Supplemental Guarantor/Non-Guarantor Financial Information

12 Months Ended

Dec. 31, 2012

Supplemental Guarantor / Non-Guarantor Financial Information [Abstract]

Supplemental Guarantor/Non-Guarantor Financial Information

Supplemental Guarantor/Non-Guarantor Financial Information

Our obligations under the HollyFrontier Senior Notes have been jointly and severally guaranteed by the substantial majority of our existing and future restricted subsidiaries (“Guarantor Restricted Subsidiaries”). These guarantees are full and unconditional. HEP, in which we have a 44% ownership interest at December 31, 2012, and its subsidiaries (collectively, “Non-Guarantor Non-Restricted Subsidiaries”), and certain of our other subsidiaries (“Non-Guarantor Restricted Subsidiaries”) have not guaranteed these obligations.

The following condensed consolidating financial information is provided for HollyFrontier Corporation (the “Parent”), the Guarantor Restricted Subsidiaries, the Non-Guarantor Restricted Subsidiaries and the Non-Guarantor Non-Restricted Subsidiaries. The information has been presented as if the Parent accounted for its ownership in the Guarantor Restricted Subsidiaries, and the Guarantor Restricted Subsidiaries accounted for the ownership of the Non-Guarantor Restricted Subsidiaries and Non-Guarantor Non-Restricted Subsidiaries, using the equity method of accounting. The Guarantor Restricted Subsidiaries and the Non-Guarantor Restricted Subsidiaries are collectively the “Restricted Subsidiaries.”

HEP acquired our 75% interest in UNEV in July 2012. As a result, we have recast our HEP segment information to include the UNEV Pipeline operations as a consolidated subsidiary of HEP for all periods presented. The UNEV Pipeline was previously presented as a Non-Guarantor Restricted Subsidiary.

Condensed Consolidating Balance Sheet
December 31, 2012	Parent			Guarantor Restricted Subsidiaries		Non- Guarantor Restricted Subsidiaries			Eliminations			HollyFrontier Corp. Before Consolidation of HEP		Non-Guarantor Non-Restricted Subsidiaries (HEP Segment)		Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	1,748,808		$	3,652	$	2		$	—		$	1,752,462	$	5,237	$	—		$	1,757,699
Marketable securities	630,579			7		—			—			630,586		—		—			630,586
Accounts receivable, net	4,788			627,262		—			—			632,050		38,097		(35,917		)	634,230
Intercompany accounts receivable (payable)	(546,655		)	285,291		261,364			—			—		—		—			—
Inventories	—			1,318,373		—			—			1,318,373		1,259		—			1,319,632
Income taxes receivable	74,957			—		—			—			74,957		—		—			74,957
Prepayments and other	21,867			34,667		—			—			56,534		2,360		(5,733		)	53,161
Total current assets	1,934,344			2,269,252		261,366			—			4,464,962		46,953		(41,650		)	4,470,265
Properties, plants and equip, net	24,209			2,444,398		—			—			2,468,607		1,014,556		(288,463		)	3,194,700
Marketable securities (long-term)	5,116			—		—			—			5,116		—		—			5,116
Investment in subsidiaries	5,251,396			74,120		—			(5,325,516		)	—		—		—			—
Intangibles and other assets	11,825			2,284,329		25,000			(25,000		)	2,296,154		365,291		(2,529		)	2,658,916
Total assets	$	7,226,890		$	7,072,099	$	286,366		$	(5,350,516	)	$	9,234,839	$	1,426,800	$	(332,642	)	$	10,328,997
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	1,941		$	1,336,097	$	—		$	—		$	1,338,038	$	12,030	$	(35,917	)	$	1,314,151
Income taxes payable	—			—		—			—			—		—		—			—
Accrued liabilities	71,226			105,298		581			—			177,105		23,705		(5,733		)	195,077
Deferred income tax liabilities	145,225			—		(9		)	—			145,216		—		—			145,216
Total current liabilities	218,392			1,441,395		572			—			1,660,359		35,735		(41,650		)	1,654,444
Long-term debt	460,254			36,311		—			(25,000		)	471,565		864,673		—			1,336,238
Liability to HEP	—			257,777					—			257,777		—		(257,777		)	—
Deferred income tax liabilities	530,544			—		1,175			—			531,719		—		4,951			536,670
Other long-term liabilities	48,757			85,220		—			—			133,977		28,683		(3,673		)	158,987
Investment in HEP	—			—		210,499			—			210,499		—		(210,499		)	—
Equity – HollyFrontier	5,968,943			5,251,396		74,120			(5,325,516		)	5,968,943		382,207		(298,196		)	6,052,954
Equity – noncontrolling interest	—			—		—			—			—		115,502		474,202			589,704
Total liabilities and equity	$	7,226,890		$	7,072,099	$	286,366		$	(5,350,516	)	$	9,234,839	$	1,426,800	$	(332,642	)	$	10,328,997

