Supplemental Guarantor/Non-Guarantor Financial Information

3 Months Ended

Mar. 31, 2013

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 39% ownership interest at March 31, 2013, 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 for the three months ended March 31, 2012 to include the UNEV Pipeline operations as a consolidated subsidiary of HEP. UNEV was previously presented as a Non-Guarantor Restricted Subsidiary.

Condensed Consolidating Balance Sheet
March 31, 2013	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	$	1,854,247		$	—	$	2	$	—		$	1,854,249	$	18,193	$	—		$	1,872,442
Marketable securities	665,685			9		—		—			665,694		—		—			665,694
Accounts receivable, net	4,766			650,601		7,763		—			663,130		37,129		(43,735		)	656,524
Intercompany accounts receivable (payable)	(765,537		)	499,248		266,289		—			—		—		—			—
Inventories	—			1,469,309		—		—			1,469,309		1,491		—			1,470,800
Income taxes receivable	37,904			—		—		—			37,904		—		—			37,904
Prepayments and other	22,859			39,266		—		—			62,125		1,984		(4,163		)	59,946
Total current assets	1,819,924			2,658,433		274,054		—			4,752,411		58,797		(47,898		)	4,763,310
Properties, plants and equip, net	25,019			2,468,535		—		—			2,493,554		1,005,577		(284,933		)	3,214,198
Marketable securities (long-term)	5,000			—		—		—			5,000		—		—			5,000
Investment in subsidiaries	5,909,650			175,693		—		(6,085,343		)	—		—		—			—
Intangibles and other assets	17,096			2,334,619		40,418		(25,000		)	2,367,133		363,998		(17,467		)	2,713,664
Total assets	$	7,776,689		$	7,637,280	$	314,472	$	(6,110,343	)	$	9,618,098	$	1,428,372	$	(350,298	)	$	10,696,172
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	68,099		$	1,294,946	$	—	$	—		$	1,363,045	$	12,346	$	(35,972	)	$	1,339,419
Income taxes payable	151,403			—		—		—			151,403		—		—			151,403
Accrued liabilities	52,552			63,281		1,200		—			117,033		14,135		(4,163		)	127,005
Deferred income tax liabilities	149,127			—		—		—			149,127		—		—			149,127
Total current liabilities	421,181			1,358,227		1,200		—			1,780,608		26,481		(40,135		)	1,766,954
Long-term debt	460,374			35,958		—		(25,000		)	471,332		811,913		—			1,283,245
Liability to HEP	—			254,789		—		—			254,789		—		(254,789		)	—
Deferred income tax liabilities	549,151			—		—		—			549,151		4,951		—			554,102
Other long-term liabilities	57,168			78,656		—		—			135,824		30,193		(3,193		)	162,824
Investment in HEP	—			—		137,579		—			137,579		—		(137,579		)	—
Equity – HollyFrontier	6,288,815			5,909,650		175,693		(6,085,343		)	6,288,815		453,256		(456,278		)	6,285,793
Equity – noncontrolling interest	—			—		—		—			—		101,578		541,676			643,254
Total liabilities and equity	$	7,776,689		$	7,637,280	$	314,472	$	(6,110,343	)	$	9,618,098	$	1,428,372	$	(350,298	)	$	10,696,172

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 Statement of Income and Comprehensive Income
Three Months Ended March 31, 2013	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	$	531		$	4,692,426	$	32		$	—		$	4,692,989		$	76,484		$	(61,684	)	$	4,707,789
Operating costs and expenses:
Cost of products sold	—			3,853,128		(92		)	133			3,853,169			—			(60,634		)	3,792,535
Operating expenses	—			239,423		(19		)	—			239,404			26,029			(334		)	265,099
General and administrative	24,131			1,775		60			—			25,966			3,232			—			29,198
Depreciation and amortization	926			60,620		—			—			61,546			13,749			(3,533		)	71,762
Total operating costs and expenses	25,057			4,154,946		(51		)	133			4,180,085			43,010			(64,501		)	4,158,594
Income (loss) from operations	(24,526		)	537,480		83			(133		)	512,904			33,474			2,817			549,195
Other income (expense):
Earnings of equity method investments	550,891			11,614		11,992			(563,103		)	11,394			657			(11,992		)	59
Interest income (expense)	(7,221		)	1,797		137			152			(5,135		)	(12,382		)	(2,272		)	(19,789		)
	543,670			13,411		12,129			(562,951		)	6,259			(11,725		)	(14,264		)	(19,730		)
Income before income taxes	519,144			550,891		12,212			(563,084		)	519,163			21,749			(11,447		)	529,465
Income tax provision	186,039			—		—			—			186,039			55			—			186,094
Net income	333,105			550,891		12,212			(563,084		)	333,124			21,694			(11,447		)	343,371
Less net income attributable to noncontrolling interest	—			—		—			—			—			2,890			6,812			9,702
Net income attributable to HollyFrontier stockholders	$	333,105		$	550,891	$	12,212		$	(563,084	)	$	333,124		$	18,804		$	(18,259	)	$	333,669
Comprehensive income attributable to HollyFrontier stockholders	$	344,864		$	568,396	$	12,831		$	(581,208	)	$	344,883		$	19,423		$	(18,878	)	$	345,428

Condensed Consolidating Statement of Income and Comprehensive Income
Three Months Ended March 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	$	99		$	4,919,737	$	57	$	—		$	4,919,893		$	67,577		$	(55,732	)	$	4,931,738
Operating costs and expenses:
Cost of products sold	—			4,241,301		—		491			4,241,792			—			(54,875		)	4,186,917
Operating expenses	—			222,115		—		(385		)	221,730			20,030			(133		)	241,627
General and administrative	24,973			501		15		—			25,489			2,039			—			27,528
Depreciation and amortization	1,103			45,174		—		—			46,277			13,395			(3,570		)	56,102
Total operating costs and expenses	26,076			4,509,091		15		106			4,535,288			35,464			(58,578		)	4,512,174
Income (loss) from operations	(25,977		)	410,646		42		(106		)	384,605			32,113			2,846			419,564
Other income (expense):
Earnings of equity method investments	421,061			8,502		8,375		(429,677		)	8,261			831			(8,375		)	717
Interest income (expense)	(14,023		)	1,913		199		504			(11,407		)	(19,170		)	(2,278		)	(32,855		)
	407,038			10,415		8,574		(429,173		)	(3,146		)	(18,339		)	(10,653		)	(32,138		)
Income before income taxes	381,061			421,061		8,616		(429,279		)	381,459			13,774			(7,807		)	387,426
Income tax provision	140,331			—		—		—			140,331			75			—			140,406
Net income	240,730			421,061		8,616		(429,279		)	241,128			13,699			(7,807		)	247,020
Less net income attributable to noncontrolling interest	—			—		—		—			—			(557		)	5,881			5,324
Net income attributable to HollyFrontier stockholders	$	240,730		$	421,061	$	8,616	$	(429,279	)	$	241,128		$	14,256		$	(13,688	)	$	241,696
Comprehensive income attributable to HollyFrontier stockholders	$	145,436		$	264,909	$	9,000	$	(273,511	)	$	145,834		$	14,640		$	(14,072	)	$	146,402

Condensed Consolidating Statement of Cash Flows
Three Months Ended March 31, 2013	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	$	176,731		$	58,316		$	1,499		$	236,546		$	29,438		$	(17,421	)	$	248,563
Cash flows from investing activities
Additions to properties, plants and equip	(1,736		)	(65,215		)	—			(66,951		)	—			—			(66,951		)
Additions to properties, plants and equip – HEP	—			—			—			—			(5,013		)	—			(5,013		)
Proceeds from sale of property	—			—			—			—			2,290			—			2,290
Purchases of marketable securities	(178,251		)	—			—			(178,251		)	—			—			(178,251		)
Sales and maturities of marketable securities	143,280			—			—			143,280			—			—			143,280
	(36,707		)	(65,215		)	—			(101,922		)	(2,723		)	—			(104,645		)
Cash flows from financing activities
Net repayments under credit agreement – HEP	—			—			—			—			(53,000		)	—			(53,000		)
Proceeds from sale of HEP common units	73,444			—			—			73,444			—			—			73,444
Proceeds from common unit offerings - HEP	—			—			—			—			73,444			—			73,444
Purchase of treasury stock	(6,610		)	—			—			(6,610		)	—			—			(6,610		)
Contribution from general partner	—			—			(1,499		)	(1,499		)	1,499			—			—
Dividends	(102,163		)	—			—			(102,163		)	—			—			(102,163		)
Distributions to noncontrolling interest	—			—			—			—			(32,709		)	17,421			(15,288		)
Excess tax benefit from equity-based compensation	744			—			—			744			—			—			744
Purchase of units for incentive grants - HEP	—			—			—			—			(2,719		)	—			(2,719		)
Other	—			3,247			—			3,247			(274		)	—			2,973
	(34,585		)	3,247			(1,499		)	(32,837		)	(13,759		)	17,421			(29,175		)
Cash and cash equivalents
Increase (decrease) for the period	105,439			(3,652		)	—			101,787			12,956			—			114,743
Beginning of period	1,748,808			3,652			2			1,752,462			5,237			—			1,757,699
End of period	$	1,854,247		$	—		$	2		$	1,854,249		$	18,193		$	—		$	1,872,442

Condensed Consolidating Statement of Cash Flows
Three Months Ended March 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	$	253,124		$	(3,659	)	$	—	$	249,465		$	19,296		$	(14,856	)	$	253,905
Cash flows from investing activities:
Additions to properties, plants and equip	(1,019		)	(46,114		)	—		(47,133		)	—			—			(47,133		)
Additions to properties, plants and equip – HEP	—			—			—		—			(14,254		)	—			(14,254		)
Investment in Sabine Biofuels	—			(1,200		)	—		(1,200		)	—			—			(1,200		)
Purchases of marketable securities	(106,573		)	—			—		(106,573		)	—			—			(106,573		)
Sales and maturities of marketable securities	100,480			—			—		100,480			—			—			100,480
	(7,112		)	(47,314		)	—		(54,426		)	(14,254		)	—			(68,680		)
Cash flows from financing activities:
Net borrowings under credit agreement – HEP	—			—			—		—			(45,000		)	—			(45,000		)
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 - HEP	—			—			—		—			(157,761		)	—			(157,761		)
Purchase of treasury stock	(62,532		)	—			—		(62,532		)	—			—			(62,532		)
Contribution from joint venture partner	—			(9,000		)	—		(9,000		)	14,500			—			5,500
Dividends	(126,019		)	—			—		(126,019		)	—			—			(126,019		)
Distributions to noncontrolling interest	—			—			—		—			(29,716		)	15,325			(14,391		)
Excess tax benefit from equity-based compensation	3,792			—			—		3,792			—			—			3,792
Purchase of units for restricted grants - HEP	—			—			—		—			(1,283		)	—			(1,283		)
Deferred financing costs	—			—			—		—			(1,123		)	—			(1,123		)
Other	—			(313		)	—		(313		)	270			(469		)	(512		)
	(184,759		)	63,587			—		(121,172		)	1,737			14,856			(104,579		)
Cash and cash equivalents
Increase (decrease) for the period:	61,253			12,614			—		73,867			6,779			—			80,646
Beginning of period	1,575,891			(3,358		)	2		1,572,535			6,369			—			1,578,904
End of period	$	1,637,144		$	9,256		$	2	$	1,646,402		$	13,148		$	—		$	1,659,550