Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Mar. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

March 31, 2019

(in millions)



	Valero Energy Corporation			Valero Energy Partners LP		Other Non- Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	1,167		$	—	$	1,610		$	—		$	2,777
Receivables, net	—			—		8,289			—			8,289
Receivables from affiliates	4,277			—		11,315			(15,592		)	—
Inventories	—			—		6,554			—			6,554
Prepaid expenses and other	451			—		409			—			860
Total current assets	5,895			—		28,177			(15,592		)	18,480
Property, plant and equipment, at cost	—			—		42,388			—			42,388
Accumulated depreciation	—			—		(13,980		)	—			(13,980		)
Property, plant and equipment, net	—			—		28,408			—			28,408
Investment in affiliates	35,820			2,348		392			(38,560		)	—
Deferred charges and other assets, net	513			—		4,694			—			5,207
Total assets	$	42,228		$	2,348	$	61,671		$	(54,152	)	$	52,095
LIABILITIES AND EQUITY
Current liabilities:
Current portion of debt and finance lease obligations	$	849		$	—	$	261		$	—		$	1,110
Accounts payable	2			—		10,003			—			10,005
Accounts payable to affiliates	10,358			957		4,277			(15,592		)	—
Accrued expenses	152			7		613			—			772
Taxes other than income taxes payable	—			—		961			—			961
Income taxes payable	34			—		31			—			65
Total current liabilities	11,395			964		16,146			(15,592		)	12,913
Debt and finance lease obligations, less current portion	7,091			990		925			—			9,006
Deferred income tax liabilities	—			2		4,865			—			4,867
Other long-term liabilities	1,963			—		1,567			—			3,530
Equity:
Stockholders’ equity:
Common stock	7			—		1			(1		)	7
Additional paid-in capital	6,802			—		9,754			(9,754		)	6,802
Treasury stock, at cost	(14,958		)	—		—			—			(14,958		)
Retained earnings	30,810			—		28,911			(28,911		)	30,810
Partners’ equity	—			392		—			(392		)	—
Accumulated other comprehensive loss	(1,352		)	—		(968		)	968			(1,352		)
Total stockholders’ equity	21,309			392		37,698			(38,090		)	21,309
Noncontrolling interests	470			—		470			(470		)	470
Total equity	21,779			392		38,168			(38,560		)	21,779
Total liabilities and equity	$	42,228		$	2,348	$	61,671		$	(54,152	)	$	52,095

Condensed Consolidating Balance Sheet

December 31, 2018

(in millions)



	Valero Energy Corporation			Valero Energy Partners LP		Other Non- Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	291		$	152	$	2,539		$	—		$	2,982
Receivables, net	—			—		7,345			—			7,345
Receivables from affiliates	4,369			2		11,025			(15,396		)	—
Inventories	—			—		6,532			—			6,532
Prepaid expenses and other	466			—		355			(5		)	816
Total current assets	5,126			154		27,796			(15,401		)	17,675
Property, plant and equipment, at cost	—			—		42,473			—			42,473
Accumulated depreciation	—			—		(13,625		)	—			(13,625		)
Property, plant and equipment, net	—			—		28,848			—			28,848
Investment in affiliates	36,101			2,267		299			(38,667		)	—
Long-term notes receivable from affiliates	285			—		—			(285		)	—
Deferred charges and other assets, net	572			1		3,059			—			3,632
Total assets	$	42,084		$	2,422	$	60,002		$	(54,353	)	$	50,155
LIABILITIES AND EQUITY
Current liabilities:
Current portion of debt and finance lease obligations	$	—		$	—	$	238		$	—		$	238
Accounts payable	14			—		8,580			—			8,594
Accounts payable to affiliates	10,188			837		4,370			(15,395		)	—
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	10,410			846		14,869			(15,401		)	10,724
Debt and finance lease obligations, less current portion	6,955			990		926			—			8,871
Long-term notes payable to affiliates	—			285		—			(285		)	—
Deferred income taxes	—			2		4,960			—			4,962
Other long-term liabilities	1,988			—		879			—			2,867
Equity:
Stockholders’ equity:
Common stock	7			—		1			(1		)	7
Additional paid-in capital	7,048			—		9,754			(9,754		)	7,048
Treasury stock, at cost	(14,925		)	—		—			—			(14,925		)
Retained earnings	31,044			—		28,646			(28,646		)	31,044
Partners’ equity	—			299		—			(299		)	—
Accumulated other comprehensive loss	(1,507		)	—		(1,097		)	1,097			(1,507		)
Total stockholders’ equity	21,667			299		37,304			(37,603		)	21,667
Noncontrolling interests	1,064			—		1,064			(1,064		)	1,064
Total equity	22,731			299		38,368			(38,667		)	22,731
Total liabilities and equity	$	42,084		$	2,422	$	60,002		$	(54,353	)	$	50,155

