NOTE 16: 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 includes the operations of our Tulsa, Navajo, Woods Cross Refineries and NK Asphalt, and effective July 1, 2011, includes the El Dorado and Cheyenne Refineries. 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 Refinery that are marketed throughout North America and are distributed in Central and South America. NK Asphalt operates various asphalt terminals in Arizona, New Mexico and Texas.

The HEP segment includes all of the operations of HEP, a consolidated VIE, which owns and operates a system of petroleum product and crude gathering pipelines in Texas, New Mexico, Oklahoma and Utah, distribution terminals in Texas, New Mexico, Arizona, Utah, Idaho, and Washington and refinery tankage in New Mexico, Utah and Oklahoma. Revenues are generated by charging tariffs for transporting petroleum products and crude oil through its pipelines, by leasing certain pipeline capacity to Alon USA, Inc., by charging fees for terminalling refined products and other hydrocarbons and storing and providing other services at its storage tanks and terminals. The HEP segment also includes a 25% interest in SLC Pipeline that services refineries in the Salt Lake City, Utah area. 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, 2010.


	Refining			HEP		Corporate and Other			Consolidations and Eliminations			Consolidated Total
	(In thousands)
Three Months Ended September 30, 2011
Sales and other revenues	$	5,164,778	$49,288			$	299		$	(40,967	)	$	5,173,398
Depreciation and amortization	$	34,890	$7,326			$	1,231		$	(207	)	$	43,240
Income (loss) from operations	$	886,860	$25,261			$	(42,354	)	$	(560	)	$	869,207
Capital expenditures	$	46,294	$8,593			$	63,031		$	—		$	117,918

Three Months Ended September 30, 2010
Sales and other revenues	$	2,081,709		$	46,558	$	100		$	(37,379	)	$	2,090,988
Depreciation and amortization	$	21,274		$	6,830	$	1,329		$	(295	)	$	29,138
Income (loss) from operations	$	100,111		$	24,588	$	(16,652	)	$	(429	)	$	107,618
Capital expenditures	$	47,623		$	3,567	$	219		$	—		$	51,409


	Refining		HEP		Corporate and Other			Consolidations and Eliminations			Consolidated Total
	(In thousands)
Nine Months Ended September 30, 2011
Sales and other revenues	$	10,433,096	$	145,233	$	1,100		$	(112,313	)	$	10,467,116
Depreciation and amortization	$	81,351	$	21,870	$	3,780		$	(621	)	$	106,380
Income (loss) from operations	$	1,359,994	$	76,564	$	(76,490	)	$	(1,583	)	$	1,358,485
Capital expenditures	$	92,078	$	31,493	$	150,652		$	—		$	274,223

Nine Months Ended September 30, 2010
Sales and other revenues	$	6,086,243	$	132,730	$	317		$	(108,152	)	$	6,111,138
Depreciation and amortization	$	62,599	$	20,822	$	3,183		$	(885	)	$	85,719
Income (loss) from operations	$	200,080	$	65,737	$	(47,529	)	$	(1,250	)	$	217,038
Capital expenditures	$	118,387	$	8,054	$	1,498		$	—		$	127,939

September 30, 2011
Cash, cash equivalents and investments in marketable securities	$	—	$	1,802	$	1,757,551		$	—		$	1,759,353
Total assets	$	3,114,748	$	685,463	$	6,148,879		$	(32,627	)	$	9,916,463
Long-term debt	$	—	$	527,213	$	714,349		$	(16,575	)	$	1,224,987

December 31, 2010
Cash, cash equivalents and investments in marketable securities	$	—	$	403	$	230,041		$	—		$	230,444
Total assets	$	2,490,193	$	669,820	$	573,531		$	(32,069	)	$	3,701,475
Long-term debt	$	—	$	482,271	$	345,215		$	(16,925	)	$	810,561

HEP segment revenues from external customers were $8.3 million and $9.2 million for the three months ended September 30, 2011 and 2010, respectively, and $33 million and $24.7 million for the nine months ended September 30, 2011 and 2010, respectively.