2024 ESG Report FINAL - Report - Page 80
Non-GAAP Disclosures
Capital Investments Attributable to Valero
Reconciliation of Capital Investments to
Capital Investments Attributable to Valero (in
millions)
Valero de昀椀nes capital investments attributable to Valero as
all capital expenditures, deferred turnaround and catalyst
cost expenditures, and investments in non-consolidated joint
ventures presented in Valero's consolidated statements of
cash 昀氀ows excluding the portion of DGD’s capital investments
attributable to the other joint venture member and all of the
capital expenditures of other variable interest entities (VIEs).
Capital investments attributable to Valero are allocated
between sustaining capital expenditures attributable to Valero
and growth capital investments attributable to Valero.
Year ended
December 31,
2023
$ 665
Capital expenditures (excluding VIEs)
Capital expenditures of VIEs:
235
DGD
Other VIEs
DGD’s members use DGD’s operating cash 昀氀ow (excluding
changes in its current assets and current liabilities) to fund
its capital investments rather than distribute all of that
cash to themselves. Because DGD’s operating cash 昀氀ow is
effectively attributable to each member, only 50 percent of
DGD’s capital investments should be attributed to Valero's net
share of capital investments. Valero also excludes the capital
expenditures of other consolidated VIEs because Valero does
not operate those VIEs. Valero believes that capital investments
attributable to Valero is an important measure because it
more accurately re昀氀ects capital investments of Valero.
11
Deferred turnaround and catalyst cost
expenditures (excluding VIEs)
946
Deferred turnaround and catalyst cost
expenditures of DGD
59
1,916
Total capital investments
Adjustments:
DGD's capital investments attributable to
the other joint venture member
(147)
(11)
Capital expenditures of other VIEs
$ 1,758
Capital investments attributable to Valero
Free Cash Flow
Valero de昀椀nes free cash 昀氀ow as net cash provided by operating activities less capital expenditures of Valero and DGD, deferred
turnaround and catalyst cost expenditures, investments in joint ventures, and changes in current assets and liabilities. Valero
believes that the presentation of free cash 昀氀ow provides useful information to investors in assessing Valero’s ability to cover
ongoing costs and Valero’s ability to generate cash returns to stockholders. The GAAP measures most directly comparable to
free cash 昀氀ow are net cash provided by operating activities and net cash used in investing activities.
Reconciliation of Net Cash Provided by Operating Activities under GAAP to Free Cash Flow (in millions)
Year ended December 31,
Net cash provided by
operating activities
2012
2013
2014
$5,270
$5,564
$4,241
2016
2017
$5,611
$4,820
$5,482
$4,371
$5,531
2,931
2,121
2,153
1,618
1,278
1,353
1,628
479
634
649
673
718
523
57
76
14
141
4
(302)
922
(1,810)
(1,306)
$2,105
$1,811
$3,235
$4,485
Less: Capital expenditures of
Valero and DGD
Less: Deferred turnaround and
catalyst cost expenditures
Less: Investments in joint
ventures
Less: Changes in current assets
and current liabilities
Free cash 昀氀ow
Total free cash 昀氀ow, 2012 - 2023
Number of years
Average free cash 昀氀ow, 2012 - 2023
80
2015
2018
2019
2020
2021
2022
2023
$948
$5,859
$12,574
$9,229
1,769
1,537
1,555
1,641
900
915
780
648
793
1,056
1,005
406
181
164
54
9
1
-
976
1,289
(1,297)
294
(345)
2,225
(1,626)
(2,326)
$1,844
$1,911
$2,944
$2,524
$(946)
$1,277
$11,502
$9,650
$42,342
12
$ 3,529
