What changed in this filing

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Item 1. Financial Statements

2021-10-28 compared with 2021-07-29 · 109 added, 81 removed, 655 unchanged (22% of the section changed)

2 unchanged sentences

Consolidated Balance Sheets

June 30, December 31,

September 30, December 31,

(Millions of dollars, except share amounts) 2021 2020

41 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

(Millions of dollars, except share and per share amounts) 2021 2020 2021 2020

36 unchanged sentences

(Millions of dollars) Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2021 2020 2021 2020

15 unchanged sentences

(Millions of dollars)

Six Months Ended

Nine Months Ended

September 30,

Operating Activities

42 unchanged sentences

Balance as of June 30, 2020 46,767,164 $ 0.5 $ ( 1,235.2 ) $ 533.0 $ 1,622.2 $ ( 2.5 ) $ 918.0

Net income (loss) — — — — 66.9 — 66.9

Loss on interest rate hedge, net of tax — — — — — 0.4 0.4

Purchase of treasury stock — — ( 89.9 ) — — — ( 89.9 )

Issuance of treasury stock — — 3.3 ( 3.3 ) — — —

Amounts related to share-based compensation — — — ( 5.1 ) — — ( 5.1 )

Share-based compensation expense — — — 5.4 — — 5.4

Balance as of September 30, 2020 46,767,164 $ 0.5 $ ( 1,321.8 ) $ 530.0 $ 1,689.1 $ ( 2.1 ) $ 895.7

Murphy USA Inc.

13 unchanged sentences

Net income (loss) — — — — 128.8 — 128.8

Loss on interest rate hedge, net of tax — — — — — 0.2 0.2

Gain on interest rate hedge, net of tax — — — — — 0.2 0.2

Cash dividends declared ($ 0.25 per share)

6 unchanged sentences

Balance as of June 30, 2021 46,767,164 0.5 ( 1,683.1 ) 528.4 1,913.6 ( 1.5 ) 757.9

Net income (loss) — — — — 104.0 — 104.0

Gain on interest rate hedge, net of tax — — — — — 0.2 0.2

Cash dividends declared ($ 0.25 per share)

— — — — ( 6.4 ) — ( 6.4 )

Dividend equivalent units accrued — — — 0.2 ( 0.2 ) — —

Purchase of treasury stock — — ( 33.2 ) — — — ( 33.2 )

Issuance of treasury stock — — 0.4 ( 0.4 ) — — —

Amounts related to share-based compensation — — — ( 0.3 ) — — ( 0.3 )

Share-based compensation expense — — — 2.6 — — 2.6

Balance as of September 30, 2021 46,767,164 $ 0.5 $ ( 1,715.9 ) $ 530.5 $ 2,011.0 $ ( 1.3 ) $ 824.8

See notes to consolidated financial statements.

6 unchanged sentences

Murphy USA operates a chain of owned retail stores under the brand name of Murphy USA® which are almost all located in close proximity to Walmart stores in 25 states, markets gasoline and other products at standalone stores under the Murphy Express brand, and Quick Chek Corporation ("QuickChek") has convenience stores located in New Jersey and New York.

At June 30, 2021, the Company had a total of 1,662 Company stores of which 1,151 were Murphy USA, 356 were Murphy Express and 155 were QuickChek.

At September 30, 2021, the Company had a total of 1,669 Company stores of which 1,151 were Murphy USA, 360 were Murphy Express and 158 were QuickChek.

Basis of Presentation — Murphy USA was incorporated in March 2013 and, in connection with its incorporation, Murphy USA issued 100 shares of common stock, par value $ 0.01 per share, to Murphy Oil Corporation (“Murphy Oil”) for $ 1.00 .

1 unchanged sentence

Murphy USA Inc., Murphy Oil USA, and certain of its subsidiaries operate on a calendar year basis, while the subsidiary QuickChek uses a weekly retail calendar where each quarter has 13 weeks and its historical fiscal year end was the Friday nearest to October 31.

For the six month period ended June 30, 2021, the results provided include the period from January 29, 2021 to July 2, 2021.

The difference in the timing of the month ends are immaterial to the overall consolidated results.

For the three month period ended September 30, 2021, the QuickChek results cover the period from July 3, 2021 to October 1, 2021.

For the year-to-date period, the QuickChek results cover the period from January 29, 2021 (the date of acquisition) to October 1, 2021.

The difference in timing of the month ends is immaterial to the overall consolidated results.

In preparing the financial statements of Murphy USA in conformity with accounting principles generally accepted in the United States, management has made a number of estimates and assumptions related to the reporting of assets, liabilities, revenues, expenses and the disclosure of contingent assets and liabilities.

10 unchanged sentences

The Company revises the estimated remaining useful life of these assets when events or changes in circumstances warrant a revision.

If the Company revises the useful life, the unamortized balance is amortized over the use life on a prospective basis.

If the Company revises the useful life, the unamortized balance is amortized over the useful life on a prospective basis.

Indefinite-lived intangibles are tested annually for impairment, or more often if indicators warrant.

19 unchanged sentences

The Company continues to account for these transactions as non-monetary exchanges under existing accounting guidance and typically reports these on a net basis in the Consolidated Statements of Income.

The following tables disaggregate our revenues by major source for the three and six months ended June 30, 2021 and 2020, respectively:

Three Months Ended June 30, 2021 Three Months Ended June 30, 2020

The following tables disaggregate our revenues by major source for the three and nine months ended September 30, 2021 and 2020, respectively:

Three Months Ended September 30, 2021 Three Months Ended September 30, 2020

(Millions of dollars) Marketing Corporate and Other Assets Consolidated Marketing Corporate and Other Assets Consolidated

11 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Six Months Ended June 30, 2021 Six Months Ended June 30, 2020

Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020

(Millions of dollars) Marketing Corporate and Other Assets Consolidated Marketing Corporate and Other Assets Consolidated

42 unchanged sentences

Deferred revenue associated with both rewards programs are included in Trade accounts payable and accrued liabilities in our Consolidated Balance Sheet.

The deferred revenue balances at June 30, 2021 and December 31, 2020 were immaterial.

The deferred revenue balances at September 30, 2021 and December 31, 2020 were immaterial.

For the sale of RINs, we recognize revenue when the RIN is transferred to the counter-party and the sale is completed.

4 unchanged sentences

Trade accounts receivable on the balance sheet represents both receivables related to contracts with customers and other trade receivables.

At June 30, 2021 and December 31, 2020, we had $ 144.3 million and $ 88.3 million of receivables, respectively, related to contracts with customers recorded.

At September 30, 2021 and December 31, 2020, we had $ 125.5 million and $ 88.3 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.

2 unchanged sentences

Inventories consisted of the following:

(Millions of dollars) June 30,

(Millions of dollars) September 30,

2021 December 31,

Finished products - First-In, First-Out ("FIFO") basis $ 349.7 $ 223.0

Last-In, First-Out ("LIFO") reserve - finished products ( 222.4 ) ( 101.3 )

Finished products - LIFO basis 127.3 121.7

Petroleum products - First-In, First-Out ("FIFO") basis $ 335.6 $ 223.0

Last-In, First-Out ("LIFO") reserve - petroleum products ( 232.7 ) ( 101.3 )

Petroleum products - LIFO basis 102.9 121.7

Store merchandise for resale 178.1 152.0

1 unchanged sentence

Total inventories $ 289.3 $ 279.1

At June 30, 2021 and December 31, 2020, the replacement cost (market value) of LIFO inventories exceeded the LIFO carrying value by $ 222.4 million and $ 101.3 million, respectively.

At September 30, 2021 and December 31, 2020, the replacement cost (market value) of LIFO inventories exceeded the LIFO carrying value by $ 232.7 million and $ 101.3 million, respectively.

The QuickChek subsidiary values its general merchandise inventory utilizing the LIFO method and values the inventory of gasoline and certain other merchandise items using the FIFO method.

28 unchanged sentences

Asset retirement obligation ( 1.2 )

Long term debt, including finance lease obligations ( 136.5 )

Current and long term debt, including finance lease obligations ( 145.3 )

Deferred credits and other liabilities ( 7.4 )

8 unchanged sentences

In connection with the acquisition, the Company recognized certain acquisition-related expenses which were expensed as incurred.

These expenses, recognized within acquisition related costs in the consolidated statements of operations, include amounts related to transaction and integration costs, including fees for advisory and professional services incurred as part of the acquisition and integration costs subsequent to the acquisition in the amount of $ 9.0 million for the six months ended June 30, 2021.

