Reference no: EM132482671
Valero Energy Corporation and Subsidiaries
Consolidated Statements of Income
(Millions of Dollars) 2016 2015
Operating revenues $ 75,659 $ 87,804
Costs and expenses:
Cost of sales 65,962 73,861
Refining expenses (747) 790
Retail expenses 4,207 4,243
Ethanol expenses 715 710
General and administrative expenses 1,894 1,842
Depreciation and amortization expense 56 0
Asset impairment losses
Total costs and expenses 72,087 81,446
Operating income 3,572 6,358
Other income, net 56 46
Interest and debt expense (446) (433)
Income from continuing operations before income tax
expense 3,182 5,971
Income tax expense 765 1,870
Net income (loss) 2,417 4,101
Less: Net income (loss) attributable to noncontrolling
interests 128 111
Net income attributable to Valero Energy stockholders 2,289 3,990
VALERO ENERGY CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
(Millions of Dollars) 2016 2015
Cash and temporary cash investments $ 4,816 $ 4,114
Receivables, net 5,901 4,464
Inventories 5,709 5,898
Income taxes receivable 58 218
Prepaid expenses and other 316 204
Total current assets 16,800 14,898
Property, plant and equipment, net 26,472 26,703
Deferred charges and other assets, net 2,901 2,626
Total assets 46,173 44,227
Current portion of debt and capital lease obligations 115 127
Accounts payable 6,357 4,907
Accrued expenses 694 554
Taxes other than income taxes 1,084 1,069
Income taxes payable 78 337
Total current liabilities 8,328 6,994
Debt and capital lease obligations, less current portion 7,886 7 ,208
Deferred income taxes 7,361 7,060
Other long-term liabilities 1,744 1,611
Total liabilities 25,319 22,873
Common stock 7 7
Additional paid-in capital 7,088 7,064
Treasury stock (12,027) (10,799)
Retained earnings 26,366 25,188
Accumulated other comprehensive income (loss) (1,410) (933)
Total Valero Energy stockholders' equity 20,024 20,527
Noncontrolling interest 830 827
Total equity 20,854 21,354
Total liabilities and stockholders' equity $ 46,173 44,227
Question 1: Compute Valero's return on equity (ROE) for 2016 and 2015. Valero Energy stockholders' equity in 2014 was $20,677 million.