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Table of Contents HOLLYFRONTIER CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Continued
88
(In thousands)
2015 $ 157,931
2016 129,928
2017 118,504
2018 101,166
2019 92,920
Thereafter 586,271
Total $ 1,186,720
Transportation and storage costs incurred under these agreements totaled $164.6 million, $122.0 million and 89.4 million for the
years ended December 31, 2014, 2013 and 2012, 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 NK
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. NK 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 assets consisting of petroleum product
and crude oil pipelines and terminal, tankage and loading rack facilities in the Mid-Continent, Southwest and Rocky Mountain
regions of the United States. The HEP segment also includes a 75% interest in UNEV (a consolidated subsidiary of HEP) and a
25% interest in the SLC Pipeline. 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).