Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2012March 31, 2013
OR
oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to             .
Commission file number 1-9444
CEDAR FAIR, L.P.
(Exact name of registrant as specified in its charter)
 
DELAWARE 34-1560655
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
One Cedar Point Drive, Sandusky, Ohio 44870-5259
(Address of principal executive offices) (Zip Code)
(419) 626-0830
(Registrant’s telephone number, including area code)
 
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes   x    No  o 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer x  Accelerated filer o
    
Non-accelerated filer 
o (Do not check if a smaller reporting company)
  Smaller reporting company o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  o    No  x
   
Title of Class Units Outstanding As Of NovemberMay 1, 20122013
Units Representing
Limited Partner Interests
 55,519,784

Table of Contents

CEDAR FAIR, L.P.
INDEX
FORM 10 - Q
 
     
Part I - Financial Information
   
   
Item 1. 
Financial Statements
  
3-32
   
Item 2. 
Management’s Discussion and Analysis of Financial Condition and Results of Operations
  
33-4433-41
   
Item 3. 
Quantitative and Qualitative Disclosures About Market Risk
  
4441
   
Item 4. 
Controls and Procedures
  
44-4541
  
Part II - Other Information
   
   
Item 1. 
Legal Proceedings
  
4542
   
Item 1A. 
Risk Factors
 
4542
     
Item 5. 
Other Information
 
4542
     
Item 6. 
Exhibits
  
4643
  
Signatures
  
4744
  
Index to Exhibits
  
4845


Table of Contents

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CEDAR FAIR, L.P.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
 9/30/2012 12/31/2011 9/25/2011 3/31/2013 12/31/2012 3/25/2012
ASSETS           (As restated)
Current Assets:            
Cash and cash equivalents $96,102
 $35,524
 $96,312
 $10,038
 $78,830
 $7,319
Receivables 29,357
 7,611
 38,539
 13,342
 18,192
 6,693
Inventories 33,593
 33,069
 36,946
 39,063
 27,840
 44,486
Current deferred tax asset 10,345
 10,345
 5,874
 36,022
 8,184
 15,120
Income tax refundable 10,454
 —
 —
 —
 —
 9,013
Prepaid advertising 16,396
 1,086
 11,139
Other current assets 7,443
 11,966
 9,299
 11,319
 6,974
 10,258
 187,294
 98,515
 186,970
 126,180
 141,106
 104,028
Property and Equipment:            
Land 309,257
 312,859
 311,877
 301,469
 303,348
 314,133
Land improvements 347,631
 333,423
 332,853
 338,777
 339,081
 334,087
Buildings 581,513
 579,136
 578,249
 587,603
 584,854
 580,121
Rides and equipment 1,490,289
 1,423,370
 1,437,590
 1,446,904
 1,450,231
 1,423,360
Construction in progress 10,898
 33,892
 17,315
 63,509
 28,971
 62,951
 2,739,588
 2,682,680
 2,677,884
 2,738,262
 2,706,485
 2,714,652
Less accumulated depreciation (1,175,744) (1,063,188) (1,062,605) (1,167,410) (1,162,213) (1,073,784)
 1,563,844
 1,619,492
 1,615,279
 1,570,852
 1,544,272
 1,640,868
Goodwill 247,663
 243,490
 242,149
 243,653
 246,221
 245,808
Other Intangibles, net 40,865
 40,273
 40,067
 40,323
 40,652
 40,607
Other Assets 50,171
 54,188
 56,622
 34,648
 47,614
 54,193
 $2,089,837
 $2,055,958
 $2,141,087
 $2,015,656
 $2,019,865
 $2,085,504
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Current maturities of long-term debt $—
 $15,921
 $—
 $6,300
 $—
 $15,921
Accounts payable 22,596
 12,856
 28,458
 37,443
 10,734
 28,212
Deferred revenue 34,682
 29,594
 32,694
 66,184
 39,485
 50,754
Accrued interest 7,012
 15,762
 13,968
 8,339
 15,512
 10,314
Accrued taxes 52,404
 16,008
 33,093
 9,000
 17,813
 8,820
Accrued salaries, wages and benefits 36,219
 33,388
 41,109
 20,182
 24,836
 33,562
Self-insurance reserves 23,092
 21,243
 21,942
 23,557
 23,906
 21,754
Current derivative liability —
 50,772
 59,366
Other accrued liabilities 10,843
 7,899
 12,247
 7,867
 5,916
 6,104
 186,848
 203,443
 242,877
 178,872
 138,202
 175,441
Deferred Tax Liability 143,094
 133,767
 123,973
 154,587
 153,792
 130,727
Derivative Liability 34,708
 32,400
 33,835
 31,031
 32,260
 32,280
Other Liabilities 7,380
 4,090
 2,872
 7,685
 8,980
 2,235
Long-Term Debt:            
Revolving credit loans 96,000
 —
 155,004
Term debt 1,131,100
 1,140,179
 1,156,100
 623,700
 1,131,100
 1,140,179
Notes 400,676
 400,279
 400,154
 901,255
 401,080
 400,373
 1,531,776
 1,540,458
 1,556,254
 1,620,955
 1,532,180
 1,695,556
Commitments and Contingencies (Note 10) 
 
 
 
 
 
Partners’ Equity:            
Special L.P. interests 5,290
 5,290
 5,290
 5,290
 5,290
 5,290
General partner 1
 —
 —
 —
 1
 (1)
Limited partners, 55,519, 55,346 and 55,346 units outstanding at September 30, 2012, December 31, 2011 and September 25, 2011, respectively 212,797
 165,518
 204,974
Limited partners, 55,712, 55,618 and 55,424 units outstanding at March 31, 2013, December 31, 2012 and March 25, 2012, respectively 36,550
 177,660
 73,814
Accumulated other comprehensive loss (32,057) (29,008) (28,988) (19,314) (28,500) (29,838)
 186,031
 141,800
 181,276
 22,526
 154,451
 49,265
 $2,089,837
 $2,055,958
 $2,141,087
 $2,015,656
 $2,019,865
 $2,085,504
    
The accompanying Notes to Unaudited Condensed Consolidated Financial Statements are an integral part of these statements.

3
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CEDAR FAIR, L.P.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(In thousands, except per unit amounts)
 Three months ended Nine months ended Twelve months ended Three months ended Twelve months ended
 9/30/2012 9/25/2011 9/30/2012 9/25/2011 9/30/2012 9/25/2011 3/31/2013 3/25/2012 3/31/2013 3/25/2012
Net revenues:               (As restated)   (As restated)
Admissions $319,607
 $333,924
 $533,143
 $505,155
 $624,030
 $585,526
 $20,023
 $11,670
 $620,422
 $597,100
Food, merchandise and games 171,336
 191,494
 305,203
 307,265
 347,374
 348,591
 16,692
 12,532
 346,374
 350,186
Accommodations and other 62,502
 46,850
 100,903
 71,207
 112,690
 79,199
 5,084
 3,996
 115,259
 82,515

 553,445
 572,268
 939,249
 883,627
 1,084,094
 1,013,316
 41,799
 28,198
 1,082,055
 1,029,801
Costs and expenses:                    
Cost of food, merchandise and games revenues 47,353
 48,758
 83,926
 79,981
 96,002
 90,778
 5,037
 4,087
 95,998
 92,032
Operating expenses 163,311
 161,452
 380,832
 351,558
 460,125
 426,955
 76,657
 71,285
 456,775
 437,008
Selling, general and administrative 52,993
 51,978
 115,488
 110,126
 145,788
 133,192
 21,039
 17,984
 141,366
 137,495
Depreciation and amortization 60,747
 63,448
 113,156
 110,857
 128,136
 126,382
 4,786
 4,079
 127,013
 125,892
Loss on impairment of goodwill and other intangibles —
 —
 —
 —
 —
 903
(Gain) on sale of other assets —
 —
 (6,625) —
Loss on impairment / retirement of fixed assets, net 25,000
 880
 24,230
 1,076
 25,719
 63,509
 600
 92
 30,844
 11,251

 349,404
 326,516
 717,632
 653,598
 855,770
 841,719
 108,119
 97,527
 845,371
 803,678
Operating income 204,041
 245,752
 221,617
 230,029
 228,324
 171,597
Operating income (loss) (66,320) (69,329) 236,684
 226,123
Interest expense 26,863
 41,353
 83,902
 124,650
 116,437
 171,049
 25,763
 26,803
 109,579
 142,876
Net effect of swaps (175) (3,962) (1,318) (3,507) (10,930) 1,772
 9,211
 (970) 8,689
 (15,976)
Loss on early debt extinguishment 34,573
 —
 34,573
 —
Unrealized/realized foreign currency (gain) loss (15,035) 18,549
 (13,926) 14,704
 (18,721) 2,323
 8,958
 (8,192) 8,152
 8,605
Other (income) expense (13) (250) (31) 835
 (68) 761
 (40) (16) (92) (126)
Income (loss) before taxes 192,401
 190,062
 152,990
 93,347
 141,606
 (4,308) (144,785) (86,954) 75,783
 90,744
Provision (benefit) for taxes 51,713
 37,844
 41,395
 21,773
 30,839
 (12,424) (35,659) (21,539) 17,638
 5,937
Net income 140,688
 152,218
 111,595
 71,574
 110,767
 8,116
Net income allocated to general partner 1
 2
 1
 1
 1
 1
Net income allocated to limited partners $140,687
 $152,216
 $111,594
 $71,573
 $110,766
 $8,115
Net income (loss) (109,126) (65,415) 58,145
 84,807
Net income (loss) allocated to general partner (1) (1) 1
 1
Net income (loss) allocated to limited partners $(109,125) $(65,414) $58,144
 $84,806
                    
Net income $140,688
 $152,218
 $111,595
 $71,574
 $110,767
 $8,116
Net income (loss) $(109,126) $(65,415) $58,145
 $84,807
Other comprehensive income (loss), (net of tax):                    
Cumulative foreign currency translation adjustment (563) 2,842
 (1,251) 2,354
 (2,672) (1,704) 301
 (1,169) 1,839
 1,050
Unrealized income (loss) on cash flow hedging derivatives (234) (3,224) (1,798) 2,366
 (397) 22,916
 8,885
 339
 8,685
 (7,958)
Other comprehensive income (loss), (net of tax) (797) (382) (3,049) 4,720
 (3,069) 21,212
 9,186
 (830) 10,524
 (6,908)
Total comprehensive income $139,891
 $151,836
 $108,546
 $76,294
 $107,698
 $29,328
Total comprehensive income (loss) $(99,940) $(66,245) $68,669
 $77,899
Basic earnings per limited partner unit:                    
Weighted average limited partner units outstanding 55,611
 55,346
 55,473
 55,345
 55,440
 55,342
 55,854
 55,378
 55,694
 55,353
Net income per limited partner unit $2.53
 $2.75
 $2.01
 $1.29
 $2.00
 $0.15
Net income (loss) per limited partner unit $(1.95) $(1.18) $1.04
 $1.53
Diluted earnings per limited partner unit:                    
Weighted average limited partner units outstanding 55,992
 55,828
 55,848
 55,847
 55,887
 55,886
 55,854
 55,378
 56,056
 55,847
Net income per limited partner unit $2.51
 $2.73
 $2.00
 $1.28
 $1.98
 $0.15
Net income (loss) per limited partner unit $(1.95) $(1.18) $1.04
 $1.52
The accompanying Notes to Unaudited Condensed Consolidated Financial Statements are an integral part of these statements.

4
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CEDAR FAIR, L.P.
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF PARTNERS’ EQUITY
FOR THE NINETHREE MONTHS ENDED SEPTEMBER 30, 2012MARCH 31, 2013
(In thousands)

Nine months endedThree months ended
9/30/123/31/13
Limited Partnership Units Outstanding  
Beginning balance55,346
55,618
Limited partnership unit options exercised15
1
Issuance of limited partnership units as compensation158
93
55,519
55,712
Limited Partners’ Equity  
Beginning balance$165,518
$177,660
Net income111,594
Partnership distribution declared ($1.20 per limited partnership unit)(66,565)
Net loss(109,125)
Partnership distribution declared ($0.625 per limited partnership unit)(34,820)
Expense recognized for limited partnership unit options304
235
Limited partnership unit options exercised28
Tax effect of units involved in option exercises and treasury unit transactions(454)(127)
Issuance of limited partnership units as compensation2,400
2,699
212,797
36,550
General Partner’s Equity  
Beginning balance—
1
Net income1
Net loss(1)
1
—
Special L.P. Interests5,290
5,290
Accumulated Other Comprehensive Income (Loss)  
Cumulative foreign currency translation adjustment:  
Beginning balance(3,120)(2,751)
Current period activity, net of tax $718(1,251)
Current period activity, net of tax ($175)301
(4,371)(2,450)
Unrealized loss on cash flow hedging derivatives:  
Beginning balance(25,888)(25,749)
Current period activity, net of tax $126(1,798)
Current period activity, net of tax ($1,554)8,885
(27,686)(16,864)
(32,057)(19,314)
Total Partners’ Equity$186,031
$22,526






The accompanying Notes to Unaudited Condensed Consolidated Financial Statements are an integral part of this statement.


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CEDAR FAIR, L.P.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)

 Nine months ended Twelve months ended Three months ended Twelve months ended
 9/30/2012 9/25/2011 9/30/2012 9/25/2011 3/31/2013 3/25/2012 3/31/2013 3/25/2012
CASH FLOWS FROM (FOR) OPERATING ACTIVITIES           (As restated)   (As restated)
Net income $111,595
 71,574
 $110,767
 $8,116
Adjustments to reconcile net income to net cash from (for) operating activities:        
Net income (loss) $(109,126) (65,415) $58,145
 $84,807
Adjustments to reconcile net income (loss) to net cash from (for) operating activities:        
Depreciation and amortization 113,156
 110,857
 128,136
 126,382
 4,786
 4,079
 127,013
 125,892
Loss on impairment of goodwill and other intangibles —
 —
 —
 903
Loss on early debt extinguishment 34,573
 —
 34,573
 —
Loss on impairment / retirement of fixed assets, net 24,230
 1,076
 25,719
 63,509
 600
 92
 30,844
 11,251
Gain on sale of other assets —
 —
 (6,625) —
Net effect of swaps (1,318) (3,507) (10,930) 1,772
 9,211
 (970) 8,689
 (15,976)
Non-cash (income) expense (3,006) 20,933
 (608) 14,562
 13,867
 (3,109) 22,127
 25,240
Net change in working capital 23,243
 30,463
 7,940
 10,604
 7,057
 (12,228) 18,152
 (9,337)
Net change in other assets/liabilities 8,844
 (9,031) 11,530
 (31,624) (29,635) (4,381) 5,029
 (1,348)
Net cash from operating activities 276,744
 222,365
 272,554
 194,224
Net cash from (for) operating activities (68,667) (81,932) 297,947
 220,529
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES                
Sale of other assets 1,173
 —
 1,173
 —
 —
 —
 16,058
 —
Capital expenditures (75,810) (72,880) (93,120) (84,914) (35,829) (27,468) (103,262) (97,355)
Net cash for investing activities (74,637) (72,880) (91,947) (84,914) (35,829) (27,468) (87,204) (97,355)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES                
Net payments on revolving credit loans —
 (23,200) —
 —
Net borrowings (payments) on revolving credit loans 96,000
 155,004
 (59,004) 27,890
Term debt borrowings —
 22,938
 —
 22,938
 630,000
 —
 630,000
 —
Note borrowings 500,000
 —
 500,000
 —
Derivative settlement (50,450) —
 (50,450) —
 —
 (50,450) —
 (50,450)
Term debt payments, including early termination penalties (25,000) (23,900) (25,000) (41,838) (1,131,100) —
 (1,156,100) (23,900)
Distributions paid to partners (66,565) (16,604) (105,308) (30,438) (34,820) (22,151) (101,482) (73,070)
Exercise of limited partnership unit options 47
 —
 53
 7
 28
 48
 57
 53
Payment of debt issuance costs —
 (20,490) (723) (22,757) (23,491) —
 (23,491) (723)
Excess tax benefit from unit-based compensation expense (454) —
 (454) —
 (127) (437) 1,519
 (437)
Net cash for financing activities (142,422) (61,256) (181,882) (72,088)
Net cash from (for) financing activities 36,490
 82,014
 (208,501) (120,637)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 893
 (1,682) 1,065
 (2,611) (786) (819) 477
 (2,473)
CASH AND CASH EQUIVALENTS                
Net increase (decrease) for the period 60,578
 86,547
 (210) 34,611
 (68,792) (28,205) 2,719
 64
Balance, beginning of period 35,524
 9,765
 96,312
 61,701
 78,830
 35,524
 7,319
 7,255
Balance, end of period $96,102
 $96,312
 $96,102
 $96,312
 $10,038
 $7,319
 $10,038
 $7,319
SUPPLEMENTAL INFORMATION                
Cash payments for interest expense $86,018
 $124,875
 $114,470
 $165,480
 $31,291
 $30,471
 $102,703
 $139,126
Interest capitalized 1,984
 868
 2,951
 1,011
 516
 752
 1,086
 2,188
Cash payments for income taxes 8,761
 6,020
 8,876
 8,763
Cash payments for income taxes, net of refunds 1,952
 138
 3,597
 6,207
The accompanying Notes to Unaudited Condensed Consolidated Financial Statements are an integral part of these statements.

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CEDAR FAIR, L.P.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIODS ENDED SEPTEMBER 30, 2012MARCH 31, 2013 AND SEPTEMBERMARCH 25, 20112012
The accompanying unaudited condensed consolidated financial statements have been prepared from the financial records of Cedar Fair, L.P. (the Partnership) without audit and reflect all adjustments which are, in the opinion of management, necessary to fairly present the results of the interim periods covered in this report.
Due to the highly seasonal nature of the Partnership’s amusement and water park operations, the results for any interim period are not indicative of the results to be expected for the full fiscal year. Accordingly, the Partnership has elected to present financial information regarding operations and cash flows for the preceding fiscal twelve-month periods ended September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012 to accompany the quarterly results. Because amounts for the fiscal twelve months ended September 30, 2012March 31, 2013 include actual 20112012 season operating results, they may not be indicative of 20122013 full calendar year operations. Additionally, the nine and twelve month fiscal periods for 2012 include an additional weekend of operations compared with the nine and twelve month periods for 2011.

(1) Significant Accounting and Reporting Policies:
The Partnership’s unaudited condensed consolidated financial statements for the periods ended September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012 included in this Form 10-Q report have been prepared in accordance with the accounting policies described in the Notes to Consolidated Financial Statements for the year ended December 31, 20112012, which were included in the Form 10-K10-K/A filed on February 29, 2012.May 10, 2013. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the Commission). These financial statements should be read in conjunction with the financial statements and the notes thereto included in the Form 10-K10-K/A referred to above.
Property and Equipment
Property and equipment are recorded at cost. Expenditures made to maintain such assets in their original operating condition are expensed as incurred, and improvements and upgrades are generally capitalized. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets. The unit method is used for all individual assets.
Change in Depreciation Method
Effective January 1, 2013, the Partnership changed its method of depreciation for the group of assets acquired as a whole in 1983, as well as for the groups of like assets of each subsequent business acquisition from the composite method to the unit method.
Historically, the Partnership had used the composite depreciation method for land improvements, buildings, rides and equipment for the group of assets acquired as a whole in 1983, as well as for the group of like assets of each subsequent business acquisition. The unit method was only used for all individual assets purchased. Under the composite depreciation method, assets with similar estimated lives are grouped together and the several pools of assets are depreciated on an aggregate basis. No gain or loss is recognized on normal retirements of composite assets. Instead, the net book value of a retired asset reduces accumulated depreciation for the composite group. Unusual retirements of composite assets could result in the recognition of a gain or loss. Under the unit method of depreciation, individual assets are depreciated over their estimated useful lives, with gains and losses on all asset retirements recognized currently in income.
In order to improve comparability and enhance the level of precision associated with allocating historical cost, the Partnership had determined that it was preferable to change from the composite method of depreciation to the unit method of depreciation for all assets. The Partnership believes that pursuant to generally accepted accounting principles, changing from the composite method of depreciation to the unit method of depreciation is a change in accounting estimate that is effected by a change in accounting principle, which should be accounted for prospectively. This prospective application resulted in the discontinuance of the composite method of depreciation for all prior acquisitions with the existing net book value of each composite pool allocated to the remaining individual assets (units) in that pool with each unit assigned an appropriate remaining useful life on an individual unit basis. Assigning a useful life to each unit in the various composite pools had an insignificant effect on the weighted average useful lives of all assets that were previously accounted for under the composite method.
The change in depreciation method had an immaterial impact on the Condensed Consolidated Financial Statements for the quarter ended March 31, 2013.Future asset retirements could have a material impact on the Condensed Consolidated Financial Statements in the periods such items occur.




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New Accounting Pronouncements

In January 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities,” which clarifies that ordinary trade receivables and receivables are not in the scope of Accounting Standards Update 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. Specifically, Update 2011-11 applies only to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with specific criteria contained in the FASB Codification or subject to a master netting arrangement or similar agreement. We adopted this guidance during the first quarter of 2013 and it did not impact the Partnership's consolidated financial statements.

In February 2013, the FASB issued ASU 2013-02, “Comprehensive Income - Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income,” which requires an entity to present information about significant items reclassified out of Accumulated Other Comprehensive Income by component either on the face of the statement where net income is presented or as a separate disclosure in the notes to the financial statements. We adopted this guidance during the first quarter of 2013 and it did not impact the Partnership's consolidated financial statements. The Partnership has elected to present movements out of OCI via an additional disclosure in the notes to the consolidated financial statements.

In February 2013, the FASB issued ASU 2013-04, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date,” which requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, as the sum of the following:

The amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors
Any additional amount the reporting entity expects to pay on behalf of its co-obligors

The guidance in this Update also requires an entity to disclose the nature and amount of the obligation as other information about those obligations.

The amendments in the Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013, however early adoption is permitted. We do not anticipate this guidance having a material impact on the Partnership's consolidated financial statements.

In March 2013, the FASB issued ASU 2013-05, “Parent's Accounting for CTA upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity.” When a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity, the parent is required to apply the guidance in Subtopic 830-30 to release any related cumulative translation adjustment (CTA) into net income. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided.

Additionally, the amendments in this Update clarify that the sale of an investment in a foreign entity includes both events that result in the loss of a controlling financial interest in a foreign entity and events that result in an acquirer obtaining control of an acquiree in which it held an equity interest immediately before the acquisition date (sometimes also referred to as a step acquisition). Accordingly, the CTA adjustment should be released into net income upon the occurrence of those events.

The amendments in the Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013, however early adoption is permitted. We do not anticipate this guidance having a material impact on the Partnership's consolidated financial statements.

(2) Interim Reporting:
The Partnership owns and operates eleven amusement parks, sixfour separately gated outdoor water parks, one indoor water park and five hotels. Virtually all of the Partnership’s revenues from its seasonal amusement parks, as well as its outdoor water parks and other seasonal resort facilities, are realized during a 130- to 140-day operating period beginning in early May, with the major portion concentrated in the third quarter during the peak vacation months of July and August. Knott's Berry Farm is open daily on a year-round basis. Castaway Bay is generally open daily from Memorial Day to Labor Day, plus a limited daily schedule for the balance of the year.

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To assure that these highly seasonal operations will not result in misleading comparisons of current and subsequent interim periods, the Partnership has adopted the following accounting and reporting procedures for its seasonal parks: (a) revenues on multi-day admission tickets are recognized over the estimated number of visits expected for each type of ticket and are adjusted periodically during the season, (b) depreciation, advertising and certain seasonal operating costs are expensed during each park’s operating season, including certain costs incurred prior to the season which are amortized over the season, and (c) all other costs are expensed as incurred or ratably over the entire year.

(3) Long-Lived Assets:
Long-lived assets are reviewed for impairment upon the occurrence of events or changes in circumstances that would indicate that the carrying value of the assets may not be recoverable. In order to determine if an asset has been impaired, assets are grouped and tested at the lowest level for which identifiable, independent cash flows are available. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include, among others: a significant decline in expected future cash flows; a sustained, significant decline in equity price and market capitalization; a significant adverse change in legal factors or in the business climate; unanticipated competition; and slower growth rates. Any adverse change in these factors could have a significant impact on the recoverability of these assets and could have a material impact on our consolidated financial statements.

The long-lived operating asset impairment test involves a two-step process. The first step is a comparison of each asset group's carrying value to its estimated undiscounted future cash flows expected to result from the use of the assets, including disposition. Projected future cash flows reflect management's best estimates of economic and market conditions over the projected period, including growth rates in revenues and costs, estimates of future expected changes in operating margins and cash expenditures. Other significant estimates and assumptions include terminal value growth rates and future estimates of capital expenditures. If the carrying value of the asset group is higher than its undiscounted future cash flows, there is an indication that impairment exists and the second step must be performed to measure the amount of impairment loss. The amount of impairment is determined by comparing the implied fair value of the asset group to its carrying value in a manner consistent with the highest and best use of those assets.

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The Partnership estimates fair value of operating assets using an income, market, and/or cost approach. The income approach which uses an asset group's projection of estimated operating results and cash flows that is discounted using a weighted-average cost of capital reflective of current market conditions. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The cost approach is based on the amount currently required to replace the service capacity of an asset adjusted for obsolescence. If the implied fair value of the assets is less than their carrying value, an impairment charge is recorded for the difference.

Non-operating assets are evaluated for impairment based on changes in market conditions. When changes in market conditions are observed, impairment is estimated using a market-based approach. If the estimated fair value of the non-operating assets is less than their carrying value, an impairment charge is recorded for the difference.

At the end of the third quarter of 2012, the Partnership concluded based on 2012 operating results through the third quarter and updated forecasts, that a review of the carrying value of operating long-lived assets at Wildwater Kingdom was warranted. After performing its review, the Partnership determined that a portion of the park's fixed assets were impaired. Also, at the end of the third quarter of 2012, the Partnership concluded that market conditions had changed on the adjacent non-operating land of Wildwater Kingdom. After performing its review of the updated market value of the land, the Partnership determined the land was impaired. The Partnership recognized a total of $25.0 million of fixed-asset impairment during the third quarter of 2012 which was recorded in "Loss on impairment / retirement of fixed assets, net" on the condensed consolidated statement of operations.

At the end of the fourth quarter of 2010, the Partnership concluded based on 2010 operating results, as well as updated forecasts, that a review of the carrying value of long-lived assets at California's Great America was warranted. After performing its review, the Partnership determined that a portion of the park's fixed assets, the majority of which were originally recorded with the Paramount Parks (PPI) acquisition, were impaired. As a result, the Partnership recognized $62.0 million of fixed-asset impairment during the fourth quarter of 2010 which was recorded in "Loss on impairment / retirement of fixed assets, net" on the condensed consolidated statement of operations. There has been no subsequent impairment on these assets.

(4) Goodwill and Other Intangible Assets:
In accordance with the applicable accounting rules, goodwill is not amortized, but, along with indefinite-lived trade-names, is evaluated for impairment on an annual basis or more frequently if indicators of impairment exist. Until December 2010, goodwill related to parks acquired prior to 2006 was tested annually for impairment as of October 1, while goodwill and other indefinite-lived intangibles, including trade-name intangibles, related to the PPI acquisition in 2006 were tested annually for impairment as of April 1. Effective in December 2010, the Partnership changed the date of itsThe Partnership's annual goodwill impairment tests from April 1 and October 1 to December 31 to more closely align the impairment testing procedures with its long-range planning and forecasting process, which occurs in the fourth quarter each year. The Partnership believes the change was preferable since the long-term cash flow projections are a key component in performing its annual impairment tests of goodwill. In addition, the Partnership changed the date of its annual impairment test for other indefinite-lived intangibles from April 1 to December 31.

During 2010, the Partnership tested goodwill for impairment as of April 1, 2010 or October 1, 2010, as applicable, and again as of December 31, 2010. The tests indicated no impairment of goodwill as of any of those dates. During 2010, the Partnership tested other indefinite-lived intangibles for impairment as of April 1, 2010 and December 31, 2010. After performing the December 31, 2010 test of indefinite-lived intangibles, it was determined that a portion of the trade-names at California's Great America, originally recorded with the PPI acquisition, were impaired. As a result, the Partnership recognized $0.9 million of additional trade-name impairment during the fourth quarter of 2010 which was recorded in "Loss on impairment of goodwill and other intangibles" on the consolidated statement of operations.

The change in accounting principle related to changing the annual goodwill impairment testing date did not delay, accelerate, avoid or cause an impairment charge. As it was impracticable to objectively determine operating and valuation estimates for periods prior tois December 31, 2010, the Partnership has prospectively applied the change in the annual goodwill impairment testing date from December 31, 2010.31.

The Partnership tested goodwill and other indefinite-lived intangibles for impairment on December 31, 20112012 and no impairment was indicated. In September 2011, the Financial Accounting Standards Board (FASB)FASB issued Accounting Standards UpdateASU 2011-08, “Intangibles — Goodwill and Other,” which gives an entity the option to first assess qualitative factors to determine whether it is necessary to perform the current two-step goodwill impairment test. If an entity believes, as a result of its qualitative assessment, that it is more likely than not that the fair value of a reporting

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unit is less than its carrying amount, the two-step goodwill impairment test is required. We adopted this guidance during the first quarter of 2012 and it did not impact the Partnership's consolidated financial statements.


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In July 2012, the FASB issued ASU 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment,” which allows an entity the option to first assess qualitatively whether it is more-likely-than-not that an indefinite-lived intangible asset is impaired, thus necessitating that it perform the quantitative impairment test. An entity is not required to calculate the fair value of an indefinite-lived intangible asset and perform the quantitative impairment test unless the entity determines that it is more likely than not that the asset is impaired. The revised standard is effective for annual impairment testing performed for fiscal years beginning after September 15, 2012, however early adoption is permitted. We do not anticipateadopted this guidance having a materialduring the third quarter of 2012 and it did not impact on the Partnership's consolidated financial statements.
A summary of changes in the Partnership’s carrying value of goodwill for the ninethree months ended September 30, 2012March 31, 2013 is as follows:

(In thousands) 
Goodwill
(gross)
 
Accumulated
Impairment
Losses
 
Goodwill
(net)
 
Goodwill
(gross)
 
Accumulated
Impairment
Losses
 
Goodwill
(net)
Balance at December 31, 2011 $323,358
 $(79,868) $243,490
Balance at December 31, 2012 $326,089
 $(79,868) $246,221
Foreign currency translation 4,173
 —
 4,173
 (2,568) —
 (2,568)
September 30, 2012 $327,531
 $(79,868) $247,663
March 31, 2013 $323,521
 $(79,868) $243,653
            
At September 30, 2012March 31, 2013, December 31, 2011,2012, and SeptemberMarch 25, 20112012 the Partnership’s other intangible assets consisted of the following:
September 30, 2012 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Value
March 31, 2013 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Value
(In thousands)            
Other intangible assets:            
Trade names $40,425
 $—
 $40,425
 $39,858
 $—
 $39,858
License / franchise agreements 790
 350
 440
 834
 369
 465
Total other intangible assets $41,215
 $350
 $40,865
 $40,692
 $369
 $40,323
            
December 31, 2011      
December 31, 2012      
(In thousands)            
Other intangible assets:            
Trade names $39,835
 $—
 $39,835
 $40,222
 $—
 $40,222
License / franchise agreements 760
 322
 438
 790
 360
 430
Total other intangible assets $40,595
 $322
 $40,273
 $41,012
 $360
 $40,652
            
September 25, 2011      
March 25, 2012      
(In thousands)            
Other intangible assets:            
Trade names $39,645
 $—
 $39,645
 $40,163
 $—
 $40,163
License / franchise agreements 734
 312
 422
 775
 331
 444
Non-compete agreements 200
 200
 —
Total other intangible assets $40,579
 $512
 $40,067
 $40,938
 $331
 $40,607
Amortization expense of other intangible assets for the ninethree months ended September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012 was $29,0009,000 and $49,0009,000, respectively. The estimated amortization expense for the remainder of 20122013 is $10,00027,000. Estimated amortization expense is expected to total less than $50,000 in each year from 20122013 through 2015.2017.







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(5) Long-Term Debt:

In July 2010, the Partnership issued $405 million of 9.125% senior unsecured notes, maturing in 2018, in a private placement, including $5.6 million of Original Issue Discount ("OID") to yield 9.375%. Concurrently with this offering, the Partnership entered into a new $1,435 million credit agreement (the "2010 Credit Agreement”), which included a $1,175 million senior secured term loan facility and a $260 million senior secured revolving credit facility. The net proceeds from the offering of the notes, along with borrowings under the 2010 Credit Agreement, were used to repay in full all amounts outstanding under the previous credit

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facilities. The facilities provided under the 2010 Credit Agreement arewere collateralized by substantially all of the assets of the Partnership.

Terms of the 2010 Credit Agreement included a revolving credit facility of a combined $260 million. Under the 2010 Credit Agreement, the Canadian portion of the revolving credit facility has a limit of $15 million. U.S. denominated loans made under the revolving credit facility bear interest at a rate of LIBOR plus 400 basis points (bps) (with no LIBOR floor). Canadian denominated loans made under the Canadian portion of the facility also bear interest at a rate of LIBOR plus 400 bps (with no LIBOR floor). The revolving credit facility, which matures in July 2015, also provides for the issuance of documentary and standby letters of credit. The Amended 2010 Credit Agreement requires the Partnership to pay a commitment fee of 50 bps per annum on the unused portion of the credit facilities.

In February 2011, the Partnership amended the 2010 Credit Agreement (as so amended, the “Amended 2010 Credit Agreement”) and extended the maturity date of the term loan portion of the credit facilities by one year. The extended U.S. term loan, matures in December 2017 and bears interest at a rate of LIBOR plus 300 bps, with a LIBOR floor of 100 bps. In May 2012, the Partnership prepaid $16.0 million of long-term debt to meet its obligation under the Excess Cash Flow ("ECF") provision of the Credit Agreement. As a result of this prepayment as well as the August 2011 $18.0 million debt prepayment and a $9.0 million optional prepayment made in September 2012, the Partnership has no scheduled term-debt principal payments until the first quarter of 2015.

The Amended 2010 Credit Agreement requires the Partnership to maintain specified financial ratios, which if breached for any reason, including a decline in operating results, could result in an event of default under the agreement. The most critical of these ratios is the Consolidated Leverage Ratio which is measured on a trailing-twelve month quarterly basis. The Consolidated Leverage Ratio is set at 6.0x consolidated total debt- (excluding the revolving debt) to-Consolidated EBITDA and will remain at that level through the end of the third quarter in 2013, and the ratio will decrease further each fourth quarter beginning with the fourth quarter of 2013. As of September 30, 2012, the Partnership’s Consolidated Leverage Ratio was 3.89x, providing $138.3 million of consolidated EBITDA cushion on the ratio as of the end of the third quarter. The Partnership was in compliance with all other covenants under the Amended 2010 Credit Agreement as of September 30, 2012.

The Partnership's $405 million of senior unsecured notes pay interest semi-annually in February and August, with the principal due in full on August 1, 2018. The notes may be redeemed, in whole or in part, at any time prior to August 1, 2014 at a price equal to 100% of the principal amount of the notes redeemed plus a “make-whole” premium together with accrued and unpaid interest, if any, to the redemption date. Thereafter, the notes may be redeemed, in whole or in part, at various prices depending on the date redeemed. Prior to August 1, 2013, up to 35% of the notes may be redeemed with the net cash proceeds of certain equity offerings at 109.125%.

Terms of the 2010 Credit Agreement included a revolving credit facility of a combined $260 million. Under the 2010 Credit Agreement, the Canadian portion of the revolving credit facility had a limit of $15 million. U.S. denominated loans made under the revolving credit facility bore interest at a rate of LIBOR plus 400 basis points (bps) (with no LIBOR floor). Canadian denominated loans made under the Canadian portion of the facility bore interest at a rate of LIBOR plus 400 bps (with no LIBOR floor). The revolving credit facility, which was scheduled to mature in July 2015, also provided for the issuance of documentary and standby letters of credit. The Amended 2010 Credit Agreement required the Partnership to pay a commitment fee of 50 bps per annum on the unused portion of the credit facilities.

In February 2011, the Partnership amended the 2010 Credit Agreement (as so amended, the “Amended 2010 Credit Agreement”) and extended the maturity date of the term loan portion of the credit facilities by one year. The extended U.S. term loan was scheduled to mature in December 2017 and bore interest at a rate of LIBOR plus 300 bps, with a LIBOR floor of 100 bps.

In March 2013, the Partnership issued $500 million of 5.25% senior unsecured notes, maturing in 2021, in a private placement, with no OID. Concurrently with this offering, the Partnership entered into a new $885 million credit agreement (the "2013 Credit Agreement"), which included a $630 million senior secured term loan facility and a $255 million senior secured revolving credit facility. The terms of the senior secured term loan facility include a maturity date of March 6, 2020 and bear interest at a rate of LIBOR plus 250 bps with a LIBOR floor of 75 bps. The term loan amortizes at $6.3 million annually. The net proceeds from the notes and borrowings under the 2013 Credit Agreement were used to repay in full all amounts outstanding under the previous credit facilities. The facilities provided under the 2013 Credit Agreement are collateralized by substantially all of the assets of the Partnership.

Terms of the 2013 Credit Agreement include a revolving credit facility of a combined $255 million. Under the 2013 Credit Agreement, the Canadian portion of the revolving credit facility has a sub-limit of $15 million. U.S. denominated and Canadian denominated loans made under the revolving credit facility bear interest at a rate of LIBOR plus 225 bps (with no LIBOR floor). The revolving credit facility is scheduled to mature in March 2018 and also provides for the issuance of documentary and standby letters of credit. The 2013 Credit Agreement requires the Partnership to pay a commitment fee of 50 bps per annum on the unused portion of the credit facilities.

The 2013 Credit Agreement requires the Partnership to maintain specified financial ratios, which if breached for any reason, including a decline in operating results, could result in an event of default under the agreement. The most restrictive of these ratios is the Consolidated Leverage Ratio which is measured quarterly on a trailing-twelve month basis. The Consolidated Leverage Ratio is set at 6.25x consolidated total debt- (excluding the revolving debt) to-Consolidated EBITDA and will remain at that level through the end of the first quarter in 2014, and the ratio will decrease each second quarter beginning with the second quarter of 2014. As of March 31, 2013, the Partnership’s Consolidated Leverage Ratio was 3.89x, providing $148.2 million of consolidated EBITDA cushion on the ratio as of the end of the first quarter. The Partnership was in compliance with all other covenants under the 2013 Credit Agreement as of March 31, 2013.

The 2013 Credit Agreement also includes provisions that allow the Partnership to make restricted payments of up to $2060 million annually, so long as no default or event of default has occurred and is continuing. These restricted payments are not subject to any specific covenants. Additional restricted payments are allowed to be made based on an Excess-Cash-Flow formula, should the Partnership’s pro-forma Consolidated Leverage Ratio be less than or equal to 4.505.00x. Per the terms of the indenture governing the Partnership's notes maturing in 2018, which is more restrictive than the indenture governing the Partnership's notes maturing in 2021, the ability to make restricted payments in 20122013 and beyond is permitted should the Partnership's trailing-twelve-month Total-Indebtedness-to-Consolidated-Cash-Flow Ratio be less than or equal to 4.75x, measured on a quarterly basis.

In additionThe Partnership's $500 million of senior unsecured notes pay interest semi-annually in March and September, with the principal due in full on March 15, 2021. The notes may be redeemed, in whole or in part, at any time prior to March 15, 2016 at a price equal to 100% of the principal amount of the notes redeemed plus a “make-whole” premium together with accrued and unpaid interest, if any, to the above, among other covenants and provisions,redemption date. Thereafter, the Amended 2010 Credit Agreement contains an initial three-year requirement (from July 2010) thatnotes may be redeemed, in whole or in part, at leastvarious prices depending on

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the date redeemed. Prior to 50%March 15, 2016, up to 35% of our aggregate termthe notes may be redeemed with the net cash proceeds of certain equity offerings at 105.25%.

As market conditions warrant, the Partnership may from time to time repurchase debt and senior notes be subject to either a fixed interest ratesecurities issued by the Partnership, in privately negotiated or interest rate protection.open market transactions, by tender offer, exchange offer or otherwise.

(6) Derivative Financial Instruments:
Derivative financial instruments are only used within the Partnership’s overall risk management program to manage certain interest rate and foreign currency risks from time to time. The Partnership does not use derivative financial instruments for trading purposes.

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The Partnership had effectively converted a total of $1.0 billion of its variable-rate debt to fixed rates through the use of several interest rate swap agreements through October 1, 2011. Cash flows related to these interest rate swap agreements were included in interest expense over the term of the agreements. These interest rate swap agreements expired in October 2011. The Partnership had designated all of these interest rate swap agreements and hedging relationships as cash flow hedges.
In order to maintain fixed interest costs on a portion of its domestic term debt beyond the expiration of the swaps entered into in 2006 and 2007, in September 2010 the Partnership entered into several forward-starting swap agreements ("September 2010 swaps") to effectively convert a total of $600 million of variable-rate debt to fixed rates beginning in October 2011. As a result of the February 2011 amendment to the 2010 Credit Agreement, the LIBOR floor on the term loan portion of its credit facilities decreased to 100 bps from 150 bps, causing a mismatch in critical terms of the September 2010 swaps and the underlying debt. Because of the mismatch of critical terms, the Partnership determined the September 2010 swaps, which were originally designated as cash flow hedges, were no longer highly effective, resulting in the de-designation of the swaps as of the end of February 2011. As a result of this ineffectiveness, gains of $7.2 million recorded in accumulated other comprehensive income (AOCI) through the date of de-designation are being amortized through December 2015, to a balance of $3.9 million to offset the change in fair value during the period of de-designation as discussed below. Of the $6.1 million remaining in AOCI as of September 30, 2012, $2.2 million has yet to be amortized.2015.
In March 2011, the Partnership entered into several additional forward-starting basis-rate swap agreements ("March 2011 swaps") that, when combined with the September 2010 swaps, effectively converted $600 million of variable-rate debt to fixed rates beginning in October 2011. The September 2010 swaps and the March 2011 swaps, which have beenwere jointly designated as cash flow hedges, maturematuring in December 2015 and fixhad fixed LIBOR at a weighted average rate of 2.46%. For the period that the September 2010 swaps were de-designated, their fair value decreased by $3.3 million, the offset of which was recognized as a direct charge to the Partnership's earnings and recorded to “Net effect of swaps” on the consolidated statement of operations along with the regular amortization of “Other comprehensive income (loss)” balances related to these swaps. No other ineffectiveness related to these swaps was recorded in any period presented.
In May 2011, the Partnership entered into four additional forward-starting basis-rate swap agreements ("May 2011 swaps") that effectively converted another $200 million of variable-rate debt to fixed rates beginning in October 2011. These swaps, which were designated as cash flow hedges, mature in December 2015 and fixfixed LIBOR at a weighted average rate of 2.54%.
As a result of the 2013 Credit Agreement, the previously described swaps were de-designated as the spreads of the 2013 Credit Agreement decreased to 75 bps from 100 bps in the Amended 2010 Credit Agreement. The May 2011 swaps remain de-designated as the amount of variable rate debt decreased to $630 million, and accordingly, the May 2011 swaps are now over hedged. On March 4, 2013, we entered into several forward-starting swap agreements ("March 2013 swaps") that were not designated as a cash flow hedge on that date. On March 6, 2013, the March 2013 swaps were combined with the September 2010 swaps and the March 2011 swaps, and designated as cash flow hedges, effectively converting $600 million of variable-rate debt to fixed rates. The September 2010 swaps, the March 2011 swaps, and the March 2013 swaps were jointly designated as cash flow hedges, mature in December 2015 and fix LIBOR at a weighted average rate of 2.331%. At the time of the de-designation, the fair market value of the September 2010 swaps, March 2011 swaps, and March 2013 swaps was $23.8 million, which will be amortized out of AOCI into expense in "Net effect of swaps" in the unaudited condensed consolidated statements of operations and comprehensive incomethrough December 2015. At the time of the de-designation, the fair market value of the May 2011 swaps was $7.8 million and was immediately recognized into expense in "Net effect of swaps" in the unaudited condensed consolidated statements of operations.
The fair market value of the September 2010 swaps, the March 2011 swaps, and the May 2011March 2013 swaps at September 30, 2012March 31, 2013 was a liability of $34.723.4 million, which was recorded in “Derivative Liability” on the condensed consolidated balance sheet. The May 2011 swaps had a fair market value of $7.6 million as of March 31, 2013 and was recorded in “Derivative Liability” on the condensed consolidated balance sheet.
In 2007, the Partnership entered into two cross-currency swap agreements, which effectively converted $268.7 million of term debt at the time, and the associated interest payments, related to its wholly owned Canadian subsidiary from variable U.S. dollar denominated debt to fixed-rate Canadian dollar denominated debt. The Partnership originally designated these cross-currency swaps as foreign currency cash flow hedges. Cash flows related to these swap agreements were included in interest expense over the term of the agreement. These swap agreements expired in February 2012.

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In May 2011 and July 2011, the Partnership entered into several foreign currency swap agreements to fix the exchange rate on approximately 75% of the termination payment associated with the cross-currency swap agreements that expired in February 2012. The Partnership did not seek hedge accounting treatment on these foreign currency swaps, and as such, changes in fair value of the swaps flowed directly through earnings along with changes in fair value on the related, de-designated cross-currency swaps. In February 2012, all of the cross-currency and related currency swap agreements were settled for $50.5 million.








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Fair Value of Derivative Instruments in Condensed Consolidated Balance Sheet:
(In thousands): 
Condensed Consolidated
Balance Sheet Location
 Fair Value as of Fair Value as of Fair Value as of 
Condensed Consolidated
Balance Sheet Location
 Fair Value as of Fair Value as of Fair Value as of
September 30, 2012 December 31, 2011 September 25, 2011March 31, 2013 December 31, 2012 March 25, 2012
Derivatives designated as hedging instruments:            
Interest rate swaps Current derivative liability $—
 $—
 $(4,797) Derivative Liability (23,388) (32,260) (32,280)
Interest rate swaps Derivative Liability (34,708) (32,400) (33,835)
Total derivatives designated as hedging instruments $(34,708) $(32,400) $(38,632) $(23,388) $(32,260) $(32,280)
Derivatives not designated as hedging instruments:            
Foreign currency swaps Current derivative liability $—
 $(13,155) $(16,846)
Cross-currency swaps Current derivative liability —
 (37,617) (37,723)
Interest rate swaps Derivative Liability $(7,643) $—
 $—
Total derivatives not designated as hedging instruments $—
 $(50,772) $(54,569) $(7,643) $—
 $—
Net derivative liability $(34,708) $(83,172) $(93,201) $(31,031) $(32,260) $(32,280)
 

The following table presents our September 2010 swaps, March 2011 swaps, and May 2011 swaps, and March 2013 swaps which became effective October 1, 2011 and mature December 15, 2015, along with their notional amounts and their fixed interest rates.
Interest Rate Swaps
(
 
The following table presents our fixed-rate swaps, which matured in October 2011, and the cross-currency swap which matured in February 2012, along with their notional amounts and their fixed interest rates:
($'s in thousands)Interest Rate Swaps Cross-currency Swaps
 Notional Amounts LIBOR Rate Notional Amounts Implied Interest Rate
 $200,000
 5.64% $255,000
 7.31%
 200,000
 5.64% 150
 9.50%
 200,000
 5.64%    
 200,000
 5.57%    
 100,000
 5.60%    
 100,000
 5.60%    
Total $'s / Average Rate$1,000,000
 5.62% $255,150
 7.31%
        



12

Effects of Derivative Instruments on Income (Loss) and Other Comprehensive Income (Loss) for the three-month periods ended September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012:
 
(In thousands): Amount of Gain (Loss) Recognized in  Accumulated OCI on Derivatives (Effective Portion) 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
 Amount of Gain (Loss) Recognized in  Accumulated OCI on Derivatives (Effective Portion) 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
Derivatives designated as
Cash Flow Hedging
Relationships
 Three months ended Three months ended Three months ended Three months ended Three months ended Three months ended Three months ended Three months ended Three months ended Three months ended Three months ended Three months ended
9/30/12 9/25/11   9/30/12 9/25/11   9/30/12 9/25/11 3/31/13 3/25/12   3/31/13 3/25/12   3/31/13 3/25/12
Interest rate swaps $438
 $(17,085) Interest Expense $(2,990) $—
 Net effect of swaps $—
 $15,396
 $2,266
 $120
 Interest Expense $(2,797) $(2,793) Net effect of swaps $435
 $—
                        

13

(In thousands): 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
Derivatives not designated as Cash Flow
Hedging Relationships
 Three months ended Three months ended Three months ended Three months ended
  9/30/12 9/25/11   3/31/13 3/25/12
Cross-currency swaps (1)
 Net effect of swaps $—
 $13,622
 Net effect of swaps $—
 $(4,999)
Foreign currency swaps
 Net effect of swaps —
 (13,210) Net effect of swaps —
 6,278
Interest rate swaps (2)
 Net effect of swaps (1,471) —
 $—
 $412
 $(1,471) $1,279
        
(1)The cross-currency swaps became ineffective and were de-designated in August 2009.
(2)The May 2011 interest rate swaps were de-designated in March 2013.
During the quarter ended September 30, 2012March 31, 2013, in addition to the $1.0 million loss recognized in income on the ineffective portion of derivatives and on the derivatives not designated as cash flow hedges (as noted in the tables above), $0.27.8 million of incomeexpense related to the write off of OCI balances on our May 2011 swaps and $0.4 million of expense representing the regular amortization of amounts in AOCI was recorded in the condensed consolidated statements of operations for the quarter. The effect of this amortizationthese amounts resulted in a benefitcharge to earnings of $0.29.2 million recorded in “Net effect of swaps.”

For the three-month period ended SeptemberMarch 25, 20112012, in addition to the $15.81.3 million gain recognized in income on the ineffective portion of derivatives noted in the tabletables above, $11.20.5 million of expense representing the amortization of amounts in AOCI for the swaps and $0.60.2 million of foreign currency lossgain in the quarter related to the U.S. dollar denominated Canadian term loan were recorded in “Net effect of swaps” in the condensed consolidated statements of operations. The net effect of these amounts resulted in a benefit to earnings of $4.0 million recorded in “Net effect of swaps.”

Effects of Derivative Instruments on Income (Loss) and Other Comprehensive Income (Loss) for the nine-month periods ended September 30, 2012 and September 25, 2011: 
(In thousands): Amount of Gain (Loss) Recognized in  Accumulated OCI on Derivatives (Effective Portion) 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
Derivatives designated as
Cash Flow Hedging
Relationships
 Nine months ended Nine months ended   Nine months ended Nine months ended   Nine months ended Nine months ended
 9/30/12 9/25/11   9/30/12 9/25/11   9/30/12 9/25/11
Interest rate swaps $(2,308) $(36,788) Interest Expense $(9,004) $—
 Net effect of swaps $—
 $43,190
                 

13


(In thousands): 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
Derivatives not designated as Cash Flow
Hedging Relationships
   Nine months ended Nine months ended
   9/30/12 9/25/11
Interest rate swaps (1)
 Net effect of swaps $—
 $(3,342)
Cross-currency swaps (2)
 Net effect of swaps (4,999) 15,582
Foreign currency swaps 
 Net effect of swaps 6,278
 (17,516)
    $1,279
 $(5,276)
       
(1)The September 2010 swaps became ineffective and were de-designated in February 2011.
(2)The cross-currency swaps became ineffective and were de-designated in August 2009.
For the nine-month period ended September 30, 2012, in addition to the $1.3 million of net gain recognized in income on the ineffective portion of derivatives and on the derivatives not designated as cash flow hedges (as noted in the tables above), $0.2 million of expense representing the regular amortization of amounts in AOCI for the swaps and $0.2 million of foreign currency gain in the period related to the U.S. dollar denominated Canadian term loan were recorded in the condensed consolidated statements of operations for the period. The net effect of these amounts resulted in a benefit to earnings for the period of $1.3 million recorded in “Net effect of swaps.”

For the nine-month period ended September 25, 2011, in addition to the $37.9 million gain recognized in income on the ineffective portion of derivatives noted in the table above, $33.9 million of expense representing the amortization of amounts in AOCI for the swaps and $0.5 million of foreign currency loss in the period related to the U.S. dollar denominated Canadian term loan were recorded in “Net effect of swaps” in the condensed consolidated statements of operations. The net effect of these amounts resulted in a benefit to earnings of $3.51.0 million recorded in “Net effect of swaps.”


Effects of Derivative Instruments on Income (Loss) and Other Comprehensive Income (Loss) for the twelve-month periods ended September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012:
(In thousands): 
Amount of Gain (Loss)
Recognized in Accumulated OCI on Derivatives
(Effective Portion)
 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
 
Amount of Gain (Loss)
Recognized in Accumulated OCI on Derivatives
(Effective Portion)
 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
Derivatives designated as
Cash Flow Hedging
Relationships
 Twelve months ended Twelve months ended Twelve months ended Twelve months ended Twelve months ended Twelve months ended Twelve months ended Twelve months ended Twelve months ended Twelve months ended Twelve months ended Twelve months ended
9/30/12 9/25/11   9/30/12 9/25/11   9/30/12 9/25/11 3/31/13 3/25/12   3/31/13 3/25/12   3/31/13 3/25/12
Interest rate swaps $(873) $(26,329) Interest Expense $(12,027) $—
 Net effect of swaps $4,797
 $54,613
 $2,286
 $(36,088) Interest Expense $(12,031) $(5,816) Net effect of swaps $435
 $33,493
                        

(In thousands): 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
Derivatives not designated as Cash Flow Hedging
Relationships
 Twelve months ended Twelve months ended Twelve months ended Twelve months ended
  9/30/12 9/25/11   3/31/13 3/25/12
Interest rate swaps (1)
 Net effect of swaps $—
 $(3,342)
Cross-currency swaps (2)
 Net effect of swaps (4,483) 10,016
Cross-currency swaps (1)
 Net effect of swaps —
 12,911
Foreign currency swaps Net effect of swaps 10,129
 (17,516) Net effect of swaps —
 (7,387)
Interest rate swaps (2)
 Net effect of swaps $(1,471) $—
 $5,646
 $(10,842) $(1,471) $5,524
        
(1)The September 2010 swaps became ineffective and were de-designated in February 2011.
(2)The cross-currency swaps became ineffective and were de-designated in August 2009.
(2)The May 2011 interest rate swaps were de-designated in March 2013.
In addition to the $10.41.0 million of gainloss recognized in income on the ineffective portion of derivatives and on the derivatives not designated as cash flow hedges (as noted in the tables above), $0.17.8 million of expense related to the write off of OCI balances on our May 2011 swaps and $192 thousand of income representing the amortization of amounts in AOCI for the swaps was recorded during the trailing twelve months ended March 31, 2013 in the condensed consolidated statements of operations. The net effect of these amounts resulted in expense for the trailing twelve month period of $8.7 million recorded in “Net effect of swaps.”

14

For the twelve month period ending March 25, 2012, in addition to the $39.0 million of gain recognized in income on the ineffective portion of derivatives noted in the tables above, $22.7 million of expense representing the amortization of amounts in AOCI for the swaps and a $0.40.3 million foreign currency gainloss in the twelve month period related to the U.S. dollar denominated Canadian term loan was recorded during the trailing twelve months ended September 30,March 25, 2012 in the condensed consolidated statements of operations. The net effect of these amounts resulted in a benefit to earnings for the trailing twelve month period of $10.9 million recorded in “Net effect of swaps.”
For the twelve month period ending September 25, 2011, in addition to the $43.8 million of gain recognized in income on the ineffective portion of derivatives noted in the table above, $45.5 million of expense representing the amortization of amounts in AOCI for the swaps and a $0.1 million foreign currency loss in the twelve month period related to the U.S. dollar denominated Canadian term loan was recorded during the trailing twelve months ended September 25, 2011 in the condensed consolidated statements of operations. The net effect of these amounts resulted in a charge to earnings for the trailing twelve month period of $1.816.0 million recorded in “Net effect of swaps.”
The amounts reclassified from AOCI into income for the periods noted above are in large partprimarily the result of the Partnership’s initial three-year requirement to swap at least 75% of its aggregate term debt to fixed rates under the terms of the Amended 2010 Credit Agreement.
 
(7) Fair Value Measurements:
The FASB Accounting Standards Codification (ASC) relating to fair value measurements emphasizes that fair value is a market-based measurement that should be determined based on assumptions (inputs) that market participants would use in pricing an asset or liability. Inputs may be observable or unobservable, and valuation techniques used to measure fair value should maximize the use of relevant observable inputs and minimize the use of unobservable inputs. Accordingly, the FASB’s ASC establishes a hierarchal disclosure framework that ranks the quality and reliability of information used to determine fair values. The hierarchy is associated with the level of pricing observability utilized in measuring fair value and defines three levels of inputs to the fair value measurement process—quoted prices are the most reliable valuation inputs, whereas model values that include inputs based on unobservable data are the least reliable. Each fair value measurement must be assigned to a level corresponding to the lowest level input that is significant to the fair value measurement in its entirety.
The three broad levels of inputs defined by the fair value hierarchy are as follows:
 
Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
 
Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
 
Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement.
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

















15

The table below presents the balances of assets and liabilities measured at fair value as of September 30, 2012March 31, 2013, December 31, 2011,2012, and SeptemberMarch 25, 20112012 on a recurring basis:
 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3
September 30, 2012        
March 31, 2013        
(In thousands)                
Interest rate swap agreements (1)
 $(23,388) $—
 $(23,388) $—
Interest rate swap agreements (2)
 (7,643) —
 (7,643) —
Net derivative liability $(31,031) $—
 $(31,031) $—
        
December 31, 2012        
Interest rate swap agreements (1)
 $(34,708) $—
 $(34,708) $—
 $(32,260) $—
 $(32,260) $—
Net derivative liability $(34,708) $—
 $(34,708) $—
 $(32,260) $—
 $(32,260) $—
                
December 31, 2011        
March 25, 2012        
Interest rate swap agreements (1)
 $(32,400) $—
 $(32,400) $—
 $(32,280) $—
 $(32,280) $—
Cross-currency swap agreements (2)
 (37,617) —
 (37,617) —
Foreign currency swap agreements (2)
 (13,155) —
 (13,155) —
Net derivative liability $(83,172) $—
 $(83,172) $—
 $(32,280) $—
 $(32,280) $—
        
September 25, 2011        
Interest rate swap agreements (1)
 $(33,835) $—
 $(33,835) $—
Interest rate swap agreements (2)
 (4,797) —
 (4,797) —
Cross-currency swap agreements (2)
 (37,723) —
 (37,723) —
Foreign currency swap agreements (2)
 (16,846) —
 (16,846) —
Net derivative liability $(93,201) $—
 $(93,201) $—
(1)IncludedDesignated as cash flow hedges and are included in “Derivative Liability” on the Unaudited Condensed Consolidated Balance Sheet
(2)IncludedNot designated as cash flow hedges and are included in "Current derivative liability""Derivative Liability" on the Unaudited Condensed Consolidated Balance Sheet
Fair values of the interest rate cross-currency and foreign currency swap agreements are determined using significant inputs, including the LIBOR and foreign currency forward curves, that are considered Level 2 observable market inputs. In addition, the Partnership considered the effect of its credit and non-performance risk on the fair values provided, and recognized an adjustment decreasing the net derivative liability by approximately $1.10.9 million as of September 30, 2012March 31, 2013.
There were no assets measured at fair value on a non-recurring basis at September 30, 2012March 31, 2013, December 31, 2011, or SeptemberMarch 25, 20112012, except for as described below.
At the end of the third quarter in 2012, the Partnership concluded based on operating results, as well as updated forecasts, and changes in market conditions, that a review of the carrying value of long-lived assets at Wildwater Kingdom was warranted. After performing its review, the Partnership determined that a portion of the park's fixed assets were impaired. Based on Level 3 unobservable valuation assumptions and other market inputs, the assets were marked to a fair value of $19.8 million, resulting in an impairment charge of $25.0 million during the quarter.
In 2010, the Partnership concluded based on operating results, as well as updated forecasts, that a review of the carrying value of long-lived assets at California's Great America was warranted. After performing its review, the Partnership determined that a portion of the park's fixed assets, the majority of which were originally recorded with the PPI acquisition, were impaired. As a result, it recognized $62.0 million of fixed-asset impairment during the fourth quarter of 2010.

After completing its 2010 annual review of indefinite-lived intangibles for impairment, the Partnership concluded that a portion of trade-names originally recorded with the PPI acquisition were impaired. As a result, the Partnership recognized approximately $0.9 million of trade-name impairment during the fourth quarter of 2010. A relief-from-royalty model is used to determine whether the fair value of trade-names exceeds their carrying amount. The fair value of the trade-names is determined as the present value of fees avoided by owning the respective trade-name.
The fair value of term debt at September 30, 2012March 31, 2013 was approximately $1,125.7637.1 million based on borrowing rates currently available to the Partnership on long-term debt with similar terms and average maturities. The fair value of the Partnership's notes at September 30, 2012March 31, 2013 was approximately $352.6950.1 million based on borrowing rates availablepublic trading levels as of that date to the Partnership on notes with similar terms and maturities.date. The fair value of the term debt was based on Level 2 inputs and the notes were based on Level 21 inputs.





16

(8) Earnings per Unit:
Net income (loss) per limited partner unit is calculated based on the following unit amounts:
 Three months ended Nine months ended Twelve months ended Three months ended Twelve months ended
 9/30/2012 9/25/2011 9/30/2012 9/25/2011 9/30/2012 9/25/2011 3/31/2013 3/25/2012 3/31/2013 3/25/2012
 (In thousands except per unit amounts) (In thousands except per unit amounts)
Basic weighted average units outstanding 55,611
 55,346
 55,473
 55,345
 55,440
 55,342
 55,854
 55,378
 55,694
 55,353
Effect of dilutive units:                    
Unit options and restricted unit awards 45
 —
 42
 —
 31
 —
 —
 —
 63
 2
Phantom units 336
 482
 333
 502
 416
 544
 —
 —
 299
 492
Diluted weighted average units outstanding 55,992
 55,828
 55,848
 55,847
 55,887
 55,886
 55,854
 55,378
 56,056
 55,847
Net income (loss) per unit - basic $2.53
 $2.75
 $2.01
 $1.29
 $2.00
 $0.15
 $(1.95) $(1.18) $1.04
 $1.53
Net income (loss) per unit - diluted $2.51
 $2.73
 $2.00
 $1.28
 $1.98
 $0.15
 $(1.95) $(1.18) $1.04
 $1.52
                    
The effect of unit options on the three nine and twelve months ended September 30,March 31, 2013, had they not been out of the money or antidilutive, would have been zero and 16,000 units, respectively. The effect of out-of-the-money and/or antidilutive unit options on the three and twelve months ended March 25, 2012, had they not been out of the money or antidilutive, would have been 66,0002,000, 34,000and 36,000 units, respectively. The effect of out-of-the-money and/or antidilutive unit options on the three, nine and twelve months ended September 25, 2011, had they not been out of the money or antidilutive, would have been 57,000, 67,000 and 127,00047,000 units, respectively.
 
(9) Income and Partnership Taxes:
Under the applicable accounting rules, income taxes are recognized for the amount of taxes payable by the Partnership’s corporate subsidiaries for the current year and for the impact of deferred tax assets and liabilities, which represent future tax consequences of events that have been recognized differently in the financial statements than for tax purposes. The income tax provision (benefit) for interim periods is determined by applying an estimated annual effective tax rate to the quarterly income (loss) of the Partnership’s corporate subsidiaries. For 2012, the estimated annual effective rate includes the effect of an anticipated adjustment to the valuation allowance that relates to foreign tax credit carry-forwards arising from the corporate subsidiaries. The amount of this adjustment has a disproportionate impact on the annual effective tax rate that results in a significant variation in the customary relationship between the provision for taxes and income before taxes in interim periods. In addition to income taxes on its corporate subsidiaries, the Partnership pays a publicly traded partnership tax (PTP tax) on partnership-level gross income (net revenues less cost of food, merchandise and games). As such, the Partnership’s total provision (benefit) for taxes includes amounts for both the PTP tax and for income taxes on its corporate subsidiaries.
During the second quarterAs of 2012 the Partnership adjusted its deferred tax assets and liabilities to reflect the impact of changes to the enacted statutory tax rates in Canada and recorded a corresponding $1.8 million income tax provision.  During the first quarter of 20122013 the Partnership accruedhas recorded $1.01.1 million forof unrecognized tax benefits including interest and/or penalties related to state and local tax filing positions. The Partnership recognizes interest and/or penalties related to unrecognized tax benefits in the income tax provision. The Partnership does not anticipate that the balance of the unrecognized tax benefit will change significantly over the next 12 months.

(10) Contingencies:

The Partnership is a party to a number of lawsuits arising in the normal course of business. In the opinion of management, none of these matters is expected to have a material effect in the aggregate on the Partnership's financial statements.

(11) Immaterial Restatement:

We have made two separate corrections relating to our use of the composite depreciation method.

The Partnership usesfirst correction, which impacts the Balance Sheet at March 25, 2012 and the Statement of Operations and Other Comprehensive Income for the 3 and 12 month periods ended March 25, 2012, related to a misapplication of the composite depreciation method for the group of assets acquired as a whole in 1983, as well as for groups of assets in each subsequent business acquisition.method. Upon the normal retirement of an asset within a composite group, the Partnership'sour practice generally hashad been to extend the depreciable life of that composite group beyond its original estimated useful life. In conjunction with the preparation of the Partnership'sour financial statements for the three months ended July 1,in 2012, management determined that this methodology was not appropriate. As a result, the Partnershipwe revised the useful lives of itsour composite groups to their original estimated useful life (ascribed upon acquisition) and corrected previously computed depreciation expense (and accumulated depreciation). Management evaluated

The second correction, which impacts the amountBalance Sheet at March 25, 2012 and naturethe Statement of these adjustmentsOperations and concludedOther Comprehensive Income for the 12 month period ended March 25, 2012, reflects a subsequent determination that they werea disposition from our composite group of assets was considered to be unusual. In certain situations under the composite method, disposals are considered unusual and, accordingly, losses are not materialincluded in the composite depreciation pool but are rather charged immediately to eitherexpense. In 2013, the Partnership's prior annual or quarterly financial statements. Nonetheless,initial determination of whether a specific asset retired under the historical financial statement amounts includedcomposite method of depreciation in this filing have been corrected for this error. The Partnership expects to likewise correct previously presented2011 was normal was reviewed in connection with responding

17

historical financial statements to an open SEC comment letter. We ultimately concluded that such disposition was unusual and that a $8.8 millioncharge should be included in future filings, including the annual financial statements to be includedreflected in the Partnership's Annual Report on Form 10-K for the year ending December 31, 2012.2011 financial statements.

The tables below detailreflect the effectsimpact on the financial statements of such depreciation adjustments (including the related deferred income tax impact)corrections as described above. The "As originally filed" amounts represent amounts as filed in the Partnership's 1st quarter 2012 Form 10-Q . The "As restated" amounts in all columns represent amounts after restatement for the first correction which was disclosed in the Partnership's 2nd quarter Form 10-Q and the second correction which was disclosed in the Partnership's 2012 Annual Report on previously presented historical financial statement amounts:Form 10-K/A filed on May 10, 2013.


Balance Sheets   
12/31/2011 9/25/2011
Balance Sheet 
(In thousands)3/25/2012
Accumulated depreciation    
As originally filed$(1,044,589) $(1,044,353)$(1,046,162)
Correction(18,599) (18,252)
Corrections(27,622)
As restated$(1,063,188) $(1,062,605)$(1,073,784)
Total assets    
As originally filed$2,074,557
 $2,159,339
$2,113,126
Correction(18,599) (18,252)
Corrections(27,622)
As restated$2,055,958
 $2,141,087
$2,085,504
Deferred Tax Liability    
As originally filed$135,446
 $125,588
$135,746
Correction(1,679) (1,615)
Corrections(5,019)
As restated$133,767
 $123,973
$130,727
Limited Partners' Equity    
As originally filed$182,438
 $221,611
$96,417
Correction(16,920) (16,637)
Corrections(22,603)
As restated$165,518
 $204,974
$73,814








18

Statements of Operations and Other Comprehensive Income
 Three months ended Nine months ended Twelve months ended
(In thousands except per unit amounts) Three months ended Twelve months ended
 9/25/2011 9/25/2011 9/25/2011 3/25/2012 3/25/2012
Depreciation and amortization          
As originally filed $62,619
 $109,173
 $124,345
 $3,846
 $123,861
Correction 829
 1,684
 2,037
Corrections 233
 2,031
As restated $4,079
 $125,892
Loss on impairment / retirement of fixed assets, net    
As originally filed $92
 $2,461
Corrections —
 8,790
As restated $63,448
 $110,857
 $126,382
 $92
 $11,251
Income (loss) before tax          
As originally filed $190,891
 $95,031
 $(2,271) $(86,721) $101,565
Correction (829) (1,684) (2,037)
Corrections (233) (10,821)
As restated $190,062
 $93,347
 $(4,308) $(86,954) $90,744
Provision (benefit) for taxesProvision (benefit) for taxes    Provision (benefit) for taxes  
As originally filed $38,161
 $22,327
 $(11,808) $(21,539) $9,897
Correction (317) (554) (616)
Corrections —
 (3,960)
As restated $37,844
 $21,773
 $(12,424) $(21,539) $5,937
Net income (loss)Net income (loss)    Net income (loss)  
As originally filed $152,730
 $72,704
 $9,537
 $(65,182) $91,668
Correction (512) (1,130) (1,421)
Corrections (233) (6,861)
As restated $152,218
 $71,574
 $8,116
 $(65,415) $84,807
          
Basic earnings per limited partner unit:Basic earnings per limited partner unit:    Basic earnings per limited partner unit:  
As originally filed $2.76
 $1.31
 $0.17
 $(1.18) $1.66
Correction (0.01) (0.02) (0.02)
Corrections —
 (0.13)
As restated $2.75
 $1.29
 $0.15
 $(1.18) $1.53
          
Diluted earnings per limited partner unit:Diluted earnings per limited partner unit:    Diluted earnings per limited partner unit:  
As originally filed $2.74
 $1.30
 $0.17
 $(1.18) $1.64
Correction (0.01) (0.02) (0.02)
Corrections —
 (0.12)
As restated $2.73
 $1.28
 $0.15
 $(1.18) $1.52


(12) Changes in Accumulated Other Comprehensive Income by Component:

(12)The following tables reflect the changes in Accumulated other comprehensive income (loss) related to limited partners' equity for the period ended March 31, 2013:



19

 
Changes in Accumulated Other Comprehensive Income by Component (1)
(In thousands)       
   Gains and    
   Losses on Foreign  
   Cash Flow Currency  
   Hedges Items Total
Balance at December 31, 2012 $(25,749) $(2,751) $(28,500)
        
 Other comprehensive      
 income before      
 reclassifications 1,940
 301
 301
        
 Amounts reclassified      
 from accumulated      
 other comprehensive      
 
income (2)
 6,945
 —
 8,885
        
Net current-period other      
comprehensive income 8,885
 301
 9,186
        
March 31, 2013 $(16,864) $(2,450) $(19,314)

(1) All amounts are net of tax. Amounts in parentheses indicate debits.
(2) See Reclassifications Out of Accumulated Other Comprehensive Income table below for reclassification details.

Reclassifications Out of Accumulated Other Comprehensive Income (1)
(In thousands)       
Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement Where Net Income is Presented
Gains and losses on cash flow hedges      
 Interest rate contracts $8,174
  Net effect of swaps
   $8,174
  Total before tax
   (1,229)  Provision (benefit) for taxes
   $6,945
  Net of tax

(1) Amounts in parentheses indicate debits.

(13) Consolidating Financial Information of Guarantors and Issuers:

Cedar Fair, L.P., Canada's Wonderland Company ("Cedar Canada"), and Magnum Management Corporation ("Magnum") are the co-issuers of the Partnership's 9.125% notes and the 5.25% notes (see Note 5). The notes have been fully and unconditionally guaranteed, on a joint and several basis, by each 100% owned subsidiary of Cedar Fair (other than Cedar Canada and Magnum) that guarantees the Partnership's senior secured credit facilities. There are no non-guarantor subsidiaries.

The following consolidating schedules present condensed financial information for Cedar Fair, L.P., Cedar Canada, and Magnum, the co-issuers, and each 100% owned subsidiary of Cedar Fair (other than Cedar Canada and Magnum), the guarantors (on a combined basis), as of September 30, 2012March 31, 2013, December 31, 2011,2012, and SeptemberMarch 25, 20112012 and for the three nine and twelve month periods ended

20

September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012. In lieu of providing separate unaudited financial statements for the guarantor subsidiaries, we have included the accompanying condensed consolidating financial statements.

Since Cedar Fair, L.P., Cedar Canada and Magnum are co-issuers of the notes and co-borrowers under the Amended 20102013 Credit Agreement, all outstanding debt has been equally reflected within each co-issuer's September 30, 2012March 31, 2013, December 31, 20112012 and SeptemberMarch 25, 20112012 balance sheets in the accompanying condensed consolidating financial statements.

The consolidating financial information has been corrected for the information described in Note 11.12.
  

19

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
September 30, 2012
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $43,000
 $2,263
 $40,278
 $10,561
 $—
 $96,102
Receivables 3
 108,211
 64,153
 478,372
 (621,382) 29,357
Inventories —
 1,584
 2,742
 29,267
 —
 33,593
Current deferred tax asset —
 6,239
 772
 3,334
 —
 10,345
Income tax refundable —
 —
 10,454
 —
 —
 10,454
Other current assets 929
 2,065
 674
 3,775
 —
 7,443
  43,932
 120,362
 119,073
 525,309
 (621,382) 187,294
Property and Equipment (net) 425,747
 1,025
 272,951
 864,121
 —
 1,563,844
Investment in Park 577,612
 791,617
 118,514
 63,384
 (1,551,127) —
Goodwill 9,061
 —
 127,384
 111,218
 —
 247,663
Other Intangibles, net —
 —
 18,039
 22,826
 —
 40,865
Deferred Tax Asset —
 39,320
 —
 —
 (39,320) —
Intercompany Receivable 877,208
 1,069,721
 1,116,623
 —
 (3,063,552) —
Other Assets 23,361
 15,580
 8,925
 2,305
 —
 50,171
  $1,956,921
 $2,037,625
 $1,781,509
 $1,589,163
 $(5,275,381) $2,089,837
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Accounts payable $210,936
 $116,160
 $29,248
 $287,634
 $(621,382) $22,596
Deferred revenue —
 —
 4,544
 30,138
 —
 34,682
Accrued interest 735
 195
 6,082
 —
 —
 7,012
Accrued taxes 5,818
 42,090
 —
 4,496
 —
 52,404
Accrued salaries, wages and benefits —
 24,864
 2,365
 8,990
 —
 36,219
Self-insurance reserves —
 4,751
 1,698
 16,643
 —
 23,092
Other accrued liabilities 824
 4,097
 2,417
 3,505
 —
 10,843
  218,313
 192,157
 46,354
 351,406
 (621,382) 186,848
Deferred Tax Liability —
 —
 59,462
 122,952
 (39,320) 143,094
Derivative Liability 20,801
 13,907
 —
 —
 —
 34,708
Other Liabilities —
 3,880
 —
 3,500
 —
 7,380
Long-Term Debt:            
Term debt 1,131,100
 1,131,100
 1,131,100
 —
 (2,262,200) 1,131,100
Notes 400,676
 400,676
 400,676
 —
 (801,352) 400,676
  1,531,776
 1,531,776
 1,531,776
 —
 (3,063,552) 1,531,776
             
Equity 186,031
 295,905
 143,917
 1,111,305
 (1,551,127) 186,031
  $1,956,921
 $2,037,625
 $1,781,509
 $1,589,163
 $(5,275,381) $2,089,837


20

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
December 31, 2011
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $—
 $512
 $31,540
 $3,472
 $—
 $35,524
Receivables —
 62,408
 69,285
 412,095
 (536,177) 7,611
Inventories —
 1,547
 2,703
 28,819
 —
 33,069
Current deferred tax asset —
 6,239
 772
 3,334
 —
 10,345
Other current assets 508
 13,461
 1,027
 7,822
 (10,852) 11,966
  508
 84,167
 105,327
 455,542
 (547,029) 98,515
Property and Equipment (net) 455,579
 1,044
 266,111
 896,758
 —
 1,619,492
Investment in Park 518,819
 661,251
 118,385
 40,481
 (1,338,936) —
Intercompany Note Receivable —
 93,845
 —
 —
 (93,845) —
Goodwill 9,061
 —
 123,210
 111,219
 —
 243,490
Other Intangibles, net —
 —
 17,448
 22,825
 —
 40,273
Deferred Tax Asset —
 47,646
 —
 —
 (47,646) —
Intercompany Receivable 887,344
 1,084,112
 1,141,302
 —
 (3,112,758) —
Other Assets 27,641
 16,158
 9,353
 1,036
 —
 54,188
  $1,898,952
 $1,988,223
 $1,781,136
 $1,527,861
 $(5,140,214) $2,055,958
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Current maturities of long-term debt $15,921
 $15,921
 $15,921
 $—
 $(31,842) $15,921
Accounts payable 175,968
 144,868
 25,631
 202,566
 (536,177) 12,856
Deferred revenue —
 —
 2,891
 26,703
 —
 29,594
Accrued interest 198
 131
 15,433
 —
 —
 15,762
Accrued taxes 3,909
 —
 7,374
 15,577
 (10,852) 16,008
Accrued salaries, wages and benefits —
 26,916
 1,076
 5,396
 —
 33,388
Self-insurance reserves —
 3,977
 1,711
 15,555
 —
 21,243
Current derivative liability —
 —
 50,772
 —
 —
 50,772
Other accrued liabilities 1,247
 5,568
 252
 832
 —
 7,899
  197,243
 197,381
 121,061
 266,629
 (578,871) 203,443
Deferred Tax Liability —
 —
 58,463
 122,950
 (47,646) 133,767
Derivative Liability 19,451
 12,949
 —
 —
 —
 32,400
Other Liabilities —
 4,090
 —
 —
 —
 4,090
Intercompany Note Payable —
 —
 —
 93,845
 (93,845) —
Long-Term Debt:            
Term debt 1,140,179
 1,140,179
 1,140,179
 —
 (2,280,358) 1,140,179
Notes 400,279
 400,279
 400,279
 —
 (800,558) 400,279
  1,540,458
 1,540,458
 1,540,458
 —
 (3,080,916) 1,540,458
             
Equity 141,800
 233,345
 61,154
 1,044,437
 (1,338,936) 141,800
  $1,898,952
 $1,988,223
 $1,781,136
 $1,527,861
 $(5,140,214) $2,055,958

21

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
September 25, 2011March 31, 2013
(In thousands)
 Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS                        
Current Assets:                        
Cash and cash equivalents $49,000
 $2,489
 $36,473
 $8,350
 $—
 $96,312
 $—
 $732
 $4,125
 $5,181
 $—
 $10,038
Receivables 3
 45,663
 81,773
 587,910
 (676,810) 38,539
 682
 79,472
 67,302
 436,595
 (570,709) 13,342
Inventories —
 1,684
 2,951
 32,311
 —
 36,946
 —
 3,645
 3,032
 32,386
 —
 39,063
Current deferred tax asset —
 1,686
 779
 3,409
 —
 5,874
 —
 31,543
 816
 3,663
 —
 36,022
Other current assets 875
 2,091
 774
 5,559
 —
 9,299
 207
 9,630
 1,618
 16,260
 —
 27,715
 49,878
 53,613
 122,750
 637,539
 (676,810) 186,970
 889
 125,022
 76,893
 494,085
 (570,709) 126,180
Property and Equipment (net) 455,663
 1,055
 257,802
 900,759
 —
 1,615,279
 457,484
 1,003
 262,941
 849,424
 —
 1,570,852
Investment in Park 534,400
 681,893
 118,514
 53,988
 (1,388,795) —
 419,501
 714,013
 115,401
 21,689
 (1,270,604) —
Intercompany Note Receivable —
 269,500
 —
 —
 (269,500) —
Goodwill 9,061
 —
 121,869
 111,219
 —
 242,149
 9,061
 —
 123,374
 111,218
 —
 243,653
Other Intangibles, net —
 —
 17,258
 22,809
 —
 40,067
 —
 —
 17,470
 22,853
 —
 40,323
Deferred Tax Asset —
 49,845
 —
 —
 (49,845) —
 —
 34,890
 —
 90
 (34,980) —
Intercompany Receivable 887,219
 1,083,987
 1,141,302
 —
 (3,112,508) —
 877,336
 1,165,652
 1,211,522
 —
 (3,254,510) —
Other Assets 28,962
 16,884
 9,616
 1,160
 —
 56,622
 14,581
 10,291
 7,473
 2,303
 —
 34,648
 $1,965,183
 $2,156,777
 $1,789,111
 $1,727,474
 $(5,497,458) $2,141,087
 $1,778,852
 $2,050,871
 $1,815,074
 $1,501,662
 $(5,130,803) $2,015,656
LIABILITIES AND PARTNERS’ EQUITY                        
Current Liabilities:                        
Current maturities of long-term debt $6,300
 $6,300
 $6,300
 $—
 $(12,600) $6,300
Accounts payable $189,887
 $281,605
 $27,488
 $206,288
 $(676,810) $28,458
 103,654
 215,425
 3,891
 285,182
 (570,709) 37,443
Deferred revenue —
 —
 3,701
 28,993
 —
 32,694
 —
 —
 6,679
 59,505
 —
 66,184
Accrued interest 6,115
 1,364
 6,489
 —
 —
 13,968
 1,444
 916
 5,979
 —
 —
 8,339
Accrued taxes 5,189
 23,550
 —
 4,354
 —
 33,093
 4,790
 390
 331
 3,489
 —
 9,000
Accrued salaries, wages and benefits —
 29,373
 2,341
 9,395
 —
 41,109
 —
 13,483
 1,095
 5,604
 —
 20,182
Self-insurance reserves —
 3,130
 1,658
 17,154
 —
 21,942
 —
 5,324
 1,696
 16,537
 —
 23,557
Current derivative liability 4,797
 —
 54,569
 —
 —
 59,366
Other accrued liabilities 1,206
 4,840
 1,277
 4,924
 —
 12,247
 589
 5,161
 133
 1,984
 —
 7,867
 207,194
 343,862
 97,523
 271,108
 (676,810) 242,877
 116,777
 246,999
 26,104
 372,301
 (583,309) 178,872
Deferred Tax Liability —
 —
 61,405
 112,413
 (49,845) 123,973
 —
 —
 62,700
 126,867
 (34,980) 154,587
Derivative Liability 20,459
 13,376
 —
 —
 —
 33,835
 18,594
 12,437
 —
 —
 —
 31,031
Other Liabilities —
 2,872
 —
 —
 —
 2,872
 —
 4,185
 —
 3,500
 —
 7,685
Intercompany Note Payable —
 —
 —
 269,500
 (269,500) —
Long-Term Debt:                        
Revolving credit loans 96,000
 96,000
 96,000
 —
 (192,000) 96,000
Term debt 1,156,100
 1,156,100
 1,156,100
 —
 (2,312,200) 1,156,100
 623,700
 623,700
 623,700
 —
 (1,247,400) 623,700
Notes 400,154
 400,154
 400,154
 —
 (800,308) 400,154
 901,255
 901,255
 901,255
 —
 (1,802,510) 901,255
 1,556,254
 1,556,254
 1,556,254
 —
 (3,112,508) 1,556,254
 1,620,955
 1,620,955
 1,620,955
 —
 (3,241,910) 1,620,955
                        
Equity 181,276
 240,413
 73,929
 1,074,453
 (1,388,795) 181,276
 22,526
 166,295
 105,315
 998,994
 (1,270,604) 22,526
 $1,965,183
 $2,156,777
 $1,789,111
 $1,727,474
 $(5,497,458) $2,141,087
 $1,778,852
 $2,050,871
 $1,815,074
 $1,501,662
 $(5,130,803) $2,015,656


22

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOMEBALANCE SHEET
For the Three Months Ended September 30,December 31, 2012
 (As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $79,663
 $141,134
 $88,334
 $464,902
 $(220,588) $553,445
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 6,447
 40,906
 —
 47,353
Operating expenses 1,368
 74,191
 18,736
 289,604
 (220,588) 163,311
Selling, general and administrative 1,853
 32,627
 4,822
 13,691
 —
 52,993
Depreciation and amortization 19,209
 10
 9,430
 32,098
 —
 60,747
Loss on impairment / retirement of fixed assets, net 25,000
 —
 —
 —
 —
 25,000
  47,430
 106,828
 39,435
 376,299
 (220,588) 349,404
Operating income 32,233
 34,306
 48,899
 88,603
 —
 204,041
Interest expense (income), net 12,213
 7,258
 9,897
 (2,518) —
 26,850
Net effect of swaps (104) (71) —
 —
 —
 (175)
Unrealized / realized foreign currency gain —
 —
 (15,035) —
 —
 (15,035)
Other (income) expense 186
 (2,043) 512
 1,345
 —
 —
Income from investment in affiliates (125,311) (79,600) (11,138) (45,137) 261,186
 —
Income before taxes 145,249
 108,762
 64,663
 134,913
 (261,186) 192,401
Provision for taxes 4,561
 9,777
 17,181
 20,194
 —
 51,713
Net income $140,688
 $98,985
 $47,482
 $114,719
 $(261,186) $140,688
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment (563) —
 (563) —
 563
 (563)
Unrealized income (loss) on cash flow hedging derivatives (234) 48
 —
 —
 (48) (234)
Other comprehensive income (loss), (net of tax) (797) 48
 (563) —
 515
 (797)
Total Comprehensive Income $139,891
 $99,033
 $46,919
 $114,719
 $(260,671) $139,891


  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $25,000
 $444
 $50,173
 $3,213
 $—
 $78,830
Receivables 4
 101,093
 71,099
 498,555
 (652,559) 18,192
Inventories —
 1,724
 2,352
 23,764
 —
 27,840
Current deferred tax asset —
 3,705
 816
 3,663
 —
 8,184
Other current assets 563
 17,858
 530
 5,490
 (16,381) 8,060
  25,567
 124,824
 124,970
 534,685
 (668,940) 141,106
Property and Equipment (net) 439,506
 1,013
 268,157
 835,596
 —
 1,544,272
Investment in Park 485,136
 772,183
 115,401
 53,790
 (1,426,510) —
Goodwill 9,061
 —
 125,942
 111,218
 —
 246,221
Other Intangibles, net —
 —
 17,835
 22,817
 —
 40,652
Deferred Tax Asset —
 36,443
 —
 90
 (36,533) —
Intercompany Receivable 877,612
 1,070,125
 1,116,623
 —
 (3,064,360) —
Other Assets 22,048
 14,832
 8,419
 2,315
 —
 47,614
  $1,858,930
 $2,019,420
 $1,777,347
 $1,560,511
 $(5,196,343) $2,019,865
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Accounts payable $147,264
 $213,279
 $16,101
 $286,649
 $(652,559) $10,734
Deferred revenue —
 —
 4,996
 34,489
 —
 39,485
Accrued interest 98
 64
 15,350
 —
 —
 15,512
Accrued taxes 4,518
 —
 6,239
 23,437
 (16,381) 17,813
Accrued salaries, wages and benefits —
 17,932
 1,214
 5,690
 —
 24,836
Self-insurance reserves —
 5,528
 1,754
 16,624
 —
 23,906
Other accrued liabilities 1,110
 2,502
 140
 2,164
 —
 5,916
  152,990
 239,305
 45,794
 369,053
 (668,940) 138,202
Deferred Tax Liability —
 —
 63,460
 126,865
 (36,533) 153,792
Derivative Liability 19,309
 12,951
 —
 —
 —
 32,260
Other Liabilities —
 5,480
 —
 3,500
 —
 8,980
Long-Term Debt:            
Term debt 1,131,100
 1,131,100
 1,131,100
 —
 (2,262,200) 1,131,100
Notes 401,080
 401,080
 401,080
 —
 (802,160) 401,080
  1,532,180
 1,532,180
 1,532,180
 —
 (3,064,360) 1,532,180
             
Equity 154,451
 229,504
 135,913
 1,061,093
 (1,426,510) 154,451
  $1,858,930
 $2,019,420
 $1,777,347
 $1,560,511
 $(5,196,343) $2,019,865

23

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOMEBALANCE SHEET
For the Three Months Ended March 25, 2012September 25, 2011
(As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $82,713
 $147,138
 $84,679
 $487,352
 $(229,614) $572,268
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 6,659
 42,099
 —
 48,758
Operating expenses 1,257
 69,119
 19,397
 301,293
 (229,614) 161,452
Selling, general and administrative 1,297
 30,460
 5,064
 15,157
 —
 51,978
Depreciation and amortization 20,354
 11
 9,564
 33,519
 —
 63,448
Loss on impairment / retirement of fixed assets, net 827
 —
 10
 43
 —
 880
  23,735
 99,590
 40,694
 392,111
 (229,614) 326,516
Operating income 58,978
 47,548
 43,985
 95,241
 —
 245,752
Interest expense, net 23,948
 3,085
 13,433
 855
 —
 41,321
Net effect of swaps (4,112) (192) 342
 —
 —
 (3,962)
Unrealized / realized foreign currency loss —
 —
 18,549
 —
 —
 18,549
Other (income) expense (30) (1,711) 616
 907
 —
 (218)
Income from investment in affiliates (117,557) (57,557) (8,410) (15,579) 199,103
 —
Income before taxes 156,729
 103,923
 19,455
 109,058
 (199,103) 190,062
Provision for taxes 4,511
 12,445
 3,103
 17,785
 —
 37,844
Net income $152,218
 $91,478
 $16,352
 $91,273
 $(199,103) $152,218
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment 2,842
 —
 2,842
 —
 (2,842) 2,842
Unrealized income on cash flow hedging derivatives (3,224) (4,646) 72
 —
 4,574
 (3,224)
Other comprehensive income (loss), (net of tax) (382) (4,646) 2,914
 —
 1,732
 (382)
Total Comprehensive Income $151,836
 $86,832
 $19,266
 $91,273
 $(197,371) $151,836





  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $—
 $397
 $119
 $6,803
 $—
 $7,319
Receivables —
 82,892
 59,911
 370,246
 (506,356) 6,693
Inventories —
 3,321
 3,678
 37,487
 —
 44,486
Current deferred tax asset —
 11,014
 772
 3,334
 —
 15,120
Other current assets 359
 5,907
 11,851
 12,293
 —
 30,410
  359
 103,531
 76,331
 430,163
 (506,356) 104,028
Property and Equipment (net) 464,394
 1,035
 279,255
 896,184
 —
 1,640,868
Investment in Park 459,339
 661,166
 115,401
 25,758
 (1,261,664) —
Intercompany Note Receivable —
 104,165
 —
 —
 (104,165) —
Goodwill 9,061
 —
 125,528
 111,219
 —
 245,808
Other Intangibles, net —
 —
 17,776
 22,831
 —
 40,607
Deferred Tax Asset —
 47,646
 —
 —
 (47,646) —
Intercompany Receivable 889,442
 1,239,210
 1,294,302
 —
 (3,422,954) —
Other Assets 26,323
 16,288
 9,608
 1,974
 —
 54,193
  $1,848,918
 $2,173,041
 $1,918,201
 $1,488,129
 $(5,342,785) $2,085,504
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Current maturities of long-term debt $15,921
 $15,921
 $15,921
 $—
 $(31,842) $15,921
Accounts payable 60,297
 232,001
 26,302
 215,968
 (506,356) 28,212
Deferred revenue —
 —
 5,413
 45,341
 —
 50,754
Accrued interest 3,089
 1,706
 5,519
 —
 —
 10,314
Accrued taxes 4,925
 340
 261
 3,294
 —
 8,820
Accrued salaries, wages and benefits —
 26,989
 781
 5,792
 —
 33,562
Self-insurance reserves —
 4,212
 1,716
 15,826
 —
 21,754
Other accrued liabilities 462
 3,312
 226
 2,104
 —
 6,104
  84,694
 284,481
 56,139
 288,325
 (538,198) 175,441
Deferred Tax Liability —
 —
 58,762
 119,611
 (47,646) 130,727
Derivative Liability 19,403
 12,877
 —
 —
 —
 32,280
Other Liabilities —
 2,235
 —
 —
 —
 2,235
Intercompany Note Payable —
 —
 —
 104,165
 (104,165) —
Long-Term Debt:            
Revolving credit loans 155,004
 155,004
 155,004
 —
 (310,008) 155,004
Term debt 1,140,179
 1,140,179
 1,140,179
 —
 (2,280,358) 1,140,179
Notes 400,373
 400,373
 400,373
 —
 (800,746) 400,373
  1,695,556
 1,695,556
 1,695,556
 —
 (3,391,112) 1,695,556
             
Equity 49,265
 177,892
 107,744
 976,028
 (1,261,664) 49,265
  $1,848,918
 $2,173,041
 $1,918,201
 $1,488,129
 $(5,342,785) $2,085,504


24

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the NineThree Months Ended September 30, 2012March 31, 2013
(In thousands)
 Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
                        
Net revenues $124,864
 $221,221
 $130,441
 $808,471
 $(345,748) $939,249
 $4,317
 $8,371
 $289
 $41,510
 $(12,688) $41,799
Costs and expenses:                        
Cost of food, merchandise and games revenues —
 —
 9,988
 73,938
 —
 83,926
 —
 —
 —
 5,037
 —
 5,037
Operating expenses 4,141
 147,211
 40,328
 534,900
 (345,748) 380,832
 1,423
 21,606
 5,941
 60,375
 (12,688) 76,657
Selling, general and administrative 4,841
 70,848
 9,877
 29,922
 —
 115,488
 1,292
 16,613
 711
 2,423
 —
 21,039
Depreciation and amortization 33,436
 28
 16,415
 63,277
 —
 113,156
 475
 9
 —
 4,302
 —
 4,786
Loss on impairment / retirement of fixed assets, net 24,221
 —
 9
 —
 —
 24,230
 36
 —
 478
 86
 —
 600
 66,639
 218,087
 76,617
 702,037
 (345,748) 717,632
 3,226
 38,228
 7,130
 72,223
 (12,688) 108,119
Operating income 58,225
 3,134
 53,824
 106,434
 —
 221,617
Operating income (loss) 1,091
 (29,857) (6,841) (30,713) —
 (66,320)
Interest expense (income), net 36,438
 21,957
 30,898
 (5,422) —
 83,871
 10,512
 7,677
 9,764
 (2,230) —
 25,723
Net effect of swaps (35) 192
 (1,475) —
 —
 (1,318) 5,635
 3,576
 —
 —
 —
 9,211
Unrealized / realized foreign currency gain —
 —
 (13,926) —
 —
 (13,926)
Loss on early debt extinguishment 21,175
 12,781
 617
 —
 —
 34,573
Unrealized / realized foreign currency loss —
 —
 8,958
 —
 —
 8,958
Other (income) expense 561
 (7,119) 1,221
 5,337
 —
 —
 188
 (2,388) 800
 1,400
 —
 —
Income from investment in affiliates (99,035) (72,862) (14,505) (38,160) 224,562
 —
Income before taxes 120,296
 60,966
 51,611
 144,679
 (224,562) 152,990
Loss from investment in affiliates 72,096
 35,640
 3,520
 21,227
 (132,483) —
Loss before taxes (108,515) (87,143) (30,500) (51,110) 132,483
 (144,785)
Provision (benefit) for taxes 8,701
 (3,771) 13,525
 22,940
 —
 41,395
 611
 (17,665) (9,254) (9,351) —
 (35,659)
Net income $111,595
 $64,737
 $38,086
 $121,739
 $(224,562) $111,595
Net loss $(109,126) $(69,478) $(21,246) $(41,759) $132,483
 $(109,126)
Other comprehensive income (loss), (net of tax):                        
Cumulative foreign currency translation adjustment (1,251) —
 (1,251) —
 1,251
 (1,251) 301
 —
 301
 —
 (301) 301
Unrealized income (loss) on cash flow hedging derivatives (1,798) (629) 21
 —
 608
 (1,798)
Other comprehensive income (loss), (net of tax) (3,049) (629) (1,230) —
 1,859
 (3,049)
Total Comprehensive Income $108,546
 $64,108
 $36,856
 $121,739
 $(222,703) $108,546
Unrealized income on cash flow hedging derivatives 8,885
 2,535
 —
 —
 (2,535) 8,885
Other comprehensive income, (net of tax) 9,186
 2,535
 301
 —
 (2,836) 9,186
Total Comprehensive Loss $(99,940) $(66,943) $(20,945) $(41,759) $129,647
 $(99,940)



25

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the NineThree Months Ended SeptemberMarch 25, 20112012
(As restated)
(In thousands)
 Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
                        
Net revenues $118,280
 $210,407
 $115,163
 $768,126
 $(328,349) $883,627
 $1,456
 $2,577
 $266
 $27,932
 $(4,033) $28,198
Costs and expenses:                        
Cost of food, merchandise and games revenues —
 —
 9,389
 70,592
 —
 79,981
 —
 —
 —
 4,087
 —
 4,087
Operating expenses 4,180
 131,955
 38,959
 504,813
 (328,349) 351,558
 1,335
 20,436
 5,657
 47,890
 (4,033) 71,285
Selling, general and administrative 8,049
 64,226
 9,541
 28,310
 —
 110,126
 1,332
 13,696
 760
 2,196
 —
 17,984
Depreciation and amortization 33,021
 34
 15,440
 62,362
 —
 110,857
 696
 9
 —
 3,374
 —
 4,079
Loss on impairment / retirement of fixed assets, net 1,023
 —
 10
 43
 —
 1,076
 82
 —
 10
 —
 —
 92
 46,273
 196,215
 73,339
 666,120
 (328,349) 653,598
 3,445
 34,141
 6,427
 57,547
 (4,033) 97,527
Operating income 72,007
 14,192
 41,824
 102,006
 —
 230,029
Operating loss (1,989) (31,564) (6,161) (29,615) —
 (69,329)
Interest expense, net 70,822
 8,395
 39,129
 6,184
 —
 124,530
 11,158
 6,615
 10,403
 (1,389) —
 26,787
Net effect of swaps (7,230) 910
 2,813
 —
 —
 (3,507) 173
 332
 (1,475) —
 —
 (970)
Unrealized / realized foreign currency loss —
 —
 14,704
 —
 —
 14,704
Unrealized / realized foreign currency gain —
 —
 (8,192) —
 —
 (8,192)
Other (income) expense 1,517
 (4,712) 2,072
 2,078
 —
 955
 187
 (3,035) 197
 2,651
 —
 —
(Income) loss from investment in affiliates (71,656) (34,663) (12,389) 107
 118,601
 —
Income (loss) before taxes 78,554
 44,262
 (4,505) 93,637
 (118,601) 93,347
Loss from investment in affiliates 50,491
 23,083
 3,230
 24,916
 (101,720) —
Loss before taxes (63,998) (58,559) (10,324) (55,793) 101,720
 (86,954)
Provision (benefit) for taxes 6,980
 2,527
 (4,446) 16,712
 —
 21,773
 1,417
 (11,672) (2,334) (8,950) —
 (21,539)
Net income (loss) $71,574
 $41,735
 $(59) $76,925
 $(118,601) $71,574
Net loss $(65,415) $(46,887) $(7,990) $(46,843) $101,720
 $(65,415)
Other comprehensive income (loss), (net of tax):                        
Cumulative foreign currency translation adjustment 2,354
 —
 2,354
 —
 (2,354) 2,354
 (1,169) —
 (1,169) —
 1,169
 (1,169)
Unrealized income on cash flow hedging derivatives 2,366
 (9,866) 79
 —
 9,787
 2,366
 339
 98
 21
 —
 (119) 339
Other comprehensive income (loss), (net of tax) 4,720
 (9,866) 2,433
 —
 7,433
 4,720
 (830) 98
 (1,148) —
 1,050
 (830)
Total Comprehensive Income $76,294
 $31,869
 $2,374
 $76,925
 $(111,168) $76,294
Total Comprehensive Loss $(66,245) $(46,789) $(9,138) $(46,843) $102,770
 $(66,245)

























26



CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
For the Twelve Months Ended September 30, 2012March 31, 2013
(In thousands)
 Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
                        
Net revenues $147,733
 $261,878
 $142,250
 $941,465
 $(409,232) $1,084,094
 $148,576
 $263,930
 $140,441
 $941,246
 $(412,138) $1,082,055
Costs and expenses:                        
Cost of food, merchandise and games revenues —
 —
 10,531
 85,471
 —
 96,002
 —
 —
 10,316
 85,682
 —
 95,998
Operating expenses 5,452
 180,665
 47,134
 636,106
 (409,232) 460,125
 5,468
 177,526
 48,147
 637,772
 (412,138) 456,775
Selling, general and administrative 6,865
 90,892
 11,650
 36,381
 —
 145,788
 6,455
 89,532
 11,086
 34,293
 —
 141,366
Depreciation and amortization 37,698
 41
 18,300
 72,097
 —
 128,136
 37,439
 40
 18,199
 71,335
 —
 127,013
(Gain) loss on impairment / retirement of fixed assets, net 24,188
 —
 (62) 1,593
 —
 25,719
(Gain) on sale of other assets —
 —
 —
 (6,625) —
 (6,625)
Loss on impairment / retirement of fixed assets, net 25,089
 —
 474
 5,281
 —
 30,844
 74,203
 271,598
 87,553
 831,648
 (409,232) 855,770
 74,451
 267,098
 88,222
 827,738
 (412,138) 845,371
Operating income (loss) 73,530
 (9,720) 54,697
 109,817
 —
 228,324
 74,125
 (3,168) 52,219
 113,508
 —
 236,684
Interest (income) expense, net 50,007
 28,592
 44,583
 (6,813) —
 116,369
 47,879
 30,390
 40,231
 (9,013) —
 109,487
Net effect of swaps (5,019) (1) (5,910) —
 —
 (10,930) 5,324
 3,365
 —
 —
 —
 8,689
Unrealized / realized foreign currency gain —
 —
 (18,721) —
 —
 (18,721)
Loss on early debt extinguishment 21,175
 12,781
 617
 —
 —
 34,573
Unrealized / realized foreign currency loss —
 —
 8,152
 —
 —
 8,152
Other (income) expense 749
 (10,205) 1,498
 7,958
 —
 —
 750
 (8,860) 2,623
 5,487
 —
 —
Income from investment in affiliates (93,080) (55,557) (12,698) (24,955) 186,290
 —
 (68,417) (53,593) (14,307) (18,503) 154,820
 —
Income before taxes 120,873
 27,451
 45,945
 133,627
 (186,290) 141,606
 67,414
 12,749
 14,903
 135,537
 (154,820) 75,783
Provision (benefit) for taxes 10,106
 (29,298) 20,942
 29,089
 —
 30,839
 9,269
 (15,849) (3,507) 27,725
 —
 17,638
Net income $110,767
 $56,749
 $25,003
 $104,538
 $(186,290) $110,767
 $58,145
 $28,598
 $18,410
 $107,812
 $(154,820) $58,145
Other comprehensive income (loss), (net of tax):            
Other comprehensive income, (net of tax):            
Cumulative foreign currency translation adjustment (2,672) —
 (2,672) —
 2,672
 (2,672) 1,839
 —
 1,839
 —
 (1,839) 1,839
Unrealized income (loss) on cash flow hedging derivatives (397) (109) 21
 —
 88
 (397)
Unrealized income on cash flow hedging derivatives 8,685
 2,551
 —
 —
 (2,551) 8,685
Other comprehensive income (loss), (net of tax) (3,069) (109) (2,651) —
 2,760
 (3,069) 10,524
 2,551
 1,839
 —
 (4,390) 10,524
Total Comprehensive Income $107,698
 $56,640
 $22,352
 $104,538
 $(183,530) $107,698
 $68,669
 $31,149
 $20,249
 $107,812
 $(159,210) $68,669



27

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the Twelve Months Ended SeptemberMarch 25, 20112012 (As restated)
(In thousands)
 Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
                        
Net revenues $138,907
 $247,595
 $126,355
 $886,578
 $(386,119) $1,013,316
 $140,548
 $249,988
 $126,375
 $903,046
 $(390,156) $1,029,801
Costs and expenses:                        
Cost of food, merchandise and games revenues —
 —
 9,850
 80,928
 —
 90,778
 —
 —
 9,932
 82,100
 —
 92,032
Operating expenses 5,725
 163,754
 45,814
 597,781
 (386,119) 426,955
 5,351
 167,068
 45,805
 608,940
 (390,156) 437,008
Selling, general and administrative 9,755
 79,492
 11,347
 32,598
 —
 133,192
 7,963
 83,355
 11,151
 35,026
 —
 137,495
Depreciation and amortization 37,168
 95
 17,188
 71,931
 —
 126,382
 37,309
 45
 17,325
 71,213
 —
 125,892
Loss on impairment of goodwill and other intangibles —
 —
 —
 903
 —
 903
Loss on impairment / retirement of fixed assets, net 1,456
 —
 10
 62,043
 —
 63,509
Loss (gain) on impairment / retirement of fixed assets, net 876
 —
 (51) 10,426
 —
 11,251
 54,104
 243,341
 84,209
 846,184
 (386,119) 841,719
 51,499
 250,468
 84,162
 807,705
 (390,156) 803,678
Operating income 84,803
 4,254
 42,146
 40,394
 —
 171,597
Operating income (loss) 89,049
 (480) 42,213
 95,341
 —
 226,123
Interest expense, net 99,205
 14,877
 52,411
 4,362
 —
 170,855
 72,309
 19,090
 50,897
 488
 —
 142,784
Net effect of swaps (7,183) 910
 8,045
 —
 —
 1,772
 (10,940) (243) (4,793) —
 —
 (15,976)
Unrealized / realized foreign currency loss —
 —
 2,323
 —
 —
 2,323
 —
 —
 8,605
 —
 —
 8,605
Other (income) expense 1,704
 (5,748) 2,852
 2,147
 —
 955
 716
 (9,542) 1,708
 7,084
 —
 (34)
(Income) loss from investment in affiliates (25,098) 1,534
 (9,116) 2,425
 30,255
 —
 (67,272) (19,390) (2,601) 16,074
 73,189
 —
Income (loss) before taxes 16,175
 (7,319) (14,369) 31,460
 (30,255) (4,308) 94,236
 9,605
 (11,603) 71,695
 (73,189) 90,744
Provision (benefit) for taxes 8,059
 953
 (7,308) (14,128) —
 (12,424) 9,429
 (25,950) 4,319
 18,139
 —
 5,937
Net income (loss) $8,116
 $(8,272) $(7,061) $45,588
 $(30,255) $8,116
 $84,807
 $35,555
 $(15,922) $53,556
 $(73,189) $84,807
Other comprehensive income (loss), (net of tax):                        
Cumulative foreign currency translation adjustment (1,704) —
 (1,704) —
 1,704
 (1,704) 1,050
 —
 1,050
 —
 (1,050) 1,050
Unrealized income on cash flow hedging derivatives 22,916
 (7,153) 180
 —
 6,973
 22,916
Unrealized income (loss) on cash flow hedging derivatives (7,958) (9,638) 254
 —
 9,384
 (7,958)
Other comprehensive income (loss), (net of tax) 21,212
 (7,153) (1,524) —
 8,677
 21,212
 (6,908) (9,638) 1,304
 —
 8,334
 (6,908)
Total Comprehensive Income (Loss) $29,328
 $(15,425) $(8,585) $45,588
 $(21,578) $29,328
 $77,899
 $25,917
 $(14,618) $53,556
 $(64,855) $77,899




28

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the NineThree Months Ended September 30, 2012March 31, 2013
(In thousands)
 Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
                        
NET CASH FROM (FOR) OPERATING ACTIVITIES $208,436
 $48,506
 $9,093
 $155,849
 $(145,140) $276,744
 $(117,670) $(49,663) $(42,030) $(12,767) $153,463
 $(68,667)
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES                        
Investment in joint ventures and affiliates (56,171) (70,083) 3,948
 (22,834) 145,140
 —
 65,636
 58,171
 (2,442) 32,098
 (153,463) —
Sale of other assets 1,173
 —
 —
 —
 —
 1,173
Capital expenditures (29,295) (8) (14,426) (32,081) —
 (75,810) (17,866) —
 (600) (17,363) —
 (35,829)
Net cash from (for) investing activities (84,293) (70,091) (10,478) (54,915) 145,140
 (74,637) 47,770
 58,171
 (3,042) 14,735
 (153,463) (35,829)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES                        
Derivative settlement —
 —
 (50,450) —
 —
 (50,450)
Net borrowings on revolving credit loans $96,000
 $—
 $—
 $—
 $—
 $96,000
Term debt borrowings 359,022
 256,500
 14,478
 —
 —
 630,000
Note borrowings 294,897
 205,103
 —
 —
 —
 500,000
Payment of debt issuance costs (14,763) (8,538) (190) —
 —
 (23,491)
Term debt payments, including early termination penalties (14,468) (10,212) (320) —
 —
 (25,000) (654,568) (462,054) (14,478) —
 —
 (1,131,100)
Intercompany (payments) receipts —
 93,845
 —
 (93,845) —
 —
Distributions (paid) received (66,675) 110
 —
 —
 —
 (66,565) (35,688) 868
 —
 —
 —
 (34,820)
Capital (contribution) infusion —
 (60,000) 60,000
 —
 —
 —
Exercise of limited partnership unit options —
 47
 —
 —
 —
 47
 —
 28
 —
 —
 —
 28
Excess tax benefit from unit-based compensation expense —
 (454) —
 —
 —
 (454) —
 (127) —
 —
 —
 (127)
Net cash from (for) financing activities (81,143) 23,336
 9,230
 (93,845) —
 (142,422) 44,900
 (8,220) (190) —
 —
 36,490
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 893
 —
 —
 893
 —
 —
 (786) —
 —
 (786)
CASH AND CASH EQUIVALENTS                        
Net increase for the period 43,000
 1,751
 8,738
 7,089
 —
 60,578
Net increase (decrease) for the period (25,000) 288
 (46,048) 1,968
 —
 (68,792)
Balance, beginning of period —
 512
 31,540
 3,472
 —
 35,524
 25,000
 444
 50,173
 3,213
 —
 78,830
Balance, end of period $43,000
 $2,263
 $40,278
 $10,561
 $—
 $96,102
 $—
 $732
 $4,125
 $5,181
 $—
 $10,038
                        

29

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the NineThree Months Ended SeptemberMarch 25, 20112012 (As restated)
(In thousands)
 Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
                        
NET CASH FROM (FOR) OPERATING ACTIVITIES $169,343
 $48,628
 $48,422
 $25,310
 $(69,338) $222,365
 $(184,504) $10,151
 $(37,239) $(6,697) $136,357
 $(81,932)
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES                        
Investment in joint ventures and affiliates (29,986) (39,615) (6,353) 6,616
 69,338
 —
 62,103
 60,369
 2,208
 11,677
 (136,357) —
Capital expenditures (38,121) —
 (10,510) (24,249) —
 (72,880) (8,374) —
 (7,125) (11,969) —
 (27,468)
Net cash from (for) investing activities (68,107) (39,615) (16,863) (17,633) 69,338
 (72,880) 53,729
 60,369
 (4,917) (292) (136,357) (27,468)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES                        
Net (payments) on revolving credit loans (23,200) —
 —
 —
 —
 (23,200)
Term debt borrowings 13,246
 9,358
 334
 —
 —
 22,938
Term debt payments, including early termination penalties (13,831) (9,763) (306) —
 —
 (23,900)
Net borrowings on revolving credit loans 153,000
 —
 2,004
 —
 —
 155,004
Derivative settlement —
 —
 (50,450) —
 —
 (50,450)
Intercompany (payments) receipts —
 688
 —
 (688) —
 —
 —
 (10,320) —
 10,320
 —
 —
Distributions (paid) received (16,668) 64
 —
 —
 —
 (16,604) (22,225) 74
 —
 —
 —
 (22,151)
Payment of debt issuance costs (11,783) (8,332) (375) —
 —
 (20,490)
Capital (contribution) infusion —
 (60,000) 60,000
 —
 —
 —
Exercise of limited partnership unit options —
 48
 —
 —
 —
 48
Excess tax benefit from unit-based compensation —
 (437) —
 —
 —
 (437)
Net cash from (for) financing activities (52,236) (7,985) (347) (688) —
 (61,256) 130,775
 (70,635) 11,554
 10,320
 —
 82,014
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 (1,682) —
 —
 (1,682) —
 —
 (819) —
 —
 (819)
CASH AND CASH EQUIVALENTS                        
Net increase for the period 49,000
 1,028
 29,530
 6,989
 —
 86,547
Net increase (decrease) for the period —
 (115) (31,421) 3,331
 —
 (28,205)
Balance, beginning of period —
 1,461
 6,943
 1,361
 —
 9,765
 —
 512
 31,540
 3,472
 —
 35,524
Balance, end of period $49,000
 $2,489
 $36,473
 $8,350
 $—
 $96,312
 $—
 $397
 $119
 $6,803
 $—
 $7,319
                        
                        

30

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the Twelve Months Ended September 30, 2012March 31, 2013
(In thousands)
 Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
                        
NET CASH FROM (FOR) OPERATING ACTIVITIES $186,582
 $(152,159) $12,038
 $318,078
 $(91,985) $272,554
 $188,221
 $(37,475) $16,546
 $135,165
 $(4,510) $297,947
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES                        
Investment in joint ventures and affiliates (40,694) (47,206) 5,245
 (9,330) 91,985
 —
 43,043
 (49,642) (2,479) 4,568
 4,510
 —
Sale of other assets 1,173
 —
 —
 —
 —
 1,173
 1,173
 —
 —
 14,885
 —
 16,058
Capital expenditures (33,025) (8) (23,050) (37,037) —
 (93,120) (43,156) (8) (8,023) (52,075) —
 (103,262)
Net cash for investing activities (72,546) (47,214) (17,805) (46,367) 91,985
 (91,947) 1,060
 (49,650) (10,502) (32,622) 4,510
 (87,204)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES                        
Net borrowings on revolving credit loans $(57,000) $—
 $(2,004) $—
 $—
 $(59,004)
Term debt borrowings 359,022
 256,500
 14,478
 —
 —
 630,000
Note borrowings 294,897
 205,103
 —
 —
 —
 500,000
Intercompany term debt (payments) receipts —
 269,500
 —
 (269,500) —
 —
 —
 104,165
 —
 (104,165) —
 —
Derivative settlement —
 —
 (50,450) —
 —
 (50,450)
Term debt payments, including early termination penalties (14,467) (10,213) (320) —
 —
 (25,000) (669,035) (472,267) (14,798) —
 —
 (1,156,100)
Distributions (paid) received (105,569) 261
 —
 —
 —
 (105,308) (102,402) 920
 —
 —
 —
 (101,482)
Capital (contribution) infusion —
 (60,000) 60,000
 —
 —
 —
 —
 —
 —
 —
 —
 —
Exercise of limited partnership unit options —
 53
 —
 —
 —
 53
 —
 57
 —
 —
 —
 57
Payment of debt issuance costs —
 —
 (723) —
 —
 (723) (14,763) (8,537) (191) —
 —
 (23,491)
Excess tax benefit from unit-based compensation expense —
 (454) —
 —
 —
 (454) —
 1,519
 —
 —
 —
 1,519
Net cash from (for) financing activities (120,036) 199,147
 8,507
 (269,500) —
 (181,882) (189,281) 87,460
 (2,515) (104,165) —
 (208,501)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 1,065
 —
 —
 1,065
 —
 —
 477
 —
 —
 477
CASH AND CASH EQUIVALENTS                        
Net increase (decrease) for the period (6,000) (226) 3,805
 2,211
 —
 (210) —
 335
 4,006
 (1,622) —
 2,719
Balance, beginning of period 49,000
 2,489
 36,473
 8,350
 —
 96,312
 —
 397
 119
 6,803
 —
 7,319
Balance, end of period $43,000
 $2,263
 $40,278
 $10,561
 $—
 $96,102
 $—
 $732
 $4,125
 $5,181
 $—
 $10,038
                        

31

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the Twelve Months Ended SeptemberMarch 25, 20112012 (As restated)
(In thousands)
 Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
                        
NET CASH FROM (FOR) OPERATING ACTIVITIES $101,376
 $(9,652) $25,380
 $19,056
 $58,064
 $194,224
 $113,654
 $(89,658) $14,102
 $182,798
 $(367) $220,529
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES                        
Investment in joint ventures and affiliates 25,281
 23,147
 (1,356) 10,992
 (58,064) —
 (16,818) (6,588) 1,126
 21,913
 367
 —
Capital expenditures (44,247) —
 (13,179) (27,488) —
 (84,914) (40,662) —
 (22,440) (34,253) —
 (97,355)
Net cash from (for) investing activities (18,966) 23,147
 (14,535) (16,496) (58,064) (84,914) (57,480) (6,588) (21,314) (12,340) 367
 (97,355)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES                        
Term debt borrowings 13,246
 9,358
 334
 —
 —
 22,938
Net borrowings (payments) on revolving credit loans 31,000
 —
 (3,110) —
 —
 27,890
Intercompany term debt (payments) receipts —
 2,063
 —
 (2,063) —
 —
 —
 166,023
 —
 (166,023) —
 —
Term debt payments, including early termination penalties (24,211) (17,091) (536) —
 —
 (41,838) (13,831) (9,763) (306) —
 —
��(23,900)
Derivative settlement —
 —
 (50,450) —
 —
 (50,450)
Distributions (paid) received (30,559) 121
 —
 —
 —
 (30,438) (73,343) 273
 —
 —
 —
 (73,070)
Capital (contribution) infusion —
 (60,000) 60,000
 —
 —
 —
Payment of debt issuance costs —
 —
 (723) —
 —
 (723)
Exercise of limited partnership unit options —
 7
 —
 —
 —
 7
 —
 53
 —
 —
 —
 53
Payment of debt issuance costs (12,886) (9,110) (761) —
 —
 (22,757)
Excess tax benefit from unit-based compensation —
 (437) —
 —
 —
 (437)
Net cash from (for) financing activities (54,410) (14,652) (963) (2,063) —
 (72,088) (56,174) 96,149
 5,411
 (166,023) —
 (120,637)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 (2,611) —
 —
 (2,611) —
 —
 (2,473) —
 —
 (2,473)
CASH AND CASH EQUIVALENTS                        
Net increase (decrease) for the period 28,000
 (1,157) 7,271
 497
 —
 34,611
 —
 (97) (4,274) 4,435
 —
 64
Balance, beginning of period 21,000
 3,646
 29,202
 7,853
 —
 61,701
 —
 494
 4,393
 2,368
 —
 7,255
Balance, end of period $49,000
 $2,489
 $36,473
 $8,350
 $—
 $96,312
 $—
 $397
 $119
 $6,803
 $—
 $7,319
            


32

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Business Overview:

We generate our revenues primarily from sales of (1) admission to our parks, (2) food, merchandise and games inside our parks, and (3) hotel rooms, food and other attractions outside our parks. Our principal costs and expenses, which include salaries and wages, advertising, maintenance, operating supplies, utilities and insurance, are relatively fixed and do not vary significantly with attendance.

Each of our properties is run by a park general manager and operates autonomously. Management reviews operating results, evaluates performance and makes operating decisions, including the allocation of resources, on a property-by-property basis.

Aside from attendance and guest per capita statistics, discrete financial information and operating results are not prepared at the regional level, but rather at the individual park level for use by the CEO, who is the Chief Operating Decision Maker (CODM), as well as by the Chief Financial Officer, the Chief Operating Officer, the park general managers, and the Executive Vice President, Operations.


