XML 28 R31.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Price Risk Management Activities (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Volume of outstanding contracts in fair value hedges | As of September 30, 2013, we had the following outstanding commodity derivative instruments that were entered into to hedge crude oil and refined product inventories and commodity derivative instruments related to the physical purchase of crude oil and refined products at a fixed price. The information presents the notional volume of outstanding contracts by type of instrument and year of maturity (volumes in thousands of barrels).
|  | Notional Contract Volumes by Year of Maturity
Derivative Instrument |  | 2013
Crude oil and refined products: |  |
Futures – long |  | 11,986 |
Futures – short |  | 15,788 |
Physical contracts – long |  | 3,802 |
Volume of outstanding contracts in cash flow hedges | As of September 30, 2013, we had the following outstanding commodity derivative instruments that were entered into to hedge forecasted purchases or sales of crude oil and refined products. The information presents the notional volume of outstanding contracts by type of instrument and year of maturity (volumes in thousands of barrels).
|  | Notional Contract Volumes by Year of Maturity
Derivative Instrument |  | 2013
Crude oil and refined products: |  |
Futures – long |  | 5,876 |
Futures – short |  | 2,759 |
Physical contracts – short |  | 3,117 |
Volume of outstanding contracts in economic hedges | As of September 30, 2013, we had the following outstanding commodity derivative instruments that were used as economic hedges and commodity derivative instruments related to the physical purchase of corn at a fixed price. The information presents the notional volume of outstanding contracts by type of instrument and year of maturity (volumes in thousands of barrels, except those identified as natural gas contracts that are presented in billions of British thermal units, corn contracts that are presented in thousands of bushels, and soybean oil contracts that are presented in thousands of pounds).
|  | Notional Contract Volumes by Year of Maturity
Derivative Instrument |  | 2013 |  | 2014 |  | 2015
Crude oil and refined products: |  |  |  |  |  |
Swaps – long |  | 2,867 |  |  | 45 |  |  | — |
Swaps – short |  | 1,797 |  |  | 90 |  |  | — |
Futures – long |  | 31,357 |  |  | 75 |  |  | — |
Futures – short |  | 42,753 |  |  | — |  |  | — |
Natural gas: |  |  |  |  |  |
Options – long |  | 5,250 |  |  | — |  |  | — |
Corn: |  |  |  |  |  |
Futures – long |  | 19,695 |  |  | 5 |  |  | — |
Futures – short |  | 21,410 |  |  | 1,500 |  |  | 15 |
Physical contracts – long |  | 7,682 |  |  | 1,543 |  |  | — |
Soybean oil: |  |  |  |  |  |
Futures – short |  | 26,520 |  |  | — |  |  | — |
Volume of outstanding contracts in trading activities | As of September 30, 2013, we had the following outstanding commodity and other derivative instruments that were entered into for trading purposes. The information presents the notional volume of outstanding contracts by type of instrument and year of maturity (volumes represent thousands of barrels, except those identified as natural gas contracts that are presented in billions of British thermal units and corn contracts that are presented in thousands of bushels).
|  | Notional Contract Volumes by Year of Maturity
Derivative Instrument |  | 2013 |  | 2014
Crude oil and refined products: |  |  |  |
Swaps – long |  | 11,484 |  |  | 21,135 |
Swaps – short |  | 11,484 |  |  | 21,135 |
Futures – long |  | 121,803 |  |  | 49,298 |
Futures – short |  | 122,138 |  |  | 49,223 |
Options – long |  | 20,950 |  |  | 10,000 |
Options – short |  | 20,250 |  |  | 10,000 |
Natural gas: |  |  |  |
Futures – long |  | 1,150 |  |  | — |
Futures – short |  | 550 |  |  | — |
Options – long |  | 3,000 |  |  | — |
Corn: |  |  |  |
Futures – long |  | 3,200 |  |  | — |
Futures – short |  | 2,900 |  |  | — |
Fair value of derivative instruments | The following tables provide information about the fair values of our derivative instruments as of September 30, 2013 and December 31, 2012 (in millions) and the line items in the balance sheets in which the fair values are reflected. See Note 12 for additional information related to the fair values of our derivative instruments. As indicated in Note 12, we net fair value amounts recognized for multiple similar derivative contracts executed with the same counterparty under master netting arrangements, including cash collateral assets and obligations. The tables below, however, are presented on a gross asset and gross liability basis, which results in the reflection of certain assets in liability accounts and certain liabilities in asset accounts.
| Balance Sheet Location |  | September 30, 2013
|  | Asset Derivatives |  | Liability Derivatives
Derivatives designated as hedging instruments |  |  |  |  |
Commodity contracts: |  |  |  |  |
Futures | Receivables, net |  | $ | 45 |  |  | $ | 45 |
Derivatives not designated as hedging instruments |  |  |  |  |
Commodity contracts: |  |  |  |  |
Futures | Receivables, net |  | $ | 1,300 |  |  | $ | 1,267 |
Swaps | Receivables, net |  | 18 |  |  | 27 |
Swaps | Prepaid expenses and other |  | 5 |  |  | — |
Swaps | Accrued expenses |  | 1 |  |  | 9 |
Options | Receivables, net |  | 2 |  |  | 3 |
Physical purchase contracts | Inventories |  | — |  |  | 17 |
Foreign currency contracts | Accrued expenses |  | — |  |  | 5 |
Total |  |  | $ | 1,326 |  |  | $ | 1,328 |
Total derivatives |  |  | $ | 1,371 |  |  | $ | 1,373 |
| Balance Sheet Location |  | December 31, 2012
|  | Asset Derivatives |  | Liability Derivatives
Derivatives designated as hedging instruments |  |  |  |  |
Commodity contracts: |  |  |  |  |
Futures | Receivables, net |  | $ | 77 |  |  | $ | 64 |
Swaps | Receivables, net |  | 15 |  |  | 13 |
Swaps | Prepaid expenses and other |  | 2 |  |  | 2 |
Total |  |  | $ | 94 |  |  | $ | 79 |
Derivatives not designated as hedging instruments |  |  |  |  |
Commodity contracts: |  |  |  |  |
Futures | Receivables, net |  | $ | 1,066 |  |  | $ | 1,073 |
Swaps | Receivables, net |  | 9 |  |  | 6 |
Swaps | Accrued expenses |  | 32 |  |  | 46 |
Options | Receivables, net |  | 1 |  |  | 4 |
Options | Accrued expenses |  | 1 |  |  | — |
Physical purchase contracts | Inventories |  | 11 |  |  | — |
Foreign currency contracts | Receivables, net |  | 1 |  |  | — |
Foreign currency contracts | Accrued expenses |  | — |  |  | 1 |
Total |  |  | $ | 1,121 |  |  | $ | 1,130 |
Total derivatives |  |  | $ | 1,215 |  |  | $ | 1,209 |
Effect of derivative instruments on income and OCI |
Derivatives in Cash Flow Hedging Relationships |  | Location of Gain (Loss) Recognized in Income on Derivatives |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2013 |  | 2012 |  | 2013 |  | 2012
Commodity contracts: |  |  |  |  |  |  |  |  |  |
Gain (loss) recognized in OCI on derivatives (effective portion) |  |  |  | $ | 3 |  |  | $ | 27 |  |  | $ | (6 | ) |  | $ | 43 |
Gain reclassified from accumulated OCI into income (effective portion) |  | Cost of sales |  | 6 |  |  | 45 |  |  | 1 |  |  | 81 |
Gain (loss) recognized in income on derivatives (ineffective portion) |  | Cost of sales |  | 16 |  |  | (3 | ) |  | 13 |  |  | 23 |
Trading Derivatives |  | Location of Gain (Loss) Recognized in Income on Derivatives |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
2013 |  | 2012 | 2013 |  | 2012
Commodity contracts |  | Cost of sales |  | $ | 11 |  |  | $ | (13 | ) |  | $ | 16 |  |  | $ | (9 | )
RINs fixed-price contracts |  | Cost of sales |  | — |  |  | — |  |  | (20 | ) |  | — |
Total |  |  |  | $ | 11 |  |  | $ | (13 | ) |  | $ | (4 | ) |  | $ | (9 | )
The following tables provide information about the gain or loss recognized in income and other comprehensive income on our derivative instruments and the line items in the financial statements in which such gains and losses are reflected (in millions).
Derivatives in Fair Value Hedging Relationships |  | Location of Gain (Loss) Recognized in Income on Derivatives |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
2013 |  | 2012 | 2013 |  | 2012
Commodity contracts: |  |  |  |  |  |  |  |  |  |
Loss recognized in income on derivatives |  | Cost of sales |  | $ | (17 | ) |  | $ | (127 | ) |  | $ | (38 | ) |  | $ | (307 | )
Gain recognized in income on hedged item |  | Cost of sales |  | 19 |  |  | 101 |  |  | 41 |  |  | 238 |
Gain (loss) recognized in income on derivatives (ineffective portion) |  | Cost of sales |  | 2 |  |  | (26 | ) |  | 3 |  |  | (69 | )
Derivatives Designated as Economic Hedges and Other Derivative Instruments |  | Location of Gain (Loss) Recognized in Income on Derivatives |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
2013 |  | 2012 | 2013 |  | 2012
Commodity contracts |  | Cost of sales |  | $ | (76 | ) |  | $ | (333 | ) |  | $ | 205 |  |  | $ | 90 |
Foreign currency contracts |  | Cost of sales |  | (22 | ) |  | (21 | ) |  | 14 |  |  | (43 | )
Total |  |  |  | $ | (98 | ) |  | $ | (354 | ) |  | $ | 219 |  |  | $ | 47 |

X
- Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5618551-113959 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624163-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Volume Of Outstanding Contract Cash Flow Hedges Table Text Block. + References No definition available. + Details
Name: | vlo_VolumeOfOutstandingContractCashFlowHedgesTableTextBlock
Namespace Prefix: | vlo_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Volume Of Outstanding Contracts Economic Hedges Table Text Block + References No definition available. + Details
Name: | vlo_VolumeOfOutstandingContractsEconomicHedgesTableTextBlock
Namespace Prefix: | vlo_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Volume Of Outstanding Contracts Fair Value Hedges Table Text Block. + References No definition available. + Details
Name: | vlo_VolumeOfOutstandingContractsFairValueHedgesTableTextBlock
Namespace Prefix: | vlo_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Volume Of Outstanding Contracts Trading Activities Table Text Block + References No definition available. + Details
Name: | vlo_VolumeOfOutstandingContractsTradingActivitiesTableTextBlock
Namespace Prefix: | vlo_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration