Supplemental Guarantor/Non-Guarantor Financial Information

6 Months Ended

Jun. 30, 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 June 30, 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 and six months ended June 30, 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
June 30, 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	$	1,333,604		$	7,098	$	2	$	—		$	1,340,704	$	8,716	$	—		$	1,349,420
Marketable securities	632,706			9		—		—			632,715		—		—			632,715
Accounts receivable, net	7,188			760,043		11,202		—			778,433		36,121		(43,749		)	770,805
Intercompany accounts receivable (payable)	(1,158,007		)	877,163		280,844		—			—		—		—			—
Inventories	—			1,548,660		—		—			1,548,660		1,783		—			1,550,443
Income taxes receivable	62,431			—		—		—			62,431		—		—			62,431
Prepayments and other	15,169			70,142		—		—			85,311		2,531		(5,504		)	82,338
Total current assets	893,091			3,263,115		292,048		—			4,448,254		49,151		(49,253		)	4,448,152
Properties, plants and equip, net	26,909			2,509,329		—		—			2,536,238		1,002,957		(281,364		)	3,257,831
Marketable securities (long-term)	3,393			—		—		—			3,393		—		—			3,393
Investment in subsidiaries	6,399,298			192,104		—		(6,591,402		)	—		—		—			—
Intangibles and other assets	15,557			2,405,660		25,000		(25,000		)	2,421,217		365,194		(1,853		)	2,784,558
Total assets	$	7,338,248		$	8,370,208	$	317,048	$	(6,616,402	)	$	9,409,102	$	1,417,302	$	(332,470	)	$	10,493,934
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	76,278		$	1,539,237	$	—	$	—		$	1,615,515	$	13,720	$	(35,865	)	$	1,593,370
Income taxes payable	—			—		—		—			—		—		—			—
Accrued liabilities	50,167			64,369		1,394		—			115,930		24,607		(5,504		)	135,033
Deferred income tax liabilities	151,288			—		—		—			151,288		—		—			151,288
Total current liabilities	277,733			1,603,606		1,394		—			1,882,733		38,327		(41,369		)	1,879,691
Long-term debt	180,488			35,596		—		(25,000		)	191,084		799,152		—			990,236
Liability to HEP	—			251,764		—		—			251,764		—		(251,764		)	—
Deferred income tax liabilities	574,580			—		—		—			574,580		5,287		—			579,867
Other long-term liabilities	37,045			79,944		—		—			116,989		30,770		(2,997		)	144,762
Investment in HEP	—			—		123,550		—			123,550		—		(123,550		)	—
Equity – HollyFrontier	6,268,402			6,399,298		192,104		(6,591,402		)	6,268,402		444,600		(447,569		)	6,265,433
Equity – noncontrolling interest	—			—		—		—			—		99,166		534,779			633,945
Total liabilities and equity	$	7,338,248		$	8,370,208	$	317,048	$	(6,616,402	)	$	9,409,102	$	1,417,302	$	(332,470	)	$	10,493,934

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 June 30, 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	$	100		$	5,286,984	$	31		$	—		$	5,287,115		$	75,121		$	(63,388	)	$	5,298,848
Operating costs and expenses:
Cost of products sold	—			4,518,737		92			282			4,519,111			—			(62,303		)	4,456,808
Operating expenses	—			255,874		19			—			255,893			22,010			(361		)	277,542
General and administrative	30,242			630		28			—			30,900			3,100			—			34,000
Depreciation and amortization	1,400			57,043		—			—			58,443			15,619			(3,570		)	70,492
Total operating costs and expenses	31,642			4,832,284		139			282			4,864,347			40,729			(66,234		)	4,838,842
Income (loss) from operations	(31,542		)	454,700		(108		)	(282		)	422,768			34,392			2,846			460,006
Other income (expense):
Earnings (loss) of equity method investments	469,228			12,592		14,401			(483,655		)	12,566			746			(14,401		)	(1,089		)
Interest income (expense)	(7,456		)	1,936		134			294			(5,092		)	(11,624		)	(2,300		)	(19,016		)
Loss on early extinguishment of debt	(22,109		)	—		—			—			(22,109		)	—			—			(22,109		)
	439,663			14,528		14,535			(483,361		)	(14,635		)	(10,878		)	(16,701		)	(42,214		)
Income before income taxes	408,121			469,228		14,427			(483,643		)	408,133			23,514			(13,855		)	417,792
Income tax provision	151,698			—		—			—			151,698			345			—			152,043
Net income	256,423			469,228		14,427			(483,643		)	256,435			23,169			(13,855		)	265,749
Less net income attributable to noncontrolling interest	—			—		—			—			—			1,130			7,638			8,768
Net income attributable to HollyFrontier stockholders	$	256,423		$	469,228	$	14,427		$	(483,643	)	$	256,435		$	22,039		$	(21,493	)	$	256,981
Comprehensive income attributable to HollyFrontier stockholders	$	286,296		$	489,146	$	15,900		$	(505,034	)	$	286,308		$	23,512		$	(22,966	)	$	286,854

Condensed Consolidating Statement of Income and Comprehensive Income
Three Months Ended June 30, 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	$	100		$	4,795,647	$	45	$	—		$	4,795,792		$	67,103		$	(56,214	)	$	4,806,681
Operating costs and expenses:
Cost of products sold	—			3,737,228		—		489			3,737,717			—			(55,953		)	3,681,764
Operating expenses	—			202,222		—		(336		)	201,886			20,371			469			222,726
General and administrative	29,451			138		31		—			29,620			2,486			—			32,106
Depreciation and amortization	876			47,325		—		—			48,201			12,317			(3,570		)	56,948
Total operating costs and expenses	30,327			3,986,913		31		153			4,017,424			35,174			(59,054		)	3,993,544
Income (loss) from operations	(30,227		)	808,734		14		(153		)	778,368			31,929			2,840			813,137
Other income (expense):
Earnings of equity method investments	822,160			11,395		11,114		(833,463		)	11,206			794			(11,114		)	886
Interest income (expense)	(13,424		)	1,705		175		224			(11,320		)	(12,664		)	(2,277		)	(26,261		)
Gain on sale of marketable equity securities	—			326		—		—			326			—			—			326
	808,736			13,426		11,289		(833,239		)	212			(11,870		)	(13,391		)	(25,049		)
Income before income taxes	778,509			822,160		11,303		(833,392		)	778,580			20,059			(10,551		)	788,088
Income tax provision	285,643			—		—		—			285,643			75			—			285,718
Net income	492,866			822,160		11,303		(833,392		)	492,937			19,984			(10,551		)	502,370
Less net income attributable to noncontrolling interest	—			—		—		—			—			(683		)	9,554			8,871
Net income attributable to HollyFrontier stockholders	$	492,866		$	822,160	$	11,303	$	(833,392	)	$	492,937		$	20,667		$	(20,105	)	$	493,499
Comprehensive income attributable to HollyFrontier stockholders	$	515,862		$	852,772	$	11,204	$	(863,905	)	$	515,933		$	20,568		$	(20,006	)	$	516,495

Condensed Consolidating Statement of Income and Comprehensive Income
Six Months Ended June 30, 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	$	631		$	9,979,410	$	63		$	—		$	9,980,104		$	151,605		$	(125,072	)	$	10,006,637
Operating costs and expenses:
Cost of products sold	—			8,371,865		—			415			8,372,280			—			(122,937		)	8,249,343
Operating expenses	—			495,297		—			—			495,297			48,039			(695		)	542,641
General and administrative	54,373			2,405		88			—			56,866			6,332			—			63,198
Depreciation and amortization	2,326			117,663		—			—			119,989			29,368			(7,103		)	142,254
Total operating costs and expenses	56,699			8,987,230		88			415			9,044,432			83,739			(130,735		)	8,997,436
Income (loss) from operations	(56,068		)	992,180		(25		)	(415		)	935,672			67,866			5,663			1,009,201
Other income (expense):
Earnings (loss) of equity method investments	1,020,119			24,206		26,393			(1,046,758		)	23,960			1,403			(26,393		)	(1,030		)
Interest income (expense)	(14,677		)	3,733		271			446			(10,227		)	(24,006		)	(4,572		)	(38,805		)
Loss on early extinguishment of debt	(22,109		)	—		—			—			(22,109		)	—			—			(22,109		)
	983,333			27,939		26,664			(1,046,312		)	(8,376		)	(22,603		)	(30,965		)	(61,944		)
Income before income taxes	927,265			1,020,119		26,639			(1,046,727		)	927,296			45,263			(25,302		)	947,257
Income tax provision	337,737			—		—			—			337,737			400			—			338,137
Net income	589,528			1,020,119		26,639			(1,046,727		)	589,559			44,863			(25,302		)	609,120
Less net income attributable to noncontrolling interest	—			—		—			—			—			4,020			14,450			18,470
Net income attributable to HollyFrontier stockholders	$	589,528		$	1,020,119	$	26,639		$	(1,046,727	)	$	589,559		$	40,843		$	(39,752	)	$	590,650
Comprehensive income attributable to HollyFrontier stockholders	$	631,160		$	1,057,542	$	28,731		$	(1,086,242	)	$	631,191		$	42,935		$	(41,844	)	$	632,282

Condensed Consolidating Statement of Income and Comprehensive Income
Six Months Ended June 30, 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	$	199		$	9,715,384	$	102	$	—		$	9,715,685		$	134,680		$	(111,946	)	$	9,738,419
Operating costs and expenses:
Cost of products sold	—			7,978,529		—		980			7,979,509			—			(110,828		)	7,868,681
Operating expenses	—			424,337		—		(721		)	423,616			40,401			336			464,353
General and administrative	54,424			639		46		—			55,109			4,525			—			59,634
Depreciation and amortization	1,979			92,499		—		—			94,478			25,712			(7,140		)	113,050
Total operating costs and expenses	56,403			8,496,004		46		259			8,552,712			70,638			(117,632		)	8,505,718
Income (loss) from operations	(56,204		)	1,219,380		56		(259		)	1,162,973			64,042			5,686			1,232,701
Other income (expense):
Earnings of equity method investments	1,243,221			19,897		19,489		(1,263,140		)	19,467			1,625			(19,489		)	1,603
Interest income (expense)	(27,447		)	3,618		374		728			(22,727		)	(31,834		)	(4,555		)	(59,116		)
Gain on sale of marketable securities	—			326		—		—			326			—			—			326
	1,215,774			23,841		19,863		(1,262,412		)	(2,934		)	(30,209		)	(24,044		)	(57,187		)
Income before income taxes	1,159,570			1,243,221		19,919		(1,262,671		)	1,160,039			33,833			(18,358		)	1,175,514
Income tax provision	425,974			—		—		—			425,974			150			—			426,124
Net income	733,596			1,243,221		19,919		(1,262,671		)	734,065			33,683			(18,358		)	749,390
Less net income attributable to noncontrolling interest	—			—		—		—			—			(1,240		)	15,435			14,195
Net income attributable to HollyFrontier stockholders	$	733,596		$	1,243,221	$	19,919	$	(1,262,671	)	$	734,065		$	34,923		$	(33,793	)	$	735,195
Comprehensive income attributable to HollyFrontier stockholders	$	661,298		$	1,117,681	$	20,204	$	(1,137,416	)	$	661,767		$	35,208		$	(34,078	)	$	662,897

Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 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	$	241,004		$	162,285		$	1,499		$	404,788		$	81,542		$	(34,815	)	$	451,515
Cash flows from investing activities
Additions to properties, plants and equip	(5,025		)	(148,917		)	—			(153,942		)	—			—			(153,942		)
Additions to properties, plants and equip – HEP	—			—			—			—			(16,861		)	—			(16,861		)
Proceeds from sale of property	—			3,321			—			3,321			2,481			—			5,802
Investment in Sabine Biofuels	—			(2,000		)	—			(2,000		)	—			—			(2,000		)
Advances to Sabine Biofuels	—			(13,700		)	—			(13,700		)	—			—			(13,700		)
Purchases of marketable securities	(399,154		)	—			—			(399,154		)	—			—			(399,154		)
Sales and maturities of marketable securities	398,762			—			—			398,762			—			—			398,762
	(5,417		)	(161,296		)	—			(166,713		)	(14,380		)	—			(181,093		)
Cash flows from financing activities
Net repayments under credit agreement – HEP	—			—			—			—			(66,000		)	—			(66,000		)
Redemption of senior notes - HFC	(286,812		)	—			—			(286,812		)	—			—			(286,812		)
Redemption premium on early extinguishment of debt	(14,161		)	—			—			(14,161		)	—			—			(14,161		)
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	(159,432		)	—			—			(159,432		)	—			—			(159,432		)
Contribution from general partner	—			—			(1,499		)	(1,499		)	1,499			—			—
Dividends	(264,867		)	—			—			(264,867		)	—			—			(264,867		)
Distributions to noncontrolling interest	—			—			—			—			(69,419		)	34,815			(34,604		)
Excess tax benefit from equity-based compensation	1,037			—			—			1,037			—			—			1,037
Purchase of units for incentive grants - HEP	—			—			—			—			(2,934		)	—			(2,934		)
Other	—			2,457			—			2,457			(273		)	—			2,184
	(650,791		)	2,457			(1,499		)	(649,833		)	(63,683		)	34,815			(678,701		)
Cash and cash equivalents
Increase (decrease) for the period	(415,204		)	3,446			—			(411,758		)	3,479			—			(408,279		)
Beginning of period	1,748,808			3,652			2			1,752,462			5,237			—			1,757,699
End of period	$	1,333,604		$	7,098		$	2		$	1,340,704		$	8,716		$	—		$	1,349,420

Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 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	$	347,534		$	45,516		$	—	$	393,050		$	67,011		$	(30,558	)	$	429,503
Cash flows from investing activities:
Additions to properties, plants and equip	(1,679		)	(102,722		)	—		(104,401		)	—			—			(104,401		)
Additions to properties, plants and equip – HEP	—			—			—		—			(23,619		)	—			(23,619		)
Investment in Sabine Biofuels	—			(2,000		)	—		(2,000		)	—			—			(2,000		)
Purchases of marketable securities	(166,429		)	—			—		(166,429		)	—			—			(166,429		)
Sales and maturities of marketable securities	151,066			930			—		151,996			—			—			151,996
	(17,042		)	(103,792		)	—		(120,834		)	(23,619		)	—			(144,453		)
Cash flows from financing activities:
Net borrowings under credit agreement – HEP	—			—			—		—			(30,000		)	—			(30,000		)
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 - HFC	(5,000		)	—			—		(5,000		)	—			—			(5,000		)
Principal tender on senior notes - HEP	—			—			—		—			(185,000		)	—			(185,000		)
Purchase of treasury stock	(189,771		)	—			—		(189,771		)	—			—			(189,771		)
Structured stock repurchase arrangement	(100,000		)	—			—		(100,000		)	—			—			(100,000		)
Contribution to HEP	—			(9,000		)	—		(9,000		)	9,000			—			—
Contribution from joint venture partner	—			—			—		—			6,000			—			6,000
Dividends	(249,958		)	—			—		(249,958		)	—			—			(249,958		)
Distributions to noncontrolling interest	—			—			—		—			(59,977		)	31,033			(28,944		)
Excess tax benefit from equity-based compensation	4,762			—			—		4,762			—			—			4,762
Purchase of units for restricted grants - HEP	—			—			—		—			(4,533		)	—			(4,533		)
Deferred financing costs	—			(67		)	—		(67		)	(3,162		)	—			(3,229		)
Other	—			(635		)	—		(635		)	277			(475		)	(833		)
	(539,967		)	63,198			—		(476,769		)	(45,545		)	30,558			(491,756		)
Cash and cash equivalents
Increase (decrease) for the period:	(209,475		)	4,922			—		(204,553		)	(2,153		)	—			(206,706		)
Beginning of period	1,575,891			(3,358		)	2		1,572,535			6,369			—			1,578,904
End of period	$	1,366,416		$	1,564		$	2	$	1,367,982		$	4,216		$	—		$	1,372,198