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Debt and Capital Lease Obligations | 12 Months Ended
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Dec. 31, 2015
Debt and Capital Lease Obligations [Abstract] |
DEBT AND CAPITAL LEASE OBLIGATIONS |
10. | DEBT AND CAPITAL LEASE OBLIGATIONS
Debt, at stated values, and capital lease obligations consisted of the following (in millions):
| Final Maturity |  | December 31,
|  | 2015 |  | 2014
Bank credit facilities | Various |  | $ | 175 |  |  | $ | — |
Senior Notes: |  |  |  |  |
3.65% | 2025 |  | 600 |  |  | — |
4.5% | 2015 |  | — |  |  | 400 |
4.9% | 2045 |  | 650 |  |  | — |
6.125% | 2017 |  | 750 |  |  | 750 |
6.125% | 2020 |  | 850 |  |  | 850 |
6.625% | 2037 |  | 1,500 |  |  | 1,500 |
6.75% | 2037 |  | 24 |  |  | 24 |
7.2% | 2017 |  | 200 |  |  | 200 |
7.45% | 2097 |  | 100 |  |  | 100 |
7.5% | 2032 |  | 750 |  |  | 750 |
8.75% | 2030 |  | 200 |  |  | 200 |
9.375% | 2019 |  | 750 |  |  | 750 |
10.5% | 2039 |  | 250 |  |  | 250 |
Debentures: |  |  |  |  |
7.65% | 2026 |  | 100 |  |  | 100 |
8.75% | 2015 |  | — |  |  | 75 |
Gulf Opportunity Zone Revenue Bonds, Series 2010, 4.0% | 2040 |  | 300 |  |  | 300 |
Accounts receivable sales facility | 2016 |  | 100 |  |  | 100 |
Other debt | 2016 |  | 17 |  |  | 26 |
Net unamortized discount, including fair value adjustments |  |  | (24 | ) |  | (21 | )
Total debt |  |  | 7,292 |  |  | 6,354 |
Capital lease obligations, including unamortized fair value adjustments |  | 85 |  |  | 32 |
Total debt and capital lease obligations |  |  | 7,377 |  |  | 6,386 |
Less current portion |  |  | (127 | ) |  | (606 | )
Debt and capital lease obligations, less current portion |  |  | $ | 7,250 |  |  | $ | 5,780 |
Credit Facilities Revolver In November 2015, we amended and restated our $3 billion revolving credit facility (the Revolver) with a group of financial institution lenders to, among other things, extend the maturity date from November 2018 to November 2020. We have the option to increase the aggregate commitments under the Revolver to $4.5 billion and we may request two additional one-year extensions, subject to certain conditions. The Revolver also provides for the issuance of letters of credit of up to $2.0 billion. Outstanding borrowings under the Revolver bear interest, at our option, at either (a) the adjusted LIBO rate (as defined in the Revolver) for the applicable interest period in effect from time to time plus the applicable margin or (b) the alternate base rate (as defined in the Revolver) plus the applicable margin. The Revolver also requires payments for customary fees, including facility fees, letter of credit participation fees, and administrative agent fees. The interest rate and facility fees under the Revolver are subject to adjustment based upon the credit ratings assigned to our senior unsecured debt. During the years ended December 31, 2015, 2014, and 2013, we had no borrowings or repayments under the Revolver. VLP Revolver In November 2015, VLP’s senior unsecured revolving credit facility agreement (the VLP Revolver) with a group of lenders was amended and restated to, among other things, extend the maturity date from December 2018 to November 2020 and increase the total commitment from $300 million to $750 million. The VLP Revolver is available only to the operations of VLP, and creditors of VLP do not have recourse against Valero. VLP has the option to increase the aggregate commitments under the VLP Revolver to $1.0 billion and we may request two additional one-year extensions, subject to certain conditions. VLP may terminate the VLP Revolver with notice to the lenders of at least three business days prior to termination. The VLP Revolver includes a letter of credit sub-facility of up to $100 million. VLP’s obligations under the VLP Revolver are jointly and severally guaranteed by all of VLP’s directly owned material subsidiaries. As of December 31, 2015, the only guarantor under the VLP Revolver was Valero Partners Operating Co. LLC. Outstanding borrowings under the VLP Revolver bear interest, at VLP’s option, at either (a) the adjusted LIBO rate (as defined in the VLP Revolver) for the applicable interest period in effect from time to time plus the applicable margin or (b) the alternate