Supplemental Guarantor/Non-Guarantor Financial Information

6 Months Ended

Jun. 30, 2015

Supplemental Guarantor / Non-Guarantor Financial Information [Abstract]

Supplemental Guarantor/Non-Guarantor Financial Information

Supplemental Guarantor/Non-Guarantor Financial Information

Any borrowings pursuant to the HollyFrontier Credit Agreement are recourse to HollyFrontier and guaranteed by certain of our wholly-owned subsidiaries (“Guarantor Restricted Subsidiaries”). HEP, in which we have a 39% ownership interest at June 30, 2015, 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.”

Condensed Consolidating Balance Sheet
June 30, 2015	Parent		Guarantor Restricted Subsidiaries		Non- Guarantor Restricted Subsidiaries		Eliminations			HollyFrontier Corp. Before Consolidation of HEP		Non-Guarantor Non-Restricted Subsidiaries (HEP Segment)		Consolidations and Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	222,905	$	—	$	30	$	—		$	222,935	$	10,424	$	—		$	233,359
Marketable securities	392,859		—		—		—			392,859		—		—			392,859
Accounts receivable, net	8,171		611,393		3,068		—			622,632		40,044		(36,569		)	626,107
Intercompany accounts receivable	—		718,610		442,187		(1,160,797		)	—		—		—			—
Inventories	—		1,187,984		—		—			1,187,984		1,934		—			1,189,918
Income taxes receivable	8,351		—		—		—			8,351		—		—			8,351
Prepayments and other	13,363		59,273		—		—			72,636		2,804		(6,495		)	68,945
Total current assets	645,649		2,577,260		445,285		(1,160,797		)	2,507,397		55,206		(43,064		)	2,519,539
Properties, plants and equip, net	34,079		3,043,121		949		—			3,078,149		1,042,975		(252,729		)	3,868,395
Investment in subsidiaries	6,868,051		335,342		—		(7,203,393		)	—		—		—			—
Intangibles and other assets	29,262		2,371,616		25,000		(25,000		)	2,400,878		360,888		(4,414		)	2,757,352
Total assets	$	7,577,041	$	8,327,339	$	471,234	$	(8,389,190	)	$	7,986,424	$	1,459,069	$	(300,207	)	$	9,145,286
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	3,543	$	1,067,290	$	—	$	—		$	1,070,833	$	16,128	$	(36,569	)	$	1,050,392
Intercompany accounts payable	1,160,797		—		—		(1,160,797		)	—		—		—			—
Income tax payable	7,569		—		—		—			7,569		—		—			7,569
Accrued liabilities	41,886		50,843		1,127		—			93,856		25,885		(6,495		)	113,246
Deferred income tax liabilities	69,284		—		—		—			69,284		—		—			69,284
Total current liabilities	1,283,079		1,118,133		1,127		(1,160,797		)	1,241,542		42,013		(43,064		)	1,240,491
Long-term debt	25,000		32,257		—		(25,000		)	32,257		900,905		—			933,162
Liability to HEP	—		227,304		—		—			227,304		—		(227,304		)	—
Deferred income tax liabilities	627,205		—		—		—			627,205		332		—			627,537
Other long-term liabilities	43,822		81,594		—		—			125,416		56,283		(5,558		)	176,141
Investment in HEP	—		—		134,765		—			134,765		—		(134,765		)	—
Equity – HollyFrontier	5,597,935		6,868,051		335,342		(7,203,393		)	5,597,935		365,071		(359,947		)	5,603,059
Equity – noncontrolling interest	—		—		—		—			—		94,465		470,431			564,896
Total liabilities and equity	$	7,577,041	$	8,327,339	$	471,234	$	(8,389,190	)	$	7,986,424	$	1,459,069	$	(300,207	)	$	9,145,286

Condensed Consolidating Balance Sheet
December 31, 2014	Parent		Guarantor Restricted Subsidiaries		Non- Guarantor Restricted Subsidiaries		Eliminations			HollyFrontier Corp. Before Consolidation of HEP		Non-Guarantor Non-Restricted Subsidiaries (HEP Segment)		Consolidations and Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	565,080	$	—	$	75	$	—		$	565,155	$	2,830	$	—		$	567,985
Marketable securities	474,068		42		—		—			474,110		—		—			474,110
Accounts receivable, net	5,107		579,526		3,774		—			588,407		40,129		(38,631		)	589,905
Intercompany accounts receivable	—		171,341		397,540		(568,881		)	—		—		—			—
Inventories	—		1,033,191		—		—			1,033,191		1,940		—			1,035,131
Income taxes receivable	11,719		—		—		—			11,719		—		—			11,719
Prepayments and other	14,734		95,194		—		—			109,928		2,443		(8,223		)	104,148
Total current assets	1,070,708		1,879,294		401,389		(568,881		)	2,782,510		47,342		(46,854		)	2,782,998
Properties, plants and equip, net	31,808		2,873,350		902		—			2,906,060		1,024,311		(259,832		)	3,670,539
Investment in subsidiaries	5,912,233		291,912		—		(6,204,145		)	—		—		—			—
Intangibles and other assets	30,082		2,388,844		25,000		(25,000		)	2,418,926		362,919		(4,742		)	2,777,103
Total assets	$	7,044,831	$	7,433,400	$	427,291	$	(6,798,026	)	$	8,107,496	$	1,434,572	$	(311,428	)	$	9,230,640
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	11,457	$	1,117,429	$	2	$	—		$	1,128,888	$	17,881	$	(38,631	)	$	1,108,138
Intercompany accounts payable	568,881		—		—		(568,881		)	—		—		—			—
Income taxes payable	19,642		—		—		—			19,642		—		—			19,642
Accrued liabilities	41,403		45,331		1,382		—			88,116		26,321		(8,223		)	106,214
Deferred income tax liabilities	17,409		—		—		—			17,409		—		—			17,409
Total current liabilities	658,792		1,162,760		1,384		(568,881		)	1,254,055		44,202		(46,854		)	1,251,403
Long-term debt	179,144		33,167		—		(25,000		)	187,311		867,579		—			1,054,890
Liability to HEP	—		233,217		—		—			233,217		—		(233,217		)	—
Deferred income tax liabilities	646,503		—		—		—			646,503		367		—			646,870
Other long-term liabilities	43,451		92,023		—		—			135,474		47,170		(5,886		)	176,758
Investment in HEP	—		—		133,995		—			133,995		—		(133,995		)	—
Equity – HollyFrontier	5,516,941		5,912,233		291,912		(6,204,145		)	5,516,941		380,172		(373,529		)	5,523,584
Equity – noncontrolling interest	—		—		—		—			—		95,082		482,053			577,135
Total liabilities and equity	$	7,044,831	$	7,433,400	$	427,291	$	(6,798,026	)	$	8,107,496	$	1,434,572	$	(311,428	)	$	9,230,640

Condensed Consolidating Statement of Income and Comprehensive Income
Three Months Ended June 30, 2015	Parent			Guarantor Restricted Subsidiaries			Non- Guarantor Restricted Subsidiaries			Eliminations			HollyFrontier Corp. Before Consolidation of HEP			Non-Guarantor Non-Restricted Subsidiaries (HEP Segment)			Consolidations and Eliminations			Consolidated
	(In thousands)
Sales and other revenues	$	168		$	3,686,476		$	—		$	—		$	3,686,644		$	83,479		$	(68,211	)	$	3,701,912
Operating costs and expenses:
Cost of products sold	—			2,954,989			—			—			2,954,989			—			(67,514		)	2,887,475
Lower of cost or market inventory valuation adjustment	—			(135,480		)	—			—			(135,480		)	—			—			(135,480		)
Operating expenses	—			220,790			—			—			220,790			25,289			86			246,165
General and administrative	22,808			571			42			—			23,421			2,696			—			26,117
Depreciation and amortization	2,582			74,120			8			—			76,710			14,660			(3,567		)	87,803
Total operating costs and expenses	25,390			3,114,990			50			—			3,140,430			42,645			(70,995		)	3,112,080
Income (loss) from operations	(25,222		)	571,486			(50		)	—			546,214			40,834			2,784			589,832
Other income (expense):
Earnings (loss) of equity method investments	593,825			20,334			20,175			(614,159		)	20,175			631			(20,175		)	631
Interest income (expense)	(537		)	1,918			199			—			1,580			(9,053		)	(2,318		)	(9,791		)
Loss on early extinguishment of debt	(1,368		)	—			—			—			(1,368		)	—			—			(1,368		)
Gain on sale of assets	714			87			—			—			801			72			—			873
	592,634			22,339			20,374			(614,159		)	21,188			(8,350		)	(22,493		)	(9,655		)
Income before income taxes	567,412			593,825			20,324			(614,159		)	567,402			32,484			(19,709		)	580,177
Income tax provision	207,054			—			—			—			207,054			(64		)	—			206,990
Net income	360,358			593,825			20,324			(614,159		)	360,348			32,548			(19,709		)	373,187
Less net income attributable to noncontrolling interest	—			—			(10		)	—			(10		)	1,743			10,630			12,363
Net income attributable to HollyFrontier stockholders	$	360,358		$	593,825		$	20,334		$	(614,159	)	$	360,358		$	30,805		$	(30,339	)	$	360,824
Comprehensive income attributable to HollyFrontier stockholders	$	356,676		$	588,016		$	20,422		$	(608,438	)	$	356,676		$	30,893		$	(30,427	)	$	357,142

