Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 19, 2016 | Jun. 30, 2015 | |
Entity Information [Line Items] | |||
Entity Registrant Name | HollyFrontier Corp | ||
Entity Central Index Key | 48,039 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 176,518,605 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 7.4 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents (HEP: $15,013 and $2,830, respectively) | $ 66,533 | $ 567,985 |
Marketable securities | 144,019 | 474,110 |
Total cash, cash equivalents and short-term marketable securities | 210,552 | 1,042,095 |
Accounts receivable: Product and transportation (HEP: $41,075 and $40,129, respectively) | 323,858 | 507,040 |
Crude oil resales | 28,120 | 82,865 |
Accounts receivable, total | 351,978 | 589,905 |
Crude oil and refined products | 712,865 | 920,104 |
Materials, supplies and other (HEP: $1,972 and $1,940, respectively) | 129,004 | 115,027 |
Total inventory | 841,869 | 1,035,131 |
Income taxes receivable | 0 | 11,719 |
Prepayments and other (HEP: $3,082 and $2,443, respectively) | 43,666 | 104,148 |
Total current assets | 1,448,065 | 2,782,998 |
Properties, plants and equipment, at cost (HEP: $1,388,655 and $1,307,280, respectively) | 5,490,189 | 4,852,441 |
Less accumulated depreciation (HEP: ($298,282) and $(244,850), respectively) | (1,374,527) | (1,181,902) |
Property, plant and equipment, net | 4,115,662 | 3,670,539 |
Other assets: Turnaround costs | 231,873 | 257,153 |
Goodwill (HEP: $288,991 and $288,991, respectively) | 2,331,781 | 2,331,781 |
Intangibles and other (HEP: $128,583 and $73,335, respectively) | 260,918 | 187,576 |
Other assets, total | 2,824,572 | 2,776,510 |
Total assets | 8,388,299 | 9,230,047 |
Current liabilities: | ||
Accounts payable (HEP: $22,583 and $21,623, respectively) | 716,490 | 1,108,138 |
Income taxes payable | 8,142 | 19,642 |
Accrued liabilities (HEP: $26,341 and $26,321, respectively) | 135,983 | 106,214 |
Total current liabilities | 860,615 | 1,233,994 |
Long-term debt (HEP: $1,008,752 and $866,986, respectively) | 1,040,040 | 1,054,297 |
Deferred income taxes (HEP: $431 and $367, respectively) | 497,906 | 664,279 |
Other long-term liabilities (HEP: $59,306 and $47,170, respectively) | 179,965 | 176,758 |
HollyFrontier stockholders’ equity: | ||
Preferred stock, $1.00 par value – 5,000,000 shares authorized; none issued | 0 | 0 |
Common stock $.01 par value – 320,000,000 shares authorized; 255,962,866 shares issued as of December 31, 2015 and December 31, 2014 | 2,560 | 2,560 |
Additional capital | 4,011,052 | 4,003,628 |
Retained earnings | 3,271,189 | 2,778,577 |
Accumulated other comprehensive income (loss) | (4,155) | 27,894 |
Common stock held in treasury, at cost – 75,728,478 and 59,876,776 shares as of December 31, 2015 and December 31, 2014, respectively | (2,027,231) | (1,289,075) |
Total HollyFrontier stockholders’ equity | 5,253,415 | 5,523,584 |
Noncontrolling interest | 556,358 | 577,135 |
Total equity | 5,809,773 | 6,100,719 |
Total liabilities and equity | 8,388,299 | 9,230,047 |
HEP | ||
Current assets: | ||
Cash and cash equivalents (HEP: $15,013 and $2,830, respectively) | 15,013 | 2,830 |
Accounts receivable: Product and transportation (HEP: $41,075 and $40,129, respectively) | 41,075 | 40,129 |
Materials, supplies and other (HEP: $1,972 and $1,940, respectively) | 1,972 | 1,940 |
Prepayments and other (HEP: $3,082 and $2,443, respectively) | 3,082 | 2,443 |
Properties, plants and equipment, at cost (HEP: $1,388,655 and $1,307,280, respectively) | 1,388,655 | 1,307,280 |
Less accumulated depreciation (HEP: ($298,282) and $(244,850), respectively) | (298,282) | (244,850) |
Goodwill (HEP: $288,991 and $288,991, respectively) | 288,991 | 288,991 |
Intangibles and other (HEP: $128,583 and $73,335, respectively) | 128,583 | 73,335 |
Current liabilities: | ||
Accounts payable (HEP: $22,583 and $21,623, respectively) | 22,583 | 21,623 |
Accrued liabilities (HEP: $26,341 and $26,321, respectively) | 26,341 | 26,321 |
Long-term debt (HEP: $1,008,752 and $866,986, respectively) | 1,008,752 | 866,986 |
Deferred income taxes (HEP: $431 and $367, respectively) | 431 | 367 |
Other long-term liabilities (HEP: $59,306 and $47,170, respectively) | $ 59,306 | $ 47,170 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and cash equivalents (HEP: $15,013 and $2,830, respectively) | $ 66,533 | $ 567,985 |
Accounts receivable: Product and transportation | 323,858 | 507,040 |
Materials, supplies and other (HEP: $1,972 and $1,940, respectively) | 129,004 | 115,027 |
Prepayments and other (HEP: $3,082 and $2,443, respectively) | 43,666 | 104,148 |
Properties, plants and equipment, at cost (HEP: $1,388,655 and $1,307,280, respectively) | 5,490,189 | 4,852,441 |
Accumulated depreciation | (1,374,527) | (1,181,902) |
Goodwill | 2,331,781 | 2,331,781 |
Intangibles and other | 260,918 | 187,576 |
Accounts payable (HEP: $22,583 and $21,623, respectively) | 716,490 | 1,108,138 |
Accrued liabilities (HEP: $26,341 and $26,321, respectively) | 135,983 | 106,214 |
Long-term debt (HEP: $1,008,752 and $866,986, respectively) | 1,040,040 | 1,054,297 |
Deferred income tax liabilities | 497,906 | 664,279 |
Other long-term liabilities (HEP: $59,306 and $47,170, respectively) | $ 179,965 | $ 176,758 |
HollyFrontier Stockholders' Equity: | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 320,000,000 | 320,000,000 |
Common stock, shares issued | 255,962,866 | 255,962,866 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Treasury stock, shares | 75,728,478 | 59,876,776 |
HEP | ||
Cash and cash equivalents (HEP: $15,013 and $2,830, respectively) | $ 15,013 | $ 2,830 |
Accounts receivable: Product and transportation | 41,075 | 40,129 |
Materials, supplies and other (HEP: $1,972 and $1,940, respectively) | 1,972 | 1,940 |
Prepayments and other (HEP: $3,082 and $2,443, respectively) | 3,082 | 2,443 |
Properties, plants and equipment, at cost (HEP: $1,388,655 and $1,307,280, respectively) | 1,388,655 | 1,307,280 |
Accumulated depreciation | (298,282) | (244,850) |
Goodwill | 288,991 | 288,991 |
Intangibles and other | 128,583 | 73,335 |
Accounts payable (HEP: $22,583 and $21,623, respectively) | 22,583 | 21,623 |
Accrued liabilities (HEP: $26,341 and $26,321, respectively) | 26,341 | 26,321 |
Long-term debt (HEP: $1,008,752 and $866,986, respectively) | 1,008,752 | 866,986 |
Deferred income tax liabilities | 431 | 367 |
Other long-term liabilities (HEP: $59,306 and $47,170, respectively) | $ 59,306 | $ 47,170 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Sales and other revenues | $ 13,237,920 | $ 19,764,327 | $ 20,160,560 |
Operating costs and expenses: | |||
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) | 10,239,218 | 17,228,385 | 17,392,227 |
Lower of cost or market inventory valuation adjustment | 226,979 | 397,478 | 0 |
Cost of products sold (exclusive of depreciation and amortization) | 10,466,197 | 17,625,863 | 17,392,227 |
Operating expenses (exclusive of depreciation and amortization) | 1,060,373 | 1,144,940 | 1,090,850 |
General and administrative expenses (exclusive of depreciation and amortization) | 120,846 | 114,609 | 127,963 |
Depreciation and amortization | 346,151 | 363,381 | 303,446 |
Total operating costs and expenses | 11,993,567 | 19,248,793 | 18,914,486 |
Income from operations | 1,244,353 | 515,534 | 1,246,074 |
Other income (expense): | |||
Loss of equity method investments | (3,738) | (2,007) | (2,072) |
Interest income | 3,391 | 4,430 | 5,556 |
Interest expense | (43,470) | (43,646) | (68,050) |
Loss on early extinguishment of debt | (1,370) | (7,677) | (22,109) |
Gain on sale of assets | 9,402 | 866 | 0 |
Other income (expense) total | (35,785) | (48,034) | (86,675) |
Income before income taxes | 1,208,568 | 467,500 | 1,159,399 |
Income tax provision: | |||
Current | 552,196 | 334,834 | 277,172 |
Deferred | (146,136) | (193,662) | 114,404 |
Income tax provision total | 406,060 | 141,172 | 391,576 |
Net income | 802,508 | 326,328 | 767,823 |
Less net income attributable to noncontrolling interest | 62,407 | 45,036 | 31,981 |
Net income attributable to HollyFrontier stockholders | $ 740,101 | $ 281,292 | $ 735,842 |
Earnings per share attributable to HollyFrontier stockholders: | |||
Basic (in dollars per share) | $ 3.91 | $ 1.42 | $ 3.66 |
Diluted (in dollars per share) | $ 3.90 | $ 1.42 | $ 3.64 |
Average number of common shares outstanding: | |||
Basic (in shares) | 188,731 | 197,243 | 200,419 |
Diluted (in shares) | 188,940 | 197,428 | 201,234 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income | $ 802,508 | $ 326,328 | $ 767,823 |
Other comprehensive income (loss): | |||
Unrealized gain (loss) on marketable securities | 29 | (153) | 73 |
Reclassification adjustment to net income on sale or maturity of marketable securities | 9 | (4) | (39) |
Net unrealized gain (loss) on marketable securities | 38 | (157) | 34 |
Change in fair value of cash flow hedging instruments | (5,847) | 105,414 | (7,614) |
Reclassification adjustments to net income on settlement of cash flow hedging instruments | (47,492) | (50,682) | (14,318) |
Amortization of unrealized loss attributable to discontinued cash flow hedges | 1,080 | 1,080 | 1,749 |
Net unrealized gain (loss) on hedging instruments | (52,259) | 55,812 | (20,183) |
Pension plan loss reclassified to net income | 0 | 0 | 37,589 |
Gain (loss) on post-retirement healthcare plan | 3,278 | (7,434) | 3,301 |
Post-retirement Healthcare Plan Gain Reclassified to Net Income | (3,299) | (4,296) | (4,040) |
Gain (loss) on retirement restoration plan | 80 | (615) | 632 |
Retirement restoration loss reclassified to net income | 20 | 920 | 111 |
Net change in pension and other post-retirement benefit obligations | 79 | (11,425) | 37,593 |
Other comprehensive income (loss) before income taxes | (52,142) | 44,230 | 17,444 |
Income tax expense (benefit) | (20,237) | 17,098 | 5,882 |
Other comprehensive income (loss) | (31,905) | 27,132 | 11,562 |
Total comprehensive income | 770,603 | 353,460 | 779,385 |
Less noncontrolling interest in comprehensive income | 62,551 | 45,096 | 34,296 |
Comprehensive income attributable to HollyFrontier stockholders | $ 708,052 | $ 308,364 | $ 745,089 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 802,508 | $ 326,328 | $ 767,823 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Lower of cost or market inventory valuation adjustment | 226,979 | 397,478 | 0 |
Depreciation and amortization | 346,151 | 363,381 | 303,446 |
Net loss of equity method investments, inclusive of distributions | 8,613 | 5,257 | 5,198 |
(Gain) Loss on Early Extinguishment of Debt Due to Unamortized Premium/Discount | (3,788) | 1,489 | 7,948 |
Gain on sale of assets | (8,677) | (866) | 0 |
Deferred income taxes | (146,136) | (193,662) | 114,404 |
Equity-based compensation expense | 30,367 | 29,598 | 35,775 |
Change in fair value – derivative instruments | 38,525 | (22,668) | (53,185) |
Loss on settlement of retirement benefit obligations, net of contributions | 0 | 0 | 16,771 |
(Increase) decrease in current assets: | |||
Accounts receivable | 238,392 | 108,876 | (68,832) |
Inventories | (33,717) | (78,842) | (15,929) |
Income taxes receivable | 11,719 | 94,237 | (34,419) |
Prepayments and other | 13,291 | 1,486 | 1,377 |
Increase (decrease) in current liabilities: | |||
Accounts payable | (406,339) | (217,541) | 2,068 |
Income taxes payable | (11,500) | 19,642 | 0 |
Accrued liabilities | (6,924) | 8,047 | (41,229) |
Turnaround expenditures | (89,365) | (96,803) | (193,920) |
Other, net | (30,473) | 13,159 | 21,878 |
Net cash provided by operating activities | 979,626 | 758,596 | 869,174 |
Cash flows from investing activities: | |||
Additions to properties, plants and equipment | (581,639) | (455,128) | (368,514) |
Payments to Acquire Interest in Joint Venture | (55,032) | ||
Proceeds from sale of assets | 19,264 | 16,633 | 7,802 |
Acquisition of trucking operations | 0 | 0 | (11,301) |
Purchases of marketable securities | (509,338) | (1,025,602) | (935,512) |
Sales and maturities of marketable securities | 839,513 | 1,276,447 | 846,143 |
Other, net | 0 | 5,021 | (8,740) |
Net cash used for investing activities | (381,748) | (292,322) | (526,735) |
Cash flows from financing activities: | |||
Redemption of senior notes | (155,156) | 0 | (300,973) |
Redemption of senior notes - HEP | 155,156 | 156,188 | |
Proceeds from sale of HEP common units | 0 | 0 | 73,444 |
Proceeds from common unit offerings – HEP | 73,444 | ||
Purchase of treasury stock | (742,823) | (158,847) | (225,023) |
Dividends | (246,908) | (647,197) | (645,920) |
Distributions to noncontrolling interest | (83,268) | (78,202) | (71,201) |
Excess tax benefit from equity-based compensation | 0 | 2,040 | 2,562 |
Other, net | (12,175) | (7,998) | (8,368) |
Net cash used for financing activities | (1,099,330) | (838,392) | (1,160,035) |
Cash and cash equivalents: | |||
Increase (decrease) for the period | (501,452) | (372,118) | (817,596) |
Beginning of period | 567,985 | 940,103 | 1,757,699 |
End of period | 66,533 | 567,985 | 940,103 |
Cash paid during the period for: | |||
Interest | 46,442 | 55,716 | 76,647 |
Income taxes | 586,447 | 237,907 | 372,846 |
HEP | |||
Cash flows from investing activities: | |||
Additions to properties, plants and equipment | (94,516) | (109,693) | (56,613) |
Payments to Acquire Interest in Joint Venture | (55,032) | 0 | 0 |
Cash flows from financing activities: | |||
Borrowings under credit agreement – HEP | 973,900 | 642,300 | 310,600 |
Repayments under credit agreement – HEP | (832,900) | (434,300) | (368,600) |
Redemption of senior notes - HEP | 0 | (156,188) | 0 |
Proceeds from common unit offerings – HEP | 0 | 0 | $ 73,444 |
Cash and cash equivalents: | |||
Beginning of period | 2,830 | ||
End of period | $ 15,013 | $ 2,830 |
Consolidated Statements Of Equi
Consolidated Statements Of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Non-controlling Interest |
Beginning Balance at Dec. 31, 2012 | $ 6,642,658 | $ 2,560 | $ 3,911,353 | $ 3,054,769 | $ (8,425) | $ (907,303) | $ 589,704 |
Net income | 767,823 | 735,842 | 31,981 | ||||
Dividends | (646,131) | (646,131) | |||||
Distributions to noncontrolling interest holders | (71,201) | (71,201) | |||||
Other comprehensive income (loss), net of tax | 11,562 | 9,247 | 0 | 2,315 | |||
Allocated equity on HEP common unit issuances, net of tax | 112,886 | 54,184 | 58,702 | ||||
Issuance of common stock under incentive compensation plans, net of forfeitures | (9,669) | 9,669 | |||||
Equity-based compensation, net of tax benefit | 38,337 | 34,762 | 3,575 | ||||
Purchase of treasury stock | (241,238) | (241,238) | 0 | ||||
Purchase of HEP units for restricted grants | (5,313) | (5,313) | |||||
Other | 15 | 15 | |||||
Ending Balance at Dec. 31, 2013 | 6,609,398 | 2,560 | 3,990,630 | 3,144,480 | 822 | (1,138,872) | 609,778 |
Net income | 326,328 | 281,292 | 45,036 | ||||
Dividends | (647,195) | (647,195) | |||||
Distributions to noncontrolling interest holders | (78,202) | (78,202) | |||||
Other comprehensive income (loss), net of tax | 27,132 | 27,072 | 0 | 60 | |||
Issuance of common stock under incentive compensation plans, net of forfeitures | (15,101) | 15,101 | |||||
Equity-based compensation, net of tax benefit | 31,638 | 28,099 | 3,539 | ||||
Purchase of treasury stock | (165,304) | (165,304) | 0 | ||||
Purchase of HEP units for restricted grants | (3,577) | (3,577) | |||||
Other | 501 | 501 | |||||
Ending Balance at Dec. 31, 2014 | 6,100,719 | 2,560 | 4,003,628 | 2,778,577 | 27,894 | (1,289,075) | 577,135 |
Net income | 802,508 | 740,101 | 62,407 | ||||
Dividends | (247,489) | (247,489) | |||||
Distributions to noncontrolling interest holders | (83,268) | (83,268) | |||||
Other comprehensive income (loss), net of tax | (31,905) | (32,049) | 0 | 144 | |||
Issuance of common stock under incentive compensation plans, net of forfeitures | (14,958) | 14,958 | |||||
Equity-based compensation, net of tax benefit | 25,865 | 22,382 | 3,483 | ||||
Purchase of treasury stock | (753,114) | (753,114) | 0 | ||||
Purchase of HEP units for restricted grants | (3,555) | (3,555) | |||||
Other | 12 | 12 | |||||
Ending Balance at Dec. 31, 2015 | $ 5,809,773 | $ 2,560 | $ 4,011,052 | $ 3,271,189 | $ (4,155) | $ (2,027,231) | $ 556,358 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies Description of Business: References herein to HollyFrontier Corporation (“HollyFrontier”) include HollyFrontier and its consolidated subsidiaries. In accordance with the Securities and Exchange Commission’s (“SEC”) “Plain English” guidelines, this Annual Report on Form 10-K has been written in the first person. In these financial statements, the words “we,” “our,” “ours” and “us” refer only to HollyFrontier and its consolidated subsidiaries or to HollyFrontier or an individual subsidiary and not to any other person, with certain exceptions. Generally, the words “we,” “our,” “ours” and “us” include Holly Energy Partners, L.P. (“HEP”) and its subsidiaries as consolidated subsidiaries of HollyFrontier, unless when used in disclosures of transactions or obligations between HEP and HollyFrontier or its other subsidiaries. These financial statements contain certain disclosures of agreements that are specific to HEP and its consolidated subsidiaries and do not necessarily represent obligations of HollyFrontier. When used in descriptions of agreements and transactions, “HEP” refers to HEP and its consolidated subsidiaries. We are principally an independent petroleum refiner that produces high-value light products such as gasoline, diesel fuel, jet fuel, specialty lubricant products, and specialty and modified asphalt. We own and operate petroleum refineries that serve markets throughout the Mid-Continent, Southwest and Rocky Mountain regions of the United States. As of December 31, 2015 , we: • owned and operated a petroleum refinery in El Dorado, Kansas (the “El Dorado Refinery”), two refinery facilities located in Tulsa, Oklahoma (collectively, the “Tulsa Refineries”), a refinery in Artesia, New Mexico that is operated in conjunction with crude oil distillation and vacuum distillation and other facilities situated 65 miles away in Lovington, New Mexico (collectively, the “Navajo Refinery”), a refinery located in Cheyenne, Wyoming (the “Cheyenne Refinery”) and a refinery in Woods Cross, Utah (the “Woods Cross Refinery”); • owned and operated HollyFrontier Asphalt Company (“HFC Asphalt”), formerly known as NK Asphalt Partners, which operates various asphalt terminals in Arizona, New Mexico and Oklahoma; and • owned a 39% interest in HEP, a consolidated variable interest entity (“VIE”), which includes our 2% general partner interest. Principles of Consolidation: Our consolidated financial statements include our accounts and the accounts of partnerships and joint ventures that we control through an ownership interest greater than 50% or through a controlling financial interest with respect to variable interest entities. All significant intercompany transactions and balances have been eliminated. Variable Interest Entities: HEP is a VIE as defined under U.S. generally accepted accounting principles (“GAAP”). A VIE is a legal entity whose equity owners do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support or, as a group, the equity holders lack the power, through voting rights, to direct the activities that most significantly impact the entity's financial performance, the obligation to absorb the entity's expected losses or rights to expected residual returns. As the general partner of HEP, we have the sole ability to direct the activities of HEP that most significantly impact HEP's financial performance, and therefore we consolidate HEP. Use of Estimates : The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Cash Equivalents: We consider all highly liquid instruments with a maturity of three months or less at the date of purchase to be cash equivalents. Cash equivalents are stated at cost, which approximates market value and are primarily invested in highly-rated instruments issued by government or municipal entities with strong credit standings. Marketable Securities: We consider all marketable debt securities with maturities greater than three months at the date of purchase to be marketable securities. Our marketable securities consist of certificates of deposit, commercial paper, corporate debt securities and government and municipal debt securities with the maximum maturity or put date of any individual issue generally not more than two years, while the maximum duration of the portfolio of investments is not greater than one year. These instruments are classified as available-for-sale, and as a result, are reported at fair value. Unrealized gains and losses, net of related income taxes, are reported as a component of accumulated other comprehensive income. Balance Sheet Offsetting : We purchase and sell inventories of crude oil with certain same-parties that are net settled in accordance with contractual net settlement provisions. Our policy is to present such balances on a net basis because it more appropriately presents our economic resources (accounts receivable) and claims against us (accounts payable) and the future cash flows associated with such assets and liabilities. Accounts Receivable: Our accounts receivable consist of amounts due from customers that are primarily companies in the petroleum industry. Credit is extended based on our evaluation of the customer's financial condition, and in certain circumstances collateral, such as letters of credit or guarantees, is required. We reserve for doubtful accounts based on our historical loss experience as well as specific accounts identified as high risk, which historically have been minimal. Credit losses are charged to the allowance for doubtful accounts when an account is deemed uncollectible. Our allowance for doubtful accounts was $2.3 million and $2.4 million at December 31, 2015 and 2014 , respectively. Accounts receivable attributable to crude oil resales generally represent the sell side of excess crude oil sales to other purchasers and / or users in cases when our crude oil supplies are in excess of our immediate needs as well as certain reciprocal buy / sell exchanges of crude oil. At times we enter into such buy / sell exchanges to facilitate the delivery of quantities to certain locations. In many cases, we enter into net settlement agreements relating to the buy / sell arrangements, which may mitigate credit risk. Inventories: Inventories are stated at the lower of cost, using the last-in, first-out (“LIFO”) method for crude oil, unfinished and finished refined products and the average cost method for materials and supplies, or market. Cost, consisting of raw material, transportation and conversion costs, is determined using the LIFO inventory valuation methodology and market is determined using current replacement costs. Under the LIFO method, the most recently incurred costs are charged to cost of sales and inventories are valued at the earliest acquisition costs. In periods of rapidly declining prices, LIFO inventories may have to be written down to market value due to the higher costs assigned to LIFO layers in prior periods. In addition, the use of the LIFO inventory method may result in increases or decreases to cost of sales in years that inventory volumes decline as the result of charging cost of sales with LIFO inventory costs generated in prior periods. An actual valuation of inventory under the LIFO method is made at the end of each year based on the inventory levels at that time. Accordingly, interim LIFO calculations are based on management's estimates of expected year-end inventory levels and are subject to the final year-end LIFO inventory valuation. At December 31, 2015 , and 2014 , market values had fallen below historical LIFO inventory costs and, as a result, we recorded lower of cost or market inventory valuation reserves of $624.5 million and $397.5 million , respectively. Derivative Instruments: All derivative instruments are recognized as either assets or liabilities in our consolidated balance sheets and are measured at fair value. Changes in the derivative instrument's fair value are recognized in earnings unless specific hedge accounting criteria are met. See Note 12 for additional information. Long-lived assets: We calculate depreciation and amortization based on estimated useful lives of our assets. We evaluate long-lived assets for potential impairment by identifying whether indicators of impairment exist and, if so, assessing whether the long-lived assets are recoverable from estimated future undiscounted cash flows. The actual amount of impairment loss, if any, to be recorded is equal to the amount by which a long-lived asset's carrying value exceeds its fair value, which is generally determined under an income approach using the forecasted cash flows associated with the underlying asset. Estimates of future cash flows require subjective assumptions with regard to future operating results and actual results could differ from those estimates. No impairments of long-lived assets were recorded during the years ended December 31, 2015 , 2014 and 2013 . Asset Retirement Obligations: We record legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and / or the normal operation of long-lived assets. The fair value of the estimated cost to retire a tangible long-lived asset is recorded as a liability with the associated retirement costs capitalized as part of the asset's carrying amount in the period in which it is incurred and when a reasonable estimate of the fair value of the liability can be made. If a reasonable estimate cannot be made at the time the liability is incurred, we record the liability when sufficient information is available to estimate the liability's fair value. Certain of our refining assets have no recorded liability for asset retirement obligations since the timing of any retirement and related costs are currently indeterminable. Our asset retirement obligations were $20.7 million and $19.8 million at December 31, 2015 and 2014 , respectively, which are included in “Other long-term liabilities” in our consolidated balance sheets. Accretion expense was insignificant for the years ended December 31, 2015 , 2014 and 2013 . Intangibles and Goodwill: Intangible assets are assets (other than financial assets) that lack physical substance. Goodwill represents the excess of the cost of an acquired entity over the fair value of the assets acquired less liabilities assumed. Goodwill acquired in a business combination and intangible assets with indefinite useful lives are not amortized while, intangible assets with finite useful lives are amortized on a straight-line basis. Goodwill and intangible assets not subject to amortization are tested for impairment annually or more frequently if events or changes in circumstances indicate the asset might be impaired. Our analysis entails a comparison of the estimated fair value of these assets that are derived using a combination of both income (discounted future expected net cash flows) and comparable market approaches against their respective carrying values. Estimates of future cash flows and fair value of assets require subjective assumptions with regard to future operating results and actual results could differ from those estimates. In addition to goodwill, our consolidated HEP assets include a third-party transportation agreement that currently generates minimum annual cash inflows of $26.2 million and has an expected remaining term through 2035. The transportation agreement is being amortized on a straight-line basis through 2035 that results in annual amortization expense of $2.0 million . The balance of this transportation agreement was $38.5 million and $40.5 million at December 31, 2015 and 2014 , respectively, and is presented net of accumulated amortization of $21.7 million and $19.7 million , respectively, in “Intangibles and other” in our consolidated balance sheets. There were no impairments of intangible assets or goodwill during the years ended December 31, 2015 , 2014 and 2013 . Investments in Joint Ventures: We consolidate the financial and operating results of joint ventures in which we have an ownership interest of greater than 50% and use the equity method of accounting for investments in which we have a noncontrolling interest. Under the equity method of accounting, we record our pro-rata share of earnings, and contributions to and distributions from joint ventures as adjustments to our investment balance. HEP has a 50% joint venture interest in Frontier Pipeline Company, the owner of a pipeline running from Wyoming to Frontier Station, Utah (the “Frontier Pipeline”), and a 25% joint venture interest in SLC Pipeline, LLC, the owner of a pipeline (the “SLC Pipeline”) that serves refineries in the Salt Lake City, Utah area, that are accounted for using the equity method of accounting. As of December 31, 2015 , HEP's underlying equity in the Frontier Pipeline was $12.6 million compared to its recorded investment balance of $55.2 million , a difference of $42.6 million . The difference is attributable to the fair value of the fixed assets purchased. As of December 31, 2015 , HEP's underlying equity in the SLC Pipeline was $57.7 million compared to its recorded investment balance of $24.3 million , a difference of $33.4 million . This is attributable to the difference between HEP's contributed capital and its allocated equity at formation of the SLC Pipeline. The differences are being amortized as adjustments to HEP's pro-rata share of earnings in the joint ventures. Revenue Recognition: Refined product sales and related cost of sales are recognized when products are shipped and title has passed to customers. HEP recognizes pipeline transportation revenues as products are shipped through its pipelines. All revenues are reported inclusive of shipping and handling costs billed and exclusive of any taxes billed to customers. Shipping and handling costs incurred are reported in cost of products sold. Depreciation: Depreciation is provided by the straight-line method over the estimated useful lives of the assets, primarily 20 to 25 years for refining, pipeline and terminal facilities, 10 to 40 years for buildings and improvements, 5 to 30 years for other fixed assets and 5 years for vehicles. Cost Classifications: Costs of products sold include the cost of crude oil, other feedstocks, blendstocks and purchased finished products, inclusive of transportation costs. We purchase crude oil that at times exceeds the supply needs of our refineries. Quantities in excess of our needs are sold at market prices to purchasers of crude oil that are recorded on a gross basis with the sales price recorded as revenues and the corresponding acquisition cost as cost of products sold. Additionally, we enter into buy / sell exchanges of crude oil with certain parties to facilitate the delivery of quantities to certain locations that are netted at cost. Operating expenses include direct costs of labor, maintenance materials and services, utilities, marketing expense and other direct operating costs. General and administrative expenses include compensation, professional services and other support costs. Deferred Maintenance Costs: Our refinery units require regular major maintenance and repairs which are commonly referred to as “turnarounds.” Catalysts used in certain refinery processes also require regular “change-outs.” The required frequency of the maintenance varies by unit and by catalyst, but generally is every two to five years. Turnaround costs are deferred and amortized over the period until the next scheduled turnaround. Other repairs and maintenance costs are expensed when incurred. Deferred turnaround and catalyst amortization expense was $107.8 million , $96.9 million and $84.8 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Environmental Costs: Environmental costs are charged to operating expenses if they relate to an existing condition caused by past operations and do not contribute to current or future revenue generation. Liabilities are recorded when site restoration and environmental remediation, cleanup and other obligations are either known or considered probable and can be reasonably estimated. Such estimates are undiscounted and require judgment with respect to costs, time frame and extent of required remedial and clean-up activities and are subject to periodic adjustments based on currently available information. Recoveries of environmental costs through insurance, indemnification arrangements or other sources are included in other assets to the extent such recoveries are considered probable. Contingencies: We are subject to proceedings, lawsuits and other claims related to environmental, labor, product and other matters. We are required to assess the likelihood of any adverse judgments or outcomes to these matters as well as potential ranges of probable losses. A determination of the amount of reserves required, if any, for these contingencies is made after careful analysis of each individual issue. The required reserves may change in the future due to new developments in each matter or changes in approach such as a change in settlement strategy in dealing with these matters. Income Taxes: Provisions for income taxes include deferred taxes resulting from temporary differences in income for financial and tax purposes, using the liability method of accounting for income taxes. The liability method requires the effect of tax rate changes on deferred income taxes to be reflected in the period in which the rate change was enacted. The liability method also requires that deferred tax assets be reduced by a valuation allowance unless it is more likely than not that the assets will be realized. Potential interest and penalties related to income tax matters are recognized in income tax expense. We believe we have appropriate support for the income tax positions taken and to be taken on our income tax returns and that our accruals for tax liabilities are adequate for all open years based on an assessment of many factors, including past experience and interpretations of tax law applied to the facts of each matter. New Accounting Pronouncements Revenue Recognition In May 2014, an accounting standard update (ASU 2014-09, “Revenue from Contracts with Customers”) was issued requiring revenue to be recognized when promised goods or services are transferred to customers in an amount that reflects the expected consideration for these goods or services. This standard has an effective date of January 1, 2018, and we are evaluating the impact of this standard. Debt Issuance Costs In April 2015, an accounting standard update (ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs”) was issued requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of a respective debt liability. We adopted this standard effective December 31, 2015 (on a retrospective basis) and have recast our December 31, 2014 consolidated balance sheet. As a result, $0.6 million of deferred debt issuance costs previously classified as non-current assets under “Intangibles and other assets” have been reclassified as a direct reduction to long-term debt. Deferred income taxes In November 2015, an accounting standard update (ASU 2015-17, “Balance Sheet Classification of Deferred Taxes”) was issued requiring deferred tax liabilities and assets to be classified as noncurrent amounts. We adopted this standard effective December 31, 2015 (on a retrospective basis) and have recast our December 31, 2014 consolidated balance sheet. As a result, $17.4 million of deferred income tax liabilities previously classified as current liabilities have been reclassified as noncurrent deferred income tax liabilities. |
Holly Energy Partners
Holly Energy Partners | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Holly Energy Partners | Holly Energy Partners HEP, a consolidated VIE, is a publicly held master limited partnership that owns and operates logistic assets consisting of petroleum product and crude oil pipelines, terminals, tankage, loading rack facilities and refinery processing units that principally support our refining and marketing operations in the Mid-Continent, Southwest and Rocky Mountain regions of the United States and Alon USA, Inc.'s (“Alon”) refinery in Big Spring, Texas. Additionally, HEP owns a 75% interest in UNEV Pipeline, LLC (“UNEV”), the owner of pipeline running from Woods Cross, Utah to Las Vegas, Nevada (the “UNEV Pipeline”) and associated product terminals, a 50% interest in the Frontier Pipeline, and a 25% interest in the SLC Pipeline. As of December 31, 2015 , we owned a 39% interest in HEP, including the 2% general partner interest. As the general partner of HEP, we have the sole ability to direct the activities that most significantly impact HEP's financial performance, and therefore we consolidate HEP. HEP has two primary customers (including us) and generates revenues by charging tariffs for transporting petroleum products and crude oil though its pipelines, by charging fees for terminalling refined products and other hydrocarbons, and storing and providing other services at its storage tanks and terminals. Under our long-term transportation agreements with HEP (discussed further below), we accounted for 81% of HEP’s total revenues for the year ended December 31, 2015 . We do not provide financial or equity support through any liquidity arrangements and / or debt guarantees to HEP. HEP has outstanding debt under a senior secured revolving credit agreement and its senior notes. With the exception of the assets of HEP Logistics Holdings, L.P., one of our wholly-owned subsidiaries and HEP’s general partner, HEP’s creditors have no recourse to our other assets. Any recourse to HEP’s general partner would be limited to the extent of HEP Logistics Holdings, L.P.’s assets, which other than its investment in HEP, are not significant. Furthermore, our creditors have no recourse to the assets of HEP and its consolidated subsidiaries. See Note 11 for a description of HEP’s debt obligations. HEP has risk associated with its operations. If a major customer of HEP were to terminate its contracts or fail to meet desired shipping or throughput levels for an extended period of time, revenue would be reduced and HEP could suffer substantial losses to the extent that a new customer is not found. In the event that HEP incurs a loss, our operating results will reflect HEP’s loss, net of intercompany eliminations, to the extent of our ownership interest in HEP at that point in time. Magellan Asset Exchange On February 22, 2016, we obtained a 50% membership interest in Osage Pipe Line Company, LLC (“Osage”) in a non-monetary exchange for a 20-year terminalling services agreement, whereby, a subsidiary of Magellan Midstream Partners (“Magellan Midstream”) will provide terminalling services for all of our products originating in Artesia, New Mexico that require terminalling in or through El Paso, Texas. Osage is the owner of the Osage pipeline, a 135 -mile pipeline that transports crude oil from Cushing, Oklahoma to our El Dorado Refinery in Kansas and also has a connection to the Jayhawk pipeline that services the CHS refinery in McPherson, Kansas. The Osage pipeline is the primary pipeline that supplies our El Dorado Refinery with crude oil. Concurrent with this transaction, we entered into a nonmonetary exchange with HEP; whereby, we received HEP’s El Paso terminal in exchange for our interest in Osage. Under this exchange, HEP also agreed to build two connections on its south products pipeline system that will permit us access to Magellan Midstream’s El Paso terminal. Effective upon the closing of this exchange, HEP is the named operator of the Osage pipeline and is working to transition into that role. El Dorado Asset Transaction On November 1, 2015, HEP acquired from us newly constructed naphtha fractionation and hydrogen generation units at our El Dorado Refinery for cash consideration of $62.0 million . In connection with this transaction, we entered into 15-year tolling agreements containing minimum quarterly throughput commitments that provide minimum annualized payments to HEP of $15.3 million . Frontier Pipeline Interest Transaction On August 31, 2015, HEP purchased a 50% interest in Frontier Pipeline Company, owner of the Frontier Pipeline, from an affiliate of Enbridge, Inc. for $55.0 million . Frontier Pipeline will continue to be operated by an affiliate of Plains All American Pipeline, L.P., which owns the remaining 50% interest. The 289 -mile crude oil pipeline runs from Casper, Wyoming to Frontier Station, Utah and has a 72,000 BPD capacity. The Frontier Pipeline supplies Canadian and Rocky Mountain crudes to Salt Lake City area refiners through a connection to the SLC Pipeline. Transportation Agreements HEP serves our refineries under long-term pipeline, terminal, tankage and refinery processing unit throughput agreements expiring from 2019 through 2030. Under these agreements, we pay HEP fees to transport, store and process throughput volumes of refined products, crude oil and feedstocks on HEP's pipelines, terminals, tankage, loading rack facilities and refinery processing units that result in minimum annual payments to HEP, including UNEV (a consolidated subsidiary of HEP). Under these agreements, the agreed upon tariff rates are subject to annual tariff rate adjustments on July 1 at a rate based upon the percentage change in Producer Price Index or Federal Energy Regulatory Commission index. As of December 31, 2015 , these agreements result in minimum annualized payments to HEP of $244.9 million . Our transactions with HEP including the acquisitions discussed above and fees paid under our transportation agreements with HEP and UNEV are eliminated and have no impact on our consolidated financial statements. HEP's recent common unit issuances (2013 through present) are summarized below: 2013 Issuances In March 2013, HEP closed on a public offering of 1,875,000 of its common units. Additionally, our wholly-owned subsidiary, HollyFrontier Holdings LLC, as a selling unitholder, closed on a public sale of 1,875,000 HEP common units held by it. HEP used net proceeds of $73.4 million to repay indebtedness incurred under its credit facility and for general partnership purposes. As a result of this transaction and resulting HEP ownership changes, we adjusted additional capital and equity attributable to HEP's noncontrolling interest holders to effectively reallocate a portion of HEP's equity among its unitholders. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Financial Instruments | Financial Instruments Our financial instruments consist of cash and cash equivalents, investments in marketable securities, accounts receivable, accounts payable, debt and derivative instruments. The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value. HEP's outstanding credit agreement borrowings also approximate fair value as interest rates are reset frequently at current interest rates. Fair value measurements are derived using inputs (assumptions that market participants would use in pricing an asset or liability, including assumptions about risk). GAAP categorizes inputs used in fair value measurements into three broad levels as follows: • (Level 1) Quoted prices in active markets for identical assets or liabilities. • (Level 2) Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, similar assets and liabilities in markets that are not active or can be corroborated by observable market data. • (Level 3) Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes valuation techniques that involve significant unobservable inputs. The carrying amounts and estimated fair values of investments in marketable securities, derivative instruments and senior notes at December 31, 2015 and December 31, 2014 were as follows: Fair Value by Input Level Financial Instrument Carrying Amount Fair Value Level 1 Level 2 Level 3 (In thousands) December 31, 2015 Assets: Marketable securities $ 144,019 $ 144,019 $ — $ 144,019 $ — NYMEX futures contracts 3,469 3,469 3,469 — — Commodity price swaps 37,097 37,097 — 37,097 — HEP interest rate swaps 304 304 — 304 — Total assets $ 184,889 $ 184,889 $ 3,469 $ 181,420 $ — Liabilities: Commodity price swaps $ 98,930 $ 98,930 $ — $ 98,930 $ — HEP senior notes 296,752 295,500 — 295,500 — HEP interest rate swaps 114 114 — 114 — Total liabilities $ 395,796 $ 394,544 $ — $ 394,544 $ — Fair Value by Input Level Financial Instrument Carrying Amount Fair Value Level 1 Level 2 Level 3 (In thousands) December 31, 2014 Assets: Marketable securities $ 474,110 $ 474,110 $ — $ 474,110 $ — NYMEX futures contract 17,619 17,619 17,619 — — Commodity price swaps 208,296 208,296 — 208,296 — HEP interest rate swaps 1,019 1,019 — 1,019 — Total assets $ 701,044 $ 701,044 $ 17,619 $ 683,425 $ — Liabilities: Commodity price swaps $ 196,897 $ 196,897 $ — $ 196,897 $ — HollyFrontier senior notes 154,144 155,250 — 155,250 — HEP senior notes 295,986 291,000 — 291,000 — HEP interest rate swaps 1,065 1,065 — 1,065 — Total liabilities $ 648,092 $ 644,212 $ — $ 644,212 $ — Level 1 Financial Instruments Our NYMEX futures contracts are exchange traded and are measured and recorded at fair value using quoted market prices, a Level 1 input. Level 2 Financial Instruments Investments in marketable securities and derivative instruments consisting of commodity price swaps and HEP's interest rate swaps are measured and recorded at fair value using Level 2 inputs. The fair values of the commodity price and interest rate swap contracts are based on the net present value of expected future cash flows related to both variable and fixed rate legs of the respective swap agreements. The measurements are computed using market-based observable inputs, quoted forward commodity prices with respect to our commodity price swaps and the forward London Interbank Offered Rate (“LIBOR”) yield curve with respect to HEP's interest rate swaps. The fair value of the marketable securities and senior notes is based on values provided by a third party, which were derived using market quotes for similar type instruments, a Level 2 input. Level 3 Financial Instruments We at times have forward commodity sales and purchase contracts for which quoted forward market prices are not readily available. The forward rate used to value these forward sales and purchase contracts are derived using a projected forward rate using quoted market rates for similar products, adjusted for regional pricing and grade differentials, a Level 3 input. The following table presents the changes in fair value of our Level 3 assets and liabilities (all related to derivative instruments) for the years ended December 31, 2015 and 2014 : Years Ended December 31, Level 3 Financial Instruments 2015 2014 (In thousands) Liability balance at beginning of period $ — $ (35,318 ) Change in fair value: Recognized in other comprehensive income 3,852 304,275 Recognized in cost of products sold — 14,876 Settlement date fair value of contractual maturities: Recognized in sales and other revenues (3,852 ) (88,326 ) Recognized in cost of products sold — (21,848 ) Transfer out of Level 3 — (173,659 ) Liability balance at end of period $ — $ — |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is calculated as net income attributable to HollyFrontier stockholders divided by the average number of shares of common stock outstanding. Diluted earnings per share assumes, when dilutive, the issuance of the net incremental shares from restricted shares and performance share units. The following is a reconciliation of the denominators of the basic and diluted per share computations for net income attributable to HollyFrontier stockholders: Years Ended December 31, 2015 2014 2013 (In thousands, except per share data) Net income attributable to HollyFrontier stockholders $ 740,101 $ 281,292 $ 735,842 Participating securities' share in earnings 2,306 820 2,754 Net income attributable to common shares $ 737,795 $ 280,472 $ 733,088 Average number of shares of common stock outstanding 188,731 197,243 200,419 Effect of dilutive variable restricted shares and performance share units (1) 209 185 815 Average number of shares of common stock outstanding assuming dilution 188,940 197,428 201,234 Basic earnings per share $ 3.91 $ 1.42 $ 3.66 Diluted earnings per share $ 3.90 $ 1.42 $ 3.64 (1) Excludes anti-dilutive restricted and performance share units of: 89 356 166 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation As of December 31, 2015 , we have two principal share-based compensation plans (collectively, the “Long-Term Incentive Compensation Plan”). The compensation cost charged against income for these plans was $26.9 million , $26.1 million and $32.2 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Our accounting policy for the recognition of compensation expense for awards with pro-rata vesting is to expense the costs ratably over the vesting periods. Additionally, HEP maintains a share-based compensation plan for Holly Logistic Services, L.L.C.'s non-employee directors and certain executives and employees. Compensation cost attributable to HEP’s share-based compensation plan was $3.5 million , $3.5 million and $3.6 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Restricted Stock and Restricted Stock Units Under our Long-Term Incentive Compensation Plan, we grant certain officers and other key employees restricted stock and restricted stock unit awards with awards generally vesting over a period of one to three years. Restricted stock award recipients are generally entitled to all the rights of absolute ownership of the restricted shares from the date of grant including the right to vote the shares and to receive dividends. Upon vesting, restrictions on the restricted shares lapse at which time they convert to common shares. In addition, we grant non-employee directors restricted stock unit awards, which typically vest over a period of one year and are payable in stock. The fair value of each restricted stock and restricted stock unit award is measured based on the grant date market price of our common shares and is amortized over the respective vesting period. A summary of restricted stock and restricted stock unit activity and changes during the year ended December 31, 2015 is presented below: Restricted Stock and Restricted Stock Units Grants Weighted Average Grant Date Fair Value Aggregate Intrinsic Value ($000) Outstanding at January 1, 2015 (non-vested) 669,777 $ 44.12 Granted 447,544 49.92 Vesting (transfer/conversion to common stock) (337,159 ) 42.03 Forfeited (57,637 ) 48.40 Outstanding at December 31, 2015 (non-vested) 722,525 $ 48.35 $ 27,950 For the years ended December 31, 2015 , 2014 and 2013 , restricted stock and restricted stock units vested having a grant date fair value of $14.2 million , $18.2 million and $16.2 million , respectively. For the years ended December 31, 2014 and 2013 , we granted restricted stock and restricted stock units having a weighted average grant date fair value of $42.03 and $42.00 , respectively. As of December 31, 2015 , there was $23.7 million of total unrecognized compensation cost related to non-vested restricted stock and restricted stock unit grants. That cost is expected to be recognized over a weighted-average period of 1.6 years. Performance Share Units Under our Long-Term Incentive Compensation Plan, we grant certain officers and other key employees performance share units, which are payable in stock upon meeting certain criteria over the service period, and generally vest over a period of three years. Under the terms of our performance share unit grants, awards are subject to “financial performance” and “market performance” criteria. Financial performance is based on our financial performance compared to a peer group of independent refining companies, while market performance is based on the relative standing of total shareholder return achieved by HollyFrontier compared to peer group companies. The number of shares ultimately issued under these awards can range from zero to 200% of target award amounts. As of December 31, 2015 , estimated share payouts for outstanding non-vested performance share unit awards averaged approximately 85% of target amounts. A summary of performance share unit activity and changes during the year ended December 31, 2015 is presented below: Performance Share Units Grants Outstanding at January 1, 2015 (non-vested) 725,054 Granted 209,589 Vesting and transfer of ownership to recipients (209,592 ) Forfeited (87,113 ) Outstanding at December 31, 2015 (non-vested) 637,938 For the year ended December 31, 2015 , we issued 136,896 shares of common stock, representing a 65% payout on vested performance share units having a grant date fair value of $10.4 million . For the years ended December 31, 2014 and 2013 , we issued common stock upon the vesting of the performance share units having a grant date fair value of $14.3 million and $11.6 million , respectively. As of December 31, 2015 , there was $16.4 million of total unrecognized compensation cost related to non-vested performance share units having a grant date fair value of $45.86 per unit. That cost is expected to be recognized over a weighted-average period of 1.8 years. |
Cash and Cash Equivalents and I
Cash and Cash Equivalents and Investments in Marketable Securities | 12 Months Ended |
Dec. 31, 2015 | |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | |
Cash and Cash Equivalents and Investments in Marketable Securities | Cash and Cash Equivalents and Investments in Marketable Securities Our investment portfolio at December 31, 2015 consisted of cash, cash equivalents and investments in marketable securities. We currently invest in marketable debt securities with the maximum maturity or put date of any individual issue generally not greater than one year from the date of purchase, which are usually held until maturity. All of these instruments are classified as available-for-sale. As a result, they are reported at fair value using quoted market prices. Interest income is recorded as earned. Unrealized gains and losses, net of related income taxes, are reported as a component of accumulated other comprehensive income (loss). Upon sale or maturity, realized gains on our marketable debt securities are recognized as interest income. These gains are computed based on the specific identification of the underlying cost of the securities, net of unrealized gains and losses previously reported in other comprehensive income. Unrealized gains and losses on our available-for-sale securities are due to changes in market prices and are considered temporary. The following is a summary of our marketable securities: Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value (Net Carrying Amount) (In thousands) December 31, 2015 Commercial paper $ 22,876 $ 1 $ (2 ) $ 22,875 Corporate debt securities 32,311 — (41 ) 32,270 State and political subdivisions debt securities 88,935 6 (67 ) 88,874 Total marketable securities $ 144,122 $ 7 $ (110 ) $ 144,019 December 31, 2014 Certificates of deposit $ 54,000 $ 10 $ — $ 54,010 Commercial paper 52,297 7 (4 ) 52,300 Corporate debt securities 136,181 1 (94 ) 136,088 State and political subdivisions debt securities 231,819 5 (112 ) 231,712 Total marketable securities $ 474,297 $ 23 $ (210 ) $ 474,110 Interest income recognized on our marketable securities was $1.9 million and $2.2 million for the years ended December 31, 2015 and 2014 , respectively. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventory, Net [Abstract] | |
Inventories | Inventories Inventory consists of the following components: December 31, 2015 2014 (In thousands) Crude oil $ 518,922 $ 581,592 Other raw materials and unfinished products (1) 214,832 204,467 Finished products (2) 603,568 531,523 Lower of cost or market reserve (624,457 ) (397,478 ) Process chemicals (3) 4,477 4,028 Repairs and maintenance supplies and other 124,527 110,999 Total inventory $ 841,869 $ 1,035,131 (1) Other raw materials and unfinished products include feedstocks and blendstocks, other than crude. (2) Finished products include gasolines, jet fuels, diesels, lubricants, asphalts, LPG’s and residual fuels. (3) Process chemicals include additives and other chemicals. Crude oil, other raw materials, unfinished products and finished products are carried at the lower of cost or market. Cost is determined principally under the LIFO valuation method to reflect a better matching of cost and revenue. Ending inventory costs in excess of market values are written down to current replacement costs and charged to cost of products sold in the period recorded. In subsequent periods a new lower of cost or market reserve determination is made based on current conditions. We determine the need for a lower of cost or market inventory adjustment by evaluating inventories on an aggregate basis. Inventories reflect lower of cost or market valuation reserves of $624.5 million and $397.5 million at December 31, 2015 and 2014 , respectively. During 2015 , the December 31, 2014 market valuation reserve of $397.5 million was reversed as inventory quantities giving rise to the 2014 reserve were sold. A new reserve of $624.5 million was established at December 31, 2015 based on market conditions at that time. The effect of the change in the lower of cost or market reserve was a $227.0 million and $397.5 million increase to cost of products sold for the years ended December 31, 2015 and 2014 , respectively. At December 31, 2015 and 2014 , the LIFO value of inventory, net of the lower of cost or market reserve, was equal to current costs. The excess of current cost over the LIFO value of inventory was $273.0 million at December 31, 2013 . |
Properties, Plants and Equipmen
Properties, Plants and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Properties, Plants and Equipment | Properties, Plants and Equipment The components of properties, plants and equipment are as follows: December 31, 2015 2014 (In thousands) Land, buildings and improvements $ 305,712 $ 255,260 Refining facilities 2,833,125 2,634,432 Pipelines and terminals 1,321,398 1,226,923 Transportation vehicles 21,289 35,178 Other fixed assets 158,401 136,545 Construction in progress 850,264 564,103 5,490,189 4,852,441 Accumulated depreciation (1,374,527 ) (1,181,902 ) $ 4,115,662 $ 3,670,539 We capitalized interest attributable to construction projects of $5.5 million , $11.8 million and $12.1 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Depreciation expense was $233.3 million , $261.8 million and $213.6 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. For the years ended December 31, 2015 , 2014 and 2013 , depreciation expense included $58.7 million , $58.1 million and $62.3 million , respectively, attributable to HEP operations. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill [Abstract] | |
Goodwill | Goodwill We performed our annual goodwill impairment testing as of July 1, 2015, which entailed an assessment of our reporting unit fair values relative to their respective carrying values that were derived using a combination of both income and market approaches. Our income approach utilizes the discounted future expected cash flows. Our market approach, which includes both the guideline public company and guideline transaction methods, utilizes pricing multiples derived from historical market transactions of other like-kind assets. Our discounted cash flows reflect estimates of future cash flows based on both historical and forward crack-spreads, forecasted production levels, operating costs and capital expenditures. Based on our testing as of July 1, 2015, the fair value of our Cheyenne reporting unit exceeded its carrying cost by approximately 8% . The fair value of our El Dorado and HEP reporting units substantially exceeded their respective carrying values. As of December 31, 2015 , there have been no impairments to goodwill. Historically, the refining industry has experienced significant fluctuations in operating results over an extended business cycle including changes in prices of crude oil and refined products, changes in operating costs including natural gas and higher costs of complying with government regulations. It is reasonably possible that at some future downturn in refining operations that the goodwill related to our Cheyenne Refinery will be determined to be impaired. Such impairment charges could be material. As of December 31, 2015 , we had goodwill assigned to our refining and HEP segments of $2,042.8 million and $289.0 million , respectively. |
Environmental
Environmental | 12 Months Ended |
Dec. 31, 2015 | |
Environmental Expense and Liabilities [Abstract] | |
