Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 25, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-3876 | |
Entity Registrant Name | HOLLYFRONTIER CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 75-1056913 | |
Entity Address, Address Line One | 2828 N. Harwood, Suite 1300 | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75201 | |
City Area Code | 214 | |
Local Phone Number | 871-3555 | |
Title of 12(b) Security | Common Stock $0.01 par value | |
Trading Symbol | HFC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 161,389,721 | |
Entity Central Index Key | 0000048039 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents (HEP: $7,469 and $3,045, respectively) | $ 981,856 | $ 1,154,752 |
Accounts receivable: Product and transportation (HEP: $16,182 and $12,332, respectively) | 811,355 | 635,623 |
Crude oil resales | 28,476 | 36,078 |
Accounts receivable, total | 839,831 | 671,701 |
Inventories: Crude oil and refined products | 1,429,911 | 1,166,404 |
Materials, supplies and other (HEP: $883 and $858, respectively) | 207,148 | 187,975 |
Inventories, total | 1,637,059 | 1,354,379 |
Income taxes receivable | 23,591 | 34,040 |
Prepayments and other (HEP: $3,896 and $3,452, respectively) | 50,429 | 81,507 |
Total current assets | 3,532,766 | 3,296,379 |
Properties, plants and equipment, at cost (HEP: $2,042,185 and $2,058,388, respectively) | 7,134,025 | 6,780,980 |
Less accumulated depreciation (HEP: $(535,215) and $(489,217), respectively) | (2,336,637) | (2,098,446) |
Operating lease right-of-use assets (HEP: $3,454) | 453,377 | 0 |
Properties, plants and equipment, net | 4,797,388 | 4,682,534 |
Other assets: Turnaround costs | 405,043 | 339,861 |
Goodwill (HEP: $312,873 and $314,229, respectively) | 2,370,406 | 2,246,435 |
Intangibles and other (HEP: $166,743 and $176,291, respectively) | 632,348 | 429,392 |
Other assets, total | 3,407,797 | 3,015,688 |
Total assets | 12,191,328 | 10,994,601 |
Current liabilities: | ||
Accounts payable (HEP $12,809 and $16,723, respectively) | 1,229,767 | 872,627 |
Income taxes payable | 18,782 | 17,636 |
Operating lease liabilities (HEP $5,384) | 99,622 | 0 |
Accrued liabilities (HEP: $28,669 and $27,240, respectively) | 357,175 | 277,892 |
Total current liabilities | 1,705,346 | 1,168,155 |
Long-term debt (HEP: $1,431,869 and $1,418,900, respectively) | 2,425,234 | 2,411,540 |
Noncurrent operating lease liability (HEP: $71,022) | 355,410 | 0 |
Deferred income taxes (HEP: $423 and $488, respectively) | 916,520 | 722,576 |
Other long-term liabilities (HEP: $60,482 and $63,534, respectively) | 247,455 | 233,271 |
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; 256,036,760 and 256,036,788 shares issued as of September 30, 2019 and December 31, 2018, respectively | 2,560 | 2,560 |
Additional capital | 4,224,770 | 4,196,125 |
Retained earnings | 4,740,677 | 4,196,902 |
Accumulated other comprehensive income | 17,217 | 13,623 |
Common stock held in treasury, at cost - 94,174,173 and 83,915,297 shares as of September 30, 2019 and December 31, 2018, respectively | (2,965,016) | (2,490,639) |
Total HollyFrontier stockholders' equity | 6,020,208 | 5,918,571 |
Noncontrolling interest | 521,155 | 540,488 |
Total equity | 6,541,363 | 6,459,059 |
Total liabilities and equity | 12,191,328 | 10,994,601 |
HEP | ||
Current assets: | ||
Cash and cash equivalents (HEP: $7,469 and $3,045, respectively) | 7,469 | 3,045 |
Accounts receivable: Product and transportation (HEP: $16,182 and $12,332, respectively) | 16,182 | 12,332 |
Materials, supplies and other (HEP: $883 and $858, respectively) | 883 | 858 |
Prepayments and other (HEP: $3,896 and $3,452, respectively) | 3,896 | 3,452 |
Properties, plants and equipment, at cost (HEP: $2,042,185 and $2,058,388, respectively) | 2,042,185 | 2,058,388 |
Less accumulated depreciation (HEP: $(535,215) and $(489,217), respectively) | (535,215) | (489,217) |
Operating lease right-of-use assets (HEP: $3,454) | 3,454 | 0 |
Goodwill (HEP: $312,873 and $314,229, respectively) | 312,873 | 314,229 |
Intangibles and other (HEP: $166,743 and $176,291, respectively) | 166,743 | 176,291 |
Current liabilities: | ||
Accounts payable (HEP $12,809 and $16,723, respectively) | 12,809 | 16,723 |
Operating lease liabilities (HEP $5,384) | 5,384 | 0 |
Long-term debt (HEP: $1,431,869 and $1,418,900, respectively) | 1,431,869 | 1,418,900 |
Noncurrent operating lease liability (HEP: $71,022) | 71,022 | 0 |
Deferred income taxes (HEP: $423 and $488, respectively) | 423 | 488 |
Other long-term liabilities (HEP: $60,482 and $63,534, respectively) | $ 60,482 | $ 63,534 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Cash and cash equivalents (HEP: $7,469 and $3,045, respectively) | $ 981,856 | $ 1,154,752 |
Accounts receivable: Product and transportation (HEP: $16,182 and $12,332, respectively) | 811,355 | 635,623 |
Materials, supplies and other (HEP: $883 and $858, respectively) | 207,148 | 187,975 |
Prepayments and other (HEP: $3,896 and $3,452, respectively) | 50,429 | 81,507 |
Properties, plants and equipment, at cost (HEP: $2,042,185 and $2,058,388, respectively) | 7,134,025 | 6,780,980 |
Less accumulated depreciation (HEP: $(535,215) and $(489,217), respectively) | (2,336,637) | (2,098,446) |
Operating lease right-of-use assets (HEP: $3,454) | 453,377 | 0 |
Goodwill (HEP: $312,873 and $314,229, respectively) | 2,370,406 | 2,246,435 |
Intangibles and other (HEP: $166,743 and $176,291, respectively) | 632,348 | 429,392 |
Accounts payable (HEP $12,809 and $16,723, respectively) | 1,229,767 | 872,627 |
Operating lease liabilities (HEP $5,384) | 99,622 | 0 |
Long-term debt (HEP: $1,431,869 and $1,418,900, respectively) | 2,425,234 | 2,411,540 |
Deferred income taxes (HEP: $423 and $488, respectively) | 916,520 | 722,576 |
Noncurrent operating lease liability (HEP: $71,022) | 355,410 | 0 |
Other long-term liabilities (HEP: $60,482 and $63,534, respectively) | $ 247,455 | $ 233,271 |
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 | 256,036,760 | 256,036,788 |
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 | 94,174,173 | 83,915,297 |
HEP | ||
Cash and cash equivalents (HEP: $7,469 and $3,045, respectively) | $ 7,469 | $ 3,045 |
Accounts receivable: Product and transportation (HEP: $16,182 and $12,332, respectively) | 16,182 | 12,332 |
Materials, supplies and other (HEP: $883 and $858, respectively) | 883 | 858 |
Prepayments and other (HEP: $3,896 and $3,452, respectively) | 3,896 | 3,452 |
Properties, plants and equipment, at cost (HEP: $2,042,185 and $2,058,388, respectively) | 2,042,185 | 2,058,388 |
Less accumulated depreciation (HEP: $(535,215) and $(489,217), respectively) | (535,215) | (489,217) |
Operating lease right-of-use assets (HEP: $3,454) | 3,454 | 0 |
Goodwill (HEP: $312,873 and $314,229, respectively) | 312,873 | 314,229 |
Intangibles and other (HEP: $166,743 and $176,291, respectively) | 166,743 | 176,291 |
Accounts payable (HEP $12,809 and $16,723, respectively) | 12,809 | 16,723 |
Operating lease liabilities (HEP $5,384) | 5,384 | 0 |
Accrued Liabilities (HEP: $22,555 and $27,240, respectively) | 28,669 | 27,240 |
Long-term debt (HEP: $1,431,869 and $1,418,900, respectively) | 1,431,869 | 1,418,900 |
Deferred income taxes (HEP: $423 and $488, respectively) | 423 | 488 |
Noncurrent operating lease liability (HEP: $71,022) | 71,022 | 0 |
Other long-term liabilities (HEP: $60,482 and $63,534, respectively) | $ 60,482 | $ 63,534 |
Consolidated Statements Of Inco
Consolidated Statements Of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Income Statements, Captions [Line Items] | ||||
Sales and other revenues | $ 4,424,828 | $ 4,770,799 | $ 13,104,690 | $ 13,370,462 |
Operating costs and expenses: | ||||
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) | 3,403,767 | 3,752,234 | 10,307,856 | 10,695,275 |
Lower of cost or market inventory valuation adjustment | 34,062 | 17,837 | (150,483) | (192,927) |
Costs of products sold, net | 3,437,829 | 3,770,071 | 10,157,373 | 10,502,348 |
Operating expenses (exclusive of depreciation and amortization) | 345,578 | 317,196 | 1,010,422 | 933,699 |
Selling, general and administrative expenses (exclusive of depreciation and amortization) | 87,626 | 71,130 | 260,977 | 204,469 |
Depreciation and amortization | 127,016 | 108,885 | 375,345 | 323,605 |
Goodwill, Impairment Loss | 0 | 0 | 152,712 | 0 |
Total operating costs and expenses | 3,998,049 | 4,267,282 | 11,956,829 | 11,964,121 |
Income from operations | 426,779 | 503,517 | 1,147,861 | 1,406,341 |
Other income (expense): | ||||
Earnings of equity method investments | 1,334 | 1,114 | 5,217 | 4,127 |
Interest income | 6,164 | 5,136 | 17,127 | 10,660 |
Interest expense | (36,027) | (32,399) | (106,938) | (97,446) |
Gain (loss) on foreign currency transactions | 395 | 281 | 4,873 | 5,516 |
Other, net | 2,356 | 741 | 3,005 | 3,451 |
Other income (expense) total | (25,778) | (25,127) | (76,716) | (73,692) |
Income before income taxes | 401,001 | 478,390 | 1,071,145 | 1,332,649 |
Income tax expense (benefit): | ||||
Current | 58,255 | 70,595 | 176,903 | 216,529 |
Deferred | 44,766 | 45,663 | 102,959 | 102,213 |
Income tax expense (benefit) | 103,021 | 116,258 | 279,862 | 318,742 |
Net income | 297,980 | 362,132 | 791,283 | 1,013,907 |
Less net income attributable to noncontrolling interest | 36,167 | 19,666 | 79,500 | 57,843 |
Net income attributable to HollyFrontier stockholders | $ 261,813 | $ 342,466 | $ 711,783 | $ 956,064 |
Earnings per share attributable to HollyFrontier stockholders: | ||||
Basic | $ 1.60 | $ 1.95 | $ 4.23 | $ 5.42 |
Diluted | $ 1.58 | $ 1.93 | $ 4.20 | $ 5.37 |
Average number of common shares outstanding: | ||||
Basic | 163,676 | 175,097 | 167,935 | 175,865 |
Diluted | 165,011 | 176,927 | 169,125 | 177,557 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net income | $ 297,980 | $ 362,132 | $ 791,283 | $ 1,013,907 |
Other comprehensive income (loss) | ||||
Foreign Currency Translation Adjustment | (9,311) | 8,325 | 4,212 | (15,118) |
Change in fair value of cash flow hedging instruments | (1,989) | 4,161 | 12,909 | (4,242) |
Reclassification adjustments to net income on settlement of cash flow hedging instruments | (5,573) | 1,631 | (12,537) | 6,038 |
Net unrealized gain (loss) on hedging instruments | (7,562) | 5,792 | 372 | 1,796 |
Other comprehensive income (loss) before income taxes | (16,873) | 14,117 | 4,584 | (13,322) |
Income tax expense (benefit) | (3,888) | 3,234 | 990 | (2,677) |
Other comprehensive (income) loss | (12,985) | 10,883 | 3,594 | (10,645) |
Total comprehensive income | 284,995 | 373,015 | 794,877 | 1,003,262 |
Less noncontrolling interest in comprehensive income | 36,167 | 19,666 | 79,500 | 57,843 |
Comprehensive income attributable to HollyFrontier stockholders | $ 248,828 | $ 353,349 | $ 715,377 | $ 945,419 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 41 Months Ended | ||
Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | |
Cash flows from operating activities: | |||||
Net income | $ 297,980 | $ 276,486 | $ 791,283 | $ 1,013,907 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||
Depreciation and amortization | 127,016 | 375,345 | 323,605 | ||
Goodwill, Impairment Loss | 0 | 152,712 | 0 | ||
Lower of cost or market inventory valuation adjustment | 34,062 | (150,483) | (192,927) | ||
Earnings of equity method investments, inclusive of distributions | 280 | 463 | |||
(Gain) loss on sale of assets | 202 | (52) | |||
Deferred income taxes | 44,766 | 102,959 | 102,213 | ||
Equity-based compensation expense | 30,635 | 26,096 | |||
Change in fair value - derivative instruments | 19,880 | (3,007) | |||
(Increase) decrease in current assets: | |||||
Accounts receivable | (116,793) | (136,764) | |||
Inventories | (47,409) | (33,856) | |||
Income taxes receivable | 13,704 | 27,792 | |||
Prepayments and other | 17,710 | (14,089) | |||
Increase (decrease) in current liabilities: | |||||
Accounts payable | 321,537 | (37,160) | |||
Income taxes payable | 808 | 76,277 | |||
Accrued liabilities | 54,779 | 84,328 | |||
Turnaround expenditures | (152,431) | (114,593) | |||
Other, net | (3,314) | 7,664 | |||
Net cash provided by (used for) operating activities | 1,411,404 | 1,129,897 | |||
Cash flows from investing activities: | |||||
Additions to properties, plants and equipment | (171,229) | (167,967) | |||
Purchase of business, net of cash acquired | (662,700) | (662,665) | 0 | ||
Purchase of Red Giant Oil, net of cash acquired | 0 | (54,088) | |||
Other, net | 958 | 3,999 | |||
Net cash used for investing activities | (856,764) | (259,167) | |||
Cash flows from financing activities: | |||||
Borrowings under credit agreement | 269,500 | 256,000 | |||
Repayments under credit agreement | (257,000) | (347,000) | |||
Proceeds from issuance of common units - HEP | 0 | 114,887 | $ 82,300 | ||
Purchase of treasury stock | (471,976) | (177,710) | |||
Dividends | (168,008) | (175,921) | |||
Shares withheld for tax withholding obligations | (1,158) | 0 | |||
Proceeds from (Payments for) Other Financing Activities | (600) | (544) | |||
Net cash used for financing activities | (729,337) | (423,416) | |||
Effect of exchange rate on cash flow | 1,801 | (2,394) | |||
Cash and cash equivalents: | |||||
Increase (decrease) for the period | (172,896) | 444,920 | |||
Beginning of period | 1,154,752 | 1,154,752 | |||
End of period | 981,856 | 981,856 | 981,856 | ||
Cash paid during the period for: | |||||
Interest | (93,929) | (89,553) | |||
Income taxes, net | (163,232) | (112,520) | |||
HEP | |||||
Cash flows from investing activities: | |||||
Additions to properties, plants and equipment | (23,828) | (41,111) | |||
Cash flows from financing activities: | |||||
Payments to Noncontrolling Interests | (100,095) | $ (93,128) | |||
Cash and cash equivalents: | |||||
Beginning of period | $ 3,045 | 3,045 | |||
End of period | $ 7,469 | $ 7,469 | $ 7,469 |
Consolidated Statements of Equi
Consolidated Statements of Equity (Unaudited) Statement - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 5,896,940 | $ 2,560 | $ 4,132,696 | $ 3,346,615 | $ 29,869 | $ (2,140,911) | $ 526,111 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.33 | ||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 288,862 | 268,091 | 20,771 | ||||
Dividends, Stock | (58,856) | (58,856) | |||||
Payments of Ordinary Dividends, Noncontrolling Interest | (29,237) | (29,237) | |||||
Other comprehensive income (loss), net of tax | (13,580) | (13,580) | |||||
Allocated equity on common unit issuances, net of tax | 100,011 | 41,980 | 58,031 | ||||
Stock Issued During Period, Value, Employee Benefit Plan | 1,057 | (1,057) | |||||
Share-based Compensation | 8,797 | 7,961 | 836 | ||||
Treasury Stock, Value, Acquired, Cost Method | (27,520) | (27,520) | |||||
Payments for Repurchase of Other Equity | (58) | (58) | |||||
Adoption of Accounting Standard | (7,447) | (11,019) | 3,572 | ||||
Stockholders' Equity, Other | 1 | (1) | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 1,013,907 | ||||||
Other comprehensive income (loss), net of tax | (10,645) | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 6,157,912 | 2,560 | 4,183,695 | 3,544,830 | 19,861 | (2,169,488) | 576,454 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.33 | ||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 362,913 | 345,507 | 17,406 | ||||
Dividends, Stock | (58,644) | (58,644) | |||||
Payments of Ordinary Dividends, Noncontrolling Interest | (31,522) | (31,522) | |||||
Other Comprehensive Income (Loss) Change in Current Period | (7,948) | (7,948) | |||||
Allocated equity on common unit issuances, net of tax | 453 | 221 | 232 | ||||
Stock Issued During Period, Value, Employee Benefit Plan | 335 | (335) | |||||
Share-based Compensation | 8,509 | 7,797 | 712 | ||||
Treasury Stock, Value, Acquired, Cost Method | (28,030) | (28,030) | |||||
Stockholders' Equity, Other | (3) | 3 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 6,403,643 | 2,560 | 4,192,045 | 3,831,696 | 11,913 | (2,197,853) | 563,282 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.33 | ||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 362,132 | 342,466 | 19,666 | ||||
Dividends, Stock | (58,421) | (58,421) | |||||
Payments of Ordinary Dividends, Noncontrolling Interest | (32,369) | (32,369) | |||||
Other comprehensive income (loss), net of tax | 10,883 | ||||||
Other Comprehensive Income (Loss) Change in Current Period | 10,883 | 10,883 | |||||
Allocated equity on common unit issuances, net of tax | (61) | 0 | (61) | ||||
Stock Issued During Period, Value, Employee Benefit Plan | (188) | 188 | |||||
Share-based Compensation | 8,790 | 8,082 | 708 | ||||
Treasury Stock, Value, Acquired, Cost Method | (131,082) | (131,082) | |||||
Adoption of Accounting Standard | 0 | (3,110) | 3,110 | ||||
Stockholders' Equity, Other | (3) | (1) | (2) | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 6,563,512 | 2,560 | 4,199,938 | 4,112,629 | 25,906 | (2,328,747) | 551,226 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 6,459,059 | 2,560 | 4,196,125 | 4,196,902 | 13,623 | (2,490,639) | 540,488 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.33 | ||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 276,486 | 253,055 | 23,431 | ||||
Dividends, Stock | (56,849) | (56,849) | |||||
Payments of Ordinary Dividends, Noncontrolling Interest | (33,673) | (33,673) | |||||
Other comprehensive income (loss), net of tax | 13,775 | 13,775 | |||||
Stock Issued During Period, Value, Employee Benefit Plan | 3 | (3) | |||||
Share-based Compensation | 9,374 | 8,713 | 661 | ||||
Treasury Stock, Value, Acquired, Cost Method | (73,225) | (73,225) | |||||
Payments for Repurchase of Other Equity | (373) | (373) | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 791,283 | ||||||
Other comprehensive income (loss), net of tax | 3,594 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 6,594,574 | 2,560 | 4,204,841 | 4,393,108 | 27,398 | (2,563,867) | 530,534 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.33 | ||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 216,817 | 196,915 | 19,902 | ||||
Dividends, Stock | (56,659) | (56,659) | |||||
Payments of Ordinary Dividends, Noncontrolling Interest | (33,030) | (33,030) | |||||
Other comprehensive income (loss), net of tax | 2,804 | 2,804 | |||||
Allocated equity on common unit issuances, net of tax | (140) | 0 | (140) | ||||
Stock Issued During Period, Value, Employee Benefit Plan | (138) | 138 | |||||
Share-based Compensation | 12,188 | 11,602 | 586 | ||||
Treasury Stock, Value, Acquired, Cost Method | (205,555) | (205,555) | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 6,530,999 | 2,560 | 4,216,305 | 4,533,364 | 30,202 | (2,769,284) | 517,852 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.33 | ||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 297,980 | 261,813 | 36,167 | ||||
Dividends, Stock | (54,500) | (54,500) | |||||
Payments of Ordinary Dividends, Noncontrolling Interest | (33,392) | (33,392) | |||||
Other comprehensive income (loss), net of tax | (12,985) | (12,985) | |||||
Stock Issued During Period, Value, Employee Benefit Plan | (80) | 80 | |||||
Share-based Compensation | 9,073 | 8,545 | 528 | ||||
Treasury Stock, Value, Acquired, Cost Method | (195,812) | (195,812) | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 6,541,363 | $ 2,560 | $ 4,224,770 | $ 4,740,677 | $ 17,217 | $ (2,965,016) | $ 521,155 |
Description of Business and Pre
Description of Business and Presentation of Financial Statements | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description Of Business And Presentation Of Financial Statements | Description of Business and Presentation of Financial Statements 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 Quarterly Report on Form 10-Q 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 an independent petroleum refiner and marketer that produces high-value light products such as gasoline, diesel fuel, jet fuel and other specialty products. We own and operate petroleum refineries that serve markets throughout the Mid-Continent, Southwest and Rocky Mountain regions of the United States. In addition, we produce base oils and other specialized lubricants in the United States, Canada and the Netherlands, with retail and wholesale marketing of our products through a global sales network with locations in Canada, the United States, Europe, China and Latin America. As of September 30, 2019 , 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 Petro-Canada Lubricants Inc. (“PCLI”) located in Mississauga, Ontario, which produces base oils and other specialized lubricant products; • owned and operated Sonneborn with manufacturing facilities in Petrolia, Pennsylvania and the Netherlands; • owned and operated Red Giant Oil Company LLC (“Red Giant Oil”), which supplies locomotive engine oil with storage and distribution facilities in Iowa, Kansas, Utah and Wyoming, along with a blending and packaging facility in Texas; • owned and operated HollyFrontier Asphalt Company LLC (“HFC Asphalt”), which operates various asphalt terminals in Arizona, New Mexico and Oklahoma; and • owned a 57% limited partner interest and a non-economic general partner interest in HEP, a variable interest entity (“VIE”). HEP 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. On November 12, 2018, we entered into an equity purchase agreement to acquire 100% of the issued and outstanding capital stock of Sonneborn US Holdings Inc. and 100% of the membership rights in Sonneborn Coöperatief U.A. (collectively, “Sonneborn”). The acquisition closed on February 1, 2019. On July 10, 2018, we entered into a definitive agreement to acquire Red Giant Oil, a privately-owned lubricants company. The acquisition closed on August 1, 2018. We have prepared these consolidated financial statements without audit. In management’s opinion, these consolidated financial statements include all normal recurring adjustments necessary for a fair presentation of our consolidated financial position as of September 30, 2019 , the consolidated results of operations, comprehensive income and statements of equity for the three and nine months ended September 30, 2019 and 2018 and consolidated cash flows for the nine months ended September 30, 2019 and 2018 in accordance with the rules and regulations of the SEC. Although certain notes and other information required by generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted, we believe that the disclosures in these consolidated financial statements are adequate to make the information presented not misleading. These consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2018 that has been filed with the SEC. Our results of operations for the nine months ended September 30, 2019 are not necessarily indicative of the results of operations to be realized for the year ending December 31, 2019 . 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 $4.4 million at September 30, 2019 and $3.6 million at December 31, 2018 . Inventories: Inventories related to our refining operations 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. 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 of our Petro-Canada Lubricants and Sonneborn businesses are stated at the lower of cost, using the first-in, first-out (“FIFO”) method, or net realizable value. Inventories consisting of process chemicals, materials and maintenance supplies and renewable identification numbers (“RINs”) are stated at the lower of weighted-average cost or net realizable value. Leases: At inception, we determine if an arrangement is or contains a lease. Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our payment obligation under the leasing arrangement. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. We use our estimated incremental borrowing rate (“IBR”) to determine the present value of lease payments as most of our leases do not contain an implicit rate. Our IBR represents the interest rate which we would pay to borrow, on a collateralized basis, an amount equal to the lease payments over a similar term in a similar economic environment. We use the implicit rate when readily determinable. Operating leases are recorded in operating lease right-of-use assets and current and noncurrent operating lease liabilities on our consolidated balance sheet. Finance leases are included in properties, plants and equipment and accrued liabilities and other long-term liabilities on our consolidated balance sheet. Our lease term includes an option to extend the lease when it is reasonably certain that we will exercise that option. Leases with a term of 12 months or less are not recorded on our balance sheet and lease expense is accounted for on a straight-line basis. For certain equipment leases, we apply a portfolio approach for the operating lease ROU assets and liabilities. Also, as a lessee, we separate non-lease components that are identifiable and exclude them from the determination of net present value of lease payment obligations. In addition, HEP, as a lessor, does not separate the non-lease (service) component in contracts in which the lease component is the dominant component. HEP treats these combined components as an operating lease. Goodwill and Long-lived Assets: As of September 30, 2019 , our goodwill balance was $2.4 billion , with goodwill assigned to our Refining, Lubricants and Specialty Products and HEP segments of $1,733.5 million , $324.1 million and $312.9 million , respectively. During the nine months ended September 30, 2019 , we recognized $279.2 million in goodwill as a result of our Sonneborn acquisition, all of which has been assigned to our Lubricants and Specialty Products segment. See Note 17 for additional information on our segments. The carrying amount of our goodwill may fluctuate from period to period due to the effects of foreign currency translation adjustments on goodwill assigned to our Lubricants and Specialty Products segment. Goodwill represents the excess of the cost of an acquired entity over the fair value of the assets acquired and liabilities assumed. Goodwill is not subject to amortization and is tested annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Our goodwill impairment testing first entails either a quantitative assessment or an optional qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If we determine that based on the qualitative factors that it is more likely than not that the fair value of the reporting unit is greater than its carrying amount, a quantitative test is performed in which we estimate the fair value of the related reporting unit. If the carrying amount of a reporting unit exceeds its fair value, the goodwill of that reporting unit is impaired, and we measure goodwill impairment as the excess of the carrying amount of reporting unit over the related fair value. Our long-lived assets principally consist of our refining assets that are organized as refining asset groups and the assets of our Lubricants and Specialty Products asset groups. The 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. Goodwill impairment During the second quarter of 2019, we performed interim goodwill impairment testing of the PCLI reporting unit included in our Lubricants and Specialty Products segment. We elected to perform this interim assessment due to the recent reorganization of our reporting unit structure within the Lubricants and Specialty Products segment, combined with the identification of events and circumstances which were indicators of potential goodwill impairment at PCLI, including recent declines in gross margins to lower than historic levels. These recent lower gross margins are in the base oil market which is largely attributed to the increase in global supply of base oils with a current outlook for continued near-term softness. Our interim goodwill impairment testing was performed as of May 31, 2019. The estimated fair values of our goodwill reporting units within our Lubricants and Specialty Products segment were derived using a combination of both income and market approaches. The income approach reflects expected future cash flows based on estimated future production volumes, selling prices, gross margins, operating costs and capital expenditures. Our market approach includes 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). See Note 6 for further discussion of Level 3 inputs. As a result of our impairment testing, we determined that the carrying value of the PCLI reporting unit’s goodwill within our Lubricants and Specialty Products segment was fully impaired and a goodwill impairment charge of $152.7 million was recorded. Our testing did not identify any other impairments. We performed our annual goodwill impairment testing as of July 1, 2019 and determined there was no additional impairment of goodwill attributable to our reporting units. Revenue Recognition: Revenue on refined product and excess crude oil sales are recognized when delivered (via pipeline, in-tank or rack) and the customer obtains control of such inventory, which is typically when title passes and the customer is billed. 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 as cost of products sold. Additionally, our lubricants and specialty products business has sales agreements with marketers and distributors that provide certain rights of return or provisions for the repurchase of products previously sold to them. Under these agreements, revenues and cost of revenues are deferred until the products have been sold to end customers. Our lubricants and specialty products business also has agreements that create an obligation to deliver products at a future date for which consideration has already been received and recorded as deferred revenue. This revenue is recognized when the products are delivered to the customer. HEP recognizes revenues as products are shipped through its pipelines and terminals and as other services are rendered. Additionally, HEP has certain throughput agreements that specify minimum volume requirements, whereby HEP bills a customer for a minimum level of shipments in the event a customer ships below their contractual requirements. If there are no future performance obligations, HEP recognizes these deficiency payments as revenue. In certain of these throughput agreements, a customer may later utilize such shortfall billings as credit towards future volume shipments in excess of its minimum levels within its respective contractual shortfall make-up period. Such amounts represent an obligation to perform future services, which may be initially deferred and later recognized as revenue based on estimated future shipping levels, including the likelihood of a customer’s ability to utilize such amounts prior to the end of the contractual shortfall make-up period. HEP recognizes the service portion of these deficiency payments as revenue when HEP does not expect it will be required to satisfy these performance obligations in the future based on the pattern of rights exercised by the customer. Payment terms under our contracts with customers are consistent with industry norms and are typically payable within 30 days of the date of invoice. Foreign Currency Translation: Assets and liabilities recorded in foreign currencies are translated into U.S. dollars using exchange rates in effect as of the balance sheet date. Revenue and expense accounts are translated using the weighted-average exchange rates during the period presented. Foreign currency translation adjustments are recorded as a component of accumulated other comprehensive income. In connection with our PCLI acquisition on February 1, 2017, we issued intercompany notes to initially fund certain of our foreign businesses. Remeasurement adjustments resulting from the conversion of such intercompany financing amounts to functional currencies are recorded as gains and losses as a component of other income (expense) in the income statement. Such adjustments are not recorded to the Lubricants and Specialty Products segment operations, but to Corporate and Other. See Note 17 for additional information on our segments. Income Taxes : Provisions for income taxes include deferred taxes resulting from temporary differences in income for financial and tax purposes, using the liability method of accounting for income taxes. The liability method requires the effect of tax rate changes on deferred income taxes to be reflected in the period in which the rate change was enacted. The liability method also requires that deferred tax assets be reduced by a valuation allowance unless it is more likely than not that the assets will be realized. Potential interest and penalties related to income tax matters are recognized in income tax expense. We believe we have appropriate support for the income tax positions taken and to be taken on our income tax returns and that our accruals for tax liabilities are adequate for all open years based on an assessment of many factors, including past experience and interpretations of tax law applied to the facts of each matter. 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 nine months ended September 30, 2019 and 2018 , we received proceeds of $13.2 million and $38.4 million , respectively, and repaid $12.5 million and $39.3 million , respectively, under these sell / buy transactions. Accounting Pronouncements - Recently Adopted Goodwill Impairment Testing In January 2017, Accounting Standard Update (“ASU”) 2017-04, “Simplifying the Test for Goodwill Impairment,” was issued amending the testing for goodwill impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. We adopted this standard effective in the second quarter of 2019, and the adoption of this standard resulted in no change to the amount of goodwill impairment recorded in the second quarter of 2019. Leases In February 2016, ASU 2016-02, “Leases,” was issued requiring leases to be measured and recognized as a lease liability, with a corresponding ROU asset on the balance sheet. We adopted this standard effective January 1, 2019 using the optional transition method, whereby comparative prior period financial information will not be restated and will continue to be reported under the lease accounting standard in effect during those periods. We also elected practical expedients provided by the new standard, including the package of practical expedients, whereby we did not reassess lease classification or initial indirect lease cost under the new standard. In addition, we elected to exclude short-term leases, which at inception have a lease term of 12 months or less, from the amounts recognized on our balance sheet. In addition, HEP elected an expedient whereby a lessor does not have to separate non-lease (service) components from lease components under certain contracts. Under this expedient, HEP treated the combined components of its leases with third parties (i.e., the contracts that are not eliminated upon consolidation of HEP by HFC) as an operating lease in which the dominant component was a lease in accordance with ASC 842. Upon adoption of this standard, we recognized $433.4 million of lease liabilities and corresponding ROU assets on our consolidated balance sheet. Adoption of this standard did not have a material impact on our results of operations or cash flows. In addition, upon our acquisition of Sonneborn on February 1, 2019, we recognized $15.6 million of lease liabilities and corresponding ROU assets. Accounting Pronouncements - Not Yet Adopted Credit Losses Measurement In June 2016, ASU 2016-13, “Measurement of Credit Losses on Financial Instruments,” was issued requiring measurement of all expected credit losses for certain types of financial instruments, including trade receivables, held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. This standard is effective January 1, 2020, and our preliminary review of historic and expected credit losses indicates the amount of expected credit losses upon adoption would not be materially different from the current allowance for doubtful accounts balance. |
Acquisitions (Notes)
Acquisitions (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Mergers, Acquisitions and Dispositions Disclosures | Acquisitions On November 12, 2018, we entered into an equity purchase agreement to acquire 100% of the capital stock of Sonneborn. The acquisition closed on February 1, 2019. Sonneborn is a producer of specialty hydrocarbon chemicals such as white oils, petrolatums and waxes with manufacturing facilities in the United States and Europe. Aggregate consideration totaled $701.6 million and consisted of $662.7 million in cash paid at acquisition, net of cash acquired. Working capital settlement pursuant to the purchase agreement has been finalized. This transaction is accounted for as a business combination using the acquisition method of accounting, with the purchase price allocated to the fair value of the acquired Sonneborn assets and liabilities as of the February 1 acquisition date, with the excess purchase price recorded as goodwill assigned to our Lubricants and Specialty Products segment. The following summarizes our preliminary value estimates of the Sonneborn assets and liabilities acquired on February 1, 2019: (In millions) Cash and cash equivalents $ 38.9 Accounts receivable and other current assets 58.6 Inventories 81.0 Properties, plants and equipment 168.2 Goodwill 279.2 Intangibles and other noncurrent assets 231.5 Accounts payable and accrued liabilities (47.0 ) Deferred income tax liabilities (84.5 ) Other long-term liabilities (24.3 ) $ 701.6 The preliminary purchase price allocation resulted in the recognition of $279.2 million in goodwill, which relates to the established workforce and global market presence of the acquired business as well as the expected synergies to be gained upon combining with our existing operations to form an expanded lubricants and specialty products business. Intangibles include customer relationships, trademarks, patents and technical know-how totaling $214.6 million that are being amortized on a straight-line basis over a 12 -year period. These values, including deferred taxes, are preliminary and, therefore, may change once we complete our valuations. Our consolidated financial and operating results reflect the Sonneborn operations beginning February 1, 2019. Our results of operations for the three months ended September 30, 2019 included revenues and income before income taxes of $88.1 million and $6.6 million , respectively, and revenue and income before income taxes of $253.5 million and $5.0 million , respectively, for the period from February 1, 2019 through September 30, 2019 related to these operations. As of September 30, 2019 , we have incurred $20.1 million in incremental direct integration and regulatory costs that principally relate to legal, advisory, regulatory and other professional fees and are presented as selling, general and administrative expenses. The following unaudited pro forma information for the nine months ended September 30, 2019 and the three and nine months ended September 30, 2018 presents the revenues and operating income for our Lubricants and Specialty Products segment assuming the acquisition of Sonneborn had occurred as of January 1, 2018. The proforma effects on consolidated HFC revenue and operating income are not material. Three Months Ended Nine Months Ended 2018 2019 2018 (In thousands) Sales and other revenues $ 571,685 $ 1,608,648 $ 1,679,554 Operating income (1) $ 39,496 $ (127,972 ) $ 110,424 (1) For the nine months ended September 30, 2019 , includes goodwill impairment of $152.7 million from the PCLI reporting unit of our Lubricants and Specialty Products segment. See Note 1 for additional information on this goodwill impairment. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases | Leases We have operating and finance leases for land, buildings, pipelines, storage tanks, transportation and other equipment for our operations. Our leases have remaining terms of one to 60 years , some of which include options to extend the leases for up to 10 years . Certain of our leases for pipeline assets include provisions for variable payments which are based on a measure of throughput and also contain a provision for the lessor to adjust the rate per barrel periodically over the life of the lease. These variable costs are not included in the initial measurement of ROU assets and lease liabilities. The following table presents the amounts and balance sheet locations of our operating and financing leases recorded on our consolidated balance sheet. September 30, 2019 (In thousands) Operating leases: Operating lease right-of-use assets $ 453,377 Operating lease liabilities 99,622 Noncurrent operating lease liabilities 355,410 Total operating lease liabilities $ 455,032 Finance leases: Properties, plants and equipment, at cost $ 12,830 Accumulated amortization (6,375 ) Properties, plants and equipment, net $ 6,455 Accrued liabilities $ 1,663 Other long-term liabilities 4,929 Total finance lease liabilities $ 6,592 Supplemental balance sheet information related to our leases was as follows: September 30, 2019 Weighted average remaining lease term (in years) Operating leases 7.6 Finance leases 8.2 Weighted average discount rate Operating leases 4.2 % Finance leases 5.3 % The components of lease expense were as follows: Three Months Ended Nine Months Ended (In thousands) Operating lease expense $ 28,263 $ 83,646 Finance lease expense: Amortization of right-of-use assets 375 1,150 Interest on lease liabilities 84 255 Variable lease cost 1,862 3,251 Total lease expense $ 30,584 $ 88,302 Supplemental cash flow information related to leases was as follows: Nine Months Ended (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 88,500 Operating cash flows from finance leases $ 255 Financing cash flows from finance leases $ 1,158 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 80,211 As of September 30, 2019 , minimum future lease payments of our operating and finance lease obligations were as follows: Operating Finance (In thousands) Remainder of 2019 $ 29,036 $ 500 2020 107,362 1,945 2021 89,194 1,123 2022 75,923 859 2023 70,194 895 2024 and thereafter 172,200 2,772 Future minimum lease payments 543,909 8,094 Less: imputed interest 88,877 1,502 Total lease obligations 455,032 6,592 Less: current obligations 99,622 1,663 Long-term lease obligations $ 355,410 $ 4,929 As of September 30, 2019 , we have entered into certain leases that have not yet commenced. Such leases include a 15 -year lease for plant equipment, with estimated future lease payments of $6.8 million , expected to commence in the second quarter of 2020, and a 5 -year lease for office equipment, with estimated future lease payments of $0.4 million , expected to commence in the fourth quarter of 2019. Our consolidated income statement reflects lease revenue recognized by HEP for contracts with third parties in which HEP is the lessor. Lease income recognized was as follows: Three Months Ended Nine Months Ended (In thousands) Operating lease revenues $ 8,374 $ 24,840 Annual minimum undiscounted lease payments in which HEP is a lessor to third-party contracts as of September 30, 2019 were as follows: (In thousands) Remainder of 2019 $ 8,010 2020 17,542 2021 12,794 2022 11,376 2023 11,248 Thereafter 14,060 Total $ 75,030 |
Lessor, Operating Leases | Leases We have operating and finance leases for land, buildings, pipelines, storage tanks, transportation and other equipment for our operations. Our leases have remaining terms of one to 60 years , some of which include options to extend the leases for up to 10 years . Certain of our leases for pipeline assets include provisions for variable payments which are based on a measure of throughput and also contain a provision for the lessor to adjust the rate per barrel periodically over the life of the lease. These variable costs are not included in the initial measurement of ROU assets and lease liabilities. The following table presents the amounts and balance sheet locations of our operating and financing leases recorded on our consolidated balance sheet. September 30, 2019 (In thousands) Operating leases: Operating lease right-of-use assets $ 453,377 Operating lease liabilities 99,622 Noncurrent operating lease liabilities 355,410 Total operating lease liabilities $ 455,032 Finance leases: Properties, plants and equipment, at cost $ 12,830 Accumulated amortization (6,375 ) Properties, plants and equipment, net $ 6,455 Accrued liabilities $ 1,663 Other long-term liabilities 4,929 Total finance lease liabilities $ 6,592 Supplemental balance sheet information related to our leases was as follows: September 30, 2019 Weighted average remaining lease term (in years) Operating leases 7.6 Finance leases 8.2 Weighted average discount rate Operating leases 4.2 % Finance leases 5.3 % The components of lease expense were as follows: Three Months Ended Nine Months Ended (In thousands) Operating lease expense $ 28,263 $ 83,646 Finance lease expense: Amortization of right-of-use assets 375 1,150 Interest on lease liabilities 84 255 Variable lease cost 1,862 3,251 Total lease expense $ 30,584 $ 88,302 Supplemental cash flow information related to leases was as follows: Nine Months Ended (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 88,500 Operating cash flows from finance leases $ 255 Financing cash flows from finance leases $ 1,158 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 80,211 As of September 30, 2019 , minimum future lease payments of our operating and finance lease obligations were as follows: Operating Finance (In thousands) Remainder of 2019 $ 29,036 $ 500 2020 107,362 1,945 2021 89,194 1,123 2022 75,923 859 2023 70,194 895 2024 and thereafter 172,200 2,772 Future minimum lease payments 543,909 8,094 Less: imputed interest 88,877 1,502 Total lease obligations 455,032 6,592 Less: current obligations 99,622 1,663 Long-term lease obligations $ 355,410 $ 4,929 As of September 30, 2019 , we have entered into certain leases that have not yet commenced. Such leases include a 15 -year lease for plant equipment, with estimated future lease payments of $6.8 million , expected to commence in the second quarter of 2020, and a 5 -year lease for office equipment, with estimated future lease payments of $0.4 million , expected to commence in the fourth quarter of 2019. Our consolidated income statement reflects lease revenue recognized by HEP for contracts with third parties in which HEP is the lessor. Lease income recognized was as follows: Three Months Ended Nine Months Ended (In thousands) Operating lease revenues $ 8,374 $ 24,840 Annual minimum undiscounted lease payments in which HEP is a lessor to third-party contracts as of September 30, 2019 were as follows: (In thousands) Remainder of 2019 $ 8,010 2020 17,542 2021 12,794 2022 11,376 2023 11,248 Thereafter 14,060 Total $ 75,030 |
Lessee, Finance Leases | Leases We have operating and finance leases for land, buildings, pipelines, storage tanks, transportation and other equipment for our operations. Our leases have remaining terms of one to 60 years , some of which include options to extend the leases for up to 10 years . Certain of our leases for pipeline assets include provisions for variable payments which are based on a measure of throughput and also contain a provision for the lessor to adjust the rate per barrel periodically over the life of the lease. These variable costs are not included in the initial measurement of ROU assets and lease liabilities. The following table presents the amounts and balance sheet locations of our operating and financing leases recorded on our consolidated balance sheet. September 30, 2019 (In thousands) Operating leases: Operating lease right-of-use assets $ 453,377 Operating lease liabilities 99,622 Noncurrent operating lease liabilities 355,410 Total operating lease liabilities $ 455,032 Finance leases: Properties, plants and equipment, at cost $ 12,830 Accumulated amortization (6,375 ) Properties, plants and equipment, net $ 6,455 Accrued liabilities $ 1,663 Other long-term liabilities 4,929 Total finance lease liabilities $ 6,592 Supplemental balance sheet information related to our leases was as follows: September 30, 2019 Weighted average remaining lease term (in years) Operating leases 7.6 Finance leases 8.2 Weighted average discount rate Operating leases 4.2 % Finance leases 5.3 % The components of lease expense were as follows: Three Months Ended Nine Months Ended (In thousands) Operating lease expense $ 28,263 $ 83,646 Finance lease expense: Amortization of right-of-use assets 375 1,150 Interest on lease liabilities 84 255 Variable lease cost 1,862 3,251 Total lease expense $ 30,584 $ 88,302 Supplemental cash flow information related to leases was as follows: Nine Months Ended (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 88,500 Operating cash flows from finance leases $ 255 Financing cash flows from finance leases $ 1,158 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 80,211 As of September 30, 2019 , minimum future lease payments of our operating and finance lease obligations were as follows: Operating Finance (In thousands) Remainder of 2019 $ 29,036 $ 500 2020 107,362 1,945 2021 89,194 1,123 2022 75,923 859 2023 70,194 895 2024 and thereafter 172,200 2,772 Future minimum lease payments 543,909 8,094 Less: imputed interest 88,877 1,502 Total lease obligations 455,032 6,592 Less: current obligations 99,622 1,663 Long-term lease obligations $ 355,410 $ 4,929 As of September 30, 2019 , we have entered into certain leases that have not yet commenced. Such leases include a 15 -year lease for plant equipment, with estimated future lease payments of $6.8 million , expected to commence in the second quarter of 2020, and a 5 -year lease for office equipment, with estimated future lease payments of $0.4 million , expected to commence in the fourth quarter of 2019. Our consolidated income statement reflects lease revenue recognized by HEP for contracts with third parties in which HEP is the lessor. Lease income recognized was as follows: Three Months Ended Nine Months Ended (In thousands) Operating lease revenues $ 8,374 $ 24,840 Annual minimum undiscounted lease payments in which HEP is a lessor to third-party contracts as of September 30, 2019 were as follows: (In thousands) Remainder of 2019 $ 8,010 2020 17,542 2021 12,794 2022 11,376 2023 11,248 Thereafter 14,060 Total $ 75,030 |
Holly Energy Partners
Holly Energy Partners | 9 Months Ended |
Sep. 30, 2019 | |
Holly Energy Partners [Abstract] | |
Holly Energy Partners | Holly Energy Partners HEP 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 Delek’s refinery in Big Spring, Texas. Additionally, as of September 30, 2019, HEP owned a 75% interest in UNEV Pipeline, LLC (“UNEV”), the owner of a pipeline running from Woods Cross, Utah to Las Vegas, Nevada (the “UNEV Pipeline”) and associated product terminals, and had a 50% ownership interest in each of Osage Pipe Line Company, LLC, the owner of a pipeline running from Cushing, Oklahoma to El Dorado, Kansas (the “Osage Pipeline”) and Cheyenne Pipeline, LLC, the owner of a pipeline running from Fort Laramie, Wyoming to Cheyenne, Wyoming (the “Cheyenne Pipeline”). As of September 30, 2019 , we owned a 57% limited partner interest and a non-economic general partner interest in HEP. 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 as HEP's primary beneficiary, we consolidate HEP. HEP has two primary customers (including us) and generates revenues by charging tariffs for transporting petroleum products and crude oil through its pipelines, by charging fees for terminalling refined products and other hydrocarbons, and by 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 78% of HEP’s total revenues for the nine months ended September 30, 2019 . 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 11 for a description of HEP’s debt obligations. HEP has risk associated with its operations. If a major customer of HEP were to terminate its contracts or fail to meet desired shipping or throughput levels for an extended period of time, revenue would be reduced and HEP could suffer substantial losses to the extent that a new customer is not found. In the event that HEP incurs a loss, our operating results will reflect HEP’s loss, net of intercompany eliminations, to the extent of our ownership interest in HEP at that point in time. HEP Private Placement Agreements On January 25, 2018, HEP entered into a common unit purchase agreement in which certain purchasers agreed to purchase in a private placement 3,700,000 HEP common units, representing limited partner interests, at a price of $29.73 per common unit. The private placement closed on February 6, 2018, at which time HEP received proceeds of $110.0 million , which were used to repay indebtedness under the HEP Credit Agreement. HEP Common Unit Continuous Offering Program In May 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 . During the nine months ended September 30, 2019 , HEP did not issue any common units under this program. As of September 30, 2019 , HEP has issued 2,413,153 common units under this program, providing $82.3 million in gross proceeds. 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 these transactions 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. Cushing Connect Joint Venture On October 2, 2019, HEP Cushing (“HEP Cushing”), a wholly-owned subsidiary of HEP, and Plains Marketing, L.P. (“PMLP”), a wholly-owned subsidiary of Plains All American Pipeline, L.P. (“Plains”), formed a 50/50 joint venture, Cushing Connect Pipeline & Terminal LLC (the “Joint Venture”), for (i) the development and construction of a new 160,000 barrel per day common carrier crude oil pipeline (the “Pipeline”) that will connect the Cushing, Oklahoma crude oil hub to our Tulsa Refineries and (ii) the ownership and operation of 1.5 million barrels of crude oil storage in Cushing, Oklahoma (the “JV Terminal”). The JV Terminal is expected to be in service during the second quarter of 2020, and the Pipeline is expected to be in service during the first quarter of 2021. Long-term commercial agreements have been entered into to support the Joint Venture assets. The Joint Venture will contract with an affiliate of HEP to manage the construction and operation of the Pipeline and with an affiliate of Plains to manage the operation of the JV Terminal. The total Joint Venture investment will be shared proportionately among the partners, and HEP estimates its share of the cost of the JV Terminal contributed by Plains and Pipeline construction costs are approximately $65.0 million . Transportation Agreements HEP serves our refineries under long-term pipeline, terminal and tankage throughput agreements and refinery processing tolling agreements expiring from 2021 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 pipeline, 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 September 30, 2019, these agreements result in minimum annualized payments to HEP of $349.0 million . Our transactions with HEP and fees paid under our transportation agreements with HEP and UNEV are eliminated and have no impact on our consolidated financial statements. |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from Contracts with Customers | Revenues Substantially all revenue-generating activities relate to sales of refined product and excess crude oil inventories sold at market prices (variable consideration) under contracts with customers. Additionally, we have revenues attributable to HEP logistics services provided under petroleum product and crude oil pipeline transportation, processing, storage and terminalling agreements with third parties. Disaggregated revenues were as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 (In thousands) Revenues by type Refined product revenues Transportation fuels (1) $ 3,354,927 $ 3,598,815 $ 9,796,334 $ 10,193,218 Specialty lubricant products (2) 461,669 422,760 1,413,194 1,237,002 Asphalt, fuel oil and other products (3) 299,305 288,013 767,023 741,139 Total refined product revenues 4,115,901 4,309,588 11,976,551 12,171,359 Excess crude oil revenues (4) 264,675 422,122 997,988 1,074,928 Transportation and logistic services 29,868 25,596 89,388 77,799 Other revenues (5) 14,384 13,493 40,763 46,376 Total sales and other revenues $ 4,424,828 $ 4,770,799 $ 13,104,690 $ 13,370,462 Three Months Ended Nine Months Ended 2019 2018 2019 2018 (In thousands) Refined product revenues by market United States Mid-Continent $ 2,191,014 $ 2,337,689 $ 6,283,488 $ 6,458,935 Southwest 913,326 1,016,771 2,772,281 2,865,324 Rocky Mountains 611,003 627,542 1,739,401 1,869,414 Northeast 151,919 85,344 427,926 261,380 Canada 184,784 190,727 536,911 563,088 Europe, Asia and Latin America 63,855 51,515 216,544 153,218 Total refined product revenues $ 4,115,901 $ 4,309,588 $ 11,976,551 $ 12,171,359 (1) Transportation fuels consist of gasoline, diesel and jet fuel. (2) Specialty lubricant products consist of base oil, waxes, finished lubricants and other specialty fluids. (3) Asphalt, fuel oil and other products revenue include revenues attributable to our Refining and Lubricants and Specialty Products segments of $231.4 million and $67.9 million , respectively, for the three months ended September 30, 2019 , $612.0 million and $155.0 million , respectively, for the nine months ended September 30, 2019 , $234.9 million and $53.1 million , respectively, for the three months ended September 30, 2018 , and $589.7 million and $151.4 million , respectively, for the nine months ended September 30, 2018 . (4) Excess crude oil revenues represent sales of purchased crude oil inventory that at times exceeds the supply needs of our refineries. (5) Other revenues are principally attributable to our Refining segment. Our consolidated balance sheet reflects contract liabilities related to unearned revenues attributable to future service obligations under HEP’s third-party transportation agreements and production agreements from the acquisition of Sonneborn on February 1, 2019. The following table presents changes to our contract liabilities during the nine months ended September 30, 2019 . January 1, 2019 Sonneborn Acquisition Increase Recognized as Revenue September 30, 2019 (In thousands) Accrued liabilities $ 132 6,463 $ 19,255 $ (21,135 ) $ 4,715 As of September 30, 2019 , we have long-term contracts with customers that specify minimum volumes of gasoline, diesel, lubricants and specialty products to be sold ratably at market prices through 2021. Such volumes are typically nominated in the month preceding delivery and delivered ratably throughout the following month. Future prices are subject to market fluctuations and therefore, we have elected the exemption to exclude variable consideration under these contracts under Accounting Standards Codification 606-10-50-14A. Aggregate minimum volumes expected to be sold (future performance obligations) under our long-term product sales contracts with customers are as follows: Remainder of 2019 2020 2021 Thereafter Total (In thousands) Refined product sales volumes (barrels) 5,610 7,964 1,847 — 15,421 Additionally, HEP has long-term contracts with third-party customers that specify minimum volumes of product to be transported through its pipelines and terminals that result in fixed-minimum annual revenues through 2022. Annual minimum revenues attributable to HEP’s third-party contracts as of September 30, 2019 are presented below: Remainder of 2019 2020 2021 Thereafter Total (In thousands) HEP contractual minimum revenues $ 10,695 $ 28,238 $ 22,822 $ 38,575 $ 100,330 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Fair Value Measurements | Fair Value Measurements Our financial instruments measured at fair value on a recurring basis consist of derivative instruments and RINs credit obligations. Fair value measurements are derived using inputs (assumptions that market participants would use in pricing an asset or liability, including assumptions about risk). GAAP categorizes inputs used in fair value measurements into three broad levels as follows: • (Level 1) Quoted prices in active markets for identical assets or liabilities. • (Level 2) Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, similar assets and liabilities in markets that are not active or can be corroborated by observable market data. • (Level 3) Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes valuation techniques that involve significant unobservable inputs. The carrying amounts of derivative instruments and RINs credit obligations at September 30, 2019 and December 31, 2018 were as follows: Fair Value by Input Level Carrying Amount Level 1 Level 2 Level 3 (In thousands) September 30, 2019 Assets: NYMEX futures contracts $ 2,976 $ 2,976 $ — $ — Foreign currency forward contracts 2,511 — 2,511 — Commodity price swaps 18,007 — 18,007 — Commodity forward contracts 1,453 — 1,453 — Total assets $ 24,947 $ 2,976 $ 21,971 $ — Liabilities: Foreign currency forward contracts $ 17 $ — $ 17 $ — Commodity price swaps 1,094 — 1,094 — Commodity forward contracts 1,367 — 1,367 — Total liabilities $ 2,478 $ — $ 2,478 $ — Fair Value by Input Level Financial Instrument Carrying Amount Level 1 Level 2 Level 3 (In thousands) December 31, 2018 Assets: NYMEX futures contracts $ 2,473 $ 2,473 $ — $ — Foreign currency forward contracts 25,956 — 25,956 — Commodity price swaps 10,817 — 10,817 — Commodity forward contracts 1,034 — 1,034 $ — Total assets $ 40,280 $ 2,473 $ 37,807 $ — Liabilities: Commodity price swaps $ 956 $ — $ 956 $ — Commodity forward contracts 1,137 — 1,137 — RINs credit obligations (1) 4,084 — 4,084 — Total liabilities $ 6,177 $ — $ 6,177 $ — (1) Represent obligations for RINs credits for which we did not have sufficient quantities at December 31, 2018 to satisfy our Environmental Protection Agency (“EPA”) regulatory blending requirements. Level 1 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 Instruments |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is calculated as net income attributable to HollyFrontier stockholders divided by the average number of shares of common stock outstanding. Diluted earnings per share assumes, when dilutive, the issuance of the net incremental shares from restricted shares and performance share units. The following is a reconciliation of the denominators of the basic and diluted per share computations for net income attributable to HollyFrontier stockholders: Three Months Ended Nine Months Ended 2019 2018 2019 2018 (In thousands, except per share data) Net income attributable to HollyFrontier stockholders $ 261,813 $ 342,466 $ 711,783 $ 956,064 Participating securities’ (restricted stock) share in earnings 385 1,171 1,033 3,321 Net income attributable to common shares $ 261,428 $ 341,295 $ 710,750 $ 952,743 Average number of shares of common stock outstanding 163,676 175,097 167,935 175,865 Effect of dilutive variable restricted shares and performance share units (1) 1,335 1,830 1,190 1,692 Average number of shares of common stock outstanding assuming dilution 165,011 176,927 169,125 177,557 Basic earnings per share $ 1.60 $ 1.95 $ 4.23 $ 5.42 Diluted earnings per share $ 1.58 $ 1.93 $ 4.20 $ 5.37 (1) Excludes anti-dilutive restricted and performance share units of: 109 — 120 2 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation We have a principal share-based compensation plan (the “Long-Term Incentive Compensation Plan”). The compensation cost charged against income for the plan was $9.2 million and $8.1 million for the three months ended September 30, 2019 and 2018 , respectively, and $30.0 million and $23.8 million for the nine months ended September 30, 2019 and 2018 , 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 $0.5 million and $0.7 million for the three months ended September 30, 2019 and 2018 , respectively, and $1.8 million and $2.3 million for the nine months ended September 30, 2019 and 2018 , respectively. Restricted Stock and Restricted Stock Units Under our Long-Term Incentive Compensation Plan, we grant certain officers and other key employees restricted stock unit awards with awards generally vesting over a period of three years. We previously granted restricted stock to certain officers and key employees with awards vesting over a period of three years. Certain restricted stock unit award recipients have the right to receive dividends, however, restricted stock units do not have any other rights of absolute ownership. 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 stock and restricted stock units lapse at which time they convert to common shares or cash. 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. We account for forfeitures on an estimated basis. A summary of restricted stock and restricted stock unit activity during the nine months ended September 30, 2019 is presented below: Restricted Stock and Restricted Stock Units Grants Weighted Average Grant Date Fair Value Aggregate Intrinsic Value ($000) Outstanding at January 1, 2019 (non-vested) 1,196,914 $ 46.81 Granted 45,006 52.97 Vesting (transfer/conversion to common stock) (17,374 ) 49.32 Forfeited (38,600 ) 47.97 Outstanding at September 30, 2019 (non-vested) 1,185,946 46.97 $ 63,614 For the nine months ended September 30, 2019 , restricted stock and restricted stock units vested having a grant date fair value of $0.9 million . As of September 30, 2019 , there was $14.4 million of total unrecognized compensation cost related to non-vested restricted stock and restricted stock unit grants. That cost is expected to be recognized over a weighted-average period of 1.0 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 or cash 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. A summary of performance share unit activity during the nine months ended September 30, 2019 is presented below: Performance Share Units Grants Outstanding at January 1, 2019 (non-vested) 662,431 Granted 6,086 Forfeited (4,516 ) Outstanding at September 30, 2019 (non-vested) 664,001 As of September 30, 2019 , there was $7.9 million of total unrecognized compensation cost related to non-vested performance share units having a grant date fair value of $47.24 per unit. That cost is expected to be recognized over a weighted-average period of 0.9 years. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2019 | |
Inventory, Net [Abstract] | |
Inventories | Inventories Inventories consist of the following components: September 30, December 31, 2018 (In thousands) Crude oil $ 472,932 $ 503,705 Other raw materials and unfinished products (1) 306,504 360,124 Finished products (2) 860,130 662,713 Lower of cost or market reserve (209,655 ) (360,138 ) Process chemicals (3) 29,040 31,413 Repair and maintenance supplies and other (4) 178,108 156,562 Total inventory $ 1,637,059 $ 1,354,379 (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. Our inventories that are valued at the lower of LIFO cost or market reflect a valuation reserve of $209.7 million and $360.1 million at September 30, 2019 and December 31, 2018 , respectively. The December 31, 2018 market reserve of $360.1 million was reversed due to the sale of inventory quantities that gave rise to the 2018 reserve. A new market reserve of $209.7 million was established as of September 30, 2019 based on market conditions and prices at that time. The effect of the change in lower of cost or market reserve was an increase to cost of products sold totaling $34.1 million and $17.8 million for the three months ended September 30, 2019 and 2018 , respectively, and a decrease to cost of products sold totaling $150.5 million and $192.9 million for the nine months ended September 30, 2019 and 2018 , respectively. At September 30, 2019 , the LIFO value of inventory, net of the lower of cost or market reserve, was equal to current costs. During the three months ended September 30, 2019, the EPA granted the Cheyenne Refinery and the Woods Cross Refinery each a one-year small refinery exemption from the Renewable Fuel Standard (“RFS”) program requirements for the 2018 calendar year end. As a result, the Cheyenne Refinery’s and the Woods Cross Refinery’s gasoline and diesel production are not subject to the Renewable Volume Obligation (“RVO”) for 2018. In the third quarter of 2019, we increased our inventory of RINs and reduced our cost of products sold by $36.6 million representing the net cost of the RINs charge to cost of products sold in 2018, less the loss incurred for selling 2018 vintage RINs in excess of those which we can use subject to the 20% carryover limit. During the three months ended June 30, 2018, the EPA granted the Woods Cross Refinery a one-year small refinery exemption from the RFS program requirements for the 2017 calendar year end. As a result, the Woods Cross Refinery’s gasoline and diesel production are not subject to the RVO for 2017. In the second quarter of 2018, we increased our inventory of RINs and reduced our cost of products sold by $25.3 million , representing the net cost of the Woods Cross Refinery’s RINs charge to cost of products sold in 2017, less the loss incurred for selling 2017 vintage RINs in excess of those which we can use subject to the 20% carryover limit. During the three months ended March 31, 2018, the EPA granted the Cheyenne Refinery a one-year small refinery exemption from the RFS program requirements for the 2015 and 2017 calendar years end. As a result, the Cheyenne Refinery’s gasoline and diesel production are not subject to the RVO for those years. At the date we received the 2017 Cheyenne Refinery exemption, we had not yet retired RINs to satisfy the 2017 RVO, which we intended to satisfy, in part, with 2016 vintage RINs subject to the 20% carryover limit. In the first quarter of 2018, we increased our inventory of RINs and reduced our cost of products sold by $37.9 million , representing the net cost of the Cheyenne Refinery’s RINs charged to cost of products sold in 2017, less the loss incurred from selling 2016 vintage RINs prior to their expiration in 2018. In the first quarter of 2018, the EPA provided us 2018 vintage RINs to replace the RINs previously submitted to meet the Cheyenne Refinery’s 2015 RVO. In the first quarter of 2018, we increased our inventory of RINs and reduced our cost of products sold by $33.8 million representing the fair value of the 2018 replacement RINs obtained from the Cheyenne Refinery’s exemption of its 2015 RVO. Various subsidiaries of HollyFrontier have intervened in three lawsuits brought by renewable fuel interest groups against the EPA in federal appellate courts alleging violations of the RFS under the Clean Air Act and challenging the EPA’s handling of small refinery exemptions. We believe the EPA correctly applied applicable law to the matters at issue and will vigorously defend the EPA’s position on small refinery exemptions. It is too early to assess whether the cases are expected to have any impact on us. |
Environmental
Environmental | 9 Months Ended |
Sep. 30, 2019 | |
Environmental Expense and Liabilities [Abstract] | |
Environmental | Environmental Environmental costs are charged to operating expenses if they relate to an existing condition caused by past operations and do not contribute to current or future revenue generation. We have ongoing investigations of environmental matters at various locations and routinely assess our recorded environmental obligations, if any, with respect to such matters. 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 cleanup 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. We incurred expense of $1.8 million and $3.3 million for the three months ended September 30, 2019 and 2018 , respectively, and $5.5 million and $4.9 million for the nine months ended September 30, 2019 and 2018 , respectively, for environmental remediation obligations. The accrued environmental liability reflected in our consolidated balance sheets was $109.9 million and $110.2 million at September 30, 2019 and December 31, 2018 , respectively, of which $92.4 million and $93.8 million , respectively, were classified as other long-term liabilities. These accruals include remediation and monitoring costs expected to be incurred over an extended period of time (up to 30 years for certain projects). Estimated liabilities could increase in the future when the results of ongoing investigations become known, are considered probable and can be reasonably estimated. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt HollyFrontier Credit Agreement We have a $1.35 billion senior unsecured revolving credit facility maturing in February 2022 (the “HollyFrontier Credit Agreement”). 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. At September 30, 2019 , we were in compliance with all covenants, had no outstanding borrowings and had outstanding letters of credit totaling $4.9 million under the HollyFrontier Credit Agreement. HEP Credit Agreement HEP has a $1.4 billion senior secured revolving credit facility maturing in July 2022 (the “HEP Credit Agreement”) and is available to fund capital expenditures, investments, acquisitions, distribution payments, working capital and for general partnership purposes. It is also available to fund letters of credit up to a $50 million sub-limit and has a $300 million accordion. During the nine months ended September 30, 2019 , HEP received advances totaling $269.5 million and repaid $257.0 million under the HEP Credit Agreement. At September 30, 2019 , HEP was in compliance with all of its covenants, had outstanding borrowings of $935.5 million and no outstanding letters of credit under the HEP Credit Agreement. HEP’s obligations under the HEP Credit Agreement are collateralized by substantially all of HEP’s assets and are guaranteed by HEP’s material 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 Our 5.875% senior notes ( $1 billion aggregate principal amount 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. HollyFrontier Financing Arrangements In December 2018, certain of our wholly-owned subsidiaries entered into financing arrangements whereby such subsidiaries sold a portion of their precious metals catalyst to a financial institution and then leased back the precious metals catalyst in exchange for total cash received of $32.5 million . The volume of the precious metals catalyst and the lease rate are fixed over the one-year term of each lease, and the lease payments are recorded as interest expense. At maturity, we must repurchase the precious metals catalyst at its then fair market value. These financing arrangements are recorded at a Level 2 fair value totaling $36.5 million at September 30, 2019 and are included in “Accrued liabilities” in our consolidated balance sheets. See Note 6 for additional information on Level 2 inputs. HEP Senior Notes HEP’s 6.0% senior notes ( $500 million aggregate principal amount maturing August 2024) (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. Indebtedness under the HEP Senior Notes is guaranteed by HEP’s wholly-owned subsidiaries. HEP’s creditors have no recourse to our 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: September 30, December 31, (In thousands) HollyFrontier 5.875% Senior Notes Principal $ 1,000,000 $ 1,000,000 Unamortized discount and debt issuance costs (6,635 ) (7,360 ) 993,365 992,640 HEP Credit Agreement 935,500 923,000 HEP 6% Senior Notes Principal 500,000 500,000 Unamortized discount and debt issuance costs (3,631 ) (4,100 ) 496,369 495,900 Total HEP long-term debt 1,431,869 1,418,900 Total long-term debt $ 2,425,234 $ 2,411,540 The fair values of the senior notes are as follows: September 30, December 31, (In thousands) HollyFrontier senior notes $ 1,121,460 $ 1,019,160 HEP senior notes $ 523,220 $ 488,310 These fair values are based on a Level 2 input. See Note 6 for additional information on Level 2 inputs. We capitalized interest attributable to construction projects of $0.7 million and $1.3 million for the three months ended September 30, 2019 and 2018 , respectively, and $1.8 million and $3.3 million for the nine months ended September 30, 2019 and 2018 , respectively. |
Derivative Instruments And Hedg
Derivative Instruments And Hedging Activities | 9 Months Ended |
Sep. 30, 2019 | |
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, sales prices of refined products and crude oil costs. Foreign Currency Risk Management We are exposed to market risk related to the volatility in foreign currency exchange rates. We periodically enter into derivative contracts in the form of foreign exchange forward and foreign exchange swap contracts to mitigate the exposure associated with fluctuations on intercompany notes with our foreign subsidiaries that are not denominated in the U.S. dollar. Accounting Hedges We have swap contracts serving as cash flow hedges against price risk on forecasted purchases of natural gas and to lock in basis spread differentials on forecasted purchases of crude oil. We also periodically have forward sales contracts that lock in the prices of future sales of crude oil and 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. The following table presents the pre-tax effect on other comprehensive income (“OCI”) and earnings due to fair value adjustments and maturities of derivatives designated as hedging instruments under hedge accounting: Net Unrealized Gain (Loss) Recognized in OCI Gain (Loss) Reclassified into Earnings Derivatives Designated as Cash Flow Hedging Instruments Three Months Ended Income Statement Location Three Months Ended 2019 2018 2019 2018 (In thousands) Commodity contracts $ (7,562 ) $ 5,792 Sales and other revenues $ — $ (1,422 ) Cost of products sold 6,027 — Operating expenses (454 ) (209 ) Total $ (7,562 ) $ 5,792 $ 5,573 $ (1,631 ) Net Unrealized Gain (Loss) Recognized in OCI Gain (Loss) Reclassified into Earnings Derivatives Designated as Cash Flow Hedging Instruments Nine Months Ended Income Statement Location Nine Months Ended 2019 2018 2019 2018 (In thousands) Commodity contracts $ 372 $ 1,796 Sales and other revenues $ (1,799 ) $ (5,093 ) Cost of products sold 15,323 — Operating expenses (987 ) (945 ) Total $ 372 $ 1,796 $ 12,537 $ (6,038 ) Economic Hedges We have commodity contracts including contracts to lock in basis spread differentials on forecasted purchases of crude oil, swap contracts to lock in the crack spread of WTI and gasoline, NYMEX futures contracts to lock in prices on forecasted purchases and sales of inventory and forward purchase and sell contracts that serve as economic hedges (derivatives used for risk management, but not designated as accounting hedges). We also have forward currency contracts to fix the rate of foreign currency. In addition, our catalyst financing arrangements discussed in Note 11 could require repayment under certain conditions based on the futures price of platinum, which is an embedded derivative. 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: Gain (Loss) Recognized in Earnings Derivatives Not Designated as Hedging Instruments Income Statement Location Three Months Ended Nine Months Ended 2019 2018 2019 2018 (In thousands) Commodity contracts Cost of products sold $ 8,640 $ (8,252 ) $ 1,561 $ (20,580 ) Interest expense (1,720 ) — (2,995 ) — Foreign currency contracts Gain on foreign currency transactions 5,713 (7,052 ) (8,983 ) 18,504 Total $ 12,633 $ (15,304 ) $ (10,417 ) $ (2,076 ) As of September 30, 2019 , we have the following notional contract volumes related to outstanding derivative instruments: Notional Contract Volumes by Year of Maturity Total Outstanding Notional 2019 2020 2021 Unit of Measure Derivatives Designated as Hedging Instruments Natural gas price swaps - long 4,050,000 450,000 1,800,000 1,800,000 MMBTU Crude oil price swaps (basis spread) - long 5,954,000 1,196,000 4,758,000 — Barrels Forward crude oil contracts - short 423,739 423,739 — — Barrels Derivatives Not Designated as Hedging Instruments NYMEX futures (WTI) - short 1,825,000 1,713,000 112,000 — Barrels Crude oil price swaps (basis spread) - long 1,464,000 — 1,464,000 — Barrels WTI and gasoline crack spread swaps - short 200,000 200,000 — — Barrels Forward gasoline and diesel contracts - long 538,500 538,500 — — Barrels Forward crude oil contracts - long 140,849 140,849 — — Barrels Physical contracts - long 350,000 350,000 — — Barrels Physical contracts - short 350,000 350,000 — — Barrels Foreign currency forward contracts 434,443,896 114,213,501 320,230,395 — U.S. dollar Forward commodity contracts (platinum) 41,147 41,147 — — Troy ounces 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) September 30, 2019 Derivatives designated as cash flow hedging instruments: Commodity price swap contracts $ 13,182 $ (1,576 ) $ 11,606 $ 1,614 $ (500 ) $ 1,114 Commodity forward contracts — — — 258 — 258 $ 13,182 $ (1,576 ) $ 11,606 $ 1,872 $ (500 ) $ 1,372 Derivatives not designated as cash flow hedging instruments: Foreign currency forward contracts $ 2,511 $ — $ 2,511 $ 17 $ — $ 17 NYMEX futures contracts 2,976 — 2,976 — — — Commodity price swap contracts 6,401 — 6,401 — (20 ) (20 ) Commodity forward contracts 1,453 — 1,453 1,109 — 1,109 $ 13,341 $ — $ 13,341 $ 1,126 $ (20 ) $ 1,106 Total net balance $ 24,947 $ 2,478 Balance sheet classification: Prepayment and other $ 23,295 Accrued liabilities $ 1,922 Intangibles and other 1,652 Other long-term liabilities 556 $ 24,947 $ 2,478 December 31, 2018 Derivatives designated as cash flow hedging instruments: Commodity price swap contracts $ 11,790 $ (973 ) $ 10,817 $ 1,755 $ (799 ) $ 956 $ 11,790 $ (973 ) $ 10,817 $ 1,755 $ (799 ) $ 956 Derivatives not designated as cash flow hedging instruments: Foreign currency forward contracts $ 25,956 $ — $ 25,956 $ — $ — $ — NYMEX futures contracts 2,473 — 2,473 — — — Commodity forward contracts 1,034 — 1,034 1,137 — 1,137 $ 29,463 $ — $ 29,463 $ 1,137 $ — $ 1,137 Total net balance $ 40,280 $ 2,093 Balance sheet classification: Prepayment and other $ 37,982 Accrued liabilities $ 1,137 Intangibles and other 2,298 Other long-term liabilities 956 $ 40,280 $ 2,093 At September 30, 2019 , we had a pre-tax net unrealized gain of $10.2 million classified in accumulated other comprehensive income that relates to all accounting hedges having contractual maturities through 2021. Assuming commodity prices remain unchanged, an unrealized gain of $10.3 million 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. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Equity | Equity In September 2018, 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 September 30, 2019 , we had remaining authorization to repurchase up to $313.2 million under this stock repurchase program. In addition, we are authorized by our Board of Directors to repurchase shares in an amount sufficient to offset shares issued under our compensation programs. During the nine months ended September 30, 2019 and 2018 , we withheld 5,359 and 12,593 , respectively, shares of our common stock 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. |
Other Comprehensive Income
Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2019 | |
Other Comprehensive Income (Loss) [Abstract] | |
Other Comprehensive Income (Loss) | Other Comprehensive Income The components and allocated tax effects of other comprehensive income are as follows: Before-Tax Tax Expense (Benefit) After-Tax (In thousands) Three Months Ended September 30, 2019 Net change in foreign currency translation adjustment $ (9,311 ) $ (1,959 ) $ (7,352 ) Net unrealized loss on hedging instruments (7,562 ) (1,929 ) (5,633 ) Other comprehensive loss attributable to HollyFrontier stockholders $ (16,873 ) $ (3,888 ) $ (12,985 ) Three Months Ended September 30, 2018 Net change in foreign currency translation adjustment $ 8,325 $ 1,756 $ 6,569 Net unrealized gain on hedging instruments 5,792 1,478 4,314 Other comprehensive income attributable to HollyFrontier stockholders $ 14,117 $ 3,234 $ 10,883 Nine Months Ended September 30, 2019 Net change in foreign currency translation adjustment $ 4,212 $ 896 $ 3,316 Net unrealized gain on hedging instruments 372 94 278 Other comprehensive income attributable to HollyFrontier stockholders $ 4,584 $ 990 $ 3,594 Nine Months Ended September 30, 2018 Net change in foreign currency translation adjustment $ (15,118 ) $ (3,130 ) $ (11,988 ) Net unrealized gain on hedging instruments 1,796 453 1,343 Other comprehensive loss attributable to HollyFrontier stockholders $ (13,322 ) $ (2,677 ) $ (10,645 ) 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 (In thousands) Three Months Ended 2019 2018 Hedging instruments: Commodity price swaps $ — $ (1,422 ) Sales and other revenues 6,027 — Cost of products sold (454 ) (209 ) Operating expenses 5,573 (1,631 ) 1,421 (416 ) Income tax expense (benefit) Total reclassifications for the period $ 4,152 $ (1,215 ) Net of tax Nine Months Ended 2019 2018 Hedging instruments: Commodity price swaps $ (1,799 ) $ (5,093 ) Sales and other revenues 15,323 — Cost of products sold (987 ) (945 ) Operating expenses 12,537 (6,038 ) 3,197 (1,540 ) Income tax expense (benefit) Total reclassifications for the period $ 9,340 $ (4,498 ) Net of tax Accumulated other comprehensive income in the equity section of our consolidated balance sheets includes: September 30, December 31, (In thousands) Foreign currency translation adjustment $ (9,360 ) $ (12,676 ) Unrealized loss on pension obligation (1,404 ) (1,404 ) Unrealized gain on post-retirement benefit obligations 20,358 20,358 Unrealized gain on hedging instruments 7,623 7,345 Accumulated other comprehensive income $ 17,217 $ 13,623 |
Post-retirement Plan
Post-retirement Plan | 9 Months Ended |
Sep. 30, 2019 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
Post-retirement Plans | Post-retirement Plans Our net periodic pension expense consisted of the following components: Three Months Ended Nine Months Ended 2019 2018 2019 2018 (In thousands) Service cost - benefit earned during the period $ 1,209 $ 1,093 $ 3,605 $ 3,337 Interest cost on projected benefit obligations 450 556 1,325 1,698 Expected return on plan assets (822 ) (856 ) (2,441 ) (2,615 ) Amortization of loss 15 — 45 — Net periodic pension expense $ 852 $ 793 $ 2,534 $ 2,420 The expected long-term annual rates of return on plan assets are 5.00% and 2.20% for the PCLI and Sonneborn plans, respectively. These rates were used in measuring 2019 net periodic benefit costs. The net periodic benefit credit of our post-retirement healthcare and other benefits plans consisted of the following components Three Months Ended Nine Months Ended 2019 2018 2019 2018 (In thousands) Service cost – benefit earned during the period $ 387 $ 411 $ 1,161 $ 1,238 Interest cost on projected benefit obligations 267 234 801 705 Amortization of prior service credit (870 ) (870 ) (2,611 ) (2,611 ) Amortization of gain (22 ) — (66 ) — Net periodic post-retirement credit $ (238 ) $ (225 ) $ (715 ) $ (668 ) The components, other than service cost, of our net periodic pension expense and net periodic post-retirement credit are recorded in Other, net in our consolidated statements of income. Sonneborn has various post-retirement benefit plans for employees in the United States and in the Netherlands. The plans for Sonneborn employees in the Netherlands include a defined benefit pension plan which was frozen and all plan participants became inactive in 2016. The plan assets are in the form of a third-party insurance contract that is valued based on the assets held by the insurer and insures a value which approximates the accrued benefits related to the plan’s accumulated benefit obligation. A new multiemployer pension plan was established in 2016, which is accounted for as a defined contribution plan. Also, in 2016, a new plan was established to provide future indexation benefits to participants who had accrued benefits under the expiring arrangements. Such benefits are funded by Sonneborn Refined Products B.V. The plans for Sonneborn employees in the United States include a post-retirement medical plan and a multiemployer plan for union employees. These plans are accounted for as defined contribution plans. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Loss Contingency [Abstract] | |
Contingencies | Contingencies 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 material adverse effect on our financial condition, results of operations or cash flows. In March 2006, a subsidiary of ours sold the assets of Montana Refining Company under an Asset Purchase Agreement (“APA”). Calumet Montana Refining LLC, the current owner of the assets, submitted requests for reimbursement of approximately $20.0 million pursuant to contractual indemnity provisions under the APA for various costs incurred. Calumet also asserted claims related to environmental matters. We rejected all of the currently pending claims for payment, and selected issues were arbitrated in July 2018. In September 2018, the arbitration panel ruled on the selected issues and held that the APA places a number of important limitations on claims advanced by Calumet. In a ruling dated August 16, 2019, as amended on October 3, 2019, the arbitration panel determined that, with regard to all claims asserted by Calumet, we do not owe any amounts to Calumet. Accordingly, during the third quarter of 2019, estimated costs previously accrued for this matter were reversed into income. We filed a business interruption claim with our insurance carriers related to a fire at our Woods Cross Refinery that occurred in the first quarter 2018. As of September 30, 2019, we have collected interim payments totaling $56.0 million , but have not reached a final agreement regarding the amounts owed to us pursuant to our business interruption coverage. We have accounted for this claim as a gain contingency and accordingly, we have deferred revenue recognition for the interim payments received until such time that uncertainties regarding the amounts owed to us have been resolved. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our operations are organized into three reportable segments, Refining, Lubricants and Specialty Products and HEP. Our operations that are not included in the Refining, Lubricants and Specialty Products and HEP segments are included in Corporate and Other. Intersegment transactions are eliminated in our consolidated financial statements and are included in Eliminations. Corporate and Other and Eliminations are aggregated and presented under Corporate, Other and Eliminations column. 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. HFC Asphalt operates various asphalt terminals in Arizona, New Mexico and Oklahoma. The Lubricants and Specialty Products segment involves PCLI’s production operations, located in Mississauga, Ontario, that includes lubricant products such as base oils, white oils, specialty products and finished lubricants, and the operations of our Petro- Canada Lubricants business that includes the marketing of products to both retail and wholesale outlets through a global sales network with locations in Canada, the United States, Europe and China. Additionally, the Lubricants and Specialty Products segment includes specialty lubricant products produced at our Tulsa Refineries that are marketed throughout North America and are distributed in Central and South America. Also, effective with our acquisition that closed August 1, 2018, the Lubricants and Specialty Products segment includes Red Giant Oil, one of the largest suppliers of locomotive engine oil in North America, and effective with our acquisition that closed February 1, 2019, includes Sonneborn, a producer of specialty hydrocarbon chemicals such as white oils, petrolatums and waxes with manufacturing facilities in the United States and Europe. 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. As of September 30, 2019, the HEP segment also includes a 75% ownership interest in UNEV (a consolidated subsidiary of HEP) and 50% ownership interests in each of the Osage Pipeline and the Cheyenne 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 in our Annual Report on Form 10-K for the year ended December 31, 2018 . Refining Lubricants and Specialty Products HEP Corporate, Other and Eliminations Consolidated Total (In thousands) Three Months Ended September 30, 2019 Sales and other revenues: Revenues from external customers $ 3,865,399 $ 529,561 $ 29,868 $ — $ 4,424,828 Intersegment revenues 81,571 8,157 106,027 (195,755 ) — $ 3,946,970 $ 537,718 $ 135,895 $ (195,755 ) $ 4,424,828 Cost of products sold (exclusive of lower of cost or market inventory) $ 3,177,167 $ 397,926 $ — $ (171,326 ) $ 3,403,767 Lower of cost or market inventory valuation adjustment $ 34,062 $ — $ — $ — $ 34,062 Operating expenses $ 276,869 $ 57,974 $ 44,924 $ (34,189 ) $ 345,578 Selling, general and administrative expenses $ 31,707 $ 43,875 $ 2,714 $ 9,330 $ 87,626 Depreciation and amortization $ 76,765 $ 22,700 $ 24,121 $ 3,430 $ 127,016 Income (loss) from operations $ 350,400 $ 15,243 $ 64,136 $ (3,000 ) $ 426,779 Earnings of equity method investments $ — $ — $ 1,334 $ — $ 1,334 Capital expenditures $ 53,506 $ 8,697 $ 6,076 $ 6,310 $ 74,589 Three Months Ended September 30, 2018 Sales and other revenues: Revenues from external customers $ 4,270,835 $ 474,260 $ 25,596 $ 108 $ 4,770,799 Intersegment revenues 101,334 1,626 100,188 (203,148 ) — $ 4,372,169 $ 475,886 $ 125,784 $ (203,040 ) $ 4,770,799 Cost of products sold (exclusive of lower of cost or market inventory) $ 3,572,593 $ 359,742 $ — $ (180,101 ) $ 3,752,234 Lower of cost or market inventory valuation adjustment $ 17,837 $ — $ — $ — $ 17,837 Operating expenses $ 262,010 $ 40,288 $ 35,995 $ (21,097 ) $ 317,196 Selling, general and administrative expenses $ 30,394 $ 33,514 $ 2,498 $ 4,724 $ 71,130 Depreciation and amortization $ 70,793 $ 11,139 $ 24,367 $ 2,586 $ 108,885 Income (loss) from operations $ 418,542 $ 31,203 $ 62,924 $ (9,152 ) $ 503,517 Earnings of equity method investments $ — $ — $ 1,114 $ — $ 1,114 Capital expenditures $ 47,088 $ 8,094 $ 9,541 $ 5,214 $ 69,937 Refining Lubricants and Specialty Products HEP Corporate, Other Consolidated (In thousands) Nine Months Ended September 30, 2019 Sales and other revenues: Revenues from external customers $ 11,446,841 $ 1,568,241 $ 89,388 $ 220 $ 13,104,690 Intersegment revenues 244,799 8,157 311,755 (564,711 ) — $ 11,691,640 $ 1,576,398 $ 401,143 $ (564,491 ) $ 13,104,690 Cost of products sold (exclusive of lower of cost or market inventory) $ 9,598,539 $ 1,202,296 $ — $ (492,979 ) $ 10,307,856 Lower of cost or market inventory valuation adjustment $ (150,483 ) $ — $ — $ — $ (150,483 ) Operating expenses $ 794,081 $ 170,655 $ 123,045 $ (77,359 ) $ 1,010,422 Selling, general and administrative expenses $ 88,322 $ 125,681 $ 7,322 $ 39,652 $ 260,977 Depreciation and amortization $ 227,405 $ 65,891 $ 72,192 $ 9,857 $ 375,345 Goodwill impairment $ — $ 152,712 $ — $ — $ 152,712 Income (loss) from operations $ 1,133,776 $ (140,837 ) $ 198,584 $ (43,662 ) $ 1,147,861 Earnings of equity method investments $ — $ — $ 5,217 $ — $ 5,217 Capital expenditures $ 129,167 $ 25,887 $ 23,828 $ 16,175 $ 195,057 Nine Months Ended September 30, 2018 Sales and other revenues: Revenues from external customers $ 11,915,797 $ 1,376,531 $ 77,799 $ 335 $ 13,370,462 Intersegment revenues 284,538 11,884 295,629 (592,051 ) — $ 12,200,335 $ 1,388,415 $ 373,428 $ (591,716 ) $ 13,370,462 Cost of products sold (exclusive of lower of cost or market inventory) $ 10,179,509 $ 1,040,414 $ — $ (524,648 ) $ 10,695,275 Lower of cost or market inventory valuation adjustment $ (192,927 ) $ — $ — $ — $ (192,927 ) Operating expenses $ 764,415 $ 125,101 $ 106,731 $ (62,548 ) $ 933,699 Selling, general and administrative expenses $ 82,966 $ 99,425 $ 8,293 $ 13,785 $ 204,469 Depreciation and amortization $ 210,957 $ 30,023 $ 74,117 $ 8,508 $ 323,605 Income (loss) from operations $ 1,155,415 $ 93,452 $ 184,287 $ (26,813 ) $ 1,406,341 Earnings of equity method investments $ — $ — $ 4,127 $ — $ 4,127 Capital expenditures $ 132,050 $ 23,138 $ 41,111 $ 12,779 $ 209,078 Refining Lubricants and Specialty Products HEP Corporate, Other and Eliminations Consolidated Total (In thousands) September 30, 2019 Cash and cash equivalents $ 21,443 $ 170,116 $ 7,469 $ 782,828 $ 981,856 Total assets $ 7,321,741 $ 2,139,092 $ 2,089,110 $ 641,385 $ 12,191,328 Long-term debt $ — $ — $ 1,431,869 $ 993,365 $ 2,425,234 December 31, 2018 Cash and cash equivalents $ 7,236 $ 80,931 $ 3,045 $ 1,063,540 $ 1,154,752 Total assets $ 6,465,155 $ 1,506,209 $ 2,142,027 $ 881,210 $ 10,994,601 Long-term debt $ — $ — $ 1,418,900 $ 992,640 $ 2,411,540 |
Description of Business and P_2
Description of Business and Presentation of Financial Statements (Policy) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 $4.4 million at September 30, 2019 and $3.6 million at December 31, 2018 . |
Inventories | Inventories: Inventories related to our refining operations 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. 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 of our Petro-Canada Lubricants and Sonneborn businesses are stated at the lower of cost, using the first-in, first-out (“FIFO”) method, or net realizable value. Inventories consisting of process chemicals, materials and maintenance supplies and renewable identification numbers (“RINs”) are stated at the lower of weighted-average cost or net realizable value. |
Leases | Leases: At inception, we determine if an arrangement is or contains a lease. Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our payment obligation under the leasing arrangement. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. We use our estimated incremental borrowing rate (“IBR”) to determine the present value of lease payments as most of our leases do not contain an implicit rate. Our IBR represents the interest rate which we would pay to borrow, on a collateralized basis, an amount equal to the lease payments over a similar term in a similar economic environment. We use the implicit rate when readily determinable. Operating leases are recorded in operating lease right-of-use assets and current and noncurrent operating lease liabilities on our consolidated balance sheet. Finance leases are included in properties, plants and equipment and accrued liabilities and other long-term liabilities on our consolidated balance sheet. Our lease term includes an option to extend the lease when it is reasonably certain that we will exercise that option. Leases with a term of 12 months or less are not recorded on our balance sheet and lease expense is accounted for on a straight-line basis. For certain equipment leases, we apply a portfolio approach for the operating lease ROU assets and liabilities. Also, as a lessee, we separate non-lease components that are identifiable and exclude them from the determination of net present value of lease payment obligations. In addition, HEP, as a lessor, does not separate the non-lease (service) component in contracts in which the lease component is the dominant component. HEP treats these combined components as an operating lease. |
Goodwill and Long-lived Assets | Goodwill and Long-lived Assets: As of September 30, 2019 , our goodwill balance was $2.4 billion , with goodwill assigned to our Refining, Lubricants and Specialty Products and HEP segments of $1,733.5 million , $324.1 million and $312.9 million , respectively. During the nine months ended September 30, 2019 , we recognized $279.2 million in goodwill as a result of our Sonneborn acquisition, all of which has been assigned to our Lubricants and Specialty Products segment. See Note 17 for additional information on our segments. The carrying amount of our goodwill may fluctuate from period to period due to the effects of foreign currency translation adjustments on goodwill assigned to our Lubricants and Specialty Products segment. Goodwill represents the excess of the cost of an acquired entity over the fair value of the assets acquired and liabilities assumed. Goodwill is not subject to amortization and is tested annually or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Our goodwill impairment testing first entails either a quantitative assessment or an optional qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If we determine that based on the qualitative factors that it is more likely than not that the fair value of the reporting unit is greater than its carrying amount, a quantitative test is performed in which we estimate the fair value of the related reporting unit. If the carrying amount of a reporting unit exceeds its fair value, the goodwill of that reporting unit is impaired, and we measure goodwill impairment as the excess of the carrying amount of reporting unit over the related fair value. Our long-lived assets principally consist of our refining assets that are organized as refining asset groups and the assets of our Lubricants and Specialty Products asset groups. The 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. |
Goodwill Impairment | Goodwill impairment During the second quarter of 2019, we performed interim goodwill impairment testing of the PCLI reporting unit included in our Lubricants and Specialty Products segment. We elected to perform this interim assessment due to the recent reorganization of our reporting unit structure within the Lubricants and Specialty Products segment, combined with the identification of events and circumstances which were indicators of potential goodwill impairment at PCLI, including recent declines in gross margins to lower than historic levels. These recent lower gross margins are in the base oil market which is largely attributed to the increase in global supply of base oils with a current outlook for continued near-term softness. Our interim goodwill impairment testing was performed as of May 31, 2019. The estimated fair values of our goodwill reporting units within our Lubricants and Specialty Products segment were derived using a combination of both income and market approaches. The income approach reflects expected future cash flows based on estimated future production volumes, selling prices, gross margins, operating costs and capital expenditures. Our market approach includes 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). See Note 6 for further discussion of Level 3 inputs. As a result of our impairment testing, we determined that the carrying value of the PCLI reporting unit’s goodwill within our Lubricants and Specialty Products segment was fully impaired and a goodwill impairment charge of $152.7 million was recorded. Our testing did not identify any other impairments. We performed our annual goodwill impairment testing as of July 1, 2019 and determined there was no additional impairment of goodwill attributable to our reporting units. |
Revenue Recognition | Revenue Recognition: Revenue on refined product and excess crude oil sales are recognized when delivered (via pipeline, in-tank or rack) and the customer obtains control of such inventory, which is typically when title passes and the customer is billed. 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 as cost of products sold. Additionally, our lubricants and specialty products business has sales agreements with marketers and distributors that provide certain rights of return or provisions for the repurchase of products previously sold to them. Under these agreements, revenues and cost of revenues are deferred until the products have been sold to end customers. Our lubricants and specialty products business also has agreements that create an obligation to deliver products at a future date for which consideration has already been received and recorded as deferred revenue. This revenue is recognized when the products are delivered to the customer. HEP recognizes revenues as products are shipped through its pipelines and terminals and as other services are rendered. Additionally, HEP has certain throughput agreements that specify minimum volume requirements, whereby HEP bills a customer for a minimum level of shipments in the event a customer ships below their contractual requirements. If there are no future performance obligations, HEP recognizes these deficiency payments as revenue. In certain of these throughput agreements, a customer may later utilize such shortfall billings as credit towards future volume shipments in excess of its minimum levels within its respective contractual shortfall make-up period. Such amounts represent an obligation to perform future services, which may be initially deferred and later recognized as revenue based on estimated future shipping levels, including the likelihood of a customer’s ability to utilize such amounts prior to the end of the contractual shortfall make-up period. HEP recognizes the service portion of these deficiency payments as revenue when HEP does not expect it will be required to satisfy these performance obligations in the future based on the pattern of rights exercised by the customer. Payment terms under our contracts with customers are consistent with industry norms and are typically payable within 30 days of the date of invoice. |
Foreign Currency Translation | Foreign Currency Translation: Assets and liabilities recorded in foreign currencies are translated into U.S. dollars using exchange rates in effect as of the balance sheet date. Revenue and expense accounts are translated using the weighted-average exchange rates during the period presented. Foreign currency translation adjustments are recorded as a component of accumulated other comprehensive income. In connection with our PCLI acquisition on February 1, 2017, we issued intercompany notes to initially fund certain of our foreign businesses. Remeasurement adjustments resulting from the conversion of such intercompany financing amounts to functional currencies are recorded as gains and losses as a component of other income (expense) in the income statement. Such adjustments are not recorded to the Lubricants and Specialty Products segment operations, but to Corporate and Other. See Note 17 for additional information on our segments. |
Income Taxes | Income Taxes : Provisions for income taxes include deferred taxes resulting from temporary differences in income for financial and tax purposes, using the liability method of accounting for income taxes. The liability method requires the effect of tax rate changes on deferred income taxes to be reflected in the period in which the rate change was enacted. The liability method also requires that deferred tax assets be reduced by a valuation allowance unless it is more likely than not that the assets will be realized. Potential interest and penalties related to income tax matters are recognized in income tax expense. We believe we have appropriate support for the income tax positions taken and to be taken on our income tax returns and that our accruals for tax liabilities are adequate for all open years based on an assessment of many factors, including past experience and interpretations of tax law applied to the facts of each matter. |
Inventory Repurchase Obligations | 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 nine months ended September 30, 2019 and 2018 , we received proceeds of $13.2 million and $38.4 million , respectively, and repaid $12.5 million and $39.3 million , respectively, under these sell / buy transactions. |
New Accounting Pronouncements | Goodwill Impairment Testing In January 2017, Accounting Standard Update (“ASU”) 2017-04, “Simplifying the Test for Goodwill Impairment,” was issued amending the testing for goodwill impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. We adopted this standard effective in the second quarter of 2019, and the adoption of this standard resulted in no change to the amount of goodwill impairment recorded in the second quarter of 2019. Leases In February 2016, ASU 2016-02, “Leases,” was issued requiring leases to be measured and recognized as a lease liability, with a corresponding ROU asset on the balance sheet. We adopted this standard effective January 1, 2019 using the optional transition method, whereby comparative prior period financial information will not be restated and will continue to be reported under the lease accounting standard in effect during those periods. We also elected practical expedients provided by the new standard, including the package of practical expedients, whereby we did not reassess lease classification or initial indirect lease cost under the new standard. In addition, we elected to exclude short-term leases, which at inception have a lease term of 12 months or less, from the amounts recognized on our balance sheet. In addition, HEP elected an expedient whereby a lessor does not have to separate non-lease (service) components from lease components under certain contracts. Under this expedient, HEP treated the combined components of its leases with third parties (i.e., the contracts that are not eliminated upon consolidation of HEP by HFC) as an operating lease in which the dominant component was a lease in accordance with ASC 842. Upon adoption of this standard, we recognized $433.4 million of lease liabilities and corresponding ROU assets on our consolidated balance sheet. Adoption of this standard did not have a material impact on our results of operations or cash flows. In addition, upon our acquisition of Sonneborn on February 1, 2019, we recognized $15.6 million of lease liabilities and corresponding ROU assets. |
New Accounting Pronouncements Not yet Adopted | Credit Losses Measurement In June 2016, ASU 2016-13, “Measurement of Credit Losses on Financial Instruments,” was issued requiring measurement of all expected credit losses for certain types of financial instruments, including trade receivables, held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. This standard is effective January 1, 2020, and our preliminary review of historic and expected credit losses indicates the amount of expected credit losses upon adoption would not be materially different from the current allowance for doubtful accounts balance. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following summarizes our preliminary value estimates of the Sonneborn assets and liabilities acquired on February 1, 2019: (In millions) Cash and cash equivalents $ 38.9 Accounts receivable and other current assets 58.6 Inventories 81.0 Properties, plants and equipment 168.2 Goodwill 279.2 Intangibles and other noncurrent assets 231.5 Accounts payable and accrued liabilities (47.0 ) Deferred income tax liabilities (84.5 ) Other long-term liabilities (24.3 ) $ 701.6 |
Business Acquisition, Pro Forma Information | Three Months Ended Nine Months Ended 2018 2019 2018 (In thousands) Sales and other revenues $ 571,685 $ 1,608,648 $ 1,679,554 Operating income (1) $ 39,496 $ (127,972 ) $ 110,424 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information | The following table presents the amounts and balance sheet locations of our operating and financing leases recorded on our consolidated balance sheet. September 30, 2019 (In thousands) Operating leases: Operating lease right-of-use assets $ 453,377 Operating lease liabilities 99,622 Noncurrent operating lease liabilities 355,410 Total operating lease liabilities $ 455,032 Finance leases: Properties, plants and equipment, at cost $ 12,830 Accumulated amortization (6,375 ) Properties, plants and equipment, net $ 6,455 Accrued liabilities $ 1,663 Other long-term liabilities 4,929 Total finance lease liabilities $ 6,592 Supplemental balance sheet information related to our leases was as follows: September 30, 2019 Weighted average remaining lease term (in years) Operating leases 7.6 Finance leases 8.2 Weighted average discount rate Operating leases 4.2 % Finance leases 5.3 % |
Schedule of Components of Lease Expense and Supplemental Cash Flow Information | The components of lease expense were as follows: Three Months Ended Nine Months Ended (In thousands) Operating lease expense $ 28,263 $ 83,646 Finance lease expense: Amortization of right-of-use assets 375 1,150 Interest on lease liabilities 84 255 Variable lease cost 1,862 3,251 Total lease expense $ 30,584 $ 88,302 Supplemental cash flow information related to leases was as follows: Nine Months Ended (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 88,500 Operating cash flows from finance leases $ 255 Financing cash flows from finance leases $ 1,158 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 80,211 |
Schedule of Operating Lease Maturities | As of September 30, 2019 , minimum future lease payments of our operating and finance lease obligations were as follows: Operating Finance (In thousands) Remainder of 2019 $ 29,036 $ 500 2020 107,362 1,945 2021 89,194 1,123 2022 75,923 859 2023 70,194 895 2024 and thereafter 172,200 2,772 Future minimum lease payments 543,909 8,094 Less: imputed interest 88,877 1,502 Total lease obligations 455,032 6,592 Less: current obligations 99,622 1,663 Long-term lease obligations $ 355,410 $ 4,929 |
Schedule of Finance Lease Maturities | As of September 30, 2019 , minimum future lease payments of our operating and finance lease obligations were as follows: Operating Finance (In thousands) Remainder of 2019 $ 29,036 $ 500 2020 107,362 1,945 2021 89,194 1,123 2022 75,923 859 2023 70,194 895 2024 and thereafter 172,200 2,772 Future minimum lease payments 543,909 8,094 Less: imputed interest 88,877 1,502 Total lease obligations 455,032 6,592 Less: current obligations 99,622 1,663 Long-term lease obligations $ 355,410 $ 4,929 |
Schedule of Lease Income | Our consolidated income statement reflects lease revenue recognized by HEP for contracts with third parties in which HEP is the lessor. Lease income recognized was as follows: Three Months Ended Nine Months Ended (In thousands) Operating lease revenues $ 8,374 $ 24,840 |
Schedule of Minimum Undiscounted Lease Payments | Annual minimum undiscounted lease payments in which HEP is a lessor to third-party contracts as of September 30, 2019 were as follows: (In thousands) Remainder of 2019 $ 8,010 2020 17,542 2021 12,794 2022 11,376 2023 11,248 Thereafter 14,060 Total $ 75,030 |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregated Revenues | Disaggregated revenues were as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 (In thousands) Revenues by type Refined product revenues Transportation fuels (1) $ 3,354,927 $ 3,598,815 $ 9,796,334 $ 10,193,218 Specialty lubricant products (2) 461,669 422,760 1,413,194 1,237,002 Asphalt, fuel oil and other products (3) 299,305 288,013 767,023 741,139 Total refined product revenues 4,115,901 4,309,588 11,976,551 12,171,359 Excess crude oil revenues (4) 264,675 422,122 997,988 1,074,928 Transportation and logistic services 29,868 25,596 89,388 77,799 Other revenues (5) 14,384 13,493 40,763 46,376 Total sales and other revenues $ 4,424,828 $ 4,770,799 $ 13,104,690 $ 13,370,462 Three Months Ended Nine Months Ended 2019 2018 2019 2018 (In thousands) Refined product revenues by market United States Mid-Continent $ 2,191,014 $ 2,337,689 $ 6,283,488 $ 6,458,935 Southwest 913,326 1,016,771 2,772,281 2,865,324 Rocky Mountains 611,003 627,542 1,739,401 1,869,414 Northeast 151,919 85,344 427,926 261,380 Canada 184,784 190,727 536,911 563,088 Europe, Asia and Latin America 63,855 51,515 216,544 153,218 Total refined product revenues $ 4,115,901 $ 4,309,588 $ 11,976,551 $ 12,171,359 (1) Transportation fuels consist of gasoline, diesel and jet fuel. (2) Specialty lubricant products consist of base oil, waxes, finished lubricants and other specialty fluids. (3) Asphalt, fuel oil and other products revenue include revenues attributable to our Refining and Lubricants and Specialty Products segments of $231.4 million and $67.9 million , respectively, for the three months ended September 30, 2019 , $612.0 million and $155.0 million , respectively, for the nine months ended September 30, 2019 , $234.9 million and $53.1 million , respectively, for the three months ended September 30, 2018 , and $589.7 million and $151.4 million , respectively, for the nine months ended September 30, 2018 . (4) Excess crude oil revenues represent sales of purchased crude oil inventory that at times exceeds the supply needs of our refineries. (5) Other revenues are principally attributable to our Refining segment. |
Schedule of Changes to Contract Liabilities | The following table presents changes to our contract liabilities during the nine months ended September 30, 2019 . January 1, 2019 Sonneborn Acquisition Increase Recognized as Revenue September 30, 2019 (In thousands) Accrued liabilities $ 132 6,463 $ 19,255 $ (21,135 ) $ 4,715 |
Schedules of Future Performance Obligations and Minimum Revenue Obligations | Annual minimum revenues attributable to HEP’s third-party contracts as of September 30, 2019 are presented below: Remainder of 2019 2020 2021 Thereafter Total (In thousands) HEP contractual minimum revenues $ 10,695 $ 28,238 $ 22,822 $ 38,575 $ 100,330 Remainder of 2019 2020 2021 Thereafter Total (In thousands) Refined product sales volumes (barrels) 5,610 7,964 1,847 — 15,421 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Fair Value Measurements Of Asset and Liability Instruments | The carrying amounts of derivative instruments and RINs credit obligations at September 30, 2019 and December 31, 2018 were as follows: Fair Value by Input Level Carrying Amount Level 1 Level 2 Level 3 (In thousands) September 30, 2019 Assets: NYMEX futures contracts $ 2,976 $ 2,976 $ — $ — Foreign currency forward contracts 2,511 — 2,511 — Commodity price swaps 18,007 — 18,007 — Commodity forward contracts 1,453 — 1,453 — Total assets $ 24,947 $ 2,976 $ 21,971 $ — Liabilities: Foreign currency forward contracts $ 17 $ — $ 17 $ — Commodity price swaps 1,094 — 1,094 — Commodity forward contracts 1,367 — 1,367 — Total liabilities $ 2,478 $ — $ 2,478 $ — Fair Value by Input Level Financial Instrument Carrying Amount Level 1 Level 2 Level 3 (In thousands) December 31, 2018 Assets: NYMEX futures contracts $ 2,473 $ 2,473 $ — $ — Foreign currency forward contracts 25,956 — 25,956 — Commodity price swaps 10,817 — 10,817 — Commodity forward contracts 1,034 — 1,034 $ — Total assets $ 40,280 $ 2,473 $ 37,807 $ — Liabilities: Commodity price swaps $ 956 $ — $ 956 $ — Commodity forward contracts 1,137 — 1,137 — RINs credit obligations (1) 4,084 — 4,084 — Total liabilities $ 6,177 $ — $ 6,177 $ — (1) Represent obligations for RINs credits for which we did not have sufficient quantities at December 31, 2018 to satisfy our Environmental Protection Agency (“EPA”) regulatory blending requirements. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule Of Earnings Per Share | The following is a reconciliation of the denominators of the basic and diluted per share computations for net income attributable to HollyFrontier stockholders: Three Months Ended Nine Months Ended 2019 2018 2019 2018 (In thousands, except per share data) Net income attributable to HollyFrontier stockholders $ 261,813 $ 342,466 $ 711,783 $ 956,064 Participating securities’ (restricted stock) share in earnings 385 1,171 1,033 3,321 Net income attributable to common shares $ 261,428 $ 341,295 $ 710,750 $ 952,743 Average number of shares of common stock outstanding 163,676 175,097 167,935 175,865 Effect of dilutive variable restricted shares and performance share units (1) 1,335 1,830 1,190 1,692 Average number of shares of common stock outstanding assuming dilution 165,011 176,927 169,125 177,557 Basic earnings per share $ 1.60 $ 1.95 $ 4.23 $ 5.42 Diluted earnings per share $ 1.58 $ 1.93 $ 4.20 $ 5.37 (1) Excludes anti-dilutive restricted and performance share units of: 109 — 120 2 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Summary Of Restricted Stock Activity | A summary of restricted stock and restricted stock unit activity during the nine months ended September 30, 2019 is presented below: Restricted Stock and Restricted Stock Units Grants Weighted Average Grant Date Fair Value Aggregate Intrinsic Value ($000) Outstanding at January 1, 2019 (non-vested) 1,196,914 $ 46.81 Granted 45,006 52.97 Vesting (transfer/conversion to common stock) (17,374 ) 49.32 Forfeited (38,600 ) 47.97 Outstanding at September 30, 2019 (non-vested) 1,185,946 46.97 $ 63,614 |
Summary Of Performance Share Unit Activity | A summary of performance share unit activity during the nine months ended September 30, 2019 is presented below: Performance Share Units Grants Outstanding at January 1, 2019 (non-vested) 662,431 Granted 6,086 Forfeited (4,516 ) Outstanding at September 30, 2019 (non-vested) 664,001 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory, Net [Abstract] | |
Inventory Components | Inventories consist of the following components: September 30, December 31, 2018 (In thousands) Crude oil $ 472,932 $ 503,705 Other raw materials and unfinished products (1) 306,504 360,124 Finished products (2) 860,130 662,713 Lower of cost or market reserve (209,655 ) (360,138 ) Process chemicals (3) 29,040 31,413 Repair and maintenance supplies and other (4) 178,108 156,562 Total inventory $ 1,637,059 $ 1,354,379 (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. |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Carrying Amounts Of Long-Term Debt | The carrying amounts of long-term debt are as follows: September 30, December 31, (In thousands) HollyFrontier 5.875% Senior Notes Principal $ 1,000,000 $ 1,000,000 Unamortized discount and debt issuance costs (6,635 ) (7,360 ) 993,365 992,640 HEP Credit Agreement 935,500 923,000 HEP 6% Senior Notes Principal 500,000 500,000 Unamortized discount and debt issuance costs (3,631 ) (4,100 ) 496,369 495,900 Total HEP long-term debt 1,431,869 1,418,900 Total long-term debt $ 2,425,234 $ 2,411,540 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The fair values of the senior notes are as follows: September 30, December 31, (In thousands) HollyFrontier senior notes $ 1,121,460 $ 1,019,160 HEP senior notes $ 523,220 $ 488,310 |
Derivative Instruments And He_2
Derivative Instruments And Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 derivatives designated as hedging instruments under hedge accounting: Net Unrealized Gain (Loss) Recognized in OCI Gain (Loss) Reclassified into Earnings Derivatives Designated as Cash Flow Hedging Instruments Three Months Ended Income Statement Location Three Months Ended 2019 2018 2019 2018 (In thousands) Commodity contracts $ (7,562 ) $ 5,792 Sales and other revenues $ — $ (1,422 ) Cost of products sold 6,027 — Operating expenses (454 ) (209 ) Total $ (7,562 ) $ 5,792 $ 5,573 $ (1,631 ) Net Unrealized Gain (Loss) Recognized in OCI Gain (Loss) Reclassified into Earnings Derivatives Designated as Cash Flow Hedging Instruments Nine Months Ended Income Statement Location Nine Months Ended 2019 2018 2019 2018 (In thousands) Commodity contracts $ 372 $ 1,796 Sales and other revenues $ (1,799 ) $ (5,093 ) Cost of products sold 15,323 — Operating expenses (987 ) (945 ) Total $ 372 $ 1,796 $ 12,537 $ (6,038 ) |
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: Gain (Loss) Recognized in Earnings Derivatives Not Designated as Hedging Instruments Income Statement Location Three Months Ended Nine Months Ended 2019 2018 2019 2018 (In thousands) Commodity contracts Cost of products sold $ 8,640 $ (8,252 ) $ 1,561 $ (20,580 ) Interest expense (1,720 ) — (2,995 ) — Foreign currency contracts Gain on foreign currency transactions 5,713 (7,052 ) (8,983 ) 18,504 Total $ 12,633 $ (15,304 ) $ (10,417 ) $ (2,076 ) |
Schedule of Notional Amounts of Outstanding Derivatives Serving as Economic Hedges | As of September 30, 2019 , we have the following notional contract volumes related to outstanding derivative instruments: Notional Contract Volumes by Year of Maturity Total Outstanding Notional 2019 2020 2021 Unit of Measure Derivatives Designated as Hedging Instruments Natural gas price swaps - long 4,050,000 450,000 1,800,000 1,800,000 MMBTU Crude oil price swaps (basis spread) - long 5,954,000 1,196,000 4,758,000 — Barrels Forward crude oil contracts - short 423,739 423,739 — — Barrels Derivatives Not Designated as Hedging Instruments NYMEX futures (WTI) - short 1,825,000 1,713,000 112,000 — Barrels Crude oil price swaps (basis spread) - long 1,464,000 — 1,464,000 — Barrels WTI and gasoline crack spread swaps - short 200,000 200,000 — — Barrels Forward gasoline and diesel contracts - long 538,500 538,500 — — Barrels Forward crude oil contracts - long 140,849 140,849 — — Barrels Physical contracts - long 350,000 350,000 — — Barrels Physical contracts - short 350,000 350,000 — — Barrels Foreign currency forward contracts 434,443,896 114,213,501 320,230,395 — U.S. dollar Forward commodity contracts (platinum) 41,147 41,147 — — Troy ounces |
Schedule of Fair Value and Balance Sheet Location of Outstanding Derivatives | 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) September 30, 2019 Derivatives designated as cash flow hedging instruments: Commodity price swap contracts $ 13,182 $ (1,576 ) $ 11,606 $ 1,614 $ (500 ) $ 1,114 Commodity forward contracts — — — 258 — 258 $ 13,182 $ (1,576 ) $ 11,606 $ 1,872 $ (500 ) $ 1,372 Derivatives not designated as cash flow hedging instruments: Foreign currency forward contracts $ 2,511 $ — $ 2,511 $ 17 $ — $ 17 NYMEX futures contracts 2,976 — 2,976 — — — Commodity price swap contracts 6,401 — 6,401 — (20 ) (20 ) Commodity forward contracts 1,453 — 1,453 1,109 — 1,109 $ 13,341 $ — $ 13,341 $ 1,126 $ (20 ) $ 1,106 Total net balance $ 24,947 $ 2,478 Balance sheet classification: Prepayment and other $ 23,295 Accrued liabilities $ 1,922 Intangibles and other 1,652 Other long-term liabilities 556 $ 24,947 $ 2,478 December 31, 2018 Derivatives designated as cash flow hedging instruments: Commodity price swap contracts $ 11,790 $ (973 ) $ 10,817 $ 1,755 $ (799 ) $ 956 $ 11,790 $ (973 ) $ 10,817 $ 1,755 $ (799 ) $ 956 Derivatives not designated as cash flow hedging instruments: Foreign currency forward contracts $ 25,956 $ — $ 25,956 $ — $ — $ — NYMEX futures contracts 2,473 — 2,473 — — — Commodity forward contracts 1,034 — 1,034 1,137 — 1,137 $ 29,463 $ — $ 29,463 $ 1,137 $ — $ 1,137 Total net balance $ 40,280 $ 2,093 Balance sheet classification: Prepayment and other $ 37,982 Accrued liabilities $ 1,137 Intangibles and other 2,298 Other long-term liabilities 956 $ 40,280 $ 2,093 |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Comprehensive Income (Loss) [Abstract] | |
Components And Allocated Tax Effects Of Other Comprehensive Income (Loss) | The components and allocated tax effects of other comprehensive income are as follows: Before-Tax Tax Expense (Benefit) After-Tax (In thousands) Three Months Ended September 30, 2019 Net change in foreign currency translation adjustment $ (9,311 ) $ (1,959 ) $ (7,352 ) Net unrealized loss on hedging instruments (7,562 ) (1,929 ) (5,633 ) Other comprehensive loss attributable to HollyFrontier stockholders $ (16,873 ) $ (3,888 ) $ (12,985 ) Three Months Ended September 30, 2018 Net change in foreign currency translation adjustment $ 8,325 $ 1,756 $ 6,569 Net unrealized gain on hedging instruments 5,792 1,478 4,314 Other comprehensive income attributable to HollyFrontier stockholders $ 14,117 $ 3,234 $ 10,883 Nine Months Ended September 30, 2019 Net change in foreign currency translation adjustment $ 4,212 $ 896 $ 3,316 Net unrealized gain on hedging instruments 372 94 278 Other comprehensive income attributable to HollyFrontier stockholders $ 4,584 $ 990 $ 3,594 Nine Months Ended September 30, 2018 Net change in foreign currency translation adjustment $ (15,118 ) $ (3,130 ) $ (11,988 ) Net unrealized gain on hedging instruments 1,796 453 1,343 Other comprehensive loss attributable to HollyFrontier stockholders $ (13,322 ) $ (2,677 ) $ (10,645 ) |
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 (In thousands) Three Months Ended 2019 2018 Hedging instruments: Commodity price swaps $ — $ (1,422 ) Sales and other revenues 6,027 — Cost of products sold (454 ) (209 ) Operating expenses 5,573 (1,631 ) 1,421 (416 ) Income tax expense (benefit) Total reclassifications for the period $ 4,152 $ (1,215 ) Net of tax Nine Months Ended 2019 2018 Hedging instruments: Commodity price swaps $ (1,799 ) $ (5,093 ) Sales and other revenues 15,323 — Cost of products sold (987 ) (945 ) Operating expenses 12,537 (6,038 ) 3,197 (1,540 ) Income tax expense (benefit) Total reclassifications for the period $ 9,340 $ (4,498 ) Net of tax |
Accumulated Other Comprehensive Loss In Equity | Accumulated other comprehensive income in the equity section of our consolidated balance sheets includes: September 30, December 31, (In thousands) Foreign currency translation adjustment $ (9,360 ) $ (12,676 ) Unrealized loss on pension obligation (1,404 ) (1,404 ) Unrealized gain on post-retirement benefit obligations 20,358 20,358 Unrealized gain on hedging instruments 7,623 7,345 Accumulated other comprehensive income $ 17,217 $ 13,623 |
Post-retirement Plan (Tables)
Post-retirement Plan (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
Schedule of Costs of Retirement Plans | net periodic pension expense consisted of the following components: Three Months Ended Nine Months Ended 2019 2018 2019 2018 (In thousands) Service cost - benefit earned during the period $ 1,209 $ 1,093 $ 3,605 $ 3,337 Interest cost on projected benefit obligations 450 556 1,325 1,698 Expected return on plan assets (822 ) (856 ) (2,441 ) (2,615 ) Amortization of loss 15 — 45 — Net periodic pension expense $ 852 $ 793 $ 2,534 $ 2,420 |
Net Periodic Pension Expense | The net periodic benefit credit of our post-retirement healthcare and other benefits plans consisted of the following components Three Months Ended Nine Months Ended 2019 2018 2019 2018 (In thousands) Service cost – benefit earned during the period $ 387 $ 411 $ 1,161 $ 1,238 Interest cost on projected benefit obligations 267 234 801 705 Amortization of prior service credit (870 ) (870 ) (2,611 ) (2,611 ) Amortization of gain (22 ) — (66 ) — Net periodic post-retirement credit $ (238 ) $ (225 ) $ (715 ) $ (668 ) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule Of Segment Reporting Information | Refining Lubricants and Specialty Products HEP Corporate, Other and Eliminations Consolidated Total (In thousands) Three Months Ended September 30, 2019 Sales and other revenues: Revenues from external customers $ 3,865,399 $ 529,561 $ 29,868 $ — $ 4,424,828 Intersegment revenues 81,571 8,157 106,027 (195,755 ) — $ 3,946,970 $ 537,718 $ 135,895 $ (195,755 ) $ 4,424,828 Cost of products sold (exclusive of lower of cost or market inventory) $ 3,177,167 $ 397,926 $ — $ (171,326 ) $ 3,403,767 Lower of cost or market inventory valuation adjustment $ 34,062 $ — $ — $ — $ 34,062 Operating expenses $ 276,869 $ 57,974 $ 44,924 $ (34,189 ) $ 345,578 Selling, general and administrative expenses $ 31,707 $ 43,875 $ 2,714 $ 9,330 $ 87,626 Depreciation and amortization $ 76,765 $ 22,700 $ 24,121 $ 3,430 $ 127,016 Income (loss) from operations $ 350,400 $ 15,243 $ 64,136 $ (3,000 ) $ 426,779 Earnings of equity method investments $ — $ — $ 1,334 $ — $ 1,334 Capital expenditures $ 53,506 $ 8,697 $ 6,076 $ 6,310 $ 74,589 Three Months Ended September 30, 2018 Sales and other revenues: Revenues from external customers $ 4,270,835 $ 474,260 $ 25,596 $ 108 $ 4,770,799 Intersegment revenues 101,334 1,626 100,188 (203,148 ) — $ 4,372,169 $ 475,886 $ 125,784 $ (203,040 ) $ 4,770,799 Cost of products sold (exclusive of lower of cost or market inventory) $ 3,572,593 $ 359,742 $ — $ (180,101 ) $ 3,752,234 Lower of cost or market inventory valuation adjustment $ 17,837 $ — $ — $ — $ 17,837 Operating expenses $ 262,010 $ 40,288 $ 35,995 $ (21,097 ) $ 317,196 Selling, general and administrative expenses $ 30,394 $ 33,514 $ 2,498 $ 4,724 $ 71,130 Depreciation and amortization $ 70,793 $ 11,139 $ 24,367 $ 2,586 $ 108,885 Income (loss) from operations $ 418,542 $ 31,203 $ 62,924 $ (9,152 ) $ 503,517 Earnings of equity method investments $ — $ — $ 1,114 $ — $ 1,114 Capital expenditures $ 47,088 $ 8,094 $ 9,541 $ 5,214 $ 69,937 Refining Lubricants and Specialty Products HEP Corporate, Other Consolidated (In thousands) Nine Months Ended September 30, 2019 Sales and other revenues: Revenues from external customers $ 11,446,841 $ 1,568,241 $ 89,388 $ 220 $ 13,104,690 Intersegment revenues 244,799 8,157 311,755 (564,711 ) — $ 11,691,640 $ 1,576,398 $ 401,143 $ (564,491 ) $ 13,104,690 Cost of products sold (exclusive of lower of cost or market inventory) $ 9,598,539 $ 1,202,296 $ — $ (492,979 ) $ 10,307,856 Lower of cost or market inventory valuation adjustment $ (150,483 ) $ — $ — $ — $ (150,483 ) Operating expenses $ 794,081 $ 170,655 $ 123,045 $ (77,359 ) $ 1,010,422 Selling, general and administrative expenses $ 88,322 $ 125,681 $ 7,322 $ 39,652 $ 260,977 Depreciation and amortization $ 227,405 $ 65,891 $ 72,192 $ 9,857 $ 375,345 Goodwill impairment $ — $ 152,712 $ — $ — $ 152,712 Income (loss) from operations $ 1,133,776 $ (140,837 ) $ 198,584 $ (43,662 ) $ 1,147,861 Earnings of equity method investments $ — $ — $ 5,217 $ — $ 5,217 Capital expenditures $ 129,167 $ 25,887 $ 23,828 $ 16,175 $ 195,057 Nine Months Ended September 30, 2018 Sales and other revenues: Revenues from external customers $ 11,915,797 $ 1,376,531 $ 77,799 $ 335 $ 13,370,462 Intersegment revenues 284,538 11,884 295,629 (592,051 ) — $ 12,200,335 $ 1,388,415 $ 373,428 $ (591,716 ) $ 13,370,462 Cost of products sold (exclusive of lower of cost or market inventory) $ 10,179,509 $ 1,040,414 $ — $ (524,648 ) $ 10,695,275 Lower of cost or market inventory valuation adjustment $ (192,927 ) $ — $ — $ — $ (192,927 ) Operating expenses $ 764,415 $ 125,101 $ 106,731 $ (62,548 ) $ 933,699 Selling, general and administrative expenses $ 82,966 $ 99,425 $ 8,293 $ 13,785 $ 204,469 Depreciation and amortization $ 210,957 $ 30,023 $ 74,117 $ 8,508 $ 323,605 Income (loss) from operations $ 1,155,415 $ 93,452 $ 184,287 $ (26,813 ) $ 1,406,341 Earnings of equity method investments $ — $ — $ 4,127 $ — $ 4,127 Capital expenditures $ 132,050 $ 23,138 $ 41,111 $ 12,779 $ 209,078 Refining Lubricants and Specialty Products HEP Corporate, Other and Eliminations Consolidated Total (In thousands) September 30, 2019 Cash and cash equivalents $ 21,443 $ 170,116 $ 7,469 $ 782,828 $ 981,856 Total assets $ 7,321,741 $ 2,139,092 $ 2,089,110 $ 641,385 $ 12,191,328 Long-term debt $ — $ — $ 1,431,869 $ 993,365 $ 2,425,234 December 31, 2018 Cash and cash equivalents $ 7,236 $ 80,931 $ 3,045 $ 1,063,540 $ 1,154,752 Total assets $ 6,465,155 $ 1,506,209 $ 2,142,027 $ 881,210 $ 10,994,601 Long-term debt $ — $ — $ 1,418,900 $ 992,640 $ 2,411,540 |
Description of Business and P_3
Description of Business and Presentation of Financial Statements (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)Petroleum_Refineriesmi | Sep. 30, 2018USD ($) | Feb. 01, 2019USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | |
Ownership Interest By Project Type [Line Items] | |||||||
Number of refineries located in Tulsa, Oklahoma | Petroleum_Refineries | 2 | ||||||
Refinery Distance From Main City [Miles] | mi | 65 | ||||||
Allowance for doubtful accounts reserve | $ 4,400 | $ 4,400 | $ 3,600 | ||||
Goodwill | 2,370,406 | 2,370,406 | 2,246,435 | ||||
Assets Acquired - Goodwill | 279,200 | 279,200 | |||||
Goodwill, Impairment Loss | 0 | $ 0 | 152,712 | $ 0 | |||
Proceeds from inventory repurchase agreements | 13,200 | 38,400 | |||||
Payments under inventory repurchase agreements | (12,500) | $ (39,300) | |||||
Operating Lease, Liability | 455,032 | $ 455,032 | $ 15,600 | $ 433,400 | |||
HEP | |||||||
Ownership Interest By Project Type [Line Items] | |||||||
Percentage of ownership in variable interest entity | 57.00% | ||||||
Goodwill | 312,873 | $ 312,873 | $ 314,229 | ||||
Refining | |||||||
Ownership Interest By Project Type [Line Items] | |||||||
Goodwill | 1,733,500 | 1,733,500 | |||||
Goodwill, Impairment Loss | 0 | ||||||
Lubricants and other specialty products - acquisition | |||||||
Ownership Interest By Project Type [Line Items] | |||||||
Goodwill | 324,100 | 324,100 | |||||
HEP | |||||||
Ownership Interest By Project Type [Line Items] | |||||||
Goodwill | $ 312,900 | 312,900 | |||||
Goodwill, Impairment Loss | $ 0 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Business Acquisition [Line Items] | ||||
Payments to Acquire Businesses, Gross | $ 662,700 | $ 662,665 | $ 0 | |
Assets Acquired - Cash and Equivalents | 38,900 | 38,900 | ||
Assets Acquired - Current Assets | 58,600 | 58,600 | ||
Assets Acquired - Inventories | 81,000 | 81,000 | ||
Assets Acquired - Property, Plant, and Equipment | 168,200 | 168,200 | ||
Assets Acquired - Goodwill | 279,200 | 279,200 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 214,600 | 214,600 | ||
Assets Acquired - Intangible Assets and Other Noncurrent Assets | 231,500 | 231,500 | ||
Liabilities Assumed - Accounts Payable and Accrued Liabilities | (47,000) | (47,000) | ||
Liabilities Assumed - Deferred Income Tax Liabilities | (84,500) | (84,500) | ||
Liabilities Assumed - Other Long-term Liabilities | (24,300) | (24,300) | ||
Assets Acquired and Liabilities Assumed, Net | 701,600 | $ 701,600 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 12 years | |||
Income (Loss) from Subsidiaries, before Tax | 6,600 | |||
Revenues | 88,100 | $ 253,500 | 5,000 | |
Acquisition Costs, Cumulative | 20,100 | 20,100 | ||
Business Acquisition, Pro Forma Revenue | 571,685 | 1,608,648 | 1,679,554 | |
Business Acquisition, Pro Forma Income (Loss) from Continuing Operations, Net of Tax | 39,496 | (127,972) | 110,424 | |
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 152,712 | $ 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Lessee, Lease, Description [Line Items] | |||
Lessor, Sales-type Lease, Lease Not yet Commenced, Assumption and Judgment, Value of Underlying Asset, Amount | $ 8,094 | ||
Finance lease term | 1 year | ||
Operating lease renewal term | 10 years | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease term | 60 years | ||
Subsequent Event [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 15 years | 5 years | |
Lessor, Sales-type Lease, Lease Not yet Commenced, Assumption and Judgment, Value of Underlying Asset, Amount | $ 6,800 | $ 400 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Feb. 01, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Operating leases: | ||||
Operating lease right-of-use assets | $ 453,377 | $ 0 | ||
Operating lease liabilities | 99,622 | 0 | ||
Noncurrent operating lease liabilities | 355,410 | $ 0 | ||
Total operating lease liabilities | 455,032 | $ 15,600 | $ 433,400 | |
Finance leases: | ||||
Properties, plants and equipment, at cost | 12,830 | |||
Accumulated amortization | (6,375) | |||
Properties, plants and equipment, net | 6,455 | |||
Accrued liabilities | 1,663 | |||
Other long-term liabilities | 4,929 | |||
Finance Lease, Liability | $ 6,592 | |||
Weighted average remaining lease term (in years) | ||||
Operating leases | 7 years 7 months 6 days | |||
Finance leases | 8 years 2 months 12 days | |||
Weighted average discount rate | ||||
Operating leases | 4.20% | |||
Finance leases | 5.30% |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease expense | $ 28,263 | $ 83,646 |
Finance lease expense: | ||
Amortization of right-of-use assets | 375 | 1,150 |
Interest on lease liabilities | 84 | 255 |
Variable lease cost | 1,862 | 3,251 |
Total lease expense | $ 30,584 | $ 88,302 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 88,500 | |
Operating cash flows from finance leases | 255 | |
Financing cash flows from finance leases | 1,158 | $ 0 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 80,211 |
Leases - Operating and Finance
Leases - Operating and Finance Lease Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Feb. 01, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Operating | ||||
2019 | $ 29,036 | |||
2020 | 107,362 | |||
2021 | 89,194 | |||
2022 | 75,923 | |||
2023 | 70,194 | |||
2024 and thereafter | 172,200 | |||
Total lease payments | 543,909 | |||
Less imputed interest | 88,877 | |||
Total operating lease liabilities | 455,032 | $ 15,600 | $ 433,400 | |
Less current obligations | 99,622 | $ 0 | ||
Noncurrent operating lease liabilities | 355,410 | $ 0 | ||
Finance | ||||
2019 | 500 | |||
2020 | 1,945 | |||
2021 | 1,123 | |||
2022 | 859 | |||
2023 | 895 | |||
2024 and thereafter | 2,772 | |||
Total lease payments | 8,094 | |||
Less imputed interest | 1,502 | |||
Finance Lease, Liability | 6,592 | |||
Less current obligations | 1,663 | |||
Long-term lease obligations | $ 4,929 |
Leases - Schedule of Lease Inco
Leases - Schedule of Lease Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
HEP | ||
Lessor, Lease, Description [Line Items] | ||
Operating lease revenues | $ 8,374 | $ 24,840 |
Leases - Schedule of Minimum Un
Leases - Schedule of Minimum Undiscounted Lease Payments (Details) - HEP $ in Thousands | Sep. 30, 2019USD ($) |
Lessor, Lease, Description [Line Items] | |
Remainder of 2019 | $ 8,010 |
2020 | 17,542 |
2021 | 12,794 |
2022 | 11,376 |
2023 | 11,248 |
Thereafter | 14,060 |
Total | $ 75,030 |
Holly Energy Partners (Details)
Holly Energy Partners (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 41 Months Ended | |
Sep. 30, 2019USD ($)$ / sharesshares | Sep. 30, 2019USD ($)Customers$ / sharesshares | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)$ / shares | |
Holly Energy Partners Entity [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | 50.00% | |
Partners' Capital Account, Units, Sold in Private Placement | shares | 3,700,000 | |||
Shares Issued, Price Per Share | $ / shares | $ 29.73 | $ 29.73 | $ 29.73 | |
Proceeds from Issuance of Private Placement | $ 110,000 | |||
Common Unit Issuance Program | $ 200,000 | |||
Common Stock, Shares, Issued | shares | 2,413,153 | |||
Proceeds from issuance of common units - HEP | $ 0 | $ 114,887 | $ 82,300 | |
Payments to Acquire Interest in Joint Venture | $ 65,000 | |||
HEP | ||||
Holly Energy Partners Entity [Line Items] | ||||
Percentage of ownership in variable interest entity | 57.00% | |||
HEP number of significant customers | Customers | 2 | |||
HFC Percentage of HEP Revenues | 78.00% | |||
Long-term Purchase Commitment with HEP | $ 349,000 | |||
UNEV Pipeline [Member] | ||||
Holly Energy Partners Entity [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 75.00% | 75.00% | 75.00% | |
Osage Pipeline [Member] [Member] | ||||
Holly Energy Partners Entity [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | 50.00% |
Revenues from Contracts with _3
Revenues from Contracts with Customers - Schedule of Disaggregated Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Disaggregation of Revenue [Line Items] | |||||
Sales and other revenues | $ 4,424,828 | $ 4,770,799 | $ 13,104,690 | $ 13,370,462 | |
Mid-Continent | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales and other revenues | 2,191,014 | 2,337,689 | 6,283,488 | 6,458,935 | |
Southwest | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales and other revenues | 913,326 | 1,016,771 | 2,772,281 | 2,865,324 | |
Rocky Mountains | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales and other revenues | 611,003 | 627,542 | 1,739,401 | 1,869,414 | |
Northeast | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales and other revenues | 151,919 | 85,344 | 427,926 | 261,380 | |
Canada | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales and other revenues | 184,784 | 190,727 | 536,911 | 563,088 | |
Europe and Asia | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales and other revenues | 63,855 | 51,515 | 216,544 | 153,218 | |
Transportation fuels | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales and other revenues | [1] | 3,354,927 | 3,598,815 | 9,796,334 | 10,193,218 |
Specialty lubricant products | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales and other revenues | [2] | 461,669 | 422,760 | 1,413,194 | 1,237,002 |
Asphalt, fuel oil and other products (3) | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales and other revenues | [3] | 299,305 | 288,013 | 767,023 | 741,139 |
Total refined product revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales and other revenues | 4,115,901 | 4,309,588 | 11,976,551 | 12,171,359 | |
Excess crude oil revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales and other revenues | [4] | 264,675 | 422,122 | 997,988 | 1,074,928 |
Transportation and logistic services | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales and other revenues | 29,868 | 25,596 | 89,388 | 77,799 | |
Other revenues (5) | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales and other revenues | [5] | 14,384 | 13,493 | 40,763 | 46,376 |
Refining | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales and other revenues | 3,865,399 | 4,270,835 | 11,446,841 | 11,915,797 | |
Refining | Asphalt, fuel oil and other products (3) | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales and other revenues | 231,400 | 234,900 | 612,000 | 589,700 | |
Lubricants and other specialty products | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales and other revenues | 529,561 | 474,260 | 1,568,241 | 1,376,531 | |
Lubricants and other specialty products | Asphalt, fuel oil and other products (3) | |||||
Disaggregation of Revenue [Line Items] | |||||
Sales and other revenues | $ 67,900 | $ 53,100 | $ 155,000 | $ 151,400 | |
[1] | Transportation fuels consist of gasoline, diesel and jet fuel. | ||||
[2] | Specialty lubricant products consist of base oil, waxes, finished lubricants and other specialty fluids. | ||||
[3] | Asphalt, fuel oil and other products revenue include revenues attributable to our Refining and Lubricants and Specialty Products segments of $231.4 million and $67.9 million , respectively, for the three months ended September 30, 2019 , $612.0 million and $155.0 million , respectively, for the nine months ended September 30, 2019 , $234.9 million and $53.1 million , respectively, for the three months ended September 30, 2018 , and $589.7 million and $151.4 million , respectively, for the nine months ended September 30, 2018 . | ||||
[4] | Excess crude oil revenues represent sales of purchased crude oil inventory that at times exceeds the supply needs of our refineries. | ||||
[5] | Other revenues are principally attributable to our Refining segment. |
Revenues from Contracts with _4
Revenues from Contracts with Customers - Contract Liabilities Rollforward (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Feb. 01, 2019 | Dec. 31, 2018 | |
Revenues from Customers Remaining Performance Obligations [Line Items] | |||
Contract with Customer, Liability | $ 4,715 | $ 6,463 | $ 132 |
Contract With Customer, Liability, Increase | 19,255 | ||
Contract with Customer, Liability, Revenue Recognized | $ (21,135) |
Revenues from Contracts with _5
Revenues from Contracts with Customers - HEP Future Performance Obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Feb. 01, 2019 | Dec. 31, 2018 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Contract with Customer, Liability | $ 4,715 | $ 6,463 | $ 132 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Refined product sales volumes, performance obligations expected to be satisfied | $ 5,610 | ||
Refined product sales volumes, performance obligations expected to be satisfied, expected timing | 9 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Refined product sales volumes, performance obligations expected to be satisfied | $ 7,964 | ||
Refined product sales volumes, performance obligations expected to be satisfied, expected timing | 1 year | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Refined product sales volumes, performance obligations expected to be satisfied | $ 1,847 | ||
Refined product sales volumes, performance obligations expected to be satisfied, expected timing | 1 year | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Refined product sales volumes, performance obligations expected to be satisfied | $ 0 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Refined product sales volumes, performance obligations expected to be satisfied | $ 15,421 |
Revenues from Contracts with _6
Revenues from Contracts with Customers - HEP Third-Party Customer Minimum Revenues (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
HEP contractual minimum revenues, performance obligations expected to be satisfied | $ 5,610 |
HEP contractual minimum revenues, performance obligations expected to be satisfied, expected timing | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | Third-Party Customer | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
HEP contractual minimum revenues, performance obligations expected to be satisfied | $ 10,695 |
HEP contractual minimum revenues, performance obligations expected to be satisfied, expected timing | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
HEP contractual minimum revenues, performance obligations expected to be satisfied | $ 7,964 |
HEP contractual minimum revenues, performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | Third-Party Customer | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
HEP contractual minimum revenues, performance obligations expected to be satisfied | $ 28,238 |
HEP contractual minimum revenues, performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
HEP contractual minimum revenues, performance obligations expected to be satisfied | $ 1,847 |
HEP contractual minimum revenues, performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | Third-Party Customer | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
HEP contractual minimum revenues, performance obligations expected to be satisfied | $ 22,822 |
HEP contractual minimum revenues, performance obligations expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
HEP contractual minimum revenues, performance obligations expected to be satisfied | $ 0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Third-Party Customer | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
HEP contractual minimum revenues, performance obligations expected to be satisfied | 38,575 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
HEP contractual minimum revenues, performance obligations expected to be satisfied | 15,421 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | Third-Party Customer | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
HEP contractual minimum revenues, performance obligations expected to be satisfied | $ 100,330 |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Values Of Debt Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Level 1 [Member] | ||
Debt Instrument [Line Items] | ||
Financial Assets Fair Value Disclosure | $ 2,976 | $ 2,473 |
Financial Liabilities Fair Value Disclosure | 0 | 0 |
Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Financial Assets Fair Value Disclosure | 21,971 | 37,807 |
Financial Liabilities Fair Value Disclosure | 2,478 | 6,177 |
Reported Value Measurement [Member] | ||
Debt Instrument [Line Items] | ||
Financial Assets Fair Value Disclosure | 24,947 | 40,280 |
Financial Liabilities Fair Value Disclosure | 2,478 | 6,177 |
Nymex Futures Contracts [Member] | ||
Debt Instrument [Line Items] | ||
Financial Assets Fair Value Disclosure | 2,473 | |
Nymex Futures Contracts [Member] | Level 1 [Member] | ||
Debt Instrument [Line Items] | ||
Financial Assets Fair Value Disclosure | 2,976 | 2,473 |
Nymex Futures Contracts [Member] | Reported Value Measurement [Member] | ||
Debt Instrument [Line Items] | ||
Financial Assets Fair Value Disclosure | 2,976 | |
Foreign Exchange Forward [Member] | Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Financial Assets Fair Value Disclosure | 2,511 | 25,956 |
Financial Liabilities Fair Value Disclosure | 17 | |
Foreign Exchange Forward [Member] | Reported Value Measurement [Member] | ||
Debt Instrument [Line Items] | ||
Financial Assets Fair Value Disclosure | 2,511 | 25,956 |
Financial Liabilities Fair Value Disclosure | 17 | |
Commodity Contract [Member] | Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Financial Assets Fair Value Disclosure | 18,007 | 10,817 |
Financial Liabilities Fair Value Disclosure | 1,094 | 956 |
Commodity Contract [Member] | Reported Value Measurement [Member] | ||
Debt Instrument [Line Items] | ||
Financial Assets Fair Value Disclosure | 18,007 | 10,817 |
Financial Liabilities Fair Value Disclosure | 1,094 | 956 |
Forward Contracts [Member] | Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Financial Assets Fair Value Disclosure | 1,453 | 1,034 |
Financial Liabilities Fair Value Disclosure | 1,367 | 1,137 |
Forward Contracts [Member] | Reported Value Measurement [Member] | ||
Debt Instrument [Line Items] | ||
Financial Assets Fair Value Disclosure | 1,453 | 1,034 |
Financial Liabilities Fair Value Disclosure | $ 1,367 | 1,137 |
Renewable Energy Program [Member] | Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 4,084 | |
Renewable Energy Program [Member] | Reported Value Measurement [Member] | ||
Debt Instrument [Line Items] | ||
Financial Liabilities Fair Value Disclosure | $ 4,084 |
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to HollyFrontier stockholders | $ 261,813 | $ 342,466 | $ 711,783 | $ 956,064 |
Participating securities’ (restricted stock) share in earnings | 385 | 1,171 | 1,033 | 3,321 |
Net income (loss) attributable to common shares | $ 261,428 | $ 341,295 | $ 710,750 | $ 952,743 |
Average number of shares of common stock outstanding | 163,676 | 175,097 | 167,935 | 175,865 |
Effect of dilutive variable restricted shares and performance share units | 1,335 | 1,830 | 1,190 | 1,692 |
Average number of shares of common stock outstanding assuming dilution | 165,011 | 176,927 | 169,125 | 177,557 |
Basic earnings (loss) per share | $ 1.60 | $ 1.95 | $ 4.23 | $ 5.42 |
Diluted earnings (loss) per share | $ 1.58 | $ 1.93 | $ 4.20 | $ 5.37 |
Excludes anti-dilutive restricted and performance share units of: | 109 | 0 | 120 | 2 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Expense | $ 9.2 | $ 8.1 | $ 30 | $ 23.8 |
HEP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Expense | 0.5 | $ 0.7 | 1.8 | $ 2.3 |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 0.9 | |||
Total unrecognized compensation cost related to non-vested grants | 14.4 | $ 14.4 | ||
Total unrecognized compensation cost, weighted-average period of recognition, years | 1 year | |||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total unrecognized compensation cost related to non-vested grants | $ 7.9 | $ 7.9 | ||
Total unrecognized compensation cost, weighted-average period of recognition, years | 10 months 24 days |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary Of Restricted Stock Activity) (Details) - Restricted Stock [Member] $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ | $ 900 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year |
Outstanding at January 1, 2019 (non-vested) | shares | 1,196,914 |
Granted | shares | 45,006 |
Vesting (transfer/conversion to common stock) | shares | (17,374) |
Forfeited | shares | (38,600) |
Outstanding at September 30, 2019 (non-vested) | shares | 1,185,946 |
Outstanding at January 1, 2019 (non-vested), Weighted Average Grant Date Fair Value | $ / shares | $ 46.81 |
Granted, Weighted Average Grant Date Fair Value | $ / shares | 52.97 |
Vesting and transfer of ownership to recipients, Weighted Average Grant Date Fair Value | $ / shares | 49.32 |
Forfeited, Weighted Average Grant Date Fair Value, per share | $ / shares | 47.97 |
Outstanding at September 30, 2019 (non-vested), Weighted Average Grant Date Fair Value | $ / shares | $ 46.97 |
Aggregate Intrinsic Value | $ | $ 63,614 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary Of Performance Share Unit Activity) (Details) - Performance Shares [Member] $ / shares in Units, $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding at January 1, 2019 (non-vested) | 662,431 |
Granted | 6,086 |
Forfeited | (4,516) |
Outstanding at September 30, 2019 (non-vested) | 664,001 |
Total unrecognized compensation cost related to non-vested grants | $ | $ 7.9 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 47.24 |
Total unrecognized compensation cost, weighted-average period of recognition, years | 10 months 24 days |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage Of Share Units Awarded Ultimately Issued | 0.00% |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage Of Share Units Awarded Ultimately Issued | 200.00% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Inventories | |||
Crude Oil | $ 472,932 | $ 503,705 | |
Other raw materials and unfinished products | [1] | 306,504 | 360,124 |
Finished products | [2] | 860,130 | 662,713 |
Lower of cost or market reserve | (209,655) | (360,138) | |
Process chemicals | [3] | 29,040 | 31,413 |
Repair and maintenance supplies and other | [4] | 178,108 | 156,562 |
Inventories, total | $ 1,637,059 | $ 1,354,379 | |
[1] | (1) Other raw materials and unfinished products include feedstocks and blendstocks, other than crude. | ||
[2] | (2) Finished products include gasolines, jet fuels, diesels, lubricants, asphalts, LPG’s and residual fuels. | ||
[3] | (3) Process chemicals include additives and other chemicals. | ||
[4] | (4) Includes RINs. |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Inventory Disclosure - Narrative [Abstract] | |||||||
Lower of Cost or Market Inventory Reserve | $ (209,700) | $ (209,700) | $ (360,100) | ||||
Inventory Valuation Reserves | 209,655 | 209,655 | $ 360,138 | ||||
Lower of cost or market inventory valuation adjustment | 34,062 | $ 17,837 | $ (150,483) | $ (192,927) | |||
Cost of Sales Reduction | $ 36,600 | $ 25,300 | $ 33,800 | ||||
Fuel Costs | $ 37,900 |
Environmental (Details)
Environmental (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Loss Contingencies [Line Items] | |||||
Environmental remediation costs | $ 1.8 | $ 3.3 | $ 5.5 | $ 4.9 | |
Accrued environmental liability | 109.9 | $ 109.9 | $ 110.2 | ||
Estimated time frame to remediate contigency | P30Y | ||||
Other Noncurrent Liabilities [Member] | |||||
Loss Contingencies [Line Items] | |||||
Accrued environmental liability | $ 92.4 | $ 92.4 | $ 93.8 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity under revolving credit agreement | $ 1,350,000 | $ 1,350,000 | |||
Letters of Credit Outstanding, Amount | 4,900 | 4,900 | |||
Proceeds from Long-term Lines of Credit | 269,500 | $ 256,000 | |||
Repayments of Long-term Lines of Credit | 257,000 | 347,000 | |||
Sale Leaseback Transaction, Net Proceeds, Financing Activities | 36,500 | $ 32,500 | |||
Capitalized Interest Costs | $ 700 | $ 1,300 | $ 1,800 | $ 3,300 | |
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% | 5.875% | |||
Senior notes | $ 1,000,000 | 1,000,000 | $ 1,000,000 | ||
HEP | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity under revolving credit agreement | 1,400,000 | 1,400,000 | |||
Line of Credit Facility, Capacity Available for Trade Purchases | 50,000 | 50,000 | |||
Line of credit facility, accordion feature | 300,000 | 300,000 | |||
Borrowings outstanding under revolving credit agreement | 935,500 | 923,000 | 935,500 | ||
HEP | Six Percent Senior Notes Due Two Thousand Twenty Four [Member] [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior notes | $ 500,000 | $ 500,000 | $ 500,000 |
Debt (Carrying Amounts Of Long-
Debt (Carrying Amounts Of Long-Term Debt) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 2,425,234 | $ 2,411,540 |
Long-term debt | 2,425,234 | 2,411,540 |
Five Point Eight Seven Five Percentage Senior Notes Due Two Thousand Twenty-Six [Member] [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 1,000,000 | 1,000,000 |
Unamortized discount | (6,635) | (7,360) |
Total long-term debt | 993,365 | 992,640 |
HEP | ||
Debt Instrument [Line Items] | ||
HEP Credit Agreement | 935,500 | 923,000 |
Total long-term debt | 1,431,869 | 1,418,900 |
Long-term Debt and Lease Obligation | 1,431,869 | 1,418,900 |
HEP | Six Percent Senior Notes Due Two Thousand Twenty Four [Member] [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 500,000 | 500,000 |
Unamortized discount | (3,631) | (4,100) |
Total long-term debt | 496,369 | 495,900 |
Level 2 [Member] | ||
Debt Instrument [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 2,478 | 6,177 |
Level 2 [Member] | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Financial Liabilities Fair Value Disclosure | 1,121,460 | 1,019,160 |
Level 2 [Member] | Senior Notes [Member] | HEP | ||
Debt Instrument [Line Items] | ||
Financial Liabilities Fair Value Disclosure | $ 523,220 | $ 488,310 |
Derivative Instruments And He_3
Derivative Instruments And Hedging Activities Derivatives and Hedging Instruments Gains Losses due to Settlements Hedge Ineffectiveness (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | $ (7,562) | $ 5,792 | $ 372 | $ 1,796 |
Sales and other revenues | 4,424,828 | 4,770,799 | 13,104,690 | 13,370,462 |
Cost of products sold | 3,403,767 | 3,752,234 | 10,307,856 | 10,695,275 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Other Cost and Expense, Operating | 5,573 | (1,631) | 12,537 | (6,038) |
Commodity Contract [Member] | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | (7,562) | 5,792 | 372 | 1,796 |
Commodity Contract [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Trading Activity, Gains and Losses, Net [Line Items] | ||||
Sales and other revenues | 0 | (1,422) | (1,799) | (5,093) |
Cost of products sold | 6,027 | 0 | 15,323 | 0 |
Operating Expenses | $ (454) | $ (209) | $ (987) | $ (945) |
Derivative Instruments And He_4
Derivative Instruments And Hedging Activities Volumes related to price risk purchase derivatives (Details) - Not Designated as Hedging Instrument [Member] | 9 Months Ended |
Sep. 30, 2019USD ($)bbl | |
Price Risk Derivatives for Future Purchases Notional Contract Volumes [Line Items] | |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | $ | $ 434,443,896 |
Maturing in Next Twelve Months [Member] | |
Price Risk Derivatives for Future Purchases Notional Contract Volumes [Line Items] | |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | $ | 114,213,501 |
Maturing in Year Two [Member] | |
Price Risk Derivatives for Future Purchases Notional Contract Volumes [Line Items] | |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | $ | $ 320,230,395 |
NYMEX WTI Short [Member] | |
Price Risk Derivatives for Future Purchases Notional Contract Volumes [Line Items] | |
Price Risk Fair Value Hedge Derivative, at Fair Value, Net | bbl | 1,825,000 |
NYMEX WTI Short [Member] | Maturing in Next Twelve Months [Member] | |
Price Risk Derivatives for Future Purchases Notional Contract Volumes [Line Items] | |
Price Risk Fair Value Hedge Derivative, at Fair Value, Net | bbl | 1,713,000 |
NYMEX WTI Short [Member] | Maturing in Year Two [Member] | |
Price Risk Derivatives for Future Purchases Notional Contract Volumes [Line Items] | |
Price Risk Fair Value Hedge Derivative, at Fair Value, Net | bbl | 112,000 |
Derivative Instruments And He_5
Derivative Instruments And Hedging Activities Schedule of Realized Gain (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | $ (7,562) | $ 5,792 | $ 372 | $ 1,796 |
Sales and other revenues | 4,424,828 | 4,770,799 | 13,104,690 | 13,370,462 |
Gain (Loss) on Price Risk Hedge Ineffectiveness | 12,633 | (15,304) | (10,417) | (2,076) |
Cost of products sold | 3,403,767 | 3,752,234 | 10,307,856 | 10,695,275 |
Commodity Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | (7,562) | 5,792 | 372 | 1,796 |
Commodity Contract [Member] | Cost of Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Price Risk Hedge Ineffectiveness | 8,640 | (8,252) | 1,561 | (20,580) |
Commodity Contract [Member] | Interest Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Price Risk Hedge Ineffectiveness | (1,720) | 0 | (2,995) | 0 |
Foreign Currency Gain (Loss) [Member] | Other Nonoperating Income (Expense) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Price Risk Hedge Ineffectiveness | 5,713 | (7,052) | (8,983) | 18,504 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Cost and Expense, Operating | 5,573 | (1,631) | 12,537 | (6,038) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Commodity Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Sales and other revenues | 0 | (1,422) | (1,799) | (5,093) |
Cost of products sold | 6,027 | 0 | 15,323 | 0 |
Operating Expenses | $ (454) | $ (209) | $ (987) | $ (945) |
Derivative Instruments And He_6
Derivative Instruments And Hedging Activities Notional Contracts by Derivative Type (Details) | 9 Months Ended |
Sep. 30, 2019USD ($)MMBTUbblXPT ( ) | |
Platinum, Ounces | |
Economic hedges by derivative type [Line Items] | |
Derivative forward contract - platinum | | 41,147 |
Designated as Hedging Instrument [Member] | Natural Gas [Member] | |
Economic hedges by derivative type [Line Items] | |
Derivative, Nonmonetary Notional Amount, Energy Measure | MMBTU | 4,050,000 |
Designated as Hedging Instrument [Member] | Price Risk Derivative [Member] | |
Economic hedges by derivative type [Line Items] | |
Price Risk Fair Value Hedge Derivative, at Fair Value, Net | 5,954,000 |
Designated as Hedging Instrument [Member] | Crude Oil [Member] | |
Economic hedges by derivative type [Line Items] | |
Price Risk Fair Value Hedge Derivative, at Fair Value, Net | 423,739 |
Designated as Hedging Instrument [Member] | Maturing in Next Twelve Months [Member] | Natural Gas [Member] | |
Economic hedges by derivative type [Line Items] | |
Derivative, Nonmonetary Notional Amount, Energy Measure | MMBTU | 450,000 |
Designated as Hedging Instrument [Member] | Maturing in Next Twelve Months [Member] | Price Risk Derivative [Member] | |
Economic hedges by derivative type [Line Items] | |
Price Risk Fair Value Hedge Derivative, at Fair Value, Net | 1,196,000 |
Designated as Hedging Instrument [Member] | Maturing in Next Twelve Months [Member] | Crude Oil [Member] | |
Economic hedges by derivative type [Line Items] | |
Price Risk Fair Value Hedge Derivative, at Fair Value, Net | 423,739 |
Designated as Hedging Instrument [Member] | Maturing in Year Two [Member] | Natural Gas [Member] | |
Economic hedges by derivative type [Line Items] | |
Derivative, Nonmonetary Notional Amount, Energy Measure | MMBTU | 1,800,000 |
Designated as Hedging Instrument [Member] | Maturing in Year Two [Member] | Price Risk Derivative [Member] | |
Economic hedges by derivative type [Line Items] | |
Price Risk Fair Value Hedge Derivative, at Fair Value, Net | 4,758,000 |
Designated as Hedging Instrument [Member] | Maturing in Year Three [Member] | Natural Gas [Member] | |
Economic hedges by derivative type [Line Items] | |
Derivative, Nonmonetary Notional Amount, Energy Measure | MMBTU | 1,800,000 |
Designated as Hedging Instrument [Member] | Maturing in Year Three [Member] | Price Risk Derivative [Member] | |
Economic hedges by derivative type [Line Items] | |
Price Risk Fair Value Hedge Derivative, at Fair Value, Net | 0 |
Not Designated as Hedging Instrument [Member] | |
Economic hedges by derivative type [Line Items] | |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | $ | $ 434,443,896 |
Not Designated as Hedging Instrument [Member] | WTI Crude Oil [Member] | |
Economic hedges by derivative type [Line Items] | |
Price Risk Fair Value Hedge Derivative, at Fair Value, Net | 200,000 |
Not Designated as Hedging Instrument [Member] | Forward gasoline and diesel contracts [Member] | |
Economic hedges by derivative type [Line Items] | |
Price Risk Fair Value Hedge Derivative, at Fair Value, Net | 538,500 |
Not Designated as Hedging Instrument [Member] | Physical contracts - long [Domain] | |
Economic hedges by derivative type [Line Items] | |
Price Risk Fair Value Hedge Derivative, at Fair Value, Net | 350,000 |
Not Designated as Hedging Instrument [Member] | Physical contracts - short [Member] | |
Economic hedges by derivative type [Line Items] | |
Price Risk Fair Value Hedge Derivative, at Fair Value, Net | 350,000 |
Not Designated as Hedging Instrument [Member] | Forward Contracts [Member] | |
Economic hedges by derivative type [Line Items] | |
Price Risk Fair Value Hedge Derivative, at Fair Value, Net | 140,849 |
Not Designated as Hedging Instrument [Member] | Crude Oil [Member] | |
Economic hedges by derivative type [Line Items] | |
Price Risk Fair Value Hedge Derivative, at Fair Value, Net | 1,464,000 |
Not Designated as Hedging Instrument [Member] | NYMEX WTI Short [Member] | |
Economic hedges by derivative type [Line Items] | |
Price Risk Fair Value Hedge Derivative, at Fair Value, Net | 1,825,000 |
Not Designated as Hedging Instrument [Member] | Maturing in Next Twelve Months [Member] | |
Economic hedges by derivative type [Line Items] | |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | $ | $ 114,213,501 |
Not Designated as Hedging Instrument [Member] | Maturing in Next Twelve Months [Member] | WTI Crude Oil [Member] | |
Economic hedges by derivative type [Line Items] | |
Price Risk Fair Value Hedge Derivative, at Fair Value, Net | 200,000 |
Not Designated as Hedging Instrument [Member] | Maturing in Next Twelve Months [Member] | Forward gasoline and diesel contracts [Member] | |
Economic hedges by derivative type [Line Items] | |
Price Risk Fair Value Hedge Derivative, at Fair Value, Net | 538,500 |
Not Designated as Hedging Instrument [Member] | Maturing in Next Twelve Months [Member] | Physical contracts - long [Domain] | |
Economic hedges by derivative type [Line Items] | |
Price Risk Fair Value Hedge Derivative, at Fair Value, Net | 350,000 |
Not Designated as Hedging Instrument [Member] | Maturing in Next Twelve Months [Member] | Physical contracts - short [Member] | |
Economic hedges by derivative type [Line Items] | |
Price Risk Fair Value Hedge Derivative, at Fair Value, Net | 350,000 |
Not Designated as Hedging Instrument [Member] | Maturing in Next Twelve Months [Member] | Platinum, Ounces | |
Economic hedges by derivative type [Line Items] | |
Derivative forward contract - platinum | | 41,147 |
Not Designated as Hedging Instrument [Member] | Maturing in Next Twelve Months [Member] | Forward Contracts [Member] | |
Economic hedges by derivative type [Line Items] | |
Price Risk Fair Value Hedge Derivative, at Fair Value, Net | 140,849 |
Not Designated as Hedging Instrument [Member] | Maturing in Next Twelve Months [Member] | Crude Oil [Member] | |
Economic hedges by derivative type [Line Items] | |
Price Risk Fair Value Hedge Derivative, at Fair Value, Net | 0 |
Not Designated as Hedging Instrument [Member] | Maturing in Next Twelve Months [Member] | NYMEX WTI Short [Member] | |
Economic hedges by derivative type [Line Items] | |
Price Risk Fair Value Hedge Derivative, at Fair Value, Net | 1,713,000 |
Not Designated as Hedging Instrument [Member] | Maturing in Year Two [Member] | |
Economic hedges by derivative type [Line Items] | |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | $ | $ 320,230,395 |
Not Designated as Hedging Instrument [Member] | Maturing in Year Two [Member] | Crude Oil [Member] | |
Economic hedges by derivative type [Line Items] | |
Price Risk Fair Value Hedge Derivative, at Fair Value, Net | 1,464,000 |
Not Designated as Hedging Instrument [Member] | Maturing in Year Two [Member] | NYMEX WTI Short [Member] | |
Economic hedges by derivative type [Line Items] | |
Price Risk Fair Value Hedge Derivative, at Fair Value, Net | 112,000 |
Derivative Instruments And He_7
Derivative Instruments And Hedging Activities (Narrative) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Derivative [Line Items] | |
Net unrealized loss in accumulated other comprehensive income related to accounting hedges | $ 10.2 |
Net unrealized loss to be transferred from accumulated other comprehensive income to statement of income | $ 10.3 |
Derivative Instruments And He_8
Derivative Instruments And Hedging Activities Interest Rate Swaps (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative [Line Items] | ||||
Interest expense | $ 36,027 | $ 32,399 | $ 106,938 | $ 97,446 |
Derivative Instruments And He_9
Derivative Instruments And Hedging Activities (Summary Of Balance Sheet Locations And Related Fair Values Of Outstanding Derivative Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Derivative Asset Fair Value Net Asset | $ 24,947 | $ 40,280 |
Derivative Liability Fair Value Net Liability | 2,478 | 2,093 |
Accrued Liabilities [Member] | ||
Derivative [Line Items] | ||
Derivative Liability Fair Value Net Liability | 1,922 | 1,137 |
Other Intangible Assets [Member] | ||
Derivative [Line Items] | ||
Derivative Asset Fair Value Net Asset | 1,652 | 2,298 |
Prepayments And Other [Member] | ||
Derivative [Line Items] | ||
Derivative Asset Fair Value Net Asset | 23,295 | 37,982 |
Other Noncurrent Liabilities [Member] | ||
Derivative [Line Items] | ||
Derivative Liability Fair Value Net Liability | 556 | 956 |
Forward Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | |
Derivative Asset Fair Value Gross Liability | 0 | |
Derivative Asset Fair Value Net Asset | 0 | |
Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 13,182 | 11,790 |
Derivative Asset Fair Value Gross Liability | (1,576) | (973) |
Derivative Asset Fair Value Net Asset | 11,606 | 10,817 |
Derivative Liability Fair Value Gross Liability | 1,872 | 1,755 |
Derivative Liability Fair Value Gross Asset | (500) | (799) |
Derivative Liability Fair Value Net Liability | 1,372 | 956 |
Designated as Hedging Instrument [Member] | Commodity Contract [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 13,182 | 11,790 |
Derivative Asset Fair Value Gross Liability | (1,576) | (973) |
Derivative Asset Fair Value Net Asset | 11,606 | 10,817 |
Derivative Liability Fair Value Gross Liability | 1,614 | 1,755 |
Derivative Liability Fair Value Gross Asset | (500) | (799) |
Derivative Liability Fair Value Net Liability | 1,114 | 956 |
Designated as Hedging Instrument [Member] | Forward Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative Liability Fair Value Gross Liability | 258 | |
Derivative Liability Fair Value Gross Asset | 0 | |
Derivative Liability Fair Value Net Liability | 258 | |
Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 13,341 | 29,463 |
Derivative Asset Fair Value Gross Liability | 0 | 0 |
Derivative Asset Fair Value Net Asset | 13,341 | 29,463 |
Derivative Liability Fair Value Gross Liability | 1,126 | 1,137 |
Derivative Liability Fair Value Gross Asset | (20) | 0 |
Derivative Liability Fair Value Net Liability | 1,106 | 1,137 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 2,511 | 25,956 |
Derivative Asset Fair Value Gross Liability | 0 | |
Derivative Asset Fair Value Net Asset | 2,511 | 25,956 |
Derivative Liability Fair Value Gross Liability | 17 | |
Derivative Liability Fair Value Gross Asset | 0 | |
Derivative Liability Fair Value Net Liability | 17 | |
Not Designated as Hedging Instrument [Member] | NYMEX WTI Short [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 2,473 | |
Derivative Asset Fair Value Gross Liability | 0 | |
Derivative Asset Fair Value Net Asset | 2,473 | |
Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 6,401 | |
Derivative Asset Fair Value Gross Liability | 0 | |
Derivative Asset Fair Value Net Asset | 6,401 | |
Derivative Liability Fair Value Gross Liability | 0 | 1,137 |
Derivative Liability Fair Value Gross Asset | (20) | |
Derivative Liability Fair Value Net Liability | (20) | 1,137 |
Not Designated as Hedging Instrument [Member] | Forward Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 1,453 | 1,034 |
Derivative Asset Fair Value Gross Liability | 0 | |
Derivative Asset Fair Value Net Asset | 1,453 | $ 1,034 |
Derivative Liability Fair Value Gross Liability | 1,109 | |
Derivative Liability Fair Value Gross Asset | 0 | |
Derivative Liability Fair Value Net Liability | 1,109 | |
Not Designated as Hedging Instrument [Member] | Nymex Futures Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 2,976 | |
Derivative Asset Fair Value Gross Liability | 0 | |
Derivative Asset Fair Value Net Asset | $ 2,976 |
Equity (Changes To Equity) (Det
Equity (Changes To Equity) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 313.2 | |
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | 5,359 | 12,593 |
Repurchase Agreements [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Repurchase Program, Authorized Amount | $ 1,000 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Components And Allocated Tax Effects Of Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other Comprehensive Income (Loss) Components and Tax Effects [Line Items] | |||||||
Net change in foreign currency translation adjustment, before Tax | $ (9,311) | $ 8,325 | $ 4,212 | $ (15,118) | |||
Net unrealized gain (loss) on hedging instruments | (7,562) | 5,792 | 372 | 1,796 | |||
Net change in foreign currency translation adjustment, tax | (1,959) | 1,756 | 896 | (3,130) | |||
Net unrealized gain (loss) on hedging instruments, tax expense (benefit) | (1,929) | 1,478 | 94 | 453 | |||
Net change in foreign currency translation, net of tax | (7,352) | 6,569 | 3,316 | (11,988) | |||
Net unrealized gain (loss) on hedging instruments, after tax | (5,633) | 4,314 | 278 | 1,343 | |||
Other Comprehensive Income (Loss), before Tax | (16,873) | 14,117 | 4,584 | (13,322) | |||
Other Comprehensive Income (Loss), Tax | (3,888) | 3,234 | 990 | (2,677) | |||
Other comprehensive income (loss), net of tax | $ (12,985) | $ 2,804 | $ 13,775 | $ 10,883 | $ (13,580) | $ 3,594 | $ (10,645) |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) (Accumulated Other Comprehensive Loss In Equity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||
Sales and other revenues | $ 4,424,828 | $ 4,770,799 | $ 13,104,690 | $ 13,370,462 | |||
Cost of products sold | 3,403,767 | 3,752,234 | 10,307,856 | 10,695,275 | |||
Operating expenses | 345,578 | 317,196 | 1,010,422 | 933,699 | |||
Income before income taxes | 401,001 | 478,390 | 1,071,145 | 1,332,649 | |||
Income tax expense (benefit) | 103,021 | 116,258 | 279,862 | 318,742 | |||
Other comprehensive income (loss), net of tax | (12,985) | $ 2,804 | $ 13,775 | 10,883 | $ (13,580) | 3,594 | (10,645) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||
Other comprehensive income (loss), net of tax | 4,152 | (1,215) | 9,340 | (4,498) | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Commodity Contract [Member] | |||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||
Sales and other revenues | 0 | (1,422) | (1,799) | (5,093) | |||
Cost of products sold | 6,027 | 0 | 15,323 | 0 | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||
Income before income taxes | 5,573 | (1,631) | 12,537 | (6,038) | |||
Income tax expense (benefit) | 1,421 | (416) | 3,197 | (1,540) | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Commodity Contract [Member] | |||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||
Sales and other revenues | 0 | (1,422) | (1,799) | (5,093) | |||
Cost of products sold | 6,027 | 0 | 15,323 | 0 | |||
Operating expenses | $ (454) | $ (209) | $ (987) | $ (945) |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) Other Comprehensive Income Balance Components (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Other Comprehensive Income (Loss), Tax [Abstract] | ||
Foreign currency translation adjustment | $ (9,360) | $ (12,676) |
Unrealized loss on pension obligation | (1,404) | (1,404) |
Unrealized gain on post-retirement benefit obligations | 20,358 | 20,358 |
Unrealized loss on hedging instruments | 7,623 | 7,345 |
Accumulated other comprehensive income | $ 17,217 | $ 13,623 |
Post-retirement Plan (Narrative
Post-retirement Plan (Narrative) (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 2.20% | 5.00% |
Post-retirement Plan (Net Perio
Post-retirement Plan (Net Periodic Pension Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Service Cost | $ 1,209 | $ 1,093 | $ 3,605 | $ 3,337 |
Interest cost on projected benefit obligations | 450 | 556 | 1,325 | 1,698 |
Expected return on plan assets | (822) | (856) | (2,441) | (2,615) |
Defined Benefit Plan, Amortization of Gain (Loss) | 15 | 0 | 45 | 0 |
Net periodic pension expense | 852 | 793 | 2,534 | 2,420 |
Other Postretirement Benefits Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Service Cost | 387 | 411 | 1,161 | 1,238 |
Interest cost on projected benefit obligations | 267 | 234 | 801 | 705 |
Amortization of prior service credit | (870) | (870) | (2,611) | (2,611) |
Defined Benefit Plan, Amortization of Gain (Loss) | 22 | 0 | 66 | 0 |
Net periodic post-retirement credit | $ (238) | $ (225) | $ (715) | $ (668) |
Contingencies Contingencies (De
Contingencies Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Contingency claim [Abstract] | ||
Business Combination, Change in Amount of Contingent Consideration, Liability | $ 20 | |
Business Interruption Insurance Recoveries | $ 56 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 3 Months Ended |
Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | |
Number of Reportable Segments | 3 |
Equity Method Investment, Ownership Percentage | 50.00% |
UNEV Pipeline [Member] | |
Segment Reporting Information [Line Items] | |
Equity Method Investment, Ownership Percentage | 75.00% |
Segment Information (Schedule O
Segment Information (Schedule Of Segment Reporting Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | $ 4,424,828 | $ 4,770,799 | $ 13,104,690 | $ 13,370,462 | |
Intersegment Revenues | 0 | 0 | 0 | 0 | |
Revenues | 4,424,828 | 4,770,799 | 13,104,690 | 13,370,462 | |
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) | 3,403,767 | 3,752,234 | 10,307,856 | 10,695,275 | |
Lower of cost or market inventory valuation adjustment | 34,062 | 17,837 | (150,483) | (192,927) | |
Operating expenses | 345,578 | 317,196 | 1,010,422 | 933,699 | |
Selling, general and administrative expenses | 87,626 | 71,130 | 260,977 | 204,469 | |
Depreciation and amortization | 127,016 | 108,885 | 375,345 | 323,605 | |
Goodwill, Impairment Loss | 0 | 0 | 152,712 | 0 | |
Income from operations | 426,779 | 503,517 | 1,147,861 | 1,406,341 | |
Earnings of equity method investments | 1,334 | 1,114 | 5,217 | 4,127 | |
Capital expenditures | 74,589 | 69,937 | 195,057 | 209,078 | |
Cash, cash equivalents, and total investments in marketable securities | 981,856 | 981,856 | $ 1,154,752 | ||
Total assets | 12,191,328 | 12,191,328 | 10,994,601 | ||
Long-term debt | 2,425,234 | 2,425,234 | 2,411,540 | ||
Refining | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 3,865,399 | 4,270,835 | 11,446,841 | 11,915,797 | |
Intersegment Revenues | 81,571 | 101,334 | 244,799 | 284,538 | |
Revenues | 3,946,970 | 4,372,169 | 11,691,640 | 12,200,335 | |
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) | 3,177,167 | 3,572,593 | 9,598,539 | 10,179,509 | |
Lower of cost or market inventory valuation adjustment | 34,062 | 17,837 | (150,483) | (192,927) | |
Operating expenses | 276,869 | 262,010 | 794,081 | 764,415 | |
Selling, general and administrative expenses | 31,707 | 30,394 | 88,322 | 82,966 | |
Depreciation and amortization | 76,765 | 70,793 | 227,405 | 210,957 | |
Goodwill, Impairment Loss | 0 | ||||
Income from operations | 350,400 | 418,542 | 1,133,776 | 1,155,415 | |
Earnings of equity method investments | 0 | 0 | 0 | 0 | |
Capital expenditures | 53,506 | 47,088 | 129,167 | 132,050 | |
Cash, cash equivalents, and total investments in marketable securities | 21,443 | 21,443 | 7,236 | ||
Total assets | 7,321,741 | 7,321,741 | 6,465,155 | ||
Long-term debt | 0 | 0 | 0 | ||
Lubricants and other specialty products | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 529,561 | 474,260 | 1,568,241 | 1,376,531 | |
Intersegment Revenues | 8,157 | 1,626 | 8,157 | 11,884 | |
Revenues | 537,718 | 475,886 | 1,576,398 | 1,388,415 | |
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) | 397,926 | 359,742 | 1,202,296 | 1,040,414 | |
Lower of cost or market inventory valuation adjustment | 0 | 0 | 0 | 0 | |
Operating expenses | 57,974 | 40,288 | 170,655 | 125,101 | |
Selling, general and administrative expenses | 43,875 | 33,514 | 125,681 | 99,425 | |
Depreciation and amortization | 22,700 | 11,139 | 65,891 | 30,023 | |
Goodwill, Impairment Loss | 152,712 | ||||
Income from operations | 15,243 | 31,203 | (140,837) | 93,452 | |
Earnings of equity method investments | 0 | 0 | 0 | 0 | |
Capital expenditures | 8,697 | 8,094 | 25,887 | 23,138 | |
Cash, cash equivalents, and total investments in marketable securities | 170,116 | 170,116 | 80,931 | ||
Total assets | 2,139,092 | 2,139,092 | 1,506,209 | ||
Long-term debt | 0 | 0 | 0 | ||
HEP | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 29,868 | 25,596 | 89,388 | 77,799 | |
Intersegment Revenues | 106,027 | 100,188 | 311,755 | 295,629 | |
Revenues | 135,895 | 125,784 | 401,143 | 373,428 | |
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) | 0 | 0 | 0 | 0 | |
Lower of cost or market inventory valuation adjustment | 0 | 0 | 0 | 0 | |
Operating expenses | 44,924 | 35,995 | 123,045 | 106,731 | |
Selling, general and administrative expenses | 2,714 | 2,498 | 7,322 | 8,293 | |
Depreciation and amortization | 24,121 | 24,367 | 72,192 | 74,117 | |
Goodwill, Impairment Loss | 0 | ||||
Income from operations | 64,136 | 62,924 | 198,584 | 184,287 | |
Earnings of equity method investments | 1,334 | 1,114 | 5,217 | 4,127 | |
Capital expenditures | 6,076 | 9,541 | 23,828 | 41,111 | |
Cash, cash equivalents, and total investments in marketable securities | 7,469 | 7,469 | 3,045 | ||
Total assets | 2,089,110 | 2,089,110 | 2,142,027 | ||
Long-term debt | 1,431,869 | 1,431,869 | 1,418,900 | ||
Corporate, Other and Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Revenues from external customers | 0 | 108 | 220 | 335 | |
Intersegment Revenues | (195,755) | (203,148) | (564,711) | (592,051) | |
Revenues | (195,755) | (203,040) | (564,491) | (591,716) | |
Cost of products sold (exclusive of lower of cost or market inventory valuation adjustment) | (171,326) | (180,101) | (492,979) | (524,648) | |
Lower of cost or market inventory valuation adjustment | 0 | 0 | 0 | 0 | |
Operating expenses | (34,189) | (21,097) | (77,359) | (62,548) | |
Selling, general and administrative expenses | 9,330 | 4,724 | 39,652 | 13,785 | |
Depreciation and amortization | 3,430 | 2,586 | 9,857 | 8,508 | |
Goodwill, Impairment Loss | 0 | ||||
Income from operations | (3,000) | (9,152) | (43,662) | (26,813) | |
Earnings of equity method investments | 0 | 0 | 0 | 0 | |
Capital expenditures | 6,310 | $ 5,214 | 16,175 | $ 12,779 | |
Cash, cash equivalents, and total investments in marketable securities | 782,828 | 782,828 | 1,063,540 | ||
Total assets | 641,385 | 641,385 | 881,210 | ||
Long-term debt | $ 993,365 | $ 993,365 | $ 992,640 |