Delaware | 1-3473 | 95-0862768 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
19100 Ridgewood Pkwy San Antonio, Texas | 78259-1828 | |
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
99.1 | Press release announcing second quarter financial results issued on August 1, 2013, by Tesoro Corporation. |
TESORO CORPORATION | ||||
By: | /s/ G. SCOTT SPENDLOVE | |||
G. Scott Spendlove | ||||
Senior Vice President and Chief Financial Officer | ||||
Exhibit Number | Description | |
99.1 | Press release announcing second quarter financial results issued on August 1, 2013, by Tesoro Corporation. |
• | Net income from continuing operations of $1.72 per diluted share, or $1.56 excluding special items |
• | Closed the acquisition of BP's Southern California Refining, Marketing and Logistics Business |
• | Announced the sale of the Hawaii business |
• | Announced crude oil storage and marine terminal project at the Port of Vancouver, WA |
• | Purchased an additional $100 million in Tesoro shares during the second quarter |
• | Increased regular quarterly dividend by 25% to $0.25 per share |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenues | $ | 8,897 | $ | 7,333 | $ | 16,244 | $ | 14,340 | |||||||
Costs and Expenses: | |||||||||||||||
Cost of sales | 7,909 | 6,194 | 14,472 | 12,571 | |||||||||||
Operating expenses | 441 | 342 | 809 | 655 | |||||||||||
Selling, general and administrative expenses (a) | 64 | 45 | 175 | 104 | |||||||||||
Depreciation and amortization expense | 111 | 102 | 216 | 198 | |||||||||||
Loss on asset disposals and impairments | 8 | 6 | 15 | 12 | |||||||||||
Operating Income | 364 | 644 | 557 | 800 | |||||||||||
Interest and financing costs, net | (33 | ) | (34 | ) | (63 | ) | (70 | ) | |||||||
Interest income | — | — | 1 | 1 | |||||||||||
Other income (expense), net (b) | 56 | (19 | ) | 55 | (19 | ) | |||||||||
Earnings Before Income Taxes | 387 | 591 | 550 | 712 | |||||||||||
Income tax expense | 138 | 222 | 196 | 267 | |||||||||||
Net Earnings From Continuing Operations | 249 | 369 | 354 | 445 | |||||||||||
Net earnings (loss) from discontinued operations, net of tax (c) | (11 | ) | 24 | (12 | ) | 10 | |||||||||
Net Earnings | 238 | 393 | 342 | 455 | |||||||||||
Less: Net earnings from continuing operations attributable to noncontrolling interest | 11 | 6 | 22 | 12 | |||||||||||
NET EARNINGS ATTRIBUTABLE TO TESORO CORPORATION | $ | 227 | $ | 387 | $ | 320 | $ | 443 | |||||||
NET EARNINGS (LOSS) ATTRIBUTABLE TO TESORO CORPORATION | |||||||||||||||
Continuing operations | $ | 238 | $ | 363 | $ | 332 | $ | 433 | |||||||
Discontinued operations | (11 | ) | 24 | (12 | ) | 10 | |||||||||
Total | $ | 227 | $ | 387 | $ | 320 | $ | 443 | |||||||
NET EARNINGS (LOSS) PER SHARE - BASIC: | |||||||||||||||
Continuing operations | $ | 1.75 | $ | 2.60 | $ | 2.44 | $ | 3.11 | |||||||
Discontinued operations | (0.08 | ) | 0.17 | (0.09 | ) | 0.07 | |||||||||
Total | $ | 1.67 | $ | 2.77 | $ | 2.35 | $ | 3.18 | |||||||
Weighted average common shares outstanding - Basic | 135.8 | 139.6 | 136.4 | 139.5 | |||||||||||
NET EARNINGS (LOSS) PER SHARE - DILUTED: | |||||||||||||||
Continuing operations | $ | 1.72 | $ | 2.58 | $ | 2.39 | $ | 3.07 | |||||||
Discontinued operations | (0.08 | ) | 0.17 | (0.09 | ) | 0.07 | |||||||||
Total | $ | 1.64 | $ | 2.75 | $ | 2.30 | $ | 3.14 | |||||||
Weighted average common shares outstanding - Diluted | 138.2 | 140.5 | 138.9 | 141.2 |
