Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 17, 2017 | Jun. 30, 2016 | |
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, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 177,360,162 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 3.8 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents (HEP: $3,657 and $15,013, respectively) | $ 710,579 | $ 66,533 |
Marketable securities | 424,148 | 144,019 |
Total cash, cash equivalents and short-term marketable securities | 1,134,727 | 210,552 |
Accounts receivable: Product and transportation (HEP: $7,846 and $8,593, respectively) | 449,036 | 323,858 |
Crude oil resales | 30,163 | 28,120 |
Accounts receivable, total | 479,199 | 351,978 |
Crude oil and refined products | 970,361 | 712,865 |
Materials, supplies and other (HEP: $1,402 and $1,972, respectively) | 165,315 | 129,004 |
Total inventory | 1,135,676 | 841,869 |
Income taxes receivable | 68,371 | 0 |
Prepayments and other (HEP: $1,486 and $3,082, respectively) | 33,036 | 43,666 |
Total current assets | 2,851,009 | 1,448,065 |
Properties, plants and equipment, at cost (HEP: $1,702,703 and $1,631,845, respectively) | 5,546,856 | 5,490,189 |
Less accumulated depreciation (HEP: ($337,135) and $(298,282), respectively) | (1,538,408) | (1,374,527) |
Property, plant and equipment, net | 4,008,448 | 4,115,662 |
Other assets: Turnaround costs | 217,340 | 231,873 |
Goodwill (HEP: $288,991 and $288,991, respectively) | 2,022,463 | 2,331,781 |
Intangibles and other (HEP: $208,975 and $128,583, respectively) | 336,401 | 260,918 |
Other assets, total | 2,576,204 | 2,824,572 |
Total assets | 9,435,661 | 8,388,299 |
Current liabilities: | ||
Accounts payable (HEP: $10,518 and $10,948, respectively) | 935,387 | 716,490 |
Income taxes payable | 0 | 8,142 |
Accrued liabilities (HEP: $37,793 and $26,341, respectively) | 147,842 | 135,983 |
Total current liabilities | 1,083,229 | 860,615 |
Long-term debt (HEP: $1,243,912 and $1,008,752, respectively) | 2,235,137 | 1,040,040 |
Deferred income taxes (HEP: $509 and $431, respectively) | 620,414 | 497,906 |
Other long-term liabilities (HEP: $62,971 and $59,376, respectively) | 194,896 | 179,965 |
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, 2016 and December 31, 2015 | 2,560 | 2,560 |
Additional capital | 4,026,805 | 4,011,052 |
Retained earnings | 2,776,728 | 3,271,189 |
Accumulated other comprehensive income (loss) | 10,612 | (4,155) |
Common stock held in treasury, at cost – 78,617,600 and 75,728,478 shares as of December 31, 2016 and December 31, 2015, respectively | (2,135,311) | (2,027,231) |
Total HollyFrontier stockholders’ equity | 4,681,394 | 5,253,415 |
Noncontrolling interest | 620,591 | 556,358 |
Total equity | 5,301,985 | 5,809,773 |
Total liabilities and equity | 9,435,661 | 8,388,299 |
HEP | ||
Current assets: | ||
Cash and cash equivalents (HEP: $3,657 and $15,013, respectively) | 3,657 | 15,013 |
Accounts receivable: Product and transportation (HEP: $7,846 and $8,593, respectively) | 7,846 | 8,593 |
Materials, supplies and other (HEP: $1,402 and $1,972, respectively) | 1,402 | 1,972 |
Prepayments and other (HEP: $1,486 and $3,082, respectively) | 1,486 | 3,082 |
Properties, plants and equipment, at cost (HEP: $1,702,703 and $1,631,845, respectively) | 1,702,703 | 1,631,845 |
Less accumulated depreciation (HEP: ($337,135) and $(298,282), respectively) | (337,135) | (298,282) |
Goodwill (HEP: $288,991 and $288,991, respectively) | 288,991 | 288,991 |
Intangibles and other (HEP: $208,975 and $128,583, respectively) | 208,975 | 128,583 |
Current liabilities: | ||
Accounts payable (HEP: $10,518 and $10,948, respectively) | 10,518 | 10,948 |
Accrued liabilities (HEP: $37,793 and $26,341, respectively) | 37,793 | 26,341 |
Deferred income taxes (HEP: $509 and $431, respectively) | 509 | 431 |
Other long-term liabilities (HEP: $62,971 and $59,376, respectively) | $ 62,971 | $ 59,376 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Cash and cash equivalents (HEP: $3,657 and $15,013, respectively) | $ 710,579 | $ 66,533 |
Accounts receivable: Product and transportation (HEP: $7,846 and $8,593, respectively) | 449,036 | 323,858 |
Materials, supplies and other (HEP: $1,402 and $1,972, respectively) | 165,315 | 129,004 |
Prepayments and other (HEP: $1,486 and $3,082, respectively) | 33,036 | 43,666 |
Properties, plants and equipment, at cost (HEP: $1,702,703 and $1,631,845, respectively) | 5,546,856 | 5,490,189 |
Accumulated depreciation | (1,538,408) | (1,374,527) |
Goodwill | 2,022,463 | 2,331,781 |
Intangibles and other | 336,401 | 260,918 |
Accounts payable (HEP: $10,518 and $10,948, respectively) | 935,387 | 716,490 |
Accrued liabilities (HEP: $37,793 and $26,341, respectively) | 147,842 | 135,983 |
Long-term Debt and Capital Lease Obligations | 2,235,137 | 1,040,040 |
Deferred income tax liabilities | 620,414 | 497,906 |
Other long-term liabilities (HEP: $62,971 and $59,376, respectively) | $ 194,896 | $ 179,965 |
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 | 78,617,600 | 75,728,478 |
HEP | ||
Cash and cash equivalents (HEP: $3,657 and $15,013, respectively) | $ 3,657 | $ 15,013 |
Accounts receivable: Product and transportation (HEP: $7,846 and $8,593, respectively) | 7,846 | 8,593 |
Materials, supplies and other (HEP: $1,402 and $1,972, respectively) | 1,402 | 1,972 |
Prepayments and other (HEP: $1,486 and $3,082, respectively) | 1,486 | 3,082 |
Properties, plants and equipment, at cost (HEP: $1,702,703 and $1,631,845, respectively) | 1,702,703 | 1,631,845 |
Accumulated depreciation | (337,135) | (298,282) |
Goodwill | 288,991 | 288,991 |
Intangibles and other | 208,975 | 128,583 |
Accounts payable (HEP: $10,518 and $10,948, respectively) | 10,518 | 10,948 |
Accrued liabilities (HEP: $37,793 and $26,341, respectively) | 37,793 | 26,341 |
Long-term Debt and Capital Lease Obligations | 1,243,912 | 1,008,752 |
Deferred income tax liabilities | 509 | 431 |
Other long-term liabilities (HEP: $62,971 and $59,376, respectively) | $ 62,971 | $ 59,376 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Sales and other revenues | $ 10,535,700 | $ 13,237,920 | $ 19,764,327 | ||
Operating costs and expenses: | |||||
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) | 8,765,927 | 10,239,218 | 17,228,385 | ||
Lower of cost or market inventory valuation adjustment | (291,938) | 226,979 | 397,478 | ||
Cost of products sold (exclusive of depreciation and amortization) | 8,473,989 | 10,466,197 | 17,625,863 | ||
Operating expenses (exclusive of depreciation and amortization) | 1,018,839 | 1,060,373 | 1,144,940 | ||
General and administrative expenses (exclusive of depreciation and amortization) | 125,648 | 120,846 | 114,609 | ||
Depreciation and amortization | 363,027 | 346,151 | 363,381 | ||
Goodwill and asset impairment | 654,084 | 0 | 0 | ||
Total operating costs and expenses | 10,635,587 | 11,993,567 | 19,248,793 | ||
Income from operations | (99,887) | [1],[2] | 1,244,353 | [3] | 515,534 |
Other income (expense): | |||||
Earnings (loss) of equity method investments | 14,213 | (3,738) | (2,007) | ||
Interest income | 2,491 | 3,391 | 4,430 | ||
Interest expense | (72,192) | (43,470) | (43,646) | ||
Loss on early extinguishment of debt | (8,718) | (1,370) | (7,677) | ||
Gain on sale of assets and other | (7,441) | 9,402 | 866 | ||
Other income (expense) total | (71,647) | (35,785) | (48,034) | ||
Income (loss) before income taxes | (171,534) | 1,208,568 | 467,500 | ||
Income tax provision: | |||||
Current | (79,181) | 552,196 | 334,834 | ||
Deferred | 98,592 | (146,136) | (193,662) | ||
Income tax provision total | 19,411 | 406,060 | 141,172 | ||
Net income (loss) | (190,945) | 802,508 | 326,328 | ||
Less net income attributable to noncontrolling interest | 69,508 | 62,407 | 45,036 | ||
Net income (loss) attributable to HollyFrontier stockholders | $ (260,453) | $ 740,101 | $ 281,292 | ||
Earnings (loss) per share attributable to HollyFrontier stockholders: | |||||
Basic (in dollars per share) | $ (1.48) | $ 3.91 | $ 1.42 | ||
Diluted (in dollars per share) | $ (1.48) | $ 3.90 | $ 1.42 | ||
Average number of common shares outstanding: | |||||
Average number of shares of common stock outstanding - Basic | 176,101 | 188,731 | 197,243 | ||
Average number of shares of common stock outstanding - Diluted | 176,101 | 188,940 | 197,428 | ||
[1] | For 2016, income from operations reflects non-cash goodwill and long-lived asset impairment charges of $654.1 million in the second quarter. | ||||
[2] | For 2016, income from operations reflects non-cash lower of cost or market inventory valuation reductions of $56.1 million and $138.5 million for the first and second quarters, respectively, and a charge of $0.3 million for the third quarter and a reduction of $97.7 million for the fourth quarter. | ||||
[3] | ) 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 increases of $225.5 million and $143.6 million for the third and fourth quarters, respectively. |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net income (loss) | $ (190,945) | $ 802,508 | $ 326,328 |
Other comprehensive income (loss): | |||
Unrealized gain (loss) on marketable securities | 81 | 29 | (153) |
Reclassification adjustment to net income on sale or maturity of marketable securities | 23 | 9 | (4) |
Net unrealized gain (loss) on marketable securities | 104 | 38 | (157) |
Change in fair value of cash flow hedging instruments | (17,625) | (5,847) | 105,414 |
Reclassification adjustments to net income on settlement of cash flow hedging instruments | 41,585 | (47,492) | (50,682) |
Amortization of unrealized loss attributable to discontinued cash flow hedges | 1,080 | 1,080 | 1,080 |
Net unrealized gain (loss) on hedging instruments | 25,040 | (52,259) | 55,812 |
Gain (loss) on post-retirement healthcare plan | 2,363 | 3,278 | (7,434) |
Post-retirement healthcare plan gain reclassified to net income | (3,482) | (3,299) | (4,296) |
Gain (loss) on retirement restoration plan | (9) | 80 | (615) |
Retirement restoration loss reclassified to net income | 15 | 20 | 920 |
Net change in other post-retirement benefit obligations | (1,113) | 79 | (11,425) |
Other comprehensive income (loss) before income taxes | 24,031 | (52,142) | 44,230 |
Income tax expense (benefit) | 9,322 | (20,237) | 17,098 |
Other comprehensive income (loss) | 14,709 | (31,905) | 27,132 |
Total comprehensive income (loss) | (176,236) | 770,603 | 353,460 |
Less noncontrolling interest in comprehensive income (loss) | 69,450 | 62,551 | 45,096 |
Comprehensive income (loss) attributable to HollyFrontier stockholders | $ (245,686) | $ 708,052 | $ 308,364 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (190,945) | $ 802,508 | $ 326,328 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 363,027 | 346,151 | 363,381 |
Goodwill and asset impairment | 654,084 | 0 | 0 |
Lower of cost or market inventory valuation adjustment | (291,938) | 226,979 | 397,478 |
Net loss of equity method investments, inclusive of distributions | 961 | 8,613 | 5,257 |
(Gain) loss on early extinguishment of debt | 8,718 | (3,788) | 1,489 |
Gain on sale of assets | (72) | (8,677) | 866 |
Deferred income taxes | 98,592 | (146,136) | (193,662) |
Equity-based compensation expense | 25,561 | 30,367 | 29,598 |
Change in fair value – derivative instruments | (12,155) | 38,525 | (22,668) |
(Increase) decrease in current assets: | |||
Accounts receivable | (127,221) | 238,392 | 108,876 |
Inventories | (1,869) | (33,717) | (78,842) |
Income taxes receivable | (68,371) | 11,719 | 94,237 |
Prepayments and other | 16,555 | 13,291 | 1,486 |
Increase (decrease) in current liabilities: | |||
Accounts payable | 247,603 | (406,339) | (217,541) |
Income taxes payable | (8,142) | (11,500) | 19,642 |
Accrued liabilities | 16,142 | (6,924) | 8,047 |
Turnaround expenditures | (125,254) | (89,365) | (96,803) |
Other, net | (3,005) | (30,473) | 13,159 |
Net cash provided by operating activities | 602,271 | 979,626 | 758,596 |
Cash flows from investing activities: | |||
Additions to properties, plants and equipment | (372,195) | (483,034) | (366,135) |
Purchase of equity method investment - HEP | (42,627) | (55,032) | |
Proceeds from sale of assets | 849 | 19,264 | 16,633 |
Purchases of marketable securities | (546,632) | (509,338) | (1,025,602) |
Sales and maturities of marketable securities | 266,603 | 839,513 | 1,276,447 |
Other, net | 0 | 0 | 5,021 |
Net cash used for investing activities | (801,597) | (381,748) | (292,322) |
Cash flows from financing activities: | |||
Proceeds from issuance of senior notes - HFC | 992,550 | 0 | 0 |
Net proceeds from issuance of term loan | 350,000 | 0 | 0 |
Redemption of senior notes | 0 | (155,156) | 0 |
Redemption of senior notes - HEP | (155,156) | (156,188) | |
Repayment of financing obligation | (39,500) | 0 | 0 |
Net proceeds from common unit offerings - HEP | 125,870 | 0 | 0 |
Repayment of term loan | (350,000) | 0 | 0 |
Purchase of treasury stock | (133,430) | (742,823) | (158,847) |
Dividends | (234,004) | (246,908) | (647,197) |
Distributions to noncontrolling interest | (92,607) | (83,268) | (78,202) |
Excess tax benefit from equity-based compensation | 0 | 0 | 2,040 |
Other, net | (10,507) | (12,175) | (7,998) |
Net cash used for financing activities | 843,372 | (1,099,330) | (838,392) |
Cash and cash equivalents: | |||
Increase (decrease) for the period | 644,046 | (501,452) | (372,118) |
Beginning of period | 66,533 | 567,985 | 940,103 |
End of period | 710,579 | 66,533 | 567,985 |
Cash paid during the period for: | |||
Interest | 54,074 | 46,442 | 55,716 |
Income taxes | 40,236 | 586,447 | 237,907 |
HEP | |||
Cash flows from investing activities: | |||
Additions to properties, plants and equipment | (107,595) | (193,121) | (198,686) |
Purchase of equity method investment - HEP | (42,627) | (55,032) | 0 |
Cash flows from financing activities: | |||
Borrowings under credit agreement – HEP | 869,000 | 973,900 | 642,300 |
Repayments under credit agreement – HEP | (1,028,000) | (832,900) | (434,300) |
Proceeds from issuance of senior notes - HFC | 394,000 | 0 | 0 |
Redemption of senior notes - HEP | 0 | 0 | $ (156,188) |
Repayment of financing obligation | (39,500) | ||
Net proceeds from common unit offerings - HEP | 125,870 | ||
Cash and cash equivalents: | |||
Beginning of period | 15,013 | ||
End of period | $ 3,657 | $ 15,013 |
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, 2013 | $ 6,609,398 | $ 2,560 | $ 3,990,630 | $ 3,144,480 | $ 822 | $ (1,138,872) | $ 609,778 |
Net income (loss) | 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 (loss) | 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 |
Net income (loss) | (190,945) | (260,453) | 69,508 | ||||
Dividends | (234,008) | (234,008) | |||||
Distributions to noncontrolling interest holders | (92,607) | (92,607) | |||||
Other comprehensive income (loss), net of tax | 14,709 | 14,767 | 0 | (58) | |||
Allocated equity on HEP common unit issuances, net of tax | 111,276 | 23,110 | 88,166 | ||||
Issuance of common stock under incentive compensation plans, net of forfeitures | (25,982) | 25,982 | |||||
Equity-based compensation, net of tax benefit | 21,352 | 18,625 | 2,727 | ||||
Purchase of treasury stock | (134,062) | (134,062) | 0 | ||||
Purchase of HEP units for restricted grants | (3,521) | (3,521) | |||||
Other | 18 | 18 | |||||
Ending Balance at Dec. 31, 2016 | $ 5,301,985 | $ 2,560 | $ 4,026,805 | $ 2,776,728 | $ 10,612 | $ (2,135,311) | $ 620,591 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 , 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”) which operates various asphalt terminals in Arizona, New Mexico and Oklahoma; and • owned a 37% interest in HEP, a consolidated variable interest entity (“VIE”), which includes our 2% general partner interest. On October 29, 2016, our wholly-owned subsidiary, 9952110 Canada Inc., entered into a share purchase agreement with Suncor Energy Inc. (“Suncor”) to acquire 100% of the outstanding capital stock of Petro-Canada Lubricants Inc. (“PCLI”) that closed on February 1, 2017. See Note 2 for additional information. 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 at both December 31, 2016 and 2015 . 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 and unfinished and finished refined products, 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. Inventories consisting of process chemicals, materials and maintenance supplies and RINs are stated at the lower of weighted-average cost or market. At December 31, 2016 , and 2015 , market values had fallen below historical LIFO inventory costs and, as a result, we recorded lower of cost or market inventory valuation reserves of $332.5 million and $624.5 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 13 for additional information. Properties, plants and equipment: Properties, plants and equipment are stated at cost. Depreciation is provided by the straight-line method over the estimated useful lives of the assets, primarily 15 to 32 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. 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 $22.1 million and $20.7 million at December 31, 2016 and 2015 , respectively, which are included in “Other long-term liabilities” in our consolidated balance sheets. Accretion expense was insignificant for the years ended December 31, 2016 , 2015 and 2014 . Intangibles, Goodwill and long-lived assets: Intangible assets are assets (other than financial assets) that lack physical substance, and 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 intangibles 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. Our long-lived assets principally consist of our refining assets that are organized as refining asset groups. These refinery asset groups also constitute our individual refinery reporting units that are used for testing and measuring goodwill impairments. Our long-lived assets are evaluated for 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 measured, if any, is equal to the amount by which the asset group’s carrying value exceeds its fair value. See Note 10 for information regarding goodwill and long-lived asset impairment charges recorded during the year ended December 31, 2016 . Our consolidated HEP assets include a third-party transportation agreement, an intangible asset, that currently generates minimum annual cash inflows of $26.0 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 $36.5 million and $38.5 million at December 31, 2016 , and 2015 , respectively, and is presented net of accumulated amortization of $23.7 million and $21.7 million respectively, in “Intangibles and other” in our consolidated balance sheets. 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% or a controlling interest with respect to VIE's, and use the equity method of accounting for investments in which we have a noncontrolling interest, yet have have significant influence over the entity. 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 Aspen LLC, the owner of a pipeline running from Wyoming to Frontier Station, Utah (the “Frontier Pipeline”); a 50% interest in Osage Pipe Line Company, LLC, the owner of a pipeline running from Cushing, Oklahoma to El Dorado, Kansas (the “Osage Pipeline”); a 50% interest in Cheyenne Pipeline, LLC, the owner of a pipeline running from Fort Laramie, Wyoming to Cheyenne, Wyoming (the “Cheyenne 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, 2016 , HEP's underlying equity and recorded investment balances in the joint ventures are $109.3 million and $165.6 million , respectively. 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. 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 $110.6 million , $107.8 million and $96.9 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Environmental Costs: Environmental costs are charged to operating expenses if they relate to an existing condition caused by past operations. We have ongoing investigations of environmental matters at various locations as part of our assessment process to determine the amount of environmental obligation we may have, if any, with respect to these matters for which we have recorded the estimated cost of the studies. 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. For the year ended December 31, 2016 , we recorded an income tax expense of $19.4 million compared $406.1 million and $141.2 million for the years ended December 31, 2015 and 2014 , respectively. This decrease was due principally to a pre-tax loss during the year ended December 31, 2016 compared to pre-tax earnings in the same periods of 2015 and 2014 . Our effective tax rates, before consideration of earnings attributable to the noncontrolling interest, were (11.3)% , 33.6% and 30.2% for the years ended December 31, 2016 , 2015 and 2014 , respectively. The year-over-year decrease in the effective tax rate in 2016 was due principally to the effects of the second quarter $309.3 million goodwill impairment charge, a significant cause of our $171.5 million loss before income taxes for the year ended December 31, 2016 , that is not deductible for income tax purposes. 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. Inventory Repurchase Obligations: We periodically enter into same-party sell / buy transactions, whereby we sell certain refined product inventory and subsequently repurchase the inventory in order to facilitate delivery to certain locations. Such sell / buy transactions are accounted for as inventory repurchase obligations under which proceeds received under the initial sell is recognized as an inventory repurchase obligation that is subsequently reversed when the inventory is repurchased. For the years ended December 31, 2016 , 2015 and 2014 , we received proceeds of $57.0 million , $115.4 million and $77.3 million and subsequently repaid $58.0 million , $115.3 million and $78.1 million , respectively, under these sell / buy transactions. New Accounting Pronouncements Share-Based Compensation In March 2016, Accounting Standard Update (“ASU”) 2016-09, “Improvements to Employee Share-Based Payment Accounting,” was issued which simplifies the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. This standard is effective January 1, 2017. We do not expect this standard to have a material impact on our financial condition, results of operations and cash flows. Leases In February 2016, ASU 2016-02, “Leases,” was issued requiring leases to be measured and recognized as a lease liability, with a corresponding right-of-use asset on the balance sheet. This standard has an effective date of January 1, 2019, and we are evaluating the impact of this standard. Consolidation In February 2015, ASU 2015-02, “Consolidation,” was issued to improve consolidation guidance for certain legal entities. It modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership, affects the consolidation analysis of reporting entities involved with VIEs, particularly those that have fee arrangements and related party provisions and provides a scope exception from consolidation guidance for certain reporting entities that comply with or operate in accordance with requirements that are similar to those included in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. We adopted this standard effective January 1, 2016, which had no affect our financial position or results of operations. Revenue Recognition In May 2014, 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 anticipate to account for the new guidance using the modified retrospective implementation method, whereby a cumulative effect adjustment is recorded to retained earnings as of the date of initial application. Our preparation for adoption of this standard is in progress, and we are currently evaluating terms, conditions and our performance obligations of our existing contracts with customers. We are evaluating the effect of this standard on our revenue recognition policies and whether it will have a material impact on our financial condition, results of operations or cash flows. |
Holly Energy Partners
Holly Energy Partners | 12 Months Ended |
Dec. 31, 2016 | |
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% ownership interest in each of the Frontier Pipeline, the Osage Pipeline and the Cheyenne Pipeline; and a 25% interest in the SLC Pipeline. As of December 31, 2016 , we owned a 37% 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 83% of HEP’s total revenues for the year ended December 31, 2016 . 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. HEP’s creditors have no recourse to our assets. Furthermore, our creditors have no recourse to the assets of HEP and its consolidated subsidiaries. See Note 12 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. Woods Cross Assets On October 3, 2016, HEP acquired from us all the membership interests of Woods Cross Operating LLC, which owns the crude unit, FCCU and polymerization unit of the first phase of our Woods Cross Refinery expansion project that was completed in the second quarter of 2016, for cash consideration of approximately $278.0 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 $56.7 million . Cheyenne Pipeline On June 3, 2016, HEP acquired a 50% interest in Cheyenne Pipeline LLC, owner of the Cheyenne Pipeline, in exchange for a contribution of $42.6 million in cash to Cheyenne Pipeline LLC. Cheyenne Pipeline will continue to be operated by an affiliate of Plains All American Pipeline, L.P. (“Plains”), which owns the remaining 50% interest. The 87 -mile crude oil pipeline runs from Fort Laramie, Wyoming to Cheyenne, Wyoming and has an 80,000 BPD capacity. Tulsa Tanks On March 31, 2016, HEP acquired crude oil tanks located at our Tulsa Refineries from Plains for $39.5 million . Previously in 2009, we sold these tanks to Plains and leased them back, and due to our continuing interest in the tanks, we accounted for the transaction as a financing arrangement. Accordingly, the tanks remained on our balance sheet and were depreciated for accounting purposes, and the proceeds received from Plains were recorded as a financing obligation and presented as a component of outstanding debt. In accounting for HEP’s March 2016 purchase from Plains, the amount paid was recorded against our outstanding financing obligation balance of $30.8 million , with the excess $8.7 million payment resulting in a loss on early extinguishment of debt. Magellan Asset Exchange On February 22, 2016, we obtained a 50% membership interest in Osage Pipe Line Company, LLC (“Osage”) in 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. Under the agreement, we will be charged tariffs based on the volumes of refined product processed. 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. This exchange was accounted for at fair value, whereby the 50% membership interest in the Osage Pipeline was recorded at appraised fair value and an offsetting residual deferred credit in the amount of $38.9 million was recorded, which will be amortized to cost of products sold over the 20-year service period. No gain or loss was recorded for this exchange. Also on February 22, 2016, we contributed the 50% membership interest in Osage to HEP, and in exchange received HEP's El Paso terminal. Pursuant to this exchange, HEP agreed to build two connections to Magellan Midstream's El Paso terminal. In addition, HEP agreed to become the operator of the Osage Pipeline. This exchange was accounted for at carry-over basis with no resulting gain or loss. 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 $15.1 million . Frontier Pipeline Transaction On August 31, 2015, HEP purchased a 50% interest in Frontier Aspen LLC (previously known as 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, which owns the remaining 50% interest. The 289 -mile crude oil pipeline runs from Casper, Wyoming to Frontier Station, Utah, has a 72,000 BPD capacity and 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 and tankage throughput agreements and refinery processing tolling agreements expiring from 2019 through 2036. 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, 2016 , these agreements result in minimum annualized payments to HEP of $321.0 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 (2014 through present) are summarized below: HEP Private Placement Agreement On September 16, 2016, HEP entered into a common unit purchase agreement in which certain purchasers agreed to purchase in a private placement 3,420,000 HEP common units, representing limited partnership interests, at a price of $30.18 per common unit. The private placement closed on October 3, 2016, at which time HEP received proceeds of approximately $103 million , which were used to finance a portion of the Woods Cross assets acquisition. In connection with this private placement and to maintain our 2% general partner interest in HEP, we made capital contributions totaling $2.1 million to HEP in October 2016. After this common unit issuance, our interest in HEP is 37% , including the 2% general partner interest. HEP Common Unit Continuous Offering Program On May 10, 2016, HEP established a continuous offering program under which HEP may issue and sell common units from time to time, representing limited partner interests, up to an aggregate gross sales amount of $200 million . As of December 31, 2016 , HEP has issued 703,455 units under this program, providing $23.0 million in net proceeds. In connection with this program and to maintain our 2% general partner interest in HEP, we made capital contributions totaling $0.5 million as of December 31, 2016 . HEP intends to use the net proceeds for general partnership purposes, which may include funding working capital, repayment of debt, acquisitions and capital expenditures. Amounts repaid under HEP’s credit facility may be reborrowed from time to time. 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 reallocate HEP's equity among its unitholders. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Financial Instruments | Fair Value Measurements Our financial instruments measured at fair value on a recurring basis consist of investments in marketable securities and derivative instruments. 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 values of marketable securities and derivative instruments at December 31, 2016 and December 31, 2015 were as follows: Fair Value by Input Level Financial Instrument Carrying Amount Level 1 Level 2 Level 3 (In thousands) December 31, 2016 Assets: Marketable securities $ 424,148 $ — $ 424,148 $ — Commodity price swaps 14,563 — 14,358 205 Commodity forward contracts 5,905 — 5,905 — HEP interest rate swaps 91 — 91 — Total assets $ 444,707 $ — $ 444,502 $ 205 Liabilities: NYMEX futures contracts $ 1,975 $ 1,975 $ — $ — Commodity price swaps 26,845 — 24,086 2,759 Commodity forward contracts 8,316 — 8,316 — Foreign currency forward contracts 6,519 — 6,519 — Total liabilities $ 43,655 $ 1,975 $ 38,921 $ 2,759 Fair Value by Input Level Financial Instrument Carrying Amount Level 1 Level 2 Level 3 (In thousands) December 31, 2015 Assets: Marketable securities $ 144,019 $ — $ 144,019 $ — NYMEX futures contract 3,469 3,469 — — Commodity price swaps 37,097 — 37,097 — HEP interest rate swaps 304 — 304 — Total assets $ 184,889 $ 3,469 $ 181,420 $ — Liabilities: Commodity price swaps $ 98,930 $ — $ 98,930 $ — HEP interest rate swaps 114 — 114 — Total liabilities $ 99,044 $ — $ 99,044 $ — 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, derivative instruments consisting of commodity price swaps and forward sales and purchase contracts 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 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 have commodity price swap contracts that relate to forecasted sales of unleaded gasoline, and 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 price swaps and 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, 2016 and 2015 : Years Ended December 31, Level 3 Financial Instruments 2016 2015 (In thousands) Liability balance at beginning of period $ — $ — Change in fair value: Recognized in other comprehensive income (1,460 ) 3,852 Recognized in cost of products sold (1,094 ) — Settlement date fair value of contractual maturities: Recognized in sales and other revenues — (3,852 ) Liability balance at end of period $ (2,554 ) $ — A hypothetical change of 10% to the estimated future cash flows attributable to our Level 3 commodity price swaps would result in an estimated fair value change of $0.3 million . During the year ended December 31, 2016 , we recognized goodwill and long-lived asset impairment charges based on fair value measurements (see Note 10). Also, we recognized a non-recurring fair value measurement of $44.4 million that relates to HEP’s equity interest in Osage in February 2016. The fair value measurements were based on a combination of valuation methods including discounted cash flows, and the guideline public company and guideline transaction methods, Level 3 inputs. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is calculated as net income (loss) 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 (loss) attributable to HollyFrontier stockholders: Years Ended December 31, 2016 2015 2014 (In thousands, except per share data) Net income (loss) attributable to HollyFrontier stockholders $ (260,453 ) $ 740,101 $ 281,292 Participating securities’ (restricted stock) share in earnings 1,003 2,306 820 Net income (loss) attributable to common shares $ (261,456 ) $ 737,795 $ 280,472 Average number of shares of common stock outstanding 176,101 188,731 197,243 Effect of dilutive variable restricted shares and performance share units (1) — 209 185 Average number of shares of common stock outstanding assuming dilution 176,101 188,940 197,428 Basic earnings (loss) per share $ (1.48 ) $ 3.91 $ 1.42 Diluted earnings (loss) per share $ (1.48 ) $ 3.90 $ 1.42 (1) Excludes anti-dilutive restricted and performance share units of: 469 89 356 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation As of December 31, 2016 , 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 $22.8 million , $26.9 million and $26.1 million for the years ended December 31, 2016 , 2015 and 2014 , 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 $2.7 million , $3.5 million and $3.5 million for the years ended December 31, 2016 , 2015 and 2014 , 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, 2016 is presented below: Restricted Stock and Restricted Stock Units Grants Weighted Average Grant Date Fair Value Aggregate Intrinsic Value ($000) Outstanding at January 1, 2016 (non-vested) 722,525 $ 47.50 Granted 894,879 21.66 Vesting (transfer/conversion to common stock) (409,016 ) 45.09 Forfeited (19,614 ) 48.02 Outstanding at December 31, 2016 (non-vested) 1,188,774 $ 28.87 $ 37,426 For the years ended December 31, 2016 , 2015 and 2014 , restricted stock and restricted stock units vested having a grant date fair value of $18.4 million , $14.2 million and $18.2 million , respectively. For the years ended December 31, 2015 and 2014 , we granted restricted stock and restricted stock units having a weighted average grant date fair value of $49.92 and $42.03 , respectively. As of December 31, 2016 , there was $24.2 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 2.5 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, 2016 , estimated share payouts for outstanding non-vested performance share unit awards averaged approximately 67% of target amounts. A summary of performance share unit activity and changes during the year ended December 31, 2016 is presented below: Performance Share Units Grants Outstanding at January 1, 2016 (non-vested) 637,938 Granted 376,275 Vesting and transfer of ownership to recipients (161,610 ) Forfeited (148,664 ) Outstanding at December 31, 2016 (non-vested) 703,939 For the year ended December 31, 2016 , we issued 76,404 shares of common stock, representing a 47% payout on vested performance share units having a grant date fair value of $7.4 million . For the years ended December 31, 2015 and 2014 , we issued common stock upon the vesting of the performance share units having a grant date fair value of $10.4 million and $14.3 million , respectively. As of December 31, 2016 , there was $14.5 million of total unrecognized compensation cost related to non-vested performance share units having a grant date fair value of $33.79 per unit. That cost is expected to be recognized over a weighted-average period of 2.3 years. |
Cash and Cash Equivalents and I
Cash and Cash Equivalents and Investments in Marketable Securities | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 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 and are reported at fair value. 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. 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 as of December 31, 2016 and 2015 , respectively: Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value (Net Carrying Amount) (In thousands) December 31, 2016 Commercial paper $ 7,687 $ 1 $ (1 ) $ 7,687 Corporate debt securities 4,001 — — 4,001 State and political subdivisions debt securities 412,462 1 (3 ) 412,460 Total marketable securities $ 424,150 $ 2 $ (4 ) $ 424,148 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 Interest income recognized on our marketable securities was $0.8 million , $1.9 million and $2.2 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
Inventory, Net [Abstract] | |
Inventories | Inventories Inventory consists of the following components: December 31, 2016 2015 (In thousands) Crude oil $ 549,886 $ 518,922 Other raw materials and unfinished products (1) 287,561 214,832 Finished products (2) 465,432 603,568 Lower of cost or market reserve (332,518 ) (624,457 ) Process chemicals (3) 2,767 4,477 Repairs and maintenance supplies and other (4) 162,548 124,527 Total inventory $ 1,135,676 $ 841,869 (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. (4) Includes RINs Inventories which are valued at the lower of LIFO cost or market reflect a valuation reserve of $332.5 million and $624.5 million at December 31, 2016 and 2015 , respectively. The December 31, 2015 market reserve of $624.5 million was reversed due to the sale of inventory quantities that gave rise to the 2015 reserve. A new market reserve of $332.5 million was established as of December 31, 2016 based on market conditions and prices at that time. The effect of the change in the lower of cost or market reserve was a decrease to cost of goods sold of $291.9 million for the year ended December 31, 2016 and an increase of $227.0 million and $397.5 million for the years ended December 31, 2015 and 2014 , respectively. At December 31, 2016 , 2015 and 2014 , the LIFO value of inventory, net of the lower of cost or market reserve, was equal to current costs. |
Properties, Plants and Equipmen
Properties, Plants and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 (In thousands) Land, buildings and improvements $ 326,097 $ 305,712 Refining facilities 3,382,369 2,833,125 Pipelines and terminals 1,392,898 1,321,398 Transportation vehicles 18,841 21,289 Other fixed assets 153,463 158,401 Construction in progress 273,188 850,264 5,546,856 5,490,189 Accumulated depreciation (1,538,408 ) (1,374,527 ) $ 4,008,448 $ 4,115,662 During the year ended December 31, 2016, we recorded impairment charges of $308.3 million that are attributable to properties, plant and equipment of our Cheyenne reporting unit. See Note 10 for additional information. We capitalized interest attributable to construction projects of $8.0 million , $5.5 million and $11.8 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Depreciation expense was $247.9 million , $233.3 million and $261.8 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. For the years ended December 31, 2016 , 2015 and 2014 , depreciation expense included $62.7 million , $58.7 million and $58.1 million , respectively, attributable to HEP operations. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill [Abstract] | |
Goodwill | Goodwill and Long-lived Asset Impairment As of December 31, 2016 , our goodwill balance was $2.0 billion , with goodwill assigned to our refining and HEP segments of $1.7 billion and $0.3 billion , respectively. During the second quarter of 2016, we performed interim goodwill impairment and related long-lived asset impairment testing of our El Dorado and Cheyenne Refinery reporting units after identifying a combination of events and circumstances that are indicators of potential goodwill and long-lived asset impairment. The indicators included lower than typical gross margins during the summer driving season, a decrease in the gross margin outlook and decrease in our market capitalization due to a decline in our common share price. Our testing first assessed the carrying values of our refining long-lived asset groups for recoverability. This entailed a comparison of our reporting unit fair values relative to their respective carrying values. If carrying value exceeds fair value for a reporting unit, we measure goodwill impairment as the excess of the carrying amount of reporting unit goodwill over the implied fair value of that goodwill based on estimates of the fair value of all assets and liabilities in the reporting unit. The estimated fair values of our goodwill reporting units and long-lived asset groups were derived using a combination of both income and market approaches. The income approach reflects expected future cash flows based on estimates of future crack spreads, forecasted production levels, operating costs and capital expenditures. Our market approaches include both the guideline public company and guideline transaction methods. Both methods utilize pricing multiples derived from historical market transactions of other like-kind assets. These fair value measurements involve significant unobservable inputs (Level 3 inputs). As a result of our impairment testing during the second quarter of 2016, we determined that the carrying value of the long-lived assets of the Cheyenne Refinery had been impaired and recorded long-lived asset impairment charges of $344.8 million that principally related to properties, plant and equipment. Additionally, the carrying value of the Cheyenne Refinery’s goodwill was fully impaired and a goodwill impairment charge of $309.3 million was also recorded, representing all of the goodwill allocated to our Cheyenne Refinery. Our interim testing did not identify any impairment related to our El Dorado reporting unit. We performed our annual goodwill impairment testing at July 1, 2016 and determined that the fair value of our El Dorado reporting unit exceeded its carrying value by approximately 4% . Additionally, testing indicated no impairment of goodwill attributable to our HEP reporting unit. The market outlook for future crack spreads has since improved and based on subsequent testing, the fair value of the El Dorado reporting unit exceeded its carrying value by approximately 20% at December 31, 2016. A reasonable expectation exists that future deterioration in gross margins could result in an impairment of goodwill and the long-lived assets of the El Dorado reporting unit at some point in the future and such impairment charges could be material. As of December 31, 2016 , accumulated goodwill losses recognized totaled $309.3 million , all of which relates to our Refining segment. There were no impairments of goodwill or long-lived assets during the years ended December 31, 2015 and 2014 . |
Environmental
Environmental | 12 Months Ended |
Dec. 31, 2016 | |
Environmental Expense and Liabilities [Abstract] | |
Environmental | Environmental We expensed $6.6 million , $14.7 million and $28.5 million for the years ended December 31, 2016 , 2015 and 2014 , respectively, for environmental remediation obligations. The accrued environmental liability reflected in our consolidated balance sheets was $96.4 million and $98.1 million at December 31, 2016 and 2015 , respectively, of which $82.9 million and $83.5 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, 2016 | |
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”) that was amended in February 2017, increasing the size of the credit facility to $1.35 billion and extending the maturity to February 2022. The HollyFrontier Credit Agreement may be used for revolving credit loans and letters of credit from time to time and is available to fund general corporate purposes. During the year ended December 31, 2016 , we received advances totaling $315.0 million and repaid $315.0 million under the HollyFrontier Credit Agreement. At December 31, 2016 , we were in compliance with all covenants, had no outstanding borrowings and had outstanding letters of credit totaling $4.4 million under the HollyFrontier Credit Agreement. Indebtedness under the HollyFrontier Credit Agreement bears interest, at our option at either a) an alternate base rate (as defined in the credit agreement) plus an applicable margin of (ranging from 0.125% - 1.000%), b) LIBOR plus an applicable margin (ranging from 1.125% to 2.000%), or c) Canadian Dealer Offered Rate plus an applicable margin (ranging from 1.125% to 2.000%) for Canadian dollar denominated borrowings. HEP Credit Agreement HEP has a $1.2 billion senior secured revolving credit facility maturing 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. During the year ended December 31, 2016 , HEP received advances totaling $554.0 million and repaid $713.0 million under the HEP Credit Agreement. At December 31, 2016 , HEP was in compliance with all of its covenants, had outstanding borrowings of $553.0 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 2.98% and 2.572% at December 31, 2016 and 2015 , 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 March 2016 and November 2016, we issued $250 million and $750 million , respectively, in aggregate principal amount of 5.875% senior notes (the “HollyFrontier Senior Notes”) maturing April 2026 . The HollyFrontier Senior Notes are unsecured and unsubordinated obligations of ours and rank equally with all our other existing and future unsecured and unsubordinated indebtedness. 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 . HollyFrontier Financing Obligation In March 2016, we extinguished a financing obligation at a cost of $39.5 million and recognized an $8.7 million loss on the early termination. The financing obligation related to a sale and lease-back of certain crude oil tankage that we sold to an affiliate of Plains in October 2009 for $40.0 million . HollyFrontier Term Loan In April 2016, we entered into a $350 million senior unsecured term loan (the “HollyFrontier Term Loan”) maturing in April 2019 . The HollyFrontier Term Loan was fully repaid with proceeds received upon the November 2016 issuance of the HollyFrontier Senior Notes. HEP Senior Notes On January 4, 2017, HEP redeemed its $300 million aggregate principal amount of 6.50% senior notes maturing March 2020 at a redemption cost of $316.4 million , at which time HEP recognized a $12.2 million early extinguishment loss. HEP funded the redemption with borrowings under the HEP Credit Agreement. In July 2016, HEP issued $400 million in aggregate principal amount of 6.0% HEP senior notes maturing in 2024 in a private placement. HEP used the net proceeds to repay indebtedness under the HEP Credit Agreement. The 6.0% HEP senior notes (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 is guaranteed by HEP’s wholly-owned subsidiaries. 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, 2016 2015 (In thousands) HollyFrontier 5.875% Senior Notes Principal $ 1,000,000 $ — Unamortized discount and debt issuance costs (8,775 ) — 991,225 — Financing Obligation — 31,288 Total HollyFrontier long-term debt 991,225 31,288 HEP Credit Agreement 553,000 712,000 HEP 6% Senior Notes Principal 400,000 — Unamortized discount and debt issuance costs (6,607 ) — 393,393 — HEP 6.5% Senior Notes Principal 300,000 300,000 Unamortized discount and debt issuance costs (2,481 ) (3,248 ) 297,519 296,752 Total HEP long-term debt 1,243,912 1,008,752 Total long-term debt $ 2,235,137 $ 1,040,040 The fair values of the senior notes are as follows: December 31, 2016 2015 (In thousands) HollyFrontier 5.875% Senior Notes $ 1,022,500 $ — HEP Senior Notes $ 723,750 $ 295,500 These fair values are based on estimates provided by a third party using market quotes for similar type instruments, a Level 2 input. See Note 4 for additional information on Level 2 inputs. Principal maturities of long-term debt are as follows: Years Ending December 31, (In thousands) 2017 $ — 2018 553,000 2019 — 2020 300,000 2021 — Thereafter 1,400,000 Total $ 2,253,000 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2016 | |
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 periodically have forward sales contracts that lock in the prices of future sales of crude oil and refined product and 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, 2016 Commodity price swaps Change in fair value $ (17,018 ) Loss reclassified to earnings due to settlements 41,077 Sales and other revenues $ (20,293 ) Amortization of discontinued hedges reclassified to earnings 1,080 Operating expenses (21,864 ) Operating expenses $ — Total $ 25,139 $ (42,157 ) $ — 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 ) As of December 31, 2016 , we have the following notional contract volumes related to outstanding derivative instruments serving as cash flow hedges against price risk on forecasted transactions (all maturing in 2017): Derivative instruments Total Outstanding Notional Unit of Measure Natural gas price swaps - long 9,600,000 MMBTU WTI crude oil price swaps - long 519,000 Barrels Sub-octane gasoline price swaps - short 519,000 Barrels Forward gasoline and diesel contracts - short 175,000 Barrels Physical crude contracts - short 150,000 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 9,600,000 MMBTU's to be purchased ratably through 2017. As of December 31, 2016 , we have an unrealized loss of $1.1 million classified in accumulated other comprehensive income 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 forecasted sales of refined product, 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 2016 2015 2014 (In thousands) Cost of products sold $ (6,889 ) $ 48,082 $ 68,509 Operating expenses 7,276 (12,003 ) (185 ) Other, net (6,520 ) — — Total $ (6,133 ) $ 36,079 $ 68,324 As of December 31, 2016 , we have the following notional contract volumes related to our outstanding derivative contracts serving as economic hedges (all maturing in 2017): Derivative Instrument Total Outstanding Notional Unit of Measure Crude price swaps (basis spread) - long 3,645,000 Barrels Natural gas price swaps (basis spread) - long 10,308,000 MMBTU Natural gas price swaps - long 9,600,000 MMBTU Natural gas price swaps - short 9,600,000 MMBTU WTI crude oil price swaps - long 310,000 Barrels WTI crude oil price swaps - short 310,000 Barrels Sub-octane gasoline price swaps - short 310,000 Barrels Sub-octane gasoline price swaps - long 310,000 Barrels NYMEX futures (WTI) - short 755,000 Barrels Forward gasoline and diesel contracts - long 1,225,000 Barrels At December 31, 2016 , we had Canadian currency swap contracts that effectively fixed the conversion rate on $1.125 billion Canadian dollars (the PCLI purchase price) at a USD / CAD exchange rate of 1.33 . These swap contracts were settled on February 1, 2017, in connection with the closing of the PCLI acquisition. Interest Rate Risk Management HEP uses interest rate swaps to manage its exposure to interest rate risk. As of December 31, 2016 , HEP had two interest rate swap contracts with identical terms that hedge its exposure to the cash flow risk caused by the effects of LIBOR changes on $150.0 million in credit agreement advances. The swaps 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, 2016 , which equaled an effective interest rate of 2.99% . Both of these swap contracts mature in July 2017 and 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, 2016 Interest rate swaps Change in fair value $ (607 ) Loss reclassified to earnings due to settlements 508 Interest expense $ (508 ) Total $ (99 ) $ (508 ) 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 ) 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, 2016 Derivatives designated as cash flow hedging instruments: Commodity price swap contracts $ — $ — $ — $ 13,185 $ (431 ) $ 12,754 Commodity forward contracts — — — 2,978 — 2,978 Interest rate swap contracts 91 — 91 — — — $ 91 $ — $ 91 $ 16,163 $ (431 ) $ 15,732 Derivatives not designated as cash flow hedging instruments: Commodity price swap contracts $ 4,244 $ (756 ) $ 3,488 $ 12,903 $ (9,887 ) $ 3,016 NYMEX futures contracts — — — 1,975 — 1,975 Commodity forward contracts 5,905 — 5,905 5,338 — 5,338 Foreign currency forward contracts — — — 6,519 — 6,519 $ 10,149 $ (756 ) $ 9,393 $ 26,735 $ (9,887 ) $ 16,848 Total net balance $ 9,484 $ 32,580 Balance sheet classification: Prepayment and other $ 9,484 Accrued liabilities $ 32,580 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 At December 31, 2016 , we had a pre-tax net unrealized loss of $15.8 million classified in accumulated other comprehensive income that relates to all accounting hedges having contractual maturities through 2017. Assuming commodity prices and interest rates remain unchanged, this unrealized loss will be effectively transferred from accumulated other comprehensive income 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, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes is comprised of the following: Years Ended December 31, 2016 2015 2014 (In thousands) Current Federal $ (71,878 ) $ 480,446 $ 294,509 State (7,304 ) 71,750 40,325 Deferred Federal 100,208 (127,714 ) (168,756 ) State (1,615 ) (18,422 ) (24,906 ) $ 19,411 $ 406,060 $ 141,172 The statutory federal income tax rate applied to pre-tax book income reconciles to income tax expense as follows: Years Ended December 31, 2016 2015 2014 (In thousands) Tax computed at statutory rate $ (60,037 ) $ 422,999 $ 163,625 State income taxes, net of federal tax benefit (14,056 ) 40,385 13,641 Domestic production activities deduction 4,170 (35,200 ) (20,998 ) Noncontrolling interest in net income (26,903 ) (24,155 ) (17,431 ) Goodwill 119,722 — — Other (3,485 ) 2,031 2,335 $ 19,411 $ 406,060 $ 141,172 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, 2016 and 2015 are as follows: December 31, 2016 Assets Liabilities Total (In thousands) Deferred income taxes Properties, plants and equipment (due primarily to tax in excess of book depreciation) $ — $ (618,053 ) $ (618,053 ) Accrued employee benefits 21,355 — 21,355 Accrued post-retirement benefits 10,024 — 10,024 Accrued environmental costs 41,152 — 41,152 Hedging instruments 7,396 — 7,396 Inventory differences — (8,341 ) (8,341 ) Deferred turnaround costs — (83,993 ) (83,993 ) Net operating loss and tax credit carryforwards 23,203 — 23,203 Investment in HEP — (27,276 ) (27,276 ) Other 14,119 — 14,119 Total $ 117,249 $ (737,663 ) $ (620,414 ) 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 ) At December 31, 2016 , we had a U.S. federal income tax net operating loss of $199.0 million that is scheduled to be carried back to 2014. As a result of this net operating loss, we expect to pay alternative minimum tax for 2016 and to generate a deferred credit. We generated a $11.0 million state operating loss, which can be carried back in some states, but is generally carried forward for 5 to 20 years. We also generated an Oklahoma income tax credit of $3.0 million that can be carried forward indefinitely, and a Kansas income tax credit that can be carried forward for 16 tax years. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Years Ended December 31, 2016 2015 2014 (In thousands) Balance at January 1 $ — $ — $ 9,006 Additions based on tax positions related to the current year 22,137 — — Settlements — — (9,006 ) Balance at December 31 $ 22,137 $ — $ — At December 31, 2016 there were $22.1 million of unrecognized tax benefits that, if recognized, would affect our effective tax rate. We had no unrecognized benefits at December 31, 2015 or 2014. Unrecognized tax benefits are adjusted in the period in which new information about a tax position becomes available or the final outcome differs from the amount recorded. The 2016 addition to unrecognized tax benefits relates to claims filed with the IRS on the federal income tax treatment of refundable biodiesel/ethanol blending tax credits for certain prior years. The issues related to the claims are complex and uncertain, and we cannot conclude that it is more likely than not that we will sustain the claims. Therefore, no tax benefit has been recognized for the filed claims. The Company believes it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase within 12 months of the reporting date based on additional filings. We recognize interest and penalties relating to liabilities for unrecognized tax benefits as an element of tax expense. We have not recorded any penalties related to our uncertain tax positions as we believe that it is more likely than not that there will not be any assessment of penalties. 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 2011 . Other than the federal claim noted above, we 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, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Shares of our common stock outstanding and activity for the years ended December 31, 2016 , 2015 and 2014 are presented below: Years Ended December 31, 2016 2015 2014 Common shares outstanding at January 1 180,234,388 196,086,090 198,830,351 Issuance of restricted stock, excluding restricted stock with performance feature 870,378 447,534 376,622 Vesting of performance units 76,404 136,896 416,111 Vesting of restricted stock with performance feature 40,294 43,774 77,430 Forfeitures of restricted stock (16,795 ) (51,332 ) (76,107 ) Purchase of treasury stock (1) (3,859,403 ) (16,428,574 ) (3,538,317 ) Common shares outstanding at December 31 177,345,266 180,234,388 196,086,090 (1) Includes 147,922 , 151,967 and 279,680 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, 2016 , we had remaining authorization to repurchase up to $178.8 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, 2016 , 2015 and 2014 , we withheld shares of our common stock from certain employees in the amounts of $4.7 million , $6.2 million and $11.4 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, 2016 | |
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, 2016 Net unrealized gain on marketable securities $ 104 $ 40 $ 64 Net unrealized gain on hedging instruments 25,040 9,713 15,327 Net change in other post-retirement benefit obligations (1,113 ) (431 ) (682 ) Other comprehensive income 24,031 9,322 14,709 Less other comprehensive loss attributable to noncontrolling interest (58 ) — (58 ) Other comprehensive gain attributable to HollyFrontier stockholders $ 24,089 $ 9,322 $ 14,767 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 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 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 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, 2016 2015 2014 (In thousands) Marketable securities $ (23 ) $ (51 ) $ 4 Interest income — 42 — Gain on sale of assets (23 ) (9 ) 4 (9 ) (3 ) 2 Income tax expense (benefit) (14 ) (6 ) 2 Net of tax Hedging instruments: Commodity price swaps (20,293 ) 245,819 88,326 Sales and other revenues — (179,700 ) (37,313 ) Cost of products sold (21,864 ) (17,607 ) 791 Operating expenses Interest rate swaps (508 ) (2,100 ) (2,202 ) Interest expense (42,665 ) 46,412 49,602 (16,387 ) 18,454 19,712 Income tax expense (benefit) (26,278 ) 27,958 29,890 Net of tax 320 1,273 1,335 Noncontrolling interest (25,958 ) 29,231 31,225 Net of tax and noncontrolling interest Other post-retirement benefit obligations: Post-retirement healthcare obligation 130 271 482 Cost of products sold 2,989 2,681 3,366 Operating expenses 363 347 448 General and administrative expenses 3,482 3,299 4,296 1,348 1,277 1,663 Income tax expense 2,134 2,022 2,633 Net of tax Retirement restoration plan (15 ) (20 ) (920 ) General and administrative expenses (6 ) (8 ) (356 ) Income tax benefit (9 ) (12 ) (564 ) Net of tax Total reclassifications for the period $ (23,847 ) $ 31,235 $ 33,296 Accumulated other comprehensive income (loss) in the equity section of our consolidated balance sheets includes: Years Ended December 31, 2016 2015 (In thousands) Unrealized gain on post-retirement benefit obligations $ 20,055 $ 20,737 Unrealized gain (loss) on marketable securities 3 (61 ) Unrealized loss on hedging instruments, net of noncontrolling interest (9,446 ) (24,831 ) Accumulated other comprehensive income (loss) $ 10,612 $ (4,155 ) |
Retirement Plan
Retirement Plan | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 . 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, 2016 and 2015 : Years Ended December 31, 2016 2015 (In thousands) Change in plans' benefit obligation Post-retirement plans' benefit obligation - beginning of year $ 21,201 $ 23,633 Service cost 1,294 1,694 Interest cost 787 819 Participant contributions 244 593 Amendments 21 — Benefits paid (2,171 ) (2,260 ) Actuarial loss (gain) (2,384 ) (3,278 ) Post-retirement plans' benefit obligation - end of year $ 18,992 $ 21,201 Change in plan assets Fair value of plan assets - beginning of year $ — $ — Employer contributions 1,927 1,667 Participant contributions 244 593 Benefits paid (2,171 ) (2,260 ) Fair value of plan assets - end of year $ — $ — Funded status Under-funded balance $ (18,992 ) $ (21,201 ) Amounts recognized in consolidated balance sheets Accrued post-retirement liability $ (18,992 ) $ (21,201 ) Amounts recognized in accumulated other comprehensive income (loss) Cumulative actuarial loss $ 771 $ (1,613 ) Prior service credit 32,434 35,937 Total $ 33,205 $ 34,324 Benefit payments, which reflect expected future service, are expected to be paid as follows: $1.8 million in 2017 ; $1.7 million in 2018 ; $1.6 million in 2019 ; $1.6 million in 2020 ; $1.7 million in 2021 ; and $8.3 million in 2022 through 2026 . The weighted average assumptions used to determine end of period benefit obligations: December 31, 2016 2015 Discount rate 3.75 % 3.90 % Current health care trend rate 7.00 % 8.00 % Ultimate health care trend rate 5.00 % 5.00 % Year rate reaches ultimate trend rate 2030 2041 Net periodic post-retirement credit consisted of the following components: Years Ended December 31, 2016 2015 2014 (In thousands) Service cost – benefit earned during the year $ 1,294 $ 1,694 $ 895 Interest cost on projected benefit obligations 787 819 638 Amortization of prior service credit (3,482 ) (3,482 ) (4,296 ) Amortization of net loss — 183 — Net periodic post-retirement credit $ (1,401 ) $ (786 ) $ (2,763 ) 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, 2016 2015 2014 Discount rate 3.90 % 3.60 % 4.25 % Current health care trend rate 8.00 % 8.00 % 8.00 % Ultimate health care trend rate 5.00 % 5.00 % 5.00 % Year rate reaches ultimate trend rate 2041 2042 2045 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 $ 187 $ (156 ) Interest cost $ 56 $ (49 ) Year-end accumulated post-retirement benefit obligation $ 1,286 $ (1,118 ) Pension Plan 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 for the year ended December 31, 2014 . 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 , $0.1 million and $1.2 million for the years ended December 31, 2016 , 2015 and 2014 , respectively, in connection with this plan. The accrued liability reflected in the consolidated balance sheets was $2.7 million and $2.8 million at December 31, 2016 and 2015 , respectively. As of December 31, 2016 , the projected benefit obligation under this plan was $2.7 million . Annual benefit payments of $0.2 million are expected to be paid through 2026 , which reflect expected future service. Defined Contribution Plan 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 $17.5 million , $17.2 million and $16.1 million for the years ended December 31, 2016 , 2015 and 2014 , respectively, in connection with this plan. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 , the minimum future rental commitments under operating leases having non-cancellable lease terms in excess of one year are as follows: (In thousands) 2017 $ 75,156 2018 67,463 2019 61,893 2020 60,035 2021 56,684 Thereafter 172,627 Total $ 493,858 Rental expense charged to operations was $93.2 million , $107.3 million and $89.8 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. For the years ended December 31, 2016 , 2015 and 2014 , rental expense included $8.5 million , $8.9 million and $8.0 million , respectively, in costs attributable to the HEP operations. |
Contingencies And Contractual C
Contingencies And Contractual Commitments | 12 Months Ended |
Dec. 31, 2016 | |
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 2017 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 2017 through 2033. At December 31, 2016 , the minimum future transportation and storage fees under transportation agreements having terms in excess of one year are as follows: (In thousands) 2017 $ 136,052 2018 135,048 2019 123,105 2020 110,929 2021 98,834 Thereafter 894,033 Total $ 1,498,001 Transportation and storage costs incurred under these agreements totaled $135.1 million , $137.7 million and $118.0 million for the years ended December 31, 2016 , 2015 and 2014 , 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, 2016 | |
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), a 50% ownership interest in each of the Frontier Pipeline, Osage Pipeline and the Cheyenne Pipeline and a 25% ownership interest in the SLC Pipeline. 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 (1,2) HEP (2) Corporate and Other Consolidations and Eliminations Consolidated Total (In thousands) Year Ended December 31, 2016 Sales and other revenues $ 10,467,190 $ 402,043 $ 168 $ (333,701 ) $ 10,535,700 Depreciation and amortization $ 282,321 $ 68,811 $ 12,723 $ (828 ) $ 363,027 Income (loss) from operations $ (163,624 ) $ 196,716 $ (130,565 ) $ (2,414 ) $ (99,887 ) Earnings of equity method investments $ — $ 14,213 $ — $ — $ 14,213 Capital expenditures $ 363,115 $ 107,595 $ 9,080 $ — $ 479,790 Total assets $ 6,513,806 $ 1,920,487 $ 1,306,169 $ (304,801 ) $ 9,435,661 Year Ended December 31, 2015 Sales and other revenues $ 13,171,183 $ 358,875 $ 663 $ (292,801 ) $ 13,237,920 Depreciation and amortization $ 273,345 $ 61,690 $ 11,944 $ (828 ) $ 346,151 Income (loss) from operations $ 1,190,578 $ 179,075 $ (123,004 ) $ (2,296 ) $ 1,244,353 Earnings (loss) of equity method investments $ — $ 4,803 $ (8,541 ) $ — $ (3,738 ) Capital expenditures $ 469,011 $ 193,121 $ 14,023 $ — $ 676,155 Total assets $ 6,597,355 $ 1,812,279 $ 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 $ 293,508 $ 60,911 $ 9,790 $ (828 ) $ 363,381 Income (loss) from operations $ 492,853 $ 154,706 $ (129,874 ) $ (2,151 ) $ 515,534 Earnings of equity method investments $ — $ 2,987 $ (4,994 ) $ — $ (2,007 ) Capital expenditures $ 346,605 $ 198,686 $ 19,530 $ — $ 564,821 Total assets $ 6,782,091 $ 1,617,133 $ 1,150,865 $ (320,042 ) $ 9,230,047 (1) For the year ended December 31, 2016 , we recorded goodwill and long-lived asset impairment charges of $309.3 million and $344.8 million , respectively, that relate to our Cheyenne Refinery, which is included in our Refining segment. (2) HEP acquired the crude oil tanks at our Tulsa Refineries in March 2016 and acquired a newly constructed crude unit, FCCU and polymerization unit at our Woods Cross Refinery in October 2016. As a result, we have recast our 2015 and 2014 HEP segment information to include these assets and related capital expenditures and certain operating expenses that were previously presented under the Refining segment. Additionally, prior year capital expenditures related to these assets have been recast as if they were incurred by HEP versus HFC in the statement of cash flows. HEP segment revenues from external customers were $68.9 million , $66.7 million and $57.3 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. |
Supplemental Financial Informat
Supplemental Financial Information | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Financial Information [Abstract] | |
Supplemental Financial Information | Financial Information Borrowings pursuant to the HollyFrontier Credit Agreement are recourse to 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, 2016 HollyFrontier Corp. Before Consolidation of HEP HEP Segment Consolidations and Eliminations Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 706,922 $ 3,657 $ — $ 710,579 Marketable securities 424,148 — — 424,148 Accounts receivable, net 487,693 50,408 (58,902 ) 479,199 Inventories 1,134,274 1,402 — 1,135,676 Income taxes receivable 68,371 — — 68,371 Prepayments and other 37,379 1,486 (5,829 ) 33,036 Total current assets 2,858,787 56,953 (64,731 ) 2,851,009 Properties, plants and equipment, net 2,874,041 1,365,568 (231,161 ) 4,008,448 Intangibles and other assets 2,077,683 497,966 555 2,576,204 Total assets $ 7,810,511 $ 1,920,487 $ (295,337 ) $ 9,435,661 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 967,347 $ 26,942 $ (58,902 ) $ 935,387 Accrued liabilities 115,878 37,793 (5,829 ) 147,842 Total current liabilities 1,083,225 64,735 (64,731 ) 1,083,229 Long-term debt 991,225 1,243,912 — 2,235,137 Liability to HEP 208,603 — (208,603 ) — Deferred income tax liabilities 619,905 509 — 620,414 Other long-term liabilities 132,515 62,971 (590 ) 194,896 Investment in HEP 136,435 — (136,435 ) — Equity – HollyFrontier 4,638,603 454,803 (412,012 ) 4,681,394 Equity – noncontrolling interest — 93,557 527,034 620,591 Total liabilities and equity $ 7,810,511 $ 1,920,487 $ (295,337 ) $ 9,435,661 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 3,027,614 1,333,563 (245,515 ) 4,115,662 Intangibles and other assets 2,410,879 417,574 (3,881 ) 2,824,572 Total assets $ 6,877,237 $ 1,812,279 $ (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 125,614 59,376 (5,025 ) 179,965 Investment in HEP 129,961 — (129,961 ) — Equity – HollyFrontier 5,008,389 600,367 (355,341 ) 5,253,415 Equity – noncontrolling interest — 94,429 461,929 556,358 Total liabilities and equity $ 6,877,237 $ 1,812,279 $ (301,217 ) $ 8,388,299 Condensed Consolidating Statement of Income and Comprehensive Income Year Ended December 31, 2016 HollyFrontier HEP Segment Consolidations and Eliminations Consolidated (In thousands) Sales and other revenues $ 10,467,358 $ 402,043 $ (333,701 ) $ 10,535,700 Operating costs and expenses: Cost of products sold 9,062,757 — (296,830 ) 8,765,927 Lower of cost or market valuation inventory adjustment (291,938 ) — — (291,938 ) Operating expenses 928,483 123,985 (33,629 ) 1,018,839 General and administrative 113,117 12,531 125,648 Depreciation and amortization 308,569 68,811 (14,353 ) 363,027 Goodwill and asset impairment 654,084 — — 654,084 Total operating costs and expenses 10,775,072 205,327 (344,812 ) 10,635,587 Income (loss) from operations (307,714 ) 196,716 11,111 (99,887 ) Other income (expense): Earnings of equity method investments 100,322 14,213 (100,322 ) 14,213 Interest income (expense) (8,355 ) (52,112 ) (9,234 ) (69,701 ) Loss on early extinguishment of debt (8,718 ) — — (8,718 ) Other, net (8,118 ) 677 — (7,441 ) 75,131 (37,222 ) (109,556 ) (71,647 ) Income (loss) before income taxes (232,583 ) 159,494 (98,445 ) (171,534 ) Income tax provision 19,126 285 — 19,411 Net income (loss) (251,709 ) 159,209 (98,445 ) (190,945 ) Less net income attributable to noncontrolling interest (34 ) 10,006 59,536 69,508 Net income (loss) attributable to HollyFrontier stockholders $ (251,675 ) $ 149,203 $ (157,981 ) $ (260,453 ) Comprehensive income (loss) attributable to HollyFrontier stockholders $ (236,908 ) $ 149,161 $ (157,939 ) $ (245,686 ) 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 inventory valuation adjustment 226,979 — — 226,979 Operating expenses 958,103 105,554 (3,284 ) 1,060,373 General and administrative 108,290 12,556 — 120,846 Depreciation and amortization 298,779 61,690 (14,318 ) 346,151 Total operating costs and expenses 12,117,761 179,800 (303,994 ) 11,993,567 Income from operations 1,054,085 179,075 11,193 1,244,353 Other income (expense): Earnings 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 ) Other, net 8,916 486 — 9,402 92,613 (31,603 ) (96,795 ) (35,785 ) Income before income taxes 1,146,698 147,472 (85,602 ) 1,208,568 Income tax provision 405,832 228 — 406,060 Net income 740,866 147,244 (85,602 ) 802,508 Less net income attributable to noncontrolling interest (30 ) 11,120 51,317 62,407 Net income attributable to HollyFrontier stockholders $ 740,896 $ 136,124 $ (136,919 ) $ 740,101 Comprehensive income attributable to HollyFrontier stockholders $ 708,847 $ 136,217 $ (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 1,040,187 106,185 (1,432 ) 1,144,940 General and administrative 103,785 10,824 — 114,609 Depreciation and amortization 316,786 60,911 (14,316 ) 363,381 Total operating costs and expenses 19,358,837 177,920 (287,964 ) 19,248,793 Income from operations 349,491 154,706 11,337 515,534 Other income (expense): Earnings of equity method investments 65,375 2,987 (70,369 ) (2,007 ) Interest expense 6,221 (36,098 ) (9,339 ) (39,216 ) Loss on early extinguishment of debt — (7,677 ) — (7,677 ) Other, net 866 — — 866 72,462 (40,788 ) (79,708 ) (48,034 ) Income before income taxes 421,953 113,918 (68,371 ) 467,500 Income tax provision 140,937 235 — 141,172 Net income 281,016 113,683 (68,371 ) 326,328 Less net income attributable to noncontrolling interest (25 ) 8,288 36,773 45,036 Net income attributable to HollyFrontier stockholders $ 281,041 $ 105,395 $ (105,144 ) $ 281,292 Comprehensive income attributable to HollyFrontier stockholders $ 308,113 $ 105,434 $ (105,183 ) $ 308,364 Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2016 HollyFrontier Corp. Before Consolidation of HEP HEP Segment Consolidations and Eliminations Consolidated (In thousands) Cash flows from operating activities $ 460,918 $ 242,761 $ (101,408 ) $ 602,271 Cash flow from investing activities Additions to properties, plants and equipment (372,195 ) — — (372,195 ) Additions to properties, plants and equipment – HEP — (103,823 ) (3,772 ) (107,595 ) Purchase of equity method investment — (42,627 ) — (42,627 ) Proceeds from sale of assets 422 427 — 849 Purchases of marketable securities (546,632 ) — — (546,632 ) Sales and maturities of marketable securities 266,603 — — 266,603 (651,802 ) (146,023 ) (3,772 ) (801,597 ) Cash flows from financing activities Net repayments under credit agreement – HEP — (159,000 ) — (159,000 ) Net proceeds from issuance of senior notes - HFC 992,550 — — 992,550 Net proceeds from issuance of senior notes - HEP — 394,000 — 394,000 Net proceeds from issuance of term loan 350,000 — — 350,000 Repayment of term loan (350,000 ) — — (350,000 ) Proceeds from issuance of common units — 125,870 — 125,870 Purchase of treasury stock (133,430 ) — — (133,430 ) Dividends (234,004 ) — — (234,004 ) Distributions to noncontrolling interest — (197,787 ) 105,180 (92,607 ) Repayment of financing obligation — (39,500 ) — (39,500 ) Distribution from HEP 278,000 (278,000 ) — — Contribution from general partner (53,839 ) 53,839 — — Other, net (2,991 ) (7,516 ) — (10,507 ) 846,286 (108,094 ) 105,180 843,372 Cash and cash equivalents Increase (decrease) for the period 655,402 (11,356 ) — 644,046 Beginning of period 51,520 15,013 — 66,533 End of period $ 706,922 $ 3,657 $ — $ 710,579 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 $ 839,106 $ 230,940 $ (90,420 ) $ 979,626 Cash flows from investing activities: Additions to properties, plants and equipment (483,034 ) — — (483,034 ) Additions to properties, plants and equipment – HEP — (193,121 ) — (193,121 ) 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 (134,874 ) (246,874 ) — (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 (128,476 ) 128,476 — — Other, net (6,504 ) (5,671 ) — (12,175 ) (1,217,867 ) 28,117 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 $ 653,570 $ 185,519 $ (80,493 ) $ 758,596 Cash flows from investing activities: Additions to properties, plants and equipment (366,135 ) — — (366,135 ) Additions to properties, plants and equipment – HEP — (198,686 ) — (198,686 ) 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 (93,636 ) (198,686 ) — (292,322 ) Cash flows from financing activities: Net borrowings under credit agreement – HEP — 208,000 — 208,000 Redemptions of senior notes — (156,188 ) — (156,188 ) Purchase of treasury stock (158,847 ) — — (158,847 ) Contribution from general partner (120,111 ) 120,111 — — Dividends (647,197 ) — — (647,197 ) Distributions to noncontrolling interest — (158,695 ) 80,493 (78,202 ) Excess tax benefit from equity-based compensation 2,040 — — 2,040 Other, net (4,415 ) (3,583 ) — (7,998 ) (928,530 ) 9,645 80,493 (838,392 ) Cash and cash equivalents 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 |
Significant Customers
Significant Customers | 12 Months Ended |
Dec. 31, 2016 | |
Significant Customers [Abstract] | |
Significant Customers | Significant Customers All revenues are domestic revenues, except for sales of refined products 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 Refining segment revenues. Shell Oil accounted for $1,048.2 million ( 10% ), $1,252.6 million ( 9% ) and $2,097.4 million ( 11% ) for the years ended December 31, 2016 , 2015 and 2014 , respectively, and Sinclair accounted for $927.0 million ( 9% ), $1,104.9 million ( 8% ) and $2,018.8 million ( 10% ) of our revenues for the years ended December 31, 2016 , 2015 and 2014 , respectively. Our export sales were less than 3% of our revenues for the years ended December 31, 2016 , 2015 and 2014 . |
Quarterly Information (Unaudite
Quarterly Information (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 Sales and other revenues $ 2,018,724 $ 2,714,638 $ 2,847,270 $ 2,955,068 $ 10,535,700 Operating costs and expenses $ 1,935,126 $ 3,135,180 $ 2,722,505 $ 2,842,776 $ 10,635,587 Income (loss) from operations (1,2) $ 83,598 $ (420,542 ) $ 124,765 $ 112,292 $ (99,887 ) Income (loss) before income taxes $ 65,698 $ (430,515 ) $ 109,867 $ 83,416 $ (171,534 ) Net income (loss) attributable to HollyFrontier stockholders $ 21,253 $ (409,368 ) $ 74,497 $ 53,165 $ (260,453 ) Net income (loss) per share attributable to HollyFrontier stockholders - basic $ 0.12 $ (2.33 ) $ 0.42 $ 0.30 $ (1.48 ) Net income (loss) per share attributable to HollyFrontier stockholders - diluted $ 0.12 $ (2.33 ) $ 0.42 $ 0.30 $ (1.48 ) Dividends per common share $ 0.33 $ 0.33 $ 0.33 $ 0.33 $ 1.32 Average number of shares of common stock outstanding: Basic 176,737 175,865 175,871 175,936 176,101 Diluted 176,784 175,865 175,993 176,137 176,101 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 (3) $ 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 (1) For 2016, income from operations reflects non-cash lower of cost or market inventory valuation reductions of $56.1 million and $138.5 million for the first and second quarters, respectively, and a charge of $0.3 million for the third quarter and a reduction of $97.7 million for the fourth quarter. (2) For 2016, income from operations reflects non-cash goodwill and long-lived asset impairment charges of $654.1 million in the second quarter. (3) 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 increases of $225.5 million and $143.6 million for the third and fourth quarters, respectively. |
Description of Business and S30
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 , 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”) which operates various asphalt terminals in Arizona, New Mexico and Oklahoma; and • owned a 37% 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 at both December 31, 2016 and 2015 . 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 and unfinished and finished refined products, 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. Inventories consisting of process chemicals, materials and maintenance supplies and RINs are stated at the lower of weighted-average cost or market. At December 31, 2016 , and 2015 , market values had fallen below historical LIFO inventory costs and, as a result, we recorded lower of cost or market inventory valuation reserves of $332.5 million and $624.5 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 13 for additional information. |
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 $22.1 million and $20.7 million at December 31, 2016 and 2015 , respectively, which are included in “Other long-term liabilities” in our consolidated balance sheets. Accretion expense was insignificant for the years ended December 31, 2016 , 2015 and 2014 . |
Intangibles and Goodwill | Intangibles, Goodwill and long-lived assets: Intangible assets are assets (other than financial assets) that lack physical substance, and 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 intangibles 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. Our long-lived assets principally consist of our refining assets that are organized as refining asset groups. These refinery asset groups also constitute our individual refinery reporting units that are used for testing and measuring goodwill impairments. Our long-lived assets are evaluated for 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 measured, if any, is equal to the amount by which the asset group’s carrying value exceeds its fair value. See Note 10 for information regarding goodwill and long-lived asset impairment charges recorded during the year ended December 31, 2016 . Our consolidated HEP assets include a third-party transportation agreement, an intangible asset, that currently generates minimum annual cash inflows of $26.0 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 $36.5 million and $38.5 million at December 31, 2016 , and 2015 , respectively, and is presented net of accumulated amortization of $23.7 million and $21.7 million respectively, in “Intangibles and other” in our consolidated balance sheets. |
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% or a controlling interest with respect to VIE's, and use the equity method of accounting for investments in which we have a noncontrolling interest, yet have have significant influence over the entity. 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 Aspen LLC, the owner of a pipeline running from Wyoming to Frontier Station, Utah (the “Frontier Pipeline”); a 50% interest in Osage Pipe Line Company, LLC, the owner of a pipeline running from Cushing, Oklahoma to El Dorado, Kansas (the “Osage Pipeline”); a 50% interest in Cheyenne Pipeline, LLC, the owner of a pipeline running from Fort Laramie, Wyoming to Cheyenne, Wyoming (the “Cheyenne 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, 2016 , HEP's underlying equity and recorded investment balances in the joint ventures are $109.3 million and $165.6 million , respectively. 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 | Properties, plants and equipment: Properties, plants and equipment are stated at cost. Depreciation is provided by the straight-line method over the estimated useful lives of the assets, primarily 15 to 32 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 $110.6 million , $107.8 million and $96.9 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. |
Environmental Costs | Environmental Costs: Environmental costs are charged to operating expenses if they relate to an existing condition caused by past operations. We have ongoing investigations of environmental matters at various locations as part of our assessment process to determine the amount of environmental obligation we may have, if any, with respect to these matters for which we have recorded the estimated cost of the studies. 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. For the year ended December 31, 2016 , we recorded an income tax expense of $19.4 million compared $406.1 million and $141.2 million for the years ended December 31, 2015 and 2014 , respectively. This decrease was due principally to a pre-tax loss during the year ended December 31, 2016 compared to pre-tax earnings in the same periods of 2015 and 2014 . Our effective tax rates, before consideration of earnings attributable to the noncontrolling interest, were (11.3)% , 33.6% and 30.2% for the years ended December 31, 2016 , 2015 and 2014 , respectively. The year-over-year decrease in the effective tax rate in 2016 was due principally to the effects of the second quarter $309.3 million goodwill impairment charge, a significant cause of our $171.5 million loss before income taxes for the year ended December 31, 2016 , that is not deductible for income tax purposes. 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 | te of January 1, 2018, and we anticipate to account for the new guidance using the modified retrospective implementation method, whereby a cumulative effect adjustment is recorded to retained earnings as of the date of initial application. Our preparation for adoption of this standard is in progress, and we are currently evaluating terms, conditions and our performance obligations of our existing contracts with customers. We are evaluating the effect of this standard on our revenue recognition policies and whether it will have a material impact on our financial condition, results of operations or cash flows. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Carrying Amounts and Estimated Fair Values of Marketable Securities, Derivatives and Senior Notes | The carrying values of marketable securities and derivative instruments at December 31, 2016 and December 31, 2015 were as follows: Fair Value by Input Level Financial Instrument Carrying Amount Level 1 Level 2 Level 3 (In thousands) December 31, 2016 Assets: Marketable securities $ 424,148 $ — $ 424,148 $ — Commodity price swaps 14,563 — 14,358 205 Commodity forward contracts 5,905 — 5,905 — HEP interest rate swaps 91 — 91 — Total assets $ 444,707 $ — $ 444,502 $ 205 Liabilities: NYMEX futures contracts $ 1,975 $ 1,975 $ — $ — Commodity price swaps 26,845 — 24,086 2,759 Commodity forward contracts 8,316 — 8,316 — Foreign currency forward contracts 6,519 — 6,519 — Total liabilities $ 43,655 $ 1,975 $ 38,921 $ 2,759 Fair Value by Input Level Financial Instrument Carrying Amount Level 1 Level 2 Level 3 (In thousands) December 31, 2015 Assets: Marketable securities $ 144,019 $ — $ 144,019 $ — NYMEX futures contract 3,469 3,469 — — Commodity price swaps 37,097 — 37,097 — HEP interest rate swaps 304 — 304 — Total assets $ 184,889 $ 3,469 $ 181,420 $ — Liabilities: Commodity price swaps $ 98,930 $ — $ 98,930 $ — HEP interest rate swaps 114 — 114 — Total liabilities $ 99,044 $ — $ 99,044 $ — |
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, 2016 and 2015 : Years Ended December 31, Level 3 Financial Instruments 2016 2015 (In thousands) Liability balance at beginning of period $ — $ — Change in fair value: Recognized in other comprehensive income (1,460 ) 3,852 Recognized in cost of products sold (1,094 ) — Settlement date fair value of contractual maturities: Recognized in sales and other revenues — (3,852 ) Liability balance at end of period $ (2,554 ) $ — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 (loss) attributable to HollyFrontier stockholders: Years Ended December 31, 2016 2015 2014 (In thousands, except per share data) Net income (loss) attributable to HollyFrontier stockholders $ (260,453 ) $ 740,101 $ 281,292 Participating securities’ (restricted stock) share in earnings 1,003 2,306 820 Net income (loss) attributable to common shares $ (261,456 ) $ 737,795 $ 280,472 Average number of shares of common stock outstanding 176,101 188,731 197,243 Effect of dilutive variable restricted shares and performance share units (1) — 209 185 Average number of shares of common stock outstanding assuming dilution 176,101 188,940 197,428 Basic earnings (loss) per share $ (1.48 ) $ 3.91 $ 1.42 Diluted earnings (loss) per share $ (1.48 ) $ 3.90 $ 1.42 (1) Excludes anti-dilutive restricted and performance share units of: 469 89 356 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 is presented below: Restricted Stock and Restricted Stock Units Grants Weighted Average Grant Date Fair Value Aggregate Intrinsic Value ($000) Outstanding at January 1, 2016 (non-vested) 722,525 $ 47.50 Granted 894,879 21.66 Vesting (transfer/conversion to common stock) (409,016 ) 45.09 Forfeited (19,614 ) 48.02 Outstanding at December 31, 2016 (non-vested) 1,188,774 $ 28.87 $ 37,426 |
Summary Of Performance Share Unit Activity | A summary of performance share unit activity and changes during the year ended December 31, 2016 is presented below: Performance Share Units Grants Outstanding at January 1, 2016 (non-vested) 637,938 Granted 376,275 Vesting and transfer of ownership to recipients (161,610 ) Forfeited (148,664 ) Outstanding at December 31, 2016 (non-vested) 703,939 |
Cash and Cash Equivalents and34
Cash and Cash Equivalents and Investments in Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Cash, Cash Equivalents, and Short-term Investments [Abstract] | |
Available-For-Sale Securities | The following is a summary of our marketable securities as of December 31, 2016 and 2015 , respectively: Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Fair Value (Net Carrying Amount) (In thousands) December 31, 2016 Commercial paper $ 7,687 $ 1 $ (1 ) $ 7,687 Corporate debt securities 4,001 — — 4,001 State and political subdivisions debt securities 412,462 1 (3 ) 412,460 Total marketable securities $ 424,150 $ 2 $ (4 ) $ 424,148 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 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory, Net [Abstract] | |
Inventory Components | Inventory consists of the following components: December 31, 2016 2015 (In thousands) Crude oil $ 549,886 $ 518,922 Other raw materials and unfinished products (1) 287,561 214,832 Finished products (2) 465,432 603,568 Lower of cost or market reserve (332,518 ) (624,457 ) Process chemicals (3) 2,767 4,477 Repairs and maintenance supplies and other (4) 162,548 124,527 Total inventory $ 1,135,676 $ 841,869 (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, 2016 | |
Property, Plant and Equipment [Abstract] | |
Components Of Property, Plants And Equipment | The components of properties, plants and equipment are as follows: December 31, 2016 2015 (In thousands) Land, buildings and improvements $ 326,097 $ 305,712 Refining facilities 3,382,369 2,833,125 Pipelines and terminals 1,392,898 1,321,398 Transportation vehicles 18,841 21,289 Other fixed assets 153,463 158,401 Construction in progress 273,188 850,264 5,546,856 5,490,189 Accumulated depreciation (1,538,408 ) (1,374,527 ) $ 4,008,448 $ 4,115,662 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Carrying Amounts Of Long-Term Debt | The carrying amounts of long-term debt are as follows: December 31, 2016 2015 (In thousands) HollyFrontier 5.875% Senior Notes Principal $ 1,000,000 $ — Unamortized discount and debt issuance costs (8,775 ) — 991,225 — Financing Obligation — 31,288 Total HollyFrontier long-term debt 991,225 31,288 HEP Credit Agreement 553,000 712,000 HEP 6% Senior Notes Principal 400,000 — Unamortized discount and debt issuance costs (6,607 ) — 393,393 — HEP 6.5% Senior Notes Principal 300,000 300,000 Unamortized discount and debt issuance costs (2,481 ) (3,248 ) 297,519 296,752 Total HEP long-term debt 1,243,912 1,008,752 Total long-term debt $ 2,235,137 $ 1,040,040 The fair values of the senior notes are as follows: December 31, 2016 2015 (In thousands) HollyFrontier 5.875% Senior Notes $ 1,022,500 $ — HEP Senior Notes $ 723,750 $ 295,500 These fair values are based on estimates provided by a third party using market quotes for similar type instruments, a Level 2 input. See Note 4 for additional information on Level 2 inputs. |
Principal Maturities Of Long-Term Debt | Principal maturities of long-term debt are as follows: Years Ending December 31, (In thousands) 2017 $ — 2018 553,000 2019 — 2020 300,000 2021 — Thereafter 1,400,000 Total $ 2,253,000 |
Derivative Instruments and He38
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 Commodity price swaps Change in fair value $ (17,018 ) Loss reclassified to earnings due to settlements 41,077 Sales and other revenues $ (20,293 ) Amortization of discontinued hedges reclassified to earnings 1,080 Operating expenses (21,864 ) Operating expenses $ — Total $ 25,139 $ (42,157 ) $ — 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 ) |
Summary Of Notional Amounts of Outstanding Derivatives Serving as Price Risk Hedges | As of December 31, 2016 , we have the following notional contract volumes related to outstanding derivative instruments serving as cash flow hedges against price risk on forecasted transactions (all maturing in 2017): Derivative instruments Total Outstanding Notional Unit of Measure Natural gas price swaps - long 9,600,000 MMBTU WTI crude oil price swaps - long 519,000 Barrels Sub-octane gasoline price swaps - short 519,000 Barrels Forward gasoline and diesel contracts - short 175,000 Barrels Physical crude contracts - short 150,000 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 2016 2015 2014 (In thousands) Cost of products sold $ (6,889 ) $ 48,082 $ 68,509 Operating expenses 7,276 (12,003 ) (185 ) Other, net (6,520 ) — — Total $ (6,133 ) $ 36,079 $ 68,324 |
Schedule of Notional Amounts of Outstanding Derivatives Serving as Economic Hedges | As of December 31, 2016 , we have the following notional contract volumes related to our outstanding derivative contracts serving as economic hedges (all maturing in 2017): Derivative Instrument Total Outstanding Notional Unit of Measure Crude price swaps (basis spread) - long 3,645,000 Barrels Natural gas price swaps (basis spread) - long 10,308,000 MMBTU Natural gas price swaps - long 9,600,000 MMBTU Natural gas price swaps - short 9,600,000 MMBTU WTI crude oil price swaps - long 310,000 Barrels WTI crude oil price swaps - short 310,000 Barrels Sub-octane gasoline price swaps - short 310,000 Barrels Sub-octane gasoline price swaps - long 310,000 Barrels NYMEX futures (WTI) - short 755,000 Barrels Forward gasoline and diesel contracts - long 1,225,000 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, 2016 Interest rate swaps Change in fair value $ (607 ) Loss reclassified to earnings due to settlements 508 Interest expense $ (508 ) Total $ (99 ) $ (508 ) 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 ) |
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, 2016 Derivatives designated as cash flow hedging instruments: Commodity price swap contracts $ — $ — $ — $ 13,185 $ (431 ) $ 12,754 Commodity forward contracts — — — 2,978 — 2,978 Interest rate swap contracts 91 — 91 — — — $ 91 $ — $ 91 $ 16,163 $ (431 ) $ 15,732 Derivatives not designated as cash flow hedging instruments: Commodity price swap contracts $ 4,244 $ (756 ) $ 3,488 $ 12,903 $ (9,887 ) $ 3,016 NYMEX futures contracts — — — 1,975 — 1,975 Commodity forward contracts 5,905 — 5,905 5,338 — 5,338 Foreign currency forward contracts — — — 6,519 — 6,519 $ 10,149 $ (756 ) $ 9,393 $ 26,735 $ (9,887 ) $ 16,848 Total net balance $ 9,484 $ 32,580 Balance sheet classification: Prepayment and other $ 9,484 Accrued liabilities $ 32,580 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 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Provision For Income Taxes | The provision for income taxes is comprised of the following: Years Ended December 31, 2016 2015 2014 (In thousands) Current Federal $ (71,878 ) $ 480,446 $ 294,509 State (7,304 ) 71,750 40,325 Deferred Federal 100,208 (127,714 ) (168,756 ) State (1,615 ) (18,422 ) (24,906 ) $ 19,411 $ 406,060 $ 141,172 |
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, 2016 2015 2014 (In thousands) Tax computed at statutory rate $ (60,037 ) $ 422,999 $ 163,625 State income taxes, net of federal tax benefit (14,056 ) 40,385 13,641 Domestic production activities deduction 4,170 (35,200 ) (20,998 ) Noncontrolling interest in net income (26,903 ) (24,155 ) (17,431 ) Goodwill 119,722 — — Other (3,485 ) 2,031 2,335 $ 19,411 $ 406,060 $ 141,172 |
Deferred Tax Assets And Liabilities | Our deferred income tax assets and liabilities as of December 31, 2016 and 2015 are as follows: December 31, 2016 Assets Liabilities Total (In thousands) Deferred income taxes Properties, plants and equipment (due primarily to tax in excess of book depreciation) $ — $ (618,053 ) $ (618,053 ) Accrued employee benefits 21,355 — 21,355 Accrued post-retirement benefits 10,024 — 10,024 Accrued environmental costs 41,152 — 41,152 Hedging instruments 7,396 — 7,396 Inventory differences — (8,341 ) (8,341 ) Deferred turnaround costs — (83,993 ) (83,993 ) Net operating loss and tax credit carryforwards 23,203 — 23,203 Investment in HEP — (27,276 ) (27,276 ) Other 14,119 — 14,119 Total $ 117,249 $ (737,663 ) $ (620,414 ) 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 ) |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Changes To Equity | Shares of our common stock outstanding and activity for the years ended December 31, 2016 , 2015 and 2014 are presented below: Years Ended December 31, 2016 2015 2014 Common shares outstanding at January 1 180,234,388 196,086,090 198,830,351 Issuance of restricted stock, excluding restricted stock with performance feature 870,378 447,534 376,622 Vesting of performance units 76,404 136,896 416,111 Vesting of restricted stock with performance feature 40,294 43,774 77,430 Forfeitures of restricted stock (16,795 ) (51,332 ) (76,107 ) Purchase of treasury stock (1) (3,859,403 ) (16,428,574 ) (3,538,317 ) Common shares outstanding at December 31 177,345,266 180,234,388 196,086,090 (1) Includes 147,922 , 151,967 and 279,680 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, 2016 | |
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, 2016 Net unrealized gain on marketable securities $ 104 $ 40 $ 64 Net unrealized gain on hedging instruments 25,040 9,713 15,327 Net change in other post-retirement benefit obligations (1,113 ) (431 ) (682 ) Other comprehensive income 24,031 9,322 14,709 Less other comprehensive loss attributable to noncontrolling interest (58 ) — (58 ) Other comprehensive gain attributable to HollyFrontier stockholders $ 24,089 $ 9,322 $ 14,767 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 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 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 |
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, 2016 2015 2014 (In thousands) Marketable securities $ (23 ) $ (51 ) $ 4 Interest income — 42 — Gain on sale of assets (23 ) (9 ) 4 (9 ) (3 ) 2 Income tax expense (benefit) (14 ) (6 ) 2 Net of tax Hedging instruments: Commodity price swaps (20,293 ) 245,819 88,326 Sales and other revenues — (179,700 ) (37,313 ) Cost of products sold (21,864 ) (17,607 ) 791 Operating expenses Interest rate swaps (508 ) (2,100 ) (2,202 ) Interest expense (42,665 ) 46,412 49,602 (16,387 ) 18,454 19,712 Income tax expense (benefit) (26,278 ) 27,958 29,890 Net of tax 320 1,273 1,335 Noncontrolling interest (25,958 ) 29,231 31,225 Net of tax and noncontrolling interest Other post-retirement benefit obligations: Post-retirement healthcare obligation 130 271 482 Cost of products sold 2,989 2,681 3,366 Operating expenses 363 347 448 General and administrative expenses 3,482 3,299 4,296 1,348 1,277 1,663 Income tax expense 2,134 2,022 2,633 Net of tax Retirement restoration plan (15 ) (20 ) (920 ) General and administrative expenses (6 ) (8 ) (356 ) Income tax benefit (9 ) (12 ) (564 ) Net of tax Total reclassifications for the period $ (23,847 ) $ 31,235 $ 33,296 |
Accumulated Other Comprehensive Loss In Equity | Accumulated other comprehensive income (loss) in the equity section of our consolidated balance sheets includes: Years Ended December 31, 2016 2015 (In thousands) Unrealized gain on post-retirement benefit obligations $ 20,055 $ 20,737 Unrealized gain (loss) on marketable securities 3 (61 ) Unrealized loss on hedging instruments, net of noncontrolling interest (9,446 ) (24,831 ) Accumulated other comprehensive income (loss) $ 10,612 $ (4,155 ) |
Retirement Plan (Tables)
Retirement Plan (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 and 2015 : Years Ended December 31, 2016 2015 (In thousands) Change in plans' benefit obligation Post-retirement plans' benefit obligation - beginning of year $ 21,201 $ 23,633 Service cost 1,294 1,694 Interest cost 787 819 Participant contributions 244 593 Amendments 21 — Benefits paid (2,171 ) (2,260 ) Actuarial loss (gain) (2,384 ) (3,278 ) Post-retirement plans' benefit obligation - end of year $ 18,992 $ 21,201 Change in plan assets Fair value of plan assets - beginning of year $ — $ — Employer contributions 1,927 1,667 Participant contributions 244 593 Benefits paid (2,171 ) (2,260 ) Fair value of plan assets - end of year $ — $ — Funded status Under-funded balance $ (18,992 ) $ (21,201 ) Amounts recognized in consolidated balance sheets Accrued post-retirement liability $ (18,992 ) $ (21,201 ) Amounts recognized in accumulated other comprehensive income (loss) Cumulative actuarial loss $ 771 $ (1,613 ) Prior service credit 32,434 35,937 Total $ 33,205 $ 34,324 |
Weighted Average Assumptions Used | The weighted average assumptions used to determine end of period benefit obligations: December 31, 2016 2015 Discount rate 3.75 % 3.90 % Current health care trend rate 7.00 % 8.00 % Ultimate health care trend rate 5.00 % 5.00 % Year rate reaches ultimate trend rate 2030 2041 |
Net Periodic Pension Expense | Net periodic post-retirement credit consisted of the following components: Years Ended December 31, 2016 2015 2014 (In thousands) Service cost – benefit earned during the year $ 1,294 $ 1,694 $ 895 Interest cost on projected benefit obligations 787 819 638 Amortization of prior service credit (3,482 ) (3,482 ) (4,296 ) Amortization of net loss — 183 — Net periodic post-retirement credit $ (1,401 ) $ (786 ) $ (2,763 ) |
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, 2016 2015 2014 Discount rate 3.90 % 3.60 % 4.25 % Current health care trend rate 8.00 % 8.00 % 8.00 % Ultimate health care trend rate 5.00 % 5.00 % 5.00 % Year rate reaches ultimate trend rate 2041 2042 2045 |
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 $ 187 $ (156 ) Interest cost $ 56 $ (49 ) Year-end accumulated post-retirement benefit obligation $ 1,286 $ (1,118 ) |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Leases, Operating [Abstract] | |
Schedule Of Minimum Future Rental Commitments Under Operating Leases | At December 31, 2016 , the minimum future rental commitments under operating leases having non-cancellable lease terms in excess of one year are as follows: (In thousands) 2017 $ 75,156 2018 67,463 2019 61,893 2020 60,035 2021 56,684 Thereafter 172,627 Total $ 493,858 |
Contingencies And Contractual44
Contingencies And Contractual Commitments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Obligation, Fiscal Year Maturity Schedule | At December 31, 2016 , the minimum future transportation and storage fees under transportation agreements having terms in excess of one year are as follows: (In thousands) 2017 $ 136,052 2018 135,048 2019 123,105 2020 110,929 2021 98,834 Thereafter 894,033 Total $ 1,498,001 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule Of Segment Reporting Information | Refining (1,2) HEP (2) Corporate and Other Consolidations and Eliminations Consolidated Total (In thousands) Year Ended December 31, 2016 Sales and other revenues $ 10,467,190 $ 402,043 $ 168 $ (333,701 ) $ 10,535,700 Depreciation and amortization $ 282,321 $ 68,811 $ 12,723 $ (828 ) $ 363,027 Income (loss) from operations $ (163,624 ) $ 196,716 $ (130,565 ) $ (2,414 ) $ (99,887 ) Earnings of equity method investments $ — $ 14,213 $ — $ — $ 14,213 Capital expenditures $ 363,115 $ 107,595 $ 9,080 $ — $ 479,790 Total assets $ 6,513,806 $ 1,920,487 $ 1,306,169 $ (304,801 ) $ 9,435,661 Year Ended December 31, 2015 Sales and other revenues $ 13,171,183 $ 358,875 $ 663 $ (292,801 ) $ 13,237,920 Depreciation and amortization $ 273,345 $ 61,690 $ 11,944 $ (828 ) $ 346,151 Income (loss) from operations $ 1,190,578 $ 179,075 $ (123,004 ) $ (2,296 ) $ 1,244,353 Earnings (loss) of equity method investments $ — $ 4,803 $ (8,541 ) $ — $ (3,738 ) Capital expenditures $ 469,011 $ 193,121 $ 14,023 $ — $ 676,155 Total assets $ 6,597,355 $ 1,812,279 $ 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 $ 293,508 $ 60,911 $ 9,790 $ (828 ) $ 363,381 Income (loss) from operations $ 492,853 $ 154,706 $ (129,874 ) $ (2,151 ) $ 515,534 Earnings of equity method investments $ — $ 2,987 $ (4,994 ) $ — $ (2,007 ) Capital expenditures $ 346,605 $ 198,686 $ 19,530 $ — $ 564,821 Total assets $ 6,782,091 $ 1,617,133 $ 1,150,865 $ (320,042 ) $ 9,230,047 |
Supplemental Financial Inform46
Supplemental Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Financial Information [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet December 31, 2016 HollyFrontier Corp. Before Consolidation of HEP HEP Segment Consolidations and Eliminations Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 706,922 $ 3,657 $ — $ 710,579 Marketable securities 424,148 — — 424,148 Accounts receivable, net 487,693 50,408 (58,902 ) 479,199 Inventories 1,134,274 1,402 — 1,135,676 Income taxes receivable 68,371 — — 68,371 Prepayments and other 37,379 1,486 (5,829 ) 33,036 Total current assets 2,858,787 56,953 (64,731 ) 2,851,009 Properties, plants and equipment, net 2,874,041 1,365,568 (231,161 ) 4,008,448 Intangibles and other assets 2,077,683 497,966 555 2,576,204 Total assets $ 7,810,511 $ 1,920,487 $ (295,337 ) $ 9,435,661 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 967,347 $ 26,942 $ (58,902 ) $ 935,387 Accrued liabilities 115,878 37,793 (5,829 ) 147,842 Total current liabilities 1,083,225 64,735 (64,731 ) 1,083,229 Long-term debt 991,225 1,243,912 — 2,235,137 Liability to HEP 208,603 — (208,603 ) — Deferred income tax liabilities 619,905 509 — 620,414 Other long-term liabilities 132,515 62,971 (590 ) 194,896 Investment in HEP 136,435 — (136,435 ) — Equity – HollyFrontier 4,638,603 454,803 (412,012 ) 4,681,394 Equity – noncontrolling interest — 93,557 527,034 620,591 Total liabilities and equity $ 7,810,511 $ 1,920,487 $ (295,337 ) $ 9,435,661 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 3,027,614 1,333,563 (245,515 ) 4,115,662 Intangibles and other assets 2,410,879 417,574 (3,881 ) 2,824,572 Total assets $ 6,877,237 $ 1,812,279 $ (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 125,614 59,376 (5,025 ) 179,965 Investment in HEP 129,961 — (129,961 ) — Equity – HollyFrontier 5,008,389 600,367 (355,341 ) 5,253,415 Equity – noncontrolling interest — 94,429 461,929 556,358 Total liabilities and equity $ 6,877,237 $ 1,812,279 $ (301,217 ) $ 8,388,299 |
Condensed Consolidating Statement of Income and Comprehensive Income | Condensed Consolidating Statement of Income and Comprehensive Income Year Ended December 31, 2016 HollyFrontier HEP Segment Consolidations and Eliminations Consolidated (In thousands) Sales and other revenues $ 10,467,358 $ 402,043 $ (333,701 ) $ 10,535,700 Operating costs and expenses: Cost of products sold 9,062,757 — (296,830 ) 8,765,927 Lower of cost or market valuation inventory adjustment (291,938 ) — — (291,938 ) Operating expenses 928,483 123,985 (33,629 ) 1,018,839 General and administrative 113,117 12,531 125,648 Depreciation and amortization 308,569 68,811 (14,353 ) 363,027 Goodwill and asset impairment 654,084 — — 654,084 Total operating costs and expenses 10,775,072 205,327 (344,812 ) 10,635,587 Income (loss) from operations (307,714 ) 196,716 11,111 (99,887 ) Other income (expense): Earnings of equity method investments 100,322 14,213 (100,322 ) 14,213 Interest income (expense) (8,355 ) (52,112 ) (9,234 ) (69,701 ) Loss on early extinguishment of debt (8,718 ) — — (8,718 ) Other, net (8,118 ) 677 — (7,441 ) 75,131 (37,222 ) (109,556 ) (71,647 ) Income (loss) before income taxes (232,583 ) 159,494 (98,445 ) (171,534 ) Income tax provision 19,126 285 — 19,411 Net income (loss) (251,709 ) 159,209 (98,445 ) (190,945 ) Less net income attributable to noncontrolling interest (34 ) 10,006 59,536 69,508 Net income (loss) attributable to HollyFrontier stockholders $ (251,675 ) $ 149,203 $ (157,981 ) $ (260,453 ) Comprehensive income (loss) attributable to HollyFrontier stockholders $ (236,908 ) $ 149,161 $ (157,939 ) $ (245,686 ) 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 inventory valuation adjustment 226,979 — — 226,979 Operating expenses 958,103 105,554 (3,284 ) 1,060,373 General and administrative 108,290 12,556 — 120,846 Depreciation and amortization 298,779 61,690 (14,318 ) 346,151 Total operating costs and expenses 12,117,761 179,800 (303,994 ) 11,993,567 Income from operations 1,054,085 179,075 11,193 1,244,353 Other income (expense): Earnings 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 ) Other, net 8,916 486 — 9,402 92,613 (31,603 ) (96,795 ) (35,785 ) Income before income taxes 1,146,698 147,472 (85,602 ) 1,208,568 Income tax provision 405,832 228 — 406,060 Net income 740,866 147,244 (85,602 ) 802,508 Less net income attributable to noncontrolling interest (30 ) 11,120 51,317 62,407 Net income attributable to HollyFrontier stockholders $ 740,896 $ 136,124 $ (136,919 ) $ 740,101 Comprehensive income attributable to HollyFrontier stockholders $ 708,847 $ 136,217 $ (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 1,040,187 106,185 (1,432 ) 1,144,940 General and administrative 103,785 10,824 — 114,609 Depreciation and amortization 316,786 60,911 (14,316 ) 363,381 Total operating costs and expenses 19,358,837 177,920 (287,964 ) 19,248,793 Income from operations 349,491 154,706 11,337 515,534 Other income (expense): Earnings of equity method investments 65,375 2,987 (70,369 ) (2,007 ) Interest expense 6,221 (36,098 ) (9,339 ) (39,216 ) Loss on early extinguishment of debt — (7,677 ) — (7,677 ) Other, net 866 — — 866 72,462 (40,788 ) (79,708 ) (48,034 ) Income before income taxes 421,953 113,918 (68,371 ) 467,500 Income tax provision 140,937 235 — 141,172 Net income 281,016 113,683 (68,371 ) 326,328 Less net income attributable to noncontrolling interest (25 ) 8,288 36,773 45,036 Net income attributable to HollyFrontier stockholders $ 281,041 $ 105,395 $ (105,144 ) $ 281,292 Comprehensive income attributable to HollyFrontier stockholders $ 308,113 $ 105,434 $ (105,183 ) $ 308,364 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2016 HollyFrontier Corp. Before Consolidation of HEP HEP Segment Consolidations and Eliminations Consolidated (In thousands) Cash flows from operating activities $ 460,918 $ 242,761 $ (101,408 ) $ 602,271 Cash flow from investing activities Additions to properties, plants and equipment (372,195 ) — — (372,195 ) Additions to properties, plants and equipment – HEP — (103,823 ) (3,772 ) (107,595 ) Purchase of equity method investment — (42,627 ) — (42,627 ) Proceeds from sale of assets 422 427 — 849 Purchases of marketable securities (546,632 ) — — (546,632 ) Sales and maturities of marketable securities 266,603 — — 266,603 (651,802 ) (146,023 ) (3,772 ) (801,597 ) Cash flows from financing activities Net repayments under credit agreement – HEP — (159,000 ) — (159,000 ) Net proceeds from issuance of senior notes - HFC 992,550 — — 992,550 Net proceeds from issuance of senior notes - HEP — 394,000 — 394,000 Net proceeds from issuance of term loan 350,000 — — 350,000 Repayment of term loan (350,000 ) — — (350,000 ) Proceeds from issuance of common units — 125,870 — 125,870 Purchase of treasury stock (133,430 ) — — (133,430 ) Dividends (234,004 ) — — (234,004 ) Distributions to noncontrolling interest — (197,787 ) 105,180 (92,607 ) Repayment of financing obligation — (39,500 ) — (39,500 ) Distribution from HEP 278,000 (278,000 ) — — Contribution from general partner (53,839 ) 53,839 — — Other, net (2,991 ) (7,516 ) — (10,507 ) 846,286 (108,094 ) 105,180 843,372 Cash and cash equivalents Increase (decrease) for the period 655,402 (11,356 ) — 644,046 Beginning of period 51,520 15,013 — 66,533 End of period $ 706,922 $ 3,657 $ — $ 710,579 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 $ 839,106 $ 230,940 $ (90,420 ) $ 979,626 Cash flows from investing activities: Additions to properties, plants and equipment (483,034 ) — — (483,034 ) Additions to properties, plants and equipment – HEP — (193,121 ) — (193,121 ) 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 (134,874 ) (246,874 ) — (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 (128,476 ) 128,476 — — Other, net (6,504 ) (5,671 ) — (12,175 ) (1,217,867 ) 28,117 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 $ 653,570 $ 185,519 $ (80,493 ) $ 758,596 Cash flows from investing activities: Additions to properties, plants and equipment (366,135 ) — — (366,135 ) Additions to properties, plants and equipment – HEP — (198,686 ) — (198,686 ) 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 (93,636 ) (198,686 ) — (292,322 ) Cash flows from financing activities: Net borrowings under credit agreement – HEP — 208,000 — 208,000 Redemptions of senior notes — (156,188 ) — (156,188 ) Purchase of treasury stock (158,847 ) — — (158,847 ) Contribution from general partner (120,111 ) 120,111 — — Dividends (647,197 ) — — (647,197 ) Distributions to noncontrolling interest — (158,695 ) 80,493 (78,202 ) Excess tax benefit from equity-based compensation 2,040 — — 2,040 Other, net (4,415 ) (3,583 ) — (7,998 ) (928,530 ) 9,645 80,493 (838,392 ) Cash and cash equivalents 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 |
Quarterly Information (Unaudi47
Quarterly Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 Sales and other revenues $ 2,018,724 $ 2,714,638 $ 2,847,270 $ 2,955,068 $ 10,535,700 Operating costs and expenses $ 1,935,126 $ 3,135,180 $ 2,722,505 $ 2,842,776 $ 10,635,587 Income (loss) from operations (1,2) $ 83,598 $ (420,542 ) $ 124,765 $ 112,292 $ (99,887 ) Income (loss) before income taxes $ 65,698 $ (430,515 ) $ 109,867 $ 83,416 $ (171,534 ) Net income (loss) attributable to HollyFrontier stockholders $ 21,253 $ (409,368 ) $ 74,497 $ 53,165 $ (260,453 ) Net income (loss) per share attributable to HollyFrontier stockholders - basic $ 0.12 $ (2.33 ) $ 0.42 $ 0.30 $ (1.48 ) Net income (loss) per share attributable to HollyFrontier stockholders - diluted $ 0.12 $ (2.33 ) $ 0.42 $ 0.30 $ (1.48 ) Dividends per common share $ 0.33 $ 0.33 $ 0.33 $ 0.33 $ 1.32 Average number of shares of common stock outstanding: Basic 176,737 175,865 175,871 175,936 176,101 Diluted 176,784 175,865 175,993 176,137 176,101 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 (3) $ 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 (1) For 2016, income from operations reflects non-cash lower of cost or market inventory valuation reductions of $56.1 million and $138.5 million for the first and second quarters, respectively, and a charge of $0.3 million for the third quarter and a reduction of $97.7 million for the fourth quarter. (2) For 2016, income from operations reflects non-cash goodwill and long-lived asset impairment charges of $654.1 million in the second quarter. (3) 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 increases of $225.5 million and $143.6 million for the third and fourth quarters, respectively. |
Description of Business and S48
Description of Business and Summary of Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)Petroleum_Refineriesmi | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Feb. 22, 2016 | |
Schedule of Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | ||||||||||||
General Partners' Contributed Capital | $ 2,100 | $ 500 | ||||||||||
Income tax provision | $ 19,411 | $ 406,060 | $ 141,172 | |||||||||
Effective Income Tax Rate Reconciliation, Percent | (11.30%) | 33.60% | 30.20% | |||||||||
Income (loss) before income taxes | $ 83,416 | $ 109,867 | $ (430,515) | $ 65,698 | $ (64,671) | $ 320,673 | $ 580,177 | $ 372,389 | $ (171,534) | $ 1,208,568 | $ 467,500 | |
Long-term Purchase Commitment, Amount | $ 26,000 | |||||||||||
Proceeds from Inventory Repurchase Agreements | 57,000 | 115,400 | 77,300 | |||||||||
Payments under Inventory Repurchase Agreements | 58,000 | 115,300 | 78,100 | |||||||||
Inventory Valuation Reserves | (332,518) | (624,457) | (332,518) | (624,457) | ||||||||
Goodwill, Impairment Loss | $ (309,300) | |||||||||||
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 | 2,300 | ||||||||||
Asset retirement obligation | $ 22,100 | $ 20,700 | $ 22,100 | 20,700 | ||||||||
Turnaround and Catalyst Amortization Costs | $ 110,600 | $ 107,800 | $ 96,900 | |||||||||
Basis in Transportation Agreements | 36,522,000 | 38,475,000 | 36,522,000 | 38,475,000 | ||||||||
Third Party Transportation Agreement, Amortization Expense | $ 2,000 | |||||||||||
Third Party Transportation Agreement, Accumulated Amortization | $ 23,700 | $ 21,700 | 23,700 | $ 21,700 | ||||||||
Investments in and Advances to Affiliates, Amount of Equity | $ 109,300 | $ 165,600 | $ 109,300 | $ 165,600 | ||||||||
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 | |||||||||||
SLC Pipeline [Member] | ||||||||||||
Schedule of Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | ||||||||||||
Equity Method Investment, Ownership Percentage | 25.00% | 25.00% | ||||||||||
Osage Pipeline [Member] [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% | 50.00% | ||||||||||
HEP | ||||||||||||
Schedule of Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | ||||||||||||
Long-term Purchase Commitment, Amount | $ 56,700 | $ 321,000 | ||||||||||
Percentage of ownership in variable interest entity | 37.00% | 37.00% | ||||||||||
Percentage of ownership interest | 2.00% | 2.00% | ||||||||||
Equity Method Investment, Ownership Percentage | 75.00% | 50.00% | 75.00% | |||||||||
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 | 15 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 | 32 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 |
Acquisition (Details)
Acquisition (Details) $ in Millions | Feb. 01, 2017USD ($) | Sep. 30, 2016bbl |
Business Acquisition [Line Items] | ||
Production barrel capacity per day | bbl | 15,600 | |
Subsequent Event [Member] | ||
Business Acquisition [Line Items] | ||
Acquisition, Cash Consideration Paid | $ 862.1 | |
Acquisition, Cash Consideration Paid Canadian Dollars | $ 1,125 |
Holly Energy Partners (Narrativ
Holly Energy Partners (Narrative) (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Mar. 31, 2014USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($)$ / shares | Mar. 31, 2016USD ($)mi | Jun. 30, 2016USD ($)shares | Sep. 30, 2016USD ($)mi$ / sharessharesbbl | Dec. 31, 2016USD ($)Customersmibbl | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | 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 | $ 0 | ||||||||
Purchase of equity method investment - HEP | 42,627 | 55,032 | ||||||||
Deferred Credits and Other Liabilities, Noncurrent | $ 38,900 | |||||||||
Production barrel capacity per day | bbl | 15,600 | |||||||||
Repayment of term loan | $ 39,500 | 39,500 | 350,000 | 0 | $ 0 | |||||
Loss on early extinguishment of debt | $ 7,700 | (8,718) | (1,370) | (7,677) | ||||||
Long-term Purchase Commitment, Amount | 26,000 | |||||||||
General Partners' Contributed Capital | $ 2,100 | $ 500 | $ 2,100 | |||||||
Net proceeds from common unit offerings - HEP | $ 23,000 | $ 103,000 | $ 125,870 | 0 | 0 | |||||
Limited Partners' Capital Account, Units Issued | shares | 703,455 | |||||||||
Common Unit Issuance Program | $ 200,000 | |||||||||
UNEV Pipeline [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity Method Investment, Ownership Percentage | 75.00% | 75.00% | ||||||||
Frontier Pipeline [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | ||||||||
Length of pipeline | mi | 289 | |||||||||
Production barrel capacity per day | bbl | 72,000 | |||||||||
SLC Pipeline [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity Method Investment, Ownership Percentage | 25.00% | 25.00% | ||||||||
HEP | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Percentage of ownership in variable interest entity | 37.00% | 37.00% | ||||||||
Percentage of general partner interest | 2.00% | 2.00% | ||||||||
Number of significant customers | Customers | 2 | |||||||||
Concentration risk, precentage of total revenues | 83.00% | |||||||||
Payments to Acquire Other Productive Assets | $ 278,000 | |||||||||
Equity Method Investment, Ownership Percentage | 75.00% | 50.00% | 50.00% | 75.00% | ||||||
Payments to Acquire Property, Plant, and Equipment | $ 62,000 | |||||||||
Purchase Obligation Minimum Annualized Payment | 15,100 | |||||||||
Purchase of equity method investment - HEP | 42,627 | $ 55,032 | $ 0 | |||||||
Length of pipeline | mi | 87 | |||||||||
Pipeline Throughput Capacity | bbl | 80,000 | |||||||||
Extinguishment of Debt, Amount | 30,800 | |||||||||
Loss on early extinguishment of debt | $ 8,700 | |||||||||
Long-term Purchase Commitment, Amount | $ 56,700 | 321,000 | ||||||||
Partners' Capital Account, Units, Sold in Private Placement | shares | 3,420,000 | |||||||||
Shares Issued, Price Per Share | $ / shares | $ 30.18 | $ 30.18 | ||||||||
Net proceeds from common unit offerings - HEP | $ 125,870 | |||||||||
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, 2016 | Dec. 31, 2015 |
Carrying Value [Member] | ||
Debt Instrument [Line Items] | ||
Financial Instruments Assets | $ 444,707 | $ 184,889 |
Financial Instruments Liabilities | 43,655 | 99,044 |
Level 1 | ||
Debt Instrument [Line Items] | ||
Financial Instruments Assets | 0 | 3,469 |
Financial Instruments Liabilities | 1,975 | |
Level 2 | ||
Debt Instrument [Line Items] | ||
Financial Instruments Assets | 444,502 | 181,420 |
Financial Instruments Liabilities | 38,921 | 99,044 |
Level 3 | ||
Debt Instrument [Line Items] | ||
Financial Instruments Assets | 205 | |
Financial Instruments Liabilities | 2,759 | |
Marketable securities [Member] | Carrying Value [Member] | ||
Debt Instrument [Line Items] | ||
Financial Instruments Assets | 424,148 | 144,019 |
Marketable securities [Member] | Level 2 | ||
Debt Instrument [Line Items] | ||
Financial Instruments Assets | 424,148 | 144,019 |
Commodity Contract [Member] | Carrying Value [Member] | ||
Debt Instrument [Line Items] | ||
Financial Instruments Assets | 14,563 | 37,097 |
Financial Instruments Liabilities | 26,845 | 98,930 |
Commodity Contract [Member] | Level 2 | ||
Debt Instrument [Line Items] | ||
Financial Instruments Assets | 14,358 | 37,097 |
Financial Instruments Liabilities | 24,086 | 98,930 |
Commodity Contract [Member] | Level 3 | ||
Debt Instrument [Line Items] | ||
Financial Instruments Assets | 205 | |
Financial Instruments Liabilities | 2,759 | |
Forward Contracts [Member] | Carrying Value [Member] | ||
Debt Instrument [Line Items] | ||
Financial Instruments Assets | 5,905 | |
Financial Instruments Liabilities | 8,316 | |
Forward Contracts [Member] | Level 2 | ||
Debt Instrument [Line Items] | ||
Financial Instruments Assets | 5,905 | |
Financial Instruments Liabilities | 8,316 | |
Interest rate swap | Carrying Value [Member] | HEP | ||
Debt Instrument [Line Items] | ||
Financial Instruments Assets | 91 | 304 |
Financial Instruments Liabilities | 114 | |
Interest rate swap | Level 2 | HEP | ||
Debt Instrument [Line Items] | ||
Financial Instruments Assets | 91 | 304 |
Financial Instruments Liabilities | 114 | |
NYMEX futures contracts | ||
Debt Instrument [Line Items] | ||
Financial Instruments Liabilities | 1,975 | |
NYMEX futures contracts | Carrying Value [Member] | ||
Debt Instrument [Line Items] | ||
Financial Instruments Assets | 3,469 | |
NYMEX futures contracts | Level 1 | ||
Debt Instrument [Line Items] | ||
Financial Instruments Assets | 3,469 | |
Financial Instruments Liabilities | 1,975 | |
NYMEX futures contracts | Level 2 | ||
Debt Instrument [Line Items] | ||
Financial Instruments Assets | $ 0 | |
Financial Instruments Liabilities | 0 | |
Foreign Exchange Forward [Member] | Carrying Value [Member] | ||
Debt Instrument [Line Items] | ||
Financial Instruments Liabilities | 6,519 | |
Foreign Exchange Forward [Member] | Level 2 | ||
Debt Instrument [Line Items] | ||
Financial Instruments Liabilities | $ 6,519 |
Financial Instruments (Changes
Financial Instruments (Changes in Level 3 Inputs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fair Value, Concentration of Risk, Derivative Instruments, Assets | $ 300 | ||
Level 3 liability balance | 2,554 | $ 0 | $ 0 |
Change in fair value, recognized in earnings | |||
Change in fair value, recognized in other comprehensive income | (1,460) | 3,852 | |
Fair Value, Inputs, Level 3 [Member] | Cost of products sold | |||
Change in fair value, recognized in earnings | |||
Change in fair value recognized in earnings | (1,094) | 0 | |
Fair Value, Inputs, Level 3 [Member] | Sales [Member] | |||
Change in fair value, recognized in earnings | |||
Settlement date fair value, recognized in earnings | 0 | $ (3,852) | |
Osage Pipeline [Member] [Member] | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | $ 44,400 |
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, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||||||||||
Net Income (loss) attributable to HollyFrontier stockholders | $ 53,165 | $ 74,497 | $ (409,368) | $ 21,253 | $ (43,921) | $ 196,322 | $ 360,824 | $ 226,876 | $ (260,453) | $ 740,101 | $ 281,292 |
Participating securities share in earnings | 1,003 | 2,306 | 820 | ||||||||
Net income (loss) attributable to common shares | $ (261,456) | $ 737,795 | $ 280,472 | ||||||||
Average number of shares of common stock outstanding | 175,936 | 175,871 | 175,865 | 176,737 | 181,460 | 187,208 | 191,355 | 195,069 | 176,101 | 188,731 | 197,243 |
Effect of dilutive variable restricted shares and performance share units | 0 | 209 | 185 | ||||||||
Average number of shares of common stock outstanding assuming dilution | 176,137 | 175,993 | 175,865 | 176,784 | 181,460 | 187,344 | 191,454 | 195,121 | 176,101 | 188,940 | 197,428 |
Basic earnings (loss) per share | $ 0.30 | $ 0.42 | $ (2.33) | $ 0.12 | $ (0.24) | $ 1.05 | $ 1.88 | $ 1.16 | $ (1.48) | $ 3.91 | $ 1.42 |
Diluted earnings (loss) per share | $ 0.30 | $ 0.42 | $ (2.33) | $ 0.12 | $ (0.24) | $ 1.04 | $ 1.88 | $ 1.16 | $ (1.48) | $ 3.90 | $ 1.42 |
Excludes anti-dilutive restricted and performance share units | 469 | 89 | 356 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2016USD ($)plan$ / sharesshares | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($)$ / 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 | $ 22.8 | $ 26.9 | $ 26.1 | |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting (transfer/conversion to common stock) | shares | 409,016 | |||
Grant date fair value of restricted stock vested | $ 18.4 | $ 14.2 | $ 18.2 | |
Total unrecognized compensation cost related to non-vested grants | $ 24.2 | $ 24.2 | ||
Weighted Average Grant Date Fair Value, Non-vested shares | $ / shares | $ 28.87 | $ 28.87 | $ 47.50 | |
Weighted average grant date fair value | $ / shares | $ 45.09 | |||
Total unrecognized compensation cost, weighted-average period of recognition, years | 2 years 6 months | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant date fair value | $ / shares | $ 49.92 | $ 42.03 | ||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting (transfer/conversion to common stock) | shares | 161,610 | |||
Grant date fair value of restricted stock vested | $ 10.4 | $ 14.3 | ||
Total unrecognized compensation cost related to non-vested grants | $ 14.5 | $ 14.5 | ||
Weighted Average Grant Date Fair Value, Non-vested shares | $ / shares | $ 33.79 | $ 33.79 | ||
Total unrecognized compensation cost, weighted-average period of recognition, years | 2 years 4 months | |||
Percentage of share units awarded that will ultimately be issued, current estimate | 67.00% | |||
Common stock issued, shares | shares | 76,404 | |||
Performance share units, vested in period, percentage payout | 47.00% | |||
Common stock issued, fair value | $ 7.4 | |||
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 | $ 2.7 | $ 3.5 | $ 3.5 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary Of Restricted Stock Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Restricted Stock, Nonvested [Roll Forward] | |||
Outstanding at January 1, 2016 (non-vested) | 722,525 | ||
Granted | 894,879 | ||
Vesting and transfer of ownership to recipients | (409,016) | ||
Forfeited | (19,614) | ||
Outstanding at December 31, 2016 (non-vested) | 1,188,774 | 722,525 | |
Outstanding at January 1, 2016 (non-vested), Weighted Average Grant Date Fair Value | $ 47.50 | ||
Granted, Weighted Average Grant Date Fair Value | 21.66 | ||
Vesting and transfer of ownership to recipients, Weighted Average Grant Date Fair Value | 45.09 | ||
Forfeited, Weighted Average Grant Date Fair Value | 48.02 | ||
Outstanding at December 31, 2016 (non-vested), Weighted Average Grant Date Fair Value | $ 28.87 | $ 47.50 | |
Outstanding at December 31, 2016 (non-vested), Aggregate Intrinsic Value | $ 37,426 | ||
Grant date fair value of restricted stock vested | $ 18,400 | $ 14,200 | $ 18,200 |
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 | $ 49.92 | $ 42.03 |
Stock-Based Compensation (Sum56
Stock-Based Compensation (Summary Of Performance Share Unit Activity) (Details) - Performance Shares [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | $ 7.4 | ||
Fair Value of performance shares vested | $ 10.4 | $ 14.3 | |
Share-based Compensation Arrangement by Share-based Payment Award, Performance Share Units, Nonvested [Roll Forward] | |||
Outstanding at January 1, 2016 (non-vested) | 637,938 | ||
Granted | 376,275 | ||
Vesting and transfer of ownership to recipients | (161,610) | ||
Forfeited | (148,664) | ||
Outstanding at December 31, 2016 (non-vested) | 703,939 | 637,938 |
Cash and Cash Equivalents and57
Cash and Cash Equivalents and Investments in Marketable Securities (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Interest income | $ 2,491 | $ 3,391 | $ 4,430 |
Available-for-sale Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Interest income | $ 800 | $ 1,900 | $ 2,200 |
Cash and Cash Equivalents and58
Cash and Cash Equivalents and Investments in Marketable Securities (Available-For-Sale Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable securities, Amortized Cost | $ 424,150 | $ 144,122 |
Available-for-sale Securities, Gross Unrealized Gain | 2 | 7 |
Available-for-sale Securities, Gross Unrealized Loss | (4) | (110) |
Marketable securities, Fair Value (Net Carrying Amount) | 424,148 | 144,019 |
State and political subdivisions debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable securities, Amortized Cost | 412,462 | 88,935 |
Available-for-sale Securities, Gross Unrealized Gain | 1 | 6 |
Available-for-sale Securities, Gross Unrealized Loss | (3) | (67) |
Marketable securities, Fair Value (Net Carrying Amount) | 412,460 | 88,874 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable securities, Amortized Cost | 4,001 | 32,311 |
Available-for-sale Securities, Gross Unrealized Gain | 0 | 0 |
Available-for-sale Securities, Gross Unrealized Loss | 0 | (41) |
Marketable securities, Fair Value (Net Carrying Amount) | 4,001 | 32,270 |
Commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable securities, Amortized Cost | 7,687 | 22,876 |
Available-for-sale Securities, Gross Unrealized Gain | 1 | 1 |
Available-for-sale Securities, Gross Unrealized Loss | (1) | (2) |
Marketable securities, Fair Value (Net Carrying Amount) | $ 7,687 | $ 22,875 |
Inventories (Inventory Componen
Inventories (Inventory Components) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Inventory, Net [Abstract] | |||
Crude oil | $ 549,886 | $ 518,922 | |
Other raw materials and unfinished products | [1] | 287,561 | 214,832 |
Finished products | [2] | 465,432 | 603,568 |
Lower of cost or market reserve | (332,518) | (624,457) | |
Process chemicals | [3] | 2,767 | 4,477 |
Repairs and maintenance supplies and other (4) | 162,548 | 124,527 | |
Total inventory | $ 1,135,676 | $ 841,869 | |
[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, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Inventory, Net [Abstract] | |||||||||||
Inventory Valuation Reserves | $ (332,518) | $ (624,457) | $ (332,518) | $ (624,457) | |||||||
Lower of cost or market inventory valuation adjustment | $ 97,700 | $ 300 | $ 138,500 | $ 56,100 | $ 143,600 | $ 225,500 | $ 135,500 | $ 6,500 | $ (291,938) | $ 226,979 | $ 397,478 |
Properties, Plants and Equipm61
Properties, Plants and Equipment (Components Of Property, Plants And Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Properties, plants and equipment, at cost | $ 5,546,856 | $ 5,490,189 |
Accumulated depreciation | (1,538,408) | (1,374,527) |
Properties, plants and equipment, net | 4,008,448 | 4,115,662 |
Land, buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants and equipment, at cost | 326,097 | 305,712 |
Refining facilities | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants and equipment, at cost | 3,382,369 | 2,833,125 |
Pipelines and terminals | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants and equipment, at cost | 1,392,898 | 1,321,398 |
Transportation vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants and equipment, at cost | 18,841 | 21,289 |
Other fixed assets | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants and equipment, at cost | 153,463 | 158,401 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Properties, plants and equipment, at cost | $ 273,188 | $ 850,264 |
Properties, Plants and Equipm62
Properties, Plants and Equipment (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Impairment of Long-Lived Assets Held-for-use | $ 344,800,000 | $ 0 | $ 0 |
Capitalized interest | 8,000,000 | 5,500,000 | 11,800,000 |
Depreciation expense | 247,900,000 | 233,300,000 | 261,800,000 |
HEP | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | 62,700,000 | $ 58,700,000 | $ 58,100,000 |
Refining facilities | |||
Property, Plant and Equipment [Line Items] | |||
Impairment of Long-Lived Assets Held-for-use | $ 0 |
Goodwill (Schedule Of Changes B
Goodwill (Schedule Of Changes By Segment To The Carrying Amount Of Goodwill) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jul. 01, 2016 | |
Goodwill [Line Items] | ||||
Impairment of Long-Lived Assets Held-for-use | $ 344,800,000 | $ 0 | $ 0 | |
Goodwill, Impairment Loss | (309,300,000) | |||
Goodwill, Gross | $ 2,000,000,000 | |||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 20.00% | 4.00% | ||
Refining Segment | ||||
Goodwill [Line Items] | ||||
Goodwill, Gross | $ 1,700,000,000 | |||
HEP | ||||
Goodwill [Line Items] | ||||
Goodwill, Gross | $ 300,000,000 |
Environmental (Details)
Environmental (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Loss Contingencies [Line Items] | |||
Environmental remediation costs | $ 6.6 | $ 14.7 | $ 28.5 |
Accrued environmental liability | 96.4 | 98.1 | |
Other Noncurrent Liabilities [Member] | |||
Loss Contingencies [Line Items] | |||
Accrued environmental liability | $ 82.9 | $ 83.5 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | Apr. 29, 2016 | Mar. 31, 2014 | Mar. 31, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Jun. 30, 2014 |
Debt Instrument [Line Items] | ||||||||||||
Maximum borrowing capacity under revolving credit agreement | $ 1,000,000,000 | |||||||||||
Proceeds from Lines of Credit | 315,000,000 | |||||||||||
Repayments of Lines of Credit | (315,000,000) | |||||||||||
Letters of Credit Outstanding, Amount | $ 4,400,000 | |||||||||||
Effective interest rate on debt | 0.00% | 2.572% | ||||||||||
Long-term debt | $ 2,235,137,000 | $ 1,040,040,000 | ||||||||||
Gains (Losses) on Extinguishment of Debt | $ (7,700,000) | 8,718,000 | 1,370,000 | $ 7,677,000 | ||||||||
Repayment of term loan | $ 39,500,000 | $ 39,500,000 | $ 350,000,000 | 0 | $ 0 | |||||||
Proceeds from Loans | $ 350,000,000 | |||||||||||
Debt Instrument, Maturity Date | Apr. 1, 2026 | |||||||||||
Plains [Member] | Lease [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Gains (Losses) on Extinguishment of Debt | $ (8,700,000) | |||||||||||
Proceeds from Sale of Machinery and Equipment | 40,000,000 | |||||||||||
HEP | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Proceeds from Lines of Credit | $ 554,000,000 | |||||||||||
Repayments of Lines of Credit | (713,000,000) | |||||||||||
Borrowings outstanding under revolving credit agreement | $ 1,200,000,000 | $ 1,200,000,000 | 553,000,000 | 712,000,000 | ||||||||
Senior notes | 723,750,000 | 295,500,000 | ||||||||||
Gains (Losses) on Extinguishment of Debt | (8,700,000) | |||||||||||
Extinguishment of Debt, Amount | $ 30,800,000 | |||||||||||
Nine Point Eight Seven Five Percentage Senior Notes Due Two Thousand Seventeen Member | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Stated interest rate, senior notes | 9.875% | |||||||||||
Letter of Credit [Member] | HEP | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum borrowing capacity under revolving credit agreement | 50,000,000 | |||||||||||
Five Point Eight Seven Five Percentage Senior Notes Due Two Thousand Twenty-Six [Member] [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Stated interest rate, senior notes | 5.875% | |||||||||||
Senior notes | $ 1,022,500,000 | |||||||||||
6.875% Senior Notes Due 2018 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Stated interest rate, senior notes | 6.875% | 6.875% | ||||||||||
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 | |||||||||||
Other Debt Obligations [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Maturity Date | Apr. 1, 2019 | |||||||||||
8.25% Senior Notes Due 2018 | HEP | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Stated interest rate, senior notes | 8.25% | 8.25% | ||||||||||
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 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Stated interest rate, senior notes | 6.50% | |||||||||||
6.5% Senior Notes Due 2020 | HEP | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Stated interest rate, senior notes | 6.50% | |||||||||||
Long-term debt | $ 297,519,000 | $ 296,752,000 | ||||||||||
Debt Instrument, Maturity Date | Mar. 1, 2020 | |||||||||||
Six Percent Senior Notes Due Two Thousand Twenty Four [Member] [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Stated interest rate, senior notes | 6.00% | |||||||||||
Six Percent Senior Notes Due Two Thousand Twenty Four [Member] [Member] | HEP | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Stated interest rate, senior notes | 6.00% | |||||||||||
Subsequent Event [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum borrowing capacity under revolving credit agreement | $ 1,350,000,000 | |||||||||||
Subsequent Event [Member] | 6.5% Senior Notes Due 2020 | HEP | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Gains (Losses) on Extinguishment of Debt | (12,200,000) | |||||||||||
Senior Notes | 300,000,000 | |||||||||||
Extinguishment of Debt, Amount | $ 316,400,000 |
Debt (Carrying Amounts Of Long-
Debt (Carrying Amounts Of Long-Term Debt) (Details) - USD ($) | Dec. 31, 2016 | Nov. 30, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 |
Debt Instrument [Line Items] | |||||||
Long-term Debt, Excluding Current Maturities | $ 2,235,137,000 | $ 1,040,040,000 | |||||
Total | 2,253,000,000 | ||||||
Long-term Debt and Capital Lease Obligations | 2,235,137,000 | 1,040,040,000 | |||||
HEP | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings outstanding under revolving credit agreement | 553,000,000 | $ 1,200,000,000 | 712,000,000 | ||||
Long-term Debt and Capital Lease Obligations | 1,243,912,000 | 1,008,752,000 | |||||
Five Point Eight Seven Five Percentage Senior Notes Due Two Thousand Twenty-Six [Member] [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.875% | ||||||
Senior Notes, Noncurrent | 1,000,000,000 | $ 750,000,000 | $ 250,000,000 | ||||
Debt Instrument, Unamortized Discount | (8,775,000) | ||||||
Total | $ 991,225,000 | ||||||
6.875% Senior Notes Due 2018 | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.875% | 6.875% | |||||
Senior Notes, Noncurrent | $ 150,000,000 | ||||||
Holly Financing Obligation | |||||||
Debt Instrument [Line Items] | |||||||
Capital Lease Obligations | $ 0 | 31,288,000 | |||||
Long-term Debt and Capital Lease Obligations | $ 991,225,000 | 31,288,000 | |||||
Six Percent Senior Notes Due Two Thousand Twenty Four [Member] [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | ||||||
Six Percent Senior Notes Due Two Thousand Twenty Four [Member] [Member] | HEP | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | ||||||
Senior Notes, Noncurrent | $ 400,000,000 | $ 400,000,000 | |||||
Debt Instrument, Unamortized Discount | (6,607,000) | ||||||
Total | $ 393,393,000 | ||||||
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 | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | ||||||
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 | $ 297,519,000 | 296,752,000 | |||||
Senior Notes, Noncurrent | 300,000,000 | 300,000,000 | |||||
Debt Instrument, Unamortized Discount | $ (2,481,000) | $ (3,248,000) |
Debt (Principal Maturities Of L
Debt (Principal Maturities Of Long-Term Debt) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
Next Twelve Months | $ 0 |
Year Two | 553,000 |
Year Three | 0 |
Year Four | 300,000 |
Year Five | 0 |
Thereafter | 1,400,000 |
Total | $ 2,253,000 |
Derivative Instruments and He68
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Trading Activity, Gains and Losses, Net [Line Items] | |||
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | $ 25,139 | $ (52,495) | $ 55,714 |
Change in Fair Value | (17,018) | (3,983) | 107,518 |
Gain (Loss) Reclassified to Earnings due to Settlements | 41,077 | (49,592) | (52,884) |
Amortization of discontinued hedges reclassified to earnings | 1,080 | 1,080 | 1,080 |
Gain (Loss) recognized in earnings due to settlements | (42,157) | 48,512 | 51,804 |
Derivative, Net Hedge Ineffectiveness Gain (Loss) | 0 | 4,649 | (4,650) |
Sales [Member] | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Gain (Loss) recognized in earnings due to settlements | (20,293) | 245,819 | 88,326 |
Derivative, Net Hedge Ineffectiveness Gain (Loss) | (274) | 274 | |
Cost of products sold | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Gain (Loss) recognized in earnings due to settlements | (179,700) | (37,313) | |
Derivative, Net Hedge Ineffectiveness Gain (Loss) | 4,376 | (4,377) | |
Operating expenses | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Gain (Loss) recognized in earnings due to settlements | (21,864) | (17,607) | 791 |
Derivative, Net Hedge Ineffectiveness Gain (Loss) | $ 0 | $ 547 | $ (547) |
Derivative Instruments and He69
Derivative Instruments and Hedging Activities Notional Contracts by Derivative Type (Details) | 3 Months Ended |
Dec. 31, 2016MMBTUbbl | |
Crude Oil [Member] | Economic Hedges [Member] | |
economic hedges by derivative type [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | 3,645,000 |
Produced Gasoline Member | Price Risk Derivative [Member] | |
economic hedges by derivative type [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | 175,000 |
Commodity Contract [Member] | Economic Hedges [Member] | |
economic hedges by derivative type [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | 310,000 |
Natural Gas - Short [Member] | Economic Hedges [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 | 9,600,000 |
Natural Gas - long [Member] | Economic Hedges [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 | 755,000 |
Natural Gas [Member] | Economic Hedges [Member] | |
economic hedges by derivative type [Line Items] | |
Derivative, Nonmonetary Notional Amount, Energy Measure | MMBTU | 10,308,000 |
Physical Contracts - Long [Member] | Price Risk Derivative [Member] | |
economic hedges by derivative type [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | 150,000 |
WTI Crude Oil [Member] | Price Risk Derivative [Member] | |
economic hedges by derivative type [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | 519,000 |
Ultra Low Sulfur Diesel Member | Price Risk Derivative [Member] | |
economic hedges by derivative type [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | 519,000 |
Forward Contracts [Member] | Economic Hedges [Member] | |
economic hedges by derivative type [Line Items] | |
Derivative, Nonmonetary Notional Amount, Volume | 1,225,000 |
Derivative Instruments and He70
Derivative Instruments and Hedging Activities Location of Gain Loss in Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Economic Hedges, Gain (Loss) | $ (6,133) | $ 36,079 | $ 68,324 |
Cost of products sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Economic Hedges, Gain (Loss) | (6,889) | 48,082 | 68,509 |
Operating expenses | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Economic Hedges, Gain (Loss) | 7,276 | (12,003) | (185) |
Other Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Economic Hedges, Gain (Loss) | $ (6,520) | $ 0 | $ 0 |
Derivative Instruments and He71
Derivative Instruments and Hedging Activities Interest Rate Swaps (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | |||
Change in Fair Value | $ 17,018 | $ 3,983 | $ (107,518) |
Gain (Loss) Reclassified to Earnings due to Settlements | (41,077) | 49,592 | 52,884 |
Gain (Loss) recognized in earnings due to settlements | (42,157) | 48,512 | 51,804 |
HEP | |||
Derivative [Line Items] | |||
Change in Fair Value | (607) | (1,864) | (2,104) |
Gain (Loss) Reclassified to Earnings due to Settlements | 508 | 2,100 | 2,202 |
Pretax effect on accumulated other comprehensive income and earnings | (99) | 236 | 98 |
Sales Revenue, Services, Net [Member] | HEP | |||
Derivative [Line Items] | |||
Gain (Loss) recognized in earnings due to settlements | $ (508) | $ (2,100) | $ (2,202) |
Derivative Instruments and He72
Derivative Instruments and Hedging Activities (Summary Of Balance Sheet Locations And Related Fair Values Of Outstanding Derivative Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | $ 9,484 | $ 3,773 |
Derivative Liability, Fair Value, Net Liability | 32,580 | 61,947 |
Prepayments and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | 9,484 | 3,469 |
Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Net Liability | 32,580 | 36,976 |
Other Intangible Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | 304 | |
Other Long Term Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Net Liability | 24,971 | |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 91 | 304 |
Derivative Asset, Fair Value, Gross Liability | 0 | 0 |
Derivative, Fair Value, Net | 91 | 304 |
Derivative Liability, Fair Value, Gross Liability | 16,163 | 38,869 |
Derivative Liability, Fair Value, Gross Asset | (431) | 0 |
Derivative Liability, Fair Value, Net Liability | 15,732 | 38,869 |
Designated as Hedging Instrument [Member] | Commodity Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 13,185 | 38,755 |
Derivative Liability, Fair Value, Gross Asset | (431) | 0 |
Derivative Liability, Fair Value, Net Liability | 12,754 | 38,755 |
Designated as Hedging Instrument [Member] | Forward Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 2,978 | |
Derivative Liability, Fair Value, Gross Asset | 0 | |
Derivative Liability, Fair Value, Net Liability | 2,978 | |
Designated as Hedging Instrument [Member] | Interest rate swap | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 91 | 304 |
Derivative Asset, Fair Value, Gross Liability | 0 | 0 |
Derivative, Fair Value, Net | 91 | 304 |
Derivative Liability, Fair Value, Gross Liability | 114 | |
Derivative Liability, Fair Value, Gross Asset | 0 | |
Derivative Liability, Fair Value, Net Liability | 114 | |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 10,149 | 3,469 |
Derivative Asset, Fair Value, Gross Liability | (756) | 0 |
Derivative, Fair Value, Net | 9,393 | 3,469 |
Derivative Liability, Fair Value, Gross Liability | 26,735 | 60,196 |
Derivative Liability, Fair Value, Gross Asset | (9,887) | (37,118) |
Derivative Liability, Fair Value, Net Liability | 16,848 | 23,078 |
Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 4,244 | |
Derivative Asset, Fair Value, Gross Liability | (756) | |
Derivative, Fair Value, Net | 3,488 | |
Derivative Liability, Fair Value, Gross Liability | 12,903 | 60,196 |
Derivative Liability, Fair Value, Gross Asset | (9,887) | (37,118) |
Derivative Liability, Fair Value, Net Liability | 3,016 | 23,078 |
Not Designated as Hedging Instrument [Member] | Forward Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 5,905 | |
Derivative Asset, Fair Value, Gross Liability | 0 | |
Derivative, Fair Value, Net | 5,905 | |
Derivative Liability, Fair Value, Gross Liability | 5,338 | |
Derivative Liability, Fair Value, Gross Asset | 0 | |
Derivative Liability, Fair Value, Net Liability | 5,338 | |
Not Designated as Hedging Instrument [Member] | Nymex Futures Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 3,469 | |
Derivative Asset, Fair Value, Gross Liability | 0 | |
Derivative, Fair Value, Net | $ 3,469 | |
Derivative Liability, Fair Value, Gross Liability | 1,975 | |
Derivative Liability, Fair Value, Gross Asset | 0 | |
Derivative Liability, Fair Value, Net Liability | 1,975 | |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 6,519 | |
Derivative Liability, Fair Value, Gross Asset | 0 | |
Derivative Liability, Fair Value, Net Liability | $ 6,519 |
Derivative Instruments and He73
Derivative Instruments and Hedging Activities (Narrative) (Details) $ in Millions | Feb. 01, 2017USD ($) | Dec. 31, 2016USD ($)Interest_Rate_Swaps | Dec. 31, 2016USD ($)Interest_Rate_Swaps | Dec. 31, 2015 |
Derivative [Line Items] | ||||
Unrealized Gain (Loss) on Price Risk Cash Flow Derivatives, before Tax | $ (15.8) | |||
Derivative, Forward Exchange Rate | 0.0133 | 0.0133 | ||
Effective interest rate on debt | 0.00% | 0.00% | 2.572% | |
Unrealized loss in other comprehensive income on accounting hedges | $ (1.1) | $ (1.1) | ||
Current Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Number of derivative instruments | Interest_Rate_Swaps | 2 | 2 | ||
HEP | Interest Rate Contract [Member] | ||||
Derivative [Line Items] | ||||
Credit agreement advance | $ 150 | $ 150 | ||
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] | ||||
Rate added to fixed base rate | 2.25% | |||
Subsequent Event [Member] | ||||
Derivative [Line Items] | ||||
Acquisition, Cash Consideration Paid Canadian Dollars | $ 1,125 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | |||
Federal Income Tax Carry Back to Prior Years | $ 199,000 | ||
Operating Loss Carryforwards | 11,000 | ||
Tax Credit Carryforward, Amount | 3,000 | ||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | $ 22,137 | $ 0 | $ 0 |
Tax Year 2011 [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Income Tax Examination, Year under Examination | 2,011 | ||
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Federal, Current | $ (71,878) | $ 480,446 | $ 294,509 |
State, Current | (7,304) | 71,750 | 40,325 |
Federal, Deferred | 100,208 | (127,714) | (168,756) |
State, Deferred | (1,615) | (18,422) | (24,906) |
Income tax provision total | $ 19,411 | $ 406,060 | $ 141,172 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Effective Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Tax computed at statutory rate | $ (60,037) | $ 422,999 | $ 163,625 |
State income taxes, net of federal tax benefit | (14,056) | 40,385 | 13,641 |
Domestic production activities deduction | 4,170 | (35,200) | (20,998) |
Noncontrolling interest in net income | (26,903) | (24,155) | (17,431) |
Goodwill | 119,722 | ||
Other | (3,485) | 2,031 | 2,335 |
Income tax provision total | $ 19,411 | $ 406,060 | $ 141,172 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Deferred tax assets, noncurrent | $ 21,815 | |
Deferred tax assets, gross | $ 117,249 | 281,852 |
Deferred tax liabilities, gross | (737,663) | (779,758) |
Deferred taxes, net | 620,414 | 497,906 |
Property, Plant and Equipment [Member] | ||
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Deferred tax liabilities, noncurrent | (618,053) | (648,542) |
Accrued employee benefits | ||
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Deferred tax assets, noncurrent | 21,355 | 22,355 |
Postretirement Benefit Costs [Member] | ||
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Deferred tax assets, noncurrent | 10,024 | 11,518 |
Deferred Tax Liability Derivatives [Member] | ||
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Deferred tax assets, noncurrent | 21,815 | |
Reserve for Environmental Costs [Member] | ||
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Deferred tax assets, noncurrent | 41,152 | 42,517 |
Deferred Tax Asset, Derivatives [Domain] | ||
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Deferred tax assets, noncurrent | 7,396 | |
Inventory Valuation Reserve [Member] | ||
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Deferred tax assets, noncurrent | 175,614 | |
Deferred tax liabilities, noncurrent | (8,341) | |
Deferred turnaround costs | ||
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Deferred tax liabilities, noncurrent | (83,993) | (104,944) |
Net operating loss and tax credit carryforward [Member] | ||
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Deferred tax assets, noncurrent | 23,203 | 8,033 |
HEP | ||
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Deferred tax liabilities, noncurrent | (27,276) | (23,429) |
Other | ||
Deferred Income Taxes Assets Liabilities [Line Items] | ||
Deferred tax assets, noncurrent | $ 14,119 | 0 |
Deferred tax liabilities, noncurrent | $ (2,843) |
Income Taxes (Reconciliation 78
Income Taxes (Reconciliation Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ||||
Unrecognized Tax Benefits | $ 22,137 | $ 0 | $ 0 | $ 9,006 |
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 22,137 | 0 | 0 | |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | $ 0 | $ 0 | $ (9,006) |
Stockholders' Equity (Changes T
Stockholders' Equity (Changes To Equity) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Increase (Decrease) in Common Shares Outstanding [Roll Forward] | ||||
Common shares outstanding at January 1 | 180,234,388 | 196,086,090 | 198,830,351 | |
Issuance of restricted stock, excluding restricted stock with performance feature | 870,378 | 447,534 | 376,622 | |
Vesting of performance units | 76,404 | 136,896 | 416,111 | |
Vesting of restricted stock with performance feature | 40,294 | 43,774 | 77,430 | |
Forfeitures of restricted stock | (16,795) | (51,332) | (76,107) | |
Purchase of treasury stock | [1] | (3,859,403) | (16,428,574) | (3,538,317) |
Common shares outstanding at December 31 | 177,345,266 | 180,234,388 | 196,086,090 | |
Shares withheld for the payment of taxes | 147,922 | 151,967 | 279,680 | |
Authorized share repurchase | $ 1,000 | |||
Stock repurchase program, value | 178.8 | |||
Value of shares withheld related to tax withholding for share-based compensation | $ 4.7 | $ 6.2 | $ 11.4 | |
[1] | Includes 147,922, 151,967 and 279,680 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 (L80
Other Comprehensive Income (Loss) (Components And Allocated Tax Effects Of Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Comprehensive Income (Loss), before Tax [Abstract] | |||
Net unrealized gain (loss) on marketable securities, before tax | $ 104 | $ 38 | $ (157) |
Net Unrealized gain (loss) on available-for-sale securities, tax expense (benefit) | 40 | 14 | (62) |
Net unrealized gain (loss) on available-for-sale securities, after-tax | 64 | 24 | (95) |
Net Unrealized Gain (Loss) on Hedging Activities, Before-Tax | 25,040 | (52,259) | 55,812 |
Net Unrealized Gain (Loss) on Hedging Activities, Tax | 9,713 | (20,282) | 21,583 |
Net Unrealized Gain (Loss) on Hedging Activities, Net of Tax | 15,327 | (31,977) | 34,229 |
Net change in other post-retirement benefit obligations, before tax | (1,113) | 79 | (11,425) |
Net change in other post-retirement benefit obligations, tax | (431) | 31 | (4,423) |
Net change in other post-retirement benefit obligations, after tax | (682) | 48 | (7,002) |
Other comprehensive income (loss) before income taxes | 24,031 | (52,142) | 44,230 |
Other comprehensive income (loss), Tax Expense (Benefit) | 9,322 | (20,237) | 17,098 |
Other comprehensive income (loss) | 14,709 | (31,905) | 27,132 |
Less other comprehensive income (loss) attributable to noncontrolling interest, Before-Tax | (58) | 144 | 60 |
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 | (58) | 144 | 60 |
Other comprehensive income (loss) attributable to HollyFrontier stockholders, Before-Tax | 24,089 | (52,286) | 44,170 |
Other comprehensive income (loss) attributable to HollyFrontier stockholders, Tax Expense (Benefit) | 9,322 | (20,237) | 17,098 |
Other comprehensive income (loss) attributable to HollyFrontier stockholders, After-Tax | $ 14,767 | $ (32,049) | $ 27,072 |
Other Comprehensive Income (L81
Other Comprehensive Income (Loss) (Accumulated Other Comprehensive Loss In Equity) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Other Comprehensive Income (Loss), before Tax [Abstract] | ||
Unrealized gain on post-retirement benefit obligations | $ 20,055 | $ 20,737 |
Unrealized gain (loss) on marketable securities | 3 | (61) |
Unrealized gain (loss) on hedging instruments | (9,446) | (24,831) |
Accumulated other comprehensive income (loss) | $ 10,612 | $ (4,155) |
Other Comprehensive Income (L82
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, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Comprehensive Income (Loss) Reclassified to Income Statement [Line Items] | |||||||||||
Income tax expense (benefit) | $ 19,411 | $ 406,060 | $ 141,172 | ||||||||
Net of tax | (190,945) | 802,508 | 326,328 | ||||||||
Sales and other revenues | $ (2,955,068) | $ (2,847,270) | $ (2,714,638) | $ (2,018,724) | $ (2,943,559) | $ (3,585,823) | $ (3,701,912) | $ (3,006,626) | (10,535,700) | (13,237,920) | (19,764,327) |
Operating expenses | (1,018,839) | (1,060,373) | (1,144,940) | ||||||||
General and Administrative Expense | 125,648 | 120,846 | 114,609 | ||||||||
Interest Expense | (72,192) | (43,470) | (43,646) | ||||||||
Noncontrolling interest | (69,508) | (62,407) | (45,036) | ||||||||
Net of tax and noncontrolling interest | $ 53,165 | $ 74,497 | $ (409,368) | $ 21,253 | $ (43,921) | $ 196,322 | $ 360,824 | $ 226,876 | (260,453) | 740,101 | 281,292 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Other Comprehensive Income (Loss) Reclassified to Income Statement [Line Items] | |||||||||||
Reclassifications for the period | (23,847) | 31,235 | 33,296 | ||||||||
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 | (23) | (51) | 4 | ||||||||
Gain on sale of assets | 0 | 42 | 0 | ||||||||
Gain (Loss) on Sale of Securities, Net | (23) | (9) | 4 | ||||||||
Income tax expense (benefit) | (9) | (3) | 2 | ||||||||
Net of tax | (14) | (6) | 2 | ||||||||
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 expense (benefit) | (16,387) | 18,454 | 19,712 | ||||||||
Net of tax | (26,278) | 27,958 | 29,890 | ||||||||
Before tax | (42,665) | 46,412 | 49,602 | ||||||||
Noncontrolling interest | 320 | 1,273 | 1,335 | ||||||||
Net of tax and noncontrolling interest | (25,958) | 29,231 | 31,225 | ||||||||
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] | |||||||||||
Sales and other revenues | (20,293) | 245,819 | 88,326 | ||||||||
Cost of products sold | 0 | (179,700) | (37,313) | ||||||||
Operating expenses | (21,864) | (17,607) | 791 | ||||||||
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 | (508) | (2,100) | (2,202) | ||||||||
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 expense (benefit) | 1,348 | 1,277 | 1,663 | ||||||||
Net of tax | 2,134 | 2,022 | 2,633 | ||||||||
Cost of products sold | 130 | 271 | 482 | ||||||||
Operating expenses | 2,989 | 2,681 | 3,366 | ||||||||
General and Administrative Expense | (363) | (347) | (448) | ||||||||
Before tax | 3,482 | 3,299 | 4,296 | ||||||||
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 expense (benefit) | (6) | (8) | (356) | ||||||||
Net of tax | (9) | (12) | (564) | ||||||||
General and Administrative Expense | $ (15) | $ (20) | $ (920) |
Retirement Plan (Narrative) (De
Retirement Plan (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 17.5 | $ 17.2 | $ 16.1 | |
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Transition Benefit Costs | $ 11 | 10.8 | ||
Defined Benefit Post-retirement Health Coverage [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | 1.8 | |||
Defined Benefit Plan, Expected Future Benefit Payments, Year Two | 1.7 | |||
Defined Benefit Plan, Expected Future Benefit Payments, Year Three | 1.6 | |||
Defined Benefit Plan, Expected Future Benefit Payments, Year Four | 1.6 | |||
Defined Benefit Plan, Expected Future Benefit Payments, Year Five | 1.7 | |||
Defined Benefit Plan, Expected Future Benefit Payments, Five Fiscal Years Thereafter | 8.3 | |||
Retirement Restoration Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension expense | 0.1 | 0.1 | $ 1.2 | |
Accrued liability | 2.7 | $ 2.8 | ||
Projected benefit obligations under this plan | 2.7 | |||
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | $ 0.2 |
Retirement Plan (Changes in Ben
Retirement Plan (Changes in Benefit Obligation and Plan Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension plan's benefit obligation - beginning of year | $ 21,201 | $ 23,633 | |
Service cost | 1,294 | 1,694 | $ 895 |
Interest cost | 787 | 819 | 638 |
Participant contributions | 244 | 593 | |
Amendments | 21 | 0 | |
Benefits paid | (2,171) | (2,260) | |
Actuarial loss (gain) | (2,384) | (3,278) | |
Pension plan's benefit obligation - end of year | 18,992 | 21,201 | 23,633 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets - beginning of year | 0 | 0 | |
Benefits paid | (2,171) | (2,260) | |
Employer contributions | 1,927 | 1,667 | |
Participant contributions | 244 | 593 | |
Fair value of plan assets - end of year | 0 | 0 | $ 0 |
Defined Benefit Plan, Funded Status of Plan | (18,992) | (21,201) | |
Accrued post-retirement plan liability | (18,992) | (21,201) | |
Cumulative actuarial loss | 771 | (1,613) | |
Prior service credit | 32,434 | 35,937 | |
Total | $ 33,205 | $ 34,324 |
Retirement Plan (Weighted Avera
Retirement Plan (Weighted Average Assumptions Used to Determine End of Period Benefit Obligations) (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount Rate | 3.75% | 3.90% | |
Current health care trend rate | 7.00% | 8.00% | |
Ultimate health care trend rate | 5.00% | 5.00% | |
Year rate reaches ultimate trend rate | 2,030 | 2,041 | |
Defined Benefit Post-retirement Health Coverage [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount Rate | 3.90% | 3.60% | 4.25% |
Current health care trend rate | 8.00% | 8.00% | 8.00% |
Ultimate health care trend rate | 5.00% | 5.00% | 5.00% |
Year rate reaches ultimate trend rate | 2,041 | 2,042 | 2,045 |
Retirement Plan (Net Periodic P
Retirement Plan (Net Periodic Pension Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 1,294 | $ 1,694 | $ 895 |
Interest cost on projected benefit obligations | 787 | 819 | 638 |
Amortization of Prior Service Cost (Credit) | (3,482) | (3,482) | (4,296) |
Amortization of net loss | 0 | 183 | 0 |
Net periodic post-retirement credit | $ (1,401) | $ (786) | $ (2,763) |
Retirement Plan (Weighted Ave87
Retirement Plan (Weighted Average Assumptions Used for Health Care Trend Rates) (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount Rate | 3.75% | 3.90% |
Current health care trend rate | 7.00% | 8.00% |
Ultimate health care trend rate | 5.00% | 5.00% |
Year rate reaches ultimate trend rate | 2,030 | 2,041 |
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, 2016USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
One Percent Increase, Service Cost | $ 187 |
One Percentage Point Decrease on Service Cost | (156) |
One Percent Increase, Interest Cost | 56 |
One Percentage Point Decrease, Interest Cost | (49) |
One Percentage Point Increase on Accumulated Post-retirement Benefit Obligation | 1,286 |
One Percentage Point Decrease on Accumulated Post-retirement Benefit Obligation | $ (1,118) |
Lease Commitments (Schedule Of
Lease Commitments (Schedule Of Minimum Future Rental Commitments Under Operating Leases) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Leases, Operating [Abstract] | |
Minimum lease commitments due in twelve months | $ 75,156 |
Minimum lease commitments due in year two | 67,463 |
Minimum lease commitments due in year three | 61,893 |
Minimum lease commitments due in year four | 60,035 |
Minimum lease commitments due in year five | 56,684 |
Thereafter | 172,627 |
Total | $ 493,858 |
Lease Commitments (Narrative) (
Lease Commitments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Leased Assets [Line Items] | |||
Rental expense | $ 93.2 | $ 107.3 | $ 89.8 |
HEP | |||
Operating Leased Assets [Line Items] | |||
Rental expense | $ 8.5 | $ 8.9 | $ 8 |
Contingencies And Contractual91
Contingencies And Contractual Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Transportation and Storage Contracts, Fiscal Year Maturity | |||
Next Twelve Months | $ 136,052 | ||
Year Two | 135,048 | ||
Year Three | 123,105 | ||
Year Four | 110,929 | ||
Year Five | 98,834 | ||
Thereafter | 894,033 | ||
Total | 1,498,001 | ||
Transportation and storage costs | $ 135,100 | $ 137,700 | $ 118,000 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 12 Months Ended | |||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Goodwill, Impairment Loss | $ 309,300,000 | |||
Impairment of Long-Lived Assets Held-for-use | $ 344,800,000 | $ 0 | $ 0 | |
Reportable segments | 2 | |||
Revenue for reportable segment | $ 68,900,000 | $ 66,700,000 | $ 57,300,000 | |
HEP | ||||
Segment Reporting Information [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 75.00% | 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% | |||
Frontier Pipeline [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 50.00% |
Segment Information (Schedule O
Segment Information (Schedule Of Segment Reporting Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Sales and other revenues | $ 2,955,068 | $ 2,847,270 | $ 2,714,638 | $ 2,018,724 | $ 2,943,559 | $ 3,585,823 | $ 3,701,912 | $ 3,006,626 | $ 10,535,700 | $ 13,237,920 | $ 19,764,327 | ||||||||||||
Depreciation and amortization | 363,027 | 346,151 | 363,381 | ||||||||||||||||||||
Income (loss) from operations | 112,292 | [1],[2] | 124,765 | [1],[2] | (420,542) | [1],[2] | 83,598 | [1],[2] | (56,706) | [3] | 322,605 | [3] | 589,832 | [3] | 388,622 | [3] | (99,887) | [1],[2] | 1,244,353 | [3] | 515,534 | ||
Income (Loss) from Equity Method Investments | 14,213 | (3,738) | (2,007) | ||||||||||||||||||||
Income (loss) before income taxes | 83,416 | $ 109,867 | $ (430,515) | $ 65,698 | (64,671) | $ 320,673 | $ 580,177 | $ 372,389 | (171,534) | 1,208,568 | 467,500 | ||||||||||||
Property, Plant and Equipment, Additions | 479,790 | 676,155 | 564,821 | ||||||||||||||||||||
Assets | 9,435,661 | 8,388,299 | 9,435,661 | 8,388,299 | 9,230,047 | ||||||||||||||||||
Refining | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Sales and other revenues | 10,467,190 | [4] | 13,171,183 | 19,706,225 | |||||||||||||||||||
Depreciation and amortization | 282,321 | [4] | 273,345 | 293,508 | |||||||||||||||||||
Income (loss) from operations | (163,624) | [4] | 1,190,578 | 492,853 | |||||||||||||||||||
Income (Loss) from Equity Method Investments | [4] | 0 | 0 | 0 | |||||||||||||||||||
Property, Plant and Equipment, Additions | 363,115 | [4] | 469,011 | 346,605 | |||||||||||||||||||
Assets | 6,513,806 | [4] | 6,597,355 | 6,513,806 | [4] | 6,597,355 | 6,782,091 | ||||||||||||||||
HEP | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Sales and other revenues | 402,043 | 358,875 | [5] | 332,626 | [5] | ||||||||||||||||||
Depreciation and amortization | 68,811 | 61,690 | [5] | 60,911 | [5] | ||||||||||||||||||
Income (loss) from operations | 196,716 | 179,075 | [5] | 154,706 | [5] | ||||||||||||||||||
Income (Loss) from Equity Method Investments | 14,213 | 4,803 | 2,987 | ||||||||||||||||||||
Property, Plant and Equipment, Additions | 107,595 | 193,121 | [5] | 198,686 | [5] | ||||||||||||||||||
Assets | 1,920,487 | 1,812,279 | [5] | 1,920,487 | 1,812,279 | [5] | 1,617,133 | [5] | |||||||||||||||
Corporate and Other | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Sales and other revenues | 168 | 663 | 2,103 | ||||||||||||||||||||
Depreciation and amortization | 12,723 | 11,944 | 9,790 | ||||||||||||||||||||
Income (loss) from operations | (130,565) | (123,004) | (129,874) | ||||||||||||||||||||
Income (Loss) from Equity Method Investments | 0 | (8,541) | (4,994) | ||||||||||||||||||||
Property, Plant and Equipment, Additions | 9,080 | 14,023 | 19,530 | ||||||||||||||||||||
Assets | 1,306,169 | 289,225 | 1,306,169 | 289,225 | 1,150,865 | ||||||||||||||||||
Consolidations and Eliminations | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Sales and other revenues | (333,701) | (292,801) | (276,627) | ||||||||||||||||||||
Depreciation and amortization | (828) | (828) | (828) | ||||||||||||||||||||
Income (loss) from operations | (2,414) | (2,296) | (2,151) | ||||||||||||||||||||
Income (Loss) from Equity Method Investments | 0 | 0 | 0 | ||||||||||||||||||||
Property, Plant and Equipment, Additions | 0 | 0 | 0 | ||||||||||||||||||||
Assets | $ (304,801) | $ (310,560) | $ (304,801) | $ (310,560) | $ (320,042) | ||||||||||||||||||
[1] | For 2016, income from operations reflects non-cash goodwill and long-lived asset impairment charges of $654.1 million in the second quarter. | ||||||||||||||||||||||
[2] | For 2016, income from operations reflects non-cash lower of cost or market inventory valuation reductions of $56.1 million and $138.5 million for the first and second quarters, respectively, and a charge of $0.3 million for the third quarter and a reduction of $97.7 million for the fourth quarter. | ||||||||||||||||||||||
[3] | ) 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 increases of $225.5 million and $143.6 million for the third and fourth quarters, respectively. | ||||||||||||||||||||||
[4] | (1) For the year ended December 31, 2016, we recorded goodwill and long-lived asset impairment charges of $309.3 million and $344.8 million, respectively, that relate to our Cheyenne Refinery, which is included in our Refining segment. | ||||||||||||||||||||||
[5] | (2) HEP acquired the crude oil tanks at our Tulsa Refineries in March 2016 and acquired a newly constructed crude unit, FCCU and polymerization unit at our Woods Cross Refinery in October 2016. As a result, we have recast our 2015 and 2014 HEP segment information to include these assets and related capital expenditures and certain operating expenses that were previously presented under the Refining segment. Additionally, prior year capital expenditures related to these assets have been recast as if they were incurred by HEP versus HFC in the statement of cash flows. |
Supplemental Financial Inform94
Supplemental Financial Information (Consolidating Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 710,579 | $ 66,533 | $ 567,985 | $ 940,103 |
Marketable securities | 424,148 | 144,019 | ||
Accounts receivable, net | 479,199 | 351,978 | ||
Inventories | 1,135,676 | 841,869 | ||
Income tax receivable | 68,371 | 0 | ||
Prepayments and other | 33,036 | 43,666 | ||
Total current assets | 2,851,009 | 1,448,065 | ||
Properties, plants and equipment, net | 4,008,448 | 4,115,662 | ||
Intangibles and other assets | 2,576,204 | 2,824,572 | ||
Total assets | 9,435,661 | 8,388,299 | 9,230,047 | |
Accounts payable | 935,387 | 716,490 | ||
Income taxes payable | 0 | 8,142 | ||
Accrued liabilities | 147,842 | 135,983 | ||
Total current liabilities | 1,083,229 | 860,615 | ||
Long-term debt | 2,235,137 | 1,040,040 | ||
Liability to HEP | 0 | 0 | ||
Deferred income tax liabilities | 620,414 | 497,906 | ||
Other long-term liabilities | 194,896 | 179,965 | ||
Investment in HEP | 0 | 0 | ||
Equity – HollyFrontier | 4,681,394 | 5,253,415 | ||
Equity – noncontrolling interest | 620,591 | 556,358 | ||
Total liabilities and equity | 9,435,661 | 8,388,299 | ||
Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 706,922 | 51,520 | 565,155 | 933,751 |
Marketable securities | 424,148 | 144,019 | ||
Accounts receivable, net | 487,693 | 355,020 | ||
Inventories | 1,134,274 | 839,897 | ||
Income tax receivable | 68,371 | |||
Prepayments and other | 37,379 | 48,288 | ||
Total current assets | 2,858,787 | 1,438,744 | ||
Properties, plants and equipment, net | 2,874,041 | 3,027,614 | ||
Intangibles and other assets | 2,077,683 | 2,410,879 | ||
Total assets | 7,810,511 | 6,877,237 | ||
Accounts payable | 967,347 | 738,024 | ||
Income taxes payable | 8,142 | |||
Accrued liabilities | 115,878 | 117,346 | ||
Total current liabilities | 1,083,225 | 863,512 | ||
Long-term debt | 991,225 | 31,288 | ||
Liability to HEP | 208,603 | 220,998 | ||
Deferred income tax liabilities | 619,905 | 497,475 | ||
Other long-term liabilities | 132,515 | 125,614 | ||
Investment in HEP | 136,435 | 129,961 | ||
Equity – HollyFrontier | 4,638,603 | 5,008,389 | ||
Equity – noncontrolling interest | 0 | 0 | ||
Total liabilities and equity | 7,810,511 | 6,877,237 | ||
HEP Subsidiary | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 3,657 | 15,013 | 2,830 | 6,352 |
Marketable securities | 0 | 0 | ||
Accounts receivable, net | 50,408 | 41,075 | ||
Inventories | 1,402 | 1,972 | ||
Income tax receivable | 0 | |||
Prepayments and other | 1,486 | 3,082 | ||
Total current assets | 56,953 | 61,142 | ||
Properties, plants and equipment, net | 1,365,568 | 1,333,563 | ||
Intangibles and other assets | 497,966 | 417,574 | ||
Total assets | 1,920,487 | 1,812,279 | ||
Accounts payable | 26,942 | 22,583 | ||
Income taxes payable | 0 | |||
Accrued liabilities | 37,793 | 26,341 | ||
Total current liabilities | 64,735 | 48,924 | ||
Long-term debt | 1,243,912 | 1,008,752 | ||
Liability to HEP | 0 | 0 | ||
Deferred income tax liabilities | 509 | 431 | ||
Other long-term liabilities | 62,971 | 59,376 | ||
Investment in HEP | 0 | 0 | ||
Equity – HollyFrontier | 454,803 | 600,367 | ||
Equity – noncontrolling interest | 93,557 | 94,429 | ||
Total liabilities and equity | 1,920,487 | 1,812,279 | ||
Consolidations and Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Marketable securities | 0 | 0 | ||
Accounts receivable, net | (58,902) | (44,117) | ||
Inventories | 0 | 0 | ||
Income tax receivable | 0 | |||
Prepayments and other | (5,829) | (7,704) | ||
Total current assets | (64,731) | (51,821) | ||
Properties, plants and equipment, net | (231,161) | (245,515) | ||
Intangibles and other assets | 555 | (3,881) | ||
Total assets | (295,337) | (301,217) | ||
Accounts payable | (58,902) | (44,117) | ||
Income taxes payable | 0 | |||
Accrued liabilities | (5,829) | (7,704) | ||
Total current liabilities | (64,731) | (51,821) | ||
Long-term debt | 0 | 0 | ||
Liability to HEP | (208,603) | (220,998) | ||
Deferred income tax liabilities | 0 | 0 | ||
Other long-term liabilities | (590) | (5,025) | ||
Investment in HEP | (136,435) | (129,961) | ||
Equity – HollyFrontier | (412,012) | (355,341) | ||
Equity – noncontrolling interest | 527,034 | 461,929 | ||
Total liabilities and equity | $ (295,337) | $ (301,217) |
Supplemental Financial Inform95
Supplemental Financial Information (Consolidating Statement of Income) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||||||
Sales and other revenues | $ 2,955,068 | $ 2,847,270 | $ 2,714,638 | $ 2,018,724 | $ 2,943,559 | $ 3,585,823 | $ 3,701,912 | $ 3,006,626 | $ 10,535,700 | $ 13,237,920 | $ 19,764,327 | |||||||||||
Cost of products sold | 8,765,927 | 10,239,218 | 17,228,385 | |||||||||||||||||||
Lower of cost or market inventory valuation adjustment | 97,700 | 300 | 138,500 | 56,100 | 143,600 | 225,500 | 135,500 | 6,500 | (291,938) | 226,979 | 397,478 | |||||||||||
Operating expenses | 1,018,839 | 1,060,373 | 1,144,940 | |||||||||||||||||||
General and administrative | 125,648 | 120,846 | 114,609 | |||||||||||||||||||
Depreciation and amortization | 363,027 | 346,151 | 363,381 | |||||||||||||||||||
Goodwill and asset impairment | 654,084 | 0 | 0 | |||||||||||||||||||
Total operating costs and expenses | 2,842,776 | 2,722,505 | 3,135,180 | 1,935,126 | 3,000,265 | 3,263,218 | 3,112,080 | 2,618,004 | 10,635,587 | 11,993,567 | 19,248,793 | |||||||||||
Income (loss) from operations | 112,292 | [1],[2] | 124,765 | [1],[2] | (420,542) | [1],[2] | 83,598 | [1],[2] | (56,706) | [3] | 322,605 | [3] | 589,832 | [3] | 388,622 | [3] | (99,887) | [1],[2] | 1,244,353 | [3] | 515,534 | |
Earnings (loss) of equity method investments | 14,213 | (3,738) | (2,007) | |||||||||||||||||||
Interest income (expense) | (69,701) | (40,079) | (39,216) | |||||||||||||||||||
Loss on early extinguishment of debt | $ 7,700 | (8,718) | (1,370) | (7,677) | ||||||||||||||||||
Gain on sale of assets and other | (7,441) | 9,402 | 866 | |||||||||||||||||||
Other income (expense) total | (71,647) | (35,785) | (48,034) | |||||||||||||||||||
Income (loss) before income taxes | 83,416 | 109,867 | (430,515) | 65,698 | (64,671) | 320,673 | 580,177 | 372,389 | (171,534) | 1,208,568 | 467,500 | |||||||||||
Income tax provision | 19,411 | 406,060 | 141,172 | |||||||||||||||||||
Net income (loss) | (190,945) | 802,508 | 326,328 | |||||||||||||||||||
Less net income attributable to noncontrolling interest | 69,508 | 62,407 | 45,036 | |||||||||||||||||||
Net Income (loss) attributable to HollyFrontier stockholders | $ 53,165 | $ 74,497 | $ (409,368) | $ 21,253 | $ (43,921) | $ 196,322 | $ 360,824 | $ 226,876 | (260,453) | 740,101 | 281,292 | |||||||||||
Comprehensive income (loss) attributable to HollyFrontier stockholders | (245,686) | 708,052 | 308,364 | |||||||||||||||||||
Guarantor Subsidiaries [Member] | ||||||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||||||
Sales and other revenues | 10,467,358 | 13,171,846 | 19,708,328 | |||||||||||||||||||
Cost of products sold | 9,062,757 | 10,525,610 | 17,500,601 | |||||||||||||||||||
Lower of cost or market inventory valuation adjustment | (291,938) | 226,979 | 397,478 | |||||||||||||||||||
Operating expenses | 928,483 | 958,103 | 1,040,187 | |||||||||||||||||||
General and administrative | 113,117 | 108,290 | 103,785 | |||||||||||||||||||
Depreciation and amortization | 308,569 | 298,779 | 316,786 | |||||||||||||||||||
Goodwill and asset impairment | 654,084 | |||||||||||||||||||||
Total operating costs and expenses | 10,775,072 | 12,117,761 | 19,358,837 | |||||||||||||||||||
Income (loss) from operations | (307,714) | 1,054,085 | 349,491 | |||||||||||||||||||
Earnings (loss) of equity method investments | 100,322 | 78,969 | 65,375 | |||||||||||||||||||
Interest income (expense) | (8,355) | 6,098 | 6,221 | |||||||||||||||||||
Loss on early extinguishment of debt | (8,718) | (1,370) | 0 | |||||||||||||||||||
Gain on sale of assets and other | (8,118) | 8,916 | 866 | |||||||||||||||||||
Other income (expense) total | 75,131 | 92,613 | 72,462 | |||||||||||||||||||
Income (loss) before income taxes | (232,583) | 1,146,698 | 421,953 | |||||||||||||||||||
Income tax provision | 19,126 | 405,832 | 140,937 | |||||||||||||||||||
Net income (loss) | (251,709) | 740,866 | 281,016 | |||||||||||||||||||
Less net income attributable to noncontrolling interest | (34) | (30) | (25) | |||||||||||||||||||
Net Income (loss) attributable to HollyFrontier stockholders | (251,675) | 740,896 | 281,041 | |||||||||||||||||||
Comprehensive income (loss) attributable to HollyFrontier stockholders | (236,908) | 708,847 | 308,113 | |||||||||||||||||||
HEP Subsidiary | ||||||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||||||
Sales and other revenues | 402,043 | 358,875 | 332,626 | |||||||||||||||||||
Cost of products sold | 0 | 0 | 0 | |||||||||||||||||||
Lower of cost or market inventory valuation adjustment | 0 | 0 | 0 | |||||||||||||||||||
Operating expenses | 123,985 | 105,554 | 106,185 | |||||||||||||||||||
General and administrative | 12,531 | 12,556 | 10,824 | |||||||||||||||||||
Depreciation and amortization | 68,811 | 61,690 | 60,911 | |||||||||||||||||||
Goodwill and asset impairment | 0 | |||||||||||||||||||||
Total operating costs and expenses | 205,327 | 179,800 | 177,920 | |||||||||||||||||||
Income (loss) from operations | 196,716 | 179,075 | 154,706 | |||||||||||||||||||
Earnings (loss) of equity method investments | 14,213 | 4,803 | 2,987 | |||||||||||||||||||
Interest income (expense) | (52,112) | (36,892) | (36,098) | |||||||||||||||||||
Loss on early extinguishment of debt | 0 | 0 | (7,677) | |||||||||||||||||||
Gain on sale of assets and other | 677 | 486 | 0 | |||||||||||||||||||
Other income (expense) total | (37,222) | (31,603) | (40,788) | |||||||||||||||||||
Income (loss) before income taxes | 159,494 | 147,472 | 113,918 | |||||||||||||||||||
Income tax provision | 285 | 228 | 235 | |||||||||||||||||||
Net income (loss) | 159,209 | 147,244 | 113,683 | |||||||||||||||||||
Less net income attributable to noncontrolling interest | 10,006 | 11,120 | 8,288 | |||||||||||||||||||
Net Income (loss) attributable to HollyFrontier stockholders | 149,203 | 136,124 | 105,395 | |||||||||||||||||||
Comprehensive income (loss) attributable to HollyFrontier stockholders | 149,161 | 136,217 | 105,434 | |||||||||||||||||||
Consolidations and Eliminations | ||||||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||||||
Sales and other revenues | (333,701) | (292,801) | (276,627) | |||||||||||||||||||
Cost of products sold | (296,830) | (286,392) | (272,216) | |||||||||||||||||||
Lower of cost or market inventory valuation adjustment | 0 | 0 | 0 | |||||||||||||||||||
Operating expenses | (33,629) | (3,284) | (1,432) | |||||||||||||||||||
General and administrative | 0 | 0 | ||||||||||||||||||||
Depreciation and amortization | (14,353) | (14,318) | (14,316) | |||||||||||||||||||
Goodwill and asset impairment | 0 | |||||||||||||||||||||
Total operating costs and expenses | (344,812) | (303,994) | (287,964) | |||||||||||||||||||
Income (loss) from operations | 11,111 | 11,193 | 11,337 | |||||||||||||||||||
Earnings (loss) of equity method investments | (100,322) | (87,510) | (70,369) | |||||||||||||||||||
Interest income (expense) | (9,234) | (9,285) | (9,339) | |||||||||||||||||||
Loss on early extinguishment of debt | 0 | 0 | 0 | |||||||||||||||||||
Gain on sale of assets and other | 0 | 0 | 0 | |||||||||||||||||||
Other income (expense) total | (109,556) | (96,795) | (79,708) | |||||||||||||||||||
Income (loss) before income taxes | (98,445) | (85,602) | (68,371) | |||||||||||||||||||
Income tax provision | 0 | 0 | 0 | |||||||||||||||||||
Net income (loss) | (98,445) | (85,602) | (68,371) | |||||||||||||||||||
Less net income attributable to noncontrolling interest | 59,536 | 51,317 | 36,773 | |||||||||||||||||||
Net Income (loss) attributable to HollyFrontier stockholders | (157,981) | (136,919) | (105,144) | |||||||||||||||||||
Comprehensive income (loss) attributable to HollyFrontier stockholders | $ (157,939) | $ (137,012) | $ (105,183) | |||||||||||||||||||
[1] | For 2016, income from operations reflects non-cash goodwill and long-lived asset impairment charges of $654.1 million in the second quarter. | |||||||||||||||||||||
[2] | For 2016, income from operations reflects non-cash lower of cost or market inventory valuation reductions of $56.1 million and $138.5 million for the first and second quarters, respectively, and a charge of $0.3 million for the third quarter and a reduction of $97.7 million for the fourth quarter. | |||||||||||||||||||||
[3] | ) 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 increases of $225.5 million and $143.6 million for the third and fourth quarters, respectively. |
Supplemental Financial Inform96
Supplemental Financial Information (Consolidating Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||||||
Cash flows from operating activities (1) | $ 602,271 | $ 979,626 | $ 758,596 | ||||
Additions to properties, plants and equipment | (372,195) | (483,034) | (366,135) | ||||
Distribution from HEP | 0 | 0 | |||||
Proceeds from Sale of Other Assets | 849 | 19,264 | 16,633 | ||||
Purchase of equity method investment - HEP | (42,627) | (55,032) | |||||
Purchases of marketable securities | (546,632) | (509,338) | (1,025,602) | ||||
Sales and maturities of marketable securities | 266,603 | 839,513 | 1,276,447 | ||||
Other, net | 0 | 0 | 5,021 | ||||
Net cash provided by (used for) investing activities | (801,597) | (381,748) | (292,322) | ||||
Proceeds from (Repayments of) Lines of Credit | 141,000 | ||||||
Proceeds from issuance of senior notes - HFC | 992,550 | 0 | 0 | ||||
Net proceeds from issuance of term loan | 350,000 | 0 | 0 | ||||
Repayment of term loan | $ (39,500) | $ (39,500) | (350,000) | 0 | 0 | ||
Net proceeds from common unit offerings - HEP | $ 23,000 | $ 103,000 | 125,870 | 0 | 0 | ||
Principal tender on senior notes – HEP | (155,156) | (156,188) | |||||
Purchase of treasury stock | (133,430) | (742,823) | (158,847) | ||||
Contribution from General Partner | 0 | 0 | 0 | ||||
Dividends | (234,004) | (246,908) | (647,197) | ||||
Payments of Ordinary Dividends, Noncontrolling Interest | (83,268) | (78,202) | |||||
Repayment of financing obligation | (39,500) | 0 | 0 | ||||
Excess tax benefit from equity-based compensation | 0 | 0 | 2,040 | ||||
Other, net | (10,507) | (12,175) | (7,998) | ||||
Net cash provided by (used for) financing activities | 843,372 | (1,099,330) | (838,392) | ||||
Increase (decrease) for the period | 644,046 | (501,452) | (372,118) | ||||
Beginning of period | 66,533 | 66,533 | 66,533 | 66,533 | 567,985 | 940,103 | |
End of period | 710,579 | 66,533 | 567,985 | ||||
Guarantor Subsidiaries [Member] | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Cash flows from operating activities (1) | 460,918 | 839,106 | 653,570 | ||||
Additions to properties, plants and equipment | (372,195) | (483,034) | (366,135) | ||||
Distribution from HEP | (278,000) | (62,000) | |||||
Proceeds from Sale of Other Assets | 422 | 17,985 | 16,633 | ||||
Purchase of equity method investment - HEP | 0 | 0 | |||||
Purchases of marketable securities | (546,632) | (509,338) | (1,025,602) | ||||
Sales and maturities of marketable securities | 266,603 | 839,513 | 1,276,447 | ||||
Other, net | 5,021 | ||||||
Net cash provided by (used for) investing activities | (651,802) | (134,874) | (93,636) | ||||
Proceeds from issuance of senior notes - HFC | (992,550) | ||||||
Proceeds from Issuance of Long-term Debt | 0 | ||||||
Net proceeds from issuance of term loan | 350,000 | ||||||
Repayment of term loan | (350,000) | ||||||
Principal tender on senior notes – HEP | (155,156) | 0 | |||||
Purchase of treasury stock | (133,430) | (742,823) | (158,847) | ||||
Contribution from General Partner | (53,839) | (128,476) | (120,111) | ||||
Dividends | (234,004) | (246,908) | (647,197) | ||||
Payments of Ordinary Dividends, Noncontrolling Interest | 0 | 0 | 0 | ||||
Excess tax benefit from equity-based compensation | 2,040 | ||||||
Other, net | (2,991) | (6,504) | (4,415) | ||||
Net cash provided by (used for) financing activities | 846,286 | (1,217,867) | (928,530) | ||||
Increase (decrease) for the period | 655,402 | (513,635) | (368,596) | ||||
Beginning of period | 51,520 | 51,520 | 51,520 | 51,520 | 565,155 | 933,751 | |
End of period | 706,922 | 51,520 | 565,155 | ||||
HEP Subsidiary | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Cash flows from operating activities (1) | (242,761) | (230,940) | (185,519) | ||||
Additions to properties, plants and equipment | 0 | 0 | 0 | ||||
Distribution from HEP | (278,000) | 62,000 | |||||
Proceeds from Sale of Other Assets | 427 | 1,279 | 0 | ||||
Purchase of equity method investment - HEP | (42,627) | 55,032 | |||||
Purchases of marketable securities | 0 | 0 | 0 | ||||
Sales and maturities of marketable securities | 0 | 0 | 0 | ||||
Other, net | 0 | ||||||
Net cash provided by (used for) investing activities | (146,023) | 246,874 | 198,686 | ||||
Proceeds from (Repayments of) Lines of Credit | (159,000) | 141,000 | 208,000 | ||||
Proceeds from issuance of senior notes - HFC | 0 | ||||||
Proceeds from Issuance of Long-term Debt | 394,000 | ||||||
Net proceeds from issuance of term loan | 0 | ||||||
Repayment of term loan | 0 | ||||||
Net proceeds from common unit offerings - HEP | 125,870 | ||||||
Principal tender on senior notes – HEP | 0 | (156,188) | |||||
Purchase of treasury stock | 0 | 0 | 0 | ||||
Contribution from General Partner | 53,839 | 128,476 | 120,111 | ||||
Dividends | 0 | 0 | 0 | ||||
Payments of Ordinary Dividends, Noncontrolling Interest | (197,787) | (173,688) | (158,695) | ||||
Repayment of financing obligation | (39,500) | ||||||
Excess tax benefit from equity-based compensation | 0 | ||||||
Other, net | (7,516) | (5,671) | (3,583) | ||||
Net cash provided by (used for) financing activities | (108,094) | 28,117 | 9,645 | ||||
Increase (decrease) for the period | (11,356) | 12,183 | (3,522) | ||||
Beginning of period | 15,013 | 15,013 | 15,013 | 15,013 | 2,830 | 6,352 | |
End of period | 3,657 | 15,013 | 2,830 | ||||
HEP | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Additions to properties, plants and equipment | (107,595) | (193,121) | (198,686) | ||||
Distribution from HEP | (62,000) | ||||||
Purchase of equity method investment - HEP | (42,627) | (55,032) | 0 | ||||
Proceeds from (Repayments of) Lines of Credit | (159,000) | 208,000 | |||||
Proceeds from issuance of senior notes - HFC | 394,000 | 0 | 0 | ||||
Proceeds from Issuance of Long-term Debt | 394,000 | ||||||
Net proceeds from common unit offerings - HEP | 125,870 | ||||||
Principal tender on senior notes – HEP | 0 | 0 | (156,188) | ||||
Payments of Ordinary Dividends, Noncontrolling Interest | (92,607) | ||||||
Repayment of financing obligation | (39,500) | ||||||
Beginning of period | 15,013 | 15,013 | 15,013 | 15,013 | |||
End of period | 3,657 | 15,013 | |||||
HEP | Guarantor Subsidiaries [Member] | |||||||
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 | ||||
Net proceeds from common unit offerings - HEP | 0 | ||||||
Repayment of financing obligation | 0 | ||||||
HEP | HEP Subsidiary | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Additions to properties, plants and equipment | (103,823) | (193,121) | (198,686) | ||||
Consolidations and Eliminations | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Cash flows from operating activities (1) | (101,408) | (90,420) | (80,493) | ||||
Additions to properties, plants and equipment | 0 | 0 | 0 | ||||
Distribution from HEP | 0 | 0 | |||||
Proceeds from Sale of Other Assets | 0 | 0 | 0 | ||||
Purchase of equity method investment - HEP | 0 | 0 | |||||
Purchases of marketable securities | 0 | 0 | 0 | ||||
Sales and maturities of marketable securities | 0 | 0 | 0 | ||||
Other, net | 0 | ||||||
Net cash provided by (used for) investing activities | (3,772) | 0 | 0 | ||||
Proceeds from (Repayments of) Lines of Credit | 0 | 0 | 0 | ||||
Proceeds from issuance of senior notes - HFC | 0 | ||||||
Proceeds from Issuance of Long-term Debt | 0 | ||||||
Net proceeds from issuance of term loan | 0 | ||||||
Repayment of term loan | 0 | ||||||
Net 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 | 105,180 | 90,420 | 80,493 | ||||
Repayment of financing obligation | 0 | ||||||
Excess tax benefit from equity-based compensation | 0 | ||||||
Other, net | 0 | 0 | 0 | ||||
Net cash provided by (used for) financing activities | 105,180 | 90,420 | 80,493 | ||||
Increase (decrease) for the period | 0 | 0 | 0 | ||||
Beginning of period | $ 0 | $ 0 | $ 0 | 0 | 0 | 0 | |
End of period | 0 | $ 0 | $ 0 | ||||
Consolidations and Eliminations | HEP | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
Additions to properties, plants and equipment | $ (3,772) |
Significant Customers (Details)
Significant Customers (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue, Major Customer [Line Items] | |||
Number of significant customers | 2 | ||
Concentration risk, precentage of total revenues | 10.00% | ||
Revenue for reportable segment | $ 68.9 | $ 66.7 | $ 57.3 |
Export Sales Risk | 0.03 | ||
Sinclair Oil Company [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, precentage of total revenues | 9.00% | 8.00% | 10.00% |
Revenue for reportable segment | $ 927 | $ 1,104.9 | $ 2,018.8 |
Shell Oil Company [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk, precentage of total revenues | 10.00% | 9.00% | 11.00% |
Revenue for reportable segment | $ 1,048.2 | $ 1,252.6 | $ 2,097.4 |
Quarterly Information (Unaudi98
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, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||
Sales and other revenues | $ 2,955,068 | $ 2,847,270 | $ 2,714,638 | $ 2,018,724 | $ 2,943,559 | $ 3,585,823 | $ 3,701,912 | $ 3,006,626 | $ 10,535,700 | $ 13,237,920 | $ 19,764,327 | ||||||||||
Operating costs and expenses | 2,842,776 | 2,722,505 | 3,135,180 | 1,935,126 | 3,000,265 | 3,263,218 | 3,112,080 | 2,618,004 | 10,635,587 | 11,993,567 | 19,248,793 | ||||||||||
Income (loss) from operations | 112,292 | [1],[2] | 124,765 | [1],[2] | (420,542) | [1],[2] | 83,598 | [1],[2] | (56,706) | [3] | 322,605 | [3] | 589,832 | [3] | 388,622 | [3] | (99,887) | [1],[2] | 1,244,353 | [3] | 515,534 |
Income (loss) before income taxes | 83,416 | 109,867 | (430,515) | 65,698 | (64,671) | 320,673 | 580,177 | 372,389 | (171,534) | 1,208,568 | 467,500 | ||||||||||
Net Income (loss) attributable to HollyFrontier stockholders | $ 53,165 | $ 74,497 | $ (409,368) | $ 21,253 | $ (43,921) | $ 196,322 | $ 360,824 | $ 226,876 | $ (260,453) | $ 740,101 | $ 281,292 | ||||||||||
Net income (loss) per share attributable to HollyFrontier stockholders - basic (in dollars per share) | $ 0.30 | $ 0.42 | $ (2.33) | $ 0.12 | $ (0.24) | $ 1.05 | $ 1.88 | $ 1.16 | $ (1.48) | $ 3.91 | $ 1.42 | ||||||||||
Net income (loss) per share attributable to HollyFrontier stockholders - diluted (in dollars per share) | 0.30 | 0.42 | (2.33) | 0.12 | (0.24) | 1.04 | 1.88 | 1.16 | (1.48) | 3.90 | $ 1.42 | ||||||||||
Dividends per common share (in dollars per share) | $ 0.33 | $ 0.33 | $ 0.33 | $ 0.33 | $ 0.33 | $ 0.33 | $ 0.33 | $ 0.32 | $ 1.32 | $ 1.31 | |||||||||||
Average number of shares of common stock outstanding - Basic | 175,936 | 175,871 | 175,865 | 176,737 | 181,460 | 187,208 | 191,355 | 195,069 | 176,101 | 188,731 | 197,243 | ||||||||||
Average number of shares of common stock outstanding - Diluted | 176,137 | 175,993 | 175,865 | 176,784 | 181,460 | 187,344 | 191,454 | 195,121 | 176,101 | 188,940 | 197,428 | ||||||||||
Lower of cost or market inventory valuation adjustment | $ 97,700 | $ 300 | $ 138,500 | $ 56,100 | $ 143,600 | $ 225,500 | $ 135,500 | $ 6,500 | $ (291,938) | $ 226,979 | $ 397,478 | ||||||||||
Goodwill and Intangible Asset Impairment | $ 654,084 | $ 0 | $ 0 | ||||||||||||||||||
[1] | For 2016, income from operations reflects non-cash goodwill and long-lived asset impairment charges of $654.1 million in the second quarter. | ||||||||||||||||||||
[2] | For 2016, income from operations reflects non-cash lower of cost or market inventory valuation reductions of $56.1 million and $138.5 million for the first and second quarters, respectively, and a charge of $0.3 million for the third quarter and a reduction of $97.7 million for the fourth quarter. | ||||||||||||||||||||
[3] | ) 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 increases of $225.5 million and $143.6 million for the third and fourth quarters, respectively. |
Uncategorized Items - hfc-20161
Label | Element | Value |
SLC Pipeline [Member] | ||
Equity Method Investment, Ownership Percentage | us-gaap_EquityMethodInvestmentOwnershipPercentage | 25.00% |
Osage Pipeline [Member] [Member] | ||
Equity Method Investment, Ownership Percentage | us-gaap_EquityMethodInvestmentOwnershipPercentage | 50.00% |
Frontier Pipeline [Member] | ||
Equity Method Investment, Ownership Percentage | us-gaap_EquityMethodInvestmentOwnershipPercentage | 50.00% |
Cheyenne [Member] | ||
Equity Method Investment, Ownership Percentage | us-gaap_EquityMethodInvestmentOwnershipPercentage | 50.00% |