Guarantor Subsidiaries | Guarantor Subsidiaries Certain of the Company’s 100% owned, domestic subsidiaries (the “Guarantor Subsidiaries”) fully and unconditionally guarantee, on a joint and several basis, certain of the outstanding indebtedness of the Company, including the 6.00% senior notes due 2023. The following consolidating schedules present financial information on a consolidated basis in conformity with the SEC’s Regulation S-X Rule 3-10(d): CONSOLIDATING BALANCE SHEET (Thousands of dollars) December 31, 2016 Assets Parent Company Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Current assets Cash and cash equivalents $ — $ 153,813 $ — $ — $ — $ 153,813 Accounts receivable—trade, less allowance for doubtful accounts of $1,891 in 2016 — 183,519 — — — 183,519 Inventories, at lower of cost or market — 153,351 — — — 153,351 Prepaid expenses and other current assets — 24,871 — — — 24,871 Total current assets — 515,554 — — — 515,554 Property, plant and equipment, at cost less accumulated depreciation and amortization of $780,426 in 2016 — 1,532,655 — — — 1,532,655 Restricted cash — — — — — — Investments in subsidiaries 1,978,110 144,917 — — (2,123,027 ) — Other assets — 40,531 — — — 40,531 Total assets $ 1,978,110 $ 2,233,657 $ — $ — $ (2,123,027 ) $ 2,088,740 Liabilities and Stockholders' Equity Current liabilities Current maturities of long-term debt $ — $ 40,596 $ — $ — $ — $ 40,596 Inter-company accounts payable 623,316 (416,914 ) (52,064 ) (154,338 ) — — Trade accounts payable and accrued liabilities — 473,370 — — — 473,370 Income taxes payable — 591 3 — — 594 Deferred income taxes — — — — — — Total current liabilities 623,316 97,643 (52,061 ) (154,338 ) — 514,560 Long-term debt, including capitalized lease obligations — 629,622 — — — 629,622 Deferred income taxes — 204,656 — — — 204,656 Asset retirement obligations — 26,200 — — — 26,200 Deferred credits and other liabilities — 16,626 — — — 16,626 Total liabilities 623,316 974,747 (52,061 ) (154,338 ) — 1,391,664 Stockholders' Equity Preferred Stock, par $0.01 (authorized 20,000,000 shares, none outstanding) — — — — — — Common Stock, par $0.01 (authorized 200,000,000 shares, 46,767,164 shares issued at December 31, 2016) 468 1 60 — (61 ) 468 Treasury stock (9,831,196 shares held at December 31, 2016) (608,001 ) — — — — (608,001 ) Additional paid in capital (APIC) 1,213,056 571,117 52,004 87,543 (1,368,382 ) 555,338 Retained earnings 749,271 687,792 (3 ) 66,795 (754,584 ) 749,271 Total stockholders' equity 1,354,794 1,258,910 52,061 154,338 (2,123,027 ) 697,076 Total liabilities and stockholders' equity $ 1,978,110 $ 2,233,657 $ — $ — $ (2,123,027 ) $ 2,088,740 CONSOLIDATING BALANCE SHEET (Thousands of dollars) December 31, 2015 Assets Parent Company Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Current assets Cash and cash equivalents $ — $ 102,335 $ — $ — $ — $ 102,335 Accounts receivable—trade, less allowance for doubtful accounts of $1,963 in 2015 — 136,253 — — — 136,253 Inventories, at lower of cost or market — 155,906 — — — 155,906 Prepaid expenses and other current assets — 41,173 — — — 41,173 Total current assets — 435,667 — — — 435,667 Property, plant and equipment, at cost less accumulated depreciation and amortization of $724,486 in 2015 — 1,369,318 — — — 1,369,318 Investments in subsidiaries 1,756,617 144,921 — — (1,901,538 ) — Restricted cash — 68,571 — — — 68,571 Other assets — 12,685 — — — 12,685 Total assets $ 1,756,617 $ 2,031,162 $ — $ — $ (1,901,538 ) $ 1,886,241 Liabilities and Stockholders' Equity Current liabilities Current maturities of long-term debt $ — $ 222 $ — $ — $ — $ 222 Inter-company accounts payable 300,044 (93,644 ) (52,062 ) (154,338 ) — — Trade accounts payable and accrued liabilities — 390,341 — — — 390,341 Income taxes payable — — — — — — Deferred income taxes — 1,729 — — — 1,729 Total current liabilities 300,044 298,648 (52,062 ) (154,338 ) — 392,292 Long-term debt, including capitalized lease obligations — 490,160 — — — 490,160 Deferred income taxes — 161,236 — — — 161,236 Asset retirement obligations — 24,345 — — — 24,345 Deferred credits and other liabilities — 25,918 — — — 25,918 Total liabilities 300,044 1,000,307 (52,062 ) (154,338 ) — 1,093,951 Stockholders' Equity Preferred Stock, par $0.01 (authorized 20,000,000 shares, none outstanding) — — — — — — Common Stock, par $0.01 (authorized 200,000,000 shares, 46,767,164 shares issued at December 31, 2015) 468 1 60 — (61 ) 468 Treasury stock (5,088,434 shares held at December 31, 2015) (294,139 ) — — — — (294,139 ) Additional paid in capital (APIC) 1,222,465 564,554 52,004 87,543 (1,368,384 ) 558,182 Retained earnings 527,779 466,300 (2 ) 66,795 (533,093 ) 527,779 Total stockholders' equity 1,456,573 1,030,855 52,062 154,338 (1,901,538 ) 792,290 Total liabilities and stockholders' equity $ 1,756,617 $ 2,031,162 $ — $ — $ (1,901,538 ) $ 1,886,241 CONSOLIDATING INCOME STATEMENT (Thousands of dollars) Year ended December 31, 2016 Revenues Parent Company Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Petroleum product sales $ — $ 9,070,623 $ — $ — $ — $ 9,070,623 Merchandise sales — 2,338,586 — — — 2,338,586 Other operating revenues — 185,344 — — — 185,344 Total revenues — 11,594,553 — — — 11,594,553 Costs and operating expenses Petroleum product cost of goods sold — 8,603,953 — — — 8,603,953 Merchandise cost of goods sold — 1,974,486 — — — 1,974,486 Station and other operating expenses — 493,320 — — — 493,320 Depreciation and amortization — 98,610 — — — 98,610 Selling, general and administrative — 122,668 1 — — 122,669 Accretion of asset retirement obligations — 1,650 — — — 1,650 Total costs and operating expenses — 11,294,687 1 — — 11,294,688 Income (loss) from operations — 299,866 (1 ) — — 299,865 Other income (expense) Interest income — 578 — — — 578 Interest expense — (39,704 ) — — — (39,704 ) Gain on sale of assets — 88,212 — — — 88,212 Other nonoperating income — 3,080 — — — 3,080 Total other income (expense) — 52,166 — — — 52,166 Income (loss) from continuing operations before income taxes — 352,032 (1 ) — — 352,031 Income tax expense — 130,539 — — — 130,539 Income (loss) from continuing operations — 221,493 (1 ) — — 221,492 Income from discontinued operations, net of income taxes — — — — — — Equity earnings in affiliates, net of tax 221,492 (1 ) — — (221,491 ) — Net Income (Loss) $ 221,492 $ 221,492 $ (1 ) $ — $ (221,491 ) $ 221,492 CONSOLIDATING INCOME STATEMENT (Thousands of dollars) Year ended December 31, 2015 Revenues Parent Company Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Petroleum product sales $ — $ 10,424,855 $ — $ — $ (120,166 ) $ 10,304,689 Merchandise sales — 2,273,888 — — — 2,273,888 Other operating revenues — 120,834 — — — 120,834 Total revenues — 12,819,577 — — (120,166 ) 12,699,411 Costs and operating expenses Petroleum product cost of goods sold — 9,914,641 — — (120,166 ) 9,794,475 Merchandise cost of goods sold — 1,946,423 — — — 1,946,423 Station and other operating expenses — 486,383 — — — 486,383 Depreciation and amortization — 86,568 — — — 86,568 Selling, general and administrative — 129,276 1 — — 129,277 Accretion of asset retirement obligations — 1,521 — — — 1,521 Total costs and operating expenses — 12,564,812 1 — (120,166 ) 12,444,647 Income (loss) from operations — 254,765 (1 ) — — 254,764 Other income (expense) Interest income — 2,177 — — — 2,177 Interest expense — (33,531 ) — — — (33,531 ) Loss on sale of assets — (4,658 ) — — — (4,658 ) Other nonoperating expense — (463 ) — — — (463 ) Total other income (expense) — (36,475 ) — — — (36,475 ) Income (loss) from continuing operations before income taxes — 218,290 (1 ) — — 218,289 Income tax expense — 80,698 — — — 80,698 Income (loss) from continuing operations — 137,592 (1 ) — — 137,591 Income from discontinued operations, net of income taxes — — — 38,749 — 38,749 Equity earnings in affiliates, net of tax 176,340 (22,731 ) — (61,479 ) (92,130 ) — Net Income (Loss) $ 176,340 $ 114,861 $ (1 ) $ (22,730 ) $ (92,130 ) $ 176,340 CONSOLIDATING INCOME STATEMENT (Thousands of dollars) Year ended December 31, 2014 Revenues Parent Company Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Petroleum product sales $ — $ 14,911,658 $ — $ — $ (183,131 ) $ 14,728,527 Merchandise sales — 2,161,378 — — — 2,161,378 Other operating revenues — 96,109 — — — 96,109 Total revenues — 17,169,145 — — (183,131 ) 16,986,014 Costs and operating expenses Petroleum product cost of goods sold — 14,257,710 — — (183,131 ) 14,074,579 Merchandise cost of goods sold — 1,859,732 — — — 1,859,732 Station and other operating expenses — 486,762 — — — 486,762 Depreciation and amortization — 79,087 — — — 79,087 Selling, general and administrative — 119,265 1 — — 119,266 Accretion of asset retirement obligations — 1,200 — — — 1,200 Total costs and operating expenses — 16,803,756 1 — (183,131 ) 16,620,626 Income (loss) from operations — 365,389 (1 ) — — 365,388 Other income (expense) Interest income — 244 — — — 244 Interest expense — (36,646 ) — — — (36,646 ) Gain on sale of assets — 194 — — — 194 Other nonoperating income — 10,166 — — — 10,166 Total other income (expense) — (26,042 ) — — — (26,042 ) Income (loss) from continuing operations before income taxes — 339,347 (1 ) — — 339,346 Income tax expense — 116,386 — — — 116,386 Income (loss) from continuing operations — 222,961 (1 ) — — 222,960 Income from discontinued operations, net of income taxes — — — 20,903 — 20,903 Equity earnings in affiliates, net of tax 351,439 89,524 — — (440,963 ) — Net Income (Loss) $ 351,439 $ 312,485 $ (1 ) $ 20,903 $ (440,963 ) $ 243,863 CONSOLIDATING STATEMENT OF CASH FLOWS (Thousands of dollars) Year ended December 31, 2016 Operating Activities Parent Company Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ 221,492 $ 221,492 $ (1 ) $ — $ (221,491 ) $ 221,492 Adjustments to reconcile net income (loss) to net cash provided by operating activities Income from discontinued operations, net of tax — — — — — — Depreciation and amortization — 98,610 — — — 98,610 Deferred and noncurrent income tax charges (credits) — 40,407 — — — 40,407 Accretion of asset retirement obligations — 1,650 — — — 1,650 Pretax gains from sale of assets — (88,212 ) — — — (88,212 ) Net decrease (increase) in noncash operating working capital — 53,726 — — — 53,726 Equity in earnings (221,492 ) 1 — — 221,491 — Other operating activities - net — 9,767 — — — 9,767 Net cash provided by (used in) continuing operations — 337,441 (1 ) — — 337,440 Net cash used in discontinued operations — — — — — — Net cash provided by (used in) operating activities — 337,441 (1 ) — — 337,440 Investing Activities Property additions — (262,144 ) — — — (262,144 ) Proceeds from sale of assets — 85,327 — — — 85,327 Changes in restricted cash — 68,571 — — — 68,571 Other investing activities - net — (28,963 ) — — — (28,963 ) Sales proceeds — — — — — — Other — 2,355 — — — 2,355 Net cash provided by (required by) investing activities — (134,854 ) — — — (134,854 ) Financing Activities Purchase of treasury stock (323,272 ) — — — — (323,272 ) Repayments of long-term debt — (20,438 ) — — — (20,438 ) Additions to long-term debt — 200,000 — — — 200,000 Debt issuance costs — (3,240 ) — — — (3,240 ) Amounts related to share-based compensation — (4,158 ) — — — (4,158 ) Net distributions to parent 323,272 (323,273 ) 1 — — — Net cash provided by (required by) financing activities — (151,109 ) 1 — — (151,108 ) Net change in cash and cash equivalents — 51,478 — — — 51,478 Cash and cash equivalents at January 1 — 102,335 — — — 102,335 Cash and cash equivalents at December 31 $ — $ 153,813 $ — $ — $ — $ 153,813 Less: Cash and cash equivalents held for sale — — — — — — Cash and cash equivalents of continuing operations at December 31 $ — $ 153,813 $ — $ — $ — $ 153,813 CONSOLIDATING STATEMENT OF CASH FLOWS (Thousands of dollars) Year ended December 31, 2015 Operating Activities Parent Company Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ 176,340 $ 114,861 $ (1 ) $ (22,730 ) $ (92,130 ) $ 176,340 Adjustments to reconcile net income (loss) to net cash provided by operating activities Income from discontinued operations, net of tax — — — (38,749 ) — (38,749 ) Depreciation and amortization — 86,568 — — — 86,568 Deferred and noncurrent income tax charges (credits) — 40,556 — — — 40,556 Accretion of asset retirement obligations — 1,521 — — — 1,521 Pretax losses from sale of assets — 4,658 — — — 4,658 Net decrease (increase) in noncash operating working capital — (46,586 ) — — — (46,586 ) Equity in earnings (176,340 ) 22,731 — 61,479 92,130 — Other operating activities - net — 9,417 — — — 9,417 Net cash provided by (used in) continuing operations — 233,726 (1 ) — — 233,725 Net cash provided by discontinued operations — — — (17,887 ) — (17,887 ) Net cash provided by (used in) operating activities — 233,726 (1 ) (17,887 ) — 215,838 Investing Activities Property additions — (205,225 ) — — — (205,225 ) Proceeds from sale of assets — 729 — — — 729 Changes in restricted cash — (68,571 ) — — — (68,571 ) Other investing activities - net — (2,889 ) — — — (2,889 ) Sales proceeds — — — 93,765 — 93,765 Other — — — (7,443 ) — (7,443 ) Net cash provided by (required by) investing activities — (275,956 ) — 86,322 — (189,634 ) Financing Activities Purchase of treasury stock (248,695 ) — — — — (248,695 ) Repayments of long-term debt — (146 ) — — — (146 ) Additions to long-term debt — — — — — — Debt issuance costs — (58 ) — — — (58 ) Amounts related to share-based compensation — (3,075 ) — — — (3,075 ) Net distributions to parent 248,695 (179,319 ) 1 (69,377 ) — — Net cash provided by (required by) financing activities — (182,598 ) 1 (69,377 ) — (251,974 ) Net change in cash and cash equivalents — (224,828 ) — (942 ) — (225,770 ) Cash and cash equivalents at January 1 — 327,163 — 942 — 328,105 Cash and cash equivalents at December 31 $ — $ 102,335 $ — $ — $ — $ 102,335 Less: Cash and cash equivalents held for sale — — — — — — Cash and cash equivalents of continuing operations at December 31 $ — $ 102,335 $ — $ — $ — $ 102,335 CONSOLIDATING STATEMENT OF CASH FLOWS W (Thousands of dollars) Year ended December 31, 2014 Operating Activities Parent Company Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ 351,439 $ 312,485 $ (1 ) $ 20,903 $ (440,963 ) $ 243,863 Adjustments to reconcile net income (loss) to net cash provided by operating activities Income from discontinued operations, net of tax — — — (20,903 ) — (20,903 ) Depreciation and amortization — 79,087 — — — 79,087 Deferred and noncurrent income tax charges (credits) — (4,403 ) — — — (4,403 ) Accretion of asset retirement obligations — 1,200 — — — 1,200 Pretax gains from sale of assets — (194 ) — — — (194 ) Net decrease (increase) in noncash operating working capital — (36,475 ) — — — (36,475 ) Equity in earnings (351,439 ) (89,524 ) — — 440,963 — Other operating activities - net — 14,531 — — — 14,531 Net cash provided by (used in) continuing operations — 276,707 (1 ) — — 276,706 Net cash provided by discontinued operations — — — 28,876 — 28,876 Net cash provided by (used in) operating activities — 276,707 (1 ) 28,876 — 305,582 Investing Activities Property additions — (135,339 ) — — — (135,339 ) Proceeds from sale of assets — 376 — — — 376 Other investing activities - net — (10,631 ) — — — (10,631 ) Sales proceeds — — — 1,097 — 1,097 Other — — — (4,918 ) — (4,918 ) Net cash provided by (required by) investing activities — (145,594 ) — (3,821 ) — (149,415 ) Financing Activities Purchase of treasury stock (51,348 ) — — — — (51,348 ) Repayments of long-term debt — (70,000 ) — — — (70,000 ) Additions to long-term debt — — — — — — Debt issuance costs — (875 ) — — — (875 ) Amounts related to share-based compensation — (580 ) — — — (580 ) Net distributions to parent 51,348 (27,236 ) 1 (24,113 ) — — Net cash provided by (required by) financing activities — (98,691 ) 1 (24,113 ) — (122,803 ) Net change in cash and cash equivalents — 32,422 — 942 — 33,364 Cash and cash equivalents at January 1 — 294,741 — — — 294,741 Cash and cash equivalents at December 31 $ — $ 327,163 $ — $ 942 $ — $ 328,105 Less: Cash and cash equivalents held for sale — — — 942 — 942 Cash and cash equivalents of continuing operations at December 31 $ — $ 327,163 $ — $ — $ — $ 327,163 CONSOLIDATING STATEMENT OF CHANGES IN EQUITY (Thousands of dollars) Year ended December 31, 2016 Statement of Stockholders' Equity Parent Company Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Common Stock Balance as of December 31, 2015 $ 468 $ 1 $ 60 $ — $ (61 ) $ 468 Issuance of common stock — — — — — — Balance as of December 31, 2016 $ 468 $ 1 $ 60 $ — $ (61 ) $ 468 Treasury Stock Balance as of December 31, 2015 $ (294,139 ) $ — $ — $ — $ — $ (294,139 ) Issuance of common stock 9,410 — — — — 9,410 Repurchase of common stock (323,272 ) — — — — (323,272 ) Balance as of December 31, 2016 $ (608,001 ) $ — $ — $ — $ — $ (608,001 ) APIC Balance as of December 31, 2015 $ 1,222,466 $ 564,551 $ 52,004 $ 87,543 $ (1,368,382 ) $ 558,182 Issuance of common stock (9,410 ) — — — — (9,410 ) Amounts related to share-based compensation — (2,748 ) — — — (2,748 ) Share-based compensation expense — 9,314 — — — 9,314 Balance as of December 31, 2016 $ 1,213,056 $ 571,117 $ 52,004 $ 87,543 $ (1,368,382 ) $ 555,338 Retained Earnings Balance as of December 31, 2015 $ 527,779 $ 466,300 $ (2 ) $ 66,795 $ (533,093 ) $ 527,779 Net income 221,492 221,492 (1 ) — (221,491 ) 221,492 Balance as of December 31, 2016 $ 749,271 $ 687,792 $ (3 ) $ 66,795 $ (754,584 ) $ 749,271 CONSOLIDATING STATEMENTS OF CHANGES IN EQUITY (Thousands of dollars) Year ended December 31, 2015 Statement of Stockholders' Equity Parent Company Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Common Stock Balance as of December 31, 2014 $ 468 $ 1 $ 60 $ — $ (61 ) $ 468 Issuance of common stock — — — — — — Balance as of December 31, 2015 $ 468 $ 1 $ 60 $ — $ (61 ) $ 468 Treasury Stock Balance as of December 31, 2014 $ (51,073 ) $ — $ — $ — $ — $ (51,073 ) Issuance of common stock 5,629 — — — — 5,629 Repurchase of common stock (248,695 ) — — — — (248,695 ) Balance as of December 31, 2015 $ (294,139 ) $ — $ — $ — $ — $ (294,139 ) APIC Balance as of December 31, 2014 $ 1,228,095 $ 558,611 $ 52,004 $ 35,677 $ (1,316,516 ) $ 557,871 Issuance of common stock (5,629 ) — — — — (5,629 ) Amounts related to share-based compensation — (3,075 ) — — — (3,075 ) Reclassification of equity — — — 51,866 (51,866 ) — Share-based compensation expense — 9,015 — — — 9,015 Balance as of December 31, 2015 $ 1,222,466 $ 564,551 $ 52,004 $ 87,543 $ (1,368,382 ) $ 558,182 Retained Earnings Balance as of December 31, 2014 $ 351,439 $ 351,439 $ (1 ) $ 89,525 $ (440,963 ) $ 351,439 Net income 176,340 114,861 (1 ) (22,730 ) (92,130 ) 176,340 Balance as of December 31, 2015 $ 527,779 $ 466,300 $ (2 ) $ 66,795 $ (533,093 ) $ 527,779 CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Thousands of dollars) Year ended December 31, 2014 Statement of Stockholders' Equity/Net Parent Investment Parent Company Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Common Stock Balance as of December 31, 2013 $ 467 $ 1 $ 60 $ — $ (61 ) $ 467 Issuance of common stock 1 — — — — 1 Balance as of December 31, 2014 $ 468 $ 1 $ 60 $ — $ (61 ) $ 468 Treasury Stock Balance as of December 31, 2013 $ — $ — $ — $ — $ — $ — Issuance of common stock 275 — — — — 275 Repurchase of common stock (51,348 ) — — — — (51,348 ) Balance as of December 31, 2014 $ (51,073 ) $ — $ — $ — $ — $ (51,073 ) APIC Balance as of December 31, 2013 $ 1,228,370 $ 548,758 $ 52,004 $ 35,677 $ (1,316,516 ) $ 548,293 Issuance of common stock (275 ) — — — — (275 ) Amounts related to share-based compensation — (582 ) — — — (582 ) Share-based compensation expense — 10,435 — — — 10,435 Balance as of December 31, 2014 $ 1,228,095 $ 558,611 $ 52,004 $ 35,677 $ (1,316,516 ) $ 557,871 Retained Earnings Balance as of December 31, 2013 $ — $ 38,954 $ — $ 68,622 $ — $ 107,576 Net income 351,439 312,485 (1 ) 20,903 (440,963 ) 243,863 Balance as of December 31, 2014 $ 351,439 $ 351,439 $ (1 ) $ 89,525 $ (440,963 ) $ 351,439 |