Note 5 — Goodwill and Intangible Assets

The Company's goodwill is assigned to its Marketing segment and no ne of the goodwill is deductible for tax purposes.

(Millions of dollars) June 30,

(Millions of dollars)

Goodwill balance, January 1, 2021 $ —

QuickChek acquisition 329.1

Goodwill balance, June 30, 2021 $ 329.1

Goodwill balance, September 30, 2021

We amortize intangible assets subject to amortization on a straight-line or accelerated basis based on the period for which the economic benefits of the asset or liability are expected to be realized.

In connection with our acquisition of QuickChek on January 29, 2021, we recorded the following amounts of intangible assets in addition to one prior intangible asset.

In connection with our acquisition of QuickChek on January 29, 2021, we recorded the following amounts of intangible assets, in addition to the Company's existing intangible asset pipeline space, which is being amortized over a 40 year life.

2021 Remaining Useful Life

1 unchanged sentence

Intangible assets subject to amortization:

Pipeline space $ 34.1 34.2

Intangible lease liability $ ( 9.1 ) 15.5

Intangible assets not subject to amortization:

Tradename 115.4 n/a

Trade name 115.4 n/a

Liquor licenses 0.5 n/a

Total intangible assets $ 141.2

Intangible assets subject to amortization at June 30, 2021 and December 31, 2020 consisted of the following:

June 30, 2021 December 31, 2020

Total intangible assets acquired $ 106.8

Intangible assets subject to amortization at September 30, 2021 and December 31, 2020 consisted of the following:

Remaining Useful Life (in years) September 30, 2021 December 31, 2020

(Millions of dollars) Cost Net Cost Net

6 unchanged sentences

Long-term debt consisted of the following:

(Millions of dollars) June 30,

(Millions of dollars) September 30,

2021 December 31,

3.75 % senior notes due 2031 (net of unamortized discount of $ 6.0 at June 30, 2021)

5.625 % senior notes due 2027 (net of unamortized discount of $ 2.2 at June 30, 2021 and $ 2.4 at December 2020)

4.75 % senior notes due 2029 (net of unamortized discount of $ 5.1 at June 30, 2021 and $ 5.4 at December 31, 2020)

Term loan due 2023 (effective interest rate of n/a at June 30, 2021 and 2.67 % at December 31, 2020)

Term loan due 2028 (effective interest rate of 2.27 % at June 30, 2021) net of unamortized discount of $ 0.9 at June 30, 2021

3.75 % senior notes due 2031 (net of unamortized discount of $ 5.8 at September 30, 2021)

5.625 % senior notes due 2027 (net of unamortized discount of $ 2.1 at September 30, 2021 and $ 2.4 at December 2020)

4.75 % senior notes due 2029 (net of unamortized discount of $ 5.0 at September 30, 2021 and $ 5.4 at December 31, 2020)

Term loan due 2023 (effective interest rate of n/a at September 30, 2021 and 2.67 % at December 31, 2020)

Term loan due 2028 (effective interest rate of 2.27 % at September 30, 2021) net of unamortized discount of $ 0.9 at September 30, 2021

Capitalized lease obligations, autos and equipment, due through 2025 2.7 2.1

36 unchanged sentences

Pursuant to the credit agreement's covenant limiting certain restricted payments, certain payments in respect of our equity interests, including dividends, when the total leverage ratio, calculated on a pro forma basis, is greater than 3.0 to 1.0 could be limited.

At June 30, 2021, our total leverage ratio was 2.55 to 1.0 which meant our ability at that date to make restricted payments was not limited.

At September 30, 2021, our total leverage ratio was 2.40 to 1.0 which meant our ability at that date to make restricted payments was not limited.

If our total leverage ratio, on a pro forma basis, exceeds 3.0 to 1.0, any restricted payments made following that time until the ratio is once again, on a pro forma basis, below 3.0 to 1.0 would be limited by the covenant, which contains certain exceptions, including an ability to make restricted payments in cash in an aggregate amount not to exceed $ 100 million in any fiscal year and an additional ability to make restricted payments in an aggregate amount not to exceed the greater of $ 113 million or 4.50 % of consolidated net tangible assets over the life of the credit agreement.

2 unchanged sentences

Note 7— Asset Retirement Obligations (ARO)

The majority of the ARO recognized by the Company at June 30, 2021 and December 31, 2020 is related to the estimated costs to dismantle and abandon certain of its retail gasoline stores.

The majority of the ARO recognized by the Company at September 30, 2021 and December 31, 2020 is related to the estimated costs to dismantle and abandon certain of its retail gasoline stores.

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.

2 unchanged sentences

A reconciliation of the beginning and ending aggregate carrying amount of the ARO is shown in the following table.

(Millions of dollars) June 30,

(Millions of dollars) September 30,

2021 December 31,

9 unchanged sentences

The effective tax rate is calculated as the amount of income tax expense (benefit) divided by income before income tax expense (benefit).

For the three and six month periods ended June 30, 2021 and 2020, the Company’s approximate effective tax rates were as follows:

Three months ended June 30, 24.2 % 24.3 %

Six months ended June 30, 24.3 % 24.1 %

In the six months ended June 30, 2021, the Company recognized approximately $ 1.1 million of excess tax benefits related to stock compensation for employees, $ 1.0 million in expense for other discrete tax items related to state deferred tax rate adjustments due to the QuickChek acquisition, and $ 0.4 million in other discrete tax benefits.

For the six months ended June 30, 2020, the Company recognized tax benefits of approximately $ 0.6 million in excess tax benefits related to stock compensation and $ 1.8 million for other discrete tax items.

As of June 30, 2021, the earliest years remaining open for federal and state audit and/or settlement are 2017 and 2015, respectively.

For the three and nine month periods ended September 30, 2021 and 2020, the Company’s approximate effective tax rates were as follows:

Three months ended September 30, 24.5 % 24.1 %

Nine months ended September 30, 24.4 % 24.1 %

In the nine months ended September 30, 2021, the Company recognized approximately $ 1.2 million of excess tax benefits related to stock compensation for employees, $ 1.0 million in expense for other discrete tax items related to state deferred tax rate adjustments due to the QuickChek acquisition, and $ 0.4 million in other discrete tax benefits.

For the nine months ended September 30, 2020, the Company recognized tax benefits of approximately $ 1.4 million in excess tax benefits related to stock compensation and $ 1.7 million for other discrete tax items.

As of September 30, 2021, the earliest years remaining open for federal and state audit and/or settlement are 2017 and 2015, respectively.

Although the Company believes that recorded liabilities for uncertain tax positions are adequate, additional gains or losses could occur in future periods from resolution of outstanding unsettled matters.

20 unchanged sentences

Stock price at valuation date $ 126.00

Changes in options outstanding for Company employees during the period from December 31, 2020 to June 30, 2021 are presented in the following table:

Changes in options outstanding for Company employees during the period from December 31, 2020 to September 30, 2021 are presented in the following table:

Options Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (Millions of Dollars)

2 unchanged sentences

Exercised ( 25,400 ) 68.32

Forfeited ( 9,450 ) 105.73

Outstanding at 9/30/2021 373,350 $ 90.50 4.5 $ 28.7

4 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Changes in restricted stock units outstanding for Company employees during the period from December 31, 2020 to June 30, 2021 are presented in the following table:

Changes in restricted stock units outstanding for Company employees during the period from December 31, 2020 to September 30, 2021 are presented in the following table:

Employee RSUs Number of units Weighted Average Grant Date Fair Value Total Fair Value (Millions of Dollars)

9 unchanged sentences

For the ROACE portion of the awards, the valuation will be based on the grant date fair value of $ 126.00 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, 2020 to June 30, 2021 are presented in the following table:

Changes in performance-based restricted stock units outstanding for Company employees during the period from December 31, 2020 to September 30, 2021 are presented in the following table:

Employee PSU's Number of Units Weighted Average Grant Date Fair Value Total Fair Value (Millions of Dollars)

2 unchanged sentences

Vested and issued ( 58,302 ) $ 76.78 $ 7.3

Forfeited ( 6,231 ) $ 114.97

Outstanding at 9/30/2021 130,349 $ 117.61 $ 21.8

8 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Changes in restricted stock units outstanding for Company non-employee directors during the period from December 31, 2020 to June 30, 2021 are presented in the following table:

Changes in restricted stock units outstanding for Company non-employee directors during the period from December 31, 2020 to September 30, 2021 are presented in the following table:

Director RSU's Number of Units Weighted Average Grant Date Fair Value Total Fair Value (Millions of Dollars)

3 unchanged sentences

Outstanding at 9/30/2021 30,207 $ 99.46 $ 5.1

For the six months ended June 30, 2021 and 2020, share-based compensation was $ 7.4 million and $ 5.6 million, respectively.