Condensed Consolidating Statement of Income and Comprehensive Income
Three Months Ended June 30, 2014	Parent			Guarantor Restricted Subsidiaries		Non- Guarantor Restricted Subsidiaries			Eliminations			HollyFrontier Corp. Before Consolidation of HEP		Non-Guarantor Non-Restricted Subsidiaries (HEP Segment)			Consolidations and Eliminations			Consolidated
	(In thousands)
Sales and other revenues	$	179		$	5,362,277	$	(36	)	$	—		$	5,362,420	$	75,024		$	(64,844	)	$	5,372,600
Operating costs and expenses:
Cost of products sold	—			4,738,586		—			—			4,738,586		—			(63,740		)	4,674,846
Operating expenses	—			247,451		—			—			247,451		24,567			(364		)	271,654
General and administrative	24,343			1,469		37			—			25,849		2,516			—			28,365
Depreciation and amortization	2,010			87,473		—			—			89,483		15,477			(3,570		)	101,390
Total operating costs and expenses	26,353			5,074,979		37			—			5,101,369		42,560			(67,674		)	5,076,255
Income (loss) from operations	(26,174		)	287,298		(73		)	—			261,051		32,464			2,830			296,345
Other income (expense):
Earnings (loss) of equity method investments	303,788			14,546		16,132			(319,990		)	14,476		748			(16,132		)	(908		)
Interest income (expense)	(373		)	1,944		143			—			1,714		(8,329		)	(2,337		)	(8,952		)
	303,415			16,490		16,275			(319,990		)	16,190		(7,581		)	(18,469		)	(9,860		)
Income before income taxes	277,241			303,788		16,202			(319,990		)	277,241		24,883			(15,639		)	286,485
Income tax provision	101,304			—		—			—			101,304		28			—			101,332
Net income	175,937			303,788		16,202			(319,990		)	175,937		24,855			(15,639		)	185,153
Less net income attributable to noncontrolling interest	—			—		—			—			—		1,416			7,308			8,724
Net income attributable to HollyFrontier stockholders	$	175,937		$	303,788	$	16,202		$	(319,990	)	$	175,937	$	23,439		$	(22,947	)	$	176,429
Comprehensive income attributable to HollyFrontier stockholders	$	197,313		$	338,556	$	15,909		$	(354,465	)	$	197,313	$	23,145		$	(22,653	)	$	197,805

