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Table of Contents HOLLYFRONTIER CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Continued
87
(In thousands)
2016 $ 113,914
2017 102,613
2018 84,026
2019 75,514
2020 65,444
Thereafter 548,010
Total $ 989,521
Transportation and storage costs incurred under these agreements totaled $137.7 million, $118.0 million and $95.2 million for the
years ended December 31, 2015, 2014 and 2013, respectively. These amounts do not include contractual commitments under our
long-term transportation agreements with HEP, as all transactions with HEP are eliminated in these consolidated financial
statements.
NOTE 19: Segment Information
Our operations are organized into two reportable segments, Refining and HEP. Our operations that are not included in the Refining
and HEP segments are included in Corporate and Other. Intersegment transactions are eliminated in our consolidated financial
statements and are included in Consolidations and Eliminations.
The Refining segment represents the operations of the El Dorado, Tulsa, Navajo, Cheyenne and Woods Cross Refineries and HFC
Asphalt (aggregated as a reportable segment). Refining activities involve the purchase and refining of crude oil and wholesale and
branded marketing of refined products, such as gasoline, diesel fuel and jet fuel. These petroleum products are primarily marketed
in the Mid-Continent, Southwest and Rocky Mountain regions of the United States. Additionally, the Refining segment includes
specialty lubricant products produced at our Tulsa Refineries that are marketed throughout North America and are distributed in
Central and South America. HFC Asphalt operates various asphalt terminals in Arizona, New Mexico and Oklahoma.
The HEP segment includes all of the operations of HEP, which owns and operates logistics and refinery assets consisting of
petroleum product and crude oil pipelines, terminals, tankage, loading rack facilities and processing units in the Mid-Continent,
Southwest and Rocky Mountain regions of the United States. The HEP segment also includes a 75% ownership interest in UNEV
(a consolidated subsidiary of HEP) and a 50% and 25% ownership interest in the Frontier Pipeline and the SLC Pipeline, respectively.
Revenues from the HEP segment are earned through transactions with unaffiliated parties for pipeline transportation, rental and
terminalling operations as well as revenues relating to pipeline transportation services provided for our refining operations. Due
to certain basis differences, our reported amounts for the HEP segment may not agree to amounts reported in HEP’s periodic public
filings.
The accounting policies for our segments are the same as those described in the summary of significant accounting policies (see
Note 1).