Supplemental Guarantor/Non-Guarantor Financial Information

6 Months Ended

Jun. 30, 2012

Supplemental Guarantor / Non-Guarantor Financial Information [Abstract]

Supplemental Guarantor/Non-Guarantor Financial Information

Supplemental Guarantor/Non-Guarantor Financial Information

Our obligations under the HollyFrontier Senior Notes have been jointly and severally guaranteed by the substantial majority of our existing and future restricted subsidiaries (“Guarantor Restricted Subsidiaries”). These guarantees are full and unconditional. HEP, in which we have a 42% ownership interest at June 30, 2012, and its subsidiaries (collectively, “Non-Guarantor Non-Restricted Subsidiaries”), and certain of our other subsidiaries (“Non-Guarantor Restricted Subsidiaries”) have not guaranteed these obligations.

The following condensed consolidating financial information is provided for HollyFrontier Corporation (the “Parent”), the Guarantor Restricted Subsidiaries, the Non-Guarantor Restricted Subsidiaries and the Non-Guarantor Non-Restricted Subsidiaries. The information has been presented as if the Parent accounted for its ownership in the Guarantor Restricted Subsidiaries, and the Guarantor Restricted Subsidiaries accounted for the ownership of the Non-Guarantor Restricted Subsidiaries and Non-Guarantor Non-Restricted Subsidiaries, using the equity method of accounting. The Guarantor Restricted Subsidiaries and the Non-Guarantor Restricted Subsidiaries are collectively the “Restricted Subsidiaries.”

Our revaluation of HEP’s assets and liabilities at March 1, 2008 (date of reconsolidation) resulted in basis adjustments to our consolidated HEP balances. Therefore, our reported amounts for the HEP segment may not agree to amounts reported in HEP’s periodic public filings.

Condensed Consolidating Balance Sheet
June 30, 2012	Parent		Guarantor Restricted Subsidiaries			Non- Guarantor Restricted Subsidiaries			Eliminations			HollyFrontier Corp. Before Consolidation of HEP		Non-Guarantor Non-Restricted Subsidiaries (HEP Segment)		Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	1,366,416	$	1,564		$	2		$	—		$	1,367,982	$	4,216	$	—		$	1,372,198
Marketable securities	266,477		6			—			—			266,483		—		—			266,483
Accounts receivable, net	2,771		600,822			1,051			—			604,644		30,169		(31,087		)	603,726
Intercompany accounts receivable (payable)	2,378,862		(2,686,908		)	308,046			—			—		—		—			—
Inventories	—		1,308,493			—			—			1,308,493		1,326		—			1,309,819
Income taxes receivable	93,644		—			4			—			93,648		—		—			93,648
Prepayments and other	13,396		47,437			1,043			—			61,876		2,084		(4,142		)	59,818
Total current assets	4,121,566		(728,586		)	310,146			—			3,703,126		37,795		(35,229		)	3,705,692
Properties, plants and equip, net	20,116		2,085,903			403,452			—			2,509,471		584,702		(5,867		)	3,088,306
Marketable securities (long-term)	9,765		—			—			—			9,765		—		—			9,765
Investment in subsidiaries	2,331,322		629,603			(244,218		)	(2,716,707		)	—		—		—			—
Intangibles and other assets	9,804		2,204,370			25,000			(25,000		)	2,214,174		366,173		(1,578		)	2,578,769
Total assets	$	6,492,573	$	4,191,290		$	494,380		$	(2,741,707	)	$	8,436,536	$	988,670	$	(42,674	)	$	9,382,532
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	28,972	$	1,086,102		$	2,534		$	—		$	1,117,608	$	9,695	$	(31,087	)	$	1,096,216
Income taxes payable	13,712		148,553			—			—			162,265		—		—			162,265
Accrued liabilities	67,237		48,259			4,715			—			120,211		17,749		(4,142		)	133,818
Deferred income tax liabilities	185,777		(16,381		)	(10		)	—			169,386		—		—			169,386
Total current liabilities	295,698		1,266,533			7,239			—			1,569,470		27,444		(35,229		)	1,561,685
Long-term debt	669,983		28,173			—			—			698,156		613,195		(16,188		)	1,295,163
Deferred income tax liabilities	163,090		247,020			967			—			411,077		—		4,951			416,028
Other long-term liabilities	90,426		93,132			—			(25,000		)	158,558		6,195		(2,722		)	162,031
Investment in HEP	—		225,110			—			—			225,110		—		(225,110		)	—
Equity – HollyFrontier	5,273,376		2,331,322			486,174			(2,817,496		)	5,273,376		341,836		(285,751		)	5,329,461
Equity – noncontrolling interest	—		—			—			100,789			100,789		—		517,375			618,164
Total liabilities and equity	$	6,492,573	$	4,191,290		$	494,380		$	(2,741,707	)	$	8,436,536	$	988,670	$	(42,674	)	$	9,382,532

