Cover
Cover - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Jan. 31, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-35914 | ||
Entity Registrant Name | MURPHY USA INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 46-2279221 | ||
Entity Address, Address Line One | 200 Peach Street | ||
Entity Address, City or Town | El Dorado, | ||
Entity Address, State or Province | AR | ||
Entity Address, Postal Zip Code | 71730-5836 | ||
City Area Code | 870 | ||
Local Phone Number | 875-7600 | ||
Title of 12(b) Security | Common Stock, $0.01 Par Value | ||
Trading Symbol | MUSA | ||
Security Exchange Name | NYSE | ||
Entity Well-Known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Company | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,447,482 | ||
Entity Common Stock, Shares Outstanding | 24,832,797 | ||
Documents Incorporated by Reference | Portions of the Registrant’s definitive Proxy Statement relating to the Annual Meeting of Stockholders on May 5, 2022 will be incorporated by reference in Part III herein. | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001573516 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Houston, Texas |
Auditor Firm ID | 185 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Current assets | |||
Cash and cash equivalents | $ 256.4 | $ 163.6 | |
Accounts receivable—trade, less allowance for doubtful accounts of $0.1 in 2021 and 2020 | 195.7 | 168.8 | |
Inventories, at lower of cost or market | 292.3 | 279.1 | |
Prepaid expenses and other current assets | 23.4 | 13.7 | |
Total current assets | 767.8 | 625.2 | |
Property, plant and equipment, at cost less accumulated depreciation and amortization of $1,373.4 in 2021 and $1,191.4 in 2020 | 2,378.4 | 1,867.6 | |
Operating lease right of use assets, net | [1] | 419.2 | 147.7 |
Total intangible assets | [1] | 140.7 | 34.6 |
Goodwill | 328 | 0 | |
Other assets | [1] | 14.1 | 10.6 |
Total assets at year-end | 4,048.2 | 2,685.7 | |
Current liabilities | |||
Current maturities of long-term debt | 15 | 51.2 | |
Trade accounts payable and accrued liabilities | 660.3 | 471.1 | |
Income taxes payable | 0 | 8.8 | |
Total current liabilities | 675.3 | 531.1 | |
Long-term debt, including capitalized lease obligations | 1,800.1 | 951.2 | |
Deferred income taxes | 295.9 | 218.4 | |
Asset retirement obligations | 39.2 | 35.1 | |
Non-current operating lease liabilities | [1] | 408.9 | 142.5 |
Deferred credits and other liabilities | [1] | 21.6 | 23.3 |
Total liabilities | 3,241 | 1,901.6 | |
Stockholders' Equity | |||
Preferred Stock, par $0.01, (authorized 20,000,000 shares, none outstanding) | 0 | 0 | |
Common Stock, par $0.01, (authorized 200,000,000 shares, 46,767,164 shares issued at December 31, 2021 and 2020, respectively) | 0.5 | 0.5 | |
Treasury stock (21,831,904 and 19,518,551 shares held at December 31, 2021 and 2020, respectively) | (1,839.3) | (1,490.9) | |
Additional paid in capital (APIC) | 534.8 | 533.3 | |
Retained earnings | 2,112.4 | 1,743.1 | |
Accumulated other comprehensive income (AOCI) | (1.2) | (1.9) | |
Total stockholders' equity | 807.2 | 784.1 | |
Total liabilities and stockholders' equity | $ 4,048.2 | $ 2,685.7 | |
[1] | Prior year amounts have been reclassified to conform with current period presentation |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Accounts receivable - trade, allowance for doubtful accounts | $ 0.1 | $ 0.1 |
Accumulated depreciation and amortization | $ 1,373.4 | $ 1,191.4 |
Stockholders' Equity | ||
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock shares outstanding (in shares) | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock shares issued (in shares) | 46,767,164 | 46,767,164 |
Treasury stock (in shares) | 21,831,904 | 19,518,551 |
Consolidated Income Statements
Consolidated Income Statements - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Operating Revenues | ||||
Sales and other operating revenues | $ 17,360.5 | $ 11,264.3 | $ 14,034.6 | |
Operating Expenses | ||||
Store and other operating expenses | 827.3 | 549.1 | 559.3 | |
Depreciation and amortization | 212.6 | 161 | 152.2 | |
Selling, general and administrative | 193.6 | 171.1 | 144.6 | |
Accretion of asset retirement obligations | 2.5 | 2.3 | 2.1 | |
Acquisition related costs | 10.4 | 1.7 | 0 | |
Total operating expenses | 16,758 | 10,706.6 | 13,766.3 | |
Net settlement proceeds | 0 | 0 | 0.1 | |
Gain (loss) on sale of assets | 1.5 | 1.3 | 0.1 | |
Income from operations | 604 | 559 | 268.5 | |
Other income (expense) | ||||
Interest income | 0.1 | 1 | 3.2 | |
Interest expense | (82.4) | (51.2) | (54.9) | |
Loss on early debt extinguishment | 0 | 0 | (14.8) | |
Other nonoperating income (expense) | 0.2 | 0.3 | 0.4 | |
Total other income (expense) | (82.1) | (49.9) | (66.1) | |
Income before income taxes | 521.9 | 509.1 | 202.4 | |
Income tax expense (benefit) | 125 | 123 | 47.6 | |
Net Income | $ 396.9 | $ 386.1 | $ 154.8 | |
Basic and Diluted Earnings Per Common Share: | ||||
Basic (in dollars per share) | $ 15.14 | $ 13.25 | $ 4.90 | |
Diluted (in dollars per share) | $ 14.92 | $ 13.08 | $ 4.86 | |
Weighted-average shares outstanding (in thousands): | ||||
Basic (in shares) | 26,210 | 29,132 | 31,594 | |
Diluted (in shares) | 26,604 | 29,526 | 31,858 | |
Supplemental information: | ||||
Excise taxes | $ 2,041.7 | $ 1,760 | $ 1,933.3 | |
Petroleum product sales | ||||
Operating Revenues | ||||
Sales and other operating revenues | [1] | 13,410.8 | 8,208.6 | 11,373.8 |
Operating Expenses | ||||
Operating expenses | [1] | 12,535.5 | 7,325.7 | 10,707.4 |
Merchandise sales | ||||
Operating Revenues | ||||
Sales and other operating revenues | 3,677.7 | 2,955.1 | 2,620.1 | |
Operating Expenses | ||||
Operating expenses | 2,976.1 | 2,495.7 | 2,200.7 | |
Other operating revenues | ||||
Operating Revenues | ||||
Sales and other operating revenues | $ 272 | $ 100.6 | $ 40.7 | |
[1] | Supplemental information: 1 Includes excise taxes of: $ 2,041.7 $ 1,760.0 $ 1,933.3 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 396.9 | $ 386.1 | $ 154.8 |
Interest rate swap: | |||
Initial fair value | 0 | 0 | (0.1) |
Realized gain (loss) | (0.1) | (0.9) | 0.2 |
Unrealized gain (loss) | 0.1 | (3.4) | 1 |
Reclassified to interest expense: | |||
Realized (gain) loss reclassified to interest expense | 0.1 | 0.9 | (0.2) |
Amortization of unrealized gain to interest expense | 0.9 | 0 | 0 |
Total | 1 | (3.4) | 0.9 |
Deferred income tax expense (benefit) | 0.3 | (0.8) | 0.2 |
Other comprehensive income (loss) | 0.7 | (2.6) | 0.7 |
Comprehensive income | $ 397.6 | $ 383.5 | $ 155.5 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Activities | |||
Net income | $ 396.9 | $ 386.1 | $ 154.8 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization | 212.6 | 161 | 152.2 |
Deferred and noncurrent income tax charges (benefits) | 19 | 2.5 | 23.7 |
Loss on early debt extinguishment | 0 | 0 | 14.8 |
Accretion of asset retirement obligations | 2.5 | 2.3 | 2.1 |
Pretax (gains) losses from sale of assets | (1.5) | (1.3) | (0.1) |
Net decrease (increase) in noncash operating working capital | 82.8 | (13.1) | (48.7) |
Other operating activities - net | 25.1 | 26.2 | 14.5 |
Net cash provided by operating activities | 737.4 | 563.7 | 313.3 |
Investing Activities | |||
Property additions | (274.7) | (230.7) | (204.8) |
Payments for acquisition, net of cash acquired | (641.1) | 0 | 0 |
Proceeds from sale of assets | 3.4 | 8.1 | 2.5 |
Other investing activities - net | (1.8) | (1.7) | (0.8) |
Net cash required by investing activities | (914.2) | (224.3) | (203.1) |
Financing Activities | |||
Purchase of treasury stock | (355) | (399.6) | (165.8) |
Dividends paid | (27.3) | (6.9) | 0 |
Repayments of debt | (224.3) | (38.9) | (573.4) |
Borrowings of debt | 892.8 | 0 | 743.8 |
Early debt extinguishment costs | 0 | 0 | (10.4) |
Debt issuance costs | (9.9) | 0 | (4.1) |
Amounts related to share-based compensation | (6.7) | (10.7) | (4.5) |
Net cash provided (required) by financing activities | 269.6 | (456.1) | (14.4) |
Net change in cash, cash equivalents, and restricted cash | 92.8 | (116.7) | 95.8 |
Cash, cash equivalents, and restricted cash at January 1 | 163.6 | 280.3 | 184.5 |
Cash, cash equivalents, and restricted cash at December 31 | $ 256.4 | $ 163.6 | $ 280.3 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Treasury Stock | APIC | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | AOCI |
Beginning balance (in shares) at Dec. 31, 2018 | 46,767,164 | |||||||
Beginning balance at Dec. 31, 2018 | $ 807.3 | $ 0.5 | $ (940.3) | $ 539 | $ 1,208.1 | $ 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 154.8 | 154.8 | ||||||
Gain (loss) on interest rate hedge, net of tax | 0.7 | 0.7 | ||||||
Purchase of treasury stock | (165.8) | (165.8) | ||||||
Issuance of treasury stock | 0 | 6.3 | (6.3) | |||||
Amounts related to share-based compensation | (4.5) | (4.5) | ||||||
Share-based compensation expense | 10.5 | 10.5 | ||||||
Ending balance at Dec. 31, 2019 | 803 | $ 0.5 | (1,099.8) | 538.7 | 1,362.9 | 0.7 | ||
Ending balance (in shares) at Dec. 31, 2019 | 46,767,164 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 386.1 | $ 1.1 | 386.1 | $ 1.1 | ||||
Gain (loss) on interest rate hedge, net of tax | (2.6) | (2.6) | ||||||
Cash dividends declared | (6.9) | (6.9) | ||||||
Dividend equivalent units accrued | 0 | 0.1 | (0.1) | |||||
Purchase of treasury stock | (399.6) | (399.6) | ||||||
Issuance of treasury stock | (0.5) | 8.5 | (9) | |||||
Amounts related to share-based compensation | (10.7) | (10.7) | ||||||
Share-based compensation expense | 14.2 | 14.2 | ||||||
Ending balance at Dec. 31, 2020 | $ 784.1 | $ 0.5 | (1,490.9) | 533.3 | 1,743.1 | (1.9) | ||
Ending balance (in shares) at Dec. 31, 2020 | 46,767,164 | 46,767,164 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | $ 396.9 | 396.9 | ||||||
Gain (loss) on interest rate hedge, net of tax | 0.7 | 0.7 | ||||||
Cash dividends declared | (27.3) | (27.3) | ||||||
Dividend equivalent units accrued | 0 | 0.3 | (0.3) | |||||
Purchase of treasury stock | (355) | (355) | ||||||
Issuance of treasury stock | 0.1 | 6.6 | (6.5) | |||||
Amounts related to share-based compensation | (6.7) | (6.7) | ||||||
Share-based compensation expense | 14.4 | 14.4 | ||||||
Ending balance at Dec. 31, 2021 | $ 807.2 | $ 0.5 | $ (1,839.3) | $ 534.8 | $ 2,112.4 | $ (1.2) | ||
Ending balance (in shares) at Dec. 31, 2021 | 46,767,164 | 46,767,164 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared (in dollars per share) | $ 1.04 | $ 0.25 |
Description of Business and Bas
Description of Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation The business of Murphy USA Inc. and its subsidiaries (“Murphy USA” or the “Company”) primarily consists of the U.S. retail marketing business that was separated from its former parent company, Murphy Oil Corporation (“Murphy Oil”), plus other assets, liabilities and operating expenses of Murphy Oil that were associated with supporting the activities of the U.S. retail marketing operations. Murphy USA was incorporated in March 2013. The separation was approved by the Murphy Oil board of directors on August 7, 2013, and was completed on August 30, 2013 through the distribution of 100% of the outstanding capital stock of Murphy USA to holders of Murphy Oil common stock on the record date of August 21, 2013. Following the separation, Murphy USA is an independent, publicly traded company, and Murphy Oil retains no ownership interest in Murphy USA. On January 29, 2021, MUSA acquired 100% of Quick Chek Corporation ("QuickChek"), a privately held convenience store chain with a strong regional brand that consisted of 156 stores at the time of acquisition, located in New Jersey and New York, in an all-cash transaction. For additional information concerning the acquisition, see Note 5, "Business Acquisition". |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies PRINCIPLES OF CONSOLIDATION – These consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and include the accounts of Murphy USA Inc. and its subsidiaries for all periods presented. All significant intercompany accounts and transactions within the consolidated financial statements have been eliminated. REVENUE RECOGNITION – Revenue is recognized when obligations under the terms of a contract with our customers are satisfied; generally, this occurs with the transfer of control of our petroleum products, convenience merchandise, Renewable Identification Numbers ("RINs") and other assets to our third-party customers. Revenue is measured as the amounts of consideration we expect to receive in exchange for transferring goods or providing services. Excise and sales tax that we collect where we have determined we are the principal in the transaction have been recorded as revenue on a jurisdiction-by-jurisdiction basis. The Company enters into buy/sell and similar arrangements when petroleum products are held at one location but are needed at a different location. The Company often pays or receives funds related to the buy/sell arrangement based on location or quality differences. The Company accounts for such transactions as non-monetary exchanges under existing accounting guidance and typically reports these on a net basis in its Consolidated Income Statements. See Note 3 "Revenues" for additional information. SHIPPING AND HANDLING COSTS – Costs incurred for the shipping and handling of motor fuel are included in Petroleum product cost of goods sold in the Consolidated Income Statements. Costs incurred for the shipping and handling of convenience store merchandise are included in Merchandise cost of goods sold in the Consolidated Income Statements. TAXES COLLECTED FROM CUSTOMERS AND REMITTED TO GOVERNMENT AUTHORITIES – Excise and other taxes collected on sales of refined products and remitted to governmental agencies are included in operating revenues and operating expenses in the Consolidated Income Statements. Excise taxes on petroleum products collected and remitted were $2.0 billion in 2021, $1.8 billion in 2020, and $1.9 billion in 2019. CASH EQUIVALENTS – Short-term investments, which include government securities, money market funds and other instruments with government securities as collateral, that have a maturity of three months or less from the date of purchase are classified as cash equivalents. ACCOUNTS RECEIVABLE – The Company’s accounts receivable are recorded at the invoiced amount and do not bear interest. The accounts receivable primarily consists of amounts owed to the Company from credit card companies and by customers for wholesale sales of refined petroleum products. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses on these receivables. The Company reviews this allowance for adequacy at least quarterly and bases its assessment on a combination of current information about its customers and historical write-off experience. Any trade accounts receivable balances written off are charged against the allowance for doubtful accounts. The Company has not experienced any significant credit-related losses in the past three years. INVENTORIES – Inventories of petroleum products located at Murphy branded stores are valued at the lower of cost, generally applied on a last-in, first-out (“LIFO”) basis, or market, while petroleum products located at QuickChek branded stores are valued at weighted average cost. Any increments to LIFO inventory volumes are valued based on the first purchase price for these volumes during the year. Merchandise inventories held for resale at Murphy branded stores are carried at average cost. Certain merchandise inventories at QuickChek stores are on a LIFO basis while all other items are valued on average cost. Materials and supplies are valued at the lower of average cost or estimated value. VENDOR ALLOWANCES AND REBATES – Murphy USA receives payments for vendor allowances, volume rebates and other related payments from various suppliers of its convenience store merchandise. Vendor allowances for price markdowns are credited to merchandise cost of goods sold during the period the related markdown is recognized. Volume rebates of merchandise are recorded as reductions to merchandise cost of goods sold when the merchandise qualifying for the rebate is sold. Slotting and stocking allowances received from a vendor are recorded as a reduction to cost of sales over the period covered by the agreement. BUSINESS COMBINATIONS – The Company accounts for business combinations under the purchase method of accounting. The purchase price of an acquisition is measured as the aggregate of the fair value of the consideration transferred. The purchase price is allocated to the fair values of the tangible and intangible assets acquired and liabilities assumed, with any excess recorded as goodwill. These fair value determinations require judgment and may involve the use of significant estimates and assumptions. The purchase price allocation may be provisional during a measurement period of up to one year to provide reasonable time to obtain the information necessary to identify and measure the assets acquired and liabilities assumed. Any such measurement period adjustments are recognized in the period in which the adjustment amount is determined. Transaction costs associated with the acquisition are expensed as incurred. PROPERTY, PLANT AND EQUIPMENT – Additions to property, plant and equipment, including renewals and betterments, are capitalized and recorded at cost. Certain marketing facilities are primarily depreciated using the composite straight-line method with depreciable lives ranging from 16 to 25 years. Gasoline stores, improvements to gasoline stores and other assets are depreciated over 3 to 50 years by individual unit on the straight-line method. The Company capitalizes interest costs as a component of construction in progress on individually significant projects based on the weighted average interest rates incurred on its long-term borrowings. Total interest cost capitalized was $2.1 million in 2021 and $1.4 million in 2020 and 2019. The Company has undertaken like-kind exchange ("LKE") transactions under the Federal tax code in an effort to acquire and sell real and personal property in a tax efficient manner. The Company generally enters into forward transactions, in which property is sold and the proceeds are reinvested by acquiring similar property; and reverse transactions, in which property is acquired and similar property is subsequently sold. A qualified LKE intermediary is used to facilitate these LKE transactions. Proceeds from forward LKE transactions are held by the intermediary and are classified as restricted cash on the Company's balance sheet because the funds must be reinvested in similar properties. If the acquisition of suitable LKE properties is not completed within 180 days of the sale of the Company-owned property, the proceeds are distributed to the Company by the intermediary and are reclassified as available cash and applicable income taxes are determined. An exchange accommodation titleholder, a type of variable interest entity, is used to facilitate reverse like-kind exchanges. The acquired assets are held by the exchange accommodation titleholder until the exchange transactions are complete. If the Company determines that it is the primary beneficiary of the exchange accommodation titleholder, the replacements assets held by the exchange accommodation titleholder are consolidated and recorded in Property, Plant and Equipment on the Consolidated Balance Sheets. The unspent proceeds that are held in trust with the intermediary are recorded as noncurrent assets in the Consolidated Balance Sheet as the cash was restricted for the acquisition of property, plant and equipment. At December 31, 2021 and 2020, the Company had no open LKE transactions with an intermediary. GOODWILL AND INTANGIBLE ASSETS – Goodwill represents the excess of the aggregate of the consideration transferred over the net assets acquired and liabilities assumed and is tested annually for impairment, or more frequently if there are indicators of impairment. Acquired finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, and are reviewed for impairment when events or circumstances indicate that the asset group to which the intangible assets belong might be impaired. The Company revises the estimated remaining useful life of these assets when events or changes in circumstances warrant a revision. If the Company revises the useful life, the unamortized balance is amortized over the useful life on a prospective basis. IMPAIRMENT OF ASSETS – Long-lived assets, which include property and equipment, and finite-lived and indefinite-lived intangible assets, are tested for recoverability whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. A long-lived asset is not recoverable if its carrying amount exceeds the sum of the undiscounted cash flows expected to result from its use and eventual disposition. If a long-lived asset is not recoverable, an impairment loss is recognized for the amount by which the carrying amount of the long-lived asset exceeds its fair value, with fair value determined based on discounted estimated net cash flows or other appropriate methods. ASSET RETIREMENT OBLIGATIONS – The Company records a liability for asset retirement obligations (“ARO”) equal to the fair value of the estimated cost to retire an asset. The ARO liability is initially recorded in the period in which the obligation meets the definition of a liability, which is generally when the asset is placed in service. The ARO liability is estimated using existing regulatory requirements and anticipated future inflation rates. When the liability is initially recorded, the Company increases the carrying amount of the related long-lived asset by an amount equal to the original liability. The liability is increased over time to reflect the change in its present value, and the capitalized cost is depreciated over the useful life of the related long-lived asset. The Company reevaluates the adequacy of its recorded ARO liability at least annually. Actual costs of asset retirements such as dismantling service stores and site restoration are charged against the related liability. Any difference between costs incurred upon settlement of an asset retirement obligation and the recorded liability is recognized as a gain or loss in the Company’s Consolidated Income Statements. ENVIRONMENTAL LIABILITIES – A liability for environmental matters is established when it is probable that an environmental obligation exists and the cost can be reasonably estimated. If there is a range of reasonably estimated costs, the most likely amount will be recorded, or if no amount is most likely, the minimum of the range is used. Related expenditures are charged against the liability. Environmental remediation liabilities have not been discounted for the time value of future expected payments. Environmental expenditures that have future economic benefit are capitalized. INCOME TAXES – The Company accounts for income taxes using the asset and liability method. Under this method, income taxes are provided for amounts currently payable and for amounts deferred as tax assets and liabilities based on differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. Deferred income taxes are measured using the enacted tax rates that are assumed will be in effect when the differences reverse. The Company routinely assesses the realizability of deferred tax assets based on available positive and negative evidence including assumptions of future taxable income, tax planning strategies and other pertinent factors. A deferred tax asset valuation allowance is recorded when evidence indicates that it is more likely than not that all or a portion of these deferred tax assets will not be realized in a future period. The accounting principles for income tax uncertainties permit recognition of income tax benefits only when they are more likely than not to be realized. The Company has elected to classify any interest expense and penalties related to the underpayment of income taxes in Income tax expense in the Consolidated Income Statements. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES – The fair value of a derivative instrument is recognized as an asset or liability in the Company’s Consolidated Balance Sheets. Upon entering into a derivative contract, the Company may designate the derivative as either a fair value hedge or a cash flow hedge, or decide that the contract is not a hedge, and therefore, recognize changes in the fair value of the contract in earnings. The Company documents the relationship between the derivative instrument designated as a hedge and the hedged items as well as its objective for risk management and strategy for use of the hedging instrument to manage the risk. Derivative instruments designated as fair value or cash flow hedges are linked to specific assets and liabilities or to specific firm commitments or forecasted transactions. The Company assesses at inception and on an ongoing basis whether a derivative instrument accounted for as a hedge is highly effective in offsetting changes in the fair value or cash flows of the hedged item. A derivative that is not a highly effective hedge does not qualify for hedge accounting. The change in the fair value of a qualifying fair value hedge is recorded in earnings along with the gain or loss on the hedged item. The effective portion of the change in the fair value of a qualifying cash flow hedge is recorded in Accumulated other comprehensive income (AOCI) in the consolidated Balance Sheets until the hedged item is recognized currently in earnings. If a derivative instrument no longer qualifies as a cash flow hedge and the underlying forecasted transaction is no longer probable of occurring, hedge accounting is discontinued and the gain or loss recorded in Accumulated other comprehensive income is recognized immediately in earnings. If a hedge is de-designated, hedge accounting will no longer apply and from that time the gain and losses will be recognized in earnings and any accumulated amounts in other comprehensive income will be amortized to earnings over the remaining life of the underlying instrument. See Note 14 "Financial Instruments and Risk Management" and Note 17 "Assets and Liabilities Measured at Fair Value" for further information about the Company’s derivatives. STOCK-BASED COMPENSATION – The fair value of awarded stock options, restricted stock, restricted stock units and performance stock units is determined based on a combination of management assumptions for awards issued. The Company uses the Black-Scholes option pricing model for computing the fair value of stock options. The primary assumptions made by management included the expected life of the stock option award and the expected volatility of the Company’s common stock prices. The Company uses both historical data and current information to support its assumptions. Stock option expense is recognized on a straight-line basis over the requisite service period of three years. The Company uses a Monte Carlo valuation model to determine the fair value of performance-based stock units that are based on performance compared against a peer group and the related expense is recognized over the three-year requisite service period. Management estimates the number of all awards that will not vest and adjusts its compensation expense accordingly. Differences between estimated and actual vested amounts are accounted for as an adjustment to expense when known. See Note 12 "Incentive Plans" for a discussion of the basis of allocation of such costs. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Revenue Recognition The following table disaggregates our revenue by major source for the years ended December 31, 2021, 2020, and 2019. Years Ended December 31, (Millions of dollars) 2021 2020 2019 Marketing Segment Petroleum product sales (at retail) 1 $ 12,022.7 $ 7,444.6 $ 10,184.0 Petroleum product sales (at wholesale) 1 1,388.1 764.0 1,189.8 Total petroleum product sales 13,410.8 8,208.6 11,373.8 Merchandise sales 3,677.7 2,955.1 2,620.1 Other operating revenues: RINs 265.3 95.5 34.8 Other revenues 2 6.1 4.8 5.6 Total marketing segment revenues 17,359.9 11,264.0 14,034.3 Corporate and Other Assets 0.6 0.3 0.3 Total revenues $ 17,360.5 $ 11,264.3 $ 14,034.6 1 Includes excise and sales taxes that remain eligible for inclusion under Topic 606 2 Primarily includes collection allowance on excise and sales taxes and other miscellaneous items Marketing segment Petroleum product sales (at retail). For our retail store locations, the revenue related to petroleum product sales is recognized as the fuel is pumped to our customers. The transaction price at the pump typically includes some portion of sales or excise taxes as levied in the respective jurisdictions. Those taxes that are collected for remittance to governmental entities on a pass through basis are not recognized as revenue and they are recorded to a liability account until they are paid. Our customers typically use a mixture of cash, checks, credit cards and debit cards to pay for our products as they are received. We have accounts receivable from the various credit/debit card providers at any point in time related to product sales made on credit cards and debit cards. These receivables are typically collected in two Petroleum product sales (at wholesale). Our sales of petroleum products at wholesale are generally recorded as revenue when the deliveries have occurred and legal ownership of the product has transferred to the customer. Title transfer for bulk refined product sales typically occurs at pipeline custody points and upon trucks loading at product terminals. For bulk pipeline sales, we record receivables from customers that are generally collected within a week from custody transfer date. For our rack product sales, the majority of our customers' accounts are drafted by us within 10 days from product transfer. Merchandise sales. For our retail store locations, the revenue related to merchandise sales is recognized as the customer completes their purchase at our locations. The transaction price typically includes some portion of sales tax as levied in the respective jurisdictions. Those taxes that are collected for remittance to governmental entities on a pass through basis are not recognized as revenue and they are recorded to a liability account until they are paid. As noted above, a mixture of payment types are used for these revenues and the same terms for credit/debit card receivables are realized. The most significant judgment with respect to merchandise sales revenue is determining whether we are the principal or agent for some categories of merchandise such as lottery tickets, lotto tickets, newspapers and other small categories of merchandise. For scratch-off lottery tickets, we have determined we are the principal in the majority of the jurisdictions and therefore we record those sales on a gross basis. We have some categories of merchandise (such as lotto tickets) where we are the agent and the revenues recorded for those transactions are our net commission only. The Company offers loyalty programs through its Murphy USA, Murphy Express, and QuickChek branded retail locations. The customers earn rewards based on their spending or other promotional activities. These programs create a performance obligation which requires us to defer a portion of sales revenue to the loyalty program participants until they redeem their rewards. The rewards may be redeemed for free or discounted merchandise or cash discounts at all stores and on fuel purchases at Murphy USA and Murphy Express stores. Earned rewards expire after an account is inactive for a period of 90 days at Murphy USA and Murphy Express, while certain QuickChek rewards require use within the month. We recognize loyalty revenue when a customer redeems an earned reward. Deferred revenue associated with both rewards programs are included in Trade accounts payable and accrued liabilities in our Consolidated Balance Sheet. The deferred revenue balances at December 31, 2021 and 2020 were immaterial. RINs sales. For the sale of RINs, we recognize revenue when the RIN is transferred to the counter-party and the sale is completed. Receivables from our counter-parties related to the RIN sales are typically collected within five days of the sale. Other revenues. Items reported as other operating revenues include collection allowances for excise and sales tax and other miscellaneous items and are recognized as revenue when the transaction is completed. Accounts receivable Trade accounts receivable on the balance sheet represents both receivables related to contracts with customers and other trade receivables. At December 31, 2021 and December 31, 2020, we had $111.8 million and $88.3 million of receivables, respectively, related to contracts with customers recorded. All of the trade accounts receivable related to contracts with customers outstanding at the end of each period were collected during the |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following: December 31, (Millions of dollars) 2021 2020 Petroleum products - FIFO basis $ 339.8 $ 223.0 Store merchandise for resale - FIFO basis 173.1 152.0 Less LIFO reserve (228.0) (101.3) Total petroleum products and store merchandise inventory 284.9 273.7 Materials and supplies 7.4 5.4 Total inventories $ 292.3 $ 279.1 Murphy USA and Murphy Express branded petroleum products are valued using the last-in, first-out (LIFO) method and certain QuickChek store merchandise for resale is valued using the LIFO method. At December 31, 2021 and 2020, the replacement cost (market value) of LIFO inventories exceeded the LIFO carrying value for petroleum products by $227.5 million and $101.3 million, respectively, and store merchandise for resale by $0.5 million and none, respectively. |
Business Acquisition
Business Acquisition | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Acquisition | Business Acquisition On January 29, 2021, MUSA completed the previously announced transaction to acquire 100% of QuickChek, a privately-held convenience store chain with a regional brand which consisted of 156 stores located in New Jersey and New York, in an all-cash transaction. The acquisition was made to expand the MUSA network into the Northeast by adding stores that had an existing food and beverage model and is consistent with the Company's stated strategic priorities of developing enhanced food and beverage capabilities and accelerating its growth plans. The excess of the purchase price over the estimated fair value of the net, identifiable assets acquired was recorded as goodwill. The factors contributing to the recognition of goodwill are a mixture of direct and reverse synergies that are expected to be realized as a result of this acquisition. The direct synergies include additional margin capture on the retail fuel side from the tactical pricing decisions and improved benefits from increased scale on the product acquisition side combined with other cost savings in both merchandise and store operations. The reverse synergies reflect management's ability to leverage QuickChek's product pricing and operational capabilities related to food and beverage sales to Murphy branded stores. The Company has determined that the trade name has an indefinite life, as there is no economic, contractual, or other factors that limit its useful life and expects to generate value as long as the trade name is utilized, and therefore is not subject to amortization. The fair value of intangible assets was based on widely-accepted valuation techniques, including discounted cash flows. The following table summarizes the fair value of the consideration transferred at the date of the acquisition, as well as the calculation of goodwill based on the excess of consideration over the fair value of net assets acquired: (Millions of dollars) Cash paid to shareholders $ 641.9 Less cash and cash equivalents acquired 0.8 Fair value of consideration transferred, net of cash acquired $ 641.1 (Millions of dollars) Assets acquired: Accounts receivable $ 8.0 Inventories 24.3 Prepaid expenses and other current assets 5.5 Property and equipment 447.1 Right of use assets 237.6 Other assets 5.4 Identified intangible assets 106.8 Liabilities assumed: Accounts payable and accrued expenses (68.4) Deferred income tax liabilities (58.5) Asset retirement obligation (1.2) Current and long term debt, including finance lease obligations (148.5) Deferred credits and other liabilities (7.4) Operating lease liabilities (237.6) Net assets acquired 313.1 Goodwill 328.0 Fair value of consideration transferred, net of cash and cash equivalents acquired $ 641.1 The Company has not disclosed pro forma information of the combined business as the transaction is not material to revenue or net earnings. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment December 31, 2021 December 31, 2020 (Millions of dollars) Estimated Useful Life Cost Net Cost Net Land $ 639.4 $ 639.4 $ 609.5 $ 609.5 Real estate finance lease 1 to 40 years 147.1 134.3 — — Pipeline and terminal facilities 16 to 25 years 83.2 44.5 79.8 43.5 Retail gasoline stores 3 to 50 years 2,657.8 1,451.1 2,179.7 1,123.2 Buildings 20 to 45 years 70.7 49.7 66.7 48.5 Other 3 to 20 years 153.6 59.4 123.3 42.9 $ 3,751.8 $ 2,378.4 $ 3,059.0 $ 1,867.6 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company's goodwill is assigned to its Marketing segment and none of the goodwill is deductible for tax purposes. (Millions of dollars) Goodwill balance, January 1, 2021 $ — QuickChek acquisition 328.0 Goodwill balance, December 31, 2021 $ 328.0 In connection with our acquisition of QuickChek on January 29, 2021, we recorded the following amounts of intangible assets. Remaining Useful Life January 29, (Millions of dollars) (in years) Carrying Value Intangible assets subject to amortization: Intangible lease liability 13.6 $ (9.1) Intangible assets not subject to amortization: Trade name n/a 115.4 Liquor licenses n/a 0.5 Total intangible assets $ 106.8 We amortize intangible assets subject to amortization on a straight-line or accelerated basis based on the period for which the economic benefits of the asset or liability are expected to be realized. The intangible assets subject to amortization was in addition to the Company's existing intangible asset pipeline space, which is being amortized over a 40 year life. Intangible assets at December 31, 2021 and December 31, 2020 consisted of the following: Remaining Useful Life (in years) December 31, 2021 December 31, 2020 (Millions of dollars) Cost Net Cost Net Intangible assets subject to amortization: Pipeline space 33.7 $ 39.6 $ 33.7 $ 39.6 $ 34.6 Intangible lease liability 12.5 (9.1) (8.6) — — Total intangible assets subject to amortization 30.5 25.1 39.6 34.6 Intangible assets not subject to amortization, indefinite lives 115.6 115.6 — — Intangible assets, net of amortization $ 146.1 $ 140.7 $ 39.6 $ 34.6 |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities Trade accounts payable and accrued liabilities consisted of the following: December 31, (Millions of dollars) 2021 2020 Trade accounts payable $ 392.5 $ 261.0 Excise taxes/withholdings payable 93.6 84.1 Accrued insurance obligations 46.2 30.3 Accrued taxes other than income 41.4 31.7 Accrued compensation and benefits 36.5 32.5 Other 50.1 31.5 Accounts payable and accrued liabilities $ 660.3 $ 471.1 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consisted of the following: December 31, (Millions of dollars) 2021 2020 5.625% senior notes due 2027 (net of unamortized discount of $2.0 at 2021 and $2.4 at 2020) $ 298.0 $ 297.6 4.75% senior notes due 2029 (net of unamortized discount of $4.8 at 2021 and $5.4 at 2020) 495.2 494.6 3.75% senior notes due 2031 (net of unamortized discount of $5.7 at 2021 and none at 2020) 494.3 — Term loan due 2023 (effective interest rate of 2.67% at 2020) — 212.5 Term loan due 2028 (effective interest rate of 2.27% at 2021) net of unamortized discount of $0.9 at 2021 and none at 2020 397.1 — Capitalized lease obligations, vehicles, due through 2025 2.7 2.1 Capitalized lease obligations, buildings, due through 2059 138.9 — Unamortized debt issuance costs (11.1) (4.4) Total long-term debt 1,815.1 1,002.4 Less current maturities 15.0 51.2 Total long-term debt, net of current $ 1,800.1 $ 951.2 On January 29, 2021, the Company completed its acquisition of QuickChek for an all-cash consideration of $641.1 million. In conjunction with the closing of the acquisition, the Company entered in a credit agreement that provides for a cash flow revolving facility with commitments of $350 million and a term loan in a principal amount of $400 million. The Company also issued a new series of 3.750% senior unsecured notes due 2031 in an aggregate principal amount of $500 million. As a result of the above transactions, the ABL facility existing at December 31, 2020, was terminated and the term loan with $200 million remaining balance outstanding at January 29, 2021 was repaid and retired. Senior Notes On April 25, 2017, Murphy Oil USA, Inc., our primary operating subsidiary, issued $300 million of 5.625% Senior Notes due 2027 (the "2027 Senior Notes") under its existing shelf registration statement. The 2027 Senior Notes are fully and unconditionally guaranteed by Murphy USA, and are guaranteed by certain 100% owned subsidiaries that guarantee our credit facilities. The indenture governing the 2027 Senior Notes contains restrictive covenants that limit, among other things, the ability of Murphy USA, Murphy Oil USA, Inc. and the restricted subsidiaries to incur additional indebtedness or liens, dispose of assets, make certain restricted payments or investments, enter into transactions with affiliates or merge with or into other entities. On September 13, 2019, Murphy Oil USA, Inc., issued $500 million of 4.75% Senior Notes due 2029 (the “2029 Senior Notes”). The net proceeds from the issuance of the 2029 Senior Notes were used to fund, in part, the tender offer and redemption of the prior notes issuance. The 2029 Senior Notes are fully and unconditionally guaranteed by Murphy USA, and are guaranteed by certain 100% owned subsidiaries that guarantee our credit facilities. The indenture governing the 2029 Senior Notes contains restrictive covenants that are essentially identical to the covenants for the 2027 Senior Notes. On January 29, 2021, Murphy Oil USA, Inc. issued $500 million of 3.75% Senior Notes due 2031 (the "2031 Senior Notes" and, together with the 2027 Senior Notes and the 2029 Senior Notes, the "Senior Notes"). The net proceeds from the issuance of the 2031 Senior Notes were used, in part, to fund the acquisition of QuickChek and other obligations related to that transaction. The 2031 Senior Notes are fully and unconditionally guaranteed by the Company and by the Company's subsidiaries that guarantee our Credit Facilities. The indenture governing the 2031 Senior Notes contains restrictive covenants that are essentially identical to the covenants for the 2027 and 2029 Senior Notes. The Senior Notes and related guarantees rank equally with all of our and the guarantors’ existing and future senior unsecured indebtedness and effectively junior to our and the guarantors’ existing and future secured indebtedness (including indebtedness with respect to the Credit Facilities) to the extent of the value of the assets securing such indebtedness. The Senior Notes are structurally subordinated to all of the existing and future third-party liabilities, including trade payables, of our existing and future subsidiaries that do not guarantee the notes. Revolving Credit Facility and Term Loan On January 29, 2021, the Company entered into a new credit agreement that consists of both a cash flow revolving credit facility and a senior secured term loan and that replaced the Company’s prior ABL facility and term loan. The credit agreement provides for a senior secured term loan in an aggregate principal amount of $400 million (the “Term Facility”) (which was borrowed in full on January 29, 2021) and revolving credit commitments in an aggregate amount equal to $350 million (the “Revolving Facility”, and together with the Term Facility, the “Credit Facilities”). The outstanding balance of the term loan was $398 million at December 31, 2021. The term loan is due January 2028 and requires quarterly principal payments of $1 million beginning July 1, 2021. As of December 31, 2021, we had none outstanding under the revolving facility while there were $3.7 million in outstanding letters of credit, which reduces the amount available to borrow. Interest payable on the Credit Facilities is based on either: • the London interbank offered rate, adjusted for statutory reserve requirements (the “Adjusted LIBO Rate”); or • the Alternate Base Rate, which is defined as the highest of (a) the rate of interest last quoted by The Wall Street Journal as the “Prime Rate”, (b) the