There was $ 0.1 million in income tax benefits realized for the tax deductions from options exercised for the six months ended June 30, 2021 and there were none in the period ended June 30, 2020.

For the nine months ended September 30, 2021 and 2020, share-based compensation was $ 10.0 million and $ 11.0 million, respectively.

There was $ 0.4 million in income tax benefits realized for the tax deductions from options exercised for the nine months ended September 30, 2021 and there were $ 0.8 million in the period ended September 30, 2020.

Note 10 — Financial Instruments and Risk Management

5 unchanged sentences

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 June 30, 2021, all current commodity derivative activity is immaterial.

At June 30, 2021 there was $ 0.8 million cash deposit and at December 31, 2020 the cash deposit was $ 0.6 million related to commodity derivative contracts reported in Prepaid expenses and other current assets in the Consolidated Balance Sheets.

These cash deposits have not been used to increase the reported net assets or reduce the reported net liabilities on the derivative contracts at June 30, 2021 or December 31, 2020.

As of September 30, 2021, all current commodity derivative activity is immaterial.

At September 30, 2021 there was $ 0.9 million cash deposit and at December 31, 2020 the cash deposit was $ 0.6 million related to commodity derivative contracts reported in Prepaid expenses and other current assets in the Consolidated Balance Sheets.

These cash deposits have not been used to increase the reported net assets or reduce the reported net liabilities on the derivative contracts at September 30, 2021 or December 31, 2020.

Interest Rate Risks

2 unchanged sentences

The Company is reclassifying the accumulated other comprehensive gain on the previous interest rate swap, $ 2.4 million as of the de-designation date, into interest expense using a straight-line approach over the remaining life of the originally designated hedging relationship.

The amount of pre-tax gains in accumulated other comprehensive loss was reclassified into interest expense was $ 0.2 million and $ 0.4 million for the three months and six months ended June 30, 2021, respectively, leaving a balance of $ 2.0 million at June 30, 2021.

The amount of pre-tax gains in accumulated other comprehensive loss that was reclassified into interest expense was $ 0.2 million and $ 0.6 million for the three months and nine months ended September 30, 2021, respectively, leaving a balance of $ 1.8 million at September 30, 2021.

Prior to the de-designation, changes in the fair values of the interest rate swaps were recorded as a component of other comprehensive loss.

5 unchanged sentences

On October 28, 2020, the Board of Directors approved an up to $ 500 million share repurchase program to be in effect through December 2023.

For the six months ended June 30, 2021, the Company repurchased 1,483,758 shares of common stock for an average price of $ 133.65 per share including brokerage fees.

For the six months ended June 30, 2020, 1,362,400 shares were repurchased for an average price of $ 103.17 per share under previous board authorizations.

The following table provides a reconciliation of basic and diluted earnings per share computations for the three and six months ended June 30, 2021 and 2020:

For the nine months ended September 30, 2021, the Company repurchased 1,699,043 shares of common stock for an average price of $ 136.22 per share including brokerage fees.

For the nine months ended September 30, 2020, 2,018,934 shares were repurchased for an average price of $ 114.16 per share under previous board authorizations.

The following table provides a reconciliation of basic and diluted earnings per share computations for the three and nine months ended September 30, 2021 and 2020:

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

(Millions of dollars, except share and per share amounts) 2021 2020 2021 2020

16 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

Potentially dilutive shares excluded from the calculation as their inclusion would be anti-dilutive 2021 2020 2021 2020

3 unchanged sentences

Note 12 — Other Financial Information

CASH FLOW DISCLOSURES — Cash income taxes paid, net of refunds, were $ 44.6 million and $ 15.5 million for the six month periods ended June 30, 2021 and 2020, respectively.

Interest paid, net of amounts capitalized, was $ 31.4 million and $ 25.4 million for the six month periods ended June 30, 2021 and 2020, respectively.

CASH FLOW DISCLOSURES — Cash income taxes paid, net of refunds, were $ 86.1 million and $ 66.5 million for the nine month periods ended September 30, 2021 and 2020, respectively.