Condensed Consolidating Balance Sheet
December 31, 2011	Parent			Guarantor Restricted Subsidiaries			Non- Guarantor Restricted Subsidiaries			Eliminations			HollyFrontier Corp. Before Consolidation of HEP		Non-Guarantor Non-Restricted Subsidiaries (HEP Segment)		Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	1,575,891		$	(3,358	)	$	3,102		$	—		$	1,575,635	$	3,269	$	—		$	1,578,904
Marketable securities	210,886			753			—			—			211,639		—		—			211,639
Accounts receivable, net	8,317			699,056			3,074			—			710,447		34,071		(35,661		)	708,857
Intercompany accounts receivable (payable)	3,075,563			(3,374,597		)	299,034			—			—		—		—			—
Inventories	—			1,113,136			—			—			1,113,136		1,483		—			1,114,619
Income taxes receivable	87,273			4			—			—			87,277		—		—			87,277
Prepayments and other	19,379			202,428			1,089			—			222,896		1,161		(4,607		)	219,450
Total current assets	4,977,309			(1,362,578		)	306,299			—			3,921,030		39,984		(40,268		)	3,920,746
Properties, plants and equip, net	26,702			2,043,257			398,984			—			2,468,943		590,243		(6,281		)	3,052,905
Marketable securities (long-term)	50,067			—			—			—			50,067		—		—			50,067
Investment in subsidiaries	1,160,801			593,118			(240,060		)	(1,513,859		)	—		—		—			—
Intangibles and other assets	19,329			2,242,197			—			—			2,261,526		364,893		(73,894		)	2,552,525
Total assets	$	6,234,208		$	3,515,994		$	465,223		$	(1,513,859	)	$	8,701,566	$	995,120	$	(120,443	)	$	9,576,243
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	23,497		$	1,494,453		$	10,999		$	—		$	1,528,949	$	11,406	$	(35,661	)	$	1,504,694
Income taxes payable	(109,320		)	149,686			—			—			40,366		—		—			40,366
Accrued liabilities	53,390			103,636			1,236			—			158,262		16,285		(4,607		)	169,940
Deferred income tax liabilities	192,073			(16,390		)	—			—			175,683		—		—			175,683
Total current liabilities	159,640			1,731,385			12,235			—			1,903,260		27,691		(40,268		)	1,890,683
Long-term debt	651,261			54,070			—			—			705,331		598,761		(89,350		)	1,214,742
Deferred income tax liabilities	162,021			295,893			856			—			458,770		—		4,951			463,721
Other long-term liabilities	116,443			52,892			—			—			169,335		4,000		(2,138		)	171,197
Investment in HEP	—			220,953			—			—			220,953		—		(220,953		)	—
Equity – HollyFrontier Corporation	5,144,843			1,160,801			452,132			(1,612,933		)	5,144,843		364,668		(305,501		)	5,204,010
Equity – noncontrolling interest	—			—			—			99,074			99,074		—		532,816			631,890
Total liabilities and equity	$	6,234,208		$	3,515,994		$	465,223		$	(1,513,859	)	$	8,701,566	$	995,120	$	(120,443	)	$	9,576,243

Condensed Consolidating Statement of Income and Comprehensive Income
Three Months Ended June 30, 2012	Parent			Guarantor Restricted Subsidiaries			Non- Guarantor Restricted Subsidiaries			Eliminations			HollyFrontier Corp. Before Consolidation of HEP			Non-Guarantor Non-Restricted Subsidiaries (HEP Segment)			Eliminations			Consolidated
	(In thousands)
Sales and other revenues	$	100		$	4,795,719		$	4,061		$	(2,670	)	$	4,797,210		$	63,692		$	(54,221	)	$	4,806,681
Operating costs and expenses:
Cost of products sold	—			3,737,717			—			(2,596		)	3,735,121			—			(53,357		)	3,681,764
Operating expenses	—			201,876			3,061			—			204,937			17,923			(134		)	222,726
General and administrative	29,451			146			22			—			29,619			2,487			—			32,106
Depreciation and amortization	876			43,963			3,588			—			48,427			8,728			(207		)	56,948
Total operating costs and expenses	30,327			3,983,702			6,671			(2,596		)	4,018,104			29,138			(53,698		)	3,993,544
Income (loss) from operations	(30,227		)	812,017			(2,610		)	(74		)	779,106			34,554			(523		)	813,137
Other income (expense):
Earnings of equity method investments	823,251			11,927			13,613			(835,086		)	13,705			794			(13,613		)	886
Interest income (expense)	(13,424		)	(944		)	176			—			(14,192		)	(12,665		)	596			(26,261		)
Gain on sale of marketable securities	—			326			—			—			326			—			—			326
	809,827			11,309			13,789			(835,086		)	(161		)	(11,871		)	(13,017		)	(25,049		)
Income before income taxes	779,600			823,326			11,179			(835,160		)	778,945			22,683			(13,540		)	788,088
Income tax provision	285,643			—			—			—			285,643			75			—			285,718
Net income	493,957			823,326			11,179			(835,160		)	493,302			22,608			(13,540		)	502,370
Less net income attributable to noncontrolling interest	—			—			—			(656		)	(656		)	—			9,527			8,871
Net income attributable to HollyFrontier stockholders	$	493,957		$	823,326		$	11,179		$	(834,504	)	$	493,958		$	22,608		$	(23,067	)	$	493,499
Comprehensive income attributable to HollyFrontier stockholders	$	509,400		$	830,977		$	11,179		$	(834,504	)	$	517,052		$	22,373		$	(22,930	)	$	516,495

Condensed Consolidating Statement of Income and Comprehensive Income
Three Months Ended June 30, 2011	Parent			Guarantor Restricted Subsidiaries			Non- Guarantor Restricted Subsidiaries			Eliminations			HollyFrontier Corp. Before Consolidation of HEP			Non-Guarantor Non-Restricted Subsidiaries (HEP Segment)			Eliminations			Consolidated
	(In thousands)
Sales and other revenues	$	153		$	2,953,226		$	—		$	—		$	2,953,379		$	50,940		$	(37,186	)	$	2,967,133
Operating costs and expenses:
Cost of products sold	—			2,483,435			—			—			2,483,435			—			(36,340		)	2,447,095
Operating expenses	—			124,992			121			—			125,113			14,366			(134		)	139,345
General and administrative	16,976			133			—			—			17,109			1,573			—			18,682
Depreciation and amortization	907			23,644			179			—			24,730			7,309			(207		)	31,832
Total operating costs and expenses	17,883			2,632,204			300			—			2,650,387			23,248			(36,681		)	2,636,954
Income (loss) from operations	(17,730		)	321,022			(300		)	—			302,992			27,692			(505		)	330,179
Other income (expense):
Earnings of equity method investments	329,496			9,268			9,480			(338,764		)	9,480			467			(9,480		)	467
Interest income (expense)	(5,063		)	(795		)	13			—			(5,845		)	(9,286		)	595			(14,536		)
Merger transaction costs	(2,316		)	—			—			—			(2,316		)	—			—			(2,316		)
	322,117			8,473			9,493			(338,764		)	1,319			(8,819		)	(8,885		)	(16,385		)
Income before income taxes	304,387			329,495			9,193			(338,764		)	304,311			18,873			(9,390		)	313,794
Income tax provision	111,943			—			—			—			111,943			18			—			111,961
Net income	192,444			329,495			9,193			(338,764		)	192,368			18,855			(9,390		)	201,833
Less net income attributable to noncontrolling interest	—			—			—			(75		)	(75		)	—			9,673			9,598
Net income attributable to HollyFrontier stockholders	$	192,444		$	329,495		$	9,193		$	(338,689	)	$	192,443		$	18,855		$	(19,063	)	$	192,235
Comprehensive income attributable to HollyFrontier stockholders	$	192,510		$	329,113		$	9,193		$	(338,689	)	$	192,127		$	19,126		$	(19,240	)	$	192,013

Condensed Consolidating Statement of Income and Comprehensive Income
Six Months Ended June 30, 2012	Parent			Guarantor Restricted Subsidiaries			Non- Guarantor Restricted Subsidiaries			Eliminations			HollyFrontier Corp. Before Consolidation of HEP			Non-Guarantor Non-Restricted Subsidiaries (HEP Segment)			Eliminations			Consolidated
	(In thousands)
Sales and other revenues	$	199		$	9,715,457		$	8,179		$	(5,614	)	$	9,718,221		$	127,207		$	(107,009	)	$	9,738,419
Operating costs and expenses:
Cost of products sold	—			7,979,509			—			(5,540		)	7,973,969			—			(105,288		)	7,868,681
Operating expenses	—			423,667			6,117			(75		)	429,709			34,911			(267		)	464,353
General and administrative	54,424			662			22			—			55,108			4,526			—			59,634
Depreciation and amortization	1,979			85,774			7,124			—			94,877			18,587			(414		)	113,050
Total operating costs and expenses	56,403			8,489,612			13,263			(5,615		)	8,553,663			58,024			(105,969		)	8,505,718
Income (loss) from operations	(56,204		)	1,225,845			(5,084		)	1			1,164,558			69,183			(1,040		)	1,232,701
Other income (expense):
Earnings of equity method investments	1,247,902			23,131			26,577			(1,271,055		)	26,555			1,625			(26,577		)	1,603
Interest income (expense)	(27,447		)	(1,400		)	375			—			(28,472		)	(31,835		)	1,191			(59,116		)
Gain on sale of marketable securities	—			326			—			—			326			—			—			326
	1,220,455			22,057			26,952			(1,271,055		)	(1,591		)	(30,210		)	(25,386		)	(57,187		)
Income before income taxes	1,164,251			1,247,902			21,868			(1,271,054		)	1,162,967			38,973			(26,426		)	1,175,514
Income tax provision	425,974			—			—			—			425,974			150			—			426,124
Net income	738,277			1,247,902			21,868			(1,271,054		)	736,993			38,823			(26,426		)	749,390
Less net income attributable to noncontrolling interest	—			—			—			(1,285		)	(1,285		)	—			15,480			14,195
Net income attributable to HollyFrontier stockholders	$	738,277		$	1,247,902		$	21,868		$	(1,269,769	)	$	738,278		$	38,823		$	(41,906	)	$	735,195
Comprehensive income attributable to HollyFrontier stockholders	$	673,129		$	1,240,467		$	21,868		$	(1,269,769	)	$	665,695		$	39,508		$	(42,306	)	$	662,897

Condensed Consolidating Statement of Income and Comprehensive Income
Six Months Ended June 30, 2011	Parent			Guarantor Restricted Subsidiaries			Non- Guarantor Restricted Subsidiaries			Eliminations			HollyFrontier Corp. Before Consolidation of HEP			Non-Guarantor Non-Restricted Subsidiaries (HEP Segment)			Eliminations			Consolidated
	(In thousands)
Sales and other revenues	$	801		$	5,268,318		$	—		$	—		$	5,269,119		$	95,945		$	(71,346	)	$	5,293,718
Operating costs and expenses:
Cost of products sold	—			4,501,361			—			—			4,501,361			—			(69,649		)	4,431,712
Operating expenses	—			246,677			509			—			247,186			27,162			(260		)	274,088
General and administrative	32,329			235			—			—			32,564			2,936			—			35,500
Depreciation and amortization	1,847			46,805			358			—			49,010			14,544			(414		)	63,140
Total operating costs and expenses	34,176			4,795,078			867			—			4,830,121			44,642			(70,323		)	4,804,440
Income (loss) from operations	(33,375		)	473,240			(867		)	—			438,998			51,303			(1,023		)	489,278
Other income (expense):
Earnings of equity method investments	488,453			16,831			17,500			(505,284		)	17,500			1,207			(17,500		)	1,207
Interest income (expense)	(11,872		)	(1,618		)	26			—			(13,464		)	(18,398		)	1,207			(30,655		)
Merger transaction costs	(6,014		)	—			—			—			(6,014		)	—			—			(6,014		)
	470,567			15,213			17,526			(505,284		)	(1,978		)	(17,191		)	(16,293		)	(35,462		)
Income before income taxes	437,192			488,453			16,659			(505,284		)	437,020			34,112			(17,316		)	453,816
Income tax provision	160,726			—			—			—			160,726			246			—			160,972
Net income	276,466			488,453			16,659			(505,284		)	276,294			33,866			(17,316		)	292,844
Less net income attributable to noncontrolling interest	—			—			—			(172		)	(172		)	—			16,087			15,915
Net income attributable to HollyFrontier stockholders	$	276,466		$	488,453		$	16,659		$	(505,112	)	$	276,466		$	33,866		$	(33,403	)	$	276,929
Comprehensive income attributable to HollyFrontier stockholders	$	276,337		$	488,204		$	16,659		$	(505,111	)	$	276,089		$	36,440		$	(35,443	)	$	277,086

Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2012	Parent			Guarantor Restricted Subsidiaries			Non- Guarantor Restricted Subsidiaries			HollyFrontier Corp. Before Consolidation of HEP			Non-Guarantor Non-Restricted Subsidiaries (HEP Segment)			Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities	$	347,534		$	45,516		$	(6,489	)	$	386,561		$	73,500		$	(30,558	)	$	429,503
Cash flows from investing activities
Additions to properties, plants and equip	(1,679		)	(102,722		)	(11,611		)	(116,012		)	—			—			(116,012		)
Additions to properties, plants and equip – HEP	—			—			—			—			(12,008		)	—			(12,008		)
Investment in Sabine Biofuels	—			(2,000		)	—			(2,000		)	—			—			(2,000		)
Purchases of marketable securities	(166,429		)	—			—			(166,429		)	—			—			(166,429		)
Sales and maturities of marketable securities	151,066			930			—			151,996			—			—			151,996
	(17,042		)	(103,792		)	(11,611		)	(132,445		)	(12,008		)	—			(144,453		)
Cash flows from financing activities
Net repayments under credit agreement – HEP	—			—			—			—			(30,000		)	—			(30,000		)
Repayment of promissory notes	—			72,900			—			72,900			(72,900		)	—			—
Net proceeds from issuance of senior notes - HEP	—			—			—			—			294,750			—			294,750
Repayment of senior notes - HFC	(5,000		)	—			—			(5,000		)	—			—			(5,000		)
Principal tender on senior notes - HEP	—			—			—			—			(185,000		)	—			(185,000		)
Purchase of treasury stock	(189,771		)	—			—			(189,771		)	—			—			(189,771		)
Net prepayment related to structured stock repurchase agreement	(100,000		)	—			—			(100,000		)	—			—			(100,000		)
Contribution from joint venture partner	—			(9,000		)	15,000			6,000			—			—			6,000
Dividends	(249,958		)	—			—			(249,958		)	—			—			(249,958		)
Distributions to noncontrolling interest	—			—			—			—			(59,977		)	31,033			(28,944		)
Excess tax benefit from equity-based compensation	4,762			—			—			4,762			—			—			4,762
Purchase of units for restricted grants - HEP	—			—			—			—			(4,533		)	—			(4,533		)
Deferred financing costs	—			(67		)	—			(67		)	(3,162		)	—			(3,229		)
Other	—			(635		)	—			(635		)	277			(475		)	(833		)
	(539,967		)	63,198			15,000			(461,769		)	(60,545		)	30,558			(491,756		)
Cash and cash equivalents
Increase (decrease) for the period	(209,475		)	4,922			(3,100		)	(207,653		)	947			—			(206,706		)
Beginning of period	1,575,891			(3,358		)	3,102			1,575,635			3,269			—			1,578,904
End of period	$	1,366,416		$	1,564		$	2		$	1,367,982		$	4,216		$	—		$	1,372,198

Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2011	Parent			Guarantor Restricted Subsidiaries			Non- Guarantor Restricted Subsidiaries			HollyFrontier Corp. Before Consolidation of HEP			Non-Guarantor Non-Restricted Subsidiaries (HEP Segment)			Eliminations			Consolidated
	(In thousands)
Cash flows from operating activities	$	304,061		$	122,324		$	5,051		$	431,436		$	46,289		$	(19,729	)	$	457,996
Cash flows from investing activities:
Additions to properties, plants and equip	(2,623		)	(51,382		)	(79,400		)	(133,405		)	—			—			(133,405		)
Additions to properties, plants and equip – HEP	—			—			—			—			(22,900		)	—			(22,900		)
Investment in Sabine Biofuels	(9,125		)	—			—			(9,125		)	—			—			(9,125		)
Purchases of marketable securities	(157,782		)	—			—			(157,782		)	—			—			(157,782		)
Sales and maturities of marketable securities	68,150			—			—			68,150			—			—			68,150
	(101,380		)	(51,382		)	(79,400		)	(232,162		)	(22,900		)	—			(255,062		)
Cash flows from financing activities:
Net borrowings under credit agreement – HEP	—			—			—			—			27,000			—			27,000
Purchase of treasury stock	(2,996		)	—			—			(2,996		)	—			—			(2,996		)
Contribution from joint venture partner	—			(63,000		)	79,500			16,500			—			—			16,500
Dividends	(15,984		)	—			—			(15,984		)	—			—			(15,984		)
Distributions to noncontrolling interest	—			—			—			—			(44,862		)	19,729			(25,133		)
Excess tax benefit from equity-based compensation	498			—			—			498			—			—			498
Purchase of units for restricted grants - HEP	—			—			—			—			(1,379		)	—			(1,379		)
Deferred financing costs	(140		)	—			—			(140		)	(3,149		)	—			(3,289		)
Other	—			(563		)	—			(563		)	—			—			(563		)
	(18,622		)	(63,563		)	79,500			(2,685		)	(22,390		)	19,729			(5,346		)
Cash and cash equivalents
Increase (decrease) for the period:	184,059			7,379			5,151			196,589			999			—			197,588
Beginning of period	230,082			(9,035		)	7,651			228,698			403			—			229,101
End of period	$	414,141		$	(1,656	)	$	12,802		$	425,287		$	1,402		$	—		$	426,689