Supplemental Guarantor/Non-Guarantor Financial Information

9 Months Ended

Sep. 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 44% ownership interest at September 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.”

HEP acquired our 75% interest in UNEV in July 2012. As a result, we have recast our HEP segment information to include the UNEV Pipeline operations as a consolidated subsidiary of HEP for all periods presented. The UNEV Pipeline was previously presented as a Non-Guarantor Restricted Subsidiary.

Condensed Consolidating Balance Sheet
September 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	$	2,053,324	$	2,089		$	2		$	—		$	2,055,415	$	1,993	$	—		$	2,057,408
Marketable securities	280,401		8			—			—			280,409		—		—			280,409
Accounts receivable, net	2,265		732,777			—			—			735,042		42,832		(41,000		)	736,874
Intercompany accounts receivable (payable)	1,175,041		(1,431,906		)	256,865			—			—		—		—			—
Inventories	—		1,484,217			—			—			1,484,217		1,233		—			1,485,450
Income taxes receivable	40,544		—			4			—			40,548		—		—			40,548
Prepayments and other	6,557		29,973			—			—			36,530		3,080		(8,378		)	31,232
Total current assets	3,558,132		817,158			256,871			—			4,632,161		49,138		(49,378		)	4,631,921
Properties, plants and equip, net	22,483		2,108,183			—			—			2,130,666		994,926		(5,660		)	3,119,932
Marketable securities (long-term)	5,519		—			—			—			5,519		—		—			5,519
Investment in subsidiaries	3,251,918		280,048			(181,421		)	(3,350,545		)	—		—		—			—
Intangibles and other assets	9,608		2,215,337			25,000			(25,000		)	2,224,945		365,087		(1,468		)	2,588,564
Total assets	$	6,847,660	$	5,420,726		$	100,450		$	(3,375,545	)	$	8,993,291	$	1,409,151	$	(56,506	)	$	10,345,936
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	135,714	$	1,424,692		$	4		$	—		$	1,560,410	$	11,303	$	(40,999	)	$	1,530,714
Income taxes payable	2,319		148,580			—			—			150,899		—		—			150,899
Accrued liabilities	87,232		120,858			954			—			209,044		19,315		(8,379		)	219,980
Deferred income tax liabilities	191,958		(16,381		)	(10		)	—			175,567		—		—			175,567
Total current liabilities	417,223		1,677,749			948			—			2,095,920		30,618		(49,378		)	2,077,160
Long-term debt	460,139		27,704			—			—			487,843		874,434		(16,050		)	1,346,227
Deferred income tax liabilities	189,613		203,766			875			—			394,254		—		4,951			399,205
Other long-term liabilities	91,153		92,733			—			(25,000		)	158,886		7,574		(2,612		)	163,848
Investment in HEP	—		166,856			—			—			166,856		—		(166,856		)	—
Equity – HollyFrontier	5,689,532		3,251,918			98,627			(3,350,545		)	5,689,532		396,644		(321,900		)	5,764,276
Equity – noncontrolling interest	—		—			—			—			—		99,881		495,339			595,220
Total liabilities and equity	$	6,847,660	$	5,420,726		$	100,450		$	(3,375,545	)	$	8,993,291	$	1,409,151	$	(56,506	)	$	10,345,936

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	)	$	2		$	—		$	1,572,535	$	6,369	$	—		$	1,578,904
Marketable securities	210,886			753			—			—			211,639		—		—			211,639
Accounts receivable, net	8,317			698,911			—			—			707,228		37,290		(35,661		)	708,857
Intercompany accounts receivable (payable)	3,075,563			(3,373,844		)	298,281			—			—		—		—			—
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			4			—			221,811		2,246		(4,607		)	219,450
Total current assets	4,977,309			(1,361,970		)	298,287			—			3,913,626		47,388		(40,268		)	3,920,746
Properties, plants and equip, net	26,702			2,026,105			—			—			2,052,807		1,006,379		(6,281		)	3,052,905
Marketable securities (long-term)	50,067			—			—			—			50,067		—		—			50,067
Investment in subsidiaries	846,359			295,902			(240,060		)	(902,201		)	—		—		—			—
Intangibles and other assets	19,329			2,242,197			—			—			2,261,526		364,893		(73,894		)	2,552,525
Total assets	$	5,919,766		$	3,202,234		$	58,227		$	(902,201	)	$	8,278,026	$	1,418,660	$	(120,443	)	$	9,576,243
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	23,497		$	1,494,790		$	359		$	—		$	1,518,646	$	21,709	$	(35,661	)	$	1,504,694
Income taxes payable	(109,320		)	149,686			—			—			40,366		—		—			40,366
Accrued liabilities	53,390			103,981			1,170			—			158,541		16,006		(4,607		)	169,940
Deferred income tax liabilities	192,073			(16,390		)	—			—			175,683		—		—			175,683
Total current liabilities	159,640			1,732,067			1,529			—			1,893,236		37,715		(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	4,830,401			846,359			55,842			(902,201		)	4,830,401		679,182		(305,573		)	5,204,010
Equity – noncontrolling interest	—			—			—			—			—		99,002		532,888			631,890
Total liabilities and equity	$	5,919,766		$	3,202,234		$	58,227		$	(902,201	)	$	8,278,026	$	1,418,660	$	(120,443	)	$	9,576,243

Condensed Consolidating Statement of Income and Comprehensive Income
Three Months Ended September 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	$	195		$	5,192,846		$	35		$	—		$	5,193,076		$	72,496		$	(60,774	)	$	5,204,798
Operating costs and expenses:
Cost of products sold	—			3,958,261			—			—			3,958,261			—			(59,525		)	3,898,736
Operating expenses	—			213,021			9			—			213,030			21,324			(495		)	233,859
General and administrative	26,723			637			28			—			27,388			1,399			—			28,787
Depreciation and amortization	4,665			48,018			—			—			52,683			12,636			(207		)	65,112
Total operating costs and expenses	31,388			4,219,937			37			—			4,251,362			35,359			(60,227		)	4,226,494
Income (loss) from operations	(31,193		)	972,909			(2		)	—			941,714			37,137			(547		)	978,304
Other income (expense):
Earnings of equity method investments	988,255			15,720			15,586			(1,004,000		)	15,561			877			(15,586		)	852
Interest income (expense)	(6,747		)	(374		)	161			—			(6,960		)	(12,432		)	508			(18,884		)
	981,508			15,346			15,747			(1,004,000		)	8,601			(11,555		)	(15,078		)	(18,032		)
Income before income taxes	950,315			988,255			15,745			(1,004,000		)	950,315			25,582			(15,625		)	960,272
Income tax provision	349,485			—			—			—			349,485			137			—			349,622
Net income	600,830			988,255			15,745			(1,004,000		)	600,830			25,445			(15,625		)	610,650
Less net income attributable to noncontrolling interest	—			—			—			—			—			10,277			—			10,277
Net income attributable to HollyFrontier stockholders	$	600,830		$	988,255		$	15,745		$	(1,004,000	)	$	600,830		$	15,168		$	(15,625	)	$	600,373
Comprehensive income attributable to HollyFrontier stockholders	$	502,238		$	1,018,987		$	15,745		$	(1,004,000	)	$	532,970		$	14,932		$	(15,625	)	$	532,277

Condensed Consolidating Statement of Income and Comprehensive Income
Three Months Ended September 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	$	266		$	5,164,628		$	33	$	—		$	5,164,927		$	49,131		$	(40,660	)	$	5,173,398
Operating costs and expenses:
Cost of products sold	—			4,029,997			—		—			4,029,997			—			(40,070		)	3,989,927
Operating expenses	—			213,002			7		—			213,009			15,015			(141		)	227,883
General and administrative	39,555			1,562			—		—			41,117			2,024			—			43,141
Depreciation and amortization	872			35,070			—		—			35,942			7,505			(207		)	43,240
Total operating costs and expenses	40,427			4,279,631			7		—			4,320,065			24,544			(40,418		)	4,304,191
Income (loss) from operations	(40,161		)	884,997			26		—			844,862			24,587			(242		)	869,207
Other income (expense):
Earnings of equity method investments	892,420			8,400			8,469		(900,929		)	8,360			641			(8,469		)	532
Interest income (expense)	(15,162		)	(977		)	14		—			(16,125		)	(9,391		)	646			(24,870		)
Merger transaction costs	(9,100		)	—			—		—			(9,100		)	—			—			(9,100		)
	868,158			7,423			8,483		(900,929		)	(16,865		)	(8,750		)	(7,823		)	(33,438		)
Income before income taxes	827,997			892,420			8,509		(900,929		)	827,997			15,837			(8,065		)	835,769
Income tax provision	304,835			—			—		—			304,835			(77		)	—			304,758
Net income	523,162			892,420			8,509		(900,929		)	523,162			15,914			(8,065		)	531,011
Less net income attributable to noncontrolling interest	—			—			—		—			—			7,923			—			7,923
Net income attributable to HollyFrontier stockholders	$	523,162		$	892,420		$	8,509	$	(900,929	)	$	523,162		$	7,991		$	(8,065	)	$	523,088
Comprehensive income attributable to HollyFrontier stockholders	$	514,759		$	913,835		$	8,509	$	(900,929	)	$	536,174		$	8,368		$	(8,065	)	$	536,477

Condensed Consolidating Statement of Income and Comprehensive Income
Nine Months Ended September 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	$	394		$	14,908,154		$	138	$	—		$	14,908,686		$	207,250		$	(172,719	)	$	14,943,217
Operating costs and expenses:
Cost of products sold	—			11,932,230			—		—			11,932,230			—			(164,813		)	11,767,417
Operating expenses	—			642,153			33		—			642,186			61,724			(5,698		)	698,212
General and administrative	81,147			1,299			50		—			82,496			5,925			—			88,421
Depreciation and amortization	6,644			133,456			—		—			140,100			38,683			(621		)	178,162
Total operating costs and expenses	87,791			12,709,138			83		—			12,797,012			106,332			(171,132		)	12,732,212
Income (loss) from operations	(87,397		)	2,199,016			55		—			2,111,674			100,918			(1,587		)	2,211,005
Other income (expense):
Earnings of equity method investments	2,240,275			42,707			42,163		(2,283,029		)	42,116			2,502			(42,163		)	2,455
Interest income (expense)	(34,194		)	(1,774		)	536		—			(35,432		)	(44,306		)	1,738			(78,000		)
Gain on sale of marketable securities	—			326			—		—			326			—			—			326
	2,206,081			41,259			42,699		(2,283,029		)	7,010			(41,804		)	(40,425		)	(75,219		)
Income before income taxes	2,118,684			2,240,275			42,754		(2,283,029		)	2,118,684			59,114			(42,012		)	2,135,786
Income tax provision	775,459			—			—		—			775,459			287			—			775,746
Net income	1,343,225			2,240,275			42,754		(2,283,029		)	1,343,225			58,827			(42,012		)	1,360,040
Less net income attributable to noncontrolling interest	—			—			—		—			—			24,472			—			24,472
Net income attributable to HollyFrontier stockholders	$	1,343,225		$	2,240,275		$	42,754	$	(2,283,029	)	$	1,343,225		$	34,355		$	(42,012	)	$	1,335,568
Comprehensive income attributable to HollyFrontier stockholders	$	1,179,627		$	2,263,429		$	42,754	$	(2,283,029	)	$	1,202,781		$	34,405		$	(42,012	)	$	1,195,174

Condensed Consolidating Statement of Income and Comprehensive Income
Nine Months Ended September 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	$	1,067		$	10,432,420		$	33		$	—		$	10,433,520		$	144,916		$	(111,320	)	$	10,467,116
Operating costs and expenses:
Cost of products sold	—			8,531,358			—			—			8,531,358			—			(109,719		)	8,421,639
Operating expenses	—			459,679			186			—			459,865			41,821			285			501,971
General and administrative	71,884			1,769			—			—			73,653			4,988			—			78,641
Depreciation and amortization	2,719			81,875			—			—			84,594			22,407			(621		)	106,380
Total operating costs and expenses	74,603			9,074,681			186			—			9,149,470			69,216			(110,055		)	9,108,631
Income (loss) from operations	(73,536		)	1,357,739			(153		)	—			1,284,050			75,700			(1,265		)	1,358,485
Other income (expense):
Earnings of equity method investments	1,380,375			25,231			25,454			(1,405,715		)	25,345			1,848			(25,454		)	1,739
Interest income (expense)	(27,033		)	(2,595		)	39			—			(29,589		)	(27,789		)	1,853			(55,525		)
Merger transaction costs	(15,114		)	—			—			—			(15,114		)	—			—			(15,114		)
	1,338,228			22,636			25,493			(1,405,715		)	(19,358		)	(25,941		)	(23,601		)	(68,900		)
Income before income taxes	1,264,692			1,380,375			25,340			(1,405,715		)	1,264,692			49,759			(24,866		)	1,289,585
Income tax provision	465,561			—			—			—			465,561			169			—			465,730
Net income	799,131			1,380,375			25,340			(1,405,715		)	799,131			49,590			(24,866		)	823,855
Less net income attributable to noncontrolling interest	—			—			—			—			—			23,838			—			23,838
Net income attributable to HollyFrontier stockholders	$	799,131		$	1,380,375		$	25,340		$	(1,405,715	)	$	799,131		$	25,752		$	(24,866	)	$	800,017
Comprehensive income attributable to HollyFrontier stockholders	$	790,561		$	1,401,542		$	25,340		$	(1,405,715	)	$	811,728		$	26,701		$	(24,866	)	$	813,563

Condensed Consolidating Statement of Cash Flows
Nine Months Ended September 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	$	1,260,731		$	(142,743	)	$	—	$	1,117,988		$	100,652		$	(46,852	)	$	1,171,788
Cash flows from investing activities
Additions to properties, plants and equip	(4,993		)	(173,242		)	—		(178,235		)	—			—			(178,235		)
Additions to properties, plants and equip – HEP	—			—			—		—			(29,302		)	—			(29,302		)
Investment in Sabine Biofuels	—			(2,000		)	—		(2,000		)	—			—			(2,000		)
Purchases of marketable securities	(236,315		)	—			—		(236,315		)	—			—			(236,315		)
Sales and maturities of marketable securities	211,286			930			—		212,216			—			—			212,216
	(30,022		)	(174,312		)	—		(204,334		)	(29,302		)	—			(233,636		)
Cash flows from financing activities
Net borrowings under credit agreement – HEP	—			—			—		—			231,000			—			231,000
Repayment of promissory notes	—			72,900			—		72,900			(72,900		)	—			—
Net proceeds from issuance of senior notes - HEP	—			—			—		—			294,750			—			294,750
Principal tender on senior notes - HFC	(205,000		)	—			—		(205,000		)	—			—			(205,000		)
Principal tender on senior notes - HEP	—			—			—		—			(185,000		)	—			(185,000		)
Purchase of treasury stock	(190,307		)	—			—		(190,307		)	—			—			(190,307		)
Structured stock repurchase agreement	8,620			—			—		8,620			—			—			8,620
Contribution from joint venture partner	—			—			—		—			6,000			—			6,000
Contribution from general partner	—			(10,286		)	—		(10,286		)	10,286			—			—
Distribution from HEP upon UNEV transfer	—			260,922			—		260,922			(260,922		)	—			—
Dividends	(382,610		)	—			—		(382,610		)	—			—			(382,610		)
Distributions to noncontrolling interest	—			—			—		—			(91,063		)	47,314			(43,749		)
Excess tax benefit from equity-based compensation	16,021			—			—		16,021			—			—			16,021
Purchase of units for incentive grants - HEP	—			—			—		—			(4,919		)	—			(4,919		)
Deferred financing costs	—			(67		)	—		(67		)	(3,222		)	—			(3,289		)
Other	—			(967		)	—		(967		)	264			(462		)	(1,165		)
	(753,276		)	322,502			—		(430,774		)	(75,726		)	46,852			(459,648		)
Cash and cash equivalents
Increase (decrease) for the period	477,433			5,447			—		482,880			(4,376		)	—			478,504
Beginning of period	1,575,891			(3,358		)	2		1,572,535			6,369			—			1,578,904
End of period	$	2,053,324		$	2,089		$	2	$	2,055,415		$	1,993		$	—		$	2,057,408

Condensed Consolidating Statement of Cash Flows
Nine Months Ended September 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	$	1,690,926		$	(664,988	)	$	—	$	1,025,938		$	93,299		$	(30,034	)	$	1,089,203
Cash flows from investing activities:
Additions to properties, plants and equip	(6,056		)	(92,372		)	—		(98,428		)	—			—			(98,428		)
Additions to properties, plants and equip – HEP	—			—			—		—			(175,795		)	—			(175,795		)
Investment in Sabine Biofuels	(9,125		)	—			—		(9,125		)	—			—			(9,125		)
Cash received in merger with Frontier	182			871,976			—		872,158			—			—			872,158
Purchases of marketable securities	(370,042		)	—			—		(370,042		)	—			—			(370,042		)
Sales and maturities of marketable securities	194,386			—			—		194,386			—			—			194,386
	(190,655		)	779,604			—		588,949			(175,795		)	—			413,154
Cash flows from financing activities:
Net borrowings under credit agreement – HEP	—			—			—		—			43,000			—			43,000
Purchase of treasury stock	(38,955		)	—			—		(38,955		)	—			—			(38,955		)
Principal tender on senior notes – HFC	(15		)	—			—		(15		)	—			—			(15		)
Contribution to HEP	—			(96,000		)	—		(96,000		)	96,000			—			—
Contribution from UNEV joint venture partner	—			—			—		—			27,500			—			27,500
Dividends	(129,377		)	—			—		(129,377		)	—			—			(129,377		)
Distributions to noncontrolling interest	—			—			—		—			(67,963		)	30,034			(37,929		)
Excess tax benefit from equity-based compensation	1,399			—			—		1,399			—			—			1,399
Purchase of units for restricted grants - HEP	—			—			—		—			(1,641		)	—			(1,641		)
Deferred financing costs	(8,574		)	—			—		(8,574		)	(3,150		)	—			(11,724		)
Other	—			(857		)	—		(857		)	—			—			(857		)
	(175,522		)	(96,857		)	—		(272,379		)	93,746			30,034			(148,599		)
Cash and cash equivalents
Increase (decrease) for the period:	1,324,749			17,759			—		1,342,508			11,250			—			1,353,758
Beginning of period	230,082			(9,035		)	2		221,049			8,052			—			229,101
End of period	$	1,554,831		$	8,724		$	2	$	1,563,557		$	19,302		$	—		$	1,582,859