TESORO CORPORATION

CONSOLIDATED BALANCE SHEETS

December 31, (Dollars in millions)

ASSETS	2013	2012
CURRENT ASSETS	2013	2012
Cash and cash equivalents	1,238	1,639
Receivables, less allowance for doubtful accounts	1,313	1,126
Inventories	2,565	1,338
Prepayments and other current assets	210	196
Current assets related to discontinued operations		337
Total Current Assets	5,326	4,636
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment, at cost	9,123	7,206
Less accumulated depreciation and amortization	(2,248)	(1,974)
Net Property, Plant and Equipment	6,875	5,232
OTHER NONCURRENT ASSETS
Acquired intangibles, net	263	214
Other, net	925	602
Noncurrent assets related to discontinued operations		18
Total Other Noncurrent Assets	1,188	834
Total Assets	13,389	10,702

LIABILITIES AND EQUITY	2013	2012
CURRENT LIABILITIES	2013	2012
Accounts payable	2,596	2,196
Current maturities of debt	6	3
Other current liabilities	806	622
Current liabilities related to discontinued operations		60
Total Current Liabilities	3,408	2,881
DEFERRED INCOME TAXES	1,018	850
OTHER NONCURRENT LIABILITIES	655	644
BANK DEBT	2,823	1,585
EQUITY	2013	2012
Common stock, 154,712,627 shares issued (152,579,955 in 2012)	26	25
Additional paid-in capital	1,186	1,070
Retained earnings	3,940	3,649
Treasury stock, 22,907,890 (14,417,533 in 2012)	-798	-356
Accumulated other comprehensive loss	(52.00)	(137.00)
Total Tesoro Corporation Stockholders Equity	4,302	4,251
NONCONTROLLING INTEREST	1,183	486
Total Equity	5,485	4,737
Total Liabilities and Equity	13,389	10,702

2.3 Tesoro had significant borrowing during 2013.