| | | | | | | | | | | | | | | | | | | | | |
<?xml version="1.0" encoding="windows-1252"?> |
<InstanceReport xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:xsd="http://www.w3.org/2001/XMLSchema"> |
| <Version> 1.0.0.3 </Version> |
| <hasSegments> false </hasSegments> |
| <ReportName> Hurricane and Insurance Related Matters </ReportName> |
| <RoundingOption/> |
| <Columns> |
| | <Column> |
| | | <LabelColumn> false </LabelColumn> |
| | | <Id> 1 </Id> |
| | | <Labels> |
| <Label Id="1" Label="12 Months Ended"/> |
| <Label Id="2" Label="Dec. 31, 2009"/> |
| <Label Id="4" Label="USD / shares"/> |
| </Labels> |
| | | <CurrencySymbol> $ </CurrencySymbol> |
| | | <hasSegments> false </hasSegments> |
| | | <hasScenarios> false </hasScenarios> |
| | | <Segments/> |
| | | <Scenarios/> |
| | | <Units> |
| <Unit> |
| <UnitID> iso4217_USD </UnitID> |
| <UnitType> Standard </UnitType> |
| <StandardMeasure> |
| <MeasureSchema> http://www.xbrl.org/2003/iso4217 </MeasureSchema> |
| <MeasureValue> USD </MeasureValue> |
| <MeasureNamespace> iso4217 </MeasureNamespace> |
| </StandardMeasure> |
| <Scale> 0 </Scale> |
| </Unit> |
| <Unit> |
| <UnitID> iso4217_USD_per_shares </UnitID> |
| <UnitType> Divide </UnitType> |
| <NumeratorMeasure> |
| <MeasureSchema> http://www.xbrl.org/2003/iso4217 </MeasureSchema> |
| <MeasureValue> USD </MeasureValue> |
| <MeasureNamespace> iso4217 </MeasureNamespace> |
| </NumeratorMeasure> |
| <DenominatorMeasure> |
| <MeasureSchema> http://www.xbrl.org/2003/instance </MeasureSchema> |
| <MeasureValue> shares </MeasureValue> |
| <MeasureNamespace/> |
| </DenominatorMeasure> |
| <Scale> 0 </Scale> |
| </Unit> |
| <Unit> |
| <UnitID> shares </UnitID> |
| <UnitType> Standard </UnitType> |
| <StandardMeasure> |
| <MeasureSchema> http://www.xbrl.org/2003/instance </MeasureSchema> |
| <MeasureValue> shares </MeasureValue> |
| <MeasureNamespace/> |
| </StandardMeasure> |
| <Scale> 0 </Scale> |
| </Unit> |
| </Units> |
| | | </Column> |
| | </Columns> |
| <Rows> |
| | <Row> |
| | | <Id> 5 </Id> |
| | | <Label> Hurricane and Insurance Related Matters </Label> |
| | | <Level> 3 </Level> |
| | | <ElementName> us-gaap_ScheduleOfBusinessInsuranceRecoveriesTextBlock </ElementName> |
| | | <ElementPrefix> us-gaap </ElementPrefix> |
| | | <IsBaseElement> true </IsBaseElement> |
| | | <BalanceType> na </BalanceType> |
| | | <PeriodType> duration </PeriodType> |
| | | <ElementDataType> string </ElementDataType> |
| | | <ShortDefinition> No definition available. </ShortDefinition> |
| | | <IsReportTitle> false </IsReportTitle> |
| | | <IsSegmentTitle> false </IsSegmentTitle> |
| | | <IsSubReportEnd> false </IsSubReportEnd> |
| | | <IsCalendarTitle> false </IsCalendarTitle> |
| | | <IsTuple> false </IsTuple> |
| | | <IsAbstractGroupTitle> false </IsAbstractGroupTitle> |
| | | <IsBeginningBalance> false </IsBeginningBalance> |
| | | <IsEndingBalance> false </IsEndingBalance> |
| | | <IsEPS> false </IsEPS> |
| | | <Cells> |
| <Cell> |
| <Id> 1 </Id> |
| <ShowCurrencySymbol> false </ShowCurrencySymbol> |
| <IsNumeric> false </IsNumeric> |
| <NumericAmount> 0 </NumericAmount> |
| <RoundedNumericAmount> 0 </RoundedNumericAmount> |