(a) | Includes stock-based compensation benefit of $4 million for the three months ended June 30, 2013, and expense of $44 million and $19 million for the six months ended June 30, 2013 and 2012, respectively. The significant impact to stock-based compensation expense during the six months ended June 30, 2013 compared to the prior period is primarily a result of changes in Tesoro's stock price during the three and six months ended June 30, 2013 as compared to the three and six months ended June 30, 2012. Also includes transaction and integration costs related to the Carson Acquisition and TLLP’s purchase of the Northwest Products System of $19 million ($12 million after-tax) and $33 million for the three and six months ended June 30, 2013, respectively. |
(c) | On June 17, 2013, we entered into an agreement to sell all of our interest in Tesoro Hawaii, LLC, which includes our 94 Mbpd Hawaii refinery, retail stations and associated logistics assets (the "Hawaii Business") to a subsidiary of Par Petroleum. As a result, we have reflected its results of operations as discontinued operations in our consolidated statements of income for all periods presented, we have excluded our Hawaii Business from the financial and operational data presented in the tables and discussion that follow. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Operating Income | |||||||||||||||
Refining | $ | 395 | $ | 610 | $ | 678 | $ | 823 | |||||||
Retail | 25 | 72 | 40 | 67 | |||||||||||
Total Segment Operating Income | 420 | 682 | 718 | 890 | |||||||||||
Corporate and unallocated costs (a) | (56 | ) | (38 | ) | (161 | ) | (90 | ) | |||||||
Operating Income | 364 | 644 | 557 | 800 | |||||||||||
Interest and financing costs, net | (33 | ) | (34 | ) | (63 | ) | (70 | ) | |||||||
Interest income | — | — | 1 | 1 | |||||||||||
Other income (expense), net (b) | 56 | (19 | ) | 55 | (19 | ) | |||||||||
Earnings Before Income Taxes | $ | 387 | $ | 591 | $ | 550 | $ | 712 | |||||||
Depreciation and Amortization Expense | |||||||||||||||
Refining | $ | 97 | $ | 87 | $ | 189 | $ | 172 | |||||||
Retail | 9 | 9 | 17 | 18 | |||||||||||
Corporate | 5 | 6 | 10 | 8 | |||||||||||
Depreciation and Amortization Expense | $ | 111 | $ | 102 | $ | 216 | $ | 198 | |||||||
Capital Expenditures | |||||||||||||||
Refining | $ | 156 | $ | 116 | $ | 265 | $ | 203 | |||||||
Retail | 9 | 23 | 16 | 31 | |||||||||||
Corporate | 5 | 3 | 8 | 6 | |||||||||||
Capital Expenditures | $ | 170 | $ | 142 | $ | 289 | $ | 240 |
June 30, 2013 | December 31, 2012 | ||||||
Cash and cash equivalents | $ | 428 | $ | 1,639 | |||
Inventories (d) | 2,373 | 1,338 | |||||
Total Assets | 13,669 | 10,702 | |||||
Current maturities of debt | 9 | 3 | |||||
Long-Term Debt | 3,358 | 1,585 | |||||
Total Equity | 5,320 | 4,737 | |||||
Total Debt to Capitalization Ratio, excluding capital leases related to discontinued operations | 39 | % | 25 | % | |||
Total Debt to Capitalization Ratio excluding TLLP, excluding capital leases related to discontinued operations (e) | 36 | % | 22 | % | |||
Working Capital | 2,416 | 1,755 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
REFINING SEGMENT | 2013 | 2012 | 2013 | 2012 | |||||||||||
Total Refining Segment | |||||||||||||||
Throughput (thousand barrels per day (“Mbpd”)) | |||||||||||||||
Heavy crude (f) | 188 | 164 | 187 | 152 | |||||||||||
Light crude | 390 | 320 | 340 | 307 | |||||||||||
Other feedstocks | 46 | 39 | 41 | 34 | |||||||||||
Total Throughput (g) (h) | 624 | 523 | 568 | 493 | |||||||||||
Yield (Mbpd) | |||||||||||||||
Gasoline and gasoline blendstocks | 318 | 281 | 287 | 258 | |||||||||||
Jet fuel | 84 | 59 | 76 | 62 | |||||||||||
Diesel fuel | 137 | 118 | 129 | 105 | |||||||||||
Heavy fuel oils, residual products, internally produced fuel and other | 122 | 97 | 111 | 96 | |||||||||||
Total Yield | 661 | 555 | 603 | 521 | |||||||||||
Gross refining margin ($/throughput bbl) (i) | $ | 15.42 | $ | 20.96 | $ | 15.18 | $ | 17.51 | |||||||
Manufacturing cost before depreciation and amortization expense ($/throughput bbl) (i) | $ | 5.39 | $ | 4.87 | $ | 5.26 | $ | 5.01 | |||||||
Segment Operating Income ($ millions) | |||||||||||||||
Gross refining margin (j) (k) | $ | 876 | $ | 997 | $ | 1,561 | $ | 1,569 | |||||||
Expenses | |||||||||||||||
Manufacturing costs | 306 | 231 | 541 | 449 | |||||||||||
Other operating expenses | 61 | 56 | 123 | 101 | |||||||||||
Selling, general and administrative expenses | 10 | 9 | 20 | 17 | |||||||||||
Depreciation and amortization expense | 97 | 87 | 189 | 172 | |||||||||||
Loss on asset disposal and impairments | 7 | 4 | 10 | 7 | |||||||||||
Segment Operating Income (k) | $ | 395 | $ | 610 | $ | 678 | $ | 823 | |||||||
Refined Product Sales (Mbpd) (l) | |||||||||||||||
Gasoline and gasoline blendstocks | 398 | 344 | 361 | 336 | |||||||||||
Jet fuel | 101 | 72 | 89 | 74 | |||||||||||
Diesel fuel | 167 | 141 | 151 | 129 | |||||||||||
Heavy fuel oils, residual products and other | 82 | 64 | 79 | 66 | |||||||||||
Total Refined Product Sales | 748 | 621 | 680 | 605 | |||||||||||
Refined Product Sales Margin ($/bbl) (i) (l) | |||||||||||||||
Average sales price | $ | 115.93 | $ | 124.54 | $ | 117.02 | $ | 125.51 | |||||||
Average costs of sales | 104.55 | 110.01 | 105.66 | 113.19 | |||||||||||
Refined Product Sales Margin | $ | 11.38 | $ | 14.53 | $ | 11.36 | $ | 12.32 |
(f) | We define heavy crude oil as crude oil with an American Petroleum Institute gravity of 24 degrees or less. |
(g) | We had reduced throughput due to turnarounds at our Washington refinery during the first half of 2013, our Utah refinery during the 2013 second quarter, our Martinez refinery during the 2012 first quarter and our Alaska refinery during the 2012 second quarter. We had higher throughput at our North Dakota refinery during the first half of 2013 as a result of the refinery expansion completed in the second half of 2012 and at our Los Angeles refinery during the 2013 second quarter due to the acquisition of the Carson refinery. |
(i) | Management uses various measures to evaluate performance and efficiency and to compare profitability to other companies in the industry, including gross refining margin per barrel, manufacturing costs before depreciation and amortization expense (“Manufacturing Costs”) per barrel and refined product sales margin per barrel. |
• | Management uses gross refining margin per barrel to evaluate performance and compare profitability to other companies in the industry. There are a variety of ways to calculate gross refining margin per barrel; different companies may calculate it in different ways. We calculate gross refining margin per barrel by dividing gross refining margin (revenues less costs of feedstocks, purchased refined products, transportation and distribution) by total refining throughput. |
• | Management uses Manufacturing Costs per barrel to evaluate the efficiency of refining operations. There are a variety of ways to calculate Manufacturing Costs per barrel; different companies may calculate it in different ways. We calculate Manufacturing Costs per barrel by dividing Manufacturing Costs by total refining throughput. |
• | Management uses refined product sales margin per barrel to evaluate the profitability of manufactured and purchased refined product sales. There are a variety of ways to calculate refined product sales margin per barrel; different companies may calculate it in different ways. We calculate refined product sales margin per barrel by calculating an average refined product sales price per barrel and an average refined product cost of sales per barrel, which are calculated by dividing refined product sales or refined product cost of sales by total refining throughput. The average refined product cost of sales per barrel is subtracted from the average refined product sales price per barrel. |
(j) | Consolidated gross refining margin combines gross refining margin for each of our regions adjusted for other amounts not directly attributable to a specific region. Other amounts resulted in an increase of $1 million and $3 million for the three months ended June 30, 2013 and 2012, respectively, and $3 million and $2 million for the six months ended June 30, 2013 and 2012, respectively. Gross refining margin includes the effect of intersegment sales to the retail segment at prices which approximate market. Gross refining margin approximates total refining throughput multiplied by the gross refining margin per barrel. |
(l) | Sources of total refined product sales include refined products manufactured at our refineries and refined products purchased from third parties. Total refined product sales margins include margins on sales of manufactured and purchased refined products. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
Refining By Region | 2013 | 2012 | 2013 | 2012 | |||||||||||
California (Martinez and Los Angeles) (h) | |||||||||||||||
Throughput (Mbpd) (g) | |||||||||||||||
Heavy crude (f) | 183 | 161 | 183 | 149 | |||||||||||
Light crude | 151 | 80 | 102 | 58 | |||||||||||
Other feedstocks | 40 | 27 | 31 | 22 | |||||||||||
Total Throughput | 374 | 268 | 316 | 229 | |||||||||||
Yield (Mbpd) | |||||||||||||||
Gasoline and gasoline blendstocks | 203 | 151 | 167 | 125 | |||||||||||
Jet fuel | 46 | 24 | 35 | 23 | |||||||||||
Diesel fuel | 84 | 63 | 76 | 49 | |||||||||||
Heavy fuel oils, residual products, internally produced fuel and other | 72 | 53 | 65 | 51 | |||||||||||
Total Yield | 405 | 291 | 343 | 248 | |||||||||||
Gross refining margin ($ millions) | $ | 445 | $ | 322 | $ | 716 | $ | 460 | |||||||
Gross refining margin ($/throughput bbl) (i) | $ | 13.05 | $ | 13.20 | $ | 12.51 | $ | 11.04 | |||||||
Manufacturing cost before depreciation and amortization expense ($/throughput bbl) (i) | $ | 6.11 | $ | 5.70 | $ | 6.08 | $ | 6.38 | |||||||
Capital expenditures ($ millions) | $ | 40 | $ | 33 | $ | 76 | $ | 83 | |||||||
Pacific Northwest (Alaska & Washington) | |||||||||||||||
Throughput (Mbpd) (g) | |||||||||||||||
Heavy crude (f) | 5 | 3 | 4 | 3 | |||||||||||
Light crude | 137 | 132 | 127 | 139 | |||||||||||
Other feedstocks | 4 | 8 | 7 | 7 | |||||||||||
Total Throughput | 146 | 143 | 138 | 149 | |||||||||||
Yield (Mbpd) | |||||||||||||||
Gasoline and gasoline blendstocks | 58 | 65 | 55 | 67 | |||||||||||
Jet fuel | 28 | 26 | 28 | 29 | |||||||||||
Diesel fuel | 26 | 24 | 24 | 23 | |||||||||||
Heavy fuel oils, residual products, internally produced fuel and other | 37 | 33 | 34 | 35 | |||||||||||
Total Yield | 149 | 148 | 141 | 154 | |||||||||||
Gross refining margin ($ millions) | $ | 172 | $ | 280 | $ | 327 | $ | 463 | |||||||
Gross refining margin ($/throughput bbl) (i) | $ | 12.92 | $ | 21.64 | $ | 13.11 | $ | 17.12 | |||||||
Manufacturing cost before depreciation and amortization expense ($/throughput bbl) (i) | $ | 4.30 | $ | 4.02 | $ | 4.50 | $ | 3.92 | |||||||
Capital expenditures ($ millions) | $ | 15 | $ | 42 | $ | 37 | $ | 58 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Mid-Continent (North Dakota and Utah) | |||||||||||||||