Critical Accounting Policies:
This management’s discussion and analysis of financial condition and results of operations is based upon our unaudited condensed consolidated financial statements, which were prepared in accordance with accounting principles generally accepted in the United States of America. These principles require us to make judgments, estimates and assumptions during the normal course of business that affect the amounts reported in the unaudited condensed consolidated financial statements. Actual results could differ significantly from those estimates under different assumptions and conditions.
Management believes that judgment and estimates related to the following critical accounting policies could materially affect our consolidated financial statements:
 
•Property and Equipment
 
•Impairment of Long-Lived Assets
 
•Goodwill and Other Intangible Assets
 
•Self-Insurance Reserves
 
•Derivative Financial Instruments
 
•Revenue Recognition

Income Taxes
In the thirdfirst quarter of 20122013, there were no changes in the above critical accounting policies previously disclosed in our Annual Report on Form 10-K10-K/A for the year ended December 31, 20112012. except as noted below.
Change in Depreciation Method
Effective January 1, 2013, the Partnership changed its method of depreciation for the group of assets acquired as a whole in 1983, as well as for the groups of like assets of each subsequent business acquisition from the composite method to the unit method.
Historically, the Partnership had used the composite depreciation method for land improvements, buildings, rides and equipment for the group of assets acquired as a whole in 1983, as well as for the group of like assets of each subsequent business acquisition. The unit method was only used for all individual assets purchased. Under the composite depreciation method, assets with similar estimated lives are grouped together and the several pools of assets are depreciated on an aggregate basis. No gain or loss is recognized on normal retirements of composite assets. Instead, the net book value of a retired asset reduces accumulated depreciation for the composite group. Unusual retirements of composite assets could result in the recognition of a gain or loss. Under the unit method of depreciation, individual assets are depreciated over their estimated useful lives, with gains and losses on all asset retirements recognized currently in income.
In order to improve comparability and enhance the level of precision associated with allocating historical cost, the Partnership had determined that it was preferable to change from the composite method of depreciation to the unit method of depreciation for

33

all assets. The Partnership believes that pursuant to generally accepted accounting principles, changing from the composite method of depreciation to the unit method of depreciation is a change in accounting estimate that is effected by a change in accounting principle, which should be accounted for prospectively. This prospective application will result in the discontinuance of the composite method of depreciation for all prior acquisitions with the existing net book value of each composite pool allocated to the remaining individual assets (units) in that pool with each unit assigned an appropriate remaining useful life on an individual unit basis. Assigning a useful life to each unit in the various composite pools had an insignificant effect on the weighted average useful lives of all assets that were previously accounted for under the composite method.
The change in depreciation method had an immaterial impact on the Condensed Consolidated Financial Statements for the quarter ended March 31, 2013.Future asset retirements could have a material impact on the Condensed Consolidated Financial Statements in the periods such items occur.


Adjusted EBITDA:
We believe that Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, other non-cash items, and adjustments as defined in the Amended 20102013 Credit Agreement) is a meaningful measure of park-level operating profitability because we use it for measuring returns on capital investments, evaluating potential acquisitions, determining awards under incentive compensation plans, and calculating compliance with certain loan covenants. Adjusted EBITDA is provided in the discussion of results of operations that follows as a supplemental measure of our operating results and is not intended to be a substitute for operating income, net income or cash flows from operating activities as defined under generally accepted accounting principles. In addition, Adjusted EBITDA may not be comparable to similarly titled measures of other companies.

33

The table below sets forth a reconciliation of Adjusted EBITDA to net income for the three-, nine- and twelve-month periods ended September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012.
 
 Three months ended Nine months ended Twelve months ended Three months ended Twelve months ended
 9/30/2012 9/25/2011 9/30/2012 9/25/2011 9/30/2012 9/25/2011 3/31/2013 3/25/2012 3/31/2013 3/25/2012
 (13 weeks) (13 weeks) (39 weeks) (38 weeks) (53 weeks) (52 weeks) (13 weeks) (12 weeks) (53 weeks) (52 weeks)
 (In thousands ) (In thousands)
Net income $140,688
 $152,218
 $111,595
 $71,574
 $110,767
 $8,116
Net income (loss) $(109,126) $(65,415) $58,145
 $84,807
Interest expense 26,863
 41,353
 83,902
 124,650
 116,437
 171,049
 25,763
 26,803
 109,579
 142,876
Interest income (13) (32) (31) (120) (68) (194) (40) (16) (92) (92)
Provision (benefit) for taxes 51,713
 37,844
 41,395
 21,773
 30,839
 (12,424) (35,659) (21,539) 17,638
 5,937
Depreciation and amortization 60,747
 63,448
 113,156
 110,857
 128,136
 126,382
 4,786
 4,079
 127,013
 125,892
EBITDA 279,998
 294,831
 350,017
 328,734
 386,111
 292,929
 (114,276) (56,088) 312,283
 359,420
Loss on early extinguishment of debt 34,573
 —
 34,573
 —
Net effect of swaps (175) (3,962) (1,318) (3,507) (10,930) 1,772
 9,211
 (970) 8,689
 (15,976)
Unrealized foreign currency (gain) loss (14,737) 17,314
 (14,108) 13,224
 (17,502) 549
 8,881
 (8,249) 7,949
 8,502
Non-cash equity expense (income) 362
 —
 2,630
 (228) 2,619
 (269)
Loss on impairment of goodwill and other intangibles —
 —
 —
 —
 —
 903
Non-cash equity expense 2,933
 1,700
 4,498
 1,689
Loss on impairment/retirement of fixed assets, net 25,000
 880
 24,230
 1,076
 25,719
 63,509
 600
 92
 30,844
 11,251
(Gain) on sale of other assets —
 —
 (6,625) —
Terminated merger costs —
 —
 —
 80
 150
 (79) —
 —
 —
 230
Refinancing costs —
 (195) —
 955
 —
 955
 —
 —
 —
 (34)
Other non-recurring items (as defined) 1,861
 836
 4,026
 6,107
 7,445
 6,107
 805
 1,721
 3,264
 6,823
Adjusted EBITDA (1)
 $292,309
 $309,704
 $365,477
 $346,441
 $393,612
 $366,376
 $(57,273) $(61,794) $395,475
 $371,905
                    
(1) As permitted by and defined in the Amended 2010 Credit Agreement        
(1) As permitted by and defined in the 2013 Credit Agreement(1) As permitted by and defined in the 2013 Credit Agreement    

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Results of Operations:

Our results of operations for the nine, three and twelve months ended September 30, 2012 and September 25, 2011 are not directly comparable as the current nine- and twelve month periods include an additional week of operations due to the timing of the fiscal third quarter close, and as the current three-month period includes fewer operating days due to the timing of the fiscal second and third quarter closes. Since a large portion of the variances in our statements of operations is due to the difference in the number of operating days in the current fiscal periods, we will also compare current operating results to the prior year period ended October 2, 2011.

Immaterial Restatement -

We have made two separate corrections relating to our use of the composite depreciation methodmethod.

The first correction, which impacts the Balance Sheet at March 25, 2012 and the Statement of Operations and Other Comprehensive Income for the group3 and 12 month periods ended March 25, 2012, related to a misapplication of assets acquired as a whole in 1983, as well as for groups of assets in each subsequent business acquisition.the composite depreciation method. Upon the normal retirement of an asset within a composite group, our practice generally hashad been to extend the depreciable life of that composite group beyond its original estimated useful life. In conjunction with the preparation of our financial statements for the three months ended July 1,in 2012, wemanagement determined that this methodology was not appropriate. As a result, we revised the useful lives of our composite groups to their original estimated useful life (ascribed upon acquisition) and corrected previously computed depreciation expense (and accumulated depreciation).

The second correction, which impacts the Balance Sheet at March 25, 2012 and the Statement of Operations and Other Comprehensive Income for the 12 month period ended March 25, 2012, reflects a subsequent determination that a disposition from our composite group of assets was considered to be unusual. In certain situations under the composite method, disposals are considered unusual and, accordingly, losses are not included in the composite depreciation pool but are rather charged immediately to expense. In 2013, the Partnership's initial determination of whether a specific asset retired under the composite method of depreciation in 2011 was normal was challenged by the SEC Staff. We evaluated the amount and nature of these adjustments andultimately concluded that theysuch disposition was unusual and that a $8.8 millioncharge be reflected in the 2011 financial statements.

First Quarter -

Operating results for the first quarter historically include less than 5% of our full-year revenues and attendance. The results include normal off-season operating, maintenance and administrative expenses at our ten seasonal amusement parks and four outdoor water parks, as well as daily operations at Knott's Berry Farm, which is open year-round, and Castaway Bay, which is generally open daily from Memorial Day to Labor Day plus a limited daily schedule for the balance of the year.
The following table presents key financial information for the three months ended March 31, 2013 and March 25, 2012:
  Three months ended Three months ended Increase (Decrease)
  3/31/2013 3/25/2012 $ %
  (13 weeks) (12 weeks)    
    (As restated)    
  (Amounts in thousands)
Net revenues $41,799
 $28,198
 $13,601
 48.2 %
Operating costs and expenses 102,733
 93,356
 9,377
 10.0 %
Depreciation and amortization 4,786
 4,079
 707
 17.3 %
Loss on impairment / retirement of fixed assets 600
 92
 508
 N/M
Operating loss $(66,320) $(69,329) $3,009
 (4.3)%
         
Other Data:        
Adjusted EBITDA $(57,273) $(61,794) $4,521
 (7.3)%

For the quarter ended March 31, 2013, net revenues increased to $41.8 million from $28.2 million for the first quarter of 2012. The increase between periods was primarily due to the strong first-quarter performance in both attendance and per-capita spending at Knott's Berry Farm, our only year-round property, compared with the first quarter a year ago, as well as an extra week of operations due to the earlier timing of Easter in 2013 compared to 2012. At the end of the first quarter, only five of our 15 properties were not materialin operation. The other parks, including our larger parks, Cedar Point and Kings Island located in Ohio and Canada's Wonderland in Toronto, were in the final stages of preparing to eitheropen for the 2013 operating season.

Operating costs and expenses for the quarter increased $9.3 million to $102.7 million from $93.4 million in 2012 and were in line with expectations. Operating results for the first quarter include normal off-season operating, maintenance and administrative

35

expenses at our prior annualseasonal amusement and water parks, and daily operations at Knott’s Berry Farm and Castaway Bay. The increase in first-quarter costs reflects a $5.4 million increase in operating expenses and a $2.3 million increase in selling, general and administrative ("SG&A") expenses. The cost of food, merchandise and games revenues for the period increased slightly due to sales volume increases at Knott's Berry Farm in the first quarter of 2013. The $5.4 million increase in operating expenses was due primarily to the extra week of operations in the first quarter of 2013 compared with 2012. For the quarter, labor costs increased $3.8 million, maintenance expense increased $2.2 million and operating supplies increased $0.9 million. These increases in operating costs were somewhat offset by a reduction in insurance expense due to a prior-year, non-recurring public liability claim at one of our parks. The $2.3 million increase in SG&A expenses was due primarily to increases in first-quarter advertising fees and full-time labor costs, largely related to full staffing levels.

Interest expense for the first quarter of 2013 was $25.8 million, representing a $1.0 million decrease compared to the first quarter of 2012. The decrease in interest expense was primarily due to the settlement of our Canadian swap in the first quarter of 2012.

During the first quarter of 2013, the net effect of our swaps decreased $10.2 million to a non-cash charge to earnings of $9.2 million, reflecting the regularly scheduled amortization of amounts in AOCI related to interest rate swaps, the write off of amounts in AOCI related to de-designated interest rate swaps, as well as gains from marking the ineffective and de-designated swaps to market. During the first quarter of 2013 we also recognized a $9.0 million charge to earnings for unrealized/realized foreign currency gains and losses, $8.9 million of which represents an unrealized foreign currency loss on the U.S.-dollar denominated debt held at our Canadian property. Due to our March 2013 refinancing, loan fees related to our 2010 and 2011 financings were written off, resulting in a $34.6 million charge to earnings in the period.

During the quarter, a benefit for taxes of $35.7 million was recorded to account for publicly traded partnership (PTP) taxes and the tax attributes of our corporate subsidiaries, compared to a benefit for taxes of $21.5 million in the same period a year ago. Actual cash taxes paid or quarterly financial statements. Nonetheless, the historical financial statement amounts included in this filing have been corrected for this error. We expect to likewise correct previously presented historical financial statementspayable are estimated to be included in future filings, including the annual financial statements to be included in our Annual Report on Form 10-Kbetween $14-$17 million for the 2013 calendar year.

After interest expense and the provision for taxes, net loss for the quarter totaled $109.1 million, or $1.95 per diluted limited partner unit, compared with net loss of $65.4 million, or $1.18 per diluted limited partner unit, for the first quarter a year ending December 31, 2012.ago. The larger net loss for the period is due to the loss on early debt extinguishment and a change in the unrealized/realized loss on foreign currency exchange, offset somewhat by the increased first-quarter revenues.


NineTwelve Months Ended September 30, 2012March 31, 2013 -

The fiscal nine-monthtwelve-month period ended September 30, 2012,March 31, 2013, consisted of a 39-week53-week period and included a total of 2,178 operating days compared with 3852 weeks and 2,148 operating days for the fiscal nine-monthtwelve-month period ended SeptemberMarch 25, 2011.2012. Operating days were virtually identical, as the current period had only one additional operating day.

The following table presents key financial information for the ninetwelve months ended September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012:
 Nine months ended Nine months ended Increase (Decrease) Twelve months ended Twelve months ended Increase (Decrease)
 9/30/2012 9/25/2011 $ % 3/31/2013 3/25/2012 $ %
 (39 weeks) (38 weeks)     (53 weeks) (52 weeks)    
 (Amounts in thousands except per capita spending)   (As restated)    
         (Amounts in thousands)
Net revenues $939,249
 $883,627
 $55,622
 6.3 % $1,082,055
 $1,029,801
 $52,254
 5.1%
Operating costs and expenses 580,246
 541,665
 38,581
 7.1 % 694,139
 666,535
 27,604
 4.1%
Depreciation and amortization 113,156
 110,857
 2,299
 2.1 % 127,013
 125,892
 1,121
 0.9%
Loss on impairment / retirement of fixed assets, net 24,230
 1,076
 23,154
 N/M
(Gain) on sale of other assets (6,625) —
 (6,625) N/M
Loss on impairment/retirement of fixed assets 30,844
 11,251
 19,593
 174.1%
Operating income $221,617
 $230,029
 $(8,412) (3.7)% $236,684
 $226,123
 $10,561
 4.7%
N/M - Not meaningful                
Other Data:                
Adjusted EBITDA $365,477
 $346,441
 $19,036
 5.5 % $395,475
 $371,905
 $23,570
 6.3%
Adjusted EBITDA margin 38.9% 39.2% $—
 (0.3)% 36.5% 36.1% —
 0.4%
Attendance 20,689
 20,114
 575
 2.9 %
Per capita spending $41.78
 $40.15
 $1.63
 4.1 %
Out-of-park revenues $99,526
 $97,622
 $1,904
 2.0 %


36

Net revenues totaled $1,082.1 millionfor the ninetwelve months ended September 30, 2012March 31, 2013, increasing $52.3 million, from $1,029.8 million increased $55.6 million to $939.2 million from $883.6 million duringfor the ninetrailing twelve months ended SeptemberMarch 25, 20112012. The increase in revenues reflects an increase of 575,000 visits, or 3%, in combined attendanceRevenues for the nine-monthtwelve-month period ended September 30, 2012 when compared withincreased 5% on the nine-month period ended September 25, 2011. The increase in revenues also reflects a 4%, or $1.63, increase in averagestrength of higher attendance and in-park guest per capita spending. In-park guest per capita spending represents the amount spent per attendee to gain admission to a park, plus all amounts spent while inside the park gates. The increase in per capita spending was largely due to the successful introduction of new premium benefit offerings and the positive impact of new customer messaging and dynamic pricing initiatives. Attendance increased year-over-year on virtually the same number of operating days as our season pass sales and visits increased during the same nine-month period and a 2%, or $1.9 million, increase incomparable periods.

Meanwhile, out-of-park revenues. Out-of-park revenues, includewhich represents the sale of hotel rooms, food, merchandise and other complementary activities located outside of the park gates, as well as e-commerce transaction fees. In-park guest per capita spending representsincreased slightly in the average amount spent per attendee to gain admission to a park

35

plus all amounts spent while inside the park gates. Revenuescomparable periods. The increase in net revenues for the first ninetwelve months of the yearended March 31, 2013 also reflectreflects the negative impact of currency exchange rates and the weakening U.S. dollar on our Canadian operations ($4.5(approximately $4.5 million) during the period.

For the nine-month period ended September 30, 2012, operatingOperating costs and expenses increased 7%$27.6 million, or 4%, or $38.5to $694.1 million to $580.2 million from $541.7versus $666.5 million for 2012 and were in line with expectations. The increase in costs and expenses was the nine-month period ended September 25, 2011, the net result of a $3.9$4.0 million increase in cost of goods sold, a $29.3$19.8 million increase in operating expenses, and a $5.4 million$3.9 increase in selling, generalSG&A costs. The 4% increase in cost of goods sold is consistent with anticipated cost increases associated with our efforts to improve the quality of food and other product offerings at our parks. Operating expenses increased due to several factors, including higher employment-related costs, higher operating supply costs, and higher self-insurance expenses. Employment-related costs increased approximately $12.6 million due to normal merit increases, increases in health-related benefit costs, additional staffing levels associated with new premium benefit offerings and other initiatives aimed at improving the overall guest experience, and non-recurring severance payments. Operating supplies and expenses increased approximately $5.3 million due primarily to initiatives to expand or enhance live entertainment at the parks, as well as incremental costs associated with our e-commerce platform and higher attendance. These increases in operating costs were somewhat offset by a reduction in insurance expense due to a prior-year (first quarter of 2012), non-recurring public liability claim at one of our parks.

The increase in SG&A costs was due to an increase in employment-related costs ($4.5 million), operating supplies ($3.8 million), and agency advertising fees ($2.7 million), offset by decreases in professional and administrative costs ("SG&A")($5.9 million). DepreciationThe increase in employment costs was primarily the result of higher wages and amortization expense for the period increased $2.3 millionbenefits due to normal merit increases and full-staffing levels. Increases in operating supplies and advertising fees were due to the earlier timing of Easter, as well as incremental costs to support operating initiatives including general infrastructure improvements. Professional and administrative fees decreased primarily due to a reduction in litigation expenses and costs for SEC compliance matters related to Special Meeting requests. The overall increase in capital spending when compared withcosts and expenses also reflects the prior year. The positive impact of exchange rates on our Canadian operations ($1.2 million) during the period.

Loss on impairment/retirement of fixed assets, reported fornet, during the nine-month period totaled $30.8 million, which reflects a non-cash charge to earnings of $25.0 million for the partial impairment of operating and non-operating fixed assets at Wildwater Kingdom netalong with losses on other retirements. During the twelve-month period ended March 31, 2013, two non-core assets were sold at gains totaling $6.6 million. During the twelve-month period ended March 25, 2012, a charge of an $0.8$11.3 million gain fromfor the sale of a non-operating asset at one of our properties. After depreciation, amortization, loss on impairment / retirement of fixed assets was recorded which includes the retirement of the asset as described in Note 11 to the financial statements.

Depreciation and amortization expense for the period increased $1.1 million compared with the prior period due primarily to an increase in capital expenditures for the 2012 season. After depreciation and amortization, as well as impairment charges and all other non-cash costs, operating income for the current period decreased $8.4increased $10.6 million to $221.6$236.7 million through the first nine months of 2012 from operating income of $230.0 million through the first nine months of 2011.$226.1 million.

Interest expense for the first three quarters of 2012 was $83.9twelve months ended March 31, 2013 decreased $33.3 million a decrease of $40.7to $109.6 million, from $142.9 million for the first three quarters of 2011.same twelve-month period a year ago. The reduction in interest expense iswas primarily attributable to an approximate 300 basis point (bps) decline in our effective interest rate, the result of lower fixed rates on London InterBank Offered Rate (LIBOR) within our interest-rate swap contracts. TheAdditionally during the current period, $25.0 million of term debt principal payments were made, reducing our average fixed LIBOR rate in our swap agreements declined from 5.62% in 2011 to 2.48% in 2012.debt outstanding.

ForDuring the current period, the net effect of our interest rate swaps decreased $2.2was recorded as a charge to earnings of $8.7 million between years, resulting incompared to a non-cash benefit to earnings of $1.3$16.0 million for the first nine months of 2012, as compared with a $3.5 million non-cash benefit to earnings for the nine-month period in 2011.prior period. The difference reflects the regularly scheduled amortization of amounts in Accumulated other comprehensive income ("AOCI")AOCI related to the swaps and the write off of AOCI amounts related to de-designated interest rate swaps, which were offset by gains from marking the ineffective and de-designated swaps to market and foreign currency gains related to the U.S.-dollar denominated Canadian term loan in the current period. During the current year-to-date period, we also recognized a $13.9$8.2 million net benefitcharge to earnings for unrealized/realized foreign currency gains,losses, which included a $14.1$7.9 million unrealized foreign currency gainloss on the U.S.-dollar denominated debt held at our Canadian property. Due to our March 2013 refinancing, loan fees that were paid as part

37

of our 2010 and 2011 financings were written off, resulting in a $34.6 million non-cash charge to earnings recorded in "Loss on early debt extinguishment" on the consolidated statement of operations.

During the first fiscal nine months of 2012, aA provision for taxes of $41.4$17.6 million was recorded to accountin the period for publicly traded partnership (“PTP”) taxes and the tax attributes of our corporate subsidiaries.subsidiaries and publicly traded partnership (PTP) taxes. This compares with a $21.8 million provision for taxes of $5.9 million in period ended March 25, 2012 for the first fiscal nine monthstax attributes of 2011. The year-over-year variation in the tax provision is due primarily to an increase in the income subject to tax. Actual cash taxes paid or payable for the 2012 calendar year are estimated to be between $11our corporate subsidiaries and $13 million. The Partnership also expects to receive a $10.4 million refund of prior year taxes paid resulting from the carry back of the loss recognized from the settlement of a derivative contract.PTP taxes.

After interest expense and the benefitprovision for taxes, net income for the nine months ended September 30, 2012period totaled $111.6$58.1 million, or $2.00$1.04 per diluted limited partner unit, compared with net income of $71.6$84.8 million, or $1.28$1.52 per unit, for the nine months ended September 25, 2011.a year ago.

It is important to note that the current nine-month results benefited from an additional week, or 30 more operating days, due to the timing of the third quarter fiscal close. Comparing both 2012 and 2011 on a 39-week basis, net revenues would have been up $41.1 million, or 5%, on increases in both attendance and in-park guest per capita spending. On a comparable basis, attendance would have increased 228,000 visits, primarily due to an increase in season pass attendance, and in-park per capita spending would have increased $1.67, or 4%, primarily due to new premium benefit offerings and the positive impact of new customer messaging and dynamic pricing. Over that same comparable basis, out-of-park revenues would have decreased by approximately $0.3 million, or less than 1%.

Operating costs and expenses on a comparable 39-week basis would have increased approximately $27.9 million, or 5%, due to an increase of $2.9 million, or 3%, in cost of goods sold, an increase in operating expenses of $21.9 million, or 6%, and an increase of $3.1 million, or 3%, in SG&A costs. The overall increase in costs and expenses also reflects the positive impact of exchange rates on our Canadian operations (approximately $1.6 million) during the nine-month period ended September 30, 2012.

The 3% increase in cost of goods sold is consistent with anticipated cost increases associated with our efforts to improve the quality of food and other product offerings at the parks in 2012. Operating expenses in the 39-week period increased due to several factors, including higher employment-related costs, higher maintenance and operating supply costs, and higher self-insurance expenses. Employment-related costs increased approximately $11.0 million due to normal merit increases, increases in health-related benefit costs, additional staffing levels associated with new premium benefit offerings and other initiatives aimed at improving the overall guest experience, and non-recurring severance payments. Due in part to mild weather, we were able to accelerate off-season maintenance projects into the first half of the year, resulting in year-over-year maintenance expense increasing by approximately $4.4 million. Operating supplies and expenses increased approximately $4.0 million due primarily to initiatives

36

to expand or enhance live entertainment at the parks, as well as incremental costs associated with our new e-commerce platform. During the first nine months, public liability and workers compensation expense increased $2.1 million due to claim settlements and an increase in our reserves based on management's estimates of future claims.

SG&A expense for the comparable 39-week period increased approximately $3.1 million compared to same period in 2011 due to an increase in operating supplies of $4.7 million, an increase in advertising costs of $1.5 million, and an increase in employee related costs of $2.9 million. The operating supplies and advertising increases were due to incremental costs to support 2012 operating initiatives including general infrastructure improvements. These increases in expense were offset somewhat by a reduction in litigation expenses and costs for SEC compliance matters related to Special Meeting requests in 2011.

For the fiscal nine-month period ended September 30, 2012,We believe Adjusted EBITDA (as defined in the Amended 2010 Credit Agreement), which we believe is a meaningful measure of our park-level operating results (for additional information regarding Adjusted EBITDA, including how we define and use Adjusted EBITDA, as well as a reconciliation from net income, see Note 6 in Item 6, “Selected Financial Data,” on pages 15-16). For the twelve-month period ended March 31, 2013, Adjusted EBITDA increased $23.6 million, or 6%, to $365.5 million compared with $346.4 million$395.5 million. Over this same period, our Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) increased 40 bps to 36.5% from 36.1% for the fiscal nine-monthtwelve-month period ended SeptemberMarch 25, 2011. This2012. The increase was due in part to the extra week in the current fiscal nine-month period. On a same-week basis, Adjusted EBITDA for the nine-month period would have still been up approximately $15.2 million, or 4%, between years,was primarily due to anthe increase in revenues resulting from the successful introduction of our new premium benefit offerings and dynamic pricing initiatives, as well as the successful expansion of our season pass base. These revenue gains were offset somewhat by an increase in operating costs in the period. For additional information regarding Adjusted EBITDA, including how we define Adjusted EBITDA, why we believe it provides useful information, and for a reconciliation to net income, see pages 33-34.

Third Quarter -

The fiscal three-month period ended September 30, 2012, consisted of a 13-week period and included a total of 1,177 operating days compared with 13 weeks and 1,253 operating days for the fiscal three-month period ended September 25, 2011. The variance in days is due to a shift in the operating calendar.

The following table presents key financial information for the three months ended September 30, 2012 and September 25, 2011:
  Three months ended Three months ended Increase (Decrease)
  9/30/2012 9/25/2011 $ %
  (13 weeks) (13 weeks)    
  (Amounts in thousands)
Net revenues $553,445
 $572,268
 $(18,823) (3.3)%
Operating costs and expenses 263,657
 262,188
 1,469
 0.6 %
Depreciation and amortization 60,747
 63,448
 (2,701) (4.3)%
Loss on impairment / retirement of fixed assets 25,000
 880
 24,120
 N/M
Operating income $204,041
 $245,752
 $(41,711) (17.0)%
N/M - Not meaningful        
Other Data:        
Adjusted EBITDA $292,309
 $309,704
 $(17,395) (5.6)%
Adjusted EBITDA margin 52.8% 54.1% —
 (1.3)%
Attendance 11,960
 12,933
 (973) (7.5)%
Per capita spending $42.90
 $40.84
 $2.06
 5.0 %
Out-of-park revenues $54,260
 $58,879
 $(4,619) (7.8)%

For the quarter ended September 30, 2012, net revenues decreased 3%, or $18.8 million, to $553.5 million from $572.3 million in 2011. This decrease reflects a 5% increase in average in-park per capita spending, offset by an 8% decrease in combined attendance (973,000 visits), and an 8% ($4.6 million) decrease in out-of-park revenues. The decreases in net revenues and attendance was largely attributable to the decrease in operating days in the quarter due to the way the fiscal calendar fell in 2012 compared with 2011. In-park per capita spending increased primarily due to new premium benefit offerings and the positive impact of new customer messaging and dynamic pricing. Out-of-park revenues decreased due to soft results in accommodations being somewhat offset by fees generated from our new e-commerce initiatives. The decrease in revenues for the third quarter of 2012 also reflects the negative impact of exchange rates on our Canadian operations ($2.4 million) during the period.


37

Operating costs and expenses for the quarter increased less than 1%, or $1.5 million, to $263.7 million from $262.2 million in the third quarter of 2011, the net result of a $1.4 million decrease in cost of goods sold, a $1.9 million increase in operating expenses and a $1.0 million increase in SG&A costs. Operating cost and expense variances between years were also affected by the fewer number of operating days in the current fiscal quarter, as discussed above. Depreciation and amortization expense for the quarter decreased $2.7 million due primarily to the reduction in operating days in the period, on which depreciation expense is based. During the current quarter, we recognized a non-cash charge to earnings of $25.0 million for the partial impairment of operating and non-operating fixed assets at Wildwater Kingdom.

Interest expense for the third quarter of 2012 was $26.9 million, representing an $14.5 million decrease from the interest expense for the third quarter of 2011. As mentioned in the nine-month discussion above, interest expense decreased primarily due to an approximate 300 bps decline in our effective interest rate. The decline in the effective interest rate is primarily due to lower fixed rates of LIBOR in debt associated derivative contracts, which declined from 5.62% in 2011 to 2.48% in 2012.

The net effect of our swaps during the third quarter was a non-cash benefit to earnings of $0.2 million, representing a decrease of $3.8 million from the prior year. This non-cash benefit reflects the regularly scheduled amortization of amounts in AOCI related to the swaps. During the 2012 third quarter, we also recognized a $15.0 million net benefit to earnings for unrealized/realized foreign currency gains, $14.7 million of which represents an unrealized foreign currency gain on the U.S.-dollar denominated debt held at our Canadian property.

During the quarter, a provision for taxes of $51.7 million was recorded to account for PTP taxes and the tax attributes of our corporate subsidiaries, compared to a provision for taxes of $37.8 million in the same period a year ago. The variation in the tax provision recorded between periods is due primarily to the increase in income subject to tax. After interest expense and the provision for taxes, net income for the quarter totaled $140.7 million, or $2.51 per diluted limited partner unit, compared with net income of $152.2 million, or $2.73 per unit, for the third quarter a year ago.

It is important to note that the current three-month results were negatively impacted by 76 less operating days, due to the timing of the second and third quarter fiscal closes. Comparing the third quarters of 2012 and 2011 on a comparable operating-day basis, net revenues would have been up $20.8 million, or 4%, on an increase in average in-park guest per capita spending offset by a slight decrease in attendance and a 3% decrease in out-of-park revenues.

Operating costs and expenses on a comparable operating-day basis would have increased approximately $12.4 million, or 5%, on a $2.1 million increase in cost of goods sold, an $8.4 million increase in operating expenses, and $1.9 million increase in SG&A costs. The overall increase in costs and expenses also reflects the positive impact of exchange rates on our Canadian operations (approximately $0.6 million) during the third quarter. The increase in cost of goods sold is consistent with anticipated cost increases associated with our efforts to improve the quality of food and other product offerings at the parks in 2012. Consistent with our nine-month discussion above, operating expenses in the third quarter increased as a result of higher employment-related costs, higher maintenance and operating supply costs, and higher self-insurance expenses. The increase in SG&A expense for the quarter reflects an increase in operating supplies associated with the new e-commerce initiative and general park infrastructure improvements, offset slightly by a reduction in litigation expenses and costs for SEC compliance matters related to Special Meeting requests in the third quarter of 2011.

For the current quarter, Adjusted EBITDA decreased to $292.3 million from $309.7 million for the fiscal third quarter of 2011. The $17.4 million decrease in Adjusted EBITDA was due to the shift in operating days during the quarter. On a same week basis, Adjusted EBITDA would have increased $11.3 million due to incremental revenues resulting from the introduction of new premium benefit offerings, which contributed to increased average guest per capita spending, as well as an increase in attendance in the quarter. Partially offsetting these gains on a same week basis were higher park-level operating costs during the period related to park pre-opening and off-season maintenance projects and increases in costs to support 2012 initiatives, including a new e-commerce platform and infrastructure improvements. For additional information regarding Adjusted EBITDA, including how we define Adjusted EBITDA, why we believe it provides useful information, and for a reconciliation to net income, see pages 33-34.










38

Twelve Months Ended September 30, 2012 -

The fiscal twelve-month period ended September 30, 2012, consisted of a 53-week period and included a total of 2,416 operating days compared with 52 weeks and 2,381 operating days for the fiscal twelve-month period ended September 25, 2011.

The following table presents key financial information for the twelve months ended September 30, 2012 and September 25, 2011:
  Twelve months ended Twelve months ended Increase (Decrease)
  9/30/2012 9/25/2011 $ %
  (53 weeks) (52 weeks)    
  (Amounts in thousands)
Net revenues $1,084,094
 $1,013,316
 $70,778
 7.0%
Operating costs and expenses 701,915
 650,925
 50,990
 7.8%
Depreciation and amortization 128,136
 126,382
 1,754
 1.4%
Loss on impairment of goodwill and other intangibles —
 903
 (903) N/M
Loss on impairment/retirement of fixed assets 25,719
 63,509
 (37,790) N/M
Operating income $228,324
 $171,597
 $56,727
 33.1%
N/M - Not meaningful        
Other Data:        
Adjusted EBITDA $393,612
 $366,376
 $27,236
 7.4%
Adjusted EBITDA margin 36.3% 36.2% —
 0.2%
Attendance 23,961
 23,135
 826
 3.6%
Per capita spending $41.44
 $39.91
 $1.53
 3.8%
Out-of-park revenues $119,460
 $114,258
 5,202
 4.6%

Net revenues totaled $1,084.1 million for the twelve months ended September 30, 2012, increasing $70.8 million, from $1,013.3 million for the trailing twelve months ended September 25, 2011. The increase in revenues was due to an increase in attendance of 826,000 visits, or 4%, an increase in average in-park per capita spending of $1.53, or 4%, and an increase in out-of-park revenues of $5.2 million, or 5%. The attendance increase was due to an increase in season pass visitation as well as the effect of the extra operating days in the period. The increase in average in-park guest per capita spending is primarily due to new premium benefit offerings and the positive impact from new customer messaging and dynamic pricing. Out-of-park revenues increased due to our hotel properties and due to an increase in fees generated by our new e-commerce initiatives. The increase in revenues was also positively affected by the additional operating days in the current fiscal period.

When comparing the two twelve-month periods, operating costs and expenses increased $51.0 million, or 8%, to $701.9 million in 2012 from $650.9 million in 2011. The increase in operating costs and expenses was the net result of a $5.2 million increase in cost of goods sold, a $33.2 million increase in operating expenses and an increase of $12.6 million in selling, general and administrative costs. The increase in operating expenses is primarily attributable to higher employment related expenses of $15 million, $6 million of higher maintenance costs, $1 million in higher insurance costs, and $5 million of higher operating supply costs. The increase in wages is largely due to increased seasonal labor hours as a result of expanded operating hours at several parks, additional attractions and guest services, and the overall effect of increased attendance. The increase in insurance costs was primarily the result of claim settlements and increases in our reserves based on future estimated claim liabilities. As discussed in the nine- and three-month sections, maintenance costs increased primarily due to the earlier timing of planned off-season projects, as well as an increase in the number of projects designed to add to the guest experience. The increase in operating supply costs relates primarily to an increase in attendance over the past year, as well as incremental costs associated with the new e-commerce platform. The increase in SG&A costs includes $5 million in costs largely related to the launching of several new revenue initiatives for the 2012 season, as well as a $3 million increase in advertising expense as we transitioned to a new advertising agency for 2012. Employment related expenses increased $5 million primarily due to the receipt of a non-recurring payroll tax credit of $2.5 million recorded in the fourth quarter of 2010, as well as an increase in retirement expenses and non-recurring severance payments in the current twelve-month period. The overall increase in costs and expenses also reflects the positive impact of exchange rates on our Canadian operations (approximately $1.6 million) during the twelve-month period ended September 30, 2012.

Depreciation and amortization expense for the trailing-twelve-month periods increased $1.8 million between years due to the increase in capital spending during the current-year period compared with the prior year. During the twelve months ended September 30, 2012, we recognized $0.7 million in non-cash charges for the retirement of assets in the normal course of business. Additionally, we recorded a non-cash charge of $25.0 million for the partial impairment of operating and non-operating fixed

39

assets at Wildwater Kingdom during the third quarter in 2012. This compares to a non-cash charges recognized during the twelve-month period ended September 25, 2011 of $62.0 million at California's Great America for the partial impairment of its fixed assets and $1.5 million for asset retirements across all properties. Additionally, a non-cash charge of $0.9 million was recorded during the fourth quarter of 2010 for the partial impairment of trade-names originally recorded at the time of the PPI acquisition. It is important to note that each of our parks produces positive cash flow, and that trade-name write-downs and fixed asset impairment losses do not affect cash, Adjusted EBITDA or liquidity.

After depreciation, amortization, loss on impairment of the trade-names, loss on impairment / retirement of fixed assets, and all other non-cash costs, operating income for the twelve months ended September 30, 2012 increased $56.7 million to $228.3 million compared with $171.6 million for the same period a year ago.

Interest expense for the twelve month period ended September 30, 2012 decreased $54.6 million to $116.4 million from $171.0 million for the prior twelve month period ended September 25, 2011. As mentioned in the nine-month discussion above, interest expense decreased primarily due to an approximate 300 bps decline in our effective interest rate. The decline in the effective interest rate is primarily due to lower fixed rates of LIBOR in debt associated derivative contracts, which declined from 5.62% in 2011 to 2.48% in 2012.

The net effect of our swaps during the period was a non-cash benefit to earnings of $10.9 million, representing an increase of $12.7 million from the same period ended September 25, 2011. This non-cash benefit reflects gains from marking the ineffective and de-designated swaps to market, offset somewhat by the regularly scheduled amortization of amounts in AOCI related to the swaps and foreign currency losses related to the U.S.-dollar denominated Canadian term loan in the current twelve month period. During the current twelve-month period, we also recognized a $18.7 million net benefit to earnings for unrealized/realized foreign currency gains and losses, $17.5 million of which represents an unrealized foreign currency gain on the U.S.-dollar denominated debt held at our Canadian property.

A provision for taxes of $30.8 million was recorded to account for PTP taxes and the tax attributes of our corporate subsidiaries during the twelve-month period ended September 30, 2012, compared with a net benefit for taxes of $12.4 million during the same twelve-month period a year ago. The variation in the recorded tax provision between periods is due to the higher income subject to tax for the twelve-month period ending September 30, 2012 and the tax benefit of the impairment charge recorded in the previous twelve-month period.

After interest expense and the provision for taxes, net income for the twelve months ended September 30, 2012 was $110.8 million, or $1.98 per diluted limited partner unit, compared with net income of $8.1 million, or $0.15 per diluted limited partner unit, for the twelve months ended September 25, 2011.

It is important to note that due to the timing of the third quarter fiscal close results for the twelve-month period ended September 30, 2012 benefited from an additional week (53 weeks) compared to the twelve-month period ended September 25, 2011 (52 weeks). Comparing the twelve-month periods for both 2012 and 2011 on a 53-week basis, net revenues would have been up $56.2 million, or 5%, on increases in attendance, in-park guest per capita spending and out-of-park revenues. On a comparable 53-week basis, attendance would have increased 479,000 visits, due to an increase in season pass attendance, and in-park per capita spending would have increased $1.56, or 4%, primarily due to new premium benefit offerings and the positive impact of new customer messaging and dynamic pricing. Over that same comparable basis, out-of-park revenues would have increased by approximately $3.5 million, or 3%.

On a comparable 53-week basis, operating costs and expenses would have increased approximately $40.3 million, or 6%, on a $4.2 million increase in cost of goods sold, an $25.8 million increase in operating expenses, and $10.4 million increase in SG&A costs. The overall increase in costs and expenses also reflects the favorable impact of exchange rates on our Canadian operations (approximately $1.6 million) during the period. The increase in cost of goods sold is consistent with anticipated cost increases associated with our efforts to improve the quality of food and other product offerings at the parks in 2012. Consistent with our nine- and three-month discussions above, operating expenses for the twelve-month period increased as a result of higher employment-related costs, higher maintenance and operating supply costs, and higher self-insurance expenses. The higher employment-related costs reflect normal merit increases, increases in health-related benefit costs, an overall increase in seasonal labor hours as a result of expanded operating hours at several parks, additional attractions and guest services, the overall effect of increased attendance, and non-recurring severance payments. Employment related costs also increased as result of the non-recurring payroll tax credit of $2.5 million recorded in the fourth quarter of 2010. The higher maintenance costs in the current-year twelve-month period relate primarily to the earlier timing of planned off-season projects, which was possible as a result of the mild early-season weather in 2012. The increase in operating supplies was driven by higher attendance and new initiatives to expand or enhance live entertainment at the parks, as well as incremental costs associated with our new e-commerce platform. The increase in public liability and workers compensation expense was the result of a claim settlement in the first quarter of 2012

40

and increases in our reserves based on management's estimates of future claims. The higher SG&A costs reflect incremental costs associated with the launching of several new revenue initiatives for the 2012 season, including the new e-commerce platform, general park infrastructure improvements, and an increase in advertising expenses as we transitioned to a new advertising agency for 2012. These increases in SG&A costs were somewhat offset by a reduction in litigation expenses and costs for SEC compliance matters related to Special Meeting requests in 2011.

For the twelve-month period ended September 30, 2012, Adjusted EBITDA increased to $393.6 million compared with $366.4 million for the twelve months ended September 25, 2011, while our Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) increased slightly to 36.3% from 36.2% a year ago. A portion of this increase in Adjusted EBITDA was due to the extra week in the current fiscal twelve-month period. On a same-week basis, Adjusted EBITDA would have been up $23.4 million, or 6%, year over year, due to revenue growth driven by increased attendance and the strong 2011 fourth quarter operating performance. These gains were offset somewhat by incremental operating costs associated with the higher attendance and new operating initiatives for 2012. For the comparable twelve-month periods, our Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) would have increased 30 bps to 36.3% from 36.0% last year. For additional information regarding Adjusted EBITDA, including how we define Adjusted EBITDA, why we believe it provides useful information, and for a reconciliation to net income, see pages 33-34.
October 2012 -

Based on preliminary results through the end of October, revenues for the first ten months of the year increased approximately $37 million to $1,036 million from $999 million for the same period a year ago. The revenue increase is the result of a 4% increase in average in-park guest per capita spending to $42.00 and attendance levels that were comparable with last year's record results (22.7 million visits). Out-of-park revenues of approximately $108 million through October were also comparable with this time last year.

Liquidity and Capital Resources:
With respect to both liquidity and cash flow, we ended the thirdfirst quarter of 20122013 in sound condition. The negative working capital ratio (current assetsliabilities divided by current liabilities)assets) of 1.01.4 at September 30, 2012March 31, 2013 reflects the impact of our seasonal business. Cash, receivables and inventories are at normal seasonal levels and credit facilities are in place to fund current liabilities.

In July 2010, we issued $405 million of 9.125% senior unsecured notes, maturing in 2018, in a private placement, including $5.6 million of Original Issue Discount (OID) to yield 9.375%. Concurrently with this offering, we entered into a new $1,435 million credit agreement (the "2010 Credit Agreement"), which included a $1,175 million senior secured term loan facility and a $260 million senior secured revolving credit facility. The net proceeds from the offering of the notes, along with borrowings under the 2010 Credit Agreement, were used to repay in full all amounts outstanding under our previous credit facilities.

In February 2011, we amended the 2010 Credit Agreement (as so amended, the "Amended 2010 Credit Agreement") and extended the maturity date of the U.S. term loan portion of the credit facilities by one year. Under the Amended 2010 Credit Agreement, the extended U.S. term loan iswas scheduled to mature in December of 2017 and bearsbore interest at a rate of LIBOR plus 300 bps, with a LIBOR floor of 100 bps.
The Amended 2010 Credit Agreement also includesincluded a $260 million revolving credit facility. Under the agreement, the Canadian portion of the revolving credit facility has a limit of $15 million. U.S. denominated loans made under the revolving credit facility bear interest at a rate of LIBOR plus 400 bps (with no LIBOR floor). Canadian denominated loans made under the Canadian portion of the facility also bear interest at a rate of LIBOR plus 400 bps (with no LIBOR floor). The revolving credit facility, which matureswas scheduled to mature in July of 2015, also providesprovided for the issuance of documentary and standby letters of credit.

In May 2012, the Partnership prepaidMarch 2013,we issued $16500 million of long-term debt to meet its obligation5.25% senior unsecured notes, maturing in 2021, in a private placement, with no OID. Concurrently with this offering, we entered into a new $885 million credit agreement (the "2013 Credit Agreement"), which included a $630 million senior secured term loan facility and a $255 million senior secured revolving credit facility. The terms of the senior secured term loan facility include a maturity date of March 15, 2020 and an interest rate of LIBOR plus 250 bps with a LIBOR floor of 75 bps. The term loan amortizes at $6.3 million annually. The net proceeds from the notes and borrowings under the Excess Cash Flow ("ECF") provision2013 Credit Agreement were used to repay in full all amounts outstanding under the previous credit facilities. The facilities provided under the 2013 Credit Agreement are collateralized by substantially all of the assets of the Partnership.

Terms of the 2013 Credit Agreement. AsAgreement include a resultrevolving credit facility of this prepayment, as well as additional optional long-term debt prepayments made in August 2011 and September 2012a combined $255 million. Under the 2013 Credit Agreement, the Canadian portion of the revolving credit facility has a limit of $1815 million. U.S. denominated and Canadian denominated loans made under the revolving credit facility bear interest at a rate of LIBOR plus 225 bps (with no LIBOR floor). The revolving credit facility is scheduled to mature in March 2018 and also provides for the issuance of documentary and standby letters of credit. The 2013 Credit Agreement requires the Partnership to pay a commitment fee of $9 million50, respectively, bps per annum on the Company has no scheduled term-debt principal payments untilunused portion of the first quarter of 2015.credit facilities.
At the end of the quarter, we had a total of $1,131.1$630.0 million of variable-rate term debt (before giving consideration to fixed-rate interest rate swaps), $400.7$901.3 million of fixed-rate debt (including OID), no$96.0 million outstanding borrowings under our revolving

38

credit facility, and cash on hand of $96.1$10.0 million. After letters of credit, which totaled $16.5$16.4 million at September 30, 2012March 31, 2013, we had $243.5$142.6 million of available borrowings under the revolving credit facility under the Amended 20102013 Credit Agreement.

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Our $405 million of senior unsecured notes require semi-annual interest payments in February and August, with the principal due in full on August 1, 2018. The notes may be redeemed, in whole or in part, at any time prior to August 1, 2014 at a price equal to 100% of the principal amount of the notes redeemed plus a “make-whole” premium together with accrued and unpaid interest, if any, to the redemption date. Thereafter, the notes may be redeemed, in whole or in part, at various prices depending on the date redeemed. Prior to August 1, 2013, up to 35% of the notes may be redeemed with the net cash proceeds of certain equity offerings at 109.125%. Our $500 million of senior unsecured notes pay interest semi-annually in March and September, with the principal due in full on March 15, 2021. The notes may be redeemed, in whole or in part, at any time prior to March 15, 2016 at a price equal to 100% of the principal amount of the notes redeemed plus a “make-whole” premium together with accrued and unpaid interest, if any, to the redemption date. Thereafter, the notes may be redeemed, in whole or in part, at various prices depending on the date redeemed. Prior to March 15, 2016, up to 35% of the notes may be redeemed with the net cash proceeds of certain equity offerings at 105.25%.
In order to maintain fixed interest costs on a portion of our domestic term debt, in September 2010 we entered into several interest rateforward-starting swap agreements ("September 2010 swaps") to effectively convert a total of $600$600 million of variable-rate debt to fixed rates beginning in October 2011. As a result of the February 2011 amendment to our credit agreement,the 2010 Credit Agreement, the LIBOR floor on the term loan portion of ourits credit facilities decreased to 100 bps from 150 bps, causing a mismatch in critical terms of the September 2010 swaps and the underlying debt. Because of the mismatch of critical terms, we determined the September 2010 swaps, which were originally designated as cash flow hedges, were no longer highly effective, resulting in the de-designation of the September 2010 swaps as of the end of February 2011. As a result of this ineffectiveness, gains of $7.2 million recorded in AOCI through the date of de-designation are being amortized through December 2015.
In order to monetize the difference in the LIBOR floors, in March 2011, we entered into several additional forward-starting basis-rate swap agreements ("March 2011 swaps") that, when combined with the September 2010 swaps, effectively converted $600$600 million of variable-rate debt to fixed rates beginning in October 2011. The September 2010 swaps and the March 2011 swaps, were jointly designated as cash flow hedges, maturing in December 2015 and had fixed LIBOR at a weighted average rate of 2.46%. For the period that the September 2010 swaps were de-designated, their fair value decreased by $3.3 million, the offset of which have beenwas recognized as a direct charge to earnings and recorded to “Net effect of swaps” on the consolidated statement of operations along with the regular amortization of “Other comprehensive income (loss)” balances related to these swaps. No other ineffectiveness related to these swaps was recorded in any period presented.
In May 2011, we entered into four additional forward-starting basis-rate swap agreements ("May 2011 swaps") that effectively converted another $200 million of variable-rate debt to fixed rates beginning in October 2011. These swaps, which were designated as cash flow hedges, mature in December 2015 and fixed LIBOR at a weighted average rate of 2.54%.
As a result of the 2013 Credit Agreement, the previously described swaps were de-designated as the spreads of the 2013 Credit Agreement decreased to 75 bps from 100 bps in the Amended 2010 Credit Agreement. The May 2011 swaps remain de-designated as the amount of variable rate debt decreased to $630 million, and accordingly, the May 2011 swaps are now over hedged. On March 4, 2013, we entered into several forward-starting swap agreements ("March 2013 swaps") that were not designated as a cash flow hedge on that date. On March 6, 2013, the March 2013 swaps were combined with the September 2010 swaps and the March 2011 swaps, and designated as cash flow hedges, effectively converting $600 million of variable-rate debt to fixed rates. The September 2010 swaps, the March 2011 swaps, and the March 2013 swaps were jointly designated as cash flow hedges, mature in December 2015 and fix LIBOR at a weighted average rate of 2.46%.
In May 2011, we entered into four additional forward-starting basis-rate swap agreements ("May 2011 swaps") that effectively convert another $200 million of variable-rate debt to fixed rates beginning in October 2011. These swaps, which have been designated as cash flow hedges, mature in December 2015 and fix LIBOR at a weighted average rate of 2.54%2.331%. TheAt the time of the de-designation, the fair market value of all $800the September 2010 swaps, March 2011 swaps, and March 2013 swaps was $23.8 million, which will be amortized out of forward-starting swap agreements atAOCI into expense in "Net effect of swaps" in the unaudited condensed consolidated statements of operations and comprehensive incomethrough December 2015. At the time of the de-designation, the fair market value of the May 2011 swaps was $7.8 million and was immediately recognized into expense in "Net effect of swaps" in the unaudited condensed consolidated statements of operations.
At March 31, 2013, the fair market value of the September 30, 20122010 swaps, the March 2011 swaps and the March 2013 swaps was a liability of $34.723.4 million, which was recorded in "Derivative Liability"“Derivative Liability” on the condensed consolidated balance sheet. The May 2011 swaps had a fair market value of $7.6 million as of March 31, 2013 and was recorded in “Derivative Liability” on the condensed consolidated balance sheet.


39

The following table presents our September 2010 swaps, March 2011 swaps, and May 2011 swaps, and March 2013 swaps which became effective on October 1, 2011 and mature December 15, 2015, along with their notional amounts and their effective fixed interest rates.
($'s in thousands)Forward-Starting Interest Rate Swaps
 Notional Amounts LIBOR Rate
 $200,000
 2.40%
 75,000
 2.43%
 50,000
 2.42%
 150,000
 2.55%
 50,000
 2.42%
 50,000
 2.55%
 25,000
 2.43%
 50,000
 2.54%
 30,000
 2.54%
 70,000
 2.54%
 50,000
 2.54%
Total $'s / Average Rate$800,000
 2.48%
In 2006, we entered into several fixed-rate interest rate swap agreements totaling $1.0 billion. The weighted average fixed-LIBOR rate on these interest rate swaps, which matured on October 1, 2011, was 5.6%. Based upon our scheduled quarterly regression analysis testing of the effectiveness for the accounting treatment of these swaps, as well as changes in the forward interest rate yield curves used in that testing, the swaps were deemed to be ineffective beginning in October 2009 and continued to be deemed ineffective through their maturity. This resulted in the swaps not qualifying for hedge accounting during the fourth quarter of 2009 and through 2010 and the first three quarters of 2011.
In 2007, we entered into two cross-currency swap agreements, which matured in February 2012 and effectively converted $268.7 million of term debt at the time, and the associated interest payments, from U.S. dollar denominated debt at a rate of LIBOR plus

42

200 bps to 6.3% fixed-rate Canadian dollar denominated debt. As a result of paying down the underlying Canadian term debt with net proceeds from the sale of surplus land near Canada’s Wonderland in August 2009, the notional amounts of the underlying debt and the cross-currency swaps no longer matched. Because of the mismatch of the notional amounts, we determined the swaps were no longer highly effective going forward, resulting in the de-designation of the swaps as of the end of August 2009.
Based on the change in currency exchange rates from the time we originally entered into the cross-currency swap agreements in 2007, the termination liability of the swaps had increased steadily over time. In order to protect ourselves from further downside risk to the swaps' termination value, in May 2011 we entered into several foreign currency swap agreements to fix the exchange rate on 50% of the liability. In July 2011, we fixed the exchange rate on another 25% of the swap liability, leaving only 25% exposed to further fluctuations in currency exchange rates. In February 2012, these swap agreements were settled for $50.5 million.
In addition to other covenants and provisions, including those discussed below, the Amended 2010 Credit Agreement contains an initial three-year requirement (from July 2010) that at least 50% of our aggregate term debt and senior notes be subject to either a fixed interest rate or interest rate protection. As of September 30, 2012, we were in compliance with this requirement.
The following table presents fixed-rate swaps that matured on October 1, 2011. The table also presents our cross-currency swaps that matured on February 15, 2012 and their notional amounts and interest rates as of their maturity date.
Interest Rate Swaps
(

The Amended 20102013 Credit Agreement requires us to maintain specified financial ratios, which if breached for any reason, including a decline in operating results due to economic or weather conditions, could result in an event of default under the agreement. The most critical of these ratios is the Consolidated Leverage Ratio, which is measured on a trailing-twelve-month quarterly basis. At the end of the thirdfirst quarter of 2012,2013, this ratio was set at 6.00x6.25x consolidated total debt (excluding the revolving debt)-to-consolidated EBITDA. The ratio will remain at that level through the end of the first quarter in 2014 and will decrease each second quarter beginning in the second quarter of 2014. Based on our trailing-twelve-month results ending September 30, 2012March 31, 2013, our Consolidated Leverage Ratio was 3.89x, providing $138.3148.2 million of EBITDA cushion on the ratio at the end of the thirdfirst quarter. We were in compliance with all other covenants under the Amended 20102013 Credit Agreement as of September 30, 2012March 31, 2013.
The Amended 20102013 Credit Agreement allows restricted payments of up to $20$60 million annually so long as no default or event of default has occurred and is continuing. These restricted payments are not subject to any specific covenants. In 2012, additionalAdditional restricted payments are allowed to be made based on an excess-cash-flow formula, should our pro-forma Consolidated Leverage Ratio be less than or equal to 4.50x,5.0x, measured on a trailing-twelve-month quarterly basis.
At March 31, 2013, the notes maturing in 2018 have more restrictive covenants than the 2021 notes. The terms of the indenture governing our 2018 notes permit us to make restricted payments of $20 million annually. Our ability to make additional restricted payments in 20122013 and beyond is permitted should our trailing-twelve-month Total-Indebtedness-to-Consolidated-Cash-Flow Ratio be less than or equal to 4.75x, measured on a quarterly basis.
In accordance with these debt provisions, on August 9, 2012,February 27, 2013, we announced the declaration of a distribution of $0.40$0.625 per limited partner unit, which was paid on September 15, 2012,March 25, 2013, and on November 6, 2012,May 8, 2013 we announced the declaration of a distribution of $0.40$0.625 per limited partner unit, payable DecemberJune 17, 2012, which will bring our total distributions paid in 2012 to $1.60 per limited partner unit.2013.
Existing credit facilities and cash flows from operations are expected to be sufficient to meet working capital needs, debt service, partnership distributions and planned capital expenditures for the foreseeable future.




43

Off Balance Sheet Arrangements:
We had $16.5$16.4 million in letters of credit, which are primarily in place to backstop insurance arrangements, outstanding on our revolving credit facility as of September 30, 2012March 31, 2013. We have no other significant off-balance sheet financing arrangements.


Forward Looking Statements
Some of the statements contained in this report (including the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section) that are not historical in nature are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements as to our expectations, beliefs and strategies regarding the future. These forward-looking statements may involve risks and uncertainties that are difficult to predict, may be beyond our control and could cause actual results to differ materially from those described in such statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can

40

give no assurance that such expectations will prove to be correct. Important factors, including those listed under Item 1A in the Company’s Annual Report on Form 10-K, could adversely affect our future financial performance and cause actual results to differ materially from our expectations.


ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to market risks from fluctuations in interest rates, and to a lesser extent on currency exchange rates on our operations in Canada and, from time to time, on imported rides and equipment. The objective of our financial risk management is to reduce the potential negative impact of interest rate and foreign currency exchange rate fluctuations to acceptable levels. We do not acquire market risk sensitive instruments for trading purposes.
We manage interest rate risk through the use of a combination of fixed-rate long-term debt, interest rate swaps that fix a portion of our variable-rate long-term debt, and variable-rate borrowings under our revolving credit facility. Translation exposures with regard to our Canadian operations are not hedged.
For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the change in fair value of the derivative instrument is reported as a component of “Other comprehensive income (loss)” and reclassified into earnings in the period during which the hedged transaction affects earnings. Changes in fair value of derivative instruments that do not qualify as effective hedging activities are reported as “Net effect of swaps” in the consolidated statement of operations. Additionally, the “Other comprehensive income (loss)” related to interest rate swaps that become ineffective is amortized over the remaining life of the interest rate swap, and reported as a component of “Net effect of swaps” in the consolidated statement of operations.
As of March 31, 2013, we had $901.3 million of fixed-rate senior unsecured notes and $630 million of variable-rate term debt. After considering the impact of interest rate swap agreements, approximately $1.2 billionvirtually all of our outstanding long-term debt represents fixed-rate debt and approximately $331.1 million represents variable-rate debt. Assuming an average balance on our revolving credit borrowings of approximately $61$50 million, a hypothetical 100 bps increase in 30-day LIBOR on our variable-rate debt, after the fixed-rate swap agreements, would lead to an increasea decrease of approximately $2.5$0.5 million in annual cash interest costs.
A uniform 10% strengthening of the U.S. dollar relative to the Canadian dollar would result in a $5.4$4.4 million decrease in annual operating income.

ITEM 4. CONTROLS AND PROCEDURES

(a)Evaluation of Disclosure Controls and Procedures - 
The Partnership maintains a system of controls and procedures designed to ensure that information required to be disclosed by the Partnership in its reports under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified by the Commission and that such information is accumulated and communicated to the Partnership’s management, including the Chief Executive Officer and the Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. As of September 30, 2012March 31, 2013, the PartnershipPartnership's management has evaluated the effectiveness of the design and operation of itsthe Partnership's disclosure controls and procedures under supervision of management, includingand with the participation of the Partnership's Chief Executive Officer and Chief Financial Officer. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Partnership's disclosure controls and procedures are effective.were effective as of March 31, 2013.
 






44


(b)Changes in Internal Control Over Financial Reporting -
As disclosed in Amendment No. 2 to the Partnership's Form 10-K/A for the fiscal year ended December 31, 2012, in connection with restating the Partnership's consolidated financial statements therein, management identified a material weakness in internal control over financial reporting related to the Partnership's fixed assets, resulting in a conclusion that the Partnership's internal control over financial reporting was not effective as of December 31, 2012. Remediation of this material weakness in internal control over financial reporting was accomplished through the conversion of all composite assets to the unit method of depreciation as of January 1, 2013. The conversion to the unit method eliminates the concept of normal vs. unusual as any and all asset retirements with a remaining net book value will be reflected in the Consolidated Statements of Operations and Comprehensive Income.
There were no other changes in the Partnership’s internal controlscontrol over financial reporting in connection with its 2012that occurred during the fiscal quarter ended thirdMarch 31, 2013-quarter evaluation, or subsequent to such evaluation, that have materially affected, or are reasonably likely to materially affect, the Partnership’s internal control over financial reporting.


41


PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Jacob T. Falfas vs. Cedar Fair, L.P.

On July 23, 2010, Jacob T. (Jack) Falfas, the former Chief Operating Officer, filed a demand for private arbitration as provided by his employment agreement. In that demand, Mr. Falfas disputed the Partnership's position that he had resigned in June 2010, alleging instead that his employment with the Partnership was terminated without cause. That dispute went to private arbitration, and on February 28, 2011, an arbitration panel ruled 2-to-1 in favor of Mr. Falfas finding that he did not resign but was terminated without cause. Rather than fashioning a remedy consistent with the employment agreement, the panel ruled that Mr. Falfas should be reinstated. The Partnership believed that the arbitrators exceeded their authority by creating a remedy not legally available to Mr. Falfas under his contract with Cedar Fair. On March 21, 2011, the Partnership filed an action  in Erie County Court of Common Pleas (Case No. 2011 CV 0217) seeking  to have the award modified or vacated. On March 22, 2011, Mr. Falfas commenced a related action in the Erie County Court of Common Pleas  (Case No. 2011 CV 0218) demanding enforcement of the arbitration ruling.  The two actions were combined into Case No. 2011 CV 0217, before Judge Roger E. Binette. On February 22, 2012 the Erie County Common Pleas Court issued a ruling partially vacating the arbitration award and declaring that Mr. Falfas was not entitled to reinstatement of his employment.  The ruling also provided that in accord with paragraph 2 of the arbitration award Mr. Falfas was entitled to certain back pay and other benefits under his 2007 Amended and Restated Employment Agreement as if the employment relationship had not been severed. In March of 2012 Mr. Falfas and the Company both filed appeals of the Court's ruling with the Ohio Sixth District Court of Appeals in Toledo, Ohio. The parties participated in mediation on May 7, 2012 at the direction ofOn April 19, 2013 the Court of Appeals.Appeals issued a ruling reversing the Erie County Common Pleas Court's  order regarding the reinstatement of Mr. Falfas' employment and  affirming the order regarding back pay and other benefits and remanding the case back to the Erie County Common Pleas Court for further proceedings.  The mediation did not result inCompany has until June 3, 2013 to file a settlement. As a resultnotice of appeal with the matter will now proceed through the normal appeal process which typically takes six to nine months to complete. Briefs have been filed and the parties are awaiting scheduling of oral argument.Ohio Supreme Court.  The Partnership believes the liability recorded as of September 30, 2012March 31, 2013 to be adequate and does not expect the arbitration ruling or the court order to materially affect its financial results in future periods.


ITEM 1A. RISK FACTORS
There have been no material changes to the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2011.2012.

ITEM 5. OTHER INFORMATION

TheOn May 8, 2013, the Partnership usesannounced that it had identified a historical classification error in the Partnership's initial determination of whether a specific asset retired under the composite method of depreciation methodwas normal or unusual. The error resulted in the overstatement of Income before taxes of $8.8 million for the groupperiod ended December 31, 2011.

Under the composite method of depreciation, no gain or loss is recognized on normal retirements of composite assets. Instead the net book value after salvage of a retired asset reduces accumulated depreciation for the composite group. Abnormal or unusual retirements of composite assets acquiredwould result in the recognition of a gain or loss. The error resulted in the Partnership's application of its qualitative policy used to determine whether an asset retirement is normal or unusual. The asset retirement being restated was originally classified as normal, thus reducing accumulated depreciation. Management identified that the Partnership had failed to consider whether the specific asset had a whole in 1983,substantial net book value and/or if the retirement caused a deviation from the estimated composite depreciation survivor curve as well as for groupsother minor qualitative issues.

The restatement amount of assets$8.8 million is recorded in each subsequent business acquisition. Upon the normalLoss on impairment / retirement of an asset within a composite group, the Partnership's practice generally has been to extend the depreciable life of that composite group beyond its original estimated useful life. In conjunction with the preparation of the Partnership's financial statements for the interim period ended July 1, 2012, management determined that this methodology was not appropriate. As a result, the Partnership revised the useful lives of its composite groups to their original estimated useful life (ascribed upon acquisition) and corrected previously computed depreciation expense (and accumulated depreciation). Management evaluated the amount and nature of these adjustments and concluded that they were not material to either the Partnership's prior annual or quarterly financial statements. Nonetheless, the historical financial statement amounts included in this filing have been corrected for this error. The Partnership expects to likewise correct previously presented historical financial statements to be included in future filings, including the annual financial statements to be includedfixed assets, net in the Partnership's Annual Report on Form 10-K for10-K/A filing to correct the year ending December 31, 2012.previous error.

ForAs disclosed in the year ended December 31, 2011Partnership's prior filings, the correctionPartnership had determined that it was preferable to change from the composite method of depreciation to the unit method of depreciation with the change effective January 1, 2013. The Partnership believes that pursuant to generally accepted accounting principles, changing from the composite method of depreciation to the unit method of depreciation is a change in accounting estimate that is effected by a change in accounting principle, which should be accounted for prospectively. The change to the unit method of depreciation eliminates the qualitative judgment needed to determine whether an asset retirement is normal or unusual, as the net book value of all retirements will decrease net income (loss) by $1.4 millionbe recorded in the Consolidated Statements of Operations and the provision (benefit) for taxes will decrease by $0.6 million.  For the 2010 annual financial statements, the correction will decrease net income (loss) by $1.5 million and the provision (benefit) for taxes will decrease by $0.6 million.  For the 2009 annual financial statements, the correction will decrease net income (loss) by $1.2 million and the provision (benefit) for taxes will decrease $0.4 million.  The balance sheet as of December 31, 2011 has already been corrected in this Form 10-Q.Comprehensive Income.



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ITEM 6. EXHIBITS
 
Exhibit (4.1)
Rights Agreement between Cedar Fair, L.P. and American Stock Transfer and Trust Co., LLC, dated April 5, 2010. Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on April 6, 2010.

Exhibit (4.2)
Indenture, by and among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and The Bank of New York Mellon, as trustee, dated as of July 29, 2010 (including form of 9.125% Senior Notes due 2018). Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (4.3)
Registration Rights Agreement, among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and J.P. Morgan Securities Inc., as representative of the initial purchasers named therein, dated July 29, 2010. Incorporated herein by reference to Exhibit 4.2 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (10.1)Cedar Fair, L.P. Amended and Restated Executive Severance Plan dated July 18, 2007. Incorporated herein by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q (File No. 001-09444) filed on August 3, 2007.
Exhibit (31.1)  Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (31.2)  Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (32)  Certifications Pursuant to 18 U.S.C. 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
  
Exhibit (101)  The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012March 31, 2013 formatted in Extensible Business Reporting Language (XBRL): (i) The Condensed Consolidated Statements of Income, (ii) the Condensed Consolidated Balance Sheets, (iii) The Condensed Consolidated Statements of Cash Flow, (iv) the Condensed Consolidated Statement of Equity and, (v) related notes
 

4643

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
  CEDAR FAIR, L.P. 
  (Registrant) 
    
  By Cedar Fair Management, Inc. 
  General Partner 
   
Date:November 7, 2012May 10, 2013/s/ Matthew A. Ouimet
  Matthew A. Ouimet
  President and Chief Executive Officer
    
Date:November 7, 2012May 10, 2013/s/ Brian C. Witherow
  Brian C. Witherow
  Executive Vice President and
  Chief Financial Officer

 

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INDEX TO EXHIBITS
 
Exhibit (4.1)
Rights Agreement between Cedar Fair, L.P. and American Stock Transfer and Trust Co., LLC, dated April 5, 2010. Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on April 6, 2010.

Exhibit (4.2)
Indenture, by and among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and The Bank of New York Mellon, as trustee, dated as of July 29, 2010 (including form of 9.125% Senior Notes due 2018). Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (4.3)
Registration Rights Agreement, among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and J.P. Morgan Securities Inc., as representative of the initial purchasers named therein, dated July 29, 2010. Incorporated herein by reference to Exhibit 4.2 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (10.1)Cedar Fair, L.P. Amended and Restated Executive Severance Plan dated July 18, 2007. Incorporated herein by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q (File No. 001-09444) filed on August 3, 2007.
Exhibit (31.1)  Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (31.2)  Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (32)  Certifications Pursuant to 18 U.S.C. 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
  
Exhibit (101)  The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012March 31, 2013 formatted in Extensible Business Reporting Language (XBRL): (i) The Condensed Consolidated Statements of Income, (ii) the Condensed Consolidated Balance Sheets, (iii) The Condensed Consolidated Statements of Cash Flow, (iv) the Condensed Consolidated Statement of Equity and, (v) related notes
 

4845
s in thousands)		Interest Rate SwapsDerivatives designated as hedging instruments Derivatives not designated as hedging instruments
Notional Amounts LIBOR RateNotional Amounts LIBOR Rate Notional Amounts LIBOR Rate
$200,000
 2.40%$200,000
 2.27% 50,000
 2.54%
75,000
 2.43%75,000
 2.30% 30,000
 2.54%
50,000
 2.42%50,000
 2.29% 70,000
 2.54%
150,000
 2.55%150,000
 2.43% 50,000
 2.54%
50,000
 2.42%50,000
 2.29%    
50,000
 2.55%50,000
 2.47%    
25,000
 2.43%25,000
 2.30%    
50,000
 2.54%
30,000
 2.54%
70,000
 2.54%
50,000
 2.54%
Total
 
The following table presents our fixed-rate swaps, which matured in October 2011, and the cross-currency swap which matured in February 2012, along with their notional amounts and their fixed interest rates:
($'s in thousands)Interest Rate Swaps Cross-currency Swaps
 Notional Amounts LIBOR Rate Notional Amounts Implied Interest Rate
 $200,000
 5.64% $255,000
 7.31%
 200,000
 5.64% 150
 9.50%
 200,000
 5.64%    
 200,000
 5.57%    
 100,000
 5.60%    
 100,000
 5.60%    
Total $'s / Average Rate$1,000,000
 5.62% $255,150
 7.31%
        



12

Effects of Derivative Instruments on Income (Loss) and Other Comprehensive Income (Loss) for the three-month periods ended September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012:
 
(In thousands): Amount of Gain (Loss) Recognized in  Accumulated OCI on Derivatives (Effective Portion) 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
Derivatives designated as
Cash Flow Hedging
Relationships
 Three months ended Three months ended   Three months ended Three months ended   Three months ended Three months ended
 9/30/12 9/25/11   9/30/12 9/25/11   9/30/12 9/25/11
Interest rate swaps $438
 $(17,085) Interest Expense $(2,990) $—
 Net effect of swaps $—
 $15,396
                 
(In thousands): Amount of Gain (Loss) Recognized in  Accumulated OCI on Derivatives (Effective Portion) 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
Derivatives designated as
Cash Flow Hedging
Relationships
 Three months ended Three months ended   Three months ended Three months ended   Three months ended Three months ended
 3/31/13 3/25/12   3/31/13 3/25/12   3/31/13 3/25/12
Interest rate swaps $2,266
 $120
 Interest Expense $(2,797) $(2,793) Net effect of swaps $435
 $—
                 

13

(In thousands): 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
Derivatives not designated as Cash Flow
Hedging Relationships
   Three months ended Three months ended
   9/30/12 9/25/11
Cross-currency swaps (1)
 Net effect of swaps $—
 $13,622
Foreign currency swaps 
 Net effect of swaps —
 (13,210)
    $—
 $412
       
(In thousands): 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
Derivatives not designated as Cash Flow
Hedging Relationships
   Three months ended Three months ended
   3/31/13 3/25/12
Cross-currency swaps (1)
 Net effect of swaps $—
 $(4,999)
Foreign currency swaps 
 Net effect of swaps —
 6,278
Interest rate swaps (2)
 Net effect of swaps (1,471) —
    $(1,471) $1,279
       
(1)The cross-currency swaps became ineffective and were de-designated in August 2009.
(2)The May 2011 interest rate swaps were de-designated in March 2013.
During the quarter ended September 30, 2012March 31, 2013, in addition to the $1.0 million loss recognized in income on the ineffective portion of derivatives and on the derivatives not designated as cash flow hedges (as noted in the tables above), $0.27.8 million of incomeexpense related to the write off of OCI balances on our May 2011 swaps and $0.4 million of expense representing the regular amortization of amounts in AOCI was recorded in the condensed consolidated statements of operations for the quarter. The effect of this amortizationthese amounts resulted in a benefitcharge to earnings of $0.29.2 million recorded in “Net effect of swaps.”

For the three-month period ended SeptemberMarch 25, 20112012, in addition to the $15.81.3 million gain recognized in income on the ineffective portion of derivatives noted in the tabletables above, $11.20.5 million of expense representing the amortization of amounts in AOCI for the swaps and $0.60.2 million of foreign currency lossgain in the quarter related to the U.S. dollar denominated Canadian term loan were recorded in “Net effect of swaps” in the condensed consolidated statements of operations. The net effect of these amounts resulted in a benefit to earnings of $4.0 million recorded in “Net effect of swaps.”

Effects of Derivative Instruments on Income (Loss) and Other Comprehensive Income (Loss) for the nine-month periods ended September 30, 2012 and September 25, 2011: 
(In thousands): Amount of Gain (Loss) Recognized in  Accumulated OCI on Derivatives (Effective Portion) 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
Derivatives designated as
Cash Flow Hedging
Relationships
 Nine months ended Nine months ended   Nine months ended Nine months ended   Nine months ended Nine months ended
 9/30/12 9/25/11   9/30/12 9/25/11   9/30/12 9/25/11
Interest rate swaps $(2,308) $(36,788) Interest Expense $(9,004) $—
 Net effect of swaps $—
 $43,190
                 

13


(In thousands): 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
Derivatives not designated as Cash Flow
Hedging Relationships
   Nine months ended Nine months ended
   9/30/12 9/25/11
Interest rate swaps (1)
 Net effect of swaps $—
 $(3,342)
Cross-currency swaps (2)
 Net effect of swaps (4,999) 15,582
Foreign currency swaps 
 Net effect of swaps 6,278
 (17,516)
    $1,279
 $(5,276)
       
(1)The September 2010 swaps became ineffective and were de-designated in February 2011.
(2)The cross-currency swaps became ineffective and were de-designated in August 2009.
For the nine-month period ended September 30, 2012, in addition to the $1.3 million of net gain recognized in income on the ineffective portion of derivatives and on the derivatives not designated as cash flow hedges (as noted in the tables above), $0.2 million of expense representing the regular amortization of amounts in AOCI for the swaps and $0.2 million of foreign currency gain in the period related to the U.S. dollar denominated Canadian term loan were recorded in the condensed consolidated statements of operations for the period. The net effect of these amounts resulted in a benefit to earnings for the period of $1.3 million recorded in “Net effect of swaps.”

For the nine-month period ended September 25, 2011, in addition to the $37.9 million gain recognized in income on the ineffective portion of derivatives noted in the table above, $33.9 million of expense representing the amortization of amounts in AOCI for the swaps and $0.5 million of foreign currency loss in the period related to the U.S. dollar denominated Canadian term loan were recorded in “Net effect of swaps” in the condensed consolidated statements of operations. The net effect of these amounts resulted in a benefit to earnings of $3.51.0 million recorded in “Net effect of swaps.”


Effects of Derivative Instruments on Income (Loss) and Other Comprehensive Income (Loss) for the twelve-month periods ended September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012:
(In thousands): 
Amount of Gain (Loss)
Recognized in Accumulated OCI on Derivatives
(Effective Portion)
 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
Derivatives designated as
Cash Flow Hedging
Relationships
 Twelve months ended Twelve months ended   Twelve months ended Twelve months ended   Twelve months ended Twelve months ended
 9/30/12 9/25/11   9/30/12 9/25/11   9/30/12 9/25/11
Interest rate swaps $(873) $(26,329) Interest Expense $(12,027) $—
 Net effect of swaps $4,797
 $54,613
                 
(In thousands): 
Amount of Gain (Loss)
Recognized in Accumulated OCI on Derivatives
(Effective Portion)
 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
Derivatives designated as
Cash Flow Hedging
Relationships
 Twelve months ended Twelve months ended   Twelve months ended Twelve months ended   Twelve months ended Twelve months ended
 3/31/13 3/25/12   3/31/13 3/25/12   3/31/13 3/25/12
Interest rate swaps $2,286
 $(36,088) Interest Expense $(12,031) $(5,816) Net effect of swaps $435
 $33,493
                 

(In thousands): 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
Derivatives not designated as Cash Flow Hedging
Relationships
   Twelve months ended Twelve months ended
   9/30/12 9/25/11
Interest rate swaps (1)
 Net effect of swaps $—
 $(3,342)
Cross-currency swaps (2)
 Net effect of swaps (4,483) 10,016
Foreign currency swaps Net effect of swaps 10,129
 (17,516)
    $5,646
 $(10,842)
       
(In thousands): 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
Derivatives not designated as Cash Flow Hedging
Relationships
   Twelve months ended Twelve months ended
   3/31/13 3/25/12
Cross-currency swaps (1)
 Net effect of swaps —
 12,911
Foreign currency swaps Net effect of swaps —
 (7,387)
Interest rate swaps (2)
 Net effect of swaps $(1,471) $—
    $(1,471) $5,524
       
(1)The September 2010 swaps became ineffective and were de-designated in February 2011.
(2)The cross-currency swaps became ineffective and were de-designated in August 2009.
(2)The May 2011 interest rate swaps were de-designated in March 2013.
In addition to the $10.41.0 million of gainloss recognized in income on the ineffective portion of derivatives and on the derivatives not designated as cash flow hedges (as noted in the tables above), $0.17.8 million of expense related to the write off of OCI balances on our May 2011 swaps and $192 thousand of income representing the amortization of amounts in AOCI for the swaps was recorded during the trailing twelve months ended March 31, 2013 in the condensed consolidated statements of operations. The net effect of these amounts resulted in expense for the trailing twelve month period of $8.7 million recorded in “Net effect of swaps.”

14

For the twelve month period ending March 25, 2012, in addition to the $39.0 million of gain recognized in income on the ineffective portion of derivatives noted in the tables above, $22.7 million of expense representing the amortization of amounts in AOCI for the swaps and a $0.40.3 million foreign currency gainloss in the twelve month period related to the U.S. dollar denominated Canadian term loan was recorded during the trailing twelve months ended September 30,March 25, 2012 in the condensed consolidated statements of operations. The net effect of these amounts resulted in a benefit to earnings for the trailing twelve month period of $10.9 million recorded in “Net effect of swaps.”
For the twelve month period ending September 25, 2011, in addition to the $43.8 million of gain recognized in income on the ineffective portion of derivatives noted in the table above, $45.5 million of expense representing the amortization of amounts in AOCI for the swaps and a $0.1 million foreign currency loss in the twelve month period related to the U.S. dollar denominated Canadian term loan was recorded during the trailing twelve months ended September 25, 2011 in the condensed consolidated statements of operations. The net effect of these amounts resulted in a charge to earnings for the trailing twelve month period of $1.816.0 million recorded in “Net effect of swaps.”
The amounts reclassified from AOCI into income for the periods noted above are in large partprimarily the result of the Partnership’s initial three-year requirement to swap at least 75% of its aggregate term debt to fixed rates under the terms of the Amended 2010 Credit Agreement.
 
(7) Fair Value Measurements:
The FASB Accounting Standards Codification (ASC) relating to fair value measurements emphasizes that fair value is a market-based measurement that should be determined based on assumptions (inputs) that market participants would use in pricing an asset or liability. Inputs may be observable or unobservable, and valuation techniques used to measure fair value should maximize the use of relevant observable inputs and minimize the use of unobservable inputs. Accordingly, the FASB’s ASC establishes a hierarchal disclosure framework that ranks the quality and reliability of information used to determine fair values. The hierarchy is associated with the level of pricing observability utilized in measuring fair value and defines three levels of inputs to the fair value measurement process—quoted prices are the most reliable valuation inputs, whereas model values that include inputs based on unobservable data are the least reliable. Each fair value measurement must be assigned to a level corresponding to the lowest level input that is significant to the fair value measurement in its entirety.
The three broad levels of inputs defined by the fair value hierarchy are as follows:
 
Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
 
Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
 
Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement.
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

















15

The table below presents the balances of assets and liabilities measured at fair value as of September 30, 2012March 31, 2013, December 31, 2011,2012, and SeptemberMarch 25, 20112012 on a recurring basis:
  Total Level 1 Level 2 Level 3
September 30, 2012        
(In thousands)        
Interest rate swap agreements (1)
 $(34,708) $—
 $(34,708) $—
Net derivative liability $(34,708) $—
 $(34,708) $—
         
December 31, 2011        
Interest rate swap agreements (1)
 $(32,400) $—
 $(32,400) $—
Cross-currency swap agreements (2)
 (37,617) —
 (37,617) —
Foreign currency swap agreements (2)
 (13,155) —
 (13,155) —
Net derivative liability $(83,172) $—
 $(83,172) $—
         
September 25, 2011        
Interest rate swap agreements (1)
 $(33,835) $—
 $(33,835) $—
Interest rate swap agreements (2)
 (4,797) —
 (4,797) —
Cross-currency swap agreements (2)
 (37,723) —
 (37,723) —
Foreign currency swap agreements (2)
 (16,846) —
 (16,846) —
Net derivative liability $(93,201) $—
 $(93,201) $—
  Total Level 1 Level 2 Level 3
March 31, 2013        
(In thousands)        
Interest rate swap agreements (1)
 $(23,388) $—
 $(23,388) $—
Interest rate swap agreements (2)
 (7,643) —
 (7,643) —
Net derivative liability $(31,031) $—
 $(31,031) $—
         
December 31, 2012        
Interest rate swap agreements (1)
 $(32,260) $—
 $(32,260) $—
Net derivative liability $(32,260) $—
 $(32,260) $—
         
March 25, 2012        
Interest rate swap agreements (1)
 $(32,280) $—
 $(32,280) $—
Net derivative liability $(32,280) $—
 $(32,280) $—
(1)IncludedDesignated as cash flow hedges and are included in “Derivative Liability” on the Unaudited Condensed Consolidated Balance Sheet
(2)IncludedNot designated as cash flow hedges and are included in "Current derivative liability""Derivative Liability" on the Unaudited Condensed Consolidated Balance Sheet
Fair values of the interest rate cross-currency and foreign currency swap agreements are determined using significant inputs, including the LIBOR and foreign currency forward curves, that are considered Level 2 observable market inputs. In addition, the Partnership considered the effect of its credit and non-performance risk on the fair values provided, and recognized an adjustment decreasing the net derivative liability by approximately $1.10.9 million as of September 30, 2012March 31, 2013.
There were no assets measured at fair value on a non-recurring basis at September 30, 2012March 31, 2013, December 31, 2011, or SeptemberMarch 25, 20112012, except for as described below.
At the end of the third quarter in 2012, the Partnership concluded based on operating results, as well as updated forecasts, and changes in market conditions, that a review of the carrying value of long-lived assets at Wildwater Kingdom was warranted. After performing its review, the Partnership determined that a portion of the park's fixed assets were impaired. Based on Level 3 unobservable valuation assumptions and other market inputs, the assets were marked to a fair value of $19.8 million, resulting in an impairment charge of $25.0 million during the quarter.
In 2010, the Partnership concluded based on operating results, as well as updated forecasts, that a review of the carrying value of long-lived assets at California's Great America was warranted. After performing its review, the Partnership determined that a portion of the park's fixed assets, the majority of which were originally recorded with the PPI acquisition, were impaired. As a result, it recognized $62.0 million of fixed-asset impairment during the fourth quarter of 2010.

After completing its 2010 annual review of indefinite-lived intangibles for impairment, the Partnership concluded that a portion of trade-names originally recorded with the PPI acquisition were impaired. As a result, the Partnership recognized approximately $0.9 million of trade-name impairment during the fourth quarter of 2010. A relief-from-royalty model is used to determine whether the fair value of trade-names exceeds their carrying amount. The fair value of the trade-names is determined as the present value of fees avoided by owning the respective trade-name.
The fair value of term debt at September 30, 2012March 31, 2013 was approximately $1,125.7637.1 million based on borrowing rates currently available to the Partnership on long-term debt with similar terms and average maturities. The fair value of the Partnership's notes at September 30, 2012March 31, 2013 was approximately $352.6950.1 million based on borrowing rates availablepublic trading levels as of that date to the Partnership on notes with similar terms and maturities.date. The fair value of the term debt was based on Level 2 inputs and the notes were based on Level 21 inputs.





16

(8) Earnings per Unit:
Net income (loss) per limited partner unit is calculated based on the following unit amounts:
  Three months ended Nine months ended Twelve months ended
  9/30/2012 9/25/2011 9/30/2012 9/25/2011 9/30/2012 9/25/2011
  (In thousands except per unit amounts)
Basic weighted average units outstanding 55,611
 55,346
 55,473
 55,345
 55,440
 55,342
Effect of dilutive units:            
Unit options and restricted unit awards 45
 —
 42
 —
 31
 —
Phantom units 336
 482
 333
 502
 416
 544
Diluted weighted average units outstanding 55,992
 55,828
 55,848
 55,847
 55,887
 55,886
Net income (loss) per unit - basic $2.53
 $2.75
 $2.01
 $1.29
 $2.00
 $0.15
Net income (loss) per unit - diluted $2.51
 $2.73
 $2.00
 $1.28
 $1.98
 $0.15
             
  Three months ended Twelve months ended
  3/31/2013 3/25/2012 3/31/2013 3/25/2012
  (In thousands except per unit amounts)
Basic weighted average units outstanding 55,854
 55,378
 55,694
 55,353
Effect of dilutive units:        
Unit options and restricted unit awards —
 —
 63
 2
Phantom units —
 —
 299
 492
Diluted weighted average units outstanding 55,854
 55,378
 56,056
 55,847
Net income (loss) per unit - basic $(1.95) $(1.18) $1.04
 $1.53
Net income (loss) per unit - diluted $(1.95) $(1.18) $1.04
 $1.52
         
The effect of unit options on the three nine and twelve months ended September 30,March 31, 2013, had they not been out of the money or antidilutive, would have been zero and 16,000 units, respectively. The effect of out-of-the-money and/or antidilutive unit options on the three and twelve months ended March 25, 2012, had they not been out of the money or antidilutive, would have been 66,0002,000, 34,000and 36,000 units, respectively. The effect of out-of-the-money and/or antidilutive unit options on the three, nine and twelve months ended September 25, 2011, had they not been out of the money or antidilutive, would have been 57,000, 67,000 and 127,00047,000 units, respectively.
 
(9) Income and Partnership Taxes:
Under the applicable accounting rules, income taxes are recognized for the amount of taxes payable by the Partnership’s corporate subsidiaries for the current year and for the impact of deferred tax assets and liabilities, which represent future tax consequences of events that have been recognized differently in the financial statements than for tax purposes. The income tax provision (benefit) for interim periods is determined by applying an estimated annual effective tax rate to the quarterly income (loss) of the Partnership’s corporate subsidiaries. For 2012, the estimated annual effective rate includes the effect of an anticipated adjustment to the valuation allowance that relates to foreign tax credit carry-forwards arising from the corporate subsidiaries. The amount of this adjustment has a disproportionate impact on the annual effective tax rate that results in a significant variation in the customary relationship between the provision for taxes and income before taxes in interim periods. In addition to income taxes on its corporate subsidiaries, the Partnership pays a publicly traded partnership tax (PTP tax) on partnership-level gross income (net revenues less cost of food, merchandise and games). As such, the Partnership’s total provision (benefit) for taxes includes amounts for both the PTP tax and for income taxes on its corporate subsidiaries.
During the second quarterAs of 2012 the Partnership adjusted its deferred tax assets and liabilities to reflect the impact of changes to the enacted statutory tax rates in Canada and recorded a corresponding $1.8 million income tax provision.  During the first quarter of 20122013 the Partnership accruedhas recorded $1.01.1 million forof unrecognized tax benefits including interest and/or penalties related to state and local tax filing positions. The Partnership recognizes interest and/or penalties related to unrecognized tax benefits in the income tax provision. The Partnership does not anticipate that the balance of the unrecognized tax benefit will change significantly over the next 12 months.

(10) Contingencies:

The Partnership is a party to a number of lawsuits arising in the normal course of business. In the opinion of management, none of these matters is expected to have a material effect in the aggregate on the Partnership's financial statements.

(11) Immaterial Restatement:

We have made two separate corrections relating to our use of the composite depreciation method.

The Partnership usesfirst correction, which impacts the Balance Sheet at March 25, 2012 and the Statement of Operations and Other Comprehensive Income for the 3 and 12 month periods ended March 25, 2012, related to a misapplication of the composite depreciation method for the group of assets acquired as a whole in 1983, as well as for groups of assets in each subsequent business acquisition.method. Upon the normal retirement of an asset within a composite group, the Partnership'sour practice generally hashad been to extend the depreciable life of that composite group beyond its original estimated useful life. In conjunction with the preparation of the Partnership'sour financial statements for the three months ended July 1,in 2012, management determined that this methodology was not appropriate. As a result, the Partnershipwe revised the useful lives of itsour composite groups to their original estimated useful life (ascribed upon acquisition) and corrected previously computed depreciation expense (and accumulated depreciation). Management evaluated

The second correction, which impacts the amountBalance Sheet at March 25, 2012 and naturethe Statement of these adjustmentsOperations and concludedOther Comprehensive Income for the 12 month period ended March 25, 2012, reflects a subsequent determination that they werea disposition from our composite group of assets was considered to be unusual. In certain situations under the composite method, disposals are considered unusual and, accordingly, losses are not materialincluded in the composite depreciation pool but are rather charged immediately to eitherexpense. In 2013, the Partnership's prior annual or quarterly financial statements. Nonetheless,initial determination of whether a specific asset retired under the historical financial statement amounts includedcomposite method of depreciation in this filing have been corrected for this error. The Partnership expects to likewise correct previously presented2011 was normal was reviewed in connection with responding

17

historical financial statements to an open SEC comment letter. We ultimately concluded that such disposition was unusual and that a $8.8 millioncharge should be included in future filings, including the annual financial statements to be includedreflected in the Partnership's Annual Report on Form 10-K for the year ending December 31, 2012.2011 financial statements.

The tables below detailreflect the effectsimpact on the financial statements of such depreciation adjustments (including the related deferred income tax impact)corrections as described above. The "As originally filed" amounts represent amounts as filed in the Partnership's 1st quarter 2012 Form 10-Q . The "As restated" amounts in all columns represent amounts after restatement for the first correction which was disclosed in the Partnership's 2nd quarter Form 10-Q and the second correction which was disclosed in the Partnership's 2012 Annual Report on previously presented historical financial statement amounts:Form 10-K/A filed on May 10, 2013.


Balance Sheets   
 12/31/2011 9/25/2011
Accumulated depreciation   
As originally filed$(1,044,589) $(1,044,353)
Correction(18,599) (18,252)
As restated$(1,063,188) $(1,062,605)
Total assets   
As originally filed$2,074,557
 $2,159,339
Correction(18,599) (18,252)
As restated$2,055,958
 $2,141,087
Deferred Tax Liability   
As originally filed$135,446
 $125,588
Correction(1,679) (1,615)
As restated$133,767
 $123,973
Limited Partners' Equity   
As originally filed$182,438
 $221,611
Correction(16,920) (16,637)
As restated$165,518
 $204,974
Balance Sheet 
(In thousands)3/25/2012
Accumulated depreciation 
As originally filed$(1,046,162)
Corrections(27,622)
As restated$(1,073,784)
Total assets 
As originally filed$2,113,126
Corrections(27,622)
As restated$2,085,504
Deferred Tax Liability 
As originally filed$135,746
Corrections(5,019)
As restated$130,727
Limited Partners' Equity 
As originally filed$96,417
Corrections(22,603)
As restated$73,814








18

Statements of Operations and Other Comprehensive Income
  Three months ended Nine months ended Twelve months ended
  9/25/2011 9/25/2011 9/25/2011
Depreciation and amortization      
As originally filed $62,619
 $109,173
 $124,345
Correction 829
 1,684
 2,037
As restated $63,448
 $110,857
 $126,382
Income (loss) before tax      
As originally filed $190,891
 $95,031
 $(2,271)
Correction (829) (1,684) (2,037)
As restated $190,062
 $93,347
 $(4,308)
Provision (benefit) for taxes    
As originally filed $38,161
 $22,327
 $(11,808)
Correction (317) (554) (616)
As restated $37,844
 $21,773
 $(12,424)
Net income (loss)    
As originally filed $152,730
 $72,704
 $9,537
Correction (512) (1,130) (1,421)
As restated $152,218
 $71,574
 $8,116
       
Basic earnings per limited partner unit:    
As originally filed $2.76
 $1.31
 $0.17
Correction (0.01) (0.02) (0.02)
As restated $2.75
 $1.29
 $0.15
       
Diluted earnings per limited partner unit:    
As originally filed $2.74
 $1.30
 $0.17
Correction (0.01) (0.02) (0.02)
As restated $2.73
 $1.28
 $0.15
Statements of Operations and Other Comprehensive Income
(In thousands except per unit amounts) Three months ended Twelve months ended
  3/25/2012 3/25/2012
Depreciation and amortization    
As originally filed $3,846
 $123,861
Corrections 233
 2,031
As restated $4,079
 $125,892
Loss on impairment / retirement of fixed assets, net    
As originally filed $92
 $2,461
Corrections —
 8,790
As restated $92
 $11,251
Income (loss) before tax    
As originally filed $(86,721) $101,565
Corrections (233) (10,821)
As restated $(86,954) $90,744
Provision (benefit) for taxes  
As originally filed $(21,539) $9,897
Corrections —
 (3,960)
As restated $(21,539) $5,937
Net income (loss)  
As originally filed $(65,182) $91,668
Corrections (233) (6,861)
As restated $(65,415) $84,807
     
Basic earnings per limited partner unit:  
As originally filed $(1.18) $1.66
Corrections —
 (0.13)
As restated $(1.18) $1.53
     
Diluted earnings per limited partner unit:  
As originally filed $(1.18) $1.64
Corrections —
 (0.12)
As restated $(1.18) $1.52


(12) Changes in Accumulated Other Comprehensive Income by Component:

(12)The following tables reflect the changes in Accumulated other comprehensive income (loss) related to limited partners' equity for the period ended March 31, 2013:



19

 
Changes in Accumulated Other Comprehensive Income by Component (1)
(In thousands)       
   Gains and    
   Losses on Foreign  
   Cash Flow Currency  
   Hedges Items Total
Balance at December 31, 2012 $(25,749) $(2,751) $(28,500)
        
 Other comprehensive      
 income before      
 reclassifications 1,940
 301
 301
        
 Amounts reclassified      
 from accumulated      
 other comprehensive      
 
income (2)
 6,945
 —
 8,885
        
Net current-period other      
comprehensive income 8,885
 301
 9,186
        
March 31, 2013 $(16,864) $(2,450) $(19,314)

(1) All amounts are net of tax. Amounts in parentheses indicate debits.
(2) See Reclassifications Out of Accumulated Other Comprehensive Income table below for reclassification details.

Reclassifications Out of Accumulated Other Comprehensive Income (1)
(In thousands)       
Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement Where Net Income is Presented
Gains and losses on cash flow hedges      
 Interest rate contracts $8,174
  Net effect of swaps
   $8,174
  Total before tax
   (1,229)  Provision (benefit) for taxes
   $6,945
  Net of tax

(1) Amounts in parentheses indicate debits.

(13) Consolidating Financial Information of Guarantors and Issuers:

Cedar Fair, L.P., Canada's Wonderland Company ("Cedar Canada"), and Magnum Management Corporation ("Magnum") are the co-issuers of the Partnership's 9.125% notes and the 5.25% notes (see Note 5). The notes have been fully and unconditionally guaranteed, on a joint and several basis, by each 100% owned subsidiary of Cedar Fair (other than Cedar Canada and Magnum) that guarantees the Partnership's senior secured credit facilities. There are no non-guarantor subsidiaries.

The following consolidating schedules present condensed financial information for Cedar Fair, L.P., Cedar Canada, and Magnum, the co-issuers, and each 100% owned subsidiary of Cedar Fair (other than Cedar Canada and Magnum), the guarantors (on a combined basis), as of September 30, 2012March 31, 2013, December 31, 2011,2012, and SeptemberMarch 25, 20112012 and for the three nine and twelve month periods ended

20

September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012. In lieu of providing separate unaudited financial statements for the guarantor subsidiaries, we have included the accompanying condensed consolidating financial statements.

Since Cedar Fair, L.P., Cedar Canada and Magnum are co-issuers of the notes and co-borrowers under the Amended 20102013 Credit Agreement, all outstanding debt has been equally reflected within each co-issuer's September 30, 2012March 31, 2013, December 31, 20112012 and SeptemberMarch 25, 20112012 balance sheets in the accompanying condensed consolidating financial statements.

The consolidating financial information has been corrected for the information described in Note 11.12.
  

19

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
September 30, 2012
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $43,000
 $2,263
 $40,278
 $10,561
 $—
 $96,102
Receivables 3
 108,211
 64,153
 478,372
 (621,382) 29,357
Inventories —
 1,584
 2,742
 29,267
 —
 33,593
Current deferred tax asset —
 6,239
 772
 3,334
 —
 10,345
Income tax refundable —
 —
 10,454
 —
 —
 10,454
Other current assets 929
 2,065
 674
 3,775
 —
 7,443
  43,932
 120,362
 119,073
 525,309
 (621,382) 187,294
Property and Equipment (net) 425,747
 1,025
 272,951
 864,121
 —
 1,563,844
Investment in Park 577,612
 791,617
 118,514
 63,384
 (1,551,127) —
Goodwill 9,061
 —
 127,384
 111,218
 —
 247,663
Other Intangibles, net —
 —
 18,039
 22,826
 —
 40,865
Deferred Tax Asset —
 39,320
 —
 —
 (39,320) —
Intercompany Receivable 877,208
 1,069,721
 1,116,623
 —
 (3,063,552) —
Other Assets 23,361
 15,580
 8,925
 2,305
 —
 50,171
  $1,956,921
 $2,037,625
 $1,781,509
 $1,589,163
 $(5,275,381) $2,089,837
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Accounts payable $210,936
 $116,160
 $29,248
 $287,634
 $(621,382) $22,596
Deferred revenue —
 —
 4,544
 30,138
 —
 34,682
Accrued interest 735
 195
 6,082
 —
 —
 7,012
Accrued taxes 5,818
 42,090
 —
 4,496
 —
 52,404
Accrued salaries, wages and benefits —
 24,864
 2,365
 8,990
 —
 36,219
Self-insurance reserves —
 4,751
 1,698
 16,643
 —
 23,092
Other accrued liabilities 824
 4,097
 2,417
 3,505
 —
 10,843
  218,313
 192,157
 46,354
 351,406
 (621,382) 186,848
Deferred Tax Liability —
 —
 59,462
 122,952
 (39,320) 143,094
Derivative Liability 20,801
 13,907
 —
 —
 —
 34,708
Other Liabilities —
 3,880
 —
 3,500
 —
 7,380
Long-Term Debt:            
Term debt 1,131,100
 1,131,100
 1,131,100
 —
 (2,262,200) 1,131,100
Notes 400,676
 400,676
 400,676
 —
 (801,352) 400,676
  1,531,776
 1,531,776
 1,531,776
 —
 (3,063,552) 1,531,776
             
Equity 186,031
 295,905
 143,917
 1,111,305
 (1,551,127) 186,031
  $1,956,921
 $2,037,625
 $1,781,509
 $1,589,163
 $(5,275,381) $2,089,837


20

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
December 31, 2011
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $—
 $512
 $31,540
 $3,472
 $—
 $35,524
Receivables —
 62,408
 69,285
 412,095
 (536,177) 7,611
Inventories —
 1,547
 2,703
 28,819
 —
 33,069
Current deferred tax asset —
 6,239
 772
 3,334
 —
 10,345
Other current assets 508
 13,461
 1,027
 7,822
 (10,852) 11,966
  508
 84,167
 105,327
 455,542
 (547,029) 98,515
Property and Equipment (net) 455,579
 1,044
 266,111
 896,758
 —
 1,619,492
Investment in Park 518,819
 661,251
 118,385
 40,481
 (1,338,936) —
Intercompany Note Receivable —
 93,845
 —
 —
 (93,845) —
Goodwill 9,061
 —
 123,210
 111,219
 —
 243,490
Other Intangibles, net —
 —
 17,448
 22,825
 —
 40,273
Deferred Tax Asset —
 47,646
 —
 —
 (47,646) —
Intercompany Receivable 887,344
 1,084,112
 1,141,302
 —
 (3,112,758) —
Other Assets 27,641
 16,158
 9,353
 1,036
 —
 54,188
  $1,898,952
 $1,988,223
 $1,781,136
 $1,527,861
 $(5,140,214) $2,055,958
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Current maturities of long-term debt $15,921
 $15,921
 $15,921
 $—
 $(31,842) $15,921
Accounts payable 175,968
 144,868
 25,631
 202,566
 (536,177) 12,856
Deferred revenue —
 —
 2,891
 26,703
 —
 29,594
Accrued interest 198
 131
 15,433
 —
 —
 15,762
Accrued taxes 3,909
 —
 7,374
 15,577
 (10,852) 16,008
Accrued salaries, wages and benefits —
 26,916
 1,076
 5,396
 —
 33,388
Self-insurance reserves —
 3,977
 1,711
 15,555
 —
 21,243
Current derivative liability —
 —
 50,772
 —
 —
 50,772
Other accrued liabilities 1,247
 5,568
 252
 832
 —
 7,899
  197,243
 197,381
 121,061
 266,629
 (578,871) 203,443
Deferred Tax Liability —
 —
 58,463
 122,950
 (47,646) 133,767
Derivative Liability 19,451
 12,949
 —
 —
 —
 32,400
Other Liabilities —
 4,090
 —
 —
 —
 4,090
Intercompany Note Payable —
 —
 —
 93,845
 (93,845) —
Long-Term Debt:            
Term debt 1,140,179
 1,140,179
 1,140,179
 —
 (2,280,358) 1,140,179
Notes 400,279
 400,279
 400,279
 —
 (800,558) 400,279
  1,540,458
 1,540,458
 1,540,458
 —
 (3,080,916) 1,540,458
             
Equity 141,800
 233,345
 61,154
 1,044,437
 (1,338,936) 141,800
  $1,898,952
 $1,988,223
 $1,781,136
 $1,527,861
 $(5,140,214) $2,055,958

21

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
September 25, 2011March 31, 2013
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $49,000
 $2,489
 $36,473
 $8,350
 $—
 $96,312
Receivables 3
 45,663
 81,773
 587,910
 (676,810) 38,539
Inventories —
 1,684
 2,951
 32,311
 —
 36,946
Current deferred tax asset —
 1,686
 779
 3,409
 —
 5,874
Other current assets 875
 2,091
 774
 5,559
 —
 9,299
  49,878
 53,613
 122,750
 637,539
 (676,810) 186,970
Property and Equipment (net) 455,663
 1,055
 257,802
 900,759
 —
 1,615,279
Investment in Park 534,400
 681,893
 118,514
 53,988
 (1,388,795) —
Intercompany Note Receivable —
 269,500
 —
 —
 (269,500) —
Goodwill 9,061
 —
 121,869
 111,219
 —
 242,149
Other Intangibles, net —
 —
 17,258
 22,809
 —
 40,067
Deferred Tax Asset —
 49,845
 —
 —
 (49,845) —
Intercompany Receivable 887,219
 1,083,987
 1,141,302
 —
 (3,112,508) —
Other Assets 28,962
 16,884
 9,616
 1,160
 —
 56,622
  $1,965,183
 $2,156,777
 $1,789,111
 $1,727,474
 $(5,497,458) $2,141,087
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Accounts payable $189,887
 $281,605
 $27,488
 $206,288
 $(676,810) $28,458
Deferred revenue —
 —
 3,701
 28,993
 —
 32,694
Accrued interest 6,115
 1,364
 6,489
 —
 —
 13,968
Accrued taxes 5,189
 23,550
 —
 4,354
 —
 33,093
Accrued salaries, wages and benefits —
 29,373
 2,341
 9,395
 —
 41,109
Self-insurance reserves —
 3,130
 1,658
 17,154
 —
 21,942
Current derivative liability 4,797
 —
 54,569
 —
 —
 59,366
Other accrued liabilities 1,206
 4,840
 1,277
 4,924
 —
 12,247
  207,194
 343,862
 97,523
 271,108
 (676,810) 242,877
Deferred Tax Liability —
 —
 61,405
 112,413
 (49,845) 123,973
Derivative Liability 20,459
 13,376
 —
 —
 —
 33,835
Other Liabilities —
 2,872
 —
 —
 —
 2,872
Intercompany Note Payable —
 —
 —
 269,500
 (269,500) —
Long-Term Debt:            
Term debt 1,156,100
 1,156,100
 1,156,100
 —
 (2,312,200) 1,156,100
Notes 400,154
 400,154
 400,154
 —
 (800,308) 400,154
  1,556,254
 1,556,254
 1,556,254
 —
 (3,112,508) 1,556,254
             
Equity 181,276
 240,413
 73,929
 1,074,453
 (1,388,795) 181,276
  $1,965,183
 $2,156,777
 $1,789,111
 $1,727,474
 $(5,497,458) $2,141,087
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $—
 $732
 $4,125
 $5,181
 $—
 $10,038
Receivables 682
 79,472
 67,302
 436,595
 (570,709) 13,342
Inventories —
 3,645
 3,032
 32,386
 —
 39,063
Current deferred tax asset —
 31,543
 816
 3,663
 —
 36,022
Other current assets 207
 9,630
 1,618
 16,260
 —
 27,715
  889
 125,022
 76,893
 494,085
 (570,709) 126,180
Property and Equipment (net) 457,484
 1,003
 262,941
 849,424
 —
 1,570,852
Investment in Park 419,501
 714,013
 115,401
 21,689
 (1,270,604) —
Goodwill 9,061
 —
 123,374
 111,218
 —
 243,653
Other Intangibles, net —
 —
 17,470
 22,853
 —
 40,323
Deferred Tax Asset —
 34,890
 —
 90
 (34,980) —
Intercompany Receivable 877,336
 1,165,652
 1,211,522
 —
 (3,254,510) —
Other Assets 14,581
 10,291
 7,473
 2,303
 —
 34,648
  $1,778,852
 $2,050,871
 $1,815,074
 $1,501,662
 $(5,130,803) $2,015,656
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Current maturities of long-term debt $6,300
 $6,300
 $6,300
 $—
 $(12,600) $6,300
Accounts payable 103,654
 215,425
 3,891
 285,182
 (570,709) 37,443
Deferred revenue —
 —
 6,679
 59,505
 —
 66,184
Accrued interest 1,444
 916
 5,979
 —
 —
 8,339
Accrued taxes 4,790
 390
 331
 3,489
 —
 9,000
Accrued salaries, wages and benefits —
 13,483
 1,095
 5,604
 —
 20,182
Self-insurance reserves —
 5,324
 1,696
 16,537
 —
 23,557
Other accrued liabilities 589
 5,161
 133
 1,984
 —
 7,867
  116,777
 246,999
 26,104
 372,301
 (583,309) 178,872
Deferred Tax Liability —
 —
 62,700
 126,867
 (34,980) 154,587
Derivative Liability 18,594
 12,437
 —
 —
 —
 31,031
Other Liabilities —
 4,185
 —
 3,500
 —
 7,685
Long-Term Debt:            
Revolving credit loans 96,000
 96,000
 96,000
 —
 (192,000) 96,000
Term debt 623,700
 623,700
 623,700
 —
 (1,247,400) 623,700
Notes 901,255
 901,255
 901,255
 —
 (1,802,510) 901,255
  1,620,955
 1,620,955
 1,620,955
 —
 (3,241,910) 1,620,955
             
Equity 22,526
 166,295
 105,315
 998,994
 (1,270,604) 22,526
  $1,778,852
 $2,050,871
 $1,815,074
 $1,501,662
 $(5,130,803) $2,015,656


22

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOMEBALANCE SHEET
For the Three Months Ended September 30,December 31, 2012
 (As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $79,663
 $141,134
 $88,334
 $464,902
 $(220,588) $553,445
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 6,447
 40,906
 —
 47,353
Operating expenses 1,368
 74,191
 18,736
 289,604
 (220,588) 163,311
Selling, general and administrative 1,853
 32,627
 4,822
 13,691
 —
 52,993
Depreciation and amortization 19,209
 10
 9,430
 32,098
 —
 60,747
Loss on impairment / retirement of fixed assets, net 25,000
 —
 —
 —
 —
 25,000
  47,430
 106,828
 39,435
 376,299
 (220,588) 349,404
Operating income 32,233
 34,306
 48,899
 88,603
 —
 204,041
Interest expense (income), net 12,213
 7,258
 9,897
 (2,518) —
 26,850
Net effect of swaps (104) (71) —
 —
 —
 (175)
Unrealized / realized foreign currency gain —
 —
 (15,035) —
 —
 (15,035)
Other (income) expense 186
 (2,043) 512
 1,345
 —
 —
Income from investment in affiliates (125,311) (79,600) (11,138) (45,137) 261,186
 —
Income before taxes 145,249
 108,762
 64,663
 134,913
 (261,186) 192,401
Provision for taxes 4,561
 9,777
 17,181
 20,194
 —
 51,713
Net income $140,688
 $98,985
 $47,482
 $114,719
 $(261,186) $140,688
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment (563) —
 (563) —
 563
 (563)
Unrealized income (loss) on cash flow hedging derivatives (234) 48
 —
 —
 (48) (234)
Other comprehensive income (loss), (net of tax) (797) 48
 (563) —
 515
 (797)
Total Comprehensive Income $139,891
 $99,033
 $46,919
 $114,719
 $(260,671) $139,891


  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $25,000
 $444
 $50,173
 $3,213
 $—
 $78,830
Receivables 4
 101,093
 71,099
 498,555
 (652,559) 18,192
Inventories —
 1,724
 2,352
 23,764
 —
 27,840
Current deferred tax asset —
 3,705
 816
 3,663
 —
 8,184
Other current assets 563
 17,858
 530
 5,490
 (16,381) 8,060
  25,567
 124,824
 124,970
 534,685
 (668,940) 141,106
Property and Equipment (net) 439,506
 1,013
 268,157
 835,596
 —
 1,544,272
Investment in Park 485,136
 772,183
 115,401
 53,790
 (1,426,510) —
Goodwill 9,061
 —
 125,942
 111,218
 —
 246,221
Other Intangibles, net —
 —
 17,835
 22,817
 —
 40,652
Deferred Tax Asset —
 36,443
 —
 90
 (36,533) —
Intercompany Receivable 877,612
 1,070,125
 1,116,623
 —
 (3,064,360) —
Other Assets 22,048
 14,832
 8,419
 2,315
 —
 47,614
  $1,858,930
 $2,019,420
 $1,777,347
 $1,560,511
 $(5,196,343) $2,019,865
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Accounts payable $147,264
 $213,279
 $16,101
 $286,649
 $(652,559) $10,734
Deferred revenue —
 —
 4,996
 34,489
 —
 39,485
Accrued interest 98
 64
 15,350
 —
 —
 15,512
Accrued taxes 4,518
 —
 6,239
 23,437
 (16,381) 17,813
Accrued salaries, wages and benefits —
 17,932
 1,214
 5,690
 —
 24,836
Self-insurance reserves —
 5,528
 1,754
 16,624
 —
 23,906
Other accrued liabilities 1,110
 2,502
 140
 2,164
 —
 5,916
  152,990
 239,305
 45,794
 369,053
 (668,940) 138,202
Deferred Tax Liability —
 —
 63,460
 126,865
 (36,533) 153,792
Derivative Liability 19,309
 12,951
 —
 —
 —
 32,260
Other Liabilities —
 5,480
 —
 3,500
 —
 8,980
Long-Term Debt:            
Term debt 1,131,100
 1,131,100
 1,131,100
 —
 (2,262,200) 1,131,100
Notes 401,080
 401,080
 401,080
 —
 (802,160) 401,080
  1,532,180
 1,532,180
 1,532,180
 —
 (3,064,360) 1,532,180
             
Equity 154,451
 229,504
 135,913
 1,061,093
 (1,426,510) 154,451
  $1,858,930
 $2,019,420
 $1,777,347
 $1,560,511
 $(5,196,343) $2,019,865

23

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOMEBALANCE SHEET
For the Three Months Ended March 25, 2012September 25, 2011
(As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $82,713
 $147,138
 $84,679
 $487,352
 $(229,614) $572,268
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 6,659
 42,099
 —
 48,758
Operating expenses 1,257
 69,119
 19,397
 301,293
 (229,614) 161,452
Selling, general and administrative 1,297
 30,460
 5,064
 15,157
 —
 51,978
Depreciation and amortization 20,354
 11
 9,564
 33,519
 —
 63,448
Loss on impairment / retirement of fixed assets, net 827
 —
 10
 43
 —
 880
  23,735
 99,590
 40,694
 392,111
 (229,614) 326,516
Operating income 58,978
 47,548
 43,985
 95,241
 —
 245,752
Interest expense, net 23,948
 3,085
 13,433
 855
 —
 41,321
Net effect of swaps (4,112) (192) 342
 —
 —
 (3,962)
Unrealized / realized foreign currency loss —
 —
 18,549
 —
 —
 18,549
Other (income) expense (30) (1,711) 616
 907
 —
 (218)
Income from investment in affiliates (117,557) (57,557) (8,410) (15,579) 199,103
 —
Income before taxes 156,729
 103,923
 19,455
 109,058
 (199,103) 190,062
Provision for taxes 4,511
 12,445
 3,103
 17,785
 —
 37,844
Net income $152,218
 $91,478
 $16,352
 $91,273
 $(199,103) $152,218
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment 2,842
 —
 2,842
 —
 (2,842) 2,842
Unrealized income on cash flow hedging derivatives (3,224) (4,646) 72
 —
 4,574
 (3,224)
Other comprehensive income (loss), (net of tax) (382) (4,646) 2,914
 —
 1,732
 (382)
Total Comprehensive Income $151,836
 $86,832
 $19,266
 $91,273
 $(197,371) $151,836





  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $—
 $397
 $119
 $6,803
 $—
 $7,319
Receivables —
 82,892
 59,911
 370,246
 (506,356) 6,693
Inventories —
 3,321
 3,678
 37,487
 —
 44,486
Current deferred tax asset —
 11,014
 772
 3,334
 —
 15,120
Other current assets 359
 5,907
 11,851
 12,293
 —
 30,410
  359
 103,531
 76,331
 430,163
 (506,356) 104,028
Property and Equipment (net) 464,394
 1,035
 279,255
 896,184
 —
 1,640,868
Investment in Park 459,339
 661,166
 115,401
 25,758
 (1,261,664) —
Intercompany Note Receivable —
 104,165
 —
 —
 (104,165) —
Goodwill 9,061
 —
 125,528
 111,219
 —
 245,808
Other Intangibles, net —
 —
 17,776
 22,831
 —
 40,607
Deferred Tax Asset —
 47,646
 —
 —
 (47,646) —
Intercompany Receivable 889,442
 1,239,210
 1,294,302
 —
 (3,422,954) —
Other Assets 26,323
 16,288
 9,608
 1,974
 —
 54,193
  $1,848,918
 $2,173,041
 $1,918,201
 $1,488,129
 $(5,342,785) $2,085,504
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Current maturities of long-term debt $15,921
 $15,921
 $15,921
 $—
 $(31,842) $15,921
Accounts payable 60,297
 232,001
 26,302
 215,968
 (506,356) 28,212
Deferred revenue —
 —
 5,413
 45,341
 —
 50,754
Accrued interest 3,089
 1,706
 5,519
 —
 —
 10,314
Accrued taxes 4,925
 340
 261
 3,294
 —
 8,820
Accrued salaries, wages and benefits —
 26,989
 781
 5,792
 —
 33,562
Self-insurance reserves —
 4,212
 1,716
 15,826
 —
 21,754
Other accrued liabilities 462
 3,312
 226
 2,104
 —
 6,104
  84,694
 284,481
 56,139
 288,325
 (538,198) 175,441
Deferred Tax Liability —
 —
 58,762
 119,611
 (47,646) 130,727
Derivative Liability 19,403
 12,877
 —
 —
 —
 32,280
Other Liabilities —
 2,235
 —
 —
 —
 2,235
Intercompany Note Payable —
 —
 —
 104,165
 (104,165) —
Long-Term Debt:            
Revolving credit loans 155,004
 155,004
 155,004
 —
 (310,008) 155,004
Term debt 1,140,179
 1,140,179
 1,140,179
 —
 (2,280,358) 1,140,179
Notes 400,373
 400,373
 400,373
 —
 (800,746) 400,373
  1,695,556
 1,695,556
 1,695,556
 —
 (3,391,112) 1,695,556
             
Equity 49,265
 177,892
 107,744
 976,028
 (1,261,664) 49,265
  $1,848,918
 $2,173,041
 $1,918,201
 $1,488,129
 $(5,342,785) $2,085,504


24

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the NineThree Months Ended September 30, 2012March 31, 2013
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $124,864
 $221,221
 $130,441
 $808,471
 $(345,748) $939,249
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 9,988
 73,938
 —
 83,926
Operating expenses 4,141
 147,211
 40,328
 534,900
 (345,748) 380,832
Selling, general and administrative 4,841
 70,848
 9,877
 29,922
 —
 115,488
Depreciation and amortization 33,436
 28
 16,415
 63,277
 —
 113,156
Loss on impairment / retirement of fixed assets, net 24,221
 —
 9
 —
 —
 24,230
  66,639
 218,087
 76,617
 702,037
 (345,748) 717,632
Operating income 58,225
 3,134
 53,824
 106,434
 —
 221,617
Interest expense (income), net 36,438
 21,957
 30,898
 (5,422) —
 83,871
Net effect of swaps (35) 192
 (1,475) —
 —
 (1,318)
Unrealized / realized foreign currency gain —
 —
 (13,926) —
 —
 (13,926)
Other (income) expense 561
 (7,119) 1,221
 5,337
 —
 —
Income from investment in affiliates (99,035) (72,862) (14,505) (38,160) 224,562
 —
Income before taxes 120,296
 60,966
 51,611
 144,679
 (224,562) 152,990
Provision (benefit) for taxes 8,701
 (3,771) 13,525
 22,940
 —
 41,395
Net income $111,595
 $64,737
 $38,086
 $121,739
 $(224,562) $111,595
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment (1,251) —
 (1,251) —
 1,251
 (1,251)
Unrealized income (loss) on cash flow hedging derivatives (1,798) (629) 21
 —
 608
 (1,798)
Other comprehensive income (loss), (net of tax) (3,049) (629) (1,230) —
 1,859
 (3,049)
Total Comprehensive Income $108,546
 $64,108
 $36,856
 $121,739
 $(222,703) $108,546
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $4,317
 $8,371
 $289
 $41,510
 $(12,688) $41,799
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 —
 5,037
 —
 5,037
Operating expenses 1,423
 21,606
 5,941
 60,375
 (12,688) 76,657
Selling, general and administrative 1,292
 16,613
 711
 2,423
 —
 21,039
Depreciation and amortization 475
 9
 —
 4,302
 —
 4,786
Loss on impairment / retirement of fixed assets, net 36
 —
 478
 86
 —
 600
  3,226
 38,228
 7,130
 72,223
 (12,688) 108,119
Operating income (loss) 1,091
 (29,857) (6,841) (30,713) —
 (66,320)
Interest expense (income), net 10,512
 7,677
 9,764
 (2,230) —
 25,723
Net effect of swaps 5,635
 3,576
 —
 —
 —
 9,211
Loss on early debt extinguishment 21,175
 12,781
 617
 —
 —
 34,573
Unrealized / realized foreign currency loss —
 —
 8,958
 —
 —
 8,958
Other (income) expense 188
 (2,388) 800
 1,400
 —
 —
Loss from investment in affiliates 72,096
 35,640
 3,520
 21,227
 (132,483) —
Loss before taxes (108,515) (87,143) (30,500) (51,110) 132,483
 (144,785)
Provision (benefit) for taxes 611
 (17,665) (9,254) (9,351) —
 (35,659)
Net loss $(109,126) $(69,478) $(21,246) $(41,759) $132,483
 $(109,126)
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment 301
 —
 301
 —
 (301) 301
Unrealized income on cash flow hedging derivatives 8,885
 2,535
 —
 —
 (2,535) 8,885
Other comprehensive income, (net of tax) 9,186
 2,535
 301
 —
 (2,836) 9,186
Total Comprehensive Loss $(99,940) $(66,943) $(20,945) $(41,759) $129,647
 $(99,940)



25

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the NineThree Months Ended SeptemberMarch 25, 20112012
(As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $118,280
 $210,407
 $115,163
 $768,126
 $(328,349) $883,627
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 9,389
 70,592
 —
 79,981
Operating expenses 4,180
 131,955
 38,959
 504,813
 (328,349) 351,558
Selling, general and administrative 8,049
 64,226
 9,541
 28,310
 —
 110,126
Depreciation and amortization 33,021
 34
 15,440
 62,362
 —
 110,857
Loss on impairment / retirement of fixed assets, net 1,023
 —
 10
 43
 —
 1,076
  46,273
 196,215
 73,339
 666,120
 (328,349) 653,598
Operating income 72,007
 14,192
 41,824
 102,006
 —
 230,029
Interest expense, net 70,822
 8,395
 39,129
 6,184
 —
 124,530
Net effect of swaps (7,230) 910
 2,813
 —
 —
 (3,507)
Unrealized / realized foreign currency loss —
 —
 14,704
 —
 —
 14,704
Other (income) expense 1,517
 (4,712) 2,072
 2,078
 —
 955
(Income) loss from investment in affiliates (71,656) (34,663) (12,389) 107
 118,601
 —
Income (loss) before taxes 78,554
 44,262
 (4,505) 93,637
 (118,601) 93,347
Provision (benefit) for taxes 6,980
 2,527
 (4,446) 16,712
 —
 21,773
Net income (loss) $71,574
 $41,735
 $(59) $76,925
 $(118,601) $71,574
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment 2,354
 —
 2,354
 —
 (2,354) 2,354
Unrealized income on cash flow hedging derivatives 2,366
 (9,866) 79
 —
 9,787
 2,366
Other comprehensive income (loss), (net of tax) 4,720
 (9,866) 2,433
 —
 7,433
 4,720
Total Comprehensive Income $76,294
 $31,869
 $2,374
 $76,925
 $(111,168) $76,294

  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $1,456
 $2,577
 $266
 $27,932
 $(4,033) $28,198
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 —
 4,087
 —
 4,087
Operating expenses 1,335
 20,436
 5,657
 47,890
 (4,033) 71,285
Selling, general and administrative 1,332
 13,696
 760
 2,196
 —
 17,984
Depreciation and amortization 696
 9
 —
 3,374
 —
 4,079
Loss on impairment / retirement of fixed assets, net 82
 —
 10
 —
 —
 92
  3,445
 34,141
 6,427
 57,547
 (4,033) 97,527
Operating loss (1,989) (31,564) (6,161) (29,615) —
 (69,329)
Interest expense, net 11,158
 6,615
 10,403
 (1,389) —
 26,787
Net effect of swaps 173
 332
 (1,475) —
 —
 (970)
Unrealized / realized foreign currency gain —
 —
 (8,192) —
 —
 (8,192)
Other (income) expense 187
 (3,035) 197
 2,651
 —
 —
Loss from investment in affiliates 50,491
 23,083
 3,230
 24,916
 (101,720) —
Loss before taxes (63,998) (58,559) (10,324) (55,793) 101,720
 (86,954)
Provision (benefit) for taxes 1,417
 (11,672) (2,334) (8,950) —
 (21,539)
Net loss $(65,415) $(46,887) $(7,990) $(46,843) $101,720
 $(65,415)
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment (1,169) —
 (1,169) —
 1,169
 (1,169)
Unrealized income on cash flow hedging derivatives 339
 98
 21
 —
 (119) 339
Other comprehensive income (loss), (net of tax) (830) 98
 (1,148) —
 1,050
 (830)
Total Comprehensive Loss $(66,245) $(46,789) $(9,138) $(46,843) $102,770
 $(66,245)

























26



CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
For the Twelve Months Ended September 30, 2012March 31, 2013
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $147,733
 $261,878
 $142,250
 $941,465
 $(409,232) $1,084,094
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 10,531
 85,471
 —
 96,002
Operating expenses 5,452
 180,665
 47,134
 636,106
 (409,232) 460,125
Selling, general and administrative 6,865
 90,892
 11,650
 36,381
 —
 145,788
Depreciation and amortization 37,698
 41
 18,300
 72,097
 —
 128,136
(Gain) loss on impairment / retirement of fixed assets, net 24,188
 —
 (62) 1,593
 —
 25,719
  74,203
 271,598
 87,553
 831,648
 (409,232) 855,770
Operating income (loss) 73,530
 (9,720) 54,697
 109,817
 —
 228,324
Interest (income) expense, net 50,007
 28,592
 44,583
 (6,813) —
 116,369
Net effect of swaps (5,019) (1) (5,910) —
 —
 (10,930)
Unrealized / realized foreign currency gain —
 —
 (18,721) —
 —
 (18,721)
Other (income) expense 749
 (10,205) 1,498
 7,958
 —
 —
Income from investment in affiliates (93,080) (55,557) (12,698) (24,955) 186,290
 —
Income before taxes 120,873
 27,451
 45,945
 133,627
 (186,290) 141,606
Provision (benefit) for taxes 10,106
 (29,298) 20,942
 29,089
 —
 30,839
Net income $110,767
 $56,749
 $25,003
 $104,538
 $(186,290) $110,767
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment (2,672) —
 (2,672) —
 2,672
 (2,672)
Unrealized income (loss) on cash flow hedging derivatives (397) (109) 21
 —
 88
 (397)
Other comprehensive income (loss), (net of tax) (3,069) (109) (2,651) —
 2,760
 (3,069)
Total Comprehensive Income $107,698
 $56,640
 $22,352
 $104,538
 $(183,530) $107,698
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $148,576
 $263,930
 $140,441
 $941,246
 $(412,138) $1,082,055
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 10,316
 85,682
 —
 95,998
Operating expenses 5,468
 177,526
 48,147
 637,772
 (412,138) 456,775
Selling, general and administrative 6,455
 89,532
 11,086
 34,293
 —
 141,366
Depreciation and amortization 37,439
 40
 18,199
 71,335
 —
 127,013
(Gain) on sale of other assets —
 —
 —
 (6,625) —
 (6,625)
Loss on impairment / retirement of fixed assets, net 25,089
 —
 474
 5,281
 —
 30,844
  74,451
 267,098
 88,222
 827,738
 (412,138) 845,371
Operating income (loss) 74,125
 (3,168) 52,219
 113,508
 —
 236,684
Interest (income) expense, net 47,879
 30,390
 40,231
 (9,013) —
 109,487
Net effect of swaps 5,324
 3,365
 —
 —
 —
 8,689
Loss on early debt extinguishment 21,175
 12,781
 617
 —
 —
 34,573
Unrealized / realized foreign currency loss —
 —
 8,152
 —
 —
 8,152
Other (income) expense 750
 (8,860) 2,623
 5,487
 —
 —
Income from investment in affiliates (68,417) (53,593) (14,307) (18,503) 154,820
 —
Income before taxes 67,414
 12,749
 14,903
 135,537
 (154,820) 75,783
Provision (benefit) for taxes 9,269
 (15,849) (3,507) 27,725
 —
 17,638
Net income $58,145
 $28,598
 $18,410
 $107,812
 $(154,820) $58,145
Other comprehensive income, (net of tax):            
Cumulative foreign currency translation adjustment 1,839
 —
 1,839
 —
 (1,839) 1,839
Unrealized income on cash flow hedging derivatives 8,685
 2,551
 —
 —
 (2,551) 8,685
Other comprehensive income (loss), (net of tax) 10,524
 2,551
 1,839
 —
 (4,390) 10,524
Total Comprehensive Income $68,669
 $31,149
 $20,249
 $107,812
 $(159,210) $68,669



27

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the Twelve Months Ended SeptemberMarch 25, 20112012 (As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $138,907
 $247,595
 $126,355
 $886,578
 $(386,119) $1,013,316
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 9,850
 80,928
 —
 90,778
Operating expenses 5,725
 163,754
 45,814
 597,781
 (386,119) 426,955
Selling, general and administrative 9,755
 79,492
 11,347
 32,598
 —
 133,192
Depreciation and amortization 37,168
 95
 17,188
 71,931
 —
 126,382
Loss on impairment of goodwill and other intangibles —
 —
 —
 903
 —
 903
Loss on impairment / retirement of fixed assets, net 1,456
 —
 10
 62,043
 —
 63,509
  54,104
 243,341
 84,209
 846,184
 (386,119) 841,719
Operating income 84,803
 4,254
 42,146
 40,394
 —
 171,597
Interest expense, net 99,205
 14,877
 52,411
 4,362
 —
 170,855
Net effect of swaps (7,183) 910
 8,045
 —
 —
 1,772
Unrealized / realized foreign currency loss —
 —
 2,323
 —
 —
 2,323
Other (income) expense 1,704
 (5,748) 2,852
 2,147
 —
 955
(Income) loss from investment in affiliates (25,098) 1,534
 (9,116) 2,425
 30,255
 —
Income (loss) before taxes 16,175
 (7,319) (14,369) 31,460
 (30,255) (4,308)
Provision (benefit) for taxes 8,059
 953
 (7,308) (14,128) —
 (12,424)
Net income (loss) $8,116
 $(8,272) $(7,061) $45,588
 $(30,255) $8,116
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment (1,704) —
 (1,704) —
 1,704
 (1,704)
Unrealized income on cash flow hedging derivatives 22,916
 (7,153) 180
 —
 6,973
 22,916
Other comprehensive income (loss), (net of tax) 21,212
 (7,153) (1,524) —
 8,677
 21,212
Total Comprehensive Income (Loss) $29,328
 $(15,425) $(8,585) $45,588
 $(21,578) $29,328
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $140,548
 $249,988
 $126,375
 $903,046
 $(390,156) $1,029,801
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 9,932
 82,100
 —
 92,032
Operating expenses 5,351
 167,068
 45,805
 608,940
 (390,156) 437,008
Selling, general and administrative 7,963
 83,355
 11,151
 35,026
 —
 137,495
Depreciation and amortization 37,309
 45
 17,325
 71,213
 —
 125,892
Loss (gain) on impairment / retirement of fixed assets, net 876
 —
 (51) 10,426
 —
 11,251
  51,499
 250,468
 84,162
 807,705
 (390,156) 803,678
Operating income (loss) 89,049
 (480) 42,213
 95,341
 —
 226,123
Interest expense, net 72,309
 19,090
 50,897
 488
 —
 142,784
Net effect of swaps (10,940) (243) (4,793) —
 —
 (15,976)
Unrealized / realized foreign currency loss —
 —
 8,605
 —
 —
 8,605
Other (income) expense 716
 (9,542) 1,708
 7,084
 —
 (34)
(Income) loss from investment in affiliates (67,272) (19,390) (2,601) 16,074
 73,189
 —
Income (loss) before taxes 94,236
 9,605
 (11,603) 71,695
 (73,189) 90,744
Provision (benefit) for taxes 9,429
 (25,950) 4,319
 18,139
 —
 5,937
Net income (loss) $84,807
 $35,555
 $(15,922) $53,556
 $(73,189) $84,807
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment 1,050
 —
 1,050
 —
 (1,050) 1,050
Unrealized income (loss) on cash flow hedging derivatives (7,958) (9,638) 254
 —
 9,384
 (7,958)
Other comprehensive income (loss), (net of tax) (6,908) (9,638) 1,304
 —
 8,334
 (6,908)
Total Comprehensive Income (Loss) $77,899
 $25,917
 $(14,618) $53,556
 $(64,855) $77,899




28

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the NineThree Months Ended September 30, 2012March 31, 2013
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $208,436
 $48,506
 $9,093
 $155,849
 $(145,140) $276,744
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates (56,171) (70,083) 3,948
 (22,834) 145,140
 —
Sale of other assets 1,173
 —
 —
 —
 —
 1,173
Capital expenditures (29,295) (8) (14,426) (32,081) —
 (75,810)
Net cash from (for) investing activities (84,293) (70,091) (10,478) (54,915) 145,140
 (74,637)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Derivative settlement —
 —
 (50,450) —
 —
 (50,450)
Term debt payments, including early termination penalties (14,468) (10,212) (320) —
 —
 (25,000)
Intercompany (payments) receipts —
 93,845
 —
 (93,845) —
 —
Distributions (paid) received (66,675) 110
 —
 —
 —
 (66,565)
Capital (contribution) infusion —
 (60,000) 60,000
 —
 —
 —
Exercise of limited partnership unit options —
 47
 —
 —
 —
 47
Excess tax benefit from unit-based compensation expense —
 (454) —
 —
 —
 (454)
Net cash from (for) financing activities (81,143) 23,336
 9,230
 (93,845) —
 (142,422)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 893
 —
 —
 893
CASH AND CASH EQUIVALENTS            
Net increase for the period 43,000
 1,751
 8,738
 7,089
 —
 60,578
Balance, beginning of period —
 512
 31,540
 3,472
 —
 35,524
Balance, end of period $43,000
 $2,263
 $40,278
 $10,561
 $—
 $96,102
             
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $(117,670) $(49,663) $(42,030) $(12,767) $153,463
 $(68,667)
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates 65,636
 58,171
 (2,442) 32,098
 (153,463) —
Capital expenditures (17,866) —
 (600) (17,363) —
 (35,829)
Net cash from (for) investing activities 47,770
 58,171
 (3,042) 14,735
 (153,463) (35,829)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Net borrowings on revolving credit loans $96,000
 $—
 $—
 $—
 $—
 $96,000
Term debt borrowings 359,022
 256,500
 14,478
 —
 —
 630,000
Note borrowings 294,897
 205,103
 —
 —
 —
 500,000
Payment of debt issuance costs (14,763) (8,538) (190) —
 —
 (23,491)
Term debt payments, including early termination penalties (654,568) (462,054) (14,478) —
 —
 (1,131,100)
Distributions (paid) received (35,688) 868
 —
 —
 —
 (34,820)
Exercise of limited partnership unit options —
 28
 —
 —
 —
 28
Excess tax benefit from unit-based compensation expense —
 (127) —
 —
 —
 (127)
Net cash from (for) financing activities 44,900
 (8,220) (190) —
 —
 36,490
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 (786) —
 —
 (786)
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period (25,000) 288
 (46,048) 1,968
 —
 (68,792)
Balance, beginning of period 25,000
 444
 50,173
 3,213
 —
 78,830
Balance, end of period $—
 $732
 $4,125
 $5,181
 $—
 $10,038
             

29

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the NineThree Months Ended SeptemberMarch 25, 20112012 (As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $169,343
 $48,628
 $48,422
 $25,310
 $(69,338) $222,365
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates (29,986) (39,615) (6,353) 6,616
 69,338
 —
Capital expenditures (38,121) —
 (10,510) (24,249) —
 (72,880)
Net cash from (for) investing activities (68,107) (39,615) (16,863) (17,633) 69,338
 (72,880)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Net (payments) on revolving credit loans (23,200) —
 —
 —
 —
 (23,200)
Term debt borrowings 13,246
 9,358
 334
 —
 —
 22,938
Term debt payments, including early termination penalties (13,831) (9,763) (306) —
 —
 (23,900)
Intercompany (payments) receipts —
 688
 —
 (688) —
 —
Distributions (paid) received (16,668) 64
 —
 —
 —
 (16,604)
Payment of debt issuance costs (11,783) (8,332) (375) —
 —
 (20,490)
Net cash from (for) financing activities (52,236) (7,985) (347) (688) —
 (61,256)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 (1,682) —
 —
 (1,682)
CASH AND CASH EQUIVALENTS            
Net increase for the period 49,000
 1,028
 29,530
 6,989
 —
 86,547
Balance, beginning of period —
 1,461
 6,943
 1,361
 —
 9,765
Balance, end of period $49,000
 $2,489
 $36,473
 $8,350
 $—
 $96,312
             
             
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $(184,504) $10,151
 $(37,239) $(6,697) $136,357
 $(81,932)
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates 62,103
 60,369
 2,208
 11,677
 (136,357) —
Capital expenditures (8,374) —
 (7,125) (11,969) —
 (27,468)
Net cash from (for) investing activities 53,729
 60,369
 (4,917) (292) (136,357) (27,468)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Net borrowings on revolving credit loans 153,000
 —
 2,004
 —
 —
 155,004
Derivative settlement —
 —
 (50,450) —
 —
 (50,450)
Intercompany (payments) receipts —
 (10,320) —
 10,320
 —
 —
Distributions (paid) received (22,225) 74
 —
 —
 —
 (22,151)
Capital (contribution) infusion —
 (60,000) 60,000
 —
 —
 —
Exercise of limited partnership unit options —
 48
 —
 —
 —
 48
Excess tax benefit from unit-based compensation —
 (437) —
 —
 —
 (437)
Net cash from (for) financing activities 130,775
 (70,635) 11,554
 10,320
 —
 82,014
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 (819) —
 —
 (819)
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period —
 (115) (31,421) 3,331
 —
 (28,205)
Balance, beginning of period —
 512
 31,540
 3,472
 —
 35,524
Balance, end of period $—
 $397
 $119
 $6,803
 $—
 $7,319
             
             

30

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the Twelve Months Ended September 30, 2012March 31, 2013
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $186,582
 $(152,159) $12,038
 $318,078
 $(91,985) $272,554
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates (40,694) (47,206) 5,245
 (9,330) 91,985
 —
Sale of other assets 1,173
 —
 —
 —
 —
 1,173
Capital expenditures (33,025) (8) (23,050) (37,037) —
 (93,120)
Net cash for investing activities (72,546) (47,214) (17,805) (46,367) 91,985
 (91,947)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Intercompany term debt (payments) receipts —
 269,500
 —
 (269,500) —
 —
Derivative settlement —
 —
 (50,450) —
 —
 (50,450)
Term debt payments, including early termination penalties (14,467) (10,213) (320) —
 —
 (25,000)
Distributions (paid) received (105,569) 261
 —
 —
 —
 (105,308)
Capital (contribution) infusion —
 (60,000) 60,000
 —
 —
 —
Exercise of limited partnership unit options —
 53
 —
 —
 —
 53
Payment of debt issuance costs —
 —
 (723) —
 —
 (723)
Excess tax benefit from unit-based compensation expense —
 (454) —
 —
 —
 (454)
Net cash from (for) financing activities (120,036) 199,147
 8,507
 (269,500) —
 (181,882)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 1,065
 —
 —
 1,065
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period (6,000) (226) 3,805
 2,211
 —
 (210)
Balance, beginning of period 49,000
 2,489
 36,473
 8,350
 —
 96,312
Balance, end of period $43,000
 $2,263
 $40,278
 $10,561
 $—
 $96,102
             
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $188,221
 $(37,475) $16,546
 $135,165
 $(4,510) $297,947
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates 43,043
 (49,642) (2,479) 4,568
 4,510
 —
Sale of other assets 1,173
 —
 —
 14,885
 —
 16,058
Capital expenditures (43,156) (8) (8,023) (52,075) —
 (103,262)
Net cash for investing activities 1,060
 (49,650) (10,502) (32,622) 4,510
 (87,204)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Net borrowings on revolving credit loans $(57,000) $—
 $(2,004) $—
 $—
 $(59,004)
Term debt borrowings 359,022
 256,500
 14,478
 —
 —
 630,000
Note borrowings 294,897
 205,103
 —
 —
 —
 500,000
Intercompany term debt (payments) receipts —
 104,165
 —
 (104,165) —
 —
Term debt payments, including early termination penalties (669,035) (472,267) (14,798) —
 —
 (1,156,100)
Distributions (paid) received (102,402) 920
 —
 —
 —
 (101,482)
Capital (contribution) infusion —
 —
 —
 —
 —
 —
Exercise of limited partnership unit options —
 57
 —
 —
 —
 57
Payment of debt issuance costs (14,763) (8,537) (191) —
 —
 (23,491)
Excess tax benefit from unit-based compensation expense —
 1,519
 —
 —
 —
 1,519
Net cash from (for) financing activities (189,281) 87,460
 (2,515) (104,165) —
 (208,501)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 477
 —
 —
 477
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period —
 335
 4,006
 (1,622) —
 2,719
Balance, beginning of period —
 397
 119
 6,803
 —
 7,319
Balance, end of period $—
 $732
 $4,125
 $5,181
 $—
 $10,038
             

31

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the Twelve Months Ended SeptemberMarch 25, 20112012 (As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $101,376
 $(9,652) $25,380
 $19,056
 $58,064
 $194,224
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates 25,281
 23,147
 (1,356) 10,992
 (58,064) —
Capital expenditures (44,247) —
 (13,179) (27,488) —
 (84,914)
Net cash from (for) investing activities (18,966) 23,147
 (14,535) (16,496) (58,064) (84,914)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Term debt borrowings 13,246
 9,358
 334
 —
 —
 22,938
Intercompany term debt (payments) receipts —
 2,063
 —
 (2,063) —
 —
Term debt payments, including early termination penalties (24,211) (17,091) (536) —
 —
 (41,838)
Distributions (paid) received (30,559) 121
 —
 —
 —
 (30,438)
Exercise of limited partnership unit options —
 7
 —
 —
 —
 7
Payment of debt issuance costs (12,886) (9,110) (761) —
 —
 (22,757)
Net cash from (for) financing activities (54,410) (14,652) (963) (2,063) —
 (72,088)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 (2,611) —
 —
 (2,611)
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period 28,000
 (1,157) 7,271
 497
 —
 34,611
Balance, beginning of period 21,000
 3,646
 29,202
 7,853
 —
 61,701
Balance, end of period $49,000
 $2,489
 $36,473
 $8,350
 $—
 $96,312
             
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $113,654
 $(89,658) $14,102
 $182,798
 $(367) $220,529
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates (16,818) (6,588) 1,126
 21,913
 367
 —
Capital expenditures (40,662) —
 (22,440) (34,253) —
 (97,355)
Net cash from (for) investing activities (57,480) (6,588) (21,314) (12,340) 367
 (97,355)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Net borrowings (payments) on revolving credit loans 31,000
 —
 (3,110) —
 —
 27,890
Intercompany term debt (payments) receipts —
 166,023
 —
 (166,023) —
 —
Term debt payments, including early termination penalties (13,831) (9,763) (306) —
 —
��(23,900)
Derivative settlement —
 —
 (50,450) —
 —
 (50,450)
Distributions (paid) received (73,343) 273
 —
 —
 —
 (73,070)
Capital (contribution) infusion —
 (60,000) 60,000
 —
 —
 —
Payment of debt issuance costs —
 —
 (723) —
 —
 (723)
Exercise of limited partnership unit options —
 53
 —
 —
 —
 53
Excess tax benefit from unit-based compensation —
 (437) —
 —
 —
 (437)
Net cash from (for) financing activities (56,174) 96,149
 5,411
 (166,023) —
 (120,637)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 (2,473) —
 —
 (2,473)
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period —
 (97) (4,274) 4,435
 —
 64
Balance, beginning of period —
 494
 4,393
 2,368
 —
 7,255
Balance, end of period $—
 $397
 $119
 $6,803
 $—
 $7,319


32

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Business Overview:

We generate our revenues primarily from sales of (1) admission to our parks, (2) food, merchandise and games inside our parks, and (3) hotel rooms, food and other attractions outside our parks. Our principal costs and expenses, which include salaries and wages, advertising, maintenance, operating supplies, utilities and insurance, are relatively fixed and do not vary significantly with attendance.

Each of our properties is run by a park general manager and operates autonomously. Management reviews operating results, evaluates performance and makes operating decisions, including the allocation of resources, on a property-by-property basis.

Aside from attendance and guest per capita statistics, discrete financial information and operating results are not prepared at the regional level, but rather at the individual park level for use by the CEO, who is the Chief Operating Decision Maker (CODM), as well as by the Chief Financial Officer, the Chief Operating Officer, the park general managers, and the Executive Vice President, Operations.


Critical Accounting Policies:
This management’s discussion and analysis of financial condition and results of operations is based upon our unaudited condensed consolidated financial statements, which were prepared in accordance with accounting principles generally accepted in the United States of America. These principles require us to make judgments, estimates and assumptions during the normal course of business that affect the amounts reported in the unaudited condensed consolidated financial statements. Actual results could differ significantly from those estimates under different assumptions and conditions.
Management believes that judgment and estimates related to the following critical accounting policies could materially affect our consolidated financial statements:
 
•Property and Equipment
 
•Impairment of Long-Lived Assets
 
•Goodwill and Other Intangible Assets
 
•Self-Insurance Reserves
 
•Derivative Financial Instruments
 
•Revenue Recognition

Income Taxes
In the thirdfirst quarter of 20122013, there were no changes in the above critical accounting policies previously disclosed in our Annual Report on Form 10-K10-K/A for the year ended December 31, 20112012. except as noted below.
Change in Depreciation Method
Effective January 1, 2013, the Partnership changed its method of depreciation for the group of assets acquired as a whole in 1983, as well as for the groups of like assets of each subsequent business acquisition from the composite method to the unit method.
Historically, the Partnership had used the composite depreciation method for land improvements, buildings, rides and equipment for the group of assets acquired as a whole in 1983, as well as for the group of like assets of each subsequent business acquisition. The unit method was only used for all individual assets purchased. Under the composite depreciation method, assets with similar estimated lives are grouped together and the several pools of assets are depreciated on an aggregate basis. No gain or loss is recognized on normal retirements of composite assets. Instead, the net book value of a retired asset reduces accumulated depreciation for the composite group. Unusual retirements of composite assets could result in the recognition of a gain or loss. Under the unit method of depreciation, individual assets are depreciated over their estimated useful lives, with gains and losses on all asset retirements recognized currently in income.
In order to improve comparability and enhance the level of precision associated with allocating historical cost, the Partnership had determined that it was preferable to change from the composite method of depreciation to the unit method of depreciation for

33

all assets. The Partnership believes that pursuant to generally accepted accounting principles, changing from the composite method of depreciation to the unit method of depreciation is a change in accounting estimate that is effected by a change in accounting principle, which should be accounted for prospectively. This prospective application will result in the discontinuance of the composite method of depreciation for all prior acquisitions with the existing net book value of each composite pool allocated to the remaining individual assets (units) in that pool with each unit assigned an appropriate remaining useful life on an individual unit basis. Assigning a useful life to each unit in the various composite pools had an insignificant effect on the weighted average useful lives of all assets that were previously accounted for under the composite method.
The change in depreciation method had an immaterial impact on the Condensed Consolidated Financial Statements for the quarter ended March 31, 2013.Future asset retirements could have a material impact on the Condensed Consolidated Financial Statements in the periods such items occur.


Adjusted EBITDA:
We believe that Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, other non-cash items, and adjustments as defined in the Amended 20102013 Credit Agreement) is a meaningful measure of park-level operating profitability because we use it for measuring returns on capital investments, evaluating potential acquisitions, determining awards under incentive compensation plans, and calculating compliance with certain loan covenants. Adjusted EBITDA is provided in the discussion of results of operations that follows as a supplemental measure of our operating results and is not intended to be a substitute for operating income, net income or cash flows from operating activities as defined under generally accepted accounting principles. In addition, Adjusted EBITDA may not be comparable to similarly titled measures of other companies.

33

The table below sets forth a reconciliation of Adjusted EBITDA to net income for the three-, nine- and twelve-month periods ended September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012.
 
  Three months ended Nine months ended Twelve months ended
  9/30/2012 9/25/2011 9/30/2012 9/25/2011 9/30/2012 9/25/2011
  (13 weeks) (13 weeks) (39 weeks) (38 weeks) (53 weeks) (52 weeks)
  (In thousands )
Net income $140,688
 $152,218
 $111,595
 $71,574
 $110,767
 $8,116
Interest expense 26,863
 41,353
 83,902
 124,650
 116,437
 171,049
Interest income (13) (32) (31) (120) (68) (194)
Provision (benefit) for taxes 51,713
 37,844
 41,395
 21,773
 30,839
 (12,424)
Depreciation and amortization 60,747
 63,448
 113,156
 110,857
 128,136
 126,382
EBITDA 279,998
 294,831
 350,017
 328,734
 386,111
 292,929
Net effect of swaps (175) (3,962) (1,318) (3,507) (10,930) 1,772
Unrealized foreign currency (gain) loss (14,737) 17,314
 (14,108) 13,224
 (17,502) 549
Non-cash equity expense (income) 362
 —
 2,630
 (228) 2,619
 (269)
Loss on impairment of goodwill and other intangibles —
 —
 —
 —
 —
 903
Loss on impairment/retirement of fixed assets, net 25,000
 880
 24,230
 1,076
 25,719
 63,509
Terminated merger costs —
 —
 —
 80
 150
 (79)
Refinancing costs —
 (195) —
 955
 —
 955
Other non-recurring items (as defined) 1,861
 836
 4,026
 6,107
 7,445
 6,107
Adjusted EBITDA (1)
 $292,309
 $309,704
 $365,477
 $346,441
 $393,612
 $366,376
             
(1) As permitted by and defined in the Amended 2010 Credit Agreement        
  Three months ended Twelve months ended
  3/31/2013 3/25/2012 3/31/2013 3/25/2012
  (13 weeks) (12 weeks) (53 weeks) (52 weeks)
  (In thousands)
Net income (loss) $(109,126) $(65,415) $58,145
 $84,807
Interest expense 25,763
 26,803
 109,579
 142,876
Interest income (40) (16) (92) (92)
Provision (benefit) for taxes (35,659) (21,539) 17,638
 5,937
Depreciation and amortization 4,786
 4,079
 127,013
 125,892
EBITDA (114,276) (56,088) 312,283
 359,420
Loss on early extinguishment of debt 34,573
 —
 34,573
 —
Net effect of swaps 9,211
 (970) 8,689
 (15,976)
Unrealized foreign currency (gain) loss 8,881
 (8,249) 7,949
 8,502
Non-cash equity expense 2,933
 1,700
 4,498
 1,689
Loss on impairment/retirement of fixed assets, net 600
 92
 30,844
 11,251
(Gain) on sale of other assets —
 —
 (6,625) —
Terminated merger costs —
 —
 —
 230
Refinancing costs —
 —
 —
 (34)
Other non-recurring items (as defined) 805
 1,721
 3,264
 6,823
Adjusted EBITDA (1)
 $(57,273) $(61,794) $395,475
 $371,905
         
(1) As permitted by and defined in the 2013 Credit Agreement    

34

Results of Operations:

Our results of operations for the nine, three and twelve months ended September 30, 2012 and September 25, 2011 are not directly comparable as the current nine- and twelve month periods include an additional week of operations due to the timing of the fiscal third quarter close, and as the current three-month period includes fewer operating days due to the timing of the fiscal second and third quarter closes. Since a large portion of the variances in our statements of operations is due to the difference in the number of operating days in the current fiscal periods, we will also compare current operating results to the prior year period ended October 2, 2011.

Immaterial Restatement -

We have made two separate corrections relating to our use of the composite depreciation methodmethod.

The first correction, which impacts the Balance Sheet at March 25, 2012 and the Statement of Operations and Other Comprehensive Income for the group3 and 12 month periods ended March 25, 2012, related to a misapplication of assets acquired as a whole in 1983, as well as for groups of assets in each subsequent business acquisition.the composite depreciation method. Upon the normal retirement of an asset within a composite group, our practice generally hashad been to extend the depreciable life of that composite group beyond its original estimated useful life. In conjunction with the preparation of our financial statements for the three months ended July 1,in 2012, wemanagement determined that this methodology was not appropriate. As a result, we revised the useful lives of our composite groups to their original estimated useful life (ascribed upon acquisition) and corrected previously computed depreciation expense (and accumulated depreciation).

The second correction, which impacts the Balance Sheet at March 25, 2012 and the Statement of Operations and Other Comprehensive Income for the 12 month period ended March 25, 2012, reflects a subsequent determination that a disposition from our composite group of assets was considered to be unusual. In certain situations under the composite method, disposals are considered unusual and, accordingly, losses are not included in the composite depreciation pool but are rather charged immediately to expense. In 2013, the Partnership's initial determination of whether a specific asset retired under the composite method of depreciation in 2011 was normal was challenged by the SEC Staff. We evaluated the amount and nature of these adjustments andultimately concluded that theysuch disposition was unusual and that a $8.8 millioncharge be reflected in the 2011 financial statements.

First Quarter -

Operating results for the first quarter historically include less than 5% of our full-year revenues and attendance. The results include normal off-season operating, maintenance and administrative expenses at our ten seasonal amusement parks and four outdoor water parks, as well as daily operations at Knott's Berry Farm, which is open year-round, and Castaway Bay, which is generally open daily from Memorial Day to Labor Day plus a limited daily schedule for the balance of the year.
The following table presents key financial information for the three months ended March 31, 2013 and March 25, 2012:
  Three months ended Three months ended Increase (Decrease)
  3/31/2013 3/25/2012 $ %
  (13 weeks) (12 weeks)    
    (As restated)    
  (Amounts in thousands)
Net revenues $41,799
 $28,198
 $13,601
 48.2 %
Operating costs and expenses 102,733
 93,356
 9,377
 10.0 %
Depreciation and amortization 4,786
 4,079
 707
 17.3 %
Loss on impairment / retirement of fixed assets 600
 92
 508
 N/M
Operating loss $(66,320) $(69,329) $3,009
 (4.3)%
         
Other Data:        
Adjusted EBITDA $(57,273) $(61,794) $4,521
 (7.3)%

For the quarter ended March 31, 2013, net revenues increased to $41.8 million from $28.2 million for the first quarter of 2012. The increase between periods was primarily due to the strong first-quarter performance in both attendance and per-capita spending at Knott's Berry Farm, our only year-round property, compared with the first quarter a year ago, as well as an extra week of operations due to the earlier timing of Easter in 2013 compared to 2012. At the end of the first quarter, only five of our 15 properties were not materialin operation. The other parks, including our larger parks, Cedar Point and Kings Island located in Ohio and Canada's Wonderland in Toronto, were in the final stages of preparing to eitheropen for the 2013 operating season.

Operating costs and expenses for the quarter increased $9.3 million to $102.7 million from $93.4 million in 2012 and were in line with expectations. Operating results for the first quarter include normal off-season operating, maintenance and administrative

35

expenses at our prior annualseasonal amusement and water parks, and daily operations at Knott’s Berry Farm and Castaway Bay. The increase in first-quarter costs reflects a $5.4 million increase in operating expenses and a $2.3 million increase in selling, general and administrative ("SG&A") expenses. The cost of food, merchandise and games revenues for the period increased slightly due to sales volume increases at Knott's Berry Farm in the first quarter of 2013. The $5.4 million increase in operating expenses was due primarily to the extra week of operations in the first quarter of 2013 compared with 2012. For the quarter, labor costs increased $3.8 million, maintenance expense increased $2.2 million and operating supplies increased $0.9 million. These increases in operating costs were somewhat offset by a reduction in insurance expense due to a prior-year, non-recurring public liability claim at one of our parks. The $2.3 million increase in SG&A expenses was due primarily to increases in first-quarter advertising fees and full-time labor costs, largely related to full staffing levels.

Interest expense for the first quarter of 2013 was $25.8 million, representing a $1.0 million decrease compared to the first quarter of 2012. The decrease in interest expense was primarily due to the settlement of our Canadian swap in the first quarter of 2012.

During the first quarter of 2013, the net effect of our swaps decreased $10.2 million to a non-cash charge to earnings of $9.2 million, reflecting the regularly scheduled amortization of amounts in AOCI related to interest rate swaps, the write off of amounts in AOCI related to de-designated interest rate swaps, as well as gains from marking the ineffective and de-designated swaps to market. During the first quarter of 2013 we also recognized a $9.0 million charge to earnings for unrealized/realized foreign currency gains and losses, $8.9 million of which represents an unrealized foreign currency loss on the U.S.-dollar denominated debt held at our Canadian property. Due to our March 2013 refinancing, loan fees related to our 2010 and 2011 financings were written off, resulting in a $34.6 million charge to earnings in the period.

During the quarter, a benefit for taxes of $35.7 million was recorded to account for publicly traded partnership (PTP) taxes and the tax attributes of our corporate subsidiaries, compared to a benefit for taxes of $21.5 million in the same period a year ago. Actual cash taxes paid or quarterly financial statements. Nonetheless, the historical financial statement amounts included in this filing have been corrected for this error. We expect to likewise correct previously presented historical financial statementspayable are estimated to be included in future filings, including the annual financial statements to be included in our Annual Report on Form 10-Kbetween $14-$17 million for the 2013 calendar year.

After interest expense and the provision for taxes, net loss for the quarter totaled $109.1 million, or $1.95 per diluted limited partner unit, compared with net loss of $65.4 million, or $1.18 per diluted limited partner unit, for the first quarter a year ending December 31, 2012.ago. The larger net loss for the period is due to the loss on early debt extinguishment and a change in the unrealized/realized loss on foreign currency exchange, offset somewhat by the increased first-quarter revenues.


NineTwelve Months Ended September 30, 2012March 31, 2013 -

The fiscal nine-monthtwelve-month period ended September 30, 2012,March 31, 2013, consisted of a 39-week53-week period and included a total of 2,178 operating days compared with 3852 weeks and 2,148 operating days for the fiscal nine-monthtwelve-month period ended SeptemberMarch 25, 2011.2012. Operating days were virtually identical, as the current period had only one additional operating day.

The following table presents key financial information for the ninetwelve months ended September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012:
  Nine months ended Nine months ended Increase (Decrease)
  9/30/2012 9/25/2011 $ %
  (39 weeks) (38 weeks)    
  (Amounts in thousands except per capita spending)
         
Net revenues $939,249
 $883,627
 $55,622
 6.3 %
Operating costs and expenses 580,246
 541,665
 38,581
 7.1 %
Depreciation and amortization 113,156
 110,857
 2,299
 2.1 %
Loss on impairment / retirement of fixed assets, net 24,230
 1,076
 23,154
 N/M
Operating income $221,617
 $230,029
 $(8,412) (3.7)%
N/M - Not meaningful        
Other Data:        
Adjusted EBITDA $365,477
 $346,441
 $19,036
 5.5 %
Adjusted EBITDA margin 38.9% 39.2% $—
 (0.3)%
Attendance 20,689
 20,114
 575
 2.9 %
Per capita spending $41.78
 $40.15
 $1.63
 4.1 %
Out-of-park revenues $99,526
 $97,622
 $1,904
 2.0 %
  Twelve months ended Twelve months ended Increase (Decrease)
  3/31/2013 3/25/2012 $ %
  (53 weeks) (52 weeks)    
    (As restated)    
  (Amounts in thousands)
Net revenues $1,082,055
 $1,029,801
 $52,254
 5.1%
Operating costs and expenses 694,139
 666,535
 27,604
 4.1%
Depreciation and amortization 127,013
 125,892
 1,121
 0.9%
(Gain) on sale of other assets (6,625) —
 (6,625) N/M
Loss on impairment/retirement of fixed assets 30,844
 11,251
 19,593
 174.1%
Operating income $236,684
 $226,123
 $10,561
 4.7%
N/M - Not meaningful        
Other Data:        
Adjusted EBITDA $395,475
 $371,905
 $23,570
 6.3%
Adjusted EBITDA margin 36.5% 36.1% —
 0.4%


36

Net revenues totaled $1,082.1 millionfor the ninetwelve months ended September 30, 2012March 31, 2013, increasing $52.3 million, from $1,029.8 million increased $55.6 million to $939.2 million from $883.6 million duringfor the ninetrailing twelve months ended SeptemberMarch 25, 20112012. The increase in revenues reflects an increase of 575,000 visits, or 3%, in combined attendanceRevenues for the nine-monthtwelve-month period ended September 30, 2012 when compared withincreased 5% on the nine-month period ended September 25, 2011. The increase in revenues also reflects a 4%, or $1.63, increase in averagestrength of higher attendance and in-park guest per capita spending. In-park guest per capita spending represents the amount spent per attendee to gain admission to a park, plus all amounts spent while inside the park gates. The increase in per capita spending was largely due to the successful introduction of new premium benefit offerings and the positive impact of new customer messaging and dynamic pricing initiatives. Attendance increased year-over-year on virtually the same number of operating days as our season pass sales and visits increased during the same nine-month period and a 2%, or $1.9 million, increase incomparable periods.

Meanwhile, out-of-park revenues. Out-of-park revenues, includewhich represents the sale of hotel rooms, food, merchandise and other complementary activities located outside of the park gates, as well as e-commerce transaction fees. In-park guest per capita spending representsincreased slightly in the average amount spent per attendee to gain admission to a park

35

plus all amounts spent while inside the park gates. Revenuescomparable periods. The increase in net revenues for the first ninetwelve months of the yearended March 31, 2013 also reflectreflects the negative impact of currency exchange rates and the weakening U.S. dollar on our Canadian operations ($4.5(approximately $4.5 million) during the period.

For the nine-month period ended September 30, 2012, operatingOperating costs and expenses increased 7%$27.6 million, or 4%, or $38.5to $694.1 million to $580.2 million from $541.7versus $666.5 million for 2012 and were in line with expectations. The increase in costs and expenses was the nine-month period ended September 25, 2011, the net result of a $3.9$4.0 million increase in cost of goods sold, a $29.3$19.8 million increase in operating expenses, and a $5.4 million$3.9 increase in selling, generalSG&A costs. The 4% increase in cost of goods sold is consistent with anticipated cost increases associated with our efforts to improve the quality of food and other product offerings at our parks. Operating expenses increased due to several factors, including higher employment-related costs, higher operating supply costs, and higher self-insurance expenses. Employment-related costs increased approximately $12.6 million due to normal merit increases, increases in health-related benefit costs, additional staffing levels associated with new premium benefit offerings and other initiatives aimed at improving the overall guest experience, and non-recurring severance payments. Operating supplies and expenses increased approximately $5.3 million due primarily to initiatives to expand or enhance live entertainment at the parks, as well as incremental costs associated with our e-commerce platform and higher attendance. These increases in operating costs were somewhat offset by a reduction in insurance expense due to a prior-year (first quarter of 2012), non-recurring public liability claim at one of our parks.

The increase in SG&A costs was due to an increase in employment-related costs ($4.5 million), operating supplies ($3.8 million), and agency advertising fees ($2.7 million), offset by decreases in professional and administrative costs ("SG&A")($5.9 million). DepreciationThe increase in employment costs was primarily the result of higher wages and amortization expense for the period increased $2.3 millionbenefits due to normal merit increases and full-staffing levels. Increases in operating supplies and advertising fees were due to the earlier timing of Easter, as well as incremental costs to support operating initiatives including general infrastructure improvements. Professional and administrative fees decreased primarily due to a reduction in litigation expenses and costs for SEC compliance matters related to Special Meeting requests. The overall increase in capital spending when compared withcosts and expenses also reflects the prior year. The positive impact of exchange rates on our Canadian operations ($1.2 million) during the period.

Loss on impairment/retirement of fixed assets, reported fornet, during the nine-month period totaled $30.8 million, which reflects a non-cash charge to earnings of $25.0 million for the partial impairment of operating and non-operating fixed assets at Wildwater Kingdom netalong with losses on other retirements. During the twelve-month period ended March 31, 2013, two non-core assets were sold at gains totaling $6.6 million. During the twelve-month period ended March 25, 2012, a charge of an $0.8$11.3 million gain fromfor the sale of a non-operating asset at one of our properties. After depreciation, amortization, loss on impairment / retirement of fixed assets was recorded which includes the retirement of the asset as described in Note 11 to the financial statements.

Depreciation and amortization expense for the period increased $1.1 million compared with the prior period due primarily to an increase in capital expenditures for the 2012 season. After depreciation and amortization, as well as impairment charges and all other non-cash costs, operating income for the current period decreased $8.4increased $10.6 million to $221.6$236.7 million through the first nine months of 2012 from operating income of $230.0 million through the first nine months of 2011.$226.1 million.

Interest expense for the first three quarters of 2012 was $83.9twelve months ended March 31, 2013 decreased $33.3 million a decrease of $40.7to $109.6 million, from $142.9 million for the first three quarters of 2011.same twelve-month period a year ago. The reduction in interest expense iswas primarily attributable to an approximate 300 basis point (bps) decline in our effective interest rate, the result of lower fixed rates on London InterBank Offered Rate (LIBOR) within our interest-rate swap contracts. TheAdditionally during the current period, $25.0 million of term debt principal payments were made, reducing our average fixed LIBOR rate in our swap agreements declined from 5.62% in 2011 to 2.48% in 2012.debt outstanding.

ForDuring the current period, the net effect of our interest rate swaps decreased $2.2was recorded as a charge to earnings of $8.7 million between years, resulting incompared to a non-cash benefit to earnings of $1.3$16.0 million for the first nine months of 2012, as compared with a $3.5 million non-cash benefit to earnings for the nine-month period in 2011.prior period. The difference reflects the regularly scheduled amortization of amounts in Accumulated other comprehensive income ("AOCI")AOCI related to the swaps and the write off of AOCI amounts related to de-designated interest rate swaps, which were offset by gains from marking the ineffective and de-designated swaps to market and foreign currency gains related to the U.S.-dollar denominated Canadian term loan in the current period. During the current year-to-date period, we also recognized a $13.9$8.2 million net benefitcharge to earnings for unrealized/realized foreign currency gains,losses, which included a $14.1$7.9 million unrealized foreign currency gainloss on the U.S.-dollar denominated debt held at our Canadian property. Due to our March 2013 refinancing, loan fees that were paid as part

37

of our 2010 and 2011 financings were written off, resulting in a $34.6 million non-cash charge to earnings recorded in "Loss on early debt extinguishment" on the consolidated statement of operations.

During the first fiscal nine months of 2012, aA provision for taxes of $41.4$17.6 million was recorded to accountin the period for publicly traded partnership (“PTP”) taxes and the tax attributes of our corporate subsidiaries.subsidiaries and publicly traded partnership (PTP) taxes. This compares with a $21.8 million provision for taxes of $5.9 million in period ended March 25, 2012 for the first fiscal nine monthstax attributes of 2011. The year-over-year variation in the tax provision is due primarily to an increase in the income subject to tax. Actual cash taxes paid or payable for the 2012 calendar year are estimated to be between $11our corporate subsidiaries and $13 million. The Partnership also expects to receive a $10.4 million refund of prior year taxes paid resulting from the carry back of the loss recognized from the settlement of a derivative contract.PTP taxes.

After interest expense and the benefitprovision for taxes, net income for the nine months ended September 30, 2012period totaled $111.6$58.1 million, or $2.00$1.04 per diluted limited partner unit, compared with net income of $71.6$84.8 million, or $1.28$1.52 per unit, for the nine months ended September 25, 2011.a year ago.

It is important to note that the current nine-month results benefited from an additional week, or 30 more operating days, due to the timing of the third quarter fiscal close. Comparing both 2012 and 2011 on a 39-week basis, net revenues would have been up $41.1 million, or 5%, on increases in both attendance and in-park guest per capita spending. On a comparable basis, attendance would have increased 228,000 visits, primarily due to an increase in season pass attendance, and in-park per capita spending would have increased $1.67, or 4%, primarily due to new premium benefit offerings and the positive impact of new customer messaging and dynamic pricing. Over that same comparable basis, out-of-park revenues would have decreased by approximately $0.3 million, or less than 1%.

Operating costs and expenses on a comparable 39-week basis would have increased approximately $27.9 million, or 5%, due to an increase of $2.9 million, or 3%, in cost of goods sold, an increase in operating expenses of $21.9 million, or 6%, and an increase of $3.1 million, or 3%, in SG&A costs. The overall increase in costs and expenses also reflects the positive impact of exchange rates on our Canadian operations (approximately $1.6 million) during the nine-month period ended September 30, 2012.

The 3% increase in cost of goods sold is consistent with anticipated cost increases associated with our efforts to improve the quality of food and other product offerings at the parks in 2012. Operating expenses in the 39-week period increased due to several factors, including higher employment-related costs, higher maintenance and operating supply costs, and higher self-insurance expenses. Employment-related costs increased approximately $11.0 million due to normal merit increases, increases in health-related benefit costs, additional staffing levels associated with new premium benefit offerings and other initiatives aimed at improving the overall guest experience, and non-recurring severance payments. Due in part to mild weather, we were able to accelerate off-season maintenance projects into the first half of the year, resulting in year-over-year maintenance expense increasing by approximately $4.4 million. Operating supplies and expenses increased approximately $4.0 million due primarily to initiatives

36

to expand or enhance live entertainment at the parks, as well as incremental costs associated with our new e-commerce platform. During the first nine months, public liability and workers compensation expense increased $2.1 million due to claim settlements and an increase in our reserves based on management's estimates of future claims.

SG&A expense for the comparable 39-week period increased approximately $3.1 million compared to same period in 2011 due to an increase in operating supplies of $4.7 million, an increase in advertising costs of $1.5 million, and an increase in employee related costs of $2.9 million. The operating supplies and advertising increases were due to incremental costs to support 2012 operating initiatives including general infrastructure improvements. These increases in expense were offset somewhat by a reduction in litigation expenses and costs for SEC compliance matters related to Special Meeting requests in 2011.

For the fiscal nine-month period ended September 30, 2012,We believe Adjusted EBITDA (as defined in the Amended 2010 Credit Agreement), which we believe is a meaningful measure of our park-level operating results (for additional information regarding Adjusted EBITDA, including how we define and use Adjusted EBITDA, as well as a reconciliation from net income, see Note 6 in Item 6, “Selected Financial Data,” on pages 15-16). For the twelve-month period ended March 31, 2013, Adjusted EBITDA increased $23.6 million, or 6%, to $365.5 million compared with $346.4 million$395.5 million. Over this same period, our Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) increased 40 bps to 36.5% from 36.1% for the fiscal nine-monthtwelve-month period ended SeptemberMarch 25, 2011. This2012. The increase was due in part to the extra week in the current fiscal nine-month period. On a same-week basis, Adjusted EBITDA for the nine-month period would have still been up approximately $15.2 million, or 4%, between years,was primarily due to anthe increase in revenues resulting from the successful introduction of our new premium benefit offerings and dynamic pricing initiatives, as well as the successful expansion of our season pass base. These revenue gains were offset somewhat by an increase in operating costs in the period. For additional information regarding Adjusted EBITDA, including how we define Adjusted EBITDA, why we believe it provides useful information, and for a reconciliation to net income, see pages 33-34.

Third Quarter -

The fiscal three-month period ended September 30, 2012, consisted of a 13-week period and included a total of 1,177 operating days compared with 13 weeks and 1,253 operating days for the fiscal three-month period ended September 25, 2011. The variance in days is due to a shift in the operating calendar.

The following table presents key financial information for the three months ended September 30, 2012 and September 25, 2011:
  Three months ended Three months ended Increase (Decrease)
  9/30/2012 9/25/2011 $ %
  (13 weeks) (13 weeks)    
  (Amounts in thousands)
Net revenues $553,445
 $572,268
 $(18,823) (3.3)%
Operating costs and expenses 263,657
 262,188
 1,469
 0.6 %
Depreciation and amortization 60,747
 63,448
 (2,701) (4.3)%
Loss on impairment / retirement of fixed assets 25,000
 880
 24,120
 N/M
Operating income $204,041
 $245,752
 $(41,711) (17.0)%
N/M - Not meaningful        
Other Data:        
Adjusted EBITDA $292,309
 $309,704
 $(17,395) (5.6)%
Adjusted EBITDA margin 52.8% 54.1% —
 (1.3)%
Attendance 11,960
 12,933
 (973) (7.5)%
Per capita spending $42.90
 $40.84
 $2.06
 5.0 %
Out-of-park revenues $54,260
 $58,879
 $(4,619) (7.8)%

For the quarter ended September 30, 2012, net revenues decreased 3%, or $18.8 million, to $553.5 million from $572.3 million in 2011. This decrease reflects a 5% increase in average in-park per capita spending, offset by an 8% decrease in combined attendance (973,000 visits), and an 8% ($4.6 million) decrease in out-of-park revenues. The decreases in net revenues and attendance was largely attributable to the decrease in operating days in the quarter due to the way the fiscal calendar fell in 2012 compared with 2011. In-park per capita spending increased primarily due to new premium benefit offerings and the positive impact of new customer messaging and dynamic pricing. Out-of-park revenues decreased due to soft results in accommodations being somewhat offset by fees generated from our new e-commerce initiatives. The decrease in revenues for the third quarter of 2012 also reflects the negative impact of exchange rates on our Canadian operations ($2.4 million) during the period.


37

Operating costs and expenses for the quarter increased less than 1%, or $1.5 million, to $263.7 million from $262.2 million in the third quarter of 2011, the net result of a $1.4 million decrease in cost of goods sold, a $1.9 million increase in operating expenses and a $1.0 million increase in SG&A costs. Operating cost and expense variances between years were also affected by the fewer number of operating days in the current fiscal quarter, as discussed above. Depreciation and amortization expense for the quarter decreased $2.7 million due primarily to the reduction in operating days in the period, on which depreciation expense is based. During the current quarter, we recognized a non-cash charge to earnings of $25.0 million for the partial impairment of operating and non-operating fixed assets at Wildwater Kingdom.

Interest expense for the third quarter of 2012 was $26.9 million, representing an $14.5 million decrease from the interest expense for the third quarter of 2011. As mentioned in the nine-month discussion above, interest expense decreased primarily due to an approximate 300 bps decline in our effective interest rate. The decline in the effective interest rate is primarily due to lower fixed rates of LIBOR in debt associated derivative contracts, which declined from 5.62% in 2011 to 2.48% in 2012.

The net effect of our swaps during the third quarter was a non-cash benefit to earnings of $0.2 million, representing a decrease of $3.8 million from the prior year. This non-cash benefit reflects the regularly scheduled amortization of amounts in AOCI related to the swaps. During the 2012 third quarter, we also recognized a $15.0 million net benefit to earnings for unrealized/realized foreign currency gains, $14.7 million of which represents an unrealized foreign currency gain on the U.S.-dollar denominated debt held at our Canadian property.

During the quarter, a provision for taxes of $51.7 million was recorded to account for PTP taxes and the tax attributes of our corporate subsidiaries, compared to a provision for taxes of $37.8 million in the same period a year ago. The variation in the tax provision recorded between periods is due primarily to the increase in income subject to tax. After interest expense and the provision for taxes, net income for the quarter totaled $140.7 million, or $2.51 per diluted limited partner unit, compared with net income of $152.2 million, or $2.73 per unit, for the third quarter a year ago.

It is important to note that the current three-month results were negatively impacted by 76 less operating days, due to the timing of the second and third quarter fiscal closes. Comparing the third quarters of 2012 and 2011 on a comparable operating-day basis, net revenues would have been up $20.8 million, or 4%, on an increase in average in-park guest per capita spending offset by a slight decrease in attendance and a 3% decrease in out-of-park revenues.

Operating costs and expenses on a comparable operating-day basis would have increased approximately $12.4 million, or 5%, on a $2.1 million increase in cost of goods sold, an $8.4 million increase in operating expenses, and $1.9 million increase in SG&A costs. The overall increase in costs and expenses also reflects the positive impact of exchange rates on our Canadian operations (approximately $0.6 million) during the third quarter. The increase in cost of goods sold is consistent with anticipated cost increases associated with our efforts to improve the quality of food and other product offerings at the parks in 2012. Consistent with our nine-month discussion above, operating expenses in the third quarter increased as a result of higher employment-related costs, higher maintenance and operating supply costs, and higher self-insurance expenses. The increase in SG&A expense for the quarter reflects an increase in operating supplies associated with the new e-commerce initiative and general park infrastructure improvements, offset slightly by a reduction in litigation expenses and costs for SEC compliance matters related to Special Meeting requests in the third quarter of 2011.

For the current quarter, Adjusted EBITDA decreased to $292.3 million from $309.7 million for the fiscal third quarter of 2011. The $17.4 million decrease in Adjusted EBITDA was due to the shift in operating days during the quarter. On a same week basis, Adjusted EBITDA would have increased $11.3 million due to incremental revenues resulting from the introduction of new premium benefit offerings, which contributed to increased average guest per capita spending, as well as an increase in attendance in the quarter. Partially offsetting these gains on a same week basis were higher park-level operating costs during the period related to park pre-opening and off-season maintenance projects and increases in costs to support 2012 initiatives, including a new e-commerce platform and infrastructure improvements. For additional information regarding Adjusted EBITDA, including how we define Adjusted EBITDA, why we believe it provides useful information, and for a reconciliation to net income, see pages 33-34.










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Twelve Months Ended September 30, 2012 -

The fiscal twelve-month period ended September 30, 2012, consisted of a 53-week period and included a total of 2,416 operating days compared with 52 weeks and 2,381 operating days for the fiscal twelve-month period ended September 25, 2011.

The following table presents key financial information for the twelve months ended September 30, 2012 and September 25, 2011:
  Twelve months ended Twelve months ended Increase (Decrease)
  9/30/2012 9/25/2011 $ %
  (53 weeks) (52 weeks)    
  (Amounts in thousands)
Net revenues $1,084,094
 $1,013,316
 $70,778
 7.0%
Operating costs and expenses 701,915
 650,925
 50,990
 7.8%
Depreciation and amortization 128,136
 126,382
 1,754
 1.4%
Loss on impairment of goodwill and other intangibles —
 903
 (903) N/M
Loss on impairment/retirement of fixed assets 25,719
 63,509
 (37,790) N/M
Operating income $228,324
 $171,597
 $56,727
 33.1%
N/M - Not meaningful        
Other Data:        
Adjusted EBITDA $393,612
 $366,376
 $27,236
 7.4%
Adjusted EBITDA margin 36.3% 36.2% —
 0.2%
Attendance 23,961
 23,135
 826
 3.6%
Per capita spending $41.44
 $39.91
 $1.53
 3.8%
Out-of-park revenues $119,460
 $114,258
 5,202
 4.6%

Net revenues totaled $1,084.1 million for the twelve months ended September 30, 2012, increasing $70.8 million, from $1,013.3 million for the trailing twelve months ended September 25, 2011. The increase in revenues was due to an increase in attendance of 826,000 visits, or 4%, an increase in average in-park per capita spending of $1.53, or 4%, and an increase in out-of-park revenues of $5.2 million, or 5%. The attendance increase was due to an increase in season pass visitation as well as the effect of the extra operating days in the period. The increase in average in-park guest per capita spending is primarily due to new premium benefit offerings and the positive impact from new customer messaging and dynamic pricing. Out-of-park revenues increased due to our hotel properties and due to an increase in fees generated by our new e-commerce initiatives. The increase in revenues was also positively affected by the additional operating days in the current fiscal period.

When comparing the two twelve-month periods, operating costs and expenses increased $51.0 million, or 8%, to $701.9 million in 2012 from $650.9 million in 2011. The increase in operating costs and expenses was the net result of a $5.2 million increase in cost of goods sold, a $33.2 million increase in operating expenses and an increase of $12.6 million in selling, general and administrative costs. The increase in operating expenses is primarily attributable to higher employment related expenses of $15 million, $6 million of higher maintenance costs, $1 million in higher insurance costs, and $5 million of higher operating supply costs. The increase in wages is largely due to increased seasonal labor hours as a result of expanded operating hours at several parks, additional attractions and guest services, and the overall effect of increased attendance. The increase in insurance costs was primarily the result of claim settlements and increases in our reserves based on future estimated claim liabilities. As discussed in the nine- and three-month sections, maintenance costs increased primarily due to the earlier timing of planned off-season projects, as well as an increase in the number of projects designed to add to the guest experience. The increase in operating supply costs relates primarily to an increase in attendance over the past year, as well as incremental costs associated with the new e-commerce platform. The increase in SG&A costs includes $5 million in costs largely related to the launching of several new revenue initiatives for the 2012 season, as well as a $3 million increase in advertising expense as we transitioned to a new advertising agency for 2012. Employment related expenses increased $5 million primarily due to the receipt of a non-recurring payroll tax credit of $2.5 million recorded in the fourth quarter of 2010, as well as an increase in retirement expenses and non-recurring severance payments in the current twelve-month period. The overall increase in costs and expenses also reflects the positive impact of exchange rates on our Canadian operations (approximately $1.6 million) during the twelve-month period ended September 30, 2012.

Depreciation and amortization expense for the trailing-twelve-month periods increased $1.8 million between years due to the increase in capital spending during the current-year period compared with the prior year. During the twelve months ended September 30, 2012, we recognized $0.7 million in non-cash charges for the retirement of assets in the normal course of business. Additionally, we recorded a non-cash charge of $25.0 million for the partial impairment of operating and non-operating fixed

39

assets at Wildwater Kingdom during the third quarter in 2012. This compares to a non-cash charges recognized during the twelve-month period ended September 25, 2011 of $62.0 million at California's Great America for the partial impairment of its fixed assets and $1.5 million for asset retirements across all properties. Additionally, a non-cash charge of $0.9 million was recorded during the fourth quarter of 2010 for the partial impairment of trade-names originally recorded at the time of the PPI acquisition. It is important to note that each of our parks produces positive cash flow, and that trade-name write-downs and fixed asset impairment losses do not affect cash, Adjusted EBITDA or liquidity.

After depreciation, amortization, loss on impairment of the trade-names, loss on impairment / retirement of fixed assets, and all other non-cash costs, operating income for the twelve months ended September 30, 2012 increased $56.7 million to $228.3 million compared with $171.6 million for the same period a year ago.

Interest expense for the twelve month period ended September 30, 2012 decreased $54.6 million to $116.4 million from $171.0 million for the prior twelve month period ended September 25, 2011. As mentioned in the nine-month discussion above, interest expense decreased primarily due to an approximate 300 bps decline in our effective interest rate. The decline in the effective interest rate is primarily due to lower fixed rates of LIBOR in debt associated derivative contracts, which declined from 5.62% in 2011 to 2.48% in 2012.

The net effect of our swaps during the period was a non-cash benefit to earnings of $10.9 million, representing an increase of $12.7 million from the same period ended September 25, 2011. This non-cash benefit reflects gains from marking the ineffective and de-designated swaps to market, offset somewhat by the regularly scheduled amortization of amounts in AOCI related to the swaps and foreign currency losses related to the U.S.-dollar denominated Canadian term loan in the current twelve month period. During the current twelve-month period, we also recognized a $18.7 million net benefit to earnings for unrealized/realized foreign currency gains and losses, $17.5 million of which represents an unrealized foreign currency gain on the U.S.-dollar denominated debt held at our Canadian property.

A provision for taxes of $30.8 million was recorded to account for PTP taxes and the tax attributes of our corporate subsidiaries during the twelve-month period ended September 30, 2012, compared with a net benefit for taxes of $12.4 million during the same twelve-month period a year ago. The variation in the recorded tax provision between periods is due to the higher income subject to tax for the twelve-month period ending September 30, 2012 and the tax benefit of the impairment charge recorded in the previous twelve-month period.

After interest expense and the provision for taxes, net income for the twelve months ended September 30, 2012 was $110.8 million, or $1.98 per diluted limited partner unit, compared with net income of $8.1 million, or $0.15 per diluted limited partner unit, for the twelve months ended September 25, 2011.

It is important to note that due to the timing of the third quarter fiscal close results for the twelve-month period ended September 30, 2012 benefited from an additional week (53 weeks) compared to the twelve-month period ended September 25, 2011 (52 weeks). Comparing the twelve-month periods for both 2012 and 2011 on a 53-week basis, net revenues would have been up $56.2 million, or 5%, on increases in attendance, in-park guest per capita spending and out-of-park revenues. On a comparable 53-week basis, attendance would have increased 479,000 visits, due to an increase in season pass attendance, and in-park per capita spending would have increased $1.56, or 4%, primarily due to new premium benefit offerings and the positive impact of new customer messaging and dynamic pricing. Over that same comparable basis, out-of-park revenues would have increased by approximately $3.5 million, or 3%.

On a comparable 53-week basis, operating costs and expenses would have increased approximately $40.3 million, or 6%, on a $4.2 million increase in cost of goods sold, an $25.8 million increase in operating expenses, and $10.4 million increase in SG&A costs. The overall increase in costs and expenses also reflects the favorable impact of exchange rates on our Canadian operations (approximately $1.6 million) during the period. The increase in cost of goods sold is consistent with anticipated cost increases associated with our efforts to improve the quality of food and other product offerings at the parks in 2012. Consistent with our nine- and three-month discussions above, operating expenses for the twelve-month period increased as a result of higher employment-related costs, higher maintenance and operating supply costs, and higher self-insurance expenses. The higher employment-related costs reflect normal merit increases, increases in health-related benefit costs, an overall increase in seasonal labor hours as a result of expanded operating hours at several parks, additional attractions and guest services, the overall effect of increased attendance, and non-recurring severance payments. Employment related costs also increased as result of the non-recurring payroll tax credit of $2.5 million recorded in the fourth quarter of 2010. The higher maintenance costs in the current-year twelve-month period relate primarily to the earlier timing of planned off-season projects, which was possible as a result of the mild early-season weather in 2012. The increase in operating supplies was driven by higher attendance and new initiatives to expand or enhance live entertainment at the parks, as well as incremental costs associated with our new e-commerce platform. The increase in public liability and workers compensation expense was the result of a claim settlement in the first quarter of 2012

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and increases in our reserves based on management's estimates of future claims. The higher SG&A costs reflect incremental costs associated with the launching of several new revenue initiatives for the 2012 season, including the new e-commerce platform, general park infrastructure improvements, and an increase in advertising expenses as we transitioned to a new advertising agency for 2012. These increases in SG&A costs were somewhat offset by a reduction in litigation expenses and costs for SEC compliance matters related to Special Meeting requests in 2011.

For the twelve-month period ended September 30, 2012, Adjusted EBITDA increased to $393.6 million compared with $366.4 million for the twelve months ended September 25, 2011, while our Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) increased slightly to 36.3% from 36.2% a year ago. A portion of this increase in Adjusted EBITDA was due to the extra week in the current fiscal twelve-month period. On a same-week basis, Adjusted EBITDA would have been up $23.4 million, or 6%, year over year, due to revenue growth driven by increased attendance and the strong 2011 fourth quarter operating performance. These gains were offset somewhat by incremental operating costs associated with the higher attendance and new operating initiatives for 2012. For the comparable twelve-month periods, our Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) would have increased 30 bps to 36.3% from 36.0% last year. For additional information regarding Adjusted EBITDA, including how we define Adjusted EBITDA, why we believe it provides useful information, and for a reconciliation to net income, see pages 33-34.
October 2012 -

Based on preliminary results through the end of October, revenues for the first ten months of the year increased approximately $37 million to $1,036 million from $999 million for the same period a year ago. The revenue increase is the result of a 4% increase in average in-park guest per capita spending to $42.00 and attendance levels that were comparable with last year's record results (22.7 million visits). Out-of-park revenues of approximately $108 million through October were also comparable with this time last year.

Liquidity and Capital Resources:
With respect to both liquidity and cash flow, we ended the thirdfirst quarter of 20122013 in sound condition. The negative working capital ratio (current assetsliabilities divided by current liabilities)assets) of 1.01.4 at September 30, 2012March 31, 2013 reflects the impact of our seasonal business. Cash, receivables and inventories are at normal seasonal levels and credit facilities are in place to fund current liabilities.

In July 2010, we issued $405 million of 9.125% senior unsecured notes, maturing in 2018, in a private placement, including $5.6 million of Original Issue Discount (OID) to yield 9.375%. Concurrently with this offering, we entered into a new $1,435 million credit agreement (the "2010 Credit Agreement"), which included a $1,175 million senior secured term loan facility and a $260 million senior secured revolving credit facility. The net proceeds from the offering of the notes, along with borrowings under the 2010 Credit Agreement, were used to repay in full all amounts outstanding under our previous credit facilities.

In February 2011, we amended the 2010 Credit Agreement (as so amended, the "Amended 2010 Credit Agreement") and extended the maturity date of the U.S. term loan portion of the credit facilities by one year. Under the Amended 2010 Credit Agreement, the extended U.S. term loan iswas scheduled to mature in December of 2017 and bearsbore interest at a rate of LIBOR plus 300 bps, with a LIBOR floor of 100 bps.
The Amended 2010 Credit Agreement also includesincluded a $260 million revolving credit facility. Under the agreement, the Canadian portion of the revolving credit facility has a limit of $15 million. U.S. denominated loans made under the revolving credit facility bear interest at a rate of LIBOR plus 400 bps (with no LIBOR floor). Canadian denominated loans made under the Canadian portion of the facility also bear interest at a rate of LIBOR plus 400 bps (with no LIBOR floor). The revolving credit facility, which matureswas scheduled to mature in July of 2015, also providesprovided for the issuance of documentary and standby letters of credit.

In May 2012, the Partnership prepaidMarch 2013,we issued $16500 million of long-term debt to meet its obligation5.25% senior unsecured notes, maturing in 2021, in a private placement, with no OID. Concurrently with this offering, we entered into a new $885 million credit agreement (the "2013 Credit Agreement"), which included a $630 million senior secured term loan facility and a $255 million senior secured revolving credit facility. The terms of the senior secured term loan facility include a maturity date of March 15, 2020 and an interest rate of LIBOR plus 250 bps with a LIBOR floor of 75 bps. The term loan amortizes at $6.3 million annually. The net proceeds from the notes and borrowings under the Excess Cash Flow ("ECF") provision2013 Credit Agreement were used to repay in full all amounts outstanding under the previous credit facilities. The facilities provided under the 2013 Credit Agreement are collateralized by substantially all of the assets of the Partnership.

Terms of the 2013 Credit Agreement. AsAgreement include a resultrevolving credit facility of this prepayment, as well as additional optional long-term debt prepayments made in August 2011 and September 2012a combined $255 million. Under the 2013 Credit Agreement, the Canadian portion of the revolving credit facility has a limit of $1815 million. U.S. denominated and Canadian denominated loans made under the revolving credit facility bear interest at a rate of LIBOR plus 225 bps (with no LIBOR floor). The revolving credit facility is scheduled to mature in March 2018 and also provides for the issuance of documentary and standby letters of credit. The 2013 Credit Agreement requires the Partnership to pay a commitment fee of $9 million50, respectively, bps per annum on the Company has no scheduled term-debt principal payments untilunused portion of the first quarter of 2015.credit facilities.
At the end of the quarter, we had a total of $1,131.1$630.0 million of variable-rate term debt (before giving consideration to fixed-rate interest rate swaps), $400.7$901.3 million of fixed-rate debt (including OID), no$96.0 million outstanding borrowings under our revolving

38

credit facility, and cash on hand of $96.1$10.0 million. After letters of credit, which totaled $16.5$16.4 million at September 30, 2012March 31, 2013, we had $243.5$142.6 million of available borrowings under the revolving credit facility under the Amended 20102013 Credit Agreement.

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Our $405 million of senior unsecured notes require semi-annual interest payments in February and August, with the principal due in full on August 1, 2018. The notes may be redeemed, in whole or in part, at any time prior to August 1, 2014 at a price equal to 100% of the principal amount of the notes redeemed plus a “make-whole” premium together with accrued and unpaid interest, if any, to the redemption date. Thereafter, the notes may be redeemed, in whole or in part, at various prices depending on the date redeemed. Prior to August 1, 2013, up to 35% of the notes may be redeemed with the net cash proceeds of certain equity offerings at 109.125%. Our $500 million of senior unsecured notes pay interest semi-annually in March and September, with the principal due in full on March 15, 2021. The notes may be redeemed, in whole or in part, at any time prior to March 15, 2016 at a price equal to 100% of the principal amount of the notes redeemed plus a “make-whole” premium together with accrued and unpaid interest, if any, to the redemption date. Thereafter, the notes may be redeemed, in whole or in part, at various prices depending on the date redeemed. Prior to March 15, 2016, up to 35% of the notes may be redeemed with the net cash proceeds of certain equity offerings at 105.25%.
In order to maintain fixed interest costs on a portion of our domestic term debt, in September 2010 we entered into several interest rateforward-starting swap agreements ("September 2010 swaps") to effectively convert a total of $600$600 million of variable-rate debt to fixed rates beginning in October 2011. As a result of the February 2011 amendment to our credit agreement,the 2010 Credit Agreement, the LIBOR floor on the term loan portion of ourits credit facilities decreased to 100 bps from 150 bps, causing a mismatch in critical terms of the September 2010 swaps and the underlying debt. Because of the mismatch of critical terms, we determined the September 2010 swaps, which were originally designated as cash flow hedges, were no longer highly effective, resulting in the de-designation of the September 2010 swaps as of the end of February 2011. As a result of this ineffectiveness, gains of $7.2 million recorded in AOCI through the date of de-designation are being amortized through December 2015.
In order to monetize the difference in the LIBOR floors, in March 2011, we entered into several additional forward-starting basis-rate swap agreements ("March 2011 swaps") that, when combined with the September 2010 swaps, effectively converted $600$600 million of variable-rate debt to fixed rates beginning in October 2011. The September 2010 swaps and the March 2011 swaps, were jointly designated as cash flow hedges, maturing in December 2015 and had fixed LIBOR at a weighted average rate of 2.46%. For the period that the September 2010 swaps were de-designated, their fair value decreased by $3.3 million, the offset of which have beenwas recognized as a direct charge to earnings and recorded to “Net effect of swaps” on the consolidated statement of operations along with the regular amortization of “Other comprehensive income (loss)” balances related to these swaps. No other ineffectiveness related to these swaps was recorded in any period presented.
In May 2011, we entered into four additional forward-starting basis-rate swap agreements ("May 2011 swaps") that effectively converted another $200 million of variable-rate debt to fixed rates beginning in October 2011. These swaps, which were designated as cash flow hedges, mature in December 2015 and fixed LIBOR at a weighted average rate of 2.54%.
As a result of the 2013 Credit Agreement, the previously described swaps were de-designated as the spreads of the 2013 Credit Agreement decreased to 75 bps from 100 bps in the Amended 2010 Credit Agreement. The May 2011 swaps remain de-designated as the amount of variable rate debt decreased to $630 million, and accordingly, the May 2011 swaps are now over hedged. On March 4, 2013, we entered into several forward-starting swap agreements ("March 2013 swaps") that were not designated as a cash flow hedge on that date. On March 6, 2013, the March 2013 swaps were combined with the September 2010 swaps and the March 2011 swaps, and designated as cash flow hedges, effectively converting $600 million of variable-rate debt to fixed rates. The September 2010 swaps, the March 2011 swaps, and the March 2013 swaps were jointly designated as cash flow hedges, mature in December 2015 and fix LIBOR at a weighted average rate of 2.46%.
In May 2011, we entered into four additional forward-starting basis-rate swap agreements ("May 2011 swaps") that effectively convert another $200 million of variable-rate debt to fixed rates beginning in October 2011. These swaps, which have been designated as cash flow hedges, mature in December 2015 and fix LIBOR at a weighted average rate of 2.54%2.331%. TheAt the time of the de-designation, the fair market value of all $800the September 2010 swaps, March 2011 swaps, and March 2013 swaps was $23.8 million, which will be amortized out of forward-starting swap agreements atAOCI into expense in "Net effect of swaps" in the unaudited condensed consolidated statements of operations and comprehensive incomethrough December 2015. At the time of the de-designation, the fair market value of the May 2011 swaps was $7.8 million and was immediately recognized into expense in "Net effect of swaps" in the unaudited condensed consolidated statements of operations.
At March 31, 2013, the fair market value of the September 30, 20122010 swaps, the March 2011 swaps and the March 2013 swaps was a liability of $34.723.4 million, which was recorded in "Derivative Liability"“Derivative Liability” on the condensed consolidated balance sheet. The May 2011 swaps had a fair market value of $7.6 million as of March 31, 2013 and was recorded in “Derivative Liability” on the condensed consolidated balance sheet.


39

The following table presents our September 2010 swaps, March 2011 swaps, and May 2011 swaps, and March 2013 swaps which became effective on October 1, 2011 and mature December 15, 2015, along with their notional amounts and their effective fixed interest rates.
($'s in thousands)Forward-Starting Interest Rate Swaps
 Notional Amounts LIBOR Rate
 $200,000
 2.40%
 75,000
 2.43%
 50,000
 2.42%
 150,000
 2.55%
 50,000
 2.42%
 50,000
 2.55%
 25,000
 2.43%
 50,000
 2.54%
 30,000
 2.54%
 70,000
 2.54%
 50,000
 2.54%
Total $'s / Average Rate$800,000
 2.48%
In 2006, we entered into several fixed-rate interest rate swap agreements totaling $1.0 billion. The weighted average fixed-LIBOR rate on these interest rate swaps, which matured on October 1, 2011, was 5.6%. Based upon our scheduled quarterly regression analysis testing of the effectiveness for the accounting treatment of these swaps, as well as changes in the forward interest rate yield curves used in that testing, the swaps were deemed to be ineffective beginning in October 2009 and continued to be deemed ineffective through their maturity. This resulted in the swaps not qualifying for hedge accounting during the fourth quarter of 2009 and through 2010 and the first three quarters of 2011.
In 2007, we entered into two cross-currency swap agreements, which matured in February 2012 and effectively converted $268.7 million of term debt at the time, and the associated interest payments, from U.S. dollar denominated debt at a rate of LIBOR plus

42

200 bps to 6.3% fixed-rate Canadian dollar denominated debt. As a result of paying down the underlying Canadian term debt with net proceeds from the sale of surplus land near Canada’s Wonderland in August 2009, the notional amounts of the underlying debt and the cross-currency swaps no longer matched. Because of the mismatch of the notional amounts, we determined the swaps were no longer highly effective going forward, resulting in the de-designation of the swaps as of the end of August 2009.
Based on the change in currency exchange rates from the time we originally entered into the cross-currency swap agreements in 2007, the termination liability of the swaps had increased steadily over time. In order to protect ourselves from further downside risk to the swaps' termination value, in May 2011 we entered into several foreign currency swap agreements to fix the exchange rate on 50% of the liability. In July 2011, we fixed the exchange rate on another 25% of the swap liability, leaving only 25% exposed to further fluctuations in currency exchange rates. In February 2012, these swap agreements were settled for $50.5 million.
In addition to other covenants and provisions, including those discussed below, the Amended 2010 Credit Agreement contains an initial three-year requirement (from July 2010) that at least 50% of our aggregate term debt and senior notes be subject to either a fixed interest rate or interest rate protection. As of September 30, 2012, we were in compliance with this requirement.
The following table presents fixed-rate swaps that matured on October 1, 2011. The table also presents our cross-currency swaps that matured on February 15, 2012 and their notional amounts and interest rates as of their maturity date.
($'s in thousands)Interest Rate Swaps Cross-currency Swaps
 Notional Amounts LIBOR Rate Notional Amounts Interest Rate
 $200,000
 5.64% $255,000
 7.31%
 200,000
 5.64% 150
 9.50%
 200,000
 5.64%    
 200,000
 5.57%    
 100,000
 5.60%    
 100,000
 5.60%    
Total $'s / Average Rate$1,000,000
 5.62% $255,150
 7.31%
        
 Interest Rate Swaps
($'s in thousands)Derivatives designated as hedging instruments Derivatives not designated as hedging instruments
 Notional Amounts LIBOR Rate Notional Amounts LIBOR Rate
 $200,000
 2.27% 50,000
 2.54%
 75,000
 2.30% 30,000
 2.54%
 50,000
 2.29% 70,000
 2.54%
 150,000
 2.43% 50,000
 2.54%
 50,000
 2.29%    
 50,000
 2.47%    
 25,000
 2.30%    
Total $'s / Average Rate$600,000
 2.33% $200,000
 2.54%

The Amended 20102013 Credit Agreement requires us to maintain specified financial ratios, which if breached for any reason, including a decline in operating results due to economic or weather conditions, could result in an event of default under the agreement. The most critical of these ratios is the Consolidated Leverage Ratio, which is measured on a trailing-twelve-month quarterly basis. At the end of the thirdfirst quarter of 2012,2013, this ratio was set at 6.00x6.25x consolidated total debt (excluding the revolving debt)-to-consolidated EBITDA. The ratio will remain at that level through the end of the first quarter in 2014 and will decrease each second quarter beginning in the second quarter of 2014. Based on our trailing-twelve-month results ending September 30, 2012March 31, 2013, our Consolidated Leverage Ratio was 3.89x, providing $138.3148.2 million of EBITDA cushion on the ratio at the end of the thirdfirst quarter. We were in compliance with all other covenants under the Amended 20102013 Credit Agreement as of September 30, 2012March 31, 2013.
The Amended 20102013 Credit Agreement allows restricted payments of up to $20$60 million annually so long as no default or event of default has occurred and is continuing. These restricted payments are not subject to any specific covenants. In 2012, additionalAdditional restricted payments are allowed to be made based on an excess-cash-flow formula, should our pro-forma Consolidated Leverage Ratio be less than or equal to 4.50x,5.0x, measured on a trailing-twelve-month quarterly basis.
At March 31, 2013, the notes maturing in 2018 have more restrictive covenants than the 2021 notes. The terms of the indenture governing our 2018 notes permit us to make restricted payments of $20 million annually. Our ability to make additional restricted payments in 20122013 and beyond is permitted should our trailing-twelve-month Total-Indebtedness-to-Consolidated-Cash-Flow Ratio be less than or equal to 4.75x, measured on a quarterly basis.
In accordance with these debt provisions, on August 9, 2012,February 27, 2013, we announced the declaration of a distribution of $0.40$0.625 per limited partner unit, which was paid on September 15, 2012,March 25, 2013, and on November 6, 2012,May 8, 2013 we announced the declaration of a distribution of $0.40$0.625 per limited partner unit, payable DecemberJune 17, 2012, which will bring our total distributions paid in 2012 to $1.60 per limited partner unit.2013.
Existing credit facilities and cash flows from operations are expected to be sufficient to meet working capital needs, debt service, partnership distributions and planned capital expenditures for the foreseeable future.




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Off Balance Sheet Arrangements:
We had $16.5$16.4 million in letters of credit, which are primarily in place to backstop insurance arrangements, outstanding on our revolving credit facility as of September 30, 2012March 31, 2013. We have no other significant off-balance sheet financing arrangements.


Forward Looking Statements
Some of the statements contained in this report (including the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section) that are not historical in nature are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements as to our expectations, beliefs and strategies regarding the future. These forward-looking statements may involve risks and uncertainties that are difficult to predict, may be beyond our control and could cause actual results to differ materially from those described in such statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can

40

give no assurance that such expectations will prove to be correct. Important factors, including those listed under Item 1A in the Company’s Annual Report on Form 10-K, could adversely affect our future financial performance and cause actual results to differ materially from our expectations.


ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to market risks from fluctuations in interest rates, and to a lesser extent on currency exchange rates on our operations in Canada and, from time to time, on imported rides and equipment. The objective of our financial risk management is to reduce the potential negative impact of interest rate and foreign currency exchange rate fluctuations to acceptable levels. We do not acquire market risk sensitive instruments for trading purposes.
We manage interest rate risk through the use of a combination of fixed-rate long-term debt, interest rate swaps that fix a portion of our variable-rate long-term debt, and variable-rate borrowings under our revolving credit facility. Translation exposures with regard to our Canadian operations are not hedged.
For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the change in fair value of the derivative instrument is reported as a component of “Other comprehensive income (loss)” and reclassified into earnings in the period during which the hedged transaction affects earnings. Changes in fair value of derivative instruments that do not qualify as effective hedging activities are reported as “Net effect of swaps” in the consolidated statement of operations. Additionally, the “Other comprehensive income (loss)” related to interest rate swaps that become ineffective is amortized over the remaining life of the interest rate swap, and reported as a component of “Net effect of swaps” in the consolidated statement of operations.
As of March 31, 2013, we had $901.3 million of fixed-rate senior unsecured notes and $630 million of variable-rate term debt. After considering the impact of interest rate swap agreements, approximately $1.2 billionvirtually all of our outstanding long-term debt represents fixed-rate debt and approximately $331.1 million represents variable-rate debt. Assuming an average balance on our revolving credit borrowings of approximately $61$50 million, a hypothetical 100 bps increase in 30-day LIBOR on our variable-rate debt, after the fixed-rate swap agreements, would lead to an increasea decrease of approximately $2.5$0.5 million in annual cash interest costs.
A uniform 10% strengthening of the U.S. dollar relative to the Canadian dollar would result in a $5.4$4.4 million decrease in annual operating income.

ITEM 4. CONTROLS AND PROCEDURES

(a)Evaluation of Disclosure Controls and Procedures - 
The Partnership maintains a system of controls and procedures designed to ensure that information required to be disclosed by the Partnership in its reports under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified by the Commission and that such information is accumulated and communicated to the Partnership’s management, including the Chief Executive Officer and the Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. As of September 30, 2012March 31, 2013, the PartnershipPartnership's management has evaluated the effectiveness of the design and operation of itsthe Partnership's disclosure controls and procedures under supervision of management, includingand with the participation of the Partnership's Chief Executive Officer and Chief Financial Officer. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Partnership's disclosure controls and procedures are effective.were effective as of March 31, 2013.
 






44


(b)Changes in Internal Control Over Financial Reporting -
As disclosed in Amendment No. 2 to the Partnership's Form 10-K/A for the fiscal year ended December 31, 2012, in connection with restating the Partnership's consolidated financial statements therein, management identified a material weakness in internal control over financial reporting related to the Partnership's fixed assets, resulting in a conclusion that the Partnership's internal control over financial reporting was not effective as of December 31, 2012. Remediation of this material weakness in internal control over financial reporting was accomplished through the conversion of all composite assets to the unit method of depreciation as of January 1, 2013. The conversion to the unit method eliminates the concept of normal vs. unusual as any and all asset retirements with a remaining net book value will be reflected in the Consolidated Statements of Operations and Comprehensive Income.
There were no other changes in the Partnership’s internal controlscontrol over financial reporting in connection with its 2012that occurred during the fiscal quarter ended thirdMarch 31, 2013-quarter evaluation, or subsequent to such evaluation, that have materially affected, or are reasonably likely to materially affect, the Partnership’s internal control over financial reporting.


41


PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Jacob T. Falfas vs. Cedar Fair, L.P.

On July 23, 2010, Jacob T. (Jack) Falfas, the former Chief Operating Officer, filed a demand for private arbitration as provided by his employment agreement. In that demand, Mr. Falfas disputed the Partnership's position that he had resigned in June 2010, alleging instead that his employment with the Partnership was terminated without cause. That dispute went to private arbitration, and on February 28, 2011, an arbitration panel ruled 2-to-1 in favor of Mr. Falfas finding that he did not resign but was terminated without cause. Rather than fashioning a remedy consistent with the employment agreement, the panel ruled that Mr. Falfas should be reinstated. The Partnership believed that the arbitrators exceeded their authority by creating a remedy not legally available to Mr. Falfas under his contract with Cedar Fair. On March 21, 2011, the Partnership filed an action  in Erie County Court of Common Pleas (Case No. 2011 CV 0217) seeking  to have the award modified or vacated. On March 22, 2011, Mr. Falfas commenced a related action in the Erie County Court of Common Pleas  (Case No. 2011 CV 0218) demanding enforcement of the arbitration ruling.  The two actions were combined into Case No. 2011 CV 0217, before Judge Roger E. Binette. On February 22, 2012 the Erie County Common Pleas Court issued a ruling partially vacating the arbitration award and declaring that Mr. Falfas was not entitled to reinstatement of his employment.  The ruling also provided that in accord with paragraph 2 of the arbitration award Mr. Falfas was entitled to certain back pay and other benefits under his 2007 Amended and Restated Employment Agreement as if the employment relationship had not been severed. In March of 2012 Mr. Falfas and the Company both filed appeals of the Court's ruling with the Ohio Sixth District Court of Appeals in Toledo, Ohio. The parties participated in mediation on May 7, 2012 at the direction ofOn April 19, 2013 the Court of Appeals.Appeals issued a ruling reversing the Erie County Common Pleas Court's  order regarding the reinstatement of Mr. Falfas' employment and  affirming the order regarding back pay and other benefits and remanding the case back to the Erie County Common Pleas Court for further proceedings.  The mediation did not result inCompany has until June 3, 2013 to file a settlement. As a resultnotice of appeal with the matter will now proceed through the normal appeal process which typically takes six to nine months to complete. Briefs have been filed and the parties are awaiting scheduling of oral argument.Ohio Supreme Court.  The Partnership believes the liability recorded as of September 30, 2012March 31, 2013 to be adequate and does not expect the arbitration ruling or the court order to materially affect its financial results in future periods.


ITEM 1A. RISK FACTORS
There have been no material changes to the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2011.2012.

ITEM 5. OTHER INFORMATION

TheOn May 8, 2013, the Partnership usesannounced that it had identified a historical classification error in the Partnership's initial determination of whether a specific asset retired under the composite method of depreciation methodwas normal or unusual. The error resulted in the overstatement of Income before taxes of $8.8 million for the groupperiod ended December 31, 2011.

Under the composite method of depreciation, no gain or loss is recognized on normal retirements of composite assets. Instead the net book value after salvage of a retired asset reduces accumulated depreciation for the composite group. Abnormal or unusual retirements of composite assets acquiredwould result in the recognition of a gain or loss. The error resulted in the Partnership's application of its qualitative policy used to determine whether an asset retirement is normal or unusual. The asset retirement being restated was originally classified as normal, thus reducing accumulated depreciation. Management identified that the Partnership had failed to consider whether the specific asset had a whole in 1983,substantial net book value and/or if the retirement caused a deviation from the estimated composite depreciation survivor curve as well as for groupsother minor qualitative issues.

The restatement amount of assets$8.8 million is recorded in each subsequent business acquisition. Upon the normalLoss on impairment / retirement of an asset within a composite group, the Partnership's practice generally has been to extend the depreciable life of that composite group beyond its original estimated useful life. In conjunction with the preparation of the Partnership's financial statements for the interim period ended July 1, 2012, management determined that this methodology was not appropriate. As a result, the Partnership revised the useful lives of its composite groups to their original estimated useful life (ascribed upon acquisition) and corrected previously computed depreciation expense (and accumulated depreciation). Management evaluated the amount and nature of these adjustments and concluded that they were not material to either the Partnership's prior annual or quarterly financial statements. Nonetheless, the historical financial statement amounts included in this filing have been corrected for this error. The Partnership expects to likewise correct previously presented historical financial statements to be included in future filings, including the annual financial statements to be includedfixed assets, net in the Partnership's Annual Report on Form 10-K for10-K/A filing to correct the year ending December 31, 2012.previous error.

ForAs disclosed in the year ended December 31, 2011Partnership's prior filings, the correctionPartnership had determined that it was preferable to change from the composite method of depreciation to the unit method of depreciation with the change effective January 1, 2013. The Partnership believes that pursuant to generally accepted accounting principles, changing from the composite method of depreciation to the unit method of depreciation is a change in accounting estimate that is effected by a change in accounting principle, which should be accounted for prospectively. The change to the unit method of depreciation eliminates the qualitative judgment needed to determine whether an asset retirement is normal or unusual, as the net book value of all retirements will decrease net income (loss) by $1.4 millionbe recorded in the Consolidated Statements of Operations and the provision (benefit) for taxes will decrease by $0.6 million.  For the 2010 annual financial statements, the correction will decrease net income (loss) by $1.5 million and the provision (benefit) for taxes will decrease by $0.6 million.  For the 2009 annual financial statements, the correction will decrease net income (loss) by $1.2 million and the provision (benefit) for taxes will decrease $0.4 million.  The balance sheet as of December 31, 2011 has already been corrected in this Form 10-Q.Comprehensive Income.



4542


ITEM 6. EXHIBITS
 
Exhibit (4.1)
Rights Agreement between Cedar Fair, L.P. and American Stock Transfer and Trust Co., LLC, dated April 5, 2010. Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on April 6, 2010.

Exhibit (4.2)
Indenture, by and among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and The Bank of New York Mellon, as trustee, dated as of July 29, 2010 (including form of 9.125% Senior Notes due 2018). Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (4.3)
Registration Rights Agreement, among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and J.P. Morgan Securities Inc., as representative of the initial purchasers named therein, dated July 29, 2010. Incorporated herein by reference to Exhibit 4.2 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (10.1)Cedar Fair, L.P. Amended and Restated Executive Severance Plan dated July 18, 2007. Incorporated herein by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q (File No. 001-09444) filed on August 3, 2007.
Exhibit (31.1)  Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (31.2)  Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (32)  Certifications Pursuant to 18 U.S.C. 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
  
Exhibit (101)  The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012March 31, 2013 formatted in Extensible Business Reporting Language (XBRL): (i) The Condensed Consolidated Statements of Income, (ii) the Condensed Consolidated Balance Sheets, (iii) The Condensed Consolidated Statements of Cash Flow, (iv) the Condensed Consolidated Statement of Equity and, (v) related notes
 

4643

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
  CEDAR FAIR, L.P. 
  (Registrant) 
    
  By Cedar Fair Management, Inc. 
  General Partner 
   
Date:November 7, 2012May 10, 2013/s/ Matthew A. Ouimet
  Matthew A. Ouimet
  President and Chief Executive Officer
    
Date:November 7, 2012May 10, 2013/s/ Brian C. Witherow
  Brian C. Witherow
  Executive Vice President and
  Chief Financial Officer

 

4744

INDEX TO EXHIBITS
 
Exhibit (4.1)
Rights Agreement between Cedar Fair, L.P. and American Stock Transfer and Trust Co., LLC, dated April 5, 2010. Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on April 6, 2010.

Exhibit (4.2)
Indenture, by and among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and The Bank of New York Mellon, as trustee, dated as of July 29, 2010 (including form of 9.125% Senior Notes due 2018). Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (4.3)
Registration Rights Agreement, among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and J.P. Morgan Securities Inc., as representative of the initial purchasers named therein, dated July 29, 2010. Incorporated herein by reference to Exhibit 4.2 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (10.1)Cedar Fair, L.P. Amended and Restated Executive Severance Plan dated July 18, 2007. Incorporated herein by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q (File No. 001-09444) filed on August 3, 2007.
Exhibit (31.1)  Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (31.2)  Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (32)  Certifications Pursuant to 18 U.S.C. 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
  
Exhibit (101)  The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012March 31, 2013 formatted in Extensible Business Reporting Language (XBRL): (i) The Condensed Consolidated Statements of Income, (ii) the Condensed Consolidated Balance Sheets, (iii) The Condensed Consolidated Statements of Cash Flow, (iv) the Condensed Consolidated Statement of Equity and, (v) related notes
 

4845
s / Average Rate		$800,000
 2.48%$600,000
 2.33% $200,000
 2.54%
 
The following table presents our fixed-rate swaps, which matured in October 2011, and the cross-currency swap which matured in February 2012, along with their notional amounts and their fixed interest rates:
($'s in thousands)Interest Rate Swaps Cross-currency Swaps
 Notional Amounts LIBOR Rate Notional Amounts Implied Interest Rate
 $200,000
 5.64% $255,000
 7.31%
 200,000
 5.64% 150
 9.50%
 200,000
 5.64%    
 200,000
 5.57%    
 100,000
 5.60%    
 100,000
 5.60%    
Total $'s / Average Rate$1,000,000
 5.62% $255,150
 7.31%
        



12

Effects of Derivative Instruments on Income (Loss) and Other Comprehensive Income (Loss) for the three-month periods ended September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012:
 
(In thousands): Amount of Gain (Loss) Recognized in  Accumulated OCI on Derivatives (Effective Portion) 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
Derivatives designated as
Cash Flow Hedging
Relationships
 Three months ended Three months ended   Three months ended Three months ended   Three months ended Three months ended
 9/30/12 9/25/11   9/30/12 9/25/11   9/30/12 9/25/11
Interest rate swaps $438
 $(17,085) Interest Expense $(2,990) $—
 Net effect of swaps $—
 $15,396
                 
(In thousands): Amount of Gain (Loss) Recognized in  Accumulated OCI on Derivatives (Effective Portion) 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
Derivatives designated as
Cash Flow Hedging
Relationships
 Three months ended Three months ended   Three months ended Three months ended   Three months ended Three months ended
 3/31/13 3/25/12   3/31/13 3/25/12   3/31/13 3/25/12
Interest rate swaps $2,266
 $120
 Interest Expense $(2,797) $(2,793) Net effect of swaps $435
 $—
                 

13

(In thousands): 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
Derivatives not designated as Cash Flow
Hedging Relationships
   Three months ended Three months ended
   9/30/12 9/25/11
Cross-currency swaps (1)
 Net effect of swaps $—
 $13,622
Foreign currency swaps 
 Net effect of swaps —
 (13,210)
    $—
 $412
       
(In thousands): 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
Derivatives not designated as Cash Flow
Hedging Relationships
   Three months ended Three months ended
   3/31/13 3/25/12
Cross-currency swaps (1)
 Net effect of swaps $—
 $(4,999)
Foreign currency swaps 
 Net effect of swaps —
 6,278
Interest rate swaps (2)
 Net effect of swaps (1,471) —
    $(1,471) $1,279
       
(1)The cross-currency swaps became ineffective and were de-designated in August 2009.
(2)The May 2011 interest rate swaps were de-designated in March 2013.
During the quarter ended September 30, 2012March 31, 2013, in addition to the $1.0 million loss recognized in income on the ineffective portion of derivatives and on the derivatives not designated as cash flow hedges (as noted in the tables above), $0.27.8 million of incomeexpense related to the write off of OCI balances on our May 2011 swaps and $0.4 million of expense representing the regular amortization of amounts in AOCI was recorded in the condensed consolidated statements of operations for the quarter. The effect of this amortizationthese amounts resulted in a benefitcharge to earnings of $0.29.2 million recorded in “Net effect of swaps.”

For the three-month period ended SeptemberMarch 25, 20112012, in addition to the $15.81.3 million gain recognized in income on the ineffective portion of derivatives noted in the tabletables above, $11.20.5 million of expense representing the amortization of amounts in AOCI for the swaps and $0.60.2 million of foreign currency lossgain in the quarter related to the U.S. dollar denominated Canadian term loan were recorded in “Net effect of swaps” in the condensed consolidated statements of operations. The net effect of these amounts resulted in a benefit to earnings of $4.0 million recorded in “Net effect of swaps.”

Effects of Derivative Instruments on Income (Loss) and Other Comprehensive Income (Loss) for the nine-month periods ended September 30, 2012 and September 25, 2011: 
(In thousands): Amount of Gain (Loss) Recognized in  Accumulated OCI on Derivatives (Effective Portion) 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
Derivatives designated as
Cash Flow Hedging
Relationships
 Nine months ended Nine months ended   Nine months ended Nine months ended   Nine months ended Nine months ended
 9/30/12 9/25/11   9/30/12 9/25/11   9/30/12 9/25/11
Interest rate swaps $(2,308) $(36,788) Interest Expense $(9,004) $—
 Net effect of swaps $—
 $43,190
                 

13


(In thousands): 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
Derivatives not designated as Cash Flow
Hedging Relationships
   Nine months ended Nine months ended
   9/30/12 9/25/11
Interest rate swaps (1)
 Net effect of swaps $—
 $(3,342)
Cross-currency swaps (2)
 Net effect of swaps (4,999) 15,582
Foreign currency swaps 
 Net effect of swaps 6,278
 (17,516)
    $1,279
 $(5,276)
       
(1)The September 2010 swaps became ineffective and were de-designated in February 2011.
(2)The cross-currency swaps became ineffective and were de-designated in August 2009.
For the nine-month period ended September 30, 2012, in addition to the $1.3 million of net gain recognized in income on the ineffective portion of derivatives and on the derivatives not designated as cash flow hedges (as noted in the tables above), $0.2 million of expense representing the regular amortization of amounts in AOCI for the swaps and $0.2 million of foreign currency gain in the period related to the U.S. dollar denominated Canadian term loan were recorded in the condensed consolidated statements of operations for the period. The net effect of these amounts resulted in a benefit to earnings for the period of $1.3 million recorded in “Net effect of swaps.”

For the nine-month period ended September 25, 2011, in addition to the $37.9 million gain recognized in income on the ineffective portion of derivatives noted in the table above, $33.9 million of expense representing the amortization of amounts in AOCI for the swaps and $0.5 million of foreign currency loss in the period related to the U.S. dollar denominated Canadian term loan were recorded in “Net effect of swaps” in the condensed consolidated statements of operations. The net effect of these amounts resulted in a benefit to earnings of $3.51.0 million recorded in “Net effect of swaps.”


Effects of Derivative Instruments on Income (Loss) and Other Comprehensive Income (Loss) for the twelve-month periods ended September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012:
(In thousands): 
Amount of Gain (Loss)
Recognized in Accumulated OCI on Derivatives
(Effective Portion)
 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
Derivatives designated as
Cash Flow Hedging
Relationships
 Twelve months ended Twelve months ended   Twelve months ended Twelve months ended   Twelve months ended Twelve months ended
 9/30/12 9/25/11   9/30/12 9/25/11   9/30/12 9/25/11
Interest rate swaps $(873) $(26,329) Interest Expense $(12,027) $—
 Net effect of swaps $4,797
 $54,613
                 
(In thousands): 
Amount of Gain (Loss)
Recognized in Accumulated OCI on Derivatives
(Effective Portion)
 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
Derivatives designated as
Cash Flow Hedging
Relationships
 Twelve months ended Twelve months ended   Twelve months ended Twelve months ended   Twelve months ended Twelve months ended
 3/31/13 3/25/12   3/31/13 3/25/12   3/31/13 3/25/12
Interest rate swaps $2,286
 $(36,088) Interest Expense $(12,031) $(5,816) Net effect of swaps $435
 $33,493
                 

(In thousands): 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
Derivatives not designated as Cash Flow Hedging
Relationships
   Twelve months ended Twelve months ended
   9/30/12 9/25/11
Interest rate swaps (1)
 Net effect of swaps $—
 $(3,342)
Cross-currency swaps (2)
 Net effect of swaps (4,483) 10,016
Foreign currency swaps Net effect of swaps 10,129
 (17,516)
    $5,646
 $(10,842)
       
(In thousands): 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
Derivatives not designated as Cash Flow Hedging
Relationships
   Twelve months ended Twelve months ended
   3/31/13 3/25/12
Cross-currency swaps (1)
 Net effect of swaps —
 12,911
Foreign currency swaps Net effect of swaps —
 (7,387)
Interest rate swaps (2)
 Net effect of swaps $(1,471) $—
    $(1,471) $5,524
       
(1)The September 2010 swaps became ineffective and were de-designated in February 2011.
(2)The cross-currency swaps became ineffective and were de-designated in August 2009.
(2)The May 2011 interest rate swaps were de-designated in March 2013.
In addition to the $10.41.0 million of gainloss recognized in income on the ineffective portion of derivatives and on the derivatives not designated as cash flow hedges (as noted in the tables above), $0.17.8 million of expense related to the write off of OCI balances on our May 2011 swaps and $192 thousand of income representing the amortization of amounts in AOCI for the swaps was recorded during the trailing twelve months ended March 31, 2013 in the condensed consolidated statements of operations. The net effect of these amounts resulted in expense for the trailing twelve month period of $8.7 million recorded in “Net effect of swaps.”

14

For the twelve month period ending March 25, 2012, in addition to the $39.0 million of gain recognized in income on the ineffective portion of derivatives noted in the tables above, $22.7 million of expense representing the amortization of amounts in AOCI for the swaps and a $0.40.3 million foreign currency gainloss in the twelve month period related to the U.S. dollar denominated Canadian term loan was recorded during the trailing twelve months ended September 30,March 25, 2012 in the condensed consolidated statements of operations. The net effect of these amounts resulted in a benefit to earnings for the trailing twelve month period of $10.9 million recorded in “Net effect of swaps.”
For the twelve month period ending September 25, 2011, in addition to the $43.8 million of gain recognized in income on the ineffective portion of derivatives noted in the table above, $45.5 million of expense representing the amortization of amounts in AOCI for the swaps and a $0.1 million foreign currency loss in the twelve month period related to the U.S. dollar denominated Canadian term loan was recorded during the trailing twelve months ended September 25, 2011 in the condensed consolidated statements of operations. The net effect of these amounts resulted in a charge to earnings for the trailing twelve month period of $1.816.0 million recorded in “Net effect of swaps.”
The amounts reclassified from AOCI into income for the periods noted above are in large partprimarily the result of the Partnership’s initial three-year requirement to swap at least 75% of its aggregate term debt to fixed rates under the terms of the Amended 2010 Credit Agreement.
 
(7) Fair Value Measurements:
The FASB Accounting Standards Codification (ASC) relating to fair value measurements emphasizes that fair value is a market-based measurement that should be determined based on assumptions (inputs) that market participants would use in pricing an asset or liability. Inputs may be observable or unobservable, and valuation techniques used to measure fair value should maximize the use of relevant observable inputs and minimize the use of unobservable inputs. Accordingly, the FASB’s ASC establishes a hierarchal disclosure framework that ranks the quality and reliability of information used to determine fair values. The hierarchy is associated with the level of pricing observability utilized in measuring fair value and defines three levels of inputs to the fair value measurement process—quoted prices are the most reliable valuation inputs, whereas model values that include inputs based on unobservable data are the least reliable. Each fair value measurement must be assigned to a level corresponding to the lowest level input that is significant to the fair value measurement in its entirety.
The three broad levels of inputs defined by the fair value hierarchy are as follows:
 
Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
 
Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
 
Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement.
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

















15

The table below presents the balances of assets and liabilities measured at fair value as of September 30, 2012March 31, 2013, December 31, 2011,2012, and SeptemberMarch 25, 20112012 on a recurring basis:
  Total Level 1 Level 2 Level 3
September 30, 2012        
(In thousands)        
Interest rate swap agreements (1)
 $(34,708) $—
 $(34,708) $—
Net derivative liability $(34,708) $—
 $(34,708) $—
         
December 31, 2011        
Interest rate swap agreements (1)
 $(32,400) $—
 $(32,400) $—
Cross-currency swap agreements (2)
 (37,617) —
 (37,617) —
Foreign currency swap agreements (2)
 (13,155) —
 (13,155) —
Net derivative liability $(83,172) $—
 $(83,172) $—
         
September 25, 2011        
Interest rate swap agreements (1)
 $(33,835) $—
 $(33,835) $—
Interest rate swap agreements (2)
 (4,797) —
 (4,797) —
Cross-currency swap agreements (2)
 (37,723) —
 (37,723) —
Foreign currency swap agreements (2)
 (16,846) —
 (16,846) —
Net derivative liability $(93,201) $—
 $(93,201) $—
  Total Level 1 Level 2 Level 3
March 31, 2013        
(In thousands)        
Interest rate swap agreements (1)
 $(23,388) $—
 $(23,388) $—
Interest rate swap agreements (2)
 (7,643) —
 (7,643) —
Net derivative liability $(31,031) $—
 $(31,031) $—
         
December 31, 2012        
Interest rate swap agreements (1)
 $(32,260) $—
 $(32,260) $—
Net derivative liability $(32,260) $—
 $(32,260) $—
         
March 25, 2012        
Interest rate swap agreements (1)
 $(32,280) $—
 $(32,280) $—
Net derivative liability $(32,280) $—
 $(32,280) $—
(1)IncludedDesignated as cash flow hedges and are included in “Derivative Liability” on the Unaudited Condensed Consolidated Balance Sheet
(2)IncludedNot designated as cash flow hedges and are included in "Current derivative liability""Derivative Liability" on the Unaudited Condensed Consolidated Balance Sheet
Fair values of the interest rate cross-currency and foreign currency swap agreements are determined using significant inputs, including the LIBOR and foreign currency forward curves, that are considered Level 2 observable market inputs. In addition, the Partnership considered the effect of its credit and non-performance risk on the fair values provided, and recognized an adjustment decreasing the net derivative liability by approximately $1.10.9 million as of September 30, 2012March 31, 2013.
There were no assets measured at fair value on a non-recurring basis at September 30, 2012March 31, 2013, December 31, 2011, or SeptemberMarch 25, 20112012, except for as described below.
At the end of the third quarter in 2012, the Partnership concluded based on operating results, as well as updated forecasts, and changes in market conditions, that a review of the carrying value of long-lived assets at Wildwater Kingdom was warranted. After performing its review, the Partnership determined that a portion of the park's fixed assets were impaired. Based on Level 3 unobservable valuation assumptions and other market inputs, the assets were marked to a fair value of $19.8 million, resulting in an impairment charge of $25.0 million during the quarter.
In 2010, the Partnership concluded based on operating results, as well as updated forecasts, that a review of the carrying value of long-lived assets at California's Great America was warranted. After performing its review, the Partnership determined that a portion of the park's fixed assets, the majority of which were originally recorded with the PPI acquisition, were impaired. As a result, it recognized $62.0 million of fixed-asset impairment during the fourth quarter of 2010.

After completing its 2010 annual review of indefinite-lived intangibles for impairment, the Partnership concluded that a portion of trade-names originally recorded with the PPI acquisition were impaired. As a result, the Partnership recognized approximately $0.9 million of trade-name impairment during the fourth quarter of 2010. A relief-from-royalty model is used to determine whether the fair value of trade-names exceeds their carrying amount. The fair value of the trade-names is determined as the present value of fees avoided by owning the respective trade-name.
The fair value of term debt at September 30, 2012March 31, 2013 was approximately $1,125.7637.1 million based on borrowing rates currently available to the Partnership on long-term debt with similar terms and average maturities. The fair value of the Partnership's notes at September 30, 2012March 31, 2013 was approximately $352.6950.1 million based on borrowing rates availablepublic trading levels as of that date to the Partnership on notes with similar terms and maturities.date. The fair value of the term debt was based on Level 2 inputs and the notes were based on Level 21 inputs.





16

(8) Earnings per Unit:
Net income (loss) per limited partner unit is calculated based on the following unit amounts:
  Three months ended Nine months ended Twelve months ended
  9/30/2012 9/25/2011 9/30/2012 9/25/2011 9/30/2012 9/25/2011
  (In thousands except per unit amounts)
Basic weighted average units outstanding 55,611
 55,346
 55,473
 55,345
 55,440
 55,342
Effect of dilutive units:            
Unit options and restricted unit awards 45
 —
 42
 —
 31
 —
Phantom units 336
 482
 333
 502
 416
 544
Diluted weighted average units outstanding 55,992
 55,828
 55,848
 55,847
 55,887
 55,886
Net income (loss) per unit - basic $2.53
 $2.75
 $2.01
 $1.29
 $2.00
 $0.15
Net income (loss) per unit - diluted $2.51
 $2.73
 $2.00
 $1.28
 $1.98
 $0.15
             
  Three months ended Twelve months ended
  3/31/2013 3/25/2012 3/31/2013 3/25/2012
  (In thousands except per unit amounts)
Basic weighted average units outstanding 55,854
 55,378
 55,694
 55,353
Effect of dilutive units:        
Unit options and restricted unit awards —
 —
 63
 2
Phantom units —
 —
 299
 492
Diluted weighted average units outstanding 55,854
 55,378
 56,056
 55,847
Net income (loss) per unit - basic $(1.95) $(1.18) $1.04
 $1.53
Net income (loss) per unit - diluted $(1.95) $(1.18) $1.04
 $1.52
         
The effect of unit options on the three nine and twelve months ended September 30,March 31, 2013, had they not been out of the money or antidilutive, would have been zero and 16,000 units, respectively. The effect of out-of-the-money and/or antidilutive unit options on the three and twelve months ended March 25, 2012, had they not been out of the money or antidilutive, would have been 66,0002,000, 34,000and 36,000 units, respectively. The effect of out-of-the-money and/or antidilutive unit options on the three, nine and twelve months ended September 25, 2011, had they not been out of the money or antidilutive, would have been 57,000, 67,000 and 127,00047,000 units, respectively.
 
(9) Income and Partnership Taxes:
Under the applicable accounting rules, income taxes are recognized for the amount of taxes payable by the Partnership’s corporate subsidiaries for the current year and for the impact of deferred tax assets and liabilities, which represent future tax consequences of events that have been recognized differently in the financial statements than for tax purposes. The income tax provision (benefit) for interim periods is determined by applying an estimated annual effective tax rate to the quarterly income (loss) of the Partnership’s corporate subsidiaries. For 2012, the estimated annual effective rate includes the effect of an anticipated adjustment to the valuation allowance that relates to foreign tax credit carry-forwards arising from the corporate subsidiaries. The amount of this adjustment has a disproportionate impact on the annual effective tax rate that results in a significant variation in the customary relationship between the provision for taxes and income before taxes in interim periods. In addition to income taxes on its corporate subsidiaries, the Partnership pays a publicly traded partnership tax (PTP tax) on partnership-level gross income (net revenues less cost of food, merchandise and games). As such, the Partnership’s total provision (benefit) for taxes includes amounts for both the PTP tax and for income taxes on its corporate subsidiaries.
During the second quarterAs of 2012 the Partnership adjusted its deferred tax assets and liabilities to reflect the impact of changes to the enacted statutory tax rates in Canada and recorded a corresponding $1.8 million income tax provision.  During the first quarter of 20122013 the Partnership accruedhas recorded $1.01.1 million forof unrecognized tax benefits including interest and/or penalties related to state and local tax filing positions. The Partnership recognizes interest and/or penalties related to unrecognized tax benefits in the income tax provision. The Partnership does not anticipate that the balance of the unrecognized tax benefit will change significantly over the next 12 months.

(10) Contingencies:

The Partnership is a party to a number of lawsuits arising in the normal course of business. In the opinion of management, none of these matters is expected to have a material effect in the aggregate on the Partnership's financial statements.

(11) Immaterial Restatement:

We have made two separate corrections relating to our use of the composite depreciation method.

The Partnership usesfirst correction, which impacts the Balance Sheet at March 25, 2012 and the Statement of Operations and Other Comprehensive Income for the 3 and 12 month periods ended March 25, 2012, related to a misapplication of the composite depreciation method for the group of assets acquired as a whole in 1983, as well as for groups of assets in each subsequent business acquisition.method. Upon the normal retirement of an asset within a composite group, the Partnership'sour practice generally hashad been to extend the depreciable life of that composite group beyond its original estimated useful life. In conjunction with the preparation of the Partnership'sour financial statements for the three months ended July 1,in 2012, management determined that this methodology was not appropriate. As a result, the Partnershipwe revised the useful lives of itsour composite groups to their original estimated useful life (ascribed upon acquisition) and corrected previously computed depreciation expense (and accumulated depreciation). Management evaluated

The second correction, which impacts the amountBalance Sheet at March 25, 2012 and naturethe Statement of these adjustmentsOperations and concludedOther Comprehensive Income for the 12 month period ended March 25, 2012, reflects a subsequent determination that they werea disposition from our composite group of assets was considered to be unusual. In certain situations under the composite method, disposals are considered unusual and, accordingly, losses are not materialincluded in the composite depreciation pool but are rather charged immediately to eitherexpense. In 2013, the Partnership's prior annual or quarterly financial statements. Nonetheless,initial determination of whether a specific asset retired under the historical financial statement amounts includedcomposite method of depreciation in this filing have been corrected for this error. The Partnership expects to likewise correct previously presented2011 was normal was reviewed in connection with responding

17

historical financial statements to an open SEC comment letter. We ultimately concluded that such disposition was unusual and that a $8.8 millioncharge should be included in future filings, including the annual financial statements to be includedreflected in the Partnership's Annual Report on Form 10-K for the year ending December 31, 2012.2011 financial statements.

The tables below detailreflect the effectsimpact on the financial statements of such depreciation adjustments (including the related deferred income tax impact)corrections as described above. The "As originally filed" amounts represent amounts as filed in the Partnership's 1st quarter 2012 Form 10-Q . The "As restated" amounts in all columns represent amounts after restatement for the first correction which was disclosed in the Partnership's 2nd quarter Form 10-Q and the second correction which was disclosed in the Partnership's 2012 Annual Report on previously presented historical financial statement amounts:Form 10-K/A filed on May 10, 2013.


Balance Sheets   
 12/31/2011 9/25/2011
Accumulated depreciation   
As originally filed$(1,044,589) $(1,044,353)
Correction(18,599) (18,252)
As restated$(1,063,188) $(1,062,605)
Total assets   
As originally filed$2,074,557
 $2,159,339
Correction(18,599) (18,252)
As restated$2,055,958
 $2,141,087
Deferred Tax Liability   
As originally filed$135,446
 $125,588
Correction(1,679) (1,615)
As restated$133,767
 $123,973
Limited Partners' Equity   
As originally filed$182,438
 $221,611
Correction(16,920) (16,637)
As restated$165,518
 $204,974
Balance Sheet 
(In thousands)3/25/2012
Accumulated depreciation 
As originally filed$(1,046,162)
Corrections(27,622)
As restated$(1,073,784)
Total assets 
As originally filed$2,113,126
Corrections(27,622)
As restated$2,085,504
Deferred Tax Liability 
As originally filed$135,746
Corrections(5,019)
As restated$130,727
Limited Partners' Equity 
As originally filed$96,417
Corrections(22,603)
As restated$73,814








18

Statements of Operations and Other Comprehensive Income
  Three months ended Nine months ended Twelve months ended
  9/25/2011 9/25/2011 9/25/2011
Depreciation and amortization      
As originally filed $62,619
 $109,173
 $124,345
Correction 829
 1,684
 2,037
As restated $63,448
 $110,857
 $126,382
Income (loss) before tax      
As originally filed $190,891
 $95,031
 $(2,271)
Correction (829) (1,684) (2,037)
As restated $190,062
 $93,347
 $(4,308)
Provision (benefit) for taxes    
As originally filed $38,161
 $22,327
 $(11,808)
Correction (317) (554) (616)
As restated $37,844
 $21,773
 $(12,424)
Net income (loss)    
As originally filed $152,730
 $72,704
 $9,537
Correction (512) (1,130) (1,421)
As restated $152,218
 $71,574
 $8,116
       
Basic earnings per limited partner unit:    
As originally filed $2.76
 $1.31
 $0.17
Correction (0.01) (0.02) (0.02)
As restated $2.75
 $1.29
 $0.15
       
Diluted earnings per limited partner unit:    
As originally filed $2.74
 $1.30
 $0.17
Correction (0.01) (0.02) (0.02)
As restated $2.73
 $1.28
 $0.15
Statements of Operations and Other Comprehensive Income
(In thousands except per unit amounts) Three months ended Twelve months ended
  3/25/2012 3/25/2012
Depreciation and amortization    
As originally filed $3,846
 $123,861
Corrections 233
 2,031
As restated $4,079
 $125,892
Loss on impairment / retirement of fixed assets, net    
As originally filed $92
 $2,461
Corrections —
 8,790
As restated $92
 $11,251
Income (loss) before tax    
As originally filed $(86,721) $101,565
Corrections (233) (10,821)
As restated $(86,954) $90,744
Provision (benefit) for taxes  
As originally filed $(21,539) $9,897
Corrections —
 (3,960)
As restated $(21,539) $5,937
Net income (loss)  
As originally filed $(65,182) $91,668
Corrections (233) (6,861)
As restated $(65,415) $84,807
     
Basic earnings per limited partner unit:  
As originally filed $(1.18) $1.66
Corrections —
 (0.13)
As restated $(1.18) $1.53
     
Diluted earnings per limited partner unit:  
As originally filed $(1.18) $1.64
Corrections —
 (0.12)
As restated $(1.18) $1.52


(12) Changes in Accumulated Other Comprehensive Income by Component:

(12)The following tables reflect the changes in Accumulated other comprehensive income (loss) related to limited partners' equity for the period ended March 31, 2013:



19

 
Changes in Accumulated Other Comprehensive Income by Component (1)
(In thousands)       
   Gains and    
   Losses on Foreign  
   Cash Flow Currency  
   Hedges Items Total
Balance at December 31, 2012 $(25,749) $(2,751) $(28,500)
        
 Other comprehensive      
 income before      
 reclassifications 1,940
 301
 301
        
 Amounts reclassified      
 from accumulated      
 other comprehensive      
 
income (2)
 6,945
 —
 8,885
        
Net current-period other      
comprehensive income 8,885
 301
 9,186
        
March 31, 2013 $(16,864) $(2,450) $(19,314)

(1) All amounts are net of tax. Amounts in parentheses indicate debits.
(2) See Reclassifications Out of Accumulated Other Comprehensive Income table below for reclassification details.

