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Segment Information
 6 Months Ended
Jun. 30, 2013
Segment Information [Abstract]  
Segment Information
Segment Information

Our operations are organized into two reportable segments, Refining and HEP. Our operations that are not included in the Refining and HEP segments are included in Corporate and Other. Intersegment transactions are eliminated in our consolidated financial statements and are included in Consolidations and Eliminations.

The Refining segment represents the operations of the El Dorado, Tulsa, Navajo, Cheyenne and Woods Cross Refineries and NK Asphalt (aggregated as a reportable segment). Refining activities involve the purchase and refining of crude oil and wholesale and branded marketing of refined products, such as gasoline, diesel fuel and jet fuel. These petroleum products are primarily marketed in the Mid-Continent, Southwest and Rocky Mountain regions of the United States. Additionally, the Refining segment includes specialty lubricant products produced at our Tulsa Refineries that are marketed throughout North America and are distributed in Central and South America. NK Asphalt operates various asphalt terminals in Arizona and New Mexico.

The HEP segment includes all of the operations of HEP, a consolidated VIE, which owns and operates logistics assets consisting of petroleum product and crude oil pipelines and terminal, tankage and loading rack facilities in the Mid-Continent, Southwest and Rocky Mountain regions of the United States. The HEP segment also includes a 75% interest in UNEV (a consolidated subsidiary of HEP) and a 25% interest in the SLC Pipeline. Revenues from the HEP segment are earned through transactions with unaffiliated parties for pipeline transportation, rental and terminalling operations as well as revenues relating to pipeline transportation services provided for our refining operations. 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.

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, 2012.
 
 
Refining
 
HEP (1)
 
Corporate
and Other
 
Consolidations
and Eliminations
 
Consolidated
Total
 
 
(In thousands)
Three Months Ended June 30, 2013
 
 
 
 
 
 
 
 
 
 
Sales and other revenues
 
$
5,286,881

 
$
75,121

 
$
234

 
$
(63,388
)
 
$
5,298,848

Depreciation and amortization
 
$
53,443

 
$
15,619

 
$
1,637

 
$
(207
)
 
$
70,492

Income (loss) from operations
 
$
458,777

 
$
34,392

 
$
(32,646
)
 
$
(517
)
 
$
460,006

Capital expenditures
 
$
74,866

 
$
11,848

 
$
12,125

 
$
—

 
$
98,839

 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2012
 
 
 
 
 
 
 
 
 
 
Sales and other revenues
 
$
4,795,647

 
$
67,103

 
$
145

 
$
(56,214
)
 
$
4,806,681

Depreciation and amortization
 
$
43,811

 
$
12,317

 
$
1,027

 
$
(207
)
 
$
56,948

Income (loss) from operations
 
$
813,044

 
$
31,929

 
$
(31,313
)
 
$
(523
)
 
$
813,137

Capital expenditures
 
$
56,262

 
$
9,365

 
$
1,006

 
$
—

 
$
66,633

 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2013
 
 
 
 
 
 
 
 
 
 
Sales and other revenues
 
$
9,979,307

 
$
151,605

 
$
797

 
$
(125,072
)
 
$
10,006,637

Depreciation and amortization
 
$
110,613

 
$
29,368

 
$
2,687

 
$
(414
)
 
$
142,254

Income (loss) from operations
 
$
1,000,979

 
$
67,866

 
$
(58,618
)
 
$
(1,026
)
 
$
1,009,201

Capital expenditures
 
$
138,498

 
$
16,861

 
$
15,444

 
$
—

 
$
170,803

 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2012
 
 
 
 
 
 
 
 
 
 
Sales and other revenues
 
$
9,715,384

 
$
134,680

 
$
301

 
$
(111,946
)
 
$
9,738,419

Depreciation and amortization
 
$
85,532

 
$
25,712

 
$
2,220

 
$
(414
)
 
$
113,050

Income (loss) from operations
 
$
1,227,987

 
$
64,042

 
$
(58,288
)
 
$
(1,040
)
 
$
1,232,701

Capital expenditures
 
$
101,796

 
$
23,619

 
$
2,605

 
$
—

 
$
128,020

 
 
Refining
 
HEP (1)
 
Corporate and Other
 
Consolidations and Eliminations
 
Consolidated Total
 
 
(in thousands)
June 30, 2013
 
 
 
 
 
 
 
 
 
 
Cash, cash equivalents and investments in marketable securities
 
$
7,115

 
$
8,716

 
$
1,969,697

 
$
—

 
$
1,985,528

Total assets
 
$
7,279,491

 
$
1,417,302

 
$
2,129,611

 
$
(332,470
)
 
$
10,493,934

Long-term debt
 
$
—

 
$
799,152

 
$
206,691

 
$
(15,607
)
 
$
990,236

 
 
 
 
 
 
 
 
 
 
 
December 31, 2012
 
 
 
 
 
 
 
 
 
 
Cash, cash equivalents and investments in marketable securities
 
$
2,101

 
$
5,237

 
$
2,386,063

 
$
—

 
$
2,393,401

Total assets
 
$
6,702,872

 
$
1,426,800

 
$
2,531,967

 
$
(332,642
)
 
$
10,328,997

Long-term debt
 
$
—

 
$
864,673

 
$
487,472

 
$
(15,907
)
 
$
1,336,238



(1) HEP acquired our 75% interest in UNEV in July 2012. As a result, we have recast our HEP segment information for the three and six months ended June 30, 2012 to include the UNEV Pipeline operations as a consolidated subsidiary of HEP. The UNEV Pipeline operations were previously presented under Corporate and Other.

HEP segment revenues from external customers were $12.1 million and $10.9 million for the three months ended June 30, 2013 and 2012, respectively, and $24.9 million and $22.8 million for the six months ended June 30, 2013 and 2012, respectively.