Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2012

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Balance Sheet as of June 30, 2012

(In millions)



	Parent		Guarantor Subsidiaries			Non-Guarantors		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	1,277		$	45	$	—		$	1,322
Receivables, less allowance for doubtful accounts	1		1,094			67		—			1,162
Inventories	—		1,504			277		—			1,781
Prepayments and other current assets	70		68			10		—			148
Total Current Assets	71		3,943			399		—			4,413
Net Property, Plant and Equipment	—		5,021			267		—			5,288
Investment in Subsidiaries	4,875		(248		)	298		(4,925		)	—
Long-Term Receivables from Affiliates	2,237		—			—		(2,237		)	—
Other Noncurrent Assets	38		668			119		(118		)	707
Total Assets	$	7,221	$	9,384		$	1,083	$	(7,280	)	$	10,408
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable and accrued liabilities	$	148	$	2,425		$	195	$	—		$	2,768
Current maturities of debt	299		3			50		—			352
Total Current Liabilities	447		2,428			245		—			3,120
Long-Term Payables to Affiliates	—		2,161			76		(2,237		)	—
Debt	1,332		18			118		(118		)	1,350
Other Noncurrent Liabilities	1,330		181			4		—			1,515
Equity-Tesoro Corporation	4,112		4,596			329		(4,925		)	4,112
Equity-Noncontrolling interest	—		—			311		—			311
Total Liabilities and Equity	$	7,221	$	9,384		$	1,083	$	(7,280	)	$	10,408

Condensed Consolidating Balance Sheet as of December 31, 2011

(In millions)



	Parent		Guarantor Subsidiaries			Non-Guarantors		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	805		$	95	$	—		$	900
Receivables, less allowance for doubtful accounts	1		1,189			82		—			1,272
Inventories	—		1,416			347		—			1,763
Prepayments and other current assets	106		88			22		—			216
Total Current Assets	107		3,498			546		—			4,151
Net Property, Plant and Equipment	—		4,925			223		—			5,148
Investment in Subsidiaries	4,436		(284		)	282		(4,434		)	—
Long-Term Receivables from Affiliates	1,944		—			—		(1,944		)	—
Other Noncurrent Assets	42		548			53		(50		)	593
Total Assets	$	6,529	$	8,687		$	1,104	$	(6,428	)	$	9,892
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable and accrued liabilities	$	85	$	2,420		$	326	$	—		$	2,831
Current maturities of debt	299		2			117		—			418
Total Current Liabilities	384		2,422			443		—			3,249
Long-Term Payables to Affiliates	—		1,922			22		(1,944		)	—
Debt	1,264		19			50		(50		)	1,283
Other Noncurrent Liabilities	1,200		177			5		—			1,382
Equity-Tesoro Corporation	3,681		4,147			274		(4,434		)	3,668
Equity-Noncontrolling interest	—		—			310		—			310
Total Liabilities and Equity	$	6,529	$	8,687		$	1,104	$	(6,428	)	$	9,892

Condensed Consolidating Statement of Operations and Comprehensive Income

Condensed Consolidating Statement of Operations and

Comprehensive Income for the Three Months Ended June 30, 2012

(In millions)



	Parent			Guarantor Subsidiaries			Non- Guarantors			Eliminations			Consolidated
REVENUES	$	—		$	9,768		$	642		$	(2,305	)	$	8,105
Costs and expenses	3			9,103			623			(2,305		)	7,424
OPERATING INCOME (LOSS)	(3		)	665			19			—			681
Equity in earnings (loss) of subsidiaries	391			13			10			(414		)	—
Other expense	(1		)	(50		)	(2		)	—			(53		)
EARNINGS (LOSS) BEFORE INCOME TAXES	387			628			27			(414		)	628
Income tax expense (benefit) (a)	—			237			(2		)	—			235
NET EARNINGS (LOSS)	387			391			29			(414		)	393
Less net income attributable to noncontrolling interest	—			—			6			—			6
NET EARNINGS (LOSS) ATTRIBUTABLE TO TESORO CORPORATION	$	387		$	391		$	23		$	(414	)	$	387

COMPREHENSIVE INCOME (LOSS)
Total comprehensive income (loss)	$	387		$	391		$	29		$	(414	)	$	393
Less noncontrolling interest in comprehensive income	—			—			6			—			6
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO TESORO CORPORATION	$	387		$	391		$	23		$	(414	)	$	387

_______________


(a)	The income tax expense (benefit) reflected in each column does not include any tax effect of the equity in earnings from corporate subsidiaries, but does include the tax effect of the corporate partners' share of partnership income.

