MURPHY USA INC., 10-K filed on 2/19/2021
Annual Report
v3.20.4
Cover page - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Jan. 31, 2021
Jun. 30, 2020
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2020    
Document Transition Report false    
Entity File Number 001-35914    
Entity Registrant Name MURPHY USA INC.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 46-2279221    
Entity Address, Address Line One 200 Peach Street    
Entity Address, City or Town El Dorado,    
Entity Address, State or Province AR    
Entity Address, Postal Zip Code 71730-5836    
City Area Code 870    
Local Phone Number 875-7600    
Title of 12(b) Security Common Stock, $0.01 Par Value    
Trading Symbol MUSA    
Security Exchange Name NYSE    
Entity Well-Known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Company false    
Entity Emerging Growth Company false    
Entity Shell Company false    
ICFR Auditor Attestation Flag true    
Entity Public Float     $ 3,285,492
Entity Common Stock, Shares Outstanding   27,248,590  
Amendment Flag false    
Entity Central Index Key 0001573516    
Current Fiscal Year End Date --12-31    
Document Fiscal Year Focus 2020    
Document Fiscal Period Focus FY    
Documents Incorporated by Reference Portions of the Registrant’s definitive Proxy Statement relating to the Annual Meeting of Stockholders on May 5, 2021 will be incorporated by reference in Part III herein.    
v3.20.4
Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Current assets    
Cash and cash equivalents $ 163.6 $ 280.3
Accounts receivable—trade, less allowance for doubtful accounts of $0.1 in 2020 and $1.2 in 2019 168.8 172.9
Inventories, at lower of cost or market 279.1 227.6
Prepaid expenses and other current assets 13.7 30.0
Total current assets 625.2 710.8
Property, plant and equipment, at cost less accumulated depreciation and amortization of $1,191.4 in 2020 and $1,079.2 in 2019 1,867.6 1,807.3
Other assets 192.9 169.1
Total assets 2,685.7 2,687.2
Current liabilities    
Current maturities of long-term debt 51.2 38.8
Trade accounts payable and accrued liabilities 471.1 466.2
Income taxes payable 8.8 0.0
Total current liabilities 531.1 505.0
Long-term debt, including capitalized lease obligations 951.2 999.3
Deferred income taxes 218.4 216.7
Asset retirement obligations 35.1 32.8
Deferred credits and other liabilities 165.8 130.4
Total liabilities 1,901.6 1,884.2
Stockholders' Equity    
Preferred Stock, par $0.01 (authorized 20,000,000 shares, none outstanding) 0.0 0.0
Common Stock, par $0.01, (authorized 200,000,000 shares, 46,767,164 shares issued at December 2020 and 2019, respectively) 0.5 0.5
Treasury stock (19,518,551 and 16,307,048 shares held at December 31, 2020 and 2019, respectively) (1,490.9) (1,099.8)
Additional paid in capital (APIC) 533.3 538.7
Retained earnings 1,743.1 1,362.9
Accumulated other comprehensive income (AOCI) (1.9) 0.7
Total stockholders' equity 784.1 803.0
Total liabilities and stockholders' equity $ 2,685.7 $ 2,687.2
v3.20.4
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Statement of Financial Position [Abstract]    
Accounts receivable - trade, allowance for doubtful accounts $ 0.1 $ 1.2
Accumulated depreciation and amortization $ 1,191.4 $ 1,079.2
Stockholders' Equity    
Preferred stock par value (in dollars per share)   $ 0.01
Preferred stock shares authorized (in shares) 20,000,000 20,000,000
Preferred stock shares outstanding (in shares) 0 0
Common stock par value (in dollars per share) $ 0.01 $ 0.01
Common stock shares authorized (in shares) 200,000,000 200,000,000
Common stock shares issued (in shares) 46,767,164 46,767,164
Treasury stock (in shares) 19,518,551 16,307,048
v3.20.4
Consolidated Income Statements - USD ($)
shares in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Operating Revenues      
Sales and other operating revenues $ 11,264,300 $ 14,034,600 $ 14,362,900
Operating Expenses      
Station and other operating expenses 549,100 559,300 541,300
Depreciation and amortization 161,000 152,200 134,000
Selling, general and administrative 171,100 144,600 136,200
Accretion of asset retirement obligations 2,300 2,100 2,000
Acquisition related costs 1,700 0 0
Total operating expenses 10,706,600 13,766,300 14,087,100
Net settlement proceeds 0 100 50,400
Gain (loss) on sale of assets 1,300 100 (1,100)
Income from operations 559,000 268,500 325,100
Other income (expense)      
Interest income 1,000 3,200 1,500
Interest expense (51,200) (54,900) (52,900)
Loss on early debt extinguishment 0 (14,800) 0
Other nonoperating income (expense) 300 400 200
Total other income (expense) (49,900) (66,100) (51,200)
Income before income taxes 509,100 202,400 273,900
Income tax expense (benefit) 123,000 47,600 60,300
Net Income $ 386,100 $ 154,800 $ 213,600
Basic and Diluted Earnings Per Common Share:      
Basic (in dollars per share) $ 13.25 $ 4.90 $ 6.54
Diluted (in dollars per share) $ 13.08 $ 4.86 $ 6.48
Weighted-average shares outstanding (in thousands):      
Basic (in shares) 29,132 31,594 32,674
Diluted (in shares) 29,526 31,858 32,983
Supplemental information:      
Excise taxes $ 1,760,000 $ 1,933,300 $ 1,838,900
Petroleum product sales      
Operating Revenues      
Sales and other operating revenues [1] 8,208,600 11,373,800 11,858,400
Operating Expenses      
Operating expenses 7,325,700 10,707,400 11,251,100
Merchandise      
Operating Revenues      
Sales and other operating revenues 2,955,100 2,620,100 2,423,000
Operating Expenses      
Operating expenses 2,495,700 2,200,700 2,022,500
Other operating revenues      
Operating Revenues      
Sales and other operating revenues $ 100,600 $ 40,700 $ 81,500
[1] Includes excise taxes of $1,760.0, $1,933.3 and $1.838.9 in the years ended December 31, 2020, 2019 and 2018, respectively.
v3.20.4
Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Statement of Comprehensive Income [Abstract]      
Net income (loss) $ 386.1 $ 154.8 $ 213.6
Other comprehensive income (loss), net of tax      
Initial fair value 0.0 (0.1) 0.0
Realized gain (loss) (0.9) 0.2 0.0
Unrealized gain (loss) (3.4) 1.0 0.0
Reclassified to interest expense 0.9 (0.2) 0.0
Total (3.4) 0.9 0.0
Deferred income tax expense (0.8) 0.2 0.0
Other comprehensive income (loss) (2.6) 0.7 0.0
Comprehensive income (loss) $ 383.5 $ 155.5 $ 213.6
v3.20.4
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Operating Activities      
Net income $ 386,100 $ 154,800 $ 213,600
Adjustments to reconcile net income to net cash provided by operating activities      
Depreciation and amortization 161,000 152,200 134,000
Deferred and noncurrent income tax charges (benefits) 2,500 23,700 37,900
Loss on early debt extinguishment 0 14,800 0
Accretion of asset retirement obligations 2,300 2,100 2,000
Pretax (gains) losses from sale of assets (1,300) (100) 1,100
Net decrease (increase) in noncash operating working capital (13,100) (48,700) 2,300
Other operating activities - net 26,200 14,500 7,800
Net cash provided by operating activities 563,700 313,300 398,700
Investing Activities      
Property additions (230,700) (204,800) (204,300)
Proceeds from sale of assets 8,100 2,500 1,200
Other investing activities - net (1,700) (800) (6,000)
Net cash required by investing activities (224,300) (203,100) (209,100)
Financing Activities      
Purchase of treasury stock (399,600) (165,800) (144,400)
Dividends paid (6,900) 0 0
Repayments of debt (38,900) (573,400) (21,300)
Borrowings of debt 0 743,800 0
Early debt extinguishment costs 0 (10,400) 0
Debt issuance costs 0 (4,100) 0
Amounts related to share-based compensation (10,700) (4,500) (9,400)
Net cash required by financing activities (456,100) (14,400) (175,100)
Net change in cash, cash equivalents, and restricted cash (116,700) 95,800 14,500
Cash, cash equivalents, and restricted cash at January 1 280,300 184,500 170,000
Cash, cash equivalents, and restricted cash at December 31 $ 163,600 $ 280,300 $ 184,500
v3.20.4
Consolidated Statements of Changes in Equity - USD ($)
$ in Millions
Total
Cumulative Effect, Period of Adoption, Adjustment
Common Stock
Treasury Stock
APIC
Retained Earnings
Retained Earnings
Cumulative Effect, Period of Adoption, Adjustment
AOCI
Balance (in shares) at Dec. 31, 2017     46,767,164          
Balance at Dec. 31, 2017 $ 738.4   $ 0.5 $ (806.5) $ 549.9 $ 994.5   $ 0.0
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 213.6         213.6    
Purchase of treasury stock (144.4)     (144.4)        
Issuance of treasury stock 0.0     10.6 (10.6)      
Amounts related to share-based compensation (9.4)       (9.4)      
Share-based compensation expense 9.1       9.1      
Balance at Dec. 31, 2018 807.3   $ 0.5 (940.3) 539.0 1,208.1   0.0
Balance (in shares) at Dec. 31, 2018     46,767,164          
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 154.8         154.8    
Loss on interest rate hedge, net of tax 0.7             0.7
Purchase of treasury stock (165.8)     (165.8)        
Issuance of treasury stock 0.0     6.3 (6.3)      
Amounts related to share-based compensation (4.5)       (4.5)      
Share-based compensation expense 10.5       10.5      
Balance at Dec. 31, 2019 $ 803.0   $ 0.5 (1,099.8) 538.7 1,362.9   0.7
Balance (in shares) at Dec. 31, 2019 46,767,164   46,767,164          
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income $ 386.1 $ 1.1       386.1 $ 1.1  
Loss on interest rate hedge, net of tax (2.6)             (2.6)
Cash dividends declared, ($0.25 per share) (6.9)         (6.9)    
Dividend equivalent units accrued 0.0       0.1 (0.1)    
Purchase of treasury stock (399.6)     (399.6)        
Issuance of treasury stock (0.5)     8.5 (9.0)      
Amounts related to share-based compensation (10.7)       (10.7)      
Share-based compensation expense 14.2       14.2      
Balance at Dec. 31, 2020 $ 784.1   $ 0.5 $ (1,490.9) $ 533.3 $ 1,743.1   $ (1.9)
Balance (in shares) at Dec. 31, 2020 46,767,164   46,767,164          
v3.20.4
Consolidated Statements of Changes in Equity (Parenthetical)
12 Months Ended
Dec. 31, 2020
$ / shares
Statement of Stockholders' Equity [Abstract]  
Dividends declared (in dollars per share) $ 0.25
v3.20.4
Description of Business and Basis of Presentation
12 Months Ended
Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business and Basis of Presentation Description of Business and Basis of Presentation
 
The business of Murphy USA Inc. and its subsidiaries (“Murphy USA” or the “Company”) primarily consists of the U.S. retail marketing business that was separated from its former parent company, Murphy Oil Corporation (“Murphy Oil”), plus other assets, liabilities and operating expenses of Murphy Oil that were associated with supporting the activities of the U.S. retail marketing operations.  Murphy USA was incorporated in March 2013. The separation was approved by the Murphy Oil board of directors on August 7, 2013, and was completed on August 30, 2013 through the distribution of 100% of the outstanding capital stock of Murphy USA to holders of Murphy Oil common stock on the record date of August 21, 2013. Following the separation, Murphy USA is an independent, publicly traded company, and Murphy Oil retains no ownership interest in Murphy USA.
 
Murphy USA markets refined products through a network of retail gasoline stores and unbranded wholesale customers. Murphy USA’s owned retail stores are almost all located in close proximity to Walmart stores in 25 states and use the brand name Murphy USA®. Murphy USA also markets gasoline and other products at standalone stores under the Murphy Express brand. At December 31, 2020, Murphy USA had a total of 1,503 Company stores. The Company also has certain product supply and wholesale assets, including product distribution terminals and pipeline positions.
v3.20.4
Significant Accounting Policies
12 Months Ended
Dec. 31, 2020
Accounting Policies [Abstract]  
Significant Accounting Policies Significant Accounting Policies
 
PRINCIPLES OF CONSOLIDATION – These consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and include the accounts of Murphy USA Inc. and its subsidiaries for all periods presented. All significant intercompany accounts and transactions within the consolidated financial statements have been eliminated.
 
REVENUE RECOGNITION – Revenue is recognized when obligations under the terms of a contract with our customers are satisfied; generally, this occurs with the transfer of control of our petroleum products, convenience merchandise, Renewable Identification Numbers ("RINs") and other assets to our third-party customers. Revenue is measured as the amounts of consideration we expect to receive in exchange for transferring goods or providing services. Excise and sales tax that we collect where we have determined we are the principal in the transaction have been recorded as revenue on a jurisdiction-by-jurisdiction basis.
 
The Company enters into buy/sell and similar arrangements when petroleum products are held at one location but are needed at a different location. The Company often pays or receives funds related to the buy/sell arrangement based on location or quality differences. The Company accounts for such transactions on a net basis in its Consolidated Income Statements. See Note 3 "Revenues" for additional information.
 
SHIPPING AND HANDLING COSTS – Costs incurred for the shipping and handling of motor fuel are included in Petroleum product cost of goods sold in the Consolidated Income Statements. Costs incurred for the shipping and handling of convenience store merchandise are included in Merchandise cost of goods sold in the Consolidated Income Statements.
 
TAXES COLLECTED FROM CUSTOMERS AND REMITTED TO GOVERNMENT AUTHORITIES – Excise and other taxes collected on sales of refined products and remitted to governmental agencies are included in operating revenues and operating expenses in the Consolidated Income Statements. Excise taxes on petroleum products collected and remitted were $1.8 billion in 2020, $1.9 billion in 2019, and $1.8 billion in 2018.
 
CASH EQUIVALENTS – Short-term investments, which include government securities, money market funds and other instruments with government securities as collateral, that have a maturity of three months or less from the date of purchase are classified as cash equivalents.
 
ACCOUNTS RECEIVABLE – The Company’s accounts receivable are recorded at the invoiced amount and do not bear interest. The accounts receivable primarily consists of amounts owed to the Company from credit card companies and by customers for wholesale sales of refined petroleum products. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses on these receivables. The Company reviews this allowance for adequacy at least quarterly and bases its assessment on a combination of current information about its customers and historical write-off experience. Any trade accounts receivable balances
written off are charged against the allowance for doubtful accounts. The Company has not experienced any significant credit-related losses in the past three years.
 
INVENTORIES – Inventories of most finished products are valued at the lower of cost, generally applied on a last-in, first-out (“LIFO”) basis, or market. Any increments to LIFO inventory volumes are valued based on the first purchase price for these volumes during the year. Merchandise inventories held for resale are carried at average cost. Materials and supplies are valued at the lower of average cost or estimated value.
 
VENDOR ALLOWANCES AND REBATES – Murphy USA receives payments for vendor allowances, volume rebates and other related payments from various suppliers of its convenience store merchandise. Vendor allowances for price markdowns are credited to merchandise cost of goods sold during the period the related markdown is recognized. Volume rebates of merchandise are recorded as reductions to merchandise cost of goods sold when the merchandise qualifying for the rebate is sold. Slotting and stocking allowances received from a vendor are recorded as a reduction to cost of sales over the period covered by the agreement.
 
PROPERTY, PLANT AND EQUIPMENT – Additions to property, plant and equipment, including renewals and betterments, are capitalized and recorded at cost. Certain marketing facilities are primarily depreciated using the composite straight-line method with depreciable lives ranging from 16 to 25 years. Gasoline stations, improvements to gasoline stations and other assets are depreciated over 3 to 50 years by individual unit on the straight-line method. The Company capitalizes interest costs as a component of construction in progress on individually significant projects based on the weighted average interest rates incurred on its long-term borrowings. Total interest cost capitalized was $1.4 million in 2020 and 2019, respectfully and $2.2 million in 2018.

The Company has undertaken like-kind exchange ("LKE") transactions under the Federal tax code in an effort to acquire and sell real and personal property in a tax efficient manner. The Company generally enters into forward transactions, in which property is sold and the proceeds are reinvested by acquiring similar property; and reverse transactions, in which property is acquired and similar property is subsequently sold. A qualified LKE intermediary is used to facilitate these LKE transactions. Proceeds from forward LKE transactions are held by the intermediary and are classified as restricted cash on the Company's balance sheet because the funds must be reinvested in similar properties. If the acquisition of suitable LKE properties is not completed within 180 days of the sale of the Company-owned property, the proceeds are distributed to the Company by the intermediary and are reclassified as available cash and applicable income taxes are determined. An exchange accommodation titleholder, a type of variable interest entity, is used to facilitate reverse like-kind exchanges. The acquired assets are held by the exchange accommodation titleholder until the exchange transactions are complete. If the Company determines that it is the primary beneficiary of the exchange accommodation titleholder, the replacements assets held by the exchange accommodation titleholder are consolidated and recorded in Property, Plant and Equipment on the Consolidated Balance Sheets. The unspent proceeds that are held in trust with the intermediary are recorded as noncurrent assets in the Consolidated Balance Sheet as the cash was restricted for the acquisition of property, plant and equipment. At December 31, 2020 and December 31, 2019, the Company had no open LKE transactions with an intermediary.
IMPAIRMENT OF ASSETS – Long-lived assets, which include property and equipment and finite-lived intangible assets, are tested for recoverability whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. A long-lived asset is not recoverable if its carrying amount exceeds the sum of the undiscounted cash flows expected to result from its use and eventual disposition. If a long-lived asset is not recoverable, an impairment loss is recognized for the amount by which the carrying amount of the long-lived asset exceeds its fair value, with fair value determined based on discounted estimated net cash flows or other appropriate methods.
ASSET RETIREMENT OBLIGATIONS – The Company records a liability for asset retirement obligations (“ARO”) equal to the fair value of the estimated cost to retire an asset. The ARO liability is initially recorded in the period in which the obligation meets the definition of a liability, which is generally when the asset is placed in service. The ARO liability is estimated using existing regulatory requirements and anticipated future inflation rates. When the liability is initially recorded, the Company increases the carrying amount of the related long-lived asset by an amount equal to the original liability. The liability is increased over time to reflect the change in its present value, and the capitalized cost is depreciated over the useful life of the related long-lived asset. The Company reevaluates the adequacy of its recorded ARO liability at least annually. Actual costs of asset retirements such as dismantling service stations and site restoration are charged against the related liability. Any difference between costs incurred
upon settlement of an asset retirement obligation and the recorded liability is recognized as a gain or loss in the Company’s Consolidated Income Statements.
ENVIRONMENTAL LIABILITIES – A liability for environmental matters is established when it is probable that an environmental obligation exists and the cost can be reasonably estimated. If there is a range of reasonably estimated costs, the most likely amount will be recorded, or if no amount is most likely, the minimum of the range is used. Related expenditures are charged against the liability. Environmental remediation liabilities have not been discounted for the time value of future expected payments. Environmental expenditures that have future economic benefit are capitalized.
INCOME TAXES – The Company accounts for income taxes using the asset and liability method. Under this method, income taxes are provided for amounts currently payable and for amounts deferred as tax assets and liabilities based on differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. Deferred income taxes are measured using the enacted tax rates that are assumed will be in effect when the differences reverse. The Company routinely assesses the realizability of deferred tax assets based on available positive and negative evidence including assumptions of future taxable income, tax planning strategies and other pertinent factors.  A deferred tax asset valuation allowance is recorded when evidence indicates that it is more likely than not that all or a portion of these deferred tax assets will not be realized in a future period.  The accounting principles for income tax uncertainties permit recognition of income tax benefits only when they are more likely than not to be realized.  
The Company has elected to classify any interest expense and penalties related to the underpayment of income taxes in Income tax expense in the Consolidated Income Statements.
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES – The fair value of a derivative instrument is recognized as an asset or liability in the Company’s Consolidated Balance Sheets. Upon entering into a derivative contract, the Company may designate the derivative as either a fair value hedge or a cash flow hedge, or decide that the contract is not a hedge, and therefore, recognize changes in the fair value of the contract in earnings. The Company documents the relationship between the derivative instrument designated as a hedge and the hedged items as well as its objective for risk management and strategy for use of the hedging instrument to manage the risk. Derivative instruments designated as fair value or cash flow hedges are linked to specific assets and liabilities or to specific firm commitments or forecasted transactions. The Company assesses at inception and on an ongoing basis whether a derivative instrument accounted for as a hedge is highly effective in offsetting changes in the fair value or cash flows of the hedged item. A derivative that is not a highly effective hedge does not qualify for hedge accounting. The change in the fair value of a qualifying fair value hedge is recorded in earnings along with the gain or loss on the hedged item. The effective portion of the change in the fair value of a qualifying cash flow hedge is recorded in Accumulated other comprehensive income (AOCI) in the consolidated Balance Sheets until the hedged item is recognized currently in earnings. If a derivative instrument no longer qualifies as a cash flow hedge and the underlying forecasted transaction is no longer probable of occurring, hedge accounting is discontinued and the gain or loss recorded in Accumulated other comprehensive income is recognized immediately in earnings. See Note 12 "Financial Instruments and Risk Management" and Note 15 "Assets and Liabilities Measured at Fair Value" for further information about the Company’s derivatives.
STOCK-BASED COMPENSATION – The fair value of awarded stock options, restricted stock, restricted stock units and performance stock units is determined based on a combination of management assumptions for awards issued. The Company uses the Black-Scholes option pricing model for computing the fair value of stock options. The primary assumptions made by management included the expected life of the stock option award and the expected volatility of the Company’s common stock prices. The Company uses both historical data and current information to support its assumptions. Stock option expense is recognized on a straight-line basis over the requisite service period of three years. The Company uses a Monte Carlo valuation model to determine the fair value of performance-based stock units that are based on performance compared against a peer group and the related expense is recognized over the three-year requisite service period. Management estimates the number of all awards that will not vest and adjusts its compensation expense accordingly. Differences between estimated and actual vested amounts are accounted for as an adjustment to expense when known. See Note 10 "Incentive Plans" or a discussion of the basis of allocation of such costs.

USE OF ESTIMATES – In preparing the financial statements of the Company in conformity with U.S. GAAP, management has made a number of estimates and assumptions related to the reporting of assets, liabilities, revenues, and expenses and the disclosure of contingent assets and liabilities. Actual results may differ from the
estimates. On an ongoing basis, we review our estimates based on currently available information. Changes in facts and circumstances may result in revised estimates.
v3.20.4
Revenues
12 Months Ended
Dec. 31, 2020
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
Revenue Recognition

The following table disaggregates our revenue by major source for the years ended December 31, 2020, 2019, and 2018.
Years Ended December 31,
(Millions of dollars)202020192018
Marketing Segment
Petroleum product sales (at retail) 1
$7,444.6 $10,184.0 $10,459.2 
Petroleum product sales (at wholesale) 1
764.0 1,189.8 1,399.2 
Total petroleum product sales8,208.6 11,373.8 11,858.4 
Merchandise sales2,955.1 2,620.1 2,423.0 
Other operating revenues:
RINs95.5 34.8 75.2 
Other revenues 2
4.8 5.6 5.7 
Total marketing segment revenues11,264.0 14,034.3 $14,362.3 
Corporate and Other Assets 0.3 0.3 $0.6 
Total revenues$11,264.3 $14,034.6 $14,362.9 

1 Includes excise and sales taxes that remain eligible for inclusion under Topic 606
2 Primarily includes collection allowance on excise and sales taxes and other miscellaneous items


Marketing segment

Petroleum product sales (at retail). For our retail store locations, the revenue related to petroleum product sales is recognized as the fuel is pumped to our customers. The transaction price at the pump typically includes some portion of sales or excise taxes as levied in the respective jurisdictions. Those taxes that are collected for remittance to governmental entities on a pass through basis are not recognized as revenue and they are recorded to a liability account until they are paid. Our customers typically use a mixture of cash, checks, credit cards and debit cards to pay for our products as they are received. We have accounts receivable from the various credit/debit card providers at any point in time related to product sales made on credit cards and debit cards. These receivables are typically collected in two to seven days, depending on the terms with the particular credit/debit card providers. Payment fees retained by the credit/debit card providers are recorded as station and other operating expenses.

Petroleum product sales (at wholesale). Our sales of petroleum products at wholesale are generally recorded as revenue when the deliveries have occurred and legal ownership of the product has transferred to the customer. Title transfer for bulk refined product sales typically occurs at pipeline custody points and upon trucks loading at product terminals. For bulk pipeline sales, we record receivables from customers that are generally collected within a week from custody transfer date. For our rack product sales, the majority of our customers' accounts are drafted by us within 10 days from product transfer.

Merchandise sales. For our retail store locations, the revenue related to merchandise sales is recognized as the customer completes their purchase at our locations. The transaction price typically includes some portion of sales tax as levied in the respective jurisdictions. Those taxes that are collected for remittance to governmental entities on a pass through basis are not recognized as revenue and they are recorded to a liability account until they are paid. As noted above, a mixture of payment types are used for these revenues and the same terms for credit/debit card receivables are realized.
The most significant judgment with respect to merchandise sales revenue is determining whether we are the principal or agent for some categories of merchandise such as lottery tickets, lotto tickets, newspapers and other small categories of merchandise. For scratch-off lottery tickets, we have determined we are the principal in the majority of the jurisdictions and therefore we record those sales on a gross basis. We have some categories of merchandise (such as lotto tickets) where we are the agent and the revenues recorded for those transactions are our net commission only.

In June 2018 the Company initiated a loyalty pilot program through a limited number of its retail locations and was rolled out chain-wide in March 2019. The customers earn rewards based on their spending or other promotional activities. This program creates a performance obligation which requires us to defer a portion of sales revenue to the loyalty program participants until they redeem their rewards. The rewards may be redeemed for free or discounted merchandise or cash discounts on fuel purchases. Earned rewards expire after an account is inactive for a period of 90 days. We recognize loyalty revenue when a customer redeems an earned reward. Deferred revenue associated with Murphy Rewards is included in Trade accounts payable and accrued liabilities in our Consolidated Balance Sheet. The deferred revenues recorded in 2020 and 2019 were immaterial.

RINs sales. For the sale of RINs, we recognize revenue when the RIN is transferred to the counter-party and the sale is completed. Receivables from our counter-parties related to the RIN sales are typically collected within five days of the sale.

Other revenues. Items reported as other operating revenues include collection allowances for excise and sales tax and other miscellaneous items and are recognized as revenue when the transaction is completed.

Accounts receivable
Trade accounts receivable on the balance sheet represents both receivables related to contracts with customers and other trade receivables. At December 31, 2020 and December 31, 2019, we had $88.3 million and $96.0 million of receivables, respectively, related to contracts with customers recorded. All of the trade accounts receivable related to contracts with customers outstanding at the end of each period were collected during the succeeding quarter. These receivables were generally related to credit and debit card transactions along with short term bulk and wholesale sales from our customers, which have a very short settlement window.
v3.20.4
Inventories
12 Months Ended
Dec. 31, 2020
Inventory Disclosure [Abstract]  
Inventories Inventories
 
Inventories consisted of the following:
 December 31,
(Millions of dollars)20202019
Finished products - FIFO basis$223.0 $259.2 
Less LIFO reserve - finished products(101.3)(160.8)
Finished products - LIFO basis121.7 98.4 
Store merchandise for resale152.0 123.0 
Materials and supplies5.4 6.2 
Total inventories$279.1 $227.6 
 
At December 31, 2020 and 2019, the replacement cost (market value) of last-in, first-out (LIFO) inventories exceeded the LIFO carrying value by $101.3 million and $160.8 million, respectively.
v3.20.4
Property, Plant and Equipment
12 Months Ended
Dec. 31, 2020
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment Property, Plant and Equipment
  December 31, 2020December 31, 2019
(Millions of dollars)Estimated Useful LifeCostNetCostNet
Land $609.5 $609.5 $598.6 $598.6 
Pipeline and terminal facilities
16 to 25 years
79.8 43.5 77.5 43.7 
Retail gasoline stations
3 to 50 years
2,179.7 1,123.2 2,034.4 1,073.6 
Buildings
20 to 45 years
66.7 48.5 60.5 44.9 
Other
3 to 20 years
123.3 42.9 115.5 46.5 
  $3,059.0 $1,867.6 $2,886.5 $1,807.3 

Depreciation expense of $160.0 million, $151.2 million and $132.5 million was recorded for the years ended December 31, 2020, 2019 and 2018, respectively.
v3.20.4
Accounts Payable and Accrued Liabilities
12 Months Ended
Dec. 31, 2020
Payables and Accruals [Abstract]  
Accounts Payable and Accrued Liabilities Accounts Payable and Accrued Liabilities
 
