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Segment Information
 12 Months Ended
Dec. 31, 2012
Segment Reporting [Abstract]  
SEGMENT INFORMATION
18.
SEGMENT INFORMATION
We have three reportable segments, refining, retail, and ethanol. Our refining segment includes refining operations, wholesale marketing, product supply and distribution, and transportation operations in the U.S., Canada, the U.K., Aruba, and Ireland. The retail segment includes company-operated convenience stores in the U.S. and Canada; filling stations, truckstop facilities, cardlock facilities, and home heating oil operations in Canada; and credit card operations in the U.S. Our ethanol segment includes primarily sales of internally produced ethanol and distillers grains. Operations that are not included in any of the three reportable segments are included in the corporate category.
The reportable segments are strategic business units that offer different products and services. They are managed separately as each business requires unique technology and marketing strategies. Performance is evaluated based on operating income. Intersegment sales are generally derived from transactions made at prevailing market rates.
The following table reflects activity related to continuing operations (in millions):
 
Refining
 
Retail
 
Ethanol
 
Corporate
 
Total
Year ended December 31, 2012:
 
 
 
 
 
 
 
 
 
Operating revenues from external
customers
$
122,925

 
$
12,008

 
$
4,317

 
$
—

 
$
139,250

Intersegment revenues
8,946

 
—

 
115

 
—

 
9,061

Depreciation and amortization expense
1,370

 
119

 
42

 
43

 
1,574

Operating income (loss)
4,450

 
348

 
(47
)
 
(741
)
 
4,010

Total expenditures for long-lived assets
3,147

 
164

 
36

 
66

 
3,413

 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2011:
 
 
 
 
 
 
 
 
 
Operating revenues from external
customers
109,138

 
11,699

 
5,150

 
—

 
125,987

Intersegment revenues
8,665

 
—

 
145

 
—

 
8,810

Depreciation and amortization expense
1,338

 
115

 
39

 
42

 
1,534

Operating income (loss)
3,516

 
381

 
396

 
(613
)
 
3,680

Total expenditures for long-lived assets
2,708

 
134

 
32

 
113

 
2,987

 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2010:
 
 
 
 
 
 
 
 
 
Operating revenues from external
customers
69,854

 
9,339

 
3,040

 
—

 
82,233

Intersegment revenues
6,416

 
—

 
245

 
—

 
6,661

Depreciation and amortization expense
1,210

 
108

 
36

 
51

 
1,405

Operating income (loss)
1,903

 
346

 
209

 
(582
)
 
1,876

Total expenditures for long-lived assets
2,084

 
102

 
—

 
48

 
2,234


Our principal products include conventional and CARB gasolines, RBOB (reformulated gasoline blendstock for oxygenate blending), ultra-low-sulfur diesel, and gasoline blendstocks. We also produce a substantial slate of middle distillates, jet fuel, and petrochemicals, in addition to lube oils and asphalt. Other product revenues include such products as gas oils, No. 6 fuel oil, and petroleum coke. Operating revenues from external customers for our principal products were as follows (in millions):
 
Year Ended December 31,
 
2012
 
2011
 
2010
Refining:
 
 
 
 
 
Gasolines and blendstocks
$
55,647

 
$
49,019

 
$
33,491

Distillates
51,504

 
43,713

 
26,402

Petrochemicals
3,908

 
4,253

 
3,161

Lubes and asphalts
2,033

 
1,948

 
1,315

Other product revenues
9,833

 
10,205

 
5,485

Total refining operating revenues
122,925

 
109,138

 
69,854

Retail:
 
 
 
 
 
Fuel sales (gasoline and diesel)
10,045

 
9,730

 
7,498

Merchandise sales and other
1,649

 
1,635

 
1,581

Home heating oil
314

 
334

 
260

Total retail operating revenues
12,008

 
11,699

 
9,339

Ethanol:
 
 
 
 
 
Ethanol
3,545

 
4,436

 
2,647

Distillers grains
772

 
714

 
393

Total ethanol operating revenues
4,317

 
5,150

 
3,040

Consolidated operating revenues
$
139,250

 
$
125,987

 
$
82,233


Operating revenues by geographic area are shown in the table below (in millions). The geographic area is based on location of customer and no customer accounted for more than 10 percent of our consolidated operating revenues.
 
Year Ended December 31,
 
2012
 
2011
 
2010
U.S.
$
100,733

 
$
98,806

 
$
67,392

Canada
10,376

 
10,110

 
6,945

U.K.
10,779

 
4,297

 
149

Other countries
17,362

 
12,774

 
7,747

Consolidated operating revenues
$
139,250

 
$
125,987

 
$
82,233


Long-lived assets include property, plant and equipment, intangible assets, and certain long-lived assets included in “deferred charges and other assets, net.” Geographic information by country for long-lived assets consisted of the following (in millions):
 
December 31,
 
2012
 
2011
U.S.
$
23,760

 
$
22,317

Canada
2,639

 
2,372

U.K.
1,110

 
848

Aruba
41

 
958

Ireland
37

 
—

Total long-lived assets
$
27,587

 
$
26,495

Total assets by reportable segment were as follows (in millions):
 
December 31,
 
2012
 
2011
Refining
$
39,490

 
$
38,164

Retail
2,043

 
1,999

Ethanol
929

 
943

Corporate
2,015

 
1,677

Total assets
$
44,477

 
$
42,783

Possible Divestiture of Retail Business
In July 2012, we announced our intention to pursue a plan to separate our retail business from Valero into a new company named CST Brands, Inc. (CST). The separation is planned by way of a pro rata distribution of 80 percent of the outstanding shares of CST common stock to Valero stockholders. The distribution is expected to take place in the second quarter of 2013, assuming a favorable private letter ruling from the IRS and clearance of all comments from the Securities and Exchange Commission (SEC) relating to CST’s registration statement on Form 10. When the distribution occurs, we expect to receive approximately $1.1 billion of cash and incur a tax liability of approximately $230 million. We also expect to liquidate the remaining 20 percent of CST outstanding shares within 18 months of the distribution. Details of the separation and distribution are provided in filings with the SEC by CST.