(e) Cost of sales for the three months ended March 31, 2011 includes a loss of $542 million ($352 million after tax) on derivative contracts related to the forward sales of refined product. These contracts were closed and realized during the first quarter of 2011. The $542 million loss is reflected in refining segment operating income, resulting in a $2.86 reduction in refining throughput margin per barrel for the three months ended March 31, 2011, and is allocated to refining operating income (loss) by region, excluding Northeast, based on relative throughput volumes for each region as follows: Gulf Coast- $372 million, or $3.18 per barrel; Mid-Continent- $122 million, or $3.36 per barrel; and West Coast- $48 million, or $2.71 per barrel.(f) General and administrative expenses for the three months ended March 31, 2010 includes the recognition of a favorable settlement with one of Valero's third-party insurers for $40 million. The settlement relates to Valero's claim of insurance coverage in connection with losses incurred in prior periods.
Valero Energy Reports First Quarter 2011 Results
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