Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Statement of Operations

for the Three Months Ended March 31, 2015

(In millions)



	Parent			Guarantor Subsidiaries			Non- Guarantors			Eliminations			Consolidated
Revenues	$	—		$	6,999		$	914		$	(1,450	)	$	6,463
Costs and Expenses:
Cost of sales	—			5,993			661			(1,314		)	5,340
Operating, selling, general and administrative expenses	4			609			123			(136		)	600
Depreciation and amortization expense	—			134			45			—			179
Loss on asset disposals and impairments	—			4			—			—			4
Operating Income (Loss)	(4		)	259			85			—			340
Equity in earnings of subsidiaries	157			16			—			(173		)	—
Interest and financing costs, net	(11		)	(18		)	(26		)	—			(55		)
Other income (expense), net	—			(4		)	3			—			(1		)
Earnings Before Income Taxes	142			253			62			(173		)	284
Income tax expense (benefit) (a)	(3		)	95			4			—			96
Net Earnings	145			158			58			(173		)	188
Less: Net earnings from continuing operations attributable to noncontrolling interest	—			—			43			—			43
Net Earnings Attributable to Tesoro Corporation	$	145		$	158		$	15		$	(173	)	$	145

Comprehensive Income
Total comprehensive income	$	145		$	158		$	58		$	(173	)	$	188
Less: Noncontrolling interest in comprehensive income	—			—			43			—			43
Comprehensive Income Attributable to Tesoro Corporation	$	145		$	158		$	15		$	(173	)	$	145

_________________


(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

for the Three Months Ended March 31, 2014

(In millions)



	Parent			Guarantor Subsidiaries			Non- Guarantors			Eliminations			Consolidated
Revenues	$	—		$	11,564		$	1,610		$	(3,241	)	$	9,933
Costs and Expenses:
Cost of sales	—			10,664			1,476			(3,192		)	8,948
Operating, selling, general and administrative expenses	1			612			58			(49		)	622
Depreciation and amortization expense	—			113			17			—			130
Gain on asset disposals and impairments	—			(1		)	(4		)	—			(5		)
Operating Income (Loss)	(1		)	176			63			—			238
Equity in earnings of subsidiaries (a)	86			14			—			(100		)	—
Interest and financing costs, net	(8		)	(59		)	(18		)	8			(77		)
Other income (expense), net	—			(1		)	8			(8		)	(1		)
Earnings Before Income Taxes	77			130			53			(100		)	160
Income tax expense (benefit) (b)	(1		)	51			6			—			56
Net Earnings from Continuing Operations	78			79			47			(100		)	104
Loss from discontinued operations, net of tax	—			(1		)	—			—			(1		)
Net Earnings	78			78			47			(100		)	103
Less: Net earnings from continuing operations attributable to noncontrolling interest	—			—			25			—			25
Net Earnings Attributable to Tesoro Corporation	$	78		$	78		$	22		$	(100	)	$	78

Comprehensive Income
Total comprehensive income	$	78		$	78		$	47		$	(100	)	$	103
Less: Noncontrolling interest in comprehensive income	—			—			25			—			25
Comprehensive Income Attributable to Tesoro Corporation	$	78		$	78		$	22		$	(100	)	$	78

_________________


(a)	Revised to conform to current period presentation of equity in earnings of subsidiaries that reflects equity in earnings of subsidiaries within the guarantor and non-guarantor columns net of intercompany amounts.


(b)	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 Balance Sheet

Condensed Consolidating Balance Sheet as of March 31, 2015

(In millions)



	Parent		Guarantor Subsidiaries		Non- Guarantors		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	400	$	59	$	—		$	459
Receivables, net of allowance for doubtful accounts	9		884		474		—			1,367
Short-term receivables from affiliates	—		35		—		(35		)	—
Inventories	—		2,398		134		—			2,532
Prepayments and other current assets	51		158		15		(1		)	223
Total Current Assets	60		3,875		682		(36		)	4,581
Net Property, Plant and Equipment	—		5,775		3,405		—			9,180
Investment in Subsidiaries	6,742		351		—		(7,093		)	—
Long-Term Receivables from Affiliates	2,450		—		—		(2,450		)	—
Long-Term Intercompany Note Receivable	—		—		1,376		(1,376		)	—
Other Noncurrent Assets:
Acquired intangibles, net	—		245		966		—			1,211
Other, net	6		1,048		257		—			1,311
Total Other Noncurrent Assets, Net	6		1,293		1,223		—			2,522
Total Assets	$	9,258	$	11,294	$	6,686	$	(10,955	)	$	16,283

LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable	$	—	$	1,639	$	502	$	—		$	2,141
Short-term payables to affiliates	—		—		35		(35		)	—
Other current liabilities	193		535		137		(1		)	864
Total Current Liabilities	193		2,174		674		(36		)	3,005
Long-Term Payables to Affiliates	—		2,412		38		(2,450		)	—
Deferred Income Taxes	1,121		—		—		—			1,121
Other Noncurrent Liabilities	446		431		64		—			941
Debt, net of unamortized issuance costs	1,581		37		2,520		—			4,138
Long-Term Intercompany Note Payable	1,376		—		—		(1,376		)	—
Equity-Tesoro Corporation	4,541		6,240		853		(7,093		)	4,541
Equity-Noncontrolling Interest	—		—		2,537		—			2,537
Total Liabilities and Equity	$	9,258	$	11,294	$	6,686	$	(10,955	)	$	16,283

