Debt and Capital Lease Obligations

3 Months Ended

Mar. 31, 2018

Debt and Capital Lease Obligations [Abstract]


3.	DEBT AND CAPITAL LEASE OBLIGATIONS

Debt

During the three months ended March 31, 2018, VLP issued in a public offering $500 million aggregate principal amount of its 4.5 percent Senior Notes due March 15, 2028. Gross proceeds from this debt issuance were $498 million before deducting the underwriting discount and other debt issuance costs totaling $5 million. The proceeds are available only to the operations of VLP and were used to repay the outstanding balance of $410 million on VLP’s $750 million senior unsecured revolving credit facility (the VLP Revolver) and $85 million of its notes payable to us, which is eliminated in consolidation.

During the three months ended March 31, 2017, we had no significant debt activity.

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):



				March 31, 2018
	Facility Amount		Maturity Date	Outstanding Borrowings		Letters of Credit Issued		Availability
Committed facilities:
Valero Revolver	$	3,000	November 2020	$	—	$	138	$	2,862
VLP Revolver	750		November 2020	—		—		750
Canadian Revolver	C$	75	November 2018	C$	—	C$	6	C$	69
Accounts receivable sales facility	1,300		July 2018	100		n/a		1,200
Letter of credit facility	100		November 2018	n/a		—		100
Uncommitted facilities:
Letter of credit facilities	n/a		n/a	n/a		273		n/a

Letters of credit issued as of March 31, 2018 expire at various times in 2018 through 2020.

As of March 31, 2018 and December 31, 2017, the variable interest rate on the accounts receivable sales facility was 2.3616 percent and 2.0387 percent, respectively.

Other Disclosures

Interest and debt expense, net of capitalized interest is comprised of the following (in millions):



	Three Months Ended March 31,
	2018		2017
Interest and debt expense	$	139	$	134
Less capitalized interest	18		13
Interest and debt expense, net of capitalized interest	$	121	$	121