| <NonNumbericText> <div> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman" size="2"><b>Note P – Hurricane and Insurance Related Matters</b></font></p> <p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman" size="2">The Company maintains insurance coverage related to losses of production and profits for occurrences such as storms, fires and other issues. During 2009, the Company’s North American refining and marketing operations recorded a benefit of $15,398,000 for business interruption insurance relating to a fire that occurred at the Meraux, Louisiana refinery in June 2003. This business interruption settlement was included in Sales and Other Operating Revenues in the Consolidated Statement of Income for 2009.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman" size="2">The Company also maintains certain insurance covering property damage, sudden and accidental environmental events and other hazards. In 2009, the Company’s primary property insurer settled all claims for damages at the Meraux refinery and other properties caused by Hurricane Katrina, which struck the U.S. Gulf Coast in late August 2005. The insurer’s claims for Hurricane Katrina exceeded its maximum loss for a specific event, which ultimately limited the amount of insurance the Company received for its damages. The Company’s final cash settlement from the insurer led to pretax income of $12,718,000 in 2009. This income, which was recorded in Sales and Operating Revenues in the 2009 Consolidated Statement of Income, arose because the ultimate payments received from the insurer exceeded amounts originally estimated by the insurer. In 2007, the Company recorded a $3,000,000 charge in Operating Expenses associated with Meraux property damages from Hurricane Katrina because the property insurer lowered its estimated insurance payments based on higher total estimated claims related to this event. With the final insurance settlement in 2009, the Company’s refining and marketing operations ultimately received insurance proceeds of $156,919,000 related to property damages incurred as a result of Hurricane Katrina. See Note R for additional information regarding environmental and other contingencies relating to Hurricane Katrina.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman" size="2">The Company also settled with an insurance consortium in 2009 for its claims related to a crude oil spill that occurred at the Meraux refinery after Hurricane Katrina. The settlement led to pretax income of $6,500,000 in the Consolidated Statement of Income for 2009, with $4,500,000 related to the insurance claim included in Sales and Other Operating Revenues for the North American Refining and Marketing segment and $2,000,000 of associated interest income included in Interest and Other Income for Corporate activities. At year-end 2009, the Company had not settled its claim against one insurer for legal and professional costs associated with the insurance coverage negotiation process. During early 2010, the Company agreed to accept a final settlement of $3,000,000 from the insurer for these costs.</font></p> </div> </NonNumbericText> |
| <NonNumericTextHeader> Note P – Hurricane and Insurance Related Matters The Company maintains insurance coverage related to losses of production and profits for occurrences </NonNumericTextHeader> |
| <FootnoteIndexer/> |
| <hasSegments> false </hasSegments> |
| <hasScenarios> false </hasScenarios> |
| </Cell> |
| </Cells> |
| | | <ElementDefenition> No definition available. </ElementDefenition> |
| | | <ElementReferences> No authoritative reference available. </ElementReferences> |
| | | <IsTotalLabel> false </IsTotalLabel> |
| | | </Row> |
| | </Rows> |
| <Footnotes/> |
| <ComparabilityReport> false </ComparabilityReport> |
| <NumberOfCols> 1 </NumberOfCols> |
| <NumberOfRows> 1 </NumberOfRows> |
| <HasScenarios> false </HasScenarios> |
| <MonetaryRoundingLevel> UnKnown </MonetaryRoundingLevel> |
| <SharesRoundingLevel> UnKnown </SharesRoundingLevel> |
| <PerShareRoundingLevel> UnKnown </PerShareRoundingLevel> |
| <HasPureData> false </HasPureData> |
| <SharesShouldBeRounded> true </SharesShouldBeRounded> |
| </InstanceReport> |