Reclassifications Out of Accumulated Other Comprehensive Income (1)
(In thousands)       
Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement Where Net Income is Presented
Gains and losses on cash flow hedges      
 Interest rate contracts $8,174
  Net effect of swaps
   $8,174
  Total before tax
   (1,229)  Provision (benefit) for taxes
   $6,945
  Net of tax

(1) Amounts in parentheses indicate debits.

(13) Consolidating Financial Information of Guarantors and Issuers:

Cedar Fair, L.P., Canada's Wonderland Company ("Cedar Canada"), and Magnum Management Corporation ("Magnum") are the co-issuers of the Partnership's 9.125% notes and the 5.25% notes (see Note 5). The notes have been fully and unconditionally guaranteed, on a joint and several basis, by each 100% owned subsidiary of Cedar Fair (other than Cedar Canada and Magnum) that guarantees the Partnership's senior secured credit facilities. There are no non-guarantor subsidiaries.

The following consolidating schedules present condensed financial information for Cedar Fair, L.P., Cedar Canada, and Magnum, the co-issuers, and each 100% owned subsidiary of Cedar Fair (other than Cedar Canada and Magnum), the guarantors (on a combined basis), as of September 30, 2012March 31, 2013, December 31, 2011,2012, and SeptemberMarch 25, 20112012 and for the three nine and twelve month periods ended

20

September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012. In lieu of providing separate unaudited financial statements for the guarantor subsidiaries, we have included the accompanying condensed consolidating financial statements.

Since Cedar Fair, L.P., Cedar Canada and Magnum are co-issuers of the notes and co-borrowers under the Amended 20102013 Credit Agreement, all outstanding debt has been equally reflected within each co-issuer's September 30, 2012March 31, 2013, December 31, 20112012 and SeptemberMarch 25, 20112012 balance sheets in the accompanying condensed consolidating financial statements.

The consolidating financial information has been corrected for the information described in Note 11.12.
  

19

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
September 30, 2012
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $43,000
 $2,263
 $40,278
 $10,561
 $—
 $96,102
Receivables 3
 108,211
 64,153
 478,372
 (621,382) 29,357
Inventories —
 1,584
 2,742
 29,267
 —
 33,593
Current deferred tax asset —
 6,239
 772
 3,334
 —
 10,345
Income tax refundable —
 —
 10,454
 —
 —
 10,454
Other current assets 929
 2,065
 674
 3,775
 —
 7,443
  43,932
 120,362
 119,073
 525,309
 (621,382) 187,294
Property and Equipment (net) 425,747
 1,025
 272,951
 864,121
 —
 1,563,844
Investment in Park 577,612
 791,617
 118,514
 63,384
 (1,551,127) —
Goodwill 9,061
 —
 127,384
 111,218
 —
 247,663
Other Intangibles, net —
 —
 18,039
 22,826
 —
 40,865
Deferred Tax Asset —
 39,320
 —
 —
 (39,320) —
Intercompany Receivable 877,208
 1,069,721
 1,116,623
 —
 (3,063,552) —
Other Assets 23,361
 15,580
 8,925
 2,305
 —
 50,171
  $1,956,921
 $2,037,625
 $1,781,509
 $1,589,163
 $(5,275,381) $2,089,837
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Accounts payable $210,936
 $116,160
 $29,248
 $287,634
 $(621,382) $22,596
Deferred revenue —
 —
 4,544
 30,138
 —
 34,682
Accrued interest 735
 195
 6,082
 —
 —
 7,012
Accrued taxes 5,818
 42,090
 —
 4,496
 —
 52,404
Accrued salaries, wages and benefits —
 24,864
 2,365
 8,990
 —
 36,219
Self-insurance reserves —
 4,751
 1,698
 16,643
 —
 23,092
Other accrued liabilities 824
 4,097
 2,417
 3,505
 —
 10,843
  218,313
 192,157
 46,354
 351,406
 (621,382) 186,848
Deferred Tax Liability —
 —
 59,462
 122,952
 (39,320) 143,094
Derivative Liability 20,801
 13,907
 —
 —
 —
 34,708
Other Liabilities —
 3,880
 —
 3,500
 —
 7,380
Long-Term Debt:            
Term debt 1,131,100
 1,131,100
 1,131,100
 —
 (2,262,200) 1,131,100
Notes 400,676
 400,676
 400,676
 —
 (801,352) 400,676
  1,531,776
 1,531,776
 1,531,776
 —
 (3,063,552) 1,531,776
             
Equity 186,031
 295,905
 143,917
 1,111,305
 (1,551,127) 186,031
  $1,956,921
 $2,037,625
 $1,781,509
 $1,589,163
 $(5,275,381) $2,089,837


20

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
December 31, 2011
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $—
 $512
 $31,540
 $3,472
 $—
 $35,524
Receivables —
 62,408
 69,285
 412,095
 (536,177) 7,611
Inventories —
 1,547
 2,703
 28,819
 —
 33,069
Current deferred tax asset —
 6,239
 772
 3,334
 —
 10,345
Other current assets 508
 13,461
 1,027
 7,822
 (10,852) 11,966
  508
 84,167
 105,327
 455,542
 (547,029) 98,515
Property and Equipment (net) 455,579
 1,044
 266,111
 896,758
 —
 1,619,492
Investment in Park 518,819
 661,251
 118,385
 40,481
 (1,338,936) —
Intercompany Note Receivable —
 93,845
 —
 —
 (93,845) —
Goodwill 9,061
 —
 123,210
 111,219
 —
 243,490
Other Intangibles, net —
 —
 17,448
 22,825
 —
 40,273
Deferred Tax Asset —
 47,646
 —
 —
 (47,646) —
Intercompany Receivable 887,344
 1,084,112
 1,141,302
 —
 (3,112,758) —
Other Assets 27,641
 16,158
 9,353
 1,036
 —
 54,188
  $1,898,952
 $1,988,223
 $1,781,136
 $1,527,861
 $(5,140,214) $2,055,958
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Current maturities of long-term debt $15,921
 $15,921
 $15,921
 $—
 $(31,842) $15,921
Accounts payable 175,968
 144,868
 25,631
 202,566
 (536,177) 12,856
Deferred revenue —
 —
 2,891
 26,703
 —
 29,594
Accrued interest 198
 131
 15,433
 —
 —
 15,762
Accrued taxes 3,909
 —
 7,374
 15,577
 (10,852) 16,008
Accrued salaries, wages and benefits —
 26,916
 1,076
 5,396
 —
 33,388
Self-insurance reserves —
 3,977
 1,711
 15,555
 —
 21,243
Current derivative liability —
 —
 50,772
 —
 —
 50,772
Other accrued liabilities 1,247
 5,568
 252
 832
 —
 7,899
  197,243
 197,381
 121,061
 266,629
 (578,871) 203,443
Deferred Tax Liability —
 —
 58,463
 122,950
 (47,646) 133,767
Derivative Liability 19,451
 12,949
 —
 —
 —
 32,400
Other Liabilities —
 4,090
 —
 —
 —
 4,090
Intercompany Note Payable —
 —
 —
 93,845
 (93,845) —
Long-Term Debt:            
Term debt 1,140,179
 1,140,179
 1,140,179
 —
 (2,280,358) 1,140,179
Notes 400,279
 400,279
 400,279
 —
 (800,558) 400,279
  1,540,458
 1,540,458
 1,540,458
 —
 (3,080,916) 1,540,458
             
Equity 141,800
 233,345
 61,154
 1,044,437
 (1,338,936) 141,800
  $1,898,952
 $1,988,223
 $1,781,136
 $1,527,861
 $(5,140,214) $2,055,958

21

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
September 25, 2011March 31, 2013
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $49,000
 $2,489
 $36,473
 $8,350
 $—
 $96,312
Receivables 3
 45,663
 81,773
 587,910
 (676,810) 38,539
Inventories —
 1,684
 2,951
 32,311
 —
 36,946
Current deferred tax asset —
 1,686
 779
 3,409
 —
 5,874
Other current assets 875
 2,091
 774
 5,559
 —
 9,299
  49,878
 53,613
 122,750
 637,539
 (676,810) 186,970
Property and Equipment (net) 455,663
 1,055
 257,802
 900,759
 —
 1,615,279
Investment in Park 534,400
 681,893
 118,514
 53,988
 (1,388,795) —
Intercompany Note Receivable —
 269,500
 —
 —
 (269,500) —
Goodwill 9,061
 —
 121,869
 111,219
 —
 242,149
Other Intangibles, net —
 —
 17,258
 22,809
 —
 40,067
Deferred Tax Asset —
 49,845
 —
 —
 (49,845) —
Intercompany Receivable 887,219
 1,083,987
 1,141,302
 —
 (3,112,508) —
Other Assets 28,962
 16,884
 9,616
 1,160
 —
 56,622
  $1,965,183
 $2,156,777
 $1,789,111
 $1,727,474
 $(5,497,458) $2,141,087
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Accounts payable $189,887
 $281,605
 $27,488
 $206,288
 $(676,810) $28,458
Deferred revenue —
 —
 3,701
 28,993
 —
 32,694
Accrued interest 6,115
 1,364
 6,489
 —
 —
 13,968
Accrued taxes 5,189
 23,550
 —
 4,354
 —
 33,093
Accrued salaries, wages and benefits —
 29,373
 2,341
 9,395
 —
 41,109
Self-insurance reserves —
 3,130
 1,658
 17,154
 —
 21,942
Current derivative liability 4,797
 —
 54,569
 —
 —
 59,366
Other accrued liabilities 1,206
 4,840
 1,277
 4,924
 —
 12,247
  207,194
 343,862
 97,523
 271,108
 (676,810) 242,877
Deferred Tax Liability —
 —
 61,405
 112,413
 (49,845) 123,973
Derivative Liability 20,459
 13,376
 —
 —
 —
 33,835
Other Liabilities —
 2,872
 —
 —
 —
 2,872
Intercompany Note Payable —
 —
 —
 269,500
 (269,500) —
Long-Term Debt:            
Term debt 1,156,100
 1,156,100
 1,156,100
 —
 (2,312,200) 1,156,100
Notes 400,154
 400,154
 400,154
 —
 (800,308) 400,154
  1,556,254
 1,556,254
 1,556,254
 —
 (3,112,508) 1,556,254
             
Equity 181,276
 240,413
 73,929
 1,074,453
 (1,388,795) 181,276
  $1,965,183
 $2,156,777
 $1,789,111
 $1,727,474
 $(5,497,458) $2,141,087
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $—
 $732
 $4,125
 $5,181
 $—
 $10,038
Receivables 682
 79,472
 67,302
 436,595
 (570,709) 13,342
Inventories —
 3,645
 3,032
 32,386
 —
 39,063
Current deferred tax asset —
 31,543
 816
 3,663
 —
 36,022
Other current assets 207
 9,630
 1,618
 16,260
 —
 27,715
  889
 125,022
 76,893
 494,085
 (570,709) 126,180
Property and Equipment (net) 457,484
 1,003
 262,941
 849,424
 —
 1,570,852
Investment in Park 419,501
 714,013
 115,401
 21,689
 (1,270,604) —
Goodwill 9,061
 —
 123,374
 111,218
 —
 243,653
Other Intangibles, net —
 —
 17,470
 22,853
 —
 40,323
Deferred Tax Asset —
 34,890
 —
 90
 (34,980) —
Intercompany Receivable 877,336
 1,165,652
 1,211,522
 —
 (3,254,510) —
Other Assets 14,581
 10,291
 7,473
 2,303
 —
 34,648
  $1,778,852
 $2,050,871
 $1,815,074
 $1,501,662
 $(5,130,803) $2,015,656
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Current maturities of long-term debt $6,300
 $6,300
 $6,300
 $—
 $(12,600) $6,300
Accounts payable 103,654
 215,425
 3,891
 285,182
 (570,709) 37,443
Deferred revenue —
 —
 6,679
 59,505
 —
 66,184
Accrued interest 1,444
 916
 5,979
 —
 —
 8,339
Accrued taxes 4,790
 390
 331
 3,489
 —
 9,000
Accrued salaries, wages and benefits —
 13,483
 1,095
 5,604
 —
 20,182
Self-insurance reserves —
 5,324
 1,696
 16,537
 —
 23,557
Other accrued liabilities 589
 5,161
 133
 1,984
 —
 7,867
  116,777
 246,999
 26,104
 372,301
 (583,309) 178,872
Deferred Tax Liability —
 —
 62,700
 126,867
 (34,980) 154,587
Derivative Liability 18,594
 12,437
 —
 —
 —
 31,031
Other Liabilities —
 4,185
 —
 3,500
 —
 7,685
Long-Term Debt:            
Revolving credit loans 96,000
 96,000
 96,000
 —
 (192,000) 96,000
Term debt 623,700
 623,700
 623,700
 —
 (1,247,400) 623,700
Notes 901,255
 901,255
 901,255
 —
 (1,802,510) 901,255
  1,620,955
 1,620,955
 1,620,955
 —
 (3,241,910) 1,620,955
             
Equity 22,526
 166,295
 105,315
 998,994
 (1,270,604) 22,526
  $1,778,852
 $2,050,871
 $1,815,074
 $1,501,662
 $(5,130,803) $2,015,656


22

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOMEBALANCE SHEET
For the Three Months Ended September 30,December 31, 2012
 (As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $79,663
 $141,134
 $88,334
 $464,902
 $(220,588) $553,445
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 6,447
 40,906
 —
 47,353
Operating expenses 1,368
 74,191
 18,736
 289,604
 (220,588) 163,311
Selling, general and administrative 1,853
 32,627
 4,822
 13,691
 —
 52,993
Depreciation and amortization 19,209
 10
 9,430
 32,098
 —
 60,747
Loss on impairment / retirement of fixed assets, net 25,000
 —
 —
 —
 —
 25,000
  47,430
 106,828
 39,435
 376,299
 (220,588) 349,404
Operating income 32,233
 34,306
 48,899
 88,603
 —
 204,041
Interest expense (income), net 12,213
 7,258
 9,897
 (2,518) —
 26,850
Net effect of swaps (104) (71) —
 —
 —
 (175)
Unrealized / realized foreign currency gain —
 —
 (15,035) —
 —
 (15,035)
Other (income) expense 186
 (2,043) 512
 1,345
 —
 —
Income from investment in affiliates (125,311) (79,600) (11,138) (45,137) 261,186
 —
Income before taxes 145,249
 108,762
 64,663
 134,913
 (261,186) 192,401
Provision for taxes 4,561
 9,777
 17,181
 20,194
 —
 51,713
Net income $140,688
 $98,985
 $47,482
 $114,719
 $(261,186) $140,688
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment (563) —
 (563) —
 563
 (563)
Unrealized income (loss) on cash flow hedging derivatives (234) 48
 —
 —
 (48) (234)
Other comprehensive income (loss), (net of tax) (797) 48
 (563) —
 515
 (797)
Total Comprehensive Income $139,891
 $99,033
 $46,919
 $114,719
 $(260,671) $139,891


  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $25,000
 $444
 $50,173
 $3,213
 $—
 $78,830
Receivables 4
 101,093
 71,099
 498,555
 (652,559) 18,192
Inventories —
 1,724
 2,352
 23,764
 —
 27,840
Current deferred tax asset —
 3,705
 816
 3,663
 —
 8,184
Other current assets 563
 17,858
 530
 5,490
 (16,381) 8,060
  25,567
 124,824
 124,970
 534,685
 (668,940) 141,106
Property and Equipment (net) 439,506
 1,013
 268,157
 835,596
 —
 1,544,272
Investment in Park 485,136
 772,183
 115,401
 53,790
 (1,426,510) —
Goodwill 9,061
 —
 125,942
 111,218
 —
 246,221
Other Intangibles, net —
 —
 17,835
 22,817
 —
 40,652
Deferred Tax Asset —
 36,443
 —
 90
 (36,533) —
Intercompany Receivable 877,612
 1,070,125
 1,116,623
 —
 (3,064,360) —
Other Assets 22,048
 14,832
 8,419
 2,315
 —
 47,614
  $1,858,930
 $2,019,420
 $1,777,347
 $1,560,511
 $(5,196,343) $2,019,865
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Accounts payable $147,264
 $213,279
 $16,101
 $286,649
 $(652,559) $10,734
Deferred revenue —
 —
 4,996
 34,489
 —
 39,485
Accrued interest 98
 64
 15,350
 —
 —
 15,512
Accrued taxes 4,518
 —
 6,239
 23,437
 (16,381) 17,813
Accrued salaries, wages and benefits —
 17,932
 1,214
 5,690
 —
 24,836
Self-insurance reserves —
 5,528
 1,754
 16,624
 —
 23,906
Other accrued liabilities 1,110
 2,502
 140
 2,164
 —
 5,916
  152,990
 239,305
 45,794
 369,053
 (668,940) 138,202
Deferred Tax Liability —
 —
 63,460
 126,865
 (36,533) 153,792
Derivative Liability 19,309
 12,951
 —
 —
 —
 32,260
Other Liabilities —
 5,480
 —
 3,500
 —
 8,980
Long-Term Debt:            
Term debt 1,131,100
 1,131,100
 1,131,100
 —
 (2,262,200) 1,131,100
Notes 401,080
 401,080
 401,080
 —
 (802,160) 401,080
  1,532,180
 1,532,180
 1,532,180
 —
 (3,064,360) 1,532,180
             
Equity 154,451
 229,504
 135,913
 1,061,093
 (1,426,510) 154,451
  $1,858,930
 $2,019,420
 $1,777,347
 $1,560,511
 $(5,196,343) $2,019,865

23

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOMEBALANCE SHEET
For the Three Months Ended March 25, 2012September 25, 2011
(As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $82,713
 $147,138
 $84,679
 $487,352
 $(229,614) $572,268
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 6,659
 42,099
 —
 48,758
Operating expenses 1,257
 69,119
 19,397
 301,293
 (229,614) 161,452
Selling, general and administrative 1,297
 30,460
 5,064
 15,157
 —
 51,978
Depreciation and amortization 20,354
 11
 9,564
 33,519
 —
 63,448
Loss on impairment / retirement of fixed assets, net 827
 —
 10
 43
 —
 880
  23,735
 99,590
 40,694
 392,111
 (229,614) 326,516
Operating income 58,978
 47,548
 43,985
 95,241
 —
 245,752
Interest expense, net 23,948
 3,085
 13,433
 855
 —
 41,321
Net effect of swaps (4,112) (192) 342
 —
 —
 (3,962)
Unrealized / realized foreign currency loss —
 —
 18,549
 —
 —
 18,549
Other (income) expense (30) (1,711) 616
 907
 —
 (218)
Income from investment in affiliates (117,557) (57,557) (8,410) (15,579) 199,103
 —
Income before taxes 156,729
 103,923
 19,455
 109,058
 (199,103) 190,062
Provision for taxes 4,511
 12,445
 3,103
 17,785
 —
 37,844
Net income $152,218
 $91,478
 $16,352
 $91,273
 $(199,103) $152,218
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment 2,842
 —
 2,842
 —
 (2,842) 2,842
Unrealized income on cash flow hedging derivatives (3,224) (4,646) 72
 —
 4,574
 (3,224)
Other comprehensive income (loss), (net of tax) (382) (4,646) 2,914
 —
 1,732
 (382)
Total Comprehensive Income $151,836
 $86,832
 $19,266
 $91,273
 $(197,371) $151,836





  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $—
 $397
 $119
 $6,803
 $—
 $7,319
Receivables —
 82,892
 59,911
 370,246
 (506,356) 6,693
Inventories —
 3,321
 3,678
 37,487
 —
 44,486
Current deferred tax asset —
 11,014
 772
 3,334
 —
 15,120
Other current assets 359
 5,907
 11,851
 12,293
 —
 30,410
  359
 103,531
 76,331
 430,163
 (506,356) 104,028
Property and Equipment (net) 464,394
 1,035
 279,255
 896,184
 —
 1,640,868
Investment in Park 459,339
 661,166
 115,401
 25,758
 (1,261,664) —
Intercompany Note Receivable —
 104,165
 —
 —
 (104,165) —
Goodwill 9,061
 —
 125,528
 111,219
 —
 245,808
Other Intangibles, net —
 —
 17,776
 22,831
 —
 40,607
Deferred Tax Asset —
 47,646
 —
 —
 (47,646) —
Intercompany Receivable 889,442
 1,239,210
 1,294,302
 —
 (3,422,954) —
Other Assets 26,323
 16,288
 9,608
 1,974
 —
 54,193
  $1,848,918
 $2,173,041
 $1,918,201
 $1,488,129
 $(5,342,785) $2,085,504
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Current maturities of long-term debt $15,921
 $15,921
 $15,921
 $—
 $(31,842) $15,921
Accounts payable 60,297
 232,001
 26,302
 215,968
 (506,356) 28,212
Deferred revenue —
 —
 5,413
 45,341
 —
 50,754
Accrued interest 3,089
 1,706
 5,519
 —
 —
 10,314
Accrued taxes 4,925
 340
 261
 3,294
 —
 8,820
Accrued salaries, wages and benefits —
 26,989
 781
 5,792
 —
 33,562
Self-insurance reserves —
 4,212
 1,716
 15,826
 —
 21,754
Other accrued liabilities 462
 3,312
 226
 2,104
 —
 6,104
  84,694
 284,481
 56,139
 288,325
 (538,198) 175,441
Deferred Tax Liability —
 —
 58,762
 119,611
 (47,646) 130,727
Derivative Liability 19,403
 12,877
 —
 —
 —
 32,280
Other Liabilities —
 2,235
 —
 —
 —
 2,235
Intercompany Note Payable —
 —
 —
 104,165
 (104,165) —
Long-Term Debt:            
Revolving credit loans 155,004
 155,004
 155,004
 —
 (310,008) 155,004
Term debt 1,140,179
 1,140,179
 1,140,179
 —
 (2,280,358) 1,140,179
Notes 400,373
 400,373
 400,373
 —
 (800,746) 400,373
  1,695,556
 1,695,556
 1,695,556
 —
 (3,391,112) 1,695,556
             
Equity 49,265
 177,892
 107,744
 976,028
 (1,261,664) 49,265
  $1,848,918
 $2,173,041
 $1,918,201
 $1,488,129
 $(5,342,785) $2,085,504


24

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the NineThree Months Ended September 30, 2012March 31, 2013
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $124,864
 $221,221
 $130,441
 $808,471
 $(345,748) $939,249
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 9,988
 73,938
 —
 83,926
Operating expenses 4,141
 147,211
 40,328
 534,900
 (345,748) 380,832
Selling, general and administrative 4,841
 70,848
 9,877
 29,922
 —
 115,488
Depreciation and amortization 33,436
 28
 16,415
 63,277
 —
 113,156
Loss on impairment / retirement of fixed assets, net 24,221
 —
 9
 —
 —
 24,230
  66,639
 218,087
 76,617
 702,037
 (345,748) 717,632
Operating income 58,225
 3,134
 53,824
 106,434
 —
 221,617
Interest expense (income), net 36,438
 21,957
 30,898
 (5,422) —
 83,871
Net effect of swaps (35) 192
 (1,475) —
 —
 (1,318)
Unrealized / realized foreign currency gain —
 —
 (13,926) —
 —
 (13,926)
Other (income) expense 561
 (7,119) 1,221
 5,337
 —
 —
Income from investment in affiliates (99,035) (72,862) (14,505) (38,160) 224,562
 —
Income before taxes 120,296
 60,966
 51,611
 144,679
 (224,562) 152,990
Provision (benefit) for taxes 8,701
 (3,771) 13,525
 22,940
 —
 41,395
Net income $111,595
 $64,737
 $38,086
 $121,739
 $(224,562) $111,595
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment (1,251) —
 (1,251) —
 1,251
 (1,251)
Unrealized income (loss) on cash flow hedging derivatives (1,798) (629) 21
 —
 608
 (1,798)
Other comprehensive income (loss), (net of tax) (3,049) (629) (1,230) —
 1,859
 (3,049)
Total Comprehensive Income $108,546
 $64,108
 $36,856
 $121,739
 $(222,703) $108,546
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $4,317
 $8,371
 $289
 $41,510
 $(12,688) $41,799
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 —
 5,037
 —
 5,037
Operating expenses 1,423
 21,606
 5,941
 60,375
 (12,688) 76,657
Selling, general and administrative 1,292
 16,613
 711
 2,423
 —
 21,039
Depreciation and amortization 475
 9
 —
 4,302
 —
 4,786
Loss on impairment / retirement of fixed assets, net 36
 —
 478
 86
 —
 600
  3,226
 38,228
 7,130
 72,223
 (12,688) 108,119
Operating income (loss) 1,091
 (29,857) (6,841) (30,713) —
 (66,320)
Interest expense (income), net 10,512
 7,677
 9,764
 (2,230) —
 25,723
Net effect of swaps 5,635
 3,576
 —
 —
 —
 9,211
Loss on early debt extinguishment 21,175
 12,781
 617
 —
 —
 34,573
Unrealized / realized foreign currency loss —
 —
 8,958
 —
 —
 8,958
Other (income) expense 188
 (2,388) 800
 1,400
 —
 —
Loss from investment in affiliates 72,096
 35,640
 3,520
 21,227
 (132,483) —
Loss before taxes (108,515) (87,143) (30,500) (51,110) 132,483
 (144,785)
Provision (benefit) for taxes 611
 (17,665) (9,254) (9,351) —
 (35,659)
Net loss $(109,126) $(69,478) $(21,246) $(41,759) $132,483
 $(109,126)
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment 301
 —
 301
 —
 (301) 301
Unrealized income on cash flow hedging derivatives 8,885
 2,535
 —
 —
 (2,535) 8,885
Other comprehensive income, (net of tax) 9,186
 2,535
 301
 —
 (2,836) 9,186
Total Comprehensive Loss $(99,940) $(66,943) $(20,945) $(41,759) $129,647
 $(99,940)



25

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the NineThree Months Ended SeptemberMarch 25, 20112012
(As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $118,280
 $210,407
 $115,163
 $768,126
 $(328,349) $883,627
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 9,389
 70,592
 —
 79,981
Operating expenses 4,180
 131,955
 38,959
 504,813
 (328,349) 351,558
Selling, general and administrative 8,049
 64,226
 9,541
 28,310
 —
 110,126
Depreciation and amortization 33,021
 34
 15,440
 62,362
 —
 110,857
Loss on impairment / retirement of fixed assets, net 1,023
 —
 10
 43
 —
 1,076
  46,273
 196,215
 73,339
 666,120
 (328,349) 653,598
Operating income 72,007
 14,192
 41,824
 102,006
 —
 230,029
Interest expense, net 70,822
 8,395
 39,129
 6,184
 —
 124,530
Net effect of swaps (7,230) 910
 2,813
 —
 —
 (3,507)
Unrealized / realized foreign currency loss —
 —
 14,704
 —
 —
 14,704
Other (income) expense 1,517
 (4,712) 2,072
 2,078
 —
 955
(Income) loss from investment in affiliates (71,656) (34,663) (12,389) 107
 118,601
 —
Income (loss) before taxes 78,554
 44,262
 (4,505) 93,637
 (118,601) 93,347
Provision (benefit) for taxes 6,980
 2,527
 (4,446) 16,712
 —
 21,773
Net income (loss) $71,574
 $41,735
 $(59) $76,925
 $(118,601) $71,574
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment 2,354
 —
 2,354
 —
 (2,354) 2,354
Unrealized income on cash flow hedging derivatives 2,366
 (9,866) 79
 —
 9,787
 2,366
Other comprehensive income (loss), (net of tax) 4,720
 (9,866) 2,433
 —
 7,433
 4,720
Total Comprehensive Income $76,294
 $31,869
 $2,374
 $76,925
 $(111,168) $76,294

  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $1,456
 $2,577
 $266
 $27,932
 $(4,033) $28,198
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 —
 4,087
 —
 4,087
Operating expenses 1,335
 20,436
 5,657
 47,890
 (4,033) 71,285
Selling, general and administrative 1,332
 13,696
 760
 2,196
 —
 17,984
Depreciation and amortization 696
 9
 —
 3,374
 —
 4,079
Loss on impairment / retirement of fixed assets, net 82
 —
 10
 —
 —
 92
  3,445
 34,141
 6,427
 57,547
 (4,033) 97,527
Operating loss (1,989) (31,564) (6,161) (29,615) —
 (69,329)
Interest expense, net 11,158
 6,615
 10,403
 (1,389) —
 26,787
Net effect of swaps 173
 332
 (1,475) —
 —
 (970)
Unrealized / realized foreign currency gain —
 —
 (8,192) —
 —
 (8,192)
Other (income) expense 187
 (3,035) 197
 2,651
 —
 —
Loss from investment in affiliates 50,491
 23,083
 3,230
 24,916
 (101,720) —
Loss before taxes (63,998) (58,559) (10,324) (55,793) 101,720
 (86,954)
Provision (benefit) for taxes 1,417
 (11,672) (2,334) (8,950) —
 (21,539)
Net loss $(65,415) $(46,887) $(7,990) $(46,843) $101,720
 $(65,415)
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment (1,169) —
 (1,169) —
 1,169
 (1,169)
Unrealized income on cash flow hedging derivatives 339
 98
 21
 —
 (119) 339
Other comprehensive income (loss), (net of tax) (830) 98
 (1,148) —
 1,050
 (830)
Total Comprehensive Loss $(66,245) $(46,789) $(9,138) $(46,843) $102,770
 $(66,245)

























26



CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
For the Twelve Months Ended September 30, 2012March 31, 2013
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $147,733
 $261,878
 $142,250
 $941,465
 $(409,232) $1,084,094
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 10,531
 85,471
 —
 96,002
Operating expenses 5,452
 180,665
 47,134
 636,106
 (409,232) 460,125
Selling, general and administrative 6,865
 90,892
 11,650
 36,381
 —
 145,788
Depreciation and amortization 37,698
 41
 18,300
 72,097
 —
 128,136
(Gain) loss on impairment / retirement of fixed assets, net 24,188
 —
 (62) 1,593
 —
 25,719
  74,203
 271,598
 87,553
 831,648
 (409,232) 855,770
Operating income (loss) 73,530
 (9,720) 54,697
 109,817
 —
 228,324
Interest (income) expense, net 50,007
 28,592
 44,583
 (6,813) —
 116,369
Net effect of swaps (5,019) (1) (5,910) —
 —
 (10,930)
Unrealized / realized foreign currency gain —
 —
 (18,721) —
 —
 (18,721)
Other (income) expense 749
 (10,205) 1,498
 7,958
 —
 —
Income from investment in affiliates (93,080) (55,557) (12,698) (24,955) 186,290
 —
Income before taxes 120,873
 27,451
 45,945
 133,627
 (186,290) 141,606
Provision (benefit) for taxes 10,106
 (29,298) 20,942
 29,089
 —
 30,839
Net income $110,767
 $56,749
 $25,003
 $104,538
 $(186,290) $110,767
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment (2,672) —
 (2,672) —
 2,672
 (2,672)
Unrealized income (loss) on cash flow hedging derivatives (397) (109) 21
 —
 88
 (397)
Other comprehensive income (loss), (net of tax) (3,069) (109) (2,651) —
 2,760
 (3,069)
Total Comprehensive Income $107,698
 $56,640
 $22,352
 $104,538
 $(183,530) $107,698
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $148,576
 $263,930
 $140,441
 $941,246
 $(412,138) $1,082,055
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 10,316
 85,682
 —
 95,998
Operating expenses 5,468
 177,526
 48,147
 637,772
 (412,138) 456,775
Selling, general and administrative 6,455
 89,532
 11,086
 34,293
 —
 141,366
Depreciation and amortization 37,439
 40
 18,199
 71,335
 —
 127,013
(Gain) on sale of other assets —
 —
 —
 (6,625) —
 (6,625)
Loss on impairment / retirement of fixed assets, net 25,089
 —
 474
 5,281
 —
 30,844
  74,451
 267,098
 88,222
 827,738
 (412,138) 845,371
Operating income (loss) 74,125
 (3,168) 52,219
 113,508
 —
 236,684
Interest (income) expense, net 47,879
 30,390
 40,231
 (9,013) —
 109,487
Net effect of swaps 5,324
 3,365
 —
 —
 —
 8,689
Loss on early debt extinguishment 21,175
 12,781
 617
 —
 —
 34,573
Unrealized / realized foreign currency loss —
 —
 8,152
 —
 —
 8,152
Other (income) expense 750
 (8,860) 2,623
 5,487
 —
 —
Income from investment in affiliates (68,417) (53,593) (14,307) (18,503) 154,820
 —
Income before taxes 67,414
 12,749
 14,903
 135,537
 (154,820) 75,783
Provision (benefit) for taxes 9,269
 (15,849) (3,507) 27,725
 —
 17,638
Net income $58,145
 $28,598
 $18,410
 $107,812
 $(154,820) $58,145
Other comprehensive income, (net of tax):            
Cumulative foreign currency translation adjustment 1,839
 —
 1,839
 —
 (1,839) 1,839
Unrealized income on cash flow hedging derivatives 8,685
 2,551
 —
 —
 (2,551) 8,685
Other comprehensive income (loss), (net of tax) 10,524
 2,551
 1,839
 —
 (4,390) 10,524
Total Comprehensive Income $68,669
 $31,149
 $20,249
 $107,812
 $(159,210) $68,669



27

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the Twelve Months Ended SeptemberMarch 25, 20112012 (As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $138,907
 $247,595
 $126,355
 $886,578
 $(386,119) $1,013,316
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 9,850
 80,928
 —
 90,778
Operating expenses 5,725
 163,754
 45,814
 597,781
 (386,119) 426,955
Selling, general and administrative 9,755
 79,492
 11,347
 32,598
 —
 133,192
Depreciation and amortization 37,168
 95
 17,188
 71,931
 —
 126,382
Loss on impairment of goodwill and other intangibles —
 —
 —
 903
 —
 903
Loss on impairment / retirement of fixed assets, net 1,456
 —
 10
 62,043
 —
 63,509
  54,104
 243,341
 84,209
 846,184
 (386,119) 841,719
Operating income 84,803
 4,254
 42,146
 40,394
 —
 171,597
Interest expense, net 99,205
 14,877
 52,411
 4,362
 —
 170,855
Net effect of swaps (7,183) 910
 8,045
 —
 —
 1,772
Unrealized / realized foreign currency loss —
 —
 2,323
 —
 —
 2,323
Other (income) expense 1,704
 (5,748) 2,852
 2,147
 —
 955
(Income) loss from investment in affiliates (25,098) 1,534
 (9,116) 2,425
 30,255
 —
Income (loss) before taxes 16,175
 (7,319) (14,369) 31,460
 (30,255) (4,308)
Provision (benefit) for taxes 8,059
 953
 (7,308) (14,128) —
 (12,424)
Net income (loss) $8,116
 $(8,272) $(7,061) $45,588
 $(30,255) $8,116
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment (1,704) —
 (1,704) —
 1,704
 (1,704)
Unrealized income on cash flow hedging derivatives 22,916
 (7,153) 180
 —
 6,973
 22,916
Other comprehensive income (loss), (net of tax) 21,212
 (7,153) (1,524) —
 8,677
 21,212
Total Comprehensive Income (Loss) $29,328
 $(15,425) $(8,585) $45,588
 $(21,578) $29,328
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $140,548
 $249,988
 $126,375
 $903,046
 $(390,156) $1,029,801
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 9,932
 82,100
 —
 92,032
Operating expenses 5,351
 167,068
 45,805
 608,940
 (390,156) 437,008
Selling, general and administrative 7,963
 83,355
 11,151
 35,026
 —
 137,495
Depreciation and amortization 37,309
 45
 17,325
 71,213
 —
 125,892
Loss (gain) on impairment / retirement of fixed assets, net 876
 —
 (51) 10,426
 —
 11,251
  51,499
 250,468
 84,162
 807,705
 (390,156) 803,678
Operating income (loss) 89,049
 (480) 42,213
 95,341
 —
 226,123
Interest expense, net 72,309
 19,090
 50,897
 488
 —
 142,784
Net effect of swaps (10,940) (243) (4,793) —
 —
 (15,976)
Unrealized / realized foreign currency loss —
 —
 8,605
 —
 —
 8,605
Other (income) expense 716
 (9,542) 1,708
 7,084
 —
 (34)
(Income) loss from investment in affiliates (67,272) (19,390) (2,601) 16,074
 73,189
 —
Income (loss) before taxes 94,236
 9,605
 (11,603) 71,695
 (73,189) 90,744
Provision (benefit) for taxes 9,429
 (25,950) 4,319
 18,139
 —
 5,937
Net income (loss) $84,807
 $35,555
 $(15,922) $53,556
 $(73,189) $84,807
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment 1,050
 —
 1,050
 —
 (1,050) 1,050
Unrealized income (loss) on cash flow hedging derivatives (7,958) (9,638) 254
 —
 9,384
 (7,958)
Other comprehensive income (loss), (net of tax) (6,908) (9,638) 1,304
 —
 8,334
 (6,908)
Total Comprehensive Income (Loss) $77,899
 $25,917
 $(14,618) $53,556
 $(64,855) $77,899




28

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the NineThree Months Ended September 30, 2012March 31, 2013
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $208,436
 $48,506
 $9,093
 $155,849
 $(145,140) $276,744
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates (56,171) (70,083) 3,948
 (22,834) 145,140
 —
Sale of other assets 1,173
 —
 —
 —
 —
 1,173
Capital expenditures (29,295) (8) (14,426) (32,081) —
 (75,810)
Net cash from (for) investing activities (84,293) (70,091) (10,478) (54,915) 145,140
 (74,637)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Derivative settlement —
 —
 (50,450) —
 —
 (50,450)
Term debt payments, including early termination penalties (14,468) (10,212) (320) —
 —
 (25,000)
Intercompany (payments) receipts —
 93,845
 —
 (93,845) —
 —
Distributions (paid) received (66,675) 110
 —
 —
 —
 (66,565)
Capital (contribution) infusion —
 (60,000) 60,000
 —
 —
 —
Exercise of limited partnership unit options —
 47
 —
 —
 —
 47
Excess tax benefit from unit-based compensation expense —
 (454) —
 —
 —
 (454)
Net cash from (for) financing activities (81,143) 23,336
 9,230
 (93,845) —
 (142,422)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 893
 —
 —
 893
CASH AND CASH EQUIVALENTS            
Net increase for the period 43,000
 1,751
 8,738
 7,089
 —
 60,578
Balance, beginning of period —
 512
 31,540
 3,472
 —
 35,524
Balance, end of period $43,000
 $2,263
 $40,278
 $10,561
 $—
 $96,102
             
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $(117,670) $(49,663) $(42,030) $(12,767) $153,463
 $(68,667)
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates 65,636
 58,171
 (2,442) 32,098
 (153,463) —
Capital expenditures (17,866) —
 (600) (17,363) —
 (35,829)
Net cash from (for) investing activities 47,770
 58,171
 (3,042) 14,735
 (153,463) (35,829)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Net borrowings on revolving credit loans $96,000
 $—
 $—
 $—
 $—
 $96,000
Term debt borrowings 359,022
 256,500
 14,478
 —
 —
 630,000
Note borrowings 294,897
 205,103
 —
 —
 —
 500,000
Payment of debt issuance costs (14,763) (8,538) (190) —
 —
 (23,491)
Term debt payments, including early termination penalties (654,568) (462,054) (14,478) —
 —
 (1,131,100)
Distributions (paid) received (35,688) 868
 —
 —
 —
 (34,820)
Exercise of limited partnership unit options —
 28
 —
 —
 —
 28
Excess tax benefit from unit-based compensation expense —
 (127) —
 —
 —
 (127)
Net cash from (for) financing activities 44,900
 (8,220) (190) —
 —
 36,490
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 (786) —
 —
 (786)
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period (25,000) 288
 (46,048) 1,968
 —
 (68,792)
Balance, beginning of period 25,000
 444
 50,173
 3,213
 —
 78,830
Balance, end of period $—
 $732
 $4,125
 $5,181
 $—
 $10,038
             

29

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the NineThree Months Ended SeptemberMarch 25, 20112012 (As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $169,343
 $48,628
 $48,422
 $25,310
 $(69,338) $222,365
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates (29,986) (39,615) (6,353) 6,616
 69,338
 —
Capital expenditures (38,121) —
 (10,510) (24,249) —
 (72,880)
Net cash from (for) investing activities (68,107) (39,615) (16,863) (17,633) 69,338
 (72,880)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Net (payments) on revolving credit loans (23,200) —
 —
 —
 —
 (23,200)
Term debt borrowings 13,246
 9,358
 334
 —
 —
 22,938
Term debt payments, including early termination penalties (13,831) (9,763) (306) —
 —
 (23,900)
Intercompany (payments) receipts —
 688
 —
 (688) —
 —
Distributions (paid) received (16,668) 64
 —
 —
 —
 (16,604)
Payment of debt issuance costs (11,783) (8,332) (375) —
 —
 (20,490)
Net cash from (for) financing activities (52,236) (7,985) (347) (688) —
 (61,256)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 (1,682) —
 —
 (1,682)
CASH AND CASH EQUIVALENTS            
Net increase for the period 49,000
 1,028
 29,530
 6,989
 —
 86,547
Balance, beginning of period —
 1,461
 6,943
 1,361
 —
 9,765
Balance, end of period $49,000
 $2,489
 $36,473
 $8,350
 $—
 $96,312
             
             
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $(184,504) $10,151
 $(37,239) $(6,697) $136,357
 $(81,932)
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates 62,103
 60,369
 2,208
 11,677
 (136,357) —
Capital expenditures (8,374) —
 (7,125) (11,969) —
 (27,468)
Net cash from (for) investing activities 53,729
 60,369
 (4,917) (292) (136,357) (27,468)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Net borrowings on revolving credit loans 153,000
 —
 2,004
 —
 —
 155,004
Derivative settlement —
 —
 (50,450) —
 —
 (50,450)
Intercompany (payments) receipts —
 (10,320) —
 10,320
 —
 —
Distributions (paid) received (22,225) 74
 —
 —
 —
 (22,151)
Capital (contribution) infusion —
 (60,000) 60,000
 —
 —
 —
Exercise of limited partnership unit options —
 48
 —
 —
 —
 48
Excess tax benefit from unit-based compensation —
 (437) —
 —
 —
 (437)
Net cash from (for) financing activities 130,775
 (70,635) 11,554
 10,320
 —
 82,014
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 (819) —
 —
 (819)
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period —
 (115) (31,421) 3,331
 —
 (28,205)
Balance, beginning of period —
 512
 31,540
 3,472
 —
 35,524
Balance, end of period $—
 $397
 $119
 $6,803
 $—
 $7,319
             
             

30

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the Twelve Months Ended September 30, 2012March 31, 2013
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $186,582
 $(152,159) $12,038
 $318,078
 $(91,985) $272,554
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates (40,694) (47,206) 5,245
 (9,330) 91,985
 —
Sale of other assets 1,173
 —
 —
 —
 —
 1,173
Capital expenditures (33,025) (8) (23,050) (37,037) —
 (93,120)
Net cash for investing activities (72,546) (47,214) (17,805) (46,367) 91,985
 (91,947)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Intercompany term debt (payments) receipts —
 269,500
 —
 (269,500) —
 —
Derivative settlement —
 —
 (50,450) —
 —
 (50,450)
Term debt payments, including early termination penalties (14,467) (10,213) (320) —
 —
 (25,000)
Distributions (paid) received (105,569) 261
 —
 —
 —
 (105,308)
Capital (contribution) infusion —
 (60,000) 60,000
 —
 —
 —
Exercise of limited partnership unit options —
 53
 —
 —
 —
 53
Payment of debt issuance costs —
 —
 (723) —
 —
 (723)
Excess tax benefit from unit-based compensation expense —
 (454) —
 —
 —
 (454)
Net cash from (for) financing activities (120,036) 199,147
 8,507
 (269,500) —
 (181,882)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 1,065
 —
 —
 1,065
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period (6,000) (226) 3,805
 2,211
 —
 (210)
Balance, beginning of period 49,000
 2,489
 36,473
 8,350
 —
 96,312
Balance, end of period $43,000
 $2,263
 $40,278
 $10,561
 $—
 $96,102
             
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $188,221
 $(37,475) $16,546
 $135,165
 $(4,510) $297,947
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates 43,043
 (49,642) (2,479) 4,568
 4,510
 —
Sale of other assets 1,173
 —
 —
 14,885
 —
 16,058
Capital expenditures (43,156) (8) (8,023) (52,075) —
 (103,262)
Net cash for investing activities 1,060
 (49,650) (10,502) (32,622) 4,510
 (87,204)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Net borrowings on revolving credit loans $(57,000) $—
 $(2,004) $—
 $—
 $(59,004)
Term debt borrowings 359,022
 256,500
 14,478
 —
 —
 630,000
Note borrowings 294,897
 205,103
 —
 —
 —
 500,000
Intercompany term debt (payments) receipts —
 104,165
 —
 (104,165) —
 —
Term debt payments, including early termination penalties (669,035) (472,267) (14,798) —
 —
 (1,156,100)
Distributions (paid) received (102,402) 920
 —
 —
 —
 (101,482)
Capital (contribution) infusion —
 —
 —
 —
 —
 —
Exercise of limited partnership unit options —
 57
 —
 —
 —
 57
Payment of debt issuance costs (14,763) (8,537) (191) —
 —
 (23,491)
Excess tax benefit from unit-based compensation expense —
 1,519
 —
 —
 —
 1,519
Net cash from (for) financing activities (189,281) 87,460
 (2,515) (104,165) —
 (208,501)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 477
 —
 —
 477
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period —
 335
 4,006
 (1,622) —
 2,719
Balance, beginning of period —
 397
 119
 6,803
 —
 7,319
Balance, end of period $—
 $732
 $4,125
 $5,181
 $—
 $10,038
             

31

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the Twelve Months Ended SeptemberMarch 25, 20112012 (As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $101,376
 $(9,652) $25,380
 $19,056
 $58,064
 $194,224
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates 25,281
 23,147
 (1,356) 10,992
 (58,064) —
Capital expenditures (44,247) —
 (13,179) (27,488) —
 (84,914)
Net cash from (for) investing activities (18,966) 23,147
 (14,535) (16,496) (58,064) (84,914)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Term debt borrowings 13,246
 9,358
 334
 —
 —
 22,938
Intercompany term debt (payments) receipts —
 2,063
 —
 (2,063) —
 —
Term debt payments, including early termination penalties (24,211) (17,091) (536) —
 —
 (41,838)
Distributions (paid) received (30,559) 121
 —
 —
 —
 (30,438)
Exercise of limited partnership unit options —
 7
 —
 —
 —
 7
Payment of debt issuance costs (12,886) (9,110) (761) —
 —
 (22,757)
Net cash from (for) financing activities (54,410) (14,652) (963) (2,063) —
 (72,088)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 (2,611) —
 —
 (2,611)
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period 28,000
 (1,157) 7,271
 497
 —
 34,611
Balance, beginning of period 21,000
 3,646
 29,202
 7,853
 —
 61,701
Balance, end of period $49,000
 $2,489
 $36,473
 $8,350
 $—
 $96,312
             
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $113,654
 $(89,658) $14,102
 $182,798
 $(367) $220,529
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates (16,818) (6,588) 1,126
 21,913
 367
 —
Capital expenditures (40,662) —
 (22,440) (34,253) —
 (97,355)
Net cash from (for) investing activities (57,480) (6,588) (21,314) (12,340) 367
 (97,355)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Net borrowings (payments) on revolving credit loans 31,000
 —
 (3,110) —
 —
 27,890
Intercompany term debt (payments) receipts —
 166,023
 —
 (166,023) —
 —
Term debt payments, including early termination penalties (13,831) (9,763) (306) —
 —
��(23,900)
Derivative settlement —
 —
 (50,450) —
 —
 (50,450)
Distributions (paid) received (73,343) 273
 —
 —
 —
 (73,070)
Capital (contribution) infusion —
 (60,000) 60,000
 —
 —
 —
Payment of debt issuance costs —
 —
 (723) —
 —
 (723)
Exercise of limited partnership unit options —
 53
 —
 —
 —
 53
Excess tax benefit from unit-based compensation —
 (437) —
 —
 —
 (437)
Net cash from (for) financing activities (56,174) 96,149
 5,411
 (166,023) —
 (120,637)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 (2,473) —
 —
 (2,473)
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period —
 (97) (4,274) 4,435
 —
 64
Balance, beginning of period —
 494
 4,393
 2,368
 —
 7,255
Balance, end of period $—
 $397
 $119
 $6,803
 $—
 $7,319


32

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Business Overview:

We generate our revenues primarily from sales of (1) admission to our parks, (2) food, merchandise and games inside our parks, and (3) hotel rooms, food and other attractions outside our parks. Our principal costs and expenses, which include salaries and wages, advertising, maintenance, operating supplies, utilities and insurance, are relatively fixed and do not vary significantly with attendance.

Each of our properties is run by a park general manager and operates autonomously. Management reviews operating results, evaluates performance and makes operating decisions, including the allocation of resources, on a property-by-property basis.

Aside from attendance and guest per capita statistics, discrete financial information and operating results are not prepared at the regional level, but rather at the individual park level for use by the CEO, who is the Chief Operating Decision Maker (CODM), as well as by the Chief Financial Officer, the Chief Operating Officer, the park general managers, and the Executive Vice President, Operations.


Critical Accounting Policies:
This management’s discussion and analysis of financial condition and results of operations is based upon our unaudited condensed consolidated financial statements, which were prepared in accordance with accounting principles generally accepted in the United States of America. These principles require us to make judgments, estimates and assumptions during the normal course of business that affect the amounts reported in the unaudited condensed consolidated financial statements. Actual results could differ significantly from those estimates under different assumptions and conditions.
Management believes that judgment and estimates related to the following critical accounting policies could materially affect our consolidated financial statements:
 
•Property and Equipment
 
•Impairment of Long-Lived Assets
 
•Goodwill and Other Intangible Assets
 
•Self-Insurance Reserves
 
•Derivative Financial Instruments
 
•Revenue Recognition

Income Taxes
In the thirdfirst quarter of 20122013, there were no changes in the above critical accounting policies previously disclosed in our Annual Report on Form 10-K10-K/A for the year ended December 31, 20112012. except as noted below.
Change in Depreciation Method
Effective January 1, 2013, the Partnership changed its method of depreciation for the group of assets acquired as a whole in 1983, as well as for the groups of like assets of each subsequent business acquisition from the composite method to the unit method.
Historically, the Partnership had used the composite depreciation method for land improvements, buildings, rides and equipment for the group of assets acquired as a whole in 1983, as well as for the group of like assets of each subsequent business acquisition. The unit method was only used for all individual assets purchased. Under the composite depreciation method, assets with similar estimated lives are grouped together and the several pools of assets are depreciated on an aggregate basis. No gain or loss is recognized on normal retirements of composite assets. Instead, the net book value of a retired asset reduces accumulated depreciation for the composite group. Unusual retirements of composite assets could result in the recognition of a gain or loss. Under the unit method of depreciation, individual assets are depreciated over their estimated useful lives, with gains and losses on all asset retirements recognized currently in income.
In order to improve comparability and enhance the level of precision associated with allocating historical cost, the Partnership had determined that it was preferable to change from the composite method of depreciation to the unit method of depreciation for

33

all assets. The Partnership believes that pursuant to generally accepted accounting principles, changing from the composite method of depreciation to the unit method of depreciation is a change in accounting estimate that is effected by a change in accounting principle, which should be accounted for prospectively. This prospective application will result in the discontinuance of the composite method of depreciation for all prior acquisitions with the existing net book value of each composite pool allocated to the remaining individual assets (units) in that pool with each unit assigned an appropriate remaining useful life on an individual unit basis. Assigning a useful life to each unit in the various composite pools had an insignificant effect on the weighted average useful lives of all assets that were previously accounted for under the composite method.
The change in depreciation method had an immaterial impact on the Condensed Consolidated Financial Statements for the quarter ended March 31, 2013.Future asset retirements could have a material impact on the Condensed Consolidated Financial Statements in the periods such items occur.


Adjusted EBITDA:
We believe that Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, other non-cash items, and adjustments as defined in the Amended 20102013 Credit Agreement) is a meaningful measure of park-level operating profitability because we use it for measuring returns on capital investments, evaluating potential acquisitions, determining awards under incentive compensation plans, and calculating compliance with certain loan covenants. Adjusted EBITDA is provided in the discussion of results of operations that follows as a supplemental measure of our operating results and is not intended to be a substitute for operating income, net income or cash flows from operating activities as defined under generally accepted accounting principles. In addition, Adjusted EBITDA may not be comparable to similarly titled measures of other companies.

33

The table below sets forth a reconciliation of Adjusted EBITDA to net income for the three-, nine- and twelve-month periods ended September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012.
 
  Three months ended Nine months ended Twelve months ended
  9/30/2012 9/25/2011 9/30/2012 9/25/2011 9/30/2012 9/25/2011
  (13 weeks) (13 weeks) (39 weeks) (38 weeks) (53 weeks) (52 weeks)
  (In thousands )
Net income $140,688
 $152,218
 $111,595
 $71,574
 $110,767
 $8,116
Interest expense 26,863
 41,353
 83,902
 124,650
 116,437
 171,049
Interest income (13) (32) (31) (120) (68) (194)
Provision (benefit) for taxes 51,713
 37,844
 41,395
 21,773
 30,839
 (12,424)
Depreciation and amortization 60,747
 63,448
 113,156
 110,857
 128,136
 126,382
EBITDA 279,998
 294,831
 350,017
 328,734
 386,111
 292,929
Net effect of swaps (175) (3,962) (1,318) (3,507) (10,930) 1,772
Unrealized foreign currency (gain) loss (14,737) 17,314
 (14,108) 13,224
 (17,502) 549
Non-cash equity expense (income) 362
 —
 2,630
 (228) 2,619
 (269)
Loss on impairment of goodwill and other intangibles —
 —
 —
 —
 —
 903
Loss on impairment/retirement of fixed assets, net 25,000
 880
 24,230
 1,076
 25,719
 63,509
Terminated merger costs —
 —
 —
 80
 150
 (79)
Refinancing costs —
 (195) —
 955
 —
 955
Other non-recurring items (as defined) 1,861
 836
 4,026
 6,107
 7,445
 6,107
Adjusted EBITDA (1)
 $292,309
 $309,704
 $365,477
 $346,441
 $393,612
 $366,376
             
(1) As permitted by and defined in the Amended 2010 Credit Agreement        
  Three months ended Twelve months ended
  3/31/2013 3/25/2012 3/31/2013 3/25/2012
  (13 weeks) (12 weeks) (53 weeks) (52 weeks)
  (In thousands)
Net income (loss) $(109,126) $(65,415) $58,145
 $84,807
Interest expense 25,763
 26,803
 109,579
 142,876
Interest income (40) (16) (92) (92)
Provision (benefit) for taxes (35,659) (21,539) 17,638
 5,937
Depreciation and amortization 4,786
 4,079
 127,013
 125,892
EBITDA (114,276) (56,088) 312,283
 359,420
Loss on early extinguishment of debt 34,573
 —
 34,573
 —
Net effect of swaps 9,211
 (970) 8,689
 (15,976)
Unrealized foreign currency (gain) loss 8,881
 (8,249) 7,949
 8,502
Non-cash equity expense 2,933
 1,700
 4,498
 1,689
Loss on impairment/retirement of fixed assets, net 600
 92
 30,844
 11,251
(Gain) on sale of other assets —
 —
 (6,625) —
Terminated merger costs —
 —
 —
 230
Refinancing costs —
 —
 —
 (34)
Other non-recurring items (as defined) 805
 1,721
 3,264
 6,823
Adjusted EBITDA (1)
 $(57,273) $(61,794) $395,475
 $371,905
         
(1) As permitted by and defined in the 2013 Credit Agreement    

34

Results of Operations:

Our results of operations for the nine, three and twelve months ended September 30, 2012 and September 25, 2011 are not directly comparable as the current nine- and twelve month periods include an additional week of operations due to the timing of the fiscal third quarter close, and as the current three-month period includes fewer operating days due to the timing of the fiscal second and third quarter closes. Since a large portion of the variances in our statements of operations is due to the difference in the number of operating days in the current fiscal periods, we will also compare current operating results to the prior year period ended October 2, 2011.

Immaterial Restatement -

We have made two separate corrections relating to our use of the composite depreciation methodmethod.

The first correction, which impacts the Balance Sheet at March 25, 2012 and the Statement of Operations and Other Comprehensive Income for the group3 and 12 month periods ended March 25, 2012, related to a misapplication of assets acquired as a whole in 1983, as well as for groups of assets in each subsequent business acquisition.the composite depreciation method. Upon the normal retirement of an asset within a composite group, our practice generally hashad been to extend the depreciable life of that composite group beyond its original estimated useful life. In conjunction with the preparation of our financial statements for the three months ended July 1,in 2012, wemanagement determined that this methodology was not appropriate. As a result, we revised the useful lives of our composite groups to their original estimated useful life (ascribed upon acquisition) and corrected previously computed depreciation expense (and accumulated depreciation).

The second correction, which impacts the Balance Sheet at March 25, 2012 and the Statement of Operations and Other Comprehensive Income for the 12 month period ended March 25, 2012, reflects a subsequent determination that a disposition from our composite group of assets was considered to be unusual. In certain situations under the composite method, disposals are considered unusual and, accordingly, losses are not included in the composite depreciation pool but are rather charged immediately to expense. In 2013, the Partnership's initial determination of whether a specific asset retired under the composite method of depreciation in 2011 was normal was challenged by the SEC Staff. We evaluated the amount and nature of these adjustments andultimately concluded that theysuch disposition was unusual and that a $8.8 millioncharge be reflected in the 2011 financial statements.

First Quarter -

Operating results for the first quarter historically include less than 5% of our full-year revenues and attendance. The results include normal off-season operating, maintenance and administrative expenses at our ten seasonal amusement parks and four outdoor water parks, as well as daily operations at Knott's Berry Farm, which is open year-round, and Castaway Bay, which is generally open daily from Memorial Day to Labor Day plus a limited daily schedule for the balance of the year.
The following table presents key financial information for the three months ended March 31, 2013 and March 25, 2012:
  Three months ended Three months ended Increase (Decrease)
  3/31/2013 3/25/2012 $ %
  (13 weeks) (12 weeks)    
    (As restated)    
  (Amounts in thousands)
Net revenues $41,799
 $28,198
 $13,601
 48.2 %
Operating costs and expenses 102,733
 93,356
 9,377
 10.0 %
Depreciation and amortization 4,786
 4,079
 707
 17.3 %
Loss on impairment / retirement of fixed assets 600
 92
 508
 N/M
Operating loss $(66,320) $(69,329) $3,009
 (4.3)%
         
Other Data:        
Adjusted EBITDA $(57,273) $(61,794) $4,521
 (7.3)%

For the quarter ended March 31, 2013, net revenues increased to $41.8 million from $28.2 million for the first quarter of 2012. The increase between periods was primarily due to the strong first-quarter performance in both attendance and per-capita spending at Knott's Berry Farm, our only year-round property, compared with the first quarter a year ago, as well as an extra week of operations due to the earlier timing of Easter in 2013 compared to 2012. At the end of the first quarter, only five of our 15 properties were not materialin operation. The other parks, including our larger parks, Cedar Point and Kings Island located in Ohio and Canada's Wonderland in Toronto, were in the final stages of preparing to eitheropen for the 2013 operating season.

Operating costs and expenses for the quarter increased $9.3 million to $102.7 million from $93.4 million in 2012 and were in line with expectations. Operating results for the first quarter include normal off-season operating, maintenance and administrative

35

expenses at our prior annualseasonal amusement and water parks, and daily operations at Knott’s Berry Farm and Castaway Bay. The increase in first-quarter costs reflects a $5.4 million increase in operating expenses and a $2.3 million increase in selling, general and administrative ("SG&A") expenses. The cost of food, merchandise and games revenues for the period increased slightly due to sales volume increases at Knott's Berry Farm in the first quarter of 2013. The $5.4 million increase in operating expenses was due primarily to the extra week of operations in the first quarter of 2013 compared with 2012. For the quarter, labor costs increased $3.8 million, maintenance expense increased $2.2 million and operating supplies increased $0.9 million. These increases in operating costs were somewhat offset by a reduction in insurance expense due to a prior-year, non-recurring public liability claim at one of our parks. The $2.3 million increase in SG&A expenses was due primarily to increases in first-quarter advertising fees and full-time labor costs, largely related to full staffing levels.

Interest expense for the first quarter of 2013 was $25.8 million, representing a $1.0 million decrease compared to the first quarter of 2012. The decrease in interest expense was primarily due to the settlement of our Canadian swap in the first quarter of 2012.

During the first quarter of 2013, the net effect of our swaps decreased $10.2 million to a non-cash charge to earnings of $9.2 million, reflecting the regularly scheduled amortization of amounts in AOCI related to interest rate swaps, the write off of amounts in AOCI related to de-designated interest rate swaps, as well as gains from marking the ineffective and de-designated swaps to market. During the first quarter of 2013 we also recognized a $9.0 million charge to earnings for unrealized/realized foreign currency gains and losses, $8.9 million of which represents an unrealized foreign currency loss on the U.S.-dollar denominated debt held at our Canadian property. Due to our March 2013 refinancing, loan fees related to our 2010 and 2011 financings were written off, resulting in a $34.6 million charge to earnings in the period.

During the quarter, a benefit for taxes of $35.7 million was recorded to account for publicly traded partnership (PTP) taxes and the tax attributes of our corporate subsidiaries, compared to a benefit for taxes of $21.5 million in the same period a year ago. Actual cash taxes paid or quarterly financial statements. Nonetheless, the historical financial statement amounts included in this filing have been corrected for this error. We expect to likewise correct previously presented historical financial statementspayable are estimated to be included in future filings, including the annual financial statements to be included in our Annual Report on Form 10-Kbetween $14-$17 million for the 2013 calendar year.

After interest expense and the provision for taxes, net loss for the quarter totaled $109.1 million, or $1.95 per diluted limited partner unit, compared with net loss of $65.4 million, or $1.18 per diluted limited partner unit, for the first quarter a year ending December 31, 2012.ago. The larger net loss for the period is due to the loss on early debt extinguishment and a change in the unrealized/realized loss on foreign currency exchange, offset somewhat by the increased first-quarter revenues.


NineTwelve Months Ended September 30, 2012March 31, 2013 -

The fiscal nine-monthtwelve-month period ended September 30, 2012,March 31, 2013, consisted of a 39-week53-week period and included a total of 2,178 operating days compared with 3852 weeks and 2,148 operating days for the fiscal nine-monthtwelve-month period ended SeptemberMarch 25, 2011.2012. Operating days were virtually identical, as the current period had only one additional operating day.

The following table presents key financial information for the ninetwelve months ended September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012:
  Nine months ended Nine months ended Increase (Decrease)
  9/30/2012 9/25/2011 $ %
  (39 weeks) (38 weeks)    
  (Amounts in thousands except per capita spending)
         
Net revenues $939,249
 $883,627
 $55,622
 6.3 %
Operating costs and expenses 580,246
 541,665
 38,581
 7.1 %
Depreciation and amortization 113,156
 110,857
 2,299
 2.1 %
Loss on impairment / retirement of fixed assets, net 24,230
 1,076
 23,154
 N/M
Operating income $221,617
 $230,029
 $(8,412) (3.7)%
N/M - Not meaningful        
Other Data:        
Adjusted EBITDA $365,477
 $346,441
 $19,036
 5.5 %
Adjusted EBITDA margin 38.9% 39.2% $—
 (0.3)%
Attendance 20,689
 20,114
 575
 2.9 %
Per capita spending $41.78
 $40.15
 $1.63
 4.1 %
Out-of-park revenues $99,526
 $97,622
 $1,904
 2.0 %
  Twelve months ended Twelve months ended Increase (Decrease)
  3/31/2013 3/25/2012 $ %
  (53 weeks) (52 weeks)    
    (As restated)    
  (Amounts in thousands)
Net revenues $1,082,055
 $1,029,801
 $52,254
 5.1%
Operating costs and expenses 694,139
 666,535
 27,604
 4.1%
Depreciation and amortization 127,013
 125,892
 1,121
 0.9%
(Gain) on sale of other assets (6,625) —
 (6,625) N/M
Loss on impairment/retirement of fixed assets 30,844
 11,251
 19,593
 174.1%
Operating income $236,684
 $226,123
 $10,561
 4.7%
N/M - Not meaningful        
Other Data:        
Adjusted EBITDA $395,475
 $371,905
 $23,570
 6.3%
Adjusted EBITDA margin 36.5% 36.1% —
 0.4%


36

Net revenues totaled $1,082.1 millionfor the ninetwelve months ended September 30, 2012March 31, 2013, increasing $52.3 million, from $1,029.8 million increased $55.6 million to $939.2 million from $883.6 million duringfor the ninetrailing twelve months ended SeptemberMarch 25, 20112012. The increase in revenues reflects an increase of 575,000 visits, or 3%, in combined attendanceRevenues for the nine-monthtwelve-month period ended September 30, 2012 when compared withincreased 5% on the nine-month period ended September 25, 2011. The increase in revenues also reflects a 4%, or $1.63, increase in averagestrength of higher attendance and in-park guest per capita spending. In-park guest per capita spending represents the amount spent per attendee to gain admission to a park, plus all amounts spent while inside the park gates. The increase in per capita spending was largely due to the successful introduction of new premium benefit offerings and the positive impact of new customer messaging and dynamic pricing initiatives. Attendance increased year-over-year on virtually the same number of operating days as our season pass sales and visits increased during the same nine-month period and a 2%, or $1.9 million, increase incomparable periods.

Meanwhile, out-of-park revenues. Out-of-park revenues, includewhich represents the sale of hotel rooms, food, merchandise and other complementary activities located outside of the park gates, as well as e-commerce transaction fees. In-park guest per capita spending representsincreased slightly in the average amount spent per attendee to gain admission to a park

35

plus all amounts spent while inside the park gates. Revenuescomparable periods. The increase in net revenues for the first ninetwelve months of the yearended March 31, 2013 also reflectreflects the negative impact of currency exchange rates and the weakening U.S. dollar on our Canadian operations ($4.5(approximately $4.5 million) during the period.

For the nine-month period ended September 30, 2012, operatingOperating costs and expenses increased 7%$27.6 million, or 4%, or $38.5to $694.1 million to $580.2 million from $541.7versus $666.5 million for 2012 and were in line with expectations. The increase in costs and expenses was the nine-month period ended September 25, 2011, the net result of a $3.9$4.0 million increase in cost of goods sold, a $29.3$19.8 million increase in operating expenses, and a $5.4 million$3.9 increase in selling, generalSG&A costs. The 4% increase in cost of goods sold is consistent with anticipated cost increases associated with our efforts to improve the quality of food and other product offerings at our parks. Operating expenses increased due to several factors, including higher employment-related costs, higher operating supply costs, and higher self-insurance expenses. Employment-related costs increased approximately $12.6 million due to normal merit increases, increases in health-related benefit costs, additional staffing levels associated with new premium benefit offerings and other initiatives aimed at improving the overall guest experience, and non-recurring severance payments. Operating supplies and expenses increased approximately $5.3 million due primarily to initiatives to expand or enhance live entertainment at the parks, as well as incremental costs associated with our e-commerce platform and higher attendance. These increases in operating costs were somewhat offset by a reduction in insurance expense due to a prior-year (first quarter of 2012), non-recurring public liability claim at one of our parks.

The increase in SG&A costs was due to an increase in employment-related costs ($4.5 million), operating supplies ($3.8 million), and agency advertising fees ($2.7 million), offset by decreases in professional and administrative costs ("SG&A")($5.9 million). DepreciationThe increase in employment costs was primarily the result of higher wages and amortization expense for the period increased $2.3 millionbenefits due to normal merit increases and full-staffing levels. Increases in operating supplies and advertising fees were due to the earlier timing of Easter, as well as incremental costs to support operating initiatives including general infrastructure improvements. Professional and administrative fees decreased primarily due to a reduction in litigation expenses and costs for SEC compliance matters related to Special Meeting requests. The overall increase in capital spending when compared withcosts and expenses also reflects the prior year. The positive impact of exchange rates on our Canadian operations ($1.2 million) during the period.

Loss on impairment/retirement of fixed assets, reported fornet, during the nine-month period totaled $30.8 million, which reflects a non-cash charge to earnings of $25.0 million for the partial impairment of operating and non-operating fixed assets at Wildwater Kingdom netalong with losses on other retirements. During the twelve-month period ended March 31, 2013, two non-core assets were sold at gains totaling $6.6 million. During the twelve-month period ended March 25, 2012, a charge of an $0.8$11.3 million gain fromfor the sale of a non-operating asset at one of our properties. After depreciation, amortization, loss on impairment / retirement of fixed assets was recorded which includes the retirement of the asset as described in Note 11 to the financial statements.

Depreciation and amortization expense for the period increased $1.1 million compared with the prior period due primarily to an increase in capital expenditures for the 2012 season. After depreciation and amortization, as well as impairment charges and all other non-cash costs, operating income for the current period decreased $8.4increased $10.6 million to $221.6$236.7 million through the first nine months of 2012 from operating income of $230.0 million through the first nine months of 2011.$226.1 million.

Interest expense for the first three quarters of 2012 was $83.9twelve months ended March 31, 2013 decreased $33.3 million a decrease of $40.7to $109.6 million, from $142.9 million for the first three quarters of 2011.same twelve-month period a year ago. The reduction in interest expense iswas primarily attributable to an approximate 300 basis point (bps) decline in our effective interest rate, the result of lower fixed rates on London InterBank Offered Rate (LIBOR) within our interest-rate swap contracts. TheAdditionally during the current period, $25.0 million of term debt principal payments were made, reducing our average fixed LIBOR rate in our swap agreements declined from 5.62% in 2011 to 2.48% in 2012.debt outstanding.

ForDuring the current period, the net effect of our interest rate swaps decreased $2.2was recorded as a charge to earnings of $8.7 million between years, resulting incompared to a non-cash benefit to earnings of $1.3$16.0 million for the first nine months of 2012, as compared with a $3.5 million non-cash benefit to earnings for the nine-month period in 2011.prior period. The difference reflects the regularly scheduled amortization of amounts in Accumulated other comprehensive income ("AOCI")AOCI related to the swaps and the write off of AOCI amounts related to de-designated interest rate swaps, which were offset by gains from marking the ineffective and de-designated swaps to market and foreign currency gains related to the U.S.-dollar denominated Canadian term loan in the current period. During the current year-to-date period, we also recognized a $13.9$8.2 million net benefitcharge to earnings for unrealized/realized foreign currency gains,losses, which included a $14.1$7.9 million unrealized foreign currency gainloss on the U.S.-dollar denominated debt held at our Canadian property. Due to our March 2013 refinancing, loan fees that were paid as part

37

of our 2010 and 2011 financings were written off, resulting in a $34.6 million non-cash charge to earnings recorded in "Loss on early debt extinguishment" on the consolidated statement of operations.

During the first fiscal nine months of 2012, aA provision for taxes of $41.4$17.6 million was recorded to accountin the period for publicly traded partnership (“PTP”) taxes and the tax attributes of our corporate subsidiaries.subsidiaries and publicly traded partnership (PTP) taxes. This compares with a $21.8 million provision for taxes of $5.9 million in period ended March 25, 2012 for the first fiscal nine monthstax attributes of 2011. The year-over-year variation in the tax provision is due primarily to an increase in the income subject to tax. Actual cash taxes paid or payable for the 2012 calendar year are estimated to be between $11our corporate subsidiaries and $13 million. The Partnership also expects to receive a $10.4 million refund of prior year taxes paid resulting from the carry back of the loss recognized from the settlement of a derivative contract.PTP taxes.

After interest expense and the benefitprovision for taxes, net income for the nine months ended September 30, 2012period totaled $111.6$58.1 million, or $2.00$1.04 per diluted limited partner unit, compared with net income of $71.6$84.8 million, or $1.28$1.52 per unit, for the nine months ended September 25, 2011.a year ago.

It is important to note that the current nine-month results benefited from an additional week, or 30 more operating days, due to the timing of the third quarter fiscal close. Comparing both 2012 and 2011 on a 39-week basis, net revenues would have been up $41.1 million, or 5%, on increases in both attendance and in-park guest per capita spending. On a comparable basis, attendance would have increased 228,000 visits, primarily due to an increase in season pass attendance, and in-park per capita spending would have increased $1.67, or 4%, primarily due to new premium benefit offerings and the positive impact of new customer messaging and dynamic pricing. Over that same comparable basis, out-of-park revenues would have decreased by approximately $0.3 million, or less than 1%.

Operating costs and expenses on a comparable 39-week basis would have increased approximately $27.9 million, or 5%, due to an increase of $2.9 million, or 3%, in cost of goods sold, an increase in operating expenses of $21.9 million, or 6%, and an increase of $3.1 million, or 3%, in SG&A costs. The overall increase in costs and expenses also reflects the positive impact of exchange rates on our Canadian operations (approximately $1.6 million) during the nine-month period ended September 30, 2012.

The 3% increase in cost of goods sold is consistent with anticipated cost increases associated with our efforts to improve the quality of food and other product offerings at the parks in 2012. Operating expenses in the 39-week period increased due to several factors, including higher employment-related costs, higher maintenance and operating supply costs, and higher self-insurance expenses. Employment-related costs increased approximately $11.0 million due to normal merit increases, increases in health-related benefit costs, additional staffing levels associated with new premium benefit offerings and other initiatives aimed at improving the overall guest experience, and non-recurring severance payments. Due in part to mild weather, we were able to accelerate off-season maintenance projects into the first half of the year, resulting in year-over-year maintenance expense increasing by approximately $4.4 million. Operating supplies and expenses increased approximately $4.0 million due primarily to initiatives

36

to expand or enhance live entertainment at the parks, as well as incremental costs associated with our new e-commerce platform. During the first nine months, public liability and workers compensation expense increased $2.1 million due to claim settlements and an increase in our reserves based on management's estimates of future claims.

SG&A expense for the comparable 39-week period increased approximately $3.1 million compared to same period in 2011 due to an increase in operating supplies of $4.7 million, an increase in advertising costs of $1.5 million, and an increase in employee related costs of $2.9 million. The operating supplies and advertising increases were due to incremental costs to support 2012 operating initiatives including general infrastructure improvements. These increases in expense were offset somewhat by a reduction in litigation expenses and costs for SEC compliance matters related to Special Meeting requests in 2011.

For the fiscal nine-month period ended September 30, 2012,We believe Adjusted EBITDA (as defined in the Amended 2010 Credit Agreement), which we believe is a meaningful measure of our park-level operating results (for additional information regarding Adjusted EBITDA, including how we define and use Adjusted EBITDA, as well as a reconciliation from net income, see Note 6 in Item 6, “Selected Financial Data,” on pages 15-16). For the twelve-month period ended March 31, 2013, Adjusted EBITDA increased $23.6 million, or 6%, to $365.5 million compared with $346.4 million$395.5 million. Over this same period, our Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) increased 40 bps to 36.5% from 36.1% for the fiscal nine-monthtwelve-month period ended SeptemberMarch 25, 2011. This2012. The increase was due in part to the extra week in the current fiscal nine-month period. On a same-week basis, Adjusted EBITDA for the nine-month period would have still been up approximately $15.2 million, or 4%, between years,was primarily due to anthe increase in revenues resulting from the successful introduction of our new premium benefit offerings and dynamic pricing initiatives, as well as the successful expansion of our season pass base. These revenue gains were offset somewhat by an increase in operating costs in the period. For additional information regarding Adjusted EBITDA, including how we define Adjusted EBITDA, why we believe it provides useful information, and for a reconciliation to net income, see pages 33-34.

Third Quarter -

The fiscal three-month period ended September 30, 2012, consisted of a 13-week period and included a total of 1,177 operating days compared with 13 weeks and 1,253 operating days for the fiscal three-month period ended September 25, 2011. The variance in days is due to a shift in the operating calendar.

The following table presents key financial information for the three months ended September 30, 2012 and September 25, 2011:
  Three months ended Three months ended Increase (Decrease)
  9/30/2012 9/25/2011 $ %
  (13 weeks) (13 weeks)    
  (Amounts in thousands)
Net revenues $553,445
 $572,268
 $(18,823) (3.3)%
Operating costs and expenses 263,657
 262,188
 1,469
 0.6 %
Depreciation and amortization 60,747
 63,448
 (2,701) (4.3)%
Loss on impairment / retirement of fixed assets 25,000
 880
 24,120
 N/M
Operating income $204,041
 $245,752
 $(41,711) (17.0)%
N/M - Not meaningful        
Other Data:        
Adjusted EBITDA $292,309
 $309,704
 $(17,395) (5.6)%
Adjusted EBITDA margin 52.8% 54.1% —
 (1.3)%
Attendance 11,960
 12,933
 (973) (7.5)%
Per capita spending $42.90
 $40.84
 $2.06
 5.0 %
Out-of-park revenues $54,260
 $58,879
 $(4,619) (7.8)%

For the quarter ended September 30, 2012, net revenues decreased 3%, or $18.8 million, to $553.5 million from $572.3 million in 2011. This decrease reflects a 5% increase in average in-park per capita spending, offset by an 8% decrease in combined attendance (973,000 visits), and an 8% ($4.6 million) decrease in out-of-park revenues. The decreases in net revenues and attendance was largely attributable to the decrease in operating days in the quarter due to the way the fiscal calendar fell in 2012 compared with 2011. In-park per capita spending increased primarily due to new premium benefit offerings and the positive impact of new customer messaging and dynamic pricing. Out-of-park revenues decreased due to soft results in accommodations being somewhat offset by fees generated from our new e-commerce initiatives. The decrease in revenues for the third quarter of 2012 also reflects the negative impact of exchange rates on our Canadian operations ($2.4 million) during the period.


37

Operating costs and expenses for the quarter increased less than 1%, or $1.5 million, to $263.7 million from $262.2 million in the third quarter of 2011, the net result of a $1.4 million decrease in cost of goods sold, a $1.9 million increase in operating expenses and a $1.0 million increase in SG&A costs. Operating cost and expense variances between years were also affected by the fewer number of operating days in the current fiscal quarter, as discussed above. Depreciation and amortization expense for the quarter decreased $2.7 million due primarily to the reduction in operating days in the period, on which depreciation expense is based. During the current quarter, we recognized a non-cash charge to earnings of $25.0 million for the partial impairment of operating and non-operating fixed assets at Wildwater Kingdom.

Interest expense for the third quarter of 2012 was $26.9 million, representing an $14.5 million decrease from the interest expense for the third quarter of 2011. As mentioned in the nine-month discussion above, interest expense decreased primarily due to an approximate 300 bps decline in our effective interest rate. The decline in the effective interest rate is primarily due to lower fixed rates of LIBOR in debt associated derivative contracts, which declined from 5.62% in 2011 to 2.48% in 2012.

The net effect of our swaps during the third quarter was a non-cash benefit to earnings of $0.2 million, representing a decrease of $3.8 million from the prior year. This non-cash benefit reflects the regularly scheduled amortization of amounts in AOCI related to the swaps. During the 2012 third quarter, we also recognized a $15.0 million net benefit to earnings for unrealized/realized foreign currency gains, $14.7 million of which represents an unrealized foreign currency gain on the U.S.-dollar denominated debt held at our Canadian property.

During the quarter, a provision for taxes of $51.7 million was recorded to account for PTP taxes and the tax attributes of our corporate subsidiaries, compared to a provision for taxes of $37.8 million in the same period a year ago. The variation in the tax provision recorded between periods is due primarily to the increase in income subject to tax. After interest expense and the provision for taxes, net income for the quarter totaled $140.7 million, or $2.51 per diluted limited partner unit, compared with net income of $152.2 million, or $2.73 per unit, for the third quarter a year ago.

It is important to note that the current three-month results were negatively impacted by 76 less operating days, due to the timing of the second and third quarter fiscal closes. Comparing the third quarters of 2012 and 2011 on a comparable operating-day basis, net revenues would have been up $20.8 million, or 4%, on an increase in average in-park guest per capita spending offset by a slight decrease in attendance and a 3% decrease in out-of-park revenues.

Operating costs and expenses on a comparable operating-day basis would have increased approximately $12.4 million, or 5%, on a $2.1 million increase in cost of goods sold, an $8.4 million increase in operating expenses, and $1.9 million increase in SG&A costs. The overall increase in costs and expenses also reflects the positive impact of exchange rates on our Canadian operations (approximately $0.6 million) during the third quarter. The increase in cost of goods sold is consistent with anticipated cost increases associated with our efforts to improve the quality of food and other product offerings at the parks in 2012. Consistent with our nine-month discussion above, operating expenses in the third quarter increased as a result of higher employment-related costs, higher maintenance and operating supply costs, and higher self-insurance expenses. The increase in SG&A expense for the quarter reflects an increase in operating supplies associated with the new e-commerce initiative and general park infrastructure improvements, offset slightly by a reduction in litigation expenses and costs for SEC compliance matters related to Special Meeting requests in the third quarter of 2011.

For the current quarter, Adjusted EBITDA decreased to $292.3 million from $309.7 million for the fiscal third quarter of 2011. The $17.4 million decrease in Adjusted EBITDA was due to the shift in operating days during the quarter. On a same week basis, Adjusted EBITDA would have increased $11.3 million due to incremental revenues resulting from the introduction of new premium benefit offerings, which contributed to increased average guest per capita spending, as well as an increase in attendance in the quarter. Partially offsetting these gains on a same week basis were higher park-level operating costs during the period related to park pre-opening and off-season maintenance projects and increases in costs to support 2012 initiatives, including a new e-commerce platform and infrastructure improvements. For additional information regarding Adjusted EBITDA, including how we define Adjusted EBITDA, why we believe it provides useful information, and for a reconciliation to net income, see pages 33-34.










38

Twelve Months Ended September 30, 2012 -

The fiscal twelve-month period ended September 30, 2012, consisted of a 53-week period and included a total of 2,416 operating days compared with 52 weeks and 2,381 operating days for the fiscal twelve-month period ended September 25, 2011.

The following table presents key financial information for the twelve months ended September 30, 2012 and September 25, 2011:
  Twelve months ended Twelve months ended Increase (Decrease)
  9/30/2012 9/25/2011 $ %
  (53 weeks) (52 weeks)    
  (Amounts in thousands)
Net revenues $1,084,094
 $1,013,316
 $70,778
 7.0%
Operating costs and expenses 701,915
 650,925
 50,990
 7.8%
Depreciation and amortization 128,136
 126,382
 1,754
 1.4%
Loss on impairment of goodwill and other intangibles —
 903
 (903) N/M
Loss on impairment/retirement of fixed assets 25,719
 63,509
 (37,790) N/M
Operating income $228,324
 $171,597
 $56,727
 33.1%
N/M - Not meaningful        
Other Data:        
Adjusted EBITDA $393,612
 $366,376
 $27,236
 7.4%
Adjusted EBITDA margin 36.3% 36.2% —
 0.2%
Attendance 23,961
 23,135
 826
 3.6%
Per capita spending $41.44
 $39.91
 $1.53
 3.8%
Out-of-park revenues $119,460
 $114,258
 5,202
 4.6%

Net revenues totaled $1,084.1 million for the twelve months ended September 30, 2012, increasing $70.8 million, from $1,013.3 million for the trailing twelve months ended September 25, 2011. The increase in revenues was due to an increase in attendance of 826,000 visits, or 4%, an increase in average in-park per capita spending of $1.53, or 4%, and an increase in out-of-park revenues of $5.2 million, or 5%. The attendance increase was due to an increase in season pass visitation as well as the effect of the extra operating days in the period. The increase in average in-park guest per capita spending is primarily due to new premium benefit offerings and the positive impact from new customer messaging and dynamic pricing. Out-of-park revenues increased due to our hotel properties and due to an increase in fees generated by our new e-commerce initiatives. The increase in revenues was also positively affected by the additional operating days in the current fiscal period.

When comparing the two twelve-month periods, operating costs and expenses increased $51.0 million, or 8%, to $701.9 million in 2012 from $650.9 million in 2011. The increase in operating costs and expenses was the net result of a $5.2 million increase in cost of goods sold, a $33.2 million increase in operating expenses and an increase of $12.6 million in selling, general and administrative costs. The increase in operating expenses is primarily attributable to higher employment related expenses of $15 million, $6 million of higher maintenance costs, $1 million in higher insurance costs, and $5 million of higher operating supply costs. The increase in wages is largely due to increased seasonal labor hours as a result of expanded operating hours at several parks, additional attractions and guest services, and the overall effect of increased attendance. The increase in insurance costs was primarily the result of claim settlements and increases in our reserves based on future estimated claim liabilities. As discussed in the nine- and three-month sections, maintenance costs increased primarily due to the earlier timing of planned off-season projects, as well as an increase in the number of projects designed to add to the guest experience. The increase in operating supply costs relates primarily to an increase in attendance over the past year, as well as incremental costs associated with the new e-commerce platform. The increase in SG&A costs includes $5 million in costs largely related to the launching of several new revenue initiatives for the 2012 season, as well as a $3 million increase in advertising expense as we transitioned to a new advertising agency for 2012. Employment related expenses increased $5 million primarily due to the receipt of a non-recurring payroll tax credit of $2.5 million recorded in the fourth quarter of 2010, as well as an increase in retirement expenses and non-recurring severance payments in the current twelve-month period. The overall increase in costs and expenses also reflects the positive impact of exchange rates on our Canadian operations (approximately $1.6 million) during the twelve-month period ended September 30, 2012.

Depreciation and amortization expense for the trailing-twelve-month periods increased $1.8 million between years due to the increase in capital spending during the current-year period compared with the prior year. During the twelve months ended September 30, 2012, we recognized $0.7 million in non-cash charges for the retirement of assets in the normal course of business. Additionally, we recorded a non-cash charge of $25.0 million for the partial impairment of operating and non-operating fixed

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assets at Wildwater Kingdom during the third quarter in 2012. This compares to a non-cash charges recognized during the twelve-month period ended September 25, 2011 of $62.0 million at California's Great America for the partial impairment of its fixed assets and $1.5 million for asset retirements across all properties. Additionally, a non-cash charge of $0.9 million was recorded during the fourth quarter of 2010 for the partial impairment of trade-names originally recorded at the time of the PPI acquisition. It is important to note that each of our parks produces positive cash flow, and that trade-name write-downs and fixed asset impairment losses do not affect cash, Adjusted EBITDA or liquidity.

After depreciation, amortization, loss on impairment of the trade-names, loss on impairment / retirement of fixed assets, and all other non-cash costs, operating income for the twelve months ended September 30, 2012 increased $56.7 million to $228.3 million compared with $171.6 million for the same period a year ago.

Interest expense for the twelve month period ended September 30, 2012 decreased $54.6 million to $116.4 million from $171.0 million for the prior twelve month period ended September 25, 2011. As mentioned in the nine-month discussion above, interest expense decreased primarily due to an approximate 300 bps decline in our effective interest rate. The decline in the effective interest rate is primarily due to lower fixed rates of LIBOR in debt associated derivative contracts, which declined from 5.62% in 2011 to 2.48% in 2012.

The net effect of our swaps during the period was a non-cash benefit to earnings of $10.9 million, representing an increase of $12.7 million from the same period ended September 25, 2011. This non-cash benefit reflects gains from marking the ineffective and de-designated swaps to market, offset somewhat by the regularly scheduled amortization of amounts in AOCI related to the swaps and foreign currency losses related to the U.S.-dollar denominated Canadian term loan in the current twelve month period. During the current twelve-month period, we also recognized a $18.7 million net benefit to earnings for unrealized/realized foreign currency gains and losses, $17.5 million of which represents an unrealized foreign currency gain on the U.S.-dollar denominated debt held at our Canadian property.

A provision for taxes of $30.8 million was recorded to account for PTP taxes and the tax attributes of our corporate subsidiaries during the twelve-month period ended September 30, 2012, compared with a net benefit for taxes of $12.4 million during the same twelve-month period a year ago. The variation in the recorded tax provision between periods is due to the higher income subject to tax for the twelve-month period ending September 30, 2012 and the tax benefit of the impairment charge recorded in the previous twelve-month period.

After interest expense and the provision for taxes, net income for the twelve months ended September 30, 2012 was $110.8 million, or $1.98 per diluted limited partner unit, compared with net income of $8.1 million, or $0.15 per diluted limited partner unit, for the twelve months ended September 25, 2011.

It is important to note that due to the timing of the third quarter fiscal close results for the twelve-month period ended September 30, 2012 benefited from an additional week (53 weeks) compared to the twelve-month period ended September 25, 2011 (52 weeks). Comparing the twelve-month periods for both 2012 and 2011 on a 53-week basis, net revenues would have been up $56.2 million, or 5%, on increases in attendance, in-park guest per capita spending and out-of-park revenues. On a comparable 53-week basis, attendance would have increased 479,000 visits, due to an increase in season pass attendance, and in-park per capita spending would have increased $1.56, or 4%, primarily due to new premium benefit offerings and the positive impact of new customer messaging and dynamic pricing. Over that same comparable basis, out-of-park revenues would have increased by approximately $3.5 million, or 3%.

On a comparable 53-week basis, operating costs and expenses would have increased approximately $40.3 million, or 6%, on a $4.2 million increase in cost of goods sold, an $25.8 million increase in operating expenses, and $10.4 million increase in SG&A costs. The overall increase in costs and expenses also reflects the favorable impact of exchange rates on our Canadian operations (approximately $1.6 million) during the period. The increase in cost of goods sold is consistent with anticipated cost increases associated with our efforts to improve the quality of food and other product offerings at the parks in 2012. Consistent with our nine- and three-month discussions above, operating expenses for the twelve-month period increased as a result of higher employment-related costs, higher maintenance and operating supply costs, and higher self-insurance expenses. The higher employment-related costs reflect normal merit increases, increases in health-related benefit costs, an overall increase in seasonal labor hours as a result of expanded operating hours at several parks, additional attractions and guest services, the overall effect of increased attendance, and non-recurring severance payments. Employment related costs also increased as result of the non-recurring payroll tax credit of $2.5 million recorded in the fourth quarter of 2010. The higher maintenance costs in the current-year twelve-month period relate primarily to the earlier timing of planned off-season projects, which was possible as a result of the mild early-season weather in 2012. The increase in operating supplies was driven by higher attendance and new initiatives to expand or enhance live entertainment at the parks, as well as incremental costs associated with our new e-commerce platform. The increase in public liability and workers compensation expense was the result of a claim settlement in the first quarter of 2012

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and increases in our reserves based on management's estimates of future claims. The higher SG&A costs reflect incremental costs associated with the launching of several new revenue initiatives for the 2012 season, including the new e-commerce platform, general park infrastructure improvements, and an increase in advertising expenses as we transitioned to a new advertising agency for 2012. These increases in SG&A costs were somewhat offset by a reduction in litigation expenses and costs for SEC compliance matters related to Special Meeting requests in 2011.

For the twelve-month period ended September 30, 2012, Adjusted EBITDA increased to $393.6 million compared with $366.4 million for the twelve months ended September 25, 2011, while our Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) increased slightly to 36.3% from 36.2% a year ago. A portion of this increase in Adjusted EBITDA was due to the extra week in the current fiscal twelve-month period. On a same-week basis, Adjusted EBITDA would have been up $23.4 million, or 6%, year over year, due to revenue growth driven by increased attendance and the strong 2011 fourth quarter operating performance. These gains were offset somewhat by incremental operating costs associated with the higher attendance and new operating initiatives for 2012. For the comparable twelve-month periods, our Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) would have increased 30 bps to 36.3% from 36.0% last year. For additional information regarding Adjusted EBITDA, including how we define Adjusted EBITDA, why we believe it provides useful information, and for a reconciliation to net income, see pages 33-34.
October 2012 -

Based on preliminary results through the end of October, revenues for the first ten months of the year increased approximately $37 million to $1,036 million from $999 million for the same period a year ago. The revenue increase is the result of a 4% increase in average in-park guest per capita spending to $42.00 and attendance levels that were comparable with last year's record results (22.7 million visits). Out-of-park revenues of approximately $108 million through October were also comparable with this time last year.

Liquidity and Capital Resources:
With respect to both liquidity and cash flow, we ended the thirdfirst quarter of 20122013 in sound condition. The negative working capital ratio (current assetsliabilities divided by current liabilities)assets) of 1.01.4 at September 30, 2012March 31, 2013 reflects the impact of our seasonal business. Cash, receivables and inventories are at normal seasonal levels and credit facilities are in place to fund current liabilities.

In July 2010, we issued $405 million of 9.125% senior unsecured notes, maturing in 2018, in a private placement, including $5.6 million of Original Issue Discount (OID) to yield 9.375%. Concurrently with this offering, we entered into a new $1,435 million credit agreement (the "2010 Credit Agreement"), which included a $1,175 million senior secured term loan facility and a $260 million senior secured revolving credit facility. The net proceeds from the offering of the notes, along with borrowings under the 2010 Credit Agreement, were used to repay in full all amounts outstanding under our previous credit facilities.

In February 2011, we amended the 2010 Credit Agreement (as so amended, the "Amended 2010 Credit Agreement") and extended the maturity date of the U.S. term loan portion of the credit facilities by one year. Under the Amended 2010 Credit Agreement, the extended U.S. term loan iswas scheduled to mature in December of 2017 and bearsbore interest at a rate of LIBOR plus 300 bps, with a LIBOR floor of 100 bps.
The Amended 2010 Credit Agreement also includesincluded a $260 million revolving credit facility. Under the agreement, the Canadian portion of the revolving credit facility has a limit of $15 million. U.S. denominated loans made under the revolving credit facility bear interest at a rate of LIBOR plus 400 bps (with no LIBOR floor). Canadian denominated loans made under the Canadian portion of the facility also bear interest at a rate of LIBOR plus 400 bps (with no LIBOR floor). The revolving credit facility, which matureswas scheduled to mature in July of 2015, also providesprovided for the issuance of documentary and standby letters of credit.

In May 2012, the Partnership prepaidMarch 2013,we issued $16500 million of long-term debt to meet its obligation5.25% senior unsecured notes, maturing in 2021, in a private placement, with no OID. Concurrently with this offering, we entered into a new $885 million credit agreement (the "2013 Credit Agreement"), which included a $630 million senior secured term loan facility and a $255 million senior secured revolving credit facility. The terms of the senior secured term loan facility include a maturity date of March 15, 2020 and an interest rate of LIBOR plus 250 bps with a LIBOR floor of 75 bps. The term loan amortizes at $6.3 million annually. The net proceeds from the notes and borrowings under the Excess Cash Flow ("ECF") provision2013 Credit Agreement were used to repay in full all amounts outstanding under the previous credit facilities. The facilities provided under the 2013 Credit Agreement are collateralized by substantially all of the assets of the Partnership.

Terms of the 2013 Credit Agreement. AsAgreement include a resultrevolving credit facility of this prepayment, as well as additional optional long-term debt prepayments made in August 2011 and September 2012a combined $255 million. Under the 2013 Credit Agreement, the Canadian portion of the revolving credit facility has a limit of $1815 million. U.S. denominated and Canadian denominated loans made under the revolving credit facility bear interest at a rate of LIBOR plus 225 bps (with no LIBOR floor). The revolving credit facility is scheduled to mature in March 2018 and also provides for the issuance of documentary and standby letters of credit. The 2013 Credit Agreement requires the Partnership to pay a commitment fee of $9 million50, respectively, bps per annum on the Company has no scheduled term-debt principal payments untilunused portion of the first quarter of 2015.credit facilities.
At the end of the quarter, we had a total of $1,131.1$630.0 million of variable-rate term debt (before giving consideration to fixed-rate interest rate swaps), $400.7$901.3 million of fixed-rate debt (including OID), no$96.0 million outstanding borrowings under our revolving

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credit facility, and cash on hand of $96.1$10.0 million. After letters of credit, which totaled $16.5$16.4 million at September 30, 2012March 31, 2013, we had $243.5$142.6 million of available borrowings under the revolving credit facility under the Amended 20102013 Credit Agreement.

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Our $405 million of senior unsecured notes require semi-annual interest payments in February and August, with the principal due in full on August 1, 2018. The notes may be redeemed, in whole or in part, at any time prior to August 1, 2014 at a price equal to 100% of the principal amount of the notes redeemed plus a “make-whole” premium together with accrued and unpaid interest, if any, to the redemption date. Thereafter, the notes may be redeemed, in whole or in part, at various prices depending on the date redeemed. Prior to August 1, 2013, up to 35% of the notes may be redeemed with the net cash proceeds of certain equity offerings at 109.125%. Our $500 million of senior unsecured notes pay interest semi-annually in March and September, with the principal due in full on March 15, 2021. The notes may be redeemed, in whole or in part, at any time prior to March 15, 2016 at a price equal to 100% of the principal amount of the notes redeemed plus a “make-whole” premium together with accrued and unpaid interest, if any, to the redemption date. Thereafter, the notes may be redeemed, in whole or in part, at various prices depending on the date redeemed. Prior to March 15, 2016, up to 35% of the notes may be redeemed with the net cash proceeds of certain equity offerings at 105.25%.
In order to maintain fixed interest costs on a portion of our domestic term debt, in September 2010 we entered into several interest rateforward-starting swap agreements ("September 2010 swaps") to effectively convert a total of $600$600 million of variable-rate debt to fixed rates beginning in October 2011. As a result of the February 2011 amendment to our credit agreement,the 2010 Credit Agreement, the LIBOR floor on the term loan portion of ourits credit facilities decreased to 100 bps from 150 bps, causing a mismatch in critical terms of the September 2010 swaps and the underlying debt. Because of the mismatch of critical terms, we determined the September 2010 swaps, which were originally designated as cash flow hedges, were no longer highly effective, resulting in the de-designation of the September 2010 swaps as of the end of February 2011. As a result of this ineffectiveness, gains of $7.2 million recorded in AOCI through the date of de-designation are being amortized through December 2015.
In order to monetize the difference in the LIBOR floors, in March 2011, we entered into several additional forward-starting basis-rate swap agreements ("March 2011 swaps") that, when combined with the September 2010 swaps, effectively converted $600$600 million of variable-rate debt to fixed rates beginning in October 2011. The September 2010 swaps and the March 2011 swaps, were jointly designated as cash flow hedges, maturing in December 2015 and had fixed LIBOR at a weighted average rate of 2.46%. For the period that the September 2010 swaps were de-designated, their fair value decreased by $3.3 million, the offset of which have beenwas recognized as a direct charge to earnings and recorded to “Net effect of swaps” on the consolidated statement of operations along with the regular amortization of “Other comprehensive income (loss)” balances related to these swaps. No other ineffectiveness related to these swaps was recorded in any period presented.
In May 2011, we entered into four additional forward-starting basis-rate swap agreements ("May 2011 swaps") that effectively converted another $200 million of variable-rate debt to fixed rates beginning in October 2011. These swaps, which were designated as cash flow hedges, mature in December 2015 and fixed LIBOR at a weighted average rate of 2.54%.
As a result of the 2013 Credit Agreement, the previously described swaps were de-designated as the spreads of the 2013 Credit Agreement decreased to 75 bps from 100 bps in the Amended 2010 Credit Agreement. The May 2011 swaps remain de-designated as the amount of variable rate debt decreased to $630 million, and accordingly, the May 2011 swaps are now over hedged. On March 4, 2013, we entered into several forward-starting swap agreements ("March 2013 swaps") that were not designated as a cash flow hedge on that date. On March 6, 2013, the March 2013 swaps were combined with the September 2010 swaps and the March 2011 swaps, and designated as cash flow hedges, effectively converting $600 million of variable-rate debt to fixed rates. The September 2010 swaps, the March 2011 swaps, and the March 2013 swaps were jointly designated as cash flow hedges, mature in December 2015 and fix LIBOR at a weighted average rate of 2.46%.
In May 2011, we entered into four additional forward-starting basis-rate swap agreements ("May 2011 swaps") that effectively convert another $200 million of variable-rate debt to fixed rates beginning in October 2011. These swaps, which have been designated as cash flow hedges, mature in December 2015 and fix LIBOR at a weighted average rate of 2.54%2.331%. TheAt the time of the de-designation, the fair market value of all $800the September 2010 swaps, March 2011 swaps, and March 2013 swaps was $23.8 million, which will be amortized out of forward-starting swap agreements atAOCI into expense in "Net effect of swaps" in the unaudited condensed consolidated statements of operations and comprehensive incomethrough December 2015. At the time of the de-designation, the fair market value of the May 2011 swaps was $7.8 million and was immediately recognized into expense in "Net effect of swaps" in the unaudited condensed consolidated statements of operations.
At March 31, 2013, the fair market value of the September 30, 20122010 swaps, the March 2011 swaps and the March 2013 swaps was a liability of $34.723.4 million, which was recorded in "Derivative Liability"“Derivative Liability” on the condensed consolidated balance sheet. The May 2011 swaps had a fair market value of $7.6 million as of March 31, 2013 and was recorded in “Derivative Liability” on the condensed consolidated balance sheet.


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The following table presents our September 2010 swaps, March 2011 swaps, and May 2011 swaps, and March 2013 swaps which became effective on October 1, 2011 and mature December 15, 2015, along with their notional amounts and their effective fixed interest rates.
($'s in thousands)Forward-Starting Interest Rate Swaps
 Notional Amounts LIBOR Rate
 $200,000
 2.40%
 75,000
 2.43%
 50,000
 2.42%
 150,000
 2.55%
 50,000
 2.42%
 50,000
 2.55%
 25,000
 2.43%
 50,000
 2.54%
 30,000
 2.54%
 70,000
 2.54%
 50,000
 2.54%
Total $'s / Average Rate$800,000
 2.48%
In 2006, we entered into several fixed-rate interest rate swap agreements totaling $1.0 billion. The weighted average fixed-LIBOR rate on these interest rate swaps, which matured on October 1, 2011, was 5.6%. Based upon our scheduled quarterly regression analysis testing of the effectiveness for the accounting treatment of these swaps, as well as changes in the forward interest rate yield curves used in that testing, the swaps were deemed to be ineffective beginning in October 2009 and continued to be deemed ineffective through their maturity. This resulted in the swaps not qualifying for hedge accounting during the fourth quarter of 2009 and through 2010 and the first three quarters of 2011.
In 2007, we entered into two cross-currency swap agreements, which matured in February 2012 and effectively converted $268.7 million of term debt at the time, and the associated interest payments, from U.S. dollar denominated debt at a rate of LIBOR plus

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200 bps to 6.3% fixed-rate Canadian dollar denominated debt. As a result of paying down the underlying Canadian term debt with net proceeds from the sale of surplus land near Canada’s Wonderland in August 2009, the notional amounts of the underlying debt and the cross-currency swaps no longer matched. Because of the mismatch of the notional amounts, we determined the swaps were no longer highly effective going forward, resulting in the de-designation of the swaps as of the end of August 2009.
Based on the change in currency exchange rates from the time we originally entered into the cross-currency swap agreements in 2007, the termination liability of the swaps had increased steadily over time. In order to protect ourselves from further downside risk to the swaps' termination value, in May 2011 we entered into several foreign currency swap agreements to fix the exchange rate on 50% of the liability. In July 2011, we fixed the exchange rate on another 25% of the swap liability, leaving only 25% exposed to further fluctuations in currency exchange rates. In February 2012, these swap agreements were settled for $50.5 million.
In addition to other covenants and provisions, including those discussed below, the Amended 2010 Credit Agreement contains an initial three-year requirement (from July 2010) that at least 50% of our aggregate term debt and senior notes be subject to either a fixed interest rate or interest rate protection. As of September 30, 2012, we were in compliance with this requirement.
The following table presents fixed-rate swaps that matured on October 1, 2011. The table also presents our cross-currency swaps that matured on February 15, 2012 and their notional amounts and interest rates as of their maturity date.
($'s in thousands)Interest Rate Swaps Cross-currency Swaps
 Notional Amounts LIBOR Rate Notional Amounts Interest Rate
 $200,000
 5.64% $255,000
 7.31%
 200,000
 5.64% 150
 9.50%
 200,000
 5.64%    
 200,000
 5.57%    
 100,000
 5.60%    
 100,000
 5.60%    
Total $'s / Average Rate$1,000,000
 5.62% $255,150
 7.31%
        
 Interest Rate Swaps
($'s in thousands)Derivatives designated as hedging instruments Derivatives not designated as hedging instruments
 Notional Amounts LIBOR Rate Notional Amounts LIBOR Rate
 $200,000
 2.27% 50,000
 2.54%
 75,000
 2.30% 30,000
 2.54%
 50,000
 2.29% 70,000
 2.54%
 150,000
 2.43% 50,000
 2.54%
 50,000
 2.29%    
 50,000
 2.47%    
 25,000
 2.30%    
Total $'s / Average Rate$600,000
 2.33% $200,000
 2.54%

The Amended 20102013 Credit Agreement requires us to maintain specified financial ratios, which if breached for any reason, including a decline in operating results due to economic or weather conditions, could result in an event of default under the agreement. The most critical of these ratios is the Consolidated Leverage Ratio, which is measured on a trailing-twelve-month quarterly basis. At the end of the thirdfirst quarter of 2012,2013, this ratio was set at 6.00x6.25x consolidated total debt (excluding the revolving debt)-to-consolidated EBITDA. The ratio will remain at that level through the end of the first quarter in 2014 and will decrease each second quarter beginning in the second quarter of 2014. Based on our trailing-twelve-month results ending September 30, 2012March 31, 2013, our Consolidated Leverage Ratio was 3.89x, providing $138.3148.2 million of EBITDA cushion on the ratio at the end of the thirdfirst quarter. We were in compliance with all other covenants under the Amended 20102013 Credit Agreement as of September 30, 2012March 31, 2013.
The Amended 20102013 Credit Agreement allows restricted payments of up to $20$60 million annually so long as no default or event of default has occurred and is continuing. These restricted payments are not subject to any specific covenants. In 2012, additionalAdditional restricted payments are allowed to be made based on an excess-cash-flow formula, should our pro-forma Consolidated Leverage Ratio be less than or equal to 4.50x,5.0x, measured on a trailing-twelve-month quarterly basis.
At March 31, 2013, the notes maturing in 2018 have more restrictive covenants than the 2021 notes. The terms of the indenture governing our 2018 notes permit us to make restricted payments of $20 million annually. Our ability to make additional restricted payments in 20122013 and beyond is permitted should our trailing-twelve-month Total-Indebtedness-to-Consolidated-Cash-Flow Ratio be less than or equal to 4.75x, measured on a quarterly basis.
In accordance with these debt provisions, on August 9, 2012,February 27, 2013, we announced the declaration of a distribution of $0.40$0.625 per limited partner unit, which was paid on September 15, 2012,March 25, 2013, and on November 6, 2012,May 8, 2013 we announced the declaration of a distribution of $0.40$0.625 per limited partner unit, payable DecemberJune 17, 2012, which will bring our total distributions paid in 2012 to $1.60 per limited partner unit.2013.
Existing credit facilities and cash flows from operations are expected to be sufficient to meet working capital needs, debt service, partnership distributions and planned capital expenditures for the foreseeable future.




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Off Balance Sheet Arrangements:
We had $16.5$16.4 million in letters of credit, which are primarily in place to backstop insurance arrangements, outstanding on our revolving credit facility as of September 30, 2012March 31, 2013. We have no other significant off-balance sheet financing arrangements.


Forward Looking Statements
Some of the statements contained in this report (including the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section) that are not historical in nature are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements as to our expectations, beliefs and strategies regarding the future. These forward-looking statements may involve risks and uncertainties that are difficult to predict, may be beyond our control and could cause actual results to differ materially from those described in such statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can

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give no assurance that such expectations will prove to be correct. Important factors, including those listed under Item 1A in the Company’s Annual Report on Form 10-K, could adversely affect our future financial performance and cause actual results to differ materially from our expectations.


ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to market risks from fluctuations in interest rates, and to a lesser extent on currency exchange rates on our operations in Canada and, from time to time, on imported rides and equipment. The objective of our financial risk management is to reduce the potential negative impact of interest rate and foreign currency exchange rate fluctuations to acceptable levels. We do not acquire market risk sensitive instruments for trading purposes.
We manage interest rate risk through the use of a combination of fixed-rate long-term debt, interest rate swaps that fix a portion of our variable-rate long-term debt, and variable-rate borrowings under our revolving credit facility. Translation exposures with regard to our Canadian operations are not hedged.
For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the change in fair value of the derivative instrument is reported as a component of “Other comprehensive income (loss)” and reclassified into earnings in the period during which the hedged transaction affects earnings. Changes in fair value of derivative instruments that do not qualify as effective hedging activities are reported as “Net effect of swaps” in the consolidated statement of operations. Additionally, the “Other comprehensive income (loss)” related to interest rate swaps that become ineffective is amortized over the remaining life of the interest rate swap, and reported as a component of “Net effect of swaps” in the consolidated statement of operations.
As of March 31, 2013, we had $901.3 million of fixed-rate senior unsecured notes and $630 million of variable-rate term debt. After considering the impact of interest rate swap agreements, approximately $1.2 billionvirtually all of our outstanding long-term debt represents fixed-rate debt and approximately $331.1 million represents variable-rate debt. Assuming an average balance on our revolving credit borrowings of approximately $61$50 million, a hypothetical 100 bps increase in 30-day LIBOR on our variable-rate debt, after the fixed-rate swap agreements, would lead to an increasea decrease of approximately $2.5$0.5 million in annual cash interest costs.
A uniform 10% strengthening of the U.S. dollar relative to the Canadian dollar would result in a $5.4$4.4 million decrease in annual operating income.

ITEM 4. CONTROLS AND PROCEDURES

(a)Evaluation of Disclosure Controls and Procedures - 
The Partnership maintains a system of controls and procedures designed to ensure that information required to be disclosed by the Partnership in its reports under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified by the Commission and that such information is accumulated and communicated to the Partnership’s management, including the Chief Executive Officer and the Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. As of September 30, 2012March 31, 2013, the PartnershipPartnership's management has evaluated the effectiveness of the design and operation of itsthe Partnership's disclosure controls and procedures under supervision of management, includingand with the participation of the Partnership's Chief Executive Officer and Chief Financial Officer. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Partnership's disclosure controls and procedures are effective.were effective as of March 31, 2013.
 






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(b)Changes in Internal Control Over Financial Reporting -
As disclosed in Amendment No. 2 to the Partnership's Form 10-K/A for the fiscal year ended December 31, 2012, in connection with restating the Partnership's consolidated financial statements therein, management identified a material weakness in internal control over financial reporting related to the Partnership's fixed assets, resulting in a conclusion that the Partnership's internal control over financial reporting was not effective as of December 31, 2012. Remediation of this material weakness in internal control over financial reporting was accomplished through the conversion of all composite assets to the unit method of depreciation as of January 1, 2013. The conversion to the unit method eliminates the concept of normal vs. unusual as any and all asset retirements with a remaining net book value will be reflected in the Consolidated Statements of Operations and Comprehensive Income.
There were no other changes in the Partnership’s internal controlscontrol over financial reporting in connection with its 2012that occurred during the fiscal quarter ended thirdMarch 31, 2013-quarter evaluation, or subsequent to such evaluation, that have materially affected, or are reasonably likely to materially affect, the Partnership’s internal control over financial reporting.


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PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Jacob T. Falfas vs. Cedar Fair, L.P.

On July 23, 2010, Jacob T. (Jack) Falfas, the former Chief Operating Officer, filed a demand for private arbitration as provided by his employment agreement. In that demand, Mr. Falfas disputed the Partnership's position that he had resigned in June 2010, alleging instead that his employment with the Partnership was terminated without cause. That dispute went to private arbitration, and on February 28, 2011, an arbitration panel ruled 2-to-1 in favor of Mr. Falfas finding that he did not resign but was terminated without cause. Rather than fashioning a remedy consistent with the employment agreement, the panel ruled that Mr. Falfas should be reinstated. The Partnership believed that the arbitrators exceeded their authority by creating a remedy not legally available to Mr. Falfas under his contract with Cedar Fair. On March 21, 2011, the Partnership filed an action  in Erie County Court of Common Pleas (Case No. 2011 CV 0217) seeking  to have the award modified or vacated. On March 22, 2011, Mr. Falfas commenced a related action in the Erie County Court of Common Pleas  (Case No. 2011 CV 0218) demanding enforcement of the arbitration ruling.  The two actions were combined into Case No. 2011 CV 0217, before Judge Roger E. Binette. On February 22, 2012 the Erie County Common Pleas Court issued a ruling partially vacating the arbitration award and declaring that Mr. Falfas was not entitled to reinstatement of his employment.  The ruling also provided that in accord with paragraph 2 of the arbitration award Mr. Falfas was entitled to certain back pay and other benefits under his 2007 Amended and Restated Employment Agreement as if the employment relationship had not been severed. In March of 2012 Mr. Falfas and the Company both filed appeals of the Court's ruling with the Ohio Sixth District Court of Appeals in Toledo, Ohio. The parties participated in mediation on May 7, 2012 at the direction ofOn April 19, 2013 the Court of Appeals.Appeals issued a ruling reversing the Erie County Common Pleas Court's  order regarding the reinstatement of Mr. Falfas' employment and  affirming the order regarding back pay and other benefits and remanding the case back to the Erie County Common Pleas Court for further proceedings.  The mediation did not result inCompany has until June 3, 2013 to file a settlement. As a resultnotice of appeal with the matter will now proceed through the normal appeal process which typically takes six to nine months to complete. Briefs have been filed and the parties are awaiting scheduling of oral argument.Ohio Supreme Court.  The Partnership believes the liability recorded as of September 30, 2012March 31, 2013 to be adequate and does not expect the arbitration ruling or the court order to materially affect its financial results in future periods.


ITEM 1A. RISK FACTORS
There have been no material changes to the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2011.2012.

ITEM 5. OTHER INFORMATION

TheOn May 8, 2013, the Partnership usesannounced that it had identified a historical classification error in the Partnership's initial determination of whether a specific asset retired under the composite method of depreciation methodwas normal or unusual. The error resulted in the overstatement of Income before taxes of $8.8 million for the groupperiod ended December 31, 2011.

Under the composite method of depreciation, no gain or loss is recognized on normal retirements of composite assets. Instead the net book value after salvage of a retired asset reduces accumulated depreciation for the composite group. Abnormal or unusual retirements of composite assets acquiredwould result in the recognition of a gain or loss. The error resulted in the Partnership's application of its qualitative policy used to determine whether an asset retirement is normal or unusual. The asset retirement being restated was originally classified as normal, thus reducing accumulated depreciation. Management identified that the Partnership had failed to consider whether the specific asset had a whole in 1983,substantial net book value and/or if the retirement caused a deviation from the estimated composite depreciation survivor curve as well as for groupsother minor qualitative issues.

The restatement amount of assets$8.8 million is recorded in each subsequent business acquisition. Upon the normalLoss on impairment / retirement of an asset within a composite group, the Partnership's practice generally has been to extend the depreciable life of that composite group beyond its original estimated useful life. In conjunction with the preparation of the Partnership's financial statements for the interim period ended July 1, 2012, management determined that this methodology was not appropriate. As a result, the Partnership revised the useful lives of its composite groups to their original estimated useful life (ascribed upon acquisition) and corrected previously computed depreciation expense (and accumulated depreciation). Management evaluated the amount and nature of these adjustments and concluded that they were not material to either the Partnership's prior annual or quarterly financial statements. Nonetheless, the historical financial statement amounts included in this filing have been corrected for this error. The Partnership expects to likewise correct previously presented historical financial statements to be included in future filings, including the annual financial statements to be includedfixed assets, net in the Partnership's Annual Report on Form 10-K for10-K/A filing to correct the year ending December 31, 2012.previous error.

ForAs disclosed in the year ended December 31, 2011Partnership's prior filings, the correctionPartnership had determined that it was preferable to change from the composite method of depreciation to the unit method of depreciation with the change effective January 1, 2013. The Partnership believes that pursuant to generally accepted accounting principles, changing from the composite method of depreciation to the unit method of depreciation is a change in accounting estimate that is effected by a change in accounting principle, which should be accounted for prospectively. The change to the unit method of depreciation eliminates the qualitative judgment needed to determine whether an asset retirement is normal or unusual, as the net book value of all retirements will decrease net income (loss) by $1.4 millionbe recorded in the Consolidated Statements of Operations and the provision (benefit) for taxes will decrease by $0.6 million.  For the 2010 annual financial statements, the correction will decrease net income (loss) by $1.5 million and the provision (benefit) for taxes will decrease by $0.6 million.  For the 2009 annual financial statements, the correction will decrease net income (loss) by $1.2 million and the provision (benefit) for taxes will decrease $0.4 million.  The balance sheet as of December 31, 2011 has already been corrected in this Form 10-Q.Comprehensive Income.



4542


ITEM 6. EXHIBITS
 
Exhibit (4.1)
Rights Agreement between Cedar Fair, L.P. and American Stock Transfer and Trust Co., LLC, dated April 5, 2010. Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on April 6, 2010.

Exhibit (4.2)
Indenture, by and among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and The Bank of New York Mellon, as trustee, dated as of July 29, 2010 (including form of 9.125% Senior Notes due 2018). Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (4.3)
Registration Rights Agreement, among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and J.P. Morgan Securities Inc., as representative of the initial purchasers named therein, dated July 29, 2010. Incorporated herein by reference to Exhibit 4.2 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (10.1)Cedar Fair, L.P. Amended and Restated Executive Severance Plan dated July 18, 2007. Incorporated herein by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q (File No. 001-09444) filed on August 3, 2007.
Exhibit (31.1)  Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (31.2)  Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (32)  Certifications Pursuant to 18 U.S.C. 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
  
Exhibit (101)  The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012March 31, 2013 formatted in Extensible Business Reporting Language (XBRL): (i) The Condensed Consolidated Statements of Income, (ii) the Condensed Consolidated Balance Sheets, (iii) The Condensed Consolidated Statements of Cash Flow, (iv) the Condensed Consolidated Statement of Equity and, (v) related notes
 

4643

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
  CEDAR FAIR, L.P. 
  (Registrant) 
    
  By Cedar Fair Management, Inc. 
  General Partner 
   
Date:November 7, 2012May 10, 2013/s/ Matthew A. Ouimet
  Matthew A. Ouimet
  President and Chief Executive Officer
    
Date:November 7, 2012May 10, 2013/s/ Brian C. Witherow
  Brian C. Witherow
  Executive Vice President and
  Chief Financial Officer

 

4744

INDEX TO EXHIBITS
 
Exhibit (4.1)
Rights Agreement between Cedar Fair, L.P. and American Stock Transfer and Trust Co., LLC, dated April 5, 2010. Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on April 6, 2010.

