VALERO ENERGY CORP/TXVLO
VALERO ENERGY CORP/TX Segments Disclosure
17. REVENUES AND SEGMENT INFORMATION
Revenue from Contracts with Customers
Disaggregation of Revenue
Revenue is presented in the table below under “Segment Information” disaggregated by product because this is the level of disaggregation that management has determined to be beneficial to users of our financial statements.
Contract Balances
Contract balances were as follows (in millions):
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
Receivables from contracts with customers, included in receivables, net (see Note 3) | $ | 6,233 | $ | 5,812 | |||||||
Contract liabilities, included in accrued expenses (see Note 8) | 60 | 82 | |||||||||
During the years ended December 31, 2025, 2024, and 2023, we recognized as revenue $81 million, $39 million, and $127 million, respectively, that was included in contract liabilities as of December 31, 2024, 2023, and 2022, respectively.
Remaining Performance Obligations
We have spot and term contracts with customers, the majority of which are spot contracts with no remaining performance obligations. We do not disclose remaining performance obligations for contracts that have terms of one year or less. The transaction price for our remaining term contracts includes a fixed component and variable consideration (i.e., a commodity price), both of which are allocated entirely to a wholly unsatisfied promise to transfer a distinct good that forms part of a single performance obligation. The fixed component is not material and the variable consideration is highly uncertain. Therefore, as of December 31, 2025, we have not disclosed the aggregate amount of the transaction price allocated to our remaining performance obligations.
Segment Information
We have three reportable segments—Refining, Renewable Diesel, and Ethanol. Each segment is a strategic business unit that offers different products and services by employing unique technologies and marketing strategies and whose operations and operating performance are managed and evaluated separately. Operating performance is measured based on the operating income (loss) generated by the segment, which includes revenues and expenses that are directly attributable to the management of the respective segment. Intersegment sales are generally derived from transactions made at prevailing market rates. The following is a description of each segment’s business operations.
•The Refining segment includes the operations of our petroleum refineries, the associated activities to market our refined petroleum products, and the logistics assets that support our refining operations. The principal products manufactured by our refineries and sold by this segment include gasolines and blendstocks, distillates, and other products.
•The Renewable Diesel segment includes the operations of DGD, a consolidated joint venture as discussed in Note 12, and the associated activities to market low-carbon fuels. The principal products manufactured by DGD and sold by this segment are renewable diesel, renewable naphtha, and neat SAF. This segment sells some renewable diesel and neat SAF to the Refining segment for blending into petroleum-based diesel and conventional jet fuel, respectively, which is then sold to that segment’s customers as finished product.
•The Ethanol segment includes the operations of our ethanol plants and the associated activities to market our ethanol and co-products. The principal products manufactured by our ethanol plants are ethanol and distillers grains. This segment sells some ethanol to the Refining segment for blending into gasoline, which is sold to that segment’s customers as a finished gasoline product.
Operations that are not included in any of the reportable segments are included in the corporate category.
Our chief operating decision maker (CODM) is our Chairman of the Board, Chief Executive Officer and President. Our CODM uses operating income (loss) by segment to allocate resources (including employees, property, and financial or capital resources) for each segment primarily during the annual budget process. On a monthly basis, our CODM considers budget-to-actual variances for operating income (loss) by segment when evaluating the operating performance of each segment.
The following tables reflect information about our reportable segments and includes the reconciliation to our consolidated income before income tax expense (in millions):
| Refining | Renewable Diesel | Ethanol | Total | ||||||||||||||||||||
| Year ended December 31, 2025 | |||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Revenues from external customers | $ | 116,158 | $ | 2,508 | $ | 4,021 | $ | 122,687 | |||||||||||||||
| Intersegment revenues | 8 | 2,089 | 956 | 3,053 | |||||||||||||||||||
| 116,166 | 4,597 | 4,977 | 125,740 | ||||||||||||||||||||
Reconciliation of revenues by segment to consolidated revenues | |||||||||||||||||||||||
| Elimination of intersegment revenues | (3,053) | ||||||||||||||||||||||
| Total consolidated revenues | $ | 122,687 | |||||||||||||||||||||
| Less: | |||||||||||||||||||||||
| Cost of sales: | |||||||||||||||||||||||
| Cost of materials and other (a) | 96,080 | 4,178 | 3,913 | ||||||||||||||||||||
| Taxes other than income taxes | 6,720 | — | — | ||||||||||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) | 5,426 | 308 | 611 | ||||||||||||||||||||
| Depreciation and amortization expense | 2,754 | 267 | 79 | ||||||||||||||||||||
| Total cost of sales | 110,980 | 4,753 | 4,603 | ||||||||||||||||||||
| Asset impairment loss | 1,131 | — | — | ||||||||||||||||||||
| Other operating expenses | 15 | — | — | ||||||||||||||||||||
Operating income (loss) by segment | $ | 4,040 | $ | (156) | $ | 374 | $ | 4,258 | |||||||||||||||
Reconciliation of operating income (loss) by segment to income before income tax expense | |||||||||||||||||||||||
| Elimination of intersegment losses | 28 | ||||||||||||||||||||||
| Unallocated amounts: | |||||||||||||||||||||||
| Other corporate expenses (b) | (1,105) | ||||||||||||||||||||||
| Other income, net | 380 | ||||||||||||||||||||||
Interest and debt expense, net of capitalized interest | (556) | ||||||||||||||||||||||
| Income before income tax expense | $ | 3,005 | |||||||||||||||||||||
| Other segment disclosures | |||||||||||||||||||||||
| Segment assets | $ | 44,498 | $ | 5,317 | $ | 1,501 | $ | 51,316 | |||||||||||||||
| Expenditures for long-lived assets (c) | 1,606 | 170 | 39 | 1,815 | |||||||||||||||||||
________________________
See notes on page 129.
| Refining | Renewable Diesel | Ethanol | Total | ||||||||||||||||||||
| Year ended December 31, 2024 | |||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Revenues from external customers | $ | 123,853 | $ | 2,410 | $ | 3,618 | $ | 129,881 | |||||||||||||||
| Intersegment revenues | 10 | 2,656 | 868 | 3,534 | |||||||||||||||||||
| 123,863 | 5,066 | 4,486 | 133,415 | ||||||||||||||||||||
Reconciliation of revenues by segment to consolidated revenues | |||||||||||||||||||||||
| Elimination of intersegment revenues | (3,534) | ||||||||||||||||||||||
| Total consolidated revenues | $ | 129,881 | |||||||||||||||||||||
| Less: | |||||||||||||||||||||||
| Cost of sales: | |||||||||||||||||||||||
| Cost of materials and other (a) | 106,638 | 3,944 | 3,558 | ||||||||||||||||||||
| Taxes other than income taxes | 5,900 | — | — | ||||||||||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) | 4,946 | 350 | 536 | ||||||||||||||||||||
| Depreciation and amortization expense | 2,391 | 265 | 77 | ||||||||||||||||||||
| Total cost of sales | 119,875 | 4,559 | 4,171 | ||||||||||||||||||||
| Other operating expenses | 17 | — | 27 | ||||||||||||||||||||
Operating income by segment | $ | 3,971 | $ | 507 | $ | 288 | $ | 4,766 | |||||||||||||||
Reconciliation of operating income by segment to income before income tax expense | |||||||||||||||||||||||
| Elimination of intersegment profits | (5) | ||||||||||||||||||||||
| Unallocated amounts: | |||||||||||||||||||||||
| Other corporate expenses (b) | (1,006) | ||||||||||||||||||||||
| Other income, net | 499 | ||||||||||||||||||||||
Interest and debt expense, net of capitalized interest | (556) | ||||||||||||||||||||||
| Income before income tax expense | $ | 3,698 | |||||||||||||||||||||
| Other segment disclosures | |||||||||||||||||||||||
| Segment assets | $ | 46,729 | $ | 5,680 | $ | 1,545 | $ | 53,954 | |||||||||||||||
| Expenditures for long-lived assets (c) | 1,635 | 321 | 34 | 1,990 | |||||||||||||||||||
________________________
See notes on page 129.
| Refining | Renewable Diesel | Ethanol | Total | ||||||||||||||||||||
| Year ended December 31, 2023 | |||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Revenues from external customers | $ | 136,470 | $ | 3,823 | $ | 4,473 | $ | 144,766 | |||||||||||||||
| Intersegment revenues | 18 | 3,168 | 1,086 | 4,272 | |||||||||||||||||||
| 136,488 | 6,991 | 5,559 | 149,038 | ||||||||||||||||||||
Reconciliation of revenues by segment to consolidated revenues | |||||||||||||||||||||||
| Elimination of intersegment revenues | (4,272) | ||||||||||||||||||||||
| Total consolidated revenues | $ | 144,766 | |||||||||||||||||||||
| Less: | |||||||||||||||||||||||
| Cost of sales: | |||||||||||||||||||||||
| Cost of materials and other (a) | 111,681 | 5,550 | 4,395 | ||||||||||||||||||||
| Taxes other than income taxes | 5,720 | — | — | ||||||||||||||||||||
Operating expenses (excluding depreciation and amortization expense reflected below) | 5,208 | 358 | 515 | ||||||||||||||||||||
| Depreciation and amortization expense | 2,351 | 231 | 80 | ||||||||||||||||||||
| Total cost of sales | 124,960 | 6,139 | 4,990 | ||||||||||||||||||||
| Other operating expenses | 17 | — | 16 | ||||||||||||||||||||
Operating income by segment | $ | 11,511 | $ | 852 | $ | 553 | $ | 12,916 | |||||||||||||||
Reconciliation of operating income by segment to income before income tax expense | |||||||||||||||||||||||
| Elimination of intersegment profits | (17) | ||||||||||||||||||||||
| Unallocated amounts: | |||||||||||||||||||||||
| Other corporate expenses (b) | (1,041) | ||||||||||||||||||||||
| Other income, net | 502 | ||||||||||||||||||||||
Interest and debt expense, net of capitalized interest | (592) | ||||||||||||||||||||||
| Income before income tax expense | $ | 11,768 | |||||||||||||||||||||
| Other segment disclosures | |||||||||||||||||||||||
| Segment assets | $ | 49,031 | $ | 5,790 | $ | 1,549 | $ | 56,370 | |||||||||||||||
| Expenditures for long-lived assets (c) | 1,488 | 294 | 43 | 1,825 | |||||||||||||||||||
________________________
(a)Cost of materials and other for our Renewable Diesel segment is net of the clean fuel production credit on qualifying sales of certain low-carbon transportation fuels of $607 million for the year ended December 31, 2025 and the blender’s tax credit on qualified fuel mixtures of $1.3 billion and $1.2 billion for the years ended December 31, 2024 and 2023, respectively.