Condensed Consolidating Statement of Income

Three Months Ended March 31, 2019

(in millions)



	Valero Energy Corporation			Valero Energy Partners LP			Other Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	—		$	24,263		$	—		$	24,263
Cost of sales:
Cost of materials and other	—			—			21,978			—			21,978
Operating expenses (excluding depreciation and amortization expense reflected below)	—			—			1,215			—			1,215
Depreciation and amortization expense	—			—			537			—			537
Total cost of sales	—			—			23,730			—			23,730
Other operating expenses	—			—			2			—			2
General and administrative expenses (excluding depreciation and amortization expense reflected below)	1			—			208			—			209
Depreciation and amortization expense	—			—			14			—			14
Operating income (loss)	(1		)	—			309			—			308
Equity in earnings of subsidiaries	264			82			90			(436		)	—
Other income, net	54			—			147			(179		)	22
Interest and debt expense, net of capitalized interest	(232		)	(15		)	(44		)	179			(112		)
Income before income tax expense	85			67			502			(436		)	218
Income tax expense (benefit)	(82		)	—			133			—			51
Net income	167			67			369			(436		)	167
Less: Net income attributable to noncontrolling interests	26			—			23			(23		)	26
Net income attributable to stockholders	$	141		$	67		$	346		$	(413	)	$	141

Condensed Consolidating Statement of Income

Three Months Ended March 31, 2018

(in millions)



	Valero Energy Corporation			Valero Energy Partners LP			Other Non- Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	—		$	—		$	26,439		$	—		$	26,439
Cost of sales:
Cost of materials and other	—			—			23,756			—			23,756
Operating expenses (excluding depreciation and amortization expense reflected below)	—			—			1,136			—			1,136
Depreciation and amortization expense	—			—			485			—			485
Total cost of sales	—			—			25,377			—			25,377
Other operating expenses	—			—			10			—			10
General and administrative expenses (excluding depreciation and amortization expense reflected below)	1			—			237			—			238
Depreciation and amortization expense	—			—			13			—			13
Operating income (loss)	(1		)	—			802			—			801
Equity in earnings of subsidiaries	720			78			163			(961		)	—
Other income, net	69			—			151			(169		)	51
Interest and debt expense, net of capitalized interest	(218		)	(12		)	(60		)	169			(121		)
Income before income tax expense	570			66			1,056			(961		)	731
Income tax expense (benefit)	(12		)	—			161			—			149
Net income	582			66			895			(961		)	582
Less: Net income attributable to noncontrolling interests	113			—			97			(97		)	113
Net income attributable to stockholders	$	469		$	66		$	798		$	(864	)	$	469

Condensed Consolidating Statement of Comprehensive Income

Three Months Ended March 31, 2019

(in millions)



	Valero Energy Corporation		Valero Energy Partners LP		Other Non- Guarantor Subsidiaries		Eliminations			Consolidated
Net income	$	167	$	67	$	369	$	(436	)	$	167
Other comprehensive income:
Foreign currency translation adjustment	155		—		159		(159		)	155
Net gain on pension and other postretirement benefits	3		—		—		—			3
Other comprehensive income before income tax expense	158		—		159		(159		)	158
Income tax expense related to items of other comprehensive income	1		—		—		—			1
Other comprehensive income	157		—		159		(159		)	157
Comprehensive income	324		67		528		(595		)	324
Less: Comprehensive income attributable to noncontrolling interests	—		—		28		—			28
Comprehensive income attributable to stockholders	$	324	$	67	$	500	$	(595	)	$	296

Condensed Consolidating Statement of Comprehensive Income

Three Months Ended March 31, 2018

(in millions)