Exhibit (4.2)
Indenture, by and among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and The Bank of New York Mellon, as trustee, dated as of July 29, 2010 (including form of 9.125% Senior Notes due 2018). Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (4.3)
Registration Rights Agreement, among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and J.P. Morgan Securities Inc., as representative of the initial purchasers named therein, dated July 29, 2010. Incorporated herein by reference to Exhibit 4.2 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (10.1)Cedar Fair, L.P. Amended and Restated Executive Severance Plan dated July 18, 2007. Incorporated herein by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q (File No. 001-09444) filed on August 3, 2007.
Exhibit (31.1)  Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (31.2)  Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (32)  Certifications Pursuant to 18 U.S.C. 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
  
Exhibit (101)  The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012March 31, 2013 formatted in Extensible Business Reporting Language (XBRL): (i) The Condensed Consolidated Statements of Income, (ii) the Condensed Consolidated Balance Sheets, (iii) The Condensed Consolidated Statements of Cash Flow, (iv) the Condensed Consolidated Statement of Equity and, (v) related notes
 

4845
s in thousands)		Interest Rate Swaps Cross-currency SwapsDerivatives designated as hedging instruments Derivatives not designated as hedging instruments
Notional Amounts LIBOR Rate Notional Amounts Interest RateNotional Amounts LIBOR Rate Notional Amounts LIBOR Rate
$200,000
 5.64% $255,000
 7.31%$200,000
 2.27% 50,000
 2.54%
200,000
 5.64% 150
 9.50%75,000
 2.30% 30,000
 2.54%
200,000
 5.64%    50,000
 2.29% 70,000
 2.54%
200,000
 5.57%    150,000
 2.43% 50,000
 2.54%
100,000
 5.60%    50,000
 2.29%    
100,000
 5.60%    50,000
 2.47%    
25,000
 2.30%    
Total

The Amended 20102013 Credit Agreement requires us to maintain specified financial ratios, which if breached for any reason, including a decline in operating results due to economic or weather conditions, could result in an event of default under the agreement. The most critical of these ratios is the Consolidated Leverage Ratio, which is measured on a trailing-twelve-month quarterly basis. At the end of the thirdfirst quarter of 2012,2013, this ratio was set at 6.00x6.25x consolidated total debt (excluding the revolving debt)-to-consolidated EBITDA. The ratio will remain at that level through the end of the first quarter in 2014 and will decrease each second quarter beginning in the second quarter of 2014. Based on our trailing-twelve-month results ending September 30, 2012March 31, 2013, our Consolidated Leverage Ratio was 3.89x, providing $138.3148.2 million of EBITDA cushion on the ratio at the end of the thirdfirst quarter. We were in compliance with all other covenants under the Amended 20102013 Credit Agreement as of September 30, 2012March 31, 2013.
The Amended 20102013 Credit Agreement allows restricted payments of up to $20$60 million annually so long as no default or event of default has occurred and is continuing. These restricted payments are not subject to any specific covenants. In 2012, additionalAdditional restricted payments are allowed to be made based on an excess-cash-flow formula, should our pro-forma Consolidated Leverage Ratio be less than or equal to 4.50x,5.0x, measured on a trailing-twelve-month quarterly basis.
At March 31, 2013, the notes maturing in 2018 have more restrictive covenants than the 2021 notes. The terms of the indenture governing our 2018 notes permit us to make restricted payments of $20 million annually. Our ability to make additional restricted payments in 20122013 and beyond is permitted should our trailing-twelve-month Total-Indebtedness-to-Consolidated-Cash-Flow Ratio be less than or equal to 4.75x, measured on a quarterly basis.
In accordance with these debt provisions, on August 9, 2012,February 27, 2013, we announced the declaration of a distribution of $0.40$0.625 per limited partner unit, which was paid on September 15, 2012,March 25, 2013, and on November 6, 2012,May 8, 2013 we announced the declaration of a distribution of $0.40$0.625 per limited partner unit, payable DecemberJune 17, 2012, which will bring our total distributions paid in 2012 to $1.60 per limited partner unit.2013.
Existing credit facilities and cash flows from operations are expected to be sufficient to meet working capital needs, debt service, partnership distributions and planned capital expenditures for the foreseeable future.




43

Off Balance Sheet Arrangements:
We had $16.5$16.4 million in letters of credit, which are primarily in place to backstop insurance arrangements, outstanding on our revolving credit facility as of September 30, 2012March 31, 2013. We have no other significant off-balance sheet financing arrangements.


Forward Looking Statements
Some of the statements contained in this report (including the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section) that are not historical in nature are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements as to our expectations, beliefs and strategies regarding the future. These forward-looking statements may involve risks and uncertainties that are difficult to predict, may be beyond our control and could cause actual results to differ materially from those described in such statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can

40

give no assurance that such expectations will prove to be correct. Important factors, including those listed under Item 1A in the Company’s Annual Report on Form 10-K, could adversely affect our future financial performance and cause actual results to differ materially from our expectations.


ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to market risks from fluctuations in interest rates, and to a lesser extent on currency exchange rates on our operations in Canada and, from time to time, on imported rides and equipment. The objective of our financial risk management is to reduce the potential negative impact of interest rate and foreign currency exchange rate fluctuations to acceptable levels. We do not acquire market risk sensitive instruments for trading purposes.
We manage interest rate risk through the use of a combination of fixed-rate long-term debt, interest rate swaps that fix a portion of our variable-rate long-term debt, and variable-rate borrowings under our revolving credit facility. Translation exposures with regard to our Canadian operations are not hedged.
For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the change in fair value of the derivative instrument is reported as a component of “Other comprehensive income (loss)” and reclassified into earnings in the period during which the hedged transaction affects earnings. Changes in fair value of derivative instruments that do not qualify as effective hedging activities are reported as “Net effect of swaps” in the consolidated statement of operations. Additionally, the “Other comprehensive income (loss)” related to interest rate swaps that become ineffective is amortized over the remaining life of the interest rate swap, and reported as a component of “Net effect of swaps” in the consolidated statement of operations.
As of March 31, 2013, we had $901.3 million of fixed-rate senior unsecured notes and $630 million of variable-rate term debt. After considering the impact of interest rate swap agreements, approximately $1.2 billionvirtually all of our outstanding long-term debt represents fixed-rate debt and approximately $331.1 million represents variable-rate debt. Assuming an average balance on our revolving credit borrowings of approximately $61$50 million, a hypothetical 100 bps increase in 30-day LIBOR on our variable-rate debt, after the fixed-rate swap agreements, would lead to an increasea decrease of approximately $2.5$0.5 million in annual cash interest costs.
A uniform 10% strengthening of the U.S. dollar relative to the Canadian dollar would result in a $5.4$4.4 million decrease in annual operating income.

ITEM 4. CONTROLS AND PROCEDURES

(a)Evaluation of Disclosure Controls and Procedures - 
The Partnership maintains a system of controls and procedures designed to ensure that information required to be disclosed by the Partnership in its reports under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified by the Commission and that such information is accumulated and communicated to the Partnership’s management, including the Chief Executive Officer and the Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. As of September 30, 2012March 31, 2013, the PartnershipPartnership's management has evaluated the effectiveness of the design and operation of itsthe Partnership's disclosure controls and procedures under supervision of management, includingand with the participation of the Partnership's Chief Executive Officer and Chief Financial Officer. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Partnership's disclosure controls and procedures are effective.were effective as of March 31, 2013.
 






44


(b)Changes in Internal Control Over Financial Reporting -
As disclosed in Amendment No. 2 to the Partnership's Form 10-K/A for the fiscal year ended December 31, 2012, in connection with restating the Partnership's consolidated financial statements therein, management identified a material weakness in internal control over financial reporting related to the Partnership's fixed assets, resulting in a conclusion that the Partnership's internal control over financial reporting was not effective as of December 31, 2012. Remediation of this material weakness in internal control over financial reporting was accomplished through the conversion of all composite assets to the unit method of depreciation as of January 1, 2013. The conversion to the unit method eliminates the concept of normal vs. unusual as any and all asset retirements with a remaining net book value will be reflected in the Consolidated Statements of Operations and Comprehensive Income.
There were no other changes in the Partnership’s internal controlscontrol over financial reporting in connection with its 2012that occurred during the fiscal quarter ended thirdMarch 31, 2013-quarter evaluation, or subsequent to such evaluation, that have materially affected, or are reasonably likely to materially affect, the Partnership’s internal control over financial reporting.


41


PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Jacob T. Falfas vs. Cedar Fair, L.P.

On July 23, 2010, Jacob T. (Jack) Falfas, the former Chief Operating Officer, filed a demand for private arbitration as provided by his employment agreement. In that demand, Mr. Falfas disputed the Partnership's position that he had resigned in June 2010, alleging instead that his employment with the Partnership was terminated without cause. That dispute went to private arbitration, and on February 28, 2011, an arbitration panel ruled 2-to-1 in favor of Mr. Falfas finding that he did not resign but was terminated without cause. Rather than fashioning a remedy consistent with the employment agreement, the panel ruled that Mr. Falfas should be reinstated. The Partnership believed that the arbitrators exceeded their authority by creating a remedy not legally available to Mr. Falfas under his contract with Cedar Fair. On March 21, 2011, the Partnership filed an action  in Erie County Court of Common Pleas (Case No. 2011 CV 0217) seeking  to have the award modified or vacated. On March 22, 2011, Mr. Falfas commenced a related action in the Erie County Court of Common Pleas  (Case No. 2011 CV 0218) demanding enforcement of the arbitration ruling.  The two actions were combined into Case No. 2011 CV 0217, before Judge Roger E. Binette. On February 22, 2012 the Erie County Common Pleas Court issued a ruling partially vacating the arbitration award and declaring that Mr. Falfas was not entitled to reinstatement of his employment.  The ruling also provided that in accord with paragraph 2 of the arbitration award Mr. Falfas was entitled to certain back pay and other benefits under his 2007 Amended and Restated Employment Agreement as if the employment relationship had not been severed. In March of 2012 Mr. Falfas and the Company both filed appeals of the Court's ruling with the Ohio Sixth District Court of Appeals in Toledo, Ohio. The parties participated in mediation on May 7, 2012 at the direction ofOn April 19, 2013 the Court of Appeals.Appeals issued a ruling reversing the Erie County Common Pleas Court's  order regarding the reinstatement of Mr. Falfas' employment and  affirming the order regarding back pay and other benefits and remanding the case back to the Erie County Common Pleas Court for further proceedings.  The mediation did not result inCompany has until June 3, 2013 to file a settlement. As a resultnotice of appeal with the matter will now proceed through the normal appeal process which typically takes six to nine months to complete. Briefs have been filed and the parties are awaiting scheduling of oral argument.Ohio Supreme Court.  The Partnership believes the liability recorded as of September 30, 2012March 31, 2013 to be adequate and does not expect the arbitration ruling or the court order to materially affect its financial results in future periods.


ITEM 1A. RISK FACTORS
There have been no material changes to the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2011.2012.

ITEM 5. OTHER INFORMATION

TheOn May 8, 2013, the Partnership usesannounced that it had identified a historical classification error in the Partnership's initial determination of whether a specific asset retired under the composite method of depreciation methodwas normal or unusual. The error resulted in the overstatement of Income before taxes of $8.8 million for the groupperiod ended December 31, 2011.

Under the composite method of depreciation, no gain or loss is recognized on normal retirements of composite assets. Instead the net book value after salvage of a retired asset reduces accumulated depreciation for the composite group. Abnormal or unusual retirements of composite assets acquiredwould result in the recognition of a gain or loss. The error resulted in the Partnership's application of its qualitative policy used to determine whether an asset retirement is normal or unusual. The asset retirement being restated was originally classified as normal, thus reducing accumulated depreciation. Management identified that the Partnership had failed to consider whether the specific asset had a whole in 1983,substantial net book value and/or if the retirement caused a deviation from the estimated composite depreciation survivor curve as well as for groupsother minor qualitative issues.

The restatement amount of assets$8.8 million is recorded in each subsequent business acquisition. Upon the normalLoss on impairment / retirement of an asset within a composite group, the Partnership's practice generally has been to extend the depreciable life of that composite group beyond its original estimated useful life. In conjunction with the preparation of the Partnership's financial statements for the interim period ended July 1, 2012, management determined that this methodology was not appropriate. As a result, the Partnership revised the useful lives of its composite groups to their original estimated useful life (ascribed upon acquisition) and corrected previously computed depreciation expense (and accumulated depreciation). Management evaluated the amount and nature of these adjustments and concluded that they were not material to either the Partnership's prior annual or quarterly financial statements. Nonetheless, the historical financial statement amounts included in this filing have been corrected for this error. The Partnership expects to likewise correct previously presented historical financial statements to be included in future filings, including the annual financial statements to be includedfixed assets, net in the Partnership's Annual Report on Form 10-K for10-K/A filing to correct the year ending December 31, 2012.previous error.

ForAs disclosed in the year ended December 31, 2011Partnership's prior filings, the correctionPartnership had determined that it was preferable to change from the composite method of depreciation to the unit method of depreciation with the change effective January 1, 2013. The Partnership believes that pursuant to generally accepted accounting principles, changing from the composite method of depreciation to the unit method of depreciation is a change in accounting estimate that is effected by a change in accounting principle, which should be accounted for prospectively. The change to the unit method of depreciation eliminates the qualitative judgment needed to determine whether an asset retirement is normal or unusual, as the net book value of all retirements will decrease net income (loss) by $1.4 millionbe recorded in the Consolidated Statements of Operations and the provision (benefit) for taxes will decrease by $0.6 million.  For the 2010 annual financial statements, the correction will decrease net income (loss) by $1.5 million and the provision (benefit) for taxes will decrease by $0.6 million.  For the 2009 annual financial statements, the correction will decrease net income (loss) by $1.2 million and the provision (benefit) for taxes will decrease $0.4 million.  The balance sheet as of December 31, 2011 has already been corrected in this Form 10-Q.Comprehensive Income.



4542


ITEM 6. EXHIBITS
 
Exhibit (4.1)
Rights Agreement between Cedar Fair, L.P. and American Stock Transfer and Trust Co., LLC, dated April 5, 2010. Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on April 6, 2010.

Exhibit (4.2)
Indenture, by and among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and The Bank of New York Mellon, as trustee, dated as of July 29, 2010 (including form of 9.125% Senior Notes due 2018). Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (4.3)
Registration Rights Agreement, among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and J.P. Morgan Securities Inc., as representative of the initial purchasers named therein, dated July 29, 2010. Incorporated herein by reference to Exhibit 4.2 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (10.1)Cedar Fair, L.P. Amended and Restated Executive Severance Plan dated July 18, 2007. Incorporated herein by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q (File No. 001-09444) filed on August 3, 2007.
Exhibit (31.1)  Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (31.2)  Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (32)  Certifications Pursuant to 18 U.S.C. 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
  
Exhibit (101)  The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012March 31, 2013 formatted in Extensible Business Reporting Language (XBRL): (i) The Condensed Consolidated Statements of Income, (ii) the Condensed Consolidated Balance Sheets, (iii) The Condensed Consolidated Statements of Cash Flow, (iv) the Condensed Consolidated Statement of Equity and, (v) related notes
 

4643

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
  CEDAR FAIR, L.P. 
  (Registrant) 
    
  By Cedar Fair Management, Inc. 
  General Partner 
   
Date:November 7, 2012May 10, 2013/s/ Matthew A. Ouimet
  Matthew A. Ouimet
  President and Chief Executive Officer
    
Date:November 7, 2012May 10, 2013/s/ Brian C. Witherow
  Brian C. Witherow
  Executive Vice President and
  Chief Financial Officer

 

4744

INDEX TO EXHIBITS
 
Exhibit (4.1)
Rights Agreement between Cedar Fair, L.P. and American Stock Transfer and Trust Co., LLC, dated April 5, 2010. Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on April 6, 2010.

Exhibit (4.2)
Indenture, by and among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and The Bank of New York Mellon, as trustee, dated as of July 29, 2010 (including form of 9.125% Senior Notes due 2018). Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (4.3)
Registration Rights Agreement, among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and J.P. Morgan Securities Inc., as representative of the initial purchasers named therein, dated July 29, 2010. Incorporated herein by reference to Exhibit 4.2 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (10.1)Cedar Fair, L.P. Amended and Restated Executive Severance Plan dated July 18, 2007. Incorporated herein by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q (File No. 001-09444) filed on August 3, 2007.
Exhibit (31.1)  Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (31.2)  Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (32)  Certifications Pursuant to 18 U.S.C. 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
  
Exhibit (101)  The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012March 31, 2013 formatted in Extensible Business Reporting Language (XBRL): (i) The Condensed Consolidated Statements of Income, (ii) the Condensed Consolidated Balance Sheets, (iii) The Condensed Consolidated Statements of Cash Flow, (iv) the Condensed Consolidated Statement of Equity and, (v) related notes
 

4845
s in thousands)		Interest Rate SwapsDerivatives designated as hedging instruments Derivatives not designated as hedging instruments
Notional Amounts LIBOR RateNotional Amounts LIBOR Rate Notional Amounts LIBOR Rate
$200,000
 2.40%$200,000
 2.27% 50,000
 2.54%
75,000
 2.43%75,000
 2.30% 30,000
 2.54%
50,000
 2.42%50,000
 2.29% 70,000
 2.54%
150,000
 2.55%150,000
 2.43% 50,000
 2.54%
50,000
 2.42%50,000
 2.29%    
50,000
 2.55%50,000
 2.47%    
25,000
 2.43%25,000
 2.30%    
50,000
 2.54%
30,000
 2.54%
70,000
 2.54%
50,000
 2.54%
Total
 
The following table presents our fixed-rate swaps, which matured in October 2011, and the cross-currency swap which matured in February 2012, along with their notional amounts and their fixed interest rates:
($'s in thousands)Interest Rate Swaps Cross-currency Swaps
 Notional Amounts LIBOR Rate Notional Amounts Implied Interest Rate
 $200,000
 5.64% $255,000
 7.31%
 200,000
 5.64% 150
 9.50%
 200,000
 5.64%    
 200,000
 5.57%    
 100,000
 5.60%    
 100,000
 5.60%    
Total $'s / Average Rate$1,000,000
 5.62% $255,150
 7.31%
        



12

Effects of Derivative Instruments on Income (Loss) and Other Comprehensive Income (Loss) for the three-month periods ended September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012:
 
(In thousands): Amount of Gain (Loss) Recognized in  Accumulated OCI on Derivatives (Effective Portion) 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
Derivatives designated as
Cash Flow Hedging
Relationships
 Three months ended Three months ended   Three months ended Three months ended   Three months ended Three months ended
 9/30/12 9/25/11   9/30/12 9/25/11   9/30/12 9/25/11
Interest rate swaps $438
 $(17,085) Interest Expense $(2,990) $—
 Net effect of swaps $—
 $15,396
                 
(In thousands): Amount of Gain (Loss) Recognized in  Accumulated OCI on Derivatives (Effective Portion) 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
Derivatives designated as
Cash Flow Hedging
Relationships
 Three months ended Three months ended   Three months ended Three months ended   Three months ended Three months ended
 3/31/13 3/25/12   3/31/13 3/25/12   3/31/13 3/25/12
Interest rate swaps $2,266
 $120
 Interest Expense $(2,797) $(2,793) Net effect of swaps $435
 $—
                 

13

(In thousands): 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
Derivatives not designated as Cash Flow
Hedging Relationships
   Three months ended Three months ended
   9/30/12 9/25/11
Cross-currency swaps (1)
 Net effect of swaps $—
 $13,622
Foreign currency swaps 
 Net effect of swaps —
 (13,210)
    $—
 $412
       
(In thousands): 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
Derivatives not designated as Cash Flow
Hedging Relationships
   Three months ended Three months ended
   3/31/13 3/25/12
Cross-currency swaps (1)
 Net effect of swaps $—
 $(4,999)
Foreign currency swaps 
 Net effect of swaps —
 6,278
Interest rate swaps (2)
 Net effect of swaps (1,471) —
    $(1,471) $1,279
       
(1)The cross-currency swaps became ineffective and were de-designated in August 2009.
(2)The May 2011 interest rate swaps were de-designated in March 2013.
During the quarter ended September 30, 2012March 31, 2013, in addition to the $1.0 million loss recognized in income on the ineffective portion of derivatives and on the derivatives not designated as cash flow hedges (as noted in the tables above), $0.27.8 million of incomeexpense related to the write off of OCI balances on our May 2011 swaps and $0.4 million of expense representing the regular amortization of amounts in AOCI was recorded in the condensed consolidated statements of operations for the quarter. The effect of this amortizationthese amounts resulted in a benefitcharge to earnings of $0.29.2 million recorded in “Net effect of swaps.”

For the three-month period ended SeptemberMarch 25, 20112012, in addition to the $15.81.3 million gain recognized in income on the ineffective portion of derivatives noted in the tabletables above, $11.20.5 million of expense representing the amortization of amounts in AOCI for the swaps and $0.60.2 million of foreign currency lossgain in the quarter related to the U.S. dollar denominated Canadian term loan were recorded in “Net effect of swaps” in the condensed consolidated statements of operations. The net effect of these amounts resulted in a benefit to earnings of $4.0 million recorded in “Net effect of swaps.”

Effects of Derivative Instruments on Income (Loss) and Other Comprehensive Income (Loss) for the nine-month periods ended September 30, 2012 and September 25, 2011: 
(In thousands): Amount of Gain (Loss) Recognized in  Accumulated OCI on Derivatives (Effective Portion) 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
Derivatives designated as
Cash Flow Hedging
Relationships
 Nine months ended Nine months ended   Nine months ended Nine months ended   Nine months ended Nine months ended
 9/30/12 9/25/11   9/30/12 9/25/11   9/30/12 9/25/11
Interest rate swaps $(2,308) $(36,788) Interest Expense $(9,004) $—
 Net effect of swaps $—
 $43,190
                 

13


(In thousands): 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
Derivatives not designated as Cash Flow
Hedging Relationships
   Nine months ended Nine months ended
   9/30/12 9/25/11
Interest rate swaps (1)
 Net effect of swaps $—
 $(3,342)
Cross-currency swaps (2)
 Net effect of swaps (4,999) 15,582
Foreign currency swaps 
 Net effect of swaps 6,278
 (17,516)
    $1,279
 $(5,276)
       
(1)The September 2010 swaps became ineffective and were de-designated in February 2011.
(2)The cross-currency swaps became ineffective and were de-designated in August 2009.
For the nine-month period ended September 30, 2012, in addition to the $1.3 million of net gain recognized in income on the ineffective portion of derivatives and on the derivatives not designated as cash flow hedges (as noted in the tables above), $0.2 million of expense representing the regular amortization of amounts in AOCI for the swaps and $0.2 million of foreign currency gain in the period related to the U.S. dollar denominated Canadian term loan were recorded in the condensed consolidated statements of operations for the period. The net effect of these amounts resulted in a benefit to earnings for the period of $1.3 million recorded in “Net effect of swaps.”

For the nine-month period ended September 25, 2011, in addition to the $37.9 million gain recognized in income on the ineffective portion of derivatives noted in the table above, $33.9 million of expense representing the amortization of amounts in AOCI for the swaps and $0.5 million of foreign currency loss in the period related to the U.S. dollar denominated Canadian term loan were recorded in “Net effect of swaps” in the condensed consolidated statements of operations. The net effect of these amounts resulted in a benefit to earnings of $3.51.0 million recorded in “Net effect of swaps.”


Effects of Derivative Instruments on Income (Loss) and Other Comprehensive Income (Loss) for the twelve-month periods ended September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012:
(In thousands): 
Amount of Gain (Loss)
Recognized in Accumulated OCI on Derivatives
(Effective Portion)
 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
Derivatives designated as
Cash Flow Hedging
Relationships
 Twelve months ended Twelve months ended   Twelve months ended Twelve months ended   Twelve months ended Twelve months ended
 9/30/12 9/25/11   9/30/12 9/25/11   9/30/12 9/25/11
Interest rate swaps $(873) $(26,329) Interest Expense $(12,027) $—
 Net effect of swaps $4,797
 $54,613
                 
(In thousands): 
Amount of Gain (Loss)
Recognized in Accumulated OCI on Derivatives
(Effective Portion)
 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
Derivatives designated as
Cash Flow Hedging
Relationships
 Twelve months ended Twelve months ended   Twelve months ended Twelve months ended   Twelve months ended Twelve months ended
 3/31/13 3/25/12   3/31/13 3/25/12   3/31/13 3/25/12
Interest rate swaps $2,286
 $(36,088) Interest Expense $(12,031) $(5,816) Net effect of swaps $435
 $33,493
                 

(In thousands): 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
Derivatives not designated as Cash Flow Hedging
Relationships
   Twelve months ended Twelve months ended
   9/30/12 9/25/11
Interest rate swaps (1)
 Net effect of swaps $—
 $(3,342)
Cross-currency swaps (2)
 Net effect of swaps (4,483) 10,016
Foreign currency swaps Net effect of swaps 10,129
 (17,516)
    $5,646
 $(10,842)
       
(In thousands): 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
Derivatives not designated as Cash Flow Hedging
Relationships
   Twelve months ended Twelve months ended
   3/31/13 3/25/12
Cross-currency swaps (1)
 Net effect of swaps —
 12,911
Foreign currency swaps Net effect of swaps —
 (7,387)
Interest rate swaps (2)
 Net effect of swaps $(1,471) $—
    $(1,471) $5,524
       
(1)The September 2010 swaps became ineffective and were de-designated in February 2011.
(2)The cross-currency swaps became ineffective and were de-designated in August 2009.
(2)The May 2011 interest rate swaps were de-designated in March 2013.
In addition to the $10.41.0 million of gainloss recognized in income on the ineffective portion of derivatives and on the derivatives not designated as cash flow hedges (as noted in the tables above), $0.17.8 million of expense related to the write off of OCI balances on our May 2011 swaps and $192 thousand of income representing the amortization of amounts in AOCI for the swaps was recorded during the trailing twelve months ended March 31, 2013 in the condensed consolidated statements of operations. The net effect of these amounts resulted in expense for the trailing twelve month period of $8.7 million recorded in “Net effect of swaps.”

14

For the twelve month period ending March 25, 2012, in addition to the $39.0 million of gain recognized in income on the ineffective portion of derivatives noted in the tables above, $22.7 million of expense representing the amortization of amounts in AOCI for the swaps and a $0.40.3 million foreign currency gainloss in the twelve month period related to the U.S. dollar denominated Canadian term loan was recorded during the trailing twelve months ended September 30,March 25, 2012 in the condensed consolidated statements of operations. The net effect of these amounts resulted in a benefit to earnings for the trailing twelve month period of $10.9 million recorded in “Net effect of swaps.”
For the twelve month period ending September 25, 2011, in addition to the $43.8 million of gain recognized in income on the ineffective portion of derivatives noted in the table above, $45.5 million of expense representing the amortization of amounts in AOCI for the swaps and a $0.1 million foreign currency loss in the twelve month period related to the U.S. dollar denominated Canadian term loan was recorded during the trailing twelve months ended September 25, 2011 in the condensed consolidated statements of operations. The net effect of these amounts resulted in a charge to earnings for the trailing twelve month period of $1.816.0 million recorded in “Net effect of swaps.”
The amounts reclassified from AOCI into income for the periods noted above are in large partprimarily the result of the Partnership’s initial three-year requirement to swap at least 75% of its aggregate term debt to fixed rates under the terms of the Amended 2010 Credit Agreement.
 
(7) Fair Value Measurements:
The FASB Accounting Standards Codification (ASC) relating to fair value measurements emphasizes that fair value is a market-based measurement that should be determined based on assumptions (inputs) that market participants would use in pricing an asset or liability. Inputs may be observable or unobservable, and valuation techniques used to measure fair value should maximize the use of relevant observable inputs and minimize the use of unobservable inputs. Accordingly, the FASB’s ASC establishes a hierarchal disclosure framework that ranks the quality and reliability of information used to determine fair values. The hierarchy is associated with the level of pricing observability utilized in measuring fair value and defines three levels of inputs to the fair value measurement process—quoted prices are the most reliable valuation inputs, whereas model values that include inputs based on unobservable data are the least reliable. Each fair value measurement must be assigned to a level corresponding to the lowest level input that is significant to the fair value measurement in its entirety.
The three broad levels of inputs defined by the fair value hierarchy are as follows:
 
Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
 
Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
 
Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement.
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

















15

The table below presents the balances of assets and liabilities measured at fair value as of September 30, 2012March 31, 2013, December 31, 2011,2012, and SeptemberMarch 25, 20112012 on a recurring basis:
  Total Level 1 Level 2 Level 3
September 30, 2012        
(In thousands)        
Interest rate swap agreements (1)
 $(34,708) $—
 $(34,708) $—
Net derivative liability $(34,708) $—
 $(34,708) $—
         
December 31, 2011        
Interest rate swap agreements (1)
 $(32,400) $—
 $(32,400) $—
Cross-currency swap agreements (2)
 (37,617) —
 (37,617) —
Foreign currency swap agreements (2)
 (13,155) —
 (13,155) —
Net derivative liability $(83,172) $—
 $(83,172) $—
         
September 25, 2011        
Interest rate swap agreements (1)
 $(33,835) $—
 $(33,835) $—
Interest rate swap agreements (2)
 (4,797) —
 (4,797) —
Cross-currency swap agreements (2)
 (37,723) —
 (37,723) —
Foreign currency swap agreements (2)
 (16,846) —
 (16,846) —
Net derivative liability $(93,201) $—
 $(93,201) $—
  Total Level 1 Level 2 Level 3
March 31, 2013        
(In thousands)        
Interest rate swap agreements (1)
 $(23,388) $—
 $(23,388) $—
Interest rate swap agreements (2)
 (7,643) —
 (7,643) —
Net derivative liability $(31,031) $—
 $(31,031) $—
         
December 31, 2012        
Interest rate swap agreements (1)
 $(32,260) $—
 $(32,260) $—
Net derivative liability $(32,260) $—
 $(32,260) $—
         
March 25, 2012        
Interest rate swap agreements (1)
 $(32,280) $—
 $(32,280) $—
Net derivative liability $(32,280) $—
 $(32,280) $—
(1)IncludedDesignated as cash flow hedges and are included in “Derivative Liability” on the Unaudited Condensed Consolidated Balance Sheet
(2)IncludedNot designated as cash flow hedges and are included in "Current derivative liability""Derivative Liability" on the Unaudited Condensed Consolidated Balance Sheet
Fair values of the interest rate cross-currency and foreign currency swap agreements are determined using significant inputs, including the LIBOR and foreign currency forward curves, that are considered Level 2 observable market inputs. In addition, the Partnership considered the effect of its credit and non-performance risk on the fair values provided, and recognized an adjustment decreasing the net derivative liability by approximately $1.10.9 million as of September 30, 2012March 31, 2013.
There were no assets measured at fair value on a non-recurring basis at September 30, 2012March 31, 2013, December 31, 2011, or SeptemberMarch 25, 20112012, except for as described below.
At the end of the third quarter in 2012, the Partnership concluded based on operating results, as well as updated forecasts, and changes in market conditions, that a review of the carrying value of long-lived assets at Wildwater Kingdom was warranted. After performing its review, the Partnership determined that a portion of the park's fixed assets were impaired. Based on Level 3 unobservable valuation assumptions and other market inputs, the assets were marked to a fair value of $19.8 million, resulting in an impairment charge of $25.0 million during the quarter.
In 2010, the Partnership concluded based on operating results, as well as updated forecasts, that a review of the carrying value of long-lived assets at California's Great America was warranted. After performing its review, the Partnership determined that a portion of the park's fixed assets, the majority of which were originally recorded with the PPI acquisition, were impaired. As a result, it recognized $62.0 million of fixed-asset impairment during the fourth quarter of 2010.

After completing its 2010 annual review of indefinite-lived intangibles for impairment, the Partnership concluded that a portion of trade-names originally recorded with the PPI acquisition were impaired. As a result, the Partnership recognized approximately $0.9 million of trade-name impairment during the fourth quarter of 2010. A relief-from-royalty model is used to determine whether the fair value of trade-names exceeds their carrying amount. The fair value of the trade-names is determined as the present value of fees avoided by owning the respective trade-name.
The fair value of term debt at September 30, 2012March 31, 2013 was approximately $1,125.7637.1 million based on borrowing rates currently available to the Partnership on long-term debt with similar terms and average maturities. The fair value of the Partnership's notes at September 30, 2012March 31, 2013 was approximately $352.6950.1 million based on borrowing rates availablepublic trading levels as of that date to the Partnership on notes with similar terms and maturities.date. The fair value of the term debt was based on Level 2 inputs and the notes were based on Level 21 inputs.





16

(8) Earnings per Unit:
Net income (loss) per limited partner unit is calculated based on the following unit amounts:
  Three months ended Nine months ended Twelve months ended
  9/30/2012 9/25/2011 9/30/2012 9/25/2011 9/30/2012 9/25/2011
  (In thousands except per unit amounts)
Basic weighted average units outstanding 55,611
 55,346
 55,473
 55,345
 55,440
 55,342
Effect of dilutive units:            
Unit options and restricted unit awards 45
 —
 42
 —
 31
 —
Phantom units 336
 482
 333
 502
 416
 544
Diluted weighted average units outstanding 55,992
 55,828
 55,848
 55,847
 55,887
 55,886
Net income (loss) per unit - basic $2.53
 $2.75
 $2.01
 $1.29
 $2.00
 $0.15
Net income (loss) per unit - diluted $2.51
 $2.73
 $2.00
 $1.28
 $1.98
 $0.15
             
  Three months ended Twelve months ended
  3/31/2013 3/25/2012 3/31/2013 3/25/2012
  (In thousands except per unit amounts)
Basic weighted average units outstanding 55,854
 55,378
 55,694
 55,353
Effect of dilutive units:        
Unit options and restricted unit awards —
 —
 63
 2
Phantom units —
 —
 299
 492
Diluted weighted average units outstanding 55,854
 55,378
 56,056
 55,847
Net income (loss) per unit - basic $(1.95) $(1.18) $1.04
 $1.53
Net income (loss) per unit - diluted $(1.95) $(1.18) $1.04
 $1.52
         
The effect of unit options on the three nine and twelve months ended September 30,March 31, 2013, had they not been out of the money or antidilutive, would have been zero and 16,000 units, respectively. The effect of out-of-the-money and/or antidilutive unit options on the three and twelve months ended March 25, 2012, had they not been out of the money or antidilutive, would have been 66,0002,000, 34,000and 36,000 units, respectively. The effect of out-of-the-money and/or antidilutive unit options on the three, nine and twelve months ended September 25, 2011, had they not been out of the money or antidilutive, would have been 57,000, 67,000 and 127,00047,000 units, respectively.
 
(9) Income and Partnership Taxes:
Under the applicable accounting rules, income taxes are recognized for the amount of taxes payable by the Partnership’s corporate subsidiaries for the current year and for the impact of deferred tax assets and liabilities, which represent future tax consequences of events that have been recognized differently in the financial statements than for tax purposes. The income tax provision (benefit) for interim periods is determined by applying an estimated annual effective tax rate to the quarterly income (loss) of the Partnership’s corporate subsidiaries. For 2012, the estimated annual effective rate includes the effect of an anticipated adjustment to the valuation allowance that relates to foreign tax credit carry-forwards arising from the corporate subsidiaries. The amount of this adjustment has a disproportionate impact on the annual effective tax rate that results in a significant variation in the customary relationship between the provision for taxes and income before taxes in interim periods. In addition to income taxes on its corporate subsidiaries, the Partnership pays a publicly traded partnership tax (PTP tax) on partnership-level gross income (net revenues less cost of food, merchandise and games). As such, the Partnership’s total provision (benefit) for taxes includes amounts for both the PTP tax and for income taxes on its corporate subsidiaries.
During the second quarterAs of 2012 the Partnership adjusted its deferred tax assets and liabilities to reflect the impact of changes to the enacted statutory tax rates in Canada and recorded a corresponding $1.8 million income tax provision.  During the first quarter of 20122013 the Partnership accruedhas recorded $1.01.1 million forof unrecognized tax benefits including interest and/or penalties related to state and local tax filing positions. The Partnership recognizes interest and/or penalties related to unrecognized tax benefits in the income tax provision. The Partnership does not anticipate that the balance of the unrecognized tax benefit will change significantly over the next 12 months.

(10) Contingencies:

The Partnership is a party to a number of lawsuits arising in the normal course of business. In the opinion of management, none of these matters is expected to have a material effect in the aggregate on the Partnership's financial statements.

(11) Immaterial Restatement:

We have made two separate corrections relating to our use of the composite depreciation method.

The Partnership usesfirst correction, which impacts the Balance Sheet at March 25, 2012 and the Statement of Operations and Other Comprehensive Income for the 3 and 12 month periods ended March 25, 2012, related to a misapplication of the composite depreciation method for the group of assets acquired as a whole in 1983, as well as for groups of assets in each subsequent business acquisition.method. Upon the normal retirement of an asset within a composite group, the Partnership'sour practice generally hashad been to extend the depreciable life of that composite group beyond its original estimated useful life. In conjunction with the preparation of the Partnership'sour financial statements for the three months ended July 1,in 2012, management determined that this methodology was not appropriate. As a result, the Partnershipwe revised the useful lives of itsour composite groups to their original estimated useful life (ascribed upon acquisition) and corrected previously computed depreciation expense (and accumulated depreciation). Management evaluated

The second correction, which impacts the amountBalance Sheet at March 25, 2012 and naturethe Statement of these adjustmentsOperations and concludedOther Comprehensive Income for the 12 month period ended March 25, 2012, reflects a subsequent determination that they werea disposition from our composite group of assets was considered to be unusual. In certain situations under the composite method, disposals are considered unusual and, accordingly, losses are not materialincluded in the composite depreciation pool but are rather charged immediately to eitherexpense. In 2013, the Partnership's prior annual or quarterly financial statements. Nonetheless,initial determination of whether a specific asset retired under the historical financial statement amounts includedcomposite method of depreciation in this filing have been corrected for this error. The Partnership expects to likewise correct previously presented2011 was normal was reviewed in connection with responding

17

historical financial statements to an open SEC comment letter. We ultimately concluded that such disposition was unusual and that a $8.8 millioncharge should be included in future filings, including the annual financial statements to be includedreflected in the Partnership's Annual Report on Form 10-K for the year ending December 31, 2012.2011 financial statements.

The tables below detailreflect the effectsimpact on the financial statements of such depreciation adjustments (including the related deferred income tax impact)corrections as described above. The "As originally filed" amounts represent amounts as filed in the Partnership's 1st quarter 2012 Form 10-Q . The "As restated" amounts in all columns represent amounts after restatement for the first correction which was disclosed in the Partnership's 2nd quarter Form 10-Q and the second correction which was disclosed in the Partnership's 2012 Annual Report on previously presented historical financial statement amounts:Form 10-K/A filed on May 10, 2013.


Balance Sheets   
 12/31/2011 9/25/2011
Accumulated depreciation   
As originally filed$(1,044,589) $(1,044,353)
Correction(18,599) (18,252)
As restated$(1,063,188) $(1,062,605)
Total assets   
As originally filed$2,074,557
 $2,159,339
Correction(18,599) (18,252)
As restated$2,055,958
 $2,141,087
Deferred Tax Liability   
As originally filed$135,446
 $125,588
Correction(1,679) (1,615)
As restated$133,767
 $123,973
Limited Partners' Equity   
As originally filed$182,438
 $221,611
Correction(16,920) (16,637)
As restated$165,518
 $204,974
Balance Sheet 
(In thousands)3/25/2012
Accumulated depreciation 
As originally filed$(1,046,162)
Corrections(27,622)
As restated$(1,073,784)
Total assets 
As originally filed$2,113,126
Corrections(27,622)
As restated$2,085,504
Deferred Tax Liability 
As originally filed$135,746
Corrections(5,019)
As restated$130,727
Limited Partners' Equity 
As originally filed$96,417
Corrections(22,603)
As restated$73,814








18

Statements of Operations and Other Comprehensive Income
  Three months ended Nine months ended Twelve months ended
  9/25/2011 9/25/2011 9/25/2011
Depreciation and amortization      
As originally filed $62,619
 $109,173
 $124,345
Correction 829
 1,684
 2,037
As restated $63,448
 $110,857
 $126,382
Income (loss) before tax      
As originally filed $190,891
 $95,031
 $(2,271)
Correction (829) (1,684) (2,037)
As restated $190,062
 $93,347
 $(4,308)
Provision (benefit) for taxes    
As originally filed $38,161
 $22,327
 $(11,808)
Correction (317) (554) (616)
As restated $37,844
 $21,773
 $(12,424)
Net income (loss)    
As originally filed $152,730
 $72,704
 $9,537
Correction (512) (1,130) (1,421)
As restated $152,218
 $71,574
 $8,116
       
Basic earnings per limited partner unit:    
As originally filed $2.76
 $1.31
 $0.17
Correction (0.01) (0.02) (0.02)
As restated $2.75
 $1.29
 $0.15
       
Diluted earnings per limited partner unit:    
As originally filed $2.74
 $1.30
 $0.17
Correction (0.01) (0.02) (0.02)
As restated $2.73
 $1.28
 $0.15
Statements of Operations and Other Comprehensive Income
(In thousands except per unit amounts) Three months ended Twelve months ended
  3/25/2012 3/25/2012
Depreciation and amortization    
As originally filed $3,846
 $123,861
Corrections 233
 2,031
As restated $4,079
 $125,892
Loss on impairment / retirement of fixed assets, net    
As originally filed $92
 $2,461
Corrections —
 8,790
As restated $92
 $11,251
Income (loss) before tax    
As originally filed $(86,721) $101,565
Corrections (233) (10,821)
As restated $(86,954) $90,744
Provision (benefit) for taxes  
As originally filed $(21,539) $9,897
Corrections —
 (3,960)
As restated $(21,539) $5,937
Net income (loss)  
As originally filed $(65,182) $91,668
Corrections (233) (6,861)
As restated $(65,415) $84,807
     
Basic earnings per limited partner unit:  
As originally filed $(1.18) $1.66
Corrections —
 (0.13)
As restated $(1.18) $1.53
     
Diluted earnings per limited partner unit:  
As originally filed $(1.18) $1.64
Corrections —
 (0.12)
As restated $(1.18) $1.52


(12) Changes in Accumulated Other Comprehensive Income by Component:

(12)The following tables reflect the changes in Accumulated other comprehensive income (loss) related to limited partners' equity for the period ended March 31, 2013:



19

 
Changes in Accumulated Other Comprehensive Income by Component (1)
(In thousands)       
   Gains and    
   Losses on Foreign  
   Cash Flow Currency  
   Hedges Items Total
Balance at December 31, 2012 $(25,749) $(2,751) $(28,500)
        
 Other comprehensive      
 income before      
 reclassifications 1,940
 301
 301
        
 Amounts reclassified      
 from accumulated      
 other comprehensive      
 
income (2)
 6,945
 —
 8,885
        
Net current-period other      
comprehensive income 8,885
 301
 9,186
        
March 31, 2013 $(16,864) $(2,450) $(19,314)

(1) All amounts are net of tax. Amounts in parentheses indicate debits.
(2) See Reclassifications Out of Accumulated Other Comprehensive Income table below for reclassification details.

Reclassifications Out of Accumulated Other Comprehensive Income (1)
(In thousands)       
Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement Where Net Income is Presented
Gains and losses on cash flow hedges      
 Interest rate contracts $8,174
  Net effect of swaps
   $8,174
  Total before tax
   (1,229)  Provision (benefit) for taxes
   $6,945
  Net of tax

(1) Amounts in parentheses indicate debits.

(13) Consolidating Financial Information of Guarantors and Issuers:

Cedar Fair, L.P., Canada's Wonderland Company ("Cedar Canada"), and Magnum Management Corporation ("Magnum") are the co-issuers of the Partnership's 9.125% notes and the 5.25% notes (see Note 5). The notes have been fully and unconditionally guaranteed, on a joint and several basis, by each 100% owned subsidiary of Cedar Fair (other than Cedar Canada and Magnum) that guarantees the Partnership's senior secured credit facilities. There are no non-guarantor subsidiaries.

The following consolidating schedules present condensed financial information for Cedar Fair, L.P., Cedar Canada, and Magnum, the co-issuers, and each 100% owned subsidiary of Cedar Fair (other than Cedar Canada and Magnum), the guarantors (on a combined basis), as of September 30, 2012March 31, 2013, December 31, 2011,2012, and SeptemberMarch 25, 20112012 and for the three nine and twelve month periods ended

20

September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012. In lieu of providing separate unaudited financial statements for the guarantor subsidiaries, we have included the accompanying condensed consolidating financial statements.

Since Cedar Fair, L.P., Cedar Canada and Magnum are co-issuers of the notes and co-borrowers under the Amended 20102013 Credit Agreement, all outstanding debt has been equally reflected within each co-issuer's September 30, 2012March 31, 2013, December 31, 20112012 and SeptemberMarch 25, 20112012 balance sheets in the accompanying condensed consolidating financial statements.

The consolidating financial information has been corrected for the information described in Note 11.12.
  

19

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
September 30, 2012
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $43,000
 $2,263
 $40,278
 $10,561
 $—
 $96,102
Receivables 3
 108,211
 64,153
 478,372
 (621,382) 29,357
Inventories —
 1,584
 2,742
 29,267
 —
 33,593
Current deferred tax asset —
 6,239
 772
 3,334
 —
 10,345
Income tax refundable —
 —
 10,454
 —
 —
 10,454
Other current assets 929
 2,065
 674
 3,775
 —
 7,443
  43,932
 120,362
 119,073
 525,309
 (621,382) 187,294
Property and Equipment (net) 425,747
 1,025
 272,951
 864,121
 —
 1,563,844
Investment in Park 577,612
 791,617
 118,514
 63,384
 (1,551,127) —
Goodwill 9,061
 —
 127,384
 111,218
 —
 247,663
Other Intangibles, net —
 —
 18,039
 22,826
 —
 40,865
Deferred Tax Asset —
 39,320
 —
 —
 (39,320) —
Intercompany Receivable 877,208
 1,069,721
 1,116,623
 —
 (3,063,552) —
Other Assets 23,361
 15,580
 8,925
 2,305
 —
 50,171
  $1,956,921
 $2,037,625
 $1,781,509
 $1,589,163
 $(5,275,381) $2,089,837
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Accounts payable $210,936
 $116,160
 $29,248
 $287,634
 $(621,382) $22,596
Deferred revenue —
 —
 4,544
 30,138
 —
 34,682
Accrued interest 735
 195
 6,082
 —
 —
 7,012
Accrued taxes 5,818
 42,090
 —
 4,496
 —
 52,404
Accrued salaries, wages and benefits —
 24,864
 2,365
 8,990
 —
 36,219
Self-insurance reserves —
 4,751
 1,698
 16,643
 —
 23,092
Other accrued liabilities 824
 4,097
 2,417
 3,505
 —
 10,843
  218,313
 192,157
 46,354
 351,406
 (621,382) 186,848
Deferred Tax Liability —
 —
 59,462
 122,952
 (39,320) 143,094
Derivative Liability 20,801
 13,907
 —
 —
 —
 34,708
Other Liabilities —
 3,880
 —
 3,500
 —
 7,380
Long-Term Debt:            
Term debt 1,131,100
 1,131,100
 1,131,100
 —
 (2,262,200) 1,131,100
Notes 400,676
 400,676
 400,676
 —
 (801,352) 400,676
  1,531,776
 1,531,776
 1,531,776
 —
 (3,063,552) 1,531,776
             
Equity 186,031
 295,905
 143,917
 1,111,305
 (1,551,127) 186,031
  $1,956,921
 $2,037,625
 $1,781,509
 $1,589,163
 $(5,275,381) $2,089,837


20

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
December 31, 2011
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $—
 $512
 $31,540
 $3,472
 $—
 $35,524
Receivables —
 62,408
 69,285
 412,095
 (536,177) 7,611
Inventories —
 1,547
 2,703
 28,819
 —
 33,069
Current deferred tax asset —
 6,239
 772
 3,334
 —
 10,345
Other current assets 508
 13,461
 1,027
 7,822
 (10,852) 11,966
  508
 84,167
 105,327
 455,542
 (547,029) 98,515
Property and Equipment (net) 455,579
 1,044
 266,111
 896,758
 —
 1,619,492
Investment in Park 518,819
 661,251
 118,385
 40,481
 (1,338,936) —
Intercompany Note Receivable —
 93,845
 —
 —
 (93,845) —
Goodwill 9,061
 —
 123,210
 111,219
 —
 243,490
Other Intangibles, net —
 —
 17,448
 22,825
 —
 40,273
Deferred Tax Asset —
 47,646
 —
 —
 (47,646) —
Intercompany Receivable 887,344
 1,084,112
 1,141,302
 —
 (3,112,758) —
Other Assets 27,641
 16,158
 9,353
 1,036
 —
 54,188
  $1,898,952
 $1,988,223
 $1,781,136
 $1,527,861
 $(5,140,214) $2,055,958
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Current maturities of long-term debt $15,921
 $15,921
 $15,921
 $—
 $(31,842) $15,921
Accounts payable 175,968
 144,868
 25,631
 202,566
 (536,177) 12,856
Deferred revenue —
 —
 2,891
 26,703
 —
 29,594
Accrued interest 198
 131
 15,433
 —
 —
 15,762
Accrued taxes 3,909
 —
 7,374
 15,577
 (10,852) 16,008
Accrued salaries, wages and benefits —
 26,916
 1,076
 5,396
 —
 33,388
Self-insurance reserves —
 3,977
 1,711
 15,555
 —
 21,243
Current derivative liability —
 —
 50,772
 —
 —
 50,772
Other accrued liabilities 1,247
 5,568
 252
 832
 —
 7,899
  197,243
 197,381
 121,061
 266,629
 (578,871) 203,443
Deferred Tax Liability —
 —
 58,463
 122,950
 (47,646) 133,767
Derivative Liability 19,451
 12,949
 —
 —
 —
 32,400
Other Liabilities —
 4,090
 —
 —
 —
 4,090
Intercompany Note Payable —
 —
 —
 93,845
 (93,845) —
Long-Term Debt:            
Term debt 1,140,179
 1,140,179
 1,140,179
 —
 (2,280,358) 1,140,179
Notes 400,279
 400,279
 400,279
 —
 (800,558) 400,279
  1,540,458
 1,540,458
 1,540,458
 —
 (3,080,916) 1,540,458
             
Equity 141,800
 233,345
 61,154
 1,044,437
 (1,338,936) 141,800
  $1,898,952
 $1,988,223
 $1,781,136
 $1,527,861
 $(5,140,214) $2,055,958

21

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
September 25, 2011March 31, 2013
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $49,000
 $2,489
 $36,473
 $8,350
 $—
 $96,312
Receivables 3
 45,663
 81,773
 587,910
 (676,810) 38,539
Inventories —
 1,684
 2,951
 32,311
 —
 36,946
Current deferred tax asset —
 1,686
 779
 3,409
 —
 5,874
Other current assets 875
 2,091
 774
 5,559
 —
 9,299
  49,878
 53,613
 122,750
 637,539
 (676,810) 186,970
Property and Equipment (net) 455,663
 1,055
 257,802
 900,759
 —
 1,615,279
Investment in Park 534,400
 681,893
 118,514
 53,988
 (1,388,795) —
Intercompany Note Receivable —
 269,500
 —
 —
 (269,500) —
Goodwill 9,061
 —
 121,869
 111,219
 —
 242,149
Other Intangibles, net —
 —
 17,258
 22,809
 —
 40,067
Deferred Tax Asset —
 49,845
 —
 —
 (49,845) —
Intercompany Receivable 887,219
 1,083,987
 1,141,302
 —
 (3,112,508) —
Other Assets 28,962
 16,884
 9,616
 1,160
 —
 56,622
  $1,965,183
 $2,156,777
 $1,789,111
 $1,727,474
 $(5,497,458) $2,141,087
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Accounts payable $189,887
 $281,605
 $27,488
 $206,288
 $(676,810) $28,458
Deferred revenue —
 —
 3,701
 28,993
 —
 32,694
Accrued interest 6,115
 1,364
 6,489
 —
 —
 13,968
Accrued taxes 5,189
 23,550
 —
 4,354
 —
 33,093
Accrued salaries, wages and benefits —
 29,373
 2,341
 9,395
 —
 41,109
Self-insurance reserves —
 3,130
 1,658
 17,154
 —
 21,942
Current derivative liability 4,797
 —
 54,569
 —
 —
 59,366
Other accrued liabilities 1,206
 4,840
 1,277
 4,924
 —
 12,247
  207,194
 343,862
 97,523
 271,108
 (676,810) 242,877
Deferred Tax Liability —
 —
 61,405
 112,413
 (49,845) 123,973
Derivative Liability 20,459
 13,376
 —
 —
 —
 33,835
Other Liabilities —
 2,872
 —
 —
 —
 2,872
Intercompany Note Payable —
 —
 —
 269,500
 (269,500) —
Long-Term Debt:            
Term debt 1,156,100
 1,156,100
 1,156,100
 —
 (2,312,200) 1,156,100
Notes 400,154
 400,154
 400,154
 —
 (800,308) 400,154
  1,556,254
 1,556,254
 1,556,254
 —
 (3,112,508) 1,556,254
             
Equity 181,276
 240,413
 73,929
 1,074,453
 (1,388,795) 181,276
  $1,965,183
 $2,156,777
 $1,789,111
 $1,727,474
 $(5,497,458) $2,141,087
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $—
 $732
 $4,125
 $5,181
 $—
 $10,038
Receivables 682
 79,472
 67,302
 436,595
 (570,709) 13,342
Inventories —
 3,645
 3,032
 32,386
 —
 39,063
Current deferred tax asset —
 31,543
 816
 3,663
 —
 36,022
Other current assets 207
 9,630
 1,618
 16,260
 —
 27,715
  889
 125,022
 76,893
 494,085
 (570,709) 126,180
Property and Equipment (net) 457,484
 1,003
 262,941
 849,424
 —
 1,570,852
Investment in Park 419,501
 714,013
 115,401
 21,689
 (1,270,604) —
Goodwill 9,061
 —
 123,374
 111,218
 —
 243,653
Other Intangibles, net —
 —
 17,470
 22,853
 —
 40,323
Deferred Tax Asset —
 34,890
 —
 90
 (34,980) —
Intercompany Receivable 877,336
 1,165,652
 1,211,522
 —
 (3,254,510) —
Other Assets 14,581
 10,291
 7,473
 2,303
 —
 34,648
  $1,778,852
 $2,050,871
 $1,815,074
 $1,501,662
 $(5,130,803) $2,015,656
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Current maturities of long-term debt $6,300
 $6,300
 $6,300
 $—
 $(12,600) $6,300
Accounts payable 103,654
 215,425
 3,891
 285,182
 (570,709) 37,443
Deferred revenue —
 —
 6,679
 59,505
 —
 66,184
Accrued interest 1,444
 916
 5,979
 —
 —
 8,339
Accrued taxes 4,790
 390
 331
 3,489
 —
 9,000
Accrued salaries, wages and benefits —
 13,483
 1,095
 5,604
 —
 20,182
Self-insurance reserves —
 5,324
 1,696
 16,537
 —
 23,557
Other accrued liabilities 589
 5,161
 133
 1,984
 —
 7,867
  116,777
 246,999
 26,104
 372,301
 (583,309) 178,872
Deferred Tax Liability —
 —
 62,700
 126,867
 (34,980) 154,587
Derivative Liability 18,594
 12,437
 —
 —
 —
 31,031
Other Liabilities —
 4,185
 —
 3,500
 —
 7,685
Long-Term Debt:            
Revolving credit loans 96,000
 96,000
 96,000
 —
 (192,000) 96,000
Term debt 623,700
 623,700
 623,700
 —
 (1,247,400) 623,700
Notes 901,255
 901,255
 901,255
 —
 (1,802,510) 901,255
  1,620,955
 1,620,955
 1,620,955
 —
 (3,241,910) 1,620,955
             
Equity 22,526
 166,295
 105,315
 998,994
 (1,270,604) 22,526
  $1,778,852
 $2,050,871
 $1,815,074
 $1,501,662
 $(5,130,803) $2,015,656


22

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOMEBALANCE SHEET
For the Three Months Ended September 30,December 31, 2012
 (As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $79,663
 $141,134
 $88,334
 $464,902
 $(220,588) $553,445
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 6,447
 40,906
 —
 47,353
Operating expenses 1,368
 74,191
 18,736
 289,604
 (220,588) 163,311
Selling, general and administrative 1,853
 32,627
 4,822
 13,691
 —
 52,993
Depreciation and amortization 19,209
 10
 9,430
 32,098
 —
 60,747
Loss on impairment / retirement of fixed assets, net 25,000
 —
 —
 —
 —
 25,000
  47,430
 106,828
 39,435
 376,299
 (220,588) 349,404
Operating income 32,233
 34,306
 48,899
 88,603
 —
 204,041
Interest expense (income), net 12,213
 7,258
 9,897
 (2,518) —
 26,850
Net effect of swaps (104) (71) —
 —
 —
 (175)
Unrealized / realized foreign currency gain —
 —
 (15,035) —
 —
 (15,035)
Other (income) expense 186
 (2,043) 512
 1,345
 —
 —
Income from investment in affiliates (125,311) (79,600) (11,138) (45,137) 261,186
 —
Income before taxes 145,249
 108,762
 64,663
 134,913
 (261,186) 192,401
Provision for taxes 4,561
 9,777
 17,181
 20,194
 —
 51,713
Net income $140,688
 $98,985
 $47,482
 $114,719
 $(261,186) $140,688
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment (563) —
 (563) —
 563
 (563)
Unrealized income (loss) on cash flow hedging derivatives (234) 48
 —
 —
 (48) (234)
Other comprehensive income (loss), (net of tax) (797) 48
 (563) —
 515
 (797)
Total Comprehensive Income $139,891
 $99,033
 $46,919
 $114,719
 $(260,671) $139,891


  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $25,000
 $444
 $50,173
 $3,213
 $—
 $78,830
Receivables 4
 101,093
 71,099
 498,555
 (652,559) 18,192
Inventories —
 1,724
 2,352
 23,764
 —
 27,840
Current deferred tax asset —
 3,705
 816
 3,663
 —
 8,184
Other current assets 563
 17,858
 530
 5,490
 (16,381) 8,060
  25,567
 124,824
 124,970
 534,685
 (668,940) 141,106
Property and Equipment (net) 439,506
 1,013
 268,157
 835,596
 —
 1,544,272
Investment in Park 485,136
 772,183
 115,401
 53,790
 (1,426,510) —
Goodwill 9,061
 —
 125,942
 111,218
 —
 246,221
Other Intangibles, net —
 —
 17,835
 22,817
 —
 40,652
Deferred Tax Asset —
 36,443
 —
 90
 (36,533) —
Intercompany Receivable 877,612
 1,070,125
 1,116,623
 —
 (3,064,360) —
Other Assets 22,048
 14,832
 8,419
 2,315
 —
 47,614
  $1,858,930
 $2,019,420
 $1,777,347
 $1,560,511
 $(5,196,343) $2,019,865
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Accounts payable $147,264
 $213,279
 $16,101
 $286,649
 $(652,559) $10,734
Deferred revenue —
 —
 4,996
 34,489
 —
 39,485
Accrued interest 98
 64
 15,350
 —
 —
 15,512
Accrued taxes 4,518
 —
 6,239
 23,437
 (16,381) 17,813
Accrued salaries, wages and benefits —
 17,932
 1,214
 5,690
 —
 24,836
Self-insurance reserves —
 5,528
 1,754
 16,624
 —
 23,906
Other accrued liabilities 1,110
 2,502
 140
 2,164
 —
 5,916
  152,990
 239,305
 45,794
 369,053
 (668,940) 138,202
Deferred Tax Liability —
 —
 63,460
 126,865
 (36,533) 153,792
Derivative Liability 19,309
 12,951
 —
 —
 —
 32,260
Other Liabilities —
 5,480
 —
 3,500
 —
 8,980
Long-Term Debt:            
Term debt 1,131,100
 1,131,100
 1,131,100
 —
 (2,262,200) 1,131,100
Notes 401,080
 401,080
 401,080
 —
 (802,160) 401,080
  1,532,180
 1,532,180
 1,532,180
 —
 (3,064,360) 1,532,180
             
Equity 154,451
 229,504
 135,913
 1,061,093
 (1,426,510) 154,451
  $1,858,930
 $2,019,420
 $1,777,347
 $1,560,511
 $(5,196,343) $2,019,865

23

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOMEBALANCE SHEET
For the Three Months Ended March 25, 2012September 25, 2011
(As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $82,713
 $147,138
 $84,679
 $487,352
 $(229,614) $572,268
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 6,659
 42,099
 —
 48,758
Operating expenses 1,257
 69,119
 19,397
 301,293
 (229,614) 161,452
Selling, general and administrative 1,297
 30,460
 5,064
 15,157
 —
 51,978
Depreciation and amortization 20,354
 11
 9,564
 33,519
 —
 63,448
Loss on impairment / retirement of fixed assets, net 827
 —
 10
 43
 —
 880
  23,735
 99,590
 40,694
 392,111
 (229,614) 326,516
Operating income 58,978
 47,548
 43,985
 95,241
 —
 245,752
Interest expense, net 23,948
 3,085
 13,433
 855
 —
 41,321
Net effect of swaps (4,112) (192) 342
 —
 —
 (3,962)
Unrealized / realized foreign currency loss —
 —
 18,549
 —
 —
 18,549
Other (income) expense (30) (1,711) 616
 907
 —
 (218)
Income from investment in affiliates (117,557) (57,557) (8,410) (15,579) 199,103
 —
Income before taxes 156,729
 103,923
 19,455
 109,058
 (199,103) 190,062
Provision for taxes 4,511
 12,445
 3,103
 17,785
 —
 37,844
Net income $152,218
 $91,478
 $16,352
 $91,273
 $(199,103) $152,218
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment 2,842
 —
 2,842
 —
 (2,842) 2,842
Unrealized income on cash flow hedging derivatives (3,224) (4,646) 72
 —
 4,574
 (3,224)
Other comprehensive income (loss), (net of tax) (382) (4,646) 2,914
 —
 1,732
 (382)
Total Comprehensive Income $151,836
 $86,832
 $19,266
 $91,273
 $(197,371) $151,836





  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $—
 $397
 $119
 $6,803
 $—
 $7,319
Receivables —
 82,892
 59,911
 370,246
 (506,356) 6,693
Inventories —
 3,321
 3,678
 37,487
 —
 44,486
Current deferred tax asset —
 11,014
 772
 3,334
 —
 15,120
Other current assets 359
 5,907
 11,851
 12,293
 —
 30,410
  359
 103,531
 76,331
 430,163
 (506,356) 104,028
Property and Equipment (net) 464,394
 1,035
 279,255
 896,184
 —
 1,640,868
Investment in Park 459,339
 661,166
 115,401
 25,758
 (1,261,664) —
Intercompany Note Receivable —
 104,165
 —
 —
 (104,165) —
Goodwill 9,061
 —
 125,528
 111,219
 —
 245,808
Other Intangibles, net —
 —
 17,776
 22,831
 —
 40,607
Deferred Tax Asset —
 47,646
 —
 —
 (47,646) —
Intercompany Receivable 889,442
 1,239,210
 1,294,302
 —
 (3,422,954) —
Other Assets 26,323
 16,288
 9,608
 1,974
 —
 54,193
  $1,848,918
 $2,173,041
 $1,918,201
 $1,488,129
 $(5,342,785) $2,085,504
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Current maturities of long-term debt $15,921
 $15,921
 $15,921
 $—
 $(31,842) $15,921
Accounts payable 60,297
 232,001
 26,302
 215,968
 (506,356) 28,212
Deferred revenue —
 —
 5,413
 45,341
 —
 50,754
Accrued interest 3,089
 1,706
 5,519
 —
 —
 10,314
Accrued taxes 4,925
 340
 261
 3,294
 —
 8,820
Accrued salaries, wages and benefits —
 26,989
 781
 5,792
 —
 33,562
Self-insurance reserves —
 4,212
 1,716
 15,826
 —
 21,754
Other accrued liabilities 462
 3,312
 226
 2,104
 —
 6,104
  84,694
 284,481
 56,139
 288,325
 (538,198) 175,441
Deferred Tax Liability —
 —
 58,762
 119,611
 (47,646) 130,727
Derivative Liability 19,403
 12,877
 —
 —
 —
 32,280
Other Liabilities —
 2,235
 —
 —
 —
 2,235
Intercompany Note Payable —
 —
 —
 104,165
 (104,165) —
Long-Term Debt:            
Revolving credit loans 155,004
 155,004
 155,004
 —
 (310,008) 155,004
Term debt 1,140,179
 1,140,179
 1,140,179
 —
 (2,280,358) 1,140,179
Notes 400,373
 400,373
 400,373
 —
 (800,746) 400,373
  1,695,556
 1,695,556
 1,695,556
 —
 (3,391,112) 1,695,556
             
Equity 49,265
 177,892
 107,744
 976,028
 (1,261,664) 49,265
  $1,848,918
 $2,173,041
 $1,918,201
 $1,488,129
 $(5,342,785) $2,085,504


24

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the NineThree Months Ended September 30, 2012March 31, 2013
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $124,864
 $221,221
 $130,441
 $808,471
 $(345,748) $939,249
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 9,988
 73,938
 —
 83,926
Operating expenses 4,141
 147,211
 40,328
 534,900
 (345,748) 380,832
Selling, general and administrative 4,841
 70,848
 9,877
 29,922
 —
 115,488
Depreciation and amortization 33,436
 28
 16,415
 63,277
 —
 113,156
Loss on impairment / retirement of fixed assets, net 24,221
 —
 9
 —
 —
 24,230
  66,639
 218,087
 76,617
 702,037
 (345,748) 717,632
Operating income 58,225
 3,134
 53,824
 106,434
 —
 221,617
Interest expense (income), net 36,438
 21,957
 30,898
 (5,422) —
 83,871
Net effect of swaps (35) 192
 (1,475) —
 —
 (1,318)
Unrealized / realized foreign currency gain —
 —
 (13,926) —
 —
 (13,926)
Other (income) expense 561
 (7,119) 1,221
 5,337
 —
 —
Income from investment in affiliates (99,035) (72,862) (14,505) (38,160) 224,562
 —
Income before taxes 120,296
 60,966
 51,611
 144,679
 (224,562) 152,990
Provision (benefit) for taxes 8,701
 (3,771) 13,525
 22,940
 —
 41,395
Net income $111,595
 $64,737
 $38,086
 $121,739
 $(224,562) $111,595
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment (1,251) —
 (1,251) —
 1,251
 (1,251)
Unrealized income (loss) on cash flow hedging derivatives (1,798) (629) 21
 —
 608
 (1,798)
Other comprehensive income (loss), (net of tax) (3,049) (629) (1,230) —
 1,859
 (3,049)
Total Comprehensive Income $108,546
 $64,108
 $36,856
 $121,739
 $(222,703) $108,546
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $4,317
 $8,371
 $289
 $41,510
 $(12,688) $41,799
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 —
 5,037
 —
 5,037
Operating expenses 1,423
 21,606
 5,941
 60,375
 (12,688) 76,657
Selling, general and administrative 1,292
 16,613
 711
 2,423
 —
 21,039
Depreciation and amortization 475
 9
 —
 4,302
 —
 4,786
Loss on impairment / retirement of fixed assets, net 36
 —
 478
 86
 —
 600
  3,226
 38,228
 7,130
 72,223
 (12,688) 108,119
Operating income (loss) 1,091
 (29,857) (6,841) (30,713) —
 (66,320)
Interest expense (income), net 10,512
 7,677
 9,764
 (2,230) —
 25,723
Net effect of swaps 5,635
 3,576
 —
 —
 —
 9,211
Loss on early debt extinguishment 21,175
 12,781
 617
 —
 —
 34,573
Unrealized / realized foreign currency loss —
 —
 8,958
 —
 —
 8,958
Other (income) expense 188
 (2,388) 800
 1,400
 —
 —
Loss from investment in affiliates 72,096
 35,640
 3,520
 21,227
 (132,483) —
Loss before taxes (108,515) (87,143) (30,500) (51,110) 132,483
 (144,785)
Provision (benefit) for taxes 611
 (17,665) (9,254) (9,351) —
 (35,659)
Net loss $(109,126) $(69,478) $(21,246) $(41,759) $132,483
 $(109,126)
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment 301
 —
 301
 —
 (301) 301
Unrealized income on cash flow hedging derivatives 8,885
 2,535
 —
 —
 (2,535) 8,885
Other comprehensive income, (net of tax) 9,186
 2,535
 301
 —
 (2,836) 9,186
Total Comprehensive Loss $(99,940) $(66,943) $(20,945) $(41,759) $129,647
 $(99,940)



25

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the NineThree Months Ended SeptemberMarch 25, 20112012
(As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $118,280
 $210,407
 $115,163
 $768,126
 $(328,349) $883,627
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 9,389
 70,592
 —
 79,981
Operating expenses 4,180
 131,955
 38,959
 504,813
 (328,349) 351,558
Selling, general and administrative 8,049
 64,226
 9,541
 28,310
 —
 110,126
Depreciation and amortization 33,021
 34
 15,440
 62,362
 —
 110,857
Loss on impairment / retirement of fixed assets, net 1,023
 —
 10
 43
 —
 1,076
  46,273
 196,215
 73,339
 666,120
 (328,349) 653,598
Operating income 72,007
 14,192
 41,824
 102,006
 —
 230,029
Interest expense, net 70,822
 8,395
 39,129
 6,184
 —
 124,530
Net effect of swaps (7,230) 910
 2,813
 —
 —
 (3,507)
Unrealized / realized foreign currency loss —
 —
 14,704
 —
 —
 14,704
Other (income) expense 1,517
 (4,712) 2,072
 2,078
 —
 955
(Income) loss from investment in affiliates (71,656) (34,663) (12,389) 107
 118,601
 —
Income (loss) before taxes 78,554
 44,262
 (4,505) 93,637
 (118,601) 93,347
Provision (benefit) for taxes 6,980
 2,527
 (4,446) 16,712
 —
 21,773
Net income (loss) $71,574
 $41,735
 $(59) $76,925
 $(118,601) $71,574
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment 2,354
 —
 2,354
 —
 (2,354) 2,354
Unrealized income on cash flow hedging derivatives 2,366
 (9,866) 79
 —
 9,787
 2,366
Other comprehensive income (loss), (net of tax) 4,720
 (9,866) 2,433
 —
 7,433
 4,720
Total Comprehensive Income $76,294
 $31,869
 $2,374
 $76,925
 $(111,168) $76,294

  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $1,456
 $2,577
 $266
 $27,932
 $(4,033) $28,198
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 —
 4,087
 —
 4,087
Operating expenses 1,335
 20,436
 5,657
 47,890
 (4,033) 71,285
Selling, general and administrative 1,332
 13,696
 760
 2,196
 —
 17,984
Depreciation and amortization 696
 9
 —
 3,374
 —
 4,079
Loss on impairment / retirement of fixed assets, net 82
 —
 10
 —
 —
 92
  3,445
 34,141
 6,427
 57,547
 (4,033) 97,527
Operating loss (1,989) (31,564) (6,161) (29,615) —
 (69,329)
Interest expense, net 11,158
 6,615
 10,403
 (1,389) —
 26,787
Net effect of swaps 173
 332
 (1,475) —
 —
 (970)
Unrealized / realized foreign currency gain —
 —
 (8,192) —
 —
 (8,192)
Other (income) expense 187
 (3,035) 197
 2,651
 —
 —
Loss from investment in affiliates 50,491
 23,083
 3,230
 24,916
 (101,720) —
Loss before taxes (63,998) (58,559) (10,324) (55,793) 101,720
 (86,954)
Provision (benefit) for taxes 1,417
 (11,672) (2,334) (8,950) —
 (21,539)
Net loss $(65,415) $(46,887) $(7,990) $(46,843) $101,720
 $(65,415)
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment (1,169) —
 (1,169) —
 1,169
 (1,169)
Unrealized income on cash flow hedging derivatives 339
 98
 21
 —
 (119) 339
Other comprehensive income (loss), (net of tax) (830) 98
 (1,148) —
 1,050
 (830)
Total Comprehensive Loss $(66,245) $(46,789) $(9,138) $(46,843) $102,770
 $(66,245)

























26



CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
For the Twelve Months Ended September 30, 2012March 31, 2013
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $147,733
 $261,878
 $142,250
 $941,465
 $(409,232) $1,084,094
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 10,531
 85,471
 —
 96,002
Operating expenses 5,452
 180,665
 47,134
 636,106
 (409,232) 460,125
Selling, general and administrative 6,865
 90,892
 11,650
 36,381
 —
 145,788
Depreciation and amortization 37,698
 41
 18,300
 72,097
 —
 128,136
(Gain) loss on impairment / retirement of fixed assets, net 24,188
 —
 (62) 1,593
 —
 25,719
  74,203
 271,598
 87,553
 831,648
 (409,232) 855,770
Operating income (loss) 73,530
 (9,720) 54,697
 109,817
 —
 228,324
Interest (income) expense, net 50,007
 28,592
 44,583
 (6,813) —
 116,369
Net effect of swaps (5,019) (1) (5,910) —
 —
 (10,930)
Unrealized / realized foreign currency gain —
 —
 (18,721) —
 —
 (18,721)
Other (income) expense 749
 (10,205) 1,498
 7,958
 —
 —
Income from investment in affiliates (93,080) (55,557) (12,698) (24,955) 186,290
 —
Income before taxes 120,873
 27,451
 45,945
 133,627
 (186,290) 141,606
Provision (benefit) for taxes 10,106
 (29,298) 20,942
 29,089
 —
 30,839
Net income $110,767
 $56,749
 $25,003
 $104,538
 $(186,290) $110,767
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment (2,672) —
 (2,672) —
 2,672
 (2,672)
Unrealized income (loss) on cash flow hedging derivatives (397) (109) 21
 —
 88
 (397)
Other comprehensive income (loss), (net of tax) (3,069) (109) (2,651) —
 2,760
 (3,069)
Total Comprehensive Income $107,698
 $56,640
 $22,352
 $104,538
 $(183,530) $107,698
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $148,576
 $263,930
 $140,441
 $941,246
 $(412,138) $1,082,055
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 10,316
 85,682
 —
 95,998
Operating expenses 5,468
 177,526
 48,147
 637,772
 (412,138) 456,775
Selling, general and administrative 6,455
 89,532
 11,086
 34,293
 —
 141,366
Depreciation and amortization 37,439
 40
 18,199
 71,335
 —
 127,013
(Gain) on sale of other assets —
 —
 —
 (6,625) —
 (6,625)
Loss on impairment / retirement of fixed assets, net 25,089
 —
 474
 5,281
 —
 30,844
  74,451
 267,098
 88,222
 827,738
 (412,138) 845,371
Operating income (loss) 74,125
 (3,168) 52,219
 113,508
 —
 236,684
Interest (income) expense, net 47,879
 30,390
 40,231
 (9,013) —
 109,487
Net effect of swaps 5,324
 3,365
 —
 —
 —
 8,689
Loss on early debt extinguishment 21,175
 12,781
 617
 —
 —
 34,573
Unrealized / realized foreign currency loss —
 —
 8,152
 —
 —
 8,152
Other (income) expense 750
 (8,860) 2,623
 5,487
 —
 —
Income from investment in affiliates (68,417) (53,593) (14,307) (18,503) 154,820
 —
Income before taxes 67,414
 12,749
 14,903
 135,537
 (154,820) 75,783
Provision (benefit) for taxes 9,269
 (15,849) (3,507) 27,725
 —
 17,638
Net income $58,145
 $28,598
 $18,410
 $107,812
 $(154,820) $58,145
Other comprehensive income, (net of tax):            
Cumulative foreign currency translation adjustment 1,839
 —
 1,839
 —
 (1,839) 1,839
Unrealized income on cash flow hedging derivatives 8,685
 2,551
 —
 —
 (2,551) 8,685
Other comprehensive income (loss), (net of tax) 10,524
 2,551
 1,839
 —
 (4,390) 10,524
Total Comprehensive Income $68,669
 $31,149
 $20,249
 $107,812
 $(159,210) $68,669



27

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the Twelve Months Ended SeptemberMarch 25, 20112012 (As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $138,907
 $247,595
 $126,355
 $886,578
 $(386,119) $1,013,316
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 9,850
 80,928
 —
 90,778
Operating expenses 5,725
 163,754
 45,814
 597,781
 (386,119) 426,955
Selling, general and administrative 9,755
 79,492
 11,347
 32,598
 —
 133,192
Depreciation and amortization 37,168
 95
 17,188
 71,931
 —
 126,382
Loss on impairment of goodwill and other intangibles —
 —
 —
 903
 —
 903
Loss on impairment / retirement of fixed assets, net 1,456
 —
 10
 62,043
 —
 63,509
  54,104
 243,341
 84,209
 846,184
 (386,119) 841,719
Operating income 84,803
 4,254
 42,146
 40,394
 —
 171,597
Interest expense, net 99,205
 14,877
 52,411
 4,362
 —
 170,855
Net effect of swaps (7,183) 910
 8,045
 —
 —
 1,772
Unrealized / realized foreign currency loss —
 —
 2,323
 —
 —
 2,323
Other (income) expense 1,704
 (5,748) 2,852
 2,147
 —
 955
(Income) loss from investment in affiliates (25,098) 1,534
 (9,116) 2,425
 30,255
 —
Income (loss) before taxes 16,175
 (7,319) (14,369) 31,460
 (30,255) (4,308)
Provision (benefit) for taxes 8,059
 953
 (7,308) (14,128) —
 (12,424)
Net income (loss) $8,116
 $(8,272) $(7,061) $45,588
 $(30,255) $8,116
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment (1,704) —
 (1,704) —
 1,704
 (1,704)
Unrealized income on cash flow hedging derivatives 22,916
 (7,153) 180
 —
 6,973
 22,916
Other comprehensive income (loss), (net of tax) 21,212
 (7,153) (1,524) —
 8,677
 21,212
Total Comprehensive Income (Loss) $29,328
 $(15,425) $(8,585) $45,588
 $(21,578) $29,328
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $140,548
 $249,988
 $126,375
 $903,046
 $(390,156) $1,029,801
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 9,932
 82,100
 —
 92,032
Operating expenses 5,351
 167,068
 45,805
 608,940
 (390,156) 437,008
Selling, general and administrative 7,963
 83,355
 11,151
 35,026
 —
 137,495
Depreciation and amortization 37,309
 45
 17,325
 71,213
 —
 125,892
Loss (gain) on impairment / retirement of fixed assets, net 876
 —
 (51) 10,426
 —
 11,251
  51,499
 250,468
 84,162
 807,705
 (390,156) 803,678
Operating income (loss) 89,049
 (480) 42,213
 95,341
 —
 226,123
Interest expense, net 72,309
 19,090
 50,897
 488
 —
 142,784
Net effect of swaps (10,940) (243) (4,793) —
 —
 (15,976)
Unrealized / realized foreign currency loss —
 —
 8,605
 —
 —
 8,605
Other (income) expense 716
 (9,542) 1,708
 7,084
 —
 (34)
(Income) loss from investment in affiliates (67,272) (19,390) (2,601) 16,074
 73,189
 —
Income (loss) before taxes 94,236
 9,605
 (11,603) 71,695
 (73,189) 90,744
Provision (benefit) for taxes 9,429
 (25,950) 4,319
 18,139
 —
 5,937
Net income (loss) $84,807
 $35,555
 $(15,922) $53,556
 $(73,189) $84,807
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment 1,050
 —
 1,050
 —
 (1,050) 1,050
Unrealized income (loss) on cash flow hedging derivatives (7,958) (9,638) 254
 —
 9,384
 (7,958)
Other comprehensive income (loss), (net of tax) (6,908) (9,638) 1,304
 —
 8,334
 (6,908)
Total Comprehensive Income (Loss) $77,899
 $25,917
 $(14,618) $53,556
 $(64,855) $77,899




28

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the NineThree Months Ended September 30, 2012March 31, 2013
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $208,436
 $48,506
 $9,093
 $155,849
 $(145,140) $276,744
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates (56,171) (70,083) 3,948
 (22,834) 145,140
 —
Sale of other assets 1,173
 —
 —
 —
 —
 1,173
Capital expenditures (29,295) (8) (14,426) (32,081) —
 (75,810)
Net cash from (for) investing activities (84,293) (70,091) (10,478) (54,915) 145,140
 (74,637)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Derivative settlement —
 —
 (50,450) —
 —
 (50,450)
Term debt payments, including early termination penalties (14,468) (10,212) (320) —
 —
 (25,000)
Intercompany (payments) receipts —
 93,845
 —
 (93,845) —
 —
Distributions (paid) received (66,675) 110
 —
 —
 —
 (66,565)
Capital (contribution) infusion —
 (60,000) 60,000
 —
 —
 —
Exercise of limited partnership unit options —
 47
 —
 —
 —
 47
Excess tax benefit from unit-based compensation expense —
 (454) —
 —
 —
 (454)
Net cash from (for) financing activities (81,143) 23,336
 9,230
 (93,845) —
 (142,422)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 893
 —
 —
 893
CASH AND CASH EQUIVALENTS            
Net increase for the period 43,000
 1,751
 8,738
 7,089
 —
 60,578
Balance, beginning of period —
 512
 31,540
 3,472
 —
 35,524
Balance, end of period $43,000
 $2,263
 $40,278
 $10,561
 $—
 $96,102
             
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $(117,670) $(49,663) $(42,030) $(12,767) $153,463
 $(68,667)
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates 65,636
 58,171
 (2,442) 32,098
 (153,463) —
Capital expenditures (17,866) —
 (600) (17,363) —
 (35,829)
Net cash from (for) investing activities 47,770
 58,171
 (3,042) 14,735
 (153,463) (35,829)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Net borrowings on revolving credit loans $96,000
 $—
 $—
 $—
 $—
 $96,000
Term debt borrowings 359,022
 256,500
 14,478
 —
 —
 630,000
Note borrowings 294,897
 205,103
 —
 —
 —
 500,000
Payment of debt issuance costs (14,763) (8,538) (190) —
 —
 (23,491)
Term debt payments, including early termination penalties (654,568) (462,054) (14,478) —
 —
 (1,131,100)
Distributions (paid) received (35,688) 868
 —
 —
 —
 (34,820)
Exercise of limited partnership unit options —
 28
 —
 —
 —
 28
Excess tax benefit from unit-based compensation expense —
 (127) —
 —
 —
 (127)
Net cash from (for) financing activities 44,900
 (8,220) (190) —
 —
 36,490
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 (786) —
 —
 (786)
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period (25,000) 288
 (46,048) 1,968
 —
 (68,792)
Balance, beginning of period 25,000
 444
 50,173
 3,213
 —
 78,830
Balance, end of period $—
 $732
 $4,125
 $5,181
 $—
 $10,038
             

29

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the NineThree Months Ended SeptemberMarch 25, 20112012 (As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $169,343
 $48,628
 $48,422
 $25,310
 $(69,338) $222,365
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates (29,986) (39,615) (6,353) 6,616
 69,338
 —
Capital expenditures (38,121) —
 (10,510) (24,249) —
 (72,880)
Net cash from (for) investing activities (68,107) (39,615) (16,863) (17,633) 69,338
 (72,880)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Net (payments) on revolving credit loans (23,200) —
 —
 —
 —
 (23,200)
Term debt borrowings 13,246
 9,358
 334
 —
 —
 22,938
Term debt payments, including early termination penalties (13,831) (9,763) (306) —
 —
 (23,900)
Intercompany (payments) receipts —
 688
 —
 (688) —
 —
Distributions (paid) received (16,668) 64
 —
 —
 —
 (16,604)
Payment of debt issuance costs (11,783) (8,332) (375) —
 —
 (20,490)
Net cash from (for) financing activities (52,236) (7,985) (347) (688) —
 (61,256)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 (1,682) —
 —
 (1,682)
CASH AND CASH EQUIVALENTS            
Net increase for the period 49,000
 1,028
 29,530
 6,989
 —
 86,547
Balance, beginning of period —
 1,461
 6,943
 1,361
 —
 9,765
Balance, end of period $49,000
 $2,489
 $36,473
 $8,350
 $—
 $96,312
             
             
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $(184,504) $10,151
 $(37,239) $(6,697) $136,357
 $(81,932)
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates 62,103
 60,369
 2,208
 11,677
 (136,357) —
Capital expenditures (8,374) —
 (7,125) (11,969) —
 (27,468)
Net cash from (for) investing activities 53,729
 60,369
 (4,917) (292) (136,357) (27,468)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Net borrowings on revolving credit loans 153,000
 —
 2,004
 —
 —
 155,004
Derivative settlement —
 —
 (50,450) —
 —
 (50,450)
Intercompany (payments) receipts —
 (10,320) —
 10,320
 —
 —
Distributions (paid) received (22,225) 74
 —
 —
 —
 (22,151)
Capital (contribution) infusion —
 (60,000) 60,000
 —
 —
 —
Exercise of limited partnership unit options —
 48
 —
 —
 —
 48
Excess tax benefit from unit-based compensation —
 (437) —
 —
 —
 (437)
Net cash from (for) financing activities 130,775
 (70,635) 11,554
 10,320
 —
 82,014
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 (819) —
 —
 (819)
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period —
 (115) (31,421) 3,331
 —
 (28,205)
Balance, beginning of period —
 512
 31,540
 3,472
 —
 35,524
Balance, end of period $—
 $397
 $119
 $6,803
 $—
 $7,319
             
             

30

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the Twelve Months Ended September 30, 2012March 31, 2013
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $186,582
 $(152,159) $12,038
 $318,078
 $(91,985) $272,554
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates (40,694) (47,206) 5,245
 (9,330) 91,985
 —
Sale of other assets 1,173
 —
 —
 —
 —
 1,173
Capital expenditures (33,025) (8) (23,050) (37,037) —
 (93,120)
Net cash for investing activities (72,546) (47,214) (17,805) (46,367) 91,985
 (91,947)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Intercompany term debt (payments) receipts —
 269,500
 —
 (269,500) —
 —
Derivative settlement —
 —
 (50,450) —
 —
 (50,450)
Term debt payments, including early termination penalties (14,467) (10,213) (320) —
 —
 (25,000)
Distributions (paid) received (105,569) 261
 —
 —
 —
 (105,308)
Capital (contribution) infusion —
 (60,000) 60,000
 —
 —
 —
Exercise of limited partnership unit options —
 53
 —
 —
 —
 53
Payment of debt issuance costs —
 —
 (723) —
 —
 (723)
Excess tax benefit from unit-based compensation expense —
 (454) —
 —
 —
 (454)
Net cash from (for) financing activities (120,036) 199,147
 8,507
 (269,500) —
 (181,882)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 1,065
 —
 —
 1,065
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period (6,000) (226) 3,805
 2,211
 —
 (210)
Balance, beginning of period 49,000
 2,489
 36,473
 8,350
 —
 96,312
Balance, end of period $43,000
 $2,263
 $40,278
 $10,561
 $—
 $96,102
             
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $188,221
 $(37,475) $16,546
 $135,165
 $(4,510) $297,947
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates 43,043
 (49,642) (2,479) 4,568
 4,510
 —
Sale of other assets 1,173
 —
 —
 14,885
 —
 16,058
Capital expenditures (43,156) (8) (8,023) (52,075) —
 (103,262)
Net cash for investing activities 1,060
 (49,650) (10,502) (32,622) 4,510
 (87,204)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Net borrowings on revolving credit loans $(57,000) $—
 $(2,004) $—
 $—
 $(59,004)
Term debt borrowings 359,022
 256,500
 14,478
 —
 —
 630,000
Note borrowings 294,897
 205,103
 —
 —
 —
 500,000
Intercompany term debt (payments) receipts —
 104,165
 —
 (104,165) —
 —
Term debt payments, including early termination penalties (669,035) (472,267) (14,798) —
 —
 (1,156,100)
Distributions (paid) received (102,402) 920
 —
 —
 —
 (101,482)
Capital (contribution) infusion —
 —
 —
 —
 —
 —
Exercise of limited partnership unit options —
 57
 —
 —
 —
 57
Payment of debt issuance costs (14,763) (8,537) (191) —
 —
 (23,491)
Excess tax benefit from unit-based compensation expense —
 1,519
 —
 —
 —
 1,519
Net cash from (for) financing activities (189,281) 87,460
 (2,515) (104,165) —
 (208,501)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 477
 —
 —
 477
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period —
 335
 4,006
 (1,622) —
 2,719
Balance, beginning of period —
 397
 119
 6,803
 —
 7,319
Balance, end of period $—
 $732
 $4,125
 $5,181
 $—
 $10,038
             

31

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the Twelve Months Ended SeptemberMarch 25, 20112012 (As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $101,376
 $(9,652) $25,380
 $19,056
 $58,064
 $194,224
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates 25,281
 23,147
 (1,356) 10,992
 (58,064) —
Capital expenditures (44,247) —
 (13,179) (27,488) —
 (84,914)
Net cash from (for) investing activities (18,966) 23,147
 (14,535) (16,496) (58,064) (84,914)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Term debt borrowings 13,246
 9,358
 334
 —
 —
 22,938
Intercompany term debt (payments) receipts —
 2,063
 —
 (2,063) —
 —
Term debt payments, including early termination penalties (24,211) (17,091) (536) —
 —
 (41,838)
Distributions (paid) received (30,559) 121
 —
 —
 —
 (30,438)
Exercise of limited partnership unit options —
 7
 —
 —
 —
 7
Payment of debt issuance costs (12,886) (9,110) (761) —
 —
 (22,757)
Net cash from (for) financing activities (54,410) (14,652) (963) (2,063) —
 (72,088)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 (2,611) —
 —
 (2,611)
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period 28,000
 (1,157) 7,271
 497
 —
 34,611
Balance, beginning of period 21,000
 3,646
 29,202
 7,853
 —
 61,701
Balance, end of period $49,000
 $2,489
 $36,473
 $8,350
 $—
 $96,312
             
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $113,654
 $(89,658) $14,102
 $182,798
 $(367) $220,529
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates (16,818) (6,588) 1,126
 21,913
 367
 —
Capital expenditures (40,662) —
 (22,440) (34,253) —
 (97,355)
Net cash from (for) investing activities (57,480) (6,588) (21,314) (12,340) 367
 (97,355)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Net borrowings (payments) on revolving credit loans 31,000
 —
 (3,110) —
 —
 27,890
Intercompany term debt (payments) receipts —
 166,023
 —
 (166,023) —
 —
Term debt payments, including early termination penalties (13,831) (9,763) (306) —
 —
��(23,900)
Derivative settlement —
 —
 (50,450) —
 —
 (50,450)
Distributions (paid) received (73,343) 273
 —
 —
 —
 (73,070)
Capital (contribution) infusion —
 (60,000) 60,000
 —
 —
 —
Payment of debt issuance costs —
 —
 (723) —
 —
 (723)
Exercise of limited partnership unit options —
 53
 —
 —
 —
 53
Excess tax benefit from unit-based compensation —
 (437) —
 —
 —
 (437)
Net cash from (for) financing activities (56,174) 96,149
 5,411
 (166,023) —
 (120,637)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 (2,473) —
 —
 (2,473)
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period —
 (97) (4,274) 4,435
 —
 64
Balance, beginning of period —
 494
 4,393
 2,368
 —
 7,255
Balance, end of period $—
 $397
 $119
 $6,803
 $—
 $7,319


32

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Business Overview:

We generate our revenues primarily from sales of (1) admission to our parks, (2) food, merchandise and games inside our parks, and (3) hotel rooms, food and other attractions outside our parks. Our principal costs and expenses, which include salaries and wages, advertising, maintenance, operating supplies, utilities and insurance, are relatively fixed and do not vary significantly with attendance.

Each of our properties is run by a park general manager and operates autonomously. Management reviews operating results, evaluates performance and makes operating decisions, including the allocation of resources, on a property-by-property basis.

Aside from attendance and guest per capita statistics, discrete financial information and operating results are not prepared at the regional level, but rather at the individual park level for use by the CEO, who is the Chief Operating Decision Maker (CODM), as well as by the Chief Financial Officer, the Chief Operating Officer, the park general managers, and the Executive Vice President, Operations.


Critical Accounting Policies:
This management’s discussion and analysis of financial condition and results of operations is based upon our unaudited condensed consolidated financial statements, which were prepared in accordance with accounting principles generally accepted in the United States of America. These principles require us to make judgments, estimates and assumptions during the normal course of business that affect the amounts reported in the unaudited condensed consolidated financial statements. Actual results could differ significantly from those estimates under different assumptions and conditions.
Management believes that judgment and estimates related to the following critical accounting policies could materially affect our consolidated financial statements:
 
•Property and Equipment
 
•Impairment of Long-Lived Assets
 
•Goodwill and Other Intangible Assets
 
•Self-Insurance Reserves
 
•Derivative Financial Instruments
 
•Revenue Recognition

Income Taxes
In the thirdfirst quarter of 20122013, there were no changes in the above critical accounting policies previously disclosed in our Annual Report on Form 10-K10-K/A for the year ended December 31, 20112012. except as noted below.
Change in Depreciation Method
Effective January 1, 2013, the Partnership changed its method of depreciation for the group of assets acquired as a whole in 1983, as well as for the groups of like assets of each subsequent business acquisition from the composite method to the unit method.
Historically, the Partnership had used the composite depreciation method for land improvements, buildings, rides and equipment for the group of assets acquired as a whole in 1983, as well as for the group of like assets of each subsequent business acquisition. The unit method was only used for all individual assets purchased. Under the composite depreciation method, assets with similar estimated lives are grouped together and the several pools of assets are depreciated on an aggregate basis. No gain or loss is recognized on normal retirements of composite assets. Instead, the net book value of a retired asset reduces accumulated depreciation for the composite group. Unusual retirements of composite assets could result in the recognition of a gain or loss. Under the unit method of depreciation, individual assets are depreciated over their estimated useful lives, with gains and losses on all asset retirements recognized currently in income.
In order to improve comparability and enhance the level of precision associated with allocating historical cost, the Partnership had determined that it was preferable to change from the composite method of depreciation to the unit method of depreciation for

33

all assets. The Partnership believes that pursuant to generally accepted accounting principles, changing from the composite method of depreciation to the unit method of depreciation is a change in accounting estimate that is effected by a change in accounting principle, which should be accounted for prospectively. This prospective application will result in the discontinuance of the composite method of depreciation for all prior acquisitions with the existing net book value of each composite pool allocated to the remaining individual assets (units) in that pool with each unit assigned an appropriate remaining useful life on an individual unit basis. Assigning a useful life to each unit in the various composite pools had an insignificant effect on the weighted average useful lives of all assets that were previously accounted for under the composite method.
The change in depreciation method had an immaterial impact on the Condensed Consolidated Financial Statements for the quarter ended March 31, 2013.Future asset retirements could have a material impact on the Condensed Consolidated Financial Statements in the periods such items occur.


Adjusted EBITDA:
We believe that Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, other non-cash items, and adjustments as defined in the Amended 20102013 Credit Agreement) is a meaningful measure of park-level operating profitability because we use it for measuring returns on capital investments, evaluating potential acquisitions, determining awards under incentive compensation plans, and calculating compliance with certain loan covenants. Adjusted EBITDA is provided in the discussion of results of operations that follows as a supplemental measure of our operating results and is not intended to be a substitute for operating income, net income or cash flows from operating activities as defined under generally accepted accounting principles. In addition, Adjusted EBITDA may not be comparable to similarly titled measures of other companies.

33

The table below sets forth a reconciliation of Adjusted EBITDA to net income for the three-, nine- and twelve-month periods ended September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012.
 
  Three months ended Nine months ended Twelve months ended
  9/30/2012 9/25/2011 9/30/2012 9/25/2011 9/30/2012 9/25/2011
  (13 weeks) (13 weeks) (39 weeks) (38 weeks) (53 weeks) (52 weeks)
  (In thousands )
Net income $140,688
 $152,218
 $111,595
 $71,574
 $110,767
 $8,116
Interest expense 26,863
 41,353
 83,902
 124,650
 116,437
 171,049
Interest income (13) (32) (31) (120) (68) (194)
Provision (benefit) for taxes 51,713
 37,844
 41,395
 21,773
 30,839
 (12,424)
Depreciation and amortization 60,747
 63,448
 113,156
 110,857
 128,136
 126,382
EBITDA 279,998
 294,831
 350,017
 328,734
 386,111
 292,929
Net effect of swaps (175) (3,962) (1,318) (3,507) (10,930) 1,772
Unrealized foreign currency (gain) loss (14,737) 17,314
 (14,108) 13,224
 (17,502) 549
Non-cash equity expense (income) 362
 —
 2,630
 (228) 2,619
 (269)
Loss on impairment of goodwill and other intangibles —
 —
 —
 —
 —
 903
Loss on impairment/retirement of fixed assets, net 25,000
 880
 24,230
 1,076
 25,719
 63,509
Terminated merger costs —
 —
 —
 80
 150
 (79)
Refinancing costs —
 (195) —
 955
 —
 955
Other non-recurring items (as defined) 1,861
 836
 4,026
 6,107
 7,445
 6,107
Adjusted EBITDA (1)
 $292,309
 $309,704
 $365,477
 $346,441
 $393,612
 $366,376
             
(1) As permitted by and defined in the Amended 2010 Credit Agreement        
  Three months ended Twelve months ended
  3/31/2013 3/25/2012 3/31/2013 3/25/2012
  (13 weeks) (12 weeks) (53 weeks) (52 weeks)
  (In thousands)
Net income (loss) $(109,126) $(65,415) $58,145
 $84,807
Interest expense 25,763
 26,803
 109,579
 142,876
Interest income (40) (16) (92) (92)
Provision (benefit) for taxes (35,659) (21,539) 17,638
 5,937
Depreciation and amortization 4,786
 4,079
 127,013
 125,892
EBITDA (114,276) (56,088) 312,283
 359,420
Loss on early extinguishment of debt 34,573
 —
 34,573
 —
Net effect of swaps 9,211
 (970) 8,689
 (15,976)
Unrealized foreign currency (gain) loss 8,881
 (8,249) 7,949
 8,502
Non-cash equity expense 2,933
 1,700
 4,498
 1,689
Loss on impairment/retirement of fixed assets, net 600
 92
 30,844
 11,251
(Gain) on sale of other assets —
 —
 (6,625) —
Terminated merger costs —
 —
 —
 230
Refinancing costs —
 —
 —
 (34)
Other non-recurring items (as defined) 805
 1,721
 3,264
 6,823
Adjusted EBITDA (1)
 $(57,273) $(61,794) $395,475
 $371,905
         
(1) As permitted by and defined in the 2013 Credit Agreement    

34

Results of Operations:

Our results of operations for the nine, three and twelve months ended September 30, 2012 and September 25, 2011 are not directly comparable as the current nine- and twelve month periods include an additional week of operations due to the timing of the fiscal third quarter close, and as the current three-month period includes fewer operating days due to the timing of the fiscal second and third quarter closes. Since a large portion of the variances in our statements of operations is due to the difference in the number of operating days in the current fiscal periods, we will also compare current operating results to the prior year period ended October 2, 2011.

Immaterial Restatement -

We have made two separate corrections relating to our use of the composite depreciation methodmethod.

The first correction, which impacts the Balance Sheet at March 25, 2012 and the Statement of Operations and Other Comprehensive Income for the group3 and 12 month periods ended March 25, 2012, related to a misapplication of assets acquired as a whole in 1983, as well as for groups of assets in each subsequent business acquisition.the composite depreciation method. Upon the normal retirement of an asset within a composite group, our practice generally hashad been to extend the depreciable life of that composite group beyond its original estimated useful life. In conjunction with the preparation of our financial statements for the three months ended July 1,in 2012, wemanagement determined that this methodology was not appropriate. As a result, we revised the useful lives of our composite groups to their original estimated useful life (ascribed upon acquisition) and corrected previously computed depreciation expense (and accumulated depreciation).

The second correction, which impacts the Balance Sheet at March 25, 2012 and the Statement of Operations and Other Comprehensive Income for the 12 month period ended March 25, 2012, reflects a subsequent determination that a disposition from our composite group of assets was considered to be unusual. In certain situations under the composite method, disposals are considered unusual and, accordingly, losses are not included in the composite depreciation pool but are rather charged immediately to expense. In 2013, the Partnership's initial determination of whether a specific asset retired under the composite method of depreciation in 2011 was normal was challenged by the SEC Staff. We evaluated the amount and nature of these adjustments andultimately concluded that theysuch disposition was unusual and that a $8.8 millioncharge be reflected in the 2011 financial statements.

First Quarter -

Operating results for the first quarter historically include less than 5% of our full-year revenues and attendance. The results include normal off-season operating, maintenance and administrative expenses at our ten seasonal amusement parks and four outdoor water parks, as well as daily operations at Knott's Berry Farm, which is open year-round, and Castaway Bay, which is generally open daily from Memorial Day to Labor Day plus a limited daily schedule for the balance of the year.
The following table presents key financial information for the three months ended March 31, 2013 and March 25, 2012:
  Three months ended Three months ended Increase (Decrease)
  3/31/2013 3/25/2012 $ %
  (13 weeks) (12 weeks)    
    (As restated)    
  (Amounts in thousands)
Net revenues $41,799
 $28,198
 $13,601
 48.2 %
Operating costs and expenses 102,733
 93,356
 9,377
 10.0 %
Depreciation and amortization 4,786
 4,079
 707
 17.3 %
Loss on impairment / retirement of fixed assets 600
 92
 508
 N/M
Operating loss $(66,320) $(69,329) $3,009
 (4.3)%
         
Other Data:        
Adjusted EBITDA $(57,273) $(61,794) $4,521
 (7.3)%

For the quarter ended March 31, 2013, net revenues increased to $41.8 million from $28.2 million for the first quarter of 2012. The increase between periods was primarily due to the strong first-quarter performance in both attendance and per-capita spending at Knott's Berry Farm, our only year-round property, compared with the first quarter a year ago, as well as an extra week of operations due to the earlier timing of Easter in 2013 compared to 2012. At the end of the first quarter, only five of our 15 properties were not materialin operation. The other parks, including our larger parks, Cedar Point and Kings Island located in Ohio and Canada's Wonderland in Toronto, were in the final stages of preparing to eitheropen for the 2013 operating season.

Operating costs and expenses for the quarter increased $9.3 million to $102.7 million from $93.4 million in 2012 and were in line with expectations. Operating results for the first quarter include normal off-season operating, maintenance and administrative

35

expenses at our prior annualseasonal amusement and water parks, and daily operations at Knott’s Berry Farm and Castaway Bay. The increase in first-quarter costs reflects a $5.4 million increase in operating expenses and a $2.3 million increase in selling, general and administrative ("SG&A") expenses. The cost of food, merchandise and games revenues for the period increased slightly due to sales volume increases at Knott's Berry Farm in the first quarter of 2013. The $5.4 million increase in operating expenses was due primarily to the extra week of operations in the first quarter of 2013 compared with 2012. For the quarter, labor costs increased $3.8 million, maintenance expense increased $2.2 million and operating supplies increased $0.9 million. These increases in operating costs were somewhat offset by a reduction in insurance expense due to a prior-year, non-recurring public liability claim at one of our parks. The $2.3 million increase in SG&A expenses was due primarily to increases in first-quarter advertising fees and full-time labor costs, largely related to full staffing levels.

Interest expense for the first quarter of 2013 was $25.8 million, representing a $1.0 million decrease compared to the first quarter of 2012. The decrease in interest expense was primarily due to the settlement of our Canadian swap in the first quarter of 2012.

During the first quarter of 2013, the net effect of our swaps decreased $10.2 million to a non-cash charge to earnings of $9.2 million, reflecting the regularly scheduled amortization of amounts in AOCI related to interest rate swaps, the write off of amounts in AOCI related to de-designated interest rate swaps, as well as gains from marking the ineffective and de-designated swaps to market. During the first quarter of 2013 we also recognized a $9.0 million charge to earnings for unrealized/realized foreign currency gains and losses, $8.9 million of which represents an unrealized foreign currency loss on the U.S.-dollar denominated debt held at our Canadian property. Due to our March 2013 refinancing, loan fees related to our 2010 and 2011 financings were written off, resulting in a $34.6 million charge to earnings in the period.

During the quarter, a benefit for taxes of $35.7 million was recorded to account for publicly traded partnership (PTP) taxes and the tax attributes of our corporate subsidiaries, compared to a benefit for taxes of $21.5 million in the same period a year ago. Actual cash taxes paid or quarterly financial statements. Nonetheless, the historical financial statement amounts included in this filing have been corrected for this error. We expect to likewise correct previously presented historical financial statementspayable are estimated to be included in future filings, including the annual financial statements to be included in our Annual Report on Form 10-Kbetween $14-$17 million for the 2013 calendar year.

After interest expense and the provision for taxes, net loss for the quarter totaled $109.1 million, or $1.95 per diluted limited partner unit, compared with net loss of $65.4 million, or $1.18 per diluted limited partner unit, for the first quarter a year ending December 31, 2012.ago. The larger net loss for the period is due to the loss on early debt extinguishment and a change in the unrealized/realized loss on foreign currency exchange, offset somewhat by the increased first-quarter revenues.


NineTwelve Months Ended September 30, 2012March 31, 2013 -

The fiscal nine-monthtwelve-month period ended September 30, 2012,March 31, 2013, consisted of a 39-week53-week period and included a total of 2,178 operating days compared with 3852 weeks and 2,148 operating days for the fiscal nine-monthtwelve-month period ended SeptemberMarch 25, 2011.2012. Operating days were virtually identical, as the current period had only one additional operating day.

The following table presents key financial information for the ninetwelve months ended September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012:
  Nine months ended Nine months ended Increase (Decrease)
  9/30/2012 9/25/2011 $ %
  (39 weeks) (38 weeks)    
  (Amounts in thousands except per capita spending)
         
Net revenues $939,249
 $883,627
 $55,622
 6.3 %
Operating costs and expenses 580,246
 541,665
 38,581
 7.1 %
Depreciation and amortization 113,156
 110,857
 2,299
 2.1 %
Loss on impairment / retirement of fixed assets, net 24,230
 1,076
 23,154
 N/M
Operating income $221,617
 $230,029
 $(8,412) (3.7)%
N/M - Not meaningful        
Other Data:        
Adjusted EBITDA $365,477
 $346,441
 $19,036
 5.5 %
Adjusted EBITDA margin 38.9% 39.2% $—
 (0.3)%
Attendance 20,689
 20,114
 575
 2.9 %
Per capita spending $41.78
 $40.15
 $1.63
 4.1 %
Out-of-park revenues $99,526
 $97,622
 $1,904
 2.0 %
  Twelve months ended Twelve months ended Increase (Decrease)
  3/31/2013 3/25/2012 $ %
  (53 weeks) (52 weeks)    
    (As restated)    
  (Amounts in thousands)
Net revenues $1,082,055
 $1,029,801
 $52,254
 5.1%
Operating costs and expenses 694,139
 666,535
 27,604
 4.1%
Depreciation and amortization 127,013
 125,892
 1,121
 0.9%
(Gain) on sale of other assets (6,625) —
 (6,625) N/M
Loss on impairment/retirement of fixed assets 30,844
 11,251
 19,593
 174.1%
Operating income $236,684
 $226,123
 $10,561
 4.7%
N/M - Not meaningful        
Other Data:        
Adjusted EBITDA $395,475
 $371,905
 $23,570
 6.3%
Adjusted EBITDA margin 36.5% 36.1% —
 0.4%


36

Net revenues totaled $1,082.1 millionfor the ninetwelve months ended September 30, 2012March 31, 2013, increasing $52.3 million, from $1,029.8 million increased $55.6 million to $939.2 million from $883.6 million duringfor the ninetrailing twelve months ended SeptemberMarch 25, 20112012. The increase in revenues reflects an increase of 575,000 visits, or 3%, in combined attendanceRevenues for the nine-monthtwelve-month period ended September 30, 2012 when compared withincreased 5% on the nine-month period ended September 25, 2011. The increase in revenues also reflects a 4%, or $1.63, increase in averagestrength of higher attendance and in-park guest per capita spending. In-park guest per capita spending represents the amount spent per attendee to gain admission to a park, plus all amounts spent while inside the park gates. The increase in per capita spending was largely due to the successful introduction of new premium benefit offerings and the positive impact of new customer messaging and dynamic pricing initiatives. Attendance increased year-over-year on virtually the same number of operating days as our season pass sales and visits increased during the same nine-month period and a 2%, or $1.9 million, increase incomparable periods.

Meanwhile, out-of-park revenues. Out-of-park revenues, includewhich represents the sale of hotel rooms, food, merchandise and other complementary activities located outside of the park gates, as well as e-commerce transaction fees. In-park guest per capita spending representsincreased slightly in the average amount spent per attendee to gain admission to a park

35

plus all amounts spent while inside the park gates. Revenuescomparable periods. The increase in net revenues for the first ninetwelve months of the yearended March 31, 2013 also reflectreflects the negative impact of currency exchange rates and the weakening U.S. dollar on our Canadian operations ($4.5(approximately $4.5 million) during the period.

For the nine-month period ended September 30, 2012, operatingOperating costs and expenses increased 7%$27.6 million, or 4%, or $38.5to $694.1 million to $580.2 million from $541.7versus $666.5 million for 2012 and were in line with expectations. The increase in costs and expenses was the nine-month period ended September 25, 2011, the net result of a $3.9$4.0 million increase in cost of goods sold, a $29.3$19.8 million increase in operating expenses, and a $5.4 million$3.9 increase in selling, generalSG&A costs. The 4% increase in cost of goods sold is consistent with anticipated cost increases associated with our efforts to improve the quality of food and other product offerings at our parks. Operating expenses increased due to several factors, including higher employment-related costs, higher operating supply costs, and higher self-insurance expenses. Employment-related costs increased approximately $12.6 million due to normal merit increases, increases in health-related benefit costs, additional staffing levels associated with new premium benefit offerings and other initiatives aimed at improving the overall guest experience, and non-recurring severance payments. Operating supplies and expenses increased approximately $5.3 million due primarily to initiatives to expand or enhance live entertainment at the parks, as well as incremental costs associated with our e-commerce platform and higher attendance. These increases in operating costs were somewhat offset by a reduction in insurance expense due to a prior-year (first quarter of 2012), non-recurring public liability claim at one of our parks.

The increase in SG&A costs was due to an increase in employment-related costs ($4.5 million), operating supplies ($3.8 million), and agency advertising fees ($2.7 million), offset by decreases in professional and administrative costs ("SG&A")($5.9 million). DepreciationThe increase in employment costs was primarily the result of higher wages and amortization expense for the period increased $2.3 millionbenefits due to normal merit increases and full-staffing levels. Increases in operating supplies and advertising fees were due to the earlier timing of Easter, as well as incremental costs to support operating initiatives including general infrastructure improvements. Professional and administrative fees decreased primarily due to a reduction in litigation expenses and costs for SEC compliance matters related to Special Meeting requests. The overall increase in capital spending when compared withcosts and expenses also reflects the prior year. The positive impact of exchange rates on our Canadian operations ($1.2 million) during the period.

Loss on impairment/retirement of fixed assets, reported fornet, during the nine-month period totaled $30.8 million, which reflects a non-cash charge to earnings of $25.0 million for the partial impairment of operating and non-operating fixed assets at Wildwater Kingdom netalong with losses on other retirements. During the twelve-month period ended March 31, 2013, two non-core assets were sold at gains totaling $6.6 million. During the twelve-month period ended March 25, 2012, a charge of an $0.8$11.3 million gain fromfor the sale of a non-operating asset at one of our properties. After depreciation, amortization, loss on impairment / retirement of fixed assets was recorded which includes the retirement of the asset as described in Note 11 to the financial statements.

Depreciation and amortization expense for the period increased $1.1 million compared with the prior period due primarily to an increase in capital expenditures for the 2012 season. After depreciation and amortization, as well as impairment charges and all other non-cash costs, operating income for the current period decreased $8.4increased $10.6 million to $221.6$236.7 million through the first nine months of 2012 from operating income of $230.0 million through the first nine months of 2011.$226.1 million.

Interest expense for the first three quarters of 2012 was $83.9twelve months ended March 31, 2013 decreased $33.3 million a decrease of $40.7to $109.6 million, from $142.9 million for the first three quarters of 2011.same twelve-month period a year ago. The reduction in interest expense iswas primarily attributable to an approximate 300 basis point (bps) decline in our effective interest rate, the result of lower fixed rates on London InterBank Offered Rate (LIBOR) within our interest-rate swap contracts. TheAdditionally during the current period, $25.0 million of term debt principal payments were made, reducing our average fixed LIBOR rate in our swap agreements declined from 5.62% in 2011 to 2.48% in 2012.debt outstanding.

ForDuring the current period, the net effect of our interest rate swaps decreased $2.2was recorded as a charge to earnings of $8.7 million between years, resulting incompared to a non-cash benefit to earnings of $1.3$16.0 million for the first nine months of 2012, as compared with a $3.5 million non-cash benefit to earnings for the nine-month period in 2011.prior period. The difference reflects the regularly scheduled amortization of amounts in Accumulated other comprehensive income ("AOCI")AOCI related to the swaps and the write off of AOCI amounts related to de-designated interest rate swaps, which were offset by gains from marking the ineffective and de-designated swaps to market and foreign currency gains related to the U.S.-dollar denominated Canadian term loan in the current period. During the current year-to-date period, we also recognized a $13.9$8.2 million net benefitcharge to earnings for unrealized/realized foreign currency gains,losses, which included a $14.1$7.9 million unrealized foreign currency gainloss on the U.S.-dollar denominated debt held at our Canadian property. Due to our March 2013 refinancing, loan fees that were paid as part

37

of our 2010 and 2011 financings were written off, resulting in a $34.6 million non-cash charge to earnings recorded in "Loss on early debt extinguishment" on the consolidated statement of operations.

During the first fiscal nine months of 2012, aA provision for taxes of $41.4$17.6 million was recorded to accountin the period for publicly traded partnership (“PTP”) taxes and the tax attributes of our corporate subsidiaries.subsidiaries and publicly traded partnership (PTP) taxes. This compares with a $21.8 million provision for taxes of $5.9 million in period ended March 25, 2012 for the first fiscal nine monthstax attributes of 2011. The year-over-year variation in the tax provision is due primarily to an increase in the income subject to tax. Actual cash taxes paid or payable for the 2012 calendar year are estimated to be between $11our corporate subsidiaries and $13 million. The Partnership also expects to receive a $10.4 million refund of prior year taxes paid resulting from the carry back of the loss recognized from the settlement of a derivative contract.PTP taxes.

After interest expense and the benefitprovision for taxes, net income for the nine months ended September 30, 2012period totaled $111.6$58.1 million, or $2.00$1.04 per diluted limited partner unit, compared with net income of $71.6$84.8 million, or $1.28$1.52 per unit, for the nine months ended September 25, 2011.a year ago.

It is important to note that the current nine-month results benefited from an additional week, or 30 more operating days, due to the timing of the third quarter fiscal close. Comparing both 2012 and 2011 on a 39-week basis, net revenues would have been up $41.1 million, or 5%, on increases in both attendance and in-park guest per capita spending. On a comparable basis, attendance would have increased 228,000 visits, primarily due to an increase in season pass attendance, and in-park per capita spending would have increased $1.67, or 4%, primarily due to new premium benefit offerings and the positive impact of new customer messaging and dynamic pricing. Over that same comparable basis, out-of-park revenues would have decreased by approximately $0.3 million, or less than 1%.

Operating costs and expenses on a comparable 39-week basis would have increased approximately $27.9 million, or 5%, due to an increase of $2.9 million, or 3%, in cost of goods sold, an increase in operating expenses of $21.9 million, or 6%, and an increase of $3.1 million, or 3%, in SG&A costs. The overall increase in costs and expenses also reflects the positive impact of exchange rates on our Canadian operations (approximately $1.6 million) during the nine-month period ended September 30, 2012.

The 3% increase in cost of goods sold is consistent with anticipated cost increases associated with our efforts to improve the quality of food and other product offerings at the parks in 2012. Operating expenses in the 39-week period increased due to several factors, including higher employment-related costs, higher maintenance and operating supply costs, and higher self-insurance expenses. Employment-related costs increased approximately $11.0 million due to normal merit increases, increases in health-related benefit costs, additional staffing levels associated with new premium benefit offerings and other initiatives aimed at improving the overall guest experience, and non-recurring severance payments. Due in part to mild weather, we were able to accelerate off-season maintenance projects into the first half of the year, resulting in year-over-year maintenance expense increasing by approximately $4.4 million. Operating supplies and expenses increased approximately $4.0 million due primarily to initiatives

36

to expand or enhance live entertainment at the parks, as well as incremental costs associated with our new e-commerce platform. During the first nine months, public liability and workers compensation expense increased $2.1 million due to claim settlements and an increase in our reserves based on management's estimates of future claims.

SG&A expense for the comparable 39-week period increased approximately $3.1 million compared to same period in 2011 due to an increase in operating supplies of $4.7 million, an increase in advertising costs of $1.5 million, and an increase in employee related costs of $2.9 million. The operating supplies and advertising increases were due to incremental costs to support 2012 operating initiatives including general infrastructure improvements. These increases in expense were offset somewhat by a reduction in litigation expenses and costs for SEC compliance matters related to Special Meeting requests in 2011.

For the fiscal nine-month period ended September 30, 2012,We believe Adjusted EBITDA (as defined in the Amended 2010 Credit Agreement), which we believe is a meaningful measure of our park-level operating results (for additional information regarding Adjusted EBITDA, including how we define and use Adjusted EBITDA, as well as a reconciliation from net income, see Note 6 in Item 6, “Selected Financial Data,” on pages 15-16). For the twelve-month period ended March 31, 2013, Adjusted EBITDA increased $23.6 million, or 6%, to $365.5 million compared with $346.4 million$395.5 million. Over this same period, our Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) increased 40 bps to 36.5% from 36.1% for the fiscal nine-monthtwelve-month period ended SeptemberMarch 25, 2011. This2012. The increase was due in part to the extra week in the current fiscal nine-month period. On a same-week basis, Adjusted EBITDA for the nine-month period would have still been up approximately $15.2 million, or 4%, between years,was primarily due to anthe increase in revenues resulting from the successful introduction of our new premium benefit offerings and dynamic pricing initiatives, as well as the successful expansion of our season pass base. These revenue gains were offset somewhat by an increase in operating costs in the period. For additional information regarding Adjusted EBITDA, including how we define Adjusted EBITDA, why we believe it provides useful information, and for a reconciliation to net income, see pages 33-34.

Third Quarter -

The fiscal three-month period ended September 30, 2012, consisted of a 13-week period and included a total of 1,177 operating days compared with 13 weeks and 1,253 operating days for the fiscal three-month period ended September 25, 2011. The variance in days is due to a shift in the operating calendar.

The following table presents key financial information for the three months ended September 30, 2012 and September 25, 2011:
  Three months ended Three months ended Increase (Decrease)
  9/30/2012 9/25/2011 $ %
  (13 weeks) (13 weeks)    
  (Amounts in thousands)
Net revenues $553,445
 $572,268
 $(18,823) (3.3)%
Operating costs and expenses 263,657
 262,188
 1,469
 0.6 %
Depreciation and amortization 60,747
 63,448
 (2,701) (4.3)%
Loss on impairment / retirement of fixed assets 25,000
 880
 24,120
 N/M
Operating income $204,041
 $245,752
 $(41,711) (17.0)%
N/M - Not meaningful        
Other Data:        
Adjusted EBITDA $292,309
 $309,704
 $(17,395) (5.6)%
Adjusted EBITDA margin 52.8% 54.1% —
 (1.3)%
Attendance 11,960
 12,933
 (973) (7.5)%
Per capita spending $42.90
 $40.84
 $2.06
 5.0 %
Out-of-park revenues $54,260
 $58,879
 $(4,619) (7.8)%

For the quarter ended September 30, 2012, net revenues decreased 3%, or $18.8 million, to $553.5 million from $572.3 million in 2011. This decrease reflects a 5% increase in average in-park per capita spending, offset by an 8% decrease in combined attendance (973,000 visits), and an 8% ($4.6 million) decrease in out-of-park revenues. The decreases in net revenues and attendance was largely attributable to the decrease in operating days in the quarter due to the way the fiscal calendar fell in 2012 compared with 2011. In-park per capita spending increased primarily due to new premium benefit offerings and the positive impact of new customer messaging and dynamic pricing. Out-of-park revenues decreased due to soft results in accommodations being somewhat offset by fees generated from our new e-commerce initiatives. The decrease in revenues for the third quarter of 2012 also reflects the negative impact of exchange rates on our Canadian operations ($2.4 million) during the period.


