Segment Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information

Our operations are organized into two reportable segments, Refining and HEP. Our operations that are not included in the Refining and HEP segments are included in Corporate and Other. Intersegment transactions are eliminated in our consolidated financial statements and are included in Consolidations and Eliminations.

The Refining segment represents the operations of the El Dorado, Tulsa, Navajo, Cheyenne and Woods Cross Refineries and HFC Asphalt (aggregated as a reportable segment). Refining activities involve the purchase and refining of crude oil and wholesale and branded marketing of refined products, such as gasoline, diesel fuel and jet fuel. These petroleum products are primarily marketed in the Mid-Continent, Southwest and Rocky Mountain regions of the United States. Additionally, the Refining segment includes specialty lubricant products produced at our Tulsa Refineries that are marketed throughout North America and are distributed in Central and South America. HFC Asphalt operates various asphalt terminals in Arizona, New Mexico and Oklahoma.

The HEP segment includes all of the operations of HEP, which owns and operates logistics and refinery assets consisting of petroleum product and crude oil pipelines, terminals, tankage, loading rack facilities and processing units in the Mid-Continent, Southwest and Rocky Mountain regions of the United States. The HEP segment also includes a 75% ownership interest in UNEV (a consolidated subsidiary of HEP), a 50% ownership interest in each of the Frontier Pipeline, Osage Pipeline and the Cheyenne Pipeline and a 25% ownership interest in the SLC Pipeline. Revenues from the HEP segment are earned through transactions with unaffiliated parties for pipeline transportation, rental and terminalling operations as well as revenues relating to pipeline transportation services provided for our refining operations. Due to certain basis differences, our reported amounts for the HEP segment may not agree to amounts reported in HEP’s periodic public filings.

The accounting policies for our segments are the same as those described in the summary of significant accounting policies (see Note 1).

	Refining (1,2)			HEP (2)		Corporate and Other			Consolidations and Eliminations			Consolidated Total
	(In thousands)
Year Ended December 31, 2016
Sales and other revenues	$	10,467,190		$	402,043	$	168		$	(333,701	)	$	10,535,700
Depreciation and amortization	$	282,321		$	68,811	$	12,723		$	(828	)	$	363,027
Income (loss) from operations	$	(163,624	)	$	196,716	$	(130,565	)	$	(2,414	)	$	(99,887	)
Earnings of equity method investments	$	—		$	14,213	$	—		$	—		$	14,213
Capital expenditures	$	363,115		$	107,595	$	9,080		$	—		$	479,790
Total assets	$	6,513,806		$	1,920,487	$	1,306,169		$	(304,801	)	$	9,435,661
Year Ended December 31, 2015
Sales and other revenues	$	13,171,183		$	358,875	$	663		$	(292,801	)	$	13,237,920
Depreciation and amortization	$	273,345		$	61,690	$	11,944		$	(828	)	$	346,151
Income (loss) from operations	$	1,190,578		$	179,075	$	(123,004	)	$	(2,296	)	$	1,244,353
Earnings (loss) of equity method investments	$	—		$	4,803	$	(8,541	)	$	—		$	(3,738	)
Capital expenditures	$	469,011		$	193,121	$	14,023		$	—		$	676,155
Total assets	$	6,597,355		$	1,812,279	$	289,225		$	(310,560	)	$	8,388,299
Year Ended December 31, 2014
Sales and other revenues	$	19,706,225		$	332,626	$	2,103		$	(276,627	)	$	19,764,327
Depreciation and amortization	$	293,508		$	60,911	$	9,790		$	(828	)	$	363,381
Income (loss) from operations	$	492,853		$	154,706	$	(129,874	)	$	(2,151	)	$	515,534
Earnings of equity method investments	$	—		$	2,987	$	(4,994	)	$	—		$	(2,007	)
Capital expenditures	$	346,605		$	198,686	$	19,530		$	—		$	564,821
Total assets	$	6,782,091		$	1,617,133	$	1,150,865		$	(320,042	)	$	9,230,047

(1) For the year ended December 31, 2016, we recorded goodwill and long-lived asset impairment charges of $309.3 million and $344.8 million, respectively, that relate to our Cheyenne Refinery, which is included in our Refining segment.

(2) HEP acquired the crude oil tanks at our Tulsa Refineries in March 2016 and acquired a newly constructed crude unit, FCCU and polymerization unit at our Woods Cross Refinery in October 2016. As a result, we have recast our 2015 and 2014 HEP segment information to include these assets and related capital expenditures and certain operating expenses that were previously presented under the Refining segment. Additionally, prior year capital expenditures related to these assets have been recast as if they were incurred by HEP versus HFC in the statement of cash flows.

HEP segment revenues from external customers were $68.9 million, $66.7 million and $57.3 million for the years ended December 31, 2016, 2015 and 2014, respectively.