Trade accounts payable and accrued liabilities consisted of the following:
 December 31,
(Millions of dollars)20202019
Trade accounts payable$261.0 $280.8 
Excise taxes/withholdings payable84.1 86.2 
Accrued insurance obligations30.3 24.4 
Accrued taxes other than income31.7 25.6 
Accrued compensation and benefits32.5 26.5 
Other31.5 22.7 
Accounts payable and accrued liabilities$471.1 $466.2 
v3.20.4
Long-Term Debt
12 Months Ended
Dec. 31, 2020
Debt Disclosure [Abstract]  
Long-Term Debt Long-Term Debt
 
Long-term debt consisted of the following:
 December 31,
(Millions of dollars)20202019
5.625% senior notes due 2027 (net of unamortized discount of $2.4 at 2020 and $2.7 at 2019)
297.6 297.3 
4.75% senior notes due 2029 (net of unamortized discount of $5.4 at 2020 and $6.1 at 2019)
494.6 493.9 
Term loan due 2023 (effective interest rate of 2.67% at 2020 and 4.31% at 2019)
212.5 250.0 
Capitalized lease obligations, vehicles, due through 20242.1 2.4 
Unamortized debt issuance costs(4.4)(5.5)
Total long-term debt1,002.4 1,038.1 
Less current maturities51.2 38.8 
Total long-term debt, net of current$951.2 $999.3 
 
Senior Notes

On April 25, 2017, Murphy Oil USA, Inc., our primary operating subsidiary, issued $300 million of 5.625% Senior Notes due 2027 (the "2027 Senior Notes") under its existing shelf registration statement. The 2027 Senior Notes are fully and unconditionally guaranteed by Murphy USA, and are guaranteed by certain 100% owned subsidiaries that guarantee our credit facilities. The indenture governing the 2027 Senior Notes contains restrictive covenants
that limit, among other things, the ability of Murphy USA, Murphy Oil USA, Inc. and the restricted subsidiaries to incur additional indebtedness or liens, dispose of assets, make certain restricted payments or investments, enter into transactions with affiliates or merge with or into other entities.

On September 13, 2019, Murphy Oil USA, Inc., issued $500 million of 4.75% Senior Notes due 2029 (the “2029 Senior Notes”). The net proceeds from the issuance of the 2029 Senior Notes were used to fund, in part, the tender offer and redemption of the prior notes issuance. The 2029 Senior Notes are fully and unconditionally guaranteed by Murphy USA, and are guaranteed by certain 100% owned subsidiaries that guarantee our credit facilities. The indenture governing the 2029 Senior Notes contains restrictive covenants that are essentially identical to the covenants for the 2027 Senior Notes.
 
The 2027 and 2029 Senior Notes and the guarantees rank equally with all of our and the guarantors’ existing and future senior unsecured indebtedness and effectively junior to our and the guarantors’ existing and future secured indebtedness (including indebtedness with respect to the credit facilities) to the extent of the value of the assets securing such indebtedness.  The 2027 and 2029 Senior Notes are structurally subordinated to all of the existing and future third-party liabilities, including trade payables, of our existing and future subsidiaries that do not guarantee the notes.

See Note 21 "Subsequent Events" for additional information regarding a new issuance of senior notes.
 
Credit Facilities and Term Loan

In August 2019, we amended and extended our existing credit agreement. The effective date of the agreement was extended to August, 2024.  The credit agreement provides for a committed $325 million asset-based loan (ABL) facility (with availability subject to the borrowing base described below) and a $200 million term loan facility with an additional $50 million available until December 31, 2019.  It also provides for a $150 million uncommitted incremental facility. On August 27, 2019, Murphy Oil USA, Inc. borrowed $200 million under the term loan facility that has a four-year term and prepaid the remaining balance of the prior term loan of $57 million. On December 31, 2019, we borrowed the additional $50 million term loan, and at December 31, 2020 had an outstanding balance of $212.5 million. The term loan is due August 2023 and requires quarterly principal payments of $12.5 million beginning April 1, 2020. As of December 31, 2020, we had zero outstanding under our ABL facility.

The borrowing base is expected, at any time of determination, to be an amount (net of reserves) equal to the sum of:
 
100% of eligible cash at such time, plus
90% of eligible credit card receivables at such time, plus
90% of eligible investment grade accounts, plus
85% of eligible other accounts, plus
80% of eligible product supply/wholesale refined products inventory at such time, plus
75% of eligible retail refined products inventory at such time, plus
 
the lesser of (i) 70% of the average cost of eligible retail merchandise inventory at such time and (ii) 85% of the net orderly liquidation value of eligible retail merchandise inventory at such time.

The ABL facility includes a $100 million sublimit for the issuance of letters of credit. Letters of credit issued under the ABL facility reduce availability under the ABL facility.
 
Interest payable on the credit facilities is based on either:
the London interbank offered rate, adjusted for statutory reserve requirements (the “Adjusted LIBO Rate”); or
the Alternate Base Rate, which is defined as the highest of (a) the prime rate, (b) the federal funds effective rate from time to time plus 0.50% per annum and (c) the one-month Adjusted LIBO Rate plus 1.00% per annum,

plus, (A) in the case Adjusted LIBO Rate borrowings, (i) with respect to the ABL facility, spreads ranging from 1.50% to 2.00% per annum depending on a total debt to EBITDA ratio under the ABL facility or (ii) with respect to the term facility, spreads ranging from 2.50% to 2.75% per annum depending on a total debt to EBITDA ratio and (B) in the
case of Alternate Base Rate borrowings, (i) with respect to the ABL facility, spreads ranging from 0.50% to 1.00% per annum depending on a total debt to EBITDA ratio under the ABL facility or (ii) with respect to the term facility, spreads ranging from 1.50% to 1.75% per annum depending on a total debt to EBITDA ratio.
 
The interest rate period with respect to the Adjusted LIBO Rate interest rate option can be set at one-, two-, three-, or six-months as selected by us in accordance with the terms of the credit agreement.

The credit agreement contains certain covenants that limit, among other things, the ability of us and our subsidiaries to incur additional indebtedness or liens, to make certain investments, to enter into sale-leaseback transactions, to make certain restricted payments, to enter into consolidations, mergers or sales of material assets and other fundamental changes, to transact with affiliates, to enter into agreements restricting the ability of subsidiaries to incur liens or pay dividends, or to make certain accounting changes. In addition, the credit agreement requires us to maintain a minimum fixed charge coverage ratio of a minimum of 1.0 to 1.0 when availability for at least three consecutive business days is less than the greater of (a) 17.5% of the lesser of the aggregate ABL facility commitments and the borrowing base and (b) $70,000,000 (including as of the most recent fiscal quarter end on the first date when availability is less than such amount) as well as a maximum secured debt to EBITDA ratio of 4.5 to 1.0 at any time when term facility commitments or term loans thereunder are outstanding.  As of December 31, 2020, our fixed charge coverage ratio was 0.90 however, we had more than $100 million of availability under the ABL facility at that date so the fixed charge coverage rate currently has no impact on our operations or liquidity.  Our secured debt to EBITDA ratio as of December 31, 2020 was 0.29 to 1.0.
 
The credit agreement contains restrictions on certain payments, including dividends, when availability under the credit agreement is less than or equal to the greater of $100 million and 25% of the lesser of the revolving commitments and the borrowing base and our fixed charge coverage ratio is less than 1.0 to 1.0 (unless availability under the credit agreement is greater than $100 million and 40% of the lesser of the revolving commitments and the borrowing base). As of December 31, 2020, our ability to make restricted payments was not limited as our availability under the borrowing base was more than $100 million, while our fixed charge coverage ratio under our credit agreement was less than 1.0 to 1.0.  As of December 31, 2020, the Company had a shortfall of approximately $82.7 million of our net income and retained earnings subject to such restrictions before the fixed charge coverage ratio would exceed 1.0 to 1.0.

All obligations under the credit agreement are guaranteed by Murphy USA and the subsidiary guarantors party thereto, and all obligations under the credit agreement, including the guarantees of those obligations, are secured by certain assets of Murphy USA, Murphy Oil USA, Inc. and the guarantors party thereto.

See also Note 21 "Subsequent Events" for additional information concerning changes to our credit facilities and term loan.
v3.20.4
Asset Retirement Obligations (ARO)
12 Months Ended
Dec. 31, 2020
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations (ARO) Asset Retirement Obligations (ARO)
The majority of the ARO recognized by the Company at December 31, 2020 and 2019 related to the estimated costs to dismantle and abandon certain of its retail gasoline stations. The Company has not recorded an ARO for certain of its marketing assets because sufficient information is presently not available to estimate a range of potential settlement dates for the obligation. These assets are consistently being upgraded and are expected to be operational into the foreseeable future. In these cases, the obligation will be initially recognized in the period in which sufficient information exists to estimate the obligation.
A reconciliation of the beginning and ending aggregate carrying amount of the ARO is shown in the following table.
 December 31,
(Millions of dollars)20202019
Balance at beginning of period$32.8 $30.7 
Accretion expense2.3 2.1 
Settlement of liabilities(0.8)(0.4)
Liabilities incurred0.8 0.4 
Balance at end of period$35.1 $32.8 
 
The estimation of future ARO is based on a number of assumptions requiring professional judgment. The Company cannot predict the type of revisions to these assumptions that may be required in future periods due to the lack of availability of additional information.
v3.20.4
Income Taxes
12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
 
The components of income before income taxes for each of the three years ended December 31, 2020 and income tax expense (benefit) attributable thereto were as follows:
 Years Ended December 31,
(Millions of dollars)202020192018
Income (loss) before income taxes$509.1 $202.4 $273.9 
Income tax expense (benefit)   
Federal - Current$96.0 15.6 18.4 
Federal - Deferred4.7 21.7 31.0 
State - Current and deferred22.3 10.3 10.9 
Total$123.0 $47.6 $60.3 
 
The following table reconciles income taxes based on the U.S. statutory tax rate to the Company’s income tax expense (benefit).
 Years Ended December 31,
(Millions of dollars)202020192018
Income tax expense based on the U.S. statutory tax rate$106.9 $42.5 $57.5 
State income taxes, net of federal benefit17.5 8.6 8.3 
Federal credits(1.9)(2.3)(2.0)
Other, net0.5 (1.2)(3.5)
Total$123.0 $47.6 $60.3 

An analysis of the Company’s deferred tax assets and deferred tax liabilities at December 31, 2020 and 2019 showing the tax effects of significant temporary differences is as follows:
 December 31,
(Millions of dollars)20202019
Deferred tax assets  
Property costs and asset retirement obligations$4.5 $3.7 
Employee benefits8.0 6.1 
Operating leases liability31.6 25.0 
Other deferred tax assets7.2 2.1 
Total gross deferred tax assets51.3 36.9 
Deferred tax liabilities  
Accumulated depreciation and amortization(213.2)(191.2)
State deferred taxes(20.2)(27.9)
Operating leases right of use assets(31.0)(24.8)
Other deferred tax liabilities(5.3)(9.7)
Total gross deferred tax liabilities(269.7)(253.6)
Net deferred tax liabilities$(218.4)$(216.7)

In management’s judgment, the net deferred tax assets in the preceding table will more likely than not be realized as reductions of future taxable income or by utilizing available tax planning strategies.

As of December 31, 2020, the earliest year remaining open for Federal and state audit and/or settlement is 2017 and 2015, respectively. Although the Company believes that recorded liabilities for unsettled issues are adequate, additional gains or losses could occur in future periods from resolution of outstanding unsettled matters.
The FASB’s rules for accounting for income tax uncertainties clarify the criteria for recognizing uncertain income tax benefits and require additional disclosures about uncertain tax positions.  Under U.S. GAAP the financial statement recognition of the benefit for a tax position is dependent upon the benefit being more likely than not to be sustainable upon audit by the applicable taxing authority. If this threshold is met, the tax benefit is then measured and recognized at the largest amount that is greater than 50 percent likely of being realized upon ultimate settlement. Liabilities associated with uncertain income tax positions are included in Deferred Credits and Other Liabilities in the Consolidated Balance Sheets. 

A reconciliation of the beginning and ending amount of the consolidated liability for unrecognized income tax benefits during the year ended December 31, 2020 and 2019 is shown in the following table.  

 Year Ended December 31,
(Millions of dollars)20202019
Balance at January 1$0.6 $0.7 
Additions for tax positions related to prior years0.1 0.5 
Settlements with taxing authorities(0.3)(0.6)
Balance at December 31$0.4 $0.6 
 
All additions or reductions to the above liability affect the Company’s effective tax rate in the respective period of change.  The Company accounts for any applicable interest and penalties on uncertain tax positions as a component of income tax expense.  Income tax expense for the years ended December 31, 2020, 2019 and 2018 included immaterial amounts of interest and penalties, associated with uncertain tax positions. Of these amounts shown in the table, $0.3 million and $0.5 million represent the amount of unrecognized tax benefits that, if recognized, would impact our effective tax rate.
 
During the next twelve months, the Company does not expect a material change to the liability for uncertain taxes. Although existing liabilities could be reduced by settlement with taxing authorities or lapse due to statute of limitations, the Company believes that the changes in its unrecognized tax benefits due to these events will not have a material impact on the Consolidated Income Statement during 2021. 
Total excess tax benefits for equity compensation recognized in the twelve months ended December 31, 2020, 2019 and 2018 were $2.2 million, $0.1 million, and $2.5 million respectively.
v3.20.4
Incentive Plans
12 Months Ended
Dec. 31, 2020
Share-based Payment Arrangement [Abstract]  
Incentive Plans Incentive Plans
2013 Long-Term Incentive Plan

Effective August 30, 2013, certain of our employees began to participate in the Murphy USA 2013 Long-Term Incentive Plan, which was subsequently amended and restated effective as of February 8, 2017 (the “MUSA 2013 Plan”). The MUSA 2013 Plan authorizes the Executive Compensation Committee of our Board of Directors (“the Committee”) to grant non-qualified or incentive stock options, stock appreciation rights, stock awards (including restricted stock and restricted stock unit awards), dividend equivalent units, cash awards, and performance awards to our employees. No more than 5.5 million shares of common stock may be delivered under the MUSA 2013 Plan and no more than 1 million shares of common stock may be awarded to any one employee, subject to adjustment for changes in capitalization. The maximum cash amount payable pursuant to any “performance-based” award to any participant in any calendar year is $5.0 million.

During the period from August 30, 2013 to December 31, 2020, the Company granted a total of 2,491,559 awards from the MUSA 2013 Plan which leaves 3,008,441 remaining shares to be granted in future years (after consideration of the amendments made to the MUSA 2013 Plan in February 2014 by the Board of Directors).  At present, the Company expects to issue all shares that vest out of existing treasury shares rather than issuing new common shares.

2013 Stock Plan for Non-employee Directors

 Effective August 8, 2013, Murphy USA adopted the 2013 Murphy USA Stock Plan for Non-employee Directors (the “Directors Plan”).  The directors for Murphy USA are compensated with a mixture of cash payments and equity-
based awards.  Awards under the Directors Plan may be in the form of restricted stock, restricted stock units, stock options, or a combination thereof.  An aggregate of 500,000 shares of common stock shall be available for issuance of grants under the Directors Plan.  Since 2013, 133,430 time-based restricted stock units have been granted under the terms of the Directors Plan which leaves 366,570 shares available to be granted in the future. 
Amounts recognized in the financial statements by the Company with respect to all share-based plans are shown in the following table. 
 Years Ended December 31,
(Millions of dollars)202020192018
Compensation charged against income before income tax benefit$14.3 $10.5 $9.2 
Related income tax benefit recognized in income$3.0 $2.2 $1.9 
As of December 31, 2020, there was $18.1 million in compensation costs to be expensed over approximately the next 1.7 years related to unvested share-based compensation arrangements granted by the Company.  Employees who have stock options are required to net settle their options in shares, after applicable statutory withholding taxes are considered, upon each stock option exercise. Therefore, no cash is received upon exercise. Total income tax benefits realized from tax deductions related to stock option exercises under share-based payment arrangements were $0.7 million, $0.1 million, and $2.1 million for the years ended December 31, 2020, 2019, and 2018, respectively.  
Concurrent with its initial quarterly dividend in December 2020, the Company issued dividend equivalent units ("DEU") on all outstanding, unvested equity awards (except stock options) in an amount commensurate with regular quarterly dividends paid on common stock. The terms of the DEU mirror the underlying awards and will only vest if the related award vests. DEU's issued are included with grants in each respective table as applicable.
STOCK OPTIONS – The Committee fixes the option price of each option granted at no less than fair market value (FMV) on the date of the grant and fixes the option term at no more than 7 years from such date.
In February 2020, the Committee granted nonqualified stock options to certain employees of the Company.  
Following are the assumptions used by the Company to value the original awards:

 Years Ended December 31,
 202020192018
Fair value per option grant$28.28 $20.48 $17.32 
Assumptions   
Dividend yield— — — 
Expected volatility28.1 %26.8 %27.0 %
Risk-free interest rate1.5 %2.5 %2.4 %
Expected life (years)4.74.53.9
Stock price at valuation date$106.72 $76.15 $71.00 
Changes in options outstanding for Company employees during the period from December 31, 2019 to December 31, 2020 are presented in the following table:

OptionsNumber of SharesWeighted Average Exercise PriceWeighted Average Remaining Contractual Term (Years)Aggregate Intrinsic Value (Millions of Dollars)
Outstanding at December 31, 2019392,300 68.52 
Granted 79,200 105.57 
Exercised(148,800)64.21 
Outstanding at December 31, 2020322,700 $79.60 4.6$16.5 
Exercisable at December 31, 2020110,700 $66.91 3.3$7.1 

Additional information about stock options outstanding at December 31, 2020 is shown below: 
 Options OutstandingOptions Exercisable
Range of Exercise Prices per OptionNo. of OptionsAvg. Life Remaining in YearsNo. of OptionsAvg. Life Remaining in Years
 $50.00 to $59.99
7,300 2.17,300 2.1
 $60.00 to $69.99
69,500 3.169,500 3.1
 $70.00 to $79.99
166,700 4.633,900 3.9
 $80.00 to $89.99
3,600 6.2— 
$100.00 to $109.99
75,600 6.1— 
 322,700 4.6110,700 3.3
 
RESTRICTED STOCK UNITS (MUSA 2013 Plan) – The Committee has granted time based restricted stock units (RSUs) as part of the compensation plan for its executives and certain other employees since its inception. The awards granted in the current year were under the MUSA 2013 Plan, are valued at the grant date fair value, and vest over three years. 