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Operating costs and expenses for the quarter increased less than 1%, or $1.5 million, to $263.7 million from $262.2 million in the third quarter of 2011, the net result of a $1.4 million decrease in cost of goods sold, a $1.9 million increase in operating expenses and a $1.0 million increase in SG&A costs. Operating cost and expense variances between years were also affected by the fewer number of operating days in the current fiscal quarter, as discussed above. Depreciation and amortization expense for the quarter decreased $2.7 million due primarily to the reduction in operating days in the period, on which depreciation expense is based. During the current quarter, we recognized a non-cash charge to earnings of $25.0 million for the partial impairment of operating and non-operating fixed assets at Wildwater Kingdom.

Interest expense for the third quarter of 2012 was $26.9 million, representing an $14.5 million decrease from the interest expense for the third quarter of 2011. As mentioned in the nine-month discussion above, interest expense decreased primarily due to an approximate 300 bps decline in our effective interest rate. The decline in the effective interest rate is primarily due to lower fixed rates of LIBOR in debt associated derivative contracts, which declined from 5.62% in 2011 to 2.48% in 2012.

The net effect of our swaps during the third quarter was a non-cash benefit to earnings of $0.2 million, representing a decrease of $3.8 million from the prior year. This non-cash benefit reflects the regularly scheduled amortization of amounts in AOCI related to the swaps. During the 2012 third quarter, we also recognized a $15.0 million net benefit to earnings for unrealized/realized foreign currency gains, $14.7 million of which represents an unrealized foreign currency gain on the U.S.-dollar denominated debt held at our Canadian property.

During the quarter, a provision for taxes of $51.7 million was recorded to account for PTP taxes and the tax attributes of our corporate subsidiaries, compared to a provision for taxes of $37.8 million in the same period a year ago. The variation in the tax provision recorded between periods is due primarily to the increase in income subject to tax. After interest expense and the provision for taxes, net income for the quarter totaled $140.7 million, or $2.51 per diluted limited partner unit, compared with net income of $152.2 million, or $2.73 per unit, for the third quarter a year ago.

It is important to note that the current three-month results were negatively impacted by 76 less operating days, due to the timing of the second and third quarter fiscal closes. Comparing the third quarters of 2012 and 2011 on a comparable operating-day basis, net revenues would have been up $20.8 million, or 4%, on an increase in average in-park guest per capita spending offset by a slight decrease in attendance and a 3% decrease in out-of-park revenues.

Operating costs and expenses on a comparable operating-day basis would have increased approximately $12.4 million, or 5%, on a $2.1 million increase in cost of goods sold, an $8.4 million increase in operating expenses, and $1.9 million increase in SG&A costs. The overall increase in costs and expenses also reflects the positive impact of exchange rates on our Canadian operations (approximately $0.6 million) during the third quarter. The increase in cost of goods sold is consistent with anticipated cost increases associated with our efforts to improve the quality of food and other product offerings at the parks in 2012. Consistent with our nine-month discussion above, operating expenses in the third quarter increased as a result of higher employment-related costs, higher maintenance and operating supply costs, and higher self-insurance expenses. The increase in SG&A expense for the quarter reflects an increase in operating supplies associated with the new e-commerce initiative and general park infrastructure improvements, offset slightly by a reduction in litigation expenses and costs for SEC compliance matters related to Special Meeting requests in the third quarter of 2011.

For the current quarter, Adjusted EBITDA decreased to $292.3 million from $309.7 million for the fiscal third quarter of 2011. The $17.4 million decrease in Adjusted EBITDA was due to the shift in operating days during the quarter. On a same week basis, Adjusted EBITDA would have increased $11.3 million due to incremental revenues resulting from the introduction of new premium benefit offerings, which contributed to increased average guest per capita spending, as well as an increase in attendance in the quarter. Partially offsetting these gains on a same week basis were higher park-level operating costs during the period related to park pre-opening and off-season maintenance projects and increases in costs to support 2012 initiatives, including a new e-commerce platform and infrastructure improvements. For additional information regarding Adjusted EBITDA, including how we define Adjusted EBITDA, why we believe it provides useful information, and for a reconciliation to net income, see pages 33-34.










38

Twelve Months Ended September 30, 2012 -

The fiscal twelve-month period ended September 30, 2012, consisted of a 53-week period and included a total of 2,416 operating days compared with 52 weeks and 2,381 operating days for the fiscal twelve-month period ended September 25, 2011.

The following table presents key financial information for the twelve months ended September 30, 2012 and September 25, 2011:
  Twelve months ended Twelve months ended Increase (Decrease)
  9/30/2012 9/25/2011 $ %
  (53 weeks) (52 weeks)    
  (Amounts in thousands)
Net revenues $1,084,094
 $1,013,316
 $70,778
 7.0%
Operating costs and expenses 701,915
 650,925
 50,990
 7.8%
Depreciation and amortization 128,136
 126,382
 1,754
 1.4%
Loss on impairment of goodwill and other intangibles —
 903
 (903) N/M
Loss on impairment/retirement of fixed assets 25,719
 63,509
 (37,790) N/M
Operating income $228,324
 $171,597
 $56,727
 33.1%
N/M - Not meaningful        
Other Data:        
Adjusted EBITDA $393,612
 $366,376
 $27,236
 7.4%
Adjusted EBITDA margin 36.3% 36.2% —
 0.2%
Attendance 23,961
 23,135
 826
 3.6%
Per capita spending $41.44
 $39.91
 $1.53
 3.8%
Out-of-park revenues $119,460
 $114,258
 5,202
 4.6%

Net revenues totaled $1,084.1 million for the twelve months ended September 30, 2012, increasing $70.8 million, from $1,013.3 million for the trailing twelve months ended September 25, 2011. The increase in revenues was due to an increase in attendance of 826,000 visits, or 4%, an increase in average in-park per capita spending of $1.53, or 4%, and an increase in out-of-park revenues of $5.2 million, or 5%. The attendance increase was due to an increase in season pass visitation as well as the effect of the extra operating days in the period. The increase in average in-park guest per capita spending is primarily due to new premium benefit offerings and the positive impact from new customer messaging and dynamic pricing. Out-of-park revenues increased due to our hotel properties and due to an increase in fees generated by our new e-commerce initiatives. The increase in revenues was also positively affected by the additional operating days in the current fiscal period.

When comparing the two twelve-month periods, operating costs and expenses increased $51.0 million, or 8%, to $701.9 million in 2012 from $650.9 million in 2011. The increase in operating costs and expenses was the net result of a $5.2 million increase in cost of goods sold, a $33.2 million increase in operating expenses and an increase of $12.6 million in selling, general and administrative costs. The increase in operating expenses is primarily attributable to higher employment related expenses of $15 million, $6 million of higher maintenance costs, $1 million in higher insurance costs, and $5 million of higher operating supply costs. The increase in wages is largely due to increased seasonal labor hours as a result of expanded operating hours at several parks, additional attractions and guest services, and the overall effect of increased attendance. The increase in insurance costs was primarily the result of claim settlements and increases in our reserves based on future estimated claim liabilities. As discussed in the nine- and three-month sections, maintenance costs increased primarily due to the earlier timing of planned off-season projects, as well as an increase in the number of projects designed to add to the guest experience. The increase in operating supply costs relates primarily to an increase in attendance over the past year, as well as incremental costs associated with the new e-commerce platform. The increase in SG&A costs includes $5 million in costs largely related to the launching of several new revenue initiatives for the 2012 season, as well as a $3 million increase in advertising expense as we transitioned to a new advertising agency for 2012. Employment related expenses increased $5 million primarily due to the receipt of a non-recurring payroll tax credit of $2.5 million recorded in the fourth quarter of 2010, as well as an increase in retirement expenses and non-recurring severance payments in the current twelve-month period. The overall increase in costs and expenses also reflects the positive impact of exchange rates on our Canadian operations (approximately $1.6 million) during the twelve-month period ended September 30, 2012.

Depreciation and amortization expense for the trailing-twelve-month periods increased $1.8 million between years due to the increase in capital spending during the current-year period compared with the prior year. During the twelve months ended September 30, 2012, we recognized $0.7 million in non-cash charges for the retirement of assets in the normal course of business. Additionally, we recorded a non-cash charge of $25.0 million for the partial impairment of operating and non-operating fixed

39

assets at Wildwater Kingdom during the third quarter in 2012. This compares to a non-cash charges recognized during the twelve-month period ended September 25, 2011 of $62.0 million at California's Great America for the partial impairment of its fixed assets and $1.5 million for asset retirements across all properties. Additionally, a non-cash charge of $0.9 million was recorded during the fourth quarter of 2010 for the partial impairment of trade-names originally recorded at the time of the PPI acquisition. It is important to note that each of our parks produces positive cash flow, and that trade-name write-downs and fixed asset impairment losses do not affect cash, Adjusted EBITDA or liquidity.

After depreciation, amortization, loss on impairment of the trade-names, loss on impairment / retirement of fixed assets, and all other non-cash costs, operating income for the twelve months ended September 30, 2012 increased $56.7 million to $228.3 million compared with $171.6 million for the same period a year ago.

Interest expense for the twelve month period ended September 30, 2012 decreased $54.6 million to $116.4 million from $171.0 million for the prior twelve month period ended September 25, 2011. As mentioned in the nine-month discussion above, interest expense decreased primarily due to an approximate 300 bps decline in our effective interest rate. The decline in the effective interest rate is primarily due to lower fixed rates of LIBOR in debt associated derivative contracts, which declined from 5.62% in 2011 to 2.48% in 2012.

The net effect of our swaps during the period was a non-cash benefit to earnings of $10.9 million, representing an increase of $12.7 million from the same period ended September 25, 2011. This non-cash benefit reflects gains from marking the ineffective and de-designated swaps to market, offset somewhat by the regularly scheduled amortization of amounts in AOCI related to the swaps and foreign currency losses related to the U.S.-dollar denominated Canadian term loan in the current twelve month period. During the current twelve-month period, we also recognized a $18.7 million net benefit to earnings for unrealized/realized foreign currency gains and losses, $17.5 million of which represents an unrealized foreign currency gain on the U.S.-dollar denominated debt held at our Canadian property.

A provision for taxes of $30.8 million was recorded to account for PTP taxes and the tax attributes of our corporate subsidiaries during the twelve-month period ended September 30, 2012, compared with a net benefit for taxes of $12.4 million during the same twelve-month period a year ago. The variation in the recorded tax provision between periods is due to the higher income subject to tax for the twelve-month period ending September 30, 2012 and the tax benefit of the impairment charge recorded in the previous twelve-month period.

After interest expense and the provision for taxes, net income for the twelve months ended September 30, 2012 was $110.8 million, or $1.98 per diluted limited partner unit, compared with net income of $8.1 million, or $0.15 per diluted limited partner unit, for the twelve months ended September 25, 2011.

It is important to note that due to the timing of the third quarter fiscal close results for the twelve-month period ended September 30, 2012 benefited from an additional week (53 weeks) compared to the twelve-month period ended September 25, 2011 (52 weeks). Comparing the twelve-month periods for both 2012 and 2011 on a 53-week basis, net revenues would have been up $56.2 million, or 5%, on increases in attendance, in-park guest per capita spending and out-of-park revenues. On a comparable 53-week basis, attendance would have increased 479,000 visits, due to an increase in season pass attendance, and in-park per capita spending would have increased $1.56, or 4%, primarily due to new premium benefit offerings and the positive impact of new customer messaging and dynamic pricing. Over that same comparable basis, out-of-park revenues would have increased by approximately $3.5 million, or 3%.

On a comparable 53-week basis, operating costs and expenses would have increased approximately $40.3 million, or 6%, on a $4.2 million increase in cost of goods sold, an $25.8 million increase in operating expenses, and $10.4 million increase in SG&A costs. The overall increase in costs and expenses also reflects the favorable impact of exchange rates on our Canadian operations (approximately $1.6 million) during the period. The increase in cost of goods sold is consistent with anticipated cost increases associated with our efforts to improve the quality of food and other product offerings at the parks in 2012. Consistent with our nine- and three-month discussions above, operating expenses for the twelve-month period increased as a result of higher employment-related costs, higher maintenance and operating supply costs, and higher self-insurance expenses. The higher employment-related costs reflect normal merit increases, increases in health-related benefit costs, an overall increase in seasonal labor hours as a result of expanded operating hours at several parks, additional attractions and guest services, the overall effect of increased attendance, and non-recurring severance payments. Employment related costs also increased as result of the non-recurring payroll tax credit of $2.5 million recorded in the fourth quarter of 2010. The higher maintenance costs in the current-year twelve-month period relate primarily to the earlier timing of planned off-season projects, which was possible as a result of the mild early-season weather in 2012. The increase in operating supplies was driven by higher attendance and new initiatives to expand or enhance live entertainment at the parks, as well as incremental costs associated with our new e-commerce platform. The increase in public liability and workers compensation expense was the result of a claim settlement in the first quarter of 2012

40

and increases in our reserves based on management's estimates of future claims. The higher SG&A costs reflect incremental costs associated with the launching of several new revenue initiatives for the 2012 season, including the new e-commerce platform, general park infrastructure improvements, and an increase in advertising expenses as we transitioned to a new advertising agency for 2012. These increases in SG&A costs were somewhat offset by a reduction in litigation expenses and costs for SEC compliance matters related to Special Meeting requests in 2011.

For the twelve-month period ended September 30, 2012, Adjusted EBITDA increased to $393.6 million compared with $366.4 million for the twelve months ended September 25, 2011, while our Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) increased slightly to 36.3% from 36.2% a year ago. A portion of this increase in Adjusted EBITDA was due to the extra week in the current fiscal twelve-month period. On a same-week basis, Adjusted EBITDA would have been up $23.4 million, or 6%, year over year, due to revenue growth driven by increased attendance and the strong 2011 fourth quarter operating performance. These gains were offset somewhat by incremental operating costs associated with the higher attendance and new operating initiatives for 2012. For the comparable twelve-month periods, our Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) would have increased 30 bps to 36.3% from 36.0% last year. For additional information regarding Adjusted EBITDA, including how we define Adjusted EBITDA, why we believe it provides useful information, and for a reconciliation to net income, see pages 33-34.
October 2012 -

Based on preliminary results through the end of October, revenues for the first ten months of the year increased approximately $37 million to $1,036 million from $999 million for the same period a year ago. The revenue increase is the result of a 4% increase in average in-park guest per capita spending to $42.00 and attendance levels that were comparable with last year's record results (22.7 million visits). Out-of-park revenues of approximately $108 million through October were also comparable with this time last year.

Liquidity and Capital Resources:
With respect to both liquidity and cash flow, we ended the thirdfirst quarter of 20122013 in sound condition. The negative working capital ratio (current assetsliabilities divided by current liabilities)assets) of 1.01.4 at September 30, 2012March 31, 2013 reflects the impact of our seasonal business. Cash, receivables and inventories are at normal seasonal levels and credit facilities are in place to fund current liabilities.

In July 2010, we issued $405 million of 9.125% senior unsecured notes, maturing in 2018, in a private placement, including $5.6 million of Original Issue Discount (OID) to yield 9.375%. Concurrently with this offering, we entered into a new $1,435 million credit agreement (the "2010 Credit Agreement"), which included a $1,175 million senior secured term loan facility and a $260 million senior secured revolving credit facility. The net proceeds from the offering of the notes, along with borrowings under the 2010 Credit Agreement, were used to repay in full all amounts outstanding under our previous credit facilities.

In February 2011, we amended the 2010 Credit Agreement (as so amended, the "Amended 2010 Credit Agreement") and extended the maturity date of the U.S. term loan portion of the credit facilities by one year. Under the Amended 2010 Credit Agreement, the extended U.S. term loan iswas scheduled to mature in December of 2017 and bearsbore interest at a rate of LIBOR plus 300 bps, with a LIBOR floor of 100 bps.
The Amended 2010 Credit Agreement also includesincluded a $260 million revolving credit facility. Under the agreement, the Canadian portion of the revolving credit facility has a limit of $15 million. U.S. denominated loans made under the revolving credit facility bear interest at a rate of LIBOR plus 400 bps (with no LIBOR floor). Canadian denominated loans made under the Canadian portion of the facility also bear interest at a rate of LIBOR plus 400 bps (with no LIBOR floor). The revolving credit facility, which matureswas scheduled to mature in July of 2015, also providesprovided for the issuance of documentary and standby letters of credit.

In May 2012, the Partnership prepaidMarch 2013,we issued $16500 million of long-term debt to meet its obligation5.25% senior unsecured notes, maturing in 2021, in a private placement, with no OID. Concurrently with this offering, we entered into a new $885 million credit agreement (the "2013 Credit Agreement"), which included a $630 million senior secured term loan facility and a $255 million senior secured revolving credit facility. The terms of the senior secured term loan facility include a maturity date of March 15, 2020 and an interest rate of LIBOR plus 250 bps with a LIBOR floor of 75 bps. The term loan amortizes at $6.3 million annually. The net proceeds from the notes and borrowings under the Excess Cash Flow ("ECF") provision2013 Credit Agreement were used to repay in full all amounts outstanding under the previous credit facilities. The facilities provided under the 2013 Credit Agreement are collateralized by substantially all of the assets of the Partnership.

Terms of the 2013 Credit Agreement. AsAgreement include a resultrevolving credit facility of this prepayment, as well as additional optional long-term debt prepayments made in August 2011 and September 2012a combined $255 million. Under the 2013 Credit Agreement, the Canadian portion of the revolving credit facility has a limit of $1815 million. U.S. denominated and Canadian denominated loans made under the revolving credit facility bear interest at a rate of LIBOR plus 225 bps (with no LIBOR floor). The revolving credit facility is scheduled to mature in March 2018 and also provides for the issuance of documentary and standby letters of credit. The 2013 Credit Agreement requires the Partnership to pay a commitment fee of $9 million50, respectively, bps per annum on the Company has no scheduled term-debt principal payments untilunused portion of the first quarter of 2015.credit facilities.
At the end of the quarter, we had a total of $1,131.1$630.0 million of variable-rate term debt (before giving consideration to fixed-rate interest rate swaps), $400.7$901.3 million of fixed-rate debt (including OID), no$96.0 million outstanding borrowings under our revolving

38

credit facility, and cash on hand of $96.1$10.0 million. After letters of credit, which totaled $16.5$16.4 million at September 30, 2012March 31, 2013, we had $243.5$142.6 million of available borrowings under the revolving credit facility under the Amended 20102013 Credit Agreement.

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Our $405 million of senior unsecured notes require semi-annual interest payments in February and August, with the principal due in full on August 1, 2018. The notes may be redeemed, in whole or in part, at any time prior to August 1, 2014 at a price equal to 100% of the principal amount of the notes redeemed plus a “make-whole” premium together with accrued and unpaid interest, if any, to the redemption date. Thereafter, the notes may be redeemed, in whole or in part, at various prices depending on the date redeemed. Prior to August 1, 2013, up to 35% of the notes may be redeemed with the net cash proceeds of certain equity offerings at 109.125%. Our $500 million of senior unsecured notes pay interest semi-annually in March and September, with the principal due in full on March 15, 2021. The notes may be redeemed, in whole or in part, at any time prior to March 15, 2016 at a price equal to 100% of the principal amount of the notes redeemed plus a “make-whole” premium together with accrued and unpaid interest, if any, to the redemption date. Thereafter, the notes may be redeemed, in whole or in part, at various prices depending on the date redeemed. Prior to March 15, 2016, up to 35% of the notes may be redeemed with the net cash proceeds of certain equity offerings at 105.25%.
In order to maintain fixed interest costs on a portion of our domestic term debt, in September 2010 we entered into several interest rateforward-starting swap agreements ("September 2010 swaps") to effectively convert a total of $600$600 million of variable-rate debt to fixed rates beginning in October 2011. As a result of the February 2011 amendment to our credit agreement,the 2010 Credit Agreement, the LIBOR floor on the term loan portion of ourits credit facilities decreased to 100 bps from 150 bps, causing a mismatch in critical terms of the September 2010 swaps and the underlying debt. Because of the mismatch of critical terms, we determined the September 2010 swaps, which were originally designated as cash flow hedges, were no longer highly effective, resulting in the de-designation of the September 2010 swaps as of the end of February 2011. As a result of this ineffectiveness, gains of $7.2 million recorded in AOCI through the date of de-designation are being amortized through December 2015.
In order to monetize the difference in the LIBOR floors, in March 2011, we entered into several additional forward-starting basis-rate swap agreements ("March 2011 swaps") that, when combined with the September 2010 swaps, effectively converted $600$600 million of variable-rate debt to fixed rates beginning in October 2011. The September 2010 swaps and the March 2011 swaps, were jointly designated as cash flow hedges, maturing in December 2015 and had fixed LIBOR at a weighted average rate of 2.46%. For the period that the September 2010 swaps were de-designated, their fair value decreased by $3.3 million, the offset of which have beenwas recognized as a direct charge to earnings and recorded to “Net effect of swaps” on the consolidated statement of operations along with the regular amortization of “Other comprehensive income (loss)” balances related to these swaps. No other ineffectiveness related to these swaps was recorded in any period presented.
In May 2011, we entered into four additional forward-starting basis-rate swap agreements ("May 2011 swaps") that effectively converted another $200 million of variable-rate debt to fixed rates beginning in October 2011. These swaps, which were designated as cash flow hedges, mature in December 2015 and fixed LIBOR at a weighted average rate of 2.54%.
As a result of the 2013 Credit Agreement, the previously described swaps were de-designated as the spreads of the 2013 Credit Agreement decreased to 75 bps from 100 bps in the Amended 2010 Credit Agreement. The May 2011 swaps remain de-designated as the amount of variable rate debt decreased to $630 million, and accordingly, the May 2011 swaps are now over hedged. On March 4, 2013, we entered into several forward-starting swap agreements ("March 2013 swaps") that were not designated as a cash flow hedge on that date. On March 6, 2013, the March 2013 swaps were combined with the September 2010 swaps and the March 2011 swaps, and designated as cash flow hedges, effectively converting $600 million of variable-rate debt to fixed rates. The September 2010 swaps, the March 2011 swaps, and the March 2013 swaps were jointly designated as cash flow hedges, mature in December 2015 and fix LIBOR at a weighted average rate of 2.46%.
In May 2011, we entered into four additional forward-starting basis-rate swap agreements ("May 2011 swaps") that effectively convert another $200 million of variable-rate debt to fixed rates beginning in October 2011. These swaps, which have been designated as cash flow hedges, mature in December 2015 and fix LIBOR at a weighted average rate of 2.54%2.331%. TheAt the time of the de-designation, the fair market value of all $800the September 2010 swaps, March 2011 swaps, and March 2013 swaps was $23.8 million, which will be amortized out of forward-starting swap agreements atAOCI into expense in "Net effect of swaps" in the unaudited condensed consolidated statements of operations and comprehensive incomethrough December 2015. At the time of the de-designation, the fair market value of the May 2011 swaps was $7.8 million and was immediately recognized into expense in "Net effect of swaps" in the unaudited condensed consolidated statements of operations.
At March 31, 2013, the fair market value of the September 30, 20122010 swaps, the March 2011 swaps and the March 2013 swaps was a liability of $34.723.4 million, which was recorded in "Derivative Liability"“Derivative Liability” on the condensed consolidated balance sheet. The May 2011 swaps had a fair market value of $7.6 million as of March 31, 2013 and was recorded in “Derivative Liability” on the condensed consolidated balance sheet.


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The following table presents our September 2010 swaps, March 2011 swaps, and May 2011 swaps, and March 2013 swaps which became effective on October 1, 2011 and mature December 15, 2015, along with their notional amounts and their effective fixed interest rates.
($'s in thousands)Forward-Starting Interest Rate Swaps
 Notional Amounts LIBOR Rate
 $200,000
 2.40%
 75,000
 2.43%
 50,000
 2.42%
 150,000
 2.55%
 50,000
 2.42%
 50,000
 2.55%
 25,000
 2.43%
 50,000
 2.54%
 30,000
 2.54%
 70,000
 2.54%
 50,000
 2.54%
Total $'s / Average Rate$800,000
 2.48%
In 2006, we entered into several fixed-rate interest rate swap agreements totaling $1.0 billion. The weighted average fixed-LIBOR rate on these interest rate swaps, which matured on October 1, 2011, was 5.6%. Based upon our scheduled quarterly regression analysis testing of the effectiveness for the accounting treatment of these swaps, as well as changes in the forward interest rate yield curves used in that testing, the swaps were deemed to be ineffective beginning in October 2009 and continued to be deemed ineffective through their maturity. This resulted in the swaps not qualifying for hedge accounting during the fourth quarter of 2009 and through 2010 and the first three quarters of 2011.
In 2007, we entered into two cross-currency swap agreements, which matured in February 2012 and effectively converted $268.7 million of term debt at the time, and the associated interest payments, from U.S. dollar denominated debt at a rate of LIBOR plus

42

200 bps to 6.3% fixed-rate Canadian dollar denominated debt. As a result of paying down the underlying Canadian term debt with net proceeds from the sale of surplus land near Canada’s Wonderland in August 2009, the notional amounts of the underlying debt and the cross-currency swaps no longer matched. Because of the mismatch of the notional amounts, we determined the swaps were no longer highly effective going forward, resulting in the de-designation of the swaps as of the end of August 2009.
Based on the change in currency exchange rates from the time we originally entered into the cross-currency swap agreements in 2007, the termination liability of the swaps had increased steadily over time. In order to protect ourselves from further downside risk to the swaps' termination value, in May 2011 we entered into several foreign currency swap agreements to fix the exchange rate on 50% of the liability. In July 2011, we fixed the exchange rate on another 25% of the swap liability, leaving only 25% exposed to further fluctuations in currency exchange rates. In February 2012, these swap agreements were settled for $50.5 million.
In addition to other covenants and provisions, including those discussed below, the Amended 2010 Credit Agreement contains an initial three-year requirement (from July 2010) that at least 50% of our aggregate term debt and senior notes be subject to either a fixed interest rate or interest rate protection. As of September 30, 2012, we were in compliance with this requirement.
The following table presents fixed-rate swaps that matured on October 1, 2011. The table also presents our cross-currency swaps that matured on February 15, 2012 and their notional amounts and interest rates as of their maturity date.
($'s in thousands)Interest Rate Swaps Cross-currency Swaps
 Notional Amounts LIBOR Rate Notional Amounts Interest Rate
 $200,000
 5.64% $255,000
 7.31%
 200,000
 5.64% 150
 9.50%
 200,000
 5.64%    
 200,000
 5.57%    
 100,000
 5.60%    
 100,000
 5.60%    
Total $'s / Average Rate$1,000,000
 5.62% $255,150
 7.31%
        
 Interest Rate Swaps
($'s in thousands)Derivatives designated as hedging instruments Derivatives not designated as hedging instruments
 Notional Amounts LIBOR Rate Notional Amounts LIBOR Rate
 $200,000
 2.27% 50,000
 2.54%
 75,000
 2.30% 30,000
 2.54%
 50,000
 2.29% 70,000
 2.54%
 150,000
 2.43% 50,000
 2.54%
 50,000
 2.29%    
 50,000
 2.47%    
 25,000
 2.30%    
Total $'s / Average Rate$600,000
 2.33% $200,000
 2.54%

The Amended 20102013 Credit Agreement requires us to maintain specified financial ratios, which if breached for any reason, including a decline in operating results due to economic or weather conditions, could result in an event of default under the agreement. The most critical of these ratios is the Consolidated Leverage Ratio, which is measured on a trailing-twelve-month quarterly basis. At the end of the thirdfirst quarter of 2012,2013, this ratio was set at 6.00x6.25x consolidated total debt (excluding the revolving debt)-to-consolidated EBITDA. The ratio will remain at that level through the end of the first quarter in 2014 and will decrease each second quarter beginning in the second quarter of 2014. Based on our trailing-twelve-month results ending September 30, 2012March 31, 2013, our Consolidated Leverage Ratio was 3.89x, providing $138.3148.2 million of EBITDA cushion on the ratio at the end of the thirdfirst quarter. We were in compliance with all other covenants under the Amended 20102013 Credit Agreement as of September 30, 2012March 31, 2013.
The Amended 20102013 Credit Agreement allows restricted payments of up to $20$60 million annually so long as no default or event of default has occurred and is continuing. These restricted payments are not subject to any specific covenants. In 2012, additionalAdditional restricted payments are allowed to be made based on an excess-cash-flow formula, should our pro-forma Consolidated Leverage Ratio be less than or equal to 4.50x,5.0x, measured on a trailing-twelve-month quarterly basis.
At March 31, 2013, the notes maturing in 2018 have more restrictive covenants than the 2021 notes. The terms of the indenture governing our 2018 notes permit us to make restricted payments of $20 million annually. Our ability to make additional restricted payments in 20122013 and beyond is permitted should our trailing-twelve-month Total-Indebtedness-to-Consolidated-Cash-Flow Ratio be less than or equal to 4.75x, measured on a quarterly basis.
In accordance with these debt provisions, on August 9, 2012,February 27, 2013, we announced the declaration of a distribution of $0.40$0.625 per limited partner unit, which was paid on September 15, 2012,March 25, 2013, and on November 6, 2012,May 8, 2013 we announced the declaration of a distribution of $0.40$0.625 per limited partner unit, payable DecemberJune 17, 2012, which will bring our total distributions paid in 2012 to $1.60 per limited partner unit.2013.
Existing credit facilities and cash flows from operations are expected to be sufficient to meet working capital needs, debt service, partnership distributions and planned capital expenditures for the foreseeable future.




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Off Balance Sheet Arrangements:
We had $16.5$16.4 million in letters of credit, which are primarily in place to backstop insurance arrangements, outstanding on our revolving credit facility as of September 30, 2012March 31, 2013. We have no other significant off-balance sheet financing arrangements.


Forward Looking Statements
Some of the statements contained in this report (including the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section) that are not historical in nature are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements as to our expectations, beliefs and strategies regarding the future. These forward-looking statements may involve risks and uncertainties that are difficult to predict, may be beyond our control and could cause actual results to differ materially from those described in such statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can

40

give no assurance that such expectations will prove to be correct. Important factors, including those listed under Item 1A in the Company’s Annual Report on Form 10-K, could adversely affect our future financial performance and cause actual results to differ materially from our expectations.


ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to market risks from fluctuations in interest rates, and to a lesser extent on currency exchange rates on our operations in Canada and, from time to time, on imported rides and equipment. The objective of our financial risk management is to reduce the potential negative impact of interest rate and foreign currency exchange rate fluctuations to acceptable levels. We do not acquire market risk sensitive instruments for trading purposes.
We manage interest rate risk through the use of a combination of fixed-rate long-term debt, interest rate swaps that fix a portion of our variable-rate long-term debt, and variable-rate borrowings under our revolving credit facility. Translation exposures with regard to our Canadian operations are not hedged.
For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the change in fair value of the derivative instrument is reported as a component of “Other comprehensive income (loss)” and reclassified into earnings in the period during which the hedged transaction affects earnings. Changes in fair value of derivative instruments that do not qualify as effective hedging activities are reported as “Net effect of swaps” in the consolidated statement of operations. Additionally, the “Other comprehensive income (loss)” related to interest rate swaps that become ineffective is amortized over the remaining life of the interest rate swap, and reported as a component of “Net effect of swaps” in the consolidated statement of operations.
As of March 31, 2013, we had $901.3 million of fixed-rate senior unsecured notes and $630 million of variable-rate term debt. After considering the impact of interest rate swap agreements, approximately $1.2 billionvirtually all of our outstanding long-term debt represents fixed-rate debt and approximately $331.1 million represents variable-rate debt. Assuming an average balance on our revolving credit borrowings of approximately $61$50 million, a hypothetical 100 bps increase in 30-day LIBOR on our variable-rate debt, after the fixed-rate swap agreements, would lead to an increasea decrease of approximately $2.5$0.5 million in annual cash interest costs.
A uniform 10% strengthening of the U.S. dollar relative to the Canadian dollar would result in a $5.4$4.4 million decrease in annual operating income.

ITEM 4. CONTROLS AND PROCEDURES

(a)Evaluation of Disclosure Controls and Procedures - 
The Partnership maintains a system of controls and procedures designed to ensure that information required to be disclosed by the Partnership in its reports under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified by the Commission and that such information is accumulated and communicated to the Partnership’s management, including the Chief Executive Officer and the Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. As of September 30, 2012March 31, 2013, the PartnershipPartnership's management has evaluated the effectiveness of the design and operation of itsthe Partnership's disclosure controls and procedures under supervision of management, includingand with the participation of the Partnership's Chief Executive Officer and Chief Financial Officer. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Partnership's disclosure controls and procedures are effective.were effective as of March 31, 2013.
 






44


(b)Changes in Internal Control Over Financial Reporting -
As disclosed in Amendment No. 2 to the Partnership's Form 10-K/A for the fiscal year ended December 31, 2012, in connection with restating the Partnership's consolidated financial statements therein, management identified a material weakness in internal control over financial reporting related to the Partnership's fixed assets, resulting in a conclusion that the Partnership's internal control over financial reporting was not effective as of December 31, 2012. Remediation of this material weakness in internal control over financial reporting was accomplished through the conversion of all composite assets to the unit method of depreciation as of January 1, 2013. The conversion to the unit method eliminates the concept of normal vs. unusual as any and all asset retirements with a remaining net book value will be reflected in the Consolidated Statements of Operations and Comprehensive Income.
There were no other changes in the Partnership’s internal controlscontrol over financial reporting in connection with its 2012that occurred during the fiscal quarter ended thirdMarch 31, 2013-quarter evaluation, or subsequent to such evaluation, that have materially affected, or are reasonably likely to materially affect, the Partnership’s internal control over financial reporting.


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PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Jacob T. Falfas vs. Cedar Fair, L.P.

On July 23, 2010, Jacob T. (Jack) Falfas, the former Chief Operating Officer, filed a demand for private arbitration as provided by his employment agreement. In that demand, Mr. Falfas disputed the Partnership's position that he had resigned in June 2010, alleging instead that his employment with the Partnership was terminated without cause. That dispute went to private arbitration, and on February 28, 2011, an arbitration panel ruled 2-to-1 in favor of Mr. Falfas finding that he did not resign but was terminated without cause. Rather than fashioning a remedy consistent with the employment agreement, the panel ruled that Mr. Falfas should be reinstated. The Partnership believed that the arbitrators exceeded their authority by creating a remedy not legally available to Mr. Falfas under his contract with Cedar Fair. On March 21, 2011, the Partnership filed an action  in Erie County Court of Common Pleas (Case No. 2011 CV 0217) seeking  to have the award modified or vacated. On March 22, 2011, Mr. Falfas commenced a related action in the Erie County Court of Common Pleas  (Case No. 2011 CV 0218) demanding enforcement of the arbitration ruling.  The two actions were combined into Case No. 2011 CV 0217, before Judge Roger E. Binette. On February 22, 2012 the Erie County Common Pleas Court issued a ruling partially vacating the arbitration award and declaring that Mr. Falfas was not entitled to reinstatement of his employment.  The ruling also provided that in accord with paragraph 2 of the arbitration award Mr. Falfas was entitled to certain back pay and other benefits under his 2007 Amended and Restated Employment Agreement as if the employment relationship had not been severed. In March of 2012 Mr. Falfas and the Company both filed appeals of the Court's ruling with the Ohio Sixth District Court of Appeals in Toledo, Ohio. The parties participated in mediation on May 7, 2012 at the direction ofOn April 19, 2013 the Court of Appeals.Appeals issued a ruling reversing the Erie County Common Pleas Court's  order regarding the reinstatement of Mr. Falfas' employment and  affirming the order regarding back pay and other benefits and remanding the case back to the Erie County Common Pleas Court for further proceedings.  The mediation did not result inCompany has until June 3, 2013 to file a settlement. As a resultnotice of appeal with the matter will now proceed through the normal appeal process which typically takes six to nine months to complete. Briefs have been filed and the parties are awaiting scheduling of oral argument.Ohio Supreme Court.  The Partnership believes the liability recorded as of September 30, 2012March 31, 2013 to be adequate and does not expect the arbitration ruling or the court order to materially affect its financial results in future periods.


ITEM 1A. RISK FACTORS
There have been no material changes to the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2011.2012.

ITEM 5. OTHER INFORMATION

TheOn May 8, 2013, the Partnership usesannounced that it had identified a historical classification error in the Partnership's initial determination of whether a specific asset retired under the composite method of depreciation methodwas normal or unusual. The error resulted in the overstatement of Income before taxes of $8.8 million for the groupperiod ended December 31, 2011.

Under the composite method of depreciation, no gain or loss is recognized on normal retirements of composite assets. Instead the net book value after salvage of a retired asset reduces accumulated depreciation for the composite group. Abnormal or unusual retirements of composite assets acquiredwould result in the recognition of a gain or loss. The error resulted in the Partnership's application of its qualitative policy used to determine whether an asset retirement is normal or unusual. The asset retirement being restated was originally classified as normal, thus reducing accumulated depreciation. Management identified that the Partnership had failed to consider whether the specific asset had a whole in 1983,substantial net book value and/or if the retirement caused a deviation from the estimated composite depreciation survivor curve as well as for groupsother minor qualitative issues.

The restatement amount of assets$8.8 million is recorded in each subsequent business acquisition. Upon the normalLoss on impairment / retirement of an asset within a composite group, the Partnership's practice generally has been to extend the depreciable life of that composite group beyond its original estimated useful life. In conjunction with the preparation of the Partnership's financial statements for the interim period ended July 1, 2012, management determined that this methodology was not appropriate. As a result, the Partnership revised the useful lives of its composite groups to their original estimated useful life (ascribed upon acquisition) and corrected previously computed depreciation expense (and accumulated depreciation). Management evaluated the amount and nature of these adjustments and concluded that they were not material to either the Partnership's prior annual or quarterly financial statements. Nonetheless, the historical financial statement amounts included in this filing have been corrected for this error. The Partnership expects to likewise correct previously presented historical financial statements to be included in future filings, including the annual financial statements to be includedfixed assets, net in the Partnership's Annual Report on Form 10-K for10-K/A filing to correct the year ending December 31, 2012.previous error.

ForAs disclosed in the year ended December 31, 2011Partnership's prior filings, the correctionPartnership had determined that it was preferable to change from the composite method of depreciation to the unit method of depreciation with the change effective January 1, 2013. The Partnership believes that pursuant to generally accepted accounting principles, changing from the composite method of depreciation to the unit method of depreciation is a change in accounting estimate that is effected by a change in accounting principle, which should be accounted for prospectively. The change to the unit method of depreciation eliminates the qualitative judgment needed to determine whether an asset retirement is normal or unusual, as the net book value of all retirements will decrease net income (loss) by $1.4 millionbe recorded in the Consolidated Statements of Operations and the provision (benefit) for taxes will decrease by $0.6 million.  For the 2010 annual financial statements, the correction will decrease net income (loss) by $1.5 million and the provision (benefit) for taxes will decrease by $0.6 million.  For the 2009 annual financial statements, the correction will decrease net income (loss) by $1.2 million and the provision (benefit) for taxes will decrease $0.4 million.  The balance sheet as of December 31, 2011 has already been corrected in this Form 10-Q.Comprehensive Income.



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ITEM 6. EXHIBITS
 
Exhibit (4.1)
Rights Agreement between Cedar Fair, L.P. and American Stock Transfer and Trust Co., LLC, dated April 5, 2010. Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on April 6, 2010.

Exhibit (4.2)
Indenture, by and among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and The Bank of New York Mellon, as trustee, dated as of July 29, 2010 (including form of 9.125% Senior Notes due 2018). Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (4.3)
Registration Rights Agreement, among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and J.P. Morgan Securities Inc., as representative of the initial purchasers named therein, dated July 29, 2010. Incorporated herein by reference to Exhibit 4.2 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (10.1)Cedar Fair, L.P. Amended and Restated Executive Severance Plan dated July 18, 2007. Incorporated herein by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q (File No. 001-09444) filed on August 3, 2007.
Exhibit (31.1)  Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (31.2)  Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (32)  Certifications Pursuant to 18 U.S.C. 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
  
Exhibit (101)  The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012March 31, 2013 formatted in Extensible Business Reporting Language (XBRL): (i) The Condensed Consolidated Statements of Income, (ii) the Condensed Consolidated Balance Sheets, (iii) The Condensed Consolidated Statements of Cash Flow, (iv) the Condensed Consolidated Statement of Equity and, (v) related notes
 

4643

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
  CEDAR FAIR, L.P. 
  (Registrant) 
    
  By Cedar Fair Management, Inc. 
  General Partner 
   
Date:November 7, 2012May 10, 2013/s/ Matthew A. Ouimet
  Matthew A. Ouimet
  President and Chief Executive Officer
    
Date:November 7, 2012May 10, 2013/s/ Brian C. Witherow
  Brian C. Witherow
  Executive Vice President and
  Chief Financial Officer

 

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INDEX TO EXHIBITS
 
Exhibit (4.1)
Rights Agreement between Cedar Fair, L.P. and American Stock Transfer and Trust Co., LLC, dated April 5, 2010. Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on April 6, 2010.

Exhibit (4.2)
Indenture, by and among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and The Bank of New York Mellon, as trustee, dated as of July 29, 2010 (including form of 9.125% Senior Notes due 2018). Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (4.3)
Registration Rights Agreement, among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and J.P. Morgan Securities Inc., as representative of the initial purchasers named therein, dated July 29, 2010. Incorporated herein by reference to Exhibit 4.2 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (10.1)Cedar Fair, L.P. Amended and Restated Executive Severance Plan dated July 18, 2007. Incorporated herein by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q (File No. 001-09444) filed on August 3, 2007.
Exhibit (31.1)  Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (31.2)  Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (32)  Certifications Pursuant to 18 U.S.C. 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
  
Exhibit (101)  The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012March 31, 2013 formatted in Extensible Business Reporting Language (XBRL): (i) The Condensed Consolidated Statements of Income, (ii) the Condensed Consolidated Balance Sheets, (iii) The Condensed Consolidated Statements of Cash Flow, (iv) the Condensed Consolidated Statement of Equity and, (v) related notes
 

4845
s / Average Rate		$800,000
 2.48%$600,000
 2.33% $200,000
 2.54%
 
The following table presents our fixed-rate swaps, which matured in October 2011, and the cross-currency swap which matured in February 2012, along with their notional amounts and their fixed interest rates:
($'s in thousands)Interest Rate Swaps Cross-currency Swaps
 Notional Amounts LIBOR Rate Notional Amounts Implied Interest Rate
 $200,000
 5.64% $255,000
 7.31%
 200,000
 5.64% 150
 9.50%
 200,000
 5.64%    
 200,000
 5.57%    
 100,000
 5.60%    
 100,000
 5.60%    
Total $'s / Average Rate$1,000,000
 5.62% $255,150
 7.31%
        



12
Table of Contents

Effects of Derivative Instruments on Income (Loss) and Other Comprehensive Income (Loss) for the three-month periods ended September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012:
 
(In thousands): Amount of Gain (Loss) Recognized in  Accumulated OCI on Derivatives (Effective Portion) 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
Derivatives designated as
Cash Flow Hedging
Relationships
 Three months ended Three months ended   Three months ended Three months ended   Three months ended Three months ended
 9/30/12 9/25/11   9/30/12 9/25/11   9/30/12 9/25/11
Interest rate swaps $438
 $(17,085) Interest Expense $(2,990) $—
 Net effect of swaps $—
 $15,396
                 
(In thousands): Amount of Gain (Loss) Recognized in  Accumulated OCI on Derivatives (Effective Portion) 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
Derivatives designated as
Cash Flow Hedging
Relationships
 Three months ended Three months ended   Three months ended Three months ended   Three months ended Three months ended
 3/31/13 3/25/12   3/31/13 3/25/12   3/31/13 3/25/12
Interest rate swaps $2,266
 $120
 Interest Expense $(2,797) $(2,793) Net effect of swaps $435
 $—
                 

13
Table of Contents

(In thousands): 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
Derivatives not designated as Cash Flow
Hedging Relationships
   Three months ended Three months ended
   9/30/12 9/25/11
Cross-currency swaps (1)
 Net effect of swaps $—
 $13,622
Foreign currency swaps 
 Net effect of swaps —
 (13,210)
    $—
 $412
       
(In thousands): 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
Derivatives not designated as Cash Flow
Hedging Relationships
   Three months ended Three months ended
   3/31/13 3/25/12
Cross-currency swaps (1)
 Net effect of swaps $—
 $(4,999)
Foreign currency swaps 
 Net effect of swaps —
 6,278
Interest rate swaps (2)
 Net effect of swaps (1,471) —
    $(1,471) $1,279
       
(1)The cross-currency swaps became ineffective and were de-designated in August 2009.
(2)The May 2011 interest rate swaps were de-designated in March 2013.
During the quarter ended September 30, 2012March 31, 2013, in addition to the $1.0 million loss recognized in income on the ineffective portion of derivatives and on the derivatives not designated as cash flow hedges (as noted in the tables above), $0.27.8 million of incomeexpense related to the write off of OCI balances on our May 2011 swaps and $0.4 million of expense representing the regular amortization of amounts in AOCI was recorded in the condensed consolidated statements of operations for the quarter. The effect of this amortizationthese amounts resulted in a benefitcharge to earnings of $0.29.2 million recorded in “Net effect of swaps.”

For the three-month period ended SeptemberMarch 25, 20112012, in addition to the $15.81.3 million gain recognized in income on the ineffective portion of derivatives noted in the tabletables above, $11.20.5 million of expense representing the amortization of amounts in AOCI for the swaps and $0.60.2 million of foreign currency lossgain in the quarter related to the U.S. dollar denominated Canadian term loan were recorded in “Net effect of swaps” in the condensed consolidated statements of operations. The net effect of these amounts resulted in a benefit to earnings of $4.0 million recorded in “Net effect of swaps.”

Effects of Derivative Instruments on Income (Loss) and Other Comprehensive Income (Loss) for the nine-month periods ended September 30, 2012 and September 25, 2011: 
(In thousands): Amount of Gain (Loss) Recognized in  Accumulated OCI on Derivatives (Effective Portion) 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
Derivatives designated as
Cash Flow Hedging
Relationships
 Nine months ended Nine months ended   Nine months ended Nine months ended   Nine months ended Nine months ended
 9/30/12 9/25/11   9/30/12 9/25/11   9/30/12 9/25/11
Interest rate swaps $(2,308) $(36,788) Interest Expense $(9,004) $—
 Net effect of swaps $—
 $43,190
                 

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(In thousands): 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
Derivatives not designated as Cash Flow
Hedging Relationships
   Nine months ended Nine months ended
   9/30/12 9/25/11
Interest rate swaps (1)
 Net effect of swaps $—
 $(3,342)
Cross-currency swaps (2)
 Net effect of swaps (4,999) 15,582
Foreign currency swaps 
 Net effect of swaps 6,278
 (17,516)
    $1,279
 $(5,276)
       
(1)The September 2010 swaps became ineffective and were de-designated in February 2011.
(2)The cross-currency swaps became ineffective and were de-designated in August 2009.
For the nine-month period ended September 30, 2012, in addition to the $1.3 million of net gain recognized in income on the ineffective portion of derivatives and on the derivatives not designated as cash flow hedges (as noted in the tables above), $0.2 million of expense representing the regular amortization of amounts in AOCI for the swaps and $0.2 million of foreign currency gain in the period related to the U.S. dollar denominated Canadian term loan were recorded in the condensed consolidated statements of operations for the period. The net effect of these amounts resulted in a benefit to earnings for the period of $1.3 million recorded in “Net effect of swaps.”

For the nine-month period ended September 25, 2011, in addition to the $37.9 million gain recognized in income on the ineffective portion of derivatives noted in the table above, $33.9 million of expense representing the amortization of amounts in AOCI for the swaps and $0.5 million of foreign currency loss in the period related to the U.S. dollar denominated Canadian term loan were recorded in “Net effect of swaps” in the condensed consolidated statements of operations. The net effect of these amounts resulted in a benefit to earnings of $3.51.0 million recorded in “Net effect of swaps.”


Effects of Derivative Instruments on Income (Loss) and Other Comprehensive Income (Loss) for the twelve-month periods ended September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012:
(In thousands): 
Amount of Gain (Loss)
Recognized in Accumulated OCI on Derivatives
(Effective Portion)
 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
Derivatives designated as
Cash Flow Hedging
Relationships
 Twelve months ended Twelve months ended   Twelve months ended Twelve months ended   Twelve months ended Twelve months ended
 9/30/12 9/25/11   9/30/12 9/25/11   9/30/12 9/25/11
Interest rate swaps $(873) $(26,329) Interest Expense $(12,027) $—
 Net effect of swaps $4,797
 $54,613
                 
(In thousands): 
Amount of Gain (Loss)
Recognized in Accumulated OCI on Derivatives
(Effective Portion)
 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
Derivatives designated as
Cash Flow Hedging
Relationships
 Twelve months ended Twelve months ended   Twelve months ended Twelve months ended   Twelve months ended Twelve months ended
 3/31/13 3/25/12   3/31/13 3/25/12   3/31/13 3/25/12
Interest rate swaps $2,286
 $(36,088) Interest Expense $(12,031) $(5,816) Net effect of swaps $435
 $33,493
                 

(In thousands): 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
Derivatives not designated as Cash Flow Hedging
Relationships
   Twelve months ended Twelve months ended
   9/30/12 9/25/11
Interest rate swaps (1)
 Net effect of swaps $—
 $(3,342)
Cross-currency swaps (2)
 Net effect of swaps (4,483) 10,016
Foreign currency swaps Net effect of swaps 10,129
 (17,516)
    $5,646
 $(10,842)
       
(In thousands): 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
Derivatives not designated as Cash Flow Hedging
Relationships
   Twelve months ended Twelve months ended
   3/31/13 3/25/12
Cross-currency swaps (1)
 Net effect of swaps —
 12,911
Foreign currency swaps Net effect of swaps —
 (7,387)
Interest rate swaps (2)
 Net effect of swaps $(1,471) $—
    $(1,471) $5,524
       
(1)The September 2010 swaps became ineffective and were de-designated in February 2011.
(2)The cross-currency swaps became ineffective and were de-designated in August 2009.
(2)The May 2011 interest rate swaps were de-designated in March 2013.
In addition to the $10.41.0 million of gainloss recognized in income on the ineffective portion of derivatives and on the derivatives not designated as cash flow hedges (as noted in the tables above), $0.17.8 million of expense related to the write off of OCI balances on our May 2011 swaps and $192 thousand of income representing the amortization of amounts in AOCI for the swaps was recorded during the trailing twelve months ended March 31, 2013 in the condensed consolidated statements of operations. The net effect of these amounts resulted in expense for the trailing twelve month period of $8.7 million recorded in “Net effect of swaps.”

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For the twelve month period ending March 25, 2012, in addition to the $39.0 million of gain recognized in income on the ineffective portion of derivatives noted in the tables above, $22.7 million of expense representing the amortization of amounts in AOCI for the swaps and a $0.40.3 million foreign currency gainloss in the twelve month period related to the U.S. dollar denominated Canadian term loan was recorded during the trailing twelve months ended September 30,March 25, 2012 in the condensed consolidated statements of operations. The net effect of these amounts resulted in a benefit to earnings for the trailing twelve month period of $10.9 million recorded in “Net effect of swaps.”
For the twelve month period ending September 25, 2011, in addition to the $43.8 million of gain recognized in income on the ineffective portion of derivatives noted in the table above, $45.5 million of expense representing the amortization of amounts in AOCI for the swaps and a $0.1 million foreign currency loss in the twelve month period related to the U.S. dollar denominated Canadian term loan was recorded during the trailing twelve months ended September 25, 2011 in the condensed consolidated statements of operations. The net effect of these amounts resulted in a charge to earnings for the trailing twelve month period of $1.816.0 million recorded in “Net effect of swaps.”
The amounts reclassified from AOCI into income for the periods noted above are in large partprimarily the result of the Partnership’s initial three-year requirement to swap at least 75% of its aggregate term debt to fixed rates under the terms of the Amended 2010 Credit Agreement.
 
(7) Fair Value Measurements:
The FASB Accounting Standards Codification (ASC) relating to fair value measurements emphasizes that fair value is a market-based measurement that should be determined based on assumptions (inputs) that market participants would use in pricing an asset or liability. Inputs may be observable or unobservable, and valuation techniques used to measure fair value should maximize the use of relevant observable inputs and minimize the use of unobservable inputs. Accordingly, the FASB’s ASC establishes a hierarchal disclosure framework that ranks the quality and reliability of information used to determine fair values. The hierarchy is associated with the level of pricing observability utilized in measuring fair value and defines three levels of inputs to the fair value measurement process—quoted prices are the most reliable valuation inputs, whereas model values that include inputs based on unobservable data are the least reliable. Each fair value measurement must be assigned to a level corresponding to the lowest level input that is significant to the fair value measurement in its entirety.
The three broad levels of inputs defined by the fair value hierarchy are as follows:
 
Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
 
Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
 
Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement.
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

















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The table below presents the balances of assets and liabilities measured at fair value as of September 30, 2012March 31, 2013, December 31, 2011,2012, and SeptemberMarch 25, 20112012 on a recurring basis:
  Total Level 1 Level 2 Level 3
September 30, 2012        
(In thousands)        
Interest rate swap agreements (1)
 $(34,708) $—
 $(34,708) $—
Net derivative liability $(34,708) $—
 $(34,708) $—
         
December 31, 2011        
Interest rate swap agreements (1)
 $(32,400) $—
 $(32,400) $—
Cross-currency swap agreements (2)
 (37,617) —
 (37,617) —
Foreign currency swap agreements (2)
 (13,155) —
 (13,155) —
Net derivative liability $(83,172) $—
 $(83,172) $—
         
September 25, 2011        
Interest rate swap agreements (1)
 $(33,835) $—
 $(33,835) $—
Interest rate swap agreements (2)
 (4,797) —
 (4,797) —
Cross-currency swap agreements (2)
 (37,723) —
 (37,723) —
Foreign currency swap agreements (2)
 (16,846) —
 (16,846) —
Net derivative liability $(93,201) $—
 $(93,201) $—
  Total Level 1 Level 2 Level 3
March 31, 2013        
(In thousands)        
Interest rate swap agreements (1)
 $(23,388) $—
 $(23,388) $—
Interest rate swap agreements (2)
 (7,643) —
 (7,643) —
Net derivative liability $(31,031) $—
 $(31,031) $—
         
December 31, 2012        
Interest rate swap agreements (1)
 $(32,260) $—
 $(32,260) $—
Net derivative liability $(32,260) $—
 $(32,260) $—
         
March 25, 2012        
Interest rate swap agreements (1)
 $(32,280) $—
 $(32,280) $—
Net derivative liability $(32,280) $—
 $(32,280) $—
(1)IncludedDesignated as cash flow hedges and are included in “Derivative Liability” on the Unaudited Condensed Consolidated Balance Sheet
(2)IncludedNot designated as cash flow hedges and are included in "Current derivative liability""Derivative Liability" on the Unaudited Condensed Consolidated Balance Sheet
Fair values of the interest rate cross-currency and foreign currency swap agreements are determined using significant inputs, including the LIBOR and foreign currency forward curves, that are considered Level 2 observable market inputs. In addition, the Partnership considered the effect of its credit and non-performance risk on the fair values provided, and recognized an adjustment decreasing the net derivative liability by approximately $1.10.9 million as of September 30, 2012March 31, 2013.
There were no assets measured at fair value on a non-recurring basis at September 30, 2012March 31, 2013, December 31, 2011, or SeptemberMarch 25, 20112012, except for as described below.
At the end of the third quarter in 2012, the Partnership concluded based on operating results, as well as updated forecasts, and changes in market conditions, that a review of the carrying value of long-lived assets at Wildwater Kingdom was warranted. After performing its review, the Partnership determined that a portion of the park's fixed assets were impaired. Based on Level 3 unobservable valuation assumptions and other market inputs, the assets were marked to a fair value of $19.8 million, resulting in an impairment charge of $25.0 million during the quarter.
In 2010, the Partnership concluded based on operating results, as well as updated forecasts, that a review of the carrying value of long-lived assets at California's Great America was warranted. After performing its review, the Partnership determined that a portion of the park's fixed assets, the majority of which were originally recorded with the PPI acquisition, were impaired. As a result, it recognized $62.0 million of fixed-asset impairment during the fourth quarter of 2010.

After completing its 2010 annual review of indefinite-lived intangibles for impairment, the Partnership concluded that a portion of trade-names originally recorded with the PPI acquisition were impaired. As a result, the Partnership recognized approximately $0.9 million of trade-name impairment during the fourth quarter of 2010. A relief-from-royalty model is used to determine whether the fair value of trade-names exceeds their carrying amount. The fair value of the trade-names is determined as the present value of fees avoided by owning the respective trade-name.
The fair value of term debt at September 30, 2012March 31, 2013 was approximately $1,125.7637.1 million based on borrowing rates currently available to the Partnership on long-term debt with similar terms and average maturities. The fair value of the Partnership's notes at September 30, 2012March 31, 2013 was approximately $352.6950.1 million based on borrowing rates availablepublic trading levels as of that date to the Partnership on notes with similar terms and maturities.date. The fair value of the term debt was based on Level 2 inputs and the notes were based on Level 21 inputs.





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(8) Earnings per Unit:
Net income (loss) per limited partner unit is calculated based on the following unit amounts:
  Three months ended Nine months ended Twelve months ended
  9/30/2012 9/25/2011 9/30/2012 9/25/2011 9/30/2012 9/25/2011
  (In thousands except per unit amounts)
Basic weighted average units outstanding 55,611
 55,346
 55,473
 55,345
 55,440
 55,342
Effect of dilutive units:            
Unit options and restricted unit awards 45
 —
 42
 —
 31
 —
Phantom units 336
 482
 333
 502
 416
 544
Diluted weighted average units outstanding 55,992
 55,828
 55,848
 55,847
 55,887
 55,886
Net income (loss) per unit - basic $2.53
 $2.75
 $2.01
 $1.29
 $2.00
 $0.15
Net income (loss) per unit - diluted $2.51
 $2.73
 $2.00
 $1.28
 $1.98
 $0.15
             
  Three months ended Twelve months ended
  3/31/2013 3/25/2012 3/31/2013 3/25/2012
  (In thousands except per unit amounts)
Basic weighted average units outstanding 55,854
 55,378
 55,694
 55,353
Effect of dilutive units:        
Unit options and restricted unit awards —
 —
 63
 2
Phantom units —
 —
 299
 492
Diluted weighted average units outstanding 55,854
 55,378
 56,056
 55,847
Net income (loss) per unit - basic $(1.95) $(1.18) $1.04
 $1.53
Net income (loss) per unit - diluted $(1.95) $(1.18) $1.04
 $1.52
         
The effect of unit options on the three nine and twelve months ended September 30,March 31, 2013, had they not been out of the money or antidilutive, would have been zero and 16,000 units, respectively. The effect of out-of-the-money and/or antidilutive unit options on the three and twelve months ended March 25, 2012, had they not been out of the money or antidilutive, would have been 66,0002,000, 34,000and 36,000 units, respectively. The effect of out-of-the-money and/or antidilutive unit options on the three, nine and twelve months ended September 25, 2011, had they not been out of the money or antidilutive, would have been 57,000, 67,000 and 127,00047,000 units, respectively.
 
(9) Income and Partnership Taxes:
Under the applicable accounting rules, income taxes are recognized for the amount of taxes payable by the Partnership’s corporate subsidiaries for the current year and for the impact of deferred tax assets and liabilities, which represent future tax consequences of events that have been recognized differently in the financial statements than for tax purposes. The income tax provision (benefit) for interim periods is determined by applying an estimated annual effective tax rate to the quarterly income (loss) of the Partnership’s corporate subsidiaries. For 2012, the estimated annual effective rate includes the effect of an anticipated adjustment to the valuation allowance that relates to foreign tax credit carry-forwards arising from the corporate subsidiaries. The amount of this adjustment has a disproportionate impact on the annual effective tax rate that results in a significant variation in the customary relationship between the provision for taxes and income before taxes in interim periods. In addition to income taxes on its corporate subsidiaries, the Partnership pays a publicly traded partnership tax (PTP tax) on partnership-level gross income (net revenues less cost of food, merchandise and games). As such, the Partnership’s total provision (benefit) for taxes includes amounts for both the PTP tax and for income taxes on its corporate subsidiaries.
During the second quarterAs of 2012 the Partnership adjusted its deferred tax assets and liabilities to reflect the impact of changes to the enacted statutory tax rates in Canada and recorded a corresponding $1.8 million income tax provision.  During the first quarter of 20122013 the Partnership accruedhas recorded $1.01.1 million forof unrecognized tax benefits including interest and/or penalties related to state and local tax filing positions. The Partnership recognizes interest and/or penalties related to unrecognized tax benefits in the income tax provision. The Partnership does not anticipate that the balance of the unrecognized tax benefit will change significantly over the next 12 months.

(10) Contingencies:

The Partnership is a party to a number of lawsuits arising in the normal course of business. In the opinion of management, none of these matters is expected to have a material effect in the aggregate on the Partnership's financial statements.

(11) Immaterial Restatement:

We have made two separate corrections relating to our use of the composite depreciation method.

The Partnership usesfirst correction, which impacts the Balance Sheet at March 25, 2012 and the Statement of Operations and Other Comprehensive Income for the 3 and 12 month periods ended March 25, 2012, related to a misapplication of the composite depreciation method for the group of assets acquired as a whole in 1983, as well as for groups of assets in each subsequent business acquisition.method. Upon the normal retirement of an asset within a composite group, the Partnership'sour practice generally hashad been to extend the depreciable life of that composite group beyond its original estimated useful life. In conjunction with the preparation of the Partnership'sour financial statements for the three months ended July 1,in 2012, management determined that this methodology was not appropriate. As a result, the Partnershipwe revised the useful lives of itsour composite groups to their original estimated useful life (ascribed upon acquisition) and corrected previously computed depreciation expense (and accumulated depreciation). Management evaluated

The second correction, which impacts the amountBalance Sheet at March 25, 2012 and naturethe Statement of these adjustmentsOperations and concludedOther Comprehensive Income for the 12 month period ended March 25, 2012, reflects a subsequent determination that they werea disposition from our composite group of assets was considered to be unusual. In certain situations under the composite method, disposals are considered unusual and, accordingly, losses are not materialincluded in the composite depreciation pool but are rather charged immediately to eitherexpense. In 2013, the Partnership's prior annual or quarterly financial statements. Nonetheless,initial determination of whether a specific asset retired under the historical financial statement amounts includedcomposite method of depreciation in this filing have been corrected for this error. The Partnership expects to likewise correct previously presented2011 was normal was reviewed in connection with responding

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historical financial statements to an open SEC comment letter. We ultimately concluded that such disposition was unusual and that a $8.8 millioncharge should be included in future filings, including the annual financial statements to be includedreflected in the Partnership's Annual Report on Form 10-K for the year ending December 31, 2012.2011 financial statements.

The tables below detailreflect the effectsimpact on the financial statements of such depreciation adjustments (including the related deferred income tax impact)corrections as described above. The "As originally filed" amounts represent amounts as filed in the Partnership's 1st quarter 2012 Form 10-Q . The "As restated" amounts in all columns represent amounts after restatement for the first correction which was disclosed in the Partnership's 2nd quarter Form 10-Q and the second correction which was disclosed in the Partnership's 2012 Annual Report on previously presented historical financial statement amounts:Form 10-K/A filed on May 10, 2013.


Balance Sheets   
 12/31/2011 9/25/2011
Accumulated depreciation   
As originally filed$(1,044,589) $(1,044,353)
Correction(18,599) (18,252)
As restated$(1,063,188) $(1,062,605)
Total assets   
As originally filed$2,074,557
 $2,159,339
Correction(18,599) (18,252)
As restated$2,055,958
 $2,141,087
Deferred Tax Liability   
As originally filed$135,446
 $125,588
Correction(1,679) (1,615)
As restated$133,767
 $123,973
Limited Partners' Equity   
As originally filed$182,438
 $221,611
Correction(16,920) (16,637)
As restated$165,518
 $204,974
Balance Sheet 
(In thousands)3/25/2012
Accumulated depreciation 
As originally filed$(1,046,162)
Corrections(27,622)
As restated$(1,073,784)
Total assets 
As originally filed$2,113,126
Corrections(27,622)
As restated$2,085,504
Deferred Tax Liability 
As originally filed$135,746
Corrections(5,019)
As restated$130,727
Limited Partners' Equity 
As originally filed$96,417
Corrections(22,603)
As restated$73,814








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Statements of Operations and Other Comprehensive Income
  Three months ended Nine months ended Twelve months ended
  9/25/2011 9/25/2011 9/25/2011
Depreciation and amortization      
As originally filed $62,619
 $109,173
 $124,345
Correction 829
 1,684
 2,037
As restated $63,448
 $110,857
 $126,382
Income (loss) before tax      
As originally filed $190,891
 $95,031
 $(2,271)
Correction (829) (1,684) (2,037)
As restated $190,062
 $93,347
 $(4,308)
Provision (benefit) for taxes    
As originally filed $38,161
 $22,327
 $(11,808)
Correction (317) (554) (616)
As restated $37,844
 $21,773
 $(12,424)
Net income (loss)    
As originally filed $152,730
 $72,704
 $9,537
Correction (512) (1,130) (1,421)
As restated $152,218
 $71,574
 $8,116
       
Basic earnings per limited partner unit:    
As originally filed $2.76
 $1.31
 $0.17
Correction (0.01) (0.02) (0.02)
As restated $2.75
 $1.29
 $0.15
       
Diluted earnings per limited partner unit:    
As originally filed $2.74
 $1.30
 $0.17
Correction (0.01) (0.02) (0.02)
As restated $2.73
 $1.28
 $0.15
Statements of Operations and Other Comprehensive Income
(In thousands except per unit amounts) Three months ended Twelve months ended
  3/25/2012 3/25/2012
Depreciation and amortization    
As originally filed $3,846
 $123,861
Corrections 233
 2,031
As restated $4,079
 $125,892
Loss on impairment / retirement of fixed assets, net    
As originally filed $92
 $2,461
Corrections —
 8,790
As restated $92
 $11,251
Income (loss) before tax    
As originally filed $(86,721) $101,565
Corrections (233) (10,821)
As restated $(86,954) $90,744
Provision (benefit) for taxes  
As originally filed $(21,539) $9,897
Corrections —
 (3,960)
As restated $(21,539) $5,937
Net income (loss)  
As originally filed $(65,182) $91,668
Corrections (233) (6,861)
As restated $(65,415) $84,807
     
Basic earnings per limited partner unit:  
As originally filed $(1.18) $1.66
Corrections —
 (0.13)
As restated $(1.18) $1.53
     
Diluted earnings per limited partner unit:  
As originally filed $(1.18) $1.64
Corrections —
 (0.12)
As restated $(1.18) $1.52


(12) Changes in Accumulated Other Comprehensive Income by Component:

(12)The following tables reflect the changes in Accumulated other comprehensive income (loss) related to limited partners' equity for the period ended March 31, 2013:



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Table of Contents

 
Changes in Accumulated Other Comprehensive Income by Component (1)
(In thousands)       
   Gains and    
   Losses on Foreign  
   Cash Flow Currency  
   Hedges Items Total
Balance at December 31, 2012 $(25,749) $(2,751) $(28,500)
        
 Other comprehensive      
 income before      
 reclassifications 1,940
 301
 301
        
 Amounts reclassified      
 from accumulated      
 other comprehensive      
 
income (2)
 6,945
 —
 8,885
        
Net current-period other      
comprehensive income 8,885
 301
 9,186
        
March 31, 2013 $(16,864) $(2,450) $(19,314)

(1) All amounts are net of tax. Amounts in parentheses indicate debits.
(2) See Reclassifications Out of Accumulated Other Comprehensive Income table below for reclassification details.

Reclassifications Out of Accumulated Other Comprehensive Income (1)
(In thousands)       
Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement Where Net Income is Presented
Gains and losses on cash flow hedges      
 Interest rate contracts $8,174
  Net effect of swaps
   $8,174
  Total before tax
   (1,229)  Provision (benefit) for taxes
   $6,945
  Net of tax

(1) Amounts in parentheses indicate debits.

(13) Consolidating Financial Information of Guarantors and Issuers:

Cedar Fair, L.P., Canada's Wonderland Company ("Cedar Canada"), and Magnum Management Corporation ("Magnum") are the co-issuers of the Partnership's 9.125% notes and the 5.25% notes (see Note 5). The notes have been fully and unconditionally guaranteed, on a joint and several basis, by each 100% owned subsidiary of Cedar Fair (other than Cedar Canada and Magnum) that guarantees the Partnership's senior secured credit facilities. There are no non-guarantor subsidiaries.

The following consolidating schedules present condensed financial information for Cedar Fair, L.P., Cedar Canada, and Magnum, the co-issuers, and each 100% owned subsidiary of Cedar Fair (other than Cedar Canada and Magnum), the guarantors (on a combined basis), as of September 30, 2012March 31, 2013, December 31, 2011,2012, and SeptemberMarch 25, 20112012 and for the three nine and twelve month periods ended

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September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012. In lieu of providing separate unaudited financial statements for the guarantor subsidiaries, we have included the accompanying condensed consolidating financial statements.

Since Cedar Fair, L.P., Cedar Canada and Magnum are co-issuers of the notes and co-borrowers under the Amended 20102013 Credit Agreement, all outstanding debt has been equally reflected within each co-issuer's September 30, 2012March 31, 2013, December 31, 20112012 and SeptemberMarch 25, 20112012 balance sheets in the accompanying condensed consolidating financial statements.

The consolidating financial information has been corrected for the information described in Note 11.12.
  

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CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
September 30, 2012
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $43,000
 $2,263
 $40,278
 $10,561
 $—
 $96,102
Receivables 3
 108,211
 64,153
 478,372
 (621,382) 29,357
Inventories —
 1,584
 2,742
 29,267
 —
 33,593
Current deferred tax asset —
 6,239
 772
 3,334
 —
 10,345
Income tax refundable —
 —
 10,454
 —
 —
 10,454
Other current assets 929
 2,065
 674
 3,775
 —
 7,443
  43,932
 120,362
 119,073
 525,309
 (621,382) 187,294
Property and Equipment (net) 425,747
 1,025
 272,951
 864,121
 —
 1,563,844
Investment in Park 577,612
 791,617
 118,514
 63,384
 (1,551,127) —
Goodwill 9,061
 —
 127,384
 111,218
 —
 247,663
Other Intangibles, net —
 —
 18,039
 22,826
 —
 40,865
Deferred Tax Asset —
 39,320
 —
 —
 (39,320) —
Intercompany Receivable 877,208
 1,069,721
 1,116,623
 —
 (3,063,552) —
Other Assets 23,361
 15,580
 8,925
 2,305
 —
 50,171
  $1,956,921
 $2,037,625
 $1,781,509
 $1,589,163
 $(5,275,381) $2,089,837
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Accounts payable $210,936
 $116,160
 $29,248
 $287,634
 $(621,382) $22,596
Deferred revenue —
 —
 4,544
 30,138
 —
 34,682
Accrued interest 735
 195
 6,082
 —
 —
 7,012
Accrued taxes 5,818
 42,090
 —
 4,496
 —
 52,404
Accrued salaries, wages and benefits —
 24,864
 2,365
 8,990
 —
 36,219
Self-insurance reserves —
 4,751
 1,698
 16,643
 —
 23,092
Other accrued liabilities 824
 4,097
 2,417
 3,505
 —
 10,843
  218,313
 192,157
 46,354
 351,406
 (621,382) 186,848
Deferred Tax Liability —
 —
 59,462
 122,952
 (39,320) 143,094
Derivative Liability 20,801
 13,907
 —
 —
 —
 34,708
Other Liabilities —
 3,880
 —
 3,500
 —
 7,380
Long-Term Debt:            
Term debt 1,131,100
 1,131,100
 1,131,100
 —
 (2,262,200) 1,131,100
Notes 400,676
 400,676
 400,676
 —
 (801,352) 400,676
  1,531,776
 1,531,776
 1,531,776
 —
 (3,063,552) 1,531,776
             
Equity 186,031
 295,905
 143,917
 1,111,305
 (1,551,127) 186,031
  $1,956,921
 $2,037,625
 $1,781,509
 $1,589,163
 $(5,275,381) $2,089,837


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CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
December 31, 2011
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $—
 $512
 $31,540
 $3,472
 $—
 $35,524
Receivables —
 62,408
 69,285
 412,095
 (536,177) 7,611
Inventories —
 1,547
 2,703
 28,819
 —
 33,069
Current deferred tax asset —
 6,239
 772
 3,334
 —
 10,345
Other current assets 508
 13,461
 1,027
 7,822
 (10,852) 11,966
  508
 84,167
 105,327
 455,542
 (547,029) 98,515
Property and Equipment (net) 455,579
 1,044
 266,111
 896,758
 —
 1,619,492
Investment in Park 518,819
 661,251
 118,385
 40,481
 (1,338,936) —
Intercompany Note Receivable —
 93,845
 —
 —
 (93,845) —
Goodwill 9,061
 —
 123,210
 111,219
 —
 243,490
Other Intangibles, net —
 —
 17,448
 22,825
 —
 40,273
Deferred Tax Asset —
 47,646
 —
 —
 (47,646) —
Intercompany Receivable 887,344
 1,084,112
 1,141,302
 —
 (3,112,758) —
Other Assets 27,641
 16,158
 9,353
 1,036
 —
 54,188
  $1,898,952
 $1,988,223
 $1,781,136
 $1,527,861
 $(5,140,214) $2,055,958
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Current maturities of long-term debt $15,921
 $15,921
 $15,921
 $—
 $(31,842) $15,921
Accounts payable 175,968
 144,868
 25,631
 202,566
 (536,177) 12,856
Deferred revenue —
 —
 2,891
 26,703
 —
 29,594
Accrued interest 198
 131
 15,433
 —
 —
 15,762
Accrued taxes 3,909
 —
 7,374
 15,577
 (10,852) 16,008
Accrued salaries, wages and benefits —
 26,916
 1,076
 5,396
 —
 33,388
Self-insurance reserves —
 3,977
 1,711
 15,555
 —
 21,243
Current derivative liability —
 —
 50,772
 —
 —
 50,772
Other accrued liabilities 1,247
 5,568
 252
 832
 —
 7,899
  197,243
 197,381
 121,061
 266,629
 (578,871) 203,443
Deferred Tax Liability —
 —
 58,463
 122,950
 (47,646) 133,767
Derivative Liability 19,451
 12,949
 —
 —
 —
 32,400
Other Liabilities —
 4,090
 —
 —
 —
 4,090
Intercompany Note Payable —
 —
 —
 93,845
 (93,845) —
Long-Term Debt:            
Term debt 1,140,179
 1,140,179
 1,140,179
 —
 (2,280,358) 1,140,179
Notes 400,279
 400,279
 400,279
 —
 (800,558) 400,279
  1,540,458
 1,540,458
 1,540,458
 —
 (3,080,916) 1,540,458
             
Equity 141,800
 233,345
 61,154
 1,044,437
 (1,338,936) 141,800
  $1,898,952
 $1,988,223
 $1,781,136
 $1,527,861
 $(5,140,214) $2,055,958

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CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
September 25, 2011March 31, 2013
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $49,000
 $2,489
 $36,473
 $8,350
 $—
 $96,312
Receivables 3
 45,663
 81,773
 587,910
 (676,810) 38,539
Inventories —
 1,684
 2,951
 32,311
 —
 36,946
Current deferred tax asset —
 1,686
 779
 3,409
 —
 5,874
Other current assets 875
 2,091
 774
 5,559
 —
 9,299
  49,878
 53,613
 122,750
 637,539
 (676,810) 186,970
Property and Equipment (net) 455,663
 1,055
 257,802
 900,759
 —
 1,615,279
Investment in Park 534,400
 681,893
 118,514
 53,988
 (1,388,795) —
Intercompany Note Receivable —
 269,500
 —
 —
 (269,500) —
Goodwill 9,061
 —
 121,869
 111,219
 —
 242,149
Other Intangibles, net —
 —
 17,258
 22,809
 —
 40,067
Deferred Tax Asset —
 49,845
 —
 —
 (49,845) —
Intercompany Receivable 887,219
 1,083,987
 1,141,302
 —
 (3,112,508) —
Other Assets 28,962
 16,884
 9,616
 1,160
 —
 56,622
  $1,965,183
 $2,156,777
 $1,789,111
 $1,727,474
 $(5,497,458) $2,141,087
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Accounts payable $189,887
 $281,605
 $27,488
 $206,288
 $(676,810) $28,458
Deferred revenue —
 —
 3,701
 28,993
 —
 32,694
Accrued interest 6,115
 1,364
 6,489
 —
 —
 13,968
Accrued taxes 5,189
 23,550
 —
 4,354
 —
 33,093
Accrued salaries, wages and benefits —
 29,373
 2,341
 9,395
 —
 41,109
Self-insurance reserves —
 3,130
 1,658
 17,154
 —
 21,942
Current derivative liability 4,797
 —
 54,569
 —
 —
 59,366
Other accrued liabilities 1,206
 4,840
 1,277
 4,924
 —
 12,247
  207,194
 343,862
 97,523
 271,108
 (676,810) 242,877
Deferred Tax Liability —
 —
 61,405
 112,413
 (49,845) 123,973
Derivative Liability 20,459
 13,376
 —
 —
 —
 33,835
Other Liabilities —
 2,872
 —
 —
 —
 2,872
Intercompany Note Payable —
 —
 —
 269,500
 (269,500) —
Long-Term Debt:            
Term debt 1,156,100
 1,156,100
 1,156,100
 —
 (2,312,200) 1,156,100
Notes 400,154
 400,154
 400,154
 —
 (800,308) 400,154
  1,556,254
 1,556,254
 1,556,254
 —
 (3,112,508) 1,556,254
             
Equity 181,276
 240,413
 73,929
 1,074,453
 (1,388,795) 181,276
  $1,965,183
 $2,156,777
 $1,789,111
 $1,727,474
 $(5,497,458) $2,141,087
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $—
 $732
 $4,125
 $5,181
 $—
 $10,038
Receivables 682
 79,472
 67,302
 436,595
 (570,709) 13,342
Inventories —
 3,645
 3,032
 32,386
 —
 39,063
Current deferred tax asset —
 31,543
 816
 3,663
 —
 36,022
Other current assets 207
 9,630
 1,618
 16,260
 —
 27,715
  889
 125,022
 76,893
 494,085
 (570,709) 126,180
Property and Equipment (net) 457,484
 1,003
 262,941
 849,424
 —
 1,570,852
Investment in Park 419,501
 714,013
 115,401
 21,689
 (1,270,604) —
Goodwill 9,061
 —
 123,374
 111,218
 —
 243,653
Other Intangibles, net —
 —
 17,470
 22,853
 —
 40,323
Deferred Tax Asset —
 34,890
 —
 90
 (34,980) —
Intercompany Receivable 877,336
 1,165,652
 1,211,522
 —
 (3,254,510) —
Other Assets 14,581
 10,291
 7,473
 2,303
 —
 34,648
  $1,778,852
 $2,050,871
 $1,815,074
 $1,501,662
 $(5,130,803) $2,015,656
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Current maturities of long-term debt $6,300
 $6,300
 $6,300
 $—
 $(12,600) $6,300
Accounts payable 103,654
 215,425
 3,891
 285,182
 (570,709) 37,443
Deferred revenue —
 —
 6,679
 59,505
 —
 66,184
Accrued interest 1,444
 916
 5,979
 —
 —
 8,339
Accrued taxes 4,790
 390
 331
 3,489
 —
 9,000
Accrued salaries, wages and benefits —
 13,483
 1,095
 5,604
 —
 20,182
Self-insurance reserves —
 5,324
 1,696
 16,537
 —
 23,557
Other accrued liabilities 589
 5,161
 133
 1,984
 —
 7,867
  116,777
 246,999
 26,104
 372,301
 (583,309) 178,872
Deferred Tax Liability —
 —
 62,700
 126,867
 (34,980) 154,587
Derivative Liability 18,594
 12,437
 —
 —
 —
 31,031
Other Liabilities —
 4,185
 —
 3,500
 —
 7,685
Long-Term Debt:            
Revolving credit loans 96,000
 96,000
 96,000
 —
 (192,000) 96,000
Term debt 623,700
 623,700
 623,700
 —
 (1,247,400) 623,700
Notes 901,255
 901,255
 901,255
 —
 (1,802,510) 901,255
  1,620,955
 1,620,955
 1,620,955
 —
 (3,241,910) 1,620,955
             
Equity 22,526
 166,295
 105,315
 998,994
 (1,270,604) 22,526
  $1,778,852
 $2,050,871
 $1,815,074
 $1,501,662
 $(5,130,803) $2,015,656


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CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOMEBALANCE SHEET
For the Three Months Ended September 30,December 31, 2012
 (As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $79,663
 $141,134
 $88,334
 $464,902
 $(220,588) $553,445
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 6,447
 40,906
 —
 47,353
Operating expenses 1,368
 74,191
 18,736
 289,604
 (220,588) 163,311
Selling, general and administrative 1,853
 32,627
 4,822
 13,691
 —
 52,993
Depreciation and amortization 19,209
 10
 9,430
 32,098
 —
 60,747
Loss on impairment / retirement of fixed assets, net 25,000
 —
 —
 —
 —
 25,000
  47,430
 106,828
 39,435
 376,299
 (220,588) 349,404
Operating income 32,233
 34,306
 48,899
 88,603
 —
 204,041
Interest expense (income), net 12,213
 7,258
 9,897
 (2,518) —
 26,850
Net effect of swaps (104) (71) —
 —
 —
 (175)
Unrealized / realized foreign currency gain —
 —
 (15,035) —
 —
 (15,035)
Other (income) expense 186
 (2,043) 512
 1,345
 —
 —
Income from investment in affiliates (125,311) (79,600) (11,138) (45,137) 261,186
 —
Income before taxes 145,249
 108,762
 64,663
 134,913
 (261,186) 192,401
Provision for taxes 4,561
 9,777
 17,181
 20,194
 —
 51,713
Net income $140,688
 $98,985
 $47,482
 $114,719
 $(261,186) $140,688
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment (563) —
 (563) —
 563
 (563)
Unrealized income (loss) on cash flow hedging derivatives (234) 48
 —
 —
 (48) (234)
Other comprehensive income (loss), (net of tax) (797) 48
 (563) —
 515
 (797)
Total Comprehensive Income $139,891
 $99,033
 $46,919
 $114,719
 $(260,671) $139,891


  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $25,000
 $444
 $50,173
 $3,213
 $—
 $78,830
Receivables 4
 101,093
 71,099
 498,555
 (652,559) 18,192
Inventories —
 1,724
 2,352
 23,764
 —
 27,840
Current deferred tax asset —
 3,705
 816
 3,663
 —
 8,184
Other current assets 563
 17,858
 530
 5,490
 (16,381) 8,060
  25,567
 124,824
 124,970
 534,685
 (668,940) 141,106
Property and Equipment (net) 439,506
 1,013
 268,157
 835,596
 —
 1,544,272
Investment in Park 485,136
 772,183
 115,401
 53,790
 (1,426,510) —
Goodwill 9,061
 —
 125,942
 111,218
 —
 246,221
Other Intangibles, net —
 —
 17,835
 22,817
 —
 40,652
Deferred Tax Asset —
 36,443
 —
 90
 (36,533) —
Intercompany Receivable 877,612
 1,070,125
 1,116,623
 —
 (3,064,360) —
Other Assets 22,048
 14,832
 8,419
 2,315
 —
 47,614
  $1,858,930
 $2,019,420
 $1,777,347
 $1,560,511
 $(5,196,343) $2,019,865
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Accounts payable $147,264
 $213,279
 $16,101
 $286,649
 $(652,559) $10,734
Deferred revenue —
 —
 4,996
 34,489
 —
 39,485
Accrued interest 98
 64
 15,350
 —
 —
 15,512
Accrued taxes 4,518
 —
 6,239
 23,437
 (16,381) 17,813
Accrued salaries, wages and benefits —
 17,932
 1,214
 5,690
 —
 24,836
Self-insurance reserves —
 5,528
 1,754
 16,624
 —
 23,906
Other accrued liabilities 1,110
 2,502
 140
 2,164
 —
 5,916
  152,990
 239,305
 45,794
 369,053
 (668,940) 138,202
Deferred Tax Liability —
 —
 63,460
 126,865
 (36,533) 153,792
Derivative Liability 19,309
 12,951
 —
 —
 —
 32,260
Other Liabilities —
 5,480
 —
 3,500
 —
 8,980
Long-Term Debt:            
Term debt 1,131,100
 1,131,100
 1,131,100
 —
 (2,262,200) 1,131,100
Notes 401,080
 401,080
 401,080
 —
 (802,160) 401,080
  1,532,180
 1,532,180
 1,532,180
 —
 (3,064,360) 1,532,180
             
Equity 154,451
 229,504
 135,913
 1,061,093
 (1,426,510) 154,451
  $1,858,930
 $2,019,420
 $1,777,347
 $1,560,511
 $(5,196,343) $2,019,865

23
Table of Contents

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOMEBALANCE SHEET
For the Three Months Ended March 25, 2012September 25, 2011
(As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $82,713
 $147,138
 $84,679
 $487,352
 $(229,614) $572,268
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 6,659
 42,099
 —
 48,758
Operating expenses 1,257
 69,119
 19,397
 301,293
 (229,614) 161,452
Selling, general and administrative 1,297
 30,460
 5,064
 15,157
 —
 51,978
Depreciation and amortization 20,354
 11
 9,564
 33,519
 —
 63,448
Loss on impairment / retirement of fixed assets, net 827
 —
 10
 43
 —
 880
  23,735
 99,590
 40,694
 392,111
 (229,614) 326,516
Operating income 58,978
 47,548
 43,985
 95,241
 —
 245,752
Interest expense, net 23,948
 3,085
 13,433
 855
 —
 41,321
Net effect of swaps (4,112) (192) 342
 —
 —
 (3,962)
Unrealized / realized foreign currency loss —
 —
 18,549
 —
 —
 18,549
Other (income) expense (30) (1,711) 616
 907
 —
 (218)
Income from investment in affiliates (117,557) (57,557) (8,410) (15,579) 199,103
 —
Income before taxes 156,729
 103,923
 19,455
 109,058
 (199,103) 190,062
Provision for taxes 4,511
 12,445
 3,103
 17,785
 —
 37,844
Net income $152,218
 $91,478
 $16,352
 $91,273
 $(199,103) $152,218
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment 2,842
 —
 2,842
 —
 (2,842) 2,842
Unrealized income on cash flow hedging derivatives (3,224) (4,646) 72
 —
 4,574
 (3,224)
Other comprehensive income (loss), (net of tax) (382) (4,646) 2,914
 —
 1,732
 (382)
Total Comprehensive Income $151,836
 $86,832
 $19,266
 $91,273
 $(197,371) $151,836





  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $—
 $397
 $119
 $6,803
 $—
 $7,319
Receivables —
 82,892
 59,911
 370,246
 (506,356) 6,693
Inventories —
 3,321
 3,678
 37,487
 —
 44,486
Current deferred tax asset —
 11,014
 772
 3,334
 —
 15,120
Other current assets 359
 5,907
 11,851
 12,293
 —
 30,410
  359
 103,531
 76,331
 430,163
 (506,356) 104,028
Property and Equipment (net) 464,394
 1,035
 279,255
 896,184
 —
 1,640,868
Investment in Park 459,339
 661,166
 115,401
 25,758
 (1,261,664) —
Intercompany Note Receivable —
 104,165
 —
 —
 (104,165) —
Goodwill 9,061
 —
 125,528
 111,219
 —
 245,808
Other Intangibles, net —
 —
 17,776
 22,831
 —
 40,607
Deferred Tax Asset —
 47,646
 —
 —
 (47,646) —
Intercompany Receivable 889,442
 1,239,210
 1,294,302
 —
 (3,422,954) —
Other Assets 26,323
 16,288
 9,608
 1,974
 —
 54,193
  $1,848,918
 $2,173,041
 $1,918,201
 $1,488,129
 $(5,342,785) $2,085,504
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Current maturities of long-term debt $15,921
 $15,921
 $15,921
 $—
 $(31,842) $15,921
Accounts payable 60,297
 232,001
 26,302
 215,968
 (506,356) 28,212
Deferred revenue —
 —
 5,413
 45,341
 —
 50,754
Accrued interest 3,089
 1,706
 5,519
 —
 —
 10,314
Accrued taxes 4,925
 340
 261
 3,294
 —
 8,820
Accrued salaries, wages and benefits —
 26,989
 781
 5,792
 —
 33,562
Self-insurance reserves —
 4,212
 1,716
 15,826
 —
 21,754
Other accrued liabilities 462
 3,312
 226
 2,104
 —
 6,104
  84,694
 284,481
 56,139
 288,325
 (538,198) 175,441
Deferred Tax Liability —
 —
 58,762
 119,611
 (47,646) 130,727
Derivative Liability 19,403
 12,877
 —
 —
 —
 32,280
Other Liabilities —
 2,235
 —
 —
 —
 2,235
Intercompany Note Payable —
 —
 —
 104,165
 (104,165) —
Long-Term Debt:            
Revolving credit loans 155,004
 155,004
 155,004
 —
 (310,008) 155,004
Term debt 1,140,179
 1,140,179
 1,140,179
 —
 (2,280,358) 1,140,179
Notes 400,373
 400,373
 400,373
 —
 (800,746) 400,373
  1,695,556
 1,695,556
 1,695,556
 —
 (3,391,112) 1,695,556
             
Equity 49,265
 177,892
 107,744
 976,028
 (1,261,664) 49,265
  $1,848,918
 $2,173,041
 $1,918,201
 $1,488,129
 $(5,342,785) $2,085,504


24
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CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the NineThree Months Ended September 30, 2012March 31, 2013
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $124,864
 $221,221
 $130,441
 $808,471
 $(345,748) $939,249
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 9,988
 73,938
 —
 83,926
Operating expenses 4,141
 147,211
 40,328
 534,900
 (345,748) 380,832
Selling, general and administrative 4,841
 70,848
 9,877
 29,922
 —
 115,488
Depreciation and amortization 33,436
 28
 16,415
 63,277
 —
 113,156
Loss on impairment / retirement of fixed assets, net 24,221
 —
 9
 —
 —
 24,230
  66,639
 218,087
 76,617
 702,037
 (345,748) 717,632
Operating income 58,225
 3,134
 53,824
 106,434
 —
 221,617
Interest expense (income), net 36,438
 21,957
 30,898
 (5,422) —
 83,871
Net effect of swaps (35) 192
 (1,475) —
 —
 (1,318)
Unrealized / realized foreign currency gain —
 —
 (13,926) —
 —
 (13,926)
Other (income) expense 561
 (7,119) 1,221
 5,337
 —
 —
Income from investment in affiliates (99,035) (72,862) (14,505) (38,160) 224,562
 —
Income before taxes 120,296
 60,966
 51,611
 144,679
 (224,562) 152,990
Provision (benefit) for taxes 8,701
 (3,771) 13,525
 22,940
 —
 41,395
Net income $111,595
 $64,737
 $38,086
 $121,739
 $(224,562) $111,595
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment (1,251) —
 (1,251) —
 1,251
 (1,251)
Unrealized income (loss) on cash flow hedging derivatives (1,798) (629) 21
 —
 608
 (1,798)
Other comprehensive income (loss), (net of tax) (3,049) (629) (1,230) —
 1,859
 (3,049)
Total Comprehensive Income $108,546
 $64,108
 $36,856
 $121,739
 $(222,703) $108,546
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $4,317
 $8,371
 $289
 $41,510
 $(12,688) $41,799
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 —
 5,037
 —
 5,037
Operating expenses 1,423
 21,606
 5,941
 60,375
 (12,688) 76,657
Selling, general and administrative 1,292
 16,613
 711
 2,423
 —
 21,039
Depreciation and amortization 475
 9
 —
 4,302
 —
 4,786
Loss on impairment / retirement of fixed assets, net 36
 —
 478
 86
 —
 600
  3,226
 38,228
 7,130
 72,223
 (12,688) 108,119
Operating income (loss) 1,091
 (29,857) (6,841) (30,713) —
 (66,320)
Interest expense (income), net 10,512
 7,677
 9,764
 (2,230) —
 25,723
Net effect of swaps 5,635
 3,576
 —
 —
 —
 9,211
Loss on early debt extinguishment 21,175
 12,781
 617
 —
 —
 34,573
Unrealized / realized foreign currency loss —
 —
 8,958
 —
 —
 8,958
Other (income) expense 188
 (2,388) 800
 1,400
 —
 —
Loss from investment in affiliates 72,096
 35,640
 3,520
 21,227
 (132,483) —
Loss before taxes (108,515) (87,143) (30,500) (51,110) 132,483
 (144,785)
Provision (benefit) for taxes 611
 (17,665) (9,254) (9,351) —
 (35,659)
Net loss $(109,126) $(69,478) $(21,246) $(41,759) $132,483
 $(109,126)
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment 301
 —
 301
 —
 (301) 301
Unrealized income on cash flow hedging derivatives 8,885
 2,535
 —
 —
 (2,535) 8,885
Other comprehensive income, (net of tax) 9,186
 2,535
 301
 —
 (2,836) 9,186
Total Comprehensive Loss $(99,940) $(66,943) $(20,945) $(41,759) $129,647
 $(99,940)



25
Table of Contents

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the NineThree Months Ended SeptemberMarch 25, 20112012
(As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $118,280
 $210,407
 $115,163
 $768,126
 $(328,349) $883,627
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 9,389
 70,592
 —
 79,981
Operating expenses 4,180
 131,955
 38,959
 504,813
 (328,349) 351,558
Selling, general and administrative 8,049
 64,226
 9,541
 28,310
 —
 110,126
Depreciation and amortization 33,021
 34
 15,440
 62,362
 —
 110,857
Loss on impairment / retirement of fixed assets, net 1,023
 —
 10
 43
 —
 1,076
  46,273
 196,215
 73,339
 666,120
 (328,349) 653,598
Operating income 72,007
 14,192
 41,824
 102,006
 —
 230,029
Interest expense, net 70,822
 8,395
 39,129
 6,184
 —
 124,530
Net effect of swaps (7,230) 910
 2,813
 —
 —
 (3,507)
Unrealized / realized foreign currency loss —
 —
 14,704
 —
 —
 14,704
Other (income) expense 1,517
 (4,712) 2,072
 2,078
 —
 955
(Income) loss from investment in affiliates (71,656) (34,663) (12,389) 107
 118,601
 —
Income (loss) before taxes 78,554
 44,262
 (4,505) 93,637
 (118,601) 93,347
Provision (benefit) for taxes 6,980
 2,527
 (4,446) 16,712
 —
 21,773
Net income (loss) $71,574
 $41,735
 $(59) $76,925
 $(118,601) $71,574
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment 2,354
 —
 2,354
 —
 (2,354) 2,354
Unrealized income on cash flow hedging derivatives 2,366
 (9,866) 79
 —
 9,787
 2,366
Other comprehensive income (loss), (net of tax) 4,720
 (9,866) 2,433
 —
 7,433
 4,720
Total Comprehensive Income $76,294
 $31,869
 $2,374
 $76,925
 $(111,168) $76,294

  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $1,456
 $2,577
 $266
 $27,932
 $(4,033) $28,198
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 —
 4,087
 —
 4,087
Operating expenses 1,335
 20,436
 5,657
 47,890
 (4,033) 71,285
Selling, general and administrative 1,332
 13,696
 760
 2,196
 —
 17,984
Depreciation and amortization 696
 9
 —
 3,374
 —
 4,079
Loss on impairment / retirement of fixed assets, net 82
 —
 10
 —
 —
 92
  3,445
 34,141
 6,427
 57,547
 (4,033) 97,527
Operating loss (1,989) (31,564) (6,161) (29,615) —
 (69,329)
Interest expense, net 11,158
 6,615
 10,403
 (1,389) —
 26,787
Net effect of swaps 173
 332
 (1,475) —
 —
 (970)
Unrealized / realized foreign currency gain —
 —
 (8,192) —
 —
 (8,192)
Other (income) expense 187
 (3,035) 197
 2,651
 —
 —
Loss from investment in affiliates 50,491
 23,083
 3,230
 24,916
 (101,720) —
Loss before taxes (63,998) (58,559) (10,324) (55,793) 101,720
 (86,954)
Provision (benefit) for taxes 1,417
 (11,672) (2,334) (8,950) —
 (21,539)
Net loss $(65,415) $(46,887) $(7,990) $(46,843) $101,720
 $(65,415)
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment (1,169) —
 (1,169) —
 1,169
 (1,169)
Unrealized income on cash flow hedging derivatives 339
 98
 21
 —
 (119) 339
Other comprehensive income (loss), (net of tax) (830) 98
 (1,148) —
 1,050
 (830)
Total Comprehensive Loss $(66,245) $(46,789) $(9,138) $(46,843) $102,770
 $(66,245)

























26
Table of Contents



CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
For the Twelve Months Ended September 30, 2012March 31, 2013
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $147,733
 $261,878
 $142,250
 $941,465
 $(409,232) $1,084,094
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 10,531
 85,471
 —
 96,002
Operating expenses 5,452
 180,665
 47,134
 636,106
 (409,232) 460,125
Selling, general and administrative 6,865
 90,892
 11,650
 36,381
 —
 145,788
Depreciation and amortization 37,698
 41
 18,300
 72,097
 —
 128,136
(Gain) loss on impairment / retirement of fixed assets, net 24,188
 —
 (62) 1,593
 —
 25,719
  74,203
 271,598
 87,553
 831,648
 (409,232) 855,770
Operating income (loss) 73,530
 (9,720) 54,697
 109,817
 —
 228,324
Interest (income) expense, net 50,007
 28,592
 44,583
 (6,813) —
 116,369
Net effect of swaps (5,019) (1) (5,910) —
 —
 (10,930)
Unrealized / realized foreign currency gain —
 —
 (18,721) —
 —
 (18,721)
Other (income) expense 749
 (10,205) 1,498
 7,958
 —
 —
Income from investment in affiliates (93,080) (55,557) (12,698) (24,955) 186,290
 —
Income before taxes 120,873
 27,451
 45,945
 133,627
 (186,290) 141,606
Provision (benefit) for taxes 10,106
 (29,298) 20,942
 29,089
 —
 30,839
Net income $110,767
 $56,749
 $25,003
 $104,538
 $(186,290) $110,767
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment (2,672) —
 (2,672) —
 2,672
 (2,672)
Unrealized income (loss) on cash flow hedging derivatives (397) (109) 21
 —
 88
 (397)
Other comprehensive income (loss), (net of tax) (3,069) (109) (2,651) —
 2,760
 (3,069)
Total Comprehensive Income $107,698
 $56,640
 $22,352
 $104,538
 $(183,530) $107,698
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $148,576
 $263,930
 $140,441
 $941,246
 $(412,138) $1,082,055
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 10,316
 85,682
 —
 95,998
Operating expenses 5,468
 177,526
 48,147
 637,772
 (412,138) 456,775
Selling, general and administrative 6,455
 89,532
 11,086
 34,293
 —
 141,366
Depreciation and amortization 37,439
 40
 18,199
 71,335
 —
 127,013
(Gain) on sale of other assets —
 —
 —
 (6,625) —
 (6,625)
Loss on impairment / retirement of fixed assets, net 25,089
 —
 474
 5,281
 —
 30,844
  74,451
 267,098
 88,222
 827,738
 (412,138) 845,371
Operating income (loss) 74,125
 (3,168) 52,219
 113,508
 —
 236,684
Interest (income) expense, net 47,879
 30,390
 40,231
 (9,013) —
 109,487
Net effect of swaps 5,324
 3,365
 —
 —
 —
 8,689
Loss on early debt extinguishment 21,175
 12,781
 617
 —
 —
 34,573
Unrealized / realized foreign currency loss —
 —
 8,152
 —
 —
 8,152
Other (income) expense 750
 (8,860) 2,623
 5,487
 —
 —
Income from investment in affiliates (68,417) (53,593) (14,307) (18,503) 154,820
 —
Income before taxes 67,414
 12,749
 14,903
 135,537
 (154,820) 75,783
Provision (benefit) for taxes 9,269
 (15,849) (3,507) 27,725
 —
 17,638
Net income $58,145
 $28,598
 $18,410
 $107,812
 $(154,820) $58,145
Other comprehensive income, (net of tax):            
Cumulative foreign currency translation adjustment 1,839
 —
 1,839
 —
 (1,839) 1,839
Unrealized income on cash flow hedging derivatives 8,685
 2,551
 —
 —
 (2,551) 8,685
Other comprehensive income (loss), (net of tax) 10,524
 2,551
 1,839
 —
 (4,390) 10,524
Total Comprehensive Income $68,669
 $31,149
 $20,249
 $107,812
 $(159,210) $68,669



27
Table of Contents

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the Twelve Months Ended SeptemberMarch 25, 20112012 (As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $138,907
 $247,595
 $126,355
 $886,578
 $(386,119) $1,013,316
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 9,850
 80,928
 —
 90,778
Operating expenses 5,725
 163,754
 45,814
 597,781
 (386,119) 426,955
Selling, general and administrative 9,755
 79,492
 11,347
 32,598
 —
 133,192
Depreciation and amortization 37,168
 95
 17,188
 71,931
 —
 126,382
Loss on impairment of goodwill and other intangibles —
 —
 —
 903
 —
 903
Loss on impairment / retirement of fixed assets, net 1,456
 —
 10
 62,043
 —
 63,509
  54,104
 243,341
 84,209
 846,184
 (386,119) 841,719
Operating income 84,803
 4,254
 42,146
 40,394
 —
 171,597
Interest expense, net 99,205
 14,877
 52,411
 4,362
 —
 170,855
Net effect of swaps (7,183) 910
 8,045
 —
 —
 1,772
Unrealized / realized foreign currency loss —
 —
 2,323
 —
 —
 2,323
Other (income) expense 1,704
 (5,748) 2,852
 2,147
 —
 955
(Income) loss from investment in affiliates (25,098) 1,534
 (9,116) 2,425
 30,255
 —
Income (loss) before taxes 16,175
 (7,319) (14,369) 31,460
 (30,255) (4,308)
Provision (benefit) for taxes 8,059
 953
 (7,308) (14,128) —
 (12,424)
Net income (loss) $8,116
 $(8,272) $(7,061) $45,588
 $(30,255) $8,116
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment (1,704) —
 (1,704) —
 1,704
 (1,704)
Unrealized income on cash flow hedging derivatives 22,916
 (7,153) 180
 —
 6,973
 22,916
Other comprehensive income (loss), (net of tax) 21,212
 (7,153) (1,524) —
 8,677
 21,212
Total Comprehensive Income (Loss) $29,328
 $(15,425) $(8,585) $45,588
 $(21,578) $29,328
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $140,548
 $249,988
 $126,375
 $903,046
 $(390,156) $1,029,801
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 9,932
 82,100
 —
 92,032
Operating expenses 5,351
 167,068
 45,805
 608,940
 (390,156) 437,008
Selling, general and administrative 7,963
 83,355
 11,151
 35,026
 —
 137,495
Depreciation and amortization 37,309
 45
 17,325
 71,213
 —
 125,892
Loss (gain) on impairment / retirement of fixed assets, net 876
 —
 (51) 10,426
 —
 11,251
  51,499
 250,468
 84,162
 807,705
 (390,156) 803,678
Operating income (loss) 89,049
 (480) 42,213
 95,341
 —
 226,123
Interest expense, net 72,309
 19,090
 50,897
 488
 —
 142,784
Net effect of swaps (10,940) (243) (4,793) —
 —
 (15,976)
Unrealized / realized foreign currency loss —
 —
 8,605
 —
 —
 8,605
Other (income) expense 716
 (9,542) 1,708
 7,084
 —
 (34)
(Income) loss from investment in affiliates (67,272) (19,390) (2,601) 16,074
 73,189
 —
Income (loss) before taxes 94,236
 9,605
 (11,603) 71,695
 (73,189) 90,744
Provision (benefit) for taxes 9,429
 (25,950) 4,319
 18,139
 —
 5,937
Net income (loss) $84,807
 $35,555
 $(15,922) $53,556
 $(73,189) $84,807
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment 1,050
 —
 1,050
 —
 (1,050) 1,050
Unrealized income (loss) on cash flow hedging derivatives (7,958) (9,638) 254
 —
 9,384
 (7,958)
Other comprehensive income (loss), (net of tax) (6,908) (9,638) 1,304
 —
 8,334
 (6,908)
Total Comprehensive Income (Loss) $77,899
 $25,917
 $(14,618) $53,556
 $(64,855) $77,899




28
Table of Contents

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the NineThree Months Ended September 30, 2012March 31, 2013
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $208,436
 $48,506
 $9,093
 $155,849
 $(145,140) $276,744
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates (56,171) (70,083) 3,948
 (22,834) 145,140
 —
Sale of other assets 1,173
 —
 —
 —
 —
 1,173
Capital expenditures (29,295) (8) (14,426) (32,081) —
 (75,810)
Net cash from (for) investing activities (84,293) (70,091) (10,478) (54,915) 145,140
 (74,637)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Derivative settlement —
 —
 (50,450) —
 —
 (50,450)
Term debt payments, including early termination penalties (14,468) (10,212) (320) —
 —
 (25,000)
Intercompany (payments) receipts —
 93,845
 —
 (93,845) —
 —
Distributions (paid) received (66,675) 110
 —
 —
 —
 (66,565)
Capital (contribution) infusion —
 (60,000) 60,000
 —
 —
 —
Exercise of limited partnership unit options —
 47
 —
 —
 —
 47
Excess tax benefit from unit-based compensation expense —
 (454) —
 —
 —
 (454)
Net cash from (for) financing activities (81,143) 23,336
 9,230
 (93,845) —
 (142,422)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 893
 —
 —
 893
CASH AND CASH EQUIVALENTS            
Net increase for the period 43,000
 1,751
 8,738
 7,089
 —
 60,578
Balance, beginning of period —
 512
 31,540
 3,472
 —
 35,524
Balance, end of period $43,000
 $2,263
 $40,278
 $10,561
 $—
 $96,102
             
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $(117,670) $(49,663) $(42,030) $(12,767) $153,463
 $(68,667)
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates 65,636
 58,171
 (2,442) 32,098
 (153,463) —
Capital expenditures (17,866) —
 (600) (17,363) —
 (35,829)
Net cash from (for) investing activities 47,770
 58,171
 (3,042) 14,735
 (153,463) (35,829)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Net borrowings on revolving credit loans $96,000
 $—
 $—
 $—
 $—
 $96,000
Term debt borrowings 359,022
 256,500
 14,478
 —
 —
 630,000
Note borrowings 294,897
 205,103
 —
 —
 —
 500,000
Payment of debt issuance costs (14,763) (8,538) (190) —
 —
 (23,491)
Term debt payments, including early termination penalties (654,568) (462,054) (14,478) —
 —
 (1,131,100)
Distributions (paid) received (35,688) 868
 —
 —
 —
 (34,820)
Exercise of limited partnership unit options —
 28
 —
 —
 —
 28
Excess tax benefit from unit-based compensation expense —
 (127) —
 —
 —
 (127)
Net cash from (for) financing activities 44,900
 (8,220) (190) —
 —
 36,490
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 (786) —
 —
 (786)
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period (25,000) 288
 (46,048) 1,968
 —
 (68,792)
Balance, beginning of period 25,000
 444
 50,173
 3,213
 —
 78,830
Balance, end of period $—
 $732
 $4,125
 $5,181
 $—
 $10,038
             

29
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CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the NineThree Months Ended SeptemberMarch 25, 20112012 (As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $169,343
 $48,628
 $48,422
 $25,310
 $(69,338) $222,365
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates (29,986) (39,615) (6,353) 6,616
 69,338
 —
Capital expenditures (38,121) —
 (10,510) (24,249) —
 (72,880)
Net cash from (for) investing activities (68,107) (39,615) (16,863) (17,633) 69,338
 (72,880)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Net (payments) on revolving credit loans (23,200) —
 —
 —
 —
 (23,200)
Term debt borrowings 13,246
 9,358
 334
 —
 —
 22,938
Term debt payments, including early termination penalties (13,831) (9,763) (306) —
 —
 (23,900)
Intercompany (payments) receipts —
 688
 —
 (688) —
 —
Distributions (paid) received (16,668) 64
 —
 —
 —
 (16,604)
Payment of debt issuance costs (11,783) (8,332) (375) —
 —
 (20,490)
Net cash from (for) financing activities (52,236) (7,985) (347) (688) —
 (61,256)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 (1,682) —
 —
 (1,682)
CASH AND CASH EQUIVALENTS            
Net increase for the period 49,000
 1,028
 29,530
 6,989
 —
 86,547
Balance, beginning of period —
 1,461
 6,943
 1,361
 —
 9,765
Balance, end of period $49,000
 $2,489
 $36,473
 $8,350
 $—
 $96,312
             
             
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $(184,504) $10,151
 $(37,239) $(6,697) $136,357
 $(81,932)
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates 62,103
 60,369
 2,208
 11,677
 (136,357) —
Capital expenditures (8,374) —
 (7,125) (11,969) —
 (27,468)
Net cash from (for) investing activities 53,729
 60,369
 (4,917) (292) (136,357) (27,468)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Net borrowings on revolving credit loans 153,000
 —
 2,004
 —
 —
 155,004
Derivative settlement —
 —
 (50,450) —
 —
 (50,450)
Intercompany (payments) receipts —
 (10,320) —
 10,320
 —
 —
Distributions (paid) received (22,225) 74
 —
 —
 —
 (22,151)
Capital (contribution) infusion —
 (60,000) 60,000
 —
 —
 —
Exercise of limited partnership unit options —
 48
 —
 —
 —
 48
Excess tax benefit from unit-based compensation —
 (437) —
 —
 —
 (437)
Net cash from (for) financing activities 130,775
 (70,635) 11,554
 10,320
 —
 82,014
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 (819) —
 —
 (819)
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period —
 (115) (31,421) 3,331
 —
 (28,205)
Balance, beginning of period —
 512
 31,540
 3,472
 —
 35,524
Balance, end of period $—
 $397
 $119
 $6,803
 $—
 $7,319
             
             

30
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CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the Twelve Months Ended September 30, 2012March 31, 2013
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $186,582
 $(152,159) $12,038
 $318,078
 $(91,985) $272,554
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates (40,694) (47,206) 5,245
 (9,330) 91,985
 —
Sale of other assets 1,173
 —
 —
 —
 —
 1,173
Capital expenditures (33,025) (8) (23,050) (37,037) —
 (93,120)
Net cash for investing activities (72,546) (47,214) (17,805) (46,367) 91,985
 (91,947)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Intercompany term debt (payments) receipts —
 269,500
 —
 (269,500) —
 —
Derivative settlement —
 —
 (50,450) —
 —
 (50,450)
Term debt payments, including early termination penalties (14,467) (10,213) (320) —
 —
 (25,000)
Distributions (paid) received (105,569) 261
 —
 —
 —
 (105,308)
Capital (contribution) infusion —
 (60,000) 60,000
 —
 —
 —
Exercise of limited partnership unit options —
 53
 —
 —
 —
 53
Payment of debt issuance costs —
 —
 (723) —
 —
 (723)
Excess tax benefit from unit-based compensation expense —
 (454) —
 —
 —
 (454)
Net cash from (for) financing activities (120,036) 199,147
 8,507
 (269,500) —
 (181,882)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 1,065
 —
 —
 1,065
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period (6,000) (226) 3,805
 2,211
 —
 (210)
Balance, beginning of period 49,000
 2,489
 36,473
 8,350
 —
 96,312
Balance, end of period $43,000
 $2,263
 $40,278
 $10,561
 $—
 $96,102
             
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $188,221
 $(37,475) $16,546
 $135,165
 $(4,510) $297,947
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates 43,043
 (49,642) (2,479) 4,568
 4,510
 —
Sale of other assets 1,173
 —
 —
 14,885
 —
 16,058
Capital expenditures (43,156) (8) (8,023) (52,075) —
 (103,262)
Net cash for investing activities 1,060
 (49,650) (10,502) (32,622) 4,510
 (87,204)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Net borrowings on revolving credit loans $(57,000) $—
 $(2,004) $—
 $—
 $(59,004)
Term debt borrowings 359,022
 256,500
 14,478
 —
 —
 630,000
Note borrowings 294,897
 205,103
 —
 —
 —
 500,000
Intercompany term debt (payments) receipts —
 104,165
 —
 (104,165) —
 —
Term debt payments, including early termination penalties (669,035) (472,267) (14,798) —
 —
 (1,156,100)
Distributions (paid) received (102,402) 920
 —
 —
 —
 (101,482)
Capital (contribution) infusion —
 —
 —
 —
 —
 —
Exercise of limited partnership unit options —
 57
 —
 —
 —
 57
Payment of debt issuance costs (14,763) (8,537) (191) —
 —
 (23,491)
Excess tax benefit from unit-based compensation expense —
 1,519
 —
 —
 —
 1,519
Net cash from (for) financing activities (189,281) 87,460
 (2,515) (104,165) —
 (208,501)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 477
 —
 —
 477
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period —
 335
 4,006
 (1,622) —
 2,719
Balance, beginning of period —
 397
 119
 6,803
 —
 7,319
Balance, end of period $—
 $732
 $4,125
 $5,181
 $—
 $10,038
             

31
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CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the Twelve Months Ended SeptemberMarch 25, 20112012 (As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $101,376
 $(9,652) $25,380
 $19,056
 $58,064
 $194,224
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates 25,281
 23,147
 (1,356) 10,992
 (58,064) —
Capital expenditures (44,247) —
 (13,179) (27,488) —
 (84,914)
Net cash from (for) investing activities (18,966) 23,147
 (14,535) (16,496) (58,064) (84,914)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Term debt borrowings 13,246
 9,358
 334
 —
 —
 22,938
Intercompany term debt (payments) receipts —
 2,063
 —
 (2,063) —
 —
Term debt payments, including early termination penalties (24,211) (17,091) (536) —
 —
 (41,838)
Distributions (paid) received (30,559) 121
 —
 —
 —
 (30,438)
Exercise of limited partnership unit options —
 7
 —
 —
 —
 7
Payment of debt issuance costs (12,886) (9,110) (761) —
 —
 (22,757)
Net cash from (for) financing activities (54,410) (14,652) (963) (2,063) —
 (72,088)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 (2,611) —
 —
 (2,611)
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period 28,000
 (1,157) 7,271
 497
 —
 34,611
Balance, beginning of period 21,000
 3,646
 29,202
 7,853
 —
 61,701
Balance, end of period $49,000
 $2,489
 $36,473
 $8,350
 $—
 $96,312
             
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $113,654
 $(89,658) $14,102
 $182,798
 $(367) $220,529
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates (16,818) (6,588) 1,126
 21,913
 367
 —
Capital expenditures (40,662) —
 (22,440) (34,253) —
 (97,355)
Net cash from (for) investing activities (57,480) (6,588) (21,314) (12,340) 367
 (97,355)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Net borrowings (payments) on revolving credit loans 31,000
 —
 (3,110) —
 —
 27,890
Intercompany term debt (payments) receipts —
 166,023
 —
 (166,023) —
 —
Term debt payments, including early termination penalties (13,831) (9,763) (306) —
 —
��(23,900)
Derivative settlement —
 —
 (50,450) —
 —
 (50,450)
Distributions (paid) received (73,343) 273
 —
 —
 —
 (73,070)
Capital (contribution) infusion —
 (60,000) 60,000
 —
 —
 —
Payment of debt issuance costs —
 —
 (723) —
 —
 (723)
Exercise of limited partnership unit options —
 53
 —
 —
 —
 53
Excess tax benefit from unit-based compensation —
 (437) —
 —
 —
 (437)
Net cash from (for) financing activities (56,174) 96,149
 5,411
 (166,023) —
 (120,637)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 (2,473) —
 —
 (2,473)
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period —
 (97) (4,274) 4,435
 —
 64
Balance, beginning of period —
 494
 4,393
 2,368
 —
 7,255
Balance, end of period $—
 $397
 $119
 $6,803
 $—
 $7,319


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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Business Overview:

We generate our revenues primarily from sales of (1) admission to our parks, (2) food, merchandise and games inside our parks, and (3) hotel rooms, food and other attractions outside our parks. Our principal costs and expenses, which include salaries and wages, advertising, maintenance, operating supplies, utilities and insurance, are relatively fixed and do not vary significantly with attendance.

Each of our properties is run by a park general manager and operates autonomously. Management reviews operating results, evaluates performance and makes operating decisions, including the allocation of resources, on a property-by-property basis.

Aside from attendance and guest per capita statistics, discrete financial information and operating results are not prepared at the regional level, but rather at the individual park level for use by the CEO, who is the Chief Operating Decision Maker (CODM), as well as by the Chief Financial Officer, the Chief Operating Officer, the park general managers, and the Executive Vice President, Operations.


Critical Accounting Policies:
This management’s discussion and analysis of financial condition and results of operations is based upon our unaudited condensed consolidated financial statements, which were prepared in accordance with accounting principles generally accepted in the United States of America. These principles require us to make judgments, estimates and assumptions during the normal course of business that affect the amounts reported in the unaudited condensed consolidated financial statements. Actual results could differ significantly from those estimates under different assumptions and conditions.
Management believes that judgment and estimates related to the following critical accounting policies could materially affect our consolidated financial statements:
 
•Property and Equipment
 
•Impairment of Long-Lived Assets
 
•Goodwill and Other Intangible Assets
 
•Self-Insurance Reserves
 
•Derivative Financial Instruments
 
•Revenue Recognition

Income Taxes
In the thirdfirst quarter of 20122013, there were no changes in the above critical accounting policies previously disclosed in our Annual Report on Form 10-K10-K/A for the year ended December 31, 20112012. except as noted below.
Change in Depreciation Method
Effective January 1, 2013, the Partnership changed its method of depreciation for the group of assets acquired as a whole in 1983, as well as for the groups of like assets of each subsequent business acquisition from the composite method to the unit method.
Historically, the Partnership had used the composite depreciation method for land improvements, buildings, rides and equipment for the group of assets acquired as a whole in 1983, as well as for the group of like assets of each subsequent business acquisition. The unit method was only used for all individual assets purchased. Under the composite depreciation method, assets with similar estimated lives are grouped together and the several pools of assets are depreciated on an aggregate basis. No gain or loss is recognized on normal retirements of composite assets. Instead, the net book value of a retired asset reduces accumulated depreciation for the composite group. Unusual retirements of composite assets could result in the recognition of a gain or loss. Under the unit method of depreciation, individual assets are depreciated over their estimated useful lives, with gains and losses on all asset retirements recognized currently in income.
In order to improve comparability and enhance the level of precision associated with allocating historical cost, the Partnership had determined that it was preferable to change from the composite method of depreciation to the unit method of depreciation for

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all assets. The Partnership believes that pursuant to generally accepted accounting principles, changing from the composite method of depreciation to the unit method of depreciation is a change in accounting estimate that is effected by a change in accounting principle, which should be accounted for prospectively. This prospective application will result in the discontinuance of the composite method of depreciation for all prior acquisitions with the existing net book value of each composite pool allocated to the remaining individual assets (units) in that pool with each unit assigned an appropriate remaining useful life on an individual unit basis. Assigning a useful life to each unit in the various composite pools had an insignificant effect on the weighted average useful lives of all assets that were previously accounted for under the composite method.
The change in depreciation method had an immaterial impact on the Condensed Consolidated Financial Statements for the quarter ended March 31, 2013.Future asset retirements could have a material impact on the Condensed Consolidated Financial Statements in the periods such items occur.