Condensed Consolidating Balance Sheet as of December 31, 2014

(In millions)



	Parent		Guarantor Subsidiaries		Non- Guarantors		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	943	$	57	$	—		$	1,000
Receivables, net of allowance for doubtful accounts	6		912		517		—			1,435
Short-term receivables from affiliates	—		84		—		(84		)	—
Inventories	—		2,088		351		—			2,439
Prepayments and other current assets	71		115		16		(2		)	200
Total Current Assets	77		4,142		941		(86		)	5,074
Net Property, Plant and Equipment	—		5,666		3,379		—			9,045
Investment in Subsidiaries	6,592		362		—		(6,954		)	—
Long-Term Receivables from Affiliates	2,427		—		—		(2,427		)	—
Long-Term Intercompany Note Receivable	—		—		1,376		(1,376		)	—
Other Noncurrent Assets:
Acquired intangibles, net	—		249		973		—			1,222
Other, net	6		893		251		—			1,150
Total Other Noncurrent Assets, Net	6		1,142		1,224		—			2,372
Total Assets	$	9,102	$	11,312	$	6,920	$	(10,843	)	$	16,491

LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable	$	1	$	1,779	$	690	$	—		$	2,470
Short-term payables to affiliates	—		—		84		(84		)	—
Other current liabilities	148		717		133		(2		)	996
Total Current Liabilities	149		2,496		907		(86		)	3,466
Long-Term Payables to Affiliates	—		2,399		28		(2,427		)	—
Deferred Income Taxes	1,098		—		—		—			1,098
Other Noncurrent Liabilities	447		296		47		—			790
Debt, net of unamortized issuance costs	1,578		39		2,544		—			4,161
Long-Term Intercompany Note Payable	1,376		—		—		(1,376		)	—
Equity-Tesoro Corporation	4,454		6,082		872		(6,954		)	4,454
Equity-Noncontrolling Interest	—		—		2,522		—			2,522
Total Liabilities and Equity	$	9,102	$	11,312	$	6,920	$	(10,843	)	$	16,491

Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows for the three March 31, 2015

(In millions)



	Parent			Guarantor Subsidiaries			Non- Guarantors			Eliminations			Consolidated
Cash Flows From (Used In) Operating Activities
Net cash from (used in) operating activities	$	(10	)	$	(350	)	$	212		$	—		$	(148	)
Cash Flows From (Used In) Investing Activities
Capital expenditures	—			(191		)	(80		)	—			(271		)
Intercompany notes, net	106			—			—			(106		)	—
Other investing activities	—			(2		)	—			—			(2		)
Net cash from (used in) investing activities	106			(193		)	(80		)	(106		)	(273		)
Cash Flows From (Used In) Financing Activities
Borrowings under revolving credit agreements	—			—			99			—			99
Repayments on revolving credit agreements	—			—			(124		)	—			(124		)
Dividend payments	(54		)	—			—			—			(54		)
Net proceeds from issuance of Tesoro Logistics LP common units	—			—			24			—			24
Distributions to noncontrolling interest	—			—			(44		)	—			(44		)
Purchases of common stock	(19		)	—			—			—			(19		)
Taxes paid related to net share settlement of equity awards	(39		)	—			—			—			(39		)
Net intercompany repayments	—			(37		)	(69		)	106			—
Distributions to TLLP unitholders and general partner	10			6			(16		)	—			—
Other financing activities	6			31			—			—			37
Net cash used in financing activities	(96		)	—			(130		)	106			(120		)
Increase (Decrease) in Cash And Cash Equivalents	—			(543		)	2			—			(541		)
Cash and Cash Equivalents, Beginning of Period	—			943			57			—			1,000
Cash and Cash Equivalents, End of Period	$	—		$	400		$	59		$	—		$	459

Condensed Consolidating Statement of Cash Flows for the three March 31, 2014

(In millions)



	Parent			Guarantor Subsidiaries			Non- Guarantors			Eliminations			Consolidated
Cash Flows From (Used In) Operating Activities
Net cash from (used in) operating activities	$	(17	)	$	154		$	(287	)	$	—		$	(150	)
Cash Flows From (Used In) Investing Activities
Capital expenditures	—			(92		)	(27		)	—			(119		)
Intercompany notes, net	168			—			—			(168		)	—
Other investing activities	—			—			10			—			10
Net cash from (used in) investing activities	168			(92		)	(17		)	(168		)	(109		)
Cash Flows From (Used In) Financing Activities
Proceeds from debt offering	300			—			—			—			300
Repayments of debt	(300		)	(1		)	—			—			(301		)
Dividend payments	(33		)	—			—			—			(33		)
Distributions to noncontrolling interest	—			—			(20		)	—			(20		)
Purchases of common stock	(100		)	—			—			—			(100		)
Net intercompany borrowings (repayments)	—			(501		)	333			168			—
Premium paid on notes redemption	(19		)	—			—			—			(19		)
Distributions to TLLP unitholders and general partner	4			5			(9		)	—			—
Other financing activities	(3		)	—			(5		)	—			(8		)
Net cash from (used in) financing activities	(151		)	(497		)	299			168			(181		)
Decrease in Cash And Cash Equivalents	—			(435		)	(5		)	—			(440		)
Cash and Cash Equivalents, Beginning of Period	—			1,161			77			—			1,238
Cash and Cash Equivalents, End of Period	$	—		$	726		$	72		$	—		$	798