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 (Millions of dollars, except share amounts) June 30, 2018 Assets Parent Company Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Current assets Cash and cash equivalents $ — $ 71.5 $ 0.4 $ — $ — $ 71.9 Accounts receivable—trade, less allowance for doubtful accounts of $1.1 in 2018 — 230.5 — — — 230.5 Inventories, at lower of cost or market — 205.1 — — — 205.1 Prepaid expenses and other current assets — 29.0 — — — 29.0 Total current assets — 536.1 0.4 — — 536.5 Property, plant and equipment, at cost less accumulated depreciation and amortization of $927.4 in 2018 — 1,712.6 2.0 — — 1,714.6 Investments in subsidiaries 2,314.5 144.8 — — (2,459.3 ) — Other assets — 41.7 — — — 41.7 Total assets $ 2,314.5 $ 2,435.2 $ 2.4 $ — $ (2,459.3 ) $ 2,292.8 Liabilities and Stockholders' Equity Current liabilities Current maturities of long-term debt $ — $ 21.1 $ — $ — $ — $ 21.1 Inter-company accounts payable 973.6 (769.7 ) (49.6 ) (154.3 ) — — Trade accounts payable and accrued liabilities — 529.1 — — — 529.1 Total current liabilities 973.6 (219.5 ) (49.6 ) (154.3 ) — 550.2 Long-term debt, including capitalized lease obligations — 850.8 — — — 850.8 Deferred income taxes — 165.7 — — — 165.7 Asset retirement obligations — 29.6 — — — 29.6 Deferred credits and other liabilities — 10.2 — — — 10.2 Total liabilities 973.6 836.8 (49.6 ) (154.3 ) — 1,606.5 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 June 30, 2018) 0.5 — 0.1 — (0.1 ) 0.5 Treasury Stock (14,591,495 shares held at June 30, 2018) (945.9 ) — — — — (945.9 ) Additional paid in capital (APIC) 1,200.7 574.3 52.0 87.5 (1,368.4 ) 546.1 Retained earnings 1,085.6 1,024.1 (0.1 ) 66.8 (1,090.8 ) 1,085.6 Total stockholders' equity 1,340.9 1,598.4 52.0 154.3 (2,459.3 ) 686.3 Total liabilities and stockholders' equity $ 2,314.5 $ 2,435.2 $ 2.4 $ — $ (2,459.3 ) $ 2,292.8 CONSOLIDATING BALANCE SHEET (Millions of dollars, except share amounts) December 31, 2017 Assets Parent Company Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Current assets Cash and cash equivalents $ — $ 169.9 $ 0.1 $ — $ — $ 170.0 Accounts receivable—trade, less allowance for doubtful accounts of $1.1 in 2017 — 225.2 — — — 225.2 Inventories, at lower of cost or market — 182.5 — — — 182.5 Prepaid expenses and other current assets — 36.5 — — — 36.5 Total current assets — 614.1 0.1 — — 614.2 Property, plant and equipment, at cost less accumulated depreciation and amortization of $874.7 in 2017 — 1,678.3 1.2 — — 1,679.5 Investments in subsidiaries 2,223.4 144.9 — — (2,368.3 ) — Other assets — 37.3 — — — 37.3 Total assets $ 2,223.4 $ 2,474.6 $ 1.3 $ — $ (2,368.3 ) $ 2,331.0 Liabilities and Stockholders' Equity Current liabilities Current maturities of long-term debt $ — $ 19.9 $ — $ — $ — $ 19.9 Inter-company accounts payable 829.2 (624.1 ) (50.8 ) (154.3 ) — — Trade accounts payable and accrued liabilities — 513.4 — — — 513.4 Total current liabilities 829.2 (90.8 ) (50.8 ) (154.3 ) — 533.3 Long-term debt, including capitalized lease obligations — 860.9 — — — 860.9 Deferred income taxes — 154.2 — — — 154.2 Asset retirement obligations — 28.2 — — — 28.2 Deferred credits and other liabilities — 16.0 — — — 16.0 Total liabilities 829.2 968.5 (50.8 ) (154.3 ) — 1,592.6 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) 0.5 — 0.1 — (0.1 ) 0.5 Treasury Stock (12,675,630 shares held at December 31, 2017) (806.5 ) — — — — (806.5 ) Additional paid in capital (APIC) 1,205.7 573.1 52.0 87.5 (1,368.4 ) 549.9 Retained earnings 994.5 933.0 — 66.8 (999.8 ) 994.5 Total stockholders' equity 1,394.2 1,506.1 52.1 154.3 (2,368.3 ) 738.4 Total liabilities and stockholders' equity $ 2,223.4 $ 2,474.6 $ 1.3 $ — $ (2,368.3 ) $ 2,331.0 CONSOLIDATING INCOME STATEMENT (Millions of dollars) Three Months Ended June 30, 2018 Operating Revenues Parent Company Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Petroleum product sales $ — $ 3,193.7 $ — $ — $ — $ 3,193.7 Merchandise sales — 616.1 — — — 616.1 Other operating revenues — 19.2 — — — 19.2 Total operating revenues — 3,829.0 — — — 3,829.0 Operating Expenses Petroleum product cost of goods sold — 3,032.5 — — — 3,032.5 Merchandise cost of goods sold — 513.8 — — — 513.8 Station and other operating expenses — 134.8 — — — 134.8 Depreciation and amortization — 33.0 — — — 33.0 Selling, general and administrative — 35.2 — — — 35.2 Accretion of asset retirement obligations — 0.5 — — — 0.5 Total operating expenses — 3,749.8 — — — 3,749.8 Net settlement proceeds — 3.4 — — — 3.4 Gain (loss) on sale of assets — (0.5 ) — — — (0.5 ) Income (loss) from operations — 82.1 — — — 82.1 Other income (expense) Interest income — 0.3 — — — 0.3 Interest expense — (13.4 ) — — — (13.4 ) Other nonoperating income — 0.1 — — — 0.1 Total other income (expense) — (13.0 ) — — — (13.0 ) Income (loss) before income taxes — 69.1 — — — 69.1 Income tax expense — 17.3 — — — 17.3 Income (loss) — 51.8 — — — 51.8 Equity earnings in affiliates, net of tax 51.8 — — — (51.8 ) — Net Income (Loss) $ 51.8 $ 51.8 $ — $ — $ (51.8 ) $ 51.8 CONSOLIDATING INCOME STATEMENT (Millions of dollars) Three Months Ended June 30, 2017 Operating Revenues Parent Company Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Petroleum product sales $ — $ 2,567.8 $ — $ — $ — $ 2,567.8 Merchandise sales — 605.7 — — — 605.7 Other operating revenues — 37.6 — — — 37.6 Total operating revenues — 3,211.1 — — — 3,211.1 Operating Expenses Petroleum product cost of goods sold — 2,413.2 — — — 2,413.2 Merchandise cost of goods sold — 507.9 — — — 507.9 Station and other operating expenses — 129.4 — — — 129.4 Depreciation and amortization — 27.5 — — — 27.5 Selling, general and administrative — 31.4 — — — 31.4 Accretion of asset retirement obligations — 0.5 — — — 0.5 Total operating expenses — 3,109.9 — — — 3,109.9 Net settlement proceeds — — — — — — Gain (loss) on sale of assets — 0.1 — — — 0.1 Income (loss) from operations — 101.3 — — — 101.3 Other income (expense) Interest income — 0.4 — — — 0.4 Interest expense — (11.8 ) — — — (11.8 ) Other nonoperating income — — — — — — Total other income (expense) — (11.4 ) — — — (11.4 ) Income (loss) before income taxes — 89.9 — — — 89.9 Income tax expense — 34.4 — — — 34.4 Income (loss) — 55.5 — — — 55.5 Equity earnings in affiliates, net of tax 55.5 — — — (55.5 ) — Net Income (Loss) $ 55.5 $ 55.5 $ — $ — $ (55.5 ) $ 55.5 CONSOLIDATING INCOME STATEMENT (Millions of dollars) Six Months Ended June 30, 2018 Operating Revenues Parent Company Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Petroleum product sales $ — $ 5,831.3 $ — $ — $ — $ 5,831.3 Merchandise sales — 1,183.8 — — — 1,183.8 Other operating revenues — 58.1 — — — 58.1 Total operating revenues — 7,073.2 — — — 7,073.2 Operating Expenses Petroleum product cost of goods sold — 5,593.6 — — — 5,593.6 Merchandise cost of goods sold — 990.0 — — — 990.0 Station and other operating expenses — 262.2 — — — 262.2 Depreciation and amortization — 64.8 — — — 64.8 Selling, general and administrative — 69.7 — — — 69.7 Accretion of asset retirement obligations — 1.0 — — — 1.0 Total operating expenses — 6,981.3 — — — 6,981.3 Net settlement proceeds — 50.4 — — — 50.4 Gain (loss) on sale of assets — (0.2 ) — — — (0.2 ) Income (loss) from operations — 142.1 — — — 142.1 Other income (expense) Interest income — 0.6 — — — 0.6 Interest expense — (26.4 ) — — — (26.4 ) Other nonoperating income — 0.2 (0.1 ) — — 0.1 Total other income (expense) — (25.6 ) (0.1 ) — — (25.7 ) Income (loss) before income taxes — 116.5 (0.1 ) — — 116.4 Income tax expense — 25.3 — — — 25.3 Income (loss) — 91.2 (0.1 ) — — 91.1 Equity earnings in affiliates, net of tax 91.1 (0.1 ) — — (91.0 ) — Net Income (Loss) $ 91.1 $ 91.1 $ (0.1 ) $ — $ (91.0 ) $ 91.1 CONSOLIDATING INCOME STATEMENT (Millions of dollars) Six Months Ended June 30, 2017 Operating Revenues Parent Company Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Petroleum product sales $ — $ 4,970.0 $ — $ — $ — $ 4,970.0 Merchandise sales — 1,171.5 — — — 1,171.5 Other operating revenues — 69.2 — — — 69.2 Total operating revenues — 6,210.7 — — — 6,210.7 Operating Expenses Petroleum product cost of goods sold — 4,742.5 — — — 4,742.5 Merchandise cost of goods sold — 984.9 — — — 984.9 Station and other operating expenses — 254.2 — — — 254.2 Depreciation and amortization — 54.5 — — — 54.5 Selling, general and administrative — 69.6 — — — 69.6 Accretion of asset retirement obligations — 0.9 — — — 0.9 Total operating expenses — 6,106.6 — — — 6,106.6 Net settlement proceeds — — — — — — Gain (loss) on sale of assets — (3.4 ) — — — (3.4 ) Income (loss) from operations — 100.7 — — — 100.7 Other income (expense) Interest income — 0.4 — — — 0.4 Interest expense — (21.2 ) — — — (21.2 ) Other nonoperating income — 0.2 — — — 0.2 Total other income (expense) — (20.6 ) — — — (20.6 ) Income (loss) before income taxes — 80.1 — — — 80.1 Income tax expense — 27.6 — — — 27.6 Income (loss) — 52.5 — — — 52.5 Equity earnings in affiliates, net of tax 52.5 — — — (52.5 ) — Net Income (Loss) $ 52.5 $ 52.5 $ — $ — $ (52.5 ) $ 52.5 CONSOLIDATING STATEMENT OF CASH FLOW (Millions of dollars) Six Months Ended June 30, 2018 Operating Activities Parent Company Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ 91.1 $ 91.1 $ (0.1 ) $ — $ (91.0 ) $ 91.1 Adjustments to reconcile net income (loss) to net cash provided by (required by) operating activities Depreciation and amortization — 64.8 — — — 64.8 Deferred and noncurrent income tax charges (credits) — 11.4 — — — 11.4 Accretion of asset retirement obligations — 1.0 — — — 1.0 (Gain) loss on sale of assets — 0.2 — — — 0.2 Net decrease in noncash operating working capital — (4.6 ) — — — (4.6 ) Equity in earnings of affiliates (91.1 ) 0.1 — — 91.0 — Other operating activities - net — 2.4 — — — 2.4 Net cash provided by (required by) operating activities — 166.4 (0.1 ) — — 166.3 Investing Activities Property additions — (101.5 ) (0.8 ) — — (102.3 ) Proceeds from sale of assets — 1.2 — — — 1.2 Other investing activities - net — (4.9 ) — — — (4.9 ) Net cash provided by (required by) investing activities — (105.2 ) (0.8 ) — — (106.0 ) Financing Activities Purchase of treasury stock (144.4 ) — — — — (144.4 ) Borrowings of debt — — — — — — Repayments of debt — (10.6 ) — — — (10.6 ) Debt issuance costs — — — — — — Amounts related to share-based compensation — (3.4 ) — — — (3.4 ) Net distributions to parent 144.4 (145.6 ) 1.2 — — — Net cash provided by (required by) financing activities — (159.6 ) 1.2 — — (158.4 ) Net increase (decrease) in cash and cash equivalents — (98.4 ) 0.3 — — (98.1 ) Cash, cash equivalents, and restricted cash at January 1 — 169.9 0.1 — — 170.0 Cash, cash equivalents, and restricted cash at June 30 $ — $ 71.5 $ 0.4 $ — $ — $ 71.9 Reconciliation of Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents at beginning of period $ — $ 169.9 $ 0.1 $ — $ — $ 170.0 Restricted cash at beginning of period — — — — — — Cash, cash equivalents, and restricted cash at beginning of period $ — $ 169.9 $ 0.1 $ — $ — $ 170.0 Cash and cash equivalents at end of period $ — $ 71.5 $ 0.4 $ — $ — $ 71.9 Restricted cash at end of period — — — — — — Cash, cash equivalents, and restricted cash at end of period $ — $ 71.5 $ 0.4 $ — $ — $ 71.9 CONSOLIDATING STATEMENT OF CASH FLOW (Millions of dollars) Six Months Ended June 30, 2017 Operating Activities Parent Company Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ 52.5 $ 52.5 $ — $ — $ (52.5 ) $ 52.5 Adjustments to reconcile net income (loss) to net cash provided by (required by)operating activities Depreciation and amortization — 54.5 — — — 54.5 Deferred and noncurrent income tax charges (credits) — 13.0 — — — 13.0 Accretion of asset retirement obligations — 0.9 — — — 0.9 Pretax (gains) losses from sale of assets — 3.4 — — — 3.4 Net decrease in noncash operating working capital — (84.7 ) — — — (84.7 ) Equity in earnings of affiliates (52.5 ) — — — 52.5 — Other operating activities - net — 0.8 — — — 0.8 Net cash provided by (required by) operating activities — 40.4 — — — 40.4 Investing Activities Property additions — (133.4 ) (0.8 ) — — (134.2 ) Proceeds from sale of assets — 0.7 — — — 0.7 Other investing activities - net — (4.1 ) — — — (4.1 ) Net cash provided by (required by) investing activities — (136.8 ) (0.8 ) — — (137.6 ) Financing Activities Purchase of treasury stock (66.3 ) — — — — (66.3 ) Borrowings of debt — 338.8 — — — 338.8 Repayments of debt — (125.9 ) — — — (125.9 ) Debt issuance costs — (0.9 ) — — — (0.9 ) Amounts related to share-based compensation — (5.2 ) — — — (5.2 ) Net distributions to parent 66.3 (67.1 ) 0.8 — — — Net cash provided by (required) by financing activities — 139.7 0.8 — — 140.5 Net increase (decrease) in cash and cash equivalents — 43.3 — — — 43.3 Cash, cash equivalents, and restricted cash at January 1 — 153.8 — — — 153.8 Cash, cash equivalents, and restricted cash at June 30 $ — $ 197.1 $ — $ — $ — $ 197.1 Reconciliation of Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents at beginning of period $ — $ 153.8 $ — $ — $ — $ 153.8 Restricted cash at beginning of period — — — — — — Cash, cash equivalents, and restricted cash at beginning of period $ — $ 153.8 $ — $ — $ — $ 153.8 Cash and cash equivalents at end of period $ — $ 197.1 $ — $ — $ — $ 197.1 Restricted cash at end of period — — — — — — Cash, cash equivalents, and restricted cash at end of period $ — $ 197.1 $ — $ — $ — $ 197.1 CONSOLIDATING STATEMENT OF CHANGES IN EQUITY (Millions of dollars) Six Months Ended June 30, 2018 Statement of Stockholders' Equity Parent Company Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Common Stock Balance as of December 31, 2017 $ 0.5 $ — $ 0.1 $ — $ (0.1 ) $ 0.5 Issuance of common stock — — — — — — Balance as of June 30, 2018 $ 0.5 $ — $ 0.1 $ — $ (0.1 ) $ 0.5 Treasury Stock Balance as of December 31, 2017 $ (806.5 ) $ — $ — $ — $ — $ (806.5 ) Issuance of treasury stock 5.0 — — — — 5.0 Repurchase of treasury stock (144.4 ) — — — — (144.4 ) Balance as of June 30, 2018 $ (945.9 ) $ — $ — $ — $ — $ (945.9 ) APIC Balance as of December 31, 2017 $ 1,205.7 $ 573.1 $ 52.0 $ 87.5 $ (1,368.4 ) $ 549.9 Issuance of treasury stock (5.0 ) — — — — (5.0 ) Amounts related to share-based compensation — (3.4 ) — — — (3.4 ) Share-based compensation expense — 4.6 — — — 4.6 Balance as of June 30, 2018 $ 1,200.7 $ 574.3 $ 52.0 $ 87.5 $ (1,368.4 ) $ 546.1 Retained Earnings Balance as of December 31, 2017 $ 994.5 $ 933.0 $ — $ 66.8 $ (999.8 ) $ 994.5 Net income (loss) 91.1 91.1 (0.1 ) — (91.0 ) 91.1 Balance as of June 30, 2018 $ 1,085.6 $ 1,024.1 $ (0.1 ) $ 66.8 $ (1,090.8 ) $ 1,085.6 CONSOLIDATING STATEMENT OF CHANGES IN EQUITY (Millions of dollars) Six Months Ended June 30, 2017 Statement of Stockholders' Equity Parent Company Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Common Stock Balance as of December 31, 2016 $ 0.5 $ — $ 0.1 $ — $ (0.1 ) $ 0.5 Issuance of common stock — — — — — — Balance as of June 30, 2017 $ 0.5 $ — $ 0.1 $ — $ (0.1 ) $ 0.5 Treasury Stock Balance as of December 31, 2016 $ (608.0 ) $ — $ — $ — $ — $ (608.0 ) Issuance of treasury stock 6.8 — — — — 6.8 Repurchase of treasury stock (66.3 ) — — — — (66.3 ) Balance as of June 30, 2017 $ (667.5 ) $ — $ — $ — $ — $ (667.5 ) APIC Balance as of December 31, 2016 $ 1,213.1 $ 571.1 $ 52.0 $ 87.5 $ (1,368.4 ) $ 555.3 Issuance of treasury stock (6.8 ) — — — — (6.8 ) Amounts related to share-based compensation — (5.2 ) — — — (5.2 ) Share-based compensation expense — 2.5 — — — 2.5 Balance as of June 30, 2017 $ 1,206.3 $ 568.4 $ 52.0 $ 87.5 $ (1,368.4 ) $ 545.8 Retained Earnings Balance as of December 31, 2016 $ 749.3 $ 687.8 $ — $ 66.8 $ (754.6 ) $ 749.3 Net income (loss) 52.5 52.5 — — (52.5 ) 52.5 Balance as of June 30, 2017 $ 801.8 $ 740.3 $ — $ 66.8 $ (807.1 ) $ 801.8 |