HollyFrontier 2015 Annual Report Download - page 58

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Table of Content
50
(1) Includes loss on early extinguishment of debt of $1.4 million, $7.7 million and $22.1 million for the years ended December 31, 2015, 2014
and 2013, respectively.
Reconciliations of refinery operating information (non-GAAP performance measures) to amounts reported under generally
accepted accounting principles in financial statements.
Refinery gross margin and net operating margin are non-GAAP performance measures that are used by our management and others
to compare our refining performance to that of other companies in our industry. We believe these margin measures are helpful to
investors in evaluating our refining performance on a relative and absolute basis.
Refinery gross margin per barrel is the difference between average net sales price and average cost of products per barrel of
produced refined products. Net operating margin per barrel is the difference between refinery gross margin and refinery operating
expenses per barrel of produced refined products. These two margins do not include the non-cash effects of lower of cost or market
inventory valuation adjustments or depreciation and amortization. Each of these component performance measures can be
reconciled directly to our consolidated statements of income.
Other companies in our industry may not calculate these performance measures in the same manner.
Refinery Gross and Net Operating Margins
Below are reconciliations to our consolidated statements of income for (i) net sales, cost of products (exclusive of lower of cost
or market inventory valuation adjustment) and operating expenses, in each case averaged per produced barrel sold, and (ii) net
operating margin and refinery gross margin. Due to rounding of reported numbers, some amounts may not calculate exactly.
Reconciliation of produced product sales to total sales and other revenues
Years Ended December 31,
2015 2014 2013
(Dollars in thousands, except per barrel amounts)
Consolidated
Average sales price per produced barrel sold $ 71.32 $ 110.19 $ 115.60
Times sales of produced refined products (BPD) 438,000 420,990 410,730
Times number of days in period 365 365 365
Produced refined product sales $ 11,401,928 $ 16,931,944 $ 17,330,342
Total produced refined product sales $ 11,401,928 $ 16,931,944 $ 17,330,342
Add refined product sales from purchased products and rounding (1) 1,214,920 1,566,925 1,581,395
Total refined product sales 12,616,848 18,498,869 18,911,737
Add direct sales of excess crude oil (2) 352,113 1,060,354 1,052,915
Add other refining segment revenue (3) 202,222 147,002 140,791
Total refining segment revenue 13,171,183 19,706,225 20,105,443
Add HEP segment sales and other revenues 358,875 332,626 307,053
Add corporate and other revenues 663 2,103 1,314
Subtract consolidations and eliminations (292,801) (276,627) (253,250)
Sales and other revenues $ 13,237,920 $ 19,764,327 $ 20,160,560