Segment Information

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information

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

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

The HEP segment includes all of the operations of HEP, which owns and operates logistics and refinery assets consisting of petroleum product and crude oil pipelines, terminals, tankage, loading rack facilities and processing units in the Mid-Continent, Southwest and Rocky Mountain regions of the United States. The HEP segment also includes a 75% ownership interest in UNEV (a consolidated subsidiary of HEP); a 50% ownership interest in each of the Frontier Pipeline and the Osage Pipeline and a 25% ownership interest in the SLC Pipeline, respectively. 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, 2015.

	Refining		HEP (1)		Corporate and Other			Consolidations and Eliminations			Consolidated Total
	(In thousands)
Three Months Ended March 31, 2016
Sales and other revenues	$	1,999,587	$	102,010	$	110		$	(82,983	)	$	2,018,724
Depreciation and amortization	$	68,878	$	16,029	$	3,180		$	(207	)	$	87,880
Income (loss) from operations	$	55,000	$	56,067	$	(26,855	)	$	(614	)	$	83,598
Capital expenditures	$	129,018	$	17,873	$	2,682		$	—		$	149,573
Three Months Ended March 31, 2015
Sales and other revenues	$	2,989,280	$	89,756	$	218		$	(72,628	)	$	3,006,626
Depreciation and amortization	$	63,275	$	14,290	$	2,654		$	(207	)	$	80,012
Income (loss) from operations	$	373,901	$	44,210	$	(28,949	)	$	(540	)	$	388,622
Capital expenditures	$	116,467	$	51,727	$	4,425		$	—		$	172,619

March 31, 2016
Cash, cash equivalents and total investments in marketable securities	$	13,726	$	9,034	$	88,261	$	—		$	111,021
Total assets	$	7,053,257	$	1,607,600	$	225,375	$	(291,945	)	$	8,594,287
Long-term debt	$	—	$	1,061,944	$	246,224	$	—		$	1,308,168
December 31, 2015
Cash, cash equivalents and total investments in marketable securities	$	91	$	15,013	$	195,448	$	—		$	210,552
Total assets	$	6,831,235	$	1,578,399	$	289,225	$	(310,560	)	$	8,388,299
Long-term debt	$	—	$	1,008,752	$	31,288	$	—		$	1,040,040

(1) HEP acquired the crude oil tanks at our Tulsa Refineries in March 2016. As a result, we have recast our 2015 HEP segment information to include these assets and related capital expenditures that were previously presented under the Refining segment.

HEP segment revenues from external customers were $19.2 million and $17.5 million for the three months ended March 31, 2016 and 2015, respectively.