Valero Energy Corp., balance sheet: debt

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Current portion of debt and finance lease obligations	1,406)	1,109)	1,264)	723)	494)
Debt and finance lease obligations, less current portion	10,118)	10,526)	12,606)	13,954)	9,178)
Total debt and finance lease obligations, including current portion (carrying amount)	11,524)	11,635)	13,870)	14,677)	9,672)

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Debt item	Description	The company
Total debt and finance lease obligations, including current portion (carrying amount)	Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations.	Valero Energy Corp. total debt decreased from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023
Selected Financial Data (US$ in millions)
Debt, excluding finance lease obligations	9,109)
Finance lease obligations	2,306)
Total debt and finance lease obligations, including current portion (fair value)	11,415)
Financial Ratio
Debt, fair value to carrying amount ratio	0.99

Weighted-average interest rate on debt and finance lease obligations: 4.80%

Interest rate	Debt amount¹	Interest rate × Debt amount
1.20%	167)	2)
2.85%	251)	7)
3.65%	189)	7)
3.40%	426)	14)
2.15%	564)	12)
4.35%	591)	26)
4.00%	439)	18)
8.75%	200)	18)
2.80%	462)	13)
7.50%	729)	55)
6.63%	1,380)	91)
6.75%	24)	2)
10.50%	113)	12)
4.90%	621)	30)
3.65%	829)	30)
4.00%	508)	20)
7.45%	70)	5)
4.38%	146)	6)
4.50%	456)	21)
7.65%	100)	8)
4.80%	2,306)	111)
Total	10,571)	507)
4.80%

¹ US$ in millions

² Weighted-average interest rate = 100 × 507 ÷ 10,571 = 4.80%

Valero Energy Corp., interest costs incurred

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Interest and debt expense, net of capitalized interest	592)	562)	603)	563)	454)
Capitalized interest	19)	57)	48)	75)	90)
Interest and debt expense	611)	619)	651)	638)	544)

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Debt item	Description	The company
Interest and debt expense, net of capitalized interest	Amount of the cost of borrowed funds accounted for as interest expense for debt.	Valero Energy Corp. interest and debt expense, net of capitalized interest decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.
Capitalized interest	Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred.	Valero Energy Corp. capitalized interest increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
Interest and debt expense	Total interest costs incurred during the period and either capitalized or charged against earnings.	Valero Energy Corp. interest and debt expense decreased from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Valero Energy Corporation stockholders	8,835)	11,528)	930)	(1,421)	2,422)
Add: Net income attributable to noncontrolling interest	314)	351)	358)	314)	362)
Add: Income tax expense	2,619)	3,428)	255)	(903)	702)
Add: Interest and debt expense, net of capitalized interest	592)	562)	603)	563)	454)
Earnings before interest and tax (EBIT)	12,360)	15,869)	2,146)	(1,447)	3,940)

Interest and debt expense	611)	619)	651)	638)	544)
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)¹	20.88	28.24	3.56	-2.57	8.68
Adjusted interest coverage ratio (with capitalized interest)²	20.23	25.64	3.30	-2.27	7.24

2023 Calculations

¹ Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest and debt expense, net of capitalized interest
= 12,360 ÷ 592 = 20.88

² Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest and debt expense
= 12,360 ÷ 611 = 20.23

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Solvency ratio	Description	The company
Adjusted interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest).	Valero Energy Corp. adjusted interest coverage ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Valero Energy Corp. (NYSE:VLO)

Analysis of Debt