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 (unaudited) (Thousands of dollars) March 31, 2017 Assets Parent Company Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Current assets Cash and cash equivalents $ — $ 36,256 $ — $ — $ — $ 36,256 Accounts receivable—trade, less allowance for doubtful accounts of $1,891 in 2017 — 156,453 — — — 156,453 Inventories, at lower of cost or market — 166,476 — — — 166,476 Prepaid expenses and other current assets — 37,761 — — — 37,761 Total current assets — 396,946 — — — 396,946 Property, plant and equipment, at cost less accumulated depreciation and amortization of $792,912 in 2017 — 1,565,160 — 807 (807 ) 1,565,160 Investments in subsidiaries 1,975,084 144,916 — — (2,120,000 ) — Other assets — 40,630 — — — 40,630 Total assets $ 1,975,084 $ 2,147,652 $ — $ 807 $ (2,120,807 ) $ 2,002,736 Liabilities and Stockholders' Equity Current liabilities Current maturities of long-term debt $ — $ 67,210 $ — $ — $ — $ 67,210 Inter-company accounts payable 640,727 (435,136 ) (52,060 ) (153,531 ) — — Trade accounts payable and accrued liabilities — 388,448 — — (807 ) 387,641 Total current liabilities 640,727 20,522 (52,060 ) (153,531 ) (807 ) 454,851 Long-term debt, including capitalized lease obligations — 620,206 — — — 620,206 Deferred income taxes — 210,268 — — 210,268 Asset retirement obligations — 26,283 — — — 26,283 Deferred credits and other liabilities — 18,360 — — — 18,360 Total liabilities 640,727 895,639 (52,060 ) (153,531 ) (807 ) 1,329,968 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 March 31, 2017 ) 468 1 60 — (61 ) 468 Treasury Stock (9,991,524 shares held at March 31, 2017 ) (618,722 ) — — — — (618,722 ) Additional paid in capital (APIC) 1,206,366 567,246 52,004 87,543 (1,368,382 ) 544,777 Retained earnings 746,245 684,766 (4 ) 66,795 (751,557 ) 746,245 Total stockholders' equity 1,334,357 1,252,013 52,060 154,338 (2,120,000 ) 672,768 Total liabilities and stockholders' equity $ 1,975,084 $ 2,147,652 $ — $ 807 $ (2,120,807 ) $ 2,002,736 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 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 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 INCOME STATEMENT (unaudited) (Thousands of dollars) Three Months Ended March 31, 2017 Revenues Parent Company Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Petroleum product sales $ — $ 2,402,254 $ — $ — $ — $ 2,402,254 Merchandise sales — 565,790 — — — 565,790 Other operating revenues — 31,574 — — — 31,574 Total revenues $ — $ 2,999,618 $ — $ — $ — $ 2,999,618 Costs and Operating Expenses Petroleum product cost of goods sold — 2,329,333 — — — 2,329,333 Merchandise cost of goods sold — 476,961 — — — 476,961 Station and other operating expenses — 124,744 — — — 124,744 Depreciation and amortization — 27,012 — — — 27,012 Selling, general and administrative — 38,245 1 — — 38,246 Accretion of asset retirement obligations — 442 — — — 442 Total costs and operating expenses — 2,996,737 1 — — 2,996,738 Income (loss) from operations $ — $ 2,881 $ (1 ) $ — $ — $ 2,880 Other income (expense) Interest income — 47 — — — 47 Interest expense — (9,498 ) — — — (9,498 ) Gain (loss) on sale of assets — (3,498 ) — — — (3,498 ) Other nonoperating income — 232 — — — 232 Total other income (expense) $ — $ (12,717 ) $ — $ — $ — $ (12,717 ) Income (loss) before income taxes — (9,836 ) (1 ) — — (9,837 ) Income tax expense (benefit) — (6,811 ) — — — (6,811 ) Income (loss) — (3,025 ) (1 ) — — (3,026 ) Equity earnings in affiliates, net of tax (3,026 ) (1 ) — — 3,027 — Net Income (Loss) $ (3,026 ) $ (3,026 ) $ (1 ) $ — $ 3,027 $ (3,026 ) CONSOLIDATING INCOME STATEMENT (unaudited) (Thousands of dollars) Three Months Ended March 31, 2016 Revenues Parent Company Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Petroleum product sales $ — $ 1,888,284 $ — $ — $ — $ 1,888,284 Merchandise sales — 561,737 — — — 561,737 Other operating revenues — 40,241 — — — 40,241 Total revenues $ — $ 2,490,262 $ — $ — $ — $ 2,490,262 Costs and Operating Expenses Petroleum product cost of goods sold — 1,783,129 — — — 1,783,129 Merchandise cost of goods sold — 475,802 — — — 475,802 Station and other operating expenses — 116,774 — — — 116,774 Depreciation and amortization — 23,486 — — — 23,486 Selling, general and administrative — 31,502 1 — — 31,503 Accretion of asset retirement obligations — 413 — — — 413 Total costs and operating expenses — 2,431,106 1 — — 2,431,107 Income (loss) from operations $ — $ 59,156 $ (1 ) $ — $ — $ 59,155 Other income (expense) Interest income — 80 — — — 80 Interest expense — (9,388 ) — — — (9,388 ) Gain (loss) on sale of assets — 89,465 — — — 89,465 Other nonoperating income — 33 — — — 33 Total other income (expense) $ — $ 80,190 $ — $ — $ — $ 80,190 Income (loss) before income taxes — 139,346 (1 ) — — 139,345 Income tax expense (benefit) — 53,471 — — — 53,471 Income (loss) — 85,875 (1 ) — — 85,874 Equity earnings in affiliates, net of tax 85,874 (1 ) — — (85,873 ) — Net Income (Loss) $ 85,874 $ 85,874 $ (1 ) $ — $ (85,873 ) $ 85,874 CONSOLIDATING STATEMENT OF CASH FLOW (unaudited) (Thousands of dollars) Three Months Ended March 31, 2017 Operating Activities Parent Company Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ (3,026 ) $ (3,026 ) $ (1 ) $ — $ 3,027 $ (3,026 ) Adjustments to reconcile net income (loss) to net cash provided by (required by) operating activities Depreciation and amortization — 27,012 — — — 27,012 Deferred and noncurrent income tax charges (credits) — 5,612 — — — 5,612 Accretion of asset retirement obligations — 442 — — — 442 Pretax (gains) losses from sale of assets — 3,498 — — — 3,498 Net (increase) decrease in noncash operating working capital — (80,399 ) — — — (80,399 ) Equity in earnings of affiliates 3,026 1 — — (3,027 ) — Other operating activities - net — 914 — — 914 Net cash provided by (required by) operating activities — (45,946 ) (1 ) — — (45,947 ) Investing Activities Property additions — (65,090 ) — (807 ) — (65,897 ) Proceeds from sale of assets — 455 — — — 455 Changes in restricted cash — — — — — — Other investing activities - net — — — — — — Net cash required by investing activities — (64,635 ) — (807 ) — (65,442 ) Financing Activities Purchase of treasury stock (17,411 ) — — — — (17,411 ) Borrowings of debt — 42,500 — — — 42,500 Repayments of debt — (26,178 ) — — — (26,178 ) Debt issuance costs — — — — — — Amounts related to share-based compensation — (5,079 ) — — — (5,079 ) Net distributions to parent 17,411 (18,219 ) 1 807 — — Net cash provided by (required by) financing activities — (6,976 ) 1 807 — (6,168 ) Net increase (decrease) in cash and cash equivalents — (117,557 ) — — — (117,557 ) Cash and cash equivalents at January 1 — 153,813 — — — 153,813 Cash and cash equivalents at March 31 $ — $ 36,256 $ — $ — $ — $ 36,256 CONSOLIDATING STATEMENT OF CASH FLOW (unaudited) (Thousands of dollars) Three Months Ended March 31, 2016 Operating Activities Parent Company Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ 85,874 $ 85,874 $ (1 ) $ — $ (85,873 ) $ 85,874 Adjustments to reconcile net income (loss) to net cash provided by (required by)operating activities Depreciation and amortization — 23,486 — — — 23,486 Deferred and noncurrent income tax charges (credits) — 28,855 — — — 28,855 Accretion of asset retirement obligations — 413 — — — 413 Pretax (gains) losses from sale of assets — (89,465 ) — — — (89,465 ) Net (increase) decrease in noncash operating working capital — 24,847 — — — 24,847 Equity in earnings of affiliates (85,874 ) 1 — — 85,873 — Other operating activities - net — 2,904 — — — 2,904 Net cash provided by (required by) operating activities — 76,915 (1 ) — — 76,914 Investing Activities Property additions — (47,283 ) — — — (47,283 ) Proceeds from sale of assets — 86,011 — — — 86,011 Changes in restricted cash — (63,650 ) — — — (63,650 ) Other investing activities - net — (1,300 ) — — — (1,300 ) Net cash required by investing activities — (26,222 ) — — — (26,222 ) Financing Activities Purchase of treasury stock (150,010 ) — — — — (150,010 ) Borrowings of debt — 200,000 — — — 200,000 Repayments of debt — (73 ) — — — (73 ) Debt issuance costs — (3,114 ) — — — (3,114 ) Amounts related to share-based compensation — (4,129 ) — — — (4,129 ) Net distributions to parent 150,010 (150,011 ) 1 — — — Net cash provided by (required by) financing activities — 42,673 1 — — 42,674 Net increase (decrease) in cash and cash equivalents — 93,366 — — — 93,366 Cash and cash equivalents at January 1 — 102,335 — — — 102,335 Cash and cash equivalents at March 31 $ — $ 195,701 $ — $ — $ — $ 195,701 CONSOLIDATING STATEMENT OF CHANGES IN EQUITY (unaudited) (Thousands of dollars) Three Months Ended March 31, 2017 Statement of Stockholders' Equity Parent Company Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Common Stock Balance as of December 31, 2016 $ 468 $ 1 $ 60 $ — $ (61 ) $ 468 Issuance of common stock — — — — — — Balance as of March 31, 2017 $ 468 $ 1 $ 60 $ — $ (61 ) $ 468 Treasury Stock Balance as of December 31, 2016 $ (608,001 ) $ — $ — $ — $ — $ (608,001 ) Issuance of common stock 6,690 — — — — 6,690 Repurchase of common stock (17,411 ) — — — — (17,411 ) Balance as of March 31, 2017 $ (618,722 ) $ — $ — $ — $ — $ (618,722 ) APIC Balance as of December 31, 2016 $ 1,213,056 $ 571,117 $ 52,004 $ 87,543 $ (1,368,382 ) $ 555,338 Issuance of common stock (6,690 ) — — — — (6,690 ) Amounts related to share-based compensation — (5,079 ) — — — (5,079 ) Share-based compensation expense — 1,208 — — — 1,208 Balance as of March 31, 2017 $ 1,206,366 $ 567,246 $ 52,004 $ 87,543 $ (1,368,382 ) $ 544,777 Retained Earnings Balance as of December 31, 2016 $ 749,271 $ 687,792 $ (3 ) $ 66,795 $ (754,584 ) $ 749,271 Net income (loss) (3,026 ) (3,026 ) (1 ) — 3,027 (3,026 ) Balance as of March 31, 2017 $ 746,245 $ 684,766 $ (4 ) $ 66,795 $ (751,557 ) $ 746,245 CONSOLIDATING STATEMENT OF CHANGES IN EQUITY (unaudited) (Thousands of dollars) Three Months Ended March 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 March 31, 2016 $ 468 $ 1 $ 60 $ — $ (61 ) $ 468 Treasury Stock Balance as of December 31, 2015 $ (294,139 ) $ — $ — $ — $ — $ (294,139 ) Issuance of common stock 6,091 — — — — 6,091 Repurchase of common stock (150,010 ) — — — — (150,010 ) Balance as of March 31, 2016 $ (438,058 ) $ — $ — $ — $ — $ (438,058 ) APIC Balance as of December 31, 2015 $ 1,222,465 $ 564,554 $ 52,004 $ 87,543 $ (1,368,384 ) $ 558,182 Issuance of common stock (6,091 ) — — — — (6,091 ) Amounts related to share-based compensation — (4,129 ) — — — (4,129 ) Share-based compensation expense — 1,589 — — — 1,589 Balance as of March 31, 2016 $ 1,216,374 $ 562,014 $ 52,004 $ 87,543 $ (1,368,384 ) $ 549,551 Retained Earnings Balance as of December 31, 2015 $ 527,779 $ 466,300 $ (2 ) $ 66,795 $ (533,093 ) $ 527,779 Net income (loss) 85,874 85,874 (1 ) — (85,873 ) 85,874 Balance as of March 31, 2016 $ 613,653 $ 552,174 $ (3 ) $ 66,795 $ (618,966 ) $ 613,653 |