HollyFrontier 2013 Annual Report Download - page 91

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83
December 31, 2012
Assets Liabilities Total
(In thousands)
Deferred income taxes
Accrued employee benefits $ 13,285 $ — $ 13,285
Accrued post-retirement benefits — (563)(563)
Accrued environmental costs 5,096 — 5,096
Hedging instruments 23,927 — 23,927
Inventory differences — (181,634)(181,634)
Prepayments and other — (5,327)(5,327)
Total current 42,308 (187,524)(145,216)
Properties, plants and equipment (due primarily to
tax in excess of book depreciation) —(536,430)(536,430)
Accrued post-retirement benefits 15,628 — 15,628
Accrued environmental costs 18,963 — 18,963
Hedging instruments 3,802 — 3,802
Deferred turnaround costs — (60,167)(60,167)
Net operating loss and tax credit carryforwards 21,863 — 21,863
Investment in HEP — (15,915)(15,915)
Debt fair value premium 8,820 — 8,820
Other 6,766 — 6,766
Total noncurrent 75,842 (612,512)(536,670)
Total $ 118,150 $ (800,036) $ (681,886)
At December 31, 2013, we had a net operating loss carryforward of $46.2 million in the state of Colorado that is scheduled to be
utilized in 2014 through 2029 and a Kansas income tax credit of $12.8 million that is scheduled to be utilized in 2014 through
2019. These amounts are reflected in other current and non-current deferred tax assets.
As of December 31, 2013, the total amount of unrecognized tax benefits was $9.0 million. A reconciliation of the beginning and
ending amount of unrecognized tax benefits is as follows:
Years Ended December 31,
2013 2012 2011
(In thousands)
Balance at January 1 $ 12,641 $ 2,425 $ 1,864
Additions due to merger with Frontier — — 22,577
Additions for tax positions of prior years 25,728 10,305 73
Reductions for tax positions of prior years (5,092)(89)(204)
Settlements (24,271) — (21,679)
Reductions for statute limitations — — (206)
Balance at December 31 $ 9,006 $ 12,641 $ 2,425
At December 31, 2013, 2012 and 2011, there were $0.4 million, $10.2 million and $2.2 million, respectively, of unrecognized tax
benefits that, if recognized, would affect our effective tax rate. Unrecognized tax benefits are adjusted in the period in which new
information about a tax position becomes available or the final outcome differs from the amount recorded.
We recognize interest and penalties relating to liabilities for unrecognized tax benefits as an element of tax expense. We have not
recorded any penalties related to our uncertain tax positions as we believe that it is more likely than not that there will not be any
assessment of penalties. We expect that unrecognized tax benefits for tax positions taken with respect to 2013 and prior years will
change within the next 12 months and the majority of these items will be settled with taxing authorities.
Table of Contents HOLLYFRONTIER CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Continued