Guarantor Subsidiaries (Tables)

6 Months Ended

Jun. 30, 2016

The following consolidating schedules present financial information on a consolidated basis in conformity with the SEC’s Regulation S-X Rule 3-10(d):

CONSOLIDATING BALANCE SHEET

(unaudited)



(Thousands of dollars)	June 30, 2016
Assets	Parent Company			Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Current assets
Cash and cash equivalents	$	—		$	254,210		$	—		$	—		$	—		$	254,210
Accounts receivable—trade, less allowance for doubtful accounts of $1,988 in 2016	—			148,211			—			—			—			148,211
Inventories, at lower of cost or market	—			152,494			—			—			—			152,494
Prepaid expenses and other current assets	—			17,066			—			—			—			17,066
Total current assets	—			571,981			—			—			—			571,981
Property, plant and equipment, at cost less accumulated depreciation and amortization of $732,114 in 2016	—			1,430,816			—			—			—			1,430,816
Restricted cash	—			53,853			—			—			—			53,853
Investments in subsidiaries	1,888,801			144,920			—			—			(2,033,721		)	—
Other assets	—			27,196			—			—			—			27,196
Total assets	$	1,888,801		$	2,228,766		$	—		$	—		$	(2,033,721	)	$	2,083,846
Liabilities and Stockholders' Equity
Current liabilities
Current maturities of long-term debt	$	—		$	30,372		$	—		$	—		$	—		$	30,372
Inter-company accounts payable	467,148			(260,735		)	(52,075		)	(154,338		)	—			—
Trade accounts payable and accrued liabilities	—			401,141			—			—			—			401,141
Income taxes payable	—			24,170			14			—			—			24,184
Deferred income taxes	—			—			—			—			—			—
Total current liabilities	467,148			194,948			(52,061		)	(154,338		)	—			455,697
Long-term debt, including capitalized lease obligations	—			648,266			—			—			—			648,266
Deferred income taxes	—			177,570			—			—						177,570
Asset retirement obligations	—			25,012			—			—			—			25,012
Deferred credits and other liabilities	—			19,389			—			—			—			19,389
Total liabilities	467,148			1,065,185			(52,061		)	(154,338		)	—			1,325,934
Stockholders' Equity
Preferred Stock, par $0.01 (authorized 20,000,000 shares, none outstanding)	—			—			—			—			—			—
Common Stock, par $0.01 (authorized 200,000,000 shares, 46,767,164 shares issued at June 30, 2016)	468			1			60			—			(61		)	468
Treasury Stock (7,603,706 shares held at June 30, 2016)	(454,496		)	—			—			—			—			(454,496		)
Additional paid in capital (APIC)	1,215,718			565,096			52,004			87,543			(1,368,384		)	551,977
Retained earnings	659,963			598,484			(3		)	66,795			(665,276		)	659,963
Total stockholders' equity	1,421,653			1,163,581			52,061			154,338			(2,033,721		)	757,912
Total liabilities and stockholders' equity	$	1,888,801		$	2,228,766		$	—		$	—		$	(2,033,721	)	$	2,083,846

CONSOLIDATING BALANCE SHEET



(Thousands of dollars)	December 31, 2015
Assets	Parent Company			Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Current assets
Cash and cash equivalents	$	—		$	102,335		$	—		$	—		$	—		$	102,335
Accounts receivable—trade, less allowance for doubtful accounts of $1,963 in 2015	—			136,253			—			—			—			136,253
Inventories, at lower of cost or market	—			155,906			—			—			—			155,906
Prepaid expenses and other current assets	—			41,173			—			—			—			41,173
Total current assets	—			435,667			—			—			—			435,667
Property, plant and equipment, at cost less accumulated depreciation and amortization of $724,486 in 2015	—			1,369,318			—			—			—			1,369,318
Restricted cash	—			68,571			—			—			—			68,571
Investments in subsidiaries	1,756,617			144,921			—			—			(1,901,538		)	—
Other assets	—			12,685			—			—			—			12,685
Total assets	$	1,756,617		$	2,031,162		$	—		$	—		$	(1,901,538	)	$	1,886,241
Liabilities and Stockholders' Equity
Current liabilities
Current maturities of long-term debt	$	—		$	222		$	—		$	—		$	—		$	222
Inter-company accounts payable	300,044			(93,644		)	(52,062		)	(154,338		)	—			—
Trade accounts payable and accrued liabilities	—			390,341			—			—			—			390,341
Income taxes payable	—			—			—			—			—			—
Deferred income taxes	—			1,729			—			—			—			1,729
Total current liabilities	300,044			298,648			(52,062		)	(154,338		)	—			392,292
Long-term debt, including capitalized lease obligations	—			490,160			—			—			—			490,160
Deferred income taxes	—			161,236			—			—			—			161,236
Asset retirement obligations	—			24,345			—			—			—			24,345
Deferred credits and other liabilities	—			25,918			—			—			—			25,918
Total liabilities	300,044			1,000,307			(52,062		)	(154,338		)	—			1,093,951
Stockholders' Equity
Preferred Stock, par $0.01 (authorized 20,000,000 shares, none outstanding)	—			—			—			—			—			—
Common Stock, par $0.01 (authorized 200,000,000 shares, 46,767,164 shares issued at December 31, 2015)	468			1			60			—			(61		)	468
Treasury Stock (5,088,434 shares held at December 31, 2015)	(294,139		)	—			—			—			—			(294,139		)
Additional paid in capital (APIC)	1,222,465			564,554			52,004			87,543			(1,368,384		)	558,182
Retained earnings	527,779			466,300			(2		)	66,795			(533,093		)	527,779
Total stockholders' equity	1,456,573			1,030,855			52,062			154,338			(1,901,538		)	792,290
Total liabilities and stockholders' equity	$	1,756,617		$	2,031,162		$	—		$	—		$	(1,901,538	)	$	1,886,241

Consolidating Income Statement

CONSOLIDATING INCOME STATEMENT

(unaudited)



(Thousands of dollars)	Three Months Ended June 30, 2016
Revenues	Parent Company		Issuer			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Petroleum product sales	$	—	$	2,371,735		$	—	$	—	$	—		$	2,371,735
Merchandise sales	—		589,457			—		—		—			589,457
Other operating revenues	—		44,570			—		—		—			44,570
Total revenues	$	—	$	3,005,762		$	—	$	—	$	—		$	3,005,762
Costs and Operating Expenses
Petroleum product cost of goods sold	—		2,242,936			—		—		—			2,242,936
Merchandise cost of goods sold	—		496,801			—		—		—			496,801
Station and other operating expenses	—		125,145			—		—		—			125,145
Depreciation and amortization	—		23,685			—		—		—			23,685
Selling, general and administrative	—		32,320			—		—		—			32,320
Accretion of asset retirement obligations	—		412			—		—		—			412
Total costs and operating expenses	—		2,921,299			—		—		—			2,921,299
Income (loss) from operations	$	—	$	84,463		$	—	$	—	$	—		$	84,463
Other income (expense)
Interest income	—		250			—		—		—			250
Interest expense	—		(10,210		)	—		—		—			(10,210		)
Gain on sale of assets	—		(490		)	—		—		—			(490		)
Other nonoperating income	—		85			—		—		—			85
Total other income (expense)	$	—	$	(10,365	)	$	—	$	—	$	—		$	(10,365	)
Income (loss) from continuing operations before income taxes	—		74,098			—		—		—			74,098
Income tax expense	—		27,788			—		—		—			27,788
Income (loss) from continuing operations	—		46,310			—		—		—			46,310
Income from discontinued operations, net of taxes	—		—			—		—		—			—
Equity earnings in affiliates, net of tax	46,310		—			—		—		(46,310		)	—
Net Income (Loss)	$	46,310	$	46,310		$	—	$	—	$	(46,310	)	$	46,310

CONSOLIDATING INCOME STATEMENT

(unaudited)



(Thousands of dollars)	Three Months Ended June 30, 2015
Revenues	Parent Company		Issuer			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Petroleum product sales	$	—	$	2,898,225		$	—	$	—	$	(39,315	)	$	2,858,910
Merchandise sales	—		572,164			—		—		—			572,164
Other operating revenues	—		36,912			—		—		—			36,912
Total revenues	$	—	$	3,507,301		$	—	$	—	$	(39,315	)	$	3,467,986
Costs and Operating Expenses
Petroleum product cost of goods sold	—		2,789,917			—		—		(39,315		)	2,750,602
Merchandise cost of goods sold	—		488,540			—		—		—			488,540
Station and other operating expenses	—		122,377			—		—		—			122,377
Depreciation and amortization	—		21,215			—		—		—			21,215
Selling, general and administrative	—		32,886			—		—		—			32,886
Accretion of asset retirement obligations	—		379			—		—		—			379
Total costs and operating expenses	—		3,455,314			—		—		(39,315		)	3,415,999
Income (loss) from operations	$	—	$	51,987		$	—	$	—	$	—		$	51,987
Other income (expense)
Interest income	—		15			—		—		—			15
Interest expense	—		(8,329		)	—		—		—			(8,329		)
Gain on sale of assets	—		(23		)	—		—		—			(23		)
Other nonoperating income	—		(4,854		)	—		—		—			(4,854		)
Total other income (expense)	$	—	$	(13,191	)	$	—	$	—	$	—		$	(13,191	)
Income (loss) from continuing operations before income taxes	—		38,796			—		—		—			38,796
Income tax expense	—		13,976			—		—		—			13,976
Income (loss) from continuing operations	—		24,820			—		—		—			24,820
Income (loss) from discontinued operations, net of taxes	—		—			—		1,371		—			1,371
Equity earnings in affiliates, net of tax	26,191		1,371			—		—		(27,562		)	—
Net Income (Loss)	$	26,191	$	26,191		$	—	$	1,371	$	(27,562	)	$	26,191

CONSOLIDATING INCOME STATEMENT

(unaudited)




(Thousands of dollars)	Six Months Ended June 30, 2016
Revenues	Parent Company		Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Petroleum product sales	$	—	$	4,260,019		$	—		$	—	$	—		$	4,260,019
Merchandise sales	—		1,151,194			—			—		—			1,151,194
Other operating revenues	—		84,811			—			—		—			84,811
Total revenues	$	—	$	5,496,024		$	—		$	—	$	—		$	5,496,024
Costs and Operating Expenses
Petroleum product cost of goods sold	—		4,026,065			—			—		—			4,026,065
Merchandise cost of goods sold	—		972,603			—			—		—			972,603
Station and other operating expenses	—		241,919			—			—		—			241,919
Depreciation and amortization	—		47,171			—			—		—			47,171
Selling, general and administrative	—		63,822			1			—		—			63,823
Accretion of asset retirement obligations	—		825			—			—		—			825
Total costs and operating expenses	—		5,352,405			1			—		—			5,352,406
Income (loss) from operations	$	—	$	143,619		$	(1	)	$	—	$	—		$	143,618
Other income (expense)
Interest income	—		330			—			—		—			330
Interest expense	—		(19,598		)	—			—		—			(19,598		)
Loss on sale of assets	—		88,975			—			—		—			88,975
Other nonoperating income	—		118			—			—		—			118
Total other income (expense)	$	—	$	69,825		$	—		$	—	$	—		$	69,825
Income (loss) from continuing operations before income taxes	—		213,444			(1		)	—		—			213,443
Income tax expense	—		81,259			—			—		—			81,259
Income (loss) from continuing operations	—		132,185			(1		)	—		—			132,184
Income from discontinued operations, net of taxes	—		—			—			—		—			—
Equity earnings in affiliates, net of tax	132,184		(1		)	—			—		(132,183		)	—
Net Income (Loss)	$	132,184	$	132,184		$	(1	)	$	—	$	(132,183	)	$	132,184

CONSOLIDATING INCOME STATEMENT

(unaudited)




(Thousands of dollars)	Six Months Ended June 30, 2015
Revenues	Parent Company		Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Petroleum product sales	$	—	$	5,288,706		$	—		$	—	$	(71,717	)	$	5,216,989
Merchandise sales	—		1,096,301			—			—		—			1,096,301
Other operating revenues	—		75,460			—			—		—			75,460
Total revenues	$	—	$	6,460,467		$	—		$	—	$	(71,717	)	$	6,388,750
Costs and Operating Expenses
Petroleum product cost of goods sold	—		5,083,405			—			—		(71,717		)	5,011,688
Merchandise cost of goods sold	—		939,093			—			—		—			939,093
Station and other operating expenses	—		236,912			—			—		—			236,912
Depreciation and amortization	—		42,318			—			—		—			42,318
Selling, general and administrative	—		63,978			1			—		—			63,979
Accretion of asset retirement obligations	—		757			—			—		—			757
Total costs and operating expenses	—		6,366,463			1			—		(71,717		)	6,294,747
Income (loss) from operations	$	—	$	94,004		$	(1	)	$	—	$	—		$	94,003
Other income (expense)
Interest income	—		1,888			—			—		—			1,888
Interest expense	—		(16,658		)	—			—		—			(16,658		)
Gain on sale of assets	—		(19		)	—			—		—			(19		)
Other nonoperating income	—		510			—			—		—			510
Total other income (expense)	$	—	$	(14,279	)	$	—		$	—	$	—		$	(14,279	)
Income (loss) from continuing operations before income taxes	—		79,725			(1		)	—		—			79,724
Income tax expense	—		31,387			—			—		—			31,387
Income (loss) from continuing operations	—		48,338			(1		)	—		—			48,337
Income from discontinued operations, net of taxes	—		—			—			786		—			786
Equity earnings in affiliates, net of tax	49,123		785			—			—		(49,908		)	—
Net Income (Loss)	$	49,123	$	49,123		$	(1	)	$	786	$	(49,908	)	$	49,123