Condensed Consolidating Balance Sheet
December 31, 2011 (1)	Parent			Guarantor Restricted Subsidiaries			Non- Guarantor Restricted Subsidiaries		Eliminations			HollyFrontier Corp. Before Consolidation of HEP		Non-Guarantor Non-Restricted Subsidiaries (HEP Segment)		Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	1,575,891		$	(3,358	)	$	2	$	—		$	1,572,535	$	6,369	$	—		$	1,578,904
Marketable securities	210,886			753			—		—			211,639		—		—			211,639
Accounts receivable, net	8,317			698,911			—		—			707,228		37,290		(35,661		)	708,857
Intercompany accounts receivable (payable)	(629,712		)	331,431			298,281		—			—		—		—			—
Inventories	—			1,113,136			—		—			1,113,136		1,483		—			1,114,619
Income taxes receivable	87,277			—			—		—			87,277		—		—			87,277
Prepayments and other	19,379			202,428			4		—			221,811		2,246		(4,607		)	219,450
Total current assets	1,272,038			2,343,301			298,287		—			3,913,626		47,388		(40,268		)	3,920,746
Properties, plants and equip, net	26,702			2,322,645			—		—			2,349,347		1,006,379		(302,821		)	3,052,905
Marketable securities (long-term)	50,067			—			—		—			50,067		—		—			50,067
Investment in subsidiaries	5,280,403			331,413			35,511		(5,611,816		)	35,511		—		(35,511		)	—
Intangibles and other assets	19,329			2,242,197			—		—			2,261,526		364,893		(73,894		)	2,552,525
Total assets	$	6,648,539		$	7,239,556		$	333,798	$	(5,611,816	)	$	8,610,077	$	1,418,660	$	(452,494	)	$	9,576,243
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	23,497		$	1,494,790		$	359	$	—		$	1,518,646	$	21,709	$	(35,661	)	$	1,504,694
Income taxes payable	40,366			—			—		—			40,366		—		—			40,366
Accrued liabilities	53,390			103,981			1,170		—			158,541		16,006		(4,607		)	169,940
Deferred income tax liabilities	175,683			—			—		—			175,683		—		—			175,683
Total current liabilities	292,936			1,598,771			1,529		—			1,893,236		37,715		(40,268		)	1,890,683
Long-term debt	651,261			37,620			—		—			688,881		598,761		(72,900		)	1,214,742
Liability to HEP	—			269,870			—		—			269,870		—		(269,870		)	—
Deferred income tax liabilities	457,914			—			856		—			458,770		—		4,951			463,721
Other long-term liabilities	116,443			52,892			—		—			169,335		4,000		(2,138		)	171,197
Equity – HollyFrontier	5,129,985			5,280,403			331,413		(5,611,816		)	5,129,985		679,182		(605,157		)	5,204,010
Equity – noncontrolling interest	—			—			—		—			—		99,002		532,888			631,890
Total liabilities and equity	$	6,648,539		$	7,239,556		$	333,798	$	(5,611,816	)	$	8,610,077	$	1,418,660	$	(452,494	)	$	9,576,243

(1) Certain amounts have been revised to conform to our current year presentation in the Parent, Guarantor Restricted Subsidiary, Non-Guarantor Restricted Subsidiary and Elimination columns.