Changes in restricted stock units outstanding for Company employees during the period from December 31, 2019 to December 31, 2020 are presented in the following table:

Employee RSUsNumber of unitsWeighted Average Grant Date Fair ValueTotal Fair Value (Millions of Dollars)
Outstanding at December 31, 2019198,915 $70.58 
Granted55,734 $90.09 
Vested and issued(59,324)$66.31 $6.4 
Forfeited(12,530)$78.43 
Outstanding at December 31, 2020182,795 $77.38 $23.9 

 
PERFORMANCE-BASED RESTRICTED STOCK UNITS (MUSA 2013 Plan) – In February 2020, the Committee awarded performance-based restricted stock units (performance units) to certain employees.  Half of the performance units vest based on a three-year return on average capital employed (ROACE) calculation and the other half vest based on a three-year total shareholder return (TSR) calculation that compares MUSA to a group of 18 peer companies.  The portion of the awards that vest based on TSR qualify as a market condition and must be valued using a Monte Carlo valuation model.  For the TSR portion of the awards, the fair value was determined to be $142.07 per unit.  For the ROACE portion of the awards, the valuation was based on the grant date fair value of $106.72 per unit and the number of awards will be periodically assessed to determine the probability of vesting. 
Changes in performance-based restricted stock units outstanding for Company employees during the period from December 31, 2019 to December 31, 2020 are presented in the following table:
Employee PSU'sNumber of UnitsWeighted Average Grant Date Fair ValueTotal Fair Value (Millions of Dollars)
Outstanding at December 31, 2019131,200 $82.98 
Granted64,290 $122.95 
Vested and issued(65,745)$85.04 $7.0 
Forfeited(405)$65.75 
Outstanding at December 31, 2020129,340 $97.01 $16.9 


RESTRICTED STOCK UNITS (Directors Plan) – The Committee has also granted time based RSUs to the non-employee directors of the Company as part of their overall compensation package for being a member of the Board of Directors.  These awards typically vest at the end of three years.

Changes in restricted stock units outstanding for Company non-employee directors during the period from December 31, 2019 to December 31, 2020 are presented in the following table:
Director RSU'sNumber of UnitsWeighted Average Grant Date Fair ValueTotal Fair Value (Millions of Dollars)
Outstanding at December 31, 201933,607 $70.68 
Granted 9,801 $105.33 
Vested and issued(12,404)$66.01 $1.3 
Outstanding at December 31, 202031,004 $83.31 $4.1 
v3.20.4
Employee and Retiree Benefit Plans
12 Months Ended
Dec. 31, 2020
Retirement Benefits [Abstract]  
Employee and Retiree Benefit Plans Employee and Retiree Benefit Plans
 
THRIFT PLAN – Most full-time employees of the Company may participate in defined contribution savings plans by contributing up to a specified percentage of their base pay.  The Company matches contributions at 100% of each employee’s contribution with a maximum match of 6%.  In addition, the Company makes profit sharing contributions on an annual basis.  Eligible employees receive a stated percentage of their base and incentive pay of 5%, 7%, or 9% determined on a formula that is based on a combination of age and years of service.  The Company’s combined expenses related to this plan were $15.3 million in 2020, $12.9 million in 2019 and $9.7 million in 2018. 

PROFIT SHARING PLAN – Eligible part-time employees may participate in the Company’s noncontributory profit sharing plan.  Each year, the Company may make a discretionary employer contribution in an amount determined and authorized at the discretion of the Board of Directors.  Eligible employees receive an allocation based on their compensation earned for the year the contribution is allocated.  The Company’s expenses related to this plan were $1.8 million in 2020, $1.5 million in 2019 and $(0.8) million in 2018. 
SUPPLEMENTAL EXECUTIVE RETIREMENT – The Company provides a Supplemental Executive Retirement Plan ('SERP'), a nonqualified deferred compensation plan, to eligible executives and certain members of management. The SERP plan is intended to restore qualified defined contribution plan benefits restricted under the Internal Revenue Code of 1986 to certain highly-compensated individuals. The liability balances, net of associated assets, were $3.7 million and $2.1 million, at December 31, 2020 and 2019, respectfully.
v3.20.4
Financial Instruments and Risk Management
12 Months Ended
Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Financial Instruments and Risk Management Financial Instruments and Risk Management
 
DERIVATIVE INSTRUMENTS — The Company makes limited use of derivative instruments to manage certain risks related to commodity prices and interest rates. The use of derivative instruments for risk management is covered by operating policies and is closely monitored by the Company’s senior management. The Company does not hold any derivatives for speculative purposes and it does not use derivatives with leveraged or complex features. Derivative instruments are traded primarily with creditworthy major financial institutions or over national exchanges such as the New York Mercantile Exchange (“NYMEX”). For accounting purposes, the Company has not designated commodity derivative contracts as hedges, and therefore, it recognizes all gains and losses on these derivative contracts in its Consolidated Statement of Income. Certain interest rate derivative contracts were accounted for as hedges and
gain or loss associated with recording the fair value of these contracts was deferred in AOCI until the anticipated transactions occur. As of December 31, 2020, all current commodity derivative activity is immaterial.
 
At December 31, 2020 and 2019, cash deposits of $0.6 million and $1.0 million, respectively, related to commodity derivative contracts were reported in Prepaid expenses and other current assets in the Consolidated Balance Sheets. These cash deposits have not been used to reduce the reported net liabilities on the derivative contracts at December 31, 2020 and 2019. 

Interest Rate Risks
Under hedge accounting rules, the Company deferred the net impact associated with the interest rate swap entered into to manage the variability in interest payments for the variable-rate debt in association with $150 million of our outstanding term loan dated August 27, 2019. The effective date of the hedge was September 27, 2019, and under the swap the Company pays fixed rate interest and receives one month LIBOR to hedge the floating interest rate of the outstanding debt and the balance reduces each quarter by $7.5 million. The balance of term debt remaining applicable to the hedge was $127.5 million at December 31, 2020. During the year December 31, 2020, $0.9 million of realized loss on interest rate swaps was included in interest expense in the Consolidated Statement of Income. The remaining pre-tax loss deferred on these contracts during December 31, 2020, was $3.4 million, which was recorded, net of an income tax benefit of $0.8 million, in other comprehensive income for the year. During the year ended December 31, 2019, $0.2 million of realized gain on the interest rate swaps was credited to interest expense in the Consolidated Statements of Income. The remaining pre-tax benefit deferred on these contracts at December 31, 2019, was $0.9 million, which is recorded, net of income taxes, of $0.2 million, in AOCI in the Consolidated Balance Sheets.
v3.20.4
Earnings Per Share
12 Months Ended
Dec. 31, 2020
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
 
Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted average of common shares outstanding during the period.  Diluted earnings per common share adjusts basic earnings per common share for the effects of stock options and restricted stock in the periods where such items are dilutive. 
 
 On July 24, 2019, the Board of Directors approved an up to $400 million share repurchase program to be executed over the two-year period ending July 2021, which was completed in November 2020. On October 28, 2020, a new authorization of $500 million was put into place through December 2023. During 2020, the total repurchases were 3,338,028 common shares for $399.6 million,or $119.70 per share. The number repurchased in 2020 under the July 2019 authorization were 2,368,374 common shares for $274.6 million, or $115.93 per share and shares purchased under the October 2020 authorization were 969,654 common shares for $125.0 million, or $128.91 per share, leaving approximately $375.0 million, at December 31, 2020, available until December 2023.

During 2019, the total number of common shares repurchased were 1,898,023 for $165.8 million, or $87.35 per share, of which 1,393,626 common shares were under the July 2019 plan for $125.0 million, or $89.70 per share and other shares purchased were 504,397 common shares for $40.8 million, or $80.85 per share. During 2018 the Company acquired 1,994,632 common shares at an average price of $72.39.
The following table provides a reconciliation of basic and diluted earnings per share computations for the years ended December 31, 2020, 2019 and 2018 (in millions, except per share amounts): 
 Years ended December 31,
(Millions of dollars except per share amounts)202020192018
Earnings per common share:   
Net income per share - basic
Net income attributable to common stockholders$386.1 $154.8 $213.6 
Weighted average common shares outstanding (in thousands)29,132 31,594 32,674 
Earnings per common share$13.25 $4.90 $6.54 
Earnings per common share - assuming dilution:
Net income per share - diluted
Net income attributable to common stockholders$386.1 $154.8 $213.6 
Weighted average common shares outstanding (in thousands)29,132 31,594 32,674 
Common equivalent shares:   
Share-based awards394 264 309 
Weighted average common shares outstanding - assuming dilution (in thousands)29,526 31,858 32,983 
Earnings per common share assuming dilution$13.08 $4.86 $6.48 
 
We have excluded from the earnings-per-share calculation certain stock options and shares that are considered to be anti-dilutive under the treasury stock method and are reported in the table below.

Years ended December 31,
Potentially dilutive shares excluded from the calculation as their inclusion would be anti-dilutive202020192018
Stock options 75,600 94,600 76,400 
Restricted share units20,137 843 121 
Total anti-dilutive shares95,737 95,443 76,521 
v3.20.4
Other Financial Information
12 Months Ended
Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Other Financial Information Other Financial Information
 
CASH FLOW DISCLOSURES — Cash income taxes paid (collected), net of refunds, were $96.5 million, $26.9 million and $17.4 million for the three years ended December 31, 2020, 2019 and 2018, respectively. Interest paid, net of amounts capitalized, was $49.1 million, $56.6 million and $50.4 million for the years ended December 31, 2020, 2019 and 2018, respectively.

CHANGES IN WORKING CAPITAL -
Years ended December 31,
(Millions of dollars)202020192018
Accounts receivable$4.9 $(33.4)$86.6 
Inventories(51.7)(6.1)(39.0)
Prepaid expenses and other current assets16.6 (3.3)11.4 
Accounts payable and accrued liabilities8.3 (5.9)(56.7)
Income taxes payable8.8 — — 
Net decrease (increase) in noncash operating working capital$(13.1)$(48.7)$2.3 
v3.20.4
Assets and Liabilities Measure at Fair Value
12 Months Ended
Dec. 31, 2020
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measure at Fair Value Assets and Liabilities Measured at Fair Value
 
The Company carries certain assets and liabilities at fair value in its Consolidated Balance Sheets. The fair value hierarchy is based on the quality of inputs used to measure fair value, with Level 1 being the highest quality and Level 3 being the lowest quality. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are observable inputs other than quoted prices included within Level 1. Level 3 inputs are unobservable inputs which reflect assumptions about pricing by market participants.
 
At the balance sheet date, the fair value of commodity derivatives contracts was determined using NYMEX quoted values and the value of the Interest rate swap derivative was derived by using level 3 inputs, but the balances for each were immaterial. The carrying value of the Company’s Cash and cash equivalents, Accounts receivable-trade, Trade accounts payable, interest rate swap contracts and accrued liabilities approximates fair value. See also Note 12 "Financial Instruments and Risk Management in these consolidated financial statements for the period ended December 31, 2020, for more information.
 
The following table presents the carrying amounts and estimated fair values of financial instruments held by the Company at December 31, 2020 and 2019. The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties. The table excludes Cash and cash equivalents, Accounts receivable-trade, and Trade accounts payable and accrued liabilities, all of which had fair values approximating carrying amounts. The fair value of Current and Long-term debt was estimated based on rates offered to the Company at that time for debt of the same maturities. The Company has off-balance sheet exposures relating to certain financial guarantees and letters of credit. The fair value of these, which represents fees associated with obtaining the instruments, was nominal.
 
 December 31, 2020December 31, 2019
 Carrying Carrying 
(Millions of dollars)AmountFair ValueAmountFair Value
Financial liabilities    
Current and long-term debt$(1,002.4)$(1,029.9)$(1,038.1)$(1,069.4)
v3.20.4
Commitments
12 Months Ended
Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]  
Commitments Commitments
 
The Company leases land, gasoline stations, and other facilities under operating leases.  During the next five years, expected future rental payments under all operating leases are approximately $16.8 million in 2021, $15.9 million in 2022, $15.4 million in 2023, $14.9 million in 2024, and $14.2 million in 2025.  Rental expense for noncancellable operating leases, including contingent payments when applicable, was $24.9 million in 2020, $21.6 million in 2019 and $15.2 million in 2018. 
 
Commitments for capital expenditures were approximately $286.8 million at December 31, 2020, including $278.3 million approved for potential construction of future Murphy USA and Murphy Express gasoline stations (including land) at year-end, along with $4.1 million for improvements of existing stations, to be financed with our operating cash flow and/or incurrence of indebtedness.
The Company has certain take-or-pay contracts primarily to supply terminals with a noncancellable remaining term of 9.8 years. At December 31, 2020, our minimum annual payments under our take-or-pay contracts are estimated to be $9.1 million in 2021 and $4.0 million in 2022, $4.0 million in 2023, $4.0 million in 2024, and $4.0 million in 2025.
v3.20.4
Contingencies
12 Months Ended
Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]  
Contingencies Contingencies 
 
The Company’s operations and earnings have been and may be affected by various forms of governmental action. Examples of such governmental action include, but are by no means limited to: tax increases and retroactive tax claims; import and export controls; price controls; allocation of supplies of crude oil and petroleum products and other goods; laws and regulations intended for the promotion of safety and the protection and/or remediation of the environment; governmental support for other forms of energy; and laws and regulations affecting the Company’s relationships with employees, suppliers, customers, stockholders and others. Because governmental actions are often motivated by political considerations, may be taken without full consideration of their consequences, and may
be taken in response to actions of other governments, it is not practical to attempt to predict the likelihood of such actions, the form the actions may take or the effect such actions may have on the Company.
 
ENVIRONMENTAL MATTERS AND LEGAL MATTERS — Murphy USA is subject to numerous federal, state and local laws and regulations dealing with the environment. Violation of such environmental laws, regulations and permits can result in the imposition of significant civil and criminal penalties, injunctions and other sanctions. A discharge of hazardous substances into the environment could, to the extent such event is not insured, subject the
Company to substantial expense, including both the cost to comply with applicable regulations and claims by neighboring landowners and other third parties for any personal injury, property damage and other losses that might result.
 
The Company currently owns or leases, and has in the past owned or leased, properties at which hazardous substances have been or are being handled. Although the Company believes it has used operating and disposal practices that were standard in the industry at the time, hazardous substances may have been disposed of or released on or under the properties owned or leased by the Company or on or under other locations where they have been taken for disposal. In addition, many of these properties have been operated by third parties whose management of hazardous substances was not under the Company’s control. Under existing laws, the Company could be required to remediate contaminated property (including contaminated groundwater) or to perform remedial actions to prevent future contamination. Certain of these contaminated properties are in various stages of negotiation, investigation, and/or cleanup, and the Company is investigating the extent of any related liability and the availability of applicable defenses. With the sale of the U.S. refineries in 2011, Murphy Oil retained certain liabilities related to environmental matters. Murphy Oil also obtained insurance covering certain levels of environmental exposures. With respect to the previously owned refinery properties, Murphy Oil retained those liabilities in the Separation and Distribution agreement that was entered into related to the separation on August 30, 2013.  With respect to any remaining potential liabilities, the Company believes costs related to these sites will not have a material adverse effect on Murphy USA’s net income, financial position or liquidity in a future period.
 
Certain environmental expenditures are likely to be recovered by the Company from other sources, primarily environmental funds maintained by certain states. Since no assurance can be given that future recoveries from other sources will occur, the Company has not recorded a benefit for likely recoveries at December 31, 2020, however certain jurisdictions provide reimbursement for these expenses which have been considered in recording the net exposure. The U.S. Environmental Protection Agency (EPA) currently considers the Company a Potentially Responsible Party (PRP) at one Superfund site.  As to the site, the potential total cost to all parties to perform necessary remedial work at this site may be substantial. However, based on current negotiations and available information, the Company believes that it is a de minimis party as to ultimate responsibility at the Superfund site. Accordingly, the Company has not recorded a liability for remedial costs at the Superfund site at December 31, 2020. The Company could be required to bear a pro rata share of costs attributable to nonparticipating PRPs or could be assigned additional responsibility for remediation at this site or other Superfund sites. The Company believes that its share of the ultimate costs to clean-up this site will be immaterial and will not have a material adverse effect on its net income, financial position or liquidity in a future period.

Based on information currently available to the Company, the amount of future remediation costs to be incurred to address known contamination sites is not expected to have a material adverse effect on the Company’s future net income, cash flows or liquidity. However, there is the possibility that additional environmental expenditures could be required to address contamination, including as a result of discovering additional contamination or the imposition of new or revised requirements applicable to known contamination.
  
Murphy USA is engaged in a number of other legal proceedings, all of which the Company considers routine and incidental to its business. Based on information currently available to the Company, the ultimate resolution of those other legal matters is not expected to have a material adverse effect on the Company’s net income, financial condition or liquidity in a future period.

INSURANCE — The Company maintains insurance coverage at levels that are customary and consistent with industry standards for companies of similar size. Murphy USA maintains statutory workers compensation insurance with a deductible of $1.0 million per occurrence, general liability insurance with a deductible of $3.0 million per occurrence, and auto liability insurance with a deductible of $0.3 million per occurrence. As of December 31, 2020, there were a number of outstanding claims that are of a routine nature. The estimated incurred but unpaid liabilities relating to these claims are included in Trade account payables and accrued liabilities on the Consolidated Balance Sheets. While the ultimate outcome of these claims cannot presently be determined, management believes that the
accrued liability of $27.8 million will be sufficient to cover the related liability and that the ultimate disposition of these claims will have no material effect on the Company’s financial position and results of operations.

The Company has obtained insurance coverage as appropriate for the business in which it is engaged, but may incur losses that are not covered by insurance or reserves, in whole or in part, and such losses could adversely affect our results of operations and financial position.
 
TAX MATTERS — Murphy USA is subject to extensive tax liabilities imposed by multiple jurisdictions, including income taxes, indirect taxes (excise/duty, sales/use and gross receipts taxes), payroll taxes, franchise taxes, withholding taxes and ad valorem taxes. New tax laws and regulations and changes in existing tax laws and regulations are continuously being enacted or proposed that could result in increased expenditures for tax liabilities in the future. Many of these liabilities are subject to periodic audits by the respective taxing authority. Subsequent changes to our tax liabilities because of these audits may subject us to interest and penalties.
 
OTHER MATTERS — In the normal course of its business, the Company is required under certain contracts with various governmental authorities and others to provide financial guarantees or letters of credit that may be drawn upon if the Company fails to perform under those contracts. At December 31, 2020, the Company had contingent liabilities of $13.0 million on outstanding letters of credit. The Company has not accrued a liability in its balance sheet related to these financial guarantees and letters of credit because it is believed that the likelihood of having these drawn is remote.
v3.20.4
Leases
12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Leases Leases
The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. The Company's leases have remaining lease terms of approximately 1 year to 20 years, which may include the option to extend the lease when it is reasonably certain the Company will exercise the option. Most leases include one or more options to renew, with renewal terms that can extend the lease term from 5 to 20 years or more. The exercise of lease renewal options is at the Company's sole discretion. Due to the uncertainties of future markets, economic factors, technology changes, demographic shifts and behavior, environmental regulatory requirements and other information that impacts decisions as to station location, management has determined that it was not reasonably certain to exercise contract options and they are not included in the lease term. Additionally, short-term leases and leases with variable lease costs are immaterial. The Company reviews all options to extend, terminate, or otherwise modify its lease agreements to determine if changes are required to the right of use assets and liabilities.

As the implicit interest rate is not readily determinable in most of the Company's lease agreements, the Company uses its estimated secured incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

Lessor — We have various arrangements for certain spaces for food service and vending equipment under which we are the lessor. These leases meet the criteria for operating lease classification. Lease income associated with these leases is immaterial.
Lessee —We lease land for 232 stations, one terminal, and various equipment. Our lease agreements do not contain any material residual value guarantees and approximately 102 sites leased from Walmart contain restrictive covenants, though the restrictions are deemed to have an immaterial impact.

