(b) On June 1, 2010, Valero sold the assets of its shutdown refinery in Delaware City, Delaware, and associated terminal and pipeline assets to PBF Energy Partners LP for $220 million, resulting in a gain on the sale of $92 million ($58 million after taxes). The results of operations, which include the gain on the sale, of the shutdown refinery for the three and six months ended June 30, 2010 are reflected in discontinued operations. In addition, the refining segment and Northeast region operating highlights for the three and six months ended June 30, 2010 exclude the Delaware City Refinery.
(c) Valero acquired three ethanol plants in the first quarter of 2010. The Statement of Income Data includes the results of operations of those plants commencing on their respective acquisition dates. Two plants were acquired from ASA Ethanol Holdings, LLC and the third plant was acquired from Renew Energy LLC. Ethanol production volumes reflected herein are based on total production during each period divided by actual calendar days per period.
(d) Credit card transaction processing fees incurred by Valero’s Retail business segment of $24 million and $45 million for the three and six months ended June 30, 2010, respectively, were reclassified from Retail operating expenses to cost of sales to conform to the current period classification. In addition, the Retail-U.S. and Retail-Canada operating highlights for the three and six months ended June 30, 2010 have been restated to reflect this reclassification.
(e) Cost of sales for the six months ended June 30, 2011 includes a loss of $542 million ($352 million after tax) on derivative contracts related to forward sales of refined products. 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 $1.35 reduction in refining throughput margin per barrel for the six months ended June 30, 2011, and is allocated to refining operating income by region, excluding Northeast, based on relative throughput volumes for each region as follows: Gulf Coast- $372 million, or $1.51 per barrel; Mid-Continent- $122 million, or $1.68 per barrel; and West Coast- $48 million, or $1.11 per barrel.(f) General and administrative expenses for the six months ended June 30, 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.
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