2022 Q2 Form 10-Q Financial Statement

#000157351622000035 Filed on July 28, 2022

View on sec.gov

Income Statement

Concept 2022 Q2 2022 Q1 2021 Q4
Revenue $6.767B $5.118B $4.767B
YoY Change 51.86% 44.71% 66.63%
Cost Of Revenue $6.146B $4.573B $4.277B
YoY Change 55.43% 44.66% 68.11%
Gross Profit $621.0M $545.9M $490.0M
YoY Change 23.73% 45.11% 54.72%
Gross Profit Margin 9.18% 10.67% 10.28%
Selling, General & Admin $52.20M $46.20M $65.30M
YoY Change 7.63% 4.29% 44.15%
% of Gross Profit 8.41% 8.46% 13.33%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $54.70M $55.40M $55.10M
YoY Change 2.63% 8.63% 32.77%
% of Gross Profit 8.81% 10.15% 11.24%
Operating Expenses $52.20M $46.20M $329.5M
YoY Change -98.78% -98.66% 48.09%
Operating Profit $262.3M $220.7M $160.5M
YoY Change 37.91% 133.3% 70.38%
Interest Expense $20.20M $19.60M -$20.20M
YoY Change -0.98% -7.98% 61.6%
% of Operating Profit 7.7% 8.88% -12.59%
Other Income/Expense, Net -$21.00M -$20.30M $200.0K
YoY Change 3.96% -4.69% -75.0%
Pretax Income $241.3M $200.4M $140.9M
YoY Change 41.94% 173.4% 74.6%
Income Tax $58.00M $48.00M $32.10M
% Of Pretax Income 24.04% 23.95% 22.78%
Net Earnings $183.3M $152.4M $108.8M
YoY Change 42.31% 175.59% 78.36%
Net Earnings / Revenue 2.71% 2.98% 2.28%
Basic Earnings Per Share $7.65 $6.18
Diluted Earnings Per Share $7.53 $6.08 $4.222M
COMMON SHARES
Basic Shares Outstanding 23.95M shares 24.66M shares
Diluted Shares Outstanding 24.34M shares 25.07M shares

Balance Sheet

Concept 2022 Q2 2022 Q1 2021 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $240.4M $356.2M $256.4M
YoY Change 45.7% 17.13% 56.72%
Cash & Equivalents $240.4M $356.2M $256.4M
Short-Term Investments $0.00
Other Short-Term Assets $31.10M $28.30M $23.40M
YoY Change 11.87% 16.94% 70.8%
Inventory $314.0M $265.9M $292.3M
Prepaid Expenses $31.10M $28.30M $23.40M
Receivables $296.8M $260.4M $195.7M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $882.3M $910.8M $767.8M
YoY Change 15.38% 14.8% 22.81%
LONG-TERM ASSETS
Property, Plant & Equipment $2.853B $2.812B $2.798B
YoY Change 4.2% 4.27% 38.82%
Goodwill $328.0M $328.0M $328.0M
YoY Change -0.33% -2.5%
Intangibles $140.5M $140.6M $140.7M
YoY Change -0.5% -0.5% 306.65%
Long-Term Investments
YoY Change
Other Assets $13.70M $14.70M $14.10M
YoY Change 6.2% 17.6% 33.02%
Total Long-Term Assets $3.336B $3.295B $3.280B
YoY Change 3.54% 3.39% 59.2%
TOTAL ASSETS
Total Short-Term Assets $882.3M $910.8M $767.8M
Total Long-Term Assets $3.336B $3.295B $3.280B
Total Assets $4.218B $4.206B $4.048B
YoY Change 5.81% 5.67% 50.73%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $817.8M $772.4M $392.5M
YoY Change 25.18% 24.3% 50.38%
Accrued Expenses $19.00M $18.40M $267.8M
YoY Change 12.43% 8.24% 27.46%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $14.90M $14.90M $15.00M
YoY Change 4.93% 12.88% -70.7%
Total Short-Term Liabilities $852.7M $840.8M $675.3M
YoY Change 22.44% 24.56% 27.15%
LONG-TERM LIABILITIES
Long-Term Debt $1.796B $1.797B $1.800B
YoY Change 0.06% 0.03% 89.25%
Other Long-Term Liabilities $475.3M $450.8M $448.1M
YoY Change 12.87% 7.59% 152.31%
Total Long-Term Liabilities $2.271B $2.248B $2.248B
YoY Change 2.5% 1.46% 99.17%
TOTAL LIABILITIES
Total Short-Term Liabilities $852.7M $840.8M $675.3M
Total Long-Term Liabilities $2.271B $2.248B $2.248B
Total Liabilities $3.455B $3.415B $3.241B
YoY Change 7.03% 6.71% 70.44%
SHAREHOLDERS EQUITY
Retained Earnings $2.433B $2.258B $2.112B
YoY Change 27.16% 26.02% 21.19%
Common Stock $500.0K $500.0K $500.0K
YoY Change 0.0% 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost) $2.183B $1.982B $1.839B
YoY Change 29.72% 29.11% 23.37%
Treasury Stock Shares 23.42M shares 22.57M shares 21.83M shares
Shareholders Equity $762.7M $791.5M $807.2M
YoY Change
Total Liabilities & Shareholders Equity $4.218B $4.206B $4.048B
YoY Change 5.81% 5.67% 50.73%

