases Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows $ 441 $ 50 Investing cash flows 1 — Financing cash flows — 34 Changes in lease balances resulting from new and modified leases (a) 1,756 239 ___________________ (a) Includes noncash activity of $1.3 billion for operating lease ROU assets recorded on January 1, 2019 upon adoption of Topic 842. Noncash investing and financing activities for the year ended December 31, 2019 also included the derecognition of the property, plant, and equipment and the related long-term liability associated with a build-to-suit lease arrangement with respect to the MVP Terminal, and the subsequent recognition of our investment in MVP, which is the unconsolidated joint venture that owns the MVP Terminal, as described in Note 10 . Noncash investing and financing activities for the years ended December 31, 2018 and 2017 included the recognition of (i) finance lease assets and related obligations primarily for the lease of storage tanks and (ii) terminal assets and related obligations under owner accounting as described in Note 10 . |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 19. FAIR VALUE MEASUREMENTS General U.S. GAAP requires or permits certain assets and liabilities to be measured at fair value on a recurring or nonrecurring basis in our balance sheets, and those assets and liabilities are presented below under “Recurring Fair Value Measurements” and “Nonrecurring Fair Value Measurements.” Assets and liabilities measured at fair value on a recurring basis, such as derivative financial instruments, are measured at fair value at the end of each reporting period. Assets and liabilities measured at fair value on a nonrecurring basis, such as the impairment of property, plant and equipment, are measured at fair value in particular circumstances. U.S. GAAP also requires the disclosure of the fair values of financial instruments when an option to elect fair value accounting has been provided, but such election has not been made. A debt obligation is an example of such a financial instrument. The disclosure of the fair values of financial instruments not recognized at fair value in our balance sheet is presented below under “Other Financial Instruments.” 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. 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. Recurring Fair Value Measurements The following tables present information (in millions) about our assets and liabilities recognized at their fair values in our balance sheets categorized according to the fair value hierarchy of the inputs utilized by us to determine the fair values as of December 31, 2019 and 2018 . We have elected to offset the fair value amounts recognized for multiple similar derivative contracts executed with the same counterparty, including any related cash collateral assets or obligations as shown below; however, fair value amounts by hierarchy level are presented in the following tables on a gross basis. We have no derivative contracts that are subject to master netting arrangements that are reflected gross on the balance sheet. December 31, 2019 Total Gross Fair Value Effect of Counter- party Netting Effect of Cash Collateral Netting Net Carrying Value on Balance Sheet Cash Collateral Paid or Received Not Offset Fair Value Hierarchy Level 1 Level 2 Level 3 Assets Commodity derivative contracts $ 617 $ — $ — $ 617 $ (612 ) $ — $ 5 $ — Foreign currency contracts 27 — — 27 n/a n/a 27 n/a Investments of certain benefit plans 65 — 9 74 n/a n/a 74 n/a Total $ 709 $ — $ 9 $ 718 $ (612 ) $ — $ 106 Liabilities Commodity derivative contracts $ 668 $ — $ — $ 668 $ (612 ) $ (56 ) $ — $ (84 ) Environmental credit obligations — 2 — 2 n/a n/a 2 n/a Physical purchase contracts — 3 — 3 n/a n/a 3 n/a Foreign currency contracts 10 — — 10 n/a n/a 10 n/a Total $ 678 $ 5 $ — $ 683 $ (612 ) $ (56 ) $ 15 December 31, 2018 Total Gross Fair Value Effect of Counter- party Netting Effect of Cash Collateral Netting Net Carrying Value on Balance Sheet Cash Collateral Paid or Received Not Offset Fair Value Hierarchy Level 1 Level 2 Level 3 Assets Commodity derivative contracts $ 2,792 $ — $ — $ 2,792 $ (2,669 ) $ (34 ) $ 89 $ — Foreign currency contracts 4 — — 4 n/a n/a 4 n/a Investments of certain benefit plans 60 — 9 69 n/a n/a 69 n/a Total $ 2,856 $ — $ 9 $ 2,865 $ (2,669 ) $ (34 ) $ 162 Liabilities Commodity derivative contracts $ 2,681 $ — $ — $ 2,681 $ (2,669 ) $ (12 ) $ — $ (136 ) Environmental credit obligations — 13 — 13 n/a n/a 13 n/a Physical purchase contracts — 5 — 5 n/a n/a 5 n/a Foreign currency contracts 1 — — 1 n/a n/a 1 n/a Total $ 2,682 $ 18 $ — $ 2,700 $ (2,669 ) $ (12 ) $ 19 A description of our assets and liabilities recognized at fair value along with the valuation methods and inputs we used to develop their fair value measurements are as follows: • Commodity derivative contracts consist primarily of exchange-traded futures, which are used to reduce the impact of price volatility on our results of operations and cash flows as discussed in Note 20 . These contracts are measured at fair value using a market approach based on quoted prices from the commodity exchange and are categorized in Level 1 of the fair value hierarchy. • Physical purchase contracts represent the fair value of fixed-price corn purchase contracts. The fair values of these purchase contracts are measured using a market approach based on quoted prices from the commodity exchange or an independent pricing service and are categorized in Level 2 of the fair value hierarchy. • Investments of certain benefit plans consist of investment securities held by trusts for the purpose of satisfying a portion of our obligations under certain U.S. nonqualified benefit plans. The plan assets categorized in Level 1 of the fair value hierarchy are measured at fair value using a market approach based on quoted prices from national securities exchanges. The plan assets categorized in Level 3 of the fair value hierarchy represent insurance contracts, the fair value of which is provided by the insurer. • Foreign currency contracts consist of foreign currency exchange and purchase contracts and foreign currency swap agreements related to our international operations to manage our exposure to exchange rate fluctuations on transactions denominated in currencies other than the local (functional) currencies of our operations. These contracts are valued based on quoted foreign currency exchange rates and are categorized in Level 1 of the fair value hierarchy. • Environmental credit obligations represent our liability for the purchase of (i) biofuel credits (primarily RINs in the U.S.) needed to satisfy our obligation to blend biofuels into the products we produce and (ii) emission credits under the California Global Warming Solutions Act (the California cap-and-trade system, also known as AB 32) and similar programs, (collectively, the cap-and-trade systems). To the degree we are unable to blend biofuels (such as ethanol and biodiesel) at percentages required under the biofuel programs, we must purchase biofuel credits to comply with these programs. Under the cap-and-trade systems, we must purchase emission credits to comply with these systems. These programs are described in Note 20 under “Environmental Compliance Program Price Risk.” The liability for environmental credits is based on our deficit for such credits as of the balance sheet date, if any, after considering any credits acquired or under contract, and is equal to the product of the credits deficit and the market price of these credits as of the balance sheet date. The environmental credit obligations are categorized in Level 2 of the fair value hierarchy and are measured at fair value using the market approach based on quoted prices from an independent pricing service. There were no transfers into or out of Level 3 for assets and liabilities held as of December 31, 2019 and 2018 that were measured at fair value on a recurring basis. There was no significant activity during the years ended December 31, 2019 , 2018 , and 2017 related to the fair value amounts categorized in Level 3 as of December 31, 2019 and 2018 . Nonrecurring Fair Value Measurements There were no assets or liabilities that were measured at fair value on a nonrecurring basis as of December 31, 2019 and 2018 . Other Financial Instruments Financial instruments that we recognize in our balance sheets at their carrying amounts are shown in the following table along with their associated fair values (in millions): December 31, 2019 December 31, 2018 Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Financial assets Cash and cash equivalents Level 1 $ 2,583 $ 2,583 $ 2,982 $ 2,982 Financial liabilities Debt (excluding finance leases) Level 2 8,881 10,583 8,503 8,986 |
Price Risk Management Activitie
Price Risk Management Activities | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
PRICE RISK MANAGEMENT ACTIVITIES | 20. PRICE RISK MANAGEMENT ACTIVITIES We are exposed to market risks primarily related to the volatility in the price of commodities, foreign currency exchange rates, and the price of credits needed to comply with various government and regulatory programs. We enter into derivative instruments to manage some of these risks, including derivative instruments related to the various commodities we purchase or produce, and foreign currency exchange and purchase contracts, as described below under “Risk Management Activities by Type of Risk.” These derivative instruments are recorded as either assets or liabilities measured at their fair values (see Note 19 ), as summarized below under “Fair Values of Derivative Instruments.” The effect of these derivative instruments on our income is summarized below under “Effect of Derivative Instruments on Income.” Risk Management Activities by Type of Risk Commodity Price Risk We are exposed to market risks related to the volatility in the price of crude oil, refined petroleum products (primarily gasoline and distillate), renewable diesel, grain (primarily corn), renewable diesel feedstocks, and natural gas used in our operations. To reduce the impact of price volatility on our results of operations and cash flows, we use commodity derivative instruments, such as futures and options. Our positions in commodity derivative instruments are monitored and managed on a daily basis by our risk control group to ensure compliance with our stated risk management policy that has been approved by our board of directors. We primarily use commodity derivative instruments as cash flow hedges and economic hedges. Our objectives for entering into each type of hedge is described below. • Cash flow hedges – The objective of our cash flow hedges is to lock in the price of forecasted (i) feedstock, refined petroleum product, or natural gas purchases, or (ii) refined petroleum product or renewable diesel sales at existing market prices that we deem favorable. • Economic hedges – Our objectives for holding economic hedges are to (i) manage price volatility in certain feedstock and refined petroleum product inventories and fixed-price purchase contracts, and (ii) lock in the price of forecasted feedstock, refined petroleum product, or natural gas purchases or refined petroleum product or renewable diesel sales at existing market prices that we deem favorable. As of December 31, 2019 , we had the following outstanding commodity derivative instruments that were used as cash flow hedges and economic hedges, as well as commodity derivative instruments related to the physical purchase of corn at a fixed price. The information presents the notional volume of outstanding contracts by type of instrument and year of maturity (volumes in thousands of barrels, except corn contracts that are presented in thousands of bushels). Notional Contract Volumes by Year of Maturity 2020 2021 Derivatives designated as cash flow hedges Renewable diesel: Futures – long 995 — Futures – short 2,492 — Derivatives designated as economic hedges Crude oil and refined petroleum products: Futures – long 73,348 2 Futures – short 76,045 — Options – long 1,550 — Options – short 1,550 — Corn: Futures – long 50,120 — Futures – short 66,575 295 Physical contracts – long 22,055 306 Foreign Currency Risk We are exposed to exchange rate fluctuations on transactions related to our international operations that are denominated in currencies other than the local (functional) currencies of our operations. To manage our exposure to these exchange rate fluctuations, we use foreign currency contracts. These contracts are not designated as hedging instruments for accounting purposes and therefore are classified as economic hedges. As of December 31, 2019 , we had foreign currency contracts to purchase $739 million of U.S. dollars and $2.3 billion of U.S. dollar equivalent Canadian dollars. All of these commitments matured on or before February 15, 2020 . Environmental Compliance Program Price Risk We are exposed to market risk related to the volatility in the price of credits needed to comply with various governmental and regulatory environmental compliance programs. To manage this risk, we enter into contracts to purchase these credits when prices are deemed favorable. Some of these contracts are derivative instruments; however, we elect the normal purchase exception and do not record these contracts at their fair values. Certain of these programs require us to blend biofuels into the products we produce, and we are subject to such programs in most of the countries in which we operate. These countries set annual quotas for the percentage of biofuels that must be blended into the motor fuels consumed in these countries. As a producer of motor fuels from petroleum, we are obligated to blend biofuels into the products we produce at a rate that is at least equal to the applicable quota. To the degree we are unable to blend at the applicable rate, we must purchase biofuel credits (primarily RINs in the U.S.). We are exposed to the volatility in the market price of these credits, and we manage that risk by purchasing biofuel credits when prices are deemed favorable. For the years ended December 31, 2019 , 2018 , and 2017 , the cost of meeting our obligations under these compliance programs was $318 million , $536 million , and $942 million , respectively. These amounts are reflected in cost of materials and other. We are subject to additional requirements under GHG emission programs, including the cap-and-trade systems, as discussed in Note 19 . Under these cap-and-trade systems, we purchase various GHG emission credits available on the open market. Therefore, we are exposed to the volatility in the market price of these credits. The cost to implement certain provisions of the cap-and-trade systems are significant; however, we recovered the majority of these costs from our customers for the years ended December 31, 2019 , 2018 , and 2017 and expect to continue to recover the majority of these costs in the future. For the years ended December 31, 2019 , 2018 , and 2017 , the net cost of meeting our obligations under these compliance programs was immaterial. Fair Values of Derivative Instruments The following tables provide information about the fair values of our derivative instruments as of December 31, 2019 and 2018 (in millions) and the line items in the balance sheets in which the fair values are reflected. See Note 19 for additional information related to the fair values of our derivative instruments. As indicated in Note 19 , we net fair value amounts recognized for multiple similar derivative contracts executed with the same counterparty under master netting arrangements, including cash collateral assets and obligations. The following tables, however, are presented on a gross asset and gross liability basis, which results in the reflection of certain assets in liability accounts and certain liabilities in asset accounts. Balance Sheet Location December 31, 2019 December 31, 2018 Asset Liability Asset Liability Derivatives designated as hedging instruments Commodity contracts Receivables, net $ 9 $ 20 $ — $ — Derivatives not designated as hedging instruments Commodity contracts Receivables, net $ 608 $ 648 $ 2,792 $ 2,681 Physical purchase contracts Inventories — 3 — 5 Foreign currency contracts Receivables, net 27 — 4 — Foreign currency contracts Accrued expenses — 10 — 1 Total $ 635 $ 661 $ 2,796 $ 2,687 Market Risk Our price risk management activities involve the receipt or payment of fixed price commitments into the future. These transactions give rise to market risk, which is the risk that future changes in market conditions may make an instrument less valuable. We closely monitor and manage our exposure to market risk on a daily basis in accordance with policies approved by our board of directors. Market risks are monitored by our risk control group to ensure compliance with our stated risk management policy. We do not require any collateral or other security to support derivative instruments into which we enter. We also do not have any derivative instruments that require us to maintain a minimum investment-grade credit rating. Effect of Derivative Instruments on Income The following table provides information about the gain (loss) recognized in income on our derivative instruments and the line items in the statements of income in which such gains (losses) are reflected (in millions). Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivatives Year Ended December 31, 2019 2018 2017 Commodity contracts Revenues $ 5 $ — $ — Commodity contracts Cost of materials and other (68 ) (165 ) (278 ) Commodity contracts Operating expenses (excluding depreciation and amortization expense) — 7 — Foreign currency contracts Cost of materials and other (21 ) 56 (40 ) Foreign currency contracts Other income, net 75 (43 ) — |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | 21. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS In connection with the completion of the Merger Transaction as described in Note 2 , Valero Energy Corporation, the parent company, entered into a guarantee agreement to fully and unconditionally guarantee the prompt payment, when due, of the following debt issued by Valero Energy Partners LP, an indirect wholly owned subsidiary of Valero Energy Corporation, that was outstanding as of December 31, 2019 : • 4.375 percent Senior Notes due December 15, 2026 , and • 4.5 percent Senior Notes due March 15, 2028 . The following condensed consolidating financial information is provided as an alternative to providing separate financial statements for Valero Energy Partners LP, which has no independent assets or operations. The financial position, results of operations, and cash flows of Valero Energy Partners LP’s wholly owned subsidiaries are included in “Other Non-Guarantor Subsidiaries.” The accounts for all companies reflected herein are presented using the equity method of accounting for investments in subsidiaries. Condensed Consolidating Balance Sheet December 31, 2019 (in millions) Valero Valero Other Non- Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 912 $ — $ 1,671 $ — $ 2,583 Receivables, net — — 8,904 — 8,904 Receivables from affiliates 4,336 — 13,806 (18,142 ) — Inventories — — 7,013 — 7,013 Prepaid expenses and other 63 — 406 — 469 Total current assets 5,311 — 31,800 (18,142 ) 18,969 Property, plant and equipment, at cost — — 44,294 — 44,294 Accumulated depreciation — — (15,030 ) — (15,030 ) Property, plant and equipment, net — — 29,264 — 29,264 Investment in affiliates 37,902 2,673 382 (40,957 ) — Deferred charges and other assets, net 771 — 4,860 — 5,631 Total assets $ 43,984 $ 2,673 $ 66,306 $ (59,099 ) $ 53,864 LIABILITIES AND EQUITY Current liabilities: Current portion of debt and finance lease obligations $ — $ — $ 494 $ — $ 494 Accounts payable — — 10,205 — 10,205 Accounts payable to affiliates 12,515 1,291 4,336 (18,142 ) — Accrued expenses 120 7 822 — 949 Taxes other than income taxes payable — — 1,304 — 1,304 Income taxes payable 108 — 100 — 208 Total current liabilities 12,743 1,298 17,261 (18,142 ) 13,160 Debt and finance lease obligations, less current portion 7,095 991 1,092 — 9,178 Deferred income tax liabilities — 2 5,101 — 5,103 Other long-term liabilities 2,343 — 1,544 — 3,887 Equity: Stockholders’ equity: Common stock 7 — 1 (1 ) 7 Additional paid-in capital 6,821 — 9,771 (9,771 ) 6,821 Treasury stock, at cost (15,648 ) — — — (15,648 ) Retained earnings 31,974 — 31,636 (31,636 ) 31,974 Partners’ equity — 382 — (382 ) — Accumulated other comprehensive loss (1,351 ) — (833 ) 833 (1,351 ) Total stockholders’ equity 21,803 382 40,575 (40,957 ) 21,803 Noncontrolling interests — — 733 — 733 Total equity 21,803 382 41,308 (40,957 ) 22,536 Total liabilities and equity $ 43,984 $ 2,673 $ 66,306 $ (59,099 ) $ 53,864 Condensed Consolidating Balance Sheet December 31, 2018 (in millions) Valero Valero Other Non- 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 Year Ended December 31, 2019 (in millions) Valero Valero Other Non- Eliminations Consolidated Revenues $ — $ — $ 108,324 $ — $ 108,324 Cost of sales: Cost of materials and other — — 96,476 — 96,476 Operating expenses (excluding depreciation and amortization expense reflected below) — — 4,868 — 4,868 Depreciation and amortization expense — — 2,202 — 2,202 Total cost of sales — — 103,546 — 103,546 Other operating expenses — — 21 — 21 General and administrative expenses (excluding depreciation and amortization expense reflected below) 6 — 862 — 868 Depreciation and amortization expense — — 53 — 53 Operating income (loss) (6 ) — 3,842 — 3,836 Equity in earnings of subsidiaries 3,006 406 357 (3,769 ) — Other income, net 193 — 625 (714 ) 104 Interest and debt expense, net of capitalized interest (927 ) (47 ) (194 ) 714 (454 ) Income before income tax expense (benefit) 2,266 359 4,630 (3,769 ) 3,486 Income tax expense (benefit) (156 ) — 858 — 702 Net income 2,422 359 3,772 (3,769 ) 2,784 Less: Net income attributable to noncontrolling interests — — 360 2 362 Net income attributable to stockholders $ 2,422 $ 359 $ 3,412 $ (3,771 ) $ 2,422 Condensed Consolidating Statement of Income Year Ended December 31, 2018 (in millions) Valero Valero Other Non- Eliminations Consolidated Revenues $ — $ — $ 117,033 $ — $ 117,033 Cost of sales: Cost of materials and other — — 104,732 — 104,732 Operating expenses (excluding depreciation and amortization expense reflected below) — — 4,690 — 4,690 Depreciation and amortization expense — — 2,017 — 2,017 Total cost of sales — — 111,439 — 111,439 Other operating expenses — — 45 — 45 General and administrative expenses (excluding depreciation and amortization expense reflected below) 2 — 923 — 925 Depreciation and amortization expense — — 52 — 52 Operating income (loss) (2 ) — 4,574 — 4,572 Equity in earnings of subsidiaries 3,724 319 196 (4,239 ) — Other income, net 220 2 621 (713 ) 130 Interest and debt expense, net of capitalized interest (913 ) (55 ) (215 ) 713 (470 ) Income before income tax expense (benefit) 3,029 266 5,176 (4,239 ) 4,232 Income tax expense (benefit) (93 ) 2 970 — 879 Net income 3,122 264 4,206 (4,239 ) 3,353 Less: Net income attributable to noncontrolling interests — — 163 68 231 Net income attributable to stockholders $ 3,122 $ 264 $ 4,043 $ (4,307 ) $ 3,122 Condensed Consolidating Statement of Income Year Ended December 31, 2017 (in millions) Valero Valero Other Non- Eliminations Consolidated Revenues $ — $ — $ 93,980 $ — $ 93,980 Cost of sales: Cost of materials and other — — 83,037 — 83,037 Operating expenses (excluding depreciation and amortization expense reflected below) — — 4,504 — 4,504 Depreciation and amortization expense — — 1,934 — 1,934 Total cost of sales — — 89,475 — 89,475 Other operating expenses — — 61 — 61 General and administrative expenses (excluding depreciation and amortization expense reflected below) 6 — 823 — 829 Depreciation and amortization expense — — 52 — 52 Operating income (loss) (6 ) — 3,569 — 3,563 Equity in earnings of subsidiaries 5,236 275 176 (5,687 ) — Other income, net 290 1 415 (594 ) 112 Interest and debt expense, net of capitalized interest (780 ) (36 ) (246 ) 594 (468 ) Income before income tax expense (benefit) 4,740 240 3,914 (5,687 ) 3,207 Income tax expense (benefit) 675 2 (1,626 ) — (949 ) Net income 4,065 238 5,540 (5,687 ) 4,156 Less: Net income attributable to noncontrolling interests — — 29 62 91 Net income attributable to stockholders $ 4,065 $ 238 $ 5,511 $ (5,749 ) $ 4,065 Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2019 (in millions) Valero Valero Other Non- Eliminations Consolidated Net income $ 2,422 $ 359 $ 3,772 $ (3,769 ) $ 2,784 Other comprehensive income: Foreign currency translation adjustment 346 — 286 (283 ) 349 Net loss on pension and other postretirement benefits (234 ) — (19 ) 19 (234 ) Net loss on cash flow hedges (4 ) — (8 ) 4 (8 ) Other comprehensive income before income tax benefit 108 — 259 (260 ) 107 Income tax benefit related to items of other comprehensive income (48 ) — (4 ) 4 (48 ) Other comprehensive income 156 — 263 (264 ) 155 Comprehensive income 2,578 359 4,035 (4,033 ) 2,939 Less: Comprehensive income attributable to noncontrolling interests — — 359 2 361 Comprehensive income attributable to stockholders $ 2,578 $ 359 $ 3,676 $ (4,035 ) $ 2,578 Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2018 (in millions) Valero Valero Other Non- Eliminations Consolidated Net income $ 3,122 $ 264 $ 4,206 $ (4,239 ) $ 3,353 Other comprehensive loss: Foreign currency translation adjustment (515 ) — (419 ) 417 (517 ) Net gain on pension and other postretirement benefits 49 — 18 (18 ) 49 Other comprehensive loss before income tax expense (466 ) — (401 ) 399 (468 ) Income tax expense related to items of other comprehensive loss 10 — 3 (3 ) 10 Other comprehensive loss (476 ) — (404 ) 402 (478 ) Comprehensive income 2,646 264 3,802 (3,837 ) 2,875 Less: Comprehensive income attributable to noncontrolling interests — — 161 68 229 Comprehensive income attributable to stockholders $ 2,646 $ 264 $ 3,641 $ (3,905 ) $ 2,646 Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2017 (in millions) Valero Valero Other Non- Eliminations Consolidated Net income $ 4,065 $ 238 $ 5,540 $ (5,687 ) $ 4,156 Other comprehensive income: Foreign currency translation adjustment 514 — 434 (434 ) 514 Net gain (loss) on pension and other postretirement benefits (65 ) — 4 (4 ) (65 ) Other comprehensive income before income tax expense (benefit) 449 — 438 (438 ) 449 Income tax expense (benefit) related to items of other comprehensive income (21 ) — 1 (1 ) (21 ) Other comprehensive income 470 — 437 (437 ) 470 Comprehensive income 4,535 238 5,977 (6,124 ) 4,626 Less: Comprehensive income attributable to noncontrolling interests — — 29 62 91 Comprehensive income attributable to stockholders $ 4,535 $ 238 $ 5,948 $ (6,186 ) $ 4,535 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2019 (in millions) Valero Valero Other Non- Eliminations Consolidated Net cash provided by (used in) operating activities $ (131 ) $ (46 ) $ 6,165 $ (457 ) $ 5,531 Cash flows from investing activities: Capital expenditures (excluding VIEs) — — (1,627 ) — (1,627 ) Capital expenditures of VIEs: DGD — — (142 ) — (142 ) Other VIEs — — (225 ) — (225 ) Deferred turnaround and catalyst cost expenditures (excluding VIEs) — — (762 ) — (762 ) Deferred turnaround and catalyst cost expenditures of DGD — — (18 ) — (18 ) Investments in unconsolidated joint ventures — — (164 ) — (164 ) Acquisitions of ethanol plants — — (3 ) — (3 ) Acquisitions of undivided interests — — (72 ) — (72 ) Intercompany investing activities 395 2 (2,973 ) 2,576 — Other investing activities, net — — 12 — 12 Net cash provided by (used in) investing activities 395 2 (5,974 ) 2,576 (3,001 ) Cash flows from financing activities: Proceeds from debt issuances and borrowings (excluding VIEs) 992 — 900 — 1,892 Proceeds from borrowings of VIEs — — 239 — 239 Repayments of debt and finance lease obligations (excluding VIEs) (871 ) — (934 ) — (1,805 ) Repayments of debt of VIEs — — (6 ) — (6 ) Intercompany financing activities 2,520 268 (212 ) (2,576 ) — Purchases of common stock for treasury (777 ) — — — (777 ) Common stock dividends (1,492 ) — (81 ) 81 (1,492 ) Acquisition of VLP publicly held common units — — (950 ) — (950 ) Distributions to noncontrolling interests and unitholders of VLP — (376 ) (70 ) 376 (70 ) Other financing activities, net (15 ) — (13 ) — (28 ) Net cash provided by (used in) financing activities 357 (108 ) (1,127 ) (2,119 ) (2,997 ) Effect of foreign exchange rate changes on cash — — 68 — 68 Net increase (decrease) in cash and cash equivalents 621 (152 ) (868 ) — (399 ) Cash and cash equivalents at beginning of year 291 152 2,539 — 2,982 Cash and cash equivalents at end of year $ 912 $ — $ 1,671 $ — $ 2,583 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2018 (in millions) Valero Valero Other Non- Eliminations Consolidated Net cash provided by (used in) operating activities $ (1,207 ) $ (51 ) $ 5,828 $ (199 ) $ 4,371 Cash flows from investing activities: Capital expenditures (excluding VIEs) — — (1,463 ) — (1,463 ) Capital expenditures of VIEs: DGD — — (165 ) — (165 ) Other VIEs — — (124 ) — (124 ) Deferred turnaround and catalyst cost expenditures (excluding VIEs) — — (888 ) — (888 ) Deferred turnaround and catalyst cost expenditures of DGD — — (27 ) — (27 ) Investments in unconsolidated joint ventures — — (181 ) — (181 ) Peru Acquisition, net of cash acquired — — (468 ) — (468 ) Acquisitions of ethanol plants — — (320 ) — (320 ) Acquisitions of undivided interests — — (212 ) — (212 ) Minor acquisitions — — (88 ) — (88 ) Intercompany investing activities 758 102 (2,381 ) 1,521 — Other investing activities, net — — 8 — 8 Net cash provided by (used in) investing activities 758 102 (6,309 ) 1,521 (3,928 ) Cash flows from financing activities: Proceeds from debt issuances and borrowings (excluding VIEs) 750 498 10 — 1,258 Proceeds from borrowings of VIEs — — 109 — 109 Repayments of debt and finance lease obligations (excluding VIEs) (787 ) (410 ) (156 ) — (1,353 ) Repayments of debt of VIEs — — (6 ) — (6 ) Intercompany financing activities 2,106 190 (775 ) (1,521 ) — Purchases of common stock for treasury (1,708 ) — — — (1,708 ) Common stock dividends (1,369 ) — (32 ) 32 (1,369 ) Contributions to noncontrolling interests — — 32 — 32 Distributions to noncontrolling interests and unitholders of VLP — (215 ) (68 ) 167 (116 ) Other financing activities, net 2 (4 ) (13 ) — (15 ) Net cash provided by (used in) financing activities (1,006 ) 59 (899 ) (1,322 ) (3,168 ) Effect of foreign exchange rate changes on cash — — (143 ) — (143 ) Net increase (decrease) in cash and cash equivalents (1,455 ) 110 (1,523 ) — (2,868 ) Cash and cash equivalents at beginning of year 1,746 42 4,062 — 5,850 Cash and cash equivalents at end of year $ 291 $ 152 $ 2,539 $ — $ 2,982 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2017 (in millions) Valero Valero Other Non- Eliminations Consolidated Net cash provided by (used in) operating activities $ (73 ) $ (34 ) $ 5,720 $ (131 ) $ 5,482 Cash flows from investing activities: Capital expenditures (excluding VIEs) — — (1,269 ) — (1,269 ) Capital expenditures of VIEs: DGD — — (84 ) — (84 ) Other VIEs — — (26 ) — (26 ) Deferred turnaround and catalyst cost expenditures (excluding VIEs) — — (519 ) — (519 ) Deferred turnaround and catalyst cost expenditures of DGD — — (4 ) — (4 ) Investments in unconsolidated joint ventures — — (406 ) — (406 ) Acquisitions of undivided interests — — (72 ) — (72 ) Intercompany investing activities (4,002 ) (187 ) (6,696 ) 10,885 — Other investing activities, net — — (2 ) — (2 ) Net cash used in investing activities (4,002 ) (187 ) (9,078 ) 10,885 (2,382 ) Cash flows from financing activities: Proceeds from debt issuances and borrowings (excluding VIEs) — 380 — — 380 Repayments of debt and finance lease obligations (excluding VIEs) — — (15 ) — (15 ) Repayments of debt of VIEs — — (6 ) — (6 ) Intercompany financing activities 6,704 (63 ) 4,244 (10,885 ) — Purchases of common stock for treasury (1,372 ) — — — (1,372 ) Common stock dividends (1,242 ) — (10 ) 10 (1,242 ) Contributions from noncontrolling interests — — 30 — 30 Distributions to noncontrolling interests and unitholders of VLP — (161 ) (27 ) 121 (67 ) Other financing activities, net 10 36 (26 ) — 20 Net cash provided by financing activities 4,100 192 4,190 (10,754 ) (2,272 ) Effect of foreign exchange rate changes on cash — — 206 — 206 Net increase (decrease) in cash and cash equivalents 25 (29 ) 1,038 — 1,034 Cash and cash equivalents at beginning of year 1,721 71 3,024 — 4,816 Cash and cash equivalents at end of year $ 1,746 $ 42 $ 4,062 $ — $ 5,850 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA (Unaudited) | 22. QUARTERLY FINANCIAL DATA (Unaudited) The following tables summarize quarterly financial data for the years ended December 31, 2019 and 2018 (in millions, except per share amounts). 2019 Quarter Ended March 31 June 30 September 30 December 31 Revenues $ 24,263 $ 28,933 $ 27,249 $ 27,879 Gross profit (a) 533 1,123 1,119 2,003 Operating income 308 908 881 1,739 Net income 167 648 639 1,330 Net income attributable to Valero Energy Corporation stockholders 141 612 609 1,060 Earnings per common share 0.34 1.47 1.48 2.58 Earnings per common share – assuming dilution 0.34 1.47 1.48 2.58 2018 Quarter Ended March 31 June 30 September 30 December 31 Revenues $ 26,439 $ 31,015 $ 30,849 $ 28,730 Gross profit (a) 1,062 1,535 1,451 1,546 Operating income 801 1,253 1,219 1,299 Net income 582 875 874 1,022 Net income attributable to Valero Energy Corporation stockholders 469 845 856 952 Earnings per common share 1.09 1.96 2.01 2.26 Earnings per common share – assuming dilution 1.09 1.96 2.01 2.24 ___________________________ (a) Gross profit is calculated as revenues less total cost of sales. |
Description of Business, Basi_2
Description of Business, Basis of Presentation, and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation General These consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles (GAAP) and with the rules and regulations of the U.S. Securities and Exchange Commission (SEC). |
Reclassifications | Reclassifications Effective January 1, 2019, we revised our reportable segments to reflect a new reportable segment — renewable diesel. The renewable diesel segment includes the operations of DGD, our consolidated joint venture as discussed in Note 12 , that were transferred from the refining segment. Also effective January 1, 2019, we no longer have a VLP segment, and we now include the operations of Valero Energy Partners LP and its consolidated subsidiaries (VLP) in our refining segment. Our prior period segment information has been retrospectively adjusted to reflect our current segment presentation. See Note 2 regarding our merger with VLP, which occurred on January 10, 2019, and Note 17 for segment information. Prior year amounts for capital expenditures and deferred turnaround and catalyst cost expenditures in the consolidated statements of cash flows have been reclassified to conform to the 2019 presentation to separately provide these expenditures for us and our consolidated VIEs. |