Condensed Consolidating Statement of Operations and

Comprehensive Income for the Three Months Ended June 30, 2011

(In millions)



	Parent			Guarantor Subsidiaries			Non- Guarantors			Eliminations			Consolidated
REVENUES	$	—		$	9,964		$	960		$	(2,961	)	$	7,963
Costs and expenses	1			9,557			947			(2,961		)	7,544
OPERATING INCOME (LOSS)	(1		)	407			13			—			419
Equity in earnings (loss) of subsidiaries	224			(5		)	21			(240		)	—
Other expense	—			(58		)	(4		)	—			(62		)
EARNINGS (LOSS) BEFORE INCOME TAXES	223			344			30			(240		)	357
Income tax expense (a)	1			133			1			—			135
NET EARNINGS (LOSS)	222			211			29			(240		)	222
Less net income attributable to noncontrolling interest	—			—			4			—			4
NET EARNINGS (LOSS) ATTRIBUTABLE TO TESORO CORPORATION	$	222		$	211		$	25		$	(240	)	$	218

COMPREHENSIVE INCOME (LOSS)
Total comprehensive income (loss)	$	222		$	211		$	29		$	(240	)	$	222
Less noncontrolling interest in comprehensive income	—			—			4			—			4
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO TESORO CORPORATION	$	222		$	211		$	25		$	(240	)	$	218

_______________


(a)	The income tax expense reflected in each column does not include any tax effect of the equity in earnings from corporate subsidiaries, but does include the tax effect of the corporate partners' share of partnership income.

Condensed Consolidating Statement of Operations and

Comprehensive Income for the Six Months Ended June 30, 2012

(In millions)



	Parent			Guarantor Subsidiaries			Non- Guarantors			Eliminations			Consolidated
REVENUES	$	—		$	19,401		$	1,238		$	(4,714	)	$	15,925
Costs and expenses	5			18,609			1,210			(4,714		)	15,110
OPERATING INCOME (LOSS)	(5		)	792			28			—			815
Equity in earnings (loss) of subsidiaries	450			—			41			(491		)	—
Other expense	(2		)	(82		)	(4		)	—			(88		)
EARNINGS (LOSS) BEFORE INCOME TAXES	443			710			65			(491		)	727
Income tax expense (a)	—			272			—			—			272
NET EARNINGS (LOSS)	443			438			65			(491		)	455
Less net income attributable to noncontrolling interest	—			—			12			—			12
NET EARNINGS (LOSS) ATTRIBUTABLE TO TESORO CORPORATION	$	443		$	438		$	53		$	(491	)	$	443

COMPREHENSIVE INCOME (LOSS)
Total comprehensive income (loss)	$	443		$	438		$	65		$	(491	)	$	455
Less noncontrolling interest in comprehensive income	—			—			12			—			12
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO TESORO CORPORATION	$	443		$	438		$	53		$	(491	)	$	443

_______________


(a)	The income tax expense reflected in each column does not include any tax effect of the equity in earnings from corporate subsidiaries, but does include the tax effect of the corporate partners' share of partnership income.

Condensed Consolidating Statement of Operations and

Comprehensive Income for the Six Months Ended June 30, 2011

(In millions)



	Parent			Guarantor Subsidiaries			Non- Guarantors			Eliminations			Consolidated
REVENUES	$	—		$	18,205		$	1,648		$	(5,364	)	$	14,489
Costs and expenses	5			17,580			1,630			(5,364		)	13,851
OPERATING INCOME (LOSS)	(5		)	625			18			—			638
Equity in earnings (loss) of subsidiaries	333			(17		)	21			(337		)	—
Other expense	—			(98		)	(6		)	—			(104		)
EARNINGS (LOSS) BEFORE INCOME TAXES	328			510			33			(337		)	534
Income tax expense (benefit) (a)	(1		)	204			2			—			205
NET EARNINGS (LOSS)	329			306			31			(337		)	329
Less net income attributable to noncontrolling interest	—			—			4			—			4
NET EARNINGS (LOSS) ATTRIBUTABLE TO TESORO CORPORATION	$	329		$	306		$	27		$	(337	)	$	325

COMPREHENSIVE INCOME (LOSS)
Total comprehensive income (loss)	$	329		$	306		$	31		$	(337	)	$	329
Less noncontrolling interest in comprehensive income	—			—			4			—			4
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO TESORO CORPORATION	$	329		$	306		$	27		$	(337	)	$	325

_______________


(a)	The income tax expense (benefit) reflected in each column does not include any tax effect of the equity in earnings from corporate subsidiaries, but does include the tax effect of the corporate partners' share of partnership income.

Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows for the Six Months Ended June 30, 2012

(In millions)



	Parent			Guarantor Subsidiaries			Non-Guarantors			Eliminations			Consolidated
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES
Net cash from (used in) operating activities	$	9		$	717		$	(2	)	$	—		$	724
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES
Capital expenditures	—			(234		)	(9		)	—			(243		)
Acquisitions	—			(38		)	—			—			(38		)
Proceeds from asset sales	—			3			—						3
Intercompany notes, net	(65		)	—			—			65			—
Net cash from (used in) investing activities	(65		)	(269		)	(9		)	65			(278		)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
Borrowings under revolving credit agreements	—			—			185			—			185
Repayments on revolving credit agreements	—			—			(184		)	—			(184		)
Repayments of debt	—			(1		)	—						(1		)
Proceeds from stock options exercised	14			—			—			—			14
Excess tax benefits from stock-based compensation arrangements	—			4			—			—			4
Distributions to noncontrolling interest	—			—			(11		)	—			(11		)
Purchases of common stock	(31		)	—			—			—			(31		)
Net intercompany borrowings (repayments)	—			15			50			(65		)	—
Borrowings from general partner	68			—			(68		)	—			—
Distributions to TLLP unitholders and general partner	5			6			(11		)	—			—
Net cash from (used in) financing activities	56			24			(39		)	(65		)	(24		)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	—			472			(50		)	—			422
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	—			805			95			—			900
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	—		$	1,277		$	45		$	—		$	1,322

Condensed Consolidating Statement of Cash Flows for the Six Months Ended June 30, 2011

(In millions)



	Parent			Guarantor Subsidiaries			Non-Guarantors			Eliminations			Consolidated
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES
Net cash from (used in) operating activities	$	31		$	162		$	(104	)	$	—		$	89
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES
Capital expenditures	—			(111		)	(1		)	—			(112		)
Proceeds from asset sales	—			1			—			—			1
Intercompany notes, net	59			—			—			(59		)	—
Net cash from (used in) investing activities	59			(110		)	(1		)	(59		)	(111		)
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
Borrowings under revolving credit agreements	—			—			115			—			115
Repayments on revolving credit agreements	—			—			(160		)	—			(160		)
Repayments of debt	(243		)	(1		)	—			—			(244		)
Proceeds from stock options exercised	7			—			—			—			7
Purchases of common stock	(7		)	—			—			—			(7		)
Excess tax benefits from stock-based compensation arrangements	—			7			—			—			7
Proceeds from issuance of common units Tesoro Logistics LP	—			—			288			—			288
Net intercompany borrowings (repayments)	—			(265		)	206			59			—
Borrowings from general partner	50			—			(50		)	—			—
Distributions to TLLP unitholders and general partner	126			157			(283		)	—			—
Financing costs and other	(23		)	—			(2		)	—			(25		)
Net cash from (used in) financing activities	(90		)	(102		)	114			59			(19		)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	—			(50		)	9			—			(41		)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	—			612			36			—			648
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	—		$	562		$	45		$	—		$	607