Environmental | Environmental We expensed $14.7 million , $28.5 million and $13.2 million for the years ended December 31, 2015 , 2014 and 2013 , respectively, for environmental remediation obligations. The accrued environmental liability reflected in our consolidated balance sheets was $98.1 million and $104.5 million at December 31, 2015 and 2014 , respectively, of which $83.5 million and $81.8 million , respectively, were classified as other long-term liabilities. These accruals include remediation and monitoring costs expected to be incurred over an extended period of time (up to 30 years for certain projects). The amount of our accrued liability could increase in the future when the results of ongoing investigations become known, are considered probable and can be reasonably estimated. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt HollyFrontier Credit Agreement We have a $1 billion senior unsecured revolving credit facility maturing in July 2019 (the “HollyFrontier Credit Agreement”) which may be used for revolving credit loans and letters of credit from time to time and is available to fund general corporate purposes. Indebtedness under the HollyFrontier Credit Agreement is recourse to HollyFrontier. At December 31, 2015 , we were in compliance with all covenants, had no outstanding borrowings and had outstanding letters of credit totaling $6.0 million under the HollyFrontier Credit Agreement. HEP Credit Agreement HEP has an $850 million senior secured revolving credit facility that matures in November 2018 (the “HEP Credit Agreement”) and is available to fund capital expenditures, investments, acquisitions, distribution payments and working capital and for general partnership purposes. It is also available to fund letters of credit up to a $50 million sub-limit. At December 31, 2015 , HEP was in compliance with all of its covenants, had outstanding borrowings of $712.0 million and no outstanding letters of credit under the HEP Credit Agreement. Indebtedness under the HEP Credit Agreement bears interest, at HEP's option, at either a reference rate announced by the administrative agent plus an applicable margin or at a rate equal to LIBOR plus an applicable margin. In each case, the applicable margin is based upon the ratio of HEP’s funded debt to earnings before interest, taxes, depreciation and amortization (as defined in the HEP Credit Agreement). The weighted average interest rates in effect on HEP’s Credit Agreement borrowings were 2.572% and 2.152% at December 31, 2015 and 2014 , respectively. HEP’s obligations under the HEP Credit Agreement are collateralized by substantially all of HEP’s assets. Indebtedness under the HEP Credit Agreement involves recourse to HEP Logistics Holdings, L.P., its general partner, and is guaranteed by HEP’s wholly-owned subsidiaries. Any recourse to the general partner would be limited to the extent of HEP Logistics Holdings, L.P.’s assets, which other than its investment in HEP, are not significant. HEP’s creditors have no recourse to our other assets. Furthermore, our creditors have no recourse to the assets of HEP and its consolidated subsidiaries. HollyFrontier Senior Notes In June 2015, we redeemed our $150.0 million aggregate principal amount of 6.875% senior notes maturing November 2018 at a redemption cost of $155.2 million at which time we recognized a $1.4 million early extinguishment loss consisting of a $5.2 million debt redemption premium, net of an unamortized premium of $3.8 million . In June 2013, we redeemed our $286.8 million aggregate principal amount of 9.875% senior notes maturing June 2017 at a redemption cost of $301.0 million , at which time we recognized a $22.1 million early extinguishment loss consisting of a $14.2 million debt redemption premium and an unamortized discount of $7.9 million . HollyFrontier Financing Obligation We have a financing obligation that relates to a sale and lease-back of certain crude oil tankage that we sold to an affiliate of Plains All American Pipeline, L.P. (“Plains”) in October 2009 for $40.0 million . Monthly lease payments are recorded as a reduction in principal over the 15 -year lease term ending in 2024. HEP Senior Notes HEP’s 6.5% senior notes ( $300 million aggregate principal amount maturing March 2020 ) (the “HEP Senior Notes”) are unsecured and impose certain restrictive covenants, including limitations on HEP’s ability to incur additional indebtedness, make investments, sell assets, incur certain liens, pay distributions, enter into transactions with affiliates, and enter into mergers. At any time when the HEP Senior Notes are rated investment grade by both Moody’s and Standard & Poor’s and no default or event of default exists, HEP will not be subject to many of the foregoing covenants. Additionally, HEP has certain redemption rights under the HEP Senior Notes. In March 2014, HEP redeemed its $150.0 million aggregate principal amount of 8.25% senior notes maturing March 2018 at a redemption cost of $156.2 million , at which time HEP recognized a $7.7 million early extinguishment loss consisting of a $6.2 million debt redemption premium and unamortized discount and financing cost of $1.5 million . HEP funded the redemption with borrowings under the HEP Credit Agreement. Indebtedness under the HEP Senior Notes involves recourse to HEP Logistics Holdings, L.P., its general partner, and is guaranteed by HEP’s wholly-owned subsidiaries. However, any recourse to the general partner would be limited to the extent of HEP Logistics Holdings, L.P.’s assets, which other than its investment in HEP, are not significant. HEP’s creditors have no recourse to our other assets. Furthermore, our creditors have no recourse to the assets of HEP and its consolidated subsidiaries. The carrying amounts of long-term debt are as follows: December 31, 2015 2014 (In thousands) 6.875% Senior Notes Principal $ — $ 150,000 Unamortized premium — 4,144 — 154,144 Financing Obligation 31,288 33,167 Total HollyFrontier long-term debt 31,288 187,311 HEP Credit Agreement 712,000 571,000 HEP 6.5% Senior Notes Principal 300,000 300,000 Unamortized discount and debt issuance costs (3,248 ) (4,014 ) 296,752 295,986 Total HEP long-term debt 1,008,752 866,986 Total long-term debt $ 1,040,040 $ 1,054,297 Principal maturities of long-term debt are as follows: Years Ending December 31, (In thousands) 2016 $ 2,121 2017 2,393 2018 714,700 2019 3,046 2020 303,437 Thereafter 17,591 Total $ 1,043,288 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Commodity Price Risk Management Our primary market risk is commodity price risk. We are exposed to market risks related to the volatility in crude oil and refined products, as well as volatility in the price of natural gas used in our refining operations. We periodically enter into derivative contracts in the form of commodity price swaps, forward purchase and sales and futures contracts to mitigate price exposure with respect to: • our inventory positions; • natural gas purchases; • costs of crude oil and related grade differentials; • prices of refined products; and • our refining margins. Accounting Hedges We have swap contracts serving as cash flow hedges against price risk on forecasted purchases of natural gas. We also have forward sales contracts that lock in the prices of future sales of refined product. Additionally, we had swap contracts serving as cash flow hedges against price risk on forecasted purchases of WTI crude oil and forecasted sales of refined product. These contracts have been designated as accounting hedges and are measured at fair value with offsetting adjustments (gains/losses) recorded directly to other comprehensive income. These fair value adjustments are later reclassified to earnings as the hedging instruments mature. On a quarterly basis, hedge ineffectiveness is measured by comparing the change in fair value of the swap contracts against the expected future cash inflows/outflows on the respective transaction being hedged. Any hedge ineffectiveness is also recognized in earnings. The following table presents the pre-tax effect on other comprehensive income (“OCI”) and earnings due to fair value adjustments and maturities of commodity price swaps and forward sales under hedge accounting: Unrealized Gain (Loss) Recognized in OCI Gain (Loss) Recognized in Earnings Due to Settlements Gain (Loss) Attributable to Hedge Ineffectiveness Recognized in Earnings Location Amount Location Amount (In thousands) Year Ended December 31, 2015 Commodity price swaps Change in fair value $ (3,983 ) Sales and other revenues $ 245,819 Sales and other revenues $ (274 ) Gain reclassified to earnings due to settlements (49,592 ) Cost of products sold (179,700 ) Cost of products sold 4,376 Amortization of discontinued hedges reclassified to earnings 1,080 Operating expenses (17,607 ) Operating expenses 547 Total $ (52,495 ) $ 48,512 $ 4,649 Year Ended December 31, 2014 Commodity price swaps Change in fair value $ 107,518 Sales and other revenues $ 88,326 Sales and other revenues $ 274 Gain reclassified to earnings due to settlements (52,884 ) Cost of products sold (37,313 ) Cost of products sold (4,377 ) Amortization of discontinued hedges reclassified to earnings 1,080 Operating expenses 791 Operating expenses (547 ) Total $ 55,714 $ 51,804 $ (4,650 ) Year Ended December 31, 2013 Commodity price swaps Change in fair value $ (8,808 ) Sales and other revenues $ (20,060 ) Gain reclassified to earnings due to settlements (16,410 ) Cost of products sold 38,949 Sales and other revenues $ 45 Amortization of discontinued hedges reclassified to earnings 900 Operating expenses (3,379 ) Cost of products sold 515 Total $ (24,318 ) $ 15,510 $ 560 As of December 31, 2015 , we have the following notional contract volumes related to outstanding derivative instruments serving as cash flow hedges against price risk on forecasted transactions: Notional Contract Volumes by Year of Maturity Derivative instruments Total Outstanding Notional 2016 2017 Unit of Measure Natural gas price swaps - long 19,200,000 9,600,000 9,600,000 MMBTU Forward gasoline and diesel contracts - long 525,000 525,000 — Barrels Forward gasoline and diesel contracts - short 625,000 625,000 — Barrels Physical crude contracts - short 38,000 38,000 — Barrels In 2013, we dedesignated certain commodity price swaps (long positions) that previously received hedge accounting treatment. These contracts now serve as economic hedges against price risk on forecasted natural gas purchases totaling 19,200,000 MMBTU's to be purchased ratably through 2017. As of December 31, 2015 , we have an unrealized loss of $2.2 million classified in accumulated other comprehensive loss that relates to the application of hedge accounting prior to dedesignation that is amortized as a charge to operating expenses as the contracts mature. Economic Hedges We also have swap contracts that serve as economic hedges (derivatives used for risk management, but not designated as accounting hedges) to fix our purchase price on forecasted purchases of WTI crude oil, and to lock in the basis spread differentials on forecasted purchases of crude oil and natural gas. Also, we have NYMEX futures contracts to lock in prices on forecasted purchases of inventory. These contracts are measured at fair value with offsetting adjustments (gains/losses) recorded directly to income. The following table presents the pre-tax effect on income due to maturities and fair value adjustments of our economic hedges: Years Ended December 31, Location of Gain (Loss) Recognized in Income 2015 2014 2013 (In thousands) Cost of products sold $ 48,082 $ 68,509 $ 20,751 Operating expenses (12,003 ) (185 ) (5,250 ) Total $ 36,079 $ 68,324 $ 15,501 As of December 31, 2015 , we have the following notional contract volumes related to our outstanding derivative contracts serving as economic hedges: Notional Contract Volumes by Year of Maturity Derivative Instrument Total Outstanding Notional 2016 2017 Unit of Measure Crude price swaps (basis spread) - long 11,712,000 11,712,000 — Barrels Natural gas price swaps (basis spread) - long 20,616,000 10,308,000 10,308,000 MMBTU Natural gas price swaps - long 19,200,000 9,600,000 9,600,000 MMBTU Natural gas price swaps - short 19,200,000 9,600,000 9,600,000 MMBTU NYMEX futures (WTI) - short 1,840,000 1,840,000 — Barrels Interest Rate Risk Management HEP uses interest rate swaps to manage its exposure to interest rate risk. As of December 31, 2015 , HEP had three interest rate swap contracts that hedge its exposure to the cash flow risk caused by the effects of LIBOR changes on $305.0 million in credit agreement advances. The first interest rate swap effectively converts $155.0 million of LIBOR based debt to fixed rate debt having an interest rate of 0.99% plus an applicable margin of 2.25% as of December 31, 2015 , which equaled an effective interest rate of 3.24% . This swap matures in February 2016. HEP has two additional interest rate swaps with identical terms which effectively convert $150.0 million of LIBOR based debt to fixed rate debt having an interest rate of 0.74% plus an applicable margin of 2.25% as of December 31, 2015 , which equaled an effective interest rate of 2.99% . Both of these swap contracts mature in July 2017. All of these swap contracts have been designated as cash flow hedges. To date, there has been no ineffectiveness on these cash flow hedges. The following table presents the pre-tax effect on other comprehensive income and earnings due to fair value adjustments and maturities of HEP's interest rate swaps under hedge accounting: Unrealized Gain (Loss) Recognized in OCI Loss Recognized in Earnings Due to Settlements Location Amount (In thousands) Year Ended December 31, 2015 Interest rate swaps Change in fair value $ (1,864 ) Loss reclassified to earnings due to settlements 2,100 Interest expense $ (2,100 ) Total $ 236 $ (2,100 ) Year Ended December 31, 2014 Interest rate swaps Change in fair value $ (2,104 ) Loss reclassified to earnings due to settlements 2,202 Interest expense $ (2,202 ) Total $ 98 $ (2,202 ) Year Ended December 31, 2013 Interest rate swaps Change in fair value $ 1,194 Loss reclassified to earnings due to settlements 2,092 Amortization of discontinued hedge reclassified to earnings 849 Interest expense $ (2,941 ) Total $ 4,135 $ (2,941 ) The following table presents the fair value and balance sheet locations of our outstanding derivative instruments. These amounts are presented on a gross basis with offsetting balances that reconcile to a net asset or liability position in our consolidated balance sheets. We present on a net basis to reflect the net settlement of these positions in accordance with provisions of our master netting arrangements. Derivatives in Net Asset Position Derivatives in Net Liability Position Gross Assets Gross Liabilities Offset in Balance Sheet Net Assets Recognized in Balance Sheet Gross Liabilities Gross Assets Offset in Balance Sheet Net Liabilities Recognized in Balance Sheet (In thousands) December 31, 2015 Derivatives designated as cash flow hedging instruments: Commodity price swap contracts $ — $ — $ — $ 38,755 $ — $ 38,755 Interest rate swap contracts 304 — 304 114 — 114 $ 304 $ — $ 304 $ 38,869 $ — $ 38,869 Derivatives not designated as cash flow hedging instruments: Commodity price swap contracts $ — $ — $ — $ 60,196 $ (37,118 ) $ 23,078 NYMEX futures contracts 3,469 — 3,469 — — — $ 3,469 $ — $ 3,469 $ 60,196 $ (37,118 ) $ 23,078 Total net balance $ 3,773 $ 61,947 Balance sheet classification: Prepayment and other $ 3,469 Accrued liabilities $ 36,976 Intangibles and other 304 Other long-term liabilities 24,971 $ 3,773 $ 61,947 Derivatives in Net Asset Position Derivatives in Net Liability Position Gross Assets Gross Liabilities Offset in Balance Sheet Net Assets Recognized in Balance Sheet Gross Liabilities Gross Assets Offset in Balance Sheet Net Liabilities Recognized in Balance Sheet (In thousands) December 31, 2014 Derivatives designated as cash flow hedging instruments: Commodity price swap contracts $ 173,658 $ (142,115 ) $ 31,543 $ 21,441 $ — $ 21,441 Interest rate swap contracts 1,019 — 1,019 1,065 — 1,065 $ 174,677 $ (142,115 ) $ 32,562 $ 22,506 $ — $ 22,506 Derivatives not designated as cash flow hedging instruments: Commodity price swap contracts $ 17,630 $ (12,942 ) $ 4,688 $ 20,398 $ (17,007 ) $ 3,391 NYMEX futures contracts 17,619 — 17,619 — — — $ 35,249 $ (12,942 ) $ 22,307 $ 20,398 $ (17,007 ) $ 3,391 Total net balance $ 54,869 $ 25,897 Balance sheet classification: Prepayment and other $ 53,850 Intangibles and other 1,019 Other long-term liabilities $ 25,897 $ 54,869 $ 25,897 At December 31, 2015 , we had a pre-tax net unrealized loss of $40.9 million classified in accumulated other comprehensive loss that relates to all accounting hedges having contractual maturities through 2017. Assuming commodity prices and interest rates remain unchanged, an unrealized loss of $20.9 million will be effectively transferred from accumulated other comprehensive loss into the statement of income as the hedging instruments contractually mature over the next twelve-month period. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes is comprised of the following: Years Ended December 31, 2015 2014 2013 (In thousands) Current Federal $ 480,446 $ 294,509 $ 270,024 State 71,750 40,325 7,148 Deferred Federal (127,714 ) (168,756 ) 94,896 State (18,422 ) (24,906 ) 19,508 $ 406,060 $ 141,172 $ 391,576 The statutory federal income tax rate applied to pre-tax book income reconciles to income tax expense as follows: Years Ended December 31, 2015 2014 2013 (In thousands) Tax computed at statutory rate $ 422,999 $ 163,625 $ 405,790 State income taxes, net of federal tax benefit 40,385 13,641 21,363 Domestic production activities deduction (35,200 ) (20,998 ) (22,101 ) Noncontrolling interest in net income (24,155 ) (17,431 ) (12,378 ) Uncertain tax positions — — (193 ) Other 2,031 2,335 (905 ) $ 406,060 $ 141,172 $ 391,576 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Our deferred income tax assets and liabilities as of December 31, 2015 and 2014 are as follows: December 31, 2015 Assets Liabilities Total (In thousands) Deferred income taxes Properties, plants and equipment (due primarily to tax in excess of book depreciation) $ — $ (648,542 ) $ (648,542 ) Accrued employee benefits 22,355 — 22,355 Accrued post-retirement benefits 11,518 — 11,518 Accrued environmental costs 42,517 — 42,517 Hedging instruments 21,815 — 21,815 Inventory differences 175,614 — 175,614 Deferred turnaround costs — (104,944 ) (104,944 ) Net operating loss and tax credit carryforwards 8,033 — 8,033 Investment in HEP — (23,429 ) (23,429 ) Other — (2,843 ) (2,843 ) Total $ 281,852 $ (779,758 ) $ (497,906 ) December 31, 2014 Assets Liabilities Total (In thousands) Deferred income taxes Properties, plants and equipment (due primarily to tax in excess of book depreciation) $ — $ (581,017 ) $ (581,017 ) Accrued employee benefits 22,973 — 22,973 Accrued post-retirement benefits 11,504 — 11,504 Accrued environmental costs 30,744 — 30,744 Hedging instruments — (11,601 ) (11,601 ) Inventory differences — (7,376 ) (7,376 ) Deferred turnaround costs — (110,827 ) (110,827 ) Net operating loss and tax credit carryforwards 10,119 — 10,119 Investment in HEP — (25,244 ) (25,244 ) Other — (3,554 ) (3,554 ) Total $ 75,340 $ (739,619 ) $ (664,279 ) At December 31, 2015 , we had a Kansas income tax credit of $6.6 million that is scheduled to be utilized in 2016 through 2019 . This amount is reflected in non-current deferred tax assets. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Years Ended December 31, 2014 2013 (In thousands) Balance at January 1 $ 9,006 $ 12,641 Additions for tax positions of prior years — 25,728 Reductions for tax positions of prior years — (5,092 ) Settlements (9,006 ) (24,271 ) Balance at December 31 $ — $ 9,006 We had no unrecognized tax benefits at December 31, 2015 and 2014 . We recognize interest and penalties relating to liabilities for unrecognized tax benefits as an element of tax expense. We are subject to U.S. federal income tax, Oklahoma, Kansas, New Mexico, Iowa, Arizona, Utah, Colorado and Nebraska income tax and to income tax of multiple other state jurisdictions. We have substantially concluded all state and local income tax matters for tax years through 2012 and have materially concluded all U.S. federal income tax matters for tax years through December 31, 2013 . |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Shares of our common stock outstanding and activity for the years ended December 31, 2015 , 2014 and 2013 are presented below: Years Ended December 31, 2015 2014 2013 Common shares outstanding at January 1 196,086,090 198,830,351 203,551,496 Issuance of restricted stock, excluding restricted stock with performance feature 447,534 376,622 292,855 Vesting of performance units 136,896 416,111 210,819 Vesting of restricted stock with performance feature 43,774 77,430 15,141 Forfeitures of restricted stock (51,332 ) (76,107 ) (15,794 ) Purchase of treasury stock (1) (16,428,574 ) (3,538,317 ) (5,224,166 ) Common shares outstanding at December 31 180,234,388 196,086,090 198,830,351 (1) Includes 151,967 , 279,680 and 235,922 shares, respectively, withheld under the terms of stock-based compensation agreements to provide funds for the payment of payroll and income taxes due at the vesting of share-based awards, as well as other stock repurchases under separate authority from our Board of Directors. In May 2015, our Board of Directors approved a $1 billion share repurchase program, which replaced all existing share repurchase programs, authorizing us to repurchase common stock in the open market or through privately negotiated transactions. The timing and amount of stock repurchases will depend on market conditions and corporate, regulatory and other relevant considerations. This program may be discontinued at any time by the Board of Directors. As of December 31, 2015 , we had remaining authorization to repurchase up to $308.2 million under this stock repurchase program. In addition, we are authorized by our Board of Directors to repurchase shares in an amount sufficient to offset shares issued under our compensation programs. During the years ended December 31, 2015 , 2014 and 2013 , we withheld shares of our common stock from certain employees in the amounts of $6.2 million , $11.4 million and $11.3 million , respectively. These withholdings were made under the terms of restricted stock and performance share unit agreements upon vesting, at which time, we concurrently made cash payments to fund payroll and income taxes on behalf of officers and employees who elected to have shares withheld from vested amounts to pay such taxes. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2015 | |
Other Comprehensive Income (Loss), before Tax [Abstract] | |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) The components and allocated tax effects of other comprehensive income (loss) are as follows: Before-Tax Tax Expense (Benefit) After-Tax (In thousands) Year Ended December 31, 2015 Net unrealized gain on marketable securities $ 38 $ 14 $ 24 Net unrealized loss on hedging instruments (52,259 ) (20,282 ) (31,977 ) Net change in pension and other post-retirement benefit obligations 79 31 48 Other comprehensive loss (52,142 ) (20,237 ) (31,905 ) Less other comprehensive income attributable to noncontrolling interest 144 — 144 Other comprehensive loss attributable to HollyFrontier stockholders $ (52,286 ) $ (20,237 ) $ (32,049 ) Year Ended December 31, 2014 Net unrealized loss on marketable securities $ (157 ) $ (62 ) $ (95 ) Net unrealized gain on hedging instruments 55,812 21,583 34,229 Net change in pension and other post-retirement benefit obligations (11,425 ) (4,423 ) (7,002 ) Other comprehensive income 44,230 17,098 27,132 Less other comprehensive income attributable to noncontrolling interest 60 — 60 Other comprehensive income attributable to HollyFrontier stockholders $ 44,170 $ 17,098 $ 27,072 Year Ended December 31, 2013 Net unrealized gain on marketable securities $ 34 $ 17 $ 17 Net unrealized loss on hedging instruments (20,183 ) (8,669 ) (11,514 ) Net change in pension and other post-retirement benefit obligations 37,593 14,534 23,059 Other comprehensive income 17,444 5,882 11,562 Less other comprehensive income attributable to noncontrolling interest 2,315 — 2,315 Other comprehensive income attributable to HollyFrontier stockholders $ 15,129 $ 5,882 $ 9,247 The following table presents the income statement line item effects for reclassifications out of accumulated other comprehensive income (“AOCI”): AOCI Component Gain (Loss) Reclassified From AOCI Income Statement Line Item Years Ended December 31, 2015 2014 2013 (In thousands) Marketable securities $ (51 ) $ 4 $ 39 Interest income 42 — — Gain on sale of assets (9 ) 4 39 (3 ) 2 15 Income tax expense (benefit) (6 ) 2 24 Net of tax Hedging instruments: Commodity price swaps 245,819 88,326 (20,060 ) Sales and other revenues (179,700 ) (37,313 ) 38,949 Cost of products sold (17,607 ) 791 (3,379 ) Operating expenses Interest rate swaps (2,100 ) (2,202 ) (2,941 ) Interest expense 46,412 49,602 12,569 18,454 19,712 5,554 Income tax expense 27,958 29,890 7,015 Net of tax 1,273 1,335 1,783 Noncontrolling interest 29,231 31,225 8,798 Net of tax and noncontrolling interest Pension and other post-retirement benefit obligations: Pension obligation — — (3,226 ) Cost of products sold — — (30,127 ) Operating expenses — — (4,236 ) General and administrative expenses — — (37,589 ) — — (14,547 ) Income tax benefit — — (23,042 ) Net of tax Post-retirement healthcare obligation 271 482 646 Cost of products sold 2,681 3,366 2,868 Operating expenses 347 448 526 General and administrative expenses 3,299 4,296 4,040 1,277 1,663 1,563 Income tax expense 2,022 2,633 2,477 Net of tax Retirement restoration plan (20 ) (920 ) (111 ) General and administrative expenses (8 ) (356 ) (43 ) Income tax benefit (12 ) (564 ) (68 ) Net of tax Total reclassifications for the period $ 31,235 $ 33,296 $ (11,811 ) Accumulated other comprehensive income in the equity section of our consolidated balance sheets includes: December 31, 2015 2014 (In thousands) Unrealized gain on post-retirement benefit obligations $ 20,737 $ 20,689 Unrealized loss on marketable securities (61 ) (85 ) Unrealized gain (loss) on hedging instruments, net of noncontrolling interest (24,831 ) 7,290 Accumulated other comprehensive income (loss) $ (4,155 ) $ 27,894 |
Retirement Plan
Retirement Plan | 12 Months Ended |
Dec. 31, 2015 | |
Pension and Other Postretirement Benefit Expense [Abstract] | |
Retirement Plan | Retirement Plans Post-retirement Healthcare Plans We provide post-retirement medical benefits to certain eligible employees. These plans are unfunded and provide differing levels of healthcare benefits dependent upon hire date and work location. Not all of our employees are covered by these plans at December 31, 2015 . The following table sets forth the changes in the benefit obligation and plan assets of our post-retirement healthcare plans for the years ended December 31, 2015 and 2014 : Years Ended December 31, 2015 2014 (In thousands) Change in plans' benefit obligation Post-retirement plans' benefit obligation - beginning of year $ 23,633 $ 15,715 Service cost 1,694 895 Interest cost 819 638 Participant contributions 593 573 Amendments — 3,383 Benefits paid (2,260 ) (1,533 ) Actuarial loss (gain) (3,278 ) 3,962 Post-retirement plans' benefit obligation - end of year $ 21,201 $ 23,633 Change in plan assets Fair value of plan assets - beginning of year $ — $ — Employer contributions 1,667 960 Participant contributions 593 573 Benefits paid (2,260 ) (1,533 ) Fair value of plan assets - end of year $ — $ — Funded status Under-funded balance $ (21,201 ) $ (23,633 ) Amounts recognized in consolidated balance sheets Accrued post-retirement liability $ (21,201 ) $ (23,633 ) Amounts recognized in accumulated other comprehensive income (loss) Cumulative actuarial loss $ (1,613 ) $ (5,074 ) Prior service credit 35,937 39,419 Total $ 34,324 $ 34,345 Benefit payments, which reflect expected future service, are expected to be paid as follows: $2.1 million in 2016 ; $1.8 million in 2017 ; $1.9 million in 2018 ; $1.8 million in 2019 ; $1.9 million in 2020 ; and $9.2 million in 2021 through 2025 . The weighted average assumptions used to determine end of period benefit obligations: December 31, 2015 2014 Discount rate 3.90 % 3.60 % Current health care trend rate 8.00 % 8.00 % Ultimate health care trend rate 5.00 % 5.00 % Year rate reaches ultimate trend rate 2041 2042 Net periodic post-retirement credit consisted of the following components: Years Ended December 31, 2015 2014 2013 (In thousands) Service cost – benefit earned during the year $ 1,694 $ 895 $ 1,112 Interest cost on projected benefit obligations 819 638 665 Amortization of prior service credit (3,482 ) (4,296 ) (5,896 ) Amortization of net loss 183 — 130 Loss on settlement — — 1,726 Net periodic post-retirement credit $ (786 ) $ (2,763 ) $ (2,263 ) Prior service credits are amortized over the average remaining effective period to obtain full benefit eligibility for participants. Assumed health care cost trend rates have an effect on the amounts reported for the post-retirement health care benefit plans. The weighted average assumptions used to determine net periodic benefit expense follow: Years Ended December 31, 2015 2014 2013 Discount rate 3.60 % 4.25 % 3.45 % Current health care trend rate 8.00 % 8.00 % 8.10 % Ultimate health care trend rate 5.00 % 5.00 % 5.00 % Year rate reaches ultimate trend rate 2042 2045 2023 The effect of a 1% change in health care cost trend rates is as follows: 1% Point Increase 1% Point Decrease (In thousands) Service cost $ 268 $ (222 ) Interest cost $ 68 $ (58 ) Year-end accumulated post-retirement benefit obligation $ 1,443 $ (1,254 ) Pension Plan In 2013, we terminated the HollyFrontier Corporation Pension Plan (the "Plan"), a non-contributory defined benefit retirement plan that covered certain employees. In June 2013, we made contributions of $22.7 million to the Plan, which was sufficient for the Plan to settle its obligations to all participants including the premium paid to the non-participating annuity provider. In 2013, we recognized a pre-tax pension settlement charge of $39.5 million , of which $37.6 million was reclassified out of accumulated other comprehensive income, representing the irrevocable portion of our obligation. Net periodic pension expense was $42.6 million for the year ended December 31, 2013. Additionally, we had a program that provided transition benefit payments to certain employees that participated in a previously terminated defined benefit plan. The program extended through 2014 and provided payments subsequent to year-end provided the employee was employed by us on the last day of each year. The payments were based on each employee's years of service and eligible salary. Transition benefit costs under this program were $10.8 million and $12.5 million for the years ended December 31, 2014 and 2013 , respectively. In March 2015, we paid all remaining amounts owed to plan participants of $11.0 million . Retirement Restoration Plan We have an unfunded retirement restoration plan that provides for additional payments from us so that total retirement plan benefits for certain executives will be maintained at the levels provided in the retirement plan before the application of Internal Revenue Code limitations. We expensed $0.1 million , $1.2 million and $0.4 million for the years ended December 31, 2015 , 2014 and 2013 , respectively, in connection with this plan. The accrued liability reflected in the consolidated balance sheets was $2.8 million and $3.0 million at December 31, 2015 and 2014 , respectively. As of December 31, 2015 , the projected benefit obligation under this plan was $2.8 million . Annual benefit payments of $0.2 million are expected to be paid through 2025 , which reflect expected future service. Defined Contribution Plans We have a defined contribution “401(k)” plan that covers substantially all employees. Our contributions are based on an employee's eligible compensation and years of service. We also partially match the employee's contributions. We expensed $17.2 million , $16.1 million and $15.5 million for the years ended December 31, 2015 , 2014 and 2013 , respectively, in connection with these plans. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2015 | |
Leases, Operating [Abstract] | |
Lease Commitments | Lease Commitments We lease certain office and storage facilities, rail cars and other equipment under long-term operating leases, most of which contain renewal options. At December 31, 2015 , the minimum future rental commitments under operating leases having non-cancellable lease terms in excess of one year are as follows: (In thousands) 2016 $ 70,512 2017 65,807 2018 62,364 2019 58,664 2020 57,047 Thereafter 221,589 Total $ 535,983 Rental expense charged to operations was $107.3 million , $89.8 million and $72.6 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. For the years ended December 31, 2015 , 2014 and 2013 , rental expense included $8.9 million , $8.0 million and $8.3 million , respectively, in costs attributable to the HEP operations. |
Contingencies And Contractual C
Contingencies And Contractual Commitments | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies And Contractual Commitments | Contingencies and Contractual Commitments We are a party to various litigation and legal proceedings which we believe, based on advice of counsel, will not either individually or in the aggregate have a materially adverse effect on our financial condition, results of operations or cash flows. Contractual Commitments We have various long-term agreements (entered in the normal course of business) to purchase crude oil, natural gas, feedstocks and other resources to ensure we have adequate supplies to operate our refineries. The substantial majority of our purchase obligations are based on market prices or rates. These contracts expire in 2016 through 2030. We also have long-term agreements with third parties for the transportation and storage of crude oil, natural gas and feedstocks to our refineries and for terminal and storage services that expire in 2016 through 2033. At December 31, 2015 , the minimum future transportation and storage fees under transportation agreements having terms in excess of one year are as follows: (In thousands) 2016 $ 113,914 2017 102,613 2018 84,026 2019 75,514 2020 65,444 Thereafter 548,010 Total $ 989,521 Transportation and storage costs incurred under these agreements totaled $137.7 million , $118.0 million and $95.2 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. These amounts do not include contractual commitments under our long-term transportation agreements with HEP, as all transactions with HEP are eliminated in these consolidated financial statements. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our operations are organized into two reportable segments, Refining and HEP. Our operations that are not included in the Refining and HEP segments are included in Corporate and Other. Intersegment transactions are eliminated in our consolidated financial statements and are included in Consolidations and Eliminations. The Refining segment represents the operations of the El Dorado, Tulsa, Navajo, Cheyenne and Woods Cross Refineries and HFC Asphalt (aggregated as a reportable segment). Refining activities involve the purchase and refining of crude oil and wholesale and branded marketing of refined products, such as gasoline, diesel fuel and jet fuel. These petroleum products are primarily marketed in the Mid-Continent, Southwest and Rocky Mountain regions of the United States. Additionally, the Refining segment includes specialty lubricant products produced at our Tulsa Refineries that are marketed throughout North America and are distributed in Central and South America. HFC Asphalt operates various asphalt terminals in Arizona, New Mexico and Oklahoma. The HEP segment includes all of the operations of HEP, which owns and operates logistics and refinery assets consisting of petroleum product and crude oil pipelines, terminals, tankage, loading rack facilities and processing units in the Mid-Continent, Southwest and Rocky Mountain regions of the United States. The HEP segment also includes a 75% ownership interest in UNEV (a consolidated subsidiary of HEP) and a 50% and 25% ownership interest in the Frontier Pipeline and the SLC Pipeline, respectively. Revenues from the HEP segment are earned through transactions with unaffiliated parties for pipeline transportation, rental and terminalling operations as well as revenues relating to pipeline transportation services provided for our refining operations. Due to certain basis differences, our reported amounts for the HEP segment may not agree to amounts reported in HEP’s periodic public filings. The accounting policies for our segments are the same as those described in the summary of significant accounting policies (see Note 1). Refining HEP (1) Corporate and Other Consolidations and Eliminations Consolidated Total (In thousands) Year Ended December 31, 2015 Sales and other revenues $ 13,171,183 $ 358,875 $ 663 $ (292,801 ) $ 13,237,920 Depreciation and amortization $ 273,799 $ 61,236 $ 11,944 $ (828 ) $ 346,151 Income (loss) from operations $ 1,187,875 $ 181,778 $ (123,004 ) $ (2,296 ) $ 1,244,353 Capital expenditures $ 567,616 $ 94,516 $ 14,023 $ — $ 676,155 Total assets $ 6,840,545 $ 1,569,089 $ 289,225 $ (310,560 ) $ 8,388,299 Year Ended December 31, 2014 Sales and other revenues $ 19,706,225 $ 332,626 $ 2,103 $ (276,627 ) $ 19,764,327 Depreciation and amortization $ 293,871 $ 60,548 $ 9,790 $ (828 ) $ 363,381 Income (loss) from operations $ 491,106 $ 156,453 $ (129,874 ) $ (2,151 ) $ 515,534 Capital expenditures $ 435,598 $ 109,693 $ 19,530 $ — $ 564,821 Total assets $ 6,927,126 $ 1,472,098 $ 1,150,865 $ (320,042 ) $ 9,230,047 Year Ended December 31, 2013 Sales and other revenues $ 20,105,443 $ 307,053 $ 1,314 $ (253,250 ) $ 20,160,560 Depreciation and amortization $ 233,182 $ 64,701 $ 6,391 $ (828 ) $ 303,446 Income (loss) from operations $ 1,237,687 $ 133,522 $ (123,030 ) $ (2,105 ) $ 1,246,074 Capital expenditures $ 339,356 $ 56,613 $ 29,158 $ — $ 425,127 Total assets $ 7,094,558 $ 1,412,931 $ 1,881,121 $ (332,847 ) $ 10,055,763 (1) HEP acquired newly constructed naphtha fractionation and hydrogen generation units at our El Dorado Refinery in November 2015. As a result, we have recast our HEP segment information to include these assets and related capital expenditures that were previously presented under the Refining segment. HEP segment revenues from external customers were $66.7 million , $57.3 million and $53.4 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Supplemental Financial Informat
Supplemental Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Financial Information [Abstract] | |
Supplemental Financial Information | Supplemental Financial Information Borrowings pursuant to the HollyFrontier Credit Agreement are recourse to the assets of HollyFrontier, but not HEP. Furthermore, borrowings under the HEP Credit Agreement are recourse to HEP, but not to the assets of HFC with the exception of HEP Logistics Holdings, L.P., HEP’s general partner. Other than its investment in HEP, the assets of the general partner are insignificant. The following condensed financial information is provided for HollyFrontier Corporation (on a standalone basis, before consolidation of HEP), and for HEP and its consolidated subsidiaries (on a standalone basis, exclusive of HFC). Due to certain basis differences, our reported amounts for HEP may not agree to amounts reported in HEP’s periodic public filings. Condensed Consolidating Balance Sheet December 31, 2015 HollyFrontier Corp. Before Consolidation of HEP HEP Segment Consolidations and Eliminations Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 51,520 $ 15,013 $ — $ 66,533 Marketable securities 144,019 — — 144,019 Accounts receivable, net 355,020 41,075 (44,117 ) 351,978 Inventories 839,897 1,972 — 841,869 Prepayments and other 48,288 3,082 (7,704 ) 43,666 Total current assets 1,438,744 61,142 (51,821 ) 1,448,065 Properties, plants and equipment, net 3,270,804 1,090,373 (245,515 ) 4,115,662 Intangibles and other assets 2,410,879 417,574 (3,881 ) 2,824,572 Total assets $ 7,120,427 $ 1,569,089 $ (301,217 ) $ 8,388,299 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 738,024 $ 22,583 $ (44,117 ) $ 716,490 Income tax payable 8,142 — — 8,142 Accrued liabilities 117,346 26,341 (7,704 ) 135,983 Total current liabilities 863,512 48,924 (51,821 ) 860,615 Long-term debt 31,288 1,008,752 — 1,040,040 Liability to HEP 220,998 — (220,998 ) — Deferred income tax liabilities 497,475 431 — 497,906 Other long-term liabilities 125,684 59,306 (5,025 ) 179,965 Investment in HEP 129,961 — (129,961 ) — Equity – HollyFrontier 5,251,509 357,247 (355,341 ) 5,253,415 Equity – noncontrolling interest — 94,429 461,929 556,358 Total liabilities and equity $ 7,120,427 $ 1,569,089 $ (301,217 ) $ 8,388,299 Condensed Consolidating Balance Sheet December 31, 2014 HollyFrontier Corp. Before Consolidation of HEP HEP Segment Consolidations and Eliminations Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 565,155 $ 2,830 $ — $ 567,985 Marketable securities 474,110 — — 474,110 Accounts receivable, net 588,407 40,129 (38,631 ) 589,905 Inventories 1,033,191 1,940 — 1,035,131 Income tax receivable 11,719 — — 11,719 Prepayments and other 109,928 2,443 (8,223 ) 104,148 Total current assets 2,782,510 47,342 (46,854 ) 2,782,998 Properties, plants and equipment, net 2,867,941 1,062,430 (259,832 ) 3,670,539 Intangibles and other assets 2,418,926 362,326 (4,742 ) 2,776,510 Total assets $ 8,069,377 $ 1,472,098 $ (311,428 ) $ 9,230,047 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 1,125,146 $ 21,623 $ (38,631 ) $ 1,108,138 Income tax payable 19,642 — — 19,642 Accrued liabilities 88,116 26,321 (8,223 ) 106,214 Total current liabilities 1,232,904 47,944 (46,854 ) 1,233,994 Long-term debt 187,311 866,986 — 1,054,297 Liability to HEP 233,217 — (233,217 ) — Deferred income tax liabilities 663,912 367 — 664,279 Other long-term liabilities 135,474 47,170 (5,886 ) 176,758 Investment in HEP 99,618 — (99,618 ) — Equity – HollyFrontier 5,516,941 414,549 (407,906 ) 5,523,584 Equity – noncontrolling interest — 95,082 482,053 577,135 Total liabilities and equity $ 8,069,377 $ 1,472,098 $ (311,428 ) $ 9,230,047 Condensed Consolidating Statement of Income and Comprehensive Income Year Ended December 31, 2015 HollyFrontier HEP Segment Consolidations and Eliminations Consolidated (In thousands) Sales and other revenues $ 13,171,846 $ 358,875 $ (292,801 ) $ 13,237,920 Operating costs and expenses: Cost of products sold 10,525,610 — (286,392 ) 10,239,218 Lower of cost or market valuation inventory adjustment 226,979 — — 226,979 Operating expenses 960,352 103,305 (3,284 ) 1,060,373 General and administrative 108,290 12,556 — 120,846 Depreciation and amortization 299,233 61,236 (14,318 ) 346,151 Total operating costs and expenses 12,120,464 177,097 (303,994 ) 11,993,567 Income from operations 1,051,382 181,778 11,193 1,244,353 Other income (expense): Earnings (loss) of equity method investments 78,969 4,803 (87,510 ) (3,738 ) Interest income (expense) 6,098 (36,892 ) (9,285 ) (40,079 ) Loss on early extinguishment of debt (1,370 ) — — (1,370 ) Gain on sale of assets and other 8,916 486 — 9,402 92,613 (31,603 ) (96,795 ) (35,785 ) Income before income taxes 1,143,995 150,175 (85,602 ) 1,208,568 Income tax provision 405,832 228 — 406,060 Net income 738,163 149,947 (85,602 ) 802,508 Less net income attributable to noncontrolling interest (30 ) 3,971 58,466 62,407 Net income attributable to HollyFrontier stockholders $ 738,193 $ 145,976 $ (144,068 ) $ 740,101 Comprehensive income attributable to HollyFrontier stockholders $ 706,144 $ 138,920 $ (137,012 ) $ 708,052 Condensed Consolidating Statement of Income and Comprehensive Income Year Ended December 31, 2014 HollyFrontier HEP Segment Consolidations and Eliminations Consolidated (In thousands) Sales and other revenues $ 19,708,328 $ 332,626 $ (276,627 ) $ 19,764,327 Operating costs and expenses: Cost of products sold 17,500,601 — (272,216 ) 17,228,385 Lower of cost or market inventory valuation adjustment 397,478 — — 397,478 Operating expenses 1,041,571 104,801 (1,432 ) 1,144,940 General and administrative 103,785 10,824 — 114,609 Depreciation and amortization 317,149 60,548 (14,316 ) 363,381 Total operating costs and expenses 19,360,584 176,173 (287,964 ) 19,248,793 Income from operations 347,744 156,453 11,337 515,534 Other income (expense): Earnings (loss) of equity method investments 65,375 2,987 (70,369 ) (2,007 ) Interest income (expense) 6,221 (36,098 ) (9,339 ) (39,216 ) Loss on early extinguishment of debt — (7,677 ) — (7,677 ) Gain on sale of assets and other 866 — — 866 72,462 (40,788 ) (79,708 ) (48,034 ) Income before income taxes 420,206 115,665 (68,371 ) 467,500 Income tax provision 140,937 235 — 141,172 Net income 279,269 115,430 (68,371 ) 326,328 Less net income attributable to noncontrolling interest (25 ) 8,288 36,773 45,036 Net income attributable to HollyFrontier stockholders $ 279,294 $ 107,142 $ (105,144 ) $ 281,292 Comprehensive income attributable to HollyFrontier stockholders $ 306,366 $ 107,181 $ (105,183 ) $ 308,364 Condensed Consolidating Statement of Income and Comprehensive Income Year Ended December 31, 2013 HollyFrontier HEP Segment Consolidations and Eliminations Consolidated (In thousands) Sales and other revenues $ 20,106,757 $ 307,053 $ (253,250 ) $ 20,160,560 Operating costs and expenses: Cost of products sold 17,641,119 — (248,892 ) 17,392,227 Operating expenses 995,194 97,081 (1,425 ) 1,090,850 General and administrative 116,214 11,749 — 127,963 Depreciation and amortization 253,062 64,701 (14,317 ) 303,446 Total operating costs and expenses 19,005,589 173,531 (264,634 ) 18,914,486 Income from operations 1,101,168 133,522 11,384 1,246,074 Other income (expense): Earnings (loss) of equity method investments 52,288 2,826 (57,186 ) (2,072 ) Interest expense (6,338 ) (46,849 ) (9,307 ) (62,494 ) Loss on early extinguishment of debt (22,109 ) — — (22,109 ) 23,841 (44,023 ) (66,493 ) (86,675 ) Income before income taxes 1,125,009 89,499 (55,109 ) 1,159,399 Income tax provision 391,243 333 — 391,576 Net income 733,766 89,166 (55,109 ) 767,823 Less net income attributable to noncontrolling interest — 6,632 25,349 31,981 Net income attributable to HollyFrontier stockholders $ 733,766 $ 82,534 $ (80,458 ) $ 735,842 Comprehensive income attributable to HollyFrontier stockholders $ 743,013 $ 84,354 $ (82,278 ) $ 745,089 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2015 HollyFrontier Corp. Before Consolidation of HEP HEP Segment Consolidations and Eliminations Consolidated (In thousands) Cash flows from operating activities $ 836,858 $ 233,188 $ (90,420 ) $ 979,626 Cash flow from investing activities Additions to properties, plants and equipment (581,639 ) — — (581,639 ) Additions to properties, plants and equipment – HEP — (94,516 ) — (94,516 ) Purchase of equity method investment — (55,032 ) — (55,032 ) Proceeds from sale of assets 17,985 1,279 — 19,264 Purchases of marketable securities (509,338 ) — — (509,338 ) Sales and maturities of marketable securities 839,513 — — 839,513 (233,479 ) (148,269 ) — (381,748 ) Cash flows from financing activities Net borrowings under credit agreement – HEP — 141,000 — 141,000 Redemption of senior notes - HFC (155,156 ) — — (155,156 ) Purchase of treasury stock (742,823 ) — — (742,823 ) Dividends (246,908 ) — — (246,908 ) Distributions to noncontrolling interest — (173,688 ) 90,420 (83,268 ) Distribution from HEP 62,000 (62,000 ) — — Contribution from general partner (27,623 ) 27,623 — — Other, net (6,504 ) (5,671 ) — (12,175 ) (1,117,014 ) (72,736 ) 90,420 (1,099,330 ) Cash and cash equivalents Increase (decrease) for the period (513,635 ) 12,183 — (501,452 ) Beginning of period 565,155 2,830 — 567,985 End of period $ 51,520 $ 15,013 $ — $ 66,533 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2014 HollyFrontier Corp. Before Consolidation of HEP HEP Segment Consolidations and Eliminations Consolidated (In thousands) Cash flows from operating activities $ 652,186 $ 186,903 $ (80,493 ) $ 758,596 Cash flows from investing activities: Additions to properties, plants and equipment (455,128 ) — — (455,128 ) Additions to properties, plants and equipment – HEP — (109,693 ) — (109,693 ) Proceeds from sale of assets 16,633 — — 16,633 Purchases of marketable securities (1,025,602 ) — — (1,025,602 ) Sales and maturities of marketable securities 1,276,447 — — 1,276,447 Other, net 5,021 — — 5,021 (182,629 ) (109,693 ) — (292,322 ) Cash flows from financing activities: Net borrowings under credit agreement – HEP — 208,000 — 208,000 Redemption of senior notes - HEP — (156,188 ) — (156,188 ) Purchase of treasury stock (158,847 ) — — (158,847 ) Dividends (647,197 ) — — (647,197 ) Distributions to noncontrolling interest — (158,695 ) 80,493 (78,202 ) Contribution from general partner (29,734 ) 29,734 — — Excess tax benefit from equity-based compensation 2,040 — — 2,040 Other, net (4,415 ) (3,583 ) — (7,998 ) (838,153 ) (80,732 ) 80,493 (838,392 ) Cash and cash equivalents Increase (decrease) for the period: (368,596 ) (3,522 ) — (372,118 ) Beginning of period 933,751 6,352 — 940,103 End of period $ 565,155 $ 2,830 $ — $ 567,985 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2013 HollyFrontier Corp. Before Consolidation of HEP HEP Segment Consolidations and Eliminations Consolidated (In thousands) Cash flows from operating activities $ 757,204 $ 183,380 $ (71,410 ) $ 869,174 Cash flows from investing activities: Additions to properties, plants and equipment (368,514 ) — — (368,514 ) Additions to properties, plants and equipment – HEP — (56,613 ) — (56,613 ) Proceeds from sale of assets 5,071 2,731 — 7,802 Acquisition of trucking operations (11,301 ) — — (11,301 ) Purchases of marketable securities (935,512 ) — — (935,512 ) Sales and maturities of marketable securities 846,143 — — 846,143 Other, net (8,740 ) — — (8,740 ) (472,853 ) (53,882 ) — (526,735 ) Cash flows from financing activities: Net borrowings under credit agreement – HEP — (58,000 ) — (58,000 ) Redemptions of senior notes (300,973 ) — — (300,973 ) Proceeds from sale of HEP common units 73,444 — — 73,444 Proceeds from common unit offerings – HEP — 73,444 — 73,444 Purchase of treasury stock (225,023 ) — — (225,023 ) Contribution from general partner (6,011 ) 6,011 — — Dividends (645,920 ) — — (645,920 ) Distributions to noncontrolling interest — (142,611 ) 71,410 (71,201 ) Excess tax benefit from equity-based compensation 2,562 — — 2,562 Other, net (1,141 ) (7,227 ) — (8,368 ) (1,103,062 ) (128,383 ) 71,410 (1,160,035 ) Cash and cash equivalents Increase (decrease) for the period: (818,711 ) 1,115 — (817,596 ) Beginning of period 1,752,462 5,237 — 1,757,699 End of period $ 933,751 $ 6,352 $ — $ 940,103 |
Significant Customers
Significant Customers | 12 Months Ended |
Dec. 31, 2015 | |
Significant Customers [Abstract] | |
Significant Customers | Significant Customers All revenues are domestic revenues, except for sales of fuel oil for export into Mexico. We have two significant customers (Shell Oil and Sinclair), each of which has historically accounted for 10% or more of our annual revenues. Shell Oil accounted for $1,252.6 million ( 9% ), $2,097.4 million ( 11% ) and $1,830.5 million ( 9% ) for the years ended December 31, 2015 , 2014 and 2013 , respectively, and Sinclair accounted for $1,104.9 million ( 8% ), $2,018.8 million ( 10% ) and $2,134.3 million ( 11% ) of our revenues for the years ended December 31, 2015 , 2014 and 2013 , respectively. Our export sales were less than 3% of our revenues for the years ended December 31, 2015 , 2014 and 2013 . |
Quarterly Information (Unaudite
Quarterly Information (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Information | Quarterly Information (Unaudited) First Quarter Second Quarter Third Quarter Fourth Quarter Year (In thousands, except per share data) Year Ended December 31, 2015 Sales and other revenues $ 3,006,626 $ 3,701,912 $ 3,585,823 $ 2,943,559 $ 13,237,920 Operating costs and expenses $ 2,618,004 $ 3,112,080 $ 3,263,218 $ 3,000,265 $ 11,993,567 Income (loss) from operations (1) $ 388,622 $ 589,832 $ 322,605 $ (56,706 ) $ 1,244,353 Income (loss) before income taxes $ 372,389 $ 580,177 $ 320,673 $ (64,671 ) $ 1,208,568 Net income (loss) attributable to HollyFrontier stockholders $ 226,876 $ 360,824 $ 196,322 $ (43,921 ) $ 740,101 Net income (loss) per share attributable to HollyFrontier stockholders - basic $ 1.16 $ 1.88 $ 1.05 $ (0.24 ) $ 3.91 Net income (loss) per share attributable to HollyFrontier stockholders - diluted $ 1.16 $ 1.88 $ 1.04 $ (0.24 ) $ 3.90 Dividends per common share $ 0.32 $ 0.33 $ 0.33 $ 0.33 $ 1.31 Average number of shares of common stock outstanding: Basic 195,069 191,355 187,208 181,460 188,731 Diluted 195,121 191,454 187,344 181,460 188,940 Year Ended December 31, 2014 Sales and other revenues $ 4,791,053 $ 5,372,600 $ 5,317,555 $ 4,283,119 $ 19,764,327 Operating costs and expenses $ 4,520,057 $ 5,076,255 $ 5,014,944 $ 4,637,537 $ 19,248,793 Income from operations (2) $ 270,996 $ 296,345 $ 302,611 $ (354,418 ) $ 515,534 Income before income taxes $ 251,576 $ 286,485 $ 290,774 $ (361,335 ) $ 467,500 Net income attributable to HollyFrontier stockholders $ 152,061 $ 176,429 $ 175,006 $ (222,204 ) $ 281,292 Net income per share attributable to HollyFrontier stockholders - basic $ 0.76 $ 0.89 $ 0.88 $ (1.13 ) $ 1.42 Net income per share attributable to HollyFrontier stockholders - diluted $ 0.76 $ 0.89 $ 0.88 $ (1.13 ) $ 1.42 Dividends per common share $ 0.80 $ 0.82 $ 0.82 $ 0.82 $ 3.26 Average number of shares of common stock outstanding: Basic 198,297 198,139 197,261 195,310 197,243 Diluted 198,924 198,380 197,535 195,310 197,428 (1) For 2015, income from operations reflects non-cash lower of cost or market inventory valuation reductions of $6.5 million and $135.5 million for the first and second quarters, respectively, and charges of $225.5 million and $143.6 million for the third and fourth quarters, respectively. (2) Loss from operations for the fourth quarter of 2014 reflects a non-cash lower of cost or market inventory valuation charge of $397.5 million . |
Description of Business and S30
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business: References herein to HollyFrontier Corporation (“HollyFrontier”) include HollyFrontier and its consolidated subsidiaries. In accordance with the Securities and Exchange Commission’s (“SEC”) “Plain English” guidelines, this Annual Report on Form 10-K has been written in the first person. In these financial statements, the words “we,” “our,” “ours” and “us” refer only to HollyFrontier and its consolidated subsidiaries or to HollyFrontier or an individual subsidiary and not to any other person, with certain exceptions. Generally, the words “we,” “our,” “ours” and “us” include Holly Energy Partners, L.P. (“HEP”) and its subsidiaries as consolidated subsidiaries of HollyFrontier, unless when used in disclosures of transactions or obligations between HEP and HollyFrontier or its other subsidiaries. These financial statements contain certain disclosures of agreements that are specific to HEP and its consolidated subsidiaries and do not necessarily represent obligations of HollyFrontier. When used in descriptions of agreements and transactions, “HEP” refers to HEP and its consolidated subsidiaries. We are principally an independent petroleum refiner that produces high-value light products such as gasoline, diesel fuel, jet fuel, specialty lubricant products, and specialty and modified asphalt. We own and operate petroleum refineries that serve markets throughout the Mid-Continent, Southwest and Rocky Mountain regions of the United States. As of December 31, 2015 , we: • owned and operated a petroleum refinery in El Dorado, Kansas (the “El Dorado Refinery”), two refinery facilities located in Tulsa, Oklahoma (collectively, the “Tulsa Refineries”), a refinery in Artesia, New Mexico that is operated in conjunction with crude oil distillation and vacuum distillation and other facilities situated 65 miles away in Lovington, New Mexico (collectively, the “Navajo Refinery”), a refinery located in Cheyenne, Wyoming (the “Cheyenne Refinery”) and a refinery in Woods Cross, Utah (the “Woods Cross Refinery”); • owned and operated HollyFrontier Asphalt Company (“HFC Asphalt”), formerly known as NK Asphalt Partners, which operates various asphalt terminals in Arizona, New Mexico and Oklahoma; and • owned a 39% interest in HEP, a consolidated variable interest entity (“VIE”), which includes our 2% general partner interest. |
Principles of Consolidation | Principles of Consolidation: Our consolidated financial statements include our accounts and the accounts of partnerships and joint ventures that we control through an ownership interest greater than 50% or through a controlling financial interest with respect to variable interest entities. All significant intercompany transactions and balances have been eliminated. |
Variable Interest Entity | Variable Interest Entities: HEP is a VIE as defined under U.S. generally accepted accounting principles (“GAAP”). A VIE is a legal entity whose equity owners do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support or, as a group, the equity holders lack the power, through voting rights, to direct the activities that most significantly impact the entity's financial performance, the obligation to absorb the entity's expected losses or rights to expected residual returns. As the general partner of HEP, we have the sole ability to direct the activities of HEP that most significantly impact HEP's financial performance, and therefore we consolidate HEP. |
Use of Estimates | Use of Estimates : The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Cash Equivalents | Cash Equivalents: We consider all highly liquid instruments with a maturity of three months or less at the date of purchase to be cash equivalents. Cash equivalents are stated at cost, which approximates market value and are primarily invested in highly-rated instruments issued by government or municipal entities with strong credit standings. |
Marketable Securities | Marketable Securities: We consider all marketable debt securities with maturities greater than three months at the date of purchase to be marketable securities. Our marketable securities consist of certificates of deposit, commercial paper, corporate debt securities and government and municipal debt securities with the maximum maturity or put date of any individual issue generally not more than two years, while the maximum duration of the portfolio of investments is not greater than one year. These instruments are classified as available-for-sale, and as a result, are reported at fair value. Unrealized gains and losses, net of related income taxes, are reported as a component of accumulated other comprehensive income. |
Balance Sheet Offsetting | Balance Sheet Offsetting : We purchase and sell inventories of crude oil with certain same-parties that are net settled in accordance with contractual net settlement provisions. Our policy is to present such balances on a net basis because it more appropriately presents our economic resources (accounts receivable) and claims against us (accounts payable) and the future cash flows associated with such assets and liabilities. |
Accounts Receivable | Accounts Receivable: Our accounts receivable consist of amounts due from customers that are primarily companies in the petroleum industry. Credit is extended based on our evaluation of the customer's financial condition, and in certain circumstances collateral, such as letters of credit or guarantees, is required. We reserve for doubtful accounts based on our historical loss experience as well as specific accounts identified as high risk, which historically have been minimal. Credit losses are charged to the allowance for doubtful accounts when an account is deemed uncollectible. Our allowance for doubtful accounts was $2.3 million and $2.4 million at December 31, 2015 and 2014 , respectively. Accounts receivable attributable to crude oil resales generally represent the sell side of excess crude oil sales to other purchasers and / or users in cases when our crude oil supplies are in excess of our immediate needs as well as certain reciprocal buy / sell exchanges of crude oil. At times we enter into such buy / sell exchanges to facilitate the delivery of quantities to certain locations. In many cases, we enter into net settlement agreements relating to the buy / sell arrangements, which may mitigate credit risk. |
Inventories | Inventories: Inventories are stated at the lower of cost, using the last-in, first-out (“LIFO”) method for crude oil, unfinished and finished refined products and the average cost method for materials and supplies, or market. Cost, consisting of raw material, transportation and conversion costs, is determined using the LIFO inventory valuation methodology and market is determined using current replacement costs. Under the LIFO method, the most recently incurred costs are charged to cost of sales and inventories are valued at the earliest acquisition costs. In periods of rapidly declining prices, LIFO inventories may have to be written down to market value due to the higher costs assigned to LIFO layers in prior periods. In addition, the use of the LIFO inventory method may result in increases or decreases to cost of sales in years that inventory volumes decline as the result of charging cost of sales with LIFO inventory costs generated in prior periods. An actual valuation of inventory under the LIFO method is made at the end of each year based on the inventory levels at that time. Accordingly, interim LIFO calculations are based on management's estimates of expected year-end inventory levels and are subject to the final year-end LIFO inventory valuation. At December 31, 2015 , and 2014 , market values had fallen below historical LIFO inventory costs and, as a result, we recorded lower of cost or market inventory valuation reserves of $624.5 million and $397.5 million , respectively. |
Derivative Instruments | Derivative Instruments: All derivative instruments are recognized as either assets or liabilities in our consolidated balance sheets and are measured at fair value. Changes in the derivative instrument's fair value are recognized in earnings unless specific hedge accounting criteria are met. See Note 12 for additional information. |
Long-lived assets | Long-lived assets: We calculate depreciation and amortization based on estimated useful lives of our assets. We evaluate long-lived assets for potential impairment by identifying whether indicators of impairment exist and, if so, assessing whether the long-lived assets are recoverable from estimated future undiscounted cash flows. The actual amount of impairment loss, if any, to be recorded is equal to the amount by which a long-lived asset's carrying value exceeds its fair value, which is generally determined under an income approach using the forecasted cash flows associated with the underlying asset. Estimates of future cash flows require subjective assumptions with regard to future operating results and actual results could differ from those estimates. No impairments of long-lived assets were recorded during the years ended December 31, 2015 , 2014 and 2013 . |
Asset Retirement Obligations | Asset Retirement Obligations: We record legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and / or the normal operation of long-lived assets. The fair value of the estimated cost to retire a tangible long-lived asset is recorded as a liability with the associated retirement costs capitalized as part of the asset's carrying amount in the period in which it is incurred and when a reasonable estimate of the fair value of the liability can be made. If a reasonable estimate cannot be made at the time the liability is incurred, we record the liability when sufficient information is available to estimate the liability's fair value. Certain of our refining assets have no recorded liability for asset retirement obligations since the timing of any retirement and related costs are currently indeterminable. Our asset retirement obligations were $20.7 million and $19.8 million at December 31, 2015 and 2014 , respectively, which are included in “Other long-term liabilities” in our consolidated balance sheets. Accretion expense was insignificant for the years ended December 31, 2015 , 2014 and 2013 . |
Intangibles and Goodwill | Intangibles and Goodwill: Intangible assets are assets (other than financial assets) that lack physical substance. Goodwill represents the excess of the cost of an acquired entity over the fair value of the assets acquired less liabilities assumed. Goodwill acquired in a business combination and intangible assets with indefinite useful lives are not amortized while, intangible assets with finite useful lives are amortized on a straight-line basis. Goodwill and intangible assets not subject to amortization are tested for impairment annually or more frequently if events or changes in circumstances indicate the asset might be impaired. Our analysis entails a comparison of the estimated fair value of these assets that are derived using a combination of both income (discounted future expected net cash flows) and comparable market approaches against their respective carrying values. Estimates of future cash flows and fair value of assets require subjective assumptions with regard to future operating results and actual results could differ from those estimates. In addition to goodwill, our consolidated HEP assets include a third-party transportation agreement that currently generates minimum annual cash inflows of $26.2 million and has an expected remaining term through 2035. The transportation agreement is being amortized on a straight-line basis through 2035 that results in annual amortization expense of $2.0 million . The balance of this transportation agreement was $38.5 million and $40.5 million at December 31, 2015 and 2014 , respectively, and is presented net of accumulated amortization of $21.7 million and $19.7 million , respectively, in “Intangibles and other” in our consolidated balance sheets. There were no impairments of intangible assets or goodwill during the years ended December 31, 2015 , 2014 and 2013 . |
Investments in Joint Ventures | Investments in Joint Ventures: We consolidate the financial and operating results of joint ventures in which we have an ownership interest of greater than 50% and use the equity method of accounting for investments in which we have a noncontrolling interest. Under the equity method of accounting, we record our pro-rata share of earnings, and contributions to and distributions from joint ventures as adjustments to our investment balance. HEP has a 50% joint venture interest in Frontier Pipeline Company, the owner of a pipeline running from Wyoming to Frontier Station, Utah (the “Frontier Pipeline”), and a 25% joint venture interest in SLC Pipeline, LLC, the owner of a pipeline (the “SLC Pipeline”) that serves refineries in the Salt Lake City, Utah area, that are accounted for using the equity method of accounting. As of December 31, 2015 , HEP's underlying equity in the Frontier Pipeline was $12.6 million compared to its recorded investment balance of $55.2 million , a difference of $42.6 million . The difference is attributable to the fair value of the fixed assets purchased. As of December 31, 2015 , HEP's underlying equity in the SLC Pipeline was $57.7 million compared to its recorded investment balance of $24.3 million , a difference of $33.4 million . This is attributable to the difference between HEP's contributed capital and its allocated equity at formation of the SLC Pipeline. The differences are being amortized as adjustments to HEP's pro-rata share of earnings in the joint ventures. |