Principles of Consolidation | Principles of Consolidation These financial statements include those of Valero, our wholly owned subsidiaries, and VIEs in which we have a controlling financial interest. Our VIEs are described in Note 12 . The ownership interests held by others in the VIEs are recorded as noncontrolling interests. Intercompany items and transactions have been eliminated in consolidation. Investments in less than wholly owned entities where we have significant influence are accounted for using the equity method. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. On an ongoing basis, we review our estimates based on currently available information. Changes in facts and circumstances may result in revised estimates. |
Cash Equivalents | Cash Equivalents Our cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and have a maturity of three months or less when acquired. |
Receivables | Receivables Trade receivables are carried at original invoice amount. We maintain an allowance for doubtful accounts, which is adjusted based on management’s assessment of our customers’ historical collection experience, known credit risks, and industry and economic conditions. |
Inventories | Inventories The cost of refinery feedstocks and refined petroleum products, grain and ethanol, and renewable diesel feedstocks (animal fats, used cooking oils, and other vegetable oils) and renewable diesel is determined under the last-in, first-out (LIFO) method using the dollar-value LIFO approach, with any increments valued based on average purchase prices during the year. Our LIFO inventories are carried at the lower of cost or market. The cost of products purchased for resale and the cost of materials and supplies are determined principally under the weighted-average cost method. Our non-LIFO inventories are carried at the lower of cost or net realizable value. If the aggregate market value of our LIFO inventories or the aggregate net realizable value of our non-LIFO inventories is less than the related aggregate cost, we recognize a loss for the difference in our statements of income. |
Property, Plant, and Equipment | Property, Plant, and Equipment The cost of property, plant, and equipment (property assets) purchased or constructed, including betterments of property assets, is capitalized. However, the cost of repairs to and normal maintenance of property assets is expensed as incurred. Betterments of property assets are those that extend the useful life, increase the capacity or improve the operating efficiency of the asset, or improve the safety of our operations. The cost of property assets constructed includes interest and certain overhead costs allocable to the construction activities. Our operations, especially those of our refining segment, are highly capital intensive. Each of our refineries comprises a large base of property assets, consisting of a series of interconnected, highly integrated and interdependent crude oil processing facilities and supporting logistical infrastructure (Units), and these Units are continuously improved. Improvements consist of the addition of new Units and betterments of existing Units. We plan for these improvements by developing a multi-year capital program that is updated and revised based on changing internal and external factors. Depreciation of property assets used in our refining and renewable diesel segments is recorded on a straight-line basis over the estimated useful lives of these assets primarily using the composite method of depreciation. We maintain a separate composite group of property assets for each of our refineries and our renewable diesel plant. We estimate the useful life of each group based on an evaluation of the property assets comprising the group, and such evaluations consist of, but are not limited to, the physical inspection of the assets to determine their condition, consideration of the manner in which the assets are maintained, assessment of the need to replace assets, and evaluation of the manner in which improvements impact the useful life of the group. The estimated useful lives of our composite groups range primarily from 20 to 30 years. Under the composite method of depreciation, the cost of an improvement is added to the composite group to which it relates and is depreciated over that group’s estimated useful life. We design improvements to our refineries and renewable diesel plant in accordance with engineering specifications, design standards, and practices accepted in our industry, and these improvements have design lives consistent with our estimated useful lives. Therefore, we believe the use of the group life to depreciate the cost of improvements made to the group is reasonable because the estimated useful life of each improvement is consistent with that of the group. Also under the composite method of depreciation, the historical cost of a minor property asset (net of salvage value) that is retired or replaced is charged to accumulated depreciation and no gain or loss is recognized in income. However, a gain or loss is recognized in income for a major property asset that is retired, replaced, sold, or for an abnormal disposition of a property asset (primarily involuntary conversions). Gains and losses are reflected in depreciation and amortization expense, unless such amounts are reported separately due to materiality. Depreciation of property assets used in our ethanol segment is recorded on a straight-line basis over the estimated useful lives of the related assets. The estimated useful life of our grain processing equipment is 20 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or the estimated useful life of the related asset. Finance lease ROU (defined below) assets are amortized as discussed in “Leases” below. |
Deferred Charges and Other Assets | Deferred Charges and Other Assets “Deferred charges and other assets, net” primarily include the following: • turnaround costs, which are incurred in connection with planned major maintenance activities at our refineries, ethanol plants, and renewable diesel plant, are deferred when incurred and amortized on a straight-line basis over the period of time estimated to lapse until the next turnaround occurs; • fixed-bed catalyst costs, representing the cost of catalyst that is changed out at periodic intervals when the quality of the catalyst has deteriorated beyond its prescribed function, are deferred when incurred and amortized on a straight-line basis over the estimated useful life of the specific catalyst; • operating lease ROU (defined below) assets, which are amortized as discussed in “Leases” below; • investments in unconsolidated joint ventures; • income taxes receivable; • intangible assets, which are amortized over their estimated useful lives; and • goodwill. |
Leases | Leases We evaluate if a contract is or contains a lease at inception of the contract. If we determine that a contract is or contains a lease, we recognize a right-of-use (ROU) asset and lease liability at the commencement date of the lease based on the present value of lease payments over the lease term. The present value of the lease payments is determined by using the implicit rate when readily determinable. If not determinable, our centrally managed treasury group provides an incremental borrowing rate based on quoted interest rates obtained from financial institutions. The rate used is for a term similar to the duration of the lease based on information available at the commencement date. Lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise those options. We recognize ROU assets and lease liabilities for leasing arrangements with terms greater than one year. Except for the marine transportation asset class, we account for lease and non-lease components in a contract as a single lease component for all classes of underlying assets. Our marine transportation contracts include non-lease components, such as maintenance and crew costs. We allocate the consideration in these contracts based on pricing information provided by the third-party broker. Expense for an operating lease is recognized as a single lease cost on a straight-line basis over the lease term and is reflected in the appropriate income statement line item based on the leased asset’s function. Amortization expense of a finance lease ROU asset is recognized on a straight-line basis over the lesser of the useful life of the leased asset or the lease term. However, if the lease transfers ownership of the finance lease ROU asset to us at the end of the lease term, the finance lease ROU asset is amortized over the useful life of the leased asset. Amortization expense is reflected in “depreciation and amortization expense.” Interest expense is incurred based on the carrying value of the lease liability and is reflected in “interest and debt expense, net of capitalized interest.” |
Impairment of Assets | Impairment of Assets Long-lived assets are tested for recoverability whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. A long-lived asset is not recoverable if its carrying amount exceeds the sum of the undiscounted cash flows expected to result from its use and eventual disposition. If a long-lived asset is not recoverable, an impairment loss is recognized for the amount by which the carrying amount of the long-lived asset exceeds its fair value, with fair value determined based on discounted estimated net cash flows or other appropriate methods. |
Investments | We evaluate our equity method investments for impairment when there is evidence that we may not be able to recover the carrying amount of our investments or the investee is unable to sustain an earnings capacity that justifies the carrying amount. A loss in the value of an investment that is other than a temporary decline is recognized currently in income based on the difference between the estimated current fair value of the investment and its carrying amount. |
Asset Retirement Obligations | Asset Retirement Obligations We record a liability, which is referred to as an asset retirement obligation, at fair value for the estimated cost to retire a tangible long-lived asset at the time we incur that liability, which is generally when the asset is purchased, constructed, or leased. We record the liability when we have a legal obligation to incur costs to retire the asset and when a reasonable estimate of the fair value of the liability can be made. If a reasonable estimate cannot be made at the time the liability is incurred, we record the liability when sufficient information is available to estimate the liability’s fair value. We have obligations with respect to certain of our assets related to our refining and ethanol segments to clean and/or dispose of various component parts of the assets at the time they are retired. However, these component parts can be used for extended and indeterminate periods of time as long as they are properly maintained and/or upgraded. It is our practice and current intent to maintain all our assets and continue making improvements to those assets based on technological advances. As a result, we believe that our assets related to our refining and ethanol segments have indeterminate lives for purposes of estimating asset retirement obligations because dates or ranges of dates upon which we would retire such assets cannot reasonably be estimated at this time. We will recognize a liability at such time when sufficient information exists to estimate a date or range of potential settlement dates that is needed to employ a present value technique to estimate fair value. |
Environmental Matters | Environmental Matters Liabilities for future remediation costs are recorded when environmental assessments and/or remedial efforts are probable and the costs can be reasonably estimated. Other than for assessments, the timing and magnitude of these accruals generally are based on the completion of investigations or other studies or a commitment to a formal plan of action. Amounts recorded for environmental liabilities have not been reduced by possible recoveries from third parties and have not been measured on a discounted basis. |
Legal Contingencies | Legal Contingencies We are subject to legal proceedings, claims, and liabilities that arise in the ordinary course of business. We accrue losses associated with legal claims when such losses are probable and reasonably estimable. If we determine that a loss is probable and cannot estimate a specific amount for that loss but can estimate a range of loss, the best estimate within the range is accrued. If no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. Estimates are adjusted as additional information becomes available or circumstances change. Legal defense costs associated with loss contingencies are expensed in the period incurred. |
Foreign Currency Translation | Foreign Currency Translation Generally, our international subsidiaries use their local currency as their functional currency. Balance sheet amounts are translated into U.S. dollars using exchange rates in effect as of the balance sheet date. Income statement amounts are translated into U.S. dollars using the exchange rates in effect at the time the underlying transactions occur. Foreign currency translation adjustments are recorded as a component of accumulated other comprehensive loss. |
Revenue Recognition | Revenue Recognition Our revenues are primarily generated from contracts with customers. We generate revenue from contracts with customers from the sale of products by our refining, ethanol, and renewable diesel segments. Revenues are recognized when we satisfy our performance obligation to transfer products to our customers, which typically occurs at a point in time upon shipment or delivery of the products, and for an amount that reflects the transaction price that is allocated to the performance obligation. The customer is able to direct the use of, and obtain substantially all of the benefits from, the products at the point of shipment or delivery. As a result, we consider control to have transferred upon shipment or delivery because we have a present right to payment at that time, the customer has legal title to the asset, we have transferred physical possession of the asset, and the customer has significant risks and rewards of ownership of the asset. Our contracts with customers state the final terms of the sale, including the description, quantity, and price for goods sold. Payment is typically due in full within two to ten days of delivery. In the normal course of business, we generally do not accept product returns. The transaction price is the consideration that we expect to be entitled to in exchange for our products. The transaction price for substantially all of our contracts is generally based on commodity market pricing (i.e., variable consideration). As such, this market pricing may be constrained (i.e., not estimable) at the inception of the contract but will be recognized based on the applicable market pricing, which will be known upon transfer of the goods to the customer. Some of our contracts also contain variable consideration in the form of sales incentives to our customers, such as discounts and rebates. For contracts that include variable consideration, we estimate the factors that determine the variable consideration in order to establish the transaction price. We have elected to exclude from the measurement of the transaction price all taxes assessed by governmental authorities that are both imposed on and concurrent with a specific revenue-producing transaction and collected by us from a customer (e.g., sales tax, use tax, value-added tax, etc.). We continue to include in the transaction price excise taxes that are imposed on certain inventories in our international operations. The amount of such taxes is provided in supplemental information in a footnote on the statements of income. There are instances where we provide shipping services in relation to the goods sold to our customer. Shipping and handling costs that occur before the customer obtains control of the goods are deemed to be fulfillment activities and are included in cost of materials and other. We have elected to account for shipping and handling activities that occur after the customer has obtained control of a good as fulfillment activities rather than as a promised service and we have included these activities in cost of materials and other. We enter into certain purchase and sale arrangements with the same counterparty that are deemed to be made in contemplation of one another. We combine these transactions and present the net effect in cost of materials and other. We also enter into refined petroleum product exchange transactions to fulfill sales contracts with our customers by accessing refined petroleum products in markets where we do not operate our own refineries. These refined petroleum product exchanges are accounted for as exchanges of nonmonetary assets, and no revenues are recorded on these transactions. |
Cost Classifications | Cost Classifications “Cost of materials and other” primarily includes the cost of materials that are a component of our products sold. These costs include (i) the direct cost of materials (such as crude oil and other refinery feedstocks, refined petroleum products and blendstocks, and ethanol feedstocks and products) that are a component of our products sold; (ii) costs related to the delivery (such as shipping and handling costs) of products sold; (iii) costs related to our environmental credit obligations to comply with various governmental and regulatory programs (such as the cost of Renewable Identification Numbers (RINs) as required by the U.S. Environmental Protection Agency’s (EPA) Renewable Fuel Standard, emission credits under various cap-and-trade systems, as defined in Note 19 ); (iv) the blender’s tax credit recognized on qualified biodiesel mixtures; (v) gains and losses on our commodity derivative instruments; and (vi) certain excise taxes. “Operating expenses (excluding depreciation and amortization expense)” include costs to operate our refineries, ethanol plants, and logistics assets, except for depreciation and amortization expense. These costs primarily include employee-related expenses, energy and utility costs, catalysts and chemical costs, and repair and maintenance expenses. “Depreciation and amortization expense” associated with our operations is separately presented in our statement of income as a component of cost of sales and general and administrative expenses and is disclosed by reportable segment in Note 17 . “Other operating expenses” include costs, if any, incurred by our reportable segments that are not associated with our cost of sales. |
Environmental Compliance Program Costs | Environmental Compliance Program Costs We purchase credits in the open market to meet our obligations under various environmental compliance programs. We purchase biofuel credits (primarily RINs in the U.S.) to comply with government regulations that require us to blend a certain percentage of biofuels into the products we produce. To the degree that we are unable to blend biofuels at the required percentage, we must purchase biofuel credits to meet our obligation. We purchase greenhouse gas (GHG) emission credits to comply with government regulations concerning various GHG emission programs, including cap-and-trade systems. These programs are described in Note 20 under “Environmental Compliance Program Price Risk.” The costs of purchased biofuel credits and GHG emission credits are charged to cost of materials and other as such credits are needed to satisfy our obligation. To the extent we have not purchased enough credits to satisfy our obligation as of the balance sheet date, we charge cost of materials and other for such deficiency based on the market price of the credits as of the balance sheet date, and we record a liability for our obligation to purchase those credits. See Note 19 for disclosure of our fair value liability. |
Stock-Based Compensation | Stock-Based Compensation Compensation expense for our share-based compensation plans is based on the fair value of the awards granted and is recognized in income on a straight-line basis over the shorter of (i) the requisite service period of each award or (ii) the period from the grant date to the date retirement eligibility is achieved if that date is expected to occur during the vesting period established in the award. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred amounts are measured using enacted tax rates expected to apply to taxable income in the year those temporary differences are expected to be recovered or settled. Deferred tax assets are reduced by unrecognized tax benefits, if such items may be available to offset the unrecognized tax benefit. Stranded income tax effects are released from accumulated other comprehensive loss to retained earnings on an individual item basis as those items are reclassified into income. We have elected to classify any interest expense and penalties related to the underpayment of income taxes in income tax expense. We have elected to treat the global intangible low-taxed income (GILTI) tax as a period expense. |
Earnings per Common Share | Earnings per Common Share Earnings per common share is computed by dividing net income attributable to Valero stockholders by the weighted-average number of common shares outstanding for the year. Participating securities are included in the computation of basic earnings per share using the two-class method. Earnings per common share – assuming dilution is computed by dividing net income attributable to Valero stockholders by the weighted-average number of common shares outstanding for the year increased by the effect of dilutive securities. Potentially dilutive securities are excluded from the computation of earnings per common share – assuming dilution when the effect of including such shares would be antidilutive. |
Financial Instruments | Financial Instruments Our financial instruments include cash and cash equivalents, receivables, payables, debt, operating and finance lease obligations, commodity derivative contracts, and foreign currency derivative contracts. The estimated fair values of these financial instruments approximate their carrying amounts, except for certain debt as discussed in Note 19 . |
Derivatives and Hedging | Derivatives and Hedging All derivative instruments, not designated as normal purchases or sales, are recorded in the balance sheet as either assets or liabilities measured at their fair values with changes in fair value recognized currently in income. To manage commodity price risk, we primarily use cash flow hedges and economic hedges, and we also use fair value hedges from time to time. The cash flow effects of all of our derivative instruments are reflected in operating activities in the consolidated statements of cash flows. |
New Accounting Pronouncements | Accounting Pronouncements Adopted During 2019 Topic 842 We adopted the provisions of Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 842, “Leases,” (Topic 842) on January 1, 2019. Topic 842 increases the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Topic 842 supersedes previous lease accounting requirements under FASB ASC Topic 840, “Leases,” (Topic 840). We adopted Topic 842 using the optional transition method that permits us to record a cumulative-effect adjustment and apply the new disclosure requirements beginning in 2019 and continue to present comparative period information as required under Topic 840; however, we did not have a cumulative-effect adjustment to the opening balance of retained earnings at the date of adoption. In addition, we elected the transition practical expedient package that permits us to not reassess our prior conclusions about lease identification, lease classification, and initial direct costs under the new standard, as well as the practical expedient that permits us to not assess existing land easements under the new standard. See “Leases” above for a discussion of our revised accounting policy and also see Note 5 for information on our leases. In preparation for the adoption of Topic 842, we enhanced our contracting and lease evaluation systems and related processes, and we developed a new lease accounting system to capture our leases and support the required disclosures. We integrated our lease accounting system with our general ledger and modified our related procurement and payment processes. Adoption of this standard resulted in (i) the recognition of ROU assets and lease liabilities for our operating leases of $1.3 billion , (ii) the derecognition of existing assets under construction of $539 million related to a build-to-suit lease arrangement with respect to the MVP Terminal (see Note 10 under “ Contractual Capital Commitments— MVP Terminal”), and (iii) the presentation of new disclosures about our leasing activities beginning in the first quarter of 2019. Adoption of this standard did not impact our results of operations or liquidity, and our accounting for finance leases is substantially unchanged. Other In addition to the adoption of Topic 842 discussed above, we adopted the following Accounting Standards Update (ASU) on January 1, 2019 . Our adoption of this ASU did not affect our financial statements or related disclosures. ASU Basis of Adoption 2017-12 Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities Cumulative effect Accounting Pronouncements Adopted on January 1, 2020 The following ASUs were adopted on January 1, 2020, and our adoption did not have a material impact on our financial statements or related disclosures. ASU Basis of Adoption 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (including codification improvements in ASUs 2018-19 and 2019-11 and ASU 2020-02— Financial Instruments—Credit Losses (Topic 326): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119) Cumulative effect 2018-15 Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract Prospectively 2019-12 Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes Prospectively |
Variable interest entities | In the normal course of business, we have financial interests in certain entities that have been determined to be VIEs. We consolidate a VIE when we have a variable interest in an entity for which we are the primary beneficiary such that we have (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses of or the right to receive benefits from the VIE that could potentially be significant to the VIE. In order to make this determination, we evaluated our contractual arrangements with the VIEs, including arrangements for the use of assets, purchases of products and services, debt, equity, or management of operating activities. We also have financial interests in other entities that have been determined to be VIEs because the entities’ contractual arrangements transfer the power to us to direct the activities that most significantly impact their economic performance or reduce the exposure to operational variability and risk of loss created by the entity that otherwise would be held exclusively by the equity owners. Furthermore, we determined that we are the primary beneficiary of these VIEs because (i) certain contractual arrangements (exclusive of our ownership rights) provide us with the power to direct the activities that most significantly impact the economic performance of these entities and/or (ii) our 50 percent ownership interests provide us with significant economic rights and obligations. As operator, we operate the plant and perform certain day-to-day operating and management functions for DGD as an independent contractor. The operations agreement provides us (as operator) with certain power to direct the activities that most significantly impact DGD’s economic performance. Because this agreement conveys such power to us and is separate from our ownership rights, we determined that DGD was a VIE. For this reason and because we hold a 50 |
Offsetting fair value amounts of commodity derivative contracts | We have elected to offset the fair value amounts recognized for multiple similar derivative contracts executed with the same counterparty, including any related cash collateral assets or obligations as shown below; however, fair value amounts by hierarchy level are presented in the following tables on a gross basis. We have no derivative contracts that are subject to master netting arrangements that are reflected gross on the balance sheet. |
Derivative instruments collateral requirements | We do not require any collateral or other security to support derivative instruments into which we enter. |
Description of Business, Basi_3
Description of Business, Basis of Presentation, and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements | In addition to the adoption of Topic 842 discussed above, we adopted the following Accounting Standards Update (ASU) on January 1, 2019 . Our adoption of this ASU did not affect our financial statements or related disclosures. ASU Basis of Adoption 2017-12 Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities Cumulative effect The following ASUs were adopted on January 1, 2020, and our adoption did not have a material impact on our financial statements or related disclosures. ASU Basis of Adoption 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (including codification improvements in ASUs 2018-19 and 2019-11 and ASU 2020-02— Financial Instruments—Credit Losses (Topic 326): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119) Cumulative effect 2018-15 Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract Prospectively 2019-12 Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes Prospectively |
Merger and Acquisitions (Tables
Merger and Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Summary of estimated fair values of assets acquired and liabilities assumed, net | The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date, based on an independent appraisal that was completed in the fourth quarter of 2018 (in millions). We paid $468 million from available cash on hand, of which $132 million was for working capital. During the third and fourth quarters of 2018, we recognized immaterial adjustments to the preliminary amounts recorded for the Peru Acquisition with a corresponding adjustment to goodwill due to the completion of the independent appraisal. These adjustments did not have a material effect on our results of operations for the year ended December 31, 2018. Current assets, net of cash acquired $ 158 Property, plant, and equipment 102 Deferred charges and other assets 466 Current liabilities, excluding current portion of debt (26 ) Debt assumed, including current portion (137 ) Deferred income tax liabilities (62 ) Other long-term liabilities (27 ) Noncontrolling interest (6 ) Total consideration, net of cash acquired $ 468 |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Receivables, net | Receivables consisted of the following (in millions): December 31, 2019 2018 Receivables from contracts with customers $ 5,610 $ 4,673 Receivables from certain purchase and sale arrangements 2,484 2,311 Commodity derivative and foreign currency contract receivables 116 229 Other receivables 730 166 Total receivables 8,940 7,379 Allowance for doubtful accounts (36 ) (34 ) Receivables, net $ 8,904 $ 7,345 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consisted of the following (in millions): December 31, 2019 2018 Refinery feedstocks $ 2,399 $ 2,265 Refined petroleum products and blendstocks 4,034 3,653 Ethanol feedstocks and products 260 298 Renewable diesel feedstocks and products 46 52 Materials and supplies 274 264 Inventories $ 7,013 $ 6,532 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Total lease cost by class of underlying asset | Total lease cost by class of underlying asset was as follows (in millions): Year Ended December 31, 2019 Pipelines, Terminals, and Tanks Transportation Feedstock Processing Equipment Energy and Gases Real Estate Other Total Marine Rail Finance lease cost: Amortization of ROU assets $ 44 $ — $ — $ 7 $ 3 $ — $ — $ 54 Interest on lease liabilities 47 — — 1 2 — — 50 Operating lease cost 182 145 52 20 9 27 4 439 Variable lease cost 66 35 — 1 — 1 — 103 Short-term lease cost 9 53 — 29 — — — 91 Sublease income — (27 ) — — — (3 ) — (30 ) Total lease cost $ 348 $ 206 $ 52 $ 58 $ 14 $ 25 $ 4 $ 707 |
Rental expense, net of sublease rental income | In accordance with Topic 840, “rental expense, net of sublease rental income” was as follows (in millions): Year Ended December 31, 2018 2017 Minimum rental expense $ 515 $ 691 Contingent rental expense 19 21 Total rental expense 534 712 Less: Sublease rental income 31 54 Rental expense, net of sublease rental income $ 503 $ 658 |
Additional information related to operating and finance leases | The following table presents additional information related to our operating and finance leases (in millions, except for lease terms and discount rates): December 31, 2019 Operating Leases Finance Leases Supplemental balance sheet information ROU assets, net reflected in the following balance sheet line items: Property, plant, and equipment, net $ — $ 790 Deferred charges and other assets, net 1,329 — Total ROU assets, net $ 1,329 $ 790 Current lease liabilities reflected in the following balance sheet line items: Current portion of debt and finance lease obligations $ — $ 41 Accrued expenses 331 — Noncurrent lease liabilities reflected in the following balance sheet line items: Debt and finance lease obligations, less current portion — 750 Other long-term liabilities 959 — Total lease liabilities $ 1,290 $ 791 Other supplemental information Weighted-average remaining lease term 7.7 years 19.7 years Weighted-average discount rate 4.9 % 5.2 % |
Remaining minimum lease payments due under long-term operating leases | The remaining minimum lease payments due under our long-term leases were as follows (in millions): December 31, 2019 December 31, 2018 Operating Leases Finance Leases Operating Leases Capital Leases 2019 n/a n/a $ 359 $ 69 2020 $ 376 $ 88 245 65 2021 250 86 178 62 2022 194 87 146 64 2023 160 91 123 65 2024 125 82 n/a n/a Thereafter 498 1,011 514 957 Total undiscounted lease payments 1,603 1,445 $ 1,565 1,282 Less: Amount associated with discounting 313 654 676 Total lease liabilities $ 1,290 $ 791 $ 606 |
Remaining minimum lease payments due under long-term finance leases | The remaining minimum lease payments due under our long-term leases were as follows (in millions): December 31, 2019 December 31, 2018 Operating Leases Finance Leases Operating Leases Capital Leases 2019 n/a n/a $ 359 $ 69 2020 $ 376 $ 88 245 65 2021 250 86 178 62 2022 194 87 146 64 2023 160 91 123 65 2024 125 82 n/a n/a Thereafter 498 1,011 514 957 Total undiscounted lease payments 1,603 1,445 $ 1,565 1,282 Less: Amount associated with discounting 313 654 676 Total lease liabilities $ 1,290 $ 791 $ 606 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Major classes of property, plant, and equipment | Major classes of property, plant, and equipment, including assets held under finance leases, consisted of the following (in millions): December 31, 2019 2018 Land $ 476 $ 416 Crude oil processing facilities 32,047 30,721 Transportation and terminaling facilities 5,179 4,935 Grain processing equipment 1,201 1,212 Administrative buildings 1,015 953 Finance lease ROU assets (see Note 5) 944 711 Other 1,701 1,565 Construction in progress 1,731 1,960 Property, plant, and equipment, at cost 44,294 42,473 Accumulated depreciation (15,030 ) (13,625 ) Property, plant, and equipment, net $ 29,264 $ 28,848 |
Deferred Charges and Other As_2
Deferred Charges and Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of deferred charges and other assets, net | “Deferred charges and other assets, net” consisted of the following (in millions): December 31, 2019 2018 Deferred turnaround and catalyst costs, net $ 1,778 $ 1,749 Operating lease ROU assets, net (see Note 5) 1,329 — Investments in unconsolidated joint ventures 942 542 Income taxes receivable 525 343 Intangible assets, net 283 307 Goodwill 260 260 Other 514 431 Deferred charges and other assets, net $ 5,631 $ 3,632 |
Accrued Expenses and Other Lo_2
Accrued Expenses and Other Long-Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Accrued expenses and other long-term liabilities | Accrued expenses and other long-term liabilities consisted of the following (in millions): Accrued Expenses Other Long-Term Liabilities December 31, December 31, 2019 2018 2019 2018 Operating lease liabilities (see Note 5) $ 331 $ — $ 959 $ — Liability for unrecognized tax benefits (see Note 15) — — 954 721 Defined benefit plan liabilities (see Note 13) 37 43 834 654 Repatriation tax liability (see Note 15) (a) — — 508 603 Environmental liabilities 27 29 319 327 Wage and other employee-related liabilities 292 302 121 109 Accrued interest expense 83 93 — — Contract liabilities from contracts with customers (see Note 17) 55 31 — — Environmental credit obligations (see Note 19) 31 34 — — Other accrued liabilities 93 98 192 453 Accrued expenses and other long-term liabilities $ 949 $ 630 $ 3,887 $ 2,867 __________________________ (a) The current portion of repatriation tax liability is included in income taxes payable. As of December 31, 2019 , the current portion of repatriation tax liability was $54 million . There was no current portion of repatriation tax liability as of December 31, 2018 . |
Debt and Finance Lease Obliga_2
Debt and Finance Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt and Lease Obligation [Abstract] | |
Debt and finance lease obligations | Debt, at stated values, and finance lease obligations consisted of the following (in millions): Final Maturity December 31, 2019 2018 Credit facilities: Valero Revolver 2024 $ — $ — IEnova Revolver 2028 348 109 Canadian Revolver 2020 — — Accounts receivable sales facility 2020 100 100 Public debt: Valero Senior Notes 6.625% 2037 1,500 1,500 3.4% 2026 1,250 1,250 4.0% 2029 1,000 — 6.125% 2020 — 850 4.35% 2028 750 750 7.5% 2032 750 750 4.9% 2045 650 650 3.65% 2025 600 600 10.5% 2039 250 250 8.75% 2030 200 200 7.45% 2097 100 100 6.75% 2037 24 24 VLP Senior Notes 4.375% 2026 500 500 4.5% 2028 500 500 Gulf Opportunity Zone Revenue Bonds, Series 2010, 4.0% 2040 300 300 Debenture, 7.65% 2026 100 100 Other debt Various 47 50 Net unamortized debt issuance costs and other (88 ) (80 ) Total debt 8,881 8,503 Finance lease obligations (see Note 5) 791 606 Total debt and finance lease obligations 9,672 9,109 Less: Current portion 494 238 Debt and finance lease obligations, less current portion $ 9,178 $ 8,871 |
Summary of credit facilities | We had outstanding borrowings, letters of credit issued, and availability under our credit facilities as follows (amounts in millions and currency in U.S. dollars, except as noted): December 31, 2019 Facility Amount Maturity Date Outstanding Borrowings Letters of Credit Issued (a) Availability Committed facilities: Valero Revolver $ 4,000 March 2024 $ — $ 34 $ 3,966 Canadian Revolver C$ 150 November 2020 C$ — C$ 5 C$ 145 Accounts receivable sales facility $ 1,300 July 2020 $ 100 n/a $ 1,200 Letter of credit facility (b) $ 50 November 2020 n/a $ — $ 50 Committed facility of VIE (c): IEnova Revolver $ 491 February 2028 $ 348 n/a $ 143 Uncommitted facilities: Letter of credit facilities n/a n/a n/a $ 121 n/a __________________________ (a) Letters of credit issued as of December 31, 2019 expire at various times in 2020 through 2021 . (b) The letter of credit facility was amended to reduce the facility from $100 million to $50 million and to extend the maturity date from November 2019 to November 2020. (c) Creditors of our VIE do not have recourse against us. |
Interest and debt expense, net of capitalized interest | “Interest and debt expense, net of capitalized interest” is comprised as follows (in millions): Year Ended December 31, 2019 2018 2017 Interest and debt expense $ 544 $ 557 $ 539 Less: Capitalized interest 90 87 71 Interest and debt expense, net of capitalized interest $ 454 $ 470 $ 468 |
Principal maturities for debt obligations | Principal maturities for our debt obligations as of December 31, 2019 were as follows (in millions): 2020 (a) $ 453 2021 17 2022 6 2023 19 2024 — Thereafter 8,474 Net unamortized debt issuance costs and other (88 ) Total debt $ 8,881 __________________________ (a) As of December 31, 2019 , our debt obligations due in 2020 include $348 million associated with borrowings under the IEnova Revolver. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Share activity | Activity in the number of shares of common stock and treasury stock was as follows (in millions): Common Stock Treasury Stock Balance as of December 31, 2016 673 (222 ) Transactions in connection with stock-based compensation plans — 1 Stock purchases under purchase programs — (19 ) Balance as of December 31, 2017 673 (240 ) Stock purchases under purchase programs — (16 ) Balance as of December 31, 2018 673 (256 ) Transactions in connection with stock-based compensation plans — 1 Stock purchases under purchase program — (9 ) Balance as of December 31, 2019 673 (264 ) |
Income tax effects related to components of other comprehensive income (loss) | The tax effects allocated to each component of other comprehensive income (loss) were as follows (in millions): Before-Tax Amount Tax Expense (Benefit) Net Amount Year ended December 31, 2019 Foreign currency translation adjustment $ 349 $ — $ 349 Pension and other postretirement benefits: Loss arising during the year related to: Net actuarial loss (245 ) (54 ) (191 ) Prior service cost (3 ) (1 ) (2 ) Miscellaneous loss — 4 (4 ) Amounts reclassified into income related to: Net actuarial loss 38 9 29 Prior service credit (28 ) (6 ) (22 ) Curtailment and settlement loss 4 1 3 Net loss on pension and other postretirement benefits (234 ) (47 ) (187 ) Derivative instruments designated and qualifying as cash flow hedges: Net loss arising during the year (6 ) (1 ) (5 ) Net gain reclassified into income (2 ) — (2 ) Net loss on cash flow hedges (8 ) (1 ) (7 ) Other comprehensive income $ 107 $ (48 ) $ 155 Before-Tax Amount Tax Expense (Benefit) Net Amount Year ended December 31, 2018 Foreign currency translation adjustment $ (517 ) $ — $ (517 ) Pension and other postretirement benefits: Gain arising during the year related to: Net actuarial gain 1 — 1 Prior service credit 7 1 6 Amounts reclassified into income related to: Net actuarial loss 63 14 49 Prior service credit (29 ) (7 ) (22 ) Curtailment and settlement loss 7 2 5 Net gain on pension and other postretirement benefits 49 10 39 Other comprehensive loss $ (468 ) $ 10 $ (478 ) Year ended December 31, 2017 Foreign currency translation adjustment $ 514 $ — $ 514 Pension and other postretirement benefits: Loss arising during the year related to: Net actuarial loss (79 ) (29 ) (50 ) Prior service cost (4 ) (1 ) (3 ) Miscellaneous loss — 3 (3 ) Amounts reclassified into income related to: Net actuarial loss 50 18 32 Prior service credit (36 ) (13 ) (23 ) Curtailment and settlement loss 4 1 3 Net loss on pension and other postretirement benefits (65 ) (21 ) (44 ) Other comprehensive income $ 449 $ (21 ) $ 470 |
Changes in components of accumulated other comprehensive loss | Changes in accumulated other comprehensive loss by component, net of tax, were as follows (in millions): Foreign Currency Translation Adjustment Defined Benefit Plans Items Losses on Cash Flow Hedges Total Balance as of December 31, 2016 $ (1,021 ) $ (389 ) $ — $ (1,410 ) Other comprehensive income (loss) before reclassifications 514 (56 ) — 458 Amounts reclassified from accumulated other comprehensive loss — 12 — 12 Other comprehensive income (loss) 514 (44 ) — 470 Balance as of December 31, 2017 (507 ) (433 ) — (940 ) Other comprehensive income (loss) before reclassifications (515 ) 7 — (508 ) Amounts reclassified from accumulated other comprehensive loss — 32 — 32 Other comprehensive income (loss) (515 ) 39 — (476 ) Reclassification of stranded income tax effects — (91 ) — (91 ) Balance as of December 31, 2018 (1,022 ) (485 ) — (1,507 ) Other comprehensive income (loss) before reclassifications 346 (197 ) (2 ) 147 Amounts reclassified from accumulated other comprehensive loss — 10 (1 ) 9 Other comprehensive income (loss) 346 (187 ) (3 ) 156 Balance as of December 31, 2019 $ (676 ) $ (672 ) $ (3 ) $ (1,351 ) |
Gains (losses) reclassified out of accumulated other comprehensive loss | Gains (losses) reclassified out of accumulated other comprehensive loss and into net income were as follows (in millions): Details about Accumulated Other Comprehensive Loss Components Affected Line Item in the Statement of Income Year Ended December 31, 2019 2018 2017 Amortization of items related to defined benefit pension plans: Net actuarial loss $ (38 ) $ (63 ) $ (50 ) (a) Other income, net Prior service credit 28 29 36 (a) Other income, net Curtailment and settlement (4 ) (7 ) (4 ) (a) Other income, net (14 ) (41 ) (18 ) Total before tax 4 9 6 Tax benefit $ (10 ) $ (32 ) $ (12 ) Net of tax Gains on cash flow hedges: Commodity contracts $ 2 $ — $ — Revenues $ 2 $ — $ — Net of tax Total reclassifications for the year $ (8 ) $ (32 ) $ (12 ) Net of tax _________________________ (a) These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost (credit), as discussed in Note 13 . |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summarized balance sheet information of VIEs | The following tables present summarized balance sheet information for the significant assets and liabilities of our VIEs, which are included in our balance sheets (in millions). December 31, 2019 DGD Central Mexico Other Total Assets Cash and cash equivalents $ 85 $ — $ 25 $ 110 Other current assets 567 33 89 689 Property, plant, and equipment, net 706 381 105 1,192 Liabilities Current liabilities, including current portion of debt and finance lease obligations $ 66 $ 409 $ 8 $ 483 Debt and finance lease obligations, less current portion — — 31 31 December 31, 2018 VLP (a) DGD Central Mexico Other Total Assets Cash and cash equivalents $ 152 $ 65 $ — $ 18 $ 235 Other current assets 2 112 20 64 198 Property, plant, and equipment, net 1,409 576 156 113 2,254 Liabilities Current liabilities, including current portion of debt and finance lease obligations $ 27 $ 28 $ 118 $ 9 $ 182 Debt and finance lease obligations, less current portion 990 — — 34 1,024 ____________________ (a) Prior to the completion of the Merger Transaction with VLP on January 10, 2019 as discussed in Note 2 , VLP was a publicly traded master limited partnership that we had determined was a VIE. VLP was formed by us to own, operate, develop, and acquire crude oil and refined petroleum products pipelines, terminals, and other transportation and logistics assets. As of December 31, 2018, we owned a 66.2 percent limited partner interest and a 2.0 percent general partner interest in VLP, and public unitholders owned a 31.8 percent limited partner interest. Upon completion of the Merger Transaction, VLP became our indirect wholly owned subsidiary and, as a result, was no longer a VIE. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
The changes in benefit obligation, the changes in fair value of plan assets, and the funded status of our pension plans and other postretirement benefit plans | The changes in benefit obligation related to all of our defined benefit plans, the changes in fair value of plan assets (a) , and the funded status of our defined benefit plans as of and for the years ended were as follows (in millions): Pension Plans Other Postretirement Benefit Plans December 31, December 31, 2019 2018 2019 2018 Changes in benefit obligation Benefit obligation as of beginning of year $ 2,639 $ 2,926 $ 292 $ 306 Service cost 119 133 5 6 Interest cost 98 91 11 10 Participant contributions — — 11 10 Benefits paid (154 ) (207 ) (29 ) (28 ) Actuarial (gain) loss 528 (285 ) 41 (9 ) Other 9 (19 ) 5 (3 ) Benefit obligation as of end of year $ 3,239 $ 2,639 $ 336 $ 292 Changes in plan assets (a) Fair value of plan assets as of beginning of year $ 2,236 $ 2,428 $ — $ — Actual return on plan assets 490 (130 ) — — Valero contributions 128 156 18 18 Participant contributions — — 11 10 Benefits paid (154 ) (207 ) (29 ) (28 ) Other 9 (11 ) — — Fair value of plan assets as of end of year $ 2,709 $ 2,236 $ — $ — Reconciliation of funded status (a) Fair value of plan assets as of end of year $ 2,709 $ 2,236 $ — $ — Less: Benefit obligation as of end of year 3,239 2,639 336 292 Funded status as of end of year $ (530 ) $ (403 ) $ (336 ) $ (292 ) Accumulated benefit obligation $ 3,039 $ 2,492 n/a n/a __________________________ (a) Plan assets include only the assets associated with pension plans subject to legal minimum funding standards. Plan assets associated with U.S. nonqualified pension plans are not included here because they are not protected from our creditors and therefore cannot be reflected as a reduction from our obligations under the pension plans. As a result, the reconciliation of funded status does not reflect the effect of plan assets that exist for all of our defined benefit plans. See Note 19 for the assets associated with certain U.S. nonqualified pension plans. |
Schedule of amounts recognized in balance sheet | Amounts recognized in our balance sheet for our pension and other postretirement benefits plans include (in millions): Pension Plans Other Postretirement Benefit Plans December 31, December 31, 2019 2018 2019 2018 Deferred charges and other assets, net $ 5 $ 2 $ — $ — Accrued expenses (17 ) (22 ) (20 ) (21 ) Other long-term liabilities (518 ) (383 ) (316 ) (271 ) $ (530 ) $ (403 ) $ (336 ) $ (292 ) |
Projected benefit obligations in excess of fair value of plan assets | The following table presents information for our pension plans with projected benefit obligations in excess of plan assets (in millions). December 31, 2019 2018 Projected benefit obligation $ 3,182 $ 2,564 Fair value of plan assets 2,647 2,160 |
Accumulated benefit obligations in excess of fair value of plan assets | The following table presents information for our pension plans with accumulated benefit obligations in excess of plan assets (in millions). December 31, 2019 2018 Accumulated benefit obligation $ 2,760 $ 2,253 Fair value of plan assets 2,402 1,974 |
Expected benefit payments | Benefit payments that we expect to pay, including amounts related to expected future services that we expect to receive, are as follows for the years ending December 31 (in millions): Pension Benefits Other Postretirement Benefits 2020 $ 179 $ 21 2021 219 20 2022 190 20 2023 204 19 2024 205 19 2025-2029 1,105 88 |
Components of net periodic benefit costs | The components of net periodic benefit cost (credit) related to our defined benefit plans were as follows (in millions): Pension Plans Other Postretirement Benefit Plans Year Ended December 31, Year Ended December 31, 2019 2018 2017 2019 2018 2017 Service cost $ 119 $ 133 $ 123 $ 5 $ 6 $ 6 Interest cost 98 91 86 11 10 10 Expected return on plan assets (166 ) (163 ) (150 ) — — — Amortization of: Net actuarial (gain) loss 41 65 53 (3 ) (2 ) (3 ) Prior service credit (19 ) (18 ) (20 ) (9 ) (11 ) (16 ) Special charges 4 7 4 1 — — Net periodic benefit cost (credit) $ 77 $ 115 $ 96 $ 5 $ 3 $ (3 ) |
Pre-tax amounts recognized in other comprehensive income (loss) | Pre-tax amounts recognized in other comprehensive income (loss) were as follows (in millions): Pension Plans Other Postretirement Benefit Plans Year Ended December 31, Year Ended December 31, 2019 2018 2017 2019 2018 2017 Net gain (loss) arising during the year: Net actuarial gain (loss) $ (204 ) $ (8 ) $ (73 ) $ (41 ) $ 9 $ (6 ) Prior service (cost) credit — 7 (4 ) (3 ) — — Net (gain) loss reclassified into income: Net actuarial (gain) loss 41 65 53 (3 ) (2 ) (3 ) Prior service credit (19 ) (18 ) (20 ) (9 ) (11 ) (16 ) Curtailment and settlement loss 4 7 4 — — — Total changes in other comprehensive income (loss) $ (178 ) $ 53 $ (40 ) $ (56 ) $ (4 ) $ (25 ) |
Pre-tax amounts in accumulated other comprehensive loss not yet recognized | The pre-tax amounts in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit cost (credit) were as follows (in millions): Pension Plans Other Postretirement Benefit Plans December 31, December 31, 2019 2018 2019 2018 Net actuarial (gain) loss $ 988 $ 828 $ (20 ) $ (64 ) Prior service credit (90 ) (108 ) (19 ) (31 ) Total $ 898 $ 720 $ (39 ) $ (95 ) |
Weighted-average assumptions used to determine the benefit obligations and net periodic benefit cost | The weighted-average assumptions used to determine the benefit obligations were as follows: Pension Plans Other Postretirement Benefit Plans December 31, December 31, 2019 2018 2019 2018 Discount rate 3.14 % 4.25 % 3.32 % 4.40 % Rate of compensation increase 3.75 % 3.78 % n/a n/a Interest crediting rate for cash balance plans 3.03 % 3.04 % n/a n/a The weighted-average assumptions used to determine the net periodic benefit cost were as follows: Pension Plans Other Postretirement Benefit Plans Year Ended December 31, Year Ended December 31, 2019 2018 2017 2019 2018 2017 Discount rate 4.24 % 3.59 % 4.08 % 4.40 % 3.72 % 4.26 % Expected long-term rate of return on plan assets 7.22 % 7.24 % 7.29 % n/a n/a n/a Rate of compensation increase 3.78 % 3.86 % 3.81 % n/a n/a n/a Interest crediting rate for cash balance plans 3.04 % 3.04 % 3.04 % n/a n/a n/a |
Assumed health care cost trend rates | The assumed health care cost trend rates were as follows: December 31, 2019 2018 Health care cost trend rate assumed for the next year 7.32 % 7.29 % Rate to which the cost trend rate was assumed to decline (the ultimate trend rate) 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate 2026 2026 |
Fair value of pension plan assets by level of fair value hierarchy | The following tables present the fair values of the assets of our pension plans (in millions) as of December 31, 2019 and 2018 by level of the fair value hierarchy. Assets categorized in Level 1 of the hierarchy are measured at fair value using a market approach based on unadjusted quoted prices from national securities exchanges. Assets categorized in Level 2 of the hierarchy are measured at net asset value in a market that is not active. As previously noted, we do not fund or fully fund U.S. nonqualified and certain international pension plans that are not subject to funding requirements, and we do not fund our other postretirement benefit plans. Fair Value Hierarchy Total as of Level 1 Level 2 Level 3 Equity securities: U.S. companies (a) $ 622 $ — $ — $ 622 International companies 205 1 — 206 Preferred stock 4 — — 4 Mutual funds: International growth 123 — — 123 Index funds 90 — — 90 Corporate debt instruments (a) — 293 — 293 Government securities: U.S. Treasury securities 53 — — 53 Other government securities — 148 — 148 Common collective trusts (b) — 751 — 751 Pooled separate accounts — 250 — 250 Private funds — 104 — 104 Insurance contract — 17 — 17 Interest and dividends receivable 5 — — 5 Cash and cash equivalents 59 — — 59 Securities transactions payable, net (16 ) — — (16 ) Total pension plan assets $ 1,145 $ 1,564 $ — $ 2,709 ___________________________ See notes on page 108 . Fair Value Hierarchy Total as of Level 1 Level 2 Level 3 Equity securities: U.S. companies (a) $ 497 $ — $ — $ 497 International companies 159 1 — 160 Preferred stock 4 — — 4 Mutual funds: International growth 97 — — 97 Index funds 76 — — 76 Corporate debt instruments (a) — 284 — 284 Government securities: U.S. Treasury securities 45 — — 45 Other government securities — 138 — 138 Common collective trusts (b) — 609 — 609 Pooled separate accounts — 190 — 190 Private funds — 87 — 87 Insurance contract — 18 — 18 Interest and dividends receivable 5 — — 5 Cash and cash equivalents 40 — — 40 Securities transactions payable, net (14 ) — — (14 ) Total pension plan assets $ 909 $ 1,327 $ — $ 2,236 __________________________________ (a) This class of securities is held in a wide range of industrial sectors. (b) This class includes primarily investments in approximately 75 percent equities and 25 percent bonds as of December 31, 2019 . As of December 31, 2018 , this class included primarily investments in approximately 70 percent equities and 30 percent bonds. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of stock-based compensation expense and tax benefits | The following table reflects activity related to our stock-based compensation arrangements (in millions): Year Ended December 31, 2019 2018 2017 Stock-based compensation expense: Restricted stock $ 64 $ 63 $ 58 Performance awards 23 22 19 Stock options and other awards 2 1 — Total stock-based compensation expense $ 89 $ 86 $ 77 Tax benefit recognized on stock-based compensation expense $ 19 $ 18 $ 27 Tax benefit realized for tax deductions resulting from exercises and vestings 17 32 44 Effect of tax deductions in excess of recognized stock-based compensation expense 7 20 24 |
Summary of restricted stock awards | A summary of the status of our restricted stock awards is presented in the following table. Number of Shares Weighted- Average Grant-Date Fair Value Per Share Nonvested shares as of January 1, 2019 1,176,578 $ 80.70 Granted 677,482 98.75 Vested (757,217 ) 78.54 Forfeited (4,989 ) 83.18 Nonvested shares as of December 31, 2019 1,091,854 93.38 The following table reflects activity related to our restricted stock: Year Ended December 31, 2019 2018 2017 Weighted-average grant-date fair value per share of restricted stock granted $ 98.75 $ 92.12 $ 79.32 Fair value of restricted stock vested (in millions) 74 80 71 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income before income tax expense (benefit) from U.S. and international operations | Income before income tax expense (benefit) was as follows (in millions): Year Ended December 31, 2019 2018 2017 U.S. operations $ 2,496 $ 3,168 $ 2,283 International operations 990 1,064 924 Income before income tax expense (benefit) $ 3,486 $ 4,232 $ 3,207 |
Reconciliation of income tax expense (benefit) related to continuing operations to income tax expense (benefit) at statutory rate | Statutory income tax rates applicable to the countries in which we operate were as follows: Year Ended December 31, 2019 2018 2017 U.S. 21 % 21 % 35 % Canada 15 % 15 % 15 % U.K. 19 % 19 % 19 % Ireland 13 % 13 % 13 % Peru 30 % 30 % n/a Mexico 30 % 30 % n/a The following is a reconciliation of income tax expense (benefit) computed by applying statutory income tax rates as reflected in the preceding table to actual income tax expense (benefit) (in millions): U.S. International Total Amount Percent Amount Percent Amount Percent Year ended December 31, 2019 Income tax expense at statutory rates $ 524 21.0 % $ 147 14.8 % $ 671 19.2 % U.S. state and Canadian provincial tax expense, net of federal income tax effect 16 0.7 % 88 8.9 % 104 3.0 % Permanent differences (36 ) (1.5 )% 10 1.0 % (26 ) (0.7 )% GILTI tax (a) 115 4.6 % — — 115 3.3 % Foreign tax credits (95 ) (3.8 )% — — (95 ) (2.7 )% Repatriation withholding tax 45 1.8 % — — 45 1.3 % Tax effects of income associated with noncontrolling interests (77 ) (3.1 )% 2 0.2 % (75 ) (2.2 )% Other, net (36 ) (1.4 )% (1 ) (0.1 )% (37 ) (1.1 )% Income tax expense $ 456 18.3 % $ 246 24.8 % $ 702 20.1 % __________________________ (a) See note on page 112 . U.S. International Total Amount Percent Amount Percent Amount Percent Year ended December 31, 2018 Income tax expense at statutory rates $ 665 21.0 % $ 163 15.3 % $ 828 19.6 % U.S. state and Canadian provincial tax expense, net of federal income tax effect 44 1.4 % 80 7.5 % 124 2.9 % Permanent differences (9 ) (0.3 )% — — (9 ) (0.2 )% GILTI tax (a) 67 2.1 % — — 67 1.6 % Foreign tax credits (50 ) (1.6 )% — — (50 ) (1.2 )% Effects of Tax Reform (a) (12 ) (0.4 )% — — (12 ) (0.3 )% Tax effects of income associated with noncontrolling interests (49 ) (1.5 )% — — (49 ) (1.2 )% Other, net (23 ) (0.7 )% 3 0.3 % (20 ) (0.5 )% Income tax expense $ 633 20.0 % $ 246 23.1 % $ 879 20.7 % Year ended December 31, 2017 Income tax expense at statutory rates $ 799 35.0 % $ 158 17.1 % $ 957 29.8 % U.S. state and Canadian provincial tax expense, net of federal income tax effect 37 1.6 % 46 5.0 % 83 2.6 % Permanent differences: Manufacturing deduction (42 ) (1.8 )% — — (42 ) (1.3 )% Other (9 ) (0.4 )% — — (9 ) (0.3 )% Change in tax law (a) (1,862 ) (81.6 )% — — (1,862 ) (58.1 )% Tax effects of income associated with noncontrolling interests (31 ) (1.4 )% — — (31 ) (1.0 )% Other, net (52 ) (2.3 )% 7 0.8 % (45 ) (1.4 )% Income tax expense (benefit) $ (1,160 ) (50.9 )% $ 211 22.9 % $ (949 ) (29.7 )% __________________________ (a) See “Tax Reform” below for a discussion of the changes in tax law in the U.S. that were enacted in December 2017. |
Components of income tax expense (benefit) | Components of income tax expense (benefit) were as follows (in millions): U.S. International Total Year ended December 31, 2019 Current: Country $ 145 $ 186 $ 331 U.S. state / Canadian provincial 37 100 137 Total current 182 286 468 Deferred: Country 290 (28 ) 262 U.S. state / Canadian provincial (16 ) (12 ) (28 ) Total deferred 274 (40 ) 234 Income tax expense $ 456 $ 246 $ 702 Year ended December 31, 2018 Current: Country $ 432 $ 141 $ 573 U.S. state / Canadian provincial 37 66 103 Total current 469 (a) 207 676 Deferred: Country 145 25 170 U.S. state / Canadian provincial 19 14 33 Total deferred 164 (b) 39 203 Income tax expense $ 633 $ 246 $ 879 Year ended December 31, 2017 Current: Country $ 1,305 $ 194 $ 1,499 U.S. state / Canadian provincial 34 61 95 Total current 1,339 (a) 255 1,594 Deferred: Country (2,522 ) (29 ) (2,551 ) U.S. state / Canadian provincial 23 (15 ) 8 Total deferred (2,499 ) (b) (44 ) (2,543 ) Income tax expense (benefit) $ (1,160 ) $ 211 $ (949 ) ___________________________ (a) Current income tax expense includes a $21 million benefit and a $781 million expense related to our Tax Reform adjustment for the years ended December 31, 2018 and 2017, respectively, as described in “Tax Reform” below. (b) Deferred income tax expense (benefit) includes a $9 million expense and a $2.6 billion benefit related to our Tax Reform adjustment for the years ended December 31, 2018 and 2017, respectively, as described in “Tax Reform” below. The following table summarizes the components of our adjustment (in millions) to reflect the effects of Tax Reform for the years ended December 31, 2018 and 2017, including whether such amounts were complete, provisional, or incomplete. The amounts presented for 2018 were completed during the fourth quarter of 2018. Year Ended December 31, Cumulative Tax Reform Adjustment 2017 2018 Accounting Status Amount Accounting Status Amount Income tax benefit from the remeasurement of U.S. deferred income tax assets and liabilities Complete $ (2,643 ) Complete $ — $ (2,643 ) Tax on the deemed repatriation of the accumulated earnings and profits of our international subsidiaries Provisional 734 Complete 6 740 Recognition of foreign withholding tax, net of U.S. federal tax benefit Complete 47 Complete — 47 Deductibility of certain executive compensation expense Incomplete — Complete 5 5 Income tax expense associated with the statutory income tax rate differential on accrual to return adjustments that were identified upon completion of our U.S. federal income tax return in 2018 Incomplete — Complete 9 9 Foreign tax credit available to offset the tax on deemed repatriation of the accumulated earnings and profits of our international subsidiaries Incomplete — Complete (32 ) (32 ) Tax Reform benefit $ (1,862 ) $ (12 ) $ (1,874 ) |
Schedule of income taxes paid (refunded), net | Income taxes paid to (received from) U.S. and international taxing authorities were as follows (in millions): Year Ended December 31, 2019 2018 2017 U.S. $ (298 ) (a) $ 1,016 $ 239 International 182 345 171 Income taxes paid (refunded), net $ (116 ) $ 1,361 $ 410 __________________________ (a) This amount includes a refund of $348 million , including interest, that we received related to the settlement of the combined audit of our U.S. federal income tax returns for 2010 and 2011. See “ Tax Returns Under Audit – U.S. Federal” below. |
Deferred income tax assets and liabilities | The tax effects of significant temporary differences representing deferred income tax assets and liabilities were as follows (in millions): December 31, 2019 2018 Deferred income tax assets: Tax credit carryforwards $ 683 $ 644 Net operating losses (NOLs) 582 523 Inventories 141 101 Compensation and employee benefit liabilities 213 175 Environmental liabilities 69 71 Other 156 141 Total deferred income tax assets 1,844 1,655 Valuation allowance (1,200 ) (1,111 ) Net deferred income tax assets 644 544 Deferred income tax liabilities: Property, plant, and equipment 4,924 4,589 Deferred turnaround costs 331 316 Inventories 217 287 Investments 122 142 Other 153 172 Total deferred income tax liabilities 5,747 5,506 Net deferred income tax liabilities $ 5,103 $ 4,962 |
Income tax credit and loss carryforwards | We had the following income tax credit and loss carryforwards as of December 31, 2019 (in millions): Amount Expiration U.S. state income tax credits (gross amount) $ 89 2020 through 2033 U.S. state income tax credits (gross amount) 17 Unlimited U.S. foreign tax credits 598 2027 U.S. state NOLs (gross amount) 10,913 2020 through 2039 |
Reconciliation of the change in unrecognized tax benefits | The following is a reconciliation of the change in unrecognized tax benefits, excluding related interest and penalties, (in millions): Year Ended December 31, 2019 2018 2017 Balance as of beginning of year $ 970 $ 941 $ 936 Additions for tax positions related to the current year 19 23 33 Additions for tax positions related to prior years 30 28 15 Reductions for tax positions related to prior years (101 ) (19 ) (42 ) Reductions for tax positions related to the lapse of applicable statute of limitations (14 ) (1 ) (1 ) Settlements (7 ) (2 ) — Balance as of end of year $ 897 $ 970 $ 941 |
Summary of income tax contingencies | The following is a reconciliation of unrecognized tax benefits to our liability for unrecognized tax benefits presented in our balance sheets (in millions). December 31, 2019 2018 Unrecognized tax benefits $ 897 $ 970 Tax refund claims not yet filed but that we intend to file (29 ) (277 ) Interest and penalties 100 88 Liability for unrecognized tax benefits presented in our balance sheets $ 968 $ 781 Our liability for unrecognized tax benefits is reflected in the following balance sheet line items (in millions): December 31, 2019 2018 Income taxes payable $ — $ 42 Other long-term liabilities 954 721 Deferred tax liabilities 14 18 Liability for unrecognized tax benefits presented in our balance sheets $ 968 $ 781 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per common share, basic and diluted | Earnings per common share were computed as follows (dollars and shares in millions, except per share amounts): Year Ended December 31, 2019 2018 2017 Earnings per common share Net income attributable to Valero stockholders $ 2,422 $ 3,122 $ 4,065 Less: Income allocated to participating securities 7 9 14 Net income available to common shareholders $ 2,415 $ 3,113 $ 4,051 Weighted-average common shares outstanding 413 426 442 Earnings per common share $ 5.84 $ 7.30 $ 9.17 Earnings per common share – assuming dilution Net income attributable to Valero stockholders $ 2,422 $ 3,122 $ 4,065 Weighted-average common shares outstanding 413 426 442 Effect of dilutive securities 1 2 2 Weighted-average common shares outstanding – assuming dilution 414 428 444 Earnings per common share – assuming dilution $ 5.84 $ 7.29 $ 9.16 |
Revenues and Segment Informat_2
Revenues and Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment activity, including total assets by reportable segment | Total assets by reportable segment were as follows (in millions): December 31, 2019 2018 Refining $ 47,067 $ 43,488 Ethanol 1,615 1,691 Renewable diesel 1,412 787 Corporate and eliminations 3,770 4,189 Total assets $ 53,864 $ 50,155 The following tables reflect information about our operating income and total expenditures for long-lived assets by reportable segment (in millions): Refining Ethanol Renewable Diesel Corporate and Eliminations Total Year ended December 31, 2019 Revenues: Revenues from external customers $ 103,746 $ 3,606 $ 970 $ 2 $ 108,324 Intersegment revenues 18 231 247 (496 ) — Total revenues 103,764 3,837 1,217 (494 ) 108,324 Cost of sales: Cost of materials and other 93,371 3,239 360 (494 ) 96,476 Operating expenses (excluding depreciation and amortization expense reflected below) 4,289 504 75 — 4,868 Depreciation and amortization expense 2,062 90 50 — 2,202 Total cost of sales 99,722 3,833 485 (494 ) 103,546 Other operating expenses 20 1 — — 21 General and administrative expenses (excluding depreciation and amortization expense reflected below) — — — 868 868 Depreciation and amortization expense — — — 53 53 Operating income by segment $ 4,022 $ 3 $ 732 $ (921 ) $ 3,836 Total expenditures for long-lived assets (a) $ 2,581 $ 47 $ 160 $ 58 $ 2,846 __________________________ (a) See note on page 123 . Refining Ethanol Renewable Diesel Corporate and Eliminations Total Year ended December 31, 2018 Revenues: Revenues from external customers $ 113,093 $ 3,428 $ 508 $ 4 $ 117,033 Intersegment revenues 25 210 170 (405 ) — Total revenues 113,118 3,638 678 (401 ) 117,033 Cost of sales: Cost of materials and other 101,866 3,008 262 (404 ) 104,732 Operating expenses (excluding depreciation and amortization expense reflected below) 4,154 470 66 — 4,690 Depreciation and amortization expense 1,910 78 29 — 2,017 Total cost of sales 107,930 3,556 357 (404 ) 111,439 Other operating expenses 45 — — — 45 General and administrative expenses (excluding depreciation and amortization expense reflected below) — — — 925 925 Depreciation and amortization expense — — — 52 52 Operating income by segment $ 5,143 $ 82 $ 321 $ (974 ) $ 4,572 Total expenditures for long-lived assets (a) $ 2,767 $ 373 $ 192 $ 44 $ 3,376 Year ended December 31, 2017 Revenues: Revenues from external customers $ 90,258 $ 3,324 $ 393 $ 5 $ 93,980 Intersegment revenues 8 176 241 (425 ) — Total revenues 90,266 3,500 634 (420 ) 93,980 Cost of sales: Cost of materials and other 80,160 2,804 498 (425 ) 83,037 Operating expenses (excluding depreciation and amortization expense reflected below) 4,014 443 47 — 4,504 Depreciation and amortization expense 1,824 81 29 — 1,934 Total cost of sales 85,998 3,328 574 (425 ) 89,475 Other operating expenses 61 — — — 61 General and administrative expenses (excluding depreciation and amortization expense reflected below) — — — 829 829 Depreciation and amortization expense — — — 52 52 Operating income by segment $ 4,207 $ 172 $ 60 $ (876 ) $ 3,563 Total expenditures for long-lived assets (a) $ 1,732 $ 84 $ 88 $ 44 $ 1,948 __________________________ (a) Total expenditures for long-lived assets includes amounts related to capital expenditures; deferred turnaround and catalyst costs; and property, plant, and equipment for acquisitions. |
Operating revenues from external customers by product | The following table provides a disaggregation of revenues from external customers for our principal products by reportable segment (in millions). Year Ended December 31, 2019 2018 2017 Refining: Gasolines and blendstocks $ 42,798 $ 46,596 $ 40,347 Distillates 51,942 55,037 41,680 Other product revenues 9,006 11,460 8,231 Total refining revenues 103,746 113,093 90,258 Ethanol: Ethanol 2,889 2,713 2,764 Distillers grains 717 715 560 Total ethanol revenues 3,606 3,428 3,324 Renewable diesel: Renewable diesel 970 508 393 Corporate – other revenues 2 4 5 Revenues $ 108,324 $ 117,033 $ 93,980 |
Operating revenues by geographic area of customer | Revenues by geographic area are shown in the following table (in millions). The geographic area is based on location of customer and no customer accounted for 10 percent or more of our revenues. Year Ended December 31, 2019 2018 2017 U.S. $ 77,173 $ 82,992 $ 66,614 Canada 7,915 9,211 7,039 U.K. and Ireland 13,584 15,208 11,556 Other countries 9,652 9,622 8,771 Revenues $ 108,324 $ 117,033 $ 93,980 |
Geographic information by country for long-lived assets | Long-lived assets by geographic area consisted of the following (in millions): December 31, 2019 2018 U.S. $ 27,485 $ 27,475 Canada 1,886 1,798 U.K. and Ireland 1,232 1,113 Other countries 497 266 Total long-lived assets $ 31,100 $ 30,652 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of cash flows, supplemental disclosures | 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): Year Ended December 31, 2019 2018 2017 Decrease (increase) in current assets: Receivables, net $ (1,468 ) $ (457 ) $ (870 ) Inventories (385 ) (197 ) (516 ) Prepaid expenses and other 427 (77 ) 151 Increase (decrease) in current liabilities: Accounts payable 1,534 304 1,842 Accrued expenses (27 ) (113 ) 21 Taxes other than income taxes payable 60 (73 ) 172 Income taxes payable 153 (684 ) 489 Changes in current assets and current liabilities $ 294 $ (1,297 ) $ 1,289 Cash flows related to interest and income taxes were as follows (in millions): Year Ended December 31, 2019 2018 2017 Interest paid in excess of amount capitalized, including interest on finance leases $ 452 $ 463 $ 457 Income taxes paid (refunded), net (see Note 15) (116 ) 1,361 410 Supplemental cash flow information related to our operating and finance leases was as follows (in millions): Year Ended December 31, 2019 Operating Leases Finance Leases Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows $ 441 $ 50 Investing cash flows 1 — Financing cash flows — 34 Changes in lease balances resulting from new and modified leases (a) 1,756 239 ___________________ (a) Includes noncash activity of $1.3 billion for operating lease ROU assets recorded on January 1, 2019 upon adoption of Topic 842. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial assets and liabilities measured on recurring basis | The following tables present information (in millions) about our assets and liabilities recognized at their fair values in our balance sheets categorized according to the fair value hierarchy of the inputs utilized by us to determine the fair values as of December 31, 2019 and 2018 . We have elected to offset the fair value amounts recognized for multiple similar derivative contracts executed with the same counterparty, including any related cash collateral assets or obligations as shown below; however, fair value amounts by hierarchy level are presented in the following tables on a gross basis. We have no derivative contracts that are subject to master netting arrangements that are reflected gross on the balance sheet. December 31, 2019 Total Gross Fair Value Effect of Counter- party Netting Effect of Cash Collateral Netting Net Carrying Value on Balance Sheet Cash Collateral Paid or Received Not Offset Fair Value Hierarchy Level 1 Level 2 Level 3 Assets Commodity derivative contracts $ 617 $ — $ — $ 617 $ (612 ) $ — $ 5 $ — Foreign currency contracts 27 — — 27 n/a n/a 27 n/a Investments of certain benefit plans 65 — 9 74 n/a n/a 74 n/a Total $ 709 $ — $ 9 $ 718 $ (612 ) $ — $ 106 Liabilities Commodity derivative contracts $ 668 $ — $ — $ 668 $ (612 ) $ (56 ) $ — $ (84 ) Environmental credit obligations — 2 — 2 n/a n/a 2 n/a Physical purchase contracts — 3 — 3 n/a n/a 3 n/a Foreign currency contracts 10 — — 10 n/a n/a 10 n/a Total $ 678 $ 5 $ — $ 683 $ (612 ) $ (56 ) $ 15 December 31, 2018 Total Gross Fair Value Effect of Counter- party Netting Effect of Cash Collateral Netting Net Carrying Value on Balance Sheet Cash Collateral Paid or Received Not Offset Fair Value Hierarchy Level 1 Level 2 Level 3 Assets Commodity derivative contracts $ 2,792 $ — $ — $ 2,792 $ (2,669 ) $ (34 ) $ 89 $ — Foreign currency contracts 4 — — 4 n/a n/a 4 n/a Investments of certain benefit plans 60 — 9 69 n/a n/a 69 n/a Total $ 2,856 $ — $ 9 $ 2,865 $ (2,669 ) $ (34 ) $ 162 Liabilities Commodity derivative contracts $ 2,681 $ — $ — $ 2,681 $ (2,669 ) $ (12 ) $ — $ (136 ) Environmental credit obligations — 13 — 13 n/a n/a 13 n/a Physical purchase contracts — 5 — 5 n/a n/a 5 n/a Foreign currency contracts 1 — — 1 n/a n/a 1 n/a Total $ 2,682 $ 18 $ — $ 2,700 $ (2,669 ) $ (12 ) $ 19 |
Carrying amounts and estimated fair value of financial instruments | Financial instruments that we recognize in our balance sheets at their carrying amounts are shown in the following table along with their associated fair values (in millions): December 31, 2019 December 31, 2018 Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Financial assets Cash and cash equivalents Level 1 $ 2,583 $ 2,583 $ 2,982 $ 2,982 Financial liabilities Debt (excluding finance leases) Level 2 8,881 10,583 8,503 8,986 |
Price Risk Management Activit_2
Price Risk Management Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Risk management activities by type of risk | As of December 31, 2019 , we had the following outstanding commodity derivative instruments that were used as cash flow hedges and economic hedges, as well as commodity derivative instruments related to the physical purchase of corn at a fixed price. The information presents the notional volume of outstanding contracts by type of instrument and year of maturity (volumes in thousands of barrels, except corn contracts that are presented in thousands of bushels). Notional Contract Volumes by Year of Maturity 2020 2021 Derivatives designated as cash flow hedges Renewable diesel: Futures – long 995 — Futures – short 2,492 — Derivatives designated as economic hedges Crude oil and refined petroleum products: Futures – long 73,348 2 Futures – short 76,045 — Options – long 1,550 — Options – short 1,550 — Corn: Futures – long 50,120 — Futures – short 66,575 295 Physical contracts – long 22,055 306 |
Fair values of derivative instruments | The following tables provide information about the fair values of our derivative instruments as of December 31, 2019 and 2018 (in millions) and the line items in the balance sheets in which the fair values are reflected. See Note 19 for additional information related to the fair values of our derivative instruments. As indicated in Note 19 , we net fair value amounts recognized for multiple similar derivative contracts executed with the same counterparty under master netting arrangements, including cash collateral assets and obligations. The following tables, however, are presented on a gross asset and gross liability basis, which results in the reflection of certain assets in liability accounts and certain liabilities in asset accounts. Balance Sheet Location December 31, 2019 December 31, 2018 Asset Liability Asset Liability Derivatives designated as hedging instruments Commodity contracts Receivables, net $ 9 $ 20 $ — $ — Derivatives not designated as hedging instruments Commodity contracts Receivables, net $ 608 $ 648 $ 2,792 $ 2,681 Physical purchase contracts Inventories — 3 — 5 Foreign currency contracts Receivables, net 27 — 4 — Foreign currency contracts Accrued expenses — 10 — 1 Total $ 635 $ 661 $ 2,796 $ 2,687 |
Effect of derivative instruments on income | The following table provides information about the gain (loss) recognized in income on our derivative instruments and the line items in the statements of income in which such gains (losses) are reflected (in millions). Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income on Derivatives Year Ended December 31, 2019 2018 2017 Commodity contracts Revenues $ 5 $ — $ — Commodity contracts Cost of materials and other (68 ) (165 ) (278 ) Commodity contracts Operating expenses (excluding depreciation and amortization expense) — 7 — Foreign currency contracts Cost of materials and other (21 ) 56 (40 ) Foreign currency contracts Other income, net 75 (43 ) — |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet December 31, 2019 (in millions) Valero Valero Other Non- Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 912 $ — $ 1,671 $ — $ 2,583 Receivables, net — — 8,904 — 8,904 Receivables from affiliates 4,336 — 13,806 (18,142 ) — Inventories — — 7,013 — 7,013 Prepaid expenses and other 63 — 406 — 469 Total current assets 5,311 — 31,800 (18,142 ) 18,969 Property, plant and equipment, at cost — — 44,294 — 44,294 Accumulated depreciation — — (15,030 ) — (15,030 ) Property, plant and equipment, net — — 29,264 — 29,264 Investment in affiliates 37,902 2,673 382 (40,957 ) — Deferred charges and other assets, net 771 — 4,860 — 5,631 Total assets $ 43,984 $ 2,673 $ 66,306 $ (59,099 ) $ 53,864 LIABILITIES AND EQUITY Current liabilities: Current portion of debt and finance lease obligations $ — $ — $ 494 $ — $ 494 Accounts payable — — 10,205 — 10,205 Accounts payable to affiliates 12,515 1,291 4,336 (18,142 ) — Accrued expenses 120 7 822 — 949 Taxes other than income taxes payable — — 1,304 — 1,304 Income taxes payable 108 — 100 — 208 Total current liabilities 12,743 1,298 17,261 (18,142 ) 13,160 Debt and finance lease obligations, less current portion 7,095 991 1,092 — 9,178 Deferred income tax liabilities — 2 5,101 — 5,103 Other long-term liabilities 2,343 — 1,544 — 3,887 Equity: Stockholders’ equity: Common stock 7 — 1 (1 ) 7 Additional paid-in capital 6,821 — 9,771 (9,771 ) 6,821 Treasury stock, at cost (15,648 ) — — — (15,648 ) Retained earnings 31,974 — 31,636 (31,636 ) 31,974 Partners’ equity — 382 — (382 ) — Accumulated other comprehensive loss (1,351 ) — (833 ) 833 (1,351 ) Total stockholders’ equity 21,803 382 40,575 (40,957 ) 21,803 Noncontrolling interests — — 733 — 733 Total equity 21,803 382 41,308 (40,957 ) 22,536 Total liabilities and equity $ 43,984 $ 2,673 $ 66,306 $ (59,099 ) $ 53,864 Condensed Consolidating Balance Sheet December 31, 2018 (in millions) Valero Valero Other Non- 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 | Condensed Consolidating Statement of Income Year Ended December 31, 2019 (in millions) Valero Valero Other Non- Eliminations Consolidated Revenues $ — $ — $ 108,324 $ — $ 108,324 Cost of sales: Cost of materials and other — — 96,476 — 96,476 Operating expenses (excluding depreciation and amortization expense reflected below) — — 4,868 — 4,868 Depreciation and amortization expense — — 2,202 — 2,202 Total cost of sales — — 103,546 — 103,546 Other operating expenses — — 21 — 21 General and administrative expenses (excluding depreciation and amortization expense reflected below) 6 — 862 — 868 Depreciation and amortization expense — — 53 — 53 Operating income (loss) (6 ) — 3,842 — 3,836 Equity in earnings of subsidiaries 3,006 406 357 (3,769 ) — Other income, net 193 — 625 (714 ) 104 Interest and debt expense, net of capitalized interest (927 ) (47 ) (194 ) 714 (454 ) Income before income tax expense (benefit) 2,266 359 4,630 (3,769 ) 3,486 Income tax expense (benefit) (156 ) — 858 — 702 Net income 2,422 359 3,772 (3,769 ) 2,784 Less: Net income attributable to noncontrolling interests — — 360 2 362 Net income attributable to stockholders $ 2,422 $ 359 $ 3,412 $ (3,771 ) $ 2,422 Condensed Consolidating Statement of Income Year Ended December 31, 2018 (in millions) Valero Valero Other Non- Eliminations Consolidated Revenues $ — $ — $ 117,033 $ — $ 117,033 Cost of sales: Cost of materials and other — — 104,732 — 104,732 Operating expenses (excluding depreciation and amortization expense reflected below) — — 4,690 — 4,690 Depreciation and amortization expense — — 2,017 — 2,017 Total cost of sales — — 111,439 — 111,439 Other operating expenses — — 45 — 45 General and administrative expenses (excluding depreciation and amortization expense reflected below) 2 — 923 — 925 Depreciation and amortization expense — — 52 — 52 Operating income (loss) (2 ) — 4,574 — 4,572 Equity in earnings of subsidiaries 3,724 319 196 (4,239 ) — Other income, net 220 2 621 (713 ) 130 Interest and debt expense, net of capitalized interest (913 ) (55 ) (215 ) 713 (470 ) Income before income tax expense (benefit) 3,029 266 5,176 (4,239 ) 4,232 Income tax expense (benefit) (93 ) 2 970 — 879 Net income 3,122 264 4,206 (4,239 ) 3,353 Less: Net income attributable to noncontrolling interests — — 163 68 231 Net income attributable to stockholders $ 3,122 $ 264 $ 4,043 $ (4,307 ) $ 3,122 Condensed Consolidating Statement of Income Year Ended December 31, 2017 (in millions) Valero Valero Other Non- Eliminations Consolidated Revenues $ — $ — $ 93,980 $ — $ 93,980 Cost of sales: Cost of materials and other — — 83,037 — 83,037 Operating expenses (excluding depreciation and amortization expense reflected below) — — 4,504 — 4,504 Depreciation and amortization expense — — 1,934 — 1,934 Total cost of sales — — 89,475 — 89,475 Other operating expenses — — 61 — 61 General and administrative expenses (excluding depreciation and amortization expense reflected below) 6 — 823 — 829 Depreciation and amortization expense — — 52 — 52 Operating income (loss) (6 ) — 3,569 — 3,563 Equity in earnings of subsidiaries 5,236 275 176 (5,687 ) — Other income, net 290 1 415 (594 ) 112 Interest and debt expense, net of capitalized interest (780 ) (36 ) (246 ) 594 (468 ) Income before income tax expense (benefit) 4,740 240 3,914 (5,687 ) 3,207 Income tax expense (benefit) 675 2 (1,626 ) — (949 ) Net income 4,065 238 5,540 (5,687 ) 4,156 Less: Net income attributable to noncontrolling interests — — 29 62 91 Net income attributable to stockholders $ 4,065 $ 238 $ 5,511 $ (5,749 ) $ 4,065 |
Condensed Consolidating Statement of Comprehensive Income | Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2019 (in millions) Valero Valero Other Non- Eliminations Consolidated Net income $ 2,422 $ 359 $ 3,772 $ (3,769 ) $ 2,784 Other comprehensive income: Foreign currency translation adjustment 346 — 286 (283 ) 349 Net loss on pension and other postretirement benefits (234 ) — (19 ) 19 (234 ) Net loss on cash flow hedges (4 ) — (8 ) 4 (8 ) Other comprehensive income before income tax benefit 108 — 259 (260 ) 107 Income tax benefit related to items of other comprehensive income (48 ) — (4 ) 4 (48 ) Other comprehensive income 156 — 263 (264 ) 155 Comprehensive income 2,578 359 4,035 (4,033 ) 2,939 Less: Comprehensive income attributable to noncontrolling interests — — 359 2 361 Comprehensive income attributable to stockholders $ 2,578 $ 359 $ 3,676 $ (4,035 ) $ 2,578 Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2018 (in millions) Valero Valero Other Non- Eliminations Consolidated Net income $ 3,122 $ 264 $ 4,206 $ (4,239 ) $ 3,353 Other comprehensive loss: Foreign currency translation adjustment (515 ) — (419 ) 417 (517 ) Net gain on pension and other postretirement benefits 49 — 18 (18 ) 49 Other comprehensive loss before income tax expense (466 ) — (401 ) 399 (468 ) Income tax expense related to items of other comprehensive loss 10 — 3 (3 ) 10 Other comprehensive loss (476 ) — (404 ) 402 (478 ) Comprehensive income 2,646 264 3,802 (3,837 ) 2,875 Less: Comprehensive income attributable to noncontrolling interests — — 161 68 229 Comprehensive income attributable to stockholders $ 2,646 $ 264 $ 3,641 $ (3,905 ) $ 2,646 Condensed Consolidating Statement of Comprehensive Income Year Ended December 31, 2017 (in millions) Valero Valero Other Non- Eliminations Consolidated Net income $ 4,065 $ 238 $ 5,540 $ (5,687 ) $ 4,156 Other comprehensive income: Foreign currency translation adjustment 514 — 434 (434 ) 514 Net gain (loss) on pension and other postretirement benefits (65 ) — 4 (4 ) (65 ) Other comprehensive income before income tax expense (benefit) 449 — 438 (438 ) 449 Income tax expense (benefit) related to items of other comprehensive income (21 ) — 1 (1 ) (21 ) Other comprehensive income 470 — 437 (437 ) 470 Comprehensive income 4,535 238 5,977 (6,124 ) 4,626 Less: Comprehensive income attributable to noncontrolling interests — — 29 62 91 Comprehensive income attributable to stockholders $ 4,535 $ 238 $ 5,948 $ (6,186 ) $ 4,535 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2019 (in millions) Valero Valero Other Non- Eliminations Consolidated Net cash provided by (used in) operating activities $ (131 ) $ (46 ) $ 6,165 $ (457 ) $ 5,531 Cash flows from investing activities: Capital expenditures (excluding VIEs) — — (1,627 ) — (1,627 ) Capital expenditures of VIEs: DGD — — (142 ) — (142 ) Other VIEs — — (225 ) — (225 ) Deferred turnaround and catalyst cost expenditures (excluding VIEs) — — (762 ) — (762 ) Deferred turnaround and catalyst cost expenditures of DGD — — (18 ) — (18 ) Investments in unconsolidated joint ventures — — (164 ) — (164 ) Acquisitions of ethanol plants — — (3 ) — (3 ) Acquisitions of undivided interests — — (72 ) — (72 ) Intercompany investing activities 395 2 (2,973 ) 2,576 — Other investing activities, net — — 12 — 12 Net cash provided by (used in) investing activities 395 2 (5,974 ) 2,576 (3,001 ) Cash flows from financing activities: Proceeds from debt issuances and borrowings (excluding VIEs) 992 — 900 — 1,892 Proceeds from borrowings of VIEs — — 239 — 239 Repayments of debt and finance lease obligations (excluding VIEs) (871 ) — (934 ) — (1,805 ) Repayments of debt of VIEs — — (6 ) — (6 ) Intercompany financing activities 2,520 268 (212 ) (2,576 ) — Purchases of common stock for treasury (777 ) — — — (777 ) Common stock dividends (1,492 ) — (81 ) 81 (1,492 ) Acquisition of VLP publicly held common units — — (950 ) — (950 ) Distributions to noncontrolling interests and unitholders of VLP — (376 ) (70 ) 376 (70 ) Other financing activities, net (15 ) — (13 ) — (28 ) Net cash provided by (used in) financing activities 357 (108 ) (1,127 ) (2,119 ) (2,997 ) Effect of foreign exchange rate changes on cash — — 68 — 68 Net increase (decrease) in cash and cash equivalents 621 (152 ) (868 ) — (399 ) Cash and cash equivalents at beginning of year 291 152 2,539 — 2,982 Cash and cash equivalents at end of year $ 912 $ — $ 1,671 $ — $ 2,583 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2018 (in millions) Valero Valero Other Non- Eliminations Consolidated Net cash provided by (used in) operating activities $ (1,207 ) $ (51 ) $ 5,828 $ (199 ) $ 4,371 Cash flows from investing activities: Capital expenditures (excluding VIEs) — — (1,463 ) — (1,463 ) Capital expenditures of VIEs: DGD — — (165 ) — (165 ) Other VIEs — — (124 ) — (124 ) Deferred turnaround and catalyst cost expenditures (excluding VIEs) — — (888 ) — (888 ) Deferred turnaround and catalyst cost expenditures of DGD — — (27 ) — (27 ) Investments in unconsolidated joint ventures — — (181 ) — (181 ) Peru Acquisition, net of cash acquired — — (468 ) — (468 ) Acquisitions of ethanol plants — — (320 ) — (320 ) Acquisitions of undivided interests — — (212 ) — (212 ) Minor acquisitions — — (88 ) — (88 ) Intercompany investing activities 758 102 (2,381 ) 1,521 — Other investing activities, net — — 8 — 8 Net cash provided by (used in) investing activities 758 102 (6,309 ) 1,521 (3,928 ) Cash flows from financing activities: Proceeds from debt issuances and borrowings (excluding VIEs) 750 498 10 — 1,258 Proceeds from borrowings of VIEs — — 109 — 109 Repayments of debt and finance lease obligations (excluding VIEs) (787 ) (410 ) (156 ) — (1,353 ) Repayments of debt of VIEs — — (6 ) — (6 ) Intercompany financing activities 2,106 190 (775 ) (1,521 ) — Purchases of common stock for treasury (1,708 ) — — — (1,708 ) Common stock dividends (1,369 ) — (32 ) 32 (1,369 ) Contributions to noncontrolling interests — — 32 — 32 Distributions to noncontrolling interests and unitholders of VLP — (215 ) (68 ) 167 (116 ) Other financing activities, net 2 (4 ) (13 ) — (15 ) Net cash provided by (used in) financing activities (1,006 ) 59 (899 ) (1,322 ) (3,168 ) Effect of foreign exchange rate changes on cash — — (143 ) — (143 ) Net increase (decrease) in cash and cash equivalents (1,455 ) 110 (1,523 ) — (2,868 ) Cash and cash equivalents at beginning of year 1,746 42 4,062 — 5,850 Cash and cash equivalents at end of year $ 291 $ 152 $ 2,539 $ — $ 2,982 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2017 (in millions) Valero Valero Other Non- Eliminations Consolidated Net cash provided by (used in) operating activities $ (73 ) $ (34 ) $ 5,720 $ (131 ) $ 5,482 Cash flows from investing activities: Capital expenditures (excluding VIEs) — — (1,269 ) — (1,269 ) Capital expenditures of VIEs: DGD — — (84 ) — (84 ) Other VIEs — — (26 ) — (26 ) Deferred turnaround and catalyst cost expenditures (excluding VIEs) — — (519 ) — (519 ) Deferred turnaround and catalyst cost expenditures of DGD — — (4 ) — (4 ) Investments in unconsolidated joint ventures — — (406 ) — (406 ) Acquisitions of undivided interests — — (72 ) — (72 ) Intercompany investing activities (4,002 ) (187 ) (6,696 ) 10,885 — Other investing activities, net — — (2 ) — (2 ) Net cash used in investing activities (4,002 ) (187 ) (9,078 ) 10,885 (2,382 ) Cash flows from financing activities: Proceeds from debt issuances and borrowings (excluding VIEs) — 380 — — 380 Repayments of debt and finance lease obligations (excluding VIEs) — — (15 ) — (15 ) Repayments of debt of VIEs — — (6 ) — (6 ) Intercompany financing activities 6,704 (63 ) 4,244 (10,885 ) — Purchases of common stock for treasury (1,372 ) — — — (1,372 ) Common stock dividends (1,242 ) — (10 ) 10 (1,242 ) Contributions from noncontrolling interests — — 30 — 30 Distributions to noncontrolling interests and unitholders of VLP — (161 ) (27 ) 121 (67 ) Other financing activities, net 10 36 (26 ) — 20 Net cash provided by financing activities 4,100 192 4,190 (10,754 ) (2,272 ) Effect of foreign exchange rate changes on cash — — 206 — 206 Net increase (decrease) in cash and cash equivalents 25 (29 ) 1,038 — 1,034 Cash and cash equivalents at beginning of year 1,721 71 3,024 — 4,816 Cash and cash equivalents at end of year $ 1,746 $ 42 $ 4,062 $ — $ 5,850 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information | The following tables summarize quarterly financial data for the years ended December 31, 2019 and 2018 (in millions, except per share amounts). 2019 Quarter Ended March 31 June 30 September 30 December 31 Revenues $ 24,263 $ 28,933 $ 27,249 $ 27,879 Gross profit (a) 533 1,123 1,119 2,003 Operating income 308 908 881 1,739 Net income 167 648 639 1,330 Net income attributable to Valero Energy Corporation stockholders 141 612 609 1,060 Earnings per common share 0.34 1.47 1.48 2.58 Earnings per common share – assuming dilution 0.34 1.47 1.48 2.58 2018 Quarter Ended March 31 June 30 September 30 December 31 Revenues $ 26,439 $ 31,015 $ 30,849 $ 28,730 Gross profit (a) 1,062 1,535 1,451 1,546 Operating income 801 1,253 1,219 1,299 Net income 582 875 874 1,022 Net income attributable to Valero Energy Corporation stockholders 469 845 856 952 Earnings per common share 1.09 1.96 2.01 2.26 Earnings per common share – assuming dilution 1.09 1.96 2.01 2.24 ___________________________ (a) Gross profit is calculated as revenues less total cost of sales. |
Description of Business, Basi_4
Description of Business, Basis of Presentation, and Significant Accounting Policies (Details) branded_wholesale_site in Thousands, bbl / d in Thousands, gal / yr in Millions, $ in Millions | Jan. 01, 2019USD ($) | Dec. 31, 2019USD ($)gal / yrbbl / drefineryethanol_plantbranded_wholesale_site | |
New Accounting Pronouncements [Line Items] | |||
Number of petroleum refineries owned and operated | refinery | 15 | ||
Combined total throughput capacity of petroleum refining (barrels per day) | bbl / d | 3,150 | ||
Number of ethanol plants owned and operated | ethanol_plant | 14 | ||
Combined capacity of ethanol (gallons per year) | gal / yr | 1,730 | ||
Number of branded wholesale sites | branded_wholesale_site | 7 | ||
Recognition of ROU assets and lease liabilities for operating leases | [1] | $ 1,756 | |
Topic 842 [Member] | |||
New Accounting Pronouncements [Line Items] | |||
Recognition of ROU assets and lease liabilities for operating leases | $ 1,300 | ||
Topic 842 [Member] | MVP Terminal [Member] | |||
New Accounting Pronouncements [Line Items] | |||
Derecognition of existing assets under construction related to build-to-suit lease arrangement | $ 539 | ||
Grain Processing Equipment [Member] | |||
New Accounting Pronouncements [Line Items] | |||
Property, plant, and equipment, useful life | 20 years | ||
Minimum [Member] | |||
New Accounting Pronouncements [Line Items] | |||
Property, plant, and equipment, useful life | 20 years | ||
Typical post-delivery payment terms (in days) | 2 days | ||
Maximum [Member] | |||
New Accounting Pronouncements [Line Items] | |||
Property, plant, and equipment, useful life | 30 years | ||
Typical post-delivery payment terms (in days) | 10 days | ||
[1] | Includes noncash activity of $1.3 billion for operating lease ROU assets recorded on January 1, 2019 upon adoption of Topic 842. |
Merger and Acquisitions (Detail
Merger and Acquisitions (Details) $ / shares in Units, gal in Millions | Jan. 10, 2019USD ($)$ / shares | Nov. 15, 2018USD ($)plantgal | May 14, 2018USD ($)MBbls | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Acquisitions and Merger (Textual) | ||||||
Merger Transaction, aggregate merger consideration funded with available cash on hand | $ 950,000,000 | $ 0 | $ 0 | |||
Amount paid from available cash on hand | 0 | 468,000,000 | 0 | |||
Goodwill | 260,000,000 | 260,000,000 | ||||
Ethanol Plants [Member] | ||||||
Acquisitions and Merger (Textual) | ||||||
Acquisition agreement, number of ethanol plants | plant | 3 | |||||
Acquisition agreement, total cash consideration | $ 320,000,000 | $ 3,000,000 | $ 320,000,000 | $ 0 | ||
Working capital | $ 20,000,000 | |||||
Acquisition agreement, combined ethanol production capacity per year | gal | 280 | |||||
VLP [Member] | ||||||
Acquisitions and Merger (Textual) | ||||||
Merger Transaction, price per common unit (in usd per unit) | $ / shares | $ 42.25 | |||||
Merger Transaction, aggregate merger consideration funded with available cash on hand | $ 950,000,000 | |||||
Pure Biofuels del Peru S.A.C (Now Known as Valero Peru S.A.C.) [Member] | ||||||
Acquisitions and Merger (Textual) | ||||||
Working capital | $ 132,000,000 | |||||
Percent equity interests acquired | 100.00% | |||||
Amount paid from available cash on hand | $ 468,000,000 | |||||
Identifiable intangible assets | 200,000,000 | |||||
Goodwill | $ 260,000,000 | |||||
Amortization period of identifiable intangible assets | 10 years | |||||
Total amount of goodwill deductible for tax purposes | $ 0 | |||||
Pure Biofuels del Peru S.A.C (Now Known as Valero Peru S.A.C.) [Member] | Port of Callao Terminal [Member] | ||||||
Acquisitions and Merger (Textual) | ||||||
Approximate storage capacity of terminal (in thousands of barrels) | MBbls | 1,000 | |||||
Pure Biofuels del Peru S.A.C (Now Known as Valero Peru S.A.C.) [Member] | Paita Terminal [Member] | ||||||
Acquisitions and Merger (Textual) | ||||||
Approximate storage capacity of terminal (in thousands of barrels) | MBbls | 180 |
Merger and Acquisitions, Fair V
Merger and Acquisitions, Fair Values of Assets Acquired and Liabilities Assumed, Net (Details) - Pure Biofuels del Peru S.A.C (Now Known as Valero Peru S.A.C.) [Member] $ in Millions | May 14, 2018USD ($) |
Fair Values of Assets Acquired, Goodwill, and Liabilities Assumed, Net | |
Current assets, net of cash acquired | $ 158 |
Property, plant, and equipment | 102 |
Deferred charges and other assets | 466 |
Current liabilities, excluding current portion of debt | (26) |
Debt assumed, including current portion | (137) |
Deferred income tax liabilities | (62) |
Other long-term liabilities | (27) |
Noncontrolling interest | (6) |
Total consideration, net of cash acquired | $ 468 |
Receivables (Details)
Receivables (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables | ||
Commodity derivative and foreign currency contract receivables | $ 116 | $ 229 |
Other receivables | 730 | 166 |
Total receivables | 8,940 | 7,379 |
Allowance for doubtful accounts | (36) | (34) |
Receivables, net | 8,904 | 7,345 |
Receivables from Contracts with Customers [Member] | ||
Receivables | ||
Receivables | 5,610 | 4,673 |
Receivables from Certain Purchase and Sale Arrangements [Member] | ||
Receivables | ||
Receivables | $ 2,484 | $ 2,311 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Inventories | ||
Refinery feedstocks | $ 2,399 | $ 2,265 |
Refined petroleum products and blendstocks | 4,034 | 3,653 |
Ethanol feedstocks and products | 260 | 298 |
Renewable diesel feedstocks and products | 46 | 52 |
Materials and supplies | 274 | 264 |
Inventories | 7,013 | 6,532 |
Inventories (Textual) | ||
Excess of market value over carrying amount of LIFO inventories | 2,500 | 1,500 |
Inventory not valued at LIFO | $ 1,400 | $ 1,100 |
Leases, Total Lease Cost by Cla
Leases, Total Lease Cost by Class of Underlying Asset (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Finance lease cost: | |
Amortization of ROU assets | $ 54 |
Interest on lease liabilities | 50 |
Lease cost: | |
Operating lease cost | 439 |
Variable lease cost | 103 |
Short-term lease cost | 91 |
Sublease income | (30) |
Total lease cost | 707 |
Pipelines, Terminals, and Tanks [Member] | |
Finance lease cost: | |
Amortization of ROU assets | 44 |
Interest on lease liabilities | 47 |
Lease cost: | |
Operating lease cost | 182 |
Variable lease cost | 66 |
Short-term lease cost | 9 |
Sublease income | 0 |
Total lease cost | 348 |
Transportation, Marine [Member] | |
Finance lease cost: | |
Amortization of ROU assets | 0 |
Interest on lease liabilities | 0 |
Lease cost: | |
Operating lease cost | 145 |
Variable lease cost | 35 |
Short-term lease cost | 53 |
Sublease income | (27) |
Total lease cost | 206 |
Transportation, Rail [Member] | |
Finance lease cost: | |
Amortization of ROU assets | 0 |
Interest on lease liabilities | 0 |
Lease cost: | |
Operating lease cost | 52 |
Variable lease cost | 0 |
Short-term lease cost | 0 |
Sublease income | 0 |
Total lease cost | 52 |
Feedstock Processing Equipment [Member] | |
Finance lease cost: | |
Amortization of ROU assets | 7 |
Interest on lease liabilities | 1 |
Lease cost: | |
Operating lease cost | 20 |
Variable lease cost | 1 |
Short-term lease cost | 29 |
Sublease income | 0 |
Total lease cost | 58 |
Energy and Gases [Member] | |
Finance lease cost: | |
Amortization of ROU assets | 3 |
Interest on lease liabilities | 2 |
Lease cost: | |
Operating lease cost | 9 |
Variable lease cost | 0 |
Short-term lease cost | 0 |
Sublease income | 0 |
Total lease cost | 14 |
Real Estate [Member] | |
Finance lease cost: | |
Amortization of ROU assets | 0 |
Interest on lease liabilities | 0 |
Lease cost: | |
Operating lease cost | 27 |
Variable lease cost | 1 |
Short-term lease cost | 0 |
Sublease income | (3) |
Total lease cost | 25 |
Other [Member] | |
Finance lease cost: | |
Amortization of ROU assets | 0 |
Interest on lease liabilities | 0 |
Lease cost: | |
Operating lease cost | 4 |
Variable lease cost | 0 |
Short-term lease cost | 0 |
Sublease income | 0 |
Total lease cost | $ 4 |
Leases, Rental Expense, Net of
Leases, Rental Expense, Net of Sublease Rental Income (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Rental Expense, Net of Sublease Income | ||
Minimum rental expense | $ 515 | $ 691 |
Contingent rental expense | 19 | 21 |
Total rental expense | 534 | 712 |
Less: Sublease rental income | 31 | 54 |
Rental expense, net of sublease rental income | $ 503 | $ 658 |
Leases, Additional Information
Leases, Additional Information (Details) $ in Millions | Dec. 31, 2019USD ($) |
ROU assets, net reflected in the following balance sheet line items: | |
Operating lease ROU assets, net, balance sheet line item | us-gaap:OtherAssetsNoncurrent |
Operating leases - deferred charges and other assets, net | $ 1,329 |
Current lease liabilities reflected in the following balance sheet line items: | |
Current operating lease liabilities, balance sheet line item | us-gaap:AccruedLiabilitiesCurrent |
Operating leases - accrued expenses | $ 331 |
Noncurrent lease liabilities reflected in the following balance sheet line items: | |
Noncurrent operating lease liabilities, balance sheet line item | us-gaap:OtherLiabilitiesNoncurrent |
Operating leases - other long-term liabilities | $ 959 |
Operating leases - total lease liabilities | $ 1,290 |
ROU assets, net reflected in the following balance sheet line items: | |
Finance lease ROU assets, net, balance sheet line item | us-gaap:PropertyPlantAndEquipmentNet |
Finance leases - property, plant, and equipment, net | $ 790 |
Current lease liabilities reflected in the following balance sheet line items: | |
Current finance lease liabilities, balance sheet line item | us-gaap:DebtCurrent |
Finance leases - current portion of debt and finance lease obligations | $ 41 |
Noncurrent lease liabilities reflected in the following balance sheet line items: | |
Noncurrent finance lease liabilities, balance sheet line item | us-gaap:LongTermDebtAndCapitalLeaseObligations |
Finance leases - debt and finance lease obligations, less current portion | $ 750 |
Finance leases - total lease liabilities | $ 791 |
Operating Leases | |
Weighted-average remaining lease term | 7 years 8 months 12 days |
Weighted-average discount rate | 4.90% |
Finance Leases | |
Weighted-average remaining lease term | 19 years 8 months 12 days |
Weighted-average discount rate | 5.20% |
Leases, Remaining Minimum Lease
Leases, Remaining Minimum Lease Payments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Leases | ||
2020 | $ 376 | |
2021 | 250 | |
2022 | 194 | |
2023 | 160 | |
2024 | 125 | |
Thereafter | 498 | |
Total undiscounted lease payments | 1,603 | |
Less: Amount associated with discounting | 313 | |
Total lease liabilities | 1,290 | |
Finance Leases | ||
2020 | 88 | |
2021 | 86 | |
2022 | 87 | |
2023 | 91 | |
2024 | 82 | |
Thereafter | 1,011 | |
Total undiscounted lease payments | 1,445 | |
Less: Amount associated with discounting | 654 | |
Total lease liabilities | $ 791 | |
Operating Leases | ||
2019 | $ 359 | |
2020 | 245 | |
2021 | 178 | |
2022 | 146 | |
2023 | 123 | |
Thereafter | 514 | |
Total undiscounted lease payments | 1,565 | |
Capital Leases | ||
2019 | 69 | |
2020 | 65 | |
2021 | 62 | |
2022 | 64 | |
2023 | 65 | |
Thereafter | 957 | |
Total undiscounted lease payments | 1,282 | |
Less: Amount associated with discounting | 676 | |
Total lease liabilities | $ 606 |
Leases, Future Lease Commenceme
Leases, Future Lease Commencement (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Future Lease Commencement (Textual) | ||
Finance lease ROU asset | $ 790 | |
Finance lease liability | $ 791 | |
MVP Terminal [Member] | Expected [Member] | ||
Future Lease Commencement (Textual) | ||
Finance lease ROU asset | $ 1,500 | |
Finance lease liability | $ 1,500 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant, and Equipment, Net | |||
Property, plant, and equipment, at cost | $ 44,294 | $ 42,473 | |
Accumulated depreciation | (15,030) | (13,625) | |
Property, plant, and equipment, net | 29,264 | 28,848 | |
Property, Plant, and Equipment (Textual) | |||
Depreciation expense | 1,500 | 1,400 | $ 1,300 |
Land [Member] | |||
Property, Plant, and Equipment, Net | |||
Property, plant, and equipment, at cost | 476 | 416 | |
Crude Oil Processing Facilities [Member] | |||
Property, Plant, and Equipment, Net | |||
Property, plant, and equipment, at cost | 32,047 | 30,721 | |
Transportation and Terminaling Facilities [Member] | |||
Property, Plant, and Equipment, Net | |||
Property, plant, and equipment, at cost | 5,179 | 4,935 | |
Grain Processing Equipment [Member] | |||
Property, Plant, and Equipment, Net | |||
Property, plant, and equipment, at cost | 1,201 | 1,212 | |
Administrative Buildings [Member] | |||
Property, Plant, and Equipment, Net | |||
Property, plant, and equipment, at cost | 1,015 | 953 | |
Finance lease ROU assets [Member] | |||
Property, Plant, and Equipment, Net | |||
Property, plant, and equipment, at cost | 944 | ||
Accumulated depreciation | (155) | ||
Finance lease ROU assets [Member] | |||
Property, Plant, and Equipment, Net | |||
Property, plant, and equipment, at cost | 711 | ||
Accumulated depreciation | (106) | ||
Other [Member] | |||
Property, Plant, and Equipment, Net | |||
Property, plant, and equipment, at cost | 1,701 | 1,565 | |
Construction in Progress [Member] | |||
Property, Plant, and Equipment, Net | |||
Property, plant, and equipment, at cost | $ 1,731 | $ 1,960 |
Deferred Charges and Other As_3
Deferred Charges and Other Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred Charges and Other Assets | |||
Deferred turnaround and catalyst costs, net | $ 1,778 | $ 1,749 | |
Operating lease ROU assets, net (see Note 5) | 1,329 | ||
Investments in unconsolidated joint ventures | 942 | 542 | |
Income taxes receivable | 525 | 343 | |
Intangible assets, net | 283 | 307 | |
Goodwill | 260 | 260 | |
Other | 514 | 431 | |
Deferred charges and other assets, net | 5,631 | 3,632 | |
Deferred Charges and Other Assets (Textual) | |||
Amortization expense, deferred turnaround and catalyst costs and intangible assets | $ 759 | $ 668 | $ 650 |
Accrued Expenses and Other Lo_3
Accrued Expenses and Other Long-Term Liabilities (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | |
Accrued Expenses | |||
Operating lease liabilities, current | $ 331,000,000 | ||
Defined benefit plan liabilities, current | 37,000,000 | $ 43,000,000 | |
Environmental liabilities, current | 27,000,000 | 29,000,000 | |
Wage and other employee-related liabilities, current | 292,000,000 | 302,000,000 | |
Accrued interest expense, current | 83,000,000 | 93,000,000 | |
Contract liabilities from contracts with customers, current | 55,000,000 | 31,000,000 | |
Environmental credit obligations, current | 31,000,000 | 34,000,000 | |
Other accrued liabilities, current | 93,000,000 | 98,000,000 | |
Accrued expenses | 949,000,000 | 630,000,000 | |
Other Long-Term Liabilities | |||
Operating lease liabilities, noncurrent | 959,000,000 | ||
Liability for unrecognized tax benefits, noncurrent | 954,000,000 | 721,000,000 | |
Defined benefit plan liabilities, noncurrent | 834,000,000 | 654,000,000 | |
Repatriation tax liability, noncurrent | [1] | 508,000,000 | 603,000,000 |
Environmental liabilities, noncurrent | 319,000,000 | 327,000,000 | |
Wage and other employee-related liabilities, noncurrent | 121,000,000 | 109,000,000 | |
Other accrued liabilities, noncurrent | 192,000,000 | 453,000,000 | |
Other long-term liabilities | 3,887,000,000 | 2,867,000,000 | |
Accrued Expenses and Other Long-Term Liabilities (Textual) | |||
Current portion of repatriation tax liability, included in income taxes payable | $ 54,000,000 | $ 0 | |
[1] | The current portion of repatriation tax liability is included in income taxes payable. As of December 31, 2019 , the current portion of repatriation tax liability was $54 million . There was no current portion of repatriation tax liability as of December 31, 2018 . |
Debt and Finance Lease Obliga_3
Debt and Finance Lease Obligations (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt and Finance Lease Obligations: | ||
Net unamortized debt issuance costs and other | $ (88) | $ (80) |
Total debt | 8,881 | 8,503 |
Finance lease obligations (see Note 5) | 791 | |
Finance lease obligations (see Note 5) | 606 | |
Total debt and finance lease obligations | 9,672 | 9,109 |
Less: Current portion | 494 | 238 |
Debt and finance lease obligations, less current portion | 9,178 | 8,871 |
Credit Facilities [Member] | Canadian Revolver [Member] | ||
Short-term Debt [Line Items] | ||
Short-term debt at stated values | 0 | 0 |
Credit Facilities [Member] | Accounts Receivable Sales Facility [Member] | ||
Short-term Debt [Line Items] | ||
Short-term debt at stated values | 100 | 100 |
Credit Facilities [Member] | Valero Revolver [Member] | ||
Debt Instruments [Abstract] | ||
Long-term debt at stated values | 0 | 0 |
Credit Facilities [Member] | IEnova Revolver [Member] | ||
Debt Instruments [Abstract] | ||
Long-term debt at stated values | 348 | 109 |
Senior Notes [Member] | 6.625% Valero Senior Notes Due in 2037 [Member] | ||
Debt Instruments [Abstract] | ||
Long-term debt at stated values | $ 1,500 | 1,500 |
Interest rate of notes (percent) | 6.625% | |
Senior Notes [Member] | 3.4% Valero Senior Notes Due in 2026 [Member] | ||
Debt Instruments [Abstract] | ||
Long-term debt at stated values | $ 1,250 | 1,250 |
Interest rate of notes (percent) | 3.40% | |
Senior Notes [Member] | 4.0% Valero Senior Notes Due in 2029 [Member] | ||
Debt Instruments [Abstract] | ||
Long-term debt at stated values | $ 1,000 | 0 |
Interest rate of notes (percent) | 4.00% | |
Senior Notes [Member] | 6.125% Valero Senior Notes Due In 2020 [Member] | ||
Debt Instruments [Abstract] | ||
Long-term debt at stated values | $ 0 | 850 |
Interest rate of notes (percent) | 6.125% | |
Senior Notes [Member] | 4.35% Valero Senior Notes Due in 2028 [Member] | ||
Debt Instruments [Abstract] | ||
Long-term debt at stated values | $ 750 | $ 750 |
Interest rate of notes (percent) | 4.35% | 4.35% |
Senior Notes [Member] | 7.5% Valero Senior Notes Due In 2032 [Member] | ||
Debt Instruments [Abstract] | ||
Long-term debt at stated values | $ 750 | $ 750 |
Interest rate of notes (percent) | 7.50% | |
Senior Notes [Member] | 4.9% Valero Senior Notes Due in 2045 [Member] | ||
Debt Instruments [Abstract] | ||
Long-term debt at stated values | $ 650 | 650 |
Interest rate of notes (percent) | 4.90% | |
Senior Notes [Member] | 3.65% Valero Senior Notes Due in 2025 [Member] | ||
Debt Instruments [Abstract] | ||
Long-term debt at stated values | $ 600 | 600 |
Interest rate of notes (percent) | 3.65% | |
Senior Notes [Member] | 10.5% Valero Senior Notes Due In 2039 [Member] | ||
Debt Instruments [Abstract] | ||
Long-term debt at stated values | $ 250 | 250 |
Interest rate of notes (percent) | 10.50% | |
Senior Notes [Member] | 8.75% Valero Senior Notes Due In 2030 [Member] | ||
Debt Instruments [Abstract] | ||
Long-term debt at stated values | $ 200 | 200 |
Interest rate of notes (percent) | 8.75% | |
Senior Notes [Member] | 7.45% Valero Senior Notes Due In 2097 [Member] | ||
Debt Instruments [Abstract] | ||
Long-term debt at stated values | $ 100 | 100 |
Interest rate of notes (percent) | 7.45% | |
Senior Notes [Member] | 6.75% Valero Senior Notes Due In 2037 [Member] | ||
Debt Instruments [Abstract] | ||
Long-term debt at stated values | $ 24 | 24 |
Interest rate of notes (percent) | 6.75% | |
Senior Notes [Member] | 4.375% VLP Senior Notes Due in 2026 [Member] | ||
Debt Instruments [Abstract] | ||
Long-term debt at stated values | $ 500 | 500 |
Interest rate of notes (percent) | 4.375% | |
Senior Notes [Member] | 4.5% VLP Senior Notes Due in 2028 [Member] | ||
Debt Instruments [Abstract] | ||
Long-term debt at stated values | $ 500 | 500 |
Interest rate of notes (percent) | 4.50% | |
Revenue Bonds [Member] | Gulf Opportunity Zone Revenue Bonds Series 2010, 4.0% [Member] | ||
Debt Instruments [Abstract] | ||
Long-term debt at stated values | $ 300 | 300 |
Interest rate of notes (percent) | 4.00% | |
Debentures [Member] | Debenture, 7.65% Due In 2026 [Member] | ||
Debt Instruments [Abstract] | ||
Long-term debt at stated values | $ 100 | 100 |
Interest rate of notes (percent) | 7.65% | |
Other Debt [Member] | ||
Debt Instruments [Abstract] | ||
Long-term debt at stated values | $ 47 | $ 50 |
Debt and Finance Lease Obliga_4
Debt and Finance Lease Obligations, Credit Facilities (Details) | 12 Months Ended | |||||||||||||
Dec. 31, 2019USD ($) | Dec. 31, 2019CAD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018CAD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017CAD ($) | Dec. 31, 2019CAD ($) | Nov. 30, 2019USD ($) | Nov. 30, 2019CAD ($) | Sep. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Feb. 28, 2018USD ($) | |||
Variable Interest Entity, Primary Beneficiary [Member] | ||||||||||||||
Credit Facilities (Textual) | ||||||||||||||
Amount borrowed | $ 239,000,000 | $ 109,000,000 | $ 0 | |||||||||||
Canadian Revolver [Member] | Credit Facilities [Member] | ||||||||||||||
Line of Credit Facility | ||||||||||||||
Facility amount | $ 150,000,000 | $ 150,000,000 | ||||||||||||
Outstanding borrowings or letters of credit issued, short-term | 0 | |||||||||||||
Availability | 145,000,000 | |||||||||||||
Credit Facilities (Textual) | ||||||||||||||
Repayments of lines of credit | $ 0 | $ 0 | $ 0 | |||||||||||
Borrowings from short-term lines of credit | $ 0 | $ 0 | $ 0 | |||||||||||
Canadian Revolver Letter of Credit [Member] | Credit Facilities [Member] | ||||||||||||||
Line of Credit Facility | ||||||||||||||
Outstanding borrowings or letters of credit issued, short-term | [1] | $ 5,000,000 | ||||||||||||
Committed Letter of Credit Facility Expires November 2019 [Member] | Credit Facilities [Member] | ||||||||||||||
Line of Credit Facility | ||||||||||||||
Facility amount | 50,000,000 | [2] | $ 50,000,000 | $ 100,000,000 | ||||||||||
Outstanding borrowings or letters of credit issued, short-term | [1],[2] | 0 | ||||||||||||
Availability | [2] | 50,000,000 | ||||||||||||
Accounts Receivable Sales Facility [Member] | Credit Facilities [Member] | ||||||||||||||
Line of Credit Facility | ||||||||||||||
Facility amount | 1,300,000,000 | |||||||||||||
Outstanding borrowings or letters of credit issued, short-term | 100,000,000 | |||||||||||||
Availability | $ 1,200,000,000 | |||||||||||||
Credit Facilities (Textual) | ||||||||||||||
Interest rate of credit facility at period end (percent) | 2.3866% | 3.0618% | 2.3866% | |||||||||||
Repayments of lines of credit | $ 900,000,000 | $ 0 | 0 | |||||||||||
Borrowings from short-term lines of credit | 900,000,000 | 0 | 0 | |||||||||||
Designated pool of accounts receivable | 2,200,000,000 | 1,800,000,000 | ||||||||||||
Uncommitted Letter of Credit Facility [Member] | Credit Facilities [Member] | ||||||||||||||
Line of Credit Facility | ||||||||||||||
Outstanding borrowings or letters of credit issued, short-term | [1] | 121,000,000 | ||||||||||||
Credit Facilities [Member] | Valero Revolver [Member] | ||||||||||||||
Line of Credit Facility | ||||||||||||||
Facility amount | 4,000,000,000 | 3,000,000,000 | $ 4,000,000,000 | |||||||||||
Outstanding borrowings or letters of credit issued | 0 | |||||||||||||
Availability | 3,966,000,000 | |||||||||||||
Credit Facilities (Textual) | ||||||||||||||
Borrowings from long-term lines of credit | 0 | 0 | 0 | |||||||||||
Repayments of long-term lines of credit | 0 | 0 | 0 | |||||||||||
Credit Facilities [Member] | Valero Revolver Letter of Credit [Member] | ||||||||||||||
Line of Credit Facility | ||||||||||||||
Facility amount | 2,400,000,000 | |||||||||||||
Outstanding borrowings or letters of credit issued | [1] | $ 34,000,000 | ||||||||||||
Credit Facilities [Member] | VLP Revolver [Member] | Valero Energy Partners LP [Member] | ||||||||||||||
Line of Credit Facility | ||||||||||||||
Facility amount | 750,000,000 | |||||||||||||
Credit Facilities (Textual) | ||||||||||||||
Borrowings from long-term lines of credit | 380,000,000 | |||||||||||||
Repayments of long-term lines of credit | $ 410,000,000 | $ 0 | ||||||||||||
Credit Facilities [Member] | IEnova Revolver [Member] | Central Mexico Terminals [Member] | ||||||||||||||
Line of Credit Facility | ||||||||||||||
Facility amount | $ 491,000,000 | $ 340,000,000 | ||||||||||||
Credit Facilities (Textual) | ||||||||||||||
Interest rate of credit facility at period end (percent) | 5.749% | 6.046% | 5.749% | |||||||||||
Amount borrowed | $ 239,000,000 | $ 109,000,000 | ||||||||||||
Repayments of lines of credit | 0 | 0 | ||||||||||||
Credit Facilities [Member] | IEnova Revolver [Member] | Central Mexico Terminals [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||||||||||||
Line of Credit Facility | ||||||||||||||
Facility amount | [3] | 491,000,000 | ||||||||||||
Outstanding borrowings or letters of credit issued | [3] | 348,000,000 | ||||||||||||
Availability | [3] | $ 143,000,000 | ||||||||||||
Senior Notes [Member] | VLP Senior Notes Due in 2028 [Member] | ||||||||||||||
Credit Facilities (Textual) | ||||||||||||||
Interest rate of notes (percent) | 4.50% | 4.50% | ||||||||||||
Senior Notes [Member] | Valero Energy Partners LP [Member] | VLP Senior Notes Due in 2028 [Member] | ||||||||||||||
Credit Facilities (Textual) | ||||||||||||||
Face amount of long-term debt issuance | $ 500,000,000 | |||||||||||||
Interest rate of notes (percent) | 4.50% | 4.50% | 4.50% | |||||||||||
[1] | Letters of credit issued as of December 31, 2019 expire at various times in 2020 through 2021 . | |||||||||||||
[2] | The letter of credit facility was amended to reduce the facility from $100 million to $50 million and to extend the maturity date from November 2019 to November 2020. | |||||||||||||
[3] | Creditors of our VIE do not have recourse against us. |
Debt and Finance Lease Obliga_5
Debt and Finance Lease Obligations, Public Debt (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Senior Notes [Member] | 4.0% Valero Senior Notes Due in 2029 [Member] | |||
Public Debt (Textual) | |||
Face amount of long-term debt issuance | $ 1,000,000,000 | ||
Interest rate of notes (percent) | 4.00% | ||
Proceeds from issuance of senior long-term debt | $ 992,000,000 | ||
Senior Notes [Member] | 6.125% Valero Senior Notes Due In 2020 [Member] | |||
Public Debt (Textual) | |||
Interest rate of notes (percent) | 6.125% | ||
Early repayment of senior debt | $ 871,000,000 | ||
Debt instrument, redemption price, percentage of principal amount redeemed (percent) | 102.48% | ||
Early redemption fee | $ 21,000,000 | ||
Senior Notes [Member] | VLP Senior Notes Due in 2026 [Member] | |||
Public Debt (Textual) | |||
Interest rate of notes (percent) | 4.375% | ||
Senior Notes [Member] | VLP Senior Notes Due in 2026 [Member] | Valero Energy Partners LP [Member] | |||
Public Debt (Textual) | |||
Interest rate of notes (percent) | 4.375% | ||
Senior Notes [Member] | VLP Senior Notes Due in 2028 [Member] | |||
Public Debt (Textual) | |||
Interest rate of notes (percent) | 4.50% | ||
Senior Notes [Member] | VLP Senior Notes Due in 2028 [Member] | Valero Energy Partners LP [Member] | |||
Public Debt (Textual) | |||
Face amount of long-term debt issuance | $ 500,000,000 | ||
Interest rate of notes (percent) | 4.50% | 4.50% | |
Proceeds from issuance of senior long-term debt | $ 498,000,000 | ||
Senior Notes [Member] | Senior Notes Due In 2028 [Member] | |||
Public Debt (Textual) | |||
Face amount of long-term debt issuance | $ 750,000,000 | ||
Interest rate of notes (percent) | 4.35% | 4.35% | |
Proceeds from issuance of senior long-term debt | $ 749,000,000 | ||
Senior Notes [Member] | Senior Notes Due In 2019 [Member] | |||
Public Debt (Textual) | |||
Interest rate of notes (percent) | 9.375% | ||
Early repayment of senior debt | $ 787,000,000 | ||
Debt instrument, redemption price, percentage of principal amount redeemed (percent) | 104.90% | ||
Early redemption fee | $ 37,000,000 | ||
Credit Facilities [Member] | Valero Energy Partners LP [Member] | VLP Revolver [Member] | |||
Public Debt (Textual) | |||
Repayments of outstanding amounts under the VLP Revolver | 410,000,000 | $ 0 | |
Subordinated Debt [Member] | VLP Subordinated Notes [Member] [Member] | Valero Energy Partners LP [Member] | |||
Public Debt (Textual) | |||
Repayments of notes payable - related party | $ 85,000,000 |
Debt and Finance Lease Obliga_6
Debt and Finance Lease Obligations, Interest Incurred (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest and Debt Expense, Net of Capitalized Interest | |||
Interest and debt expense | $ 544 | $ 557 | $ 539 |
Less: Capitalized interest | 90 | 87 | 71 |
Interest and debt expense, net of capitalized interest | $ 454 | $ 470 | $ 468 |
Debt and Finance Lease Obliga_7
Debt and Finance Lease Obligations, Other Debt and Other Disclosures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2019 | ||
Principal Payments Due on Debt | |||
2020 | [1] | $ 453 | |
2021 | 17 | ||
2022 | 6 | ||
2023 | 19 | ||
2024 | 0 | ||
Thereafter | 8,474 | ||
Net unamortized debt issuance costs and other | $ (80) | (88) | |
Total debt | 8,503 | 8,881 | |
Line of Credit [Member] | IEnova Revolver [Member] | Central Mexico Terminals [Member] | |||
Principal Payments Due on Debt | |||
2020 | $ 348 | ||
Pure Biofuels del Peru S.A.C (Now Known as Valero Peru S.A.C.) [Member] | |||
Other Debt (Textual) | |||
Amount of debt retired | $ 137 | ||
[1] | As of December 31, 2019 , our debt obligations due in 2020 include $348 million associated with borrowings under the IEnova Revolver. |
Commitments and Contingencies (
Commitments and Contingencies (Details) MBbls in Thousands, $ in Millions | Jan. 01, 2019USD ($) | Dec. 31, 2019USD ($)bbl / drenewalMBbls | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($)bbl / drenewalMBbls | Mar. 31, 2020USD ($) |
Commitments and Contingencies (Textual) | ||||||
MVP Terminal construction costs | $ 44,294 | $ 42,473 | $ 44,294 | |||
Contributions to MVP | 164 | 181 | $ 406 | |||
Equity investment in MVP | 942 | 542 | $ 942 | |||
Cost of undivided interest in pipeline | $ 72 | 212 | $ 72 | |||
MVP Terminalling, LLC (MVP) [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Initial term of terminal agreement | 12 years | |||||
Number of available automatic renewals | renewal | 2 | 2 | ||||
Automatic renewal term of terminalling agreement | 5 years | |||||
Construction in Progress [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
MVP Terminal construction costs | $ 1,731 | 1,960 | $ 1,731 | |||
MVP Terminal [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Approximate storage capacity of terminal (in thousands of barrels) | MBbls | 5 | 5 | ||||
Contributions to MVP | $ 157 | $ 404 | ||||
Equity investment in MVP | $ 401 | $ 401 | ||||
MVP Terminal [Member] | Topic 842 [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Derecognized assets related to MVP | $ (539) | |||||
Derecognized liability related to MVP | (292) | |||||
Equity investment in MVP recorded due to derecognition of assets and liabilities | $ 247 | |||||
MVP Terminal [Member] | Magellan Midstream Partners LP (Magellan) [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Long-term liability recorded | 292 | |||||
MVP Terminal [Member] | Expected Impact [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Contributions to MVP | $ 420 | |||||
MVP Terminal [Member] | Construction in Progress [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
MVP Terminal construction costs | $ 539 | |||||
MVP Terminal [Member] | Minimum [Member] | Construction in Progress [Member] | Expected Impact [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
MVP Terminal construction costs | 840 | |||||
MVP Terminal [Member] | Maximum [Member] | Construction in Progress [Member] | Expected Impact [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
MVP Terminal construction costs | $ 1,400 | |||||
MVP Terminal [Member] | Valero Energy Corporation [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Approximate storage capacity of terminal (in thousands of barrels) | MBbls | 4 | 4 | ||||
Central Texas Pipeline [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Undivided interest in project (percent) | 40.00% | 40.00% | ||||
Pipeline capacity (barrels per day) | bbl / d | 150,000 | 150,000 | ||||
Cost of undivided interest in pipeline | $ 80 | $ 160 | ||||
MVP Terminalling, LLC (MVP) [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Membership interest (percent) | 50.00% | |||||
MVP Terminalling, LLC (MVP) [Member] | Expected Impact [Member] | ||||||
Commitments and Contingencies (Textual) | ||||||
Membership interest (percent) | 50.00% |
Equity, Stock Related Disclosur
Equity, Stock Related Disclosures (Details) - USD ($) | Jan. 23, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 23, 2018 | Sep. 21, 2016 | Jul. 13, 2015 |
Share Activity Rollforward | |||||||
Treasury stock, beginning balance (shares) | (255,905,051) | ||||||
Treasury stock, ending balance (shares) | (264,209,742) | (255,905,051) | |||||
Equity (Textual) | |||||||
Preferred stock authorized (shares) | 20,000,000 | ||||||
Preferred stock par value per share (in usd per share) | $ 0.01 | ||||||
Preferred stock outstanding (shares) | 0 | 0 | |||||
Stock repurchases under buyback program | $ 753,000,000 | $ 1,511,000,000 | $ 1,307,000,000 | ||||
Remaining amount authorized under stock purchase program | 1,500,000,000 | ||||||
Subsequent Event [Member] | Dividend Declared [Member] | |||||||
Equity (Textual) | |||||||
Dividends payable (in usd per share) | $ 0.98 | ||||||
Common Stock Repurchase Programs [Member] | |||||||
Equity (Textual) | |||||||
Stock repurchases under buyback program | $ 752,000,000 | $ 1,500,000,000 | $ 1,300,000,000 | ||||
Stock Repurchase Program Approved July 2015 [Member] | |||||||
Equity (Textual) | |||||||
Authorized amount under stock purchase programs | $ 2,500,000,000 | ||||||
Stock Repurchase Program Approved September 2016 [Member] | |||||||
Equity (Textual) | |||||||
Authorized amount under stock purchase programs | $ 2,500,000,000 | ||||||
Stock Repurchase Program Approved January 2018 [Member] | |||||||
Equity (Textual) | |||||||
Authorized amount under stock purchase programs | $ 2,500,000,000 | ||||||
Common Stock [Member] | |||||||
Share Activity Rollforward | |||||||
Common stock, beginning balance (shares) | 673,000,000 | 673,000,000 | 673,000,000 | ||||
Common stock, ending balance (shares) | 673,000,000 | 673,000,000 | 673,000,000 | ||||
Treasury Stock [Member] | |||||||
Share Activity Rollforward | |||||||
Treasury stock, beginning balance (shares) | (256,000,000) | (240,000,000) | (222,000,000) | ||||
Transactions in connection with stock-based compensation plans (shares) | 1,000,000 | 1,000,000 | |||||
Stock purchases under purchase programs (shares) | (9,000,000) | (16,000,000) | (19,000,000) | ||||
Treasury stock, ending balance (shares) | (264,000,000) | (256,000,000) | (240,000,000) | ||||
Equity (Textual) | |||||||
Stock repurchases under buyback program | $ 753,000,000 | $ 1,511,000,000 | $ 1,307,000,000 |
Equity, Income Tax Effects on O
Equity, Income Tax Effects on Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Before-Tax Amount | |||
Other comprehensive income (loss) before income tax expense (benefit) | $ 107 | $ (468) | $ 449 |
Tax Expense (Benefit) | |||
Income tax expense (benefit) related to items of other comprehensive income (loss) | (48) | 10 | (21) |
Net Amount | |||
Other comprehensive income (loss) | 155 | (478) | 470 |
Foreign Currency Translation Adjustment [Member] | |||
Before-Tax Amount | |||
Other comprehensive income (loss), before reclassifications, before tax | 349 | (517) | 514 |
Tax Expense (Benefit) | |||
Other comprehensive income (loss), before reclassifications, tax expense (benefit) | 0 | 0 | 0 |
Net Amount | |||
Other comprehensive income (loss), before reclassifications, net of tax | 349 | (517) | 514 |
Net Gain (Loss) on Pension and Other Postretirement Benefits [Member] | |||
Before-Tax Amount | |||
Other comprehensive income (loss) before income tax expense (benefit) | (234) | 49 | (65) |
Tax Expense (Benefit) | |||
Income tax expense (benefit) related to items of other comprehensive income (loss) | (47) | 10 | (21) |
Net Amount | |||
Other comprehensive income (loss) | (187) | 39 | (44) |
Net Actuarial Gain (Loss) [Member] | |||
Before-Tax Amount | |||
Other comprehensive income (loss), before reclassifications, before tax | (245) | 1 | (79) |
Reclassification from accumulated other comprehensive loss, current period, before tax | 38 | 63 | 50 |
Tax Expense (Benefit) | |||
Other comprehensive income (loss), before reclassifications, tax expense (benefit) | (54) | 0 | (29) |
Reclassification from accumulated other comprehensive loss, current period, tax expense (benefit) | 9 | 14 | 18 |
Net Amount | |||
Other comprehensive income (loss), before reclassifications, net of tax | (191) | 1 | (50) |
Reclassification from accumulated other comprehensive loss, current period, net of tax | 29 | 49 | 32 |
Prior Service Cost (Credit) [Member] | |||
Before-Tax Amount | |||
Other comprehensive income (loss), before reclassifications, before tax | (3) | 7 | (4) |
Reclassification from accumulated other comprehensive loss, current period, before tax | (28) | (29) | (36) |
Tax Expense (Benefit) | |||
Other comprehensive income (loss), before reclassifications, tax expense (benefit) | (1) | 1 | (1) |
Reclassification from accumulated other comprehensive loss, current period, tax expense (benefit) | (6) | (7) | (13) |
Net Amount | |||
Other comprehensive income (loss), before reclassifications, net of tax | (2) | 6 | (3) |
Reclassification from accumulated other comprehensive loss, current period, net of tax | (22) | (22) | (23) |
Miscellaneous Loss [Member] | |||
Before-Tax Amount | |||
Other comprehensive income (loss), before reclassifications, before tax | 0 | 0 | |
Tax Expense (Benefit) | |||
Other comprehensive income (loss), before reclassifications, tax expense (benefit) | 4 | 3 | |
Net Amount | |||
Other comprehensive income (loss), before reclassifications, net of tax | (4) | (3) | |
Curtailment and Settlement Loss [Member] | |||
Before-Tax Amount | |||
Reclassification from accumulated other comprehensive loss, current period, before tax | 4 | 7 | 4 |
Tax Expense (Benefit) | |||
Reclassification from accumulated other comprehensive loss, current period, tax expense (benefit) | 1 | 2 | 1 |
Net Amount | |||
Reclassification from accumulated other comprehensive loss, current period, net of tax | 3 | $ 5 | $ 3 |
Net Gain (Loss) from Derivative Instruments Designated and Qualifying as Cash Flow Hedges [Member] | |||
Before-Tax Amount | |||
Other comprehensive income (loss), before reclassifications, before tax | (6) | ||
Reclassification from accumulated other comprehensive loss, current period, before tax | (2) | ||
Other comprehensive income (loss) before income tax expense (benefit) | (8) | ||
Tax Expense (Benefit) | |||
Other comprehensive income (loss), before reclassifications, tax expense (benefit) | (1) | ||
Reclassification from accumulated other comprehensive loss, current period, tax expense (benefit) | 0 | ||
Income tax expense (benefit) related to items of other comprehensive income (loss) | (1) | ||
Net Amount | |||
Other comprehensive income (loss), before reclassifications, net of tax | (5) | ||
Reclassification from accumulated other comprehensive loss, current period, net of tax | (2) | ||
Other comprehensive income (loss) | $ (7) |
Equity, Changes in Accumulated
Equity, Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in Accumulated Other Comprehensive Loss by Component, Net of Tax | |||
Beginning balance, accumulated other comprehensive loss, net of tax | $ 21,667 | ||
Other comprehensive income (loss) before reclassifications | 147 | $ (508) | $ 458 |
Amounts reclassified from accumulated other comprehensive loss | 9 | 32 | 12 |
Other comprehensive income (loss) | 156 | (476) | 470 |
Reclassification of stranded income tax effects | 0 | ||
Ending balance, accumulated other comprehensive loss, net of tax | 21,803 | 21,667 | |
Accumulated Other Comprehensive Loss [Member] | |||
Changes in Accumulated Other Comprehensive Loss by Component, Net of Tax | |||
Beginning balance, accumulated other comprehensive loss, net of tax | (1,507) | (940) | (1,410) |
Reclassification of stranded income tax effects | (91) | ||
Ending balance, accumulated other comprehensive loss, net of tax | (1,351) | (1,507) | (940) |
Foreign Currency Translation Adjustment [Member] | |||
Changes in Accumulated Other Comprehensive Loss by Component, Net of Tax | |||
Beginning balance, accumulated other comprehensive loss, net of tax | (1,022) | (507) | (1,021) |
Other comprehensive income (loss) before reclassifications | 346 | (515) | 514 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 |
Other comprehensive income (loss) | 346 | (515) | 514 |
Reclassification of stranded income tax effects | 0 | ||
Ending balance, accumulated other comprehensive loss, net of tax | (676) | (1,022) | (507) |
Defined Benefit Plan Items Adjustment [Member] | |||
Changes in Accumulated Other Comprehensive Loss by Component, Net of Tax | |||
Beginning balance, accumulated other comprehensive loss, net of tax | (485) | (433) | (389) |
Other comprehensive income (loss) before reclassifications | (197) | 7 | (56) |
Amounts reclassified from accumulated other comprehensive loss | 10 | 32 | 12 |
Other comprehensive income (loss) | (187) | 39 | (44) |
Reclassification of stranded income tax effects | (91) | ||
Ending balance, accumulated other comprehensive loss, net of tax | (672) | (485) | (433) |
Losses on Cash Flow Hedges [Member] | |||
Changes in Accumulated Other Comprehensive Loss by Component, Net of Tax | |||
Beginning balance, accumulated other comprehensive loss, net of tax | 0 | 0 | 0 |
Other comprehensive income (loss) before reclassifications | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |
Other comprehensive income (loss) | 0 | 0 | |
Reclassification of stranded income tax effects | 0 | ||
Ending balance, accumulated other comprehensive loss, net of tax | $ 0 | $ 0 | |
Losses on Cash Flow Hedges [Member] | |||
Changes in Accumulated Other Comprehensive Loss by Component, Net of Tax | |||
Other comprehensive income (loss) before reclassifications | (2) | ||
Amounts reclassified from accumulated other comprehensive loss | (1) | ||
Other comprehensive income (loss) | (3) | ||
Ending balance, accumulated other comprehensive loss, net of tax | $ (3) |
Equity, Reclassification Out of
Equity, Reclassification Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items] | |||||||||||||||
Other income, net | $ 104 | $ 130 | $ 112 | ||||||||||||
Total before tax | 3,486 | 4,232 | 3,207 | ||||||||||||
Tax benefit | (702) | (879) | 949 | ||||||||||||
Net income | $ 1,330 | $ 639 | $ 648 | $ 167 | $ 1,022 | $ 874 | $ 875 | $ 582 | 2,784 | 3,353 | 4,156 | ||||
Revenues | $ 27,879 | $ 27,249 | $ 28,933 | $ 24,263 | $ 28,730 | $ 30,849 | $ 31,015 | $ 26,439 | 108,324 | [1] | 117,033 | [1] | 93,980 | [1] | |
Reclassification out of Accumulated Other Comprehensive Loss [Member] | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items] | |||||||||||||||
Net income | (8) | (32) | (12) | ||||||||||||
Net Gain (Loss) on Pension and Other Postretirement Benefits [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items] | |||||||||||||||
Total before tax | (14) | (41) | (18) | ||||||||||||
Tax benefit | 4 | 9 | 6 | ||||||||||||
Net income | (10) | (32) | (12) | ||||||||||||
Net Actuarial Loss [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items] | |||||||||||||||
Other income, net | [2] | (38) | (63) | (50) | |||||||||||
Prior Service Credit [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items] | |||||||||||||||
Other income, net | [2] | 28 | 29 | 36 | |||||||||||
Curtailment and Settlement [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member] | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items] | |||||||||||||||
Other income, net | [2] | (4) | (7) | (4) | |||||||||||
Gains on Cash Flow Hedges [Member[ | Reclassification out of Accumulated Other Comprehensive Loss [Member] | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items] | |||||||||||||||
Net income | 2 | ||||||||||||||
Gains on Cash Flow Hedges [Member[ | Reclassification out of Accumulated Other Comprehensive Loss [Member] | Commodity Contracts [Member] | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items] | |||||||||||||||
Revenues | $ 2 | ||||||||||||||
Gains on Cash Flow Hedges [Member[ | Reclassification out of Accumulated Other Comprehensive Loss [Member] | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items] | |||||||||||||||
Net income | 0 | 0 | |||||||||||||
Gains on Cash Flow Hedges [Member[ | Reclassification out of Accumulated Other Comprehensive Loss [Member] | Commodity Contracts [Member] | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Loss [Line Items] | |||||||||||||||
Revenues | $ 0 | $ 0 | |||||||||||||
[1] | Includes excise taxes on sales by certain of our international operations of $5,595 million, $5,626 million, and $5,573 million for the years ended December 31, 2019, 2018, and 2017. | ||||||||||||||
[2] | These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost (credit), as discussed in Note 13 . |
Variable Interest Entities, Con
Variable Interest Entities, Consolidated (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Assets | |||
Cash and cash equivalents | $ 2,583 | $ 2,982 | |
Property, plant, and equipment, net | 29,264 | 28,848 | |
Liabilities | |||
Current liabilities, including current portion of debt and finance lease obligations | 13,160 | 10,724 | |
Debt and finance lease obligations, less current portion | 9,178 | 8,871 | |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Assets | |||
Cash and cash equivalents | 110 | 235 | |
Other current assets | 689 | 198 | |
Property, plant, and equipment, net | 1,192 | 2,254 | |
Liabilities | |||
Current liabilities, including current portion of debt and finance lease obligations | 483 | 182 | |
Debt and finance lease obligations, less current portion | 31 | 1,024 | |
Variable Interest Entity, Primary Beneficiary [Member] | Valero Energy Partners LP [Member] | |||
Assets | |||
Cash and cash equivalents | [1] | 152 | |
Other current assets | [1] | 2 | |
Property, plant, and equipment, net | [1] | 1,409 | |
Liabilities | |||
Current liabilities, including current portion of debt and finance lease obligations | [1] | 27 | |
Debt and finance lease obligations, less current portion | [1] | 990 | |
Variable Interest Entity, Primary Beneficiary [Member] | Diamond Green Diesel Holdings LLC [Member] | |||
Assets | |||
Cash and cash equivalents | 85 | 65 | |
Other current assets | 567 | 112 | |
Property, plant, and equipment, net | 706 | 576 | |
Liabilities | |||
Current liabilities, including current portion of debt and finance lease obligations | 66 | 28 | |
Debt and finance lease obligations, less current portion | $ 0 | 0 | |
Variable Interest Entity (Textual) | |||
Ownership interest (percent) | 50.00% | ||
Variable Interest Entity, Primary Beneficiary [Member] | Central Mexico Terminals [Member] | |||
Assets | |||
Cash and cash equivalents | $ 0 | 0 | |
Other current assets | 33 | 20 | |
Property, plant, and equipment, net | 381 | 156 | |
Liabilities | |||
Current liabilities, including current portion of debt and finance lease obligations | 409 | 118 | |
Debt and finance lease obligations, less current portion | 0 | 0 | |
Variable Interest Entity, Primary Beneficiary [Member] | Other Variable Interest Entities [Member] | |||
Assets | |||
Cash and cash equivalents | 25 | 18 | |
Other current assets | 89 | 64 | |
Property, plant, and equipment, net | 105 | 113 | |
Liabilities | |||
Current liabilities, including current portion of debt and finance lease obligations | 8 | 9 | |
Debt and finance lease obligations, less current portion | $ 31 | $ 34 | |
Variable Interest Entity, Primary Beneficiary [Member] | Limited Partner [Member] | Valero Energy Partners LP [Member] | |||
Variable Interest Entity (Textual) | |||
Ownership interest (percent) | 66.20% | ||
Variable Interest Entity, Primary Beneficiary [Member] | General Partner [Member] | Valero Energy Partners LP [Member] | |||
Variable Interest Entity (Textual) | |||
Ownership interest (percent) | 2.00% | ||
Variable Interest Entity, Primary Beneficiary, Aggregated Disclosure [Member] | Other Variable Interest Entities [Member] | |||
Variable Interest Entity (Textual) | |||
Ownership interest (percent) | 50.00% | ||
Variable Interest Entity, Not Primary Beneficiary [Member] | Limited Partner [Member] | Valero Energy Partners LP [Member] | |||
Variable Interest Entity (Textual) | |||
Ownership interest (percent) | 31.80% | ||
[1] | Prior to the completion of the Merger Transaction with VLP on January 10, 2019 as discussed in Note 2 , VLP was a publicly traded master limited partnership that we had determined was a VIE. VLP was formed by us to own, operate, develop, and acquire crude oil and refined petroleum products pipelines, terminals, and other transportation and logistics assets. As of December 31, 2018, we owned a 66.2 percent limited partner interest and a 2.0 percent general partner interest in VLP, and public unitholders owned a 31.8 percent limited partner interest. Upon completion of the Merger Transaction, VLP became our indirect wholly owned subsidiary and, as a result, was no longer a VIE. |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Defined Benefit Plan, Amounts Recognized in Balance Sheet | ||||||
Accrued expenses | $ (37) | $ (43) | ||||
Other long-term liabilities | (834) | (654) | ||||
Pension Plans [Member] | ||||||
Defined Benefit Plan, Change in Benefit Obligation Rollforward | ||||||
Benefit obligation at beginning of year | 2,639 | [1] | 2,926 | |||
Service cost | 119 | 133 | $ 123 | |||
Interest cost | 98 | 91 | 86 | |||
Participant contributions | 0 | 0 | ||||
Benefits paid | (154) | (207) | ||||
Actuarial (gain) loss | 528 | (285) | ||||
Other | 9 | (19) | ||||
Benefit obligation at end of year | 3,239 | [1] | 2,639 | [1] | 2,926 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets Rollforward | ||||||
Fair value of plan assets at beginning of year | [1] | 2,236 | 2,428 | |||
Actual return on plan assets | [1] | 490 | (130) | |||
Valero contributions | [1] | 128 | 156 | |||
Participant contributions | [1] | 0 | 0 | |||
Benefits paid | [1] | (154) | (207) | |||
Other | [1] | 9 | (11) | |||
Fair value of plan assets as of end of year | [1] | 2,709 | 2,236 | $ 2,428 | ||
Reconciliation of funded status: | ||||||
Funded status as of end of year | [1] | (530) | (403) | |||
Accumulated benefit obligation | 3,039 | 2,492 | ||||
Defined Benefit Plan, Amounts Recognized in Balance Sheet | ||||||
Deferred charges and other assets, net | 5 | 2 | ||||
Accrued expenses | (17) | (22) | ||||
Other long-term liabilities | (518) | (383) | ||||
Amounts recognized in balance sheet for defined benefit plans | $ (530) | $ (403) | ||||
Actuarial Gain (Loss), Discount Rates (Textual) | ||||||
Discount rate | 3.14% | 4.25% | 3.58% | |||
Other Postretirement Benefit Plans [Member] | ||||||
Defined Benefit Plan, Change in Benefit Obligation Rollforward | ||||||
Benefit obligation at beginning of year | $ 292 | [1] | $ 306 | |||
Service cost | 5 | 6 | $ 6 | |||
Interest cost | 11 | 10 | 10 | |||
Participant contributions | 11 | 10 | ||||
Benefits paid | (29) | (28) | ||||
Actuarial (gain) loss | 41 | (9) | ||||
Other | 5 | (3) | ||||
Benefit obligation at end of year | 336 | [1] | 292 | [1] | 306 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets Rollforward | ||||||
Fair value of plan assets at beginning of year | [1] | 0 | 0 | |||
Actual return on plan assets | [1] | 0 | 0 | |||
Valero contributions | [1] | 18 | 18 | |||
Participant contributions | [1] | 11 | 10 | |||
Benefits paid | [1] | (29) | (28) | |||
Other | [1] | 0 | 0 | |||
Fair value of plan assets as of end of year | [1] | 0 | 0 | $ 0 | ||
Reconciliation of funded status: | ||||||
Funded status as of end of year | [1] | (336) | (292) | |||
Defined Benefit Plan, Amounts Recognized in Balance Sheet | ||||||
Deferred charges and other assets, net | 0 | 0 | ||||
Accrued expenses | (20) | (21) | ||||
Other long-term liabilities | (316) | (271) | ||||
Amounts recognized in balance sheet for defined benefit plans | $ (336) | $ (292) | ||||
Actuarial Gain (Loss), Discount Rates (Textual) | ||||||
Discount rate | 3.32% | 4.40% | ||||
[1] | Plan assets include only the assets associated with pension plans subject to legal minimum funding standards. Plan assets associated with U.S. nonqualified pension plans are not included here because they are not protected from our creditors and therefore cannot be reflected as a reduction from our obligations under the pension plans. As a result, the reconciliation of funded status does not reflect the effect of plan assets that exist for all of our defined benefit plans. See Note 19 for the assets associated with certain U.S. nonqualified pension plans. |
Employee Benefit Plans, Project
Employee Benefit Plans, Projected Benefit Obligations in Excess of Plan Assets (Details) - Pension Plans [Member] - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Information About Pension Plans in which the Projected Benefit Obligation Exceeded the Fair Value of Plan Assets | ||
Projected benefit obligation | $ 3,182 | $ 2,564 |
Fair value of plan assets | $ 2,647 | $ 2,160 |
Employee Benefit Plans, Accumul
Employee Benefit Plans, Accumulated Benefit Obligations in Excess of Plan Assets (Details) - Pension Plans [Member] - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Information About Pension Plans in which the Accumulated Benefit Obligation Exceeded the Fair Value of Plan Assets | ||
Accumulated benefit obligation | $ 2,760 | $ 2,253 |
Fair value of plan assets | $ 2,402 | $ 1,974 |
Employee Benefit Plans, Benefit
Employee Benefit Plans, Benefit Payments (Details) $ in Millions | Dec. 31, 2019USD ($) |
Pension Plans [Member] | |
Estimated Future Benefit Payments | |
2020 | $ 179 |
2021 | 219 |
2022 | 190 |
2023 | 204 |
2024 | 205 |
2025-2029 | 1,105 |
Employee Benefit Plans (Textual) | |
Future employer contributions to pension and other postretirement plans | 140 |
Other Postretirement Benefit Plans [Member] | |
Estimated Future Benefit Payments | |
2020 | 21 |
2021 | 20 |
2022 | 20 |
2023 | 19 |
2024 | 19 |
2025-2029 | 88 |
Employee Benefit Plans (Textual) | |
Future employer contributions to pension and other postretirement plans | $ 21 |
Employee Benefit Plans, Compone
Employee Benefit Plans, Components of Net Periodic Benefit Cost (Credit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Benefit Plans (Textual) | |||
The percentage of the higher of the projected benefit obligation or market-related value of plan assets in excess of which net actuarial (gains) losses are amortized | 10.00% | ||
Pension Plans [Member] | |||
Components of net periodic benefit cost: | |||
Service cost | $ 119 | $ 133 | $ 123 |
Interest cost | 98 | 91 | 86 |
Expected return on plan assets | (166) | (163) | (150) |
Amortization of: | |||
Net actuarial (gain) loss | 41 | 65 | 53 |
Prior service credit | (19) | (18) | (20) |
Special charges | 4 | 7 | 4 |
Net periodic benefit cost (credit) | 77 | 115 | 96 |
Other Postretirement Benefit Plans [Member] | |||
Components of net periodic benefit cost: | |||
Service cost | 5 | 6 | 6 |
Interest cost | 11 | 10 | 10 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of: | |||
Net actuarial (gain) loss | (3) | (2) | (3) |
Prior service credit | (9) | (11) | (16) |
Special charges | 1 | 0 | 0 |
Net periodic benefit cost (credit) | $ 5 | $ 3 | $ (3) |
Employee Benefit Plans, Pre-Tax
Employee Benefit Plans, Pre-Tax Amounts Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net (gain) loss reclassified into income: | |||
Total changes in other comprehensive income (loss) | $ (234) | $ 49 | $ (65) |
Pension Plans [Member] | |||
Net gain (loss) arising during the year: | |||
Net actuarial gain (loss) | (204) | (8) | (73) |
Prior service (cost) credit | 0 | 7 | (4) |
Net (gain) loss reclassified into income: | |||
Net actuarial (gain) loss | 41 | 65 | 53 |
Prior service credit | (19) | (18) | (20) |
Curtailment and settlement loss | 4 | 7 | 4 |
Total changes in other comprehensive income (loss) | (178) | 53 | (40) |
Other Postretirement Benefit Plans [Member] | |||
Net gain (loss) arising during the year: | |||
Net actuarial gain (loss) | (41) | 9 | (6) |
Prior service (cost) credit | (3) | 0 | 0 |
Net (gain) loss reclassified into income: | |||
Net actuarial (gain) loss | (3) | (2) | (3) |
Prior service credit | (9) | (11) | (16) |
Curtailment and settlement loss | 0 | 0 | 0 |
Total changes in other comprehensive income (loss) | $ (56) | $ (4) | $ (25) |
Employee Benefit Plans, Pre-T_2
Employee Benefit Plans, Pre-Tax Amounts in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Pension Plans [Member] | ||
Pension and Other Postretirement Benefit Plans Accumulated Other Comprehensive Income (Loss), before Tax | ||
Net actuarial (gain) loss | $ 988 | $ 828 |
Prior service credit | (90) | (108) |
Total | 898 | 720 |
Other Postretirement Benefit Plans [Member] | ||
Pension and Other Postretirement Benefit Plans Accumulated Other Comprehensive Income (Loss), before Tax | ||
Net actuarial (gain) loss | (20) | (64) |
Prior service credit | (19) | (31) |
Total | $ (39) | $ (95) |
Employee Benefit Plans, Weighte
Employee Benefit Plans, Weighted-Average Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Minimum [Member] | |||
Employee Benefit Plans (Textual) | |||
Yield curve maturities | 6 months | ||
Maximum [Member] | |||
Employee Benefit Plans (Textual) | |||
Yield curve maturities | 99 years | ||
Pension Plans [Member] | |||
Weighted Average Assumptions Used to Determine Benefit Obligation | |||
Discount rate | 3.14% | 4.25% | 3.58% |
Rate of compensation increase | 3.75% | 3.78% | |
Interest crediting rate for cash balance plans | 3.03% | 3.04% | |
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost | |||
Discount rate | 4.24% | 3.59% | 4.08% |
Expected long-term rate of return on plan assets | 7.22% | 7.24% | 7.29% |
Rate of compensation increase | 3.78% | 3.86% | 3.81% |
Interest crediting rate for cash balance plans | 3.04% | 3.04% | 3.04% |
Other Postretirement Benefit Plans [Member] | |||
Weighted Average Assumptions Used to Determine Benefit Obligation | |||
Discount rate | 3.32% | 4.40% | |
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost | |||
Discount rate | 4.40% | 3.72% | 4.26% |
Employee Benefit Plans, Health
Employee Benefit Plans, Health Care Cost Trend Rate (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Assumed Health Care Cost Trend Rates | ||
Health care cost trend rate assumed for the next year | 7.32% | 7.29% |
Rate to which the cost trend rate was assumed to decline (the ultimate trend rate) | 5.00% | 5.00% |
Year that the rate reaches the ultimate trend rate | 2026 | 2026 |
Employee Benefit Plans, Fair Va
Employee Benefit Plans, Fair Value of Pension Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity Securities [Member] | ||||
Employee Benefit Plans (Textual) | ||||
Percentage of equity securities in target allocations for plan assets | 70.00% | |||
Debt Securities [Member] | ||||
Employee Benefit Plans (Textual) | ||||
Percentage of equity securities in target allocations for plan assets | 30.00% | |||
Pension Plans [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | [1] | $ 2,709 | $ 2,236 | $ 2,428 |
Pension Plans [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 1,145 | 909 | ||
Pension Plans [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 1,564 | 1,327 | ||
Pension Plans [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 0 | 0 | ||
Pension Plans [Member] | US Companies [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | [2] | 622 | 497 | |
Pension Plans [Member] | US Companies [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | [2] | 622 | 497 | |
Pension Plans [Member] | US Companies [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | [2] | 0 | 0 | |
Pension Plans [Member] | US Companies [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | [2] | 0 | 0 | |
Pension Plans [Member] | International Companies [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 206 | 160 | ||
Pension Plans [Member] | International Companies [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 205 | 159 | ||
Pension Plans [Member] | International Companies [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 1 | 1 | ||
Pension Plans [Member] | International Companies [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 0 | 0 | ||
Pension Plans [Member] | Preferred Stock [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 4 | 4 | ||
Pension Plans [Member] | Preferred Stock [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 4 | 4 | ||
Pension Plans [Member] | Preferred Stock [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 0 | 0 | ||
Pension Plans [Member] | Preferred Stock [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 0 | 0 | ||
Pension Plans [Member] | International Growth [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 123 | 97 | ||
Pension Plans [Member] | International Growth [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 123 | 97 | ||
Pension Plans [Member] | International Growth [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 0 | 0 | ||
Pension Plans [Member] | International Growth [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 0 | 0 | ||
Pension Plans [Member] | Index Funds [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 90 | 76 | ||
Pension Plans [Member] | Index Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 90 | 76 | ||
Pension Plans [Member] | Index Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 0 | 0 | ||
Pension Plans [Member] | Index Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 0 | 0 | ||
Pension Plans [Member] | Corporate Debt Instruments [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | [2] | 293 | 284 | |
Pension Plans [Member] | Corporate Debt Instruments [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | [2] | 0 | 0 | |
Pension Plans [Member] | Corporate Debt Instruments [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | [2] | 293 | 284 | |
Pension Plans [Member] | Corporate Debt Instruments [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | [2] | 0 | 0 | |
Pension Plans [Member] | US Treasury Securities [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 53 | 45 | ||
Pension Plans [Member] | US Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 53 | 45 | ||
Pension Plans [Member] | US Treasury Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 0 | 0 | ||
Pension Plans [Member] | US Treasury Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 0 | 0 | ||
Pension Plans [Member] | Other Government Securities [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 148 | 138 | ||
Pension Plans [Member] | Other Government Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 0 | 0 | ||
Pension Plans [Member] | Other Government Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 148 | 138 | ||
Pension Plans [Member] | Other Government Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 0 | 0 | ||
Pension Plans [Member] | Defined Benefit Plan, Common Collective Trust [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | [3] | 751 | 609 | |
Pension Plans [Member] | Defined Benefit Plan, Common Collective Trust [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | [3] | 0 | 0 | |
Pension Plans [Member] | Defined Benefit Plan, Common Collective Trust [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | [3] | 751 | 609 | |
Pension Plans [Member] | Defined Benefit Plan, Common Collective Trust [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | [3] | $ 0 | $ 0 | |
Pension Plans [Member] | Common Collective Trusts - Equity Securities [Member] | ||||
Employee Benefit Plans (Textual) | ||||
Defined benefit plan, actual plan asset allocations | 75.00% | 70.00% | ||
Pension Plans [Member] | Common Collective Trusts - Debt Securities [Member] | ||||
Employee Benefit Plans (Textual) | ||||
Defined benefit plan, actual plan asset allocations | 25.00% | 30.00% | ||
Pension Plans [Member] | Pooled Separate Accounts [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | $ 250 | $ 190 | ||
Pension Plans [Member] | Pooled Separate Accounts [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 0 | 0 | ||
Pension Plans [Member] | Pooled Separate Accounts [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 250 | 190 | ||
Pension Plans [Member] | Pooled Separate Accounts [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 0 | 0 | ||
Pension Plans [Member] | Private Funds [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 104 | 87 | ||
Pension Plans [Member] | Private Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 0 | 0 | ||
Pension Plans [Member] | Private Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 104 | 87 | ||
Pension Plans [Member] | Private Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 0 | 0 | ||
Pension Plans [Member] | Insurance Contract [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 17 | 18 | ||
Pension Plans [Member] | Insurance Contract [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 0 | 0 | ||
Pension Plans [Member] | Insurance Contract [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 17 | 18 | ||
Pension Plans [Member] | Insurance Contract [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 0 | 0 | ||
Pension Plans [Member] | Interest and Dividends Receivable [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 5 | 5 | ||
Pension Plans [Member] | Interest and Dividends Receivable [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 5 | 5 | ||
Pension Plans [Member] | Interest and Dividends Receivable [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 0 | 0 | ||
Pension Plans [Member] | Interest and Dividends Receivable [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 0 | 0 | ||
Pension Plans [Member] | Cash and Cash Equivalents [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 59 | 40 | ||
Pension Plans [Member] | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 59 | 40 | ||
Pension Plans [Member] | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 0 | 0 | ||
Pension Plans [Member] | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 0 | 0 | ||
Pension Plans [Member] | Securities Transactions Payable, Net [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | (16) | (14) | ||
Pension Plans [Member] | Securities Transactions Payable, Net [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | (16) | (14) | ||
Pension Plans [Member] | Securities Transactions Payable, Net [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | 0 | 0 | ||
Pension Plans [Member] | Securities Transactions Payable, Net [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Values of Qualified Pension Plan Assets | ||||
Fair value of qualified pension plan assets | $ 0 | $ 0 | ||
[1] | Plan assets include only the assets associated with pension plans subject to legal minimum funding standards. Plan assets associated with U.S. nonqualified pension plans are not included here because they are not protected from our creditors and therefore cannot be reflected as a reduction from our obligations under the pension plans. As a result, the reconciliation of funded status does not reflect the effect of plan assets that exist for all of our defined benefit plans. See Note 19 for the assets associated with certain U.S. nonqualified pension plans. | |||
[2] | This class of securities is held in a wide range of industrial sectors. | |||
[3] | This class includes primarily investments in approximately 75 percent equities and 25 percent bonds as of December 31, 2019 . As of December 31, 2018 , this class included primarily investments in approximately 70 percent equities and 30 percent bonds. |
Employee Benefit Plans, Defined
Employee Benefit Plans, Defined Contribution Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Benefit Plans (Textual) | |||
Contributions to defined contribution plans | $ 77 | $ 74 | $ 70 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock-based Compensation Arrangements Activity | |||
Stock-based compensation expense | $ 89 | $ 86 | $ 77 |
Tax benefit recognized on stock-based compensation expense | 19 | 18 | 27 |
Tax benefit realized for tax deductions resulting from exercises and vestings | 17 | 32 | 44 |
Effect of tax deductions in excess of recognized stock-based compensation expense | 7 | 20 | 24 |
Restricted Stock [Member] | |||
Stock-based Compensation Arrangements Activity | |||
Stock-based compensation expense | $ 64 | $ 63 | $ 58 |
Number of Shares | |||
Beginning balance (shares) | 1,176,578 | ||
Granted (shares) | 677,482 | ||
Vested (shares) | (757,217) | ||
Forfeited (shares) | (4,989) | ||
Ending balance (shares) | 1,091,854 | 1,176,578 | |
Weighted- Average Grant-Date Fair Value Per Share | |||
Beginning balance (in usd per share) | $ 80.70 | ||
Granted (in usd per share) | 98.75 | $ 92.12 | $ 79.32 |
Vested (in usd per share) | 78.54 | ||
Forfeited (in usd per share) | 83.18 | ||
Ending balance (in usd per share) | $ 93.38 | $ 80.70 | |
Vested Awards Other Than Options Rollforward | |||
Fair value of restricted stock vested (in millions) | $ 74 | $ 80 | $ 71 |
Stock Based Compensation (Textual) | |||
Vesting period of stock-based payment awards granted | 3 years | ||
Unrecognized share-based compensation cost related to outstanding unvested awards | $ 59 | ||
Weighted-average period of recognition for unrecognized compensation costs on nonvested awards | 2 years | ||
Restricted Stock Awards - Nonemployee [Member] | |||
Stock Based Compensation (Textual) | |||
Vesting period of stock-based payment awards granted | 3 years | ||
Performance Awards [Member] | |||
Stock-based Compensation Arrangements Activity | |||
Stock-based compensation expense | $ 23 | 22 | 19 |
Stock Options and Other Awards [Member] | |||
Stock-based Compensation Arrangements Activity | |||
Stock-based compensation expense | $ 2 | $ 1 | $ 0 |
Omnibus Stock Incentive Plan [Member] | Share-based Payment Arrangement [Member] | |||
Stock Based Compensation (Textual) | |||
Number of shares of common stock available to be awarded under stock-based compensation plans (shares) | 7,740,665 | ||
Formerly Maintained Plans [Member] | Share-based Payment Arrangement [Member] | |||
Stock Based Compensation (Textual) | |||
Number of shares of common stock available to be awarded under stock-based compensation plans (shares) | 0 |
Income Taxes, Income Statement
Income Taxes, Income Statement Components of Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Components of Income Tax Expense (Benefit) | |||
U.S. operations | $ 2,496 | $ 3,168 | $ 2,283 |
International operations | 990 | 1,064 | 924 |
Income before income tax expense (benefit) | $ 3,486 | $ 4,232 | $ 3,207 |
Income Taxes, Schedule of Statu
Income Taxes, Schedule of Statutory Tax Rates (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statutory Tax Rates | |||
Applicable statutory income tax rate (percent) | 19.20% | 19.60% | 29.80% |
U.S. [Member] | |||
Statutory Tax Rates | |||
Applicable statutory income tax rate (percent) | 21.00% | 21.00% | 35.00% |
Canada [Member] | |||
Statutory Tax Rates | |||
Applicable statutory income tax rate (percent) | 15.00% | 15.00% | 15.00% |
U.K. [Member] | |||
Statutory Tax Rates | |||
Applicable statutory income tax rate (percent) | 19.00% | 19.00% | 19.00% |
Ireland [Member] | |||
Statutory Tax Rates | |||
Applicable statutory income tax rate (percent) | 13.00% | 13.00% | 13.00% |
Peru [Member] | |||
Statutory Tax Rates | |||
Applicable statutory income tax rate (percent) | 30.00% | 30.00% | |
Mexico [Member] | |||
Statutory Tax Rates | |||
Applicable statutory income tax rate (percent) | 30.00% | 30.00% |
Income Taxes, Reconciliation of
Income Taxes, Reconciliation of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Effective Income Tax Rate Reconciliation, Amount | ||||
Income tax expense at statutory rates, amount | $ 671 | $ 828 | $ 957 | |
U.S. state and Canadian provincial tax expense, net of federal income tax effect | 104 | 124 | 83 | |
Permanent differences: | ||||
Manufacturing deduction | (42) | |||
Other permanent differences | (26) | (9) | (9) | |
GILTI tax | [1] | 115 | 67 | |
Foreign tax credits | (95) | (50) | ||
Repatriation withholding tax | 45 | |||
Effects of Tax Reform/Change in tax law | [1] | (12) | (1,862) | |
Tax effects of income associated with noncontrolling interests | (75) | (49) | (31) | |
Other, net | (37) | (20) | (45) | |
Income tax expense | $ 702 | $ 879 | $ (949) | |
Effective Income Tax Rate Reconciliation, Percent | ||||
Income tax expense at statutory rates (percent) | 19.20% | 19.60% | 29.80% | |
U.S. state and Canadian provincial tax expense, net of federal income tax effect (percent) | 3.00% | 2.90% | 2.60% | |
Permanent differences: | ||||
Manufacturing deduction (percent) | (1.30%) | |||
Other (percent) | (0.70%) | (0.20%) | (0.30%) | |
GILTI tax (percent) | [1] | 3.30% | 1.60% | |
Foreign tax credits (percent) | (2.70%) | (1.20%) | ||
Repatriation withholding tax (percent) | 1.30% | |||
Effects of Tax Reform/Change in tax law (percent) | [1] | (0.30%) | (58.10%) | |
Tax effects of income associated with noncontrolling interests (percent) | (2.20%) | (1.20%) | (1.00%) | |
Other, net (percent) | (1.10%) | (0.50%) | (1.40%) | |
Income tax expense (benefit) (percent) | 20.10% | 20.70% | (29.70%) | |
U.S. [Member] | ||||
Effective Income Tax Rate Reconciliation, Amount | ||||
Income tax expense at statutory rates, amount | $ 524 | $ 665 | $ 799 | |
U.S. state and Canadian provincial tax expense, net of federal income tax effect | 16 | 44 | 37 | |
Permanent differences: | ||||
Manufacturing deduction | (42) | |||
Other permanent differences | (36) | (9) | (9) | |
GILTI tax | [1] | 115 | 67 | |
Foreign tax credits | (95) | (50) | ||
Repatriation withholding tax | 45 | |||
Effects of Tax Reform/Change in tax law | [1] | (12) | (1,862) | |
Tax effects of income associated with noncontrolling interests | (77) | (49) | (31) | |
Other, net | (36) | (23) | (52) | |
Income tax expense | $ 456 | $ 633 | $ (1,160) | |
Effective Income Tax Rate Reconciliation, Percent | ||||
Income tax expense at statutory rates (percent) | 21.00% | 21.00% | 35.00% | |
U.S. state and Canadian provincial tax expense, net of federal income tax effect (percent) | 0.70% | 1.40% | 1.60% | |
Permanent differences: | ||||
Manufacturing deduction (percent) | (1.80%) | |||
Other (percent) | (1.50%) | (0.30%) | (0.40%) | |
GILTI tax (percent) | [1] | 4.60% | 2.10% | |
Foreign tax credits (percent) | (3.80%) | (1.60%) | ||
Repatriation withholding tax (percent) | 1.80% | |||
Effects of Tax Reform/Change in tax law (percent) | [1] | (0.40%) | (81.60%) | |
Tax effects of income associated with noncontrolling interests (percent) | (3.10%) | (1.50%) | (1.40%) | |
Other, net (percent) | (1.40%) | (0.70%) | (2.30%) | |
Income tax expense (benefit) (percent) | 18.30% | 20.00% | (50.90%) | |
International [Member] | ||||
Effective Income Tax Rate Reconciliation, Amount | ||||
Income tax expense at statutory rates, amount | $ 147 | $ 163 | $ 158 | |
U.S. state and Canadian provincial tax expense, net of federal income tax effect | 88 | 80 | 46 | |
Permanent differences: | ||||
Manufacturing deduction | 0 | |||
Other permanent differences | 10 | 0 | 0 | |
GILTI tax | [1] | 0 | 0 | |
Foreign tax credits | 0 | 0 | ||
Repatriation withholding tax | 0 | |||
Effects of Tax Reform/Change in tax law | [1] | 0 | 0 | |
Tax effects of income associated with noncontrolling interests | 2 | 0 | 0 | |
Other, net | (1) | 3 | 7 | |
Income tax expense | $ 246 | $ 246 | $ 211 | |
Effective Income Tax Rate Reconciliation, Percent | ||||
Income tax expense at statutory rates (percent) | 14.80% | 15.30% | 17.10% | |
U.S. state and Canadian provincial tax expense, net of federal income tax effect (percent) | 8.90% | 7.50% | 5.00% | |
Permanent differences: | ||||
Manufacturing deduction (percent) | 0.00% | |||
Other (percent) | 1.00% | 0.00% | 0.00% | |
GILTI tax (percent) | [1] | 0.00% | 0.00% | |
Foreign tax credits (percent) | 0.00% | 0.00% | ||
Repatriation withholding tax (percent) | 0.00% | |||
Effects of Tax Reform/Change in tax law (percent) | [1] | 0.00% | 0.00% | |
Tax effects of income associated with noncontrolling interests (percent) | 0.20% | 0.00% | 0.00% | |
Other, net (percent) | (0.10%) | 0.30% | 0.80% | |
Income tax expense (benefit) (percent) | 24.80% | 23.10% | 22.90% | |
[1] | See “Tax Reform” below for a discussion of the changes in tax law in the U.S. that were enacted in December 2017. |
Income Taxes, Components of Inc
Income Taxes, Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | 24 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | |||
Current: | ||||||
Country | $ 331 | $ 573 | $ 1,499 | |||
U.S. state / Canadian provincial | 137 | 103 | 95 | |||
Total current | 468 | 676 | 1,594 | |||
Deferred: | ||||||
Country | 262 | 170 | (2,551) | |||
U.S. state / Canadian provincial | (28) | 33 | 8 | |||
Total deferred | 234 | 203 | (2,543) | |||
Income tax expense | 702 | 879 | (949) | |||
Deferred income tax expense (benefit) included in tax reform | (2,643) | $ (2,643) | ||||
U.S. [Member] | ||||||
Current: | ||||||
Country | 145 | 432 | 1,305 | |||
U.S. state / Canadian provincial | 37 | 37 | 34 | |||
Total current | 182 | 469 | [1] | 1,339 | [1] | |
Deferred: | ||||||
Country | 290 | 145 | (2,522) | |||
U.S. state / Canadian provincial | (16) | 19 | 23 | |||
Total deferred | 274 | 164 | [2] | (2,499) | [2] | |
Income tax expense | 456 | 633 | (1,160) | |||
Current income tax expense (benefit) included in tax reform adjustment | (21) | 781 | ||||
Deferred income tax expense (benefit) included in tax reform | 9 | (2,600) | ||||
International [Member] | ||||||
Current: | ||||||
Country | 186 | 141 | 194 | |||
U.S. state / Canadian provincial | 100 | 66 | 61 | |||
Total current | 286 | 207 | 255 | |||
Deferred: | ||||||
Country | (28) | 25 | (29) | |||
U.S. state / Canadian provincial | (12) | 14 | (15) | |||
Total deferred | (40) | 39 | (44) | |||
Income tax expense | $ 246 | $ 246 | $ 211 | |||
[1] | Current income tax expense includes a $21 million benefit and a $781 million expense related to our Tax Reform adjustment for the years ended December 31, 2018 and 2017, respectively, as described in “Tax Reform” below. | |||||
[2] | Deferred income tax expense (benefit) includes a $9 million expense and a $2.6 billion benefit related to our Tax Reform adjustment for the years ended December 31, 2018 and 2017, respectively, as described in “Tax Reform” below. |
Income Taxes, Schedule of Incom
Income Taxes, Schedule of Income Taxes Paid (Refunded), Net (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Income Taxes Paid, Net | ||||
Income taxes paid (refunded), net | $ (116) | $ 1,361 | $ 410 | |
U.S. [Member] | ||||
Income Taxes Paid, Net | ||||
Income taxes paid (refunded), net | (298) | [1] | 1,016 | 239 |
U.S. [Member] | Internal Revenue Service (IRS) [Member] | ||||
Income Taxes Paid, Net | ||||
Refund received, including interest, associated with income tax audit | 348 | |||
International [Member] | ||||
Income Taxes Paid, Net | ||||
Income taxes paid (refunded), net | $ 182 | $ 345 | $ 171 | |
[1] | This amount includes a refund of $348 million , including interest, that we received related to the settlement of the combined audit of our U.S. federal income tax returns for 2010 and 2011. See “ Tax Returns Under Audit – U.S. Federal” below. |
Income Taxes, Deferred Income T
Income Taxes, Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred income tax assets: | ||
Tax credit carryforwards | $ 683 | $ 644 |
Net operating losses (NOLs) | 582 | 523 |
Inventories | 141 | 101 |
Compensation and employee benefit liabilities | 213 | 175 |
Environmental liabilities | 69 | 71 |
Other | 156 | 141 |
Total deferred income tax assets | 1,844 | 1,655 |
Valuation allowance | (1,200) | (1,111) |
Net deferred income tax assets | 644 | 544 |
Deferred income tax liabilities: | ||
Property, plant, and equipment | 4,924 | 4,589 |
Deferred turnaround costs | 331 | 316 |
Inventories | 217 | 287 |
Investments | 122 | 142 |
Other | 153 | 172 |
Total deferred income tax liabilities | 5,747 | 5,506 |
Net deferred income tax liabilities | $ 5,103 | $ 4,962 |
Income Taxes, Tax Credits and L
Income Taxes, Tax Credits and Loss Carryforwards (Details) $ in Millions | Dec. 31, 2019USD ($) |
U.S. State [Member] | |
Operating Loss Carryforwards | |
NOLs (gross amount) | $ 10,913 |
U.S. State [Member] | U S State Income Tax Credits (Gross Amount) Limited [Member] | |
Operating Loss Carryforwards | |
Income tax credits | 89 |
U.S. State [Member] | U S State Income Tax Credits (Gross Amount) Unlimited [Member] | |
Operating Loss Carryforwards | |
Income tax credits | 17 |
U.S. Foreign [Member] | |
Operating Loss Carryforwards | |
Income tax credits | $ 598 |
Income Taxes, Unrecognized Tax
Income Taxes, Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Unrecognized Tax Benefits [Roll Forward] | |||
Balance as of beginning of year | $ 970 | $ 941 | $ 936 |
Additions for tax positions related to the current year | 19 | 23 | 33 |
Additions for tax positions related to prior years | 30 | 28 | 15 |
Reductions for tax positions related to prior years | (101) | (19) | (42) |
Reductions for tax positions related to the lapse of applicable statute of limitations | (14) | (1) | (1) |
Settlements | (7) | (2) | 0 |
Balance as of end of year | $ 897 | $ 970 | $ 941 |
Income Taxes, Reconciliation _2
Income Taxes, Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Unrecognized Tax Benefits | ||||
Unrecognized tax benefits | $ 897 | $ 970 | $ 941 | $ 936 |
Tax refund claims not yet filed but that we intend to file | (29) | (277) | ||
Interest and penalties | 100 | 88 | ||
Liability for unrecognized tax benefits presented in our balance sheets | $ 968 | $ 781 |
Income Taxes, Liability for Unr
Income Taxes, Liability for Unrecognized Tax Benefits Recognized in Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Amounts Recognized in Balance Sheets for Uncertain Tax Positions | ||
Other long-term liabilities and Deferred tax liabilities | $ 954 | $ 721 |
Liability for unrecognized tax benefits presented in our balance sheets | 968 | 781 |
Income Taxes Payable [Member] | ||
Amounts Recognized in Balance Sheets for Uncertain Tax Positions | ||
Income taxes payable | 0 | 42 |
Other Long-term Liabilities [Member] | ||
Amounts Recognized in Balance Sheets for Uncertain Tax Positions | ||
Other long-term liabilities and Deferred tax liabilities | 954 | 721 |
Deferred Tax Liabilities[Member] | ||
Amounts Recognized in Balance Sheets for Uncertain Tax Positions | ||
Other long-term liabilities and Deferred tax liabilities | $ 14 | $ 18 |
Income Taxes, Details of the Ta
Income Taxes, Details of the Tax Reform Adjustment (Details) - USD ($) $ in Millions | 12 Months Ended | 24 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | |
Details of the Tax Reform Adjustment | |||
Income tax benefit from the remeasurement of U.S. deferred income tax assets and liabilities, accounting complete | $ (2,643) | $ (2,643) | |
Tax on the deemed repatriation of the accumulated earnings and profits of our international subsidiaries, provisional | 734 | ||
Tax on the deemed repatriation of the accumulated earnings and profits of our international subsidiaries, measurement period adjustment | $ 6 | ||
Tax on the deemed repatriation of the accumulated earnings and profits of our international subsidiaries, accounting complete | 740 | ||
Recognition of foreign withholding tax, net of U.S. federal tax benefit, accounting complete | 47 | 47 | |
Deductibility of certain executive compensation expense, incomplete accounting | 0 | ||
Deductibility of certain executive compensation expense, measurement period adjustment | 5 | ||
Deductibility of certain executive compensation expense, accounting complete | 5 | ||
Income tax expense associated with the statutory income tax rate differential on accrual to return adjustments that were identified upon completion of our U.S. federal income tax return in 2018, incomplete accounting | 0 | ||
Income tax expense associated with the statutory income tax rate differential on accrual to return adjustments that were identified upon completion of our U.S. federal income tax return in 2018, measurement period adjustment | 9 | ||
Income tax expense associated with the statutory income tax rate differential on accrual to return adjustments that were identified upon completion of our U.S. federal income tax return in 2018, accounting complete | 9 | ||
Foreign tax credit available to offset the tax on deemed repatriation of the accumulated earnings and profits of our international subsidiaries, incomplete accounting | 0 | ||
Foreign tax credit available to offset the tax on deemed repatriation of the accumulated earnings and profits of our international subsidiaries, measurement period adjustment | (32) | ||
Foreign tax credit available to offset the tax on deemed repatriation of the accumulated earnings and profits of our international subsidiaries, accounting complete | (32) | ||
Tax Reform benefit, incomplete accounting | $ (1,862) | ||
Tax Reform benefit, measurement period adjustment | $ (12) | ||
Tax Reform benefit, accounting complete | $ (1,874) |
Income Taxes, Narrative (Detail
Income Taxes, Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | |
Income Tax Narrative (Textual) | ||||
Increase in valuation allowance | $ 89 | |||
Cumulative undistributed earnings of international subsidiaries | 4,200 | |||
Liability for unrecognized tax benefits due to uncertainties with respect to sustaining refund claims | 954 | $ 721 | $ 721 | |
Tax refund receivable recorded in connection with refund claims | 525 | 343 | 343 | |
Income tax benefits if recognized that would reduce the effective tax rate | $ 762 | $ 807 | 807 | |
Applicable statutory income tax rate (percent) | 19.20% | 19.60% | 29.80% | |
Income tax benefit resulting from effect of tax reform adjustments, including components for which we recorded a provisional amount and components that were incomplete | $ 1,862 | |||
Income tax benefit and reduction to net deferred tax liabilities | 2,643 | 2,643 | ||
Tax on the deemed repatriation of the accumulated earnings and profits of our international subsidiaries | 734 | |||
Cumulative undistributed earnings and profits of international subsidiaries | 4,700 | |||
Recognition of foreign withholding tax, net of U.S. federal tax benefit | $ 47 | 47 | ||
U.S. [Member] | ||||
Income Tax Narrative (Textual) | ||||
Applicable statutory income tax rate (percent) | 21.00% | 21.00% | 35.00% | |
U.S. [Member] | ||||
Income Tax Narrative (Textual) | ||||
Applicable statutory income tax rate (percent) | 21.00% | 21.00% | 35.00% | |
Income tax benefit and reduction to net deferred tax liabilities | $ (9) | $ 2,600 | ||
U.S. [Member] | Internal Revenue Service (IRS) [Member] | ||||
Income Tax Narrative (Textual) | ||||
Refund received, including interest, associated with income tax audit | $ 348 | |||
Tax Year 2005 through Tax Year 2009 [Member] | ||||
Income Tax Narrative (Textual) | ||||
Tax refund receivable recorded in connection with refund claims | 525 | |||
Other Long-term Liabilities [Member] | ||||
Income Tax Narrative (Textual) | ||||
Liability for unrecognized tax benefits due to uncertainties with respect to sustaining refund claims | 954 | $ 721 | $ 721 | |
Other Long-term Liabilities [Member] | Tax Year 2005 through Tax Year 2009 [Member] | ||||
Income Tax Narrative (Textual) | ||||
Liability for unrecognized tax benefits due to uncertainties with respect to sustaining refund claims | $ 525 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings per common share | |||||||||||
Net income attributable to Valero stockholders | $ 1,060 | $ 609 | $ 612 | $ 141 | $ 952 | $ 856 | $ 845 | $ 469 | $ 2,422 | $ 3,122 | $ 4,065 |
Less: Income allocated to participating securities | 7 | 9 | 14 | ||||||||
Net income available to common shareholders | $ 2,415 | $ 3,113 | $ 4,051 | ||||||||
Weighted-average common shares outstanding (shares) | 413 | 426 | 442 | ||||||||
Earnings per common share (in usd per share) | $ 2.58 | $ 1.48 | $ 1.47 | $ 0.34 | $ 2.26 | $ 2.01 | $ 1.96 | $ 1.09 | $ 5.84 | $ 7.30 | $ 9.17 |
Earnings per common share – assuming dilution | |||||||||||
Net income attributable to Valero stockholders | $ 1,060 | $ 609 | $ 612 | $ 141 | $ 952 | $ 856 | $ 845 | $ 469 | $ 2,422 | $ 3,122 | $ 4,065 |
Weighted-average common shares outstanding (shares) | 413 | 426 | 442 | ||||||||
Effect of dilutive securities (shares) | 1 | 2 | 2 | ||||||||
Weighted-average common shares outstanding – assuming dilution (shares) | 414 | 428 | 444 | ||||||||
Earnings per common share – assuming dilution (in usd per share) | $ 2.58 | $ 1.48 | $ 1.47 | $ 0.34 | $ 2.24 | $ 2.01 | $ 1.96 | $ 1.09 | $ 5.84 | $ 7.29 | $ 9.16 |
Revenues and Segment Informat_3
Revenues and Segment Information, Activity (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019USD ($)refineryethanol_plant | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)refineryethanol_plantsegment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |||||
Segment Information for our Reportable Segments | |||||||||||||||
Revenues | $ 27,879 | $ 27,249 | $ 28,933 | $ 24,263 | $ 28,730 | $ 30,849 | $ 31,015 | $ 26,439 | $ 108,324 | [1] | $ 117,033 | [1] | $ 93,980 | [1] | |
Cost of sales: | |||||||||||||||
Cost of materials and other | 96,476 | 104,732 | 83,037 | ||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) | 4,868 | 4,690 | 4,504 | ||||||||||||
Depreciation and amortization expense | 2,202 | 2,017 | 1,934 | ||||||||||||
Total cost of sales | 103,546 | 111,439 | 89,475 | ||||||||||||
Other operating expenses | 21 | 45 | 61 | ||||||||||||
General and administrative expenses (excluding depreciation and amortization expense reflected below) | 868 | 925 | 829 | ||||||||||||
Depreciation and amortization expense | 53 | 52 | 52 | ||||||||||||
Operating income by segment | $ 1,739 | $ 881 | $ 908 | $ 308 | $ 1,299 | $ 1,219 | $ 1,253 | $ 801 | 3,836 | 4,572 | 3,563 | ||||
Total expenditures for long-lived assets | [2] | $ 2,846 | 3,376 | 1,948 | |||||||||||
Segment Information (Textual) | |||||||||||||||
Number of reportable segments | segment | 3 | ||||||||||||||
Number of petroleum refineries | refinery | 15 | 15 | |||||||||||||
Number of ethanol plants | ethanol_plant | 14 | 14 | |||||||||||||
Corporate, Reconciling Items, and Eliminations[Member] | |||||||||||||||
Segment Information for our Reportable Segments | |||||||||||||||
Revenues | $ (494) | (401) | (420) | ||||||||||||
Cost of sales: | |||||||||||||||
Operating income by segment | (921) | (974) | (876) | ||||||||||||
Corporate [Member] | |||||||||||||||
Segment Information for our Reportable Segments | |||||||||||||||
Revenues | 2 | 4 | 5 | ||||||||||||
Cost of sales: | |||||||||||||||
General and administrative expenses (excluding depreciation and amortization expense reflected below) | 868 | 925 | 829 | ||||||||||||
Depreciation and amortization expense | 53 | 52 | 52 | ||||||||||||
Total expenditures for long-lived assets | [2] | 58 | 44 | 44 | |||||||||||
Intersegment Eliminations [Member] | |||||||||||||||
Segment Information for our Reportable Segments | |||||||||||||||
Revenues | (496) | (405) | (425) | ||||||||||||
Cost of sales: | |||||||||||||||
Cost of materials and other | (494) | (404) | (425) | ||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) | 0 | 0 | 0 | ||||||||||||
Depreciation and amortization expense | 0 | 0 | 0 | ||||||||||||
Total cost of sales | (494) | (404) | (425) | ||||||||||||
Other operating expenses | 0 | 0 | 0 | ||||||||||||
Refining [Member] | |||||||||||||||
Segment Information for our Reportable Segments | |||||||||||||||
Revenues | 103,746 | 113,093 | 90,258 | ||||||||||||
Refining [Member] | Operating Segments [Member] | |||||||||||||||
Segment Information for our Reportable Segments | |||||||||||||||
Revenues | 103,764 | 113,118 | 90,266 | ||||||||||||
Cost of sales: | |||||||||||||||
Cost of materials and other | 93,371 | 101,866 | 80,160 | ||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) | 4,289 | 4,154 | 4,014 | ||||||||||||
Depreciation and amortization expense | 2,062 | 1,910 | 1,824 | ||||||||||||
Total cost of sales | 99,722 | 107,930 | 85,998 | ||||||||||||
Other operating expenses | 20 | 45 | 61 | ||||||||||||
General and administrative expenses (excluding depreciation and amortization expense reflected below) | 0 | 0 | 0 | ||||||||||||
Depreciation and amortization expense | 0 | 0 | 0 | ||||||||||||
Operating income by segment | 4,022 | 5,143 | 4,207 | ||||||||||||
Total expenditures for long-lived assets | [2] | 2,581 | 2,767 | 1,732 | |||||||||||
Refining [Member] | Intersegment Eliminations [Member] | |||||||||||||||
Segment Information for our Reportable Segments | |||||||||||||||
Revenues | 18 | 25 | 8 | ||||||||||||
Ethanol [Member] | |||||||||||||||
Segment Information for our Reportable Segments | |||||||||||||||
Revenues | 3,606 | 3,428 | 3,324 | ||||||||||||
Ethanol [Member] | Operating Segments [Member] | |||||||||||||||
Segment Information for our Reportable Segments | |||||||||||||||
Revenues | 3,837 | 3,638 | 3,500 | ||||||||||||
Cost of sales: | |||||||||||||||
Cost of materials and other | 3,239 | 3,008 | 2,804 | ||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) | 504 | 470 | 443 | ||||||||||||
Depreciation and amortization expense | 90 | 78 | 81 | ||||||||||||
Total cost of sales | 3,833 | 3,556 | 3,328 | ||||||||||||
Other operating expenses | 1 | 0 | 0 | ||||||||||||
General and administrative expenses (excluding depreciation and amortization expense reflected below) | 0 | 0 | 0 | ||||||||||||
Depreciation and amortization expense | 0 | 0 | 0 | ||||||||||||
Operating income by segment | 3 | 82 | 172 | ||||||||||||
Total expenditures for long-lived assets | [2] | 47 | 373 | 84 | |||||||||||
Ethanol [Member] | Intersegment Eliminations [Member] | |||||||||||||||
Segment Information for our Reportable Segments | |||||||||||||||
Revenues | 231 | 210 | 176 | ||||||||||||
Renewable Diesel [Member] | |||||||||||||||
Segment Information for our Reportable Segments | |||||||||||||||
Revenues | 970 | 508 | 393 | ||||||||||||
Renewable Diesel [Member] | Operating Segments [Member] | |||||||||||||||
Segment Information for our Reportable Segments | |||||||||||||||
Revenues | 1,217 | 678 | 634 | ||||||||||||
Cost of sales: | |||||||||||||||
Cost of materials and other | 360 | 262 | 498 | ||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) | 75 | 66 | 47 | ||||||||||||
Depreciation and amortization expense | 50 | 29 | 29 | ||||||||||||
Total cost of sales | 485 | 357 | 574 | ||||||||||||
Other operating expenses | 0 | 0 | 0 | ||||||||||||
General and administrative expenses (excluding depreciation and amortization expense reflected below) | 0 | 0 | 0 | ||||||||||||
Depreciation and amortization expense | 0 | 0 | 0 | ||||||||||||
Operating income by segment | 732 | 321 | 60 | ||||||||||||
Total expenditures for long-lived assets | [2] | 160 | 192 | 88 | |||||||||||
Renewable Diesel [Member] | Intersegment Eliminations [Member] | |||||||||||||||
Segment Information for our Reportable Segments | |||||||||||||||
Revenues | $ 247 | $ 170 | $ 241 | ||||||||||||
[1] | Includes excise taxes on sales by certain of our international operations of $5,595 million, $5,626 million, and $5,573 million for the years ended December 31, 2019, 2018, and 2017. | ||||||||||||||
[2] | Total expenditures for long-lived assets includes amounts related to capital expenditures; deferred turnaround and catalyst costs; and property, plant, and equipment for acquisitions. |
Revenues and Segment Informat_4
Revenues and Segment Information, Revenue by Product (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Revenue from External Customer [Line Items] | ||||||||||||||
Revenues | $ 27,879 | $ 27,249 | $ 28,933 | $ 24,263 | $ 28,730 | $ 30,849 | $ 31,015 | $ 26,439 | $ 108,324 | [1] | $ 117,033 | [1] | $ 93,980 | [1] |
Corporate [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Revenues | 2 | 4 | 5 | |||||||||||
Other Revenues [Member] | Corporate [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Revenues | 2 | 4 | 5 | |||||||||||
Refining [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Revenues | 103,746 | 113,093 | 90,258 | |||||||||||
Refining [Member] | Gasoline and Blendstocks [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Revenues | 42,798 | 46,596 | 40,347 | |||||||||||
Refining [Member] | Distillates [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Revenues | 51,942 | 55,037 | 41,680 | |||||||||||
Refining [Member] | Other Product Revenues [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Revenues | 9,006 | 11,460 | 8,231 | |||||||||||
Ethanol [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Revenues | 3,606 | 3,428 | 3,324 | |||||||||||
Ethanol [Member] | Ethanol [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Revenues | 2,889 | 2,713 | 2,764 | |||||||||||
Ethanol [Member] | Distillers Grains [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Revenues | 717 | 715 | 560 | |||||||||||
Renewable Diesel [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Revenues | 970 | 508 | 393 | |||||||||||
Renewable Diesel [Member] | Renewable Diesel [Member] | ||||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||||
Revenues | $ 970 | $ 508 | $ 393 | |||||||||||
[1] | Includes excise taxes on sales by certain of our international operations of $5,595 million, $5,626 million, and $5,573 million for the years ended December 31, 2019, 2018, and 2017. |
Revenues and Segment Informat_5
Revenues and Segment Information, Geographic Information by Country for Revenue and Long-Lived Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Operating Revenues by Geographic Area | ||||||||||||||
Revenues | $ 27,879 | $ 27,249 | $ 28,933 | $ 24,263 | $ 28,730 | $ 30,849 | $ 31,015 | $ 26,439 | $ 108,324 | [1] | $ 117,033 | [1] | $ 93,980 | [1] |
Geographic Information by Country for Long-Lived Assets | ||||||||||||||
Long-lived assets | 31,100 | 30,652 | 31,100 | 30,652 | ||||||||||
U.S. [Member] | ||||||||||||||
Operating Revenues by Geographic Area | ||||||||||||||
Revenues | 77,173 | 82,992 | 66,614 | |||||||||||
Geographic Information by Country for Long-Lived Assets | ||||||||||||||
Long-lived assets | 27,485 | 27,475 | 27,485 | 27,475 | ||||||||||
Canada [Member] | ||||||||||||||
Operating Revenues by Geographic Area | ||||||||||||||
Revenues | 7,915 | 9,211 | 7,039 | |||||||||||
Geographic Information by Country for Long-Lived Assets | ||||||||||||||
Long-lived assets | 1,886 | 1,798 | 1,886 | 1,798 | ||||||||||
U.K.and Ireland [Member] | ||||||||||||||
Operating Revenues by Geographic Area | ||||||||||||||
Revenues | 13,584 | 15,208 | 11,556 | |||||||||||
Geographic Information by Country for Long-Lived Assets | ||||||||||||||
Long-lived assets | 1,232 | 1,113 | 1,232 | 1,113 | ||||||||||
Other Countries [Member] | ||||||||||||||
Operating Revenues by Geographic Area | ||||||||||||||
Revenues | 9,652 | 9,622 | $ 8,771 | |||||||||||
Geographic Information by Country for Long-Lived Assets | ||||||||||||||
Long-lived assets | $ 497 | $ 266 | $ 497 | $ 266 | ||||||||||
[1] | Includes excise taxes on sales by certain of our international operations of $5,595 million, $5,626 million, and $5,573 million for the years ended December 31, 2019, 2018, and 2017. |
Revenues and Segment Informat_6
Revenues and Segment Information, Total Assets by Reportable Segments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Total Assets by Reportable Segments | ||
Reportable segment assets | $ 53,864 | $ 50,155 |
Equity Method Investments (Textual): | ||
Investments in unconsolidated joint ventures | 942 | 542 |
Refining [Member] | ||
Equity Method Investments (Textual): | ||
Investments in unconsolidated joint ventures | 942 | 542 |
Operating Segments [Member] | Refining [Member] | ||
Total Assets by Reportable Segments | ||
Reportable segment assets | 47,067 | 43,488 |
Operating Segments [Member] | Ethanol [Member] | ||
Total Assets by Reportable Segments | ||
Reportable segment assets | 1,615 | 1,691 |
Operating Segments [Member] | Renewable Diesel [Member] | ||
Total Assets by Reportable Segments | ||
Reportable segment assets | 1,412 | 787 |
Corporate and Eliminations [Member] | ||
Total Assets by Reportable Segments | ||
Reportable segment assets | $ 3,770 | $ 4,189 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Decrease (increase) in current assets: | |||||
Receivables, net | $ (1,468) | $ (457) | $ (870) | ||
Inventories | (385) | (197) | (516) | ||
Prepaid expenses and other | 427 | (77) | 151 | ||
Increase (decrease) in current liabilities: | |||||
Accounts payable | 1,534 | 304 | 1,842 | ||
Accrued expenses | (27) | (113) | 21 | ||
Taxes other than income taxes payable | 60 | (73) | 172 | ||
Income taxes payable | 153 | (684) | 489 | ||
Changes in current assets and current liabilities | 294 | (1,297) | 1,289 | ||
Cash Flows Related to Interest and Income Taxes | |||||
Interest paid in excess of amount capitalized, including interest on finance leases | 452 | 463 | 457 | ||
Income taxes paid (refunded), net (see Note 15) | (116) | $ 1,361 | $ 410 | ||
Cash paid for amounts included in the measurement of lease liabilities: | |||||
Operating leases - operating cash flows | 441 | ||||
Operating leases - investing cash flows | 1 | ||||
Changes in lease balances resulting from new and modified leases | |||||
Operating leases - changes in lease balances resulting from new and modified leases | [1] | 1,756 | |||
Cash paid for amounts included in the measurement of lease liabilities: | |||||
Finance leases - operating cash flows | 50 | ||||
Finance leases - financing cash flows | 34 | ||||
Changes in lease balances resulting from new and modified leases | |||||
Finance leases - changes in lease balances resulting from new and modified leases | $ 239 | ||||
Topic 842 [Member] | |||||
Changes in lease balances resulting from new and modified leases | |||||
Operating leases - changes in lease balances resulting from new and modified leases | $ 1,300 | ||||
[1] | Includes noncash activity of $1.3 billion for operating lease ROU assets recorded on January 1, 2019 upon adoption of Topic 842. |
Fair Value Measurements, Recurr
Fair Value Measurements, Recurring (Details) - Fair Value, Recurring [Member] - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Total gross fair value, assets | $ 718 | $ 2,865 |
Effect of counterparty netting | (612) | (2,669) |
Effect of cash collateral netting | 0 | (34) |
Net carrying value on Balance Sheet, assets | 106 | 162 |
Liabilities | ||
Environmental credit obligations | 2 | 13 |
Total gross fair value, liabilities | 683 | 2,700 |
Effect of counterparty netting | (612) | (2,669) |
Effect of cash collateral netting | (56) | (12) |
Net carrying value on Balance Sheet, liabilities | 15 | 19 |
Assets Held in Trust [Member] | ||
Assets | ||
Investments of certain benefit plans | 74 | 69 |
Commodity Contracts [Member] | ||
Assets | ||
Derivative contracts | 617 | 2,792 |
Effect of counterparty netting | (612) | (2,669) |
Effect of cash collateral netting | 0 | (34) |
Derivative contracts, net assets | 5 | 89 |
Cash collateral received not offset | 0 | 0 |
Liabilities | ||
Derivative contracts | 668 | 2,681 |
Effect of counterparty netting | (612) | (2,669) |
Effect of cash collateral netting | (56) | (12) |
Derivative contracts, net liabilities | 0 | 0 |
Cash collateral paid not offset | (84) | (136) |
Physical Purchase Contracts [Member] | ||
Liabilities | ||
Derivative contracts | 3 | 5 |
Derivative contracts, net liabilities | 3 | 5 |
Foreign Currency Contracts [Member] | ||
Assets | ||
Derivative contracts | 27 | 4 |
Derivative contracts, net assets | 27 | 4 |
Liabilities | ||
Derivative contracts | 10 | 1 |
Derivative contracts, net liabilities | 10 | 1 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets | ||
Total gross fair value, assets | 709 | 2,856 |
Liabilities | ||
Environmental credit obligations | 0 | 0 |
Total gross fair value, liabilities | 678 | 2,682 |
Fair Value, Inputs, Level 1 [Member] | Assets Held in Trust [Member] | ||
Assets | ||
Investments of certain benefit plans | 65 | 60 |
Fair Value, Inputs, Level 1 [Member] | Commodity Contracts [Member] | ||
Assets | ||
Derivative contracts | 617 | 2,792 |
Liabilities | ||
Derivative contracts | 668 | 2,681 |
Fair Value, Inputs, Level 1 [Member] | Physical Purchase Contracts [Member] | ||
Liabilities | ||
Derivative contracts | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Foreign Currency Contracts [Member] | ||
Assets | ||
Derivative contracts | 27 | 4 |
Liabilities | ||
Derivative contracts | 10 | 1 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets | ||
Total gross fair value, assets | 0 | 0 |
Liabilities | ||
Environmental credit obligations | 2 | 13 |
Total gross fair value, liabilities | 5 | 18 |
Fair Value, Inputs, Level 2 [Member] | Assets Held in Trust [Member] | ||
Assets | ||
Investments of certain benefit plans | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Commodity Contracts [Member] | ||
Assets | ||
Derivative contracts | 0 | 0 |
Liabilities | ||
Derivative contracts | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Physical Purchase Contracts [Member] | ||
Liabilities | ||
Derivative contracts | 3 | 5 |
Fair Value, Inputs, Level 2 [Member] | Foreign Currency Contracts [Member] | ||
Assets | ||
Derivative contracts | 0 | 0 |
Liabilities | ||
Derivative contracts | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets | ||
Total gross fair value, assets | 9 | 9 |
Liabilities | ||
Environmental credit obligations | 0 | 0 |
Total gross fair value, liabilities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Assets Held in Trust [Member] | ||
Assets | ||
Investments of certain benefit plans | 9 | 9 |
Fair Value, Inputs, Level 3 [Member] | Commodity Contracts [Member] | ||
Assets | ||
Derivative contracts | 0 | 0 |
Liabilities | ||
Derivative contracts | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Physical Purchase Contracts [Member] | ||
Liabilities | ||
Derivative contracts | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Foreign Currency Contracts [Member] | ||
Assets | ||
Derivative contracts | 0 | 0 |
Liabilities | ||
Derivative contracts | $ 0 | $ 0 |
Fair Value Measurements, Nonrec
Fair Value Measurements, Nonrecurring (Details) - Fair Value, Nonrecurring [Member] - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Measurements (Textual) | ||
Assets measured at fair value, nonrecurring | $ 0 | $ 0 |
Liabilities measured at fair value, nonrecurring | $ 0 | $ 0 |
Fair Value Measurements, Other
Fair Value Measurements, Other Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets | ||
Cash and cash equivalents, at carrying amount | $ 2,583 | $ 2,982 |
Financial liabilities | ||
Debt (excluding finance leases), at carrying amount | 8,881 | 8,503 |
Fair Value, Inputs, Level 1 [Member] | ||
Financial assets | ||
Cash and cash equivalents, at fair value | 2,583 | 2,982 |
Fair Value, Inputs, Level 2 [Member] | ||
Financial liabilities | ||
Debt (excluding finance leases), at fair value | $ 10,583 | $ 8,986 |
Price Risk Management Activit_3
Price Risk Management Activities (Details) bu in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)MBblsbu | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Price Risk Management Activities (Textual) | |||
Compliance program costs | $ | $ 96,476 | $ 104,732 | $ 83,037 |
Environmental Compliance Program Price Risk [Member] | |||
Price Risk Management Activities (Textual) | |||
Compliance program costs | $ | $ 318 | $ 536 | $ 942 |
Derivatives Designated as Economic Hedges [Member] | Futures, 2020 Maturity [Member] | Long (Purchases) [Member] | Crude Oil and Refined Petroleum Products (in thousands of barrels) [Member] | |||
Volume of Outstanding Contracts | |||
Nonmonetary notional amount of price risk derivatives, volume | 73,348 | ||
Derivatives Designated as Economic Hedges [Member] | Futures, 2020 Maturity [Member] | Long (Purchases) [Member] | Corn (in thousands of bushels) [Member] | |||
Volume of Outstanding Contracts | |||
Nonmonetary notional amount of price risk derivatives, volume | bu | 50,120 | ||
Derivatives Designated as Economic Hedges [Member] | Futures, 2020 Maturity [Member] | Short (Sales) [Member] | Crude Oil and Refined Petroleum Products (in thousands of barrels) [Member] | |||
Volume of Outstanding Contracts | |||
Nonmonetary notional amount of price risk derivatives, volume | 76,045 | ||
Derivatives Designated as Economic Hedges [Member] | Futures, 2020 Maturity [Member] | Short (Sales) [Member] | Corn (in thousands of bushels) [Member] | |||
Volume of Outstanding Contracts | |||
Nonmonetary notional amount of price risk derivatives, volume | bu | 66,575 | ||
Derivatives Designated as Economic Hedges [Member] | Futures, 2021 Maturity [Member] | Long (Purchases) [Member] | Crude Oil and Refined Petroleum Products (in thousands of barrels) [Member] | |||
Volume of Outstanding Contracts | |||
Nonmonetary notional amount of price risk derivatives, volume | 2 | ||
Derivatives Designated as Economic Hedges [Member] | Futures, 2021 Maturity [Member] | Long (Purchases) [Member] | Corn (in thousands of bushels) [Member] | |||
Volume of Outstanding Contracts | |||
Nonmonetary notional amount of price risk derivatives, volume | bu | 0 | ||
Derivatives Designated as Economic Hedges [Member] | Futures, 2021 Maturity [Member] | Short (Sales) [Member] | Crude Oil and Refined Petroleum Products (in thousands of barrels) [Member] | |||
Volume of Outstanding Contracts | |||
Nonmonetary notional amount of price risk derivatives, volume | 0 | ||
Derivatives Designated as Economic Hedges [Member] | Futures, 2021 Maturity [Member] | Short (Sales) [Member] | Corn (in thousands of bushels) [Member] | |||
Volume of Outstanding Contracts | |||
Nonmonetary notional amount of price risk derivatives, volume | bu | 295 | ||
Derivatives Designated as Economic Hedges [Member] | Options, 2020 Maturity [Member] | Long (Purchases) [Member] | Crude Oil and Refined Petroleum Products (in thousands of barrels) [Member] | |||
Volume of Outstanding Contracts | |||
Nonmonetary notional amount of price risk derivatives, volume | 1,550 | ||
Derivatives Designated as Economic Hedges [Member] | Options, 2020 Maturity [Member] | Short (Sales) [Member] | Crude Oil and Refined Petroleum Products (in thousands of barrels) [Member] | |||
Volume of Outstanding Contracts | |||
Nonmonetary notional amount of price risk derivatives, volume | 1,550 | ||
Derivatives Designated as Economic Hedges [Member] | Options, 2021 Maturity [Member] | Long (Purchases) [Member] | Crude Oil and Refined Petroleum Products (in thousands of barrels) [Member] | |||
Volume of Outstanding Contracts | |||
Nonmonetary notional amount of price risk derivatives, volume | 0 | ||
Derivatives Designated as Economic Hedges [Member] | Options, 2021 Maturity [Member] | Short (Sales) [Member] | Crude Oil and Refined Petroleum Products (in thousands of barrels) [Member] | |||
Volume of Outstanding Contracts | |||
Nonmonetary notional amount of price risk derivatives, volume | 0 | ||
Derivatives Designated as Economic Hedges [Member] | Physical Contracts, 2020 Maturity [Member] | Long (Purchases) [Member] | Corn (in thousands of bushels) [Member] | |||
Volume of Outstanding Contracts | |||
Nonmonetary notional amount of price risk derivatives, volume | bu | 22,055 | ||
Derivatives Designated as Economic Hedges [Member] | Physical Contracts, 2021 Maturity [Member] | Long (Purchases) [Member] | Corn (in thousands of bushels) [Member] | |||
Volume of Outstanding Contracts | |||
Nonmonetary notional amount of price risk derivatives, volume | bu | 306 | ||
Derivatives Designated as Economic Hedges [Member] | Foreign Exchange Contract, US Dollars [Member] | |||
Price Risk Management Activities (Textual) | |||
Monetary notional amount of derivative liabilities | $ | $ 739 | ||
Derivatives Designated as Economic Hedges [Member] | Foreign Exchange Contract, US Dollar Equivalent Canadian Dollars [Member] | |||
Price Risk Management Activities (Textual) | |||
Monetary notional amount of derivative liabilities | $ | $ 2,300 | ||
Cash Flow Hedges [Member] | Derivatives Designated as Hedges [Member] | Futures, 2020 Maturity [Member] | Long (Purchases) [Member] | Renewable Diesel (in thousands of barrels) [Member] | |||
Volume of Outstanding Contracts | |||
Nonmonetary notional amount of price risk derivatives, volume | 995 | ||
Cash Flow Hedges [Member] | Derivatives Designated as Hedges [Member] | Futures, 2020 Maturity [Member] | Short (Sales) [Member] | Renewable Diesel (in thousands of barrels) [Member] | |||
Volume of Outstanding Contracts | |||
Nonmonetary notional amount of price risk derivatives, volume | 2,492 | ||
Cash Flow Hedges [Member] | Derivatives Designated as Hedges [Member] | Futures, 2021 Maturity [Member] | Long (Purchases) [Member] | Renewable Diesel (in thousands of barrels) [Member] | |||
Volume of Outstanding Contracts | |||
Nonmonetary notional amount of price risk derivatives, volume | 0 | ||
Cash Flow Hedges [Member] | Derivatives Designated as Hedges [Member] | Futures, 2021 Maturity [Member] | Short (Sales) [Member] | Renewable Diesel (in thousands of barrels) [Member] | |||
Volume of Outstanding Contracts | |||
Nonmonetary notional amount of price risk derivatives, volume | 0 |
Price Risk Management Activit_4
Price Risk Management Activities, Hedging Instruments by Consolidated Balance Sheet Location (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Derivatives Designated as Hedging Instruments [Member] | Commodity Contracts [Member] | Receivables, Net [Member] | ||
Fair Values of Derivative Instruments | ||
Derivative asset, fair value, gross asset | $ 9 | $ 0 |
Derivative asset, fair value, gross liability | 20 | 0 |
Derivatives Not Designated as Hedging Instruments [Member] | ||
Fair Values of Derivative Instruments | ||
Derivative asset, fair value, gross asset | 635 | 2,796 |
Derivative liability, fair value, gross liability | 661 | 2,687 |
Derivatives Not Designated as Hedging Instruments [Member] | Commodity Contracts [Member] | Receivables, Net [Member] | ||
Fair Values of Derivative Instruments | ||
Derivative asset, fair value, gross asset | 608 | 2,792 |
Derivative asset, fair value, gross liability | 648 | 2,681 |
Derivatives Not Designated as Hedging Instruments [Member] | Physical Purchase Contracts [Member] | Inventories [Member] | ||
Fair Values of Derivative Instruments | ||
Derivative asset, fair value, gross asset | 0 | 0 |
Derivative asset, fair value, gross liability | 3 | 5 |
Derivatives Not Designated as Hedging Instruments [Member] | Foreign Currency Contracts [Member] | Receivables, Net [Member] | ||
Fair Values of Derivative Instruments | ||
Derivative asset, fair value, gross asset | 27 | 4 |
Derivative asset, fair value, gross liability | 0 | 0 |
Derivatives Not Designated as Hedging Instruments [Member] | Foreign Currency Contracts [Member] | Accrued Expenses [Member] | ||
Fair Values of Derivative Instruments | ||
Derivative liability, fair value, gross asset | 0 | 0 |
Derivative liability, fair value, gross liability | $ 10 | $ 1 |
Price Risk Management Activit_5
Price Risk Management Activities, Gain (Loss) by Income Statement Location (Details) - Derivatives Not Designated as Hedging Instruments [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commodity Contracts [Member] | Revenues [Member] | |||
Effect of Derivative Instruments on Income | |||
Gain (loss) recognized in income on derivatives | $ 5 | $ 0 | $ 0 |
Commodity Contracts [Member] | Cost of Materials and Other [Member] | |||
Effect of Derivative Instruments on Income | |||
Gain (loss) recognized in income on derivatives | (68) | (165) | (278) |
Commodity Contracts [Member] | Operating Expenses (Excluding Depreciation and Amortization Expense) [Member] | |||
Effect of Derivative Instruments on Income | |||
Gain (loss) recognized in income on derivatives | 0 | 7 | 0 |
Foreign Currency Contracts [Member] | Cost of Materials and Other [Member] | |||
Effect of Derivative Instruments on Income | |||
Gain (loss) recognized in income on derivatives | (21) | 56 | (40) |
Foreign Currency Contracts [Member] | Other Income, Net [Member] | |||
Effect of Derivative Instruments on Income | |||
Gain (loss) recognized in income on derivatives | $ 75 | $ (43) | $ 0 |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Statements (Details) - Senior Notes [Member] | Dec. 31, 2019 | Dec. 31, 2018 |
VLP Senior Notes Due December 15, 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Stated rate on debt instrument (percent) | 4.375% | |
VLP Senior Notes Due March 15, 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Stated rate on debt instrument (percent) | 4.50% | |
Valero Energy Partners LP [Member] | VLP Senior Notes Due December 15, 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Stated rate on debt instrument (percent) | 4.375% | |
Valero Energy Partners LP [Member] | VLP Senior Notes Due March 15, 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Stated rate on debt instrument (percent) | 4.50% | 4.50% |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Statements, Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||||
Cash and cash equivalents | $ 2,583 | $ 2,982 | ||
Receivables, net | 8,904 | 7,345 | ||
Receivables from affiliates | 0 | 0 | ||
Inventories | 7,013 | 6,532 | ||
Prepaid expenses and other | 469 | 816 | ||
Total current assets | 18,969 | 17,675 | ||
Property, plant, and equipment, at cost | 44,294 | 42,473 | ||
Accumulated depreciation | (15,030) | (13,625) | ||
Property, plant, and equipment, net | 29,264 | 28,848 | ||
Investment in affiliates | 0 | 0 | ||
Long-term notes receivable from affiliates | 0 | |||
Deferred charges and other assets, net | 5,631 | 3,632 | ||
Total assets | 53,864 | 50,155 | ||
Current liabilities: | ||||
Current portion of debt and finance lease obligations | 494 | 238 | ||
Accounts payable | 10,205 | 8,594 | ||
Accounts payable to affiliates | 0 | 0 | ||
Accrued expenses | 949 | 630 | ||
Accrued expenses to affiliates | 0 | |||
Taxes other than income taxes payable | 1,304 | 1,213 | ||
Income taxes payable | 208 | 49 | ||
Total current liabilities | 13,160 | 10,724 | ||
Debt and finance lease obligations, less current portion | 9,178 | 8,871 | ||
Long-term notes payable to affiliates | 0 | |||
Deferred income tax liabilities | 5,103 | 4,962 | ||
Other long-term liabilities | 3,887 | 2,867 | ||
Stockholders’ equity: | ||||
Common stock | 7 | 7 | ||
Additional paid-in capital | 6,821 | 7,048 | ||
Treasury stock, at cost | (15,648) | (14,925) | ||
Retained earnings | 31,974 | 31,044 | ||
Partners’ equity | 0 | 0 | ||
Accumulated other comprehensive loss | (1,351) | (1,507) | ||
Total Valero Energy Corporation stockholders’ equity | 21,803 | 21,667 | ||
Noncontrolling interests | 733 | 1,064 | ||
Total equity | 22,536 | 22,731 | $ 22,900 | $ 20,854 |
Total liabilities and equity | 53,864 | 50,155 | ||
Eliminations [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Receivables, net | 0 | 0 | ||
Receivables from affiliates | (18,142) | (15,055) | ||
Inventories | 0 | 0 | ||
Prepaid expenses and other | 0 | (5) | ||
Total current assets | (18,142) | (15,060) | ||
Property, plant, and equipment, at cost | 0 | 0 | ||
Accumulated depreciation | 0 | 0 | ||
Property, plant, and equipment, net | 0 | 0 | ||
Investment in affiliates | (40,957) | (36,642) | ||
Long-term notes receivable from affiliates | (285) | |||
Deferred charges and other assets, net | 0 | 0 | ||
Total assets | (59,099) | (51,987) | ||
Current liabilities: | ||||
Current portion of debt and finance lease obligations | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Accounts payable to affiliates | (18,142) | (15,054) | ||
Accrued expenses | 0 | 0 | ||
Accrued expenses to affiliates | (1) | |||
Taxes other than income taxes payable | 0 | 0 | ||
Income taxes payable | 0 | (5) | ||
Total current liabilities | (18,142) | (15,060) | ||
Debt and finance lease obligations, less current portion | 0 | 0 | ||
Long-term notes payable to affiliates | (285) | |||
Deferred income tax liabilities | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Stockholders’ equity: | ||||
Common stock | (1) | (1) | ||
Additional paid-in capital | (9,771) | (9,754) | ||
Treasury stock, at cost | 0 | 0 | ||
Retained earnings | (31,636) | (28,305) | ||
Partners’ equity | (382) | (299) | ||
Accumulated other comprehensive loss | 833 | 1,097 | ||
Total Valero Energy Corporation stockholders’ equity | (40,957) | (37,262) | ||
Noncontrolling interests | 0 | 620 | ||
Total equity | (40,957) | (36,642) | ||
Total liabilities and equity | (59,099) | (51,987) | ||
Valero Energy Corporation [Member] | Reportable Legal Entities [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 912 | 291 | ||
Receivables, net | 0 | 0 | ||
Receivables from affiliates | 4,336 | 4,369 | ||
Inventories | 0 | 0 | ||
Prepaid expenses and other | 63 | 466 | ||
Total current assets | 5,311 | 5,126 | ||
Property, plant, and equipment, at cost | 0 | 0 | ||
Accumulated depreciation | 0 | 0 | ||
Property, plant, and equipment, net | 0 | 0 | ||
Investment in affiliates | 37,902 | 34,696 | ||
Long-term notes receivable from affiliates | 285 | |||
Deferred charges and other assets, net | 771 | 572 | ||
Total assets | 43,984 | 40,679 | ||
Current liabilities: | ||||
Current portion of debt and finance lease obligations | 0 | 0 | ||
Accounts payable | 0 | 14 | ||
Accounts payable to affiliates | 12,515 | 9,847 | ||
Accrued expenses | 120 | 155 | ||
Accrued expenses to affiliates | 0 | |||
Taxes other than income taxes payable | 0 | 0 | ||
Income taxes payable | 108 | 53 | ||
Total current liabilities | 12,743 | 10,069 | ||
Debt and finance lease obligations, less current portion | 7,095 | 6,955 | ||
Long-term notes payable to affiliates | 0 | |||
Deferred income tax liabilities | 0 | 0 | ||
Other long-term liabilities | 2,343 | 1,988 | ||
Stockholders’ equity: | ||||
Common stock | 7 | 7 | ||
Additional paid-in capital | 6,821 | 7,048 | ||
Treasury stock, at cost | (15,648) | (14,925) | ||
Retained earnings | 31,974 | 31,044 | ||
Partners’ equity | 0 | 0 | ||
Accumulated other comprehensive loss | (1,351) | (1,507) | ||
Total Valero Energy Corporation stockholders’ equity | 21,803 | 21,667 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 21,803 | 21,667 | ||
Total liabilities and equity | 43,984 | 40,679 | ||
Valero Energy Partners LP [Member] | Reportable Legal Entities [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 152 | ||
Receivables, net | 0 | 0 | ||
Receivables from affiliates | 0 | 2 | ||
Inventories | 0 | 0 | ||
Prepaid expenses and other | 0 | 0 | ||
Total current assets | 0 | 154 | ||
Property, plant, and equipment, at cost | 0 | 0 | ||
Accumulated depreciation | 0 | 0 | ||
Property, plant, and equipment, net | 0 | 0 | ||
Investment in affiliates | 2,673 | 2,267 | ||
Long-term notes receivable from affiliates | 0 | |||
Deferred charges and other assets, net | 0 | 1 | ||
Total assets | 2,673 | 2,422 | ||
Current liabilities: | ||||
Current portion of debt and finance lease obligations | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Accounts payable to affiliates | 1,291 | 837 | ||
Accrued expenses | 7 | 7 | ||
Accrued expenses to affiliates | 1 | |||
Taxes other than income taxes payable | 0 | 0 | ||
Income taxes payable | 0 | 1 | ||
Total current liabilities | 1,298 | 846 | ||
Debt and finance lease obligations, less current portion | 991 | 990 | ||
Long-term notes payable to affiliates | 285 | |||
Deferred income tax liabilities | 2 | 2 | ||
Other long-term liabilities | 0 | 0 | ||
Stockholders’ equity: | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 0 | 0 | ||
Treasury stock, at cost | 0 | 0 | ||
Retained earnings | 0 | 0 | ||
Partners’ equity | 382 | 299 | ||
Accumulated other comprehensive loss | 0 | 0 | ||
Total Valero Energy Corporation stockholders’ equity | 382 | 299 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 382 | 299 | ||
Total liabilities and equity | 2,673 | 2,422 | ||
Other Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 1,671 | 2,539 | ||
Receivables, net | 8,904 | 7,345 | ||
Receivables from affiliates | 13,806 | 10,684 | ||
Inventories | 7,013 | 6,532 | ||
Prepaid expenses and other | 406 | 355 | ||
Total current assets | 31,800 | 27,455 | ||
Property, plant, and equipment, at cost | 44,294 | 42,473 | ||
Accumulated depreciation | (15,030) | (13,625) | ||
Property, plant, and equipment, net | 29,264 | 28,848 | ||
Investment in affiliates | 382 | (321) | ||
Long-term notes receivable from affiliates | 0 | |||
Deferred charges and other assets, net | 4,860 | 3,059 | ||
Total assets | 66,306 | 59,041 | ||
Current liabilities: | ||||
Current portion of debt and finance lease obligations | 494 | 238 | ||
Accounts payable | 10,205 | 8,580 | ||
Accounts payable to affiliates | 4,336 | 4,370 | ||
Accrued expenses | 822 | 468 | ||
Accrued expenses to affiliates | 0 | |||
Taxes other than income taxes payable | 1,304 | 1,213 | ||
Income taxes payable | 100 | 0 | ||
Total current liabilities | 17,261 | 14,869 | ||
Debt and finance lease obligations, less current portion | 1,092 | 926 | ||
Long-term notes payable to affiliates | 0 | |||
Deferred income tax liabilities | 5,101 | 4,960 | ||
Other long-term liabilities | 1,544 | 879 | ||
Stockholders’ equity: | ||||
Common stock | 1 | 1 | ||
Additional paid-in capital | 9,771 | 9,754 | ||
Treasury stock, at cost | 0 | 0 | ||
Retained earnings | 31,636 | 28,305 | ||
Partners’ equity | 0 | 0 | ||
Accumulated other comprehensive loss | (833) | (1,097) | ||
Total Valero Energy Corporation stockholders’ equity | 40,575 | 36,963 | ||
Noncontrolling interests | 733 | 444 | ||
Total equity | 41,308 | 37,407 | ||
Total liabilities and equity | $ 66,306 | $ 59,041 |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Statements, Statement of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||
Revenues | $ 27,879 | $ 27,249 | $ 28,933 | $ 24,263 | $ 28,730 | $ 30,849 | $ 31,015 | $ 26,439 | $ 108,324 | [1] | $ 117,033 | [1] | $ 93,980 | [1] |
Cost of sales: | ||||||||||||||
Cost of materials and other | 96,476 | 104,732 | 83,037 | |||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) | 4,868 | 4,690 | 4,504 | |||||||||||
Depreciation and amortization expense | 2,202 | 2,017 | 1,934 | |||||||||||
Total cost of sales | 103,546 | 111,439 | 89,475 | |||||||||||
Other operating expenses | 21 | 45 | 61 | |||||||||||
General and administrative expenses (excluding depreciation and amortization expense reflected below) | 868 | 925 | 829 | |||||||||||
Depreciation and amortization expense | 53 | 52 | 52 | |||||||||||
Operating income (loss) | 1,739 | 881 | 908 | 308 | 1,299 | 1,219 | 1,253 | 801 | 3,836 | 4,572 | 3,563 | |||
Equity in earnings of subsidiaries | 0 | 0 | 0 | |||||||||||
Other income, net | 104 | 130 | 112 | |||||||||||
Interest and debt expense, net of capitalized interest | (454) | (470) | (468) | |||||||||||
Income before income tax expense (benefit) | 3,486 | 4,232 | 3,207 | |||||||||||
Income tax expense (benefit) | 702 | 879 | (949) | |||||||||||
Net income | 1,330 | 639 | 648 | 167 | 1,022 | 874 | 875 | 582 | 2,784 | 3,353 | 4,156 | |||
Less: Net income attributable to noncontrolling interests | 362 | 231 | 91 | |||||||||||
Net income attributable to Valero Energy Corporation stockholders | $ 1,060 | $ 609 | $ 612 | $ 141 | $ 952 | $ 856 | $ 845 | $ 469 | 2,422 | 3,122 | 4,065 | |||
Eliminations [Member] | ||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||
Revenues | 0 | 0 | 0 | |||||||||||
Cost of sales: | ||||||||||||||
Cost of materials and other | 0 | 0 | 0 | |||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) | 0 | 0 | 0 | |||||||||||
Depreciation and amortization expense | 0 | 0 | 0 | |||||||||||
Total cost of sales | 0 | 0 | 0 | |||||||||||
Other operating expenses | 0 | 0 | 0 | |||||||||||
General and administrative expenses (excluding depreciation and amortization expense reflected below) | 0 | 0 | 0 | |||||||||||
Depreciation and amortization expense | 0 | 0 | 0 | |||||||||||
Operating income (loss) | 0 | 0 | 0 | |||||||||||
Equity in earnings of subsidiaries | (3,769) | (4,239) | (5,687) | |||||||||||
Other income, net | (714) | (713) | (594) | |||||||||||
Interest and debt expense, net of capitalized interest | 714 | 713 | 594 | |||||||||||
Income before income tax expense (benefit) | (3,769) | (4,239) | (5,687) | |||||||||||
Income tax expense (benefit) | 0 | 0 | 0 | |||||||||||
Net income | (3,769) | (4,239) | (5,687) | |||||||||||
Less: Net income attributable to noncontrolling interests | 2 | 68 | 62 | |||||||||||
Net income attributable to Valero Energy Corporation stockholders | (3,771) | (4,307) | (5,749) | |||||||||||
Valero Energy Corporation [Member] | Reportable Legal Entities [Member] | ||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||
Revenues | 0 | 0 | 0 | |||||||||||
Cost of sales: | ||||||||||||||
Cost of materials and other | 0 | 0 | 0 | |||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) | 0 | 0 | 0 | |||||||||||
Depreciation and amortization expense | 0 | 0 | 0 | |||||||||||
Total cost of sales | 0 | 0 | 0 | |||||||||||
Other operating expenses | 0 | 0 | 0 | |||||||||||
General and administrative expenses (excluding depreciation and amortization expense reflected below) | 6 | 2 | 6 | |||||||||||
Depreciation and amortization expense | 0 | 0 | 0 | |||||||||||
Operating income (loss) | (6) | (2) | (6) | |||||||||||
Equity in earnings of subsidiaries | 3,006 | 3,724 | 5,236 | |||||||||||
Other income, net | 193 | 220 | 290 | |||||||||||
Interest and debt expense, net of capitalized interest | (927) | (913) | (780) | |||||||||||
Income before income tax expense (benefit) | 2,266 | 3,029 | 4,740 | |||||||||||
Income tax expense (benefit) | (156) | (93) | 675 | |||||||||||
Net income | 2,422 | 3,122 | 4,065 | |||||||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||||
Net income attributable to Valero Energy Corporation stockholders | 2,422 | 3,122 | 4,065 | |||||||||||
Valero Energy Partners LP [Member] | Reportable Legal Entities [Member] | ||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||
Revenues | 0 | 0 | 0 | |||||||||||
Cost of sales: | ||||||||||||||
Cost of materials and other | 0 | 0 | 0 | |||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) | 0 | 0 | 0 | |||||||||||
Depreciation and amortization expense | 0 | 0 | 0 | |||||||||||
Total cost of sales | 0 | 0 | 0 | |||||||||||
Other operating expenses | 0 | 0 | 0 | |||||||||||
General and administrative expenses (excluding depreciation and amortization expense reflected below) | 0 | 0 | 0 | |||||||||||
Depreciation and amortization expense | 0 | 0 | 0 | |||||||||||
Operating income (loss) | 0 | 0 | 0 | |||||||||||
Equity in earnings of subsidiaries | 406 | 319 | 275 | |||||||||||
Other income, net | 0 | 2 | 1 | |||||||||||
Interest and debt expense, net of capitalized interest | (47) | (55) | (36) | |||||||||||
Income before income tax expense (benefit) | 359 | 266 | 240 | |||||||||||
Income tax expense (benefit) | 0 | 2 | 2 | |||||||||||
Net income | 359 | 264 | 238 | |||||||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||||
Net income attributable to Valero Energy Corporation stockholders | 359 | 264 | 238 | |||||||||||
Other Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||
Revenues | 108,324 | 117,033 | 93,980 | |||||||||||
Cost of sales: | ||||||||||||||
Cost of materials and other | 96,476 | 104,732 | 83,037 | |||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) | 4,868 | 4,690 | 4,504 | |||||||||||
Depreciation and amortization expense | 2,202 | 2,017 | 1,934 | |||||||||||
Total cost of sales | 103,546 | 111,439 | 89,475 | |||||||||||
Other operating expenses | 21 | 45 | 61 | |||||||||||
General and administrative expenses (excluding depreciation and amortization expense reflected below) | 862 | 923 | 823 | |||||||||||
Depreciation and amortization expense | 53 | 52 | 52 | |||||||||||
Operating income (loss) | 3,842 | 4,574 | 3,569 | |||||||||||
Equity in earnings of subsidiaries | 357 | 196 | 176 | |||||||||||
Other income, net | 625 | 621 | 415 | |||||||||||
Interest and debt expense, net of capitalized interest | (194) | (215) | (246) | |||||||||||
Income before income tax expense (benefit) | 4,630 | 5,176 | 3,914 | |||||||||||
Income tax expense (benefit) | 858 | 970 | (1,626) | |||||||||||
Net income | 3,772 | 4,206 | 5,540 | |||||||||||
Less: Net income attributable to noncontrolling interests | 360 | 163 | 29 | |||||||||||
Net income attributable to Valero Energy Corporation stockholders | $ 3,412 | $ 4,043 | $ 5,511 | |||||||||||
[1] | Includes excise taxes on sales by certain of our international operations of $5,595 million, $5,626 million, and $5,573 million for the years ended December 31, 2019, 2018, and 2017. |
Condensed Consolidating Finan_6
Condensed Consolidating Financial Statements, Statement of Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income | $ 1,330 | $ 639 | $ 648 | $ 167 | $ 1,022 | $ 874 | $ 875 | $ 582 | $ 2,784 | $ 3,353 | $ 4,156 |
Other comprehensive income (loss): | |||||||||||
Foreign currency translation adjustment | 349 | (517) | 514 | ||||||||
Net gain (loss) on pension and other postretirement benefits | (234) | 49 | (65) | ||||||||
Net loss on cash flow hedges | (8) | ||||||||||
Other comprehensive income (loss) before income tax expense (benefit) | 107 | (468) | 449 | ||||||||
Income tax expense (benefit) related to items of other comprehensive income (loss) | (48) | 10 | (21) | ||||||||
Other comprehensive income (loss) | 155 | (478) | 470 | ||||||||
Comprehensive income | 2,939 | 2,875 | 4,626 | ||||||||
Less: Comprehensive income attributable to noncontrolling interests | 361 | 229 | 91 | ||||||||
Comprehensive income attributable to Valero Energy Corporation stockholders | 2,578 | 2,646 | 4,535 | ||||||||
Eliminations [Member] | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income | (3,769) | (4,239) | (5,687) | ||||||||
Other comprehensive income (loss): | |||||||||||
Foreign currency translation adjustment | (283) | 417 | (434) | ||||||||
Net gain (loss) on pension and other postretirement benefits | 19 | (18) | (4) | ||||||||
Net loss on cash flow hedges | 4 | ||||||||||
Other comprehensive income (loss) before income tax expense (benefit) | (260) | 399 | (438) | ||||||||
Income tax expense (benefit) related to items of other comprehensive income (loss) | 4 | (3) | (1) | ||||||||
Other comprehensive income (loss) | (264) | 402 | (437) | ||||||||
Comprehensive income | (4,033) | (3,837) | (6,124) | ||||||||
Less: Comprehensive income attributable to noncontrolling interests | 2 | 68 | 62 | ||||||||
Comprehensive income attributable to Valero Energy Corporation stockholders | (4,035) | (3,905) | (6,186) | ||||||||
Valero Energy Corporation [Member] | Reportable Legal Entities [Member] | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income | 2,422 | 3,122 | 4,065 | ||||||||
Other comprehensive income (loss): | |||||||||||
Foreign currency translation adjustment | 346 | (515) | 514 | ||||||||
Net gain (loss) on pension and other postretirement benefits | (234) | 49 | (65) | ||||||||
Net loss on cash flow hedges | (4) | ||||||||||
Other comprehensive income (loss) before income tax expense (benefit) | 108 | (466) | 449 | ||||||||
Income tax expense (benefit) related to items of other comprehensive income (loss) | (48) | 10 | (21) | ||||||||
Other comprehensive income (loss) | 156 | (476) | 470 | ||||||||
Comprehensive income | 2,578 | 2,646 | 4,535 | ||||||||
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income attributable to Valero Energy Corporation stockholders | 2,578 | 2,646 | 4,535 | ||||||||
Valero Energy Partners LP [Member] | Reportable Legal Entities [Member] | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income | 359 | 264 | 238 | ||||||||
Other comprehensive income (loss): | |||||||||||
Foreign currency translation adjustment | 0 | 0 | 0 | ||||||||
Net gain (loss) on pension and other postretirement benefits | 0 | 0 | 0 | ||||||||
Net loss on cash flow hedges | 0 | ||||||||||
Other comprehensive income (loss) before income tax expense (benefit) | 0 | 0 | 0 | ||||||||
Income tax expense (benefit) related to items of other comprehensive income (loss) | 0 | 0 | 0 | ||||||||
Other comprehensive income (loss) | 0 | 0 | 0 | ||||||||
Comprehensive income | 359 | 264 | 238 | ||||||||
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income attributable to Valero Energy Corporation stockholders | 359 | 264 | 238 | ||||||||
Other Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | |||||||||||
Condensed Statement of Income Captions [Line Items] | |||||||||||
Net income | 3,772 | 4,206 | 5,540 | ||||||||
Other comprehensive income (loss): | |||||||||||
Foreign currency translation adjustment | 286 | (419) | 434 | ||||||||
Net gain (loss) on pension and other postretirement benefits | (19) | 18 | 4 | ||||||||
Net loss on cash flow hedges | (8) | ||||||||||
Other comprehensive income (loss) before income tax expense (benefit) | 259 | (401) | 438 | ||||||||
Income tax expense (benefit) related to items of other comprehensive income (loss) | (4) | 3 | 1 | ||||||||
Other comprehensive income (loss) | 263 | (404) | 437 | ||||||||
Comprehensive income | 4,035 | 3,802 | 5,977 | ||||||||
Less: Comprehensive income attributable to noncontrolling interests | 359 | 161 | 29 | ||||||||
Comprehensive income attributable to Valero Energy Corporation stockholders | $ 3,676 | $ 3,641 | $ 5,948 |
Condensed Consolidating Finan_7
Condensed Consolidating Financial Statements, Statement of Cash Flows (Details) - USD ($) $ in Millions | Nov. 15, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities | $ 5,531 | $ 4,371 | $ 5,482 | |
Cash flows from investing activities: | ||||
Capital expenditures (excluding VIEs) | (1,627) | (1,463) | (1,269) | |
Deferred turnaround and catalyst cost expenditures (excluding VIEs) | (762) | (888) | (519) | |
Investments in unconsolidated joint ventures | (164) | (181) | (406) | |
Peru Acquisition, net of cash acquired | 0 | (468) | 0 | |
Acquisitions of undivided interests | (72) | (212) | (72) | |
Intercompany investing activities | 0 | 0 | 0 | |
Other investing activities, net | 12 | 8 | (2) | |
Net cash provided by (used in) investing activities | (3,001) | (3,928) | (2,382) | |
Cash flows from financing activities: | ||||
Proceeds from debt issuances and borrowings (excluding VIEs) | 1,892 | 1,258 | 380 | |
Proceeds from borrowings of VIEs | 239 | 109 | ||
Repayments of debt and finance lease obligations (excluding VIEs) | (1,805) | (1,353) | (15) | |
Repayments of debt of VIEs | (6) | (6) | (6) | |
Intercompany financing activities | 0 | 0 | 0 | |
Purchases of common stock for treasury | (777) | (1,708) | (1,372) | |
Common stock dividends | (1,492) | (1,369) | (1,242) | |
Acquisition of VLP publicly held common units | (950) | 0 | 0 | |
Contributions from noncontrolling interests | 0 | 32 | 30 | |
Distributions to noncontrolling interests and unitholders of VLP | (70) | (116) | (67) | |
Other financing activities, net | (28) | (15) | 20 | |
Net cash provided by (used in) financing activities | (2,997) | (3,168) | (2,272) | |
Effect of foreign exchange rate changes on cash | 68 | (143) | 206 | |
Net increase (decrease) in cash and cash equivalents | (399) | (2,868) | 1,034 | |
Cash and cash equivalents at beginning of year | 2,982 | 5,850 | 4,816 | |
Cash and cash equivalents at end of year | 2,583 | 2,982 | 5,850 | |
Minor Acquisitions [Member] | ||||
Cash flows from investing activities: | ||||
Asset acquisitions | 0 | (88) | 0 | |
Ethanol Plants [Member] | ||||
Cash flows from investing activities: | ||||
Asset acquisitions | $ (320) | (3) | (320) | 0 |
DGD [Member] | ||||
Cash flows from investing activities: | ||||
Capital expenditures of VIEs | (142) | (165) | (84) | |
Deferred turnaround and catalyst cost expenditures of DGD | (18) | (27) | (4) | |
Other VIEs [Member] | ||||
Cash flows from investing activities: | ||||
Capital expenditures of VIEs | (225) | (124) | (26) | |
Eliminations [Member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities | (457) | (199) | (131) | |
Cash flows from investing activities: | ||||
Capital expenditures (excluding VIEs) | 0 | 0 | 0 | |
Deferred turnaround and catalyst cost expenditures (excluding VIEs) | 0 | 0 | 0 | |
Investments in unconsolidated joint ventures | 0 | 0 | 0 | |
Peru Acquisition, net of cash acquired | 0 | |||
Acquisitions of undivided interests | 0 | 0 | 0 | |
Intercompany investing activities | 2,576 | 1,521 | 10,885 | |
Other investing activities, net | 0 | 0 | 0 | |
Net cash provided by (used in) investing activities | 2,576 | 1,521 | 10,885 | |
Cash flows from financing activities: | ||||
Proceeds from debt issuances and borrowings (excluding VIEs) | 0 | 0 | 0 | |
Proceeds from borrowings of VIEs | 0 | 0 | ||
Repayments of debt and finance lease obligations (excluding VIEs) | 0 | 0 | 0 | |
Repayments of debt of VIEs | 0 | 0 | 0 | |
Intercompany financing activities | (2,576) | (1,521) | (10,885) | |
Purchases of common stock for treasury | 0 | 0 | 0 | |
Common stock dividends | 81 | 32 | 10 | |
Acquisition of VLP publicly held common units | 0 | |||
Contributions from noncontrolling interests | 0 | 0 | ||
Distributions to noncontrolling interests and unitholders of VLP | 376 | 167 | 121 | |
Other financing activities, net | 0 | 0 | 0 | |
Net cash provided by (used in) financing activities | (2,119) | (1,322) | (10,754) | |
Effect of foreign exchange rate changes on cash | 0 | 0 | 0 | |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 | |
Cash and cash equivalents at beginning of year | 0 | 0 | 0 | |
Cash and cash equivalents at end of year | 0 | 0 | 0 | |
Eliminations [Member] | Minor Acquisitions [Member] | ||||
Cash flows from investing activities: | ||||
Asset acquisitions | 0 | |||
Eliminations [Member] | Ethanol Plants [Member] | ||||
Cash flows from investing activities: | ||||
Asset acquisitions | 0 | 0 | ||
Eliminations [Member] | DGD [Member] | ||||
Cash flows from investing activities: | ||||
Capital expenditures of VIEs | 0 | 0 | 0 | |
Deferred turnaround and catalyst cost expenditures of DGD | 0 | 0 | 0 | |
Eliminations [Member] | Other VIEs [Member] | ||||
Cash flows from investing activities: | ||||
Capital expenditures of VIEs | 0 | 0 | 0 | |
Valero Energy Corporation [Member] | Reportable Legal Entities [Member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities | (131) | (1,207) | (73) | |
Cash flows from investing activities: | ||||
Capital expenditures (excluding VIEs) | 0 | 0 | 0 | |
Deferred turnaround and catalyst cost expenditures (excluding VIEs) | 0 | 0 | 0 | |
Investments in unconsolidated joint ventures | 0 | 0 | 0 | |
Peru Acquisition, net of cash acquired | 0 | |||
Acquisitions of undivided interests | 0 | 0 | 0 | |
Intercompany investing activities | 395 | 758 | (4,002) | |
Other investing activities, net | 0 | 0 | 0 | |
Net cash provided by (used in) investing activities | 395 | 758 | (4,002) | |
Cash flows from financing activities: | ||||
Proceeds from debt issuances and borrowings (excluding VIEs) | 992 | 750 | 0 | |
Proceeds from borrowings of VIEs | 0 | 0 | ||
Repayments of debt and finance lease obligations (excluding VIEs) | (871) | (787) | 0 | |
Repayments of debt of VIEs | 0 | 0 | 0 | |
Intercompany financing activities | 2,520 | 2,106 | 6,704 | |
Purchases of common stock for treasury | (777) | (1,708) | (1,372) | |
Common stock dividends | (1,492) | (1,369) | (1,242) | |
Acquisition of VLP publicly held common units | 0 | |||
Contributions from noncontrolling interests | 0 | 0 | ||
Distributions to noncontrolling interests and unitholders of VLP | 0 | 0 | 0 | |
Other financing activities, net | (15) | 2 | 10 | |
Net cash provided by (used in) financing activities | 357 | (1,006) | 4,100 | |
Effect of foreign exchange rate changes on cash | 0 | 0 | 0 | |
Net increase (decrease) in cash and cash equivalents | 621 | (1,455) | 25 | |
Cash and cash equivalents at beginning of year | 291 | 1,746 | 1,721 | |
Cash and cash equivalents at end of year | 912 | 291 | 1,746 | |
Valero Energy Corporation [Member] | Reportable Legal Entities [Member] | Minor Acquisitions [Member] | ||||
Cash flows from investing activities: | ||||
Asset acquisitions | 0 | |||
Valero Energy Corporation [Member] | Reportable Legal Entities [Member] | Ethanol Plants [Member] | ||||
Cash flows from investing activities: | ||||
Asset acquisitions | 0 | 0 | ||
Valero Energy Corporation [Member] | Reportable Legal Entities [Member] | DGD [Member] | ||||
Cash flows from investing activities: | ||||
Capital expenditures of VIEs | 0 | 0 | 0 | |
Deferred turnaround and catalyst cost expenditures of DGD | 0 | 0 | 0 | |
Valero Energy Corporation [Member] | Reportable Legal Entities [Member] | Other VIEs [Member] | ||||
Cash flows from investing activities: | ||||
Capital expenditures of VIEs | 0 | 0 | 0 | |
Valero Energy Partners LP [Member] | Reportable Legal Entities [Member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities | (46) | (51) | (34) | |
Cash flows from investing activities: | ||||
Capital expenditures (excluding VIEs) | 0 | 0 | 0 | |
Deferred turnaround and catalyst cost expenditures (excluding VIEs) | 0 | 0 | 0 | |
Investments in unconsolidated joint ventures | 0 | 0 | 0 | |
Peru Acquisition, net of cash acquired | 0 | |||
Acquisitions of undivided interests | 0 | 0 | 0 | |
Intercompany investing activities | 2 | 102 | (187) | |
Other investing activities, net | 0 | 0 | 0 | |
Net cash provided by (used in) investing activities | 2 | 102 | (187) | |
Cash flows from financing activities: | ||||
Proceeds from debt issuances and borrowings (excluding VIEs) | 0 | 498 | 380 | |
Proceeds from borrowings of VIEs | 0 | 0 | ||
Repayments of debt and finance lease obligations (excluding VIEs) | 0 | (410) | 0 | |
Repayments of debt of VIEs | 0 | 0 | 0 | |
Intercompany financing activities | 268 | 190 | (63) | |
Purchases of common stock for treasury | 0 | 0 | 0 | |
Common stock dividends | 0 | 0 | 0 | |
Acquisition of VLP publicly held common units | 0 | |||
Contributions from noncontrolling interests | 0 | 0 | ||
Distributions to noncontrolling interests and unitholders of VLP | (376) | (215) | (161) | |
Other financing activities, net | 0 | (4) | 36 | |
Net cash provided by (used in) financing activities | (108) | 59 | 192 | |
Effect of foreign exchange rate changes on cash | 0 | 0 | 0 | |
Net increase (decrease) in cash and cash equivalents | (152) | 110 | (29) | |
Cash and cash equivalents at beginning of year | 152 | 42 | 71 | |
Cash and cash equivalents at end of year | 0 | 152 | 42 | |
Valero Energy Partners LP [Member] | Reportable Legal Entities [Member] | Minor Acquisitions [Member] | ||||
Cash flows from investing activities: | ||||
Asset acquisitions | 0 | |||
Valero Energy Partners LP [Member] | Reportable Legal Entities [Member] | Ethanol Plants [Member] | ||||
Cash flows from investing activities: | ||||
Asset acquisitions | 0 | 0 | ||
Valero Energy Partners LP [Member] | Reportable Legal Entities [Member] | DGD [Member] | ||||
Cash flows from investing activities: | ||||
Capital expenditures of VIEs | 0 | 0 | 0 | |
Deferred turnaround and catalyst cost expenditures of DGD | 0 | 0 | 0 | |
Valero Energy Partners LP [Member] | Reportable Legal Entities [Member] | Other VIEs [Member] | ||||
Cash flows from investing activities: | ||||
Capital expenditures of VIEs | 0 | 0 | 0 | |
Other Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities | 6,165 | 5,828 | 5,720 | |
Cash flows from investing activities: | ||||
Capital expenditures (excluding VIEs) | (1,627) | (1,463) | (1,269) | |
Deferred turnaround and catalyst cost expenditures (excluding VIEs) | (762) | (888) | (519) | |
Investments in unconsolidated joint ventures | (164) | (181) | (406) | |
Peru Acquisition, net of cash acquired | (468) | |||
Acquisitions of undivided interests | (72) | (212) | (72) | |
Intercompany investing activities | (2,973) | (2,381) | (6,696) | |
Other investing activities, net | 12 | 8 | (2) | |
Net cash provided by (used in) investing activities | (5,974) | (6,309) | (9,078) | |
Cash flows from financing activities: | ||||
Proceeds from debt issuances and borrowings (excluding VIEs) | 900 | 10 | 0 | |
Proceeds from borrowings of VIEs | 239 | 109 | ||
Repayments of debt and finance lease obligations (excluding VIEs) | (934) | (156) | (15) | |
Repayments of debt of VIEs | (6) | (6) | (6) | |
Intercompany financing activities | (212) | (775) | 4,244 | |
Purchases of common stock for treasury | 0 | 0 | 0 | |
Common stock dividends | (81) | (32) | (10) | |
Acquisition of VLP publicly held common units | (950) | |||
Contributions from noncontrolling interests | 32 | 30 | ||
Distributions to noncontrolling interests and unitholders of VLP | (70) | (68) | (27) | |
Other financing activities, net | (13) | (13) | (26) | |
Net cash provided by (used in) financing activities | (1,127) | (899) | 4,190 | |
Effect of foreign exchange rate changes on cash | 68 | (143) | 206 | |
Net increase (decrease) in cash and cash equivalents | (868) | (1,523) | 1,038 | |
Cash and cash equivalents at beginning of year | 2,539 | 4,062 | 3,024 | |
Cash and cash equivalents at end of year | 1,671 | 2,539 | 4,062 | |
Other Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | Minor Acquisitions [Member] | ||||
Cash flows from investing activities: | ||||
Asset acquisitions | (88) | |||
Other Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | Ethanol Plants [Member] | ||||
Cash flows from investing activities: | ||||
Asset acquisitions | (3) | (320) | ||
Other Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | DGD [Member] | ||||
Cash flows from investing activities: | ||||
Capital expenditures of VIEs | (142) | (165) | (84) | |
Deferred turnaround and catalyst cost expenditures of DGD | (18) | (27) | (4) | |
Other Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | Other VIEs [Member] | ||||
Cash flows from investing activities: | ||||
Capital expenditures of VIEs | $ (225) | $ (124) | $ (26) |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Quarterly Financial Data | |||||||||||||||
Revenues | $ 27,879 | $ 27,249 | $ 28,933 | $ 24,263 | $ 28,730 | $ 30,849 | $ 31,015 | $ 26,439 | $ 108,324 | [1] | $ 117,033 | [1] | $ 93,980 | [1] | |
Gross profit | [2] | 2,003 | 1,119 | 1,123 | 533 | 1,546 | 1,451 | 1,535 | 1,062 | ||||||
Operating income | 1,739 | 881 | 908 | 308 | 1,299 | 1,219 | 1,253 | 801 | 3,836 | 4,572 | 3,563 | ||||
Net income | 1,330 | 639 | 648 | 167 | 1,022 | 874 | 875 | 582 | 2,784 | 3,353 | 4,156 | ||||
Net income attributable to Valero Energy Corporation stockholders | $ 1,060 | $ 609 | $ 612 | $ 141 | $ 952 | $ 856 | $ 845 | $ 469 | $ 2,422 | $ 3,122 | $ 4,065 | ||||
Earnings per common share (in usd per share) | $ 2.58 | $ 1.48 | $ 1.47 | $ 0.34 | $ 2.26 | $ 2.01 | $ 1.96 | $ 1.09 | $ 5.84 | $ 7.30 | $ 9.17 | ||||
Earnings per common share – assuming dilution (in usd per share) | $ 2.58 | $ 1.48 | $ 1.47 | $ 0.34 | $ 2.24 | $ 2.01 | $ 1.96 | $ 1.09 | $ 5.84 | $ 7.29 | $ 9.16 | ||||
[1] | Includes excise taxes on sales by certain of our international operations of $5,595 million, $5,626 million, and $5,573 million for the years ended December 31, 2019, 2018, and 2017. | ||||||||||||||
[2] | Gross profit is calculated as revenues less total cost of sales. |