HollyFrontier 2013 Annual Report Download - page 99

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91
NOTE 18: Lease Commitments
We lease certain office and storage facilities, rail cars and other equipment under long-term operating leases, most of which contain
renewal options. At December 31, 2013, the minimum future rental commitments under operating leases having non-cancellable
lease terms in excess of one year are as follows:
(In thousands)
2014 $ 23,709
2015 22,139
2016 20,189
2017 11,974
2018 4,965
Thereafter 4,825
Total $ 87,801
Rental expense charged to operations was $48.5 million, $42.6 million and $35.9 million for the years ended December 31, 2013,
2012 and 2011, respectively. For the years ended December 31, 2013, 2012 and 2011, rental expense included $8.3 million, $8.1
million and $7.5 million attributable to the HEP operations.
NOTE 19: Contingencies and Contractual Commitments
We are a party to various litigation and legal proceedings which we believe, based on advice of counsel, will not either individually
or in the aggregate have a materially adverse effect on our financial condition, results of operations or cash flows.
Contractual Commitments
We have various long-term agreements (entered in the normal course of business) to purchase crude oil, natural gas, feedstocks
and other resources to ensure we have adequate supplies to operate our refineries. The substantial majority of our purchase
obligations are based on market prices or rates. These contracts expire in 2014 through 2020.
We also have long-term agreements with third parties for the transportation and storage of crude oil, natural gas and feedstocks
to our refineries and for terminal and storage services that expire in 2014 through 2032. At December 31, 2013, the minimum
future transportation and storage fees under transportation agreements having terms in excess of one year are as follows:
(In thousands)
2014 $ 144,434
2015 143,747
2016 121,557
2017 111,131
2018 93,884
Thereafter 659,324
Total $ 1,274,077
Transportation and storage costs incurred under these agreements totaled $122.0 million for the year ended December 31, 2013.
These amounts do not include contractual commitments under our long-term transportation agreements with HEP. HEP is a
consolidated VIE; all transactions with HEP are eliminated in these consolidated financial statements.
Table of Contents HOLLYFRONTIER CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Continued