	Valero Energy Corporation		Valero Energy Partners LP		Other Non- Guarantor Subsidiaries		Eliminations			Consolidated
Net income	$	582	$	66	$	895	$	(961	)	$	582
Other comprehensive income:
Foreign currency translation adjustment	45		—		45		(45		)	45
Net gain on pension and other postretirement benefits	8		—		—		—			8
Other comprehensive income before income tax expense	53		—		45		(45		)	53
Income tax expense related to items of other comprehensive income	2		—		—		—			2
Other comprehensive income	51		—		45		(45		)	51
Comprehensive income	633		66		940		(1,006		)	633
Less: Comprehensive income attributable to noncontrolling interests	—		—		116		—			116
Comprehensive income attributable to stockholders	$	633	$	66	$	824	$	(1,006	)	$	517

Condensed Consolidating Statement of Cash Flows

Three Months Ended March 31, 2019

(in millions)



	Valero Energy Corporation			Valero Energy Partners LP			Other Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	(21	)	$	(14	)	$	1,069		$	(157	)	$	877
Cash flows from investing activities:
Capital expenditures	—			—			(444		)	—			(444		)
Deferred turnaround and catalyst costs	—			—			(219		)	—			(219		)
Investments in joint ventures	—			—			(63		)	—			(63		)
Capital expenditures of certain VIEs	—			—			(19		)	—			(19		)
Acquisitions of undivided interests	—			—			(1		)	—			(1		)
Intercompany investing activities	307			2			(148		)	(161		)	—
Other investing activities, net	—			—			(1		)	—			(1		)
Net cash provided by (used in) investing activities	307			2			(895		)	(161		)	(747		)
Cash flows from financing activities:
Proceeds from debt issuances and borrowings (excluding borrowings of certain VIEs)	992			—			900			—			1,892
Proceeds from borrowings of certain VIEs	—			—			23			—			23
Repayments of debt and finance lease obligations	—			—			(907		)	—			(907		)
Intercompany financing activities	27			(64		)	(124		)	161			—
Purchases of common stock for treasury	(36		)	—			—			—			(36		)
Common stock dividends	(375		)	—			(81		)	81			(375		)
Acquisition of VLP publicly held common units	—			—			(950		)	—			(950		)
Distributions to unitholders of VLP	—			(76		)	—			76			—
Other financing activities, net	(18		)	—			(7		)	—			(25		)
Net cash provided by (used in) financing activities	590			(140		)	(1,146		)	318			(378		)
Effect of foreign exchange rate changes on cash	—			—			43			—			43
Net increase (decrease) in cash and cash equivalents	876			(152		)	(929		)	—			(205		)
Cash and cash equivalents at beginning of period	291			152			2,539			—			2,982
Cash and cash equivalents at end of period	$	1,167		$	—		$	1,610		$	—		$	2,777

Condensed Consolidating Statement of Cash Flows

Three Months Ended March 31, 2018

(in millions)



	Valero Energy Corporation			Valero Energy Partners LP			Other Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	(356	)	$	(10	)	$	560		$	(56	)	$	138
Cash flows from investing activities:
Capital expenditures	—			—			(356		)	—			(356		)
Deferred turnaround and catalyst costs	—			—			(220		)	—			(220		)
Investments in joint ventures	—			—			(55		)	—			(55		)
Capital expenditures of certain VIEs	—			—			(28		)	—			(28		)
Acquisitions of undivided interests	—			—			(85		)	—			(85		)
Intercompany investing activities	163			92			(488		)	233			—
Other investing activities, net	—			—			(8		)	—			(8		)
Net cash provided by (used in) investing activities	163			92			(1,240		)	233			(752		)
Cash flows from financing activities:
Proceeds from debt issuances and borrowings	—			498			—			—			498
Repayments of debt and finance lease obligations	—			(410		)	(5		)	—			(415		)
Intercompany financing activities	491			(88		)	(170		)	(233		)	—
Purchases of common stock for treasury	(320		)	—			—			—			(320		)
Common stock dividends	(345		)	—			(17		)	17			(345		)
Contributions from noncontrolling interests	—			—			32			—			32
Distributions to unitholders of VLP	—			(50		)	—			39			(11		)
Other financing activities, net	5			(3		)	(14		)	—			(12		)
Net cash used in financing activities	(169		)	(53		)	(174		)	(177		)	(573		)
Effect of foreign exchange rate changes on cash	—			—			(5		)	—			(5		)
Net increase (decrease) in cash and cash equivalents	(362		)	29			(859		)	—			(1,192		)
Cash and cash equivalents at beginning of period	1,746			42			4,062			—			5,850
Cash and cash equivalents at end of period	$	1,384		$	71		$	3,203		$	—		$	4,658