HollyFrontier 2015 Annual Report Download - page 94

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Table of Contents HOLLYFRONTIER CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Continued
86
Retirement Restoration Plan
We have an unfunded retirement restoration plan that provides for additional payments from us so that total retirement plan benefits
for certain executives will be maintained at the levels provided in the retirement plan before the application of Internal Revenue
Code limitations. We expensed $0.1 million, $1.2 million and $0.4 million for the years ended December 31, 2015, 2014 and 2013,
respectively, in connection with this plan. The accrued liability reflected in the consolidated balance sheets was $2.8 million and
$3.0 million at December 31, 2015 and 2014, respectively. As of December 31, 2015, the projected benefit obligation under this
plan was $2.8 million. Annual benefit payments of $0.2 million are expected to be paid through 2025, which reflect expected future
service.
Defined Contribution Plans
We have a defined contribution “401(k)” plan that covers substantially all employees. Our contributions are based on an employee's
eligible compensation and years of service. We also partially match the employee's contributions. We expensed $17.2 million,
$16.1 million and $15.5 million for the years ended December 31, 2015, 2014 and 2013, respectively, in connection with these
plans.
NOTE 17: 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, 2015, the minimum future rental commitments under operating leases having non-cancellable
lease terms in excess of one year are as follows:
(In thousands)
2016 $ 70,512
2017 65,807
2018 62,364
2019 58,664
2020 57,047
Thereafter 221,589
Total $ 535,983
Rental expense charged to operations was $107.3 million, $89.8 million and $72.6 million for the years ended December 31, 2015,
2014 and 2013, respectively. For the years ended December 31, 2015, 2014 and 2013, rental expense included $8.9 million, $8.0
million and $8.3 million, respectively, in costs attributable to the HEP operations.
NOTE 18: 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 2016 through 2030.
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 2016 through 2033. At December 31, 2015, the minimum
future transportation and storage fees under transportation agreements having terms in excess of one year are as follows: