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SEC Filings
S-4
SUSSER HOLDINGS CORP filed this Form S-4 on 07/22/2016
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Table of Contents
Index to Financial Statements

PHILADELPHIA ENERGY SOLUTIONS LLC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(in thousands, except unit and volume data)

 

The liabilities contributed by Sunoco on September 8, 2012 included two fixed commitment long-term barge agreements that expire in December 2016 and October 2017. The out of market contracts are amortized over the terms of the barge contracts. The amortization is recorded as a reduction of cost of sales in the statements of operations and comprehensive income (loss). Amortization expense is expected to be $2,585 in 2016 and $980 in 2017.

10. DEFINED CONTRIBUTION PLANS

The Company has two defined contribution plans that provide retirement benefits for all of its employees. Full- time employees are eligible to participate in the plans. The Company’s 401(k) plan provides a matching contribution of 100% of the first 5% of eligible wages contributed by the employee. The Company’s defined contribution cash option plan provides for a 7% contribution of eligible wages to the plan. Contributions are charged to expense as incurred and totaled $12,215, $11,292 and $10,215 for the years ended December 31, 2015, 2014, and 2013, respectively.

11. COMMITMENTS AND CONTINGENCIES

Leases and Other Commitments

Refining has operating leases for marine transportation vessels, tank cars, office space, pipeline, catalyst, equipment, and terminals. Rental expense for such leases was $50,987, $41,890 and $51,349 for the years ended December 31, 2015, 2014, and 2013, respectively,

The minimum future rental commitments under noncancelable operating leases as of December 31, 2015 are as follows:

 

Year ending December 31:

  

2016

     46,318   

2017

     40,982   

2018

     36,729   

2019

     35,212   

2020

     25,970   

Thereafter

     29,766   
  

 

 

 

Total

   $ 214,977   
  

 

 

 

For the years ended December 31, 2015, 2014, and 2013, the Company incurred $52,224, $48,786 and $57,684, respectively, of executory costs in relation to various leases.

At December 31, 2015, Refining had entered into commitments under the intermediation agreement with MLC to purchase 22.0 million barrels of crude oil of which 6.6 million were either on-hand or in-transit and 15.4 million barrels had not been delivered to MLC. Based on pricing at December 31, 2015, the value of the barrels on-hand or in transit was $216,622, which is recorded in the balance sheet in accrued liabilities, and the value of the purchase commitments was $535,484. If Refining does not renew the intermediation agreement with MLC when it expires or enter into another intermediation agreement, Refining will need to acquire crude and noncrude feedstocks in the open market to maintain normal refining operations.

At December 31, 2015, Refining was obligated to redeliver 3.3 million barrels of refined products under the intermediation agreement with MLC. A liability with a value of $159,986 has been recorded as a component of accrued liabilities on the consolidated balance sheets as of December 31, 2015.

 

F-54

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