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Valero Energy VLO Refining — Asset retirement obligation, liabilities settled
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Where this comes from
Reported directly by Valero Energy in its filing.
Tagged under the XBRL concept us-gaap:AssetRetirementObligationLiabilitiesSettled.
The source filing: Valero Energy’s 10-Q, filed July 30, 2026.
- Filed
- Jul 30, 2026, 12:58 PM EDT
- Fiscal quarter
- Q2 FY2026
- Calendar quarter
- Q2 2026
- Accession
- 0001628280-26-050937
- During the first quarter of 2025, we evaluated the Benicia and Wilmington refineries for potential impairment and concluded that their carrying values were not recoverable as of March 31, 2025. Therefore, we recognized a combined asset impairment loss of $1.1 billion.
- Included in the recoverability assessments discussed above was the recognition of expected asset retirement obligations of $337 million. During the three and six months ended June 30, 2026, we settled approximately $70 million and $170 million, respectively, of the asset retirement obligation related to our Benicia Refinery.
- We shortened the estimated useful life of the Benicia Refinery, and as a result, have depreciated the revised carrying value of the net property, plant, and equipment and other noncurrent assets since April 2025 to the estimated salvage value. Accordingly, we recorded incremental depreciation of approximately $33 million and $133 million in the three and six months ended June 30, 2026, respectively, and approximately $100 million in the three and six months ended June 30, 2025 in depreciation and amortization expense.
- We implemented a transition plan for the affected employees of the Benicia Refinery, which includes retention incentive payments and separation benefits. During the third quarter of 2025, we recognized a liability of $50 million for these one-time costs, which was included in operating expenses (excluding depreciation and amortization expense). Substantially all of this amount has been paid to eligible employees as of June 30, 2026.
- During the second quarter of 2026, we reduced certain inventory levels related to our California operations that resulted in the liquidation of last-in, first-out (LIFO) inventory layers with historical costs that were lower than current replacement costs. As a result, cost of materials and other includes a benefit of $44 million in the three and six months ended June 30, 2026. Similar reductions in inventory levels occurred during the fourth quarter of 2025, which increased cost of materials and other by $37 million in the year ended December 31, 2025.
ITEM 1. FINANCIAL STATEMENTS
FAQ
- What is Valero Energy's refining — asset retirement obligation, liabilities settled?
- Valero Energy (VLO) reported refining — asset retirement obligation, liabilities settled of $70M in Q2 2026.
- What does refining — asset retirement obligation, liabilities settled mean?
- The actual cash expenditures incurred to fulfill legal obligations related to the retirement or decommissioning of refining assets. This represents the realization of previously accrued environmental and site restoration liabilities.
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