Revenue Recognition | Revenue Recognition: Refined product sales and related cost of sales are recognized when products are shipped and title has passed to customers. HEP recognizes pipeline transportation revenues as products are shipped through its pipelines. All revenues are reported inclusive of shipping and handling costs billed and exclusive of any taxes billed to customers. Shipping and handling costs incurred are reported in cost of products sold. |
Depreciation | Depreciation: Depreciation is provided by the straight-line method over the estimated useful lives of the assets, primarily 20 to 25 years for refining, pipeline and terminal facilities, 10 to 40 years for buildings and improvements, 5 to 30 years for other fixed assets and 5 years for vehicles. |
Cost Classifications | Cost Classifications: Costs of products sold include the cost of crude oil, other feedstocks, blendstocks and purchased finished products, inclusive of transportation costs. We purchase crude oil that at times exceeds the supply needs of our refineries. Quantities in excess of our needs are sold at market prices to purchasers of crude oil that are recorded on a gross basis with the sales price recorded as revenues and the corresponding acquisition cost as cost of products sold. Additionally, we enter into buy / sell exchanges of crude oil with certain parties to facilitate the delivery of quantities to certain locations that are netted at cost. Operating expenses include direct costs of labor, maintenance materials and services, utilities, marketing expense and other direct operating costs. General and administrative expenses include compensation, professional services and other support costs. |
Deferred Maintenance Costs | Deferred Maintenance Costs: Our refinery units require regular major maintenance and repairs which are commonly referred to as “turnarounds.” Catalysts used in certain refinery processes also require regular “change-outs.” The required frequency of the maintenance varies by unit and by catalyst, but generally is every two to five years. Turnaround costs are deferred and amortized over the period until the next scheduled turnaround. Other repairs and maintenance costs are expensed when incurred. Deferred turnaround and catalyst amortization expense was $107.8 million , $96.9 million and $84.8 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Environmental Costs | Environmental Costs: Environmental costs are charged to operating expenses if they relate to an existing condition caused by past operations and do not contribute to current or future revenue generation. Liabilities are recorded when site restoration and environmental remediation, cleanup and other obligations are either known or considered probable and can be reasonably estimated. Such estimates are undiscounted and require judgment with respect to costs, time frame and extent of required remedial and clean-up activities and are subject to periodic adjustments based on currently available information. Recoveries of environmental costs through insurance, indemnification arrangements or other sources are included in other assets to the extent such recoveries are considered probable. |
Contingencies | Contingencies: We are subject to proceedings, lawsuits and other claims related to environmental, labor, product and other matters. We are required to assess the likelihood of any adverse judgments or outcomes to these matters as well as potential ranges of probable losses. A determination of the amount of reserves required, if any, for these contingencies is made after careful analysis of each individual issue. The required reserves may change in the future due to new developments in each matter or changes in approach such as a change in settlement strategy in dealing with these matters. |
Income Taxes | Income Taxes: Provisions for income taxes include deferred taxes resulting from temporary differences in income for financial and tax purposes, using the liability method of accounting for income taxes. The liability method requires the effect of tax rate changes on deferred income taxes to be reflected in the period in which the rate change was enacted. The liability method also requires that deferred tax assets be reduced by a valuation allowance unless it is more likely than not that the assets will be realized. Potential interest and penalties related to income tax matters are recognized in income tax expense. We believe we have appropriate support for the income tax positions taken and to be taken on our income tax returns and that our accruals for tax liabilities are adequate for all open years based on an assessment of many factors, including past experience and interpretations of tax law applied to the facts of each matter. |
New Accounting Pronouncements | New Accounting Pronouncements Revenue Recognition In May 2014, an accounting standard update (ASU 2014-09, “Revenue from Contracts with Customers”) was issued requiring revenue to be recognized when promised goods or services are transferred to customers in an amount that reflects the expected consideration for these goods or services. This standard has an effective date of January 1, 2018, and we are evaluating the impact of this standard. Debt Issuance Costs In April 2015, an accounting standard update (ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs”) was issued requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of a respective debt liability. We adopted this standard effective December 31, 2015 (on a retrospective basis) and have recast our December 31, 2014 consolidated balance sheet. As a result, $0.6 million of deferred debt issuance costs previously classified as non-current assets under “Intangibles and other assets” have been reclassified as a direct reduction to long-term debt. Deferred income taxes In November 2015, an accounting standard update (ASU 2015-17, “Balance Sheet Classification of Deferred Taxes”) was issued requiring deferred tax liabilities and assets to be classified as noncurrent amounts. We adopted this standard effective December 31, 2015 (on a retrospective basis) and have recast our December 31, 2014 consolidated balance sheet. As a result, $17.4 million of deferred income tax liabilities previously classified as current liabilities have been reclassified as noncurrent deferred income tax liabilities. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Carrying Amounts and Estimated Fair Values of Marketable Securities, Derivatives and Senior Notes | The carrying amounts and estimated fair values of investments in marketable securities, derivative instruments and senior notes at December 31, 2015 and December 31, 2014 were as follows: Fair Value by Input Level Financial Instrument Carrying Amount Fair Value Level 1 Level 2 Level 3 (In thousands) December 31, 2015 Assets: Marketable securities $ 144,019 $ 144,019 $ — $ 144,019 $ — NYMEX futures contracts 3,469 3,469 3,469 — — Commodity price swaps 37,097 37,097 — 37,097 — HEP interest rate swaps 304 304 — 304 — Total assets $ 184,889 $ 184,889 $ 3,469 $ 181,420 $ — Liabilities: Commodity price swaps $ 98,930 $ 98,930 $ — $ 98,930 $ — HEP senior notes 296,752 295,500 — 295,500 — HEP interest rate swaps 114 114 — 114 — Total liabilities $ 395,796 $ 394,544 $ — $ 394,544 $ — Fair Value by Input Level Financial Instrument Carrying Amount Fair Value Level 1 Level 2 Level 3 (In thousands) December 31, 2014 Assets: Marketable securities $ 474,110 $ 474,110 $ — $ 474,110 $ — NYMEX futures contract 17,619 17,619 17,619 — — Commodity price swaps 208,296 208,296 — 208,296 — HEP interest rate swaps 1,019 1,019 — 1,019 — Total assets $ 701,044 $ 701,044 $ 17,619 $ 683,425 $ — Liabilities: Commodity price swaps $ 196,897 $ 196,897 $ — $ 196,897 $ — HollyFrontier senior notes 154,144 155,250 — 155,250 — HEP senior notes 295,986 291,000 — 291,000 — HEP interest rate swaps 1,065 1,065 — 1,065 — Total liabilities $ 648,092 $ 644,212 $ — $ 644,212 $ — |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table presents the changes in fair value of our Level 3 assets and liabilities (all related to derivative instruments) for the years ended December 31, 2015 and 2014 : Years Ended December 31, Level 3 Financial Instruments 2015 2014 (In thousands) Liability balance at beginning of period $ — $ (35,318 ) Change in fair value: Recognized in other comprehensive income 3,852 304,275 Recognized in cost of products sold — 14,876 Settlement date fair value of contractual maturities: Recognized in sales and other revenues (3,852 ) (88,326 ) Recognized in cost of products sold — (21,848 ) Transfer out of Level 3 — (173,659 ) Liability balance at end of period $ — $ — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule Of Earnings Per Share | The following is a reconciliation of the denominators of the basic and diluted per share computations for net income attributable to HollyFrontier stockholders: Years Ended December 31, 2015 2014 2013 (In thousands, except per share data) Net income attributable to HollyFrontier stockholders $ 740,101 $ 281,292 $ 735,842 Participating securities' share in earnings 2,306 820 2,754 Net income attributable to common shares $ 737,795 $ 280,472 $ 733,088 Average number of shares of common stock outstanding 188,731 197,243 200,419 Effect of dilutive variable restricted shares and performance share units (1) 209 185 815 Average number of shares of common stock outstanding assuming dilution 188,940 197,428 201,234 Basic earnings per share $ 3.91 $ 1.42 $ 3.66 Diluted earnings per share $ 3.90 $ 1.42 $ 3.64 (1) Excludes anti-dilutive restricted and performance share units of: 89 356 166 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Share-based Compensation [Abstract] | |
Summary Of Restricted Stock Activity | A summary of restricted stock and restricted stock unit activity and changes during the year ended December 31, 2015 is presented below: Restricted Stock and Restricted Stock Units Grants Weighted Average Grant Date Fair Value Aggregate Intrinsic Value ($000) Outstanding at January 1, 2015 (non-vested) 669,777 $ 44.12 Granted 447,544 49.92 Vesting (transfer/conversion to common stock) (337,159 ) 42.03 Forfeited (57,637 ) 48.40 Outstanding at December 31, 2015 (non-vested) 722,525 $ 48.35 $ 27,950 |
Summary Of Performance Share Unit Activity | A summary of performance share unit activity and changes during the year ended December 31, 2015 is presented below: Performance Share Units Grants Outstanding at January 1, 2015 (non-vested) 725,054 Granted 209,589 Vesting and transfer of ownership to recipients (209,592 ) Forfeited (87,113 ) Outstanding at December 31, 2015 (non-vested) 637,938 |
Cash and Cash Equivalents and34
Cash and Cash Equivalents and Investments in Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | |
Available-For-Sale Securities | The following is a summary of our marketable securities: Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value (Net Carrying Amount) (In thousands) December 31, 2015 Commercial paper $ 22,876 $ 1 $ (2 ) $ 22,875 Corporate debt securities 32,311 — (41 ) 32,270 State and political subdivisions debt securities 88,935 6 (67 ) 88,874 Total marketable securities $ 144,122 $ 7 $ (110 ) $ 144,019 December 31, 2014 Certificates of deposit $ 54,000 $ 10 $ — $ 54,010 Commercial paper 52,297 7 (4 ) 52,300 Corporate debt securities 136,181 1 (94 ) 136,088 State and political subdivisions debt securities 231,819 5 (112 ) 231,712 Total marketable securities $ 474,297 $ 23 $ (210 ) $ 474,110 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory, Net [Abstract] | |
Inventory Components | Inventory consists of the following components: December 31, 2015 2014 (In thousands) Crude oil $ 518,922 $ 581,592 Other raw materials and unfinished products (1) 214,832 204,467 Finished products (2) 603,568 531,523 Lower of cost or market reserve (624,457 ) (397,478 ) Process chemicals (3) 4,477 4,028 Repairs and maintenance supplies and other 124,527 110,999 Total inventory $ 841,869 $ 1,035,131 (1) Other raw materials and unfinished products include feedstocks and blendstocks, other than crude. (2) Finished products include gasolines, jet fuels, diesels, lubricants, asphalts, LPG’s and residual fuels. (3) Process chemicals include additives and other chemicals. |
Properties, Plants and Equipm36
Properties, Plants and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Components Of Property, Plants And Equipment | The components of properties, plants and equipment are as follows: December 31, 2015 2014 (In thousands) Land, buildings and improvements $ 305,712 $ 255,260 Refining facilities 2,833,125 2,634,432 Pipelines and terminals 1,321,398 1,226,923 Transportation vehicles 21,289 35,178 Other fixed assets 158,401 136,545 Construction in progress 850,264 564,103 5,490,189 4,852,441 Accumulated depreciation (1,374,527 ) (1,181,902 ) $ 4,115,662 $ 3,670,539 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Carrying Amounts Of Long-Term Debt | The carrying amounts of long-term debt are as follows: December 31, 2015 2014 (In thousands) 6.875% Senior Notes Principal $ — $ 150,000 Unamortized premium — 4,144 — 154,144 Financing Obligation 31,288 33,167 Total HollyFrontier long-term debt 31,288 187,311 HEP Credit Agreement 712,000 571,000 HEP 6.5% Senior Notes Principal 300,000 300,000 Unamortized discount and debt issuance costs (3,248 ) (4,014 ) 296,752 295,986 Total HEP long-term debt 1,008,752 866,986 Total long-term debt $ 1,040,040 $ 1,054,297 |
Principal Maturities Of Long-Term Debt | Principal maturities of long-term debt are as follows: Years Ending December 31, (In thousands) 2016 $ 2,121 2017 2,393 2018 714,700 2019 3,046 2020 303,437 Thereafter 17,591 Total $ 1,043,288 |
Derivative Instruments and He38
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following table presents the pre-tax effect on other comprehensive income (“OCI”) and earnings due to fair value adjustments and maturities of commodity price swaps and forward sales under hedge accounting: Unrealized Gain (Loss) Recognized in OCI Gain (Loss) Recognized in Earnings Due to Settlements Gain (Loss) Attributable to Hedge Ineffectiveness Recognized in Earnings Location Amount Location Amount (In thousands) Year Ended December 31, 2015 Commodity price swaps Change in fair value $ (3,983 ) Sales and other revenues $ 245,819 Sales and other revenues $ (274 ) Gain reclassified to earnings due to settlements (49,592 ) Cost of products sold (179,700 ) Cost of products sold 4,376 Amortization of discontinued hedges reclassified to earnings 1,080 Operating expenses (17,607 ) Operating expenses 547 Total $ (52,495 ) $ 48,512 $ 4,649 Year Ended December 31, 2014 Commodity price swaps Change in fair value $ 107,518 Sales and other revenues $ 88,326 Sales and other revenues $ 274 Gain reclassified to earnings due to settlements (52,884 ) Cost of products sold (37,313 ) Cost of products sold (4,377 ) Amortization of discontinued hedges reclassified to earnings 1,080 Operating expenses 791 Operating expenses (547 ) Total $ 55,714 $ 51,804 $ (4,650 ) Year Ended December 31, 2013 Commodity price swaps Change in fair value $ (8,808 ) Sales and other revenues $ (20,060 ) Gain reclassified to earnings due to settlements (16,410 ) Cost of products sold 38,949 Sales and other revenues $ 45 Amortization of discontinued hedges reclassified to earnings 900 Operating expenses (3,379 ) Cost of products sold 515 Total $ (24,318 ) $ 15,510 $ 560 |
Summary Of Notional Amounts of Outstanding Derivatives Serving as Price Risk Hedges | As of December 31, 2015 , we have the following notional contract volumes related to outstanding derivative instruments serving as cash flow hedges against price risk on forecasted transactions: Notional Contract Volumes by Year of Maturity Derivative instruments Total Outstanding Notional 2016 2017 Unit of Measure Natural gas price swaps - long 19,200,000 9,600,000 9,600,000 MMBTU Forward gasoline and diesel contracts - long 525,000 525,000 — Barrels Forward gasoline and diesel contracts - short 625,000 625,000 — Barrels Physical crude contracts - short 38,000 38,000 — Barrels |
Schedule of Realized Gain (Loss) | The following table presents the pre-tax effect on income due to maturities and fair value adjustments of our economic hedges: Years Ended December 31, Location of Gain (Loss) Recognized in Income 2015 2014 2013 (In thousands) Cost of products sold $ 48,082 $ 68,509 $ 20,751 Operating expenses (12,003 ) (185 ) (5,250 ) Total $ 36,079 $ 68,324 $ 15,501 |
Schedule of Notional Amounts of Outstanding Derivatives Serving as Economic Hedges | As of December 31, 2015 , we have the following notional contract volumes related to our outstanding derivative contracts serving as economic hedges: Notional Contract Volumes by Year of Maturity Derivative Instrument Total Outstanding Notional 2016 2017 Unit of Measure Crude price swaps (basis spread) - long 11,712,000 11,712,000 — Barrels Natural gas price swaps (basis spread) - long 20,616,000 10,308,000 10,308,000 MMBTU Natural gas price swaps - long 19,200,000 9,600,000 9,600,000 MMBTU Natural gas price swaps - short 19,200,000 9,600,000 9,600,000 MMBTU NYMEX futures (WTI) - short 1,840,000 1,840,000 — Barrels |
Schedule of Interest Rate Derivatives | The following table presents the pre-tax effect on other comprehensive income and earnings due to fair value adjustments and maturities of HEP's interest rate swaps under hedge accounting: Unrealized Gain (Loss) Recognized in OCI Loss Recognized in Earnings Due to Settlements Location Amount (In thousands) Year Ended December 31, 2015 Interest rate swaps Change in fair value $ (1,864 ) Loss reclassified to earnings due to settlements 2,100 Interest expense $ (2,100 ) Total $ 236 $ (2,100 ) Year Ended December 31, 2014 Interest rate swaps Change in fair value $ (2,104 ) Loss reclassified to earnings due to settlements 2,202 Interest expense $ (2,202 ) Total $ 98 $ (2,202 ) Year Ended December 31, 2013 Interest rate swaps Change in fair value $ 1,194 Loss reclassified to earnings due to settlements 2,092 Amortization of discontinued hedge reclassified to earnings 849 Interest expense $ (2,941 ) Total $ 4,135 $ (2,941 ) |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents the fair value and balance sheet locations of our outstanding derivative instruments. These amounts are presented on a gross basis with offsetting balances that reconcile to a net asset or liability position in our consolidated balance sheets. We present on a net basis to reflect the net settlement of these positions in accordance with provisions of our master netting arrangements. Derivatives in Net Asset Position Derivatives in Net Liability Position Gross Assets Gross Liabilities Offset in Balance Sheet Net Assets Recognized in Balance Sheet Gross Liabilities Gross Assets Offset in Balance Sheet Net Liabilities Recognized in Balance Sheet (In thousands) December 31, 2015 Derivatives designated as cash flow hedging instruments: Commodity price swap contracts $ — $ — $ — $ 38,755 $ — $ 38,755 Interest rate swap contracts 304 — 304 114 — 114 $ 304 $ — $ 304 $ 38,869 $ — $ 38,869 Derivatives not designated as cash flow hedging instruments: Commodity price swap contracts $ — $ — $ — $ 60,196 $ (37,118 ) $ 23,078 NYMEX futures contracts 3,469 — 3,469 — — — $ 3,469 $ — $ 3,469 $ 60,196 $ (37,118 ) $ 23,078 Total net balance $ 3,773 $ 61,947 Balance sheet classification: Prepayment and other $ 3,469 Accrued liabilities $ 36,976 Intangibles and other 304 Other long-term liabilities 24,971 $ 3,773 $ 61,947 Derivatives in Net Asset Position Derivatives in Net Liability Position Gross Assets Gross Liabilities Offset in Balance Sheet Net Assets Recognized in Balance Sheet Gross Liabilities Gross Assets Offset in Balance Sheet Net Liabilities Recognized in Balance Sheet (In thousands) December 31, 2014 Derivatives designated as cash flow hedging instruments: Commodity price swap contracts $ 173,658 $ (142,115 ) $ 31,543 $ 21,441 $ — $ 21,441 Interest rate swap contracts 1,019 — 1,019 1,065 — 1,065 $ 174,677 $ (142,115 ) $ 32,562 $ 22,506 $ — $ 22,506 Derivatives not designated as cash flow hedging instruments: Commodity price swap contracts $ 17,630 $ (12,942 ) $ 4,688 $ 20,398 $ (17,007 ) $ 3,391 NYMEX futures contracts 17,619 — 17,619 — — — $ 35,249 $ (12,942 ) $ 22,307 $ 20,398 $ (17,007 ) $ 3,391 Total net balance $ 54,869 $ 25,897 Balance sheet classification: Prepayment and other $ 53,850 Intangibles and other 1,019 Other long-term liabilities $ 25,897 $ 54,869 $ 25,897 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Provision For Income Taxes | The provision for income taxes is comprised of the following: Years Ended December 31, 2015 2014 2013 (In thousands) Current Federal $ 480,446 $ 294,509 $ 270,024 State 71,750 40,325 7,148 Deferred Federal (127,714 ) (168,756 ) 94,896 State (18,422 ) (24,906 ) 19,508 $ 406,060 $ 141,172 $ 391,576 |
Reconciliation Of Effective Tax Rate | The statutory federal income tax rate applied to pre-tax book income reconciles to income tax expense as follows: Years Ended December 31, 2015 2014 2013 (In thousands) Tax computed at statutory rate $ 422,999 $ 163,625 $ 405,790 State income taxes, net of federal tax benefit 40,385 13,641 21,363 Domestic production activities deduction (35,200 ) (20,998 ) (22,101 ) Noncontrolling interest in net income (24,155 ) (17,431 ) (12,378 ) Uncertain tax positions — — (193 ) Other 2,031 2,335 (905 ) $ 406,060 $ 141,172 $ 391,576 |
Deferred Tax Assets And Liabilities | Our deferred income tax assets and liabilities as of December 31, 2015 and 2014 are as follows: December 31, 2015 Assets Liabilities Total (In thousands) Deferred income taxes Properties, plants and equipment (due primarily to tax in excess of book depreciation) $ — $ (648,542 ) $ (648,542 ) Accrued employee benefits 22,355 — 22,355 Accrued post-retirement benefits 11,518 — 11,518 Accrued environmental costs 42,517 — 42,517 Hedging instruments 21,815 — 21,815 Inventory differences 175,614 — 175,614 Deferred turnaround costs — (104,944 ) (104,944 ) Net operating loss and tax credit carryforwards 8,033 — 8,033 Investment in HEP — (23,429 ) (23,429 ) Other — (2,843 ) (2,843 ) Total $ 281,852 $ (779,758 ) $ (497,906 ) December 31, 2014 Assets Liabilities Total (In thousands) Deferred income taxes Properties, plants and equipment (due primarily to tax in excess of book depreciation) $ — $ (581,017 ) $ (581,017 ) Accrued employee benefits 22,973 — 22,973 Accrued post-retirement benefits 11,504 — 11,504 Accrued environmental costs 30,744 — 30,744 Hedging instruments — (11,601 ) (11,601 ) Inventory differences — (7,376 ) (7,376 ) Deferred turnaround costs — (110,827 ) (110,827 ) Net operating loss and tax credit carryforwards 10,119 — 10,119 Investment in HEP — (25,244 ) (25,244 ) Other — (3,554 ) (3,554 ) Total $ 75,340 $ (739,619 ) $ (664,279 ) |
Reconciliation Of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Years Ended December 31, 2014 2013 (In thousands) Balance at January 1 $ 9,006 $ 12,641 Additions for tax positions of prior years — 25,728 Reductions for tax positions of prior years — (5,092 ) Settlements (9,006 ) (24,271 ) Balance at December 31 $ — $ 9,006 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Changes To Equity | Shares of our common stock outstanding and activity for the years ended December 31, 2015 , 2014 and 2013 are presented below: Years Ended December 31, 2015 2014 2013 Common shares outstanding at January 1 196,086,090 198,830,351 203,551,496 Issuance of restricted stock, excluding restricted stock with performance feature 447,534 376,622 292,855 Vesting of performance units 136,896 416,111 210,819 Vesting of restricted stock with performance feature 43,774 77,430 15,141 Forfeitures of restricted stock (51,332 ) (76,107 ) (15,794 ) Purchase of treasury stock (1) (16,428,574 ) (3,538,317 ) (5,224,166 ) Common shares outstanding at December 31 180,234,388 196,086,090 198,830,351 (1) Includes 151,967 , 279,680 and 235,922 shares, respectively, withheld under the terms of stock-based compensation agreements to provide funds for the payment of payroll and income taxes due at the vesting of share-based awards, as well as other stock repurchases under separate authority from our Board of Directors. |
Other Comprehensive Income (L41
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Comprehensive Income (Loss), before Tax [Abstract] | |
Components And Allocated Tax Effects Of Other Comprehensive Income (Loss) | The components and allocated tax effects of other comprehensive income (loss) are as follows: Before-Tax Tax Expense (Benefit) After-Tax (In thousands) Year Ended December 31, 2015 Net unrealized gain on marketable securities $ 38 $ 14 $ 24 Net unrealized loss on hedging instruments (52,259 ) (20,282 ) (31,977 ) Net change in pension and other post-retirement benefit obligations 79 31 48 Other comprehensive loss (52,142 ) (20,237 ) (31,905 ) Less other comprehensive income attributable to noncontrolling interest 144 — 144 Other comprehensive loss attributable to HollyFrontier stockholders $ (52,286 ) $ (20,237 ) $ (32,049 ) Year Ended December 31, 2014 Net unrealized loss on marketable securities $ (157 ) $ (62 ) $ (95 ) Net unrealized gain on hedging instruments 55,812 21,583 34,229 Net change in pension and other post-retirement benefit obligations (11,425 ) (4,423 ) (7,002 ) Other comprehensive income 44,230 17,098 27,132 Less other comprehensive income attributable to noncontrolling interest 60 — 60 Other comprehensive income attributable to HollyFrontier stockholders $ 44,170 $ 17,098 $ 27,072 Year Ended December 31, 2013 Net unrealized gain on marketable securities $ 34 $ 17 $ 17 Net unrealized loss on hedging instruments (20,183 ) (8,669 ) (11,514 ) Net change in pension and other post-retirement benefit obligations 37,593 14,534 23,059 Other comprehensive income 17,444 5,882 11,562 Less other comprehensive income attributable to noncontrolling interest 2,315 — 2,315 Other comprehensive income attributable to HollyFrontier stockholders $ 15,129 $ 5,882 $ 9,247 |
Reclassifications from Other Comprehensive Income to Income Statement | The following table presents the income statement line item effects for reclassifications out of accumulated other comprehensive income (“AOCI”): AOCI Component Gain (Loss) Reclassified From AOCI Income Statement Line Item Years Ended December 31, 2015 2014 2013 (In thousands) Marketable securities $ (51 ) $ 4 $ 39 Interest income 42 — — Gain on sale of assets (9 ) 4 39 (3 ) 2 15 Income tax expense (benefit) (6 ) 2 24 Net of tax Hedging instruments: Commodity price swaps 245,819 88,326 (20,060 ) Sales and other revenues (179,700 ) (37,313 ) 38,949 Cost of products sold (17,607 ) 791 (3,379 ) Operating expenses Interest rate swaps (2,100 ) (2,202 ) (2,941 ) Interest expense 46,412 49,602 12,569 18,454 19,712 5,554 Income tax expense 27,958 29,890 7,015 Net of tax 1,273 1,335 1,783 Noncontrolling interest 29,231 31,225 8,798 Net of tax and noncontrolling interest Pension and other post-retirement benefit obligations: Pension obligation — — (3,226 ) Cost of products sold — — (30,127 ) Operating expenses — — (4,236 ) General and administrative expenses — — (37,589 ) — — (14,547 ) Income tax benefit — — (23,042 ) Net of tax Post-retirement healthcare obligation 271 482 646 Cost of products sold 2,681 3,366 2,868 Operating expenses 347 448 526 General and administrative expenses 3,299 4,296 4,040 1,277 1,663 1,563 Income tax expense 2,022 2,633 2,477 Net of tax Retirement restoration plan (20 ) (920 ) (111 ) General and administrative expenses (8 ) (356 ) (43 ) Income tax benefit (12 ) (564 ) (68 ) Net of tax Total reclassifications for the period $ 31,235 $ 33,296 $ (11,811 ) |
Accumulated Other Comprehensive Loss In Equity | Accumulated other comprehensive income in the equity section of our consolidated balance sheets includes: December 31, 2015 2014 (In thousands) Unrealized gain on post-retirement benefit obligations $ 20,737 $ 20,689 Unrealized loss on marketable securities (61 ) (85 ) Unrealized gain (loss) on hedging instruments, net of noncontrolling interest (24,831 ) 7,290 Accumulated other comprehensive income (loss) $ (4,155 ) $ 27,894 |
Retirement Plan (Tables)
Retirement Plan (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | The following table sets forth the changes in the benefit obligation and plan assets of our post-retirement healthcare plans for the years ended December 31, 2015 and 2014 : Years Ended December 31, 2015 2014 (In thousands) Change in plans' benefit obligation Post-retirement plans' benefit obligation - beginning of year $ 23,633 $ 15,715 Service cost 1,694 895 Interest cost 819 638 Participant contributions 593 573 Amendments — 3,383 Benefits paid (2,260 ) (1,533 ) Actuarial loss (gain) (3,278 ) 3,962 Post-retirement plans' benefit obligation - end of year $ 21,201 $ 23,633 Change in plan assets Fair value of plan assets - beginning of year $ — $ — Employer contributions 1,667 960 Participant contributions 593 573 Benefits paid (2,260 ) (1,533 ) Fair value of plan assets - end of year $ — $ — Funded status Under-funded balance $ (21,201 ) $ (23,633 ) Amounts recognized in consolidated balance sheets Accrued post-retirement liability $ (21,201 ) $ (23,633 ) Amounts recognized in accumulated other comprehensive income (loss) Cumulative actuarial loss $ (1,613 ) $ (5,074 ) Prior service credit 35,937 39,419 Total $ 34,324 $ 34,345 |
Weighted Average Assumptions Used | The weighted average assumptions used to determine end of period benefit obligations: December 31, 2015 2014 Discount rate 3.90 % 3.60 % Current health care trend rate 8.00 % 8.00 % Ultimate health care trend rate 5.00 % 5.00 % Year rate reaches ultimate trend rate 2041 2042 |
Net Periodic Pension Expense | Net periodic post-retirement credit consisted of the following components: Years Ended December 31, 2015 2014 2013 (In thousands) Service cost – benefit earned during the year $ 1,694 $ 895 $ 1,112 Interest cost on projected benefit obligations 819 638 665 Amortization of prior service credit (3,482 ) (4,296 ) (5,896 ) Amortization of net loss 183 — 130 Loss on settlement — — 1,726 Net periodic post-retirement credit $ (786 ) $ (2,763 ) $ (2,263 ) |
Weighted Average Assumptions Used to Health Care Cost Trend Rates | Assumed health care cost trend rates have an effect on the amounts reported for the post-retirement health care benefit plans. The weighted average assumptions used to determine net periodic benefit expense follow: Years Ended December 31, 2015 2014 2013 Discount rate 3.60 % 4.25 % 3.45 % Current health care trend rate 8.00 % 8.00 % 8.10 % Ultimate health care trend rate 5.00 % 5.00 % 5.00 % Year rate reaches ultimate trend rate 2042 2045 2023 |
Effect of One Percent Change in Health Care Cost Trend Rates | The effect of a 1% change in health care cost trend rates is as follows: 1% Point Increase 1% Point Decrease (In thousands) Service cost $ 268 $ (222 ) Interest cost $ 68 $ (58 ) Year-end accumulated post-retirement benefit obligation $ 1,443 $ (1,254 ) |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases, Operating [Abstract] | |
Schedule Of Minimum Future Rental Commitments Under Operating Leases | At December 31, 2015 , the minimum future rental commitments under operating leases having non-cancellable lease terms in excess of one year are as follows: (In thousands) 2016 $ 70,512 2017 65,807 2018 62,364 2019 58,664 2020 57,047 Thereafter 221,589 Total $ 535,983 |
Contingencies And Contractual44
Contingencies And Contractual Commitments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Obligation, Fiscal Year Maturity Schedule | At December 31, 2015 , the minimum future transportation and storage fees under transportation agreements having terms in excess of one year are as follows: (In thousands) 2016 $ 113,914 2017 102,613 2018 84,026 2019 75,514 2020 65,444 Thereafter 548,010 Total $ 989,521 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule Of Segment Reporting Information | Refining HEP (1) Corporate and Other Consolidations and Eliminations Consolidated Total (In thousands) Year Ended December 31, 2015 Sales and other revenues $ 13,171,183 $ 358,875 $ 663 $ (292,801 ) $ 13,237,920 Depreciation and amortization $ 273,799 $ 61,236 $ 11,944 $ (828 ) $ 346,151 Income (loss) from operations $ 1,187,875 $ 181,778 $ (123,004 ) $ (2,296 ) $ 1,244,353 Capital expenditures $ 567,616 $ 94,516 $ 14,023 $ — $ 676,155 Total assets $ 6,840,545 $ 1,569,089 $ 289,225 $ (310,560 ) $ 8,388,299 Year Ended December 31, 2014 Sales and other revenues $ 19,706,225 $ 332,626 $ 2,103 $ (276,627 ) $ 19,764,327 Depreciation and amortization $ 293,871 $ 60,548 $ 9,790 $ (828 ) $ 363,381 Income (loss) from operations $ 491,106 $ 156,453 $ (129,874 ) $ (2,151 ) $ 515,534 Capital expenditures $ 435,598 $ 109,693 $ 19,530 $ — $ 564,821 Total assets $ 6,927,126 $ 1,472,098 $ 1,150,865 $ (320,042 ) $ 9,230,047 Year Ended December 31, 2013 Sales and other revenues $ 20,105,443 $ 307,053 $ 1,314 $ (253,250 ) $ 20,160,560 Depreciation and amortization $ 233,182 $ 64,701 $ 6,391 $ (828 ) $ 303,446 Income (loss) from operations $ 1,237,687 $ 133,522 $ (123,030 ) $ (2,105 ) $ 1,246,074 Capital expenditures $ 339,356 $ 56,613 $ 29,158 $ — $ 425,127 Total assets $ 7,094,558 $ 1,412,931 $ 1,881,121 $ (332,847 ) $ 10,055,763 |
Supplemental Financial Inform46
Supplemental Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Financial Information [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet December 31, 2015 HollyFrontier Corp. Before Consolidation of HEP HEP Segment Consolidations and Eliminations Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 51,520 $ 15,013 $ — $ 66,533 Marketable securities 144,019 — — 144,019 Accounts receivable, net 355,020 41,075 (44,117 ) 351,978 Inventories 839,897 1,972 — 841,869 Prepayments and other 48,288 3,082 (7,704 ) 43,666 Total current assets 1,438,744 61,142 (51,821 ) 1,448,065 Properties, plants and equipment, net 3,270,804 1,090,373 (245,515 ) 4,115,662 Intangibles and other assets 2,410,879 417,574 (3,881 ) 2,824,572 Total assets $ 7,120,427 $ 1,569,089 $ (301,217 ) $ 8,388,299 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 738,024 $ 22,583 $ (44,117 ) $ 716,490 Income tax payable 8,142 — — 8,142 Accrued liabilities 117,346 26,341 (7,704 ) 135,983 Total current liabilities 863,512 48,924 (51,821 ) 860,615 Long-term debt 31,288 1,008,752 — 1,040,040 Liability to HEP 220,998 — (220,998 ) — Deferred income tax liabilities 497,475 431 — 497,906 Other long-term liabilities 125,684 59,306 (5,025 ) 179,965 Investment in HEP 129,961 — (129,961 ) — Equity – HollyFrontier 5,251,509 357,247 (355,341 ) 5,253,415 Equity – noncontrolling interest — 94,429 461,929 556,358 Total liabilities and equity $ 7,120,427 $ 1,569,089 $ (301,217 ) $ 8,388,299 Condensed Consolidating Balance Sheet December 31, 2014 HollyFrontier Corp. Before Consolidation of HEP HEP Segment Consolidations and Eliminations Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 565,155 $ 2,830 $ — $ 567,985 Marketable securities 474,110 — — 474,110 Accounts receivable, net 588,407 40,129 (38,631 ) 589,905 Inventories 1,033,191 1,940 — 1,035,131 Income tax receivable 11,719 — — 11,719 Prepayments and other 109,928 2,443 (8,223 ) 104,148 Total current assets 2,782,510 47,342 (46,854 ) 2,782,998 Properties, plants and equipment, net 2,867,941 1,062,430 (259,832 ) 3,670,539 Intangibles and other assets 2,418,926 362,326 (4,742 ) 2,776,510 Total assets $ 8,069,377 $ 1,472,098 $ (311,428 ) $ 9,230,047 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 1,125,146 $ 21,623 $ (38,631 ) $ 1,108,138 Income tax payable 19,642 — — 19,642 Accrued liabilities 88,116 26,321 (8,223 ) 106,214 Total current liabilities 1,232,904 47,944 (46,854 ) 1,233,994 Long-term debt 187,311 866,986 — 1,054,297 Liability to HEP 233,217 — (233,217 ) — Deferred income tax liabilities 663,912 367 — 664,279 Other long-term liabilities 135,474 47,170 (5,886 ) 176,758 Investment in HEP 99,618 — (99,618 ) — Equity – HollyFrontier 5,516,941 414,549 (407,906 ) 5,523,584 Equity – noncontrolling interest — 95,082 482,053 577,135 Total liabilities and equity $ 8,069,377 $ 1,472,098 $ (311,428 ) $ 9,230,047 |
Condensed Consolidating Statement of Income and Comprehensive Income | Condensed Consolidating Statement of Income and Comprehensive Income Year Ended December 31, 2015 HollyFrontier HEP Segment Consolidations and Eliminations Consolidated (In thousands) Sales and other revenues $ 13,171,846 $ 358,875 $ (292,801 ) $ 13,237,920 Operating costs and expenses: Cost of products sold 10,525,610 — (286,392 ) 10,239,218 Lower of cost or market valuation inventory adjustment 226,979 — — 226,979 Operating expenses 960,352 103,305 (3,284 ) 1,060,373 General and administrative 108,290 12,556 — 120,846 Depreciation and amortization 299,233 61,236 (14,318 ) 346,151 Total operating costs and expenses 12,120,464 177,097 (303,994 ) 11,993,567 Income from operations 1,051,382 181,778 11,193 1,244,353 Other income (expense): Earnings (loss) of equity method investments 78,969 4,803 (87,510 ) (3,738 ) Interest income (expense) 6,098 (36,892 ) (9,285 ) (40,079 ) Loss on early extinguishment of debt (1,370 ) — — (1,370 ) Gain on sale of assets and other 8,916 486 — 9,402 92,613 (31,603 ) (96,795 ) (35,785 ) Income before income taxes 1,143,995 150,175 (85,602 ) 1,208,568 Income tax provision 405,832 228 — 406,060 Net income 738,163 149,947 (85,602 ) 802,508 Less net income attributable to noncontrolling interest (30 ) 3,971 58,466 62,407 Net income attributable to HollyFrontier stockholders $ 738,193 $ 145,976 $ (144,068 ) $ 740,101 Comprehensive income attributable to HollyFrontier stockholders $ 706,144 $ 138,920 $ (137,012 ) $ 708,052 Condensed Consolidating Statement of Income and Comprehensive Income Year Ended December 31, 2014 HollyFrontier HEP Segment Consolidations and Eliminations Consolidated (In thousands) Sales and other revenues $ 19,708,328 $ 332,626 $ (276,627 ) $ 19,764,327 Operating costs and expenses: Cost of products sold 17,500,601 — (272,216 ) 17,228,385 Lower of cost or market inventory valuation adjustment 397,478 — — 397,478 Operating expenses 1,041,571 104,801 (1,432 ) 1,144,940 General and administrative 103,785 10,824 — 114,609 Depreciation and amortization 317,149 60,548 (14,316 ) 363,381 Total operating costs and expenses 19,360,584 176,173 (287,964 ) 19,248,793 Income from operations 347,744 156,453 11,337 515,534 Other income (expense): Earnings (loss) of equity method investments 65,375 2,987 (70,369 ) (2,007 ) Interest income (expense) 6,221 (36,098 ) (9,339 ) (39,216 ) Loss on early extinguishment of debt — (7,677 ) — (7,677 ) Gain on sale of assets and other 866 — — 866 72,462 (40,788 ) (79,708 ) (48,034 ) Income before income taxes 420,206 115,665 (68,371 ) 467,500 Income tax provision 140,937 235 — 141,172 Net income 279,269 115,430 (68,371 ) 326,328 Less net income attributable to noncontrolling interest (25 ) 8,288 36,773 45,036 Net income attributable to HollyFrontier stockholders $ 279,294 $ 107,142 $ (105,144 ) $ 281,292 Comprehensive income attributable to HollyFrontier stockholders $ 306,366 $ 107,181 $ (105,183 ) $ 308,364 Condensed Consolidating Statement of Income and Comprehensive Income Year Ended December 31, 2013 HollyFrontier HEP Segment Consolidations and Eliminations Consolidated (In thousands) Sales and other revenues $ 20,106,757 $ 307,053 $ (253,250 ) $ 20,160,560 Operating costs and expenses: Cost of products sold 17,641,119 — (248,892 ) 17,392,227 Operating expenses 995,194 97,081 (1,425 ) 1,090,850 General and administrative 116,214 11,749 — 127,963 Depreciation and amortization 253,062 64,701 (14,317 ) 303,446 Total operating costs and expenses 19,005,589 173,531 (264,634 ) 18,914,486 Income from operations 1,101,168 133,522 11,384 1,246,074 Other income (expense): Earnings (loss) of equity method investments 52,288 2,826 (57,186 ) (2,072 ) Interest expense (6,338 ) (46,849 ) (9,307 ) (62,494 ) Loss on early extinguishment of debt (22,109 ) — — (22,109 ) 23,841 (44,023 ) (66,493 ) (86,675 ) Income before income taxes 1,125,009 89,499 (55,109 ) 1,159,399 Income tax provision 391,243 333 — 391,576 Net income 733,766 89,166 (55,109 ) 767,823 Less net income attributable to noncontrolling interest — 6,632 25,349 31,981 Net income attributable to HollyFrontier stockholders $ 733,766 $ 82,534 $ (80,458 ) $ 735,842 Comprehensive income attributable to HollyFrontier stockholders $ 743,013 $ 84,354 $ (82,278 ) $ 745,089 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2015 HollyFrontier Corp. Before Consolidation of HEP HEP Segment Consolidations and Eliminations Consolidated (In thousands) Cash flows from operating activities $ 836,858 $ 233,188 $ (90,420 ) $ 979,626 Cash flow from investing activities Additions to properties, plants and equipment (581,639 ) — — (581,639 ) Additions to properties, plants and equipment – HEP — (94,516 ) — (94,516 ) Purchase of equity method investment — (55,032 ) — (55,032 ) Proceeds from sale of assets 17,985 1,279 — 19,264 Purchases of marketable securities (509,338 ) — — (509,338 ) Sales and maturities of marketable securities 839,513 — — 839,513 (233,479 ) (148,269 ) — (381,748 ) Cash flows from financing activities Net borrowings under credit agreement – HEP — 141,000 — 141,000 Redemption of senior notes - HFC (155,156 ) — — (155,156 ) Purchase of treasury stock (742,823 ) — — (742,823 ) Dividends (246,908 ) — — (246,908 ) Distributions to noncontrolling interest — (173,688 ) 90,420 (83,268 ) Distribution from HEP 62,000 (62,000 ) — — Contribution from general partner (27,623 ) 27,623 — — Other, net (6,504 ) (5,671 ) — (12,175 ) (1,117,014 ) (72,736 ) 90,420 (1,099,330 ) Cash and cash equivalents Increase (decrease) for the period (513,635 ) 12,183 — (501,452 ) Beginning of period 565,155 2,830 — 567,985 End of period $ 51,520 $ 15,013 $ — $ 66,533 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2014 HollyFrontier Corp. Before Consolidation of HEP HEP Segment Consolidations and Eliminations Consolidated (In thousands) Cash flows from operating activities $ 652,186 $ 186,903 $ (80,493 ) $ 758,596 Cash flows from investing activities: Additions to properties, plants and equipment (455,128 ) — — (455,128 ) Additions to properties, plants and equipment – HEP — (109,693 ) — (109,693 ) Proceeds from sale of assets 16,633 — — 16,633 Purchases of marketable securities (1,025,602 ) — — (1,025,602 ) Sales and maturities of marketable securities 1,276,447 — — 1,276,447 Other, net 5,021 — — 5,021 (182,629 ) (109,693 ) — (292,322 ) Cash flows from financing activities: Net borrowings under credit agreement – HEP — 208,000 — 208,000 Redemption of senior notes - HEP — (156,188 ) — (156,188 ) Purchase of treasury stock (158,847 ) — — (158,847 ) Dividends (647,197 ) — — (647,197 ) Distributions to noncontrolling interest — (158,695 ) 80,493 (78,202 ) Contribution from general partner (29,734 ) 29,734 — — Excess tax benefit from equity-based compensation 2,040 — — 2,040 Other, net (4,415 ) (3,583 ) — (7,998 ) (838,153 ) (80,732 ) 80,493 (838,392 ) Cash and cash equivalents Increase (decrease) for the period: (368,596 ) (3,522 ) — (372,118 ) Beginning of period 933,751 6,352 — 940,103 End of period $ 565,155 $ 2,830 $ — $ 567,985 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2013 HollyFrontier Corp. Before Consolidation of HEP HEP Segment Consolidations and Eliminations Consolidated (In thousands) Cash flows from operating activities $ 757,204 $ 183,380 $ (71,410 ) $ 869,174 Cash flows from investing activities: Additions to properties, plants and equipment (368,514 ) — — (368,514 ) Additions to properties, plants and equipment – HEP — (56,613 ) — (56,613 ) Proceeds from sale of assets 5,071 2,731 — 7,802 Acquisition of trucking operations (11,301 ) — — (11,301 ) Purchases of marketable securities (935,512 ) — — (935,512 ) Sales and maturities of marketable securities 846,143 — — 846,143 Other, net (8,740 ) — — (8,740 ) (472,853 ) (53,882 ) — (526,735 ) Cash flows from financing activities: Net borrowings under credit agreement – HEP — (58,000 ) — (58,000 ) Redemptions of senior notes (300,973 ) — — (300,973 ) Proceeds from sale of HEP common units 73,444 — — 73,444 Proceeds from common unit offerings – HEP — 73,444 — 73,444 Purchase of treasury stock (225,023 ) — — (225,023 ) Contribution from general partner (6,011 ) 6,011 — — Dividends (645,920 ) — — (645,920 ) Distributions to noncontrolling interest — (142,611 ) 71,410 (71,201 ) Excess tax benefit from equity-based compensation 2,562 — — 2,562 Other, net (1,141 ) (7,227 ) — (8,368 ) (1,103,062 ) (128,383 ) 71,410 (1,160,035 ) Cash and cash equivalents Increase (decrease) for the period: (818,711 ) 1,115 — (817,596 ) Beginning of period 1,752,462 5,237 — 1,757,699 End of period $ 933,751 $ 6,352 $ — $ 940,103 |
Quarterly Information (Unaudi47
Quarterly Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule Of Quarterly Information | First Quarter Second Quarter Third Quarter Fourth Quarter Year (In thousands, except per share data) Year Ended December 31, 2015 Sales and other revenues $ 3,006,626 $ 3,701,912 $ 3,585,823 $ 2,943,559 $ 13,237,920 Operating costs and expenses $ 2,618,004 $ 3,112,080 $ 3,263,218 $ 3,000,265 $ 11,993,567 Income (loss) from operations (1) $ 388,622 $ 589,832 $ 322,605 $ (56,706 ) $ 1,244,353 Income (loss) before income taxes $ 372,389 $ 580,177 $ 320,673 $ (64,671 ) $ 1,208,568 Net income (loss) attributable to HollyFrontier stockholders $ 226,876 $ 360,824 $ 196,322 $ (43,921 ) $ 740,101 Net income (loss) per share attributable to HollyFrontier stockholders - basic $ 1.16 $ 1.88 $ 1.05 $ (0.24 ) $ 3.91 Net income (loss) per share attributable to HollyFrontier stockholders - diluted $ 1.16 $ 1.88 $ 1.04 $ (0.24 ) $ 3.90 Dividends per common share $ 0.32 $ 0.33 $ 0.33 $ 0.33 $ 1.31 Average number of shares of common stock outstanding: Basic 195,069 191,355 187,208 181,460 188,731 Diluted 195,121 191,454 187,344 181,460 188,940 Year Ended December 31, 2014 Sales and other revenues $ 4,791,053 $ 5,372,600 $ 5,317,555 $ 4,283,119 $ 19,764,327 Operating costs and expenses $ 4,520,057 $ 5,076,255 $ 5,014,944 $ 4,637,537 $ 19,248,793 Income from operations (2) $ 270,996 $ 296,345 $ 302,611 $ (354,418 ) $ 515,534 Income before income taxes $ 251,576 $ 286,485 $ 290,774 $ (361,335 ) $ 467,500 Net income attributable to HollyFrontier stockholders $ 152,061 $ 176,429 $ 175,006 $ (222,204 ) $ 281,292 Net income per share attributable to HollyFrontier stockholders - basic $ 0.76 $ 0.89 $ 0.88 $ (1.13 ) $ 1.42 Net income per share attributable to HollyFrontier stockholders - diluted $ 0.76 $ 0.89 $ 0.88 $ (1.13 ) $ 1.42 Dividends per common share $ 0.80 $ 0.82 $ 0.82 $ 0.82 $ 3.26 Average number of shares of common stock outstanding: Basic 198,297 198,139 197,261 195,310 197,243 Diluted 198,924 198,380 197,535 195,310 197,428 (1) For 2015, income from operations reflects non-cash lower of cost or market inventory valuation reductions of $6.5 million and $135.5 million for the first and second quarters, respectively, and charges of $225.5 million and $143.6 million for the third and fourth quarters, respectively. (2) Loss from operations for the fourth quarter of 2014 reflects a non-cash lower of cost or market inventory valuation charge of $397.5 million . |
Description of Business and S48
Description of Business and Summary of Significant Accounting Policies (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)Petroleum_Refineriesmi | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Schedule of Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Deferred Finance Costs, Net | $ 600,000 | ||
Inventory Valuation Reserves | $ (624,457,000) | (397,478,000) | |
Impairment of Long-Lived Assets Held-for-use | $ 0 | 0 | $ 0 |
Number of refineries located in Tulsa, Oklahoma | Petroleum_Refineries | 2 | ||
Refinery distance from main city (miles) | mi | 65 | ||
Percentage of ownership interest | 50.00% | ||
Allowance for doubtful accounts | $ 2,300,000 | 2,400,000 | |
Asset retirement obligation | 20,700,000 | 19,800,000 | |
Investment in SLC Pipeline | 0 | 0 | |
Turnaround and Catalyst Amortization Costs | 107,800,000 | 96,900,000 | $ 84,800,000 |
Deferred Income Tax Liabilities, Net | 17,400,000 | ||
Third Party Transportation Agreement [Member] | |||
Schedule of Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Minimum annual cash inflows from third-party transportation agreement | 26,200,000 | ||
Third-party transportation agreement, amortization expense | 2,000,000 | ||
Finite-Lived Intangible Assets, Net | 38,500,000 | 40,500,000 | |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 21,700,000 | $ 19,700,000 | |
SLC Pipeline | |||
Schedule of Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Equity Method Investment, Ownership Percentage | 25.00% | ||
Frontier Pipeline [Member] | |||
Schedule of Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
Frontier Pipeline [Member] | |||
Schedule of Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
Length of pipeline | mi | 289 | ||
UNEV Pipeline [Member] | |||
Schedule of Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Equity Method Investment, Ownership Percentage | 75.00% | ||
Variable Interest Entity, Primary Beneficiary [Member] | |||
Schedule of Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Percentage of ownership in variable interest entity | 39.00% | ||
Percentage of ownership interest | 2.00% | ||
Equity Method Investment, Ownership Percentage | 75.00% | ||
Variable Interest Entity, Primary Beneficiary [Member] | SLC Pipeline | |||
Schedule of Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Difference between Carrying Amount and Underlying Equity | $ (33,400,000) | ||
Equity Method Investment, Underlying Equity in Net Assets | 57,700,000 | ||
Investment in SLC Pipeline | 24,300,000 | ||
Variable Interest Entity, Primary Beneficiary [Member] | Frontier Pipeline [Member] | |||
Schedule of Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Difference between Carrying Amount and Underlying Equity | (42,600,000) | ||
Equity Method Investment, Underlying Equity in Net Assets | 12,600,000 | ||
Investment in SLC Pipeline | $ 55,200,000 | ||
Transportation vehicles | |||
Schedule of Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Estimated useful life of assets, minimum | 5 years | ||
Minimum [Member] | |||
Schedule of Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Frequency of maintenance, in period | 2 years | ||
Minimum [Member] | Refining Pipeline And Terminal Facilities [Member] | |||
Schedule of Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Estimated useful life of assets, minimum | 20 years | ||
Minimum [Member] | Buildings and Improvements [Member] | |||
Schedule of Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Estimated useful life of assets, minimum | 10 years | ||
Minimum [Member] | Other fixed assets | |||
Schedule of Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Estimated useful life of assets, minimum | 5 years | ||
Maximum [Member] | |||
Schedule of Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Frequency of maintenance, in period | 5 years | ||
Maximum [Member] | Refining Pipeline And Terminal Facilities [Member] | |||
Schedule of Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Estimated useful life of assets, minimum | 25 years | ||
Maximum [Member] | Buildings and Improvements [Member] | |||
Schedule of Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Estimated useful life of assets, minimum | 40 years | ||
Maximum [Member] | Other fixed assets | |||
Schedule of Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Estimated useful life of assets, minimum | 30 years |
Holly Energy Partners (Narrativ
Holly Energy Partners (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016mi | Dec. 31, 2015USD ($)Customersmibbl | Dec. 31, 2013USD ($)shares | Feb. 22, 2016 | |
Schedule of Equity Method Investments [Line Items] | ||||
Percentage of general partner interest | 50.00% | |||
Concentration risk, precentage of total revenues | 10.00% | |||
Payments to Acquire Property, Plant, and Equipment | $ 0 | |||
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Percentage of ownership in variable interest entity | 39.00% | |||
Percentage of general partner interest | 2.00% | |||
Number of significant customers | Customers | 2 | |||
Concentration risk, precentage of total revenues | 81.00% | |||
Equity Method Investment, Ownership Percentage | 75.00% | |||
Long-term Purchase Commitment, Amount | $ 244,900 | |||
Sale of Stock, Number of Shares Issued in Transaction | shares | 1,875,000 | |||
Partners' Capital Account, Sale of Units | $ 73,400 | |||
Payments to Acquire Property, Plant, and Equipment | 62,000 | |||
Purchase Obligation Minimum Annualized Payment | $ 15,300 | |||
SLC Pipeline | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 25.00% | |||
Frontier Pipeline [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 50.00% | |||
Payments to Acquire Equity Method Investments | $ 55,000 | |||
Length of pipeline | mi | 289 | |||
Production barrel capacity per day | bbl | 72,000 | |||
UNEV Pipeline [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 75.00% | |||
General Partner HFC [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Sale of Stock, Number of Shares Issued in Transaction | shares | 1,875,000 | |||
Subsequent Event [Member] | Osage Pipeline [Member] [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 50.00% | |||
Length of pipeline | mi | 135 |
Financial Instruments (Estimate
Financial Instruments (Estimated Fair Values Of Debt Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Assets, Fair Value Disclosure, Recurring | $ 184,889 | $ 701,044 |
Financial Liabilities Fair Value Disclosure | 394,544 | 644,212 |
Reported Value Measurement [Member] | ||
Debt Instrument [Line Items] | ||
Assets, Fair Value Disclosure, Recurring | 184,889 | 701,044 |
Financial Liabilities Fair Value Disclosure | 395,796 | 648,092 |
Level 1 | ||
Debt Instrument [Line Items] | ||
Assets, Fair Value Disclosure, Recurring | 3,469 | 17,619 |
Level 2 | ||
Debt Instrument [Line Items] | ||
Assets, Fair Value Disclosure, Recurring | 181,420 | 683,425 |
Financial Liabilities Fair Value Disclosure | 394,544 | 644,212 |
Marketable securities [Member] | ||
Debt Instrument [Line Items] | ||
Assets, Fair Value Disclosure, Recurring | 144,019 | 474,110 |
Marketable securities [Member] | Reported Value Measurement [Member] | ||
Debt Instrument [Line Items] | ||
Assets, Fair Value Disclosure, Recurring | 144,019 | 474,110 |
Marketable securities [Member] | Level 2 | ||
Debt Instrument [Line Items] | ||
Assets, Fair Value Disclosure, Recurring | 144,019 | 474,110 |
Commodity Contract [Member] | ||
Debt Instrument [Line Items] | ||
Assets, Fair Value Disclosure, Recurring | 37,097 | 208,296 |
Financial Liabilities Fair Value Disclosure | 98,930 | 196,897 |
Commodity Contract [Member] | Reported Value Measurement [Member] | ||
Debt Instrument [Line Items] | ||
Assets, Fair Value Disclosure, Recurring | 37,097 | 208,296 |
Financial Liabilities Fair Value Disclosure | 98,930 | 196,897 |
Commodity Contract [Member] | Level 2 | ||
Debt Instrument [Line Items] | ||
Assets, Fair Value Disclosure, Recurring | 37,097 | 208,296 |
Financial Liabilities Fair Value Disclosure | 98,930 | 196,897 |
NYMEX futures contracts | ||
Debt Instrument [Line Items] | ||
Assets, Fair Value Disclosure, Recurring | 3,469 | 17,619 |
NYMEX futures contracts | Reported Value Measurement [Member] | ||
Debt Instrument [Line Items] | ||
Assets, Fair Value Disclosure, Recurring | 3,469 | 17,619 |
NYMEX futures contracts | Level 1 | ||
Debt Instrument [Line Items] | ||
Assets, Fair Value Disclosure, Recurring | 3,469 | 17,619 |
NYMEX futures contracts | Level 2 | ||
Debt Instrument [Line Items] | ||
Assets, Fair Value Disclosure, Recurring | 0 | 0 |
Senior notes | ||
Debt Instrument [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 155,250 | |
Senior notes | HEP | ||
Debt Instrument [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 295,500 | 291,000 |
Senior notes | Reported Value Measurement [Member] | ||
Debt Instrument [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 154,144 | |
Senior notes | Reported Value Measurement [Member] | HEP | ||
Debt Instrument [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 296,752 | 295,986 |
Senior notes | Level 2 | ||
Debt Instrument [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 155,250 | |
Senior notes | Level 2 | HEP | ||
Debt Instrument [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 295,500 | 291,000 |
Interest rate swap | HEP | ||
Debt Instrument [Line Items] | ||
Assets, Fair Value Disclosure, Recurring | 304 | 1,019 |
Financial Liabilities Fair Value Disclosure | 114 | 1,065 |
Interest rate swap | Reported Value Measurement [Member] | HEP | ||
Debt Instrument [Line Items] | ||
Assets, Fair Value Disclosure, Recurring | 304 | 1,019 |
Financial Liabilities Fair Value Disclosure | 114 | 1,065 |
Interest rate swap | Level 2 | HEP | ||
Debt Instrument [Line Items] | ||
Assets, Fair Value Disclosure, Recurring | 304 | 1,019 |
Financial Liabilities Fair Value Disclosure | $ 114 | $ 1,065 |
Financial Instruments (Changes
Financial Instruments (Changes in Level 3 Inputs) (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Level 3 liability balance | $ 0 | $ 0 | $ (35,318) |
Change in fair value, recognized in earnings | |||
Change in fair value, recognized in other comprehensive income | 3,852 | 304,275 | |
Transfer out of Level 3 | 0 | (173,659) | |
Cost of products sold | |||
Change in fair value, recognized in earnings | |||
Change in fair value recognized in earnings | 0 | 14,876 | |
Settlement date fair value, recognized in earnings | 0 | (21,848) | |
Sales [Member] | |||
Change in fair value, recognized in earnings | |||
Settlement date fair value, recognized in earnings | $ (3,852) | $ (88,326) |
Earnings Per Share (Schedule Of
Earnings Per Share (Schedule Of Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||||||||||
Earnings attributable to HollyFrontier stockholders | $ (43,921) | $ 196,322 | $ 360,824 | $ 226,876 | $ (222,204) | $ 175,006 | $ 176,429 | $ 152,061 | $ 740,101 | $ 281,292 | $ 735,842 |
Participating securities share in earnings | 2,306 | 820 | 2,754 | ||||||||
Net income attributable to common shares | $ 737,795 | $ 280,472 | $ 733,088 | ||||||||
Average number of shares of common stock outstanding | 181,460 | 187,208 | 191,355 | 195,069 | 195,310 | 197,261 | 198,139 | 198,297 | 188,731 | 197,243 | 200,419 |
Effect of dilutive variable restricted shares and performance share units | 209 | 185 | 815 | ||||||||
Average number of shares of common stock outstanding assuming dilution | 181,460 | 187,344 | 191,454 | 195,121 | 195,310 | 197,535 | 198,380 | 198,924 | 188,940 | 197,428 | 201,234 |
Basic earnings per share | $ (0.24) | $ 1.05 | $ 1.88 | $ 1.16 | $ (1.13) | $ 0.88 | $ 0.89 | $ 0.76 | $ 3.91 | $ 1.42 | $ 3.66 |
Diluted earnings per share | $ (0.24) | $ 1.04 | $ 1.88 | $ 1.16 | $ (1.13) | $ 0.88 | $ 0.89 | $ 0.76 | $ 3.90 | $ 1.42 | $ 3.64 |
Anti-dilutive restricted and performance share units excluded from computations | 89 | 356 | 166 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2015USD ($)plan$ / sharesshares | Dec. 31, 2014USD ($)$ / shares | Dec. 31, 2013USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of share-based compensation plans | plan | 2 | |||
Compensation cost attributable to share-based compensation plans | $ 26.9 | $ 26.1 | $ 32.2 | |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock vested in period | shares | 337,159 | |||
Fair value of restricted stock vested | $ 14.2 | $ 18.2 | $ 16.2 | |
Total unrecognized compensation cost related to non-vested grants | $ 23.7 | $ 23.7 | ||
Weighted Average Grant Date Fair Value, Non-vested shares | $ / shares | $ 48.35 | $ 48.35 | $ 44.12 | |
Total unrecognized compensation cost, weighted-average period of recognition, years | 1 year 7 months | |||
Weighted average grant date fair value | $ / shares | $ 42.03 | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant date fair value | $ / shares | $ 42.03 | $ 42 | ||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock vested in period | shares | 209,592 | |||
Fair value of restricted stock vested | $ 14.3 | $ 11.6 | ||
Total unrecognized compensation cost related to non-vested grants | $ 16.4 | $ 16.4 | ||
Weighted Average Grant Date Fair Value, Non-vested shares | $ / shares | $ 45.86 | $ 45.86 | ||
Total unrecognized compensation cost, weighted-average period of recognition, years | 1 year 9 months | |||
Percentage of share units awarded that will ultimately be issued, current estimate | 85.00% | |||
Common stock issued, shares | shares | 136,896 | |||
Performance share units, vested in period, percentage payout | 65.00% | |||
Common stock issued, fair value | $ 10.4 | |||
Minimum [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock vesting period, years | 1 year | |||
Minimum [Member] | Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of share units awarded that will ultimately be issued, possible range | 0.00% | |||
Maximum [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock vesting period, years | 3 years | |||
Maximum [Member] | Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock vesting period, years | 3 years | |||
Percentage of share units awarded that will ultimately be issued, possible range | 200.00% | |||
HEP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost attributable to share-based compensation plans | $ 3.5 | $ 3.5 | $ 3.6 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary Of Restricted Stock Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Restricted Stock, Nonvested [Roll Forward] | |||
Outstanding at January 1, 2015 (non-vested), Grants | 669,777 | ||
Granted, Grants | 447,544 | ||
Vesting and transfer of ownership to recipients | (337,159) | ||
Forfeited | (57,637) | ||
Outstanding at December 31, 2015 (non-vested), Grants | 722,525 | 669,777 | |
Outstanding at January 1, 2015 (non-vested), Weighted Average Grant Date Fair Value | $ 44.12 | ||
Granted, Weighted Average Grant Date Fair Value | 49.92 | ||
Vesting and transfer of ownership to recipients, Weighted Average Grant Date Fair Value | 42.03 | ||
Forfeited, Weighted Average Grant Date Fair Value | 48.40 | ||
Outstanding at December 31, 2015 (non-vested), Weighted Average Grant Date Fair Value | $ 48.35 | $ 44.12 | |
Outstanding at December 31, 2015 (non-vested), Aggregate Intrinsic Value | $ 27,950 | ||
Fair value of restricted stock vested | $ 14,200 | $ 18,200 | $ 16,200 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Restricted Stock, Nonvested [Roll Forward] | |||
Vesting and transfer of ownership to recipients, Weighted Average Grant Date Fair Value | $ 42.03 | $ 42 |
Stock-Based Compensation (Sum55
Stock-Based Compensation (Summary Of Performance Share Unit Activity) (Details) - Performance Shares [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | $ 10.4 | ||
Fair Value of performance shares vested | $ 14.3 | $ 11.6 | |
Share-based Compensation Arrangement by Share-based Payment Award, Performance Share Units, Nonvested [Roll Forward] | |||
Outstanding at January 1, 2015 (non-vested), Grants | 725,054 | ||
Granted, Grants | 209,589 | ||
Vesting and transfer of ownership to recipients | (209,592) | ||
Forfeited | (87,113) | ||
Outstanding at December 31, 2015 (non-vested), Grants | 637,938 | 725,054 |
Cash and Cash Equivalents and56
Cash and Cash Equivalents and Investments in Marketable Securities (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Interest income | $ 3,391 | $ 4,430 | $ 5,556 |
Available-for-sale Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Interest income | $ 1,900 | $ 2,200 |
Cash and Cash Equivalents and57
Cash and Cash Equivalents and Investments in Marketable Securities (Available-For-Sale Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable securities, Amortized Cost | $ 144,122 | $ 474,297 |
Available-for-sale Securities, Gross Unrealized Gain | 7 | 23 |
Available-for-sale Securities, Gross Unrealized Loss | (110) | (210) |
Marketable securities, Fair Value (Net Carrying Amount) | 144,019 | 474,110 |
State and political subdivisions debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable securities, Amortized Cost | 88,935 | 231,819 |
Available-for-sale Securities, Gross Unrealized Gain | 6 | 5 |
Available-for-sale Securities, Gross Unrealized Loss | (67) | (112) |
Marketable securities, Fair Value (Net Carrying Amount) | 88,874 | 231,712 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable securities, Amortized Cost | 32,311 | 136,181 |
Available-for-sale Securities, Gross Unrealized Gain | 0 | 1 |
Available-for-sale Securities, Gross Unrealized Loss | (41) | (94) |
Marketable securities, Fair Value (Net Carrying Amount) | 32,270 | 136,088 |
Commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable securities, Amortized Cost | 22,876 | 52,297 |
Available-for-sale Securities, Gross Unrealized Gain | 1 | 7 |
Available-for-sale Securities, Gross Unrealized Loss | (2) | (4) |
Marketable securities, Fair Value (Net Carrying Amount) | $ 22,875 | 52,300 |
Certificates of deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable securities, Amortized Cost | 54,000 | |
Available-for-sale Securities, Gross Unrealized Gain | 10 | |
Available-for-sale Securities, Gross Unrealized Loss | 0 | |
Marketable securities, Fair Value (Net Carrying Amount) | $ 54,010 |
Inventories (Inventory Componen
Inventories (Inventory Components) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Inventory, Net [Abstract] | |||
Crude oil | $ 518,922 | $ 581,592 | |
Other raw materials and unfinished products | [1] | 214,832 | 204,467 |
Finished products | [2] | 603,568 | 531,523 |
Lower of cost or market reserve | (624,457) | (397,478) | |
Process chemicals | [3] | 4,477 | 4,028 |
Repairs and maintenance supplies and other | 124,527 | 110,999 | |
Total inventory | $ 841,869 | $ 1,035,131 | |
[1] | Other raw materials and unfinished products include feedstocks and blendstocks, other than crude. | ||
[2] | Finished products include gasolines, jet fuels, diesels, lubricants, asphalts, LPG’s and residual fuels. | ||
[3] | Process chemicals include additives and other chemicals. |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Inventory, Net [Abstract] | |||||||
Inventory Valuation Reserves | $ (624,457) | $ (624,457) | $ (397,478) | ||||
Lower of cost or market inventory valuation adjustment | $ (143,600) | $ (225,500) | $ 135,500 | $ 6,500 | $ 226,979 | $ 397,478 | $ 0 |
Excess of current cost over the LIFO value of inventory | 273,000 | ||||||
Increase or reduction in cost of products sold | $ 9,200 |
Properties, Plants and Equipm60
Properties, Plants and Equipment (Components Of Property, Plants And Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Properties, plants and equipment, at cost | $ 5,490,189 | $ 4,852,441 |
Accumulated depreciation | (1,374,527) | (1,181,902) |
Properties, plants and equip, net | 4,115,662 | 3,670,539 |
Land, buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants and equipment, at cost | 305,712 | 255,260 |
Refining facilities | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants and equipment, at cost | 2,833,125 | 2,634,432 |
Pipelines and terminals | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants and equipment, at cost | 1,321,398 | 1,226,923 |
Transportation vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants and equipment, at cost | 21,289 | 35,178 |
Other fixed assets | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants and equipment, at cost | 158,401 | 136,545 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants and equipment, at cost | $ 850,264 | $ 564,103 |
Properties, Plants and Equipm61
Properties, Plants and Equipment (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Capitalized interest | $ 5.5 | $ 11.8 | $ 12.1 |
Depreciation expense | 233.3 | 261.8 | 213.6 |
HEP | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 58.7 | $ 58.1 | $ 62.3 |
Goodwill (Schedule Of Changes B
Goodwill (Schedule Of Changes By Segment To The Carrying Amount Of Goodwill) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Refining Segment | |
Goodwill [Line Items] | |
Goodwill, Gross | $ 2,042.8 |
Cheyenne [Member] | |
Goodwill [Line Items] | |
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 8.00% |
Variable Interest Entity, Primary Beneficiary [Member] | |
Goodwill [Line Items] | |
Goodwill, Gross | $ 289 |
Environmental (Details)
Environmental (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Loss Contingencies [Line Items] | |||
Environmental remediation costs | $ 14.7 | $ 28.5 | $ 13.2 |
Accrued environmental liability | 98.1 | 104.5 | |
Other Noncurrent Liabilities [Member] | |||
Loss Contingencies [Line Items] | |||
Accrued environmental liability | $ 83.5 | $ 81.8 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2014 | Jun. 30, 2013 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity under revolving credit agreement | $ 1,000,000,000 | |||||
Letters of Credit Outstanding, Amount | $ 6,000,000 | |||||
Effective interest rate on debt | 2.572% | 2.152% | ||||
Long-term debt | $ 1,040,040,000 | $ 1,054,297,000 | ||||
Gains (Losses) on Extinguishment of Debt | $ (7,700,000) | $ (22,100,000) | 1,370,000 | 7,677,000 | $ 22,109,000 | |
Redemption premium on early extinguishment of debt | 14,200,000 | |||||
Amortization of Debt Discount (Premium) | $ 7,900,000 | |||||
Plains [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from sale of storage assets | $ 40,000,000 | |||||
Plains [Member] | Lease [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Term of lease, years | P15Y | |||||
HEP | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity under revolving credit agreement | $ 850,000,000 | |||||
Borrowings outstanding under revolving credit agreement | 712,000,000 | 571,000,000 | ||||
Long-term debt | 1,008,752,000 | 866,986,000 | ||||
Letter of Credit [Member] | HEP | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity under revolving credit agreement | $ 50,000,000 | |||||
9.875% Senior Notes Due 2017 | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate, senior notes | 9.875% | |||||
Senior notes | $ 286,800,000 | |||||
Debt Instrument, Repurchased Face Amount | $ 301,000,000 | |||||
6.875% Senior Notes Due 2018 | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate, senior notes | 6.875% | 6.875% | ||||
Long-term debt | 154,144,000 | |||||
Senior notes | $ 150,000,000 | 150,000,000 | ||||
Gains (Losses) on Extinguishment of Debt | (1,400,000) | |||||
Redemption premium on early extinguishment of debt | (5,200,000) | |||||
Amortization of Debt Discount (Premium) | 3,800,000 | |||||
Extinguishment of Debt, Amount | $ 155,200,000 | |||||
8.25% Senior Notes Due 2018 | HEP | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate, senior notes | 8.25% | 8.25% | ||||
Senior notes | $ 150,000,000 | |||||
Redemption premium on early extinguishment of debt | 6,200,000 | |||||
Senior Notes Aggregate Redemption Amount | 156,200,000 | |||||
Amortization of Financing Costs and Discounts | $ 1,500,000 | |||||
Debt Instrument, Maturity Date | Mar. 1, 2018 | |||||
6.5% Senior Notes Due 2020 | HEP | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate, senior notes | 6.50% | |||||
Long-term debt | $ 296,752,000 | 295,986,000 | ||||
Senior notes | $ 300,000,000 | $ 300,000,000 | ||||
Debt Instrument, Maturity Date | Mar. 1, 2020 |
Debt (Carrying Amounts Of Long-
Debt (Carrying Amounts Of Long-Term Debt) (Details) - USD ($) | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Jun. 30, 2013 |
Debt Instrument [Line Items] | |||||
Long-term Debt, Excluding Current Maturities | $ 1,040,040,000 | $ 1,054,297,000 | |||
Total | 1,043,288,000 | ||||
Long-term Debt and Capital Lease Obligations | 1,040,040,000 | 1,054,297,000 | |||
HEP | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Excluding Current Maturities | 1,008,752,000 | 866,986,000 | |||
Borrowings outstanding under revolving credit agreement | 712,000,000 | 571,000,000 | |||
Long-term Debt and Capital Lease Obligations | $ 1,008,752,000 | 866,986,000 | |||
9.875% Senior Notes Due 2017 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 9.875% | ||||
Senior Notes, Noncurrent | $ 286,800,000 | ||||
6.875% Senior Notes Due 2018 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 6.875% | 6.875% | |||
Long-term Debt, Excluding Current Maturities | 154,144,000 | ||||
Senior Notes, Noncurrent | $ 150,000,000 | 150,000,000 | |||
Debt Instrument, Unamortized Premium | 4,144,000 | ||||
Holly Financing Obligation | |||||
Debt Instrument [Line Items] | |||||
Capital Lease Obligations | $ 31,288,000 | 33,167,000 | |||
Long-term Debt and Capital Lease Obligations | $ 31,288,000 | 187,311,000 | |||
8.25% Senior Notes Due 2018 | HEP | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.25% | 8.25% | |||
Senior Notes, Noncurrent | $ 150,000,000 | ||||
6.5% Senior Notes Due 2020 | HEP | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | ||||
Long-term Debt, Excluding Current Maturities | $ 296,752,000 | 295,986,000 | |||
Senior Notes, Noncurrent | 300,000,000 | 300,000,000 | |||
Debt Instrument, Unamortized Discount | $ (3,248,000) | $ (4,014,000) |
Debt (Principal Maturities Of L
Debt (Principal Maturities Of Long-Term Debt) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Debt Disclosure [Abstract] | |
Next Twelve Months | $ 2,121 |
Year Two | 2,393 |
Year Three | 714,700 |
Year Four | 3,046 |
Year Five | 303,437 |
Thereafter | 17,591 |
Total | $ 1,043,288 |
Derivative Instruments and He67
Derivative Instruments and Hedging Activities Derivatives and Hedging Instruments Gains Losses due to Settlements Hedge Ineffectiveness (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Trading Activity, Gains and Losses, Net [Line Items] | |||
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | $ (52,495) | $ 55,714 | $ (24,318) |
Change in Fair Value | (3,983) | 107,518 | (8,808) |
Gain (Loss) Reclassified to Earnings due to Settlements | (49,592) | (52,884) | (16,410) |
Amortization of discontinued hedges reclassified to earnings | 1,080 | 1,080 | 900 |
Gain (Loss) recognized in earnings due to settlements | 48,512 | 51,804 | 15,510 |
Derivative, Net Hedge Ineffectiveness Gain (Loss) | 4,649 | (4,650) | 560 |
Sales [Member] | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Gain (Loss) recognized in earnings due to settlements | 245,819 | 88,326 | (20,060) |
Derivative, Net Hedge Ineffectiveness Gain (Loss) | (274) | 274 | 45 |
Operating expenses | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Gain (Loss) recognized in earnings due to settlements | (17,607) | 791 | (3,379) |
Derivative, Net Hedge Ineffectiveness Gain (Loss) | 547 | (547) | |
Cost of products sold | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Gain (Loss) recognized in earnings due to settlements | (179,700) | (37,313) | 38,949 |
Derivative, Net Hedge Ineffectiveness Gain (Loss) | $ 4,376 | $ (4,377) | $ 515 |
Derivative Instruments and He68
Derivative Instruments and Hedging Activities Notional Contracts by Derivative Type (Details) | 3 Months Ended |
Dec. 31, 2015MMBTUbbl | |
Forward Contracts [Member] | Price Risk Derivative [Member] | |
economic hedges by derivative type [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | 525,000 |
Forward Contracts [Member] | Price Risk Derivative [Member] | Maturing in Next Twelve Months [Member] | |
economic hedges by derivative type [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | 525,000 |
Produced Gasoline Member | Price Risk Derivative [Member] | |
economic hedges by derivative type [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | 625,000 |
Produced Gasoline Member | Price Risk Derivative [Member] | Maturing in Next Twelve Months [Member] | |
economic hedges by derivative type [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | 625,000 |
Commodity Contract [Member] | Economic Hedges [Member] | |
economic hedges by derivative type [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | 11,712,000 |
Commodity Contract [Member] | Economic Hedges [Member] | Maturing in Next Twelve Months [Member] | |
economic hedges by derivative type [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | 11,712,000 |
Natural Gas - Short [Member] | Economic Hedges [Member] | |
economic hedges by derivative type [Line Items] | |
Derivative, Nonmonetary Notional Amount, Energy Measure | MMBTU | 19,200,000 |
Natural Gas - Short [Member] | Economic Hedges [Member] | Maturing in Next Twelve Months [Member] | |
economic hedges by derivative type [Line Items] | |
Derivative, Nonmonetary Notional Amount, Energy Measure | MMBTU | 9,600,000 |
Natural Gas - Short [Member] | Economic Hedges [Member] | Maturing in Year Two [Member] | |
economic hedges by derivative type [Line Items] | |
Derivative, Nonmonetary Notional Amount, Energy Measure | MMBTU | 9,600,000 |
Natural Gas - long [Member] | Price Risk Derivative [Member] | |
economic hedges by derivative type [Line Items] | |
Derivative, Nonmonetary Notional Amount, Energy Measure | MMBTU | 19,200,000 |
Natural Gas - long [Member] | Price Risk Derivative [Member] | Maturing in Next Twelve Months [Member] | |
economic hedges by derivative type [Line Items] | |
Derivative, Nonmonetary Notional Amount, Energy Measure | MMBTU | 9,600,000 |
Natural Gas - long [Member] | Price Risk Derivative [Member] | Maturing in Year Two [Member] | |
economic hedges by derivative type [Line Items] | |
Derivative, Nonmonetary Notional Amount, Energy Measure | MMBTU | 9,600,000 |
Natural Gas - long [Member] | Economic Hedges [Member] | |
economic hedges by derivative type [Line Items] | |
Derivative, Nonmonetary Notional Amount, Energy Measure | MMBTU | 19,200,000 |
Natural Gas - long [Member] | Economic Hedges [Member] | Maturing in Next Twelve Months [Member] | |
economic hedges by derivative type [Line Items] | |
Derivative, Nonmonetary Notional Amount, Energy Measure | MMBTU | 9,600,000 |
Natural Gas - long [Member] | Economic Hedges [Member] | Maturing in Year Two [Member] | |
economic hedges by derivative type [Line Items] | |
Derivative, Nonmonetary Notional Amount, Energy Measure | MMBTU | 9,600,000 |
NYMEX WTI Short [Member] | Economic Hedges [Member] | |
economic hedges by derivative type [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | 1,840,000 |
NYMEX WTI Short [Member] | Economic Hedges [Member] | Maturing in Next Twelve Months [Member] | |
economic hedges by derivative type [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | 1,840,000 |
Natural Gas [Member] | Economic Hedges [Member] | |
economic hedges by derivative type [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | 20,616,000 |
Natural Gas [Member] | Economic Hedges [Member] | Maturing in Next Twelve Months [Member] | |
economic hedges by derivative type [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | 10,308,000 |
Natural Gas [Member] | Economic Hedges [Member] | Maturing in Year Two [Member] | |
economic hedges by derivative type [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | 10,308,000 |
Physical Contracts - Long [Member] | Price Risk Derivative [Member] | |
economic hedges by derivative type [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | 38,000 |
Physical Contracts - Long [Member] | Price Risk Derivative [Member] | Maturing in Next Twelve Months [Member] | |
economic hedges by derivative type [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | 38,000 |
Derivative Instruments and He69
Derivative Instruments and Hedging Activities Location of Gain Loss in Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Economic Hedges, Gain (Loss) | $ 36,079 | $ 68,324 | $ 15,501 |
Cost of products sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Economic Hedges, Gain (Loss) | 48,082 | 68,509 | 20,751 |
Operating expenses | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Economic Hedges, Gain (Loss) | $ (12,003) | $ (185) | $ (5,250) |
Derivative Instruments and He70
Derivative Instruments and Hedging Activities Interest Rate Swaps (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative [Line Items] | |||
Unrealized Gain (Loss) on Interest Rate Cash Flow Hedges, Pretax, Accumulated Other Comprehensive Income (Loss) | $ 3,983 | $ (107,518) | $ 8,808 |
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 49,592 | 52,884 | 16,410 |
Gain (Loss) on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Net | (1,080) | (1,080) | (900) |
Gain (Loss) recognized in earnings due to settlements | 48,512 | 51,804 | 15,510 |
HEP | |||
Derivative [Line Items] | |||
Unrealized Gain (Loss) on Interest Rate Cash Flow Hedges, Pretax, Accumulated Other Comprehensive Income (Loss) | (1,864) | (2,104) | 1,194 |
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 2,100 | 2,202 | 2,092 |
Gain (Loss) on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Net | 849 | ||
Unrealized Gain (Loss) on Interest Rate Cash Flow Hedges, Pretax, Accumulated Other Comprehensive Income (Loss) | 236 | 98 | 4,135 |
Sales Revenue, Services, Net [Member] | |||
Derivative [Line Items] | |||
Gain (Loss) recognized in earnings due to settlements | $ (2,100) | $ (2,202) | $ (2,941) |
Derivative Instruments and He71
Derivative Instruments and Hedging Activities (Summary Of Balance Sheet Locations And Related Fair Values Of Outstanding Derivative Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | $ 3,773 | $ 54,869 |
Derivative Liability, Fair Value, Net Liability | 61,947 | 25,897 |
Prepayments and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | 3,469 | 53,850 |
Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Net Liability | 36,976 | |
Other Intangible Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | 304 | 1,019 |
Other Long Term Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Net Liability | 24,971 | 25,897 |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 304 | 174,677 |
Derivative Asset, Fair Value, Gross Liability | 0 | (142,115) |
Derivative, Fair Value, Net | 304 | 32,562 |
Derivative Liability, Fair Value, Gross Liability | 38,869 | 22,506 |
Derivative Liability, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability, Fair Value, Net Liability | 38,869 | 22,506 |
Designated as Hedging Instrument [Member] | Commodity Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 173,658 |
Derivative Asset, Fair Value, Gross Liability | 0 | (142,115) |
Derivative, Fair Value, Net | 0 | 31,543 |
Derivative Liability, Fair Value, Gross Liability | 38,755 | 21,441 |
Derivative Liability, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability, Fair Value, Net Liability | 38,755 | 21,441 |
Designated as Hedging Instrument [Member] | Interest rate swap | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 304 | 1,019 |
Derivative Asset, Fair Value, Gross Liability | 0 | 0 |
Derivative, Fair Value, Net | 304 | 1,019 |
Derivative Liability, Fair Value, Gross Liability | 114 | 1,065 |
Derivative Liability, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability, Fair Value, Net Liability | 114 | 1,065 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 3,469 | 35,249 |
Derivative Asset, Fair Value, Gross Liability | 0 | (12,942) |
Derivative, Fair Value, Net | 3,469 | 22,307 |
Derivative Liability, Fair Value, Gross Liability | 60,196 | 20,398 |
Derivative Liability, Fair Value, Gross Asset | (37,118) | 17,007 |
Derivative Liability, Fair Value, Net Liability | 23,078 | 3,391 |
Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 17,630 |
Derivative Asset, Fair Value, Gross Liability | 0 | (12,942) |
Derivative, Fair Value, Net | 0 | 4,688 |
Derivative Liability, Fair Value, Gross Liability | 60,196 | 20,398 |
Derivative Liability, Fair Value, Gross Asset | (37,118) | 17,007 |
Derivative Liability, Fair Value, Net Liability | 23,078 | 3,391 |
Not Designated as Hedging Instrument [Member] | Nymex Futures Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 3,469 | 17,619 |
Derivative Asset, Fair Value, Gross Liability | 0 | 0 |
Derivative, Fair Value, Net | $ 3,469 | 17,619 |
Derivative Liability, Fair Value, Gross Liability | 0 | |
Derivative Liability, Fair Value, Gross Asset | 0 | |
Derivative Liability, Fair Value, Net Liability | $ 0 |
Derivative Instruments and He72
Derivative Instruments and Hedging Activities (Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2015USD ($)Interest_Rate_Swaps | Dec. 31, 2015USD ($)Interest_Rate_Swaps | Dec. 31, 2014 | |
Derivative [Line Items] | |||
Available-for-sale Securities, Change in Net Unrealized Holding Gain (Loss) before Taxes | $ 2.2 | $ 2.2 | |
Effective interest rate on debt | 2.572% | 2.572% | 2.152% |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | $ (40.9) | $ (40.9) | |
Net unrealized gain (loss) transferred to income statement | $ (20.9) | ||
Current Interest Rate Swap | |||
Derivative [Line Items] | |||
Number of derivative instruments | Interest_Rate_Swaps | 3 | 3 | |
HEP | Interest Rate Contract [Member] | |||
Derivative [Line Items] | |||
Credit agreement advance | $ 305 | $ 305 | |
Fixed interest rate | 0.74% | 0.74% | |
Effective interest rate on debt | 2.99% | 2.99% | |
Credit agreement advance maturing in 2017 | $ 150 | $ 150 | |
HEP | Current Interest Rate Swap | |||
Derivative [Line Items] | |||
Credit agreement advance maturing 2016 | $ 155 | $ 155 | |
Fixed interest rate | 0.99% | 0.99% | |
Rate added to fixed base rate | 2.25% | ||
Effective interest rate on debt | 3.24% | 3.24% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
State Jurisdiction | Kansas | |
Operating Loss Carryforwards [Line Items] | |
Income tax credit | $ 6.6 |
Tax Year 2012 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Income Tax Examination, Year under Examination | 2,012 |
Tax Year 2013 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Income Tax Examination, Year under Examination | 2,013 |
Income Taxes (Provision For Inc
Income Taxes (Provision For Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Federal, Current | $ 480,446 | $ 294,509 | $ 270,024 |
State, Current | 71,750 | 40,325 | 7,148 |
Federal, Deferred | (127,714) | (168,756) | 94,896 |
State, Deferred | (18,422) | (24,906) | 19,508 |
Income tax provision total | $ 406,060 | $ 141,172 | $ 391,576 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Effective Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Tax computed at statutory rate | $ 422,999 | $ 163,625 | $ 405,790 |
State income taxes, net of federal tax benefit | 40,385 | 13,641 | 21,363 |
Domestic production activities deduction | (35,200) | (20,998) | (22,101) |
Noncontrolling interest in net income | (24,155) | (17,431) | (12,378) |
Uncertain tax positions | 0 | 0 | (193) |
Other | 2,031 | 2,335 | (905) |
Income tax provision total | $ 406,060 | $ 141,172 | $ 391,576 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Deferred tax assets, noncurrent | $ 0 | |
Deferred tax assets, gross | $ 281,852 | 75,340 |
Deferred tax liabilities, gross | (779,758) | (739,619) |
Deferred taxes, net | (497,906) | (664,279) |
Accrued employee benefits | ||
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Deferred tax assets, noncurrent | 22,355 | 22,973 |
Reserve for Environmental Costs [Member] | ||
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Deferred tax assets, noncurrent | 42,517 | 30,744 |
Deferred Tax Asset, Derivatives [Domain] | ||
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Deferred tax assets, noncurrent | 21,815 | |
Deferred Tax Liability Derivatives [Member] | ||
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Deferred tax liabilities, noncurrent | (11,601) | |
Inventory Valuation Reserve [Member] | ||
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Deferred tax assets, noncurrent | 175,614 | |
Deferred tax liabilities, noncurrent | (7,376) | |
Property, Plant and Equipment [Member] | ||
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Deferred tax liabilities, noncurrent | (648,542) | (581,017) |
Deferred turnaround costs | ||
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Deferred tax liabilities, noncurrent | (104,944) | (110,827) |
Valuation Allowance, Other Tax Carryforward [Member] | ||
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Deferred tax assets, noncurrent | 8,033 | 10,119 |
Postretirement Benefit Costs [Member] | ||
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Deferred tax assets, noncurrent | 11,518 | 11,504 |
Deferred tax liabilities, noncurrent | 0 | |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Deferred tax liabilities, noncurrent | (23,429) | (25,244) |
Other | ||
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Deferred tax assets, noncurrent | 0 | |
Deferred tax liabilities, noncurrent | $ (2,843) | $ (3,554) |
Income Taxes (Reconciliation 77
Income Taxes (Reconciliation Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Balance at January 1 | $ 9,006 | $ 12,641 |
Additions for tax positions of prior years | 0 | 25,728 |
Reductions for tax positions of prior years | 0 | (5,092) |
Settlements | (9,006) | (24,271) |
Balance at December 31 | $ 0 | $ 9,006 |
Stockholders' Equity (Changes T
Stockholders' Equity (Changes To Equity) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Increase (Decrease) in Common Shares Outstanding [Roll Forward] | ||||
Common shares outstanding at January 1 | 196,086,090 | 198,830,351 | 203,551,496 | |
Issuance of restricted stock, excluding restricted stock with performance feature | 447,534 | 376,622 | 292,855 | |
Vesting of performance units | 136,896 | 416,111 | 210,819 | |
Vesting of restricted stock with performance feature | 43,774 | 77,430 | 15,141 | |
Forfeitures of restricted stock | (51,332) | (76,107) | (15,794) | |
Purchase of treasury stock | [1] | (16,428,574) | (3,538,317) | (5,224,166) |
Common shares outstanding at December 31 | 180,234,388 | 196,086,090 | 198,830,351 | |
Shares withheld for the payment of taxes | 151,967 | 279,680 | 235,922 | |
Authorized share repurchase | $ 1,000 | |||
Stock repurchase program, value | 308.2 | |||
Value of shares withheld related to tax withholding for share-based compensation | $ 6.2 | $ 11.4 | $ 11.3 | |
[1] | Includes 151,967, 279,680 and 235,922 shares, respectively, withheld under the terms of stock-based compensation agreements to provide funds for the payment of payroll and income taxes due at the vesting of share-based awards, as well as other stock repurchases under separate authority from our Board of Directors. |
Other Comprehensive Income (L79
Other Comprehensive Income (Loss) (Components And Allocated Tax Effects Of Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Comprehensive Income (Loss), before Tax [Abstract] | |||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | $ 38 | $ (157) | $ 34 |
Net Unrealized gain (loss) on available-for-sale securities, Tax Expense (Benefit) | 14 | (62) | 17 |
Net unrealized gain (loss) on available-for-sale securities, After-Tax | 24 | (95) | 17 |
Net Unrealized Gain (Loss) on Hedging Activities, Before-Tax | (52,259) | 55,812 | (20,183) |
Net Unrealized Gain (Loss) on Hedging Activities, Tax | (20,282) | 21,583 | (8,669) |
Net Unrealized Gain (Loss) on Hedging Activities, Net of Tax | (31,977) | 34,229 | (11,514) |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | 79 | (11,425) | 37,593 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax | 31 | (4,423) | 14,534 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 48 | (7,002) | 23,059 |
Other comprehensive income (loss) before income taxes | (52,142) | 44,230 | 17,444 |
Other comprehensive income (loss), Tax Expense (Benefit) | (20,237) | 17,098 | 5,882 |
Other comprehensive income (loss) | (31,905) | 27,132 | 11,562 |
Less other comprehensive income (loss) attributable to noncontrolling interest, Before-Tax | 144 | 60 | 2,315 |
Less other comprehensive income (loss) attributable to noncontrolling interest, Tax Expense (Benefit) | 0 | 0 | 0 |
Less other comprehensive income (loss) attributable to noncontrolling interest, After-Tax | 144 | 60 | 2,315 |
Other comprehensive income (loss) attributable to HollyFrontier stockholders, Before-Tax | (52,286) | 44,170 | 15,129 |
Other comprehensive income (loss) attributable to HollyFrontier stockholders, Tax Expense (Benefit) | (20,237) | 17,098 | 5,882 |
Other comprehensive income (loss) attributable to HollyFrontier stockholders, After-Tax | $ (32,049) | $ 27,072 | $ 9,247 |
Other Comprehensive Income (L80
Other Comprehensive Income (Loss) (Accumulated Other Comprehensive Loss In Equity) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Other Comprehensive Income (Loss), before Tax [Abstract] | ||
Unrealized gain on post-retirement benefit obligations | $ 20,737 | $ 20,689 |
Unrealized gain (loss) on marketable securities | (61) | (85) |
Unrealized gain (loss) on hedging instruments | (24,831) | 7,290 |
Accumulated other comprehensive income (loss) | $ (4,155) | $ 27,894 |
Other Comprehensive Income (L81
Other Comprehensive Income (Loss) Other Comprehensive Income (Loss) Amounts Reclassified to Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Comprehensive Income (Loss) Reclassified to Income Statement [Line Items] | |||||||||||
Income tax provision | $ 406,060 | $ 141,172 | $ 391,576 | ||||||||
Net income | (802,508) | (326,328) | (767,823) | ||||||||
Revenues | $ (2,943,559) | $ (3,585,823) | $ (3,701,912) | $ (3,006,626) | $ (4,283,119) | $ (5,317,555) | $ (5,372,600) | $ (4,791,053) | (13,237,920) | (19,764,327) | (20,160,560) |
Operating expenses | (1,060,373) | (1,144,940) | (1,090,850) | ||||||||
General and Administrative Expense | (120,846) | (114,609) | (127,963) | ||||||||
Interest Expense | (43,470) | (43,646) | (68,050) | ||||||||
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | 0 | ||||||||||
Less net income attributable to noncontrolling interest | 62,407 | 45,036 | 31,981 | ||||||||
Net income attributable to HollyFrontier stockholders | $ 43,921 | $ (196,322) | $ (360,824) | $ (226,876) | $ 222,204 | $ (175,006) | $ (176,429) | $ (152,061) | (740,101) | (281,292) | (735,842) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Other Comprehensive Income (Loss) Reclassified to Income Statement [Line Items] | |||||||||||
Reclassifications from Other Comprehensive Income (Loss) to Income Statement | 31,235 | 33,296 | (11,811) | ||||||||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Other Comprehensive Income (Loss) Reclassified to Income Statement [Line Items] | |||||||||||
Interest Income | (51) | 4 | 39 | ||||||||
Available-for-sale Securities, Gross Realized Gains | 42 | 0 | 0 | ||||||||
Gain (Loss) on Sale of Securities, Net | (9) | 4 | 39 | ||||||||
Income tax provision | (3) | 2 | 15 | ||||||||
Net income | (6) | 2 | 24 | ||||||||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Other Comprehensive Income (Loss) Reclassified to Income Statement [Line Items] | |||||||||||
Income tax provision | 18,454 | 19,712 | 5,554 | ||||||||
Net income | 27,958 | 29,890 | 7,015 | ||||||||
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | 46,412 | 49,602 | 12,569 | ||||||||
Less net income attributable to noncontrolling interest | 1,273 | 1,335 | 1,783 | ||||||||
Net income attributable to HollyFrontier stockholders | 29,231 | 31,225 | 8,798 | ||||||||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Commodity Contract [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Other Comprehensive Income (Loss) Reclassified to Income Statement [Line Items] | |||||||||||
Revenues | 245,819 | 88,326 | (20,060) | ||||||||
Cost of Goods Sold | (179,700) | (37,313) | 38,949 | ||||||||
Operating expenses | (17,607) | 791 | (3,379) | ||||||||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Interest Rate Contract [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Other Comprehensive Income (Loss) Reclassified to Income Statement [Line Items] | |||||||||||
Interest Expense | (2,100) | (2,202) | (2,941) | ||||||||
Accumulated Defined Benefit Plans Adjustment [Member] | Other Pension Plan, Postretirement or Supplemental Plans [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Other Comprehensive Income (Loss) Reclassified to Income Statement [Line Items] | |||||||||||
Income tax provision | 1,277 | 1,663 | 1,563 | ||||||||
Net income | 2,022 | 2,633 | 2,477 | ||||||||
Cost of Goods Sold | 271 | 482 | 646 | ||||||||
Operating expenses | 2,681 | 3,366 | 2,868 | ||||||||
Interest Expense | 347 | 448 | 526 | ||||||||
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | 3,299 | 4,296 | 4,040 | ||||||||
Accumulated Defined Benefit Plans Adjustment [Member] | Pension Plan [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Other Comprehensive Income (Loss) Reclassified to Income Statement [Line Items] | |||||||||||
Income tax provision | 0 | 0 | (14,547) | ||||||||
Net income | 0 | 0 | (23,042) | ||||||||
Cost of Goods Sold | 0 | 0 | (3,226) | ||||||||
Operating expenses | 0 | 0 | (30,127) | ||||||||
Interest Expense | 0 | 0 | (4,236) | ||||||||
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | 0 | (37,589) | |||||||||
Accumulated Defined Benefit Plans Adjustment [Member] | Other Pension Plan [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Other Comprehensive Income (Loss) Reclassified to Income Statement [Line Items] | |||||||||||
Income tax provision | (8) | (356) | (43) | ||||||||
Net income | (12) | (564) | (68) | ||||||||
General and Administrative Expense | $ (20) | $ (920) | $ (111) |
Retirement Plan (Narrative) (De
Retirement Plan (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Pension Contributions | $ 22,700 | ||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | 0 | $ 0 | $ (37,589) |
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | 0 | ||
Pension expense | 42,600 | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | 17,200 | 16,100 | 15,500 |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | (39,500) | ||
Transition Benefit Costs | 11,000 | 10,800 | 12,500 |
Defined Benefit Post-retirement Health Coverage [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | 2,100 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Year Two | 1,800 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Year Three | 1,900 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Year Four | 1,800 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Year Five | 1,900 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | 9,200 | ||
Retirement Restoration Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension expense | 100 | 1,200 | $ 400 |
Accrued liability | 2,800 | $ 3,000 | |
Projected benefit obligations under this plan | 2,800 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | $ 200 |
Retirement Plan (Changes in Ben
Retirement Plan (Changes in Benefit Obligation and Plan Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension plan's benefit obligation - beginning of year | $ 23,633 | $ 15,715 | |
Defined Benefit Plan, Service Cost | 1,694 | 895 | $ 1,112 |
Interest cost | 819 | 638 | 665 |
Defined Benefit Plan, Contributions by Plan Participants | 593 | 573 | |
Defined Benefit Plan, Plan Amendments | 0 | 3,383 | |
Benefits paid | (2,260) | (1,533) | |
Actuarial loss | (3,278) | 3,962 | |
Pension plan's benefit obligation - end of year | 21,201 | 23,633 | 15,715 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets - beginning of year | 0 | 0 | |
Benefits paid | (2,260) | (1,533) | |
Employer contributions | 1,667 | 960 | |
Defined Benefit Plan, Contributions by Plan Participants | 593 | 573 | |
Fair value of plan assets - end of year | 0 | 0 | $ 0 |
Defined Benefit Plan, Funded Status of Plan | (21,201) | (23,633) | |
Accrued post-retirement plan liability | (21,201) | (23,633) | |
Post-retirement plan accumulated other comprehensive loss | (1,613) | (5,074) | |
Post-retirement plan accumulated other comprehensive loss prior service credit | 35,937 | 39,419 | |
Post-retirement plan accumulated other comprehensive loss | $ 34,324 | $ 34,345 |
Retirement Plan (Weighted Avera
Retirement Plan (Weighted Average Assumptions Used to Determine End of Period Benefit Obligations) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Assumptions Used - Discount Rate | 3.90% | 3.60% | |
Health Care Cost Trend Rate Assumed for Next Fiscal Year | 8.00% | 8.00% | |
Ultimate Health Care Cost Trend Rate | 5.00% | 5.00% | |
Year that Rate Reaches Ultimate Trend Rate | 2,041 | 2,042 | |
Defined Benefit Post-retirement Health Coverage [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assumptions Used - Discount Rate | 3.60% | 4.25% | 3.45% |
Health Care Cost Trend Rate Assumed for Next Fiscal Year | 8.00% | 8.00% | 8.10% |
Ultimate Health Care Cost Trend Rate | 5.00% | 5.00% | 5.00% |
Year that Rate Reaches Ultimate Trend Rate | 2,042 | 2,045 | 2,023 |
Retirement Plan (Net Periodic P
Retirement Plan (Net Periodic Pension Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | $ 0 | $ 0 | $ 37,589 |
Defined Benefit Plan, Service Cost | 1,694 | 895 | 1,112 |
Interest cost on projected benefit obligations | 819 | 638 | 665 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | (3,482) | (4,296) | (5,896) |
Defined Benefit Plan, Amortization of Gains (Losses) | 183 | 0 | 130 |
Loss on settlement | 0 | 0 | 1,726 |
Defined Benefit Plan, Net Periodic Benefit Cost | (786) | (2,763) | (2,263) |
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | 0 | ||
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | $ 39,500 | ||
Pension Plan [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | $ 0 | $ 37,589 |
Retirement Plan (Weighted Ave86
Retirement Plan (Weighted Average Assumptions Used for Health Care Trend Rates) (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Assumptions Used - Discount Rate | 3.90% | 3.60% |
Health Care Cost Trend Rate Assumed for Next Fiscal Year | 8.00% | 8.00% |
Ultimate Health Care Cost Trend Rate | 5.00% | 5.00% |
Year that Rate Reaches Ultimate Trend Rate | 2,041 | 2,042 |
Retirement Plan (Effect of One
Retirement Plan (Effect of One Percent Change in Health Care Cost Trend Rates) (Details) - Defined Benefit Post-retirement Health Coverage [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Defined Benefit Plan, Effect of One Percent Increase, Service Cost | $ 268 |
Defined Benefit Plan, Effect of One Percentage Point Decrease on Service Cost | (222) |
Defined Benefit Plan, Effect of One Percent Increase, Interest Cost | 68 |
Defined Benefit Plan, Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation | (58) |
Defined Benefit Plan, Effect of One Percentage Point Increase on Accumulated Postretirement Benefit Obligation | 1,443 |
Defined Benefit Plan, Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation | $ (1,254) |
Lease Commitments (Schedule Of
Lease Commitments (Schedule Of Minimum Future Rental Commitments Under Operating Leases) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Leases, Operating [Abstract] | |
Minimum lease commitments due in twelve months | $ 70,512 |
Minimum lease commitments due in year two | 65,807 |
Minimum lease commitments due in year three | 62,364 |
Minimum lease commitments due in year four | 58,664 |
Minimum lease commitments due in year five | 57,047 |
Thereafter | 221,589 |
Total | $ 535,983 |
Lease Commitments (Narrative) (
Lease Commitments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Leased Assets [Line Items] | |||
Rental expense | $ 107.3 | $ 89.8 | $ 72.6 |
HEP | |||
Operating Leased Assets [Line Items] | |||
Rental expense | $ 8.9 | $ 8 | $ 8.3 |
Contingencies And Contractual90
Contingencies And Contractual Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Transportation and Storage Contracts, Fiscal Year Maturity | |||
Next Twelve Months | $ 113,914 | ||
Year Two | 102,613 | ||
Year Three | 84,026 | ||
Year Four | 75,514 | ||
Year Five | 65,444 | ||
Thereafter | 548,010 | ||
Total | 989,521 | ||
Results of Operations, Transportation Costs | $ 137,700 | $ 118,000 | $ 95,200 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segment Reporting Information [Line Items] | |||
Reportable segments | 2 | ||
Variable Interest Entity, Primary Beneficiary [Member] | |||
Segment Reporting Information [Line Items] | |||
Equity Method Investment, Ownership Percentage | 75.00% | ||
Revenue for reportable segment | $ 66.7 | $ 57.3 | $ 53.4 |
Frontier Pipeline [Member] | |||
Segment Reporting Information [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
Frontier Pipeline [Member] | |||
Segment Reporting Information [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
SLC Pipeline | |||
Segment Reporting Information [Line Items] | |||
Equity Method Investment, Ownership Percentage | 25.00% |
Segment Information (Schedule O
Segment Information (Schedule Of Segment Reporting Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Sales and other revenues | $ 2,943,559 | $ 3,585,823 | $ 3,701,912 | $ 3,006,626 | $ 4,283,119 | $ 5,317,555 | $ 5,372,600 | $ 4,791,053 | $ 13,237,920 | $ 19,764,327 | $ 20,160,560 |
Depreciation and amortization | 346,151 | 363,381 | 303,446 | ||||||||
Income (loss) from operations | (56,706) | $ 322,605 | $ 589,832 | $ 388,622 | (354,418) | $ 302,611 | $ 296,345 | $ 270,996 | 1,244,353 | 515,534 | 1,246,074 |
Property, Plant and Equipment, Additions | 676,155 | 564,821 | 425,127 | ||||||||
Assets | 8,388,299 | 9,230,047 | 8,388,299 | 9,230,047 | 10,055,763 | ||||||
Refining | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales and other revenues | 13,171,183 | 19,706,225 | 20,105,443 | ||||||||
Depreciation and amortization | 273,799 | 293,871 | 233,182 | ||||||||
Income (loss) from operations | 1,187,875 | 491,106 | 1,237,687 | ||||||||
Property, Plant and Equipment, Additions | 567,616 | 435,598 | 339,356 | ||||||||
Assets | 6,840,545 | 6,927,126 | 6,840,545 | 6,927,126 | 7,094,558 | ||||||
HEP | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales and other revenues | 358,875 | 332,626 | 307,053 | ||||||||
Depreciation and amortization | 61,236 | 60,548 | 64,701 | ||||||||
Income (loss) from operations | 181,778 | 156,453 | 133,522 | ||||||||
Property, Plant and Equipment, Additions | 94,516 | 109,693 | 56,613 | ||||||||
Assets | 1,569,089 | 1,472,098 | 1,569,089 | 1,472,098 | 1,412,931 | ||||||
Corporate and Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales and other revenues | 663 | 2,103 | 1,314 | ||||||||
Depreciation and amortization | 11,944 | 9,790 | 6,391 | ||||||||
Income (loss) from operations | (123,004) | (129,874) | (123,030) | ||||||||
Property, Plant and Equipment, Additions | 14,023 | 19,530 | 29,158 | ||||||||
Assets | 289,225 | 1,150,865 | 289,225 | 1,150,865 | 1,881,121 | ||||||
Consolidations and Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales and other revenues | (292,801) | (276,627) | (253,250) | ||||||||
Depreciation and amortization | (828) | (828) | (828) | ||||||||
Income (loss) from operations | (2,296) | (2,151) | (2,105) | ||||||||
Property, Plant and Equipment, Additions | 0 | 0 | 0 | ||||||||
Assets | $ (310,560) | $ (320,042) | $ (310,560) | $ (320,042) | $ (332,847) |
Supplemental Financial Inform93
Supplemental Financial Information (Consolidating Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 66,533 | $ 567,985 | $ 940,103 | $ 1,757,699 |
Marketable securities | 144,019 | 474,110 | ||
Accounts receivable, net | 351,978 | 589,905 | ||
Inventories | 841,869 | 1,035,131 | ||
Income tax receivable | 0 | 11,719 | ||
Prepayments and other | 43,666 | 104,148 | ||
Total current assets | 1,448,065 | 2,782,998 | ||
Properties, plants and equip, net | 4,115,662 | 3,670,539 | ||
Intangibles and other assets | 2,824,572 | 2,776,510 | ||
Total assets | 8,388,299 | 9,230,047 | 10,055,763 | |
Accounts payable | 716,490 | 1,108,138 | ||
Income taxes payable | 8,142 | 19,642 | ||
Accrued liabilities | 135,983 | 106,214 | ||
Total current liabilities | 860,615 | 1,233,994 | ||
Long-term debt | 1,040,040 | 1,054,297 | ||
Liability to HEP | 0 | 0 | ||
Deferred income tax liabilities | 497,906 | 664,279 | ||
Other long-term liabilities | 179,965 | 176,758 | ||
Investment in HEP | 0 | 0 | ||
Equity – HollyFrontier | 5,253,415 | 5,523,584 | ||
Equity – noncontrolling interest | 556,358 | 577,135 | ||
Total liabilities and equity | 8,388,299 | 9,230,047 | ||
HollyFrontier Corp. Before Consolidation of HEP | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 51,520 | 565,155 | 933,751 | 1,752,462 |
Marketable securities | 144,019 | 474,110 | ||
Accounts receivable, net | 355,020 | 588,407 | ||
Inventories | 839,897 | 1,033,191 | ||
Income tax receivable | 11,719 | |||
Prepayments and other | 48,288 | 109,928 | ||
Total current assets | 1,438,744 | 2,782,510 | ||
Properties, plants and equip, net | 3,270,804 | 2,867,941 | ||
Intangibles and other assets | 2,410,879 | 2,418,926 | ||
Total assets | 7,120,427 | 8,069,377 | ||
Accounts payable | 738,024 | 1,125,146 | ||
Income taxes payable | 8,142 | 19,642 | ||
Accrued liabilities | 117,346 | 88,116 | ||
Total current liabilities | 863,512 | 1,232,904 | ||
Long-term debt | 31,288 | 187,311 | ||
Liability to HEP | 220,998 | 233,217 | ||
Deferred income tax liabilities | 497,475 | 663,912 | ||
Other long-term liabilities | 125,684 | 135,474 | ||
Investment in HEP | 129,961 | 99,618 | ||
Equity – HollyFrontier | 5,251,509 | 5,516,941 | ||
Equity – noncontrolling interest | 0 | 0 | ||
Total liabilities and equity | 7,120,427 | 8,069,377 | ||
HEP Subsidiary | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 15,013 | 2,830 | 6,352 | 5,237 |
Marketable securities | 0 | 0 | ||
Accounts receivable, net | 41,075 | 40,129 | ||
Inventories | 1,972 | 1,940 | ||
Income tax receivable | 0 | |||
Prepayments and other | 3,082 | 2,443 | ||
Total current assets | 61,142 | 47,342 | ||
Properties, plants and equip, net | 1,090,373 | 1,062,430 | ||
Intangibles and other assets | 417,574 | 362,326 | ||
Total assets | 1,569,089 | 1,472,098 | ||
Accounts payable | 22,583 | 21,623 | ||
Income taxes payable | 0 | 0 | ||
Accrued liabilities | 26,341 | 26,321 | ||
Total current liabilities | 48,924 | 47,944 | ||
Long-term debt | 1,008,752 | 866,986 | ||
Liability to HEP | 0 | 0 | ||
Deferred income tax liabilities | 431 | 367 | ||
Other long-term liabilities | 59,306 | 47,170 | ||
Investment in HEP | 0 | 0 | ||
Equity – HollyFrontier | 357,247 | 414,549 | ||
Equity – noncontrolling interest | 94,429 | 95,082 | ||
Total liabilities and equity | 1,569,089 | 1,472,098 | ||
Consolidations and Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Marketable securities | 0 | 0 | ||
Accounts receivable, net | (44,117) | (38,631) | ||
Inventories | 0 | 0 | ||
Income tax receivable | 0 | |||
Prepayments and other | (7,704) | (8,223) | ||
Total current assets | (51,821) | (46,854) | ||
Properties, plants and equip, net | (245,515) | (259,832) | ||
Intangibles and other assets | (3,881) | (4,742) | ||
Total assets | (301,217) | (311,428) | ||
Accounts payable | (44,117) | (38,631) | ||
Income taxes payable | 0 | 0 | ||
Accrued liabilities | (7,704) | (8,223) | ||
Total current liabilities | (51,821) | (46,854) | ||
Long-term debt | 0 | 0 | ||
Liability to HEP | (220,998) | (233,217) | ||
Deferred income tax liabilities | 0 | 0 | ||
Other long-term liabilities | (5,025) | (5,886) | ||
Investment in HEP | (129,961) | (99,618) | ||
Equity – HollyFrontier | (355,341) | (407,906) | ||
Equity – noncontrolling interest | 461,929 | 482,053 | ||
Total liabilities and equity | $ (301,217) | $ (311,428) |
Supplemental Financial Inform94
Supplemental Financial Information (Consolidating Statement of Income) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2014 | Jun. 30, 2013 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||||
Sales and other revenues | $ 2,943,559 | $ 3,585,823 | $ 3,701,912 | $ 3,006,626 | $ 4,283,119 | $ 5,317,555 | $ 5,372,600 | $ 4,791,053 | $ 13,237,920 | $ 19,764,327 | $ 20,160,560 | ||
Cost of products sold | 10,239,218 | 17,228,385 | 17,392,227 | ||||||||||
Lower of cost or market inventory valuation adjustment | (143,600) | (225,500) | 135,500 | 6,500 | 226,979 | 397,478 | 0 | ||||||
Operating expenses | 1,060,373 | 1,144,940 | 1,090,850 | ||||||||||
General and administrative | 120,846 | 114,609 | 127,963 | ||||||||||
Depreciation and amortization | 346,151 | 363,381 | 303,446 | ||||||||||
Total operating costs and expenses | 3,000,265 | 3,263,218 | 3,112,080 | 2,618,004 | 4,637,537 | 5,014,944 | 5,076,255 | 4,520,057 | 11,993,567 | 19,248,793 | 18,914,486 | ||
Income (loss) from operations | (56,706) | 322,605 | 589,832 | 388,622 | (354,418) | 302,611 | 296,345 | 270,996 | 1,244,353 | 515,534 | 1,246,074 | ||
Earnings (loss) of equity method investments | (3,738) | (2,007) | (2,072) | ||||||||||
Interest income (expense) | (40,079) | (39,216) | (62,494) | ||||||||||
Loss on early extinguishment of debt | $ 7,700 | $ 22,100 | (1,370) | (7,677) | (22,109) | ||||||||
Gain on sale of assets | 9,402 | 866 | 0 | ||||||||||
Other income (expense) total | (35,785) | (48,034) | (86,675) | ||||||||||
Income before income taxes | (64,671) | 320,673 | 580,177 | 372,389 | (361,335) | 290,774 | 286,485 | 251,576 | 1,208,568 | 467,500 | 1,159,399 | ||
Income tax provision | 406,060 | 141,172 | 391,576 | ||||||||||
Net income | 802,508 | 326,328 | 767,823 | ||||||||||
Less net income attributable to noncontrolling interest | 62,407 | 45,036 | 31,981 | ||||||||||
Net income attributable to HollyFrontier stockholders | $ (43,921) | $ 196,322 | $ 360,824 | $ 226,876 | $ (222,204) | $ 175,006 | $ 176,429 | $ 152,061 | 740,101 | 281,292 | 735,842 | ||
Comprehensive income attributable to HollyFrontier stockholders | 708,052 | 308,364 | 745,089 | ||||||||||
HollyFrontier Corp. Before Consolidation of HEP | |||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||
Sales and other revenues | 13,171,846 | 19,708,328 | 20,106,757 | ||||||||||
Cost of products sold | 10,525,610 | 17,500,601 | 17,641,119 | ||||||||||
Lower of cost or market inventory valuation adjustment | 226,979 | 397,478 | |||||||||||
Operating expenses | 960,352 | 1,041,571 | 995,194 | ||||||||||
General and administrative | 108,290 | 103,785 | 116,214 | ||||||||||
Depreciation and amortization | 299,233 | 317,149 | 253,062 | ||||||||||
Total operating costs and expenses | 12,120,464 | 19,360,584 | 19,005,589 | ||||||||||
Income (loss) from operations | 1,051,382 | 347,744 | 1,101,168 | ||||||||||
Earnings (loss) of equity method investments | 78,969 | 65,375 | 52,288 | ||||||||||
Interest income (expense) | 6,098 | 6,221 | (6,338) | ||||||||||
Loss on early extinguishment of debt | (1,370) | 0 | (22,109) | ||||||||||
Gain on sale of assets | 8,916 | 866 | |||||||||||
Other income (expense) total | 92,613 | 72,462 | 23,841 | ||||||||||
Income before income taxes | 1,143,995 | 420,206 | 1,125,009 | ||||||||||
Income tax provision | 405,832 | 140,937 | 391,243 | ||||||||||
Net income | 738,163 | 279,269 | 733,766 | ||||||||||
Less net income attributable to noncontrolling interest | (30) | (25) | 0 | ||||||||||
Net income attributable to HollyFrontier stockholders | 738,193 | 279,294 | 733,766 | ||||||||||
Comprehensive income attributable to HollyFrontier stockholders | 706,144 | 306,366 | 743,013 | ||||||||||
HEP Subsidiary | |||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||
Sales and other revenues | 358,875 | 332,626 | 307,053 | ||||||||||
Cost of products sold | 0 | 0 | 0 | ||||||||||
Lower of cost or market inventory valuation adjustment | 0 | 0 | |||||||||||
Operating expenses | 103,305 | 104,801 | 97,081 | ||||||||||
General and administrative | 12,556 | 10,824 | 11,749 | ||||||||||
Depreciation and amortization | 61,236 | 60,548 | 64,701 | ||||||||||
Total operating costs and expenses | 177,097 | 176,173 | 173,531 | ||||||||||
Income (loss) from operations | 181,778 | 156,453 | 133,522 | ||||||||||
Earnings (loss) of equity method investments | 4,803 | 2,987 | 2,826 | ||||||||||
Interest income (expense) | (36,892) | (36,098) | (46,849) | ||||||||||
Loss on early extinguishment of debt | 0 | (7,677) | 0 | ||||||||||
Gain on sale of assets | 486 | 0 | |||||||||||
Other income (expense) total | (31,603) | (40,788) | (44,023) | ||||||||||
Income before income taxes | 150,175 | 115,665 | 89,499 | ||||||||||
Income tax provision | 228 | 235 | 333 | ||||||||||
Net income | 149,947 | 115,430 | 89,166 | ||||||||||
Less net income attributable to noncontrolling interest | 3,971 | 8,288 | 6,632 | ||||||||||
Net income attributable to HollyFrontier stockholders | 145,976 | 107,142 | 82,534 | ||||||||||
Comprehensive income attributable to HollyFrontier stockholders | 138,920 | 107,181 | 84,354 | ||||||||||
Consolidations and Eliminations | |||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||
Sales and other revenues | (292,801) | (276,627) | (253,250) | ||||||||||
Cost of products sold | (286,392) | (272,216) | (248,892) | ||||||||||
Lower of cost or market inventory valuation adjustment | 0 | 0 | |||||||||||
Operating expenses | (3,284) | (1,432) | (1,425) | ||||||||||
General and administrative | 0 | 0 | 0 | ||||||||||
Depreciation and amortization | (14,318) | (14,316) | (14,317) | ||||||||||
Total operating costs and expenses | (303,994) | (287,964) | (264,634) | ||||||||||
Income (loss) from operations | 11,193 | 11,337 | 11,384 | ||||||||||
Earnings (loss) of equity method investments | (87,510) | (70,369) | (57,186) | ||||||||||
Interest income (expense) | (9,285) | (9,339) | (9,307) | ||||||||||
Loss on early extinguishment of debt | 0 | 0 | 0 | ||||||||||
Gain on sale of assets | 0 | 0 | |||||||||||
Other income (expense) total | (96,795) | (79,708) | (66,493) | ||||||||||
Income before income taxes | (85,602) | (68,371) | (55,109) | ||||||||||
Income tax provision | 0 | 0 | 0 | ||||||||||
Net income | (85,602) | (68,371) | (55,109) | ||||||||||
Less net income attributable to noncontrolling interest | 58,466 | 36,773 | 25,349 | ||||||||||
Net income attributable to HollyFrontier stockholders | (144,068) | (105,144) | (80,458) | ||||||||||
Comprehensive income attributable to HollyFrontier stockholders | $ (137,012) | $ (105,183) | $ (82,278) |
Supplemental Financial Inform95
Supplemental Financial Information (Consolidating Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Financial Statements, Captions [Line Items] | |||
Cash flows from operating activities (1) | $ 979,626 | $ 758,596 | $ 869,174 |
Additions to properties, plants and equipment | (581,639) | (455,128) | (368,514) |
Distribution from HEP | 0 | ||
Proceeds from Sale of Other Assets | 19,264 | 16,633 | 7,802 |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | 0 | 11,301 |
Payments to Acquire Interest in Joint Venture | (55,032) | ||
Purchases of marketable securities | (509,338) | (1,025,602) | (935,512) |
Sales and maturities of marketable securities | 839,513 | 1,276,447 | 846,143 |
Other, net | 0 | 5,021 | (8,740) |
Net cash provided by (used for) investing activities | (381,748) | (292,322) | (526,735) |
Proceeds from (Repayments of) Lines of Credit | 208,000 | ||
Redemption of senior notes | (155,156) | 0 | (300,973) |
Proceeds from sale of HEP common units | 0 | 0 | 73,444 |
Proceeds from common unit offerings – HEP | 73,444 | ||
Principal tender on senior notes – HEP | (155,156) | (156,188) | |
Purchase of treasury stock | (742,823) | (158,847) | (225,023) |
Contribution from General Partner | 0 | 0 | 0 |
Dividends | (246,908) | (647,197) | (645,920) |
Payments of Ordinary Dividends, Noncontrolling Interest | (78,202) | (71,201) | |
Excess tax benefit from equity-based compensation | 0 | 2,040 | 2,562 |
Other, net | (12,175) | (7,998) | (8,368) |
Net cash provided by (used for) financing activities | (1,099,330) | (838,392) | (1,160,035) |
Increase (decrease) for the period | (501,452) | (372,118) | (817,596) |
Beginning of period | 567,985 | 940,103 | 1,757,699 |
End of period | 66,533 | 567,985 | 940,103 |
HollyFrontier Corp. Before Consolidation of HEP | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash flows from operating activities (1) | 836,858 | 652,186 | 757,204 |
Additions to properties, plants and equipment | (581,639) | (455,128) | (368,514) |
Distribution from HEP | 62,000 | ||
Proceeds from Sale of Other Assets | 17,985 | 16,633 | 5,071 |
Payments to Acquire Businesses, Net of Cash Acquired | 11,301 | ||
Payments to Acquire Interest in Joint Venture | 0 | ||
Purchases of marketable securities | (509,338) | (1,025,602) | (935,512) |
Sales and maturities of marketable securities | 839,513 | 1,276,447 | 846,143 |
Other, net | 5,021 | (8,740) | |
Net cash provided by (used for) investing activities | (233,479) | (182,629) | (472,853) |
Redemption of senior notes | (300,973) | ||
Proceeds from sale of HEP common units | 73,444 | ||
Proceeds from common unit offerings – HEP | 0 | ||
Principal tender on senior notes – HEP | (155,156) | 0 | |
Purchase of treasury stock | (742,823) | (158,847) | (225,023) |
Contribution from General Partner | (27,623) | (29,734) | (6,011) |
Dividends | (246,908) | (647,197) | (645,920) |
Payments of Ordinary Dividends, Noncontrolling Interest | 0 | 0 | 0 |
Excess tax benefit from equity-based compensation | 2,040 | 2,562 | |
Other, net | (6,504) | (4,415) | (1,141) |
Net cash provided by (used for) financing activities | (1,117,014) | (838,153) | (1,103,062) |
Increase (decrease) for the period | (513,635) | (368,596) | (818,711) |
Beginning of period | 565,155 | 933,751 | 1,752,462 |
End of period | 51,520 | 565,155 | 933,751 |
HEP Subsidiary | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash flows from operating activities (1) | (233,188) | (186,903) | (183,380) |
Additions to properties, plants and equipment | 0 | 0 | 0 |
Distribution from HEP | (62,000) | ||
Proceeds from Sale of Other Assets | 1,279 | 0 | 2,731 |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | ||
Payments to Acquire Interest in Joint Venture | (55,032) | ||
Purchases of marketable securities | 0 | 0 | 0 |
Sales and maturities of marketable securities | 0 | 0 | 0 |
Other, net | 0 | 0 | |
Net cash provided by (used for) investing activities | (148,269) | 109,693 | 53,882 |
Proceeds from (Repayments of) Lines of Credit | 141,000 | 208,000 | (58,000) |
Redemption of senior notes | 0 | ||
Proceeds from sale of HEP common units | 0 | ||
Proceeds from common unit offerings – HEP | 73,444 | ||
Principal tender on senior notes – HEP | 0 | (156,188) | |
Purchase of treasury stock | 0 | 0 | 0 |
Contribution from General Partner | 27,623 | 29,734 | 6,011 |
Dividends | 0 | 0 | 0 |
Payments of Ordinary Dividends, Noncontrolling Interest | (173,688) | (158,695) | (142,611) |
Excess tax benefit from equity-based compensation | 0 | 0 | |
Other, net | (5,671) | (3,583) | (7,227) |
Net cash provided by (used for) financing activities | (72,736) | (80,732) | (128,383) |
Increase (decrease) for the period | 12,183 | (3,522) | 1,115 |
Beginning of period | 2,830 | 6,352 | 5,237 |
End of period | 15,013 | 2,830 | 6,352 |
Consolidations and Eliminations | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash flows from operating activities (1) | (90,420) | (80,493) | (71,410) |
Additions to properties, plants and equipment | 0 | 0 | 0 |
Distribution from HEP | 0 | ||
Proceeds from Sale of Other Assets | 0 | 0 | |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | ||
Payments to Acquire Interest in Joint Venture | 0 | ||
Purchases of marketable securities | 0 | 0 | 0 |
Sales and maturities of marketable securities | 0 | 0 | 0 |
Other, net | 0 | 0 | |
Net cash provided by (used for) investing activities | 0 | 0 | 0 |
Redemption of senior notes | 0 | ||
Proceeds from sale of HEP common units | 0 | ||
Proceeds from common unit offerings – HEP | 0 | ||
Principal tender on senior notes – HEP | 0 | 0 | |
Purchase of treasury stock | 0 | 0 | 0 |
Contribution from General Partner | 0 | 0 | 0 |
Dividends | 0 | 0 | 0 |
Payments of Ordinary Dividends, Noncontrolling Interest | 90,420 | 80,493 | 71,410 |
Excess tax benefit from equity-based compensation | 0 | 0 | |
Other, net | 0 | 0 | 0 |
Net cash provided by (used for) financing activities | 90,420 | 80,493 | 71,410 |
Increase (decrease) for the period | 0 | 0 | 0 |
Beginning of period | 0 | 0 | 0 |
End of period | 0 | 0 | 0 |
HEP | |||
Condensed Financial Statements, Captions [Line Items] | |||
Additions to properties, plants and equipment | (94,516) | (109,693) | (56,613) |
Distribution from HEP | 62,000 | ||
Payments to Acquire Interest in Joint Venture | (55,032) | 0 | 0 |
Proceeds from (Repayments of) Lines of Credit | 141,000 | (58,000) | |
Proceeds from common unit offerings – HEP | 0 | 0 | 73,444 |
Principal tender on senior notes – HEP | 0 | 156,188 | 0 |
Payments of Ordinary Dividends, Noncontrolling Interest | (83,268) | ||
Beginning of period | 2,830 | ||
End of period | 15,013 | 2,830 | |
HEP | HollyFrontier Corp. Before Consolidation of HEP | |||
Condensed Financial Statements, Captions [Line Items] | |||
Additions to properties, plants and equipment | 0 | 0 | 0 |
Proceeds from (Repayments of) Lines of Credit | 0 | 0 | 0 |
HEP | HEP Subsidiary | |||
Condensed Financial Statements, Captions [Line Items] | |||
Additions to properties, plants and equipment | (94,516) | (109,693) | (56,613) |
HEP | Consolidations and Eliminations | |||
Condensed Financial Statements, Captions [Line Items] | |||
Additions to properties, plants and equipment | 0 | 0 | 0 |
Proceeds from Sale of Other Assets | 0 | ||
Proceeds from (Repayments of) Lines of Credit | $ 0 | $ 0 | $ 0 |
Significant Customers (Details)
Significant Customers (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue, Major Customer [Line Items] | |||
Number of significant customers | 2 | ||
Concentration risk, precentage of total revenues | 10.00% | ||
Export Sales Risk | 0.03 | ||
Sinclair Oil Company [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, precentage of total revenues | 8.00% | 10.00% | 11.00% |
Revenue for reportable segment | $ 1,104.9 | $ 2,018.8 | $ 2,134.3 |
Shell Oil Company [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, precentage of total revenues | 9.00% | 11.00% | 9.00% |
Revenue for reportable segment | $ 1,252.6 | $ 2,097.4 | $ 1,830.5 |
Quarterly Information (Unaudi97
Quarterly Information (Unaudited) (Schedule Of Quarterly Information) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Sales and other revenues | $ 2,943,559 | $ 3,585,823 | $ 3,701,912 | $ 3,006,626 | $ 4,283,119 | $ 5,317,555 | $ 5,372,600 | $ 4,791,053 | $ 13,237,920 | $ 19,764,327 | $ 20,160,560 |
Operating costs and expenses | 3,000,265 | 3,263,218 | 3,112,080 | 2,618,004 | 4,637,537 | 5,014,944 | 5,076,255 | 4,520,057 | 11,993,567 | 19,248,793 | 18,914,486 |
Income (loss) from operations | (56,706) | 322,605 | 589,832 | 388,622 | (354,418) | 302,611 | 296,345 | 270,996 | 1,244,353 | 515,534 | 1,246,074 |
Income before income taxes | (64,671) | 320,673 | 580,177 | 372,389 | (361,335) | 290,774 | 286,485 | 251,576 | 1,208,568 | 467,500 | 1,159,399 |
Net income attributable to HollyFrontier stockholders | $ (43,921) | $ 196,322 | $ 360,824 | $ 226,876 | $ (222,204) | $ 175,006 | $ 176,429 | $ 152,061 | $ 740,101 | $ 281,292 | $ 735,842 |
Net income per share attributable to HollyFrontier stockholders - basic (in dollars per share) | $ (0.24) | $ 1.05 | $ 1.88 | $ 1.16 | $ (1.13) | $ 0.88 | $ 0.89 | $ 0.76 | $ 3.91 | $ 1.42 | $ 3.66 |
Net income per share attributable to HollyFrontier stockholders - diluted (in dollars per share) | (0.24) | 1.04 | 1.88 | 1.16 | (1.13) | 0.88 | 0.89 | 0.76 | 3.90 | 1.42 | $ 3.64 |
Dividends per common share (in dollars per share) | $ 0.33 | $ 0.33 | $ 0.33 | $ 0.32 | $ 0.82 | $ 0.82 | $ 0.82 | $ 0.80 | $ 1.31 | $ 3.26 | |
Basic (in shares) | 181,460 | 187,208 | 191,355 | 195,069 | 195,310 | 197,261 | 198,139 | 198,297 | 188,731 | 197,243 | 200,419 |
Diluted (in shares) | 181,460 | 187,344 | 191,454 | 195,121 | 195,310 | 197,535 | 198,380 | 198,924 | 188,940 | 197,428 | 201,234 |
Lower of cost or market inventory valuation adjustment | $ (143,600) | $ (225,500) | $ 135,500 | $ 6,500 | $ 226,979 | $ 397,478 | $ 0 |