base rate (as defined in the VLP Revolver) plus the applicable margin. As of December 31, 2015, the variable rate was 1.5 percent. The VLP Revolver requires payments for customary fees, including commitment fees, letter of credit participation fees, and administrative agent fees. The VLP Revolver contains certain restrictive covenants, including a ratio of total debt to EBITDA (as defined in the VLP Revolver) for the prior four fiscal quarters of not greater than 5.0 to 1.0 as of the last day of each fiscal quarter, and limitations on VLP’s ability to pay distributions to its unitholders. During the year ended December 31, 2015, VLP borrowed $200 million under the VLP Revolver in connection with VLP’s acquisition of the Houston and St. Charles Terminal Services Business and repaid $25 million on the VLP Revolver. During the years ended December 31, 2014 and 2013, VLP had no borrowings or repayments under the VLP Revolver. As of December 31, 2015, $175 million was outstanding under the VLP Revolver. Canadian Revolver One of our Canadian subsidiaries has a C$50 million committed revolving credit facility (the Canadian Revolver) under which it may borrow and obtain letters of credit that has a maturity date of November 2016. During the years ended December 31, 2015, 2014, and 2013, we had no borrowings or repayments under the Canadian Revolver. Accounts Receivable Sales Facility We have an accounts receivable sales facility with a group of third-party entities and financial institutions to sell eligible trade receivables on a revolving basis. In July 2015, we amended our agreement to decrease the facility from $1.5 billion to $1.4 billion and extended the maturity date to July 2016. Proceeds from the sale of receivables under this facility are reflected as debt. Under this program, one of our marketing subsidiaries (Valero Marketing) sells eligible receivables, without recourse, to another of our subsidiaries (Valero Capital), whereupon the receivables are no longer owned by Valero Marketing. Valero Capital, in turn, sells an undivided percentage ownership interest in the eligible receivables, without recourse, to the third-party entities and financial institutions. To the extent that Valero Capital retains an ownership interest in the receivables it has purchased from Valero Marketing, such interest is included in our financial statements solely as a result of the consolidation of the financial statements of Valero Capital with those of Valero Energy Corporation; the receivables are not available to satisfy the claims of the creditors of Valero Marketing or Valero Energy Corporation. As of December 31, 2015 and 2014, $1.3 billion and $1.7 billion, respectively, of our accounts receivable composed the designated pool of accounts receivable included in the program. All amounts outstanding under the accounts receivable sales facility are reflected as debt on our balance sheets and proceeds and repayments are reflected as cash flows from financing activities on the statements of cash flows. During the years ended December 31, 2015, 2014, and 2013, we had no proceeds from or repayments under the accounts receivable sales facility. Summary of Credit Facilities We had outstanding borrowings and letters of credit issued under our credit facilities as follows (in millions):
|  |  |  |  |  | December 31, 2015
|  | Facility Amount |  | Maturity Date |  | Borrowings |  | Letters of Credit |  | Available
Committed facilities: |  |  |  |  |  |  |  |  |  |
Revolver |  | $ | 3,000 |  |  | November 2020 |  | $ | — |  |  | $ | 57 |  |  | $ | 2,943 |
VLP Revolver |  | $ | 750 |  |  | November 2020 |  | $ | 175 |  |  | $ | — |  |  | $ | 575 |
Canadian Revolver |  | C$ | 50 |  |  | November 2016 |  | C$ | — |  |  | C$ | 10 |  |  | C$ | 40 |
Accounts receivable sales facility |  | $ | 1,400 |  |  | July 2016 |  | $ | 100 |  |  | $ | — |  |  | $ | 992 |
Letter of credit facilities |  | $ | 275 |  |  | June 2016 and November 2016 |  | $ | — |  |  | $ | 9 |  |  | $ | 266 |
Uncommitted facilities: |  |  |  |  |  |  |  |  |  |
Letter of credit facilities |  | $ | 775 |  |  | N/A |  | $ | — |  |  | $ | 87 |  |  | $ | 688 |