Condensed Consolidating Statement of Income and Comprehensive Income
Six Months Ended June 30, 2015	Parent			Guarantor Restricted Subsidiaries			Non- Guarantor Restricted Subsidiaries			Eliminations			HollyFrontier Corp. Before Consolidation of HEP			Non-Guarantor Non-Restricted Subsidiaries (HEP Segment)			Consolidations and Eliminations			Consolidated
	(In thousands)
Sales and other revenues	$	274		$	6,675,868		$	—		$	—		$	6,676,142		$	173,235		$	(140,839	)	$	6,708,538
Operating costs and expenses:
Cost of products sold	—			5,277,870			—			—			5,277,870			—			(139,022		)	5,138,848
Lower of cost or market inventory valuation adjustment	—			(142,026		)	—			—			(142,026		)	—			—			(142,026		)
Operating expenses	—			456,793			—			—			456,793			53,255			(287		)	509,761
General and administrative	48,632			986			82			—			49,700			5,986			—			55,686
Depreciation and amortization	4,908			141,044			16			—			145,968			28,950			(7,103		)	167,815
Total operating costs and expenses	53,540			5,734,667			98			—			5,788,305			88,191			(146,412		)	5,730,084
Income (loss) from operations	(53,266		)	941,201			(98		)	—			887,837			85,044			5,573			978,454
Other income (expense):
Earnings (loss) of equity method investments	978,226			32,369			40,617			(1,019,136		)	32,076			1,365			(40,617		)	(7,176		)
Interest income (expense)	(839		)	3,967			374			—			3,502			(17,820		)	(4,665		)	(18,983		)
Loss on early extinguishment of debt	(1,368		)	—			—			—			(1,368		)	—			—			(1,368		)
Gain on sale of assets	720			689			—			—			1,409			230			—			1,639
	976,739			37,025			40,991			(1,019,136		)	35,619			(16,225		)	(45,282		)	(25,888		)
Income before income taxes	923,473			978,226			40,893			(1,019,136		)	923,456			68,819			(39,709		)	952,566
Income tax provision	336,681			—			—			—			336,681			37			—			336,718
Net income	586,792			978,226			40,893			(1,019,136		)	586,775			68,782			(39,709		)	615,848
Less net income attributable to noncontrolling interest	—			—			(17		)	—			(17		)	5,770			22,395			28,148
Net income attributable to HollyFrontier stockholders	$	586,792		$	978,226		$	40,910		$	(1,019,136	)	$	586,792		$	63,012		$	(62,104	)	$	587,700
Comprehensive income attributable to HollyFrontier stockholders	$	571,588		$	953,098		$	40,703		$	(993,801	)	$	571,588		$	62,805		$	(61,897	)	$	572,496

Condensed Consolidating Statement of Income and Comprehensive Income
Six Months Ended June 30, 2014	Parent			Guarantor Restricted Subsidiaries		Non- Guarantor Restricted Subsidiaries		Eliminations			HollyFrontier Corp. Before Consolidation of HEP		Non-Guarantor Non-Restricted Subsidiaries (HEP Segment)			Consolidations and Eliminations			Consolidated
	(In thousands)
Sales and other revenues	$	280		$	10,137,400	$	935	$	—		$	10,138,615	$	162,036		$	(136,998	)	$	10,163,653
Operating costs and expenses:
Cost of products sold	—			8,948,308		—		—			8,948,308		—			(134,842		)	8,813,466
Operating expenses	—			498,927		—		—			498,927		47,379			(686		)	545,620
General and administrative	45,450			4,095		76		—			49,621		5,667			—			55,288
Depreciation and amortization	3,800			154,580		—		—			158,380		30,661			(7,103		)	181,938
Total operating costs and expenses	49,250			9,605,910		76		—			9,655,236		83,707			(142,631		)	9,596,312
Income (loss) from operations	(48,970		)	531,490		859		—			483,379		78,329			5,633			567,341
Other income (expense):
Earnings (loss) of equity method investments	566,147			30,568		32,415		(599,694		)	29,436		1,270			(32,415		)	(1,709		)
Interest income (expense)	(797		)	4,089		273		—			3,565		(18,780		)	(4,679		)	(19,894		)
Loss on early extinguishment of debt	—			—		—		—			—		(7,677		)	—			(7,677		)
	565,350			34,657		32,688		(599,694		)	33,001		(25,187		)	(37,094		)	(29,280		)
Income before income taxes	516,380			566,147		33,547		(599,694		)	516,380		53,142			(31,461		)	538,061
Income tax provision	188,843			—		—		—			188,843		103			—			188,946
Net income	327,537			566,147		33,547		(599,694		)	327,537		53,039			(31,461		)	349,115
Less net income attributable to noncontrolling interest	—			—		—		—			—		5,053			15,572			20,625
Net income attributable to HollyFrontier stockholders	$	327,537		$	566,147	$	33,547	$	(599,694	)	$	327,537	$	47,986		$	(47,033	)	$	328,490
Comprehensive income attributable to HollyFrontier stockholders	$	402,155		$	687,940	$	33,291	$	(721,231	)	$	402,155	$	47,730		$	(46,777	)	$	403,108

Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2015	Parent			Guarantor Restricted Subsidiaries			Non- Guarantor Restricted Subsidiaries			Eliminations			HollyFrontier Corp. Before Consolidation of HEP			Non-Guarantor Non-Restricted Subsidiaries (HEP Segment)			Consolidations and Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities	$	(348,026	)	$	803,368		$	47,880		$	—		$	503,222		$	110,611		$	(43,893	)	$	569,940
Cash flows from investing activities
Additions to properties, plants and equipment	(7,180		)	(259,857		)	(63		)	—			(267,100		)	—			—			(267,100		)
Additions to properties, plants and equipment – HEP	—			—			—			—			—			(49,813		)	—			(49,813		)
Purchases of marketable securities	(246,008		)	—			—			—			(246,008		)	—			—			(246,008		)
Sales and maturities of marketable securities	327,310			—			—			—			327,310			—			—			327,310
Other, net	—			1,846			—			—			1,846			386			—			2,232
Net advances to Parent	—			(544,445		)	(47,877		)	592,322			—			—			—			—
	74,122			(802,456		)	(47,940		)	592,322			(183,952		)	(49,427		)	—			(233,379		)
Cash flows from financing activities
Net borrowings under credit agreement – HEP	—			—			—			—			—			33,000			—			33,000
Redemption of senior notes - HFC	(155,156		)	—			—			—			(155,156		)	—			—			(155,156		)
Purchase of treasury stock	(320,132		)	—			—			—			(320,132		)	—			—			(320,132		)
Accelerated stock repurchase forward contract	(60,000		)	—			—			—			(60,000		)	—			—			(60,000		)
Dividends	(125,192		)	—			—			—			(125,192		)	—			—			(125,192		)
Distributions to noncontrolling interest	—			—			—			—			—			(85,489		)	43,893			(41,596		)
Other, net	(113		)	(912		)	15			—			(1,010		)	(1,101		)	—			(2,111		)
Net advances from subsidiaries	592,322			—			—			(592,322		)	—			—			—			—
	(68,271		)	(912		)	15			(592,322		)	(661,490		)	(53,590		)	43,893			(671,187		)
Cash and cash equivalents
Increase (decrease) for the period	(342,175		)	—			(45		)	—			(342,220		)	7,594			—			(334,626		)
Beginning of period	565,080			—			75			—			565,155			2,830			—			567,985
End of period	$	222,905		$	—		$	30		$	—		$	222,935		$	10,424		$	—		$	233,359

Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2014	Parent			Guarantor Restricted Subsidiaries			Non- Guarantor Restricted Subsidiaries			Eliminations			HollyFrontier Corp. Before Consolidation of HEP			Non-Guarantor Non-Restricted Subsidiaries (HEP Segment)			Consolidations and Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities	$	(144,972	)	$	773,845		$	38,968		$	—		$	667,841		$	92,667		$	(39,029	)	$	721,479
Cash flows from investing activities:
Additions to properties, plants and equipment	(6,329		)	(199,132		)	(526		)	—			(205,987		)	—			—			(205,987		)
Additions to properties, plants and equipment – HEP	—			—			—			—			—			(38,782		)	—			(38,782		)
Purchases of marketable securities	(498,080		)	—			—			—			(498,080		)	—			—			(498,080		)
Sales and maturities of marketable securities	543,604			—			—			—			543,604			—			—			543,604
Other, net	—			5,021			—			—			5,021			—			—			5,021
Net advances to Parent	—			(582,930		)	(38,604		)	621,534			—			—			—			—
	39,195			(777,041		)	(39,130		)	621,534			(155,442		)	(38,782		)	—			(194,224		)
Cash flows from financing activities:
Net borrowings under credit agreement – HEP	—			—			—			—			—			180,000			—			180,000
Redemption of senior notes	—			—			—			—			—			(156,188		)	—			(156,188		)
Inventory repurchase obligation				5,964									5,964			—			—			5,964
Purchase of treasury stock	(20,135		)	—			—			—			(20,135		)	—			—			(20,135		)
Dividends	(323,088		)	—			—			—			(323,088		)	—			—			(323,088		)
Distributions to noncontrolling interest	—			—			—			—			—			(77,577		)	39,029			(38,548		)
Excess tax benefit from equity-based compensation	3,778			—			—			—			3,778			—			—			3,778
Other, net	—			(808		)	375			—			(433		)	(406		)	—			(839		)
Net advances from subsidiaries	621,534			—			—			(621,534		)	—			—			—			—
	282,089			5,156			375			(621,534		)	(333,914		)	(54,171		)	39,029			(349,056		)
Cash and cash equivalents
Increase (decrease) for the period:	176,312			1,960			213			—			178,485			(286		)	—			178,199
Beginning of period	931,920			1,817			14			—			933,751			6,352			—			940,103
End of period	$	1,108,232		$	3,777		$	227		$	—		$	1,112,236		$	6,066		$	—		$	1,118,302