Consolidating Statement of Cash Flow

CONSOLIDATING STATEMENT OF CASH FLOW

(unaudited)



(Thousands of dollars)	Six Months Ended June 30, 2016
Operating Activities	Parent Company			Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Net income (loss)	$	132,184		$	132,184		$	(1	)	$	—	$	(132,183	)	$	132,184
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	—			47,171			—			—		—			47,171
Deferred and noncurrent income tax charges	—			14,605			—			—		—			14,605
Accretion of asset retirement obligations	—			825			—			—		—			825
Pretax gains from sale of assets	—			(88,975		)	—			—		—			(88,975		)
Net decrease in noncash operating working capital	—			57,427			—			—		—			57,427
Equity in earnings of affiliates	(132,184		)	1			—			—		132,183			—
Other operating activities - net	—			5,365			—					—			5,365
Net cash provided by (required by) operating activities	—			168,603			(1		)	—		—			168,602
Investing Activities
Property additions	—			(116,569		)	—			—		—			(116,569		)
Proceeds from sale of assets	—			86,298			—			—		—			86,298
Changes in restricted cash	—			13,429			—			—		—			13,429
Other investing activities - net	—			(15,138		)	—			—		—			(15,138		)
Investing activities of discontinued operations
Sales proceeds	—			—			—			—		—			—
Other	—			—			—			—		—			—
Net cash required by investing activities	—			(31,980		)	—			—		—			(31,980		)
Financing Activities
Purchase of treasury stock	(167,105		)	—			—			—		—			(167,105		)
Borrowings of debt	—			200,000			—			—		—			200,000
Repayments of debt	—			(10,165		)	—			—		—			(10,165		)
Debt issuance costs	—			(3,240		)	—			—		—			(3,240		)
Amounts related to share-based compensation	—			(4,237		)	—			—		—			(4,237		)
Net distributions to parent	167,105			(167,106		)	1			—		—			—
Net cash provided by financing activities	—			15,252			1			—		—			15,253
Net increase in cash and cash equivalents	—			151,875			—			—		—			151,875
Cash and cash equivalents at January 1	—			102,335			—			—		—			102,335
Cash and cash equivalents at June 30	$	—		$	254,210		$	—		$	—	$	—		$	254,210

CONSOLIDATING STATEMENT OF CASH FLOW

(unaudited)



(Thousands of dollars)	Six Months Ended June 30, 2015
Operating Activities	Parent Company			Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	49,123		$	49,123		$	(1	)	$	786		$	(49,908	)	$	49,123
Adjustments to reconcile net income to net cash provided by operating activities
Income from discontinued operations, net of tax	—			—			—			(786		)	—			(786		)
Depreciation and amortization	—			42,318			—			—			—			42,318
Deferred and noncurrent income tax credits	—			(9,468		)	—			—			—			(9,468		)
Accretion of asset retirement obligations	—			757			—			—			—			757
Pretax losses from sale of assets	—			19			—			—			—			19
Net increase in noncash operating working capital	—			(24,910		)	—			—			—			(24,910		)
Equity in earnings of affiliates	(49,123		)	(785		)	—			—			49,908			—
Other operating activities - net	—			8,010			—			—			—			8,010
Net cash provided by (required by) continuing operations	—			65,064			(1		)	—			—			65,063
Net cash provided by discontinued operations	—			—			—			12,753			—			12,753
Net cash provided by (required by) operating activities	—			65,064			(1		)	12,753			—			77,816
Investing Activities
Property additions	—			(87,895		)	—			—			—			(87,895		)
Proceeds from sale of assets	—			91			—			—			—			91
Changes in restricted cash	—			—			—			—			—			—
Other investing activities - net	—			—			—			—			—			—
Investing activities of discontinued operations
Sales proceeds	—			—			—			—			—			—
Other	—			—			—			(3,762		)	—			(3,762		)
Net cash required by investing activities	—			(87,804		)	—			(3,762		)	—			(91,566		)
Financing Activities
Purchase of treasury stock	(189,834		)	—			—			—			—			(189,834		)
Borrowings of debt	—			—			—			—			—			—
Repayments of debt	—			(46		)	—			—			—			(46		)
Debt issuance costs	—			—			—			—			—			—
Amounts related to share-based compensation	—			(3,030		)	—			—			—			(3,030		)
Net distributions to parent	189,834			(180,878		)	1			(8,957		)	—			—
Net cash provided by (required by) financing activities	—			(183,954		)	1			(8,957		)	—			(192,910		)
Net increase (decrease) in cash and cash equivalents	—			(206,694		)	—			34			—			(206,660		)
Cash and cash equivalents at January 1	—			327,163			—			942			—			328,105
Cash and cash equivalents at June 30	$	—		$	120,469		$	—		$	976		$	—		$	121,445
Less: Cash and cash equivalents of held for sale	—			—			—			976			—			976
Cash and cash equivalents of continuing operations at June 30	$	—		$	120,469		$	—		$	—		$	—		$	120,469

