Assuming Dilution (in millions) (6)

U.S.

U.S.

The information presented for the three and nine months ended September 30, 2009 includes the operations related to the acquisition of certain ethanol plants from VeraSun Energy Corporation. Ethanol plants located in Charles City, Fort Dodge and Hartley, Iowa; Aurora, South Dakota; and Welcome, Minnesota were purchased on April 1, 2009, and ethanol plants in Albert City, Iowa and Albion, Nebraska were purchased on April 9, 2009 and May 8, 2009, respectively. The ethanol production volumes reflected in this earnings release for the nine months ended September 30, 2009 are based on 273 calendar days rather than the actual daily production, which varied by facility.

Effective July 1, 2008, Valero sold its Krotz Springs Refinery to Alon Refining Krotz Springs, Inc. (Alon), a subsidiary of Alon USA Energy, Inc. The nature and significance of Valero's post-closing participation in an offtake agreement with Alon represents a continuation of activities with the Krotz Springs Refinery for accounting purposes, and as such the results of operations related to the Krotz Springs Refinery have not been presented as discontinued operations in the Statement of Income Data for the three and nine months ended September 30, 2008. The refining operating highlights, both consolidated and for the Gulf Coast region, presented in this earnings release include the Krotz Springs Refinery for the nine months ended September 30, 2008. The pre-tax gain of $305 million on the sale of the Krotz Springs Refinery is included in the Gulf Coast operating income for the three and nine months ended September 30, 2008.

Includes excise taxes on sales by Valero's U.S. retail system of $226 million and $207 million for the three months ended September 30, 2009 and 2008, respectively, and $659 million and $605 million for the nine months ended September 30, 2009 and 2008, respectively.

The asset impairment loss for the three months ended September 30, 2009 relates primarily to charges of approximately $340 million resulting from the permanent shutdown of the gasification unit at Valero's Delaware City Refinery. The remaining loss for the three months ended September 30, 2009 relates to the permanent cancellation of certain capital projects classified as "construction in progress" as a result of the unfavorable impact of the continuing economic slowdown on refining industry fundamentals. Losses resulting from the permanent cancellation of certain capital projects classified as "construction in progress" in prior periods have been reclassified from Operating Expenses and presented separately for comparability with the third quarter 2009 presentation. The asset impairment loss amounts for all periods have been excluded from operating costs in determining operating costs per barrel, resulting in an adjustment to the operating costs per barrel previously reported in 2008.

Effective January 1, 2009, Valero adopted certain new accounting rules that require restricted stock granted under Valero's stock-based compensation plans to be treated as participating securities under the two-class method of determining basic earnings per common share. Basic earnings per common share for prior periods are to be adjusted to conform to these new rules. The adoption of the new rules did not have any effect on the calculation of basic earnings per common share for the three and nine months ended September 30, 2009, but did reduce the $2.21 and $4.08 basic earnings per common share amounts originally reported for the three and nine months ended September 30, 2008, respectively.

Common equivalent shares have been excluded from the computation of diluted earnings (loss) per common share for the three and nine months ended September 30, 2009 as the effect of including such shares would be antidilutive.

The regions reflected herein contain the following refineries: Gulf Coast- Corpus Christi East, Corpus Christi West, Texas City, Houston, Three Rivers, Krotz Springs (prior to its sale effective July 1, 2008), St. Charles, Aruba, and Port Arthur Refineries; Mid-Continent- McKee, Ardmore, and Memphis Refineries; Northeast- Quebec City, Paulsboro, and Delaware City Refineries; and West Coast- Benicia and Wilmington Refineries.

A loss contingency accrual of $140 million ($.25 per share) was recorded in the third quarter of 2009 related to Valero's dispute with the Government of Aruba regarding a turnover tax on export sales as well as other tax matters.  The portion of the loss contingency accrual that relates to the turnover tax was recorded in cost of sales for the three and nine months ended September 30, 2009, and therefore is included in refining operating income (loss) but has been excluded in determining throughput margin per barrel.