Throughput (Mbpd) (g) | |||||||||||||||
Light crude | 102 | 108 | 111 | 110 | |||||||||||
Other feedstocks | 2 | 4 | 3 | 5 | |||||||||||
Total Throughput | 104 | 112 | 114 | 115 | |||||||||||
Yield (Mbpd) | |||||||||||||||
Gasoline and gasoline blendstocks | 57 | 65 | 65 | 66 | |||||||||||
Jet fuel | 10 | 9 | 13 | 10 | |||||||||||
Diesel fuel | 27 | 31 | 29 | 33 | |||||||||||
Heavy fuel oils, residual products, internally produced fuel and other | 13 | 11 | 12 | 10 | |||||||||||
Total Yield | 107 | 116 | 119 | 119 | |||||||||||
Gross refining margin ($ millions) | $ | 258 | $ | 393 | $ | 515 | $ | 645 | |||||||
Gross refining margin ($/throughput bbl) (i) | $ | 27.32 | $ | 38.54 | $ | 24.82 | $ | 30.83 | |||||||
Manufacturing cost before depreciation and amortization expense ($/throughput bbl) (i) | $ | 4.31 | $ | 3.95 | $ | 3.89 | $ | 3.71 | |||||||
Capital expenditures ($ millions) | $ | 101 | $ | 40 | $ | 152 | $ | 62 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
Retail Segment | 2013 | 2012 | 2013 | 2012 | |||||||||||
Number of Stations (end of period) (m) | |||||||||||||||
Company-operated | 571 | 561 | 571 | 561 | |||||||||||
Branded jobber/dealer | 1,636 | 787 | 1,636 | 787 | |||||||||||
Total Stations | 2,207 | 1,348 | 2,207 | 1,348 | |||||||||||
Average Stations (during period) (m) | |||||||||||||||
Company-operated | 569 | 464 | 568 | 424 | |||||||||||
Branded jobber/dealer | 1,014 | 789 | 911 | 790 | |||||||||||
Total Average Retail Stations | 1,583 | 1,253 | 1,479 | 1,214 | |||||||||||
Fuel Sales (millions of gallons) (m) | |||||||||||||||
Company-operated | 272 | 207 | 528 | 390 | |||||||||||
Branded jobber/dealer | 384 | 200 | 565 | 383 | |||||||||||
Total Fuel Sales | 656 | 407 | 1,093 | 773 | |||||||||||
Fuel margin ($/gallon) (k) (n) | $ | 0.14 | $ | 0.30 | $ | 0.16 | $ | 0.21 | |||||||
Merchandise Sales ($ millions) | $ | 48 | $ | 46 | $ | 90 | $ | 85 | |||||||
Merchandise Margin ($ millions) | $ | 13 | $ | 12 | $ | 23 | $ | 22 | |||||||
Merchandise Margin % | 27 | % | 26 | % | 26 | % | 26 | % | |||||||
Segment Operating Income ($ millions) | |||||||||||||||
Gross Margins | |||||||||||||||
Fuel (k) (n) | $ | 89 | $ | 121 | $ | 171 | $ | 163 | |||||||
Merchandise and other non-fuel margin | 23 | 20 | 40 | 37 | |||||||||||
Total Gross Margins | 112 | 141 | 211 | 200 | |||||||||||
Expenses | |||||||||||||||
Operating expenses | 74 | 55 | 145 | 105 | |||||||||||
Selling, general and administrative expenses | 3 | 3 | 7 | 6 | |||||||||||
Depreciation and amortization expense | 9 | 9 | 17 | 18 | |||||||||||
Loss on asset disposals and impairments | 1 | 2 | 2 | 4 | |||||||||||
Segment Operating Income (k) | $ | 25 | $ | 72 | $ | 40 | $ | 67 |
(m) | Reflects the transition of retail stations from Thrifty Oil Co. during the third quarter of 2012 and the acquisition of 835 dealer operated retail stations from the Carson Acquisition on June 1, 2013. |
(n) | Management uses fuel margin per gallon to compare profitability to other companies in the industry. There are a variety of ways to calculate fuel margin per gallon; different companies may calculate it in different ways. We calculate fuel margin per gallon by dividing fuel gross margin by fuel sales volumes. Investors and analysts use fuel margin per gallon to help analyze and compare companies in the industry on the basis of operating performance. This financial measure should not be considered an alternative to revenues, segment operating income or any other measure of financial performance presented in accordance with U.S. GAAP. Fuel margin and fuel margin per gallon include the effect of intersegment purchases from the refining segment at prices which approximate market. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2013 | 2013 | ||||||
