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 and the 5.625% senior notes due 2027. 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, 2017 Assets Parent Company Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Current assets Cash and cash equivalents $ — $ 169,978 $ 50 $ — $ — $ 170,028 Accounts receivable—trade, less allowance for doubtful accounts of $1,094 in 2017 — 225,268 — — — 225,268 Inventories, at lower of cost or market — 182,477 — — — 182,477 Prepaid expenses and other current assets — 36,507 14 — — 36,521 Total current assets — 614,230 64 — — 614,294 Property, plant and equipment, at cost less accumulated depreciation and amortization of $874,675 in 2017 — 1,678,298 1,172 — — 1,679,470 Investments in subsidiaries 2,223,374 144,898 — — (2,368,272 ) — Other assets — 37,275 — — — 37,275 Total assets $ 2,223,374 $ 2,474,701 $ 1,236 $ — $ (2,368,272 ) $ 2,331,039 Liabilities and Stockholders' Equity Current liabilities Current maturities of long-term debt $ — $ 19,887 $ — $ — $ — $ 19,887 Inter-company accounts payable 829,202 (624,065 ) (50,799 ) (154,338 ) — — Trade accounts payable and accrued liabilities — 513,471 (7 ) — — 513,464 Income taxes payable — — — — — — Total current liabilities 829,202 (90,707 ) (50,806 ) (154,338 ) — 533,351 Long-term debt, including capitalized lease obligations — 860,864 — — — 860,864 Deferred income taxes — 154,245 — — — 154,245 Asset retirement obligations — 28,159 — — — 28,159 Deferred credits and other liabilities — 16,018 — — — 16,018 Total liabilities 829,202 968,579 (50,806 ) (154,338 ) — 1,592,637 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, 2017) 468 1 60 — (61 ) 468 Treasury stock (12,675,630 shares held at December 31, 2017) (806,511 ) — — — — (806,511 ) Additional paid in capital (APIC) 1,205,680 573,065 52,004 87,543 (1,368,382 ) 549,910 Retained earnings 994,535 933,056 (22 ) 66,795 (999,829 ) 994,535 Total stockholders' equity 1,394,172 1,506,122 52,042 154,338 (2,368,272 ) 738,402 Total liabilities and stockholders' equity $ 2,223,374 $ 2,474,701 $ 1,236 $ — $ (2,368,272 ) $ 2,331,039 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 (Thousands of dollars) Year ended December 31, 2017 Operating Revenues Parent Company Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Petroleum product sales $ — $ 10,287,856 $ — $ — $ — $ 10,287,856 Merchandise sales — 2,372,658 — — — 2,372,658 Other operating revenues — 166,037 2 — — 166,039 Total operating revenues — 12,826,551 2 — — 12,826,553 Operating expenses Petroleum product cost of goods sold — 9,773,211 — — — 9,773,211 Merchandise cost of goods sold — 1,991,404 — — — 1,991,404 Station and other operating expenses — 514,866 7 — — 514,873 Depreciation and amortization — 116,942 24 — — 116,966 Selling, general and administrative — 141,170 1 — — 141,171 Accretion of asset retirement obligations — 1,785 — — — 1,785 Total operating expenses — 12,539,378 32 — — 12,539,410 Gain (loss) on sale of assets — (3,950 ) — — — (3,950 ) Income from operations — 283,223 (30 ) — — 283,193 Other income (expense) Interest income — 1,309 — — — 1,309 Interest expense — (46,660 ) — — — (46,660 ) Other nonoperating income — 2,180 — — — 2,180 Total other income (expense) — (43,171 ) — — — (43,171 ) Income from continuing operations before income taxes — 240,052 (30 ) — — 240,022 Income tax expense (benefit) — (5,231 ) (11 ) — — (5,242 ) Income (loss) — 245,283 (19 ) — — 245,264 Income (loss) from discontinued operations, net of income taxes — — — — — — Equity earnings in affiliates, net of tax 245,264 (19 ) — — (245,245 ) — Net Income (Loss) $ 245,264 $ 245,264 $ (19 ) $ — $ (245,245 ) $ 245,264 CONSOLIDATING INCOME STATEMENT (Thousands of dollars) Year ended December 31, 2016 Operating 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 Ethanol sales and other — 185,344 — — — 185,344 Total operating revenues — 11,594,553 — — — 11,594,553 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 operating expenses — 11,294,687 1 — — 11,294,688 Gain (loss) on sale of assets — 88,212 — — — 88,212 Income from operations — 388,078 (1 ) — — 388,077 Other income (expense) Interest income — 578 — — — 578 Interest expense — (39,704 ) — — — (39,704 ) Other nonoperating income — 3,080 — — — 3,080 Total other income (expense) — (36,046 ) — — — (36,046 ) Income from continuing operations before income taxes — 352,032 (1 ) — — 352,031 Income tax expense (benefit) — 130,539 — — — 130,539 Income from continuing operations — 221,493 (1 ) — — 221,492 Income (loss) from discontinued operations, net of income taxes — — — — — — Equity earnings in affiliates, net of tax 221,492 (1 ) — — (221,491 ) — Net Income $ 221,492 $ 221,492 $ (1 ) $ — $ (221,491 ) $ 221,492 CONSOLIDATING INCOME STATEMENT (Thousands of dollars) Year ended December 31, 2015 Operating 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 Ethanol sales and other — 120,834 — — — 120,834 Total operating revenues — 12,819,577 — — (120,166 ) 12,699,411 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 operating expenses — 12,564,812 1 — (120,166 ) 12,444,647 Gain (loss) on sale of assets — (4,658 ) — — — (4,658 ) Income from operations — 250,107 (1 ) — — 250,106 Other income (expense) Interest income — 2,177 — — — 2,177 Interest expense — (33,531 ) — — — (33,531 ) Other nonoperating income — (463 ) — — — (463 ) Total other income (expense) — (31,817 ) — — — (31,817 ) Income from continuing operations before income taxes — 218,290 (1 ) — — 218,289 Income tax expense (benefit) — 80,698 — — — 80,698 Income 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 $ 176,340 $ 114,861 $ (1 ) $ (22,730 ) $ (92,130 ) $ 176,340 CONSOLIDATING STATEMENT OF CASH FLOWS (Thousands of dollars) Year ended December 31, 2017 Operating Activities Parent Company Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ 245,264 $ 245,264 $ (19 ) $ — $ (245,245 ) $ 245,264 Adjustments to reconcile net income (loss) to net cash provided by operating activities Income from discontinued operations, net of tax — — — — — — Depreciation and amortization — 116,942 24 — — 116,966 Deferred and noncurrent income tax charges (benefits) — (50,411 ) — — — (50,411 ) Accretion of asset retirement obligations — 1,785 — — — 1,785 (Gain) loss from sale of assets — 3,950 — — — 3,950 Net decrease (increase) in noncash operating working capital — (36,933 ) (21 ) — — (36,954 ) Equity in earnings (245,264 ) 19 — — 245,245 — Other operating activities - net — 3,025 — — — 3,025 Net cash provided by (required by) operating activities — 283,641 (16 ) — — 283,625 Investing Activities Property additions — (257,062 ) (1,195 ) — — (258,257 ) Proceeds from sale of assets — 887 — — — 887 Changes in restricted cash — — — — — — Other investing activities - net — (4,737 ) — — — (4,737 ) Sales proceeds — — — — — — Other — — — — — — Net cash provided by (required by) investing activities — (260,912 ) (1,195 ) — — (262,107 ) Financing Activities Purchase of treasury stock (205,992 ) — — — — (205,992 ) Repayments of long-term debt — (131,412 ) — — — (131,412 ) Additions to long-term debt — 338,750 — — — 338,750 Debt issuance costs — (1,100 ) — — — (1,100 ) Amounts related to share-based compensation — (5,549 ) — — — (5,549 ) Net distributions to parent 205,992 (207,253 ) 1,261 — — — Net cash provided by (required by) financing activities — (6,564 ) 1,261 — — (5,303 ) Net change in cash and cash equivalents — 16,165 50 — — 16,215 Cash and cash equivalents at January 1 — 153,813 — — — 153,813 Cash and cash equivalents at December 31 $ — $ 169,978 $ 50 $ — $ — $ 170,028 Less: Cash and cash equivalents held for sale — — — — — — Cash and cash equivalents of continuing operations at December 31 $ — $ 169,978 $ 50 $ — $ — $ 170,028 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 provided by 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 gains 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 CHANGES IN EQUITY (Thousands of dollars) Year ended December 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 December 31, 2017 $ 468 $ 1 $ 60 $ — $ (61 ) $ 468 Treasury Stock Balance as of December 31, 2016 $ (608,001 ) $ — $ — $ — $ — $ (608,001 ) Issuance of common stock 7,482 — — — — 7,482 Repurchase of common stock (205,992 ) — — — — (205,992 ) Balance as of December 31, 2017 $ (806,511 ) $ — $ — $ — $ — $ (806,511 ) 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 (7,374 ) — — — — (7,374 ) Amounts related to share-based compensation — (5,549 ) — — — (5,549 ) Share-based compensation expense — 7,495 — — — 7,495 Balance as of December 31, 2017 $ 1,205,682 $ 573,063 $ 52,004 $ 87,543 $ (1,368,382 ) $ 549,910 Retained Earnings Balance as of December 31, 2016 $ 749,271 $ 687,792 $ (3 ) $ 66,795 $ (754,584 ) $ 749,271 Net income 245,264 245,264 (19 ) — (245,245 ) 245,264 Balance as of December 31, 2017 $ 994,535 $ 933,056 $ (22 ) $ 66,795 $ (999,829 ) $ 994,535 CONSOLIDATING STATEMENTS 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 ) Reclassification of equity — — — — — — 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 CONSOLIDATED 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 ) — 51,866 (51,866 ) (3,075 ) 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 |