greater of federal funds effective rate and the overnight bank funding rate determined by the Federal Reserve Bank of New York from time to time plus 0.50% per annum and (c) the one-month Adjusted LIBO Rate plus 1.00% per annum, plus, (A) in the case of Adjusted LIBO Rate borrowings, (i) with respect to the Revolving Facility, spreads ranging from 1.75% to 2.25% per annum depending on a total debt to EBITDA ratio or (ii) with respect to the Term Facility, a spread of 1.75% per annum and (B) in the case of Alternate Base Rate borrowings (i) with respect to the Revolving Facility, spreads ranging from 0.75% to 1.25% per annum depending on a total debt to EBITDA ratio or (ii) with respect to the Term Facility, a spread of 1.75% per annum. The Term Facility amortizes in quarterly installments starting with the first amortization payment being due on July 1, 2021 at a rate of 1.00% per annum. Murphy USA is also required to prepay the Term Facility with a portion of its excess cash flow, a portion of the net cash proceeds of certain asset sales and casualty events (subject to certain reinvestment rights) and the net cash proceeds of issuances of indebtedness not permitted under the Credit Agreement. The Credit Agreement allows Murphy USA to prepay, in whole or in part, the Term Facility outstanding thereunder, together with any accrued and unpaid interest, with prior notice but without premium or penalty other than breakage and redeployment costs. The credit agreement contains certain covenants that limit, among other things, the ability of the Company and certain of its subsidiaries to incur additional indebtedness or liens, to make certain investments, to enter into sale-leaseback transactions, to make certain restricted payments, to enter into consolidations, mergers or sales of material assets and other fundamental changes, to transact with affiliates, to enter into agreements restricting the ability of subsidiaries to incur liens or pay dividends, or to make certain accounting changes. The credit agreement also contains total leverage ratio and secured net leverage ratio financial maintenance covenants solely for the benefit of the revolving facility which are tested quarterly. Pursuant to the total leverage ratio financial maintenance covenant, the Company must maintain a total leverage ratio of not more than 5.0 to 1.0 with an ability in certain circumstances to temporarily increase that limit to 5.5 to 1.0 and a maximum secured net leverage ratio of not more than 3.75 to 1.0 with an ability in certain circumstances to temporarily increase that limit to 4.25 to 1.0. The Credit Agreement also contains customary events of default. Pursuant to the credit agreement's covenant limiting certain restricted payments, certain payments in respect of our equity interests, including dividends, when the total leverage ratio, calculated on a pro forma basis, is greater than 3.0 to 1.0, could be limited. At December 31, 2021, our total leverage ratio was 2.2 to 1.0 which meant our ability at that date to make restricted payments was not limited. If our total leverage ratio, on a pro forma basis, exceeds 3.0 to 1.0, any restricted payments made following that time until the ratio is once again, on a pro forma basis, below 3.0 to 1.0 would be limited by the covenant, which contains certain exceptions, including an ability to make restricted payments in an aggregate not to exceed the greater of $112.7 million or 4.5% of consolidated net tangible assets over the life of the credit agreement. All obligations under the credit agreement are guaranteed by Murphy USA and the subsidiary guarantors party thereto, and all obligations under the credit agreement, including the guarantees of those obligations, are secured by certain assets of Murphy USA, Murphy Oil USA, Inc. and the guarantors party thereto. |
Asset Retirement Obligations (A
Asset Retirement Obligations (ARO) | 12 Months Ended |
Dec. 31, 2021 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations (ARO) | Asset Retirement Obligations (ARO) The majority of the ARO recognized by the Company at December 31, 2021 and 2020 is related to the estimated costs to dismantle and abandon certain of its retail gasoline stores. The Company has not recorded an ARO for certain of its marketing assets because sufficient information is presently not available to estimate a range of potential settlement dates for the obligation. These assets are consistently being upgraded and are expected to be operational into the foreseeable future. In these cases, the obligation will be initially recognized in the period in which sufficient information exists to estimate the obligation. A reconciliation of the beginning and ending aggregate carrying amount of the ARO is shown in the following table. December 31, (Millions of dollars) 2021 2020 Balance at beginning of period $ 35.1 $ 32.8 Addition for acquisition 1.2 — Accretion expense 2.5 2.3 Settlement of liabilities (1.0) (0.8) Liabilities incurred 1.4 0.8 Balance at end of period $ 39.2 $ 35.1 The estimation of future ARO is based on a number of assumptions requiring professional judgment. The Company cannot predict the type of revisions to these assumptions that may be required in future periods due to the lack of availability of additional information. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income before income taxes for each of the three years ended December 31, 2021 and income tax expense (benefit) attributable thereto were as follows: Years Ended December 31, (Millions of dollars) 2021 2020 2019 Income (loss) before income taxes $ 521.9 $ 509.1 $ 202.4 Income tax expense (benefit) Federal - Current $ 86.2 $ 96.0 $ 15.6 Federal - Deferred 14.4 4.7 21.7 State - Current and deferred 24.4 22.3 10.3 Total $ 125.0 $ 123.0 $ 47.6 The following table reconciles income taxes based on the U.S. statutory tax rate to the Company’s income tax expense (benefit). Years Ended December 31, (Millions of dollars) 2021 2020 2019 Income tax expense based on the U.S. statutory tax rate $ 109.6 $ 106.9 $ 42.5 State income taxes, net of federal benefit 19.2 17.5 8.6 Federal credits (2.2) (1.9) (2.3) Other, net (1.6) 0.5 (1.2) Total $ 125.0 $ 123.0 $ 47.6 An analysis of the Company’s deferred tax assets and deferred tax liabilities at December 31, 2021 and 2020 showing the tax effects of significant temporary differences is as follows: December 31, (Millions of dollars) 2021 2020 Deferred tax assets Property costs and asset retirement obligations $ 5.2 $ 4.5 Net operating loss 6.3 — Employee benefits 8.6 8.0 Operating leases liability 89.7 31.6 Other deferred tax assets 11.8 7.2 Total gross deferred tax assets 121.6 51.3 Deferred tax liabilities Accumulated depreciation and amortization (285.4) (213.2) State deferred taxes (31.7) (20.2) Operating leases right of use assets (88.0) (31.0) Other deferred tax liabilities (12.4) (5.3) Total gross deferred tax liabilities (417.5) (269.7) Net deferred tax liabilities $ (295.9) $ (218.4) In management’s judgment, the net deferred tax assets in the preceding table will more likely than not be realized as reductions of future taxable income or by utilizing available tax planning strategies. As of December 31, 2021, the earliest year remaining open for Federal and state audit and/or settlement is 2018 and 2016, respectively. Although the Company believes that recorded liabilities for unsettled issues are adequate, additional gains or losses could occur in future periods from resolution of outstanding unsettled matters. The FASB’s rules for accounting for income tax uncertainties clarify the criteria for recognizing uncertain income tax benefits and require additional disclosures about uncertain tax positions. Under U.S. GAAP the financial statement recognition of the benefit for a tax position is dependent upon the benefit being more likely than not to be sustainable upon audit by the applicable taxing authority. If this threshold is met, the tax benefit is then measured and recognized at the largest amount that is greater than 50 percent likely of being realized upon ultimate settlement. Liabilities associated with uncertain income tax positions are included in Deferred Credits and Other Liabilities in the Consolidated Balance Sheets. A reconciliation of the beginning and ending amount of the consolidated liability for unrecognized income tax benefits during the year ended December 31, 2021 and 2020 is shown in the following table. Year Ended December 31, (Millions of dollars) 2021 2020 Balance at January 1 $ 0.4 $ 0.6 Additions for tax positions related to prior years 0.3 0.1 Settlements with taxing authorities — (0.3) Expiration of statutes of limitation (0.2) — Balance at December 31 $ 0.5 $ 0.4 All additions or reductions to the above liability affect the Company’s effective tax rate in the respective period of change. The Company accounts for any applicable interest and penalties on uncertain tax positions as a component of income tax expense. Income tax expense for the years ended December 31, 2021, 2020 and 2019 included immaterial amounts of interest and penalties, associated with uncertain tax positions. Of these amounts shown in the table, $0.4 million and $0.3 million represent the amount of unrecognized tax benefits that, if recognized, would impact our effective tax rate for the years ended December 31, 2021 and 2020, respectively. During the next twelve months, the Company does not expect a material change to the liability for uncertain taxes. Although existing liabilities could be reduced by settlement with taxing authorities or lapse due to statute of limitations, the Company believes that the changes in its unrecognized tax benefits due to these events will not have a material impact on the Consolidated Income Statement during 2022. |
Incentive Plans
Incentive Plans | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Incentive Plans | Incentive Plans 2013 Long-Term Incentive Plan Effective August 30, 2013, certain of our employees began to participate in the Murphy USA 2013 Long-Term Incentive Plan, which was subsequently amended and restated effective as of February 8, 2017 (the “MUSA 2013 Plan”). The MUSA 2013 Plan authorizes the Executive Compensation Committee of our Board of Directors (“the Committee”) to grant non-qualified or incentive stock options, stock appreciation rights, stock awards (including restricted stock and restricted stock unit awards), dividend equivalent units, cash awards, and performance awards to our employees. No more than 5.5 million shares of common stock may be delivered under the MUSA 2013 Plan and no more than 1 million shares of common stock may be awarded to any one employee, subject to adjustment for changes in capitalization. The maximum cash amount payable pursuant to any “performance-based” award to any participant in any calendar year is $5.0 million. During the period from August 30, 2013 to December 31, 2021, the Company granted a total of 2,674,337 awards from the MUSA 2013 Plan which leaves 2,825,663 remaining shares to be granted in future years (after consideration of the amendments made to the MUSA 2013 Plan in February 2014 by the Board of Directors). At present, the Company expects to issue all shares that vest out of existing treasury shares rather than issuing new common shares. 2013 Stock Plan for Non-employee Directors Effective August 8, 2013, Murphy USA adopted the 2013 Murphy USA Stock Plan for Non-employee Directors (the “Directors Plan”). The directors for Murphy USA are compensated with a mixture of cash payments and equity-based awards. Awards under the Directors Plan may be in the form of restricted stock, restricted stock units, stock options, or a combination thereof. An aggregate of 500,000 shares of common stock shall be available for issuance of grants under the Directors Plan. Since 2013, 142,678 time-based restricted stock units have been granted under the terms of the Directors Plan which leaves 357,322 shares available to be granted in the future. Amounts recognized in the financial statements by the Company with respect to all share-based plans are shown in the following table: Years Ended December 31, (Millions of dollars) 2021 2020 2019 Compensation charged against income before income tax benefit $ 14.4 $ 14.3 $ 10.5 Related income tax benefit recognized in income $ 3.0 $ 3.0 $ 2.2 As of December 31, 2021, there was $21.1 million in compensation costs to be expensed over approximately the next 1.8 years related to unvested share-based compensation arrangements granted by the Company. Employees who have stock options are required to net settle their options in shares, after applicable statutory withholding taxes are considered, upon each stock option exercise. Therefore, no cash is received upon exercise. Total income tax benefits realized from tax deductions related to stock option exercises under share-based payment arrangements were $0.3 million, $0.7 million, and $0.1 million for the years ended December 31, 2021, 2020, and 2019, respectively. Concurrent with its initial quarterly dividend in December 2020, the Company issued dividend equivalent units ("DEU") on all outstanding, unvested equity awards (except stock options) in an amount commensurate with regular quarterly dividends paid on common stock. The terms of the DEU mirror the underlying awards and will only vest if the related award vests. DEU's issued are included with grants in each respective table as applicable. STOCK OPTIONS – The Committee fixes the option price of each option granted at no less than fair market value (FMV) on the date of the grant and fixes the option term at no more than 7 years from such date. Most of the nonqualified stock options granted to certain employees by the Committee were granted in February 2021. Following are the assumptions used by the Company to value the original awards: Years Ended December 31, 2021 2020 2019 Fair value per option grant $ 32.00 $ 28.28 $ 20.48 Assumptions Dividend yield 0.8 % — — Expected volatility 32.3 % 28.1 % 26.8 % Risk-free interest rate 0.4 % 1.5 % 2.5 % Expected life (years) 4.6 4.7 4.5 Stock price at valuation date $ 126.00 $ 106.72 $ 76.15 Changes in options outstanding for Company employees during the period from December 31, 2020 to December 31, 2021 are presented in the following table: Options Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (Millions of Dollars) Outstanding at December 31, 2020 322,700 79.60 Granted 85,500 126.71 Exercised (28,250) 68.88 Forfeited (13,850) 105.84 Outstanding at December 31, 2021 366,100 $ 90.44 4.2 $ 39.8 Exercisable at December 31, 2021 167,950 $ 70.13 3.0 $ 21.7 Additional information about stock options outstanding at December 31, 2021 is shown below: Options Outstanding Options Exercisable Range of Exercise Prices per Option No. of Options Avg. Life Remaining in Years No. of Options Avg. Life Remaining in Years $60.00 to $69.99 66,500 2.1 66,500 2.1 $70.00 to $79.99 145,200 3.7 101,450 3.5 $80.00 to $89.99 3,600 5.2 — — $100.00 to $109.99 70,300 5.1 — — $120.00 to $129.99 76,300 6.1 — — $130.00 to $139.99 3,300 6.2 — — $140.00 to $149.99 900 6.7 — — 366,100 4.2 167,950 3.0 RESTRICTED STOCK UNITS (MUSA 2013 Plan) – The Committee has granted time based restricted stock units (RSUs) as part of the compensation plan for its executives and certain other employees since its inception. The awards granted in the current year were under the MUSA 2013 Plan, are valued at the grant date fair value, and vest over three years. Changes in restricted stock units outstanding for Company employees during the period from December 31, 2020 to December 31, 2021 are presented in the following table: Employee RSUs Number of units Weighted Average Grant Date Fair Value Total Fair Value (Millions of Dollars) Outstanding at December 31, 2020 182,795 $ 77.38 Granted 56,422 $ 130.62 Vested and issued (49,190) $ 72.16 $ 7.0 Forfeited (14,400) $ 77.54 Outstanding at December 31, 2021 175,627 $ 95.93 $ 35.0 PERFORMANCE-BASED RESTRICTED STOCK UNITS (MUSA 2013 Plan) – In February 2021, the Committee awarded performance-based restricted stock units (performance units) to certain employees. Half of the performance units vest based on a three-year return on average capital employed (ROACE) calculation and the other half vest based on a three-year total shareholder return (TSR) calculation that compares MUSA to a group of 18 peer companies. The portion of the awards that vest based on TSR qualify as a market condition and must be valued using a Monte Carlo valuation model. For the TSR portion of the awards, the fair value was determined to be $168.42 per unit. For the ROACE portion of the awards, the valuation was based on the grant date fair value of $126.00 per unit and the number of awards will be periodically assessed to determine the probability of vesting. Changes in performance-based restricted stock units outstanding for Company employees during the period from December 31, 2020 to December 31, 2021 are presented in the following table: Employee PSU's Number of Units Weighted Average Grant Date Fair Value Total Fair Value (Millions of Dollars) Outstanding at December 31, 2020 129,340 $ 97.01 Granted 65,751 $ 145.16 Vested and issued (58,302) $ 76.78 $ 7.3 Forfeited (9,151) $ 114.99 Outstanding at December 31, 2021 127,638 $ 117.59 $ 25.4 RESTRICTED STOCK UNITS (Directors Plan) – The Committee has also granted time based RSUs to the non-employee directors of the Company as part of their overall compensation package for being a member of the Board of Directors. These awards typically vest at the end of three years. Changes in restricted stock units outstanding for Company non-employee directors during the period from December 31, 2020 to December 31, 2021 are presented in the following table: Director RSU's Number of Units Weighted Average Grant Date Fair Value Total Fair Value (Millions of Dollars) Outstanding at December 31, 2020 31,004 $ 83.31 Granted 9,249 $ 124.97 Vested and issued (9,589) $ 69.37 $ 1.2 Outstanding at December 31, 2021 30,664 $ 100.23 $ 6.1 |
Employee and Retiree Benefit Pl
Employee and Retiree Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee and Retiree Benefit Plans | Employee and Retiree Benefit Plans THRIFT PLAN – Most full-time employees of the Company may participate in defined contribution savings plans by contributing up to a specified percentage of their base pay. The Company matches contributions for Murphy USA eligible employees at 100% of each employee’s contribution with a maximum match of 6%. In addition, the Company makes profit sharing contributions on an annual basis for Murphy USA employees. Eligible employees receive a stated percentage of their base and incentive pay of 5%, 7%, or 9% determined on a formula that is based on a combination of age and years of service. The Company’s combined expenses related to this plan were $15.0 million in 2021, $15.3 million in 2020 and $12.9 million in 2019. The Company maintained the thrift plan of QuickChek on acquisition, and matches 100% of the first 3% and 50% of the next 2% contributed by eligible employees. The Company made contributions of $1.9 million to the QuickChek plan in 2021. PROFIT SHARING PLAN – Eligible part-time employees of Murphy USA may participate in the Company’s noncontributory profit sharing plan. Each year, the Company may make a discretionary employer contribution in an amount determined and authorized at the discretion of the Board of Directors. Eligible employees receive an allocation based on their compensation earned for the year the contribution is allocated. The Company’s expenses related to this plan were $1.1 million in 2021, $1.8 million in 2020 and $1.5 million in 2019. |
Financial Instruments and Risk
Financial Instruments and Risk Management | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments and Risk Management | Financial Instruments and Risk Management DERIVATIVE INSTRUMENTS — The Company makes limited use of derivative instruments to manage certain risks related to commodity prices and interest rates. The use of derivative instruments for risk management is covered by operating policies and is closely monitored by the Company’s senior management. The Company does not hold any derivatives for speculative purposes and it does not use derivatives with leveraged or complex features. Derivative instruments are traded primarily with creditworthy major financial institutions or over national exchanges such as the New York Mercantile Exchange (“NYMEX”). For accounting purposes, the Company has not designated commodity derivative contracts as hedges, and therefore, it recognizes all gains and losses on these derivative contracts in its Consolidated Statement of Income. Certain interest rate derivative contracts were accounted for as hedges and gain or loss associated with recording the fair value of these contracts was deferred in AOCI until the anticipated transactions occur. As of December 31, 2021, all current commodity derivative activity is immaterial. Cash deposits were $0.6 million at December 31, 2021 and 2020 related to commodity derivative contracts and were reported in Prepaid expenses and other current assets in the Consolidated Balance Sheets. These cash deposits have not been used to reduce the reported net liabilities on the derivative contracts at December 31, 2021 and 2020. Interest Rate Risks |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted average of common shares outstanding during the period. Diluted earnings per common share adjusts basic earnings per common share for the effects of stock options and restricted stock in the periods where such items are dilutive. On October 28, 2020, a share repurchase authorization of $500 million was put into place through December 2023. Shares repurchased under the October 2020 authorization in 2020 were 969,654 common shares for $125.0 million, or $128.91 per share, leaving approximately $375.0 million available, at December 31, 2020. During 2021, common shares repurchased under the October authorization were 2,398,477 common shares for $355.0 million, or $148.00 per share, leaving approximately $20.0 million, at December 31, 2021, available until December 2023. In December 2021, the Board of Directors announced an additional authorization to repurchase shares of up to $1 billion to be executed by December 31, 2026, once the current program has been completed. During 2019, the total number of common shares repurchased were 1,898,023 for $165.8 million, or $87.35 per share, of which 1,393,626 common shares for $125.0 million, or $89.70 per share were under a $400 million share repurchase authorization approved by the Company Board of Directors in July 2019, and other shares purchased were 504,397 common shares for $40.8 million, or $80.85 per share. During 2020, the total number of common shares repurchased were 3,338,028 for $399.6 million, or $119.70 per share, of which 2,368,374 common shares were under the July 2019 plan for $274.6 million, or $115.93 per share, which completed the authorization in November 2020. The following table provides a reconciliation of basic and diluted earnings per share computations for the years ended December 31, 2021, 2020, and 2019. Years ended December 31, (Millions of dollars except per share amounts) 2021 2020 2019 Earnings per common share: Net income per share - basic Net income attributable to common stockholders $ 396.9 $ 386.1 $ 154.8 Weighted average common shares outstanding (in thousands) 26,210 29,132 31,594 Earnings per common share $ 15.14 $ 13.25 $ 4.90 Earnings per common share - assuming dilution: Net income per share - diluted Net income attributable to common stockholders $ 396.9 $ 386.1 $ 154.8 Weighted average common shares outstanding (in thousands) 26,210 29,132 31,594 Common equivalent shares: Share-based awards 394 394 264 Weighted average common shares outstanding - assuming dilution (in thousands) 26,604 29,526 31,858 Earnings per common share assuming dilution $ 14.92 $ 13.08 $ 4.86 We have excluded from the earnings-per-share calculation certain stock options and shares that are considered to be anti-dilutive under the treasury stock method and are reported in the table below. Years ended December 31, Potentially dilutive shares excluded from the calculation as their inclusion would be anti-dilutive 2021 2020 2019 Stock options 80,500 75,600 94,600 Restricted share units 1,562 20,137 843 Total anti-dilutive shares 82,062 95,737 95,443 |
