TESORO CORP /NEW/

CIK:0000050104|SEC Filings

Condensed Statements of Consolidated Operations (unaudited) Statement - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Revenues (a)	$ 12,472	$ 7,849	$ 22,772	$ 14,487
Costs and Expenses
Cost of materials and other (excluding items shown separately below) (a)	10,235	6,217	18,844	11,643
Lower of cost or market inventory valuation adjustment	0	209	0	209
Operating expenses (excluding depreciation and amortization)	918	740	1,784	1,395
Depreciation and amortization expenses	292	240	574	466
General and administrative expenses	179	247	352	382
(Gain) loss on asset disposals and impairments	1	(22)	1	(21)
Operating Income	847	218	1,217	413
Interest and financing costs, net	(109)	(96)	(211)	(194)
Equity in earnings of equity method investments	11	3	21	3
Other income, net	0	18	10	29
Earnings Before Income Taxes	749	143	1,037	251
Income tax expense	167	56	226	77
Net Earnings from Continuing Operations	582	87	811	174
Earnings from discontinued operations, net of tax	0	0	8	0
Net Earnings	582	87	819	174
Less: Net earnings from continuing operations attributable to noncontrolling interest	67	47	132	84
Net Earnings Attributable to Andeavor	515	40	687	90
Net Earnings Attributable to Andeavor
Continuing operations	515	40	679	90
Net Earnings Attributable to Andeavor	$ 515	$ 40	$ 687	$ 90
Net Earnings per Share - Basic
Continuing operations	$ 3.41	$ 0.31	$ 4.47	$ 0.73
Discontinued operations	0.00	0.00	0.05	0.00
Total	$ 3.41	$ 0.31	$ 4.52	$ 0.73
Weighted average common shares outstanding - Basic	151.1	130.8	152.0	124.0
Net Earnings per Share - Diluted
Continuing operations	$ 3.38	$ 0.31	$ 4.43	$ 0.72
Discontinued operations	0.00	0.00	0.05	0.00
Total	$ 3.38	$ 0.31	$ 4.48	$ 0.72
Weighted average common shares outstanding - Diluted	152.6	131.7	153.5	125.0
Dividends per Share	$ 0.590	$ 0.550	$ 1.18	$ 1.10
Supplemental Information
Includes excise taxes collected by our Marketing segment	$ 0	$ 153		$ 287

Condensed Statements of Consolidated Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash Flows From (Used In) Operating Activities
Net earnings	$ 819	$ 174
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation and amortization expenses	574	466
Lower of cost or market inventory valuation adjustment	0	209
Amortization of debt issuance costs and discounts	10	10
(Gain) loss on asset disposals and impairments	(1)	21
Gain related to Hawaii Business	(10)	0
Stock-based compensation expense	26	34
Deferred income taxes	171	50
Turnaround expenditures	(237)	(274)
Marketing branding costs	(24)	(37)
Equity in earnings of equity method investments, net of distributions	6	13
Other operating activities, net	9	(6)
Changes in current assets and current liabilities	(282)	(4)
Changes in noncurrent assets and noncurrent liabilities	34	156
Net cash from operating activities	1,097	770
Cash Flows From (Used In) Investing Activities
Capital expenditures	(852)	(539)
Acquisitions, net of cash	(631)	(938)
Proceeds from asset sales	7	44
Investments in equity method investments and joint ventures	(37)	0
Other investing activities, net	1	(15)
Net cash used in investing activities	(1,512)	(1,448)
Cash Flows From (Used In) Financing Activities
Borrowings under revolving credit agreements	2,940	764
Repayments on revolving credit agreements	(1,898)	(514)
Repayments of debt	(11)	(1,636)
Proceeds from inventory financing arrangements	330	0
Repayments of inventory financing arrangements	(446)	0
Dividend payments	(181)	(130)
Net proceeds from issuance of Andeavor Logistics LP common units	0	281
Distributions to noncontrolling interest	(189)	(133)
Purchases of common stock	(258)	(148)
Taxes paid related to net share settlement of equity awards	(23)	(31)
Other financing activities, net	(4)	(9)
Net cash from (used in) financing activities	260	(1,556)
Decrease in Cash and Cash Equivalents	(155)	(2,234)
Cash and Cash Equivalents, Beginning of Period	543	3,295
Cash and Cash Equivalents, End of Period	$ 388	$ 1,061

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Millions

Jun. 30, 2018

Dec. 31, 2017

Current Assets

Cash and cash equivalents (Andeavor Logistics: $44 and $75, respectively)

$ 388

$ 543

Receivables, net of allowance for doubtful accounts (Andeavor Logistics: $200 and $219, respectively)

2,623

1,961

Inventories

3,653

3,630

Prepayments and other current assets

496

749

Total Current Assets

7,160

6,883

Property, plant and equipment, at cost

19,834

18,823

Accumulated depreciation and amortization

4,389

4,081

Property, Plant and Equipment, Net (Andeavor Logistics: $5,625 and $5,413, respectively)

15,445

14,742

Goodwill (Andeavor Logistics: $712 and $692, respectively)

3,288

3,234

Acquired Intangibles, Net (Andeavor Logistics: $1,128 and $1,153, respectively)

1,709

1,645

Other Noncurrent Assets, Net (Andeavor Logistics: $404 and $406, respectively)

2,472

2,069

Total Assets

30,074

28,573

Current Liabilities

Accounts payable

3,799

3,330

Current maturities of debt

Other current liabilities

1,227

1,654

Total Current Liabilities

5,054

5,001

Deferred Income Taxes

1,777

1,591

Debt, Net of Unamortized Issuance Costs (Andeavor Logistics: $4,372 and $4,127, respectively)

8,698

7,668

Other Noncurrent Liabilities

978

898

Total Liabilities

16,507

15,158

Andeavor Stockholders’ Equity

Common stock, par value $0.162/3; authorized 300,000,000 shares; 200,797,146 shares issued (200,095,819 in 2017)

Additional paid-in capital

5,269

5,224

Retained earnings

8,141

7,651

Treasury stock, 49,675,841 common shares (46,810,338 in 2017), at cost

(3,123)

(2,841)

Accumulated other comprehensive loss, net of tax

(252)

Total Andeavor Stockholders’ Equity

10,068

9,815

Noncontrolling Interest

3,499

3,600

Total Equity

^[1]

13,567

13,415

Total Liabilities and Equity

$ 30,074

$ 28,573

[1]	We have 5.0 million shares of preferred stock authorized with no par value per share. No shares of preferred stock were outstanding as of June 30, 2018 and December 31, 2017.