Cashflow Statement

Concept 2022 Q2 2022 Q1 2021 Q4
OPERATING ACTIVITIES
Net Income $183.3M $152.4M $108.8M
YoY Change 42.31% 175.59% 78.36%
Depreciation, Depletion And Amortization $54.70M $55.40M $55.10M
YoY Change 2.63% 8.63% 32.77%
Cash From Operating Activities $177.3M $339.2M $150.4M
YoY Change 75.54% 47.61% 56.83%
INVESTING ACTIVITIES
Capital Expenditures -$80.90M -$64.00M -$63.10M
YoY Change -2.76% 19.4% 2.94%
Acquisitions $0.00
YoY Change -100.0%
Other Investing Activities $7.900M $400.0K $2.600M
YoY Change 558.33% -55.56% 766.67%
Cash From Investing Activities -$73.00M -$64.40M -$60.50M
YoY Change -10.98% -90.75% -0.82%
FINANCING ACTIVITIES
Cash Dividend Paid $7.200M
YoY Change 5.88%
Common Stock Issuance & Retirement, Net $151.8M
YoY Change 203.6%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -220.1M -$175.0M -134.8M
YoY Change 39.22% -128.83% -28.6%
NET CHANGE
Cash From Operating Activities 177.3M $339.2M 150.4M
Cash From Investing Activities -73.00M -$64.40M -60.50M
Cash From Financing Activities -220.1M -$175.0M -134.8M
Net Change In Cash -115.8M $99.80M -44.90M
YoY Change -16.75% -28.97% -70.83%
FREE CASH FLOW
Cash From Operating Activities $177.3M $339.2M $150.4M
Capital Expenditures -$80.90M -$64.00M -$63.10M
Free Cash Flow $258.2M $403.2M $213.5M
YoY Change 40.17% 42.27% 35.81%

Facts In Submission

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CY2022Q2 musa Indefinite Lived Intangible Assets Excluding Goodwill And Liabilities
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CY2021Q4 musa Indefinite Lived Intangible Assets Excluding Goodwill And Liabilities
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CY2022Q2 us-gaap Long Term Debt And Capital Lease Obligations Current
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CY2022Q2 musa Debt Instrument Covenant Compliance Fixed Charge Coverage Ratio
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CY2022Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Exercise Price
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us-gaap Asset Retirement Obligation Liabilities Settled
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CY2022Q2 us-gaap Asset Retirement Obligation
AssetRetirementObligation
40100000 usd
CY2021Q4 us-gaap Asset Retirement Obligation
AssetRetirementObligation
39200000 usd
CY2022Q2 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.240
CY2021Q2 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.242
us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.240
us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.243
us-gaap Effective Income Tax Rate Reconciliation Share Based Compensation Excess Tax Benefit Amount
EffectiveIncomeTaxRateReconciliationShareBasedCompensationExcessTaxBenefitAmount
-2000000 usd
us-gaap Income Tax Reconciliation Other Adjustments
IncomeTaxReconciliationOtherAdjustments
400000 usd
us-gaap Effective Income Tax Rate Reconciliation Share Based Compensation Excess Tax Benefit Amount
EffectiveIncomeTaxRateReconciliationShareBasedCompensationExcessTaxBenefitAmount
-1100000 usd
us-gaap Income Tax Reconciliation Other Adjustments
IncomeTaxReconciliationOtherAdjustments
400000 usd
CY2021Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
366100 shares
CY2021Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
90.44
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
55150 shares
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
181.80
us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
73900 shares
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice
68.22
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod
9100 shares
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Forfeitures In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice
119.43
CY2022Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
338250 shares
CY2022Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
109.41
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
P4Y6M
CY2022Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue
41800000 usd
CY2022Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
174750 shares
CY2022Q2 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Intrinsic Value1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1
26700000 usd
us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
7000000 usd
us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
7400000 usd
us-gaap Employee Service Share Based Compensation Tax Benefit From Exercise Of Stock Options
EmployeeServiceShareBasedCompensationTaxBenefitFromExerciseOfStockOptions
500000 usd
us-gaap Employee Service Share Based Compensation Tax Benefit From Exercise Of Stock Options
EmployeeServiceShareBasedCompensationTaxBenefitFromExerciseOfStockOptions
100000 usd
CY2022Q2 us-gaap Derivative Collateral Right To Reclaim Cash
DerivativeCollateralRightToReclaimCash
1600000 usd
CY2021Q4 us-gaap Derivative Collateral Right To Reclaim Cash
DerivativeCollateralRightToReclaimCash
600000 usd
us-gaap Treasury Stock Shares Acquired
TreasuryStockSharesAcquired
1716166 shares
us-gaap Treasury Stock Acquired Average Cost Per Share
TreasuryStockAcquiredAverageCostPerShare
207.10
us-gaap Treasury Stock Shares Acquired
TreasuryStockSharesAcquired
1483758 shares
us-gaap Treasury Stock Acquired Average Cost Per Share
TreasuryStockAcquiredAverageCostPerShare
133.65
CY2022Q2 us-gaap Net Income Loss
NetIncomeLoss
183300000 usd
CY2021Q2 us-gaap Net Income Loss
NetIncomeLoss
128800000 usd
us-gaap Net Income Loss
NetIncomeLoss
335700000 usd
us-gaap Net Income Loss
NetIncomeLoss
184100000 usd
CY2022Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
23952000 shares
CY2021Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
26579000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
24302000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
27002000 shares
CY2022Q2 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
7.65
CY2021Q2 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
4.85
us-gaap Earnings Per Share Basic
EarningsPerShareBasic
13.81
us-gaap Earnings Per Share Basic
EarningsPerShareBasic
6.82
CY2022Q2 us-gaap Net Income Loss
NetIncomeLoss
183300000 usd
CY2021Q2 us-gaap Net Income Loss
NetIncomeLoss
128800000 usd
us-gaap Net Income Loss
NetIncomeLoss
335700000 usd
us-gaap Net Income Loss
NetIncomeLoss
184100000 usd
CY2022Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
23952000 shares
CY2021Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
26579000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
24302000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
27002000 shares
CY2022Q2 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
389000 shares
CY2021Q2 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
338000 shares
us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
406000 shares
us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
349000 shares
CY2022Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
24341000 shares
CY2021Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
26917000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
24708000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
27351000 shares
CY2022Q2 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
7.53
CY2021Q2 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
4.79
us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
13.59