Leases are reflected in the following balance sheet accounts:
(Millions of dollars)ClassificationDecember 31,
2020
December 31,
2019
Assets
Operating (Right-of-use)Other Assets$147.7 $124.2 
Finance
Property, plant, and equipment, at cost, less accumulated depreciation of $2.8 in 2020 and $2.2 in 2019
2.6 3.0 
Total leased assets$150.3 $127.2 
(Millions of dollars)ClassificationDecember 31,
2020
December 31,
2019
Liabilities
Current
     OperatingTrade accounts payable and accrued liabilities$7.8 $6.8 
     FinanceCurrent maturities of long-term debt 1.2 1.2 
Noncurrent
     OperatingDeferred credits and other liabilities142.5 118.5 
     FinanceLong-term debt, including capitalized lease obligations0.9 1.2 
Total lease liabilities$152.4 $127.7 

Lease Cost:
Year Ended December 31,
(Millions of dollars)Classification20202019
Operating lease costStation and other operating expenses$16.6 $14.5 
Finance lease cost
   Amortization of leased assetsDepreciation & amortization expense1.3 1.2 
   Interest on lease liabilitiesInterest expense0.1 0.1 
Net lease costs$18.0 $15.8 


Cash flow information:
Year Ended December 31,
(Millions of dollars)20202019
Cash paid for amounts included in the measurement of liabilities
   Operating cash flows required by operating leases$15.5 $13.8 
   Operating cash flows required by finance leases$0.1 $0.1 
   Financing cash flows required by finance leases$1.4 $1.4 


Maturity of Lease Liabilities:
(Millions of dollars)Operating leasesFinance leases
2021$16.8 $1.2 
202215.9 0.7 
202315.4 0.3 
202414.9 — 
202514.2 — 
After 2025166.9 — 
Total lease payments244.1 2.2 
 less: interest93.8 0.1 
Present value of lease liabilities$150.3 $2.1 
Lease Term and Discount Rate:
Year Ended December 31,
2020
Weighted average remaining lease term (years)
   Finance leases2.0
   Operating leases15.7
Weighted average discount rate
    Finance leases4.2 %
   Operating leases5.7 %
Leases Leases
The Company determines if an arrangement is a lease or contains a lease at inception. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. The Company's leases have remaining lease terms of approximately 1 year to 20 years, which may include the option to extend the lease when it is reasonably certain the Company will exercise the option. Most leases include one or more options to renew, with renewal terms that can extend the lease term from 5 to 20 years or more. The exercise of lease renewal options is at the Company's sole discretion. Due to the uncertainties of future markets, economic factors, technology changes, demographic shifts and behavior, environmental regulatory requirements and other information that impacts decisions as to station location, management has determined that it was not reasonably certain to exercise contract options and they are not included in the lease term. Additionally, short-term leases and leases with variable lease costs are immaterial. The Company reviews all options to extend, terminate, or otherwise modify its lease agreements to determine if changes are required to the right of use assets and liabilities.

As the implicit interest rate is not readily determinable in most of the Company's lease agreements, the Company uses its estimated secured incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

Lessor — We have various arrangements for certain spaces for food service and vending equipment under which we are the lessor. These leases meet the criteria for operating lease classification. Lease income associated with these leases is immaterial.
Lessee —We lease land for 232 stations, one terminal, and various equipment. Our lease agreements do not contain any material residual value guarantees and approximately 102 sites leased from Walmart contain restrictive covenants, though the restrictions are deemed to have an immaterial impact.

Leases are reflected in the following balance sheet accounts:
(Millions of dollars)ClassificationDecember 31,
2020
December 31,
2019
Assets
Operating (Right-of-use)Other Assets$147.7 $124.2 
Finance
Property, plant, and equipment, at cost, less accumulated depreciation of $2.8 in 2020 and $2.2 in 2019
2.6 3.0 
Total leased assets$150.3 $127.2 
(Millions of dollars)ClassificationDecember 31,
2020
December 31,
2019
Liabilities
Current
     OperatingTrade accounts payable and accrued liabilities$7.8 $6.8 
     FinanceCurrent maturities of long-term debt 1.2 1.2 
Noncurrent
     OperatingDeferred credits and other liabilities142.5 118.5 
     FinanceLong-term debt, including capitalized lease obligations0.9 1.2 
Total lease liabilities$152.4 $127.7 

Lease Cost:
Year Ended December 31,
(Millions of dollars)Classification20202019
Operating lease costStation and other operating expenses$16.6 $14.5 
Finance lease cost
   Amortization of leased assetsDepreciation & amortization expense1.3 1.2 
   Interest on lease liabilitiesInterest expense0.1 0.1 
Net lease costs$18.0 $15.8 


Cash flow information:
Year Ended December 31,
(Millions of dollars)20202019
Cash paid for amounts included in the measurement of liabilities
   Operating cash flows required by operating leases$15.5 $13.8 
   Operating cash flows required by finance leases$0.1 $0.1 
   Financing cash flows required by finance leases$1.4 $1.4 


Maturity of Lease Liabilities:
(Millions of dollars)Operating leasesFinance leases
2021$16.8 $1.2 
202215.9 0.7 
202315.4 0.3 
202414.9 — 
202514.2 — 
After 2025166.9 — 
Total lease payments244.1 2.2 
 less: interest93.8 0.1 
Present value of lease liabilities$150.3 $2.1 
Lease Term and Discount Rate:
Year Ended December 31,
2020
Weighted average remaining lease term (years)
   Finance leases2.0
   Operating leases15.7
Weighted average discount rate
    Finance leases4.2 %
   Operating leases5.7 %
v3.20.4
Recent Accounting and Reporting Rules
12 Months Ended
Dec. 31, 2020
Accounting Standards Update and Change in Accounting Principle [Abstract]  
Recent Accounting and Reporting Rules Recent Accounting and Reporting Rules
In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." ASU 2016-13 was subsequently modified by ASU 2018-19, ASU 2019-04, ASU 2019-05, and ASU 2019-11. This ASU changed the way entities recognize impairment of many financial assets by requiring immediate recognition of estimated credit losses expected to occur over their remaining life, which will result in timelier recognition of losses. ASU 2016-13 and the associated modifications was effective for the Company on January 1, 2020 and required a modified retrospective approach with an adjustment at the beginning of year for any adjustment due to its adoption. In applying ASC 326 at January 1, 2020, the Company calculated an adjustment to its estimated credit loss allowance and lowered the allowance by $1.1 million, which was credited to retained earnings under the modified retrospective approach. The adjustment reflects the Company's changes in credit practices since its spin-of in 2013 which includes tighter applied credit terms and faster turnover of receivables resulting in a decrease to its estimated credit loss allowance as of January 1, 2020.

In August 2018, the FASB issued ASU 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract". This ASU aligns the accounting treatment for capitalizing implementation costs incurred by customers in cloud computing arrangements in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This guidance was effective for the Company on January 1, 2020. The amendments in this update were applied prospectively to all implementation costs incurred after the date of adoption. The Company assessed the effect that this ASU had on our financial position, results of operations, and disclosures and determined that this update did not have a material impact on the Company's consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, "Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement". This ASU eliminated, amended, and added disclosure requirements for fair value measurements in Topic 820, including disclosing the changes in unrealized gains and losses for the period included in other comprehensive income for level 3 measurements. This guidance was effective for the Company on January 1, 2020. The Company assessed the effect that this ASU had on our financial position, results of operations, and disclosures and determined that this update did not have a material impact on the Company's consolidated financial statements. See Note 12 "Financial Instruments and Risk Management" for additional information.

In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes," which removes certain exceptions for: recognizing deferred taxes on investments, performing intraperiod allocation and calculating income taxes for interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. This ASU is effective for the Company for the year beginning January 1, 2021, and early adoption is permitted. The Company has assessed the effect that this ASU will have on our financial position, results of operations, and disclosures and has concluded that this update will not have a material impact on the Company's consolidated financial statements.
In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting". This standard included option guidance for a limited period of time to help ease the burden in accounting for the effects of reference rate reform. The new standard applies for all entities through December 31, 2022. The Company has determined this standard has not had a material impact on the Company's consolidated financial statements.
v3.20.4
Business Segments
12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Business Segments Business Segments
Our operations include the sale of retail motor fuel products and convenience merchandise along with the wholesale and bulk sale capabilities of our product supply and wholesale group. As the primary purpose of the product supply and wholesale group is to support our retail operations and provide fuel for their daily operation, the bulk and wholesale fuel sales are secondary to the support functions played by these groups. As such, they are all treated as one segment for reporting purposes as they sell the same products. This Marketing segment contains essentially all of the revenue generating activities of the Company. Results not included in the reportable segment include Corporate and Other Assets. The reportable segment was determined based on information reviewed by the Chief Operating Decision Maker.

Segment Information Corporate and Other Assets 
(Millions of dollars)MarketingConsolidated
Year ended December 31, 2020   
Segment income (loss)$442.2 $(56.1)$386.1 
Revenues from external customers$11,264.0 $0.3 $11,264.3 
Interest income$— $1.0 $1.0 
Interest expense$(0.1)$(51.1)$(51.2)
Loss on early debt extinguishment$— $— $— 
Income tax expense (benefit)$132.9 $(9.9)$123.0 
Significant noncash charges (credits)  
Depreciation and amortization$146.3 $14.7 $161.0 
Accretion of asset retirement obligations$2.3 $— $2.3 
Debt extinguishment costs$— $— $— 
Deferred and noncurrent income taxes (benefits)$2.8 $(0.3)$2.5 
Additions to property, plant and equipment$200.8 $26.3 $227.1 
Total assets at year-end$2,418.2 $267.5 $2,685.7 

Segment Information Corporate and Other Assets 
(Millions of dollars)MarketingConsolidated
Year ended December 31, 2019   
Segment income (loss)$215.0 $(60.2)$154.8 
Revenues from external customers$14,034.3 $0.3 $14,034.6 
Interest income$— $3.2 $3.2 
Interest expense$(0.1)$(54.8)$(54.9)
Loss on early debt extinguishment$—