Interest paid, net of amounts capitalized, was $ 57.9 million and $ 39.0 million for the nine month periods ended September 30, 2021 and 2020, respectively.

CHANGES IN WORKING CAPITAL:

Six Months Ended

Nine Months Ended

September 30,

(Millions of dollars) 2021 2020

12 unchanged sentences

At the balance sheet date, the fair value of derivative contracts was determined using NYMEX quoted values but was immaterial.

The following table presents the carrying amounts and estimated fair values of financial instruments held by the Company at June 30, 2021 and December 31, 2020.

The following table presents the carrying amounts and estimated fair values of financial instruments held by the Company at September 30, 2021 and December 31, 2020.

The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties.

5 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

At June 30, 2021 At December 31, 2020

At September 30, 2021 At December 31, 2020

Carrying Carrying

1 unchanged sentence

Financial liabilities

Current and long-term debt $ ( 1,673.6 ) $ ( 1,712.2 ) $ ( 1,002.4 ) $ ( 1,029.9 )

Current and long-term debt, excluding finance leases $ ( 1,673.5 ) $ ( 1,714.4 ) $ ( 1,002.4 ) $ ( 1,029.9 )

Note 14 — Contingencies

22 unchanged sentences

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, 2021, however certain jurisdictions provide reimbursement for these expenses which have been considered in recording the net exposure.

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 September 30, 2021, however certain jurisdictions provide reimbursement for these expenses which have been considered in recording the net exposure.

Environmental Protection Agency (EPA) currently considers the Company a Potentially Responsible Party (PRP) at one Superfund site.

1 unchanged sentence

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, 2021.

Accordingly, the Company has not recorded a liability for remedial costs at the Superfund site at September 30, 2021.

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-

The Company believes that its share of the ultimate costs to

Murphy USA Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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.

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.

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.

4 unchanged sentences

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, 2021, there were a number of outstanding claims that are of a routine nature.

As of September 30, 2021, 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.

6 unchanged sentences

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, 2021, the Company had contingent liabilities of $ 10.5 million on outstanding letters of credit.

At September 30, 2021, the Company had contingent liabilities of $ 10.5 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.

20 unchanged sentences

Leases are reflected in the following balance sheet accounts:

(Millions of dollars) Classification June 30,

(Millions of dollars) Classification September 30,

2021 December 31,

Operating (Right-of-use) Operating lease right-of-use assets $ 412.8 $ 147.7

Finance Property, plant, and equipment, at cost, less accumulated depreciation of $ 8.4 at June 30, 2021 and $ 2.8 at December 31, 2020

Finance Property, plant, and equipment, at cost, less accumulated depreciation of $ 12.9 at September 30, 2021 and $ 2.8 at December 31, 2020

Total leased assets $ 550.3 $ 150.3

5 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

(Millions of dollars) Classification 2021 2020 2021 2020

7 unchanged sentences

Cash flow information:

Six Months Ended

Nine Months Ended

September 30,

(Millions of dollars) 2021 2020

3 unchanged sentences

Financing cash flows from finance leases $ 7.0 $ 1.1

Maturity of Lease Liabilities at June 30, 2021:

Maturity of Lease Liabilities at September 30, 2021:

(Millions of dollars) Operating leases Finance leases

9 unchanged sentences

Lease Term and Discount Rate:

Six Months Ended

Nine Months Ended

September 30,

Weighted average remaining lease term (years)

16 unchanged sentences

Three Months Ended

June 30, 2021 June 30, 2020

(Millions of dollars) Total Assets at June 30, 2021 External Revenues Income (Loss) External Revenues Income (Loss)

September 30, 2021 September 30, 2020

(Millions of dollars) Total Assets at September 30, 2021 External Revenues Income (Loss) External Revenues Income (Loss)

Marketing $ 3,668.8 $ 4,600.3 $ 121.1 $ 2,839.1 $ 81.7

1 unchanged sentence

Total $ 4,094.3 $ 4,600.4 $ 104.0 $ 2,839.0 $ 66.9

Six Months Ended

June 30, 2021 June 30, 2020

Nine Months Ended

September 30, 2021 September 30, 2020

External Revenues Income (Loss) External Revenues Income (Loss)

4 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements