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74
NOTE 9: Properties, Plants and Equipment
December 31,
2013 2012
(In thousands)
Land, buildings and improvements $ 235,625 $ 198,610
Refining facilities 2,510,750 2,261,733
Pipelines and terminals 1,158,288 1,113,080
Transportation vehicles 41,066 29,970
Other fixed assets 116,801 105,075
Construction in progress 281,327 234,646
4,343,857 3,943,114
Accumulated depreciation (949,261)(748,414)
$ 3,394,596 $ 3,194,700
We capitalized interest attributable to construction projects of $12.1 million, $9.1 million and $17.2 million for the years ended
December 31, 2013, 2012 and 2011, respectively.
Depreciation expense was $213.6 million, $182.9 million and $125.0 million for the years ended December 31, 2013, 2012 and
2011, respectively. For the years ended December 31, 2013, 2012 and 2011, depreciation expense included $62.3 million, $55.5
million and $31.2 million, respectively, attributable to HEP operations.
NOTE 10: Goodwill
The following table provides a summary of changes to our goodwill balance by segment for the year ended December 31, 2013.
Refining
Segment HEP Total
(In thousands)
Balance at January 1, 2013 $ 2,049,311 $ 288,991 $ 2,338,302
Adjustments to goodwill (6,380) — (6,380)
Balance at December 31, 2013 $ 2,042,931 $ 288,991 $ 2,331,922
During 2013, we recorded additional in-process inventory and a corresponding reduction in goodwill to correct immaterial errors
related to inventories purchased in previous business combinations.
NOTE 11: Environmental
We expensed $13.2 million, $46.1 million and $14.0 million for the years ended December 31, 2013, 2012 and 2011, respectively,
for environmental remediation obligations. In 2012, we increased certain environmental cost accruals to reflect revisions to certain
cost estimates and the time frame for which certain environmental remediation and monitoring activities are expected to occur.
The accrued environmental liability reflected in our consolidated balance sheets was $87.8 million and $88.9 million at
December 31, 2013 and 2012, respectively, of which $73.6 million and $72.6 million, respectively, were classified as other long-
term liabilities. These accruals include remediation and monitoring costs expected to be incurred over an extended period of time
(up to 30 years for certain projects).
Table of Contents HOLLYFRONTIER CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Continued