In June 2015, one of our committed letter of credit facilities with a borrowing capacity of $300 million expired and was not renewed. The remaining committed letter of credit facility was amended in July 2015 to extend the maturity date to June 2016 and reduce the borrowing capacity from $250 million to $125 million. In November 2015, we entered into a new committed letter of credit facility with a borrowing capacity of $150 million that matures in November 2016. Also in November 2015, our Canadian Revolver was amended to extend the maturity date to November 2016. We also have various other uncommitted short-term bank credit facilities for which we are charged letter of credit issuance fees. These uncommitted credit facilities have no commitment fees or compensating balance requirements. Bank Debt On March 20, 2013, in anticipation of the separation of our retail business as described in Note 3, CST entered into an $800 million senior secured credit agreement. This credit agreement was retained by CST after the separation from us. Therefore, we have no rights to obtain credit under nor any liabilities in connection with this credit agreement. On April 16, 2013, also in anticipation of the separation of our retail business, we borrowed $550 million under a short-term debt agreement with a third-party financial institution. On May 1, 2013, CST issued $550 million of its senior unsecured bonds to us, and we exchanged those bonds with the third-party financial institution in satisfaction of our short-term debt. On October 24, 2013, we borrowed $525 million under a short-term debt agreement with a third-party financial institution in anticipation of liquidating our retained interest in CST. This liquidation was completed on November 14, 2013 by transferring all remaining shares of CST common stock owned by us to the financial institution in exchange for $467 million of our short-term debt, and we paid the remaining $58 million of short-term debt in cash. After paying $19 million of fees, we recognized a $325 million nontaxable gain. Non-Bank Debt During the year ended December 31, 2015, we issued $600 million of 3.65 percent senior notes due March 15, 2025 and $650 million of 4.9 percent senior notes due March 15, 2045. Proceeds from these debt issuances totaled $1.246 billion. We also incurred $12 million of debt issuance costs. In addition, we made scheduled debt repayments of $400 million related to our 4.5 percent senior notes and $75 million related to our 8.75 percent debentures. During the year ended December 31, 2014, we made a scheduled debt repayment of $200 million related to our 4.75 percent senior notes. During the year ended December 31, 2013, we made scheduled debt repayments of $180 million related to our 6.7 percent senior notes and $300 million related to our 4.75 percent senior notes. Capitalized Interest For the years ended December 31, 2015, 2014, and 2013, capitalized interest was $71 million, $70 million, and $118 million, respectively. Other Disclosures Our credit facilities and other debt arrangements contain various customary restrictive covenants, including cross-default and cross-acceleration clauses. Principal payments on our debt obligations and future minimum rentals on capital lease obligations as of December 31, 2015 were as follows (in millions):
| Debt |  | Capital Lease Obligations
2016 | $ | 117 |  |  | $ | 17 |
2017 | 950 |  |  | 16 |
2018 | — |  |  | 16 |
2019 | 750 |  |  | 16 |
2020 | 1,025 |  |  | 14 |
Thereafter | 4,474 |  |  | 43 |
Net unamortized discount and fair value adjustments | (24 | ) |  | — |
Less interest expense | — |  |  | (37 | )
Total | $ | 7,292 |  |  | $ | 85 |

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- Definition The entire disclosure for debt and capital lease obligations can be reported. Information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. Also includes descriptions and amounts of capital leasing arrangements that consist of direct financing, sales type and leveraged leases. Disclosure may include the effect on the balance sheet and the income statement resulting from a change in lease classification for leases that at inception would have been classified differently had guidance been in effect at the inception of the original lease. + References No definition available. + Details
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