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Table of Content
58
HOLLYFRONTIER CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Years Ended December 31,
2014 2013 2012
Cash flows from operating activities:
Net income $ 326,328 $ 767,823 $ 1,760,033
Adjustments to reconcile net income to net cash provided by operating activities:
Lower of cost or market inventory adjustment 397,478 — —
Depreciation and amortization 363,381 303,446 242,868
Net loss of equity method investments, inclusive of distributions 5,257 5,198 701
Loss on early extinguishment of debt attributable to unamortized discount 1,489 7,948 —
Gain on sale of assets (866) — (326)
Deferred income taxes (193,662) 114,404 95,408
Equity-based compensation expense 29,598 35,775 39,203
Change in fair value – derivative instruments (22,668) (53,185) 52,335
Loss on settlement of retirement benefit obligations, net of contributions — 16,771 (19,524)
(Increase) decrease in current assets:
Accounts receivable 108,876 (68,832) 71,627
Inventories (78,842) (15,929) (205,013)
Income taxes receivable 94,237 (34,419) 19,056
Prepayments and other 1,486 1,377 (9,366)
Increase (decrease) in current liabilities:
Accounts payable (217,541) 2,068 (194,051)
Income taxes payable 19,642 — (40,366)
Accrued liabilities 8,047 (41,229) (39,851)
Turnaround expenditures (96,803) (193,920) (159,707)
Other, net 13,159 21,878 49,660
Net cash provided by operating activities 758,596 869,174 1,662,687
Cash flows from investing activities:
Additions to properties, plants and equipment (485,002) (373,271) (290,334)
Additions to properties, plants and equipment – HEP (79,819) (51,856) (44,929)
Proceeds from sale of assets 16,633 7,802 —
Acquisition of trucking operations — (11,301) —
Purchases of marketable securities (1,025,602) (935,512) (671,552)
Sales and maturities of marketable securities 1,276,447 846,143 297,711
Other, net 5,021 (8,740) (2,000)
Net cash used for investing activities (292,322) (526,735) (711,104)
Cash flows from financing activities:
Borrowings under credit agreement – HEP 642,300 310,600 587,000
Repayments under credit agreement – HEP (434,300) (368,600) (366,000)
Net proceeds from issuance of senior notes – HEP — — 294,750
Redemption of senior notes — (300,973) (205,000)
Redemption of senior notes - HEP (156,188) — (185,000)
Proceeds from sale of HEP common units — 73,444 —
Proceeds from common unit offerings – HEP — 73,444 —
Purchase of treasury stock (158,847) (225,023) (209,600)
Dividends (647,197) (645,920) (658,085)
Distributions to noncontrolling interest (78,202) (71,201) (58,788)
Excess tax benefit from equity-based compensation 2,040 2,562 23,361
Other, net (7,998) (8,368) 4,574
Net cash used for financing activities (838,392) (1,160,035) (772,788)
Cash and cash equivalents:
Increase (decrease) for the period (372,118) (817,596) 178,795
Beginning of period 940,103 1,757,699 1,578,904
End of period $ 567,985 $ 940,103 $ 1,757,699
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest $ 55,716 $ 76,647 $ 101,709
Income taxes $ 237,907 $ 372,846 $ 983,618
See accompanying notes.