Other Financial Information
Other Financial Information | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Other Financial Information | Other Financial Information CASH FLOW DISCLOSURES — Cash income taxes paid (collected), net of refunds, were $120.4 million, $96.5 million and $26.9 million for the three years ended December 31, 2021, 2020 and 2019, respectively. Interest paid, net of amounts capitalized, was $70.8 million, $49.1 million and $56.6 million for the years ended December 31, 2021, 2020 and 2019, respectively. CHANGES IN WORKING CAPITAL - Years ended December 31, (Millions of dollars) 2021 2020 2019 Accounts receivable $ (18.9) $ 4.9 $ (33.4) Inventories 11.1 (51.7) (6.1) Prepaid expenses and other current assets (3.6) 16.6 (3.3) Accounts payable and accrued liabilities 102.9 8.3 (5.9) Income taxes payable (8.7) 8.8 — Net decrease (increase) in noncash operating working capital $ 82.8 $ (13.1) $ (48.7) |
Assets and Liabilities Measure
Assets and Liabilities Measure at Fair Value | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measure at Fair Value | Assets and Liabilities Measured at Fair Value The Company carries certain assets and liabilities at fair value in its Consolidated Balance Sheets. The fair value hierarchy is based on the quality of inputs used to measure fair value, with Level 1 being the highest quality and Level 3 being the lowest quality. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are observable inputs other than quoted prices included within Level 1. Level 3 inputs are unobservable inputs which reflect assumptions about pricing by market participants. At the balance sheet date, the fair value of commodity derivatives contracts was determined using NYMEX quoted values and the value of the Interest rate swap derivative was derived by using level 3 inputs, but the balances for each were immaterial. The carrying value of the Company’s Cash and cash equivalents, Accounts receivable-trade, Trade accounts payable, interest rate swap contracts and accrued liabilities approximates fair value. See also Note 14 "Financial Instruments and Risk Management" in these consolidated financial statements for the period ended December 31, 2021, for more information. The following table presents the carrying amounts and estimated fair values of financial instruments held by the Company at December 31, 2021 and 2020. The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties. The table excludes Cash and cash equivalents, Accounts receivable-trade, and Trade accounts payable and accrued liabilities, all of which had fair values approximating carrying amounts. The fair value of Current and Long-term debt was estimated based on rates offered to the Company at that time for debt of the same maturities. The Company has off-balance sheet exposures relating to certain financial guarantees and letters of credit. The fair value of these, which represents fees associated with obtaining the instruments, was nominal. December 31, 2021 December 31, 2020 Carrying Carrying (Millions of dollars) Amount Fair Value Amount Fair Value Financial liabilities Current and long-term debt, excluding finance leases $ (1,673.5) $ (1,709.5) $ (1,000.3) $ (1,029.9) |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Commitments The Company leases land, gasoline stores, and other facilities under operating leases. During the next five years, expected future rental payments under all operating leases are approximately $44.4 million in 2022, $44.0 million in 2023, $43.6 million in 2024, $42.6 million in 2025, and $41.9 million in 2026. Rental expense for noncancellable operating leases, including contingent payments when applicable, was $48.7 million in 2021, $24.9 million in 2020 and $21.6 million in 2019. Commitments for capital expenditures were approximately $275.6 million at December 31, 2021, including $252.5 million approved for potential construction of future stores (including land) at year-end, along with $8.2 million for improvements of existing stores, to be financed with our operating cash flow and/or incurrence of indebtedness. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies The Company’s operations and earnings have been and may be affected by various forms of governmental action. Examples of such governmental action include, but are by no means limited to: tax increases and retroactive tax claims; import and export controls; price controls; allocation of supplies of crude oil and petroleum products and other goods; laws and regulations intended for the promotion of safety and the protection and/or remediation of the environment; governmental support for other forms of energy; and laws and regulations affecting the Company’s relationships with employees, suppliers, customers, stockholders and others. Because governmental actions are often motivated by political considerations, may be taken without full consideration of their consequences, and may be taken in response to actions of other governments, it is not practical to attempt to predict the likelihood of such actions, the form the actions may take or the effect such actions may have on the Company. ENVIRONMENTAL MATTERS AND LEGAL MATTERS — Murphy USA is subject to numerous federal, state and local laws and regulations dealing with the environment. Violation of such environmental laws, regulations and permits can result in the imposition of significant civil and criminal penalties, injunctions and other sanctions. A discharge of hazardous substances into the environment could, to the extent such event is not insured, subject the Company to substantial expense, including both the cost to comply with applicable regulations and claims by neighboring landowners and other third parties for any personal injury, property damage and other losses that might result. The Company currently owns or leases, and has in the past owned or leased, properties at which hazardous substances have been or are being handled. Although the Company believes it has used operating and disposal practices that were standard in the industry at the time, hazardous substances may have been disposed of or released on or under the properties owned or leased by the Company or on or under other locations where they have been taken for disposal. In addition, many of these properties have been operated by third parties whose management of hazardous substances was not under the Company’s control. Under existing laws, the Company could be required to remediate contaminated property (including contaminated groundwater) or to perform remedial actions to prevent future contamination. Certain of these contaminated properties are in various stages of negotiation, investigation, and/or cleanup, and the Company is investigating the extent of any related liability and the availability of applicable defenses. With the sale of the U.S. refineries in 2011, Murphy Oil retained certain liabilities related to environmental matters. Murphy Oil also obtained insurance covering certain levels of environmental exposures. With respect to the previously owned refinery properties, Murphy Oil retained those liabilities in the Separation and Distribution agreement that was entered into related to the separation on August 30, 2013. With respect to any remaining potential liabilities, the Company believes costs related to these properties will not have a material adverse effect on Murphy USA’s net income, financial position or liquidity in a future period. Certain environmental expenditures are likely to be recovered by the Company from other sources, primarily environmental funds maintained by certain states. Since no assurance can be given that future recoveries from other sources will occur, the Company has not recorded a benefit for likely recoveries at December 31, 2021, however certain jurisdictions provide reimbursement for these expenses which have been considered in recording the net exposure. The U.S. Environmental Protection Agency (EPA) currently considers the Company a Potentially Responsible Party (PRP) at one Superfund site. As to the site, the potential total cost to all parties to perform necessary remedial work at this site may be substantial. However, based on current negotiations and available information, the Company believes that it is a de minimis party as to ultimate responsibility at the Superfund site. Accordingly, the Company has not recorded a liability for remedial costs at the Superfund site at December 31, 2021. The Company could be required to bear a pro rata share of costs attributable to nonparticipating PRPs or could be assigned additional responsibility for remediation at this site or other Superfund sites. The Company believes that its share of the ultimate costs to clean-up this site will be immaterial and will not have a material adverse effect on its net income, financial position or liquidity in a future period. Based on information currently available to the Company, the amount of future remediation costs to be incurred to address known contamination sites is not expected to have a material adverse effect on the Company’s future net income, cash flows or liquidity. However, there is the possibility that additional environmental expenditures could be required to address contamination, including as a result of discovering additional contamination or the imposition of new or revised requirements applicable to known contamination. Murphy USA is engaged in a number of other legal proceedings, all of which the Company considers routine and incidental to its business. Currently, the City of Charleston, South Carolina and the state of Delaware have filed lawsuits against energy companies, including the Company. These lawsuits allege damages as a result of climate change and the plaintiffs are seeking unspecified damages and abatement under various tort theories. At this early stage, the ultimate outcome of these matters remain uncertain, and neither the likelihood of an unfavorable outcome nor the ultimate liability, if any, can be determined. Based on information currently available to the Company, the ultimate resolution of those other legal matters is not expected to have a material adverse effect on the Company’s net income, financial condition or liquidity in a future period. INSURANCE — The Company maintains insurance coverage at levels that are customary and consistent with industry standards for companies of similar size. Murphy USA maintains statutory workers compensation insurance with a deductible of $1.0 million per occurrence, general liability insurance with a deductible of $3.0 million per occurrence, and auto liability insurance with a deductible of $0.3 million per occurrence. As of December 31, 2021, there were a number of outstanding claims that are of a routine nature. The estimated incurred but unpaid liabilities relating to these claims are included in Trade account payables and accrued liabilities on the Consolidated Balance Sheets. While the ultimate outcome of these claims cannot presently be determined, management believes that the accrued liability of $39.4 million will be sufficient to cover the related liability and that the ultimate disposition of these claims will have no material effect on the Company’s financial position and results of operations. The Company has obtained insurance coverage as appropriate for the business in which it is engaged, but may incur losses that are not covered by insurance or reserves, in whole or in part, and such losses could adversely affect our results of operations and financial position. TAX MATTERS — Murphy USA is subject to extensive tax liabilities imposed by multiple jurisdictions, including income taxes, indirect taxes (excise/duty, sales/use and gross receipts taxes), payroll taxes, franchise taxes, withholding taxes and ad valorem taxes. New tax laws and regulations and changes in existing tax laws and regulations are continuously being enacted or proposed that could result in increased expenditures for tax liabilities in the future. Many of these liabilities are subject to periodic audits by the respective taxing authority. Subsequent changes to our tax liabilities because of these audits may subject us to interest and penalties. OTHER MATTERS — In the normal course of its business, the Company is required under certain contracts with various governmental authorities and others to provide financial guarantees or letters of credit that may be drawn upon if the Company fails to perform under those contracts. At December 31, 2021, the Company had contingent liabilities of $10.1 million on outstanding letters of credit. The Company has not accrued a liability in its balance sheet related to these financial guarantees and letters of credit because it is believed that the likelihood of having these drawn is remote. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. The Company's leases have remaining lease terms of approximately 1 year to 38 years, which may include the option to extend the lease when it is reasonably certain the Company will exercise the option. Most leases include one or more options to renew, with renewal terms that can extend the lease term from 5 to 20 years or more. The exercise of lease renewal options is at the Company's sole discretion. Due to the uncertainties of future markets, economic factors, technology changes, demographic shifts and behavior, environmental regulatory requirements and other information that impacts decisions as to store location, management has determined that it was not reasonably certain to exercise contract options and they are not included in the lease term. Additionally, short-term leases and leases with variable lease costs are immaterial. The Company reviews all options to extend, terminate, or otherwise modify its lease agreements to determine if changes are required to the right of use assets and liabilities. As the implicit interest rate is not readily determinable in most of the Company's lease agreements, the Company uses its estimated secured incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lessor — We have various arrangements for certain spaces for food service and vending equipment under which we are the lessor. These leases meet the criteria for operating lease classification. Lease income associated with these leases is immaterial. We also have certain areas where we sublease building and land space to others. This lease income is immaterial. Lessee —We lease land for 407 stores, one terminal, and various equipment. Our lease agreements do not contain any material residual value guarantees and approximately 102 sites leased from Walmart contain restrictive covenants, though the restrictions are deemed to have an immaterial impact. Leases are reflected in the following balance sheet accounts: (Millions of dollars) Classification December 31, December 31, Assets Operating (Right-of-use) Operating lease right of use assets, net $ 419.2 $ 147.7 Finance Property, plant, and equipment, at cost, less accumulated depreciation of $16.7 in 2021 and $2.8 in 2020 137.3 2.6 Total leased assets $ 556.5 $ 150.3 Liabilities Current Operating Trade accounts payable and accrued liabilities $ 18.1 $ 7.8 Finance Current maturities of long-term debt 11.0 1.2 Noncurrent Operating Non-current operating lease liabilities 408.9 142.5 Finance Long-term debt, including capitalized lease obligations 130.6 0.9 Total lease liabilities $ 568.6 $ 152.4 Lease Cost: Year Ended December 31, (Millions of dollars) Classification 2021 2020 2019 Operating lease cost Store and other operating expenses $ 43.1 $ 16.6 $ 14.5 Finance lease cost Amortization of leased assets Depreciation & amortization expense 14.8 1.3 1.2 Interest on lease liabilities Interest expense 8.2 0.1 0.1 Net lease costs $ 66.1 $ 18.0 $ 15.8 Cash flow information: Year Ended December 31, (Millions of dollars) 2021 2020 2019 Cash paid for amounts included in the measurement of liabilities Operating cash flows required by operating leases $ 38.8 $ 15.5 $ 13.8 Operating cash flows required by finance leases $ 8.2 $ 0.1 $ 0.1 Financing cash flows required by finance leases $ 9.8 $ 1.4 $ 1.4 Maturity of Lease Liabilities: (Millions of dollars) Operating leases Finance leases 2022 $ 44.4 $ 19.9 2023 44.0 18.4 2024 43.6 16.9 2025 42.6 15.9 2026 41.9 15.3 After 2026 498.1 137.2 Total lease payments 714.6 223.6 less: interest 287.6 82.0 Present value of lease liabilities $ 427.0 $ 141.6 Lease Term and Discount Rate: Year Ended December 31, 2021 Weighted average remaining lease term In Years Finance leases 13.7 Operating leases 16.2 Weighted average discount rate Finance leases 6.7 % Operating leases 6.3 % |
Leases | Leases The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. The Company's leases have remaining lease terms of approximately 1 year to 38 years, which may include the option to extend the lease when it is reasonably certain the Company will exercise the option. Most leases include one or more options to renew, with renewal terms that can extend the lease term from 5 to 20 years or more. The exercise of lease renewal options is at the Company's sole discretion. Due to the uncertainties of future markets, economic factors, technology changes, demographic shifts and behavior, environmental regulatory requirements and other information that impacts decisions as to store location, management has determined that it was not reasonably certain to exercise contract options and they are not included in the lease term. Additionally, short-term leases and leases with variable lease costs are immaterial. The Company reviews all options to extend, terminate, or otherwise modify its lease agreements to determine if changes are required to the right of use assets and liabilities. As the implicit interest rate is not readily determinable in most of the Company's lease agreements, the Company uses its estimated secured incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Lessor — We have various arrangements for certain spaces for food service and vending equipment under which we are the lessor. These leases meet the criteria for operating lease classification. Lease income associated with these leases is immaterial. We also have certain areas where we sublease building and land space to others. This lease income is immaterial. Lessee —We lease land for 407 stores, one terminal, and various equipment. Our lease agreements do not contain any material residual value guarantees and approximately 102 sites leased from Walmart contain restrictive covenants, though the restrictions are deemed to have an immaterial impact. Leases are reflected in the following balance sheet accounts: (Millions of dollars) Classification December 31, December 31, Assets Operating (Right-of-use) Operating lease right of use assets, net $ 419.2 $ 147.7 Finance Property, plant, and equipment, at cost, less accumulated depreciation of $16.7 in 2021 and $2.8 in 2020 137.3 2.6 Total leased assets $ 556.5 $ 150.3 Liabilities Current Operating Trade accounts payable and accrued liabilities $ 18.1 $ 7.8 Finance Current maturities of long-term debt 11.0 1.2 Noncurrent Operating Non-current operating lease liabilities 408.9 142.5 Finance Long-term debt, including capitalized lease obligations 130.6 0.9 Total lease liabilities $ 568.6 $ 152.4 Lease Cost: Year Ended December 31, (Millions of dollars) Classification 2021 2020 2019 Operating lease cost Store and other operating expenses $ 43.1 $ 16.6 $ 14.5 Finance lease cost Amortization of leased assets Depreciation & amortization expense 14.8 1.3 1.2 Interest on lease liabilities Interest expense 8.2 0.1 0.1 Net lease costs $ 66.1 $ 18.0 $ 15.8 Cash flow information: Year Ended December 31, (Millions of dollars) 2021 2020 2019 Cash paid for amounts included in the measurement of liabilities Operating cash flows required by operating leases $ 38.8 $ 15.5 $ 13.8 Operating cash flows required by finance leases $ 8.2 $ 0.1 $ 0.1 Financing cash flows required by finance leases $ 9.8 $ 1.4 $ 1.4 Maturity of Lease Liabilities: (Millions of dollars) Operating leases Finance leases 2022 $ 44.4 $ 19.9 2023 44.0 18.4 2024 43.6 16.9 2025 42.6 15.9 2026 41.9 15.3 After 2026 498.1 137.2 Total lease payments 714.6 223.6 less: interest 287.6 82.0 Present value of lease liabilities $ 427.0 $ 141.6 Lease Term and Discount Rate: Year Ended December 31, 2021 Weighted average remaining lease term In Years Finance leases 13.7 Operating leases 16.2 Weighted average discount rate Finance leases 6.7 % Operating leases 6.3 % |
Recent Accounting and Reporting
Recent Accounting and Reporting Rules | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting and Reporting Rules | Recent Accounting and Reporting Rules In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes," which removes certain exceptions for: recognizing deferred taxes on investments, performing intraperiod allocation and calculating income taxes for interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. This ASU was effective for the Company for the year beginning January 1, 2021 and this update did not have a material impact on the Company's consolidated financial statements. In January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform (Topic 848): Scope". This standard extends certain of the optional expedients and exceptions in ASC 848 which applies to derivative contracts impacted by the discounting transition, including derivatives that do not reference LIBOR or other reference rates that are expected to be discontinued. The new standard applies to all entities and is in effect for a limited time, from March 12, 2020 through December 31, 2022. The Company has determined this standard has not had a material impact on the Company's consolidated financial statements. In August 2021, the FASB issued ASU 2021-08, "Accounting for Contract Assets and Contract Liabilities from Contracts with Customers," which requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities (deferred revenue) from acquired contracts using the revenue recognition guidance in Topic 606. Under Topic 606, the acquirer applies the revenue model as if it had originated the contracts. This is a departure from the current requirement to measure contract assets and contract liabilities at fair value. This ASU is effective for the Company for the year beginning January 1, 2023, with early adoption permitted. The Company has determined this will not have a material impact on the Company's consolidated financial statements. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments Our operations include the sale of retail motor fuel products and convenience merchandise along with the wholesale and bulk sale capabilities of our product supply and wholesale group. As the primary purpose of the product supply and wholesale group is to support our retail operations and provide fuel for their daily operation, the bulk and wholesale fuel sales are secondary to the support functions played by these groups. As such, they are all treated as one segment for reporting purposes as they sell the same products and have similar economic characteristics. This Marketing segment contains essentially all of the revenue generating activities of the Company. Results not included in the reportable segment include Corporate and Other Assets. The reportable segment was determined based on information reviewed by the Chief Operating Decision Maker. Segment Information Corporate and Other Assets (Millions of dollars) Marketing Consolidated Year ended December 31, 2021 Segment income (loss) $ 472.8 $ (75.9) $ 396.9 Revenues from external customers $ 17,359.9 $ 0.6 $ 17,360.5 Interest income $ — $ 0.1 $ 0.1 Interest expense $ (8.1) $ (74.3) $ (82.4) Income tax expense (benefit) $ 148.5 $ (23.5) $ 125.0 Significant noncash charges (credits) Depreciation and amortization $ 197.3 $ 15.3 $ 212.6 Accretion of asset retirement obligations $ 2.5 $ — $ 2.5 Deferred and noncurrent income taxes (benefits) $ 22.6 $ (3.6) $ 19.0 Additions to property, plant and equipment $ 245.5 $ 32.0 $ 277.5 Total assets at year-end $ 3,569.4 $ 478.8 $ 4,048.2 Segment Information Corporate and Other Assets (Millions of dollars) Marketing Consolidated Year ended December 31, 2020 Segment income (loss) $ 442.2 $ (56.1) $ 386.1 Revenues from external customers $ 11,264.0 $ 0.3 $ 11,264.3 Interest income $ — $ 1.0 $ 1.0 Interest expense $ (0.1) $ (51.1) $ (51.2) Income tax expense (benefit) $ 132.9 $ (9.9) $ 123.0 Significant noncash charges (credits) Depreciation and amortization $ 146.3 $ 14.7 $ 161.0 Accretion of asset retirement obligations $ 2.3 $ — $ 2.3 Deferred and noncurrent income taxes (benefits) $ 2.8 $ (0.3) $ 2.5 Additions to property, plant and equipment $ 200.8 $ 26.3 $ 227.1 Total assets at year-end $ 2,418.2 $ 267.5 $ 2,685.7 Segment Information Corporate and Other Assets (Millions of dollars) Marketing Consolidated Year ended December 31, 2019 Segment income (loss) $ 215.0 $ (60.2) $ 154.8 Revenues from external customers $ 14,034.3 $ 0.3 $ 14,034.6 Interest income $ — $ 3.2 $ 3.2 Interest expense $ (0.1) $ (54.8) $ (54.9) Loss on early debt extinguishment $ — $ (14.8) $ (14.8) Income tax expense (benefit) $ 66.3 $ (18.7) $ 47.6 Significant noncash charges (credits) Depreciation and amortization $ 138.9 $ 13.3 $ 152.2 Accretion of asset retirement obligations $ 2.1 $ — $ 2.1 Debt extinguishment costs $ — $ 4.4 $ 4.4 Deferred and noncurrent income taxes (benefits) $ 32.9 $ (9.2) $ 23.7 Additions to property, plant and equipment $ 155.5 $ 59.1 $ 214.6 Total assets at year-end $ 2,304.7 $ 382.5 $ 2,687.2 |
Schedule II - Valuation And Qua
Schedule II - Valuation And Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation And Qualifying Accounts | SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS Murphy USA Inc. Valuation Accounts and Reserves (Millions of dollars) Balance at January 1, Charged (Credited) to Expense Deductions Balance at December 31, 2021 Deducted from assets accounts Allowance for doubtful accounts $ 0.1 — — $ 0.1 2020 Deducted from assets accounts Allowance for doubtful accounts $ 1.2 — (1.1) $ 0.1 2019 Deducted from assets accounts Allowance for doubtful accounts $ 1.1 0.1 — $ 1.2 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | PRINCIPLES OF CONSOLIDATION – These consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and include the accounts of Murphy USA Inc. and its subsidiaries for all periods presented. All significant intercompany accounts and transactions within the consolidated financial statements have been eliminated. |
Revenue Recognition, Shipping and Handling Costs and Vendor Allowances and Rebates | REVENUE RECOGNITION – Revenue is recognized when obligations under the terms of a contract with our customers are satisfied; generally, this occurs with the transfer of control of our petroleum products, convenience merchandise, Renewable Identification Numbers ("RINs") and other assets to our third-party customers. Revenue is measured as the amounts of consideration we expect to receive in exchange for transferring goods or providing services. Excise and sales tax that we collect where we have determined we are the principal in the transaction have been recorded as revenue on a jurisdiction-by-jurisdiction basis. The Company enters into buy/sell and similar arrangements when petroleum products are held at one location but are needed at a different location. The Company often pays or receives funds related to the buy/sell arrangement based on location or quality differences. The Company accounts for such transactions as non-monetary exchanges under existing accounting guidance and typically reports these on a net basis in its Consolidated Income Statements. See Note 3 "Revenues" for additional information. SHIPPING AND HANDLING COSTS – Costs incurred for the shipping and handling of motor fuel are included in Petroleum product cost of goods sold in the Consolidated Income Statements. Costs incurred for the shipping and handling of convenience store merchandise are included in Merchandise cost of goods sold in the Consolidated Income Statements. Petroleum product sales (at retail). For our retail store locations, the revenue related to petroleum product sales is recognized as the fuel is pumped to our customers. The transaction price at the pump typically includes some portion of sales or excise taxes as levied in the respective jurisdictions. Those taxes that are collected for remittance to governmental entities on a pass through basis are not recognized as revenue and they are recorded to a liability account until they are paid. Our customers typically use a mixture of cash, checks, credit cards and debit cards to pay for our products as they are received. We have accounts receivable from the various credit/debit card providers at any point in time related to product sales made on credit cards and debit cards. These receivables are typically collected in two Petroleum product sales (at wholesale). Our sales of petroleum products at wholesale are generally recorded as revenue when the deliveries have occurred and legal ownership of the product has transferred to the customer. Title transfer for bulk refined product sales typically occurs at pipeline custody points and upon trucks loading at product terminals. For bulk pipeline sales, we record receivables from customers that are generally collected within a week from custody transfer date. For our rack product sales, the majority of our customers' accounts are drafted by us within 10 days from product transfer. Merchandise sales. For our retail store locations, the revenue related to merchandise sales is recognized as the customer completes their purchase at our locations. The transaction price typically includes some portion of sales tax as levied in the respective jurisdictions. Those taxes that are collected for remittance to governmental entities on a pass through basis are not recognized as revenue and they are recorded to a liability account until they are paid. As noted above, a mixture of payment types are used for these revenues and the same terms for credit/debit card receivables are realized. The most significant judgment with respect to merchandise sales revenue is determining whether we are the principal or agent for some categories of merchandise such as lottery tickets, lotto tickets, newspapers and other small categories of merchandise. For scratch-off lottery tickets, we have determined we are the principal in the majority of the jurisdictions and therefore we record those sales on a gross basis. We have some categories of merchandise (such as lotto tickets) where we are the agent and the revenues recorded for those transactions are our net commission only. The Company offers loyalty programs through its Murphy USA, Murphy Express, and QuickChek branded retail locations. The customers earn rewards based on their spending or other promotional activities. These programs create a performance obligation which requires us to defer a portion of sales revenue to the loyalty program participants until they redeem their rewards. The rewards may be redeemed for free or discounted merchandise or cash discounts at all stores and on fuel purchases at Murphy USA and Murphy Express stores. Earned rewards expire after an account is inactive for a period of 90 days at Murphy USA and Murphy Express, while certain QuickChek rewards require use within the month. We recognize loyalty revenue when a customer redeems an earned reward. Deferred revenue associated with both rewards programs are included in Trade accounts payable and accrued liabilities in our Consolidated Balance Sheet. The deferred revenue balances at December 31, 2021 and 2020 were immaterial. RINs sales. For the sale of RINs, we recognize revenue when the RIN is transferred to the counter-party and the sale is completed. Receivables from our counter-parties related to the RIN sales are typically collected within five days of the sale. Other revenues. Items reported as other operating revenues include collection allowances for excise and sales tax and other miscellaneous items and are recognized as revenue when the transaction is completed. |
Taxes Collected from Customers and Remitted to Government Authorities | TAXES COLLECTED FROM CUSTOMERS AND REMITTED TO GOVERNMENT AUTHORITIES – Excise and other taxes collected on sales of refined products and remitted to governmental agencies are included in operating revenues and operating expenses in the Consolidated Income Statements. |
Cash Equivalents | CASH EQUIVALENTS – Short-term investments, which include government securities, money market funds and other instruments with government securities as collateral, that have a maturity of three months or less from the date of purchase are classified as cash equivalents. |
Accounts Receivable | ACCOUNTS RECEIVABLE – The Company’s accounts receivable are recorded at the invoiced amount and do not bear interest. The accounts receivable primarily consists of amounts owed to the Company from credit card companies and by customers for wholesale sales of refined petroleum products. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses on these receivables. The Company reviews this allowance for adequacy at least quarterly and bases its assessment on a combination of current information about its customers and historical write-off experience. Any trade accounts receivable balances written off are charged against the allowance for doubtful accounts. The Company has not experienced any significant credit-related losses in the past three years. |
Inventories | INVENTORIES – Inventories of petroleum products located at Murphy branded stores are valued at the lower of cost, generally applied on a last-in, first-out (“LIFO”) basis, or market, while petroleum products located at QuickChek branded stores are valued at weighted average cost. Any increments to LIFO inventory volumes are valued based on the first purchase price for these volumes during the year. Merchandise inventories held for resale at Murphy branded stores are carried at average cost. Certain merchandise inventories at QuickChek stores are on a LIFO basis while all other items are valued on average cost. Materials and supplies are valued at the lower of average cost or estimated value. |
Business Combinations | BUSINESS COMBINATIONS – |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT – Additions to property, plant and equipment, including renewals and betterments, are capitalized and recorded at cost. Certain marketing facilities are primarily depreciated using the composite straight-line method with depreciable lives ranging from 16 to 25 years. Gasoline stores, improvements to gasoline stores and other assets are depreciated over 3 to 50 years by individual unit on the straight-line method. The Company capitalizes interest costs as a component of construction in progress on individually significant projects based on the weighted average interest rates incurred on its long-term borrowings. Total interest cost capitalized was $2.1 million in 2021 and $1.4 million in 2020 and 2019. The Company has undertaken like-kind exchange ("LKE") transactions under the Federal tax code in an effort to acquire and sell real and personal property in a tax efficient manner. The Company generally enters into forward transactions, in which property is sold and the proceeds are reinvested by acquiring similar property; and reverse transactions, in which property is acquired and similar property is subsequently sold. A qualified LKE intermediary is used to facilitate these LKE transactions. Proceeds from forward LKE transactions are held by the intermediary and are classified as restricted cash on the Company's balance sheet because the funds must be reinvested in similar properties. If the acquisition of suitable LKE properties is not completed within 180 days of the sale of the Company-owned property, the proceeds are distributed to the Company by the intermediary and are reclassified as available cash and applicable income taxes are determined. An exchange accommodation titleholder, a type of variable interest entity, is used to facilitate reverse like-kind exchanges. The acquired assets are held by the exchange accommodation titleholder until the exchange transactions are complete. If the Company determines that it is the primary beneficiary of the exchange accommodation titleholder, the replacements assets held by the exchange accommodation titleholder are consolidated and recorded in Property, Plant and Equipment on the Consolidated Balance Sheets. The unspent proceeds that are held in trust with the intermediary are recorded as noncurrent assets in the Consolidated Balance Sheet as the cash was restricted for the acquisition of property, plant and equipment. |
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS – |
Impairment of Assets | IMPAIRMENT OF ASSETS – Long-lived assets, which include property and equipment, and finite-lived and indefinite-lived intangible assets, are tested for recoverability whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. A long-lived asset is not recoverable if its carrying amount exceeds the sum of the undiscounted cash flows expected to result from its use and eventual disposition. If a long-lived asset is not recoverable, an impairment loss is recognized for the amount by which the carrying amount of the long-lived asset exceeds its fair value, with fair value determined based on discounted estimated net cash flows or other appropriate methods. |
Asset Retirement Obligations | ASSET RETIREMENT OBLIGATIONS – The Company records a liability for asset retirement obligations (“ARO”) equal to the fair value of the estimated cost to retire an asset. The ARO liability is initially recorded in the period in which the obligation meets the definition of a liability, which is generally when the asset is placed in service. The ARO liability is estimated using existing regulatory requirements and anticipated future inflation rates. When the liability is initially recorded, the Company increases the carrying amount of the related long-lived asset by an amount equal to the original liability. The liability is increased over time to reflect the change in its present value, and the capitalized cost is depreciated over the useful life of the related long-lived asset. The Company reevaluates the adequacy of its recorded ARO liability at least annually. Actual costs of asset retirements such as dismantling service stores and site restoration are charged against the related liability. Any difference between costs incurred upon settlement of an asset retirement obligation and the recorded liability is recognized as a gain or loss in the Company’s Consolidated Income Statements. |
Environmental Liabilities | ENVIRONMENTAL LIABILITIES – A liability for environmental matters is established when it is probable that an environmental obligation exists and the cost can be reasonably estimated. If there is a range of reasonably estimated costs, the most likely amount will be recorded, or if no amount is most likely, the minimum of the range is used. Related expenditures are charged against the liability. Environmental remediation liabilities have not been discounted for the time value of future expected payments. Environmental expenditures that have future economic benefit are capitalized. |
Income Taxes | INCOME TAXES – The Company accounts for income taxes using the asset and liability method. Under this method, income taxes are provided for amounts currently payable and for amounts deferred as tax assets and liabilities based on differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. Deferred income taxes are measured using the enacted tax rates that are assumed will be in effect when the differences reverse. The Company routinely assesses the realizability of deferred tax assets based on available positive and negative evidence including assumptions of future taxable income, tax planning strategies and other pertinent factors. A deferred tax asset valuation allowance is recorded when evidence indicates that it is more likely than not that all or a portion of these deferred tax assets will not be realized in a future period. The accounting principles for income tax uncertainties permit recognition of income tax benefits only when they are more likely than not to be realized. The Company has elected to classify any interest expense and penalties related to the underpayment of income taxes in Income tax expense in the Consolidated Income Statements. |
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES – The fair value of a derivative instrument is recognized as an asset or liability in the Company’s Consolidated Balance Sheets. Upon entering into a derivative contract, the Company may designate the derivative as either a fair value hedge or a cash flow hedge, or decide that the contract is not a hedge, and therefore, recognize changes in the fair value of the contract in earnings. The Company documents the relationship between the derivative instrument designated as a hedge and the hedged items as well as its objective for risk management and strategy for use of the hedging instrument to manage the risk. Derivative instruments designated as fair value or cash flow hedges are linked to specific assets and liabilities or to specific firm commitments or forecasted transactions. The Company assesses at inception and on an ongoing basis whether a derivative instrument accounted for as a hedge is highly effective in offsetting changes in the fair value or cash flows of the hedged item. A derivative that is not a highly effective hedge does not qualify for hedge accounting. The change in the fair value of a qualifying fair value hedge is recorded in earnings along with the gain or loss on the hedged item. The effective portion of the change in the fair value of a qualifying cash flow hedge is recorded in Accumulated other comprehensive income (AOCI) in the consolidated Balance Sheets until the hedged item is recognized currently in earnings. If a derivative instrument no longer qualifies as a cash flow hedge and the underlying forecasted transaction is no longer probable of occurring, hedge accounting is discontinued and the gain or loss recorded in Accumulated other comprehensive income is recognized immediately in earnings. If a hedge is de-designated, hedge accounting will no longer apply and from that time the gain and losses will be recognized in earnings and any accumulated amounts in other comprehensive income will be amortized to earnings over the remaining life of the underlying instrument. |
Stock-Based Compensation | STOCK-BASED COMPENSATION – The fair value of awarded stock options, restricted stock, restricted stock units and performance stock units is determined based on a combination of management assumptions for awards issued. The Company uses the Black-Scholes option pricing model for computing the fair value of stock options. The primary assumptions made by management included the expected life of the stock option award and the expected volatility of the Company’s common stock prices. The Company uses both historical data and current information to support its assumptions. Stock option expense is recognized on a straight-line basis over the requisite service period of three years. The Company uses a Monte Carlo valuation model to determine the fair value of performance-based stock units that are based on performance compared against a peer group and the related expense is recognized over the |