us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
6.73
CY2022Q2 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
20293 shares
CY2021Q2 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
106228 shares
us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
72193 shares
us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
106228 shares
us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
87400000 usd
us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
44600000 usd
us-gaap Interest Paid Net
InterestPaidNet
39500000 usd
us-gaap Interest Paid Net
InterestPaidNet
31400000 usd
us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
99900000 usd
us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
83400000 usd
us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
21800000 usd
us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
8300000 usd
us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
7400000 usd
us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
8100000 usd
us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
175900000 usd
us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
114100000 usd
us-gaap Increase Decrease In Income Taxes Payable Net Of Income Taxes Receivable
IncreaseDecreaseInIncomeTaxesPayableNetOfIncomeTaxesReceivable
1000000.0 usd
us-gaap Increase Decrease In Income Taxes Payable Net Of Income Taxes Receivable
IncreaseDecreaseInIncomeTaxesPayableNetOfIncomeTaxesReceivable
3000000.0 usd
us-gaap Increase Decrease In Operating Capital
IncreaseDecreaseInOperatingCapital
-47800000 usd
us-gaap Increase Decrease In Operating Capital
IncreaseDecreaseInOperatingCapital
-17300000 usd
musa Lessee Operating Lease Number Of Contracts With Restrictive Covenants
LesseeOperatingLeaseNumberOfContractsWithRestrictiveCovenants
102 store
us-gaap Loss Contingency Disclosures
LossContingencyDisclosures
Contingencies <div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> </span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">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 </span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">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.</span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> </span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">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.</span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> </span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">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 any remaining potential liabilities, the Company believes costs related to these properties will not have a material adverse effect on Murphy USA’s net income, financial condition or liquidity in a future period.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">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 June 30, 2022, 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 June 30, 2022. 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 condition or liquidity in a future period.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">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.</span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> </span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Murphy USA is engaged in a number of other legal proceedings, all of which the Company considers routine and incidental to its business. Currently, the City of Charleston, South Carolina and the state of Delaware have filed lawsuits against energy companies, including the Company. These lawsuits allege damages as a result of climate change and the plaintiffs are seeking unspecified damages and abatement under various tort theories. At this early stage, the ultimate outcome of these matters remain uncertain, and neither the likelihood of an unfavorable outcome nor the ultimate liability, if any, can be determined. 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.</span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">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 self-insured retention of $3.0 million per occurrence, and auto liability insurance with a deductible of $0.3 million per occurrence. As of June 30, 2022, 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 $42.8 million will be sufficient to cover the related liability for all insurance claims and that the ultimate disposition of these claims will have no material effect on the Company’s financial position and results of operations.</span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> </span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">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.</span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> </span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">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.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">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 June 30, 2022, the Company had contingent liabilities of $9.8 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.</span></div>
musa Number Of Superfund Sites For Which Company May Be Liable
NumberOfSuperfundSitesForWhichCompanyMayBeLiable
1 superfund_site
musa Workers Compensation Insurance Deductible
WorkersCompensationInsuranceDeductible
1000000 usd
musa General Liability Insurance Deductible
GeneralLiabilityInsuranceDeductible
3000000 usd
musa Auto Liability Insurance Deductible
AutoLiabilityInsuranceDeductible
300000 usd
CY2022Q2 us-gaap Workers Compensation Liability Current And Noncurrent
WorkersCompensationLiabilityCurrentAndNoncurrent
42800000 usd
CY2022Q2 us-gaap Letters Of Credit Outstanding Amount
LettersOfCreditOutstandingAmount
9800000 usd
CY2022Q2 musa Lease Number Of Renewal Options
LeaseNumberOfRenewalOptions
1 extension_option
CY2022Q2 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
443700000 usd
CY2021Q4 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
419200000 usd
CY2022Q2 us-gaap Finance Lease Right Of Use Asset Accumulated Amortization
FinanceLeaseRightOfUseAssetAccumulatedAmortization
24200000 usd