(b)Other corporate expenses include general and administrative expenses and depreciation and amortization expense, as reflected in our consolidated statements of income as shown on page 75.
(c)Total expenditures for long-lived assets include amounts related to capital expenditures and deferred turnaround and catalyst costs.
Total assets by reportable segments reconciled to our consolidated assets were as follows (in millions):
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Total assets for reportable segments | $ | 51,316 | $ | 53,954 | |||||||
| Corporate assets | 6,938 | 6,565 | |||||||||
Elimination of intercompany receivables and other assets | (266) | (376) | |||||||||
| Total consolidated assets | $ | 57,988 | $ | 60,143 | |||||||
Expenditures for long-lived assets by reportable segments reconciled to our consolidated expenditures for long-lived assets were as follows (in millions):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Expenditures for long-lived assets for reportable segments | $ | 1,815 | $ | 1,990 | $ | 1,825 | |||||||||||
Corporate expenditures for long-lived assets | 70 | 67 | 91 | ||||||||||||||
| Total consolidated expenditures for long-lived assets | $ | 1,885 | $ | 2,057 | $ | 1,916 | |||||||||||
The following table provides a disaggregation of revenues from external customers for our principal products by reportable segment (in millions):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Refining: | |||||||||||||||||
| Gasolines and blendstocks | $ | 50,917 | $ | 56,014 | $ | 61,538 | |||||||||||
| Distillates | 55,077 | 55,636 | 63,664 | ||||||||||||||
| Other product revenues | 10,164 | 12,203 | 11,268 | ||||||||||||||
| Total Refining revenues | 116,158 | 123,853 | 136,470 | ||||||||||||||
| Renewable Diesel: | |||||||||||||||||
| Renewable diesel | 2,073 | 2,316 | 3,665 | ||||||||||||||
| Renewable naphtha | 138 | 94 | 158 | ||||||||||||||
| Neat SAF | 297 | — | — | ||||||||||||||
| Total Renewable Diesel revenues | 2,508 | 2,410 | 3,823 | ||||||||||||||
| Ethanol: | |||||||||||||||||
| Ethanol | 3,174 | 2,647 | 3,300 | ||||||||||||||
| Distillers grains | 847 | 971 | 1,173 | ||||||||||||||
| Total Ethanol revenues | 4,021 | 3,618 | 4,473 | ||||||||||||||
| Revenues | $ | 122,687 | $ | 129,881 | $ | 144,766 | |||||||||||
Revenues by geographic area are shown in the following table (in millions). The geographic area is based on the location of the customer, and no customer accounted for 10 percent or more of our revenues.
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| U.S. | $ | 87,819 | $ | 93,311 | $ | 104,208 | |||||||||||
| Canada | 8,137 | 8,577 | 10,107 | ||||||||||||||
| U.K. and Ireland | 15,830 | 15,236 | 16,148 | ||||||||||||||
| Mexico and Peru | 5,168 | 5,405 | 6,438 | ||||||||||||||
| Other countries | 5,733 | 7,352 | 7,865 | ||||||||||||||
| Revenues | $ | 122,687 | $ | 129,881 | $ | 144,766 | |||||||||||
Long-lived assets include “property, plant, and equipment, net” and certain long-lived assets included in “deferred charges and other assets, net.” Long-lived assets by geographic area consisted of the following (in millions):
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| U.S. | $ | 26,544 | $ | 28,359 | |||||||
| Canada | 1,567 | 1,414 | |||||||||
| U.K. and Ireland | 1,512 | 1,484 | |||||||||
| Mexico and Peru | 785 | 798 | |||||||||
| Total long-lived assets | $ | 30,408 | $ | 32,055 | |||||||
As of December 31, 2025 and 2024, our investments in nonconsolidated joint ventures accounted for under the equity method were $684 million and $695 million, respectively, all of which related to the Refining segment and are reflected in “deferred charges and other assets, net” in our balance sheets and as presented in Note 7.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 22, 2022 | |
| 2020 | Feb 23, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 23, 2017 | |
| 2015 | Feb 25, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.