Company Case Valero #2
Company Case #2: Valero
***Note that all of the amounts stated are in millions of dollars, unless specified)
1. For noncurrent (long-term) liabilities, what categories of long-term liabilities does the company disclose on the balance sheet and what are their amounts for the most recent year?
The company discloses long-term liabilities on the balance sheet as:
2011
Debt and capital lease obligations (less current portion) $6,732
Deferred income taxes: $5,017
Other long-term liabilities. $1,881
Commitments and contingencies $0
Total long-term liabilities: $16,630
2. What does the accounting policy footnote (Summary of Significant Accounting Policies-usually Note 1 or Note A) have to say, if anything, about any category of long-term liabilities? (This question is asking for disclosures only made in the accounting policy footnote-not those made in any other footnote or elsewhere in the filing.)
Under other long-term liabilities is a category for environmental liabilities. Under foot note 1 it stated that the environmental liabilities are estimated at a cost for a 20 year period accounting for various circumstances: such as technology available, current regulations that apply, internal policies. Another stated long-term liability is asset retirement obligations which are account that retires a long-lived asset over time that are typically grouped into property, plant, and equipment. Income tax is another long term liability because of the deferred amount stated under the balance sheet section. Last long term liability stated is the section financial instruments which are referring to debt, capital lease obligation, payable, amongst other accounts.
3. (a) Identify by number and title any footnotes besides the accounting policy footnote that addresses long term or noncurrent debt (by which is meant only notes payable, credit facilities, or bonds payable or capital leases, if any). (b) For long term or
***Note that all of the amounts stated are in millions of dollars, unless specified)
1. For noncurrent (long-term) liabilities, what categories of long-term liabilities does the company disclose on the balance sheet and what are their amounts for the most recent year?
The company discloses long-term liabilities on the balance sheet as:
2011
Debt and capital lease obligations (less current portion) $6,732
Deferred income taxes: $5,017
Other long-term liabilities. $1,881
Commitments and contingencies $0
Total long-term liabilities: $16,630
2. What does the accounting policy footnote (Summary of Significant Accounting Policies-usually Note 1 or Note A) have to say, if anything, about any category of long-term liabilities? (This question is asking for disclosures only made in the accounting policy footnote-not those made in any other footnote or elsewhere in the filing.)
Under other long-term liabilities is a category for environmental liabilities. Under foot note 1 it stated that the environmental liabilities are estimated at a cost for a 20 year period accounting for various circumstances: such as technology available, current regulations that apply, internal policies. Another stated long-term liability is asset retirement obligations which are account that retires a long-lived asset over time that are typically grouped into property, plant, and equipment. Income tax is another long term liability because of the deferred amount stated under the balance sheet section. Last long term liability stated is the section financial instruments which are referring to debt, capital lease obligation, payable, amongst other accounts.
3. (a) Identify by number and title any footnotes besides the accounting policy footnote that addresses long term or noncurrent debt (by which is meant only notes payable, credit facilities, or bonds payable or capital leases, if any). (b) For long term or