CY2021Q4 us-gaap Finance Lease Right Of Use Asset Accumulated Amortization
FinanceLeaseRightOfUseAssetAccumulatedAmortization
16700000 usd
CY2022Q2 us-gaap Finance Lease Right Of Use Asset
FinanceLeaseRightOfUseAsset
130400000 usd
CY2021Q4 us-gaap Finance Lease Right Of Use Asset
FinanceLeaseRightOfUseAsset
137300000 usd
CY2022Q2 musa Lease Rightof Use Asset
LeaseRightofUseAsset
574100000 usd
CY2021Q4 musa Lease Rightof Use Asset
LeaseRightofUseAsset
556500000 usd
CY2022Q2 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
19000000.0 usd
CY2021Q4 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
18100000 usd
CY2022Q2 us-gaap Finance Lease Liability Current
FinanceLeaseLiabilityCurrent
11000000.0 usd
CY2021Q4 us-gaap Finance Lease Liability Current
FinanceLeaseLiabilityCurrent
11000000.0 usd
CY2022Q2 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
435200000 usd
CY2021Q4 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
408900000 usd
CY2022Q2 us-gaap Finance Lease Liability Noncurrent
FinanceLeaseLiabilityNoncurrent
126100000 usd
CY2021Q4 us-gaap Finance Lease Liability Noncurrent
FinanceLeaseLiabilityNoncurrent
130600000 usd
CY2022Q2 musa Lease Liability
LeaseLiability
591300000 usd
CY2021Q4 musa Lease Liability
LeaseLiability
568600000 usd
CY2022Q2 us-gaap Operating Lease Cost
OperatingLeaseCost
12500000 usd
CY2021Q2 us-gaap Operating Lease Cost
OperatingLeaseCost
10900000 usd
us-gaap Operating Lease Cost
OperatingLeaseCost
24500000 usd
us-gaap Operating Lease Cost
OperatingLeaseCost
19800000 usd
CY2022Q2 us-gaap Finance Lease Right Of Use Asset Amortization
FinanceLeaseRightOfUseAssetAmortization
3900000 usd
CY2021Q2 us-gaap Finance Lease Right Of Use Asset Amortization
FinanceLeaseRightOfUseAssetAmortization
3800000 usd
us-gaap Finance Lease Right Of Use Asset Amortization
FinanceLeaseRightOfUseAssetAmortization
7900000 usd
us-gaap Finance Lease Right Of Use Asset Amortization
FinanceLeaseRightOfUseAssetAmortization
6400000 usd
CY2022Q2 us-gaap Finance Lease Interest Expense
FinanceLeaseInterestExpense
2300000 usd
CY2021Q2 us-gaap Finance Lease Interest Expense
FinanceLeaseInterestExpense
2200000 usd
us-gaap Finance Lease Interest Expense
FinanceLeaseInterestExpense
4600000 usd
us-gaap Finance Lease Interest Expense
FinanceLeaseInterestExpense
3600000 usd
CY2022Q2 us-gaap Lease Cost
LeaseCost
18700000 usd
CY2021Q2 us-gaap Lease Cost
LeaseCost
16900000 usd
us-gaap Lease Cost
LeaseCost
37000000.0 usd
us-gaap Lease Cost
LeaseCost
29800000 usd
us-gaap Operating Lease Payments
OperatingLeasePayments
22300000 usd
us-gaap Operating Lease Payments
OperatingLeasePayments
26100000 usd
us-gaap Finance Lease Interest Payment On Liability
FinanceLeaseInterestPaymentOnLiability
4600000 usd
us-gaap Finance Lease Interest Payment On Liability
FinanceLeaseInterestPaymentOnLiability
3600000 usd
us-gaap Finance Lease Principal Payments
FinanceLeasePrincipalPayments
5600000 usd
us-gaap Finance Lease Principal Payments
FinanceLeasePrincipalPayments
4300000 usd
CY2022Q2 us-gaap Lessee Operating Lease Liability Payments Remainder Of Fiscal Year
LesseeOperatingLeaseLiabilityPaymentsRemainderOfFiscalYear
23100000 usd
CY2022Q2 us-gaap Finance Lease Liability Payments Remainder Of Fiscal Year
FinanceLeaseLiabilityPaymentsRemainderOfFiscalYear
9900000 usd
CY2022Q2 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
47300000 usd
CY2022Q2 us-gaap Finance Lease Liability Payments Due Next Twelve Months
FinanceLeaseLiabilityPaymentsDueNextTwelveMonths
18800000 usd
CY2022Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
47000000.0 usd
CY2022Q2 us-gaap Finance Lease Liability Payments Due Year Two
FinanceLeaseLiabilityPaymentsDueYearTwo
17200000 usd
CY2022Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Three
LesseeOperatingLeaseLiabilityPaymentsDueYearThree
46000000.0 usd
CY2022Q2 us-gaap Finance Lease Liability Payments Due Year Three
FinanceLeaseLiabilityPaymentsDueYearThree
16100000 usd
CY2022Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Four
LesseeOperatingLeaseLiabilityPaymentsDueYearFour
45300000 usd
CY2022Q2 us-gaap Finance Lease Liability Payments Due Year Four
FinanceLeaseLiabilityPaymentsDueYearFour
15500000 usd
CY2022Q2 musa Lessee Operating Lease Liability To Be Paid After Year Four
LesseeOperatingLeaseLiabilityToBePaidAfterYearFour
553100000 usd
CY2022Q2 musa Finance Lease Liability To Be Paid After Year Four
FinanceLeaseLiabilityToBePaidAfterYearFour
137200000 usd
CY2022Q2 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
761800000 usd
CY2022Q2 us-gaap Finance Lease Liability Payments Due
FinanceLeaseLiabilityPaymentsDue
214700000 usd
CY2022Q2 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
307600000 usd
CY2022Q2 us-gaap Finance Lease Liability Undiscounted Excess Amount
FinanceLeaseLiabilityUndiscountedExcessAmount
77600000 usd
CY2022Q2 us-gaap Operating Lease Liability
OperatingLeaseLiability
454200000 usd
CY2022Q2 us-gaap Finance Lease Liability
FinanceLeaseLiability
137100000 usd
CY2022Q2 us-gaap Finance Lease Weighted Average Remaining Lease Term1
FinanceLeaseWeightedAverageRemainingLeaseTerm1
P13Y4M24D
CY2022Q2 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P16Y1M6D
CY2022Q2 us-gaap Finance Lease Weighted Average Discount Rate Percent
FinanceLeaseWeightedAverageDiscountRatePercent
0.067
CY2022Q2 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.064
us-gaap Number Of Operating Segments
NumberOfOperatingSegments
1 segment
CY2022Q2 us-gaap Assets
Assets
4217800000 usd
CY2022Q2 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
6766700000 usd
CY2022Q2 us-gaap Net Income Loss
NetIncomeLoss
183300000 usd
CY2021Q2 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
4456000000 usd
CY2021Q2 us-gaap Net Income Loss
NetIncomeLoss
128800000 usd
us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
11885100000 usd
us-gaap Net Income Loss
NetIncomeLoss
335700000 usd
us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
7993100000 usd
us-gaap Net Income Loss
NetIncomeLoss
184100000 usd

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