HollyFrontier 2014 Annual Report Download - page 88

Table of Contents HOLLYFRONTIER CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Continued
80
December 31, 2013
Assets Liabilities Total
(In thousands)
Deferred income taxes
Accrued employee benefits $ 3,138 $ — $ 3,138
Accrued environmental costs 5,010 — 5,010
Hedging instruments 12,417 — 12,417
Inventory differences — (235,823)(235,823)
Prepaid insurance — (7,222)(7,222)
Prepayments and other — (1,519)(1,519)
Total current 20,565 (244,564)(223,999)
Properties, plants and equipment (due primarily to tax in
excess of book depreciation) —(578,958)(578,958)
Accrued employee benefits 41,997 — 41,997
Accrued post-retirement benefits — (8,071)(8,071)
Accrued environmental costs 20,431 — 20,431
Hedging instruments 3,744 — 3,744
Deferred turnaround costs — (101,158)(101,158)
Net operating loss and tax credit carryforwards 24,086 — 24,086
Investment in HEP — (29,771)(29,771)
Other 10,858 — 10,858
Total noncurrent 101,116 (717,958)(616,842)
Total $ 121,681 $ (962,522) $ (840,841)
At December 31, 2014, we had a Kansas income tax credit of $9.7 million that is scheduled to be utilized in 2015 through 2019.
This amount is reflected in other current and non-current deferred tax assets.
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
Years Ended December 31,
2014 2013 2012
(In thousands)
Balance at January 1 $ 9,006 $ 12,641 $ 2,425
Additions for tax positions of prior years — 25,728 10,305
Reductions for tax positions of prior years — (5,092)(89)
Settlements (9,006)(24,271) —
Balance at December 31 $ — $ 9,006 $ 12,641
At December 31, 2013 and 2012, there were $0.4 million and $10.2 million, respectively, of unrecognized tax benefits that, if
recognized, would affect our effective tax rate. Unrecognized tax benefits are adjusted in the period in which new information
about a tax position becomes available or the final outcome differs from the amount recorded.
We recognize interest and penalties relating to liabilities for unrecognized tax benefits as an element of tax expense. We have not
recorded any penalties related to our uncertain tax positions as we believe that it is more likely than not that there will not be any
assessment of penalties.
We are subject to U.S. federal income tax, Oklahoma, Kansas, New Mexico, Iowa, Arizona, Utah, Colorado and Nebraska income
tax and to income tax of multiple other state jurisdictions. We have substantially concluded all state and local income tax matters
for tax years through 2009 and have materially concluded all U.S. federal income tax matters for tax years through December 31,
2012.