Market Report -- In Play (VLO)

November 5, 2009 5:12 PM ET

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Stocks mentioned in this article: Valero Energy Corp (VLO) Stock Quote, Chart, News, Add to Watchlist
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Valero Energy: Records a loss of contingency accrual of $~140 mln in Q3 results The co announces that an arbitration panel in the Netherlands handed down an interim decision on certain issues in dispute between Valero and the Government of Aruba. The panel ruled favorably on Valero's existing exemption from income tax liability for refining operations through 2010. Two other items in the arbitration - the applicable dividend tax rate and the turnover tax - were not fully resolved in the panel's decision and remain subject to further review. Valero continues to believe that its remaining claims against these taxes have significant merit, and intends to vigorously pursue these claims through the arbitration proceedings and in proceedings in Aruba. Valero had not recognized any expense or liability with respect to these matters in its consolidated financial statements or in the company's third quarter earnings release issued Oct. 27, 2009. Due to the uncertain timing of the panel's final ruling, the company has recorded a loss contingency accrual of approximately $140 million, or $(0.25) per share, in its financial results for the quarter ended Sept. 30, 2009. The accrual includes all material liabilities through Sept. 30, 2009 associated with the arbitration.

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