Reconciliation of Net Earnings to Adjusted EBITDA | |||||||
Net earnings attributable to Tesoro Corporation | $ | 227 | $ | 320 | |||
Net earnings from continuing operations attributable to noncontrolling interest | 11 | 22 | |||||
Net loss from discontinued operations, net of tax | 11 | 12 | |||||
Depreciation and amortization expense | 111 | 216 | |||||
Income tax expense | 138 | 196 | |||||
Interest and financing costs, net | 33 | 63 | |||||
Interest income | — | (1 | ) | ||||
Adjusted EBITDA (o) | $ | 531 | $ | 828 | |||
Reconciliation of Cash Flows used in Operating Activities to Adjusted EBITDA | |||||||
Net cash used in operating activities | $ | (408 | ) | $ | (161 | ) | |
Net cash from discontinued operations | (91 | ) | (192 | ) | |||
Deferred charges | 118 | 277 | |||||
Other changes in assets and liabilities | 771 | 744 | |||||
Income tax expense | 138 | 196 | |||||
Stock-based compensation expense | 4 | (45 | ) | ||||
Interest and financing costs, net | 33 | 63 | |||||
Deferred income taxes | (28 | ) | (42 | ) | |||
Loss on asset disposals and impairments | (8 | ) | (15 | ) | |||
Other | 2 | 3 | |||||
Adjusted EBITDA (o) | $ | 531 | $ | 828 |
(o) | Adjusted EBITDA represents consolidated earnings, including earnings attributable to noncontrolling interest, excluding net loss from discontinued operations, before income taxes, depreciation and amortization expense, net interest and financing costs and interest income. We present Adjusted EBITDA because we believe some investors and analysts use Adjusted EBITDA to help analyze our cash flows including our ability to satisfy principal and interest obligations with respect to our indebtedness and use cash for other purposes, including capital expenditures. Adjusted EBITDA is also used by some investors and analysts to analyze and compare companies on the basis of operating performance and by management. Adjusted EBITDA should not be considered as an alternative to net earnings, earnings before income taxes, cash flows from operating activities or any other measure of financial performance presented in accordance with U.S. GAAP. Adjusted EBITDA may not be comparable to similarly titled measures used by other entities. |
NET EARNINGS ADJUSTED FOR SPECIAL ITEMS | |||||||
(Unaudited) (In millions, except per share amounts) | |||||||
Three Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Net Earnings From Continuing Operations - U.S. GAAP | $ | 249 | $ | 369 | |||
Less: Net earnings from continuing operations attributable to noncontrolling interest | (11 | ) | (6 | ) | |||
Net Earnings from Continuing Operations Attributable to Tesoro Corporation | 238 | 363 | |||||
Special Items, after-tax: | |||||||
Transaction costs (a) | 12 | — | |||||
California pipeline settlement (b) | (34 | ) | — | ||||
Legal matters, net (b) | — | 11 | |||||
Supplemental vacation accrual (p) | — | 6 | |||||
Net Earnings Adjusted for Special Items (q) | $ | 216 | $ | 380 | |||
Diluted Net Earnings Per Share From Continuing Operations Attributable to Tesoro Corporation- U.S. GAAP | $ | 1.72 | $ | 2.58 | |||
Special Items, after-tax: | |||||||
Transaction costs (a) | 0.08 | — | |||||
California pipeline settlement (b) | (0.24 | ) | — | ||||
Legal matters, net (b) | — | 0.08 | |||||
Supplemental vacation accrual (p) | — | 0.04 | |||||
Diluted Net Earnings Per Share Adjusted for Special Items (q) | $ | 1.56 | $ | 2.70 |