Valero 2015 Annual Report Download - page 51

Table of Contents
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Our contractual obligations as of December 31, 2015 are summarized below (in millions).
Payments Due by Period
2016
2017
2018
2019
2020
Thereafter
Total
Debt and capital
lease obligations (a) $ 134
$ 966
$ 16
$ 766
$ 1,039
$ 4,517
$ 7,438
Operating lease obligations 430
283
200
143
100
311
1,467
Purchase obligations 14,975
3,204
2,458
1,197
985
4,535
27,354
Other long-term liabilities —
172
134
131
125
1,049
1,611
Total $ 15,539
$ 4,625
$ 2,808
$ 2,237
$ 2,249
$ 10,412
$ 37,870
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(a) Debt obligations exclude amounts related to unamortized discount and fair value adjustments. Capital lease obligations include related interest expense.
These items are further described in Note 10 of Notes to Consolidated Financial Statements.
Debt and Capital Lease Obligations
We have an accounts receivable sales facility with a group of third-party entities and financial institutions to sell eligible trade
receivables on a revolving basis. In July 2015, we amended our agreement to decrease the facility from $1.5 billion to $1.4 billion and
extended the maturity date to July 2016. As of December 31, 2015, the actual availability under the facility fell below the facility
borrowing capacity to $1.1 billion primarily due to a decrease in eligible trade receivables as a result of the ongoing decline in the
market prices of the finished products that we produce. As of December 31, 2015, the amount of eligible receivables sold was
$100 million. All amounts outstanding under this facility are reflected as debt.
Our debt and financing agreements do not have rating agency triggers that would automatically require us to post additional collateral.
However, in the event of certain downgrades of our senior unsecured debt by the ratings agencies, the cost of borrowings under some
of our bank credit facilities and other arrangements would increase. All of our ratings on our senior unsecured debt are at or above
investment grade level as follows:
Rating Agency
Rating
Moody’s Investors Service
Baa2 (stable outlook)
Standard & Poor’s Ratings Services
BBB (stable outlook)
Fitch Ratings
BBB (stable outlook)
We cannot provide assurance that these ratings will remain in effect for any given period of time or that one or more of these ratings
will not be lowered or withdrawn entirely by a rating agency. We note that these credit ratings are not recommendations to buy, sell, or
hold our securities and may be revised or withdrawn at any time by the rating agency. Each rating should be evaluated independently
of any other rating. Any future reduction below investment grade or withdrawal of one or more of our credit ratings could have a
material adverse impact on our ability to obtain short- and long-term financing and the cost of such financings.
Operating Lease Obligations
Our operating lease obligations include leases for land, office facilities and equipment, transportation equipment, time charters for
ocean-going tankers and coastal vessels, dock facilities, and various facilities and equipment used in the storage, transportation,
production, and sale of refinery feedstocks, refined products, and corn inventories. Operating lease obligations include all operating
leases that have initial or
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