Adjusted EBITDA:
We believe that Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, other non-cash items, and adjustments as defined in the Amended 20102013 Credit Agreement) is a meaningful measure of park-level operating profitability because we use it for measuring returns on capital investments, evaluating potential acquisitions, determining awards under incentive compensation plans, and calculating compliance with certain loan covenants. Adjusted EBITDA is provided in the discussion of results of operations that follows as a supplemental measure of our operating results and is not intended to be a substitute for operating income, net income or cash flows from operating activities as defined under generally accepted accounting principles. In addition, Adjusted EBITDA may not be comparable to similarly titled measures of other companies.

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The table below sets forth a reconciliation of Adjusted EBITDA to net income for the three-, nine- and twelve-month periods ended September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012.
 
  Three months ended Nine months ended Twelve months ended
  9/30/2012 9/25/2011 9/30/2012 9/25/2011 9/30/2012 9/25/2011
  (13 weeks) (13 weeks) (39 weeks) (38 weeks) (53 weeks) (52 weeks)
  (In thousands )
Net income $140,688
 $152,218
 $111,595
 $71,574
 $110,767
 $8,116
Interest expense 26,863
 41,353
 83,902
 124,650
 116,437
 171,049
Interest income (13) (32) (31) (120) (68) (194)
Provision (benefit) for taxes 51,713
 37,844
 41,395
 21,773
 30,839
 (12,424)
Depreciation and amortization 60,747
 63,448
 113,156
 110,857
 128,136
 126,382
EBITDA 279,998
 294,831
 350,017
 328,734
 386,111
 292,929
Net effect of swaps (175) (3,962) (1,318) (3,507) (10,930) 1,772
Unrealized foreign currency (gain) loss (14,737) 17,314
 (14,108) 13,224
 (17,502) 549
Non-cash equity expense (income) 362
 —
 2,630
 (228) 2,619
 (269)
Loss on impairment of goodwill and other intangibles —
 —
 —
 —
 —
 903
Loss on impairment/retirement of fixed assets, net 25,000
 880
 24,230
 1,076
 25,719
 63,509
Terminated merger costs —
 —
 —
 80
 150
 (79)
Refinancing costs —
 (195) —
 955
 —
 955
Other non-recurring items (as defined) 1,861
 836
 4,026
 6,107
 7,445
 6,107
Adjusted EBITDA (1)
 $292,309
 $309,704
 $365,477
 $346,441
 $393,612
 $366,376
             
(1) As permitted by and defined in the Amended 2010 Credit Agreement        
  Three months ended Twelve months ended
  3/31/2013 3/25/2012 3/31/2013 3/25/2012
  (13 weeks) (12 weeks) (53 weeks) (52 weeks)
  (In thousands)
Net income (loss) $(109,126) $(65,415) $58,145
 $84,807
Interest expense 25,763
 26,803
 109,579
 142,876
Interest income (40) (16) (92) (92)
Provision (benefit) for taxes (35,659) (21,539) 17,638
 5,937
Depreciation and amortization 4,786
 4,079
 127,013
 125,892
EBITDA (114,276) (56,088) 312,283
 359,420
Loss on early extinguishment of debt 34,573
 —
 34,573
 —
Net effect of swaps 9,211
 (970) 8,689
 (15,976)
Unrealized foreign currency (gain) loss 8,881
 (8,249) 7,949
 8,502
Non-cash equity expense 2,933
 1,700
 4,498
 1,689
Loss on impairment/retirement of fixed assets, net 600
 92
 30,844
 11,251
(Gain) on sale of other assets —
 —
 (6,625) —
Terminated merger costs —
 —
 —
 230
Refinancing costs —
 —
 —
 (34)
Other non-recurring items (as defined) 805
 1,721
 3,264
 6,823
Adjusted EBITDA (1)
 $(57,273) $(61,794) $395,475
 $371,905
         
(1) As permitted by and defined in the 2013 Credit Agreement    

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Results of Operations:

Our results of operations for the nine, three and twelve months ended September 30, 2012 and September 25, 2011 are not directly comparable as the current nine- and twelve month periods include an additional week of operations due to the timing of the fiscal third quarter close, and as the current three-month period includes fewer operating days due to the timing of the fiscal second and third quarter closes. Since a large portion of the variances in our statements of operations is due to the difference in the number of operating days in the current fiscal periods, we will also compare current operating results to the prior year period ended October 2, 2011.

Immaterial Restatement -

We have made two separate corrections relating to our use of the composite depreciation methodmethod.

The first correction, which impacts the Balance Sheet at March 25, 2012 and the Statement of Operations and Other Comprehensive Income for the group3 and 12 month periods ended March 25, 2012, related to a misapplication of assets acquired as a whole in 1983, as well as for groups of assets in each subsequent business acquisition.the composite depreciation method. Upon the normal retirement of an asset within a composite group, our practice generally hashad been to extend the depreciable life of that composite group beyond its original estimated useful life. In conjunction with the preparation of our financial statements for the three months ended July 1,in 2012, wemanagement determined that this methodology was not appropriate. As a result, we revised the useful lives of our composite groups to their original estimated useful life (ascribed upon acquisition) and corrected previously computed depreciation expense (and accumulated depreciation).

The second correction, which impacts the Balance Sheet at March 25, 2012 and the Statement of Operations and Other Comprehensive Income for the 12 month period ended March 25, 2012, reflects a subsequent determination that a disposition from our composite group of assets was considered to be unusual. In certain situations under the composite method, disposals are considered unusual and, accordingly, losses are not included in the composite depreciation pool but are rather charged immediately to expense. In 2013, the Partnership's initial determination of whether a specific asset retired under the composite method of depreciation in 2011 was normal was challenged by the SEC Staff. We evaluated the amount and nature of these adjustments andultimately concluded that theysuch disposition was unusual and that a $8.8 millioncharge be reflected in the 2011 financial statements.

First Quarter -

Operating results for the first quarter historically include less than 5% of our full-year revenues and attendance. The results include normal off-season operating, maintenance and administrative expenses at our ten seasonal amusement parks and four outdoor water parks, as well as daily operations at Knott's Berry Farm, which is open year-round, and Castaway Bay, which is generally open daily from Memorial Day to Labor Day plus a limited daily schedule for the balance of the year.
The following table presents key financial information for the three months ended March 31, 2013 and March 25, 2012:
  Three months ended Three months ended Increase (Decrease)
  3/31/2013 3/25/2012 $ %
  (13 weeks) (12 weeks)    
    (As restated)    
  (Amounts in thousands)
Net revenues $41,799
 $28,198
 $13,601
 48.2 %
Operating costs and expenses 102,733
 93,356
 9,377
 10.0 %
Depreciation and amortization 4,786
 4,079
 707
 17.3 %
Loss on impairment / retirement of fixed assets 600
 92
 508
 N/M
Operating loss $(66,320) $(69,329) $3,009
 (4.3)%
         
Other Data:        
Adjusted EBITDA $(57,273) $(61,794) $4,521
 (7.3)%

For the quarter ended March 31, 2013, net revenues increased to $41.8 million from $28.2 million for the first quarter of 2012. The increase between periods was primarily due to the strong first-quarter performance in both attendance and per-capita spending at Knott's Berry Farm, our only year-round property, compared with the first quarter a year ago, as well as an extra week of operations due to the earlier timing of Easter in 2013 compared to 2012. At the end of the first quarter, only five of our 15 properties were not materialin operation. The other parks, including our larger parks, Cedar Point and Kings Island located in Ohio and Canada's Wonderland in Toronto, were in the final stages of preparing to eitheropen for the 2013 operating season.

Operating costs and expenses for the quarter increased $9.3 million to $102.7 million from $93.4 million in 2012 and were in line with expectations. Operating results for the first quarter include normal off-season operating, maintenance and administrative

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expenses at our prior annualseasonal amusement and water parks, and daily operations at Knott’s Berry Farm and Castaway Bay. The increase in first-quarter costs reflects a $5.4 million increase in operating expenses and a $2.3 million increase in selling, general and administrative ("SG&A") expenses. The cost of food, merchandise and games revenues for the period increased slightly due to sales volume increases at Knott's Berry Farm in the first quarter of 2013. The $5.4 million increase in operating expenses was due primarily to the extra week of operations in the first quarter of 2013 compared with 2012. For the quarter, labor costs increased $3.8 million, maintenance expense increased $2.2 million and operating supplies increased $0.9 million. These increases in operating costs were somewhat offset by a reduction in insurance expense due to a prior-year, non-recurring public liability claim at one of our parks. The $2.3 million increase in SG&A expenses was due primarily to increases in first-quarter advertising fees and full-time labor costs, largely related to full staffing levels.

Interest expense for the first quarter of 2013 was $25.8 million, representing a $1.0 million decrease compared to the first quarter of 2012. The decrease in interest expense was primarily due to the settlement of our Canadian swap in the first quarter of 2012.

During the first quarter of 2013, the net effect of our swaps decreased $10.2 million to a non-cash charge to earnings of $9.2 million, reflecting the regularly scheduled amortization of amounts in AOCI related to interest rate swaps, the write off of amounts in AOCI related to de-designated interest rate swaps, as well as gains from marking the ineffective and de-designated swaps to market. During the first quarter of 2013 we also recognized a $9.0 million charge to earnings for unrealized/realized foreign currency gains and losses, $8.9 million of which represents an unrealized foreign currency loss on the U.S.-dollar denominated debt held at our Canadian property. Due to our March 2013 refinancing, loan fees related to our 2010 and 2011 financings were written off, resulting in a $34.6 million charge to earnings in the period.

During the quarter, a benefit for taxes of $35.7 million was recorded to account for publicly traded partnership (PTP) taxes and the tax attributes of our corporate subsidiaries, compared to a benefit for taxes of $21.5 million in the same period a year ago. Actual cash taxes paid or quarterly financial statements. Nonetheless, the historical financial statement amounts included in this filing have been corrected for this error. We expect to likewise correct previously presented historical financial statementspayable are estimated to be included in future filings, including the annual financial statements to be included in our Annual Report on Form 10-Kbetween $14-$17 million for the 2013 calendar year.

After interest expense and the provision for taxes, net loss for the quarter totaled $109.1 million, or $1.95 per diluted limited partner unit, compared with net loss of $65.4 million, or $1.18 per diluted limited partner unit, for the first quarter a year ending December 31, 2012.ago. The larger net loss for the period is due to the loss on early debt extinguishment and a change in the unrealized/realized loss on foreign currency exchange, offset somewhat by the increased first-quarter revenues.


NineTwelve Months Ended September 30, 2012March 31, 2013 -

The fiscal nine-monthtwelve-month period ended September 30, 2012,March 31, 2013, consisted of a 39-week53-week period and included a total of 2,178 operating days compared with 3852 weeks and 2,148 operating days for the fiscal nine-monthtwelve-month period ended SeptemberMarch 25, 2011.2012. Operating days were virtually identical, as the current period had only one additional operating day.

The following table presents key financial information for the ninetwelve months ended September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012:
  Nine months ended Nine months ended Increase (Decrease)
  9/30/2012 9/25/2011 $ %
  (39 weeks) (38 weeks)    
  (Amounts in thousands except per capita spending)
         
Net revenues $939,249
 $883,627
 $55,622
 6.3 %
Operating costs and expenses 580,246
 541,665
 38,581
 7.1 %
Depreciation and amortization 113,156
 110,857
 2,299
 2.1 %
Loss on impairment / retirement of fixed assets, net 24,230
 1,076
 23,154
 N/M
Operating income $221,617
 $230,029
 $(8,412) (3.7)%
N/M - Not meaningful        
Other Data:        
Adjusted EBITDA $365,477
 $346,441
 $19,036
 5.5 %
Adjusted EBITDA margin 38.9% 39.2% $—
 (0.3)%
Attendance 20,689
 20,114
 575
 2.9 %
Per capita spending $41.78
 $40.15
 $1.63
 4.1 %
Out-of-park revenues $99,526
 $97,622
 $1,904
 2.0 %
  Twelve months ended Twelve months ended Increase (Decrease)
  3/31/2013 3/25/2012 $ %
  (53 weeks) (52 weeks)    
    (As restated)    
  (Amounts in thousands)
Net revenues $1,082,055
 $1,029,801
 $52,254
 5.1%
Operating costs and expenses 694,139
 666,535
 27,604
 4.1%
Depreciation and amortization 127,013
 125,892
 1,121
 0.9%
(Gain) on sale of other assets (6,625) —
 (6,625) N/M
Loss on impairment/retirement of fixed assets 30,844
 11,251
 19,593
 174.1%
Operating income $236,684
 $226,123
 $10,561
 4.7%
N/M - Not meaningful        
Other Data:        
Adjusted EBITDA $395,475
 $371,905
 $23,570
 6.3%
Adjusted EBITDA margin 36.5% 36.1% —
 0.4%


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Net revenues totaled $1,082.1 millionfor the ninetwelve months ended September 30, 2012March 31, 2013, increasing $52.3 million, from $1,029.8 million increased $55.6 million to $939.2 million from $883.6 million duringfor the ninetrailing twelve months ended SeptemberMarch 25, 20112012. The increase in revenues reflects an increase of 575,000 visits, or 3%, in combined attendanceRevenues for the nine-monthtwelve-month period ended September 30, 2012 when compared withincreased 5% on the nine-month period ended September 25, 2011. The increase in revenues also reflects a 4%, or $1.63, increase in averagestrength of higher attendance and in-park guest per capita spending. In-park guest per capita spending represents the amount spent per attendee to gain admission to a park, plus all amounts spent while inside the park gates. The increase in per capita spending was largely due to the successful introduction of new premium benefit offerings and the positive impact of new customer messaging and dynamic pricing initiatives. Attendance increased year-over-year on virtually the same number of operating days as our season pass sales and visits increased during the same nine-month period and a 2%, or $1.9 million, increase incomparable periods.

Meanwhile, out-of-park revenues. Out-of-park revenues, includewhich represents the sale of hotel rooms, food, merchandise and other complementary activities located outside of the park gates, as well as e-commerce transaction fees. In-park guest per capita spending representsincreased slightly in the average amount spent per attendee to gain admission to a park

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plus all amounts spent while inside the park gates. Revenuescomparable periods. The increase in net revenues for the first ninetwelve months of the yearended March 31, 2013 also reflectreflects the negative impact of currency exchange rates and the weakening U.S. dollar on our Canadian operations ($4.5(approximately $4.5 million) during the period.

For the nine-month period ended September 30, 2012, operatingOperating costs and expenses increased 7%$27.6 million, or 4%, or $38.5to $694.1 million to $580.2 million from $541.7versus $666.5 million for 2012 and were in line with expectations. The increase in costs and expenses was the nine-month period ended September 25, 2011, the net result of a $3.9$4.0 million increase in cost of goods sold, a $29.3$19.8 million increase in operating expenses, and a $5.4 million$3.9 increase in selling, generalSG&A costs. The 4% increase in cost of goods sold is consistent with anticipated cost increases associated with our efforts to improve the quality of food and other product offerings at our parks. Operating expenses increased due to several factors, including higher employment-related costs, higher operating supply costs, and higher self-insurance expenses. Employment-related costs increased approximately $12.6 million due to normal merit increases, increases in health-related benefit costs, additional staffing levels associated with new premium benefit offerings and other initiatives aimed at improving the overall guest experience, and non-recurring severance payments. Operating supplies and expenses increased approximately $5.3 million due primarily to initiatives to expand or enhance live entertainment at the parks, as well as incremental costs associated with our e-commerce platform and higher attendance. These increases in operating costs were somewhat offset by a reduction in insurance expense due to a prior-year (first quarter of 2012), non-recurring public liability claim at one of our parks.

The increase in SG&A costs was due to an increase in employment-related costs ($4.5 million), operating supplies ($3.8 million), and agency advertising fees ($2.7 million), offset by decreases in professional and administrative costs ("SG&A")($5.9 million). DepreciationThe increase in employment costs was primarily the result of higher wages and amortization expense for the period increased $2.3 millionbenefits due to normal merit increases and full-staffing levels. Increases in operating supplies and advertising fees were due to the earlier timing of Easter, as well as incremental costs to support operating initiatives including general infrastructure improvements. Professional and administrative fees decreased primarily due to a reduction in litigation expenses and costs for SEC compliance matters related to Special Meeting requests. The overall increase in capital spending when compared withcosts and expenses also reflects the prior year. The positive impact of exchange rates on our Canadian operations ($1.2 million) during the period.

Loss on impairment/retirement of fixed assets, reported fornet, during the nine-month period totaled $30.8 million, which reflects a non-cash charge to earnings of $25.0 million for the partial impairment of operating and non-operating fixed assets at Wildwater Kingdom netalong with losses on other retirements. During the twelve-month period ended March 31, 2013, two non-core assets were sold at gains totaling $6.6 million. During the twelve-month period ended March 25, 2012, a charge of an $0.8$11.3 million gain fromfor the sale of a non-operating asset at one of our properties. After depreciation, amortization, loss on impairment / retirement of fixed assets was recorded which includes the retirement of the asset as described in Note 11 to the financial statements.

Depreciation and amortization expense for the period increased $1.1 million compared with the prior period due primarily to an increase in capital expenditures for the 2012 season. After depreciation and amortization, as well as impairment charges and all other non-cash costs, operating income for the current period decreased $8.4increased $10.6 million to $221.6$236.7 million through the first nine months of 2012 from operating income of $230.0 million through the first nine months of 2011.$226.1 million.

Interest expense for the first three quarters of 2012 was $83.9twelve months ended March 31, 2013 decreased $33.3 million a decrease of $40.7to $109.6 million, from $142.9 million for the first three quarters of 2011.same twelve-month period a year ago. The reduction in interest expense iswas primarily attributable to an approximate 300 basis point (bps) decline in our effective interest rate, the result of lower fixed rates on London InterBank Offered Rate (LIBOR) within our interest-rate swap contracts. TheAdditionally during the current period, $25.0 million of term debt principal payments were made, reducing our average fixed LIBOR rate in our swap agreements declined from 5.62% in 2011 to 2.48% in 2012.debt outstanding.

ForDuring the current period, the net effect of our interest rate swaps decreased $2.2was recorded as a charge to earnings of $8.7 million between years, resulting incompared to a non-cash benefit to earnings of $1.3$16.0 million for the first nine months of 2012, as compared with a $3.5 million non-cash benefit to earnings for the nine-month period in 2011.prior period. The difference reflects the regularly scheduled amortization of amounts in Accumulated other comprehensive income ("AOCI")AOCI related to the swaps and the write off of AOCI amounts related to de-designated interest rate swaps, which were offset by gains from marking the ineffective and de-designated swaps to market and foreign currency gains related to the U.S.-dollar denominated Canadian term loan in the current period. During the current year-to-date period, we also recognized a $13.9$8.2 million net benefitcharge to earnings for unrealized/realized foreign currency gains,losses, which included a $14.1$7.9 million unrealized foreign currency gainloss on the U.S.-dollar denominated debt held at our Canadian property. Due to our March 2013 refinancing, loan fees that were paid as part

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of our 2010 and 2011 financings were written off, resulting in a $34.6 million non-cash charge to earnings recorded in "Loss on early debt extinguishment" on the consolidated statement of operations.

During the first fiscal nine months of 2012, aA provision for taxes of $41.4$17.6 million was recorded to accountin the period for publicly traded partnership (“PTP”) taxes and the tax attributes of our corporate subsidiaries.subsidiaries and publicly traded partnership (PTP) taxes. This compares with a $21.8 million provision for taxes of $5.9 million in period ended March 25, 2012 for the first fiscal nine monthstax attributes of 2011. The year-over-year variation in the tax provision is due primarily to an increase in the income subject to tax. Actual cash taxes paid or payable for the 2012 calendar year are estimated to be between $11our corporate subsidiaries and $13 million. The Partnership also expects to receive a $10.4 million refund of prior year taxes paid resulting from the carry back of the loss recognized from the settlement of a derivative contract.PTP taxes.

After interest expense and the benefitprovision for taxes, net income for the nine months ended September 30, 2012period totaled $111.6$58.1 million, or $2.00$1.04 per diluted limited partner unit, compared with net income of $71.6$84.8 million, or $1.28$1.52 per unit, for the nine months ended September 25, 2011.a year ago.

It is important to note that the current nine-month results benefited from an additional week, or 30 more operating days, due to the timing of the third quarter fiscal close. Comparing both 2012 and 2011 on a 39-week basis, net revenues would have been up $41.1 million, or 5%, on increases in both attendance and in-park guest per capita spending. On a comparable basis, attendance would have increased 228,000 visits, primarily due to an increase in season pass attendance, and in-park per capita spending would have increased $1.67, or 4%, primarily due to new premium benefit offerings and the positive impact of new customer messaging and dynamic pricing. Over that same comparable basis, out-of-park revenues would have decreased by approximately $0.3 million, or less than 1%.

Operating costs and expenses on a comparable 39-week basis would have increased approximately $27.9 million, or 5%, due to an increase of $2.9 million, or 3%, in cost of goods sold, an increase in operating expenses of $21.9 million, or 6%, and an increase of $3.1 million, or 3%, in SG&A costs. The overall increase in costs and expenses also reflects the positive impact of exchange rates on our Canadian operations (approximately $1.6 million) during the nine-month period ended September 30, 2012.

The 3% increase in cost of goods sold is consistent with anticipated cost increases associated with our efforts to improve the quality of food and other product offerings at the parks in 2012. Operating expenses in the 39-week period increased due to several factors, including higher employment-related costs, higher maintenance and operating supply costs, and higher self-insurance expenses. Employment-related costs increased approximately $11.0 million due to normal merit increases, increases in health-related benefit costs, additional staffing levels associated with new premium benefit offerings and other initiatives aimed at improving the overall guest experience, and non-recurring severance payments. Due in part to mild weather, we were able to accelerate off-season maintenance projects into the first half of the year, resulting in year-over-year maintenance expense increasing by approximately $4.4 million. Operating supplies and expenses increased approximately $4.0 million due primarily to initiatives

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to expand or enhance live entertainment at the parks, as well as incremental costs associated with our new e-commerce platform. During the first nine months, public liability and workers compensation expense increased $2.1 million due to claim settlements and an increase in our reserves based on management's estimates of future claims.

SG&A expense for the comparable 39-week period increased approximately $3.1 million compared to same period in 2011 due to an increase in operating supplies of $4.7 million, an increase in advertising costs of $1.5 million, and an increase in employee related costs of $2.9 million. The operating supplies and advertising increases were due to incremental costs to support 2012 operating initiatives including general infrastructure improvements. These increases in expense were offset somewhat by a reduction in litigation expenses and costs for SEC compliance matters related to Special Meeting requests in 2011.

For the fiscal nine-month period ended September 30, 2012,We believe Adjusted EBITDA (as defined in the Amended 2010 Credit Agreement), which we believe is a meaningful measure of our park-level operating results (for additional information regarding Adjusted EBITDA, including how we define and use Adjusted EBITDA, as well as a reconciliation from net income, see Note 6 in Item 6, “Selected Financial Data,” on pages 15-16). For the twelve-month period ended March 31, 2013, Adjusted EBITDA increased $23.6 million, or 6%, to $365.5 million compared with $346.4 million$395.5 million. Over this same period, our Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) increased 40 bps to 36.5% from 36.1% for the fiscal nine-monthtwelve-month period ended SeptemberMarch 25, 2011. This2012. The increase was due in part to the extra week in the current fiscal nine-month period. On a same-week basis, Adjusted EBITDA for the nine-month period would have still been up approximately $15.2 million, or 4%, between years,was primarily due to anthe increase in revenues resulting from the successful introduction of our new premium benefit offerings and dynamic pricing initiatives, as well as the successful expansion of our season pass base. These revenue gains were offset somewhat by an increase in operating costs in the period. For additional information regarding Adjusted EBITDA, including how we define Adjusted EBITDA, why we believe it provides useful information, and for a reconciliation to net income, see pages 33-34.

Third Quarter -

The fiscal three-month period ended September 30, 2012, consisted of a 13-week period and included a total of 1,177 operating days compared with 13 weeks and 1,253 operating days for the fiscal three-month period ended September 25, 2011. The variance in days is due to a shift in the operating calendar.

The following table presents key financial information for the three months ended September 30, 2012 and September 25, 2011:
  Three months ended Three months ended Increase (Decrease)
  9/30/2012 9/25/2011 $ %
  (13 weeks) (13 weeks)    
  (Amounts in thousands)
Net revenues $553,445
 $572,268
 $(18,823) (3.3)%
Operating costs and expenses 263,657
 262,188
 1,469
 0.6 %
Depreciation and amortization 60,747
 63,448
 (2,701) (4.3)%
Loss on impairment / retirement of fixed assets 25,000
 880
 24,120
 N/M
Operating income $204,041
 $245,752
 $(41,711) (17.0)%
N/M - Not meaningful        
Other Data:        
Adjusted EBITDA $292,309
 $309,704
 $(17,395) (5.6)%
Adjusted EBITDA margin 52.8% 54.1% —
 (1.3)%
Attendance 11,960
 12,933
 (973) (7.5)%
Per capita spending $42.90
 $40.84
 $2.06
 5.0 %
Out-of-park revenues $54,260
 $58,879
 $(4,619) (7.8)%

For the quarter ended September 30, 2012, net revenues decreased 3%, or $18.8 million, to $553.5 million from $572.3 million in 2011. This decrease reflects a 5% increase in average in-park per capita spending, offset by an 8% decrease in combined attendance (973,000 visits), and an 8% ($4.6 million) decrease in out-of-park revenues. The decreases in net revenues and attendance was largely attributable to the decrease in operating days in the quarter due to the way the fiscal calendar fell in 2012 compared with 2011. In-park per capita spending increased primarily due to new premium benefit offerings and the positive impact of new customer messaging and dynamic pricing. Out-of-park revenues decreased due to soft results in accommodations being somewhat offset by fees generated from our new e-commerce initiatives. The decrease in revenues for the third quarter of 2012 also reflects the negative impact of exchange rates on our Canadian operations ($2.4 million) during the period.


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Operating costs and expenses for the quarter increased less than 1%, or $1.5 million, to $263.7 million from $262.2 million in the third quarter of 2011, the net result of a $1.4 million decrease in cost of goods sold, a $1.9 million increase in operating expenses and a $1.0 million increase in SG&A costs. Operating cost and expense variances between years were also affected by the fewer number of operating days in the current fiscal quarter, as discussed above. Depreciation and amortization expense for the quarter decreased $2.7 million due primarily to the reduction in operating days in the period, on which depreciation expense is based. During the current quarter, we recognized a non-cash charge to earnings of $25.0 million for the partial impairment of operating and non-operating fixed assets at Wildwater Kingdom.

Interest expense for the third quarter of 2012 was $26.9 million, representing an $14.5 million decrease from the interest expense for the third quarter of 2011. As mentioned in the nine-month discussion above, interest expense decreased primarily due to an approximate 300 bps decline in our effective interest rate. The decline in the effective interest rate is primarily due to lower fixed rates of LIBOR in debt associated derivative contracts, which declined from 5.62% in 2011 to 2.48% in 2012.

The net effect of our swaps during the third quarter was a non-cash benefit to earnings of $0.2 million, representing a decrease of $3.8 million from the prior year. This non-cash benefit reflects the regularly scheduled amortization of amounts in AOCI related to the swaps. During the 2012 third quarter, we also recognized a $15.0 million net benefit to earnings for unrealized/realized foreign currency gains, $14.7 million of which represents an unrealized foreign currency gain on the U.S.-dollar denominated debt held at our Canadian property.

During the quarter, a provision for taxes of $51.7 million was recorded to account for PTP taxes and the tax attributes of our corporate subsidiaries, compared to a provision for taxes of $37.8 million in the same period a year ago. The variation in the tax provision recorded between periods is due primarily to the increase in income subject to tax. After interest expense and the provision for taxes, net income for the quarter totaled $140.7 million, or $2.51 per diluted limited partner unit, compared with net income of $152.2 million, or $2.73 per unit, for the third quarter a year ago.

It is important to note that the current three-month results were negatively impacted by 76 less operating days, due to the timing of the second and third quarter fiscal closes. Comparing the third quarters of 2012 and 2011 on a comparable operating-day basis, net revenues would have been up $20.8 million, or 4%, on an increase in average in-park guest per capita spending offset by a slight decrease in attendance and a 3% decrease in out-of-park revenues.

Operating costs and expenses on a comparable operating-day basis would have increased approximately $12.4 million, or 5%, on a $2.1 million increase in cost of goods sold, an $8.4 million increase in operating expenses, and $1.9 million increase in SG&A costs. The overall increase in costs and expenses also reflects the positive impact of exchange rates on our Canadian operations (approximately $0.6 million) during the third quarter. The increase in cost of goods sold is consistent with anticipated cost increases associated with our efforts to improve the quality of food and other product offerings at the parks in 2012. Consistent with our nine-month discussion above, operating expenses in the third quarter increased as a result of higher employment-related costs, higher maintenance and operating supply costs, and higher self-insurance expenses. The increase in SG&A expense for the quarter reflects an increase in operating supplies associated with the new e-commerce initiative and general park infrastructure improvements, offset slightly by a reduction in litigation expenses and costs for SEC compliance matters related to Special Meeting requests in the third quarter of 2011.

For the current quarter, Adjusted EBITDA decreased to $292.3 million from $309.7 million for the fiscal third quarter of 2011. The $17.4 million decrease in Adjusted EBITDA was due to the shift in operating days during the quarter. On a same week basis, Adjusted EBITDA would have increased $11.3 million due to incremental revenues resulting from the introduction of new premium benefit offerings, which contributed to increased average guest per capita spending, as well as an increase in attendance in the quarter. Partially offsetting these gains on a same week basis were higher park-level operating costs during the period related to park pre-opening and off-season maintenance projects and increases in costs to support 2012 initiatives, including a new e-commerce platform and infrastructure improvements. For additional information regarding Adjusted EBITDA, including how we define Adjusted EBITDA, why we believe it provides useful information, and for a reconciliation to net income, see pages 33-34.










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Twelve Months Ended September 30, 2012 -

The fiscal twelve-month period ended September 30, 2012, consisted of a 53-week period and included a total of 2,416 operating days compared with 52 weeks and 2,381 operating days for the fiscal twelve-month period ended September 25, 2011.

The following table presents key financial information for the twelve months ended September 30, 2012 and September 25, 2011:
  Twelve months ended Twelve months ended Increase (Decrease)
  9/30/2012 9/25/2011 $ %
  (53 weeks) (52 weeks)    
  (Amounts in thousands)
Net revenues $1,084,094
 $1,013,316
 $70,778
 7.0%
Operating costs and expenses 701,915
 650,925
 50,990
 7.8%
Depreciation and amortization 128,136
 126,382
 1,754
 1.4%
Loss on impairment of goodwill and other intangibles —
 903
 (903) N/M
Loss on impairment/retirement of fixed assets 25,719
 63,509
 (37,790) N/M
Operating income $228,324
 $171,597
 $56,727
 33.1%
N/M - Not meaningful        
Other Data:        
Adjusted EBITDA $393,612
 $366,376
 $27,236
 7.4%
Adjusted EBITDA margin 36.3% 36.2% —
 0.2%
Attendance 23,961
 23,135
 826
 3.6%
Per capita spending $41.44
 $39.91
 $1.53
 3.8%
Out-of-park revenues $119,460
 $114,258
 5,202
 4.6%

Net revenues totaled $1,084.1 million for the twelve months ended September 30, 2012, increasing $70.8 million, from $1,013.3 million for the trailing twelve months ended September 25, 2011. The increase in revenues was due to an increase in attendance of 826,000 visits, or 4%, an increase in average in-park per capita spending of $1.53, or 4%, and an increase in out-of-park revenues of $5.2 million, or 5%. The attendance increase was due to an increase in season pass visitation as well as the effect of the extra operating days in the period. The increase in average in-park guest per capita spending is primarily due to new premium benefit offerings and the positive impact from new customer messaging and dynamic pricing. Out-of-park revenues increased due to our hotel properties and due to an increase in fees generated by our new e-commerce initiatives. The increase in revenues was also positively affected by the additional operating days in the current fiscal period.

When comparing the two twelve-month periods, operating costs and expenses increased $51.0 million, or 8%, to $701.9 million in 2012 from $650.9 million in 2011. The increase in operating costs and expenses was the net result of a $5.2 million increase in cost of goods sold, a $33.2 million increase in operating expenses and an increase of $12.6 million in selling, general and administrative costs. The increase in operating expenses is primarily attributable to higher employment related expenses of $15 million, $6 million of higher maintenance costs, $1 million in higher insurance costs, and $5 million of higher operating supply costs. The increase in wages is largely due to increased seasonal labor hours as a result of expanded operating hours at several parks, additional attractions and guest services, and the overall effect of increased attendance. The increase in insurance costs was primarily the result of claim settlements and increases in our reserves based on future estimated claim liabilities. As discussed in the nine- and three-month sections, maintenance costs increased primarily due to the earlier timing of planned off-season projects, as well as an increase in the number of projects designed to add to the guest experience. The increase in operating supply costs relates primarily to an increase in attendance over the past year, as well as incremental costs associated with the new e-commerce platform. The increase in SG&A costs includes $5 million in costs largely related to the launching of several new revenue initiatives for the 2012 season, as well as a $3 million increase in advertising expense as we transitioned to a new advertising agency for 2012. Employment related expenses increased $5 million primarily due to the receipt of a non-recurring payroll tax credit of $2.5 million recorded in the fourth quarter of 2010, as well as an increase in retirement expenses and non-recurring severance payments in the current twelve-month period. The overall increase in costs and expenses also reflects the positive impact of exchange rates on our Canadian operations (approximately $1.6 million) during the twelve-month period ended September 30, 2012.

Depreciation and amortization expense for the trailing-twelve-month periods increased $1.8 million between years due to the increase in capital spending during the current-year period compared with the prior year. During the twelve months ended September 30, 2012, we recognized $0.7 million in non-cash charges for the retirement of assets in the normal course of business. Additionally, we recorded a non-cash charge of $25.0 million for the partial impairment of operating and non-operating fixed

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assets at Wildwater Kingdom during the third quarter in 2012. This compares to a non-cash charges recognized during the twelve-month period ended September 25, 2011 of $62.0 million at California's Great America for the partial impairment of its fixed assets and $1.5 million for asset retirements across all properties. Additionally, a non-cash charge of $0.9 million was recorded during the fourth quarter of 2010 for the partial impairment of trade-names originally recorded at the time of the PPI acquisition. It is important to note that each of our parks produces positive cash flow, and that trade-name write-downs and fixed asset impairment losses do not affect cash, Adjusted EBITDA or liquidity.

After depreciation, amortization, loss on impairment of the trade-names, loss on impairment / retirement of fixed assets, and all other non-cash costs, operating income for the twelve months ended September 30, 2012 increased $56.7 million to $228.3 million compared with $171.6 million for the same period a year ago.

Interest expense for the twelve month period ended September 30, 2012 decreased $54.6 million to $116.4 million from $171.0 million for the prior twelve month period ended September 25, 2011. As mentioned in the nine-month discussion above, interest expense decreased primarily due to an approximate 300 bps decline in our effective interest rate. The decline in the effective interest rate is primarily due to lower fixed rates of LIBOR in debt associated derivative contracts, which declined from 5.62% in 2011 to 2.48% in 2012.

The net effect of our swaps during the period was a non-cash benefit to earnings of $10.9 million, representing an increase of $12.7 million from the same period ended September 25, 2011. This non-cash benefit reflects gains from marking the ineffective and de-designated swaps to market, offset somewhat by the regularly scheduled amortization of amounts in AOCI related to the swaps and foreign currency losses related to the U.S.-dollar denominated Canadian term loan in the current twelve month period. During the current twelve-month period, we also recognized a $18.7 million net benefit to earnings for unrealized/realized foreign currency gains and losses, $17.5 million of which represents an unrealized foreign currency gain on the U.S.-dollar denominated debt held at our Canadian property.

A provision for taxes of $30.8 million was recorded to account for PTP taxes and the tax attributes of our corporate subsidiaries during the twelve-month period ended September 30, 2012, compared with a net benefit for taxes of $12.4 million during the same twelve-month period a year ago. The variation in the recorded tax provision between periods is due to the higher income subject to tax for the twelve-month period ending September 30, 2012 and the tax benefit of the impairment charge recorded in the previous twelve-month period.

After interest expense and the provision for taxes, net income for the twelve months ended September 30, 2012 was $110.8 million, or $1.98 per diluted limited partner unit, compared with net income of $8.1 million, or $0.15 per diluted limited partner unit, for the twelve months ended September 25, 2011.

It is important to note that due to the timing of the third quarter fiscal close results for the twelve-month period ended September 30, 2012 benefited from an additional week (53 weeks) compared to the twelve-month period ended September 25, 2011 (52 weeks). Comparing the twelve-month periods for both 2012 and 2011 on a 53-week basis, net revenues would have been up $56.2 million, or 5%, on increases in attendance, in-park guest per capita spending and out-of-park revenues. On a comparable 53-week basis, attendance would have increased 479,000 visits, due to an increase in season pass attendance, and in-park per capita spending would have increased $1.56, or 4%, primarily due to new premium benefit offerings and the positive impact of new customer messaging and dynamic pricing. Over that same comparable basis, out-of-park revenues would have increased by approximately $3.5 million, or 3%.

On a comparable 53-week basis, operating costs and expenses would have increased approximately $40.3 million, or 6%, on a $4.2 million increase in cost of goods sold, an $25.8 million increase in operating expenses, and $10.4 million increase in SG&A costs. The overall increase in costs and expenses also reflects the favorable impact of exchange rates on our Canadian operations (approximately $1.6 million) during the period. The increase in cost of goods sold is consistent with anticipated cost increases associated with our efforts to improve the quality of food and other product offerings at the parks in 2012. Consistent with our nine- and three-month discussions above, operating expenses for the twelve-month period increased as a result of higher employment-related costs, higher maintenance and operating supply costs, and higher self-insurance expenses. The higher employment-related costs reflect normal merit increases, increases in health-related benefit costs, an overall increase in seasonal labor hours as a result of expanded operating hours at several parks, additional attractions and guest services, the overall effect of increased attendance, and non-recurring severance payments. Employment related costs also increased as result of the non-recurring payroll tax credit of $2.5 million recorded in the fourth quarter of 2010. The higher maintenance costs in the current-year twelve-month period relate primarily to the earlier timing of planned off-season projects, which was possible as a result of the mild early-season weather in 2012. The increase in operating supplies was driven by higher attendance and new initiatives to expand or enhance live entertainment at the parks, as well as incremental costs associated with our new e-commerce platform. The increase in public liability and workers compensation expense was the result of a claim settlement in the first quarter of 2012

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and increases in our reserves based on management's estimates of future claims. The higher SG&A costs reflect incremental costs associated with the launching of several new revenue initiatives for the 2012 season, including the new e-commerce platform, general park infrastructure improvements, and an increase in advertising expenses as we transitioned to a new advertising agency for 2012. These increases in SG&A costs were somewhat offset by a reduction in litigation expenses and costs for SEC compliance matters related to Special Meeting requests in 2011.

For the twelve-month period ended September 30, 2012, Adjusted EBITDA increased to $393.6 million compared with $366.4 million for the twelve months ended September 25, 2011, while our Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) increased slightly to 36.3% from 36.2% a year ago. A portion of this increase in Adjusted EBITDA was due to the extra week in the current fiscal twelve-month period. On a same-week basis, Adjusted EBITDA would have been up $23.4 million, or 6%, year over year, due to revenue growth driven by increased attendance and the strong 2011 fourth quarter operating performance. These gains were offset somewhat by incremental operating costs associated with the higher attendance and new operating initiatives for 2012. For the comparable twelve-month periods, our Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) would have increased 30 bps to 36.3% from 36.0% last year. For additional information regarding Adjusted EBITDA, including how we define Adjusted EBITDA, why we believe it provides useful information, and for a reconciliation to net income, see pages 33-34.
October 2012 -

Based on preliminary results through the end of October, revenues for the first ten months of the year increased approximately $37 million to $1,036 million from $999 million for the same period a year ago. The revenue increase is the result of a 4% increase in average in-park guest per capita spending to $42.00 and attendance levels that were comparable with last year's record results (22.7 million visits). Out-of-park revenues of approximately $108 million through October were also comparable with this time last year.

Liquidity and Capital Resources:
With respect to both liquidity and cash flow, we ended the thirdfirst quarter of 20122013 in sound condition. The negative working capital ratio (current assetsliabilities divided by current liabilities)assets) of 1.01.4 at September 30, 2012March 31, 2013 reflects the impact of our seasonal business. Cash, receivables and inventories are at normal seasonal levels and credit facilities are in place to fund current liabilities.

In July 2010, we issued $405 million of 9.125% senior unsecured notes, maturing in 2018, in a private placement, including $5.6 million of Original Issue Discount (OID) to yield 9.375%. Concurrently with this offering, we entered into a new $1,435 million credit agreement (the "2010 Credit Agreement"), which included a $1,175 million senior secured term loan facility and a $260 million senior secured revolving credit facility. The net proceeds from the offering of the notes, along with borrowings under the 2010 Credit Agreement, were used to repay in full all amounts outstanding under our previous credit facilities.

In February 2011, we amended the 2010 Credit Agreement (as so amended, the "Amended 2010 Credit Agreement") and extended the maturity date of the U.S. term loan portion of the credit facilities by one year. Under the Amended 2010 Credit Agreement, the extended U.S. term loan iswas scheduled to mature in December of 2017 and bearsbore interest at a rate of LIBOR plus 300 bps, with a LIBOR floor of 100 bps.
The Amended 2010 Credit Agreement also includesincluded a $260 million revolving credit facility. Under the agreement, the Canadian portion of the revolving credit facility has a limit of $15 million. U.S. denominated loans made under the revolving credit facility bear interest at a rate of LIBOR plus 400 bps (with no LIBOR floor). Canadian denominated loans made under the Canadian portion of the facility also bear interest at a rate of LIBOR plus 400 bps (with no LIBOR floor). The revolving credit facility, which matureswas scheduled to mature in July of 2015, also providesprovided for the issuance of documentary and standby letters of credit.

In May 2012, the Partnership prepaidMarch 2013,we issued $16500 million of long-term debt to meet its obligation5.25% senior unsecured notes, maturing in 2021, in a private placement, with no OID. Concurrently with this offering, we entered into a new $885 million credit agreement (the "2013 Credit Agreement"), which included a $630 million senior secured term loan facility and a $255 million senior secured revolving credit facility. The terms of the senior secured term loan facility include a maturity date of March 15, 2020 and an interest rate of LIBOR plus 250 bps with a LIBOR floor of 75 bps. The term loan amortizes at $6.3 million annually. The net proceeds from the notes and borrowings under the Excess Cash Flow ("ECF") provision2013 Credit Agreement were used to repay in full all amounts outstanding under the previous credit facilities. The facilities provided under the 2013 Credit Agreement are collateralized by substantially all of the assets of the Partnership.

Terms of the 2013 Credit Agreement. AsAgreement include a resultrevolving credit facility of this prepayment, as well as additional optional long-term debt prepayments made in August 2011 and September 2012a combined $255 million. Under the 2013 Credit Agreement, the Canadian portion of the revolving credit facility has a limit of $1815 million. U.S. denominated and Canadian denominated loans made under the revolving credit facility bear interest at a rate of LIBOR plus 225 bps (with no LIBOR floor). The revolving credit facility is scheduled to mature in March 2018 and also provides for the issuance of documentary and standby letters of credit. The 2013 Credit Agreement requires the Partnership to pay a commitment fee of $9 million50, respectively, bps per annum on the Company has no scheduled term-debt principal payments untilunused portion of the first quarter of 2015.credit facilities.
At the end of the quarter, we had a total of $1,131.1$630.0 million of variable-rate term debt (before giving consideration to fixed-rate interest rate swaps), $400.7$901.3 million of fixed-rate debt (including OID), no$96.0 million outstanding borrowings under our revolving

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credit facility, and cash on hand of $96.1$10.0 million. After letters of credit, which totaled $16.5$16.4 million at September 30, 2012March 31, 2013, we had $243.5$142.6 million of available borrowings under the revolving credit facility under the Amended 20102013 Credit Agreement.

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Our $405 million of senior unsecured notes require semi-annual interest payments in February and August, with the principal due in full on August 1, 2018. The notes may be redeemed, in whole or in part, at any time prior to August 1, 2014 at a price equal to 100% of the principal amount of the notes redeemed plus a “make-whole” premium together with accrued and unpaid interest, if any, to the redemption date. Thereafter, the notes may be redeemed, in whole or in part, at various prices depending on the date redeemed. Prior to August 1, 2013, up to 35% of the notes may be redeemed with the net cash proceeds of certain equity offerings at 109.125%. Our $500 million of senior unsecured notes pay interest semi-annually in March and September, with the principal due in full on March 15, 2021. The notes may be redeemed, in whole or in part, at any time prior to March 15, 2016 at a price equal to 100% of the principal amount of the notes redeemed plus a “make-whole” premium together with accrued and unpaid interest, if any, to the redemption date. Thereafter, the notes may be redeemed, in whole or in part, at various prices depending on the date redeemed. Prior to March 15, 2016, up to 35% of the notes may be redeemed with the net cash proceeds of certain equity offerings at 105.25%.
In order to maintain fixed interest costs on a portion of our domestic term debt, in September 2010 we entered into several interest rateforward-starting swap agreements ("September 2010 swaps") to effectively convert a total of $600$600 million of variable-rate debt to fixed rates beginning in October 2011. As a result of the February 2011 amendment to our credit agreement,the 2010 Credit Agreement, the LIBOR floor on the term loan portion of ourits credit facilities decreased to 100 bps from 150 bps, causing a mismatch in critical terms of the September 2010 swaps and the underlying debt. Because of the mismatch of critical terms, we determined the September 2010 swaps, which were originally designated as cash flow hedges, were no longer highly effective, resulting in the de-designation of the September 2010 swaps as of the end of February 2011. As a result of this ineffectiveness, gains of $7.2 million recorded in AOCI through the date of de-designation are being amortized through December 2015.
In order to monetize the difference in the LIBOR floors, in March 2011, we entered into several additional forward-starting basis-rate swap agreements ("March 2011 swaps") that, when combined with the September 2010 swaps, effectively converted $600$600 million of variable-rate debt to fixed rates beginning in October 2011. The September 2010 swaps and the March 2011 swaps, were jointly designated as cash flow hedges, maturing in December 2015 and had fixed LIBOR at a weighted average rate of 2.46%. For the period that the September 2010 swaps were de-designated, their fair value decreased by $3.3 million, the offset of which have beenwas recognized as a direct charge to earnings and recorded to “Net effect of swaps” on the consolidated statement of operations along with the regular amortization of “Other comprehensive income (loss)” balances related to these swaps. No other ineffectiveness related to these swaps was recorded in any period presented.
In May 2011, we entered into four additional forward-starting basis-rate swap agreements ("May 2011 swaps") that effectively converted another $200 million of variable-rate debt to fixed rates beginning in October 2011. These swaps, which were designated as cash flow hedges, mature in December 2015 and fixed LIBOR at a weighted average rate of 2.54%.
As a result of the 2013 Credit Agreement, the previously described swaps were de-designated as the spreads of the 2013 Credit Agreement decreased to 75 bps from 100 bps in the Amended 2010 Credit Agreement. The May 2011 swaps remain de-designated as the amount of variable rate debt decreased to $630 million, and accordingly, the May 2011 swaps are now over hedged. On March 4, 2013, we entered into several forward-starting swap agreements ("March 2013 swaps") that were not designated as a cash flow hedge on that date. On March 6, 2013, the March 2013 swaps were combined with the September 2010 swaps and the March 2011 swaps, and designated as cash flow hedges, effectively converting $600 million of variable-rate debt to fixed rates. The September 2010 swaps, the March 2011 swaps, and the March 2013 swaps were jointly designated as cash flow hedges, mature in December 2015 and fix LIBOR at a weighted average rate of 2.46%.
In May 2011, we entered into four additional forward-starting basis-rate swap agreements ("May 2011 swaps") that effectively convert another $200 million of variable-rate debt to fixed rates beginning in October 2011. These swaps, which have been designated as cash flow hedges, mature in December 2015 and fix LIBOR at a weighted average rate of 2.54%2.331%. TheAt the time of the de-designation, the fair market value of all $800the September 2010 swaps, March 2011 swaps, and March 2013 swaps was $23.8 million, which will be amortized out of forward-starting swap agreements atAOCI into expense in "Net effect of swaps" in the unaudited condensed consolidated statements of operations and comprehensive incomethrough December 2015. At the time of the de-designation, the fair market value of the May 2011 swaps was $7.8 million and was immediately recognized into expense in "Net effect of swaps" in the unaudited condensed consolidated statements of operations.
At March 31, 2013, the fair market value of the September 30, 20122010 swaps, the March 2011 swaps and the March 2013 swaps was a liability of $34.723.4 million, which was recorded in "Derivative Liability"“Derivative Liability” on the condensed consolidated balance sheet. The May 2011 swaps had a fair market value of $7.6 million as of March 31, 2013 and was recorded in “Derivative Liability” on the condensed consolidated balance sheet.


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The following table presents our September 2010 swaps, March 2011 swaps, and May 2011 swaps, and March 2013 swaps which became effective on October 1, 2011 and mature December 15, 2015, along with their notional amounts and their effective fixed interest rates.
($'s in thousands)Forward-Starting Interest Rate Swaps
 Notional Amounts LIBOR Rate
 $200,000
 2.40%
 75,000
 2.43%
 50,000
 2.42%
 150,000
 2.55%
 50,000
 2.42%
 50,000
 2.55%
 25,000
 2.43%
 50,000
 2.54%
 30,000
 2.54%
 70,000
 2.54%
 50,000
 2.54%
Total $'s / Average Rate$800,000
 2.48%
In 2006, we entered into several fixed-rate interest rate swap agreements totaling $1.0 billion. The weighted average fixed-LIBOR rate on these interest rate swaps, which matured on October 1, 2011, was 5.6%. Based upon our scheduled quarterly regression analysis testing of the effectiveness for the accounting treatment of these swaps, as well as changes in the forward interest rate yield curves used in that testing, the swaps were deemed to be ineffective beginning in October 2009 and continued to be deemed ineffective through their maturity. This resulted in the swaps not qualifying for hedge accounting during the fourth quarter of 2009 and through 2010 and the first three quarters of 2011.
In 2007, we entered into two cross-currency swap agreements, which matured in February 2012 and effectively converted $268.7 million of term debt at the time, and the associated interest payments, from U.S. dollar denominated debt at a rate of LIBOR plus

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200 bps to 6.3% fixed-rate Canadian dollar denominated debt. As a result of paying down the underlying Canadian term debt with net proceeds from the sale of surplus land near Canada’s Wonderland in August 2009, the notional amounts of the underlying debt and the cross-currency swaps no longer matched. Because of the mismatch of the notional amounts, we determined the swaps were no longer highly effective going forward, resulting in the de-designation of the swaps as of the end of August 2009.
Based on the change in currency exchange rates from the time we originally entered into the cross-currency swap agreements in 2007, the termination liability of the swaps had increased steadily over time. In order to protect ourselves from further downside risk to the swaps' termination value, in May 2011 we entered into several foreign currency swap agreements to fix the exchange rate on 50% of the liability. In July 2011, we fixed the exchange rate on another 25% of the swap liability, leaving only 25% exposed to further fluctuations in currency exchange rates. In February 2012, these swap agreements were settled for $50.5 million.
In addition to other covenants and provisions, including those discussed below, the Amended 2010 Credit Agreement contains an initial three-year requirement (from July 2010) that at least 50% of our aggregate term debt and senior notes be subject to either a fixed interest rate or interest rate protection. As of September 30, 2012, we were in compliance with this requirement.
The following table presents fixed-rate swaps that matured on October 1, 2011. The table also presents our cross-currency swaps that matured on February 15, 2012 and their notional amounts and interest rates as of their maturity date.
($'s in thousands)Interest Rate Swaps Cross-currency Swaps
 Notional Amounts LIBOR Rate Notional Amounts Interest Rate
 $200,000
 5.64% $255,000
 7.31%
 200,000
 5.64% 150
 9.50%
 200,000
 5.64%    
 200,000
 5.57%    
 100,000
 5.60%    
 100,000
 5.60%    
Total $'s / Average Rate$1,000,000
 5.62% $255,150
 7.31%
        
 Interest Rate Swaps
($'s in thousands)Derivatives designated as hedging instruments Derivatives not designated as hedging instruments
 Notional Amounts LIBOR Rate Notional Amounts LIBOR Rate
 $200,000
 2.27% 50,000
 2.54%
 75,000
 2.30% 30,000
 2.54%
 50,000
 2.29% 70,000
 2.54%
 150,000
 2.43% 50,000
 2.54%
 50,000
 2.29%    
 50,000
 2.47%    
 25,000
 2.30%    
Total $'s / Average Rate$600,000
 2.33% $200,000
 2.54%

The Amended 20102013 Credit Agreement requires us to maintain specified financial ratios, which if breached for any reason, including a decline in operating results due to economic or weather conditions, could result in an event of default under the agreement. The most critical of these ratios is the Consolidated Leverage Ratio, which is measured on a trailing-twelve-month quarterly basis. At the end of the thirdfirst quarter of 2012,2013, this ratio was set at 6.00x6.25x consolidated total debt (excluding the revolving debt)-to-consolidated EBITDA. The ratio will remain at that level through the end of the first quarter in 2014 and will decrease each second quarter beginning in the second quarter of 2014. Based on our trailing-twelve-month results ending September 30, 2012March 31, 2013, our Consolidated Leverage Ratio was 3.89x, providing $138.3148.2 million of EBITDA cushion on the ratio at the end of the thirdfirst quarter. We were in compliance with all other covenants under the Amended 20102013 Credit Agreement as of September 30, 2012March 31, 2013.
The Amended 20102013 Credit Agreement allows restricted payments of up to $20$60 million annually so long as no default or event of default has occurred and is continuing. These restricted payments are not subject to any specific covenants. In 2012, additionalAdditional restricted payments are allowed to be made based on an excess-cash-flow formula, should our pro-forma Consolidated Leverage Ratio be less than or equal to 4.50x,5.0x, measured on a trailing-twelve-month quarterly basis.
At March 31, 2013, the notes maturing in 2018 have more restrictive covenants than the 2021 notes. The terms of the indenture governing our 2018 notes permit us to make restricted payments of $20 million annually. Our ability to make additional restricted payments in 20122013 and beyond is permitted should our trailing-twelve-month Total-Indebtedness-to-Consolidated-Cash-Flow Ratio be less than or equal to 4.75x, measured on a quarterly basis.
In accordance with these debt provisions, on August 9, 2012,February 27, 2013, we announced the declaration of a distribution of $0.40$0.625 per limited partner unit, which was paid on September 15, 2012,March 25, 2013, and on November 6, 2012,May 8, 2013 we announced the declaration of a distribution of $0.40$0.625 per limited partner unit, payable DecemberJune 17, 2012, which will bring our total distributions paid in 2012 to $1.60 per limited partner unit.2013.
Existing credit facilities and cash flows from operations are expected to be sufficient to meet working capital needs, debt service, partnership distributions and planned capital expenditures for the foreseeable future.




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Off Balance Sheet Arrangements:
We had $16.5$16.4 million in letters of credit, which are primarily in place to backstop insurance arrangements, outstanding on our revolving credit facility as of September 30, 2012March 31, 2013. We have no other significant off-balance sheet financing arrangements.


Forward Looking Statements
Some of the statements contained in this report (including the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section) that are not historical in nature are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements as to our expectations, beliefs and strategies regarding the future. These forward-looking statements may involve risks and uncertainties that are difficult to predict, may be beyond our control and could cause actual results to differ materially from those described in such statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can

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give no assurance that such expectations will prove to be correct. Important factors, including those listed under Item 1A in the Company’s Annual Report on Form 10-K, could adversely affect our future financial performance and cause actual results to differ materially from our expectations.


ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to market risks from fluctuations in interest rates, and to a lesser extent on currency exchange rates on our operations in Canada and, from time to time, on imported rides and equipment. The objective of our financial risk management is to reduce the potential negative impact of interest rate and foreign currency exchange rate fluctuations to acceptable levels. We do not acquire market risk sensitive instruments for trading purposes.
We manage interest rate risk through the use of a combination of fixed-rate long-term debt, interest rate swaps that fix a portion of our variable-rate long-term debt, and variable-rate borrowings under our revolving credit facility. Translation exposures with regard to our Canadian operations are not hedged.
For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the change in fair value of the derivative instrument is reported as a component of “Other comprehensive income (loss)” and reclassified into earnings in the period during which the hedged transaction affects earnings. Changes in fair value of derivative instruments that do not qualify as effective hedging activities are reported as “Net effect of swaps” in the consolidated statement of operations. Additionally, the “Other comprehensive income (loss)” related to interest rate swaps that become ineffective is amortized over the remaining life of the interest rate swap, and reported as a component of “Net effect of swaps” in the consolidated statement of operations.
As of March 31, 2013, we had $901.3 million of fixed-rate senior unsecured notes and $630 million of variable-rate term debt. After considering the impact of interest rate swap agreements, approximately $1.2 billionvirtually all of our outstanding long-term debt represents fixed-rate debt and approximately $331.1 million represents variable-rate debt. Assuming an average balance on our revolving credit borrowings of approximately $61$50 million, a hypothetical 100 bps increase in 30-day LIBOR on our variable-rate debt, after the fixed-rate swap agreements, would lead to an increasea decrease of approximately $2.5$0.5 million in annual cash interest costs.
A uniform 10% strengthening of the U.S. dollar relative to the Canadian dollar would result in a $5.4$4.4 million decrease in annual operating income.

ITEM 4. CONTROLS AND PROCEDURES

(a)Evaluation of Disclosure Controls and Procedures - 
The Partnership maintains a system of controls and procedures designed to ensure that information required to be disclosed by the Partnership in its reports under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified by the Commission and that such information is accumulated and communicated to the Partnership’s management, including the Chief Executive Officer and the Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. As of September 30, 2012March 31, 2013, the PartnershipPartnership's management has evaluated the effectiveness of the design and operation of itsthe Partnership's disclosure controls and procedures under supervision of management, includingand with the participation of the Partnership's Chief Executive Officer and Chief Financial Officer. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Partnership's disclosure controls and procedures are effective.were effective as of March 31, 2013.
 






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(b)Changes in Internal Control Over Financial Reporting -
As disclosed in Amendment No. 2 to the Partnership's Form 10-K/A for the fiscal year ended December 31, 2012, in connection with restating the Partnership's consolidated financial statements therein, management identified a material weakness in internal control over financial reporting related to the Partnership's fixed assets, resulting in a conclusion that the Partnership's internal control over financial reporting was not effective as of December 31, 2012. Remediation of this material weakness in internal control over financial reporting was accomplished through the conversion of all composite assets to the unit method of depreciation as of January 1, 2013. The conversion to the unit method eliminates the concept of normal vs. unusual as any and all asset retirements with a remaining net book value will be reflected in the Consolidated Statements of Operations and Comprehensive Income.
There were no other changes in the Partnership’s internal controlscontrol over financial reporting in connection with its 2012that occurred during the fiscal quarter ended thirdMarch 31, 2013-quarter evaluation, or subsequent to such evaluation, that have materially affected, or are reasonably likely to materially affect, the Partnership’s internal control over financial reporting.


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PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Jacob T. Falfas vs. Cedar Fair, L.P.

On July 23, 2010, Jacob T. (Jack) Falfas, the former Chief Operating Officer, filed a demand for private arbitration as provided by his employment agreement. In that demand, Mr. Falfas disputed the Partnership's position that he had resigned in June 2010, alleging instead that his employment with the Partnership was terminated without cause. That dispute went to private arbitration, and on February 28, 2011, an arbitration panel ruled 2-to-1 in favor of Mr. Falfas finding that he did not resign but was terminated without cause. Rather than fashioning a remedy consistent with the employment agreement, the panel ruled that Mr. Falfas should be reinstated. The Partnership believed that the arbitrators exceeded their authority by creating a remedy not legally available to Mr. Falfas under his contract with Cedar Fair. On March 21, 2011, the Partnership filed an action  in Erie County Court of Common Pleas (Case No. 2011 CV 0217) seeking  to have the award modified or vacated. On March 22, 2011, Mr. Falfas commenced a related action in the Erie County Court of Common Pleas  (Case No. 2011 CV 0218) demanding enforcement of the arbitration ruling.  The two actions were combined into Case No. 2011 CV 0217, before Judge Roger E. Binette. On February 22, 2012 the Erie County Common Pleas Court issued a ruling partially vacating the arbitration award and declaring that Mr. Falfas was not entitled to reinstatement of his employment.  The ruling also provided that in accord with paragraph 2 of the arbitration award Mr. Falfas was entitled to certain back pay and other benefits under his 2007 Amended and Restated Employment Agreement as if the employment relationship had not been severed. In March of 2012 Mr. Falfas and the Company both filed appeals of the Court's ruling with the Ohio Sixth District Court of Appeals in Toledo, Ohio. The parties participated in mediation on May 7, 2012 at the direction ofOn April 19, 2013 the Court of Appeals.Appeals issued a ruling reversing the Erie County Common Pleas Court's  order regarding the reinstatement of Mr. Falfas' employment and  affirming the order regarding back pay and other benefits and remanding the case back to the Erie County Common Pleas Court for further proceedings.  The mediation did not result inCompany has until June 3, 2013 to file a settlement. As a resultnotice of appeal with the matter will now proceed through the normal appeal process which typically takes six to nine months to complete. Briefs have been filed and the parties are awaiting scheduling of oral argument.Ohio Supreme Court.  The Partnership believes the liability recorded as of September 30, 2012March 31, 2013 to be adequate and does not expect the arbitration ruling or the court order to materially affect its financial results in future periods.


ITEM 1A. RISK FACTORS
There have been no material changes to the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2011.2012.

ITEM 5. OTHER INFORMATION

TheOn May 8, 2013, the Partnership usesannounced that it had identified a historical classification error in the Partnership's initial determination of whether a specific asset retired under the composite method of depreciation methodwas normal or unusual. The error resulted in the overstatement of Income before taxes of $8.8 million for the groupperiod ended December 31, 2011.

Under the composite method of depreciation, no gain or loss is recognized on normal retirements of composite assets. Instead the net book value after salvage of a retired asset reduces accumulated depreciation for the composite group. Abnormal or unusual retirements of composite assets acquiredwould result in the recognition of a gain or loss. The error resulted in the Partnership's application of its qualitative policy used to determine whether an asset retirement is normal or unusual. The asset retirement being restated was originally classified as normal, thus reducing accumulated depreciation. Management identified that the Partnership had failed to consider whether the specific asset had a whole in 1983,substantial net book value and/or if the retirement caused a deviation from the estimated composite depreciation survivor curve as well as for groupsother minor qualitative issues.

The restatement amount of assets$8.8 million is recorded in each subsequent business acquisition. Upon the normalLoss on impairment / retirement of an asset within a composite group, the Partnership's practice generally has been to extend the depreciable life of that composite group beyond its original estimated useful life. In conjunction with the preparation of the Partnership's financial statements for the interim period ended July 1, 2012, management determined that this methodology was not appropriate. As a result, the Partnership revised the useful lives of its composite groups to their original estimated useful life (ascribed upon acquisition) and corrected previously computed depreciation expense (and accumulated depreciation). Management evaluated the amount and nature of these adjustments and concluded that they were not material to either the Partnership's prior annual or quarterly financial statements. Nonetheless, the historical financial statement amounts included in this filing have been corrected for this error. The Partnership expects to likewise correct previously presented historical financial statements to be included in future filings, including the annual financial statements to be includedfixed assets, net in the Partnership's Annual Report on Form 10-K for10-K/A filing to correct the year ending December 31, 2012.previous error.

ForAs disclosed in the year ended December 31, 2011Partnership's prior filings, the correctionPartnership had determined that it was preferable to change from the composite method of depreciation to the unit method of depreciation with the change effective January 1, 2013. The Partnership believes that pursuant to generally accepted accounting principles, changing from the composite method of depreciation to the unit method of depreciation is a change in accounting estimate that is effected by a change in accounting principle, which should be accounted for prospectively. The change to the unit method of depreciation eliminates the qualitative judgment needed to determine whether an asset retirement is normal or unusual, as the net book value of all retirements will decrease net income (loss) by $1.4 millionbe recorded in the Consolidated Statements of Operations and the provision (benefit) for taxes will decrease by $0.6 million.  For the 2010 annual financial statements, the correction will decrease net income (loss) by $1.5 million and the provision (benefit) for taxes will decrease by $0.6 million.  For the 2009 annual financial statements, the correction will decrease net income (loss) by $1.2 million and the provision (benefit) for taxes will decrease $0.4 million.  The balance sheet as of December 31, 2011 has already been corrected in this Form 10-Q.Comprehensive Income.



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ITEM 6. EXHIBITS
 
Exhibit (4.1)
Rights Agreement between Cedar Fair, L.P. and American Stock Transfer and Trust Co., LLC, dated April 5, 2010. Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on April 6, 2010.

Exhibit (4.2)
Indenture, by and among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and The Bank of New York Mellon, as trustee, dated as of July 29, 2010 (including form of 9.125% Senior Notes due 2018). Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (4.3)
Registration Rights Agreement, among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and J.P. Morgan Securities Inc., as representative of the initial purchasers named therein, dated July 29, 2010. Incorporated herein by reference to Exhibit 4.2 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (10.1)Cedar Fair, L.P. Amended and Restated Executive Severance Plan dated July 18, 2007. Incorporated herein by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q (File No. 001-09444) filed on August 3, 2007.
Exhibit (31.1)  Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (31.2)  Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (32)  Certifications Pursuant to 18 U.S.C. 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
  
Exhibit (101)  The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012March 31, 2013 formatted in Extensible Business Reporting Language (XBRL): (i) The Condensed Consolidated Statements of Income, (ii) the Condensed Consolidated Balance Sheets, (iii) The Condensed Consolidated Statements of Cash Flow, (iv) the Condensed Consolidated Statement of Equity and, (v) related notes
 

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
  CEDAR FAIR, L.P. 
  (Registrant) 
    
  By Cedar Fair Management, Inc. 
  General Partner 
   
Date:November 7, 2012May 10, 2013/s/ Matthew A. Ouimet
  Matthew A. Ouimet
  President and Chief Executive Officer
    
Date:November 7, 2012May 10, 2013/s/ Brian C. Witherow
  Brian C. Witherow
  Executive Vice President and
  Chief Financial Officer

 

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INDEX TO EXHIBITS
 
Exhibit (4.1)
Rights Agreement between Cedar Fair, L.P. and American Stock Transfer and Trust Co., LLC, dated April 5, 2010. Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on April 6, 2010.

Exhibit (4.2)
Indenture, by and among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and The Bank of New York Mellon, as trustee, dated as of July 29, 2010 (including form of 9.125% Senior Notes due 2018). Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (4.3)
Registration Rights Agreement, among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and J.P. Morgan Securities Inc., as representative of the initial purchasers named therein, dated July 29, 2010. Incorporated herein by reference to Exhibit 4.2 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (10.1)Cedar Fair, L.P. Amended and Restated Executive Severance Plan dated July 18, 2007. Incorporated herein by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q (File No. 001-09444) filed on August 3, 2007.
Exhibit (31.1)  Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (31.2)  Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (32)  Certifications Pursuant to 18 U.S.C. 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
  
Exhibit (101)  The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012March 31, 2013 formatted in Extensible Business Reporting Language (XBRL): (i) The Condensed Consolidated Statements of Income, (ii) the Condensed Consolidated Balance Sheets, (iii) The Condensed Consolidated Statements of Cash Flow, (iv) the Condensed Consolidated Statement of Equity and, (v) related notes
 

4845
s / Average Rate$1,000,000
 5.62% $255,150
 7.31%$600,000
 2.33% $200,000
 2.54%        

The Amended 20102013 Credit Agreement requires us to maintain specified financial ratios, which if breached for any reason, including a decline in operating results due to economic or weather conditions, could result in an event of default under the agreement. The most critical of these ratios is the Consolidated Leverage Ratio, which is measured on a trailing-twelve-month quarterly basis. At the end of the thirdfirst quarter of 2012,2013, this ratio was set at 6.00x6.25x consolidated total debt (excluding the revolving debt)-to-consolidated EBITDA. The ratio will remain at that level through the end of the first quarter in 2014 and will decrease each second quarter beginning in the second quarter of 2014. Based on our trailing-twelve-month results ending September 30, 2012March 31, 2013, our Consolidated Leverage Ratio was 3.89x, providing $138.3148.2 million of EBITDA cushion on the ratio at the end of the thirdfirst quarter. We were in compliance with all other covenants under the Amended 20102013 Credit Agreement as of September 30, 2012March 31, 2013.
The Amended 20102013 Credit Agreement allows restricted payments of up to $20$60 million annually so long as no default or event of default has occurred and is continuing. These restricted payments are not subject to any specific covenants. In 2012, additionalAdditional restricted payments are allowed to be made based on an excess-cash-flow formula, should our pro-forma Consolidated Leverage Ratio be less than or equal to 4.50x,5.0x, measured on a trailing-twelve-month quarterly basis.
At March 31, 2013, the notes maturing in 2018 have more restrictive covenants than the 2021 notes. The terms of the indenture governing our 2018 notes permit us to make restricted payments of $20 million annually. Our ability to make additional restricted payments in 20122013 and beyond is permitted should our trailing-twelve-month Total-Indebtedness-to-Consolidated-Cash-Flow Ratio be less than or equal to 4.75x, measured on a quarterly basis.
In accordance with these debt provisions, on August 9, 2012,February 27, 2013, we announced the declaration of a distribution of $0.40$0.625 per limited partner unit, which was paid on September 15, 2012,March 25, 2013, and on November 6, 2012,May 8, 2013 we announced the declaration of a distribution of $0.40$0.625 per limited partner unit, payable DecemberJune 17, 2012, which will bring our total distributions paid in 2012 to $1.60 per limited partner unit.2013.
Existing credit facilities and cash flows from operations are expected to be sufficient to meet working capital needs, debt service, partnership distributions and planned capital expenditures for the foreseeable future.




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Off Balance Sheet Arrangements:
We had $16.5$16.4 million in letters of credit, which are primarily in place to backstop insurance arrangements, outstanding on our revolving credit facility as of September 30, 2012March 31, 2013. We have no other significant off-balance sheet financing arrangements.


Forward Looking Statements
Some of the statements contained in this report (including the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section) that are not historical in nature are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements as to our expectations, beliefs and strategies regarding the future. These forward-looking statements may involve risks and uncertainties that are difficult to predict, may be beyond our control and could cause actual results to differ materially from those described in such statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can

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give no assurance that such expectations will prove to be correct. Important factors, including those listed under Item 1A in the Company’s Annual Report on Form 10-K, could adversely affect our future financial performance and cause actual results to differ materially from our expectations.


ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to market risks from fluctuations in interest rates, and to a lesser extent on currency exchange rates on our operations in Canada and, from time to time, on imported rides and equipment. The objective of our financial risk management is to reduce the potential negative impact of interest rate and foreign currency exchange rate fluctuations to acceptable levels. We do not acquire market risk sensitive instruments for trading purposes.
We manage interest rate risk through the use of a combination of fixed-rate long-term debt, interest rate swaps that fix a portion of our variable-rate long-term debt, and variable-rate borrowings under our revolving credit facility. Translation exposures with regard to our Canadian operations are not hedged.
For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the change in fair value of the derivative instrument is reported as a component of “Other comprehensive income (loss)” and reclassified into earnings in the period during which the hedged transaction affects earnings. Changes in fair value of derivative instruments that do not qualify as effective hedging activities are reported as “Net effect of swaps” in the consolidated statement of operations. Additionally, the “Other comprehensive income (loss)” related to interest rate swaps that become ineffective is amortized over the remaining life of the interest rate swap, and reported as a component of “Net effect of swaps” in the consolidated statement of operations.
As of March 31, 2013, we had $901.3 million of fixed-rate senior unsecured notes and $630 million of variable-rate term debt. After considering the impact of interest rate swap agreements, approximately $1.2 billionvirtually all of our outstanding long-term debt represents fixed-rate debt and approximately $331.1 million represents variable-rate debt. Assuming an average balance on our revolving credit borrowings of approximately $61$50 million, a hypothetical 100 bps increase in 30-day LIBOR on our variable-rate debt, after the fixed-rate swap agreements, would lead to an increasea decrease of approximately $2.5$0.5 million in annual cash interest costs.
A uniform 10% strengthening of the U.S. dollar relative to the Canadian dollar would result in a $5.4$4.4 million decrease in annual operating income.

ITEM 4. CONTROLS AND PROCEDURES

(a)Evaluation of Disclosure Controls and Procedures - 
The Partnership maintains a system of controls and procedures designed to ensure that information required to be disclosed by the Partnership in its reports under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified by the Commission and that such information is accumulated and communicated to the Partnership’s management, including the Chief Executive Officer and the Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. As of September 30, 2012March 31, 2013, the PartnershipPartnership's management has evaluated the effectiveness of the design and operation of itsthe Partnership's disclosure controls and procedures under supervision of management, includingand with the participation of the Partnership's Chief Executive Officer and Chief Financial Officer. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Partnership's disclosure controls and procedures are effective.were effective as of March 31, 2013.
 






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(b)Changes in Internal Control Over Financial Reporting -
As disclosed in Amendment No. 2 to the Partnership's Form 10-K/A for the fiscal year ended December 31, 2012, in connection with restating the Partnership's consolidated financial statements therein, management identified a material weakness in internal control over financial reporting related to the Partnership's fixed assets, resulting in a conclusion that the Partnership's internal control over financial reporting was not effective as of December 31, 2012. Remediation of this material weakness in internal control over financial reporting was accomplished through the conversion of all composite assets to the unit method of depreciation as of January 1, 2013. The conversion to the unit method eliminates the concept of normal vs. unusual as any and all asset retirements with a remaining net book value will be reflected in the Consolidated Statements of Operations and Comprehensive Income.
There were no other changes in the Partnership’s internal controlscontrol over financial reporting in connection with its 2012that occurred during the fiscal quarter ended thirdMarch 31, 2013-quarter evaluation, or subsequent to such evaluation, that have materially affected, or are reasonably likely to materially affect, the Partnership’s internal control over financial reporting.


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PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Jacob T. Falfas vs. Cedar Fair, L.P.

On July 23, 2010, Jacob T. (Jack) Falfas, the former Chief Operating Officer, filed a demand for private arbitration as provided by his employment agreement. In that demand, Mr. Falfas disputed the Partnership's position that he had resigned in June 2010, alleging instead that his employment with the Partnership was terminated without cause. That dispute went to private arbitration, and on February 28, 2011, an arbitration panel ruled 2-to-1 in favor of Mr. Falfas finding that he did not resign but was terminated without cause. Rather than fashioning a remedy consistent with the employment agreement, the panel ruled that Mr. Falfas should be reinstated. The Partnership believed that the arbitrators exceeded their authority by creating a remedy not legally available to Mr. Falfas under his contract with Cedar Fair. On March 21, 2011, the Partnership filed an action  in Erie County Court of Common Pleas (Case No. 2011 CV 0217) seeking  to have the award modified or vacated. On March 22, 2011, Mr. Falfas commenced a related action in the Erie County Court of Common Pleas  (Case No. 2011 CV 0218) demanding enforcement of the arbitration ruling.  The two actions were combined into Case No. 2011 CV 0217, before Judge Roger E. Binette. On February 22, 2012 the Erie County Common Pleas Court issued a ruling partially vacating the arbitration award and declaring that Mr. Falfas was not entitled to reinstatement of his employment.  The ruling also provided that in accord with paragraph 2 of the arbitration award Mr. Falfas was entitled to certain back pay and other benefits under his 2007 Amended and Restated Employment Agreement as if the employment relationship had not been severed. In March of 2012 Mr. Falfas and the Company both filed appeals of the Court's ruling with the Ohio Sixth District Court of Appeals in Toledo, Ohio. The parties participated in mediation on May 7, 2012 at the direction ofOn April 19, 2013 the Court of Appeals.Appeals issued a ruling reversing the Erie County Common Pleas Court's  order regarding the reinstatement of Mr. Falfas' employment and  affirming the order regarding back pay and other benefits and remanding the case back to the Erie County Common Pleas Court for further proceedings.  The mediation did not result inCompany has until June 3, 2013 to file a settlement. As a resultnotice of appeal with the matter will now proceed through the normal appeal process which typically takes six to nine months to complete. Briefs have been filed and the parties are awaiting scheduling of oral argument.Ohio Supreme Court.  The Partnership believes the liability recorded as of September 30, 2012March 31, 2013 to be adequate and does not expect the arbitration ruling or the court order to materially affect its financial results in future periods.


ITEM 1A. RISK FACTORS
There have been no material changes to the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2011.2012.

ITEM 5. OTHER INFORMATION

TheOn May 8, 2013, the Partnership usesannounced that it had identified a historical classification error in the Partnership's initial determination of whether a specific asset retired under the composite method of depreciation methodwas normal or unusual. The error resulted in the overstatement of Income before taxes of $8.8 million for the groupperiod ended December 31, 2011.

Under the composite method of depreciation, no gain or loss is recognized on normal retirements of composite assets. Instead the net book value after salvage of a retired asset reduces accumulated depreciation for the composite group. Abnormal or unusual retirements of composite assets acquiredwould result in the recognition of a gain or loss. The error resulted in the Partnership's application of its qualitative policy used to determine whether an asset retirement is normal or unusual. The asset retirement being restated was originally classified as normal, thus reducing accumulated depreciation. Management identified that the Partnership had failed to consider whether the specific asset had a whole in 1983,substantial net book value and/or if the retirement caused a deviation from the estimated composite depreciation survivor curve as well as for groupsother minor qualitative issues.

The restatement amount of assets$8.8 million is recorded in each subsequent business acquisition. Upon the normalLoss on impairment / retirement of an asset within a composite group, the Partnership's practice generally has been to extend the depreciable life of that composite group beyond its original estimated useful life. In conjunction with the preparation of the Partnership's financial statements for the interim period ended July 1, 2012, management determined that this methodology was not appropriate. As a result, the Partnership revised the useful lives of its composite groups to their original estimated useful life (ascribed upon acquisition) and corrected previously computed depreciation expense (and accumulated depreciation). Management evaluated the amount and nature of these adjustments and concluded that they were not material to either the Partnership's prior annual or quarterly financial statements. Nonetheless, the historical financial statement amounts included in this filing have been corrected for this error. The Partnership expects to likewise correct previously presented historical financial statements to be included in future filings, including the annual financial statements to be includedfixed assets, net in the Partnership's Annual Report on Form 10-K for10-K/A filing to correct the year ending December 31, 2012.previous error.

ForAs disclosed in the year ended December 31, 2011Partnership's prior filings, the correctionPartnership had determined that it was preferable to change from the composite method of depreciation to the unit method of depreciation with the change effective January 1, 2013. The Partnership believes that pursuant to generally accepted accounting principles, changing from the composite method of depreciation to the unit method of depreciation is a change in accounting estimate that is effected by a change in accounting principle, which should be accounted for prospectively. The change to the unit method of depreciation eliminates the qualitative judgment needed to determine whether an asset retirement is normal or unusual, as the net book value of all retirements will decrease net income (loss) by $1.4 millionbe recorded in the Consolidated Statements of Operations and the provision (benefit) for taxes will decrease by $0.6 million.  For the 2010 annual financial statements, the correction will decrease net income (loss) by $1.5 million and the provision (benefit) for taxes will decrease by $0.6 million.  For the 2009 annual financial statements, the correction will decrease net income (loss) by $1.2 million and the provision (benefit) for taxes will decrease $0.4 million.  The balance sheet as of December 31, 2011 has already been corrected in this Form 10-Q.Comprehensive Income.



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ITEM 6. EXHIBITS
 
Exhibit (4.1)
Rights Agreement between Cedar Fair, L.P. and American Stock Transfer and Trust Co., LLC, dated April 5, 2010. Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on April 6, 2010.

Exhibit (4.2)
Indenture, by and among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and The Bank of New York Mellon, as trustee, dated as of July 29, 2010 (including form of 9.125% Senior Notes due 2018). Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (4.3)
Registration Rights Agreement, among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and J.P. Morgan Securities Inc., as representative of the initial purchasers named therein, dated July 29, 2010. Incorporated herein by reference to Exhibit 4.2 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (10.1)Cedar Fair, L.P. Amended and Restated Executive Severance Plan dated July 18, 2007. Incorporated herein by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q (File No. 001-09444) filed on August 3, 2007.
Exhibit (31.1)  Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (31.2)  Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (32)  Certifications Pursuant to 18 U.S.C. 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
  
Exhibit (101)  The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012March 31, 2013 formatted in Extensible Business Reporting Language (XBRL): (i) The Condensed Consolidated Statements of Income, (ii) the Condensed Consolidated Balance Sheets, (iii) The Condensed Consolidated Statements of Cash Flow, (iv) the Condensed Consolidated Statement of Equity and, (v) related notes
 

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
  CEDAR FAIR, L.P. 
  (Registrant) 
    
  By Cedar Fair Management, Inc. 
  General Partner 
   
Date:November 7, 2012May 10, 2013/s/ Matthew A. Ouimet
  Matthew A. Ouimet
  President and Chief Executive Officer
    
Date:November 7, 2012May 10, 2013/s/ Brian C. Witherow
  Brian C. Witherow
  Executive Vice President and
  Chief Financial Officer

 

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INDEX TO EXHIBITS
 
Exhibit (4.1)
Rights Agreement between Cedar Fair, L.P. and American Stock Transfer and Trust Co., LLC, dated April 5, 2010. Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on April 6, 2010.

Exhibit (4.2)
Indenture, by and among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and The Bank of New York Mellon, as trustee, dated as of July 29, 2010 (including form of 9.125% Senior Notes due 2018). Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (4.3)
Registration Rights Agreement, among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and J.P. Morgan Securities Inc., as representative of the initial purchasers named therein, dated July 29, 2010. Incorporated herein by reference to Exhibit 4.2 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (10.1)Cedar Fair, L.P. Amended and Restated Executive Severance Plan dated July 18, 2007. Incorporated herein by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q (File No. 001-09444) filed on August 3, 2007.
Exhibit (31.1)  Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (31.2)  Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (32)  Certifications Pursuant to 18 U.S.C. 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
  
Exhibit (101)  The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012March 31, 2013 formatted in Extensible Business Reporting Language (XBRL): (i) The Condensed Consolidated Statements of Income, (ii) the Condensed Consolidated Balance Sheets, (iii) The Condensed Consolidated Statements of Cash Flow, (iv) the Condensed Consolidated Statement of Equity and, (v) related notes
 

4845
s in thousands)Interest Rate SwapsDerivatives designated as hedging instruments Derivatives not designated as hedging instruments Notional Amounts LIBOR RateNotional Amounts LIBOR Rate Notional Amounts LIBOR Rate $200,000
 2.40%$200,000
 2.27% 50,000
 2.54% 75,000
 2.43%75,000
 2.30% 30,000
 2.54% 50,000
 2.42%50,000
 2.29% 70,000
 2.54% 150,000
 2.55%150,000
 2.43% 50,000
 2.54% 50,000
 2.42%50,000
 2.29%     50,000
 2.55%50,000
 2.47%     25,000
 2.43%25,000
 2.30%     50,000
 2.54% 30,000
 2.54% 70,000
 2.54% 50,000
 2.54%Total
 
The following table presents our fixed-rate swaps, which matured in October 2011, and the cross-currency swap which matured in February 2012, along with their notional amounts and their fixed interest rates:
($'s in thousands)Interest Rate Swaps Cross-currency Swaps
 Notional Amounts LIBOR Rate Notional Amounts Implied Interest Rate
 $200,000
 5.64% $255,000
 7.31%
 200,000
 5.64% 150
 9.50%
 200,000
 5.64%    
 200,000
 5.57%    
 100,000
 5.60%    
 100,000
 5.60%    
Total $'s / Average Rate$1,000,000
 5.62% $255,150
 7.31%
        



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Effects of Derivative Instruments on Income (Loss) and Other Comprehensive Income (Loss) for the three-month periods ended September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012:
 
(In thousands): Amount of Gain (Loss) Recognized in  Accumulated OCI on Derivatives (Effective Portion) 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
Derivatives designated as
Cash Flow Hedging
Relationships
 Three months ended Three months ended   Three months ended Three months ended   Three months ended Three months ended
 9/30/12 9/25/11   9/30/12 9/25/11   9/30/12 9/25/11
Interest rate swaps $438
 $(17,085) Interest Expense $(2,990) $—
 Net effect of swaps $—
 $15,396
                 
(In thousands): Amount of Gain (Loss) Recognized in  Accumulated OCI on Derivatives (Effective Portion) 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
Derivatives designated as
Cash Flow Hedging
Relationships
 Three months ended Three months ended   Three months ended Three months ended   Three months ended Three months ended
 3/31/13 3/25/12   3/31/13 3/25/12   3/31/13 3/25/12
Interest rate swaps $2,266
 $120
 Interest Expense $(2,797) $(2,793) Net effect of swaps $435
 $—
                 

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(In thousands): 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
Derivatives not designated as Cash Flow
Hedging Relationships
   Three months ended Three months ended
   9/30/12 9/25/11
Cross-currency swaps (1)
 Net effect of swaps $—
 $13,622
Foreign currency swaps 
 Net effect of swaps —
 (13,210)
    $—
 $412
       
(In thousands): 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
Derivatives not designated as Cash Flow
Hedging Relationships
   Three months ended Three months ended
   3/31/13 3/25/12
Cross-currency swaps (1)
 Net effect of swaps $—
 $(4,999)
Foreign currency swaps 
 Net effect of swaps —
 6,278
Interest rate swaps (2)
 Net effect of swaps (1,471) —
    $(1,471) $1,279
       
(1)The cross-currency swaps became ineffective and were de-designated in August 2009.
(2)The May 2011 interest rate swaps were de-designated in March 2013.
During the quarter ended September 30, 2012March 31, 2013, in addition to the $1.0 million loss recognized in income on the ineffective portion of derivatives and on the derivatives not designated as cash flow hedges (as noted in the tables above), $0.27.8 million of incomeexpense related to the write off of OCI balances on our May 2011 swaps and $0.4 million of expense representing the regular amortization of amounts in AOCI was recorded in the condensed consolidated statements of operations for the quarter. The effect of this amortizationthese amounts resulted in a benefitcharge to earnings of $0.29.2 million recorded in “Net effect of swaps.”

For the three-month period ended SeptemberMarch 25, 20112012, in addition to the $15.81.3 million gain recognized in income on the ineffective portion of derivatives noted in the tabletables above, $11.20.5 million of expense representing the amortization of amounts in AOCI for the swaps and $0.60.2 million of foreign currency lossgain in the quarter related to the U.S. dollar denominated Canadian term loan were recorded in “Net effect of swaps” in the condensed consolidated statements of operations. The net effect of these amounts resulted in a benefit to earnings of $4.0 million recorded in “Net effect of swaps.”

Effects of Derivative Instruments on Income (Loss) and Other Comprehensive Income (Loss) for the nine-month periods ended September 30, 2012 and September 25, 2011: 
(In thousands): Amount of Gain (Loss) Recognized in  Accumulated OCI on Derivatives (Effective Portion) 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
Derivatives designated as
Cash Flow Hedging
Relationships
 Nine months ended Nine months ended   Nine months ended Nine months ended   Nine months ended Nine months ended
 9/30/12 9/25/11   9/30/12 9/25/11   9/30/12 9/25/11
Interest rate swaps $(2,308) $(36,788) Interest Expense $(9,004) $—
 Net effect of swaps $—
 $43,190
                 

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(In thousands): 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
Derivatives not designated as Cash Flow
Hedging Relationships
   Nine months ended Nine months ended
   9/30/12 9/25/11
Interest rate swaps (1)
 Net effect of swaps $—
 $(3,342)
Cross-currency swaps (2)
 Net effect of swaps (4,999) 15,582
Foreign currency swaps 
 Net effect of swaps 6,278
 (17,516)
    $1,279
 $(5,276)
       
(1)The September 2010 swaps became ineffective and were de-designated in February 2011.
(2)The cross-currency swaps became ineffective and were de-designated in August 2009.
For the nine-month period ended September 30, 2012, in addition to the $1.3 million of net gain recognized in income on the ineffective portion of derivatives and on the derivatives not designated as cash flow hedges (as noted in the tables above), $0.2 million of expense representing the regular amortization of amounts in AOCI for the swaps and $0.2 million of foreign currency gain in the period related to the U.S. dollar denominated Canadian term loan were recorded in the condensed consolidated statements of operations for the period. The net effect of these amounts resulted in a benefit to earnings for the period of $1.3 million recorded in “Net effect of swaps.”

For the nine-month period ended September 25, 2011, in addition to the $37.9 million gain recognized in income on the ineffective portion of derivatives noted in the table above, $33.9 million of expense representing the amortization of amounts in AOCI for the swaps and $0.5 million of foreign currency loss in the period related to the U.S. dollar denominated Canadian term loan were recorded in “Net effect of swaps” in the condensed consolidated statements of operations. The net effect of these amounts resulted in a benefit to earnings of $3.51.0 million recorded in “Net effect of swaps.”


Effects of Derivative Instruments on Income (Loss) and Other Comprehensive Income (Loss) for the twelve-month periods ended September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012:
(In thousands): 
Amount of Gain (Loss)
Recognized in Accumulated OCI on Derivatives
(Effective Portion)
 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
Derivatives designated as
Cash Flow Hedging
Relationships
 Twelve months ended Twelve months ended   Twelve months ended Twelve months ended   Twelve months ended Twelve months ended
 9/30/12 9/25/11   9/30/12 9/25/11   9/30/12 9/25/11
Interest rate swaps $(873) $(26,329) Interest Expense $(12,027) $—
 Net effect of swaps $4,797
 $54,613
                 
(In thousands): 
Amount of Gain (Loss)
Recognized in Accumulated OCI on Derivatives
(Effective Portion)
 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
Derivatives designated as
Cash Flow Hedging
Relationships
 Twelve months ended Twelve months ended   Twelve months ended Twelve months ended   Twelve months ended Twelve months ended
 3/31/13 3/25/12   3/31/13 3/25/12   3/31/13 3/25/12
Interest rate swaps $2,286
 $(36,088) Interest Expense $(12,031) $(5,816) Net effect of swaps $435
 $33,493
                 

(In thousands): 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
Derivatives not designated as Cash Flow Hedging
Relationships
   Twelve months ended Twelve months ended
   9/30/12 9/25/11
Interest rate swaps (1)
 Net effect of swaps $—
 $(3,342)
Cross-currency swaps (2)
 Net effect of swaps (4,483) 10,016
Foreign currency swaps Net effect of swaps 10,129
 (17,516)
    $5,646
 $(10,842)
       
(In thousands): 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
Derivatives not designated as Cash Flow Hedging
Relationships
   Twelve months ended Twelve months ended
   3/31/13 3/25/12
Cross-currency swaps (1)
 Net effect of swaps —
 12,911
Foreign currency swaps Net effect of swaps —
 (7,387)
Interest rate swaps (2)
 Net effect of swaps $(1,471) $—
    $(1,471) $5,524
       
(1)The September 2010 swaps became ineffective and were de-designated in February 2011.
(2)The cross-currency swaps became ineffective and were de-designated in August 2009.
(2)The May 2011 interest rate swaps were de-designated in March 2013.
In addition to the $10.41.0 million of gainloss recognized in income on the ineffective portion of derivatives and on the derivatives not designated as cash flow hedges (as noted in the tables above), $0.17.8 million of expense related to the write off of OCI balances on our May 2011 swaps and $192 thousand of income representing the amortization of amounts in AOCI for the swaps was recorded during the trailing twelve months ended March 31, 2013 in the condensed consolidated statements of operations. The net effect of these amounts resulted in expense for the trailing twelve month period of $8.7 million recorded in “Net effect of swaps.”

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For the twelve month period ending March 25, 2012, in addition to the $39.0 million of gain recognized in income on the ineffective portion of derivatives noted in the tables above, $22.7 million of expense representing the amortization of amounts in AOCI for the swaps and a $0.40.3 million foreign currency gainloss in the twelve month period related to the U.S. dollar denominated Canadian term loan was recorded during the trailing twelve months ended September 30,March 25, 2012 in the condensed consolidated statements of operations. The net effect of these amounts resulted in a benefit to earnings for the trailing twelve month period of $10.9 million recorded in “Net effect of swaps.”
For the twelve month period ending September 25, 2011, in addition to the $43.8 million of gain recognized in income on the ineffective portion of derivatives noted in the table above, $45.5 million of expense representing the amortization of amounts in AOCI for the swaps and a $0.1 million foreign currency loss in the twelve month period related to the U.S. dollar denominated Canadian term loan was recorded during the trailing twelve months ended September 25, 2011 in the condensed consolidated statements of operations. The net effect of these amounts resulted in a charge to earnings for the trailing twelve month period of $1.816.0 million recorded in “Net effect of swaps.”
The amounts reclassified from AOCI into income for the periods noted above are in large partprimarily the result of the Partnership’s initial three-year requirement to swap at least 75% of its aggregate term debt to fixed rates under the terms of the Amended 2010 Credit Agreement.
 
(7) Fair Value Measurements:
The FASB Accounting Standards Codification (ASC) relating to fair value measurements emphasizes that fair value is a market-based measurement that should be determined based on assumptions (inputs) that market participants would use in pricing an asset or liability. Inputs may be observable or unobservable, and valuation techniques used to measure fair value should maximize the use of relevant observable inputs and minimize the use of unobservable inputs. Accordingly, the FASB’s ASC establishes a hierarchal disclosure framework that ranks the quality and reliability of information used to determine fair values. The hierarchy is associated with the level of pricing observability utilized in measuring fair value and defines three levels of inputs to the fair value measurement process—quoted prices are the most reliable valuation inputs, whereas model values that include inputs based on unobservable data are the least reliable. Each fair value measurement must be assigned to a level corresponding to the lowest level input that is significant to the fair value measurement in its entirety.
The three broad levels of inputs defined by the fair value hierarchy are as follows:
 
Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
 
Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
 
Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement.
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

















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The table below presents the balances of assets and liabilities measured at fair value as of September 30, 2012March 31, 2013, December 31, 2011,2012, and SeptemberMarch 25, 20112012 on a recurring basis:
  Total Level 1 Level 2 Level 3
September 30, 2012        
(In thousands)        
Interest rate swap agreements (1)
 $(34,708) $—
 $(34,708) $—
Net derivative liability $(34,708) $—
 $(34,708) $—
         
December 31, 2011        
Interest rate swap agreements (1)
 $(32,400) $—
 $(32,400) $—
Cross-currency swap agreements (2)
 (37,617) —
 (37,617) —
Foreign currency swap agreements (2)
 (13,155) —
 (13,155) —
Net derivative liability $(83,172) $—
 $(83,172) $—
         
September 25, 2011        
Interest rate swap agreements (1)
 $(33,835) $—
 $(33,835) $—
Interest rate swap agreements (2)
 (4,797) —
 (4,797) —
Cross-currency swap agreements (2)
 (37,723) —
 (37,723) —
Foreign currency swap agreements (2)
 (16,846) —
 (16,846) —
Net derivative liability $(93,201) $—
 $(93,201) $—
  Total Level 1 Level 2 Level 3
March 31, 2013        
(In thousands)        
Interest rate swap agreements (1)
 $(23,388) $—
 $(23,388) $—
Interest rate swap agreements (2)
 (7,643) —
 (7,643) —
Net derivative liability $(31,031) $—
 $(31,031) $—
         
December 31, 2012        
Interest rate swap agreements (1)
 $(32,260) $—
 $(32,260) $—
Net derivative liability $(32,260) $—
 $(32,260) $—
         
March 25, 2012        
Interest rate swap agreements (1)
 $(32,280) $—
 $(32,280) $—
Net derivative liability $(32,280) $—
 $(32,280) $—
(1)IncludedDesignated as cash flow hedges and are included in “Derivative Liability” on the Unaudited Condensed Consolidated Balance Sheet
(2)IncludedNot designated as cash flow hedges and are included in "Current derivative liability""Derivative Liability" on the Unaudited Condensed Consolidated Balance Sheet
Fair values of the interest rate cross-currency and foreign currency swap agreements are determined using significant inputs, including the LIBOR and foreign currency forward curves, that are considered Level 2 observable market inputs. In addition, the Partnership considered the effect of its credit and non-performance risk on the fair values provided, and recognized an adjustment decreasing the net derivative liability by approximately $1.10.9 million as of September 30, 2012March 31, 2013.
There were no assets measured at fair value on a non-recurring basis at September 30, 2012March 31, 2013, December 31, 2011, or SeptemberMarch 25, 20112012, except for as described below.
At the end of the third quarter in 2012, the Partnership concluded based on operating results, as well as updated forecasts, and changes in market conditions, that a review of the carrying value of long-lived assets at Wildwater Kingdom was warranted. After performing its review, the Partnership determined that a portion of the park's fixed assets were impaired. Based on Level 3 unobservable valuation assumptions and other market inputs, the assets were marked to a fair value of $19.8 million, resulting in an impairment charge of $25.0 million during the quarter.
In 2010, the Partnership concluded based on operating results, as well as updated forecasts, that a review of the carrying value of long-lived assets at California's Great America was warranted. After performing its review, the Partnership determined that a portion of the park's fixed assets, the majority of which were originally recorded with the PPI acquisition, were impaired. As a result, it recognized $62.0 million of fixed-asset impairment during the fourth quarter of 2010.

After completing its 2010 annual review of indefinite-lived intangibles for impairment, the Partnership concluded that a portion of trade-names originally recorded with the PPI acquisition were impaired. As a result, the Partnership recognized approximately $0.9 million of trade-name impairment during the fourth quarter of 2010. A relief-from-royalty model is used to determine whether the fair value of trade-names exceeds their carrying amount. The fair value of the trade-names is determined as the present value of fees avoided by owning the respective trade-name.
The fair value of term debt at September 30, 2012March 31, 2013 was approximately $1,125.7637.1 million based on borrowing rates currently available to the Partnership on long-term debt with similar terms and average maturities. The fair value of the Partnership's notes at September 30, 2012March 31, 2013 was approximately $352.6950.1 million based on borrowing rates availablepublic trading levels as of that date to the Partnership on notes with similar terms and maturities.date. The fair value of the term debt was based on Level 2 inputs and the notes were based on Level 21 inputs.





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(8) Earnings per Unit:
Net income (loss) per limited partner unit is calculated based on the following unit amounts:
  Three months ended Nine months ended Twelve months ended
  9/30/2012 9/25/2011 9/30/2012 9/25/2011 9/30/2012 9/25/2011
  (In thousands except per unit amounts)
Basic weighted average units outstanding 55,611
 55,346
 55,473
 55,345
 55,440
 55,342
Effect of dilutive units:            
Unit options and restricted unit awards 45
 —
 42
 —
 31
 —
Phantom units 336
 482
 333
 502
 416
 544
Diluted weighted average units outstanding 55,992
 55,828
 55,848
 55,847
 55,887
 55,886
Net income (loss) per unit - basic $2.53
 $2.75
 $2.01
 $1.29
 $2.00
 $0.15
Net income (loss) per unit - diluted $2.51
 $2.73
 $2.00
 $1.28
 $1.98
 $0.15
             
  Three months ended Twelve months ended
  3/31/2013 3/25/2012 3/31/2013 3/25/2012
  (In thousands except per unit amounts)
Basic weighted average units outstanding 55,854
 55,378
 55,694
 55,353
Effect of dilutive units:        
Unit options and restricted unit awards —
 —
 63
 2
Phantom units —
 —
 299
 492
Diluted weighted average units outstanding 55,854
 55,378
 56,056
 55,847
Net income (loss) per unit - basic $(1.95) $(1.18) $1.04
 $1.53
Net income (loss) per unit - diluted $(1.95) $(1.18) $1.04
 $1.52
         
The effect of unit options on the three nine and twelve months ended September 30,March 31, 2013, had they not been out of the money or antidilutive, would have been zero and 16,000 units, respectively. The effect of out-of-the-money and/or antidilutive unit options on the three and twelve months ended March 25, 2012, had they not been out of the money or antidilutive, would have been 66,0002,000, 34,000and 36,000 units, respectively. The effect of out-of-the-money and/or antidilutive unit options on the three, nine and twelve months ended September 25, 2011, had they not been out of the money or antidilutive, would have been 57,000, 67,000 and 127,00047,000 units, respectively.
 
(9) Income and Partnership Taxes:
Under the applicable accounting rules, income taxes are recognized for the amount of taxes payable by the Partnership’s corporate subsidiaries for the current year and for the impact of deferred tax assets and liabilities, which represent future tax consequences of events that have been recognized differently in the financial statements than for tax purposes. The income tax provision (benefit) for interim periods is determined by applying an estimated annual effective tax rate to the quarterly income (loss) of the Partnership’s corporate subsidiaries. For 2012, the estimated annual effective rate includes the effect of an anticipated adjustment to the valuation allowance that relates to foreign tax credit carry-forwards arising from the corporate subsidiaries. The amount of this adjustment has a disproportionate impact on the annual effective tax rate that results in a significant variation in the customary relationship between the provision for taxes and income before taxes in interim periods. In addition to income taxes on its corporate subsidiaries, the Partnership pays a publicly traded partnership tax (PTP tax) on partnership-level gross income (net revenues less cost of food, merchandise and games). As such, the Partnership’s total provision (benefit) for taxes includes amounts for both the PTP tax and for income taxes on its corporate subsidiaries.
During the second quarterAs of 2012 the Partnership adjusted its deferred tax assets and liabilities to reflect the impact of changes to the enacted statutory tax rates in Canada and recorded a corresponding $1.8 million income tax provision.  During the first quarter of 20122013 the Partnership accruedhas recorded $1.01.1 million forof unrecognized tax benefits including interest and/or penalties related to state and local tax filing positions. The Partnership recognizes interest and/or penalties related to unrecognized tax benefits in the income tax provision. The Partnership does not anticipate that the balance of the unrecognized tax benefit will change significantly over the next 12 months.

(10) Contingencies:

The Partnership is a party to a number of lawsuits arising in the normal course of business. In the opinion of management, none of these matters is expected to have a material effect in the aggregate on the Partnership's financial statements.

(11) Immaterial Restatement:

We have made two separate corrections relating to our use of the composite depreciation method.

The Partnership usesfirst correction, which impacts the Balance Sheet at March 25, 2012 and the Statement of Operations and Other Comprehensive Income for the 3 and 12 month periods ended March 25, 2012, related to a misapplication of the composite depreciation method for the group of assets acquired as a whole in 1983, as well as for groups of assets in each subsequent business acquisition.method. Upon the normal retirement of an asset within a composite group, the Partnership'sour practice generally hashad been to extend the depreciable life of that composite group beyond its original estimated useful life. In conjunction with the preparation of the Partnership'sour financial statements for the three months ended July 1,in 2012, management determined that this methodology was not appropriate. As a result, the Partnershipwe revised the useful lives of itsour composite groups to their original estimated useful life (ascribed upon acquisition) and corrected previously computed depreciation expense (and accumulated depreciation). Management evaluated

The second correction, which impacts the amountBalance Sheet at March 25, 2012 and naturethe Statement of these adjustmentsOperations and concludedOther Comprehensive Income for the 12 month period ended March 25, 2012, reflects a subsequent determination that they werea disposition from our composite group of assets was considered to be unusual. In certain situations under the composite method, disposals are considered unusual and, accordingly, losses are not materialincluded in the composite depreciation pool but are rather charged immediately to eitherexpense. In 2013, the Partnership's prior annual or quarterly financial statements. Nonetheless,initial determination of whether a specific asset retired under the historical financial statement amounts includedcomposite method of depreciation in this filing have been corrected for this error. The Partnership expects to likewise correct previously presented2011 was normal was reviewed in connection with responding

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historical financial statements to an open SEC comment letter. We ultimately concluded that such disposition was unusual and that a $8.8 millioncharge should be included in future filings, including the annual financial statements to be includedreflected in the Partnership's Annual Report on Form 10-K for the year ending December 31, 2012.2011 financial statements.

The tables below detailreflect the effectsimpact on the financial statements of such depreciation adjustments (including the related deferred income tax impact)corrections as described above. The "As originally filed" amounts represent amounts as filed in the Partnership's 1st quarter 2012 Form 10-Q . The "As restated" amounts in all columns represent amounts after restatement for the first correction which was disclosed in the Partnership's 2nd quarter Form 10-Q and the second correction which was disclosed in the Partnership's 2012 Annual Report on previously presented historical financial statement amounts:Form 10-K/A filed on May 10, 2013.


Balance Sheets   
 12/31/2011 9/25/2011
Accumulated depreciation   
As originally filed$(1,044,589) $(1,044,353)
Correction(18,599) (18,252)
As restated$(1,063,188) $(1,062,605)
Total assets   
As originally filed$2,074,557
 $2,159,339
Correction(18,599) (18,252)
As restated$2,055,958
 $2,141,087
Deferred Tax Liability   
As originally filed$135,446
 $125,588
Correction(1,679) (1,615)
As restated$133,767
 $123,973
Limited Partners' Equity   
As originally filed$182,438
 $221,611
Correction(16,920) (16,637)
As restated$165,518
 $204,974
Balance Sheet 
(In thousands)3/25/2012
Accumulated depreciation 
As originally filed$(1,046,162)
Corrections(27,622)
As restated$(1,073,784)
Total assets 
As originally filed$2,113,126
Corrections(27,622)
As restated$2,085,504
Deferred Tax Liability 
As originally filed$135,746
Corrections(5,019)
As restated$130,727
Limited Partners' Equity 
As originally filed$96,417
Corrections(22,603)
As restated$73,814








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Statements of Operations and Other Comprehensive Income
  Three months ended Nine months ended Twelve months ended
  9/25/2011 9/25/2011 9/25/2011
Depreciation and amortization      
As originally filed $62,619
 $109,173
 $124,345
Correction 829
 1,684
 2,037
As restated $63,448
 $110,857
 $126,382
Income (loss) before tax      
As originally filed $190,891
 $95,031
 $(2,271)
Correction (829) (1,684) (2,037)
As restated $190,062
 $93,347
 $(4,308)
Provision (benefit) for taxes    
As originally filed $38,161
 $22,327
 $(11,808)
Correction (317) (554) (616)
As restated $37,844
 $21,773
 $(12,424)
Net income (loss)    
As originally filed $152,730
 $72,704
 $9,537
Correction (512) (1,130) (1,421)
As restated $152,218
 $71,574
 $8,116
       
Basic earnings per limited partner unit:    
As originally filed $2.76
 $1.31
 $0.17
Correction (0.01) (0.02) (0.02)
As restated $2.75
 $1.29
 $0.15
       
Diluted earnings per limited partner unit:    
As originally filed $2.74
 $1.30
 $0.17
Correction (0.01) (0.02) (0.02)
As restated $2.73
 $1.28
 $0.15
Statements of Operations and Other Comprehensive Income
(In thousands except per unit amounts) Three months ended Twelve months ended
  3/25/2012 3/25/2012
Depreciation and amortization    
As originally filed $3,846
 $123,861
Corrections 233
 2,031
As restated $4,079
 $125,892
Loss on impairment / retirement of fixed assets, net    
As originally filed $92
 $2,461
Corrections —
 8,790
As restated $92
 $11,251
Income (loss) before tax    
As originally filed $(86,721) $101,565
Corrections (233) (10,821)
As restated $(86,954) $90,744
Provision (benefit) for taxes  
As originally filed $(21,539) $9,897
Corrections —
 (3,960)
As restated $(21,539) $5,937
Net income (loss)  
As originally filed $(65,182) $91,668
Corrections (233) (6,861)
As restated $(65,415) $84,807
     
Basic earnings per limited partner unit:  
As originally filed $(1.18) $1.66
Corrections —
 (0.13)
As restated $(1.18) $1.53
     
Diluted earnings per limited partner unit:  
As originally filed $(1.18) $1.64
Corrections —
 (0.12)
As restated $(1.18) $1.52


(12) Changes in Accumulated Other Comprehensive Income by Component:

(12)The following tables reflect the changes in Accumulated other comprehensive income (loss) related to limited partners' equity for the period ended March 31, 2013:



19
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Changes in Accumulated Other Comprehensive Income by Component (1)
(In thousands)       
   Gains and    
   Losses on Foreign  
   Cash Flow Currency  
   Hedges Items Total
Balance at December 31, 2012 $(25,749) $(2,751) $(28,500)
        
 Other comprehensive      
 income before      
 reclassifications 1,940
 301
 301
        
 Amounts reclassified      
 from accumulated      
 other comprehensive      
 
income (2)
 6,945
 —
 8,885
        
Net current-period other      
comprehensive income 8,885
 301
 9,186
        
March 31, 2013 $(16,864) $(2,450) $(19,314)

(1) All amounts are net of tax. Amounts in parentheses indicate debits.
(2) See Reclassifications Out of Accumulated Other Comprehensive Income table below for reclassification details.

Reclassifications Out of Accumulated Other Comprehensive Income (1)
(In thousands)       
Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement Where Net Income is Presented
Gains and losses on cash flow hedges      
 Interest rate contracts $8,174
  Net effect of swaps
   $8,174
  Total before tax
   (1,229)  Provision (benefit) for taxes
   $6,945
  Net of tax

(1) Amounts in parentheses indicate debits.

(13) Consolidating Financial Information of Guarantors and Issuers:

Cedar Fair, L.P., Canada's Wonderland Company ("Cedar Canada"), and Magnum Management Corporation ("Magnum") are the co-issuers of the Partnership's 9.125% notes and the 5.25% notes (see Note 5). The notes have been fully and unconditionally guaranteed, on a joint and several basis, by each 100% owned subsidiary of Cedar Fair (other than Cedar Canada and Magnum) that guarantees the Partnership's senior secured credit facilities. There are no non-guarantor subsidiaries.

The following consolidating schedules present condensed financial information for Cedar Fair, L.P., Cedar Canada, and Magnum, the co-issuers, and each 100% owned subsidiary of Cedar Fair (other than Cedar Canada and Magnum), the guarantors (on a combined basis), as of September 30, 2012March 31, 2013, December 31, 2011,2012, and SeptemberMarch 25, 20112012 and for the three nine and twelve month periods ended

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September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012. In lieu of providing separate unaudited financial statements for the guarantor subsidiaries, we have included the accompanying condensed consolidating financial statements.

Since Cedar Fair, L.P., Cedar Canada and Magnum are co-issuers of the notes and co-borrowers under the Amended 20102013 Credit Agreement, all outstanding debt has been equally reflected within each co-issuer's September 30, 2012March 31, 2013, December 31, 20112012 and SeptemberMarch 25, 20112012 balance sheets in the accompanying condensed consolidating financial statements.

The consolidating financial information has been corrected for the information described in Note 11.12.
  

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CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
September 30, 2012
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $43,000
 $2,263
 $40,278
 $10,561
 $—
 $96,102
Receivables 3
 108,211
 64,153
 478,372
 (621,382) 29,357
Inventories —
 1,584
 2,742
 29,267
 —
 33,593
Current deferred tax asset —
 6,239
 772
 3,334
 —
 10,345
Income tax refundable —
 —
 10,454
 —
 —
 10,454
Other current assets 929
 2,065
 674
 3,775
 —
 7,443
  43,932
 120,362
 119,073
 525,309
 (621,382) 187,294
Property and Equipment (net) 425,747
 1,025
 272,951
 864,121
 —
 1,563,844
Investment in Park 577,612
 791,617
 118,514
 63,384
 (1,551,127) —
Goodwill 9,061
 —
 127,384
 111,218
 —
 247,663
Other Intangibles, net —
 —
 18,039
 22,826
 —
 40,865
Deferred Tax Asset —
 39,320
 —
 —
 (39,320) —
Intercompany Receivable 877,208
 1,069,721
 1,116,623
 —
 (3,063,552) —
Other Assets 23,361
 15,580
 8,925
 2,305
 —
 50,171
  $1,956,921
 $2,037,625
 $1,781,509
 $1,589,163
 $(5,275,381) $2,089,837
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Accounts payable $210,936
 $116,160
 $29,248
 $287,634
 $(621,382) $22,596
Deferred revenue —
 —
 4,544
 30,138
 —
 34,682
Accrued interest 735
 195
 6,082
 —
 —
 7,012
Accrued taxes 5,818
 42,090
 —
 4,496
 —
 52,404
Accrued salaries, wages and benefits —
 24,864
 2,365
 8,990
 —
 36,219
Self-insurance reserves —
 4,751
 1,698
 16,643
 —
 23,092
Other accrued liabilities 824
 4,097
 2,417
 3,505
 —
 10,843
  218,313
 192,157
 46,354
 351,406
 (621,382) 186,848
Deferred Tax Liability —
 —
 59,462
 122,952
 (39,320) 143,094
Derivative Liability 20,801
 13,907
 —
 —
 —
 34,708
Other Liabilities —
 3,880
 —
 3,500
 —
 7,380
Long-Term Debt:            
Term debt 1,131,100
 1,131,100
 1,131,100
 —
 (2,262,200) 1,131,100
Notes 400,676
 400,676
 400,676
 —
 (801,352) 400,676
  1,531,776
 1,531,776
 1,531,776
 —
 (3,063,552) 1,531,776
             
Equity 186,031
 295,905
 143,917
 1,111,305
 (1,551,127) 186,031
  $1,956,921
 $2,037,625
 $1,781,509
 $1,589,163
 $(5,275,381) $2,089,837


20
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CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
December 31, 2011
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $—
 $512
 $31,540
 $3,472
 $—
 $35,524
Receivables —
 62,408
 69,285
 412,095
 (536,177) 7,611
Inventories —
 1,547
 2,703
 28,819
 —
 33,069
Current deferred tax asset —
 6,239
 772
 3,334
 —
 10,345
Other current assets 508
 13,461
 1,027
 7,822
 (10,852) 11,966
  508
 84,167
 105,327
 455,542
 (547,029) 98,515
Property and Equipment (net) 455,579
 1,044
 266,111
 896,758
 —
 1,619,492
Investment in Park 518,819
 661,251
 118,385
 40,481
 (1,338,936) —
Intercompany Note Receivable —
 93,845
 —
 —
 (93,845) —
Goodwill 9,061
 —
 123,210
 111,219
 —
 243,490
Other Intangibles, net —
 —
 17,448
 22,825
 —
 40,273
Deferred Tax Asset —
 47,646
 —
 —
 (47,646) —
Intercompany Receivable 887,344
 1,084,112
 1,141,302
 —
 (3,112,758) —
Other Assets 27,641
 16,158
 9,353
 1,036
 —
 54,188
  $1,898,952
 $1,988,223
 $1,781,136
 $1,527,861
 $(5,140,214) $2,055,958
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Current maturities of long-term debt $15,921
 $15,921
 $15,921
 $—
 $(31,842) $15,921
Accounts payable 175,968
 144,868
 25,631
 202,566
 (536,177) 12,856
Deferred revenue —
 —
 2,891
 26,703
 —
 29,594
Accrued interest 198
 131
 15,433
 —
 —
 15,762
Accrued taxes 3,909
 —
 7,374
 15,577
 (10,852) 16,008
Accrued salaries, wages and benefits —
 26,916
 1,076
 5,396
 —
 33,388
Self-insurance reserves —
 3,977
 1,711
 15,555
 —
 21,243
Current derivative liability —
 —
 50,772
 —
 —
 50,772
Other accrued liabilities 1,247
 5,568
 252
 832
 —
 7,899
  197,243
 197,381
 121,061
 266,629
 (578,871) 203,443
Deferred Tax Liability —
 —
 58,463
 122,950
 (47,646) 133,767
Derivative Liability 19,451
 12,949
 —
 —
 —
 32,400
Other Liabilities —
 4,090
 —
 —
 —
 4,090
Intercompany Note Payable —
 —
 —
 93,845
 (93,845) —
Long-Term Debt:            
Term debt 1,140,179
 1,140,179
 1,140,179
 —
 (2,280,358) 1,140,179
Notes 400,279
 400,279
 400,279
 —
 (800,558) 400,279
  1,540,458
 1,540,458
 1,540,458
 —
 (3,080,916) 1,540,458
             
Equity 141,800
 233,345
 61,154
 1,044,437
 (1,338,936) 141,800
  $1,898,952
 $1,988,223
 $1,781,136
 $1,527,861
 $(5,140,214) $2,055,958

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CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
September 25, 2011March 31, 2013
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $49,000
 $2,489
 $36,473
 $8,350
 $—
 $96,312
Receivables 3
 45,663
 81,773
 587,910
 (676,810) 38,539
Inventories —
 1,684
 2,951
 32,311
 —
 36,946
Current deferred tax asset —
 1,686
 779
 3,409
 —
 5,874
Other current assets 875
 2,091
 774
 5,559
 —
 9,299
  49,878
 53,613
 122,750
 637,539
 (676,810) 186,970
Property and Equipment (net) 455,663
 1,055
 257,802
 900,759
 —
 1,615,279
Investment in Park 534,400
 681,893
 118,514
 53,988
 (1,388,795) —
Intercompany Note Receivable —
 269,500
 —
 —
 (269,500) —
Goodwill 9,061
 —
 121,869
 111,219
 —
 242,149
Other Intangibles, net —
 —
 17,258
 22,809
 —
 40,067
Deferred Tax Asset —
 49,845
 —
 —
 (49,845) —
Intercompany Receivable 887,219
 1,083,987
 1,141,302
 —
 (3,112,508) —
Other Assets 28,962
 16,884
 9,616
 1,160
 —
 56,622
  $1,965,183
 $2,156,777
 $1,789,111
 $1,727,474
 $(5,497,458) $2,141,087
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Accounts payable $189,887
 $281,605
 $27,488
 $206,288
 $(676,810) $28,458
Deferred revenue —
 —
 3,701
 28,993
 —
 32,694
Accrued interest 6,115
 1,364
 6,489
 —
 —
 13,968
Accrued taxes 5,189
 23,550
 —
 4,354
 —
 33,093
Accrued salaries, wages and benefits —
 29,373
 2,341
 9,395
 —
 41,109
Self-insurance reserves —
 3,130
 1,658
 17,154
 —
 21,942
Current derivative liability 4,797
 —
 54,569
 —
 —
 59,366
Other accrued liabilities 1,206
 4,840
 1,277
 4,924
 —
 12,247
  207,194
 343,862
 97,523
 271,108
 (676,810) 242,877
Deferred Tax Liability —
 —
 61,405
 112,413
 (49,845) 123,973
Derivative Liability 20,459
 13,376
 —
 —
 —
 33,835
Other Liabilities —
 2,872
 —
 —
 —
 2,872
Intercompany Note Payable —
 —
 —
 269,500
 (269,500) —
Long-Term Debt:            
Term debt 1,156,100
 1,156,100
 1,156,100
 —
 (2,312,200) 1,156,100
Notes 400,154
 400,154
 400,154
 —
 (800,308) 400,154
  1,556,254
 1,556,254
 1,556,254
 —
 (3,112,508) 1,556,254
             
Equity 181,276
 240,413
 73,929
 1,074,453
 (1,388,795) 181,276
  $1,965,183
 $2,156,777
 $1,789,111
 $1,727,474
 $(5,497,458) $2,141,087
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $—
 $732
 $4,125
 $5,181
 $—
 $10,038
Receivables 682
 79,472
 67,302
 436,595
 (570,709) 13,342
Inventories —
 3,645
 3,032
 32,386
 —
 39,063
Current deferred tax asset —
 31,543
 816
 3,663
 —
 36,022
Other current assets 207
 9,630
 1,618
 16,260
 —
 27,715
  889
 125,022
 76,893
 494,085
 (570,709) 126,180
Property and Equipment (net) 457,484
 1,003
 262,941
 849,424
 —
 1,570,852
Investment in Park 419,501
 714,013
 115,401
 21,689
 (1,270,604) —
Goodwill 9,061
 —
 123,374
 111,218
 —
 243,653
Other Intangibles, net —
 —
 17,470
 22,853
 —
 40,323
Deferred Tax Asset —
 34,890
 —
 90
 (34,980) —
Intercompany Receivable 877,336
 1,165,652
 1,211,522
 —
 (3,254,510) —
Other Assets 14,581
 10,291
 7,473
 2,303
 —
 34,648
  $1,778,852
 $2,050,871
 $1,815,074
 $1,501,662
 $(5,130,803) $2,015,656
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Current maturities of long-term debt $6,300
 $6,300
 $6,300
 $—
 $(12,600) $6,300
Accounts payable 103,654
 215,425
 3,891
 285,182
 (570,709) 37,443
Deferred revenue —
 —
 6,679
 59,505
 —
 66,184
Accrued interest 1,444
 916
 5,979
 —
 —
 8,339
Accrued taxes 4,790
 390
 331
 3,489
 —
 9,000
Accrued salaries, wages and benefits —
 13,483
 1,095
 5,604
 —
 20,182
Self-insurance reserves —
 5,324
 1,696
 16,537
 —
 23,557
Other accrued liabilities 589
 5,161
 133
 1,984
 —
 7,867
  116,777
 246,999
 26,104
 372,301
 (583,309) 178,872
Deferred Tax Liability —
 —
 62,700
 126,867
 (34,980) 154,587
Derivative Liability 18,594
 12,437
 —
 —
 —
 31,031
Other Liabilities —
 4,185
 —
 3,500
 —
 7,685
Long-Term Debt:            
Revolving credit loans 96,000
 96,000
 96,000
 —
 (192,000) 96,000
Term debt 623,700
 623,700
 623,700
 —
 (1,247,400) 623,700
Notes 901,255
 901,255
 901,255
 —
 (1,802,510) 901,255
  1,620,955
 1,620,955
 1,620,955
 —
 (3,241,910) 1,620,955
             
Equity 22,526
 166,295
 105,315
 998,994
 (1,270,604) 22,526
  $1,778,852
 $2,050,871
 $1,815,074
 $1,501,662
 $(5,130,803) $2,015,656


22
Table of Contents

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOMEBALANCE SHEET
For the Three Months Ended September 30,December 31, 2012
 (As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $79,663
 $141,134
 $88,334
 $464,902
 $(220,588) $553,445
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 6,447
 40,906
 —
 47,353
Operating expenses 1,368
 74,191
 18,736
 289,604
 (220,588) 163,311
Selling, general and administrative 1,853
 32,627
 4,822
 13,691
 —
 52,993
Depreciation and amortization 19,209
 10
 9,430
 32,098
 —
 60,747
Loss on impairment / retirement of fixed assets, net 25,000
 —
 —
 —
 —
 25,000
  47,430
 106,828
 39,435
 376,299
 (220,588) 349,404
Operating income 32,233
 34,306
 48,899
 88,603
 —
 204,041
Interest expense (income), net 12,213
 7,258
 9,897
 (2,518) —
 26,850
Net effect of swaps (104) (71) —
 —
 —
 (175)
Unrealized / realized foreign currency gain —
 —
 (15,035) —
 —
 (15,035)
Other (income) expense 186
 (2,043) 512
 1,345
 —
 —
Income from investment in affiliates (125,311) (79,600) (11,138) (45,137) 261,186
 —
Income before taxes 145,249
 108,762
 64,663
 134,913
 (261,186) 192,401
Provision for taxes 4,561
 9,777
 17,181
 20,194
 —
 51,713
Net income $140,688
 $98,985
 $47,482
 $114,719
 $(261,186) $140,688
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment (563) —
 (563) —
 563
 (563)
Unrealized income (loss) on cash flow hedging derivatives (234) 48
 —
 —
 (48) (234)
Other comprehensive income (loss), (net of tax) (797) 48
 (563) —
 515
 (797)
Total Comprehensive Income $139,891
 $99,033
 $46,919
 $114,719
 $(260,671) $139,891


  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $25,000
 $444
 $50,173
 $3,213
 $—
 $78,830
Receivables 4
 101,093
 71,099
 498,555
 (652,559) 18,192
Inventories —
 1,724
 2,352
 23,764
 —
 27,840
Current deferred tax asset —
 3,705
 816
 3,663
 —
 8,184
Other current assets 563
 17,858
 530
 5,490
 (16,381) 8,060
  25,567
 124,824
 124,970
 534,685
 (668,940) 141,106
Property and Equipment (net) 439,506
 1,013
 268,157
 835,596
 —
 1,544,272
Investment in Park 485,136
 772,183
 115,401
 53,790
 (1,426,510) —
Goodwill 9,061
 —
 125,942
 111,218
 —
 246,221
Other Intangibles, net —
 —
 17,835
 22,817
 —
 40,652
Deferred Tax Asset —
 36,443
 —
 90
 (36,533) —
Intercompany Receivable 877,612
 1,070,125
 1,116,623
 —
 (3,064,360) —
Other Assets 22,048
 14,832
 8,419
 2,315
 —
 47,614
  $1,858,930
 $2,019,420
 $1,777,347
 $1,560,511
 $(5,196,343) $2,019,865
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Accounts payable $147,264
 $213,279
 $16,101
 $286,649
 $(652,559) $10,734
Deferred revenue —
 —
 4,996
 34,489
 —
 39,485
Accrued interest 98
 64
 15,350
 —
 —
 15,512
Accrued taxes 4,518
 —
 6,239
 23,437
 (16,381) 17,813
Accrued salaries, wages and benefits —
 17,932
 1,214
 5,690
 —
 24,836
Self-insurance reserves —
 5,528
 1,754
 16,624
 —
 23,906
Other accrued liabilities 1,110
 2,502
 140
 2,164
 —
 5,916
  152,990
 239,305
 45,794
 369,053
 (668,940) 138,202
Deferred Tax Liability —
 —
 63,460
 126,865
 (36,533) 153,792
Derivative Liability 19,309
 12,951
 —
 —
 —
 32,260
Other Liabilities —
 5,480
 —
 3,500
 —
 8,980
Long-Term Debt:            
Term debt 1,131,100
 1,131,100
 1,131,100
 —
 (2,262,200) 1,131,100
Notes 401,080
 401,080
 401,080
 —
 (802,160) 401,080
  1,532,180
 1,532,180
 1,532,180
 —
 (3,064,360) 1,532,180
             
Equity 154,451
 229,504
 135,913
 1,061,093
 (1,426,510) 154,451
  $1,858,930
 $2,019,420
 $1,777,347
 $1,560,511
 $(5,196,343) $2,019,865

23
Table of Contents

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOMEBALANCE SHEET
For the Three Months Ended March 25, 2012September 25, 2011
(As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $82,713
 $147,138
 $84,679
 $487,352
 $(229,614) $572,268
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 6,659
 42,099
 —
 48,758
Operating expenses 1,257
 69,119
 19,397
 301,293
 (229,614) 161,452
Selling, general and administrative 1,297
 30,460
 5,064
 15,157
 —
 51,978
Depreciation and amortization 20,354
 11
 9,564
 33,519
 —
 63,448
Loss on impairment / retirement of fixed assets, net 827
 —
 10
 43
 —
 880
  23,735
 99,590
 40,694
 392,111
 (229,614) 326,516
Operating income 58,978
 47,548
 43,985
 95,241
 —
 245,752
Interest expense, net 23,948
 3,085
 13,433
 855
 —
 41,321
Net effect of swaps (4,112) (192) 342
 —
 —
 (3,962)
Unrealized / realized foreign currency loss —
 —
 18,549
 —
 —
 18,549
Other (income) expense (30) (1,711) 616
 907
 —
 (218)
Income from investment in affiliates (117,557) (57,557) (8,410) (15,579) 199,103
 —
Income before taxes 156,729
 103,923
 19,455
 109,058
 (199,103) 190,062
Provision for taxes 4,511
 12,445
 3,103
 17,785
 —
 37,844
Net income $152,218
 $91,478
 $16,352
 $91,273
 $(199,103) $152,218
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment 2,842
 —
 2,842
 —
 (2,842) 2,842
Unrealized income on cash flow hedging derivatives (3,224) (4,646) 72
 —
 4,574
 (3,224)
Other comprehensive income (loss), (net of tax) (382) (4,646) 2,914
 —
 1,732
 (382)
Total Comprehensive Income $151,836
 $86,832
 $19,266
 $91,273
 $(197,371) $151,836





  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $—
 $397
 $119
 $6,803
 $—
 $7,319
Receivables —
 82,892
 59,911
 370,246
 (506,356) 6,693
Inventories —
 3,321
 3,678
 37,487
 —
 44,486
Current deferred tax asset —
 11,014
 772
 3,334
 —
 15,120
Other current assets 359
 5,907
 11,851
 12,293
 —
 30,410
  359
 103,531
 76,331
 430,163
 (506,356) 104,028
Property and Equipment (net) 464,394
 1,035
 279,255
 896,184
 —
 1,640,868
Investment in Park 459,339
 661,166
 115,401
 25,758
 (1,261,664) —
Intercompany Note Receivable —
 104,165
 —
 —
 (104,165) —
Goodwill 9,061
 —
 125,528
 111,219
 —
 245,808
Other Intangibles, net —
 —
 17,776
 22,831
 —
 40,607
Deferred Tax Asset —
 47,646
 —
 —
 (47,646) —
Intercompany Receivable 889,442
 1,239,210
 1,294,302
 —
 (3,422,954) —
Other Assets 26,323
 16,288
 9,608
 1,974
 —
 54,193
  $1,848,918
 $2,173,041
 $1,918,201
 $1,488,129
 $(5,342,785) $2,085,504
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Current maturities of long-term debt $15,921
 $15,921
 $15,921
 $—
 $(31,842) $15,921
Accounts payable 60,297
 232,001
 26,302
 215,968
 (506,356) 28,212
Deferred revenue —
 —
 5,413
 45,341
 —
 50,754
Accrued interest 3,089
 1,706
 5,519
 —
 —
 10,314
Accrued taxes 4,925
 340
 261
 3,294
 —
 8,820
Accrued salaries, wages and benefits —
 26,989
 781
 5,792
 —
 33,562
Self-insurance reserves —
 4,212
 1,716
 15,826
 —
 21,754
Other accrued liabilities 462
 3,312
 226
 2,104
 —
 6,104
  84,694
 284,481
 56,139
 288,325
 (538,198) 175,441
Deferred Tax Liability —
 —
 58,762
 119,611
 (47,646) 130,727
Derivative Liability 19,403
 12,877
 —
 —
 —
 32,280
Other Liabilities —
 2,235
 —
 —
 —
 2,235
Intercompany Note Payable —
 —
 —
 104,165
 (104,165) —
Long-Term Debt:            
Revolving credit loans 155,004
 155,004
 155,004
 —
 (310,008) 155,004
Term debt 1,140,179
 1,140,179
 1,140,179
 —
 (2,280,358) 1,140,179
Notes 400,373
 400,373
 400,373
 —
 (800,746) 400,373
  1,695,556
 1,695,556
 1,695,556
 —
 (3,391,112) 1,695,556
             
Equity 49,265
 177,892
 107,744
 976,028
 (1,261,664) 49,265
  $1,848,918
 $2,173,041
 $1,918,201
 $1,488,129
 $(5,342,785) $2,085,504


24
Table of Contents

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the NineThree Months Ended September 30, 2012March 31, 2013
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $124,864
 $221,221
 $130,441
 $808,471
 $(345,748) $939,249
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 9,988
 73,938
 —
 83,926
Operating expenses 4,141
 147,211
 40,328
 534,900
 (345,748) 380,832
Selling, general and administrative 4,841
 70,848
 9,877
 29,922
 —
 115,488
Depreciation and amortization 33,436
 28
 16,415
 63,277
 —
 113,156
Loss on impairment / retirement of fixed assets, net 24,221
 —
 9
 —
 —
 24,230
  66,639
 218,087
 76,617
 702,037
 (345,748) 717,632
Operating income 58,225
 3,134
 53,824
 106,434
 —
 221,617
Interest expense (income), net 36,438
 21,957
 30,898
 (5,422) —
 83,871
Net effect of swaps (35) 192
 (1,475) —
 —
 (1,318)
Unrealized / realized foreign currency gain —
 —
 (13,926) —
 —
 (13,926)
Other (income) expense 561
 (7,119) 1,221
 5,337
 —
 —
Income from investment in affiliates (99,035) (72,862) (14,505) (38,160) 224,562
 —
Income before taxes 120,296
 60,966
 51,611
 144,679
 (224,562) 152,990
Provision (benefit) for taxes 8,701
 (3,771) 13,525
 22,940
 —
 41,395
Net income $111,595
 $64,737
 $38,086
 $121,739
 $(224,562) $111,595
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment (1,251) —
 (1,251) —
 1,251
 (1,251)
Unrealized income (loss) on cash flow hedging derivatives (1,798) (629) 21
 —
 608
 (1,798)
Other comprehensive income (loss), (net of tax) (3,049) (629) (1,230) —
 1,859
 (3,049)
Total Comprehensive Income $108,546
 $64,108
 $36,856
 $121,739
 $(222,703) $108,546
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $4,317
 $8,371
 $289
 $41,510
 $(12,688) $41,799
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 —
 5,037
 —
 5,037
Operating expenses 1,423
 21,606
 5,941
 60,375
 (12,688) 76,657
Selling, general and administrative 1,292
 16,613
 711
 2,423
 —
 21,039
Depreciation and amortization 475
 9
 —
 4,302
 —
 4,786
Loss on impairment / retirement of fixed assets, net 36
 —
 478
 86
 —
 600
  3,226
 38,228
 7,130
 72,223
 (12,688) 108,119
Operating income (loss) 1,091
 (29,857) (6,841) (30,713) —
 (66,320)
Interest expense (income), net 10,512
 7,677
 9,764
 (2,230) —
 25,723
Net effect of swaps 5,635
 3,576
 —
 —
 —
 9,211
Loss on early debt extinguishment 21,175
 12,781
 617
 —
 —
 34,573
Unrealized / realized foreign currency loss —
 —
 8,958
 —
 —
 8,958
Other (income) expense 188
 (2,388) 800
 1,400
 —
 —
Loss from investment in affiliates 72,096
 35,640
 3,520
 21,227
 (132,483) —
Loss before taxes (108,515) (87,143) (30,500) (51,110) 132,483
 (144,785)
Provision (benefit) for taxes 611
 (17,665) (9,254) (9,351) —
 (35,659)
Net loss $(109,126) $(69,478) $(21,246) $(41,759) $132,483
 $(109,126)
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment 301
 —
 301
 —
 (301) 301
Unrealized income on cash flow hedging derivatives 8,885
 2,535
 —
 —
 (2,535) 8,885
Other comprehensive income, (net of tax) 9,186
 2,535
 301
 —
 (2,836) 9,186
Total Comprehensive Loss $(99,940) $(66,943) $(20,945) $(41,759) $129,647
 $(99,940)



25
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CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the NineThree Months Ended SeptemberMarch 25, 20112012
(As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $118,280
 $210,407
 $115,163
 $768,126
 $(328,349) $883,627
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 9,389
 70,592
 —
 79,981
Operating expenses 4,180
 131,955
 38,959
 504,813
 (328,349) 351,558
Selling, general and administrative 8,049
 64,226
 9,541
 28,310
 —
 110,126
Depreciation and amortization 33,021
 34
 15,440
 62,362
 —
 110,857
Loss on impairment / retirement of fixed assets, net 1,023
 —
 10
 43
 —
 1,076
  46,273
 196,215
 73,339
 666,120
 (328,349) 653,598
Operating income 72,007
 14,192
 41,824
 102,006
 —
 230,029
Interest expense, net 70,822
 8,395
 39,129
 6,184
 —
 124,530
Net effect of swaps (7,230) 910
 2,813
 —
 —
 (3,507)
Unrealized / realized foreign currency loss —
 —
 14,704
 —
 —
 14,704
Other (income) expense 1,517
 (4,712) 2,072
 2,078
 —
 955
(Income) loss from investment in affiliates (71,656) (34,663) (12,389) 107
 118,601
 —
Income (loss) before taxes 78,554
 44,262
 (4,505) 93,637
 (118,601) 93,347
Provision (benefit) for taxes 6,980
 2,527
 (4,446) 16,712
 —
 21,773
Net income (loss) $71,574
 $41,735
 $(59) $76,925
 $(118,601) $71,574
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment 2,354
 —
 2,354
 —
 (2,354) 2,354
Unrealized income on cash flow hedging derivatives 2,366
 (9,866) 79
 —
 9,787
 2,366
Other comprehensive income (loss), (net of tax) 4,720
 (9,866) 2,433
 —
 7,433
 4,720
Total Comprehensive Income $76,294
 $31,869
 $2,374
 $76,925
 $(111,168) $76,294

  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $1,456
 $2,577
 $266
 $27,932
 $(4,033) $28,198
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 —
 4,087
 —
 4,087
Operating expenses 1,335
 20,436
 5,657
 47,890
 (4,033) 71,285
Selling, general and administrative 1,332
 13,696
 760
 2,196
 —
 17,984
Depreciation and amortization 696
 9
 —
 3,374
 —
 4,079
Loss on impairment / retirement of fixed assets, net 82
 —
 10
 —
 —
 92
  3,445
 34,141
 6,427
 57,547
 (4,033) 97,527
Operating loss (1,989) (31,564) (6,161) (29,615) —
 (69,329)
Interest expense, net 11,158
 6,615
 10,403
 (1,389) —
 26,787
Net effect of swaps 173
 332
 (1,475) —
 —
 (970)
Unrealized / realized foreign currency gain —
 —
 (8,192) —
 —
 (8,192)
Other (income) expense 187
 (3,035) 197
 2,651
 —
 —
Loss from investment in affiliates 50,491
 23,083
 3,230
 24,916
 (101,720) —
Loss before taxes (63,998) (58,559) (10,324) (55,793) 101,720
 (86,954)
Provision (benefit) for taxes 1,417
 (11,672) (2,334) (8,950) —
 (21,539)
Net loss $(65,415) $(46,887) $(7,990) $(46,843) $101,720
 $(65,415)
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment (1,169) —
 (1,169) —
 1,169
 (1,169)
Unrealized income on cash flow hedging derivatives 339
 98
 21
 —
 (119) 339
Other comprehensive income (loss), (net of tax) (830) 98
 (1,148) —
 1,050
 (830)
Total Comprehensive Loss $(66,245) $(46,789) $(9,138) $(46,843) $102,770
 $(66,245)

























26
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CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
For the Twelve Months Ended September 30, 2012March 31, 2013
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $147,733
 $261,878
 $142,250
 $941,465
 $(409,232) $1,084,094
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 10,531
 85,471
 —
 96,002
Operating expenses 5,452
 180,665
 47,134
 636,106
 (409,232) 460,125
Selling, general and administrative 6,865
 90,892
 11,650
 36,381
 —
 145,788
Depreciation and amortization 37,698
 41
 18,300
 72,097
 —
 128,136
(Gain) loss on impairment / retirement of fixed assets, net 24,188
 —
 (62) 1,593
 —
 25,719
  74,203
 271,598
 87,553
 831,648
 (409,232) 855,770
Operating income (loss) 73,530
 (9,720) 54,697
 109,817
 —
 228,324
Interest (income) expense, net 50,007
 28,592
 44,583
 (6,813) —
 116,369
Net effect of swaps (5,019) (1) (5,910) —
 —
 (10,930)
Unrealized / realized foreign currency gain —
 —
 (18,721) —
 —
 (18,721)
Other (income) expense 749
 (10,205) 1,498
 7,958
 —
 —
Income from investment in affiliates (93,080) (55,557) (12,698) (24,955) 186,290
 —
Income before taxes 120,873
 27,451
 45,945
 133,627
 (186,290) 141,606
Provision (benefit) for taxes 10,106
 (29,298) 20,942
 29,089
 —
 30,839
Net income $110,767
 $56,749
 $25,003
 $104,538
 $(186,290) $110,767
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment (2,672) —
 (2,672) —
 2,672
 (2,672)
Unrealized income (loss) on cash flow hedging derivatives (397) (109) 21
 —
 88
 (397)
Other comprehensive income (loss), (net of tax) (3,069) (109) (2,651) —
 2,760
 (3,069)
Total Comprehensive Income $107,698
 $56,640
 $22,352
 $104,538
 $(183,530) $107,698
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $148,576
 $263,930
 $140,441
 $941,246
 $(412,138) $1,082,055
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 10,316
 85,682
 —
 95,998
Operating expenses 5,468
 177,526
 48,147
 637,772
 (412,138) 456,775
Selling, general and administrative 6,455
 89,532
 11,086
 34,293
 —
 141,366
Depreciation and amortization 37,439
 40
 18,199
 71,335
 —
 127,013
(Gain) on sale of other assets —
 —
 —
 (6,625) —
 (6,625)
Loss on impairment / retirement of fixed assets, net 25,089
 —
 474
 5,281
 —
 30,844
  74,451
 267,098
 88,222
 827,738
 (412,138) 845,371
Operating income (loss) 74,125
 (3,168) 52,219
 113,508
 —
 236,684
Interest (income) expense, net 47,879
 30,390
 40,231
 (9,013) —
 109,487
Net effect of swaps 5,324
 3,365
 —
 —
 —
 8,689
Loss on early debt extinguishment 21,175
 12,781
 617
 —
 —
 34,573
Unrealized / realized foreign currency loss —
 —
 8,152
 —
 —
 8,152
Other (income) expense 750
 (8,860) 2,623
 5,487
 —
 —
Income from investment in affiliates (68,417) (53,593) (14,307) (18,503) 154,820
 —
Income before taxes 67,414
 12,749
 14,903
 135,537
 (154,820) 75,783
Provision (benefit) for taxes 9,269
 (15,849) (3,507) 27,725
 —
 17,638
Net income $58,145
 $28,598
 $18,410
 $107,812
 $(154,820) $58,145
Other comprehensive income, (net of tax):            
Cumulative foreign currency translation adjustment 1,839
 —
 1,839
 —
 (1,839) 1,839
Unrealized income on cash flow hedging derivatives 8,685
 2,551
 —
 —
 (2,551) 8,685
Other comprehensive income (loss), (net of tax) 10,524
 2,551
 1,839
 —
 (4,390) 10,524
Total Comprehensive Income $68,669
 $31,149
 $20,249
 $107,812
 $(159,210) $68,669



27
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CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the Twelve Months Ended SeptemberMarch 25, 20112012 (As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $138,907
 $247,595
 $126,355
 $886,578
 $(386,119) $1,013,316
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 9,850
 80,928
 —
 90,778
Operating expenses 5,725
 163,754
 45,814
 597,781
 (386,119) 426,955
Selling, general and administrative 9,755
 79,492
 11,347
 32,598
 —
 133,192
Depreciation and amortization 37,168
 95
 17,188
 71,931
 —
 126,382
Loss on impairment of goodwill and other intangibles —
 —
 —
 903
 —
 903
Loss on impairment / retirement of fixed assets, net 1,456
 —
 10
 62,043
 —
 63,509
  54,104
 243,341
 84,209
 846,184
 (386,119) 841,719
Operating income 84,803
 4,254
 42,146
 40,394
 —
 171,597
Interest expense, net 99,205
 14,877
 52,411
 4,362
 —
 170,855
Net effect of swaps (7,183) 910
 8,045
 —
 —
 1,772
Unrealized / realized foreign currency loss —
 —
 2,323
 —
 —
 2,323
Other (income) expense 1,704
 (5,748) 2,852
 2,147
 —
 955
(Income) loss from investment in affiliates (25,098) 1,534
 (9,116) 2,425
 30,255
 —
Income (loss) before taxes 16,175
 (7,319) (14,369) 31,460
 (30,255) (4,308)
Provision (benefit) for taxes 8,059
 953
 (7,308) (14,128) —
 (12,424)
Net income (loss) $8,116
 $(8,272) $(7,061) $45,588
 $(30,255) $8,116
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment (1,704) —
 (1,704) —
 1,704
 (1,704)
Unrealized income on cash flow hedging derivatives 22,916
 (7,153) 180
 —
 6,973
 22,916
Other comprehensive income (loss), (net of tax) 21,212
 (7,153) (1,524) —
 8,677
 21,212
Total Comprehensive Income (Loss) $29,328
 $(15,425) $(8,585) $45,588
 $(21,578) $29,328
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $140,548
 $249,988
 $126,375
 $903,046
 $(390,156) $1,029,801
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 9,932
 82,100
 —
 92,032
Operating expenses 5,351
 167,068
 45,805
 608,940
 (390,156) 437,008
Selling, general and administrative 7,963
 83,355
 11,151
 35,026
 —
 137,495
Depreciation and amortization 37,309
 45
 17,325
 71,213
 —
 125,892
Loss (gain) on impairment / retirement of fixed assets, net 876
 —
 (51) 10,426
 —
 11,251
  51,499
 250,468
 84,162
 807,705
 (390,156) 803,678
Operating income (loss) 89,049
 (480) 42,213
 95,341
 —
 226,123
Interest expense, net 72,309
 19,090
 50,897
 488
 —
 142,784
Net effect of swaps (10,940) (243) (4,793) —
 —
 (15,976)
Unrealized / realized foreign currency loss —
 —
 8,605
 —
 —
 8,605
Other (income) expense 716
 (9,542) 1,708
 7,084
 —
 (34)
(Income) loss from investment in affiliates (67,272) (19,390) (2,601) 16,074
 73,189
 —
Income (loss) before taxes 94,236
 9,605
 (11,603) 71,695
 (73,189) 90,744
Provision (benefit) for taxes 9,429
 (25,950) 4,319
 18,139
 —
 5,937
Net income (loss) $84,807
 $35,555
 $(15,922) $53,556
 $(73,189) $84,807
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment 1,050
 —
 1,050
 —
 (1,050) 1,050
Unrealized income (loss) on cash flow hedging derivatives (7,958) (9,638) 254
 —
 9,384
 (7,958)
Other comprehensive income (loss), (net of tax) (6,908) (9,638) 1,304
 —
 8,334
 (6,908)
Total Comprehensive Income (Loss) $77,899
 $25,917
 $(14,618) $53,556
 $(64,855) $77,899




28
Table of Contents

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the NineThree Months Ended September 30, 2012March 31, 2013
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $208,436
 $48,506
 $9,093
 $155,849
 $(145,140) $276,744
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates (56,171) (70,083) 3,948
 (22,834) 145,140
 —
Sale of other assets 1,173
 —
 —
 —
 —
 1,173
Capital expenditures (29,295) (8) (14,426) (32,081) —
 (75,810)
Net cash from (for) investing activities (84,293) (70,091) (10,478) (54,915) 145,140
 (74,637)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Derivative settlement —
 —
 (50,450) —
 —
 (50,450)
Term debt payments, including early termination penalties (14,468) (10,212) (320) —
 —
 (25,000)
Intercompany (payments) receipts —
 93,845
 —
 (93,845) —
 —
Distributions (paid) received (66,675) 110
 —
 —
 —
 (66,565)
Capital (contribution) infusion —
 (60,000) 60,000
 —
 —
 —
Exercise of limited partnership unit options —
 47
 —
 —
 —
 47
Excess tax benefit from unit-based compensation expense —
 (454) —
 —
 —
 (454)
Net cash from (for) financing activities (81,143) 23,336
 9,230
 (93,845) —
 (142,422)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 893
 —
 —
 893
CASH AND CASH EQUIVALENTS            
Net increase for the period 43,000
 1,751
 8,738
 7,089
 —
 60,578
Balance, beginning of period —
 512
 31,540
 3,472
 —
 35,524
Balance, end of period $43,000
 $2,263
 $40,278
 $10,561
 $—
 $96,102
             
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $(117,670) $(49,663) $(42,030) $(12,767) $153,463
 $(68,667)
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates 65,636
 58,171
 (2,442) 32,098
 (153,463) —
Capital expenditures (17,866) —
 (600) (17,363) —
 (35,829)
Net cash from (for) investing activities 47,770
 58,171
 (3,042) 14,735
 (153,463) (35,829)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Net borrowings on revolving credit loans $96,000
 $—
 $—
 $—
 $—
 $96,000
Term debt borrowings 359,022
 256,500
 14,478
 —
 —
 630,000
Note borrowings 294,897
 205,103
 —
 —
 —
 500,000
Payment of debt issuance costs (14,763) (8,538) (190) —
 —
 (23,491)
Term debt payments, including early termination penalties (654,568) (462,054) (14,478) —
 —
 (1,131,100)
Distributions (paid) received (35,688) 868
 —
 —
 —
 (34,820)
Exercise of limited partnership unit options —
 28
 —
 —
 —
 28
Excess tax benefit from unit-based compensation expense —
 (127) —
 —
 —
 (127)
Net cash from (for) financing activities 44,900
 (8,220) (190) —
 —
 36,490
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 (786) —
 —
 (786)
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period (25,000) 288
 (46,048) 1,968
 —
 (68,792)
Balance, beginning of period 25,000
 444
 50,173
 3,213
 —
 78,830
Balance, end of period $—
 $732
 $4,125
 $5,181
 $—
 $10,038
             

29
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CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the NineThree Months Ended SeptemberMarch 25, 20112012 (As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $169,343
 $48,628
 $48,422
 $25,310
 $(69,338) $222,365
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates (29,986) (39,615) (6,353) 6,616
 69,338
 —
Capital expenditures (38,121) —
 (10,510) (24,249) —
 (72,880)
Net cash from (for) investing activities (68,107) (39,615) (16,863) (17,633) 69,338
 (72,880)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Net (payments) on revolving credit loans (23,200) —
 —
 —
 —
 (23,200)
Term debt borrowings 13,246
 9,358
 334
 —
 —
 22,938
Term debt payments, including early termination penalties (13,831) (9,763) (306) —
 —
 (23,900)
Intercompany (payments) receipts —
 688
 —
 (688) —
 —
Distributions (paid) received (16,668) 64
 —
 —
 —
 (16,604)
Payment of debt issuance costs (11,783) (8,332) (375) —
 —
 (20,490)
Net cash from (for) financing activities (52,236) (7,985) (347) (688) —
 (61,256)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 (1,682) —
 —
 (1,682)
CASH AND CASH EQUIVALENTS            
Net increase for the period 49,000
 1,028
 29,530
 6,989
 —
 86,547
Balance, beginning of period —
 1,461
 6,943
 1,361
 —
 9,765
Balance, end of period $49,000
 $2,489
 $36,473
 $8,350
 $—
 $96,312
             
             
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $(184,504) $10,151
 $(37,239) $(6,697) $136,357
 $(81,932)
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates 62,103
 60,369
 2,208
 11,677
 (136,357) —
Capital expenditures (8,374) —
 (7,125) (11,969) —
 (27,468)
Net cash from (for) investing activities 53,729
 60,369
 (4,917) (292) (136,357) (27,468)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Net borrowings on revolving credit loans 153,000
 —
 2,004
 —
 —
 155,004
Derivative settlement —
 —
 (50,450) —
 —
 (50,450)
Intercompany (payments) receipts —
 (10,320) —
 10,320
 —
 —
Distributions (paid) received (22,225) 74
 —
 —
 —
 (22,151)
Capital (contribution) infusion —
 (60,000) 60,000
 —
 —
 —
Exercise of limited partnership unit options —
 48
 —
 —
 —
 48
Excess tax benefit from unit-based compensation —
 (437) —
 —
 —
 (437)
Net cash from (for) financing activities 130,775
 (70,635) 11,554
 10,320
 —
 82,014
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 (819) —
 —
 (819)
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period —
 (115) (31,421) 3,331
 —
 (28,205)
Balance, beginning of period —
 512
 31,540
 3,472
 —
 35,524
Balance, end of period $—
 $397
 $119
 $6,803
 $—
 $7,319
             
             

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CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the Twelve Months Ended September 30, 2012March 31, 2013
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $186,582
 $(152,159) $12,038
 $318,078
 $(91,985) $272,554
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates (40,694) (47,206) 5,245
 (9,330) 91,985
 —
Sale of other assets 1,173
 —
 —
 —
 —
 1,173
Capital expenditures (33,025) (8) (23,050) (37,037) —
 (93,120)
Net cash for investing activities (72,546) (47,214) (17,805) (46,367) 91,985
 (91,947)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Intercompany term debt (payments) receipts —
 269,500
 —
 (269,500) —
 —
Derivative settlement —
 —
 (50,450) —
 —
 (50,450)
Term debt payments, including early termination penalties (14,467) (10,213) (320) —
 —
 (25,000)
Distributions (paid) received (105,569) 261
 —
 —
 —
 (105,308)
Capital (contribution) infusion —
 (60,000) 60,000
 —
 —
 —
Exercise of limited partnership unit options —
 53
 —
 —
 —
 53
Payment of debt issuance costs —
 —
 (723) —
 —
 (723)
Excess tax benefit from unit-based compensation expense —
 (454) —
 —
 —
 (454)
Net cash from (for) financing activities (120,036) 199,147
 8,507
 (269,500) —
 (181,882)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 1,065
 —
 —
 1,065
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period (6,000) (226) 3,805
 2,211
 —
 (210)
Balance, beginning of period 49,000
 2,489
 36,473
 8,350
 —
 96,312
Balance, end of period $43,000
 $2,263
 $40,278
 $10,561
 $—
 $96,102
             
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $188,221
 $(37,475) $16,546
 $135,165
 $(4,510) $297,947
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates 43,043
 (49,642) (2,479) 4,568
 4,510
 —
Sale of other assets 1,173
 —
 —
 14,885
 —
 16,058
Capital expenditures (43,156) (8) (8,023) (52,075) —
 (103,262)
Net cash for investing activities 1,060
 (49,650) (10,502) (32,622) 4,510
 (87,204)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Net borrowings on revolving credit loans $(57,000) $—
 $(2,004) $—
 $—
 $(59,004)
Term debt borrowings 359,022
 256,500
 14,478
 —
 —
 630,000
Note borrowings 294,897
 205,103
 —
 —
 —
 500,000
Intercompany term debt (payments) receipts —
 104,165
 —
 (104,165) —
 —
Term debt payments, including early termination penalties (669,035) (472,267) (14,798) —
 —
 (1,156,100)
Distributions (paid) received (102,402) 920
 —
 —
 —
 (101,482)
Capital (contribution) infusion —
 —
 —
 —
 —
 —
Exercise of limited partnership unit options —
 57
 —
 —
 —
 57
Payment of debt issuance costs (14,763) (8,537) (191) —
 —
 (23,491)
Excess tax benefit from unit-based compensation expense —
 1,519
 —
 —
 —
 1,519
Net cash from (for) financing activities (189,281) 87,460
 (2,515) (104,165) —
 (208,501)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 477
 —
 —
 477
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period —
 335
 4,006
 (1,622) —
 2,719
Balance, beginning of period —
 397
 119
 6,803
 —
 7,319
Balance, end of period $—
 $732
 $4,125
 $5,181
 $—
 $10,038
             

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CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the Twelve Months Ended SeptemberMarch 25, 20112012 (As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $101,376
 $(9,652) $25,380
 $19,056
 $58,064
 $194,224
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates 25,281
 23,147
 (1,356) 10,992
 (58,064) —
Capital expenditures (44,247) —
 (13,179) (27,488) —
 (84,914)
Net cash from (for) investing activities (18,966) 23,147
 (14,535) (16,496) (58,064) (84,914)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Term debt borrowings 13,246
 9,358
 334
 —
 —
 22,938
Intercompany term debt (payments) receipts —
 2,063
 —
 (2,063) —
 —
Term debt payments, including early termination penalties (24,211) (17,091) (536) —
 —
 (41,838)
Distributions (paid) received (30,559) 121
 —
 —
 —
 (30,438)
Exercise of limited partnership unit options —
 7
 —
 —
 —
 7
Payment of debt issuance costs (12,886) (9,110) (761) —
 —
 (22,757)
Net cash from (for) financing activities (54,410) (14,652) (963) (2,063) —
 (72,088)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 (2,611) —
 —
 (2,611)
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period 28,000
 (1,157) 7,271
 497
 —
 34,611
Balance, beginning of period 21,000
 3,646
 29,202
 7,853
 —
 61,701
Balance, end of period $49,000
 $2,489
 $36,473
 $8,350
 $—
 $96,312
             
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $113,654
 $(89,658) $14,102
 $182,798
 $(367) $220,529
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates (16,818) (6,588) 1,126
 21,913
 367
 —
Capital expenditures (40,662) —
 (22,440) (34,253) —
 (97,355)
Net cash from (for) investing activities (57,480) (6,588) (21,314) (12,340) 367
 (97,355)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Net borrowings (payments) on revolving credit loans 31,000
 —
 (3,110) —
 —
 27,890
Intercompany term debt (payments) receipts —
 166,023
 —
 (166,023) —
 —
Term debt payments, including early termination penalties (13,831) (9,763) (306) —
 —
��(23,900)
Derivative settlement —
 —
 (50,450) —
 —
 (50,450)
Distributions (paid) received (73,343) 273
 —
 —
 —
 (73,070)
Capital (contribution) infusion —
 (60,000) 60,000
 —
 —
 —
Payment of debt issuance costs —
 —
 (723) —
 —
 (723)
Exercise of limited partnership unit options —
 53
 —
 —
 —
 53
Excess tax benefit from unit-based compensation —
 (437) —
 —
 —
 (437)
Net cash from (for) financing activities (56,174) 96,149
 5,411
 (166,023) —
 (120,637)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 (2,473) —
 —
 (2,473)
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period —
 (97) (4,274) 4,435
 —
 64
Balance, beginning of period —
 494
 4,393
 2,368
 —
 7,255
Balance, end of period $—
 $397
 $119
 $6,803
 $—
 $7,319


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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Business Overview:

We generate our revenues primarily from sales of (1) admission to our parks, (2) food, merchandise and games inside our parks, and (3) hotel rooms, food and other attractions outside our parks. Our principal costs and expenses, which include salaries and wages, advertising, maintenance, operating supplies, utilities and insurance, are relatively fixed and do not vary significantly with attendance.

Each of our properties is run by a park general manager and operates autonomously. Management reviews operating results, evaluates performance and makes operating decisions, including the allocation of resources, on a property-by-property basis.

Aside from attendance and guest per capita statistics, discrete financial information and operating results are not prepared at the regional level, but rather at the individual park level for use by the CEO, who is the Chief Operating Decision Maker (CODM), as well as by the Chief Financial Officer, the Chief Operating Officer, the park general managers, and the Executive Vice President, Operations.


Critical Accounting Policies:
This management’s discussion and analysis of financial condition and results of operations is based upon our unaudited condensed consolidated financial statements, which were prepared in accordance with accounting principles generally accepted in the United States of America. These principles require us to make judgments, estimates and assumptions during the normal course of business that affect the amounts reported in the unaudited condensed consolidated financial statements. Actual results could differ significantly from those estimates under different assumptions and conditions.
Management believes that judgment and estimates related to the following critical accounting policies could materially affect our consolidated financial statements:
 
•Property and Equipment
 
•Impairment of Long-Lived Assets
 
•Goodwill and Other Intangible Assets
 
•Self-Insurance Reserves
 
•Derivative Financial Instruments
 
•Revenue Recognition

Income Taxes
In the thirdfirst quarter of 20122013, there were no changes in the above critical accounting policies previously disclosed in our Annual Report on Form 10-K10-K/A for the year ended December 31, 20112012. except as noted below.
Change in Depreciation Method
Effective January 1, 2013, the Partnership changed its method of depreciation for the group of assets acquired as a whole in 1983, as well as for the groups of like assets of each subsequent business acquisition from the composite method to the unit method.
Historically, the Partnership had used the composite depreciation method for land improvements, buildings, rides and equipment for the group of assets acquired as a whole in 1983, as well as for the group of like assets of each subsequent business acquisition. The unit method was only used for all individual assets purchased. Under the composite depreciation method, assets with similar estimated lives are grouped together and the several pools of assets are depreciated on an aggregate basis. No gain or loss is recognized on normal retirements of composite assets. Instead, the net book value of a retired asset reduces accumulated depreciation for the composite group. Unusual retirements of composite assets could result in the recognition of a gain or loss. Under the unit method of depreciation, individual assets are depreciated over their estimated useful lives, with gains and losses on all asset retirements recognized currently in income.
In order to improve comparability and enhance the level of precision associated with allocating historical cost, the Partnership had determined that it was preferable to change from the composite method of depreciation to the unit method of depreciation for

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all assets. The Partnership believes that pursuant to generally accepted accounting principles, changing from the composite method of depreciation to the unit method of depreciation is a change in accounting estimate that is effected by a change in accounting principle, which should be accounted for prospectively. This prospective application will result in the discontinuance of the composite method of depreciation for all prior acquisitions with the existing net book value of each composite pool allocated to the remaining individual assets (units) in that pool with each unit assigned an appropriate remaining useful life on an individual unit basis. Assigning a useful life to each unit in the various composite pools had an insignificant effect on the weighted average useful lives of all assets that were previously accounted for under the composite method.
The change in depreciation method had an immaterial impact on the Condensed Consolidated Financial Statements for the quarter ended March 31, 2013.Future asset retirements could have a material impact on the Condensed Consolidated Financial Statements in the periods such items occur.


Adjusted EBITDA:
We believe that Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, other non-cash items, and adjustments as defined in the Amended 20102013 Credit Agreement) is a meaningful measure of park-level operating profitability because we use it for measuring returns on capital investments, evaluating potential acquisitions, determining awards under incentive compensation plans, and calculating compliance with certain loan covenants. Adjusted EBITDA is provided in the discussion of results of operations that follows as a supplemental measure of our operating results and is not intended to be a substitute for operating income, net income or cash flows from operating activities as defined under generally accepted accounting principles. In addition, Adjusted EBITDA may not be comparable to similarly titled measures of other companies.

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The table below sets forth a reconciliation of Adjusted EBITDA to net income for the three-, nine- and twelve-month periods ended September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012.
 
  Three months ended Nine months ended Twelve months ended
  9/30/2012 9/25/2011 9/30/2012 9/25/2011 9/30/2012 9/25/2011
  (13 weeks) (13 weeks) (39 weeks) (38 weeks) (53 weeks) (52 weeks)
  (In thousands )
Net income $140,688
 $152,218
 $111,595
 $71,574
 $110,767
 $8,116
Interest expense 26,863
 41,353
 83,902
 124,650
 116,437
 171,049
Interest income (13) (32) (31) (120) (68) (194)
Provision (benefit) for taxes 51,713
 37,844
 41,395
 21,773
 30,839
 (12,424)
Depreciation and amortization 60,747
 63,448
 113,156
 110,857
 128,136
 126,382
EBITDA 279,998
 294,831
 350,017
 328,734
 386,111
 292,929
Net effect of swaps (175) (3,962) (1,318) (3,507) (10,930) 1,772
Unrealized foreign currency (gain) loss (14,737) 17,314
 (14,108) 13,224
 (17,502) 549
Non-cash equity expense (income) 362
 —
 2,630
 (228) 2,619
 (269)
Loss on impairment of goodwill and other intangibles —
 —
 —
 —
 —
 903
Loss on impairment/retirement of fixed assets, net 25,000
 880
 24,230
 1,076
 25,719
 63,509
Terminated merger costs —
 —
 —
 80
 150
 (79)
Refinancing costs —
 (195) —
 955
 —
 955
Other non-recurring items (as defined) 1,861
 836
 4,026
 6,107
 7,445
 6,107
Adjusted EBITDA (1)
 $292,309
 $309,704
 $365,477
 $346,441
 $393,612
 $366,376
             
(1) As permitted by and defined in the Amended 2010 Credit Agreement        
  Three months ended Twelve months ended
  3/31/2013 3/25/2012 3/31/2013 3/25/2012
  (13 weeks) (12 weeks) (53 weeks) (52 weeks)
  (In thousands)
Net income (loss) $(109,126) $(65,415) $58,145
 $84,807
Interest expense 25,763
 26,803
 109,579
 142,876
Interest income (40) (16) (92) (92)
Provision (benefit) for taxes (35,659) (21,539) 17,638
 5,937
Depreciation and amortization 4,786
 4,079
 127,013
 125,892
EBITDA (114,276) (56,088) 312,283
 359,420
Loss on early extinguishment of debt 34,573
 —
 34,573
 —
Net effect of swaps 9,211
 (970) 8,689
 (15,976)
Unrealized foreign currency (gain) loss 8,881
 (8,249) 7,949
 8,502
Non-cash equity expense 2,933
 1,700
 4,498
 1,689
Loss on impairment/retirement of fixed assets, net 600
 92
 30,844
 11,251
(Gain) on sale of other assets —
 —
 (6,625) —
Terminated merger costs —
 —
 —
 230
Refinancing costs —
 —
 —
 (34)
Other non-recurring items (as defined) 805
 1,721
 3,264
 6,823
Adjusted EBITDA (1)
 $(57,273) $(61,794) $395,475
 $371,905
         
(1) As permitted by and defined in the 2013 Credit Agreement    

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Results of Operations:

Our results of operations for the nine, three and twelve months ended September 30, 2012 and September 25, 2011 are not directly comparable as the current nine- and twelve month periods include an additional week of operations due to the timing of the fiscal third quarter close, and as the current three-month period includes fewer operating days due to the timing of the fiscal second and third quarter closes. Since a large portion of the variances in our statements of operations is due to the difference in the number of operating days in the current fiscal periods, we will also compare current operating results to the prior year period ended October 2, 2011.

Immaterial Restatement -

We have made two separate corrections relating to our use of the composite depreciation methodmethod.

The first correction, which impacts the Balance Sheet at March 25, 2012 and the Statement of Operations and Other Comprehensive Income for the group3 and 12 month periods ended March 25, 2012, related to a misapplication of assets acquired as a whole in 1983, as well as for groups of assets in each subsequent business acquisition.the composite depreciation method. Upon the normal retirement of an asset within a composite group, our practice generally hashad been to extend the depreciable life of that composite group beyond its original estimated useful life. In conjunction with the preparation of our financial statements for the three months ended July 1,in 2012, wemanagement determined that this methodology was not appropriate. As a result, we revised the useful lives of our composite groups to their original estimated useful life (ascribed upon acquisition) and corrected previously computed depreciation expense (and accumulated depreciation).

The second correction, which impacts the Balance Sheet at March 25, 2012 and the Statement of Operations and Other Comprehensive Income for the 12 month period ended March 25, 2012, reflects a subsequent determination that a disposition from our composite group of assets was considered to be unusual. In certain situations under the composite method, disposals are considered unusual and, accordingly, losses are not included in the composite depreciation pool but are rather charged immediately to expense. In 2013, the Partnership's initial determination of whether a specific asset retired under the composite method of depreciation in 2011 was normal was challenged by the SEC Staff. We evaluated the amount and nature of these adjustments andultimately concluded that theysuch disposition was unusual and that a $8.8 millioncharge be reflected in the 2011 financial statements.

First Quarter -

Operating results for the first quarter historically include less than 5% of our full-year revenues and attendance. The results include normal off-season operating, maintenance and administrative expenses at our ten seasonal amusement parks and four outdoor water parks, as well as daily operations at Knott's Berry Farm, which is open year-round, and Castaway Bay, which is generally open daily from Memorial Day to Labor Day plus a limited daily schedule for the balance of the year.
The following table presents key financial information for the three months ended March 31, 2013 and March 25, 2012:
  Three months ended Three months ended Increase (Decrease)
  3/31/2013 3/25/2012 $ %
  (13 weeks) (12 weeks)    
    (As restated)    
  (Amounts in thousands)
Net revenues $41,799
 $28,198
 $13,601
 48.2 %
Operating costs and expenses 102,733
 93,356
 9,377
 10.0 %
Depreciation and amortization 4,786
 4,079
 707
 17.3 %
Loss on impairment / retirement of fixed assets 600
 92
 508
 N/M
Operating loss $(66,320) $(69,329) $3,009
 (4.3)%
         
Other Data:        
Adjusted EBITDA $(57,273) $(61,794) $4,521
 (7.3)%

For the quarter ended March 31, 2013, net revenues increased to $41.8 million from $28.2 million for the first quarter of 2012. The increase between periods was primarily due to the strong first-quarter performance in both attendance and per-capita spending at Knott's Berry Farm, our only year-round property, compared with the first quarter a year ago, as well as an extra week of operations due to the earlier timing of Easter in 2013 compared to 2012. At the end of the first quarter, only five of our 15 properties were not materialin operation. The other parks, including our larger parks, Cedar Point and Kings Island located in Ohio and Canada's Wonderland in Toronto, were in the final stages of preparing to eitheropen for the 2013 operating season.

Operating costs and expenses for the quarter increased $9.3 million to $102.7 million from $93.4 million in 2012 and were in line with expectations. Operating results for the first quarter include normal off-season operating, maintenance and administrative

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expenses at our prior annualseasonal amusement and water parks, and daily operations at Knott’s Berry Farm and Castaway Bay. The increase in first-quarter costs reflects a $5.4 million increase in operating expenses and a $2.3 million increase in selling, general and administrative ("SG&A") expenses. The cost of food, merchandise and games revenues for the period increased slightly due to sales volume increases at Knott's Berry Farm in the first quarter of 2013. The $5.4 million increase in operating expenses was due primarily to the extra week of operations in the first quarter of 2013 compared with 2012. For the quarter, labor costs increased $3.8 million, maintenance expense increased $2.2 million and operating supplies increased $0.9 million. These increases in operating costs were somewhat offset by a reduction in insurance expense due to a prior-year, non-recurring public liability claim at one of our parks. The $2.3 million increase in SG&A expenses was due primarily to increases in first-quarter advertising fees and full-time labor costs, largely related to full staffing levels.

Interest expense for the first quarter of 2013 was $25.8 million, representing a $1.0 million decrease compared to the first quarter of 2012. The decrease in interest expense was primarily due to the settlement of our Canadian swap in the first quarter of 2012.

During the first quarter of 2013, the net effect of our swaps decreased $10.2 million to a non-cash charge to earnings of $9.2 million, reflecting the regularly scheduled amortization of amounts in AOCI related to interest rate swaps, the write off of amounts in AOCI related to de-designated interest rate swaps, as well as gains from marking the ineffective and de-designated swaps to market. During the first quarter of 2013 we also recognized a $9.0 million charge to earnings for unrealized/realized foreign currency gains and losses, $8.9 million of which represents an unrealized foreign currency loss on the U.S.-dollar denominated debt held at our Canadian property. Due to our March 2013 refinancing, loan fees related to our 2010 and 2011 financings were written off, resulting in a $34.6 million charge to earnings in the period.

During the quarter, a benefit for taxes of $35.7 million was recorded to account for publicly traded partnership (PTP) taxes and the tax attributes of our corporate subsidiaries, compared to a benefit for taxes of $21.5 million in the same period a year ago. Actual cash taxes paid or quarterly financial statements. Nonetheless, the historical financial statement amounts included in this filing have been corrected for this error. We expect to likewise correct previously presented historical financial statementspayable are estimated to be included in future filings, including the annual financial statements to be included in our Annual Report on Form 10-Kbetween $14-$17 million for the 2013 calendar year.

After interest expense and the provision for taxes, net loss for the quarter totaled $109.1 million, or $1.95 per diluted limited partner unit, compared with net loss of $65.4 million, or $1.18 per diluted limited partner unit, for the first quarter a year ending December 31, 2012.ago. The larger net loss for the period is due to the loss on early debt extinguishment and a change in the unrealized/realized loss on foreign currency exchange, offset somewhat by the increased first-quarter revenues.


NineTwelve Months Ended September 30, 2012March 31, 2013 -

The fiscal nine-monthtwelve-month period ended September 30, 2012,March 31, 2013, consisted of a 39-week53-week period and included a total of 2,178 operating days compared with 3852 weeks and 2,148 operating days for the fiscal nine-monthtwelve-month period ended SeptemberMarch 25, 2011.2012. Operating days were virtually identical, as the current period had only one additional operating day.

The following table presents key financial information for the ninetwelve months ended September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012:
  Nine months ended Nine months ended Increase (Decrease)
  9/30/2012 9/25/2011 $ %
  (39 weeks) (38 weeks)    
  (Amounts in thousands except per capita spending)
         
Net revenues $939,249
 $883,627
 $55,622
 6.3 %
Operating costs and expenses 580,246
 541,665
 38,581
 7.1 %
Depreciation and amortization 113,156
 110,857
 2,299
 2.1 %
Loss on impairment / retirement of fixed assets, net 24,230
 1,076
 23,154
 N/M
Operating income $221,617
 $230,029
 $(8,412) (3.7)%
N/M - Not meaningful        
Other Data:        
Adjusted EBITDA $365,477
 $346,441
 $19,036
 5.5 %
Adjusted EBITDA margin 38.9% 39.2% $—
 (0.3)%
Attendance 20,689
 20,114
 575
 2.9 %
Per capita spending $41.78
 $40.15
 $1.63
 4.1 %
Out-of-park revenues $99,526
 $97,622
 $1,904
 2.0 %
  Twelve months ended Twelve months ended Increase (Decrease)
  3/31/2013 3/25/2012 $ %
  (53 weeks) (52 weeks)    
    (As restated)    
  (Amounts in thousands)
Net revenues $1,082,055
 $1,029,801
 $52,254
 5.1%
Operating costs and expenses 694,139
 666,535
 27,604
 4.1%
Depreciation and amortization 127,013
 125,892
 1,121
 0.9%
(Gain) on sale of other assets (6,625) —
 (6,625) N/M
Loss on impairment/retirement of fixed assets 30,844
 11,251
 19,593
 174.1%
Operating income $236,684
 $226,123
 $10,561
 4.7%
N/M - Not meaningful        
Other Data:        
Adjusted EBITDA $395,475
 $371,905
 $23,570
 6.3%
Adjusted EBITDA margin 36.5% 36.1% —
 0.4%


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Net revenues totaled $1,082.1 millionfor the ninetwelve months ended September 30, 2012March 31, 2013, increasing $52.3 million, from $1,029.8 million increased $55.6 million to $939.2 million from $883.6 million duringfor the ninetrailing twelve months ended SeptemberMarch 25, 20112012. The increase in revenues reflects an increase of 575,000 visits, or 3%, in combined attendanceRevenues for the nine-monthtwelve-month period ended September 30, 2012 when compared withincreased 5% on the nine-month period ended September 25, 2011. The increase in revenues also reflects a 4%, or $1.63, increase in averagestrength of higher attendance and in-park guest per capita spending. In-park guest per capita spending represents the amount spent per attendee to gain admission to a park, plus all amounts spent while inside the park gates. The increase in per capita spending was largely due to the successful introduction of new premium benefit offerings and the positive impact of new customer messaging and dynamic pricing initiatives. Attendance increased year-over-year on virtually the same number of operating days as our season pass sales and visits increased during the same nine-month period and a 2%, or $1.9 million, increase incomparable periods.

Meanwhile, out-of-park revenues. Out-of-park revenues, includewhich represents the sale of hotel rooms, food, merchandise and other complementary activities located outside of the park gates, as well as e-commerce transaction fees. In-park guest per capita spending representsincreased slightly in the average amount spent per attendee to gain admission to a park

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plus all amounts spent while inside the park gates. Revenuescomparable periods. The increase in net revenues for the first ninetwelve months of the yearended March 31, 2013 also reflectreflects the negative impact of currency exchange rates and the weakening U.S. dollar on our Canadian operations ($4.5(approximately $4.5 million) during the period.

For the nine-month period ended September 30, 2012, operatingOperating costs and expenses increased 7%$27.6 million, or 4%, or $38.5to $694.1 million to $580.2 million from $541.7versus $666.5 million for 2012 and were in line with expectations. The increase in costs and expenses was the nine-month period ended September 25, 2011, the net result of a $3.9$4.0 million increase in cost of goods sold, a $29.3$19.8 million increase in operating expenses, and a $5.4 million$3.9 increase in selling, generalSG&A costs. The 4% increase in cost of goods sold is consistent with anticipated cost increases associated with our efforts to improve the quality of food and other product offerings at our parks. Operating expenses increased due to several factors, including higher employment-related costs, higher operating supply costs, and higher self-insurance expenses. Employment-related costs increased approximately $12.6 million due to normal merit increases, increases in health-related benefit costs, additional staffing levels associated with new premium benefit offerings and other initiatives aimed at improving the overall guest experience, and non-recurring severance payments. Operating supplies and expenses increased approximately $5.3 million due primarily to initiatives to expand or enhance live entertainment at the parks, as well as incremental costs associated with our e-commerce platform and higher attendance. These increases in operating costs were somewhat offset by a reduction in insurance expense due to a prior-year (first quarter of 2012), non-recurring public liability claim at one of our parks.

The increase in SG&A costs was due to an increase in employment-related costs ($4.5 million), operating supplies ($3.8 million), and agency advertising fees ($2.7 million), offset by decreases in professional and administrative costs ("SG&A")($5.9 million). DepreciationThe increase in employment costs was primarily the result of higher wages and amortization expense for the period increased $2.3 millionbenefits due to normal merit increases and full-staffing levels. Increases in operating supplies and advertising fees were due to the earlier timing of Easter, as well as incremental costs to support operating initiatives including general infrastructure improvements. Professional and administrative fees decreased primarily due to a reduction in litigation expenses and costs for SEC compliance matters related to Special Meeting requests. The overall increase in capital spending when compared withcosts and expenses also reflects the prior year. The positive impact of exchange rates on our Canadian operations ($1.2 million) during the period.

Loss on impairment/retirement of fixed assets, reported fornet, during the nine-month period totaled $30.8 million, which reflects a non-cash charge to earnings of $25.0 million for the partial impairment of operating and non-operating fixed assets at Wildwater Kingdom netalong with losses on other retirements. During the twelve-month period ended March 31, 2013, two non-core assets were sold at gains totaling $6.6 million. During the twelve-month period ended March 25, 2012, a charge of an $0.8$11.3 million gain fromfor the sale of a non-operating asset at one of our properties. After depreciation, amortization, loss on impairment / retirement of fixed assets was recorded which includes the retirement of the asset as described in Note 11 to the financial statements.

Depreciation and amortization expense for the period increased $1.1 million compared with the prior period due primarily to an increase in capital expenditures for the 2012 season. After depreciation and amortization, as well as impairment charges and all other non-cash costs, operating income for the current period decreased $8.4increased $10.6 million to $221.6$236.7 million through the first nine months of 2012 from operating income of $230.0 million through the first nine months of 2011.$226.1 million.

Interest expense for the first three quarters of 2012 was $83.9twelve months ended March 31, 2013 decreased $33.3 million a decrease of $40.7to $109.6 million, from $142.9 million for the first three quarters of 2011.same twelve-month period a year ago. The reduction in interest expense iswas primarily attributable to an approximate 300 basis point (bps) decline in our effective interest rate, the result of lower fixed rates on London InterBank Offered Rate (LIBOR) within our interest-rate swap contracts. TheAdditionally during the current period, $25.0 million of term debt principal payments were made, reducing our average fixed LIBOR rate in our swap agreements declined from 5.62% in 2011 to 2.48% in 2012.debt outstanding.

ForDuring the current period, the net effect of our interest rate swaps decreased $2.2was recorded as a charge to earnings of $8.7 million between years, resulting incompared to a non-cash benefit to earnings of $1.3$16.0 million for the first nine months of 2012, as compared with a $3.5 million non-cash benefit to earnings for the nine-month period in 2011.prior period. The difference reflects the regularly scheduled amortization of amounts in Accumulated other comprehensive income ("AOCI")AOCI related to the swaps and the write off of AOCI amounts related to de-designated interest rate swaps, which were offset by gains from marking the ineffective and de-designated swaps to market and foreign currency gains related to the U.S.-dollar denominated Canadian term loan in the current period. During the current year-to-date period, we also recognized a $13.9$8.2 million net benefitcharge to earnings for unrealized/realized foreign currency gains,losses, which included a $14.1$7.9 million unrealized foreign currency gainloss on the U.S.-dollar denominated debt held at our Canadian property. Due to our March 2013 refinancing, loan fees that were paid as part

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of our 2010 and 2011 financings were written off, resulting in a $34.6 million non-cash charge to earnings recorded in "Loss on early debt extinguishment" on the consolidated statement of operations.

During the first fiscal nine months of 2012, aA provision for taxes of $41.4$17.6 million was recorded to accountin the period for publicly traded partnership (“PTP”) taxes and the tax attributes of our corporate subsidiaries.subsidiaries and publicly traded partnership (PTP) taxes. This compares with a $21.8 million provision for taxes of $5.9 million in period ended March 25, 2012 for the first fiscal nine monthstax attributes of 2011. The year-over-year variation in the tax provision is due primarily to an increase in the income subject to tax. Actual cash taxes paid or payable for the 2012 calendar year are estimated to be between $11our corporate subsidiaries and $13 million. The Partnership also expects to receive a $10.4 million refund of prior year taxes paid resulting from the carry back of the loss recognized from the settlement of a derivative contract.PTP taxes.

After interest expense and the benefitprovision for taxes, net income for the nine months ended September 30, 2012period totaled $111.6$58.1 million, or $2.00$1.04 per diluted limited partner unit, compared with net income of $71.6$84.8 million, or $1.28$1.52 per unit, for the nine months ended September 25, 2011.a year ago.

It is important to note that the current nine-month results benefited from an additional week, or 30 more operating days, due to the timing of the third quarter fiscal close. Comparing both 2012 and 2011 on a 39-week basis, net revenues would have been up $41.1 million, or 5%, on increases in both attendance and in-park guest per capita spending. On a comparable basis, attendance would have increased 228,000 visits, primarily due to an increase in season pass attendance, and in-park per capita spending would have increased $1.67, or 4%, primarily due to new premium benefit offerings and the positive impact of new customer messaging and dynamic pricing. Over that same comparable basis, out-of-park revenues would have decreased by approximately $0.3 million, or less than 1%.

Operating costs and expenses on a comparable 39-week basis would have increased approximately $27.9 million, or 5%, due to an increase of $2.9 million, or 3%, in cost of goods sold, an increase in operating expenses of $21.9 million, or 6%, and an increase of $3.1 million, or 3%, in SG&A costs. The overall increase in costs and expenses also reflects the positive impact of exchange rates on our Canadian operations (approximately $1.6 million) during the nine-month period ended September 30, 2012.

The 3% increase in cost of goods sold is consistent with anticipated cost increases associated with our efforts to improve the quality of food and other product offerings at the parks in 2012. Operating expenses in the 39-week period increased due to several factors, including higher employment-related costs, higher maintenance and operating supply costs, and higher self-insurance expenses. Employment-related costs increased approximately $11.0 million due to normal merit increases, increases in health-related benefit costs, additional staffing levels associated with new premium benefit offerings and other initiatives aimed at improving the overall guest experience, and non-recurring severance payments. Due in part to mild weather, we were able to accelerate off-season maintenance projects into the first half of the year, resulting in year-over-year maintenance expense increasing by approximately $4.4 million. Operating supplies and expenses increased approximately $4.0 million due primarily to initiatives

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to expand or enhance live entertainment at the parks, as well as incremental costs associated with our new e-commerce platform. During the first nine months, public liability and workers compensation expense increased $2.1 million due to claim settlements and an increase in our reserves based on management's estimates of future claims.

SG&A expense for the comparable 39-week period increased approximately $3.1 million compared to same period in 2011 due to an increase in operating supplies of $4.7 million, an increase in advertising costs of $1.5 million, and an increase in employee related costs of $2.9 million. The operating supplies and advertising increases were due to incremental costs to support 2012 operating initiatives including general infrastructure improvements. These increases in expense were offset somewhat by a reduction in litigation expenses and costs for SEC compliance matters related to Special Meeting requests in 2011.

For the fiscal nine-month period ended September 30, 2012,We believe Adjusted EBITDA (as defined in the Amended 2010 Credit Agreement), which we believe is a meaningful measure of our park-level operating results (for additional information regarding Adjusted EBITDA, including how we define and use Adjusted EBITDA, as well as a reconciliation from net income, see Note 6 in Item 6, “Selected Financial Data,” on pages 15-16). For the twelve-month period ended March 31, 2013, Adjusted EBITDA increased $23.6 million, or 6%, to $365.5 million compared with $346.4 million$395.5 million. Over this same period, our Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) increased 40 bps to 36.5% from 36.1% for the fiscal nine-monthtwelve-month period ended SeptemberMarch 25, 2011. This2012. The increase was due in part to the extra week in the current fiscal nine-month period. On a same-week basis, Adjusted EBITDA for the nine-month period would have still been up approximately $15.2 million, or 4%, between years,was primarily due to anthe increase in revenues resulting from the successful introduction of our new premium benefit offerings and dynamic pricing initiatives, as well as the successful expansion of our season pass base. These revenue gains were offset somewhat by an increase in operating costs in the period. For additional information regarding Adjusted EBITDA, including how we define Adjusted EBITDA, why we believe it provides useful information, and for a reconciliation to net income, see pages 33-34.

Third Quarter -

The fiscal three-month period ended September 30, 2012, consisted of a 13-week period and included a total of 1,177 operating days compared with 13 weeks and 1,253 operating days for the fiscal three-month period ended September 25, 2011. The variance in days is due to a shift in the operating calendar.

The following table presents key financial information for the three months ended September 30, 2012 and September 25, 2011:
  Three months ended Three months ended Increase (Decrease)
  9/30/2012 9/25/2011 $ %
  (13 weeks) (13 weeks)    
  (Amounts in thousands)
Net revenues $553,445
 $572,268
 $(18,823) (3.3)%
Operating costs and expenses 263,657
 262,188
 1,469
 0.6 %
Depreciation and amortization 60,747
 63,448
 (2,701) (4.3)%
Loss on impairment / retirement of fixed assets 25,000
 880
 24,120
 N/M
Operating income $204,041
 $245,752
 $(41,711) (17.0)%
N/M - Not meaningful        
Other Data:        
Adjusted EBITDA $292,309
 $309,704
 $(17,395) (5.6)%
Adjusted EBITDA margin 52.8% 54.1% —
 (1.3)%
Attendance 11,960
 12,933
 (973) (7.5)%
Per capita spending $42.90
 $40.84
 $2.06
 5.0 %
Out-of-park revenues $54,260
 $58,879
 $(4,619) (7.8)%

For the quarter ended September 30, 2012, net revenues decreased 3%, or $18.8 million, to $553.5 million from $572.3 million in 2011. This decrease reflects a 5% increase in average in-park per capita spending, offset by an 8% decrease in combined attendance (973,000 visits), and an 8% ($4.6 million) decrease in out-of-park revenues. The decreases in net revenues and attendance was largely attributable to the decrease in operating days in the quarter due to the way the fiscal calendar fell in 2012 compared with 2011. In-park per capita spending increased primarily due to new premium benefit offerings and the positive impact of new customer messaging and dynamic pricing. Out-of-park revenues decreased due to soft results in accommodations being somewhat offset by fees generated from our new e-commerce initiatives. The decrease in revenues for the third quarter of 2012 also reflects the negative impact of exchange rates on our Canadian operations ($2.4 million) during the period.


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Operating costs and expenses for the quarter increased less than 1%, or $1.5 million, to $263.7 million from $262.2 million in the third quarter of 2011, the net result of a $1.4 million decrease in cost of goods sold, a $1.9 million increase in operating expenses and a $1.0 million increase in SG&A costs. Operating cost and expense variances between years were also affected by the fewer number of operating days in the current fiscal quarter, as discussed above. Depreciation and amortization expense for the quarter decreased $2.7 million due primarily to the reduction in operating days in the period, on which depreciation expense is based. During the current quarter, we recognized a non-cash charge to earnings of $25.0 million for the partial impairment of operating and non-operating fixed assets at Wildwater Kingdom.

Interest expense for the third quarter of 2012 was $26.9 million, representing an $14.5 million decrease from the interest expense for the third quarter of 2011. As mentioned in the nine-month discussion above, interest expense decreased primarily due to an approximate 300 bps decline in our effective interest rate. The decline in the effective interest rate is primarily due to lower fixed rates of LIBOR in debt associated derivative contracts, which declined from 5.62% in 2011 to 2.48% in 2012.

The net effect of our swaps during the third quarter was a non-cash benefit to earnings of $0.2 million, representing a decrease of $3.8 million from the prior year. This non-cash benefit reflects the regularly scheduled amortization of amounts in AOCI related to the swaps. During the 2012 third quarter, we also recognized a $15.0 million net benefit to earnings for unrealized/realized foreign currency gains, $14.7 million of which represents an unrealized foreign currency gain on the U.S.-dollar denominated debt held at our Canadian property.

During the quarter, a provision for taxes of $51.7 million was recorded to account for PTP taxes and the tax attributes of our corporate subsidiaries, compared to a provision for taxes of $37.8 million in the same period a year ago. The variation in the tax provision recorded between periods is due primarily to the increase in income subject to tax. After interest expense and the provision for taxes, net income for the quarter totaled $140.7 million, or $2.51 per diluted limited partner unit, compared with net income of $152.2 million, or $2.73 per unit, for the third quarter a year ago.

It is important to note that the current three-month results were negatively impacted by 76 less operating days, due to the timing of the second and third quarter fiscal closes. Comparing the third quarters of 2012 and 2011 on a comparable operating-day basis, net revenues would have been up $20.8 million, or 4%, on an increase in average in-park guest per capita spending offset by a slight decrease in attendance and a 3% decrease in out-of-park revenues.

Operating costs and expenses on a comparable operating-day basis would have increased approximately $12.4 million, or 5%, on a $2.1 million increase in cost of goods sold, an $8.4 million increase in operating expenses, and $1.9 million increase in SG&A costs. The overall increase in costs and expenses also reflects the positive impact of exchange rates on our Canadian operations (approximately $0.6 million) during the third quarter. The increase in cost of goods sold is consistent with anticipated cost increases associated with our efforts to improve the quality of food and other product offerings at the parks in 2012. Consistent with our nine-month discussion above, operating expenses in the third quarter increased as a result of higher employment-related costs, higher maintenance and operating supply costs, and higher self-insurance expenses. The increase in SG&A expense for the quarter reflects an increase in operating supplies associated with the new e-commerce initiative and general park infrastructure improvements, offset slightly by a reduction in litigation expenses and costs for SEC compliance matters related to Special Meeting requests in the third quarter of 2011.

For the current quarter, Adjusted EBITDA decreased to $292.3 million from $309.7 million for the fiscal third quarter of 2011. The $17.4 million decrease in Adjusted EBITDA was due to the shift in operating days during the quarter. On a same week basis, Adjusted EBITDA would have increased $11.3 million due to incremental revenues resulting from the introduction of new premium benefit offerings, which contributed to increased average guest per capita spending, as well as an increase in attendance in the quarter. Partially offsetting these gains on a same week basis were higher park-level operating costs during the period related to park pre-opening and off-season maintenance projects and increases in costs to support 2012 initiatives, including a new e-commerce platform and infrastructure improvements. For additional information regarding Adjusted EBITDA, including how we define Adjusted EBITDA, why we believe it provides useful information, and for a reconciliation to net income, see pages 33-34.










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Twelve Months Ended September 30, 2012 -

The fiscal twelve-month period ended September 30, 2012, consisted of a 53-week period and included a total of 2,416 operating days compared with 52 weeks and 2,381 operating days for the fiscal twelve-month period ended September 25, 2011.

The following table presents key financial information for the twelve months ended September 30, 2012 and September 25, 2011:
  Twelve months ended Twelve months ended Increase (Decrease)
  9/30/2012 9/25/2011 $ %
  (53 weeks) (52 weeks)    
  (Amounts in thousands)
Net revenues $1,084,094
 $1,013,316
 $70,778
 7.0%
Operating costs and expenses 701,915
 650,925
 50,990
 7.8%
Depreciation and amortization 128,136
 126,382
 1,754
 1.4%
Loss on impairment of goodwill and other intangibles —
 903
 (903) N/M
Loss on impairment/retirement of fixed assets 25,719
 63,509
 (37,790) N/M
Operating income $228,324
 $171,597
 $56,727
 33.1%
N/M - Not meaningful        
Other Data:        
Adjusted EBITDA $393,612
 $366,376
 $27,236
 7.4%
Adjusted EBITDA margin 36.3% 36.2% —
 0.2%
Attendance 23,961
 23,135
 826
 3.6%
Per capita spending $41.44
 $39.91
 $1.53
 3.8%
Out-of-park revenues $119,460
 $114,258
 5,202
 4.6%

Net revenues totaled $1,084.1 million for the twelve months ended September 30, 2012, increasing $70.8 million, from $1,013.3 million for the trailing twelve months ended September 25, 2011. The increase in revenues was due to an increase in attendance of 826,000 visits, or 4%, an increase in average in-park per capita spending of $1.53, or 4%, and an increase in out-of-park revenues of $5.2 million, or 5%. The attendance increase was due to an increase in season pass visitation as well as the effect of the extra operating days in the period. The increase in average in-park guest per capita spending is primarily due to new premium benefit offerings and the positive impact from new customer messaging and dynamic pricing. Out-of-park revenues increased due to our hotel properties and due to an increase in fees generated by our new e-commerce initiatives. The increase in revenues was also positively affected by the additional operating days in the current fiscal period.

When comparing the two twelve-month periods, operating costs and expenses increased $51.0 million, or 8%, to $701.9 million in 2012 from $650.9 million in 2011. The increase in operating costs and expenses was the net result of a $5.2 million increase in cost of goods sold, a $33.2 million increase in operating expenses and an increase of $12.6 million in selling, general and administrative costs. The increase in operating expenses is primarily attributable to higher employment related expenses of $15 million, $6 million of higher maintenance costs, $1 million in higher insurance costs, and $5 million of higher operating supply costs. The increase in wages is largely due to increased seasonal labor hours as a result of expanded operating hours at several parks, additional attractions and guest services, and the overall effect of increased attendance. The increase in insurance costs was primarily the result of claim settlements and increases in our reserves based on future estimated claim liabilities. As discussed in the nine- and three-month sections, maintenance costs increased primarily due to the earlier timing of planned off-season projects, as well as an increase in the number of projects designed to add to the guest experience. The increase in operating supply costs relates primarily to an increase in attendance over the past year, as well as incremental costs associated with the new e-commerce platform. The increase in SG&A costs includes $5 million in costs largely related to the launching of several new revenue initiatives for the 2012 season, as well as a $3 million increase in advertising expense as we transitioned to a new advertising agency for 2012. Employment related expenses increased $5 million primarily due to the receipt of a non-recurring payroll tax credit of $2.5 million recorded in the fourth quarter of 2010, as well as an increase in retirement expenses and non-recurring severance payments in the current twelve-month period. The overall increase in costs and expenses also reflects the positive impact of exchange rates on our Canadian operations (approximately $1.6 million) during the twelve-month period ended September 30, 2012.

Depreciation and amortization expense for the trailing-twelve-month periods increased $1.8 million between years due to the increase in capital spending during the current-year period compared with the prior year. During the twelve months ended September 30, 2012, we recognized $0.7 million in non-cash charges for the retirement of assets in the normal course of business. Additionally, we recorded a non-cash charge of $25.0 million for the partial impairment of operating and non-operating fixed

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assets at Wildwater Kingdom during the third quarter in 2012. This compares to a non-cash charges recognized during the twelve-month period ended September 25, 2011 of $62.0 million at California's Great America for the partial impairment of its fixed assets and $1.5 million for asset retirements across all properties. Additionally, a non-cash charge of $0.9 million was recorded during the fourth quarter of 2010 for the partial impairment of trade-names originally recorded at the time of the PPI acquisition. It is important to note that each of our parks produces positive cash flow, and that trade-name write-downs and fixed asset impairment losses do not affect cash, Adjusted EBITDA or liquidity.

After depreciation, amortization, loss on impairment of the trade-names, loss on impairment / retirement of fixed assets, and all other non-cash costs, operating income for the twelve months ended September 30, 2012 increased $56.7 million to $228.3 million compared with $171.6 million for the same period a year ago.

Interest expense for the twelve month period ended September 30, 2012 decreased $54.6 million to $116.4 million from $171.0 million for the prior twelve month period ended September 25, 2011. As mentioned in the nine-month discussion above, interest expense decreased primarily due to an approximate 300 bps decline in our effective interest rate. The decline in the effective interest rate is primarily due to lower fixed rates of LIBOR in debt associated derivative contracts, which declined from 5.62% in 2011 to 2.48% in 2012.

The net effect of our swaps during the period was a non-cash benefit to earnings of $10.9 million, representing an increase of $12.7 million from the same period ended September 25, 2011. This non-cash benefit reflects gains from marking the ineffective and de-designated swaps to market, offset somewhat by the regularly scheduled amortization of amounts in AOCI related to the swaps and foreign currency losses related to the U.S.-dollar denominated Canadian term loan in the current twelve month period. During the current twelve-month period, we also recognized a $18.7 million net benefit to earnings for unrealized/realized foreign currency gains and losses, $17.5 million of which represents an unrealized foreign currency gain on the U.S.-dollar denominated debt held at our Canadian property.

A provision for taxes of $30.8 million was recorded to account for PTP taxes and the tax attributes of our corporate subsidiaries during the twelve-month period ended September 30, 2012, compared with a net benefit for taxes of $12.4 million during the same twelve-month period a year ago. The variation in the recorded tax provision between periods is due to the higher income subject to tax for the twelve-month period ending September 30, 2012 and the tax benefit of the impairment charge recorded in the previous twelve-month period.

After interest expense and the provision for taxes, net income for the twelve months ended September 30, 2012 was $110.8 million, or $1.98 per diluted limited partner unit, compared with net income of $8.1 million, or $0.15 per diluted limited partner unit, for the twelve months ended September 25, 2011.

It is important to note that due to the timing of the third quarter fiscal close results for the twelve-month period ended September 30, 2012 benefited from an additional week (53 weeks) compared to the twelve-month period ended September 25, 2011 (52 weeks). Comparing the twelve-month periods for both 2012 and 2011 on a 53-week basis, net revenues would have been up $56.2 million, or 5%, on increases in attendance, in-park guest per capita spending and out-of-park revenues. On a comparable 53-week basis, attendance would have increased 479,000 visits, due to an increase in season pass attendance, and in-park per capita spending would have increased $1.56, or 4%, primarily due to new premium benefit offerings and the positive impact of new customer messaging and dynamic pricing. Over that same comparable basis, out-of-park revenues would have increased by approximately $3.5 million, or 3%.

On a comparable 53-week basis, operating costs and expenses would have increased approximately $40.3 million, or 6%, on a $4.2 million increase in cost of goods sold, an $25.8 million increase in operating expenses, and $10.4 million increase in SG&A costs. The overall increase in costs and expenses also reflects the favorable impact of exchange rates on our Canadian operations (approximately $1.6 million) during the period. The increase in cost of goods sold is consistent with anticipated cost increases associated with our efforts to improve the quality of food and other product offerings at the parks in 2012. Consistent with our nine- and three-month discussions above, operating expenses for the twelve-month period increased as a result of higher employment-related costs, higher maintenance and operating supply costs, and higher self-insurance expenses. The higher employment-related costs reflect normal merit increases, increases in health-related benefit costs, an overall increase in seasonal labor hours as a result of expanded operating hours at several parks, additional attractions and guest services, the overall effect of increased attendance, and non-recurring severance payments. Employment related costs also increased as result of the non-recurring payroll tax credit of $2.5 million recorded in the fourth quarter of 2010. The higher maintenance costs in the current-year twelve-month period relate primarily to the earlier timing of planned off-season projects, which was possible as a result of the mild early-season weather in 2012. The increase in operating supplies was driven by higher attendance and new initiatives to expand or enhance live entertainment at the parks, as well as incremental costs associated with our new e-commerce platform. The increase in public liability and workers compensation expense was the result of a claim settlement in the first quarter of 2012

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and increases in our reserves based on management's estimates of future claims. The higher SG&A costs reflect incremental costs associated with the launching of several new revenue initiatives for the 2012 season, including the new e-commerce platform, general park infrastructure improvements, and an increase in advertising expenses as we transitioned to a new advertising agency for 2012. These increases in SG&A costs were somewhat offset by a reduction in litigation expenses and costs for SEC compliance matters related to Special Meeting requests in 2011.

For the twelve-month period ended September 30, 2012, Adjusted EBITDA increased to $393.6 million compared with $366.4 million for the twelve months ended September 25, 2011, while our Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) increased slightly to 36.3% from 36.2% a year ago. A portion of this increase in Adjusted EBITDA was due to the extra week in the current fiscal twelve-month period. On a same-week basis, Adjusted EBITDA would have been up $23.4 million, or 6%, year over year, due to revenue growth driven by increased attendance and the strong 2011 fourth quarter operating performance. These gains were offset somewhat by incremental operating costs associated with the higher attendance and new operating initiatives for 2012. For the comparable twelve-month periods, our Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) would have increased 30 bps to 36.3% from 36.0% last year. For additional information regarding Adjusted EBITDA, including how we define Adjusted EBITDA, why we believe it provides useful information, and for a reconciliation to net income, see pages 33-34.
October 2012 -

Based on preliminary results through the end of October, revenues for the first ten months of the year increased approximately $37 million to $1,036 million from $999 million for the same period a year ago. The revenue increase is the result of a 4% increase in average in-park guest per capita spending to $42.00 and attendance levels that were comparable with last year's record results (22.7 million visits). Out-of-park revenues of approximately $108 million through October were also comparable with this time last year.

Liquidity and Capital Resources:
With respect to both liquidity and cash flow, we ended the thirdfirst quarter of 20122013 in sound condition. The negative working capital ratio (current assetsliabilities divided by current liabilities)assets) of 1.01.4 at September 30, 2012March 31, 2013 reflects the impact of our seasonal business. Cash, receivables and inventories are at normal seasonal levels and credit facilities are in place to fund current liabilities.

In July 2010, we issued $405 million of 9.125% senior unsecured notes, maturing in 2018, in a private placement, including $5.6 million of Original Issue Discount (OID) to yield 9.375%. Concurrently with this offering, we entered into a new $1,435 million credit agreement (the "2010 Credit Agreement"), which included a $1,175 million senior secured term loan facility and a $260 million senior secured revolving credit facility. The net proceeds from the offering of the notes, along with borrowings under the 2010 Credit Agreement, were used to repay in full all amounts outstanding under our previous credit facilities.

In February 2011, we amended the 2010 Credit Agreement (as so amended, the "Amended 2010 Credit Agreement") and extended the maturity date of the U.S. term loan portion of the credit facilities by one year. Under the Amended 2010 Credit Agreement, the extended U.S. term loan iswas scheduled to mature in December of 2017 and bearsbore interest at a rate of LIBOR plus 300 bps, with a LIBOR floor of 100 bps.
The Amended 2010 Credit Agreement also includesincluded a $260 million revolving credit facility. Under the agreement, the Canadian portion of the revolving credit facility has a limit of $15 million. U.S. denominated loans made under the revolving credit facility bear interest at a rate of LIBOR plus 400 bps (with no LIBOR floor). Canadian denominated loans made under the Canadian portion of the facility also bear interest at a rate of LIBOR plus 400 bps (with no LIBOR floor). The revolving credit facility, which matureswas scheduled to mature in July of 2015, also providesprovided for the issuance of documentary and standby letters of credit.

In May 2012, the Partnership prepaidMarch 2013,we issued $16500 million of long-term debt to meet its obligation5.25% senior unsecured notes, maturing in 2021, in a private placement, with no OID. Concurrently with this offering, we entered into a new $885 million credit agreement (the "2013 Credit Agreement"), which included a $630 million senior secured term loan facility and a $255 million senior secured revolving credit facility. The terms of the senior secured term loan facility include a maturity date of March 15, 2020 and an interest rate of LIBOR plus 250 bps with a LIBOR floor of 75 bps. The term loan amortizes at $6.3 million annually. The net proceeds from the notes and borrowings under the Excess Cash Flow ("ECF") provision2013 Credit Agreement were used to repay in full all amounts outstanding under the previous credit facilities. The facilities provided under the 2013 Credit Agreement are collateralized by substantially all of the assets of the Partnership.

Terms of the 2013 Credit Agreement. AsAgreement include a resultrevolving credit facility of this prepayment, as well as additional optional long-term debt prepayments made in August 2011 and September 2012a combined $255 million. Under the 2013 Credit Agreement, the Canadian portion of the revolving credit facility has a limit of $1815 million. U.S. denominated and Canadian denominated loans made under the revolving credit facility bear interest at a rate of LIBOR plus 225 bps (with no LIBOR floor). The revolving credit facility is scheduled to mature in March 2018 and also provides for the issuance of documentary and standby letters of credit. The 2013 Credit Agreement requires the Partnership to pay a commitment fee of $9 million50, respectively, bps per annum on the Company has no scheduled term-debt principal payments untilunused portion of the first quarter of 2015.credit facilities.
At the end of the quarter, we had a total of $1,131.1$630.0 million of variable-rate term debt (before giving consideration to fixed-rate interest rate swaps), $400.7$901.3 million of fixed-rate debt (including OID), no$96.0 million outstanding borrowings under our revolving

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credit facility, and cash on hand of $96.1$10.0 million. After letters of credit, which totaled $16.5$16.4 million at September 30, 2012March 31, 2013, we had $243.5$142.6 million of available borrowings under the revolving credit facility under the Amended 20102013 Credit Agreement.

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Our $405 million of senior unsecured notes require semi-annual interest payments in February and August, with the principal due in full on August 1, 2018. The notes may be redeemed, in whole or in part, at any time prior to August 1, 2014 at a price equal to 100% of the principal amount of the notes redeemed plus a “make-whole” premium together with accrued and unpaid interest, if any, to the redemption date. Thereafter, the notes may be redeemed, in whole or in part, at various prices depending on the date redeemed. Prior to August 1, 2013, up to 35% of the notes may be redeemed with the net cash proceeds of certain equity offerings at 109.125%. Our $500 million of senior unsecured notes pay interest semi-annually in March and September, with the principal due in full on March 15, 2021. The notes may be redeemed, in whole or in part, at any time prior to March 15, 2016 at a price equal to 100% of the principal amount of the notes redeemed plus a “make-whole” premium together with accrued and unpaid interest, if any, to the redemption date. Thereafter, the notes may be redeemed, in whole or in part, at various prices depending on the date redeemed. Prior to March 15, 2016, up to 35% of the notes may be redeemed with the net cash proceeds of certain equity offerings at 105.25%.
In order to maintain fixed interest costs on a portion of our domestic term debt, in September 2010 we entered into several interest rateforward-starting swap agreements ("September 2010 swaps") to effectively convert a total of $600$600 million of variable-rate debt to fixed rates beginning in October 2011. As a result of the February 2011 amendment to our credit agreement,the 2010 Credit Agreement, the LIBOR floor on the term loan portion of ourits credit facilities decreased to 100 bps from 150 bps, causing a mismatch in critical terms of the September 2010 swaps and the underlying debt. Because of the mismatch of critical terms, we determined the September 2010 swaps, which were originally designated as cash flow hedges, were no longer highly effective, resulting in the de-designation of the September 2010 swaps as of the end of February 2011. As a result of this ineffectiveness, gains of $7.2 million recorded in AOCI through the date of de-designation are being amortized through December 2015.
In order to monetize the difference in the LIBOR floors, in March 2011, we entered into several additional forward-starting basis-rate swap agreements ("March 2011 swaps") that, when combined with the September 2010 swaps, effectively converted $600$600 million of variable-rate debt to fixed rates beginning in October 2011. The September 2010 swaps and the March 2011 swaps, were jointly designated as cash flow hedges, maturing in December 2015 and had fixed LIBOR at a weighted average rate of 2.46%. For the period that the September 2010 swaps were de-designated, their fair value decreased by $3.3 million, the offset of which have beenwas recognized as a direct charge to earnings and recorded to “Net effect of swaps” on the consolidated statement of operations along with the regular amortization of “Other comprehensive income (loss)” balances related to these swaps. No other ineffectiveness related to these swaps was recorded in any period presented.
In May 2011, we entered into four additional forward-starting basis-rate swap agreements ("May 2011 swaps") that effectively converted another $200 million of variable-rate debt to fixed rates beginning in October 2011. These swaps, which were designated as cash flow hedges, mature in December 2015 and fixed LIBOR at a weighted average rate of 2.54%.
As a result of the 2013 Credit Agreement, the previously described swaps were de-designated as the spreads of the 2013 Credit Agreement decreased to 75 bps from 100 bps in the Amended 2010 Credit Agreement. The May 2011 swaps remain de-designated as the amount of variable rate debt decreased to $630 million, and accordingly, the May 2011 swaps are now over hedged. On March 4, 2013, we entered into several forward-starting swap agreements ("March 2013 swaps") that were not designated as a cash flow hedge on that date. On March 6, 2013, the March 2013 swaps were combined with the September 2010 swaps and the March 2011 swaps, and designated as cash flow hedges, effectively converting $600 million of variable-rate debt to fixed rates. The September 2010 swaps, the March 2011 swaps, and the March 2013 swaps were jointly designated as cash flow hedges, mature in December 2015 and fix LIBOR at a weighted average rate of 2.46%.
In May 2011, we entered into four additional forward-starting basis-rate swap agreements ("May 2011 swaps") that effectively convert another $200 million of variable-rate debt to fixed rates beginning in October 2011. These swaps, which have been designated as cash flow hedges, mature in December 2015 and fix LIBOR at a weighted average rate of 2.54%2.331%. TheAt the time of the de-designation, the fair market value of all $800the September 2010 swaps, March 2011 swaps, and March 2013 swaps was $23.8 million, which will be amortized out of forward-starting swap agreements atAOCI into expense in "Net effect of swaps" in the unaudited condensed consolidated statements of operations and comprehensive incomethrough December 2015. At the time of the de-designation, the fair market value of the May 2011 swaps was $7.8 million and was immediately recognized into expense in "Net effect of swaps" in the unaudited condensed consolidated statements of operations.
At March 31, 2013, the fair market value of the September 30, 20122010 swaps, the March 2011 swaps and the March 2013 swaps was a liability of $34.723.4 million, which was recorded in "Derivative Liability"“Derivative Liability” on the condensed consolidated balance sheet. The May 2011 swaps had a fair market value of $7.6 million as of March 31, 2013 and was recorded in “Derivative Liability” on the condensed consolidated balance sheet.


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The following table presents our September 2010 swaps, March 2011 swaps, and May 2011 swaps, and March 2013 swaps which became effective on October 1, 2011 and mature December 15, 2015, along with their notional amounts and their effective fixed interest rates.
($'s in thousands)Forward-Starting Interest Rate Swaps
 Notional Amounts LIBOR Rate
 $200,000
 2.40%
 75,000
 2.43%
 50,000
 2.42%
 150,000
 2.55%
 50,000
 2.42%
 50,000
 2.55%
 25,000
 2.43%
 50,000
 2.54%
 30,000
 2.54%
 70,000
 2.54%
 50,000
 2.54%
Total $'s / Average Rate$800,000
 2.48%
In 2006, we entered into several fixed-rate interest rate swap agreements totaling $1.0 billion. The weighted average fixed-LIBOR rate on these interest rate swaps, which matured on October 1, 2011, was 5.6%. Based upon our scheduled quarterly regression analysis testing of the effectiveness for the accounting treatment of these swaps, as well as changes in the forward interest rate yield curves used in that testing, the swaps were deemed to be ineffective beginning in October 2009 and continued to be deemed ineffective through their maturity. This resulted in the swaps not qualifying for hedge accounting during the fourth quarter of 2009 and through 2010 and the first three quarters of 2011.
In 2007, we entered into two cross-currency swap agreements, which matured in February 2012 and effectively converted $268.7 million of term debt at the time, and the associated interest payments, from U.S. dollar denominated debt at a rate of LIBOR plus

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200 bps to 6.3% fixed-rate Canadian dollar denominated debt. As a result of paying down the underlying Canadian term debt with net proceeds from the sale of surplus land near Canada’s Wonderland in August 2009, the notional amounts of the underlying debt and the cross-currency swaps no longer matched. Because of the mismatch of the notional amounts, we determined the swaps were no longer highly effective going forward, resulting in the de-designation of the swaps as of the end of August 2009.
Based on the change in currency exchange rates from the time we originally entered into the cross-currency swap agreements in 2007, the termination liability of the swaps had increased steadily over time. In order to protect ourselves from further downside risk to the swaps' termination value, in May 2011 we entered into several foreign currency swap agreements to fix the exchange rate on 50% of the liability. In July 2011, we fixed the exchange rate on another 25% of the swap liability, leaving only 25% exposed to further fluctuations in currency exchange rates. In February 2012, these swap agreements were settled for $50.5 million.
In addition to other covenants and provisions, including those discussed below, the Amended 2010 Credit Agreement contains an initial three-year requirement (from July 2010) that at least 50% of our aggregate term debt and senior notes be subject to either a fixed interest rate or interest rate protection. As of September 30, 2012, we were in compliance with this requirement.
The following table presents fixed-rate swaps that matured on October 1, 2011. The table also presents our cross-currency swaps that matured on February 15, 2012 and their notional amounts and interest rates as of their maturity date.
($'s in thousands)Interest Rate Swaps Cross-currency Swaps
 Notional Amounts LIBOR Rate Notional Amounts Interest Rate
 $200,000
 5.64% $255,000
 7.31%
 200,000
 5.64% 150
 9.50%
 200,000
 5.64%    
 200,000
 5.57%    
 100,000
 5.60%    
 100,000
 5.60%    
Total $'s / Average Rate$1,000,000
 5.62% $255,150
 7.31%
        
 Interest Rate Swaps
($'s in thousands)Derivatives designated as hedging instruments Derivatives not designated as hedging instruments
 Notional Amounts LIBOR Rate Notional Amounts LIBOR Rate
 $200,000
 2.27% 50,000
 2.54%
 75,000
 2.30% 30,000
 2.54%
 50,000
 2.29% 70,000
 2.54%
 150,000
 2.43% 50,000
 2.54%
 50,000
 2.29%    
 50,000
 2.47%    
 25,000
 2.30%    
Total $'s / Average Rate$600,000
 2.33% $200,000
 2.54%

The Amended 20102013 Credit Agreement requires us to maintain specified financial ratios, which if breached for any reason, including a decline in operating results due to economic or weather conditions, could result in an event of default under the agreement. The most critical of these ratios is the Consolidated Leverage Ratio, which is measured on a trailing-twelve-month quarterly basis. At the end of the thirdfirst quarter of 2012,2013, this ratio was set at 6.00x6.25x consolidated total debt (excluding the revolving debt)-to-consolidated EBITDA. The ratio will remain at that level through the end of the first quarter in 2014 and will decrease each second quarter beginning in the second quarter of 2014. Based on our trailing-twelve-month results ending September 30, 2012March 31, 2013, our Consolidated Leverage Ratio was 3.89x, providing $138.3148.2 million of EBITDA cushion on the ratio at the end of the thirdfirst quarter. We were in compliance with all other covenants under the Amended 20102013 Credit Agreement as of September 30, 2012March 31, 2013.
The Amended 20102013 Credit Agreement allows restricted payments of up to $20$60 million annually so long as no default or event of default has occurred and is continuing. These restricted payments are not subject to any specific covenants. In 2012, additionalAdditional restricted payments are allowed to be made based on an excess-cash-flow formula, should our pro-forma Consolidated Leverage Ratio be less than or equal to 4.50x,5.0x, measured on a trailing-twelve-month quarterly basis.
At March 31, 2013, the notes maturing in 2018 have more restrictive covenants than the 2021 notes. The terms of the indenture governing our 2018 notes permit us to make restricted payments of $20 million annually. Our ability to make additional restricted payments in 20122013 and beyond is permitted should our trailing-twelve-month Total-Indebtedness-to-Consolidated-Cash-Flow Ratio be less than or equal to 4.75x, measured on a quarterly basis.
In accordance with these debt provisions, on August 9, 2012,February 27, 2013, we announced the declaration of a distribution of $0.40$0.625 per limited partner unit, which was paid on September 15, 2012,March 25, 2013, and on November 6, 2012,May 8, 2013 we announced the declaration of a distribution of $0.40$0.625 per limited partner unit, payable DecemberJune 17, 2012, which will bring our total distributions paid in 2012 to $1.60 per limited partner unit.2013.
Existing credit facilities and cash flows from operations are expected to be sufficient to meet working capital needs, debt service, partnership distributions and planned capital expenditures for the foreseeable future.




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Off Balance Sheet Arrangements:
We had $16.5$16.4 million in letters of credit, which are primarily in place to backstop insurance arrangements, outstanding on our revolving credit facility as of September 30, 2012March 31, 2013. We have no other significant off-balance sheet financing arrangements.


Forward Looking Statements
Some of the statements contained in this report (including the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section) that are not historical in nature are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements as to our expectations, beliefs and strategies regarding the future. These forward-looking statements may involve risks and uncertainties that are difficult to predict, may be beyond our control and could cause actual results to differ materially from those described in such statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can

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give no assurance that such expectations will prove to be correct. Important factors, including those listed under Item 1A in the Company’s Annual Report on Form 10-K, could adversely affect our future financial performance and cause actual results to differ materially from our expectations.


ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to market risks from fluctuations in interest rates, and to a lesser extent on currency exchange rates on our operations in Canada and, from time to time, on imported rides and equipment. The objective of our financial risk management is to reduce the potential negative impact of interest rate and foreign currency exchange rate fluctuations to acceptable levels. We do not acquire market risk sensitive instruments for trading purposes.
We manage interest rate risk through the use of a combination of fixed-rate long-term debt, interest rate swaps that fix a portion of our variable-rate long-term debt, and variable-rate borrowings under our revolving credit facility. Translation exposures with regard to our Canadian operations are not hedged.
For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the change in fair value of the derivative instrument is reported as a component of “Other comprehensive income (loss)” and reclassified into earnings in the period during which the hedged transaction affects earnings. Changes in fair value of derivative instruments that do not qualify as effective hedging activities are reported as “Net effect of swaps” in the consolidated statement of operations. Additionally, the “Other comprehensive income (loss)” related to interest rate swaps that become ineffective is amortized over the remaining life of the interest rate swap, and reported as a component of “Net effect of swaps” in the consolidated statement of operations.
As of March 31, 2013, we had $901.3 million of fixed-rate senior unsecured notes and $630 million of variable-rate term debt. After considering the impact of interest rate swap agreements, approximately $1.2 billionvirtually all of our outstanding long-term debt represents fixed-rate debt and approximately $331.1 million represents variable-rate debt. Assuming an average balance on our revolving credit borrowings of approximately $61$50 million, a hypothetical 100 bps increase in 30-day LIBOR on our variable-rate debt, after the fixed-rate swap agreements, would lead to an increasea decrease of approximately $2.5$0.5 million in annual cash interest costs.
A uniform 10% strengthening of the U.S. dollar relative to the Canadian dollar would result in a $5.4$4.4 million decrease in annual operating income.

ITEM 4. CONTROLS AND PROCEDURES

(a)Evaluation of Disclosure Controls and Procedures - 
The Partnership maintains a system of controls and procedures designed to ensure that information required to be disclosed by the Partnership in its reports under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified by the Commission and that such information is accumulated and communicated to the Partnership’s management, including the Chief Executive Officer and the Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. As of September 30, 2012March 31, 2013, the PartnershipPartnership's management has evaluated the effectiveness of the design and operation of itsthe Partnership's disclosure controls and procedures under supervision of management, includingand with the participation of the Partnership's Chief Executive Officer and Chief Financial Officer. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Partnership's disclosure controls and procedures are effective.were effective as of March 31, 2013.
 






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(b)Changes in Internal Control Over Financial Reporting -
As disclosed in Amendment No. 2 to the Partnership's Form 10-K/A for the fiscal year ended December 31, 2012, in connection with restating the Partnership's consolidated financial statements therein, management identified a material weakness in internal control over financial reporting related to the Partnership's fixed assets, resulting in a conclusion that the Partnership's internal control over financial reporting was not effective as of December 31, 2012. Remediation of this material weakness in internal control over financial reporting was accomplished through the conversion of all composite assets to the unit method of depreciation as of January 1, 2013. The conversion to the unit method eliminates the concept of normal vs. unusual as any and all asset retirements with a remaining net book value will be reflected in the Consolidated Statements of Operations and Comprehensive Income.
There were no other changes in the Partnership’s internal controlscontrol over financial reporting in connection with its 2012that occurred during the fiscal quarter ended thirdMarch 31, 2013-quarter evaluation, or subsequent to such evaluation, that have materially affected, or are reasonably likely to materially affect, the Partnership’s internal control over financial reporting.


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PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Jacob T. Falfas vs. Cedar Fair, L.P.

On July 23, 2010, Jacob T. (Jack) Falfas, the former Chief Operating Officer, filed a demand for private arbitration as provided by his employment agreement. In that demand, Mr. Falfas disputed the Partnership's position that he had resigned in June 2010, alleging instead that his employment with the Partnership was terminated without cause. That dispute went to private arbitration, and on February 28, 2011, an arbitration panel ruled 2-to-1 in favor of Mr. Falfas finding that he did not resign but was terminated without cause. Rather than fashioning a remedy consistent with the employment agreement, the panel ruled that Mr. Falfas should be reinstated. The Partnership believed that the arbitrators exceeded their authority by creating a remedy not legally available to Mr. Falfas under his contract with Cedar Fair. On March 21, 2011, the Partnership filed an action  in Erie County Court of Common Pleas (Case No. 2011 CV 0217) seeking  to have the award modified or vacated. On March 22, 2011, Mr. Falfas commenced a related action in the Erie County Court of Common Pleas  (Case No. 2011 CV 0218) demanding enforcement of the arbitration ruling.  The two actions were combined into Case No. 2011 CV 0217, before Judge Roger E. Binette. On February 22, 2012 the Erie County Common Pleas Court issued a ruling partially vacating the arbitration award and declaring that Mr. Falfas was not entitled to reinstatement of his employment.  The ruling also provided that in accord with paragraph 2 of the arbitration award Mr. Falfas was entitled to certain back pay and other benefits under his 2007 Amended and Restated Employment Agreement as if the employment relationship had not been severed. In March of 2012 Mr. Falfas and the Company both filed appeals of the Court's ruling with the Ohio Sixth District Court of Appeals in Toledo, Ohio. The parties participated in mediation on May 7, 2012 at the direction ofOn April 19, 2013 the Court of Appeals.Appeals issued a ruling reversing the Erie County Common Pleas Court's  order regarding the reinstatement of Mr. Falfas' employment and  affirming the order regarding back pay and other benefits and remanding the case back to the Erie County Common Pleas Court for further proceedings.  The mediation did not result inCompany has until June 3, 2013 to file a settlement. As a resultnotice of appeal with the matter will now proceed through the normal appeal process which typically takes six to nine months to complete. Briefs have been filed and the parties are awaiting scheduling of oral argument.Ohio Supreme Court.  The Partnership believes the liability recorded as of September 30, 2012March 31, 2013 to be adequate and does not expect the arbitration ruling or the court order to materially affect its financial results in future periods.


ITEM 1A. RISK FACTORS
There have been no material changes to the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2011.2012.

ITEM 5. OTHER INFORMATION

TheOn May 8, 2013, the Partnership usesannounced that it had identified a historical classification error in the Partnership's initial determination of whether a specific asset retired under the composite method of depreciation methodwas normal or unusual. The error resulted in the overstatement of Income before taxes of $8.8 million for the groupperiod ended December 31, 2011.

Under the composite method of depreciation, no gain or loss is recognized on normal retirements of composite assets. Instead the net book value after salvage of a retired asset reduces accumulated depreciation for the composite group. Abnormal or unusual retirements of composite assets acquiredwould result in the recognition of a gain or loss. The error resulted in the Partnership's application of its qualitative policy used to determine whether an asset retirement is normal or unusual. The asset retirement being restated was originally classified as normal, thus reducing accumulated depreciation. Management identified that the Partnership had failed to consider whether the specific asset had a whole in 1983,substantial net book value and/or if the retirement caused a deviation from the estimated composite depreciation survivor curve as well as for groupsother minor qualitative issues.

The restatement amount of assets$8.8 million is recorded in each subsequent business acquisition. Upon the normalLoss on impairment / retirement of an asset within a composite group, the Partnership's practice generally has been to extend the depreciable life of that composite group beyond its original estimated useful life. In conjunction with the preparation of the Partnership's financial statements for the interim period ended July 1, 2012, management determined that this methodology was not appropriate. As a result, the Partnership revised the useful lives of its composite groups to their original estimated useful life (ascribed upon acquisition) and corrected previously computed depreciation expense (and accumulated depreciation). Management evaluated the amount and nature of these adjustments and concluded that they were not material to either the Partnership's prior annual or quarterly financial statements. Nonetheless, the historical financial statement amounts included in this filing have been corrected for this error. The Partnership expects to likewise correct previously presented historical financial statements to be included in future filings, including the annual financial statements to be includedfixed assets, net in the Partnership's Annual Report on Form 10-K for10-K/A filing to correct the year ending December 31, 2012.previous error.

ForAs disclosed in the year ended December 31, 2011Partnership's prior filings, the correctionPartnership had determined that it was preferable to change from the composite method of depreciation to the unit method of depreciation with the change effective January 1, 2013. The Partnership believes that pursuant to generally accepted accounting principles, changing from the composite method of depreciation to the unit method of depreciation is a change in accounting estimate that is effected by a change in accounting principle, which should be accounted for prospectively. The change to the unit method of depreciation eliminates the qualitative judgment needed to determine whether an asset retirement is normal or unusual, as the net book value of all retirements will decrease net income (loss) by $1.4 millionbe recorded in the Consolidated Statements of Operations and the provision (benefit) for taxes will decrease by $0.6 million.  For the 2010 annual financial statements, the correction will decrease net income (loss) by $1.5 million and the provision (benefit) for taxes will decrease by $0.6 million.  For the 2009 annual financial statements, the correction will decrease net income (loss) by $1.2 million and the provision (benefit) for taxes will decrease $0.4 million.  The balance sheet as of December 31, 2011 has already been corrected in this Form 10-Q.Comprehensive Income.



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ITEM 6. EXHIBITS
 
Exhibit (4.1)
Rights Agreement between Cedar Fair, L.P. and American Stock Transfer and Trust Co., LLC, dated April 5, 2010. Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on April 6, 2010.

Exhibit (4.2)
Indenture, by and among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and The Bank of New York Mellon, as trustee, dated as of July 29, 2010 (including form of 9.125% Senior Notes due 2018). Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (4.3)
Registration Rights Agreement, among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and J.P. Morgan Securities Inc., as representative of the initial purchasers named therein, dated July 29, 2010. Incorporated herein by reference to Exhibit 4.2 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (10.1)Cedar Fair, L.P. Amended and Restated Executive Severance Plan dated July 18, 2007. Incorporated herein by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q (File No. 001-09444) filed on August 3, 2007.
Exhibit (31.1)  Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (31.2)  Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (32)  Certifications Pursuant to 18 U.S.C. 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
  
Exhibit (101)  The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012March 31, 2013 formatted in Extensible Business Reporting Language (XBRL): (i) The Condensed Consolidated Statements of Income, (ii) the Condensed Consolidated Balance Sheets, (iii) The Condensed Consolidated Statements of Cash Flow, (iv) the Condensed Consolidated Statement of Equity and, (v) related notes
 

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
  CEDAR FAIR, L.P. 
  (Registrant) 
    
  By Cedar Fair Management, Inc. 
  General Partner 
   
Date:November 7, 2012May 10, 2013/s/ Matthew A. Ouimet
  Matthew A. Ouimet
  President and Chief Executive Officer
    
Date:November 7, 2012May 10, 2013/s/ Brian C. Witherow
  Brian C. Witherow
  Executive Vice President and
  Chief Financial Officer

 

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INDEX TO EXHIBITS
 
Exhibit (4.1)
Rights Agreement between Cedar Fair, L.P. and American Stock Transfer and Trust Co., LLC, dated April 5, 2010. Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on April 6, 2010.

Exhibit (4.2)
Indenture, by and among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and The Bank of New York Mellon, as trustee, dated as of July 29, 2010 (including form of 9.125% Senior Notes due 2018). Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (4.3)
Registration Rights Agreement, among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and J.P. Morgan Securities Inc., as representative of the initial purchasers named therein, dated July 29, 2010. Incorporated herein by reference to Exhibit 4.2 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (10.1)Cedar Fair, L.P. Amended and Restated Executive Severance Plan dated July 18, 2007. Incorporated herein by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q (File No. 001-09444) filed on August 3, 2007.
Exhibit (31.1)  Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (31.2)  Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (32)  Certifications Pursuant to 18 U.S.C. 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
  
Exhibit (101)  The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012March 31, 2013 formatted in Extensible Business Reporting Language (XBRL): (i) The Condensed Consolidated Statements of Income, (ii) the Condensed Consolidated Balance Sheets, (iii) The Condensed Consolidated Statements of Cash Flow, (iv) the Condensed Consolidated Statement of Equity and, (v) related notes
 

4845
s / Average Rate$800,000
 2.48%$600,000
 2.33% $200,000
 2.54%
 
The following table presents our fixed-rate swaps, which matured in October 2011, and the cross-currency swap which matured in February 2012, along with their notional amounts and their fixed interest rates:
($'s in thousands)Interest Rate Swaps Cross-currency Swaps
 Notional Amounts LIBOR Rate Notional Amounts Implied Interest Rate
 $200,000
 5.64% $255,000
 7.31%
 200,000
 5.64% 150
 9.50%
 200,000
 5.64%    
 200,000
 5.57%    
 100,000
 5.60%    
 100,000
 5.60%    
Total $'s / Average Rate$1,000,000
 5.62% $255,150
 7.31%
        



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Effects of Derivative Instruments on Income (Loss) and Other Comprehensive Income (Loss) for the three-month periods ended September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012:
 
(In thousands): Amount of Gain (Loss) Recognized in  Accumulated OCI on Derivatives (Effective Portion) 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
Derivatives designated as
Cash Flow Hedging
Relationships
 Three months ended Three months ended   Three months ended Three months ended   Three months ended Three months ended
 9/30/12 9/25/11   9/30/12 9/25/11   9/30/12 9/25/11
Interest rate swaps $438
 $(17,085) Interest Expense $(2,990) $—
 Net effect of swaps $—
 $15,396
                 
(In thousands): Amount of Gain (Loss) Recognized in  Accumulated OCI on Derivatives (Effective Portion) 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
Derivatives designated as
Cash Flow Hedging
Relationships
 Three months ended Three months ended   Three months ended Three months ended   Three months ended Three months ended
 3/31/13 3/25/12   3/31/13 3/25/12   3/31/13 3/25/12
Interest rate swaps $2,266
 $120
 Interest Expense $(2,797) $(2,793) Net effect of swaps $435
 $—
                 

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(In thousands): 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
Derivatives not designated as Cash Flow
Hedging Relationships
   Three months ended Three months ended
   9/30/12 9/25/11
Cross-currency swaps (1)
 Net effect of swaps $—
 $13,622
Foreign currency swaps 
 Net effect of swaps —
 (13,210)
    $—
 $412
       
(In thousands): 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
Derivatives not designated as Cash Flow
Hedging Relationships
   Three months ended Three months ended
   3/31/13 3/25/12
Cross-currency swaps (1)
 Net effect of swaps $—
 $(4,999)
Foreign currency swaps 
 Net effect of swaps —
 6,278
Interest rate swaps (2)
 Net effect of swaps (1,471) —
    $(1,471) $1,279
       
(1)The cross-currency swaps became ineffective and were de-designated in August 2009.
(2)The May 2011 interest rate swaps were de-designated in March 2013.
During the quarter ended September 30, 2012March 31, 2013, in addition to the $1.0 million loss recognized in income on the ineffective portion of derivatives and on the derivatives not designated as cash flow hedges (as noted in the tables above), $0.27.8 million of incomeexpense related to the write off of OCI balances on our May 2011 swaps and $0.4 million of expense representing the regular amortization of amounts in AOCI was recorded in the condensed consolidated statements of operations for the quarter. The effect of this amortizationthese amounts resulted in a benefitcharge to earnings of $0.29.2 million recorded in “Net effect of swaps.”

For the three-month period ended SeptemberMarch 25, 20112012, in addition to the $15.81.3 million gain recognized in income on the ineffective portion of derivatives noted in the tabletables above, $11.20.5 million of expense representing the amortization of amounts in AOCI for the swaps and $0.60.2 million of foreign currency lossgain in the quarter related to the U.S. dollar denominated Canadian term loan were recorded in “Net effect of swaps” in the condensed consolidated statements of operations. The net effect of these amounts resulted in a benefit to earnings of $4.0 million recorded in “Net effect of swaps.”

Effects of Derivative Instruments on Income (Loss) and Other Comprehensive Income (Loss) for the nine-month periods ended September 30, 2012 and September 25, 2011: 
(In thousands): Amount of Gain (Loss) Recognized in  Accumulated OCI on Derivatives (Effective Portion) 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
Derivatives designated as
Cash Flow Hedging
Relationships
 Nine months ended Nine months ended   Nine months ended Nine months ended   Nine months ended Nine months ended
 9/30/12 9/25/11   9/30/12 9/25/11   9/30/12 9/25/11
Interest rate swaps $(2,308) $(36,788) Interest Expense $(9,004) $—
 Net effect of swaps $—
 $43,190
                 

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(In thousands): 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
Derivatives not designated as Cash Flow
Hedging Relationships
   Nine months ended Nine months ended
   9/30/12 9/25/11
Interest rate swaps (1)
 Net effect of swaps $—
 $(3,342)
Cross-currency swaps (2)
 Net effect of swaps (4,999) 15,582
Foreign currency swaps 
 Net effect of swaps 6,278
 (17,516)
    $1,279
 $(5,276)
       
(1)The September 2010 swaps became ineffective and were de-designated in February 2011.
(2)The cross-currency swaps became ineffective and were de-designated in August 2009.
For the nine-month period ended September 30, 2012, in addition to the $1.3 million of net gain recognized in income on the ineffective portion of derivatives and on the derivatives not designated as cash flow hedges (as noted in the tables above), $0.2 million of expense representing the regular amortization of amounts in AOCI for the swaps and $0.2 million of foreign currency gain in the period related to the U.S. dollar denominated Canadian term loan were recorded in the condensed consolidated statements of operations for the period. The net effect of these amounts resulted in a benefit to earnings for the period of $1.3 million recorded in “Net effect of swaps.”

For the nine-month period ended September 25, 2011, in addition to the $37.9 million gain recognized in income on the ineffective portion of derivatives noted in the table above, $33.9 million of expense representing the amortization of amounts in AOCI for the swaps and $0.5 million of foreign currency loss in the period related to the U.S. dollar denominated Canadian term loan were recorded in “Net effect of swaps” in the condensed consolidated statements of operations. The net effect of these amounts resulted in a benefit to earnings of $3.51.0 million recorded in “Net effect of swaps.”


Effects of Derivative Instruments on Income (Loss) and Other Comprehensive Income (Loss) for the twelve-month periods ended September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012:
(In thousands): 
Amount of Gain (Loss)
Recognized in Accumulated OCI on Derivatives
(Effective Portion)
 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
Derivatives designated as
Cash Flow Hedging
Relationships
 Twelve months ended Twelve months ended   Twelve months ended Twelve months ended   Twelve months ended Twelve months ended
 9/30/12 9/25/11   9/30/12 9/25/11   9/30/12 9/25/11
Interest rate swaps $(873) $(26,329) Interest Expense $(12,027) $—
 Net effect of swaps $4,797
 $54,613
                 
(In thousands): 
Amount of Gain (Loss)
Recognized in Accumulated OCI on Derivatives
(Effective Portion)
 
Amount and Location of Gain (Loss)
Reclassified from Accumulated OCI into Income
(Effective Portion)
 
Amount and Location of Gain (Loss)
Recognized in Income on Derivative
(Ineffective Portion)
Derivatives designated as
Cash Flow Hedging
Relationships
 Twelve months ended Twelve months ended   Twelve months ended Twelve months ended   Twelve months ended Twelve months ended
 3/31/13 3/25/12   3/31/13 3/25/12   3/31/13 3/25/12
Interest rate swaps $2,286
 $(36,088) Interest Expense $(12,031) $(5,816) Net effect of swaps $435
 $33,493
                 

(In thousands): 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
Derivatives not designated as Cash Flow Hedging
Relationships
   Twelve months ended Twelve months ended
   9/30/12 9/25/11
Interest rate swaps (1)
 Net effect of swaps $—
 $(3,342)
Cross-currency swaps (2)
 Net effect of swaps (4,483) 10,016
Foreign currency swaps Net effect of swaps 10,129
 (17,516)
    $5,646
 $(10,842)
       
(In thousands): 
Amount and Location of Gain (Loss) Recognized
in Income on Derivative
Derivatives not designated as Cash Flow Hedging
Relationships
   Twelve months ended Twelve months ended
   3/31/13 3/25/12
Cross-currency swaps (1)
 Net effect of swaps —
 12,911
Foreign currency swaps Net effect of swaps —
 (7,387)
Interest rate swaps (2)
 Net effect of swaps $(1,471) $—
    $(1,471) $5,524
       
(1)The September 2010 swaps became ineffective and were de-designated in February 2011.
(2)The cross-currency swaps became ineffective and were de-designated in August 2009.
(2)The May 2011 interest rate swaps were de-designated in March 2013.
In addition to the $10.41.0 million of gainloss recognized in income on the ineffective portion of derivatives and on the derivatives not designated as cash flow hedges (as noted in the tables above), $0.17.8 million of expense related to the write off of OCI balances on our May 2011 swaps and $192 thousand of income representing the amortization of amounts in AOCI for the swaps was recorded during the trailing twelve months ended March 31, 2013 in the condensed consolidated statements of operations. The net effect of these amounts resulted in expense for the trailing twelve month period of $8.7 million recorded in “Net effect of swaps.”

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Table of Contents

For the twelve month period ending March 25, 2012, in addition to the $39.0 million of gain recognized in income on the ineffective portion of derivatives noted in the tables above, $22.7 million of expense representing the amortization of amounts in AOCI for the swaps and a $0.40.3 million foreign currency gainloss in the twelve month period related to the U.S. dollar denominated Canadian term loan was recorded during the trailing twelve months ended September 30,March 25, 2012 in the condensed consolidated statements of operations. The net effect of these amounts resulted in a benefit to earnings for the trailing twelve month period of $10.9 million recorded in “Net effect of swaps.”
For the twelve month period ending September 25, 2011, in addition to the $43.8 million of gain recognized in income on the ineffective portion of derivatives noted in the table above, $45.5 million of expense representing the amortization of amounts in AOCI for the swaps and a $0.1 million foreign currency loss in the twelve month period related to the U.S. dollar denominated Canadian term loan was recorded during the trailing twelve months ended September 25, 2011 in the condensed consolidated statements of operations. The net effect of these amounts resulted in a charge to earnings for the trailing twelve month period of $1.816.0 million recorded in “Net effect of swaps.”
The amounts reclassified from AOCI into income for the periods noted above are in large partprimarily the result of the Partnership’s initial three-year requirement to swap at least 75% of its aggregate term debt to fixed rates under the terms of the Amended 2010 Credit Agreement.
 
(7) Fair Value Measurements:
The FASB Accounting Standards Codification (ASC) relating to fair value measurements emphasizes that fair value is a market-based measurement that should be determined based on assumptions (inputs) that market participants would use in pricing an asset or liability. Inputs may be observable or unobservable, and valuation techniques used to measure fair value should maximize the use of relevant observable inputs and minimize the use of unobservable inputs. Accordingly, the FASB’s ASC establishes a hierarchal disclosure framework that ranks the quality and reliability of information used to determine fair values. The hierarchy is associated with the level of pricing observability utilized in measuring fair value and defines three levels of inputs to the fair value measurement process—quoted prices are the most reliable valuation inputs, whereas model values that include inputs based on unobservable data are the least reliable. Each fair value