Valero 2015 Annual Report Download - page 19

Table of Contents

Our information technology systems and network infrastructure may be subject to unauthorized access or attack, which could result in a
loss of sensitive business information, systems interruption, or the disruption of our business operations. There can be no assurance that
our infrastructure protection technologies and disaster recovery plans can prevent a technology systems breach or systems failure,
which could have a material adverse effect on our financial position or results of operations.


Workers at some of our refineries are covered by collective bargaining agreements. To the extent we are in negotiations for labor
agreements expiring in the future, there is no assurance an agreement will be reached without a strike, work stoppage, or other labor
action. Any prolonged strike, work stoppage, or other labor action could have an adverse effect on our financial condition or results of
operations. In addition, future federal or state labor legislation could result in labor shortages and higher costs, especially during critical
maintenance periods.
                    
                   
.
Our operations are subject to various hazards common to the industry, including explosions, fires, toxic emissions, maritime hazards,
and natural catastrophes. As protection against these hazards, we maintain insurance coverage against some, but not all, potential losses
and liabilities. We may not be able to maintain or obtain insurance of the type and amount we desire at reasonable rates. As a result of
market conditions, premiums and deductibles for certain of our insurance policies could increase substantially. In some instances,
certain insurance could become unavailable or available only for reduced amounts of coverage. For example, coverage for hurricane
damage is very limited, and coverage for terrorism risks includes very broad exclusions. If we were to incur a significant liability for
which we were not fully insured, it could have a material adverse effect on our financial position, results of operations, and liquidity.
Our insurance program includes a number of insurance carriers. Significant disruptions in financial markets could lead to a deterioration
in the financial condition of many financial institutions, including insurance companies. We can make no assurances that we will be
able to obtain the full amount of our insurance coverage for insured events.
                 

We may engage in capital projects based on the forecasted project economics and level of return on the capital to be employed in the
project. Large-scale projects take many years to complete, and market conditions can change from our forecast. As a result, we may be
unable to fully realize our expected returns, which could negatively impact our financial condition, results of operations, and cash
flows.
.
We are subject to extensive tax liabilities imposed by multiple jurisdictions, including income taxes, indirect taxes (excise/duty,
sales/use, gross receipts, and value-added taxes), payroll taxes, franchise taxes, withholding taxes, and ad valorem taxes. New tax laws
and regulations and changes in existing tax laws and regulations are continuously being enacted or proposed that could result in
increased expenditures for tax
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