Use of Estimates | USE OF ESTIMATES – In preparing the financial statements of the Company in conformity with U.S. GAAP, management has made a number of estimates and assumptions related to the reporting of assets, liabilities, revenues, and expenses and the disclosure of contingent assets and liabilities. Actual results may differ from the estimates. On an ongoing basis, we review our estimates based on currently available information. Changes in facts and circumstances may result in revised estimates. |
Recent Accounting and Reporting Rules | Recent Accounting and Reporting Rules In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes," which removes certain exceptions for: recognizing deferred taxes on investments, performing intraperiod allocation and calculating income taxes for interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. This ASU was effective for the Company for the year beginning January 1, 2021 and this update did not have a material impact on the Company's consolidated financial statements. In January 2021, the FASB issued ASU 2021-01, "Reference Rate Reform (Topic 848): Scope". This standard extends certain of the optional expedients and exceptions in ASC 848 which applies to derivative contracts impacted by the discounting transition, including derivatives that do not reference LIBOR or other reference rates that are expected to be discontinued. The new standard applies to all entities and is in effect for a limited time, from March 12, 2020 through December 31, 2022. The Company has determined this standard has not had a material impact on the Company's consolidated financial statements. In August 2021, the FASB issued ASU 2021-08, "Accounting for Contract Assets and Contract Liabilities from Contracts with Customers," which requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities (deferred revenue) from acquired contracts using the revenue recognition guidance in Topic 606. Under Topic 606, the acquirer applies the revenue model as if it had originated the contracts. This is a departure from the current requirement to measure contract assets and contract liabilities at fair value. This ASU is effective for the Company for the year beginning January 1, 2023, with early adoption permitted. The Company has determined this will not have a material impact on the Company's consolidated financial statements. |
Lease Accounting | The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. The Company's leases have remaining lease terms of approximately 1 year to 38 years, which may include the option to extend the lease when it is reasonably certain the Company will exercise the option. Most leases include one or more options to renew, with renewal terms that can extend the lease term from 5 to 20 years or more. The exercise of lease renewal options is at the Company's sole discretion. Due to the uncertainties of future markets, economic factors, technology changes, demographic shifts and behavior, environmental regulatory requirements and other information that impacts decisions as to store location, management has determined that it was not reasonably certain to exercise contract options and they are not included in the lease term. Additionally, short-term leases and leases with variable lease costs are immaterial. The Company reviews all options to extend, terminate, or otherwise modify its lease agreements to determine if changes are required to the right of use assets and liabilities.As the implicit interest rate is not readily determinable in most of the Company's lease agreements, the Company uses its estimated secured incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates our revenue by major source for the years ended December 31, 2021, 2020, and 2019. Years Ended December 31, (Millions of dollars) 2021 2020 2019 Marketing Segment Petroleum product sales (at retail) 1 $ 12,022.7 $ 7,444.6 $ 10,184.0 Petroleum product sales (at wholesale) 1 1,388.1 764.0 1,189.8 Total petroleum product sales 13,410.8 8,208.6 11,373.8 Merchandise sales 3,677.7 2,955.1 2,620.1 Other operating revenues: RINs 265.3 95.5 34.8 Other revenues 2 6.1 4.8 5.6 Total marketing segment revenues 17,359.9 11,264.0 14,034.3 Corporate and Other Assets 0.6 0.3 0.3 Total revenues $ 17,360.5 $ 11,264.3 $ 14,034.6 1 Includes excise and sales taxes that remain eligible for inclusion under Topic 606 2 Primarily includes collection allowance on excise and sales taxes and other miscellaneous items |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Summary of Inventory | Inventories consisted of the following: December 31, (Millions of dollars) 2021 2020 Petroleum products - FIFO basis $ 339.8 $ 223.0 Store merchandise for resale - FIFO basis 173.1 152.0 Less LIFO reserve (228.0) (101.3) Total petroleum products and store merchandise inventory 284.9 273.7 Materials and supplies 7.4 5.4 Total inventories $ 292.3 $ 279.1 |
Business Acquisition (Tables)
Business Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the fair value of the consideration transferred at the date of the acquisition, as well as the calculation of goodwill based on the excess of consideration over the fair value of net assets acquired: (Millions of dollars) Cash paid to shareholders $ 641.9 Less cash and cash equivalents acquired 0.8 Fair value of consideration transferred, net of cash acquired $ 641.1 (Millions of dollars) Assets acquired: Accounts receivable $ 8.0 Inventories 24.3 Prepaid expenses and other current assets 5.5 Property and equipment 447.1 Right of use assets 237.6 Other assets 5.4 Identified intangible assets 106.8 Liabilities assumed: Accounts payable and accrued expenses (68.4) Deferred income tax liabilities (58.5) Asset retirement obligation (1.2) Current and long term debt, including finance lease obligations (148.5) Deferred credits and other liabilities (7.4) Operating lease liabilities (237.6) Net assets acquired 313.1 Goodwill 328.0 Fair value of consideration transferred, net of cash and cash equivalents acquired $ 641.1 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | December 31, 2021 December 31, 2020 (Millions of dollars) Estimated Useful Life Cost Net Cost Net Land $ 639.4 $ 639.4 $ 609.5 $ 609.5 Real estate finance lease 1 to 40 years 147.1 134.3 — — Pipeline and terminal facilities 16 to 25 years 83.2 44.5 79.8 43.5 Retail gasoline stores 3 to 50 years 2,657.8 1,451.1 2,179.7 1,123.2 Buildings 20 to 45 years 70.7 49.7 66.7 48.5 Other 3 to 20 years 153.6 59.4 123.3 42.9 $ 3,751.8 $ 2,378.4 $ 3,059.0 $ 1,867.6 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | (Millions of dollars) Goodwill balance, January 1, 2021 $ — QuickChek acquisition 328.0 Goodwill balance, December 31, 2021 $ 328.0 |
Schedule of Intangible Assets | In connection with our acquisition of QuickChek on January 29, 2021, we recorded the following amounts of intangible assets. Remaining Useful Life January 29, (Millions of dollars) (in years) Carrying Value Intangible assets subject to amortization: Intangible lease liability 13.6 $ (9.1) Intangible assets not subject to amortization: Trade name n/a 115.4 Liquor licenses n/a 0.5 Total intangible assets $ 106.8 We amortize intangible assets subject to amortization on a straight-line or accelerated basis based on the period for which the economic benefits of the asset or liability are expected to be realized. The intangible assets subject to amortization was in addition to the Company's existing intangible asset pipeline space, which is being amortized over a 40 year life. Intangible assets at December 31, 2021 and December 31, 2020 consisted of the following: Remaining Useful Life (in years) December 31, 2021 December 31, 2020 (Millions of dollars) Cost Net Cost Net Intangible assets subject to amortization: Pipeline space 33.7 $ 39.6 $ 33.7 $ 39.6 $ 34.6 Intangible lease liability 12.5 (9.1) (8.6) — — Total intangible assets subject to amortization 30.5 25.1 39.6 34.6 Intangible assets not subject to amortization, indefinite lives 115.6 115.6 — — Intangible assets, net of amortization $ 146.1 $ 140.7 $ 39.6 $ 34.6 |
Accounts Payable And Accrued _2
Accounts Payable And Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Trade accounts payable and accrued liabilities consisted of the following: December 31, (Millions of dollars) 2021 2020 Trade accounts payable $ 392.5 $ 261.0 Excise taxes/withholdings payable 93.6 84.1 Accrued insurance obligations 46.2 30.3 Accrued taxes other than income 41.4 31.7 Accrued compensation and benefits 36.5 32.5 Other 50.1 31.5 Accounts payable and accrued liabilities $ 660.3 $ 471.1 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Long-term debt consisted of the following: December 31, (Millions of dollars) 2021 2020 5.625% senior notes due 2027 (net of unamortized discount of $2.0 at 2021 and $2.4 at 2020) $ 298.0 $ 297.6 4.75% senior notes due 2029 (net of unamortized discount of $4.8 at 2021 and $5.4 at 2020) 495.2 494.6 3.75% senior notes due 2031 (net of unamortized discount of $5.7 at 2021 and none at 2020) 494.3 — Term loan due 2023 (effective interest rate of 2.67% at 2020) — 212.5 Term loan due 2028 (effective interest rate of 2.27% at 2021) net of unamortized discount of $0.9 at 2021 and none at 2020 397.1 — Capitalized lease obligations, vehicles, due through 2025 2.7 2.1 Capitalized lease obligations, buildings, due through 2059 138.9 — Unamortized debt issuance costs (11.1) (4.4) Total long-term debt 1,815.1 1,002.4 Less current maturities 15.0 51.2 Total long-term debt, net of current $ 1,800.1 $ 951.2 |
Asset Retirement Obligations _2
Asset Retirement Obligations (ARO) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Reconciliation of Beginning and Ending Aggregate Carrying Amount of Asset Retirement Obligation | A reconciliation of the beginning and ending aggregate carrying amount of the ARO is shown in the following table. December 31, (Millions of dollars) 2021 2020 Balance at beginning of period $ 35.1 $ 32.8 Addition for acquisition 1.2 — Accretion expense 2.5 2.3 Settlement of liabilities (1.0) (0.8) Liabilities incurred 1.4 0.8 Balance at end of period $ 39.2 $ 35.1 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Summary of Effective Income Tax Rates | The components of income before income taxes for each of the three years ended December 31, 2021 and income tax expense (benefit) attributable thereto were as follows: Years Ended December 31, (Millions of dollars) 2021 2020 2019 Income (loss) before income taxes $ 521.9 $ 509.1 $ 202.4 Income tax expense (benefit) Federal - Current $ 86.2 $ 96.0 $ 15.6 Federal - Deferred 14.4 4.7 21.7 State - Current and deferred 24.4 22.3 10.3 Total $ 125.0 $ 123.0 $ 47.6 |
Schedule of Reconciliation of Income Taxes to Statutory Rate | The following table reconciles income taxes based on the U.S. statutory tax rate to the Company’s income tax expense (benefit). Years Ended December 31, (Millions of dollars) 2021 2020 2019 Income tax expense based on the U.S. statutory tax rate $ 109.6 $ 106.9 $ 42.5 State income taxes, net of federal benefit 19.2 17.5 8.6 Federal credits (2.2) (1.9) (2.3) Other, net (1.6) 0.5 (1.2) Total $ 125.0 $ 123.0 $ 47.6 |
Summary of Deferred Tax Assets and Deferred Tax Liabilities | An analysis of the Company’s deferred tax assets and deferred tax liabilities at December 31, 2021 and 2020 showing the tax effects of significant temporary differences is as follows: December 31, (Millions of dollars) 2021 2020 Deferred tax assets Property costs and asset retirement obligations $ 5.2 $ 4.5 Net operating loss 6.3 — Employee benefits 8.6 8.0 Operating leases liability 89.7 31.6 Other deferred tax assets 11.8 7.2 Total gross deferred tax assets 121.6 51.3 Deferred tax liabilities Accumulated depreciation and amortization (285.4) (213.2) State deferred taxes (31.7) (20.2) Operating leases right of use assets (88.0) (31.0) Other deferred tax liabilities (12.4) (5.3) Total gross deferred tax liabilities (417.5) (269.7) Net deferred tax liabilities $ (295.9) $ (218.4) |
Reconciliation of Beginning and Ending Liability for Uncertain Tax Positions | A reconciliation of the beginning and ending amount of the consolidated liability for unrecognized income tax benefits during the year ended December 31, 2021 and 2020 is shown in the following table. Year Ended December 31, (Millions of dollars) 2021 2020 Balance at January 1 $ 0.4 $ 0.6 Additions for tax positions related to prior years 0.3 0.1 Settlements with taxing authorities — (0.3) Expiration of statutes of limitation (0.2) — Balance at December 31 $ 0.5 $ 0.4 |
Incentive Plans (Tables)
Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Amounts Recognized in Financial Statements with Respect to Share-Based Plans | Amounts recognized in the financial statements by the Company with respect to all share-based plans are shown in the following table: Years Ended December 31, (Millions of dollars) 2021 2020 2019 Compensation charged against income before income tax benefit $ 14.4 $ 14.3 $ 10.5 Related income tax benefit recognized in income $ 3.0 $ 3.0 $ 2.2 |
Summary of Valuation Assumptions | Following are the assumptions used by the Company to value the original awards: Years Ended December 31, 2021 2020 2019 Fair value per option grant $ 32.00 $ 28.28 $ 20.48 Assumptions Dividend yield 0.8 % — — Expected volatility 32.3 % 28.1 % 26.8 % Risk-free interest rate 0.4 % 1.5 % 2.5 % Expected life (years) 4.6 4.7 4.5 Stock price at valuation date $ 126.00 $ 106.72 $ 76.15 |
Summary of Changes in Stock Options Outstanding | Changes in options outstanding for Company employees during the period from December 31, 2020 to December 31, 2021 are presented in the following table: Options Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (Millions of Dollars) Outstanding at December 31, 2020 322,700 79.60 Granted 85,500 126.71 Exercised (28,250) 68.88 Forfeited (13,850) 105.84 Outstanding at December 31, 2021 366,100 $ 90.44 4.2 $ 39.8 Exercisable at December 31, 2021 167,950 $ 70.13 3.0 $ 21.7 |
Summary of Additional Stock Option Information | Additional information about stock options outstanding at December 31, 2021 is shown below: Options Outstanding Options Exercisable Range of Exercise Prices per Option No. of Options Avg. Life Remaining in Years No. of Options Avg. Life Remaining in Years $60.00 to $69.99 66,500 2.1 66,500 2.1 $70.00 to $79.99 145,200 3.7 101,450 3.5 $80.00 to $89.99 3,600 5.2 — — $100.00 to $109.99 70,300 5.1 — — $120.00 to $129.99 76,300 6.1 — — $130.00 to $139.99 3,300 6.2 — — $140.00 to $149.99 900 6.7 — — 366,100 4.2 167,950 3.0 |
Summary of Restricted Stock Unit Activity | Changes in restricted stock units outstanding for Company employees during the period from December 31, 2020 to December 31, 2021 are presented in the following table: Employee RSUs Number of units Weighted Average Grant Date Fair Value Total Fair Value (Millions of Dollars) Outstanding at December 31, 2020 182,795 $ 77.38 Granted 56,422 $ 130.62 Vested and issued (49,190) $ 72.16 $ 7.0 Forfeited (14,400) $ 77.54 Outstanding at December 31, 2021 175,627 $ 95.93 $ 35.0 Changes in performance-based restricted stock units outstanding for Company employees during the period from December 31, 2020 to December 31, 2021 are presented in the following table: Employee PSU's Number of Units Weighted Average Grant Date Fair Value Total Fair Value (Millions of Dollars) Outstanding at December 31, 2020 129,340 $ 97.01 Granted 65,751 $ 145.16 Vested and issued (58,302) $ 76.78 $ 7.3 Forfeited (9,151) $ 114.99 Outstanding at December 31, 2021 127,638 $ 117.59 $ 25.4 Changes in restricted stock units outstanding for Company non-employee directors during the period from December 31, 2020 to December 31, 2021 are presented in the following table: Director RSU's Number of Units Weighted Average Grant Date Fair Value Total Fair Value (Millions of Dollars) Outstanding at December 31, 2020 31,004 $ 83.31 Granted 9,249 $ 124.97 Vested and issued (9,589) $ 69.37 $ 1.2 Outstanding at December 31, 2021 30,664 $ 100.23 $ 6.1 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Earnings Per Share Computations | The following table provides a reconciliation of basic and diluted earnings per share computations for the years ended December 31, 2021, 2020, and 2019. Years ended December 31, (Millions of dollars except per share amounts) 2021 2020 2019 Earnings per common share: Net income per share - basic Net income attributable to common stockholders $ 396.9 $ 386.1 $ 154.8 Weighted average common shares outstanding (in thousands) 26,210 29,132 31,594 Earnings per common share $ 15.14 $ 13.25 $ 4.90 Earnings per common share - assuming dilution: Net income per share - diluted Net income attributable to common stockholders $ 396.9 $ 386.1 $ 154.8 Weighted average common shares outstanding (in thousands) 26,210 29,132 31,594 Common equivalent shares: Share-based awards 394 394 264 Weighted average common shares outstanding - assuming dilution (in thousands) 26,604 29,526 31,858 Earnings per common share assuming dilution $ 14.92 $ 13.08 $ 4.86 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | We have excluded from the earnings-per-share calculation certain stock options and shares that are considered to be anti-dilutive under the treasury stock method and are reported in the table below. Years ended December 31, Potentially dilutive shares excluded from the calculation as their inclusion would be anti-dilutive 2021 2020 2019 Stock options 80,500 75,600 94,600 Restricted share units 1,562 20,137 843 Total anti-dilutive shares 82,062 95,737 95,443 |
Other Financial Information (Ta
Other Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Changes in Operating Working Capital | CHANGES IN WORKING CAPITAL - Years ended December 31, (Millions of dollars) 2021 2020 2019 Accounts receivable $ (18.9) $ 4.9 $ (33.4) Inventories 11.1 (51.7) (6.1) Prepaid expenses and other current assets (3.6) 16.6 (3.3) Accounts payable and accrued liabilities 102.9 8.3 (5.9) Income taxes payable (8.7) 8.8 — Net decrease (increase) in noncash operating working capital $ 82.8 $ (13.1) $ (48.7) |
Assets and Liabilities Measur_2
Assets and Liabilities Measure at Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Amounts and Estimated Fair Value of Financial Instruments | The following table presents the carrying amounts and estimated fair values of financial instruments held by the Company at December 31, 2021 and 2020. The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties. The table excludes Cash and cash equivalents, Accounts receivable-trade, and Trade accounts payable and accrued liabilities, all of which had fair values approximating carrying amounts. The fair value of Current and Long-term debt was estimated based on rates offered to the Company at that time for debt of the same maturities. The Company has off-balance sheet exposures relating to certain financial guarantees and letters of credit. The fair value of these, which represents fees associated with obtaining the instruments, was nominal. December 31, 2021 December 31, 2020 Carrying Carrying (Millions of dollars) Amount Fair Value Amount Fair Value Financial liabilities Current and long-term debt, excluding finance leases $ (1,673.5) $ (1,709.5) $ (1,000.3) $ (1,029.9) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lessee, Lease | Leases are reflected in the following balance sheet accounts: (Millions of dollars) Classification December 31, December 31, Assets Operating (Right-of-use) Operating lease right of use assets, net $ 419.2 $ 147.7 Finance Property, plant, and equipment, at cost, less accumulated depreciation of $16.7 in 2021 and $2.8 in 2020 137.3 2.6 Total leased assets $ 556.5 $ 150.3 Liabilities Current Operating Trade accounts payable and accrued liabilities $ 18.1 $ 7.8 Finance Current maturities of long-term debt 11.0 1.2 Noncurrent Operating Non-current operating lease liabilities 408.9 142.5 Finance Long-term debt, including capitalized lease obligations 130.6 0.9 Total lease liabilities $ 568.6 $ 152.4 |
Lease, Cost | Lease Cost: Year Ended December 31, (Millions of dollars) Classification 2021 2020 2019 Operating lease cost Store and other operating expenses $ 43.1 $ 16.6 $ 14.5 Finance lease cost Amortization of leased assets Depreciation & amortization expense 14.8 1.3 1.2 Interest on lease liabilities Interest expense 8.2 0.1 0.1 Net lease costs $ 66.1 $ 18.0 $ 15.8 Cash flow information: Year Ended December 31, (Millions of dollars) 2021 2020 2019 Cash paid for amounts included in the measurement of liabilities Operating cash flows required by operating leases $ 38.8 $ 15.5 $ 13.8 Operating cash flows required by finance leases $ 8.2 $ 0.1 $ 0.1 Financing cash flows required by finance leases $ 9.8 $ 1.4 $ 1.4 Lease Term and Discount Rate: Year Ended December 31, 2021 Weighted average remaining lease term In Years Finance leases 13.7 Operating leases 16.2 Weighted average discount rate Finance leases 6.7 % Operating leases 6.3 % |
Maturity of Operating Lease Liability | Maturity of Lease Liabilities: (Millions of dollars) Operating leases Finance leases 2022 $ 44.4 $ 19.9 2023 44.0 18.4 2024 43.6 16.9 2025 42.6 15.9 2026 41.9 15.3 After 2026 498.1 137.2 Total lease payments 714.6 223.6 less: interest 287.6 82.0 Present value of lease liabilities $ 427.0 $ 141.6 |
Maturity of Finance Lease Liabilities | Maturity of Lease Liabilities: (Millions of dollars) Operating leases Finance leases 2022 $ 44.4 $ 19.9 2023 44.0 18.4 2024 43.6 16.9 2025 42.6 15.9 2026 41.9 15.3 After 2026 498.1 137.2 Total lease payments 714.6 223.6 less: interest 287.6 82.0 Present value of lease liabilities $ 427.0 $ 141.6 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Summary of Information by Business Segment | Segment Information Corporate and Other Assets (Millions of dollars) Marketing Consolidated Year ended December 31, 2021 Segment income (loss) $ 472.8 $ (75.9) $ 396.9 Revenues from external customers $ 17,359.9 $ 0.6 $ 17,360.5 Interest income $ — $ 0.1 $ 0.1 Interest expense $ (8.1) $ (74.3) $ (82.4) Income tax expense (benefit) $ 148.5 $ (23.5) $ 125.0 Significant noncash charges (credits) Depreciation and amortization $ 197.3 $ 15.3 $ 212.6 Accretion of asset retirement obligations $ 2.5 $ — $ 2.5 Deferred and noncurrent income taxes (benefits) $ 22.6 $ (3.6) $ 19.0 Additions to property, plant and equipment $ 245.5 $ 32.0 $ 277.5 Total assets at year-end $ 3,569.4 $ 478.8 $ 4,048.2 Segment Information Corporate and Other Assets (Millions of dollars) Marketing Consolidated Year ended December 31, 2020 Segment income (loss) $ 442.2 $ (56.1) $ 386.1 Revenues from external customers $ 11,264.0 $ 0.3 $ 11,264.3 Interest income $ — $ 1.0 $ 1.0 Interest expense $ (0.1) $ (51.1) $ (51.2) Income tax expense (benefit) $ 132.9 $ (9.9) $ 123.0 Significant noncash charges (credits) Depreciation and amortization $ 146.3 $ 14.7 $ 161.0 Accretion of asset retirement obligations $ 2.3 $ — $ 2.3 Deferred and noncurrent income taxes (benefits) $ 2.8 $ (0.3) $ 2.5 Additions to property, plant and equipment $ 200.8 $ 26.3 $ 227.1 Total assets at year-end $ 2,418.2 $ 267.5 $ 2,685.7 Segment Information Corporate and Other Assets (Millions of dollars) Marketing Consolidated Year ended December 31, 2019 Segment income (loss) $ 215.0 $ (60.2) $ 154.8 Revenues from external customers $ 14,034.3 $ 0.3 $ 14,034.6 Interest income $ — $ 3.2 $ 3.2 Interest expense $ (0.1) $ (54.8) $ (54.9) Loss on early debt extinguishment $ — $ (14.8) $ (14.8) Income tax expense (benefit) $ 66.3 $ (18.7) $ 47.6 Significant noncash charges (credits) Depreciation and amortization $ 138.9 $ 13.3 $ 152.2 Accretion of asset retirement obligations $ 2.1 $ — $ 2.1 Debt extinguishment costs $ — $ 4.4 $ 4.4 Deferred and noncurrent income taxes (benefits) $ 32.9 $ (9.2) $ 23.7 Additions to property, plant and equipment $ 155.5 $ 59.1 $ 214.6 Total assets at year-end $ 2,304.7 $ 382.5 $ 2,687.2 |
Description of Business and B_2
Description of Business and Basis of Presentation (Details) | Jan. 29, 2021store | Aug. 31, 2013 | Aug. 30, 2013 | Dec. 31, 2021storestate |
Product Information [Line Items] | ||||
Percentage of shares of stock distributed | 100.00% | |||
Ownership interest after transaction (percent) | 0.00% | |||
Number of stores | 1,679 | |||
Number of states in which entity operates | state | 27 | |||
QuickChek | ||||
Product Information [Line Items] | ||||
Ownership interest after transaction (percent) | 100.00% | |||
Number of stores | 156 | 158 | ||
Murphy USA | ||||
Product Information [Line Items] | ||||
Number of stores | 1,151 | |||
Murphy Express | ||||
Product Information [Line Items] | ||||
Number of stores | 370 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Excise taxes | $ 2,041.7 | $ 1,760 | $ 1,933.3 |
Interest costs capitalized | $ 2.1 | $ 1.4 | $ 1.4 |
LKE transaction, required term to facilitate forward agreement before proceeds are reclassified as available cash (in days) | 180 days | ||
Pipeline and terminal facilities | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable life (in years) | 16 years | ||
Pipeline and terminal facilities | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable life (in years) | 25 years | ||
Retail gasoline stores | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable life (in years) | 3 years | ||
Retail gasoline stores | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable life (in years) | 50 years |
Significant Accounting Polici_4
Significant Accounting Policies - Stock-based Compensation (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Nonqualified Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period (in years) | 3 years |
Restricted Stock And Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period (in years) | 3 years |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 17,360.5 | $ 11,264.3 | $ 14,034.6 |
Merchandise sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 3,677.7 | 2,955.1 | 2,620.1 |
Operating Segment | Marketing | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 17,359.9 | 11,264 | 14,034.3 |
Operating Segment | Marketing | Total petroleum product sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 13,410.8 | 8,208.6 | 11,373.8 |
Operating Segment | Marketing | Petroleum product sales (at retail) | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 12,022.7 | 7,444.6 | 10,184 |
Operating Segment | Marketing | Petroleum product sales (at wholesale) | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,388.1 | 764 | 1,189.8 |
Operating Segment | Marketing | Merchandise sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 3,677.7 | 2,955.1 | 2,620.1 |
Operating Segment | Marketing | RINs | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 265.3 | 95.5 | 34.8 |
Operating Segment | Marketing | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 6.1 | 4.8 | 5.6 |
Corporate and Other Assets | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 0.6 | $ 0.3 | $ 0.3 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Earned rewards, expiration period | 90 days | |
Trade accounts receivable | $ 195.7 | $ 168.8 |
Receivables related to contracts with customers | ||
Disaggregation of Revenue [Line Items] | ||
Trade accounts receivable | $ 111.8 | $ 88.3 |
Petroleum product sales, rack sales | ||
Disaggregation of Revenue [Line Items] | ||
Collection period | 10 days | |
Renewable Identification Numbers (RINs) sales | ||
Disaggregation of Revenue [Line Items] | ||
Collection period | 5 days | |
Minimum | Petroleum product sales (at retail) | ||
Disaggregation of Revenue [Line Items] | ||
Collection period | 2 days | |
Maximum | Petroleum product sales (at retail) | ||
Disaggregation of Revenue [Line Items] | ||
Collection period | 7 days |
Inventories - Summary Of Invent
Inventories - Summary Of Inventory (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Petroleum products - FIFO basis | $ 339.8 | $ 223 |
Store merchandise for resale - FIFO basis | 173.1 | 152 |
Less LIFO reserve | (228) | (101.3) |
Total petroleum products and store merchandise inventory | 284.9 | 273.7 |
Materials and supplies | 7.4 | 5.4 |
Inventories, at lower of cost or market | $ 292.3 | $ 279.1 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory [Line Items] | ||
Inventory, LIFO reserve | $ 228 | $ 101.3 |
Petroleum Products | ||
Inventory [Line Items] | ||
Inventory, LIFO reserve | 227.5 | 101.3 |
Store Merchandise For Resale | ||
Inventory [Line Items] | ||
Inventory, LIFO reserve | $ 0.5 | $ 0 |
Business Acquisition - Narrativ
Business Acquisition - Narrative (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021USD ($)store | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jan. 29, 2021store | |
Business Acquisition [Line Items] | ||||
Number of stores | store | 1,679 | |||
Acquisition related costs | $ | $ 10.4 | $ 1.7 | $ 0 | |
QuickChek | ||||
Business Acquisition [Line Items] | ||||
Percentage of equity interest acquired | 100.00% | |||
Number of stores | store | 158 | 156 | ||
Acquisition related costs | $ | $ 10.4 | $ 1.7 |
Business Acquisition - Allocati
Business Acquisition - Allocation of the Purchase Price for the Transaction (Details) - USD ($) $ in Millions | Jan. 29, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||
Fair value of consideration transferred, net of cash acquired | $ 641.1 | $ 0 | $ 0 | |
Liabilities assumed: | ||||
Goodwill | $ 328 | $ 0 | ||
QuickChek | ||||
Business Acquisition [Line Items] | ||||
Cash paid to shareholders | $ 641.9 | |||
Less cash and cash equivalents acquired | 0.8 | |||
Fair value of consideration transferred, net of cash acquired | 641.1 | |||
Assets acquired: | ||||
Accounts receivable | 8 | |||
Inventories | 24.3 | |||
Prepaid expenses and other current assets | 5.5 | |||
Property and equipment | 447.1 | |||
Right of use assets | 237.6 | |||
Other assets | 5.4 | |||
Identified intangible assets | 106.8 | |||
Liabilities assumed: | ||||
Accounts payable and accrued expenses | (68.4) | |||
Deferred income tax liabilities | (58.5) | |||
Asset retirement obligation | (1.2) | |||
Current and long term debt, including finance lease obligations | (148.5) | |||
Deferred credits and other liabilities | (7.4) | |||
Operating lease liabilities | (237.6) | |||
Net assets acquired | 313.1 | |||
Goodwill | 328 | |||
Fair value of consideration transferred, net of cash and cash equivalents acquired | $ 641.1 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Cost | $ 3,751.8 | $ 3,059 | |
Net | 2,378.4 | 1,867.6 | |
Depreciation expense | 211.6 | 160 | $ 151.2 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 639.4 | 609.5 | |
Net | 639.4 | 609.5 | |
Real estate finance lease | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 147.1 | 0 | |
Net | 134.3 | 0 | |
Pipeline and terminal facilities | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 83.2 | 79.8 | |
Net | 44.5 | 43.5 | |
Retail gasoline stores | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 2,657.8 | 2,179.7 | |
Net | 1,451.1 | 1,123.2 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 70.7 | 66.7 | |
Net | 49.7 | 48.5 | |
Other | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 153.6 | 123.3 | |
Net | $ 59.4 | $ 42.9 | |
Minimum | Real estate finance lease | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (in years) | 1 year | ||
Minimum | Pipeline and terminal facilities | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (in years) | 16 years | ||
Minimum | Retail gasoline stores | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (in years) | 3 years | ||
Minimum | Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (in years) | 20 years | ||
Minimum | Other | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (in years) | 3 years | ||
Maximum | Real estate finance lease | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (in years) | 40 years | ||
Maximum | Pipeline and terminal facilities | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (in years) | 25 years | ||
Maximum | Retail gasoline stores | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (in years) | 50 years | ||
Maximum | Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (in years) | 45 years | ||
Maximum | Other | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life (in years) | 20 years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Changes in Goodwill (Details) | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Tax deductible goodwill | $ 0 |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 0 |
QuickChek acquisition | 328,000,000 |
Goodwill, ending balance | $ 328,000,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Intangible assets not subject to amortization: | $ 115.6 | $ 0 |
Intangible assets, net of amortization | $ 146.1 | 39.6 |
Intangible lease liability | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Remaining Useful Life (in years) | 12 years 6 months | |
Intangible lease liability | $ 0 | |
QuickChek | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Intangible assets, net of amortization | $ 106.8 | |
QuickChek | Intangible lease liability | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Remaining Useful Life (in years) | 13 years 7 months 6 days | |
Intangible lease liability | $ (9.1) | |
QuickChek | Trade name | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Intangible assets not subject to amortization: | 115.4 | |
QuickChek | Liquor licenses | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Intangible assets not subject to amortization: | $ 0.5 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Details) - Pipeline space | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Useful Life (in years) | 40 years |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life (in years) | 40 years |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Intangible Assets Subject to Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Total intangible assets subject to amortization | $ 30.5 | $ 39.6 | |
Intangible assets not subject to amortization, indefinite lives | 115.6 | 0 | |
Intangible assets, net of amortization | 146.1 | 39.6 | |
Intangible assets subject to amortization: | 25.1 | 34.6 | |
Total intangible assets | [1] | $ 140.7 | 34.6 |
Pipeline space | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Remaining Useful Life (in years) | 33 years 8 months 12 days | ||
Total intangible assets subject to amortization | $ 39.6 | 39.6 | |
Intangible assets subject to amortization: | $ 33.7 | 34.6 | |
Intangible lease liability | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Remaining Useful Life (in years) | 12 years 6 months | ||
Intangible lease liability | 0 | ||
Intangible lease liability, net | $ (8.6) | $ 0 | |
[1] | Prior year amounts have been reclassified to conform with current period presentation |
Accounts Payable And Accrued _3
Accounts Payable And Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Trade accounts payable | $ 392.5 | $ 261 |
Excise taxes/withholdings payable | 93.6 | 84.1 |
Accrued insurance obligations | 46.2 | 30.3 |
Accrued taxes other than income | 41.4 | 31.7 |
Accrued compensation and benefits | 36.5 | 32.5 |
Other | 50.1 | 31.5 |
Accounts payable and accrued liabilities | $ 660.3 | $ 471.1 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Jan. 29, 2021 | Dec. 31, 2020 | Sep. 13, 2019 | Apr. 25, 2017 |
Debt Instrument [Line Items] | |||||
Capitalized lease obligations, vehicles, due through 2025 | $ 141.6 | ||||
Unamortized debt issuance costs | (11.1) | $ (4.4) | |||
Total long-term debt | 1,815.1 | 1,002.4 | |||
Less current maturities | 15 | 51.2 | |||
Total long-term debt, net of current | 1,800.1 | 951.2 | |||
Autos And Equipment | |||||
Debt Instrument [Line Items] | |||||
Capitalized lease obligations, vehicles, due through 2025 | 2.7 | 2.1 | |||
Buildings | |||||
Debt Instrument [Line Items] | |||||
Capitalized lease obligations, vehicles, due through 2025 | 138.9 | 0 | |||
Senior Notes | 5.625% senior notes due 2027 (net of unamortized discount of $2.0 at 2021 and $2.4 at 2020) | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 298 | 297.6 | |||
Interest rate (percent) | 5.625% | ||||
Unamortized discount | 2 | 2.4 | |||
Senior Notes | 4.75% senior notes due 2029 (net of unamortized discount of $4.8 at 2021 and $5.4 at 2020) | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 495.2 | 494.6 | |||
Interest rate (percent) | 4.75% | ||||
Unamortized discount | 4.8 | 5.4 | |||
Senior Notes | 3.75% senior notes due 2031 (net of unamortized discount of $5.7 at 2021 and none at 2020) | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 494.3 | 0 | |||
Interest rate (percent) | 3.75% | 3.75% | |||
Unamortized discount | $ 5.7 | $ 0 | |||
Secured Debt | Term loan due 2023 (effective interest rate of 2.67% at 2020) | |||||
Debt Instrument [Line Items] | |||||
Effective interest rate | 2.67% | ||||
Secured Debt | Term loan due 2023 (effective interest rate of 2.67% at 2020) | Term Loan | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 0 | $ 212.5 | |||
Secured Debt | Term loan due 2028 (effective interest rate of 2.72% at 2021) | Term Loan | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 397.1 | 0 | |||
Unamortized discount | $ 0.9 | $ 0 | |||
Effective interest rate | 2.27% |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | Jan. 29, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 13, 2019 | Aug. 31, 2019 | Apr. 25, 2017 |
Debt Instrument [Line Items] | |||||||
Payments for acquisition, net of cash acquired | $ 641,100,000 | $ 0 | $ 0 | ||||
Outstanding letters of credit | $ 10,100,000 | ||||||
Fixed charge coverage ratio | 2.2 | ||||||
Shortfall of net income and retained earnings | $ 112,700,000 | ||||||
QuickChek | |||||||
Debt Instrument [Line Items] | |||||||
Payments for acquisition, net of cash acquired | $ 641,100,000 | ||||||
Federal Funds Rate | |||||||
Debt Instrument [Line Items] | |||||||
Spread over variable rate (percent) | 0.50% | ||||||
LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Spread over variable rate (percent) | 1.00% | ||||||
Revolving Facility | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding under facility | $ 0 | ||||||
Spread over variable rate (percent) | 1.75% | ||||||
Revolving Facility | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Spread over variable rate (percent) | 1.75% | ||||||
Revolving Facility | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Spread over variable rate (percent) | 2.25% | ||||||
Revolving Facility | Alternative Base Rate | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Spread over variable rate (percent) | 0.75% | ||||||
Revolving Facility | Alternative Base Rate | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Spread over variable rate (percent) | 1.25% | ||||||
Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Spread over variable rate (percent) | 1.75% | ||||||
Letter Of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding letters of credit | $ 3,700,000 | ||||||
Line of credit facility, sublimit | 4.50% | ||||||
Credit Agreement | Revolving Facility | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 350,000,000 | ||||||
Credit Agreement | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | 400,000,000 | ||||||
ABL Facility | Revolving Facility | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of debt | $ 200,000,000 | ||||||
Credit Facility | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Fixed charge coverage ratio | 3 | ||||||
Credit Facility | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Fixed charge coverage ratio | 5 | ||||||
Temporary increase to leverage ratio | 5.5 | ||||||
Secured net leverage ratio financial maintenance covenants | 3.75 | ||||||
Temporary increase to secured net leverage ratio financial maintenance covenants | 4.25 | ||||||
Senior Notes | Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 400,000,000 | ||||||
Proceeds from secured debt | $ 400,000,000 | ||||||
Senior Notes | Term Loan | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Spread over variable rate (percent) | 1.00% | ||||||
Senior Notes | 3.750% Senior Note Due 2031 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 500,000,000 | ||||||
Interest rate (percent) | 3.75% | ||||||
Senior Notes | 5.625% senior notes due 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 300,000,000 | ||||||
Interest rate (percent) | 5.625% | ||||||
Senior Notes | Senior Notes 4.75 Percent Due 2029 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 500,000,000 | ||||||
Interest rate (percent) | 4.75% | ||||||
Senior Notes | Senior Notes 3.75% Percent Due 2031 | |||||||
Debt Instrument [Line Items] | |||||||
Senior notes | $ 500,000,000 | ||||||
Interest rate (percent) | 3.75% | 3.75% | |||||
Line of Credit | Revolving Facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 350,000,000 | ||||||
Outstanding balance | $ 398,000,000 | ||||||
Principal payment period | $ 1,000,000 |
Asset Retirement Obligations _3
Asset Retirement Obligations (ARO) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Asset Retirement Obligation Roll Forward | |||
Balance at beginning of period | $ 35.1 | $ 32.8 | |
Addition for acquisition | 1.2 | 0 | |
Accretion expense | 2.5 | 2.3 | $ 2.1 |
Settlement of liabilities | (1) | (0.8) | |
Liabilities incurred | 1.4 | 0.8 | |
Balance at end of period | $ 39.2 | $ 35.1 | $ 32.8 |
Income Taxes - Schedule Of Comp
Income Taxes - Schedule Of Components Of Income From Continuing Operations Before Income Taxes And Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income (loss) before income taxes | $ 521.9 | $ 509.1 | $ 202.4 |
Income tax expense (benefit) | |||
Federal - Current | 86.2 | 96 | 15.6 |
Federal - Deferred | 14.4 | 4.7 | 21.7 |
State - Current and deferred | 24.4 | 22.3 | 10.3 |
Total | $ 125 | $ 123 | $ 47.6 |
Income Taxes - Schedule Of Reco
Income Taxes - Schedule Of Reconciliation Of Income Taxes To Statutory Rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense based on the U.S. statutory tax rate | $ 109.6 | $ 106.9 | $ 42.5 |
State income taxes, net of federal benefit | 19.2 | 17.5 | 8.6 |
Federal credits | (2.2) | (1.9) | (2.3) |
Other, net | (1.6) | 0.5 | (1.2) |
Total | $ 125 | $ 123 | $ 47.6 |
Income Taxes - Summary Of Defer
Income Taxes - Summary Of Deferred Tax Assets And Deferred Tax Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets | ||
Property costs and asset retirement obligations | $ 5.2 | $ 4.5 |
Net operating loss | 6.3 | 0 |
Employee benefits | 8.6 | 8 |
Operating leases liability | 89.7 | 31.6 |
Other deferred tax assets | 11.8 | 7.2 |
Total gross deferred tax assets | 121.6 | 51.3 |
Deferred tax liabilities | ||
Accumulated depreciation and amortization | (285.4) | (213.2) |
State deferred taxes | (31.7) | (20.2) |
Operating leases right of use assets | (88) | (31) |
Other deferred tax liabilities | (12.4) | (5.3) |
Total gross deferred tax liabilities | (417.5) | (269.7) |
Net deferred tax liabilities | $ (295.9) | $ (218.4) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Beginning and Ending Liability For Uncertain Tax Positions (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at January 1 | $ 0.4 | $ 0.6 |
Additions for tax positions related to prior years | 0.3 | 0.1 |
Settlements with taxing authorities | 0 | (0.3) |
Expiration of statutes of limitation | (0.2) | 0 |
Balance at December 31 | $ 0.5 | $ 0.4 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits that would impact effective tax rate | $ 0.4 | $ 0.3 | |
Excess tax benefits | $ 4.9 | $ 2.2 | $ 0.1 |
Incentive Plans - Narrative (De
Incentive Plans - Narrative (Details) | 1 Months Ended | 12 Months Ended | 88 Months Ended | |||
Feb. 28, 2021$ / sharespeer_company | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020shares | Aug. 30, 2013shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted (in shares) | 85,500 | |||||
Unrecognized compensation cost related to stock option awards | $ | $ 21,100,000 | |||||
Unrecognized compensation cost related to stock option awards, weighted average period for recognition (in years) | 1 year 9 months 18 days | |||||
Total income tax benefits realized from tax deductions related to stock option exercises under share-based payment arrangements | $ | $ 300,000 | $ 700,000 | $ 100,000 | |||
2013 Long-Term Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum number of shares authorized for incentive plan (in shares) | 5,500,000 | |||||
Maximum number of shares per employee (in shares) | 1,000,000 | |||||
Maximum amount payable | $ | $ 5,000,000 | |||||
Shares granted (in shares) | 2,674,337 | |||||
Shares available for grant (in shares) | 2,825,663 | |||||
2013 Stock Plan For Non-Employee Directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum number of shares authorized for incentive plan (in shares) | 500,000 | |||||
Shares available for grant (in shares) | 357,322 | |||||
Restricted stock units issued (in shares) | 142,678 | |||||
2013 Stock Plan For Non-Employee Directors | Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock units issued (in shares) | 9,249 | |||||
Award vesting period (in years) | 3 years | |||||
Restricted stock units issued, weighted average grant date fair value (in dollars per share) | $ / shares | $ 124.97 | |||||
MUSA 2013 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock units issued (in shares) | 56,422 | |||||
Option term (in years) | 7 years | |||||
Restricted stock units issued, weighted average grant date fair value (in dollars per share) | $ / shares | $ 130.62 | |||||
MUSA 2013 Plan | Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period (in years) | 3 years | |||||
MUSA 2013 Plan | Return On Average Capital Employed Performance Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period (in years) | 3 years | |||||
Restricted stock units issued, weighted average grant date fair value (in dollars per share) | $ / shares | $ 126 | |||||
MUSA 2013 Plan | Total Shareholder Return Performance Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period (in years) | 3 years | |||||
Number of companies in total shareholder return peer comparison group | peer_company | 18 | |||||
Restricted stock units issued, weighted average grant date fair value (in dollars per share) | $ / shares | $ 168.42 |
Incentive Plans - Schedule of S
Incentive Plans - Schedule of Share-Based Plan Amounts Recognized (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Compensation charged against income before income tax benefit | $ 14.4 | $ 14.3 | $ 10.5 |
Related income tax benefit recognized in income | $ 3 | $ 3 | $ 2.2 |
Incentive Plans - Summary of Va
Incentive Plans - Summary of Valuation Assumptions (Details) - MUSA 2013 Plan - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value per option grant (in dollars per share) | $ 32 | $ 28.28 | $ 20.48 |
Dividend yield | 0.80% | 0.00% | 0.00% |
Expected volatility | 32.30% | 28.10% | 26.80% |
Risk-free interest rate | 0.40% | 1.50% | 2.50% |
Expected life (years) | 4 years 7 months 6 days | 4 years 8 months 12 days | 4 years 6 months |
Stock price at valuation date (usd per share) | $ 126 | $ 106.72 | $ 76.15 |
Incentive Plans - Summary of Ch
Incentive Plans - Summary of Changes in Stock Options Outstanding (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
Number of Shares (in shares) | |
Beginning balance (in shares) | shares | 322,700 |
Granted (in shares) | shares | 85,500 |
Exercised (in shares) | shares | (28,250) |
Forfeited (in shares) | shares | (13,850) |
Ending balance (in shares) | shares | 366,100 |
Exercisable (in shares) | shares | 167,950 |
Average Exercise Price (in dollars per share) | |
Beginning balance (in dollars per share) | $ / shares | $ 79.60 |
Granted (in dollars per share) | $ / shares | 126.71 |
Exercised (in dollars per share) | $ / shares | 68.88 |
Forfeited (in dollars per share) | $ / shares | 105.84 |
Ending balance (in dollars per share) | $ / shares | 90.44 |
Shares exercisable, average exercise price (in dollars per share) | $ / shares | $ 70.13 |
Options outstanding, average remaining life (in years) | 4 years 2 months 12 days |
Options exercisable, average remaining life (in years) | 3 years |
Outstanding, aggregate intrinsic value | $ | $ 39.8 |
Options exercisable, aggregate intrinsic value | $ | $ 21.7 |
Incentive Plans - Summary of Ad
Incentive Plans - Summary of Additional Stock Option Information (Details) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding (in shares) | 366,100 |
Options outstanding, average remaining life (in years) | 4 years 2 months 12 days |
Options exercisable (in shares) | 167,950 |
Options exercisable, average remaining life (in years) | 3 years |
$60.00 to $69.99 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Lower range limit of exercise price (in dollars per share) | $ / shares | $ 60 |
Upper range limit of exercise price (in dollars per share) | $ / shares | $ 69.99 |
Options outstanding (in shares) | 66,500 |
Options outstanding, average remaining life (in years) | 2 years 1 month 6 days |
Options exercisable (in shares) | 66,500 |
Options exercisable, average remaining life (in years) | 2 years 1 month 6 days |
$70.00 to $79.99 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Lower range limit of exercise price (in dollars per share) | $ / shares | $ 70 |
Upper range limit of exercise price (in dollars per share) | $ / shares | $ 79.99 |
Options outstanding (in shares) | 145,200 |
Options outstanding, average remaining life (in years) | 3 years 8 months 12 days |
Options exercisable (in shares) | 101,450 |
Options exercisable, average remaining life (in years) | 3 years 6 months |
$80.00 to $89.99 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Lower range limit of exercise price (in dollars per share) | $ / shares | $ 80 |
Upper range limit of exercise price (in dollars per share) | $ / shares | $ 89.99 |
Options outstanding (in shares) | 3,600 |
Options outstanding, average remaining life (in years) | 5 years 2 months 12 days |
Options exercisable (in shares) | 0 |
$100.00 to $109.99 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Lower range limit of exercise price (in dollars per share) | $ / shares | $ 100 |
Upper range limit of exercise price (in dollars per share) | $ / shares | $ 109.99 |
Options outstanding (in shares) | 70,300 |
Options outstanding, average remaining life (in years) | 5 years 1 month 6 days |
Options exercisable (in shares) | 0 |
$120.00 to $129.99 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Lower range limit of exercise price (in dollars per share) | $ / shares | $ 120 |
Upper range limit of exercise price (in dollars per share) | $ / shares | $ 129.99 |
Options outstanding (in shares) | 76,300 |
Options outstanding, average remaining life (in years) | 6 years 1 month 6 days |
Options exercisable (in shares) | 0 |
$130.00 to $139.99 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Lower range limit of exercise price (in dollars per share) | $ / shares | $ 130 |
Upper range limit of exercise price (in dollars per share) | $ / shares | $ 139.99 |
Options outstanding (in shares) | 3,300 |
Options outstanding, average remaining life (in years) | 6 years 2 months 12 days |
Options exercisable (in shares) | 0 |
$140.00 to $149.99 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Lower range limit of exercise price (in dollars per share) | $ / shares | $ 140 |
Upper range limit of exercise price (in dollars per share) | $ / shares | $ 149.99 |
Options outstanding (in shares) | 900 |
Options outstanding, average remaining life (in years) | 6 years 8 months 12 days |
Options exercisable (in shares) | 0 |
Incentive Plans - Summary of Re
Incentive Plans - Summary of Restricted Stock Unit Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | 88 Months Ended |
Dec. 31, 2021 | Dec. 31, 2020 | |
MUSA 2013 Plan | ||
Number of units | ||
Beginning balance (in shares) | 182,795 | |
Granted (in shares) | 56,422 | |
Vested and issued (in shares) | (49,190) | |
Forfeited (in shares) | (14,400) | |
Ending balance (in shares) | 175,627 | 182,795 |
Weighted Average Grant Date Fair Value (in dollars per share) | ||
Beginning balance (in dollars per share) | $ 77.38 | |
Granted (in dollars per share) | 130.62 | |
Vested and issued (in dollars per share) | 72.16 | |
Forfeited (in dollars per share) | 77.54 | |
Ending balance (in dollars per share) | $ 95.93 | $ 77.38 |
Total fair value vested | $ 7 | |
Total fair value,outstanding | $ 35 | |
MUSA 2013 Plan | Performance Units | ||
Number of units | ||
Beginning balance (in shares) | 129,340 | |
Granted (in shares) | 65,751 | |
Vested and issued (in shares) | (58,302) | |
Forfeited (in shares) | (9,151) | |
Ending balance (in shares) | 127,638 | 129,340 |
Weighted Average Grant Date Fair Value (in dollars per share) | ||
Beginning balance (in dollars per share) | $ 97.01 | |
Granted (in dollars per share) | 145.16 | |
Vested and issued (in dollars per share) | 76.78 | |
Forfeited (in dollars per share) | 114.99 | |
Ending balance (in dollars per share) | $ 117.59 | $ 97.01 |
Total fair value vested | $ 7.3 | |
Total fair value,outstanding | $ 25.4 | |
2013 Stock Plan For Non-Employee Directors | ||
Number of units | ||
Granted (in shares) | 142,678 | |
2013 Stock Plan For Non-Employee Directors | Restricted Stock Units | ||
Number of units | ||
Beginning balance (in shares) | 31,004 | |
Granted (in shares) | 9,249 | |
Vested and issued (in shares) | (9,589) | |
Ending balance (in shares) | 30,664 | 31,004 |
Weighted Average Grant Date Fair Value (in dollars per share) | ||
Beginning balance (in dollars per share) | $ 83.31 | |
Granted (in dollars per share) | 124.97 | |
Vested and issued (in dollars per share) | 69.37 | |
Ending balance (in dollars per share) | $ 100.23 | $ 83.31 |
Total fair value vested | $ 1.2 | |
Total fair value,outstanding | $ 6.1 |
Employee and Retiree Benefit _2
Employee and Retiree Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental Executive Retirement Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Liability for retirement plan | $ 4.7 | $ 3.7 | |
Profit Sharing Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Profit sharing contributions | $ 1.1 | 1.8 | $ 1.5 |
Thrift Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Company matching contribution (percent) | 100.00% | ||
Employee's maximum contribution matched by Company (percent) | 3.00% | ||
Profit sharing percentage | 5.00% | ||
Profit sharing percentage | 7.00% | ||
Profit sharing percentage | 9.00% | ||
Profit sharing contributions | $ 15 | $ 15.3 | $ 12.9 |
Thrift Plan | Maximum | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employee's maximum contribution matched by Company (percent) | 6.00% | ||
Thrift Plan | QuickChek | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Company matching contribution (percent) | 50.00% | ||
Employee's maximum contribution matched by Company (percent) | 2.00% | ||
Profit sharing contributions | $ 1.9 |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 27, 2019 | |
Derivatives, Fair Value [Line Items] | ||||
Cash deposits related to commodity derivative contracts | $ 0.6 | |||
Realized (gain) loss reclassified to interest expense | (0.1) | $ (0.9) | $ 0.2 | |
Amortization of unrealized gain to interest expense | (0.9) | 0 | 0 | |
Unrealized gain (loss) | 0.1 | $ (3.4) | $ 1 | |
Interest Rate Swap | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional amount | 97.5 | $ 150 | ||
Realized (gain) loss reclassified to interest expense | (2.4) | |||
Amortization of unrealized gain to interest expense | 0.9 | |||
Unrealized gain (loss) | $ (1.5) |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Oct. 28, 2020 | Jul. 24, 2019 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchase program, shares acquired (in shares) | 2,398,477 | 3,338,028 | 1,898,023 | ||
Common stock acquired | $ 355,000,000 | $ 399,600,000 | $ 165,800,000 | ||
Stock repurchase program, average price per share (in dollars per share) | $ 148 | $ 119.70 | $ 87.35 | ||
October 2020 Share Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchase program, authorized amount | $ 1,000,000,000 | $ 500,000,000 | |||
Stock repurchase program, shares acquired (in shares) | 969,654 | ||||
Common stock acquired | $ 125,000,000 | ||||
Stock repurchase program, average price per share (in dollars per share) | $ 128.91 | ||||
Stock repurchase program, remaining amount | $ 20,000,000 | $ 375,000,000 | |||
July 2019 Share Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchase program, authorized amount | $ 400,000,000 | ||||
Stock repurchase program, shares acquired (in shares) | 2,368,374 | 1,393,626 | |||
Common stock acquired | $ 274,600,000 | $ 125,000,000 | |||
Stock repurchase program, average price per share (in dollars per share) | $ 115.93 | $ 89.70 | |||
Other Share Repurchase Programs | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock repurchase program, shares acquired (in shares) | 504,397 | ||||
Common stock acquired | $ 40,800,000 | ||||
Stock repurchase program, average price per share (in dollars per share) | $ 80.85 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Basic and Diluted Earnings Per Share Computations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings per common share: | |||
Net income | $ 396.9 | $ 386.1 | $ 154.8 |
Weighted average common shares outstanding (in thousands) (in shares) | 26,210 | 29,132 | 31,594 |
Earnings per common share (in dollars per share) | $ 15.14 | $ 13.25 | $ 4.90 |
Earnings per common share - assuming dilution: | |||
Net income | $ 396.9 | $ 386.1 | $ 154.8 |
Weighted average common shares outstanding (in thousands) (in shares) | 26,210 | 29,132 | 31,594 |
Common equivalent shares: | |||
Share-based awards (in shares) | 394 | 394 | 264 |
Weighted average common shares outstanding - assuming dilution (in thousands) (in shares) | 26,604 | 29,526 | 31,858 |
Earnings per common share assuming dilution (in dollars per share) | $ 14.92 | $ 13.08 | $ 4.86 |
Earnings Per Share - Potentiall
Earnings Per Share - Potentially Dilutive Shares Excluded from Earnings Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 82,062 | 95,737 | 95,443 |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 80,500 | 75,600 | 94,600 |
Restricted share units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 1,562 | 20,137 | 843 |
Other Financial Information - N
Other Financial Information - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Income taxes paid (collected), net | $ 120.4 | $ 96.5 | $ 26.9 |
Interest paid, net of amounts capitalized | $ 70.8 | $ 49.1 | $ 56.6 |
Other Financial Information - S
Other Financial Information - Summary Of Changes In Operating Working Capital (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Accounts receivable | $ (18.9) | $ 4.9 | $ (33.4) |
Inventories | 11.1 | (51.7) | (6.1) |
Prepaid expenses and other current assets | (3.6) | 16.6 | (3.3) |
Accounts payable and accrued liabilities | 102.9 | 8.3 | (5.9) |
Income taxes payable | (8.7) | 8.8 | 0 |
Net decrease (increase) in noncash operating working capital | $ 82.8 | $ (13.1) | $ (48.7) |
Assets and Liabilities Measur_3
Assets and Liabilities Measure at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Current and long-term debt, excluding finance leases | $ (1,673.5) | $ (1,000.3) |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Current and long-term debt, excluding finance leases | $ (1,709.5) | $ (1,029.9) |
Commitments (Details)
Commitments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating leases | |||
2022 | $ 44.4 | ||
2023 | 44 | ||
2024 | 43.6 | ||
2025 | 42.6 | ||
2026 | 41.9 | ||
Rental expense for noncancelable operating leases | $ 48.7 | $ 24.9 | $ 21.6 |
Commitments - Other Commitments
Commitments - Other Commitments (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Take-Or-Pay Contracts | |
Other Commitments [Line Items] | |
Term of take-or-pay contract | 8 years 9 months 18 days |
Minimum annual payments under take-or-pay contracts, fiscal year maturity | |
2022 | $ 4.3 |
2023 | 4 |
2024 | 4 |
2025 | 4 |
2026 | 4 |
Capital Addition Purchase Commitments | |
Other Commitments [Line Items] | |
Commitments for capital expenditures | 275.6 |
Construction in Progress | |
Other Commitments [Line Items] | |
Commitments for capital expenditures | 252.5 |
Building Improvements | |
Other Commitments [Line Items] | |
Commitments for capital expenditures | $ 8.2 |
Contingencies (Details)
Contingencies (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($)superfund_site | |
Commitments and Contingencies Disclosure [Abstract] | |
Number of Superfund sites for which company may be liable | superfund_site | 1 |
Workers' compensation deductible (per occurrence) | $ 1 |
General liability insurance deductible | 3 |
Auto liability insurance deductible | 0.3 |
Workers' compensation accrued liability | 39.4 |
Outstanding letters of credit | $ 10.1 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 12 Months Ended |
Dec. 31, 2021contractsuperfund_sitenumber_of_renewal_option | |
Lessee, Lease, Description [Line Items] | |
Number of renewal options | number_of_renewal_option | 1 |
Number of leases with restrictive covenants | superfund_site | 102 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 1 year |
Lease renewal term | 5 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 38 years |
Lease renewal term | 20 years |
Land | |
Lessee, Lease, Description [Line Items] | |
Number of leases | 407 |
Terminal | |
Lessee, Lease, Description [Line Items] | |
Number of leases | 1 |
Leases - Leases Reflected on Ba
Leases - Leases Reflected on Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Assets | |||
Operating (Right-of-use) | [1] | $ 419.2 | $ 147.7 |
Finance | 137.3 | 2.6 | |
Total leased assets | 556.5 | 150.3 | |
Accumulated depreciation | 16.7 | 2.8 | |
Current | |||
Operating | 18.1 | 7.8 | |
Finance | 11 | 1.2 | |
Noncurrent | |||
Operating | [1] | 408.9 | 142.5 |
Finance | 130.6 | 0.9 | |
Total lease liabilities | $ 568.6 | $ 152.4 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, plant and equipment, at cost less accumulated depreciation and amortization of $1,373.4 in 2021 and $1,191.4 in 2020 | Property, plant and equipment, at cost less accumulated depreciation and amortization of $1,373.4 in 2021 and $1,191.4 in 2020 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Trade accounts payable and accrued liabilities | Trade accounts payable and accrued liabilities | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current maturities of long-term debt | Current maturities of long-term debt | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term debt, including capitalized lease obligations | Long-term debt, including capitalized lease obligations | |
[1] | Prior year amounts have been reclassified to conform with current period presentation |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating lease cost | $ 43.1 | $ 16.6 | $ 14.5 |
Finance lease cost | |||
Amortization of leased assets | 14.8 | 1.3 | 1.2 |
Interest on lease liabilities | 8.2 | 0.1 | 0.1 |
Net lease costs | $ 66.1 | $ 18 | $ 15.8 |
Leases - Cash Flow Information
Leases - Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of liabilities | |||
Operating cash flows required by operating leases | $ 38.8 | $ 15.5 | $ 13.8 |
Operating cash flows required by finance leases | 8.2 | 0.1 | 0.1 |
Financing cash flows required by finance leases | $ 9.8 | $ 1.4 | $ 1.4 |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liability (Details) $ in Millions | Dec. 31, 2021USD ($) |
Operating leases | |
2022 | $ 44.4 |
2023 | 44 |
2024 | 43.6 |
2025 | 42.6 |
2026 | 41.9 |
After 2026 | 498.1 |
Total lease payments | 714.6 |
less: interest | 287.6 |
Present value of lease liabilities | 427 |
Finance leases | |
2022 | 19.9 |
2023 | 18.4 |
2024 | 16.9 |
2025 | 15.9 |
2026 | 15.3 |
After 2026 | 137.2 |
Total lease payments | 223.6 |
less: interest | 82 |
Present value of lease liabilities | $ 141.6 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Dec. 31, 2021 |
Weighted average remaining lease term | |
Finance leases | 13 years 8 months 12 days |
Operating leases | 16 years 2 months 12 days |
Weighted average discount rate | |
Finance leases | 6.70% |
Operating leases | 6.30% |
Business Segments - Summary of
Business Segments - Summary of Information by Business Segment (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting [Abstract] | |||
Number of operating segments | segment | 1 | ||
Segment Reporting Information [Line Items] | |||
Segment income (loss) | $ 396.9 | $ 386.1 | $ 154.8 |
Revenues from external customers | 17,360.5 | 11,264.3 | 14,034.6 |
Interest income | 0.1 | 1 | 3.2 |
Interest expense | (82.4) | (51.2) | (54.9) |
Loss on early debt extinguishment | 0 | 0 | (14.8) |
Income tax expense (benefit) | 125 | 123 | 47.6 |
Significant noncash charges (credits) | |||
Depreciation and amortization | 212.6 | 161 | 152.2 |
Accretion of asset retirement obligations | 2.5 | 2.3 | 2.1 |
Debt extinguishment costs | 4.4 | ||
Deferred and noncurrent income taxes (benefits) | 19 | 2.5 | 23.7 |
Additions to property, plant and equipment | 277.5 | 227.1 | 214.6 |
Total assets at year-end | 4,048.2 | 2,685.7 | 2,687.2 |
Operating Segment | |||
Segment Reporting Information [Line Items] | |||
Income tax expense (benefit) | 66.3 | ||
Significant noncash charges (credits) | |||
Debt extinguishment costs | 0 | ||
Operating Segment | Marketing | |||
Segment Reporting Information [Line Items] | |||
Segment income (loss) | 472.8 | 442.2 | 215 |
Revenues from external customers | 17,359.9 | 11,264 | 14,034.3 |
Interest income | 0 | 0 | 0 |
Interest expense | (8.1) | (0.1) | (0.1) |
Loss on early debt extinguishment | 0 | ||
Income tax expense (benefit) | 148.5 | 132.9 | |
Significant noncash charges (credits) | |||
Depreciation and amortization | 197.3 | 146.3 | 138.9 |
Accretion of asset retirement obligations | 2.5 | 2.3 | 2.1 |
Deferred and noncurrent income taxes (benefits) | 22.6 | 2.8 | 32.9 |
Additions to property, plant and equipment | 245.5 | 200.8 | 155.5 |
Total assets at year-end | 3,569.4 | 2,418.2 | 2,304.7 |
Corporate and Other Assets | |||
Segment Reporting Information [Line Items] | |||
Segment income (loss) | (75.9) | (56.1) | (60.2) |
Revenues from external customers | 0.6 | 0.3 | 0.3 |
Interest income | 0.1 | 1 | 3.2 |
Interest expense | (74.3) | (51.1) | (54.8) |
Loss on early debt extinguishment | (14.8) | ||
Income tax expense (benefit) | (23.5) | (9.9) | (18.7) |
Significant noncash charges (credits) | |||
Depreciation and amortization | 15.3 | 14.7 | 13.3 |
Accretion of asset retirement obligations | 0 | 0 | 0 |
Debt extinguishment costs | 4.4 | ||
Deferred and noncurrent income taxes (benefits) | (3.6) | (0.3) | (9.2) |
Additions to property, plant and equipment | 32 | 26.3 | 59.1 |
Total assets at year-end | $ 478.8 | $ 267.5 | $ 382.5 |
Schedule II - Valuation And Q_2
Schedule II - Valuation And Qualifying Accounts (Details) - Allowance for doubtful accounts - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at January 1, | $ 0.1 | $ 1.2 | $ 1.1 |
Charged to Expense | 0 | 0 | 0.1 |
Deductions | 0 | (1.1) | 0 |
Balance at December 31, | $ 0.1 | $ 0.1 | $ 1.2 |