HollyFrontier 2013 Annual Report Download - page 54

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46
Payments Due by Period
Contractual Obligations and Commitments Total Less than
1 Year 1-3 Years 3-5 Years Over
5 Years
(In thousands)
HollyFrontier Corporation (1) (2)
Long-term debt - principal (3) $ 184,835 $ 1,666 $ 4,001 $ 155,093 $ 24,075
Long-term debt - interest (4) 78,511 14,446 28,224 26,273 9,568
Supply agreements (5) 902,799 599,759 279,030 13,720 10,290
Transportation and storage agreements (6) 1,274,077 144,434 265,304 205,015 659,324
Other long-term obligations 25,734 9,838 14,890 1,006 —
Operating leases 63,194 16,835 28,600 13,297 4,462
2,529,150 786,978 620,049 414,404 707,719
Holly Energy Partners
Long-term debt - principal (7) 813,000 — — 513,000 300,000
Long-term debt - interest (8) 221,804 39,748 79,497 73,309 29,250
Pipeline operating and right of way leases 24,607 6,874 13,729 3,642 362
Other agreements 17,034 1,987 3,904 3,904 7,239
1,076,445 48,609 97,130 593,855 336,851
Total $ 3,605,595 $ 835,587 $ 717,179 $1,008,259 $1,044,570
(1) We may be required to make cash outlays related to our unrecognized tax benefits. However, due to the uncertainty of the timing of future cash
flows associated with our unrecognized tax benefits, we are unable to make reasonably reliable estimates of the period of cash settlement, if any,
with the respective taxing authorities. Accordingly, unrecognized tax benefits of $9.0 million as of December 31, 2013 have been excluded from
the contractual obligations table above. For further information related to unrecognized tax benefits, see Note 14 “Income Taxes” in the Notes to
Consolidated Financial Statements.
(2) Amounts shown do not include commitments to deliver barrels of crude oil held for other parties at our refineries. We periodically hold crude
oil owned by third parties in the storage tanks at our refineries, which may be run through production. We will be obligated to deliver these stored
barrels of crude oil upon the other party's request.
(3) Our long-term debt consists of the $150.0 million principal balance on our 6.875% senior notes and a long-term financing obligation having a
principal balance of $34.8 million at December 31, 2013.
(4) Interest payments consist of interest on our 6.875% senior notes and on our long-term financing obligation.
(5) We have long-term supply agreements to secure certain quantities of crude oil, feedstock and other resources used in the production process at
market prices. We have estimated future payments under these fixed-quantity agreements expiring between 2014 and 2020 using current market
rates.
(6) Consists of contractual obligations under agreements with third parties for the transportation of crude oil, natural gas and feedstocks to our refineries
and for terminal and storage services under contracts expiring between 2014 and 2032.
(7) HEP's long-term debt consists of the $150.0 million and the $300.0 million principal balances on the 8.25% and 6.5% HEP senior notes and $363.0
million of outstanding borrowings under the HEP Credit Agreement. The HEP Credit Agreement expires in 2017.
(8) Interest payments consist of interest on the 6.5% and 8.25% HEP senior notes and interest on long-term debt under the HEP Credit Agreement.
Interest on the HEP Credit Agreement debt is based on the applicable rate of 2.17% at December 31, 2013.
CRITICAL ACCOUNTING POLICIES
Our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements,
which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of
these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities,
revenues and expenses, and related disclosure of contingent assets and liabilities as of the date of the financial statements. Actual
results may differ from these estimates under different assumptions or conditions. We consider the following policies to be the
most critical to understanding the judgments that are involved and the uncertainties that could impact our results of operations,
financial condition and cash flows. For additional information, see Note 1 “Description of Business and Summary of Significant
Accounting Policies” in the Notes to Consolidated Financial Statements.
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