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Table of Contents
VALERO ENERGY CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Balance Sheet
Location
December 31, 2014
Asset
Derivatives
Liability
Derivatives
Derivatives not designated as
hedging instruments
Commodity contracts:
Futures Receivables, net
$ 3,096
$ 2,886
Swaps Receivables, net
34
31
Options Receivables, net
2
3
Physical purchase contracts Inventories
1
5
Total
$ 3,133
$ 2,925

Our price risk management activities involve the receipt or payment of fixed price commitments into the future. These transactions give
rise to market risk, which is the risk that future changes in market conditions may make an instrument less valuable. We closely monitor
and manage our exposure to market risk on a daily basis in accordance with policies approved by our board of directors. Market risks
are monitored by our risk control group to ensure compliance with our stated risk management policy. We do not require any collateral
or other security to support derivative instruments into which we enter. We also do not have any derivative instruments that require us
to maintain a minimum investment-grade credit rating.

The following tables provide information about the gain or loss recognized in income and other comprehensive income (OCI) on our
derivative instruments and the line items in the financial statements in which such gains and losses are reflected (in millions).
Derivatives in Fair Value
Hedging Relationships
Location of Gain (Loss)
Recognized in Income
on Derivatives
Year Ended December 31,
2015
2014
2013
Commodity contracts:
Loss recognized in
income on derivatives
Cost of sales
$ —
$ (42)
$ (12)
Gain recognized in
income on hedged item
Cost of sales
—
42
18
Gain recognized in
income on derivatives
(ineffective portion)
Cost of sales
—
—
6
123