Condensed Consolidating Statement of Income and Comprehensive Income
Year Ended December 31, 2012	Parent			Guarantor Restricted Subsidiaries			Non- Guarantor Restricted Subsidiaries		Eliminations			HollyFrontier Corp. Before Consolidation of HEP			Non-Guarantor Non-Restricted Subsidiaries (HEP Segment)			Eliminations			Consolidated
	(In thousands)
Sales and other revenues	$	494		$	20,043,335		$	174	$	—		$	20,044,003		$	288,501		$	(241,780	)	$	20,090,724
Operating costs and expenses:
Cost of products sold	—			16,078,948			—		—			16,078,948			—			(238,305		)	15,840,643
Operating expenses	—			906,098			—		—			906,098			89,395			(527		)	994,966
General and administrative	118,860			1,519			128		—			120,507			7,594			—			128,101
Depreciation and amortization	4,172			181,735			—		—			185,907			57,789			(828		)	242,868
Total operating costs and expenses	123,032			17,168,300			128		—			17,291,460			154,778			(239,660		)	17,206,578
Income (loss) from operations	(122,538		)	2,875,035			46		—			2,752,543			133,723			(2,120		)	2,884,146
Other income (expense):
Earnings of equity method investments	2,921,077			49,347			49,066		(2,970,865		)	48,625			3,364			(49,066		)	2,923
Interest income (expense)	(41,564		)	(3,631		)	676		—			(44,519		)	(57,219		)	2,338			(99,400		)
Gain on sale of marketable securities	—			326			—		—			326			—			—			326
	2,879,513			46,042			49,742		(2,970,865		)	4,432			(53,855		)	(46,728		)	(96,151		)
Income before income taxes	2,756,975			2,921,077			49,788		(2,970,865		)	2,756,975			79,868			(48,848		)	2,787,995
Income tax provision	1,027,591			—			—		—			1,027,591			371			—			1,027,962
Net income	1,729,384			2,921,077			49,788		(2,970,865		)	1,729,384			79,497			(48,848		)	1,760,033
Less net income attributable to noncontrolling interest	—			—			—		—			—			32,861			—			32,861
Net income attributable to HollyFrontier stockholders	$	1,729,384		$	2,921,077		$	49,788	$	(2,970,865	)	$	1,729,384		$	46,636		$	(48,848	)	$	1,727,172
Comprehensive income attributable to HollyFrontier stockholders	$	1,835,488		$	2,727,854		$	49,788	$	(2,970,865	)	$	1,642,265		$	47,457		$	(48,848	)	$	1,640,874

Condensed Consolidating Statement of Income and Comprehensive Income
Year Ended December 31, 2011	Parent			Guarantor Restricted Subsidiaries			Non- Guarantor Restricted Subsidiaries			Eliminations			HollyFrontier Corp. Before Consolidation of HEP			Non-Guarantor Non-Restricted Subsidiaries (HEP Segment)			Eliminations			Consolidated
	(In thousands)
Sales and other revenues	$	1,008		$	15,392,446		$	74		$	—		$	15,393,528		$	212,995		$	(166,995	)	$	15,439,528
Operating costs and expenses:
Cost of products sold	—			12,844,333			—			—			12,844,333			—			(164,255		)	12,680,078
Operating expenses	—			687,381			(362		)	—			687,019			63,029			(1,967		)	748,081
General and administrative	111,093			2,445			—			—			113,538			6,576			—			120,114
Depreciation and amortization	4,165			123,082			—			—			127,247			33,288			(828		)	159,707
Total operating costs and expenses	115,258			13,657,241			(362		)	—			13,772,137			102,893			(167,050		)	13,707,980
Income (loss) from operations	(114,250		)	1,735,205			436			—			1,621,391			110,102			55			1,731,548
Other income (expense):
Earnings of equity method investments	1,771,022			38,546			38,308			(1,809,820		)	38,056			2,552			(38,308		)	2,300
Interest income (expense)	(38,619		)	(2,729		)	54			—			(41,294		)	(38,209		)	2,464			(77,039		)
Merger transaction costs	(15,114		)	—			—			—			(15,114		)	—			—			(15,114		)
	1,717,289			35,817			38,362			(1,809,820		)	(18,352		)	(35,657		)	(35,844		)	(89,853		)
Income before income taxes	1,603,039			1,771,022			38,798			(1,809,820		)	1,603,039			74,445			(35,789		)	1,641,695
Income tax provision	581,757			—			—			—			581,757			234			—			581,991
Net income	1,021,282			1,771,022			38,798			(1,809,820		)	1,021,282			74,211			(35,789		)	1,059,704
Less net income attributable to noncontrolling interest	—			—			—			—			—			36,307			—			36,307
Net income attributable to HollyFrontier stockholders	$	1,021,282		$	1,771,022		$	38,798		$	(1,809,820	)	$	1,021,282		$	37,904		$	(35,789	)	$	1,023,397
Comprehensive income attributable to HollyFrontier stockholders	$	1,018,650		$	1,876,788		$	38,798		$	(1,809,820	)	$	1,124,416		$	38,651		$	(35,789	)	$	1,127,278

Condensed Consolidating Statement of Income and Comprehensive Income
Year Ended December 31, 2010	Parent			Guarantor Restricted Subsidiaries			Non- Guarantor Restricted Subsidiaries			Eliminations			HollyFrontier Corp. Before Consolidation of HEP			Non-Guarantor Non-Restricted Subsidiaries (HEP Segment)			Eliminations			Consolidated
	(In thousands)
Sales and other revenues	$	412		$	8,287,000		$	—		$	—		$	8,287,412		$	182,093		$	(146,576	)	$	8,322,929
Operating costs and expenses:
Cost of products sold	—			7,510,357			—			—			7,510,357			—			(143,208		)	7,367,149
Operating expenses	2,411			449,349			2			—			451,762			53,138			(486		)	504,414
General and administrative	62,130			990			—			—			63,120			7,719			—			70,839
Depreciation and amortization	3,745			85,517			—			—			89,262			28,949			(682		)	117,529
Total operating costs and expenses	68,286			8,046,213			2			—			8,114,501			89,806			(144,376		)	8,059,931
Income (loss) from operations	(67,874		)	240,787			(2		)	—			172,911			92,287			(2,200		)	262,998
Other income (expense):
Earnings of equity method investments	265,367			30,036			29,998			(295,403		)	29,998			2,393			(29,998		)	2,393
Interest income (expense)	(33,838		)	(5,456		)	40			—			(39,254		)	(36,240		)	2,466			(73,028		)
	231,529			24,580			30,038			(295,403		)	(9,256		)	(33,847		)	(27,532		)	(70,635		)
Income before income taxes	163,655			265,367			30,036			(295,403		)	163,655			58,440			(29,732		)	192,363
Income tax provision	59,016			—			—			—			59,016			296			—			59,312
Net income	104,639			265,367			30,036			(295,403		)	104,639			58,144			(29,732		)	133,051
Less net income attributable to noncontrolling interest	—			—			—			—			—			29,087			—			29,087
Net income attributable to HollyFrontier stockholders	$	104,639		$	265,367		$	30,036		$	(295,403	)	$	104,639		$	29,057		$	(29,732	)	$	103,964
Comprehensive income attributable to HollyFrontier stockholders	$	103,279		$	265,443		$	30,036		$	(295,403	)	$	103,355		$	29,795		$	(29,732	)	$	103,418

Condensed Consolidating Statement of Cash Flows
Year Ended December 31, 2012	Parent			Guarantor Restricted Subsidiaries			Non- Guarantor Restricted Subsidiaries			HollyFrontier Corp. Before Consolidation of HEP			Non-Guarantor Non-Restricted Subsidiaries (HEP Segment)			Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities	$	1,596,358		$	(33,004	)	$	1,286		$	1,564,640		$	162,036		$	(63,989	)	$	1,662,687
Cash flows from investing activities
Additions to properties, plants and equip	(7,965		)	(282,369		)	—			(290,334		)	—			—			(290,334		)
Additions to properties, plants and equip – HEP	—			—			—			—			(44,929		)	—			(44,929		)
Investment in Sabine Biofuels	—			(2,000		)	—			(2,000		)	—			—			(2,000		)
Purchases of marketable securities	(671,552		)	—			—			(671,552		)	—			—			(671,552		)
Sales and maturities of marketable securities	296,780			931			—			297,711			—			—			297,711
	(382,737		)	(283,438		)	—			(666,175		)	(44,929		)	—			(711,104		)
Cash flows from financing activities
Net borrowings under credit agreement – HEP	—			—			—			—			221,000			—			221,000
Repayment of promissory notes	—			72,900			—			72,900			(72,900		)	—			—
Net proceeds from issuance of senior notes - HEP	—			—			—			—			294,750			—			294,750
Principal tender on senior notes	(205,000		)	—			—			(205,000		)	—			—			(205,000		)
Principal tender on senior notes - HEP	—			—			—			—			(185,000		)	—			(185,000		)
Purchase of treasury stock	(209,600		)	—			—			(209,600		)	—			—			(209,600		)
Structured stock repurchase agreement	8,620			—			—			8,620			—			—			8,620
Contribution from joint venture partner	—			—			—			—			6,000			—			6,000
Contribution from general partner	—			(9,000		)	(1,286		)	(10,286		)	10,286			—			—
Distribution from HEP upon UNEV transfer	—			260,922			—			260,922			(260,922		)	—			—
Dividends	(658,085		)	—			—			(658,085		)	—			—			(658,085		)
Distributions to noncontrolling interest	—			—			—			—			(122,777		)	63,989			(58,788		)
Excess tax benefit from equity-based compensation	23,361			—			—			23,361			—			—			23,361
Purchase of units for incentive grants - HEP	—			—			—			—			(5,240		)	—			(5,240		)
Deferred financing costs	—			(67		)	—			(67		)	(3,238		)	—			(3,305		)
Other	—			(1,303		)	—			(1,303		)	(198		)	—			(1,501		)
	(1,040,704		)	323,452			(1,286		)	(718,538		)	(118,239		)	63,989			(772,788		)
Cash and cash equivalents
Increase (decrease) for the period	172,917			7,010			—			179,927			(1,132		)	—			178,795
Beginning of period	1,575,891			(3,358		)	2			1,572,535			6,369			—			1,578,904
End of period	$	1,748,808		$	3,652		$	2		$	1,752,462		$	5,237		$	—		$	1,757,699

Condensed Consolidating Statement of Cash Flows
Year Ended December 31, 2011	Parent			Guarantor Restricted Subsidiaries			Non- Guarantor Restricted Subsidiaries			HollyFrontier Corp. Before Consolidation of HEP			Non-Guarantor Non-Restricted Subsidiaries (HEP Segment)			Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities	$	1,933,208		$	(669,379	)	$	5,887		$	1,269,716		$	108,948		$	(40,273	)	$	1,338,391
Cash flows from investing activities:
Additions to properties, plants and equip	(7,585		)	(150,441		)	—			(158,026		)	—			—			(158,026		)
Additions to properties, plants and equip – HEP	—			—			—			—			(216,215		)	—			(216,215		)
Increase in cash due to merger with Frontier	182			872,557			—			872,739			—			—			872,739
Investment in Sabine Biofuels	(9,125		)	—			—			(9,125		)	—			—			(9,125		)
Purchases of marketable securities	(561,899		)	—			—			(561,899		)	—			—			(561,899		)
Sales and maturities of marketable securities	301,020			—			—			301,020			—			—			301,020
	(277,407		)	722,116			—			444,709			(216,215		)	—			228,494
Cash flows from financing activities:
Net borrowings under credit agreement – HEP	—			—			—			—			41,000			—			41,000
Repayments of promissory notes	—			77,100			—			77,100			(77,100		)	—			—
Proceeds from issuance of common units – HEP	—			—			—			—			75,815			—			75,815
Purchase of treasury stock	(42,795		)	—			—			(42,795		)	—			—			(42,795		)
Principal tender on senior notes – HFC	(8,203		)	—			—			(8,203		)	—			—			(8,203		)
Contribution to HEP	—			(123,000		)	(5,887		)	(128,887		)	128,887			—			—
Contribution from UNEV joint venture partner	—			—			—			—			33,500			—			33,500
Dividends	(252,133		)	—			—			(252,133		)	—			—			(252,133		)
Distributions to noncontrolling interest	—			—			—			—			(91,506		)	40,632			(50,874		)
Excess tax benefit from equity-based compensation	1,804			—			—			1,804			—			—			1,804
Purchase of units for restricted grants - HEP	—			—			—			—			(1,641		)	—			(1,641		)
Deferred financing costs	(8,665		)	—			—			(8,665		)	(3,150		)	—			(11,815		)
Other	—			(1,160		)	—			(1,160		)	(221		)	(359		)	(1,740		)
	(309,992		)	(47,060		)	(5,887		)	(362,939		)	105,584			40,273			(217,082		)
Cash and cash equivalents
Increase (decrease) for the period:	1,345,809			5,677			—			1,351,486			(1,683		)	—			1,349,803
Beginning of period	230,082			(9,035		)	2			221,049			8,052			—			229,101
End of period	$	1,575,891		$	(3,358	)	$	2		$	1,572,535		$	6,369		$	—		$	1,578,904

Condensed Consolidating Statement of Cash Flows
Year Ended December 31, 2010	Parent			Guarantor Restricted Subsidiaries			Non- Guarantor Restricted Subsidiaries		HollyFrontier Corp. Before Consolidation of HEP			Non-Guarantor Non-Restricted Subsidiaries (HEP Segment)			Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities	$	140,934		$	70,949		$	—	$	211,883		$	107,721		$	(36,349	)	$	283,255
Cash flows from investing activities:
Additions to properties, plants and equip	(1,573		)	(102,149		)	—		(103,722		)	—			—			(103,722		)
Additions to properties, plants and equip – HEP	—			—			—		—			(109,510		)	—			(109,510		)
Proceeds from sale of assets	—			39,040			—		39,040			(39,040		)	—			—
	(1,573		)	(63,109		)	—		(64,682		)	(148,550		)	—			(213,232		)
Cash flows from financing activities:
Net repayments under credit agreement – HEP	—			—			—		—			(47,000		)	—			(47,000		)
Proceeds from issuance of senior notes – HEP	—			—			—		—			147,540			—			147,540
Purchase of treasury stock	(1,368		)	—			—		(1,368		)	—			—			(1,368		)
Contribution to HEP	—			(57,000		)	—		(57,000		)	57,000			—			—
Contribution from UNEV joint venture partner	—			—			—		—			23,500			—			23,500
Dividends	(31,868		)	—			—		(31,868		)	—			—			(31,868		)
Purchase price in excess of transferred basis in assets	—			54,046			—		54,046			(54,046		)	—			—
Distributions to noncontrolling interest	—			—			—		—			(84,426		)	35,933			(48,493		)
Excess tax benefit from equity-based compensation	(1,094		)	—			—		(1,094		)	—			—			(1,094		)
Purchase of units for restricted grants - HEP	—			—			—		—			(2,704		)	—			(2,704		)
Deferred financing costs	(2,627		)	—			—		(2,627		)	(494		)	—			(3,121		)
Other	118			(1,444		)	—		(1,326		)	—			416			(910		)
	(36,839		)	(4,398		)	—		(41,237		)	39,370			36,349			34,482
Cash and cash equivalents
Increase (decrease) for the period:	102,522			3,442			—		105,964			(1,459		)	—			104,505
Beginning of period	127,560			(12,477		)	2		115,085			9,511			—			124,596
End of period	$	230,082		$	(9,035	)	$	2	$	221,049		$	8,052		$	—		$	229,101