Consolidating Statement of Changes in Equity

CONSOLIDATING STATEMENT OF CHANGES IN EQUITY

(unaudited)



(Thousands of dollars)	Six Months Ended June 30, 2016
Statement of Stockholders' Equity	Parent Company			Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Common Stock
Balance as of December 31, 2015	$	468		$	1		$	60		$	—	$	(61	)	$	468
Issuance of common stock	—			—			—			—		—			—
Balance as of June 30, 2016	$	468		$	1		$	60		$	—	$	(61	)	$	468
Treasury Stock
Balance as of December 31, 2015	$	(294,139	)	$	—		$	—		$	—	$	—		$	(294,139	)
Issuance of common stock	6,748			—			—			—		—			6,748
Repurchase of common stock	(167,105		)	—			—			—		—			(167,105		)
Balance as of June 30, 2016	$	(454,496	)	$	—		$	—		$	—	$	—		$	(454,496	)
APIC
Balance as of December 31, 2015	$	1,222,465		$	564,554		$	52,004		$	87,543	$	(1,368,384	)	$	558,182
Issuance of common stock	(6,748		)	—			—			—		—			(6,748		)
Amounts related to share-based compensation	—			(4,237		)	—			—		—			(4,237		)
Share-based compensation expense	—			4,780			—			—		—			4,780
Balance as of June 30, 2016	$	1,215,717		$	565,097		$	52,004		$	87,543	$	(1,368,384	)	$	551,977
Retained Earnings
Balance as of December 31, 2015	$	527,779		$	466,300		$	(2	)	$	66,795	$	(533,093	)	$	527,779
Net income	132,184			132,184			(1		)	—		(132,183		)	132,184
Balance as of June 30, 2016	$	659,963		$	598,484		$	(3	)	$	66,795	$	(665,276	)	$	659,963

CONSOLIDATING STATEMENT OF CHANGES IN EQUITY

(unaudited)



(Thousands of dollars)	Six Months Ended June 30, 2015
Statement of Stockholders' Equity	Parent Company			Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Common Stock
Balance as of December 31, 2014	$	468		$	1		$	60		$	—	$	(61	)	$	468
Issuance of common stock	—			—			—			—		—			—
Balance as of June 30, 2015	$	468		$	1		$	60		$	—	$	(61	)	$	468
Treasury Stock
Balance as of December 31, 2014	$	(51,073	)	$	—		$	—		$	—	$	—		$	(51,073	)
Issuance of common stock	5,517			—			—			—		—			5,517
Repurchase of common stock	(189,834		)	—			—			—		—			(189,834		)
Balance as of June 30, 2015	$	(235,390	)	$	—		$	—		$	—	$	—		$	(235,390	)
APIC
Balance as of December 31, 2014	$	1,228,095		$	558,611		$	52,004		$	35,677	$	(1,316,516	)	$	557,871
Issuance of common stock	(5,517		)	—			—			—		—			(5,517		)
Amounts related to share-based compensation	—			(3,030		)	—			—		—			(3,030		)
Share-based compensation expense	—			4,353			—			—		—			4,353
Balance as of June 30, 2015	$	1,222,578		$	559,934		$	52,004		$	35,677	$	(1,316,516	)	$	553,677
Retained Earnings
Balance as of December 31, 2014	$	351,439		$	351,439		$	(1	)	$	89,525	$	(440,963	)	$	351,439
Net income	49,123			49,123			(1		)	786		(49,908		)	49,123
Balance as of June 30, 2015	$	400,562		$	400,562		$	(2	)	$	90,311	$	(490,871	)	$	400,562