XML 55 R43.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2013
Income Tax Disclosure [Abstract] |
Income from continuing operations before income tax expense from U.S. and international operations | Income from continuing operations before income tax expense from U.S. and international operations was as follows (in millions):
| Year Ended December 31,
| 2013 |  | 2012 |  | 2011
U.S. operations | $ | 3,531 |  |  | $ | 4,015 |  |  | $ | 3,190 |
International operations | 451 |  |  | (309 | ) |  | 132 |
Income from continuing operations before income tax expense | $ | 3,982 |  |  | $ | 3,706 |  |  | $ | 3,322 |
Reconciliation of income tax expense related to income from continuing operations before income tax expense | The following is a reconciliation of income tax expense computed by applying the U.S. federal statutory income tax rate (35 percent for all years presented) to actual income tax expense related to continuing operations (in millions):
| Year Ended December 31,
| 2013 |  | 2012 |  | 2011
Federal income tax expense at the U.S. federal statutory rate | $ | 1,394 |  |  | $ | 1,297 |  |  | $ | 1,163 |
U.S. state income tax expense, net of U.S. federal income tax effect | 62 |  |  | 64 |  |  | 29 |
U.S. manufacturing deduction | (36 | ) |  | (33 | ) |  | (28 | )
International operations | (71 | ) |  | 266 |  |  | 46 |
Permanent differences | (104 | ) |  | 20 |  |  | 8 |
Change in tax law | (32 | ) |  | — |  |  | — |
Other, net | 41 |  |  | 12 |  |  | 8 |
Income tax expense | $ | 1,254 |  |  | $ | 1,626 |  |  | $ | 1,226 |
Components of income tax expense related to continuing operations | Components of income tax expense related to continuing operations were as follows (in millions):
| Year Ended December 31,
| 2013 |  | 2012 |  | 2011
Current: |  |  |  |  |
U.S. federal | $ | 635 |  |  | $ | 515 |  |  | $ | 562 |
U.S. state | 36 |  |  | 22 |  |  | 13 |
International | 82 |  |  | 126 |  |  | 186 |
Total current | 753 |  |  | 663 |  |  | 761 |
Deferred: |  |  |  |  |
U.S. federal | 459 |  |  | 854 |  |  | 527 |
U.S. state | 59 |  |  | 77 |  |  | 32 |
International | (17 | ) |  | 32 |  |  | (94 | )
Total deferred | 501 |  |  | 963 |  |  | 465 |
Income tax expense | $ | 1,254 |  |  | $ | 1,626 |  |  | $ | 1,226 |
Deferred income tax assets and liabilities | The tax effects of significant temporary differences representing deferred income tax assets and liabilities were as follows (in millions):
| December 31,
| 2013 |  | 2012
Deferred income tax assets: |  |  |
Tax credit carryforwards | $ | 48 |  |  | $ | 61 |
Net operating losses (NOLs) | 338 |  |  | 247 |
Inventories | 264 |  |  | 258 |
Property, plant, and equipment | 8 |  |  | 78 |
Compensation and employee benefit liabilities | 178 |  |  | 383 |
Environmental liabilities | 92 |  |  | 83 |
Other | 187 |  |  | 157 |
Total deferred income tax assets | 1,115 |  |  | 1,267 |
Less: Valuation allowance | (347 | ) |  | (304 | )
Net deferred income tax assets | 768 |  |  | 963 |
Deferred income tax liabilities: |  |  |
Property, plant, and equipment | 6,536 |  |  | 6,143 |
Deferred turnaround costs | 331 |  |  | 300 |
Inventories | 310 |  |  | 381 |
Investments, primarily in VLP and DGD | 94 |  |  | — |
Other | 81 |  |  | 103 |
Total deferred income tax liabilities | 7,352 |  |  | 6,927 |
Net deferred income tax liabilities | $ | 6,584 |  |  | $ | 5,964 |
Income tax credit and loss carryforwards | We had the following income tax credit and loss carryforwards as of December 31, 2013 (in millions):
| Amount |  | Expiration
U.S. state income tax credits | $ | 71 |  |  | 2014 through 2027
U.S. state NOLs (gross amount) | 5,609 |  |  | 2014 through 2033
International NOLs | 1,289 |  |  | Unlimited
Subsequently recognized tax benefits related to the valuation allowance for deferred income tax assets | Should we ultimately recognize tax benefits related to the valuation allowance for deferred income tax assets as of December 31, 2013, such amounts will be allocated as follows (in millions):
Income tax benefit | $ | 340 |
Additional paid-in capital | 7 |
Total | $ | 347 |
Reconciliation of the change in unrecognized tax benefits, excluding related penalties, interest (net of the U.S. federal and state income tax effects) and the U.S. federal income tax effect of state unrecognized tax benefits | The following is a reconciliation of the change in unrecognized tax benefits, excluding related penalties, interest (net of the U.S. federal and state income tax effects) and the U.S. federal income tax effect of state unrecognized tax benefits (in millions):
| Year Ended December 31,
| 2013 |  | 2012 |  | 2011
Balance as of beginning of year | $ | 341 |  |  | $ | 326 |  |  | $ | 330 |
Additions based on tax positions related to the current year | 64 |  |  | 11 |  |  | 14 |
Additions for tax positions related to prior years | 576 |  |  | 40 |  |  | 55 |
Reductions for tax positions related to prior years | (26 | ) |  | (36 | ) |  | (66 | )
Reductions for tax positions related to the lapse of applicable statute of limitations | (4 | ) |  | — |  |  | (3 | )
Settlements | (1 | ) |  | — |  |  | (4 | )
Balance as of end of year | $ | 950 |  |  | $ | 341 |  |  | $ | 326 |
Reconciliation of unrecognized tax benefits to uncertain tax position liabilities | The following is a reconciliation of unrecognized tax benefits reflected in the table above to our uncertain tax position liabilities as of December 31, 2013 and 2012 that are reflected in Note 10 (in millions):
| December 31,
| 2013 |  | 2012
Unrecognized tax benefits | $ | 950 |  |  | $ | 341 |
Tax refund claim not recognized in our financial statements | (556 | ) |  | — |
Penalties, interest (net of U.S. federal and state income tax effect), and the U.S. federal income tax effect of state unrecognized tax benefits | 49 |  |  | 50 |
Uncertain tax position liabilities | $ | 443 |  |  | $ | 391 |

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

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)(1)(i)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI http://asc.fasb.org/extlink&oid=32707879&loc=d3e36027-109320 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=6907707&loc=SL6600010-109319 + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Valuation Allowance -URI http://asc.fasb.org/extlink&oid=6528051 + Details
Name: | us-gaap_SummaryOfValuationAllowanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation of unrecognized tax benefits to uncertain tax position liabilities. + References No definition available. + Details
Name: | vlo_ReconciliationofUnrecognizedTaxBenefitstoUncertainTaxPositionLiabilitiesTableTextBlock
Namespace Prefix: | vlo_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Summary Of Operating Loss Carry Forward And Tax Credit Carry Forward [Table Text Block] + References No definition available. + Details
Name: | vlo_SummaryOfOperatingLossCarryForwardAndTaxCreditCarryForwardTableTextBlock
Namespace Prefix: | vlo_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration