HollyFrontier 2013 Annual Report Download - page 100

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NOTE 20: 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. 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 (see
Note 1).
Refining HEP Corporate and Other Consolidations and Eliminations Consolidated Total
(In thousands)
Year Ended December 31, 2013
Sales and other revenues $ 20,105,443 $ 307,053 $ 1,314 $ (253,250) $ 20,160,560
Depreciation and amortization $ 233,182 $ 64,701 $ 6,391 $ (828) $ 303,446
Income (loss) from operations $ 1,237,687 $ 133,522 $ (123,030) $ (2,105) $ 1,246,074
Capital expenditures $ 344,113 $ 51,856 $ 29,158 $ — $ 425,127
Total assets $ 7,094,558 $1,413,908 $ 1,881,119 $ (332,846) $ 10,056,739
Year Ended December 31, 2012
Sales and other revenues $ 20,042,955 $ 288,501 $ 1,048 $ (241,780) $ 20,090,724
Depreciation and amortization $ 181,247 $ 57,789 $ 4,660 $ (828) $ 242,868
Income (loss) from operations $ 2,879,383 $ 133,723 $ (126,840) $ (2,120) $ 2,884,146
Capital expenditures $ 278,705 $ 44,929 $ 11,629 $ — $ 335,263
Total assets $ 6,702,872 $1,426,800 $ 2,531,967 $ (332,642) $ 10,328,997
Year Ended December 31, 2011
Sales and other revenues $ 15,392,430 $ 212,995 $ 1,098 $ (166,995) $ 15,439,528
Depreciation and amortization $ 122,437 $ 33,288 $ 4,810 $ (828) $ 159,707
Income (loss) from operations $ 1,739,068 $ 110,102 $ (117,677) $ 55 $ 1,731,548
Capital expenditures $ 148,699 $ 216,215 $ 9,327 $ — $ 374,241
Total assets $ 6,576,966 $1,418,660 $ 1,997,600 $ (416,983) $ 9,576,243
HEP segment revenues from external customers were $53.4 million, $47.6 million and $46.4 million for the years ended
December 31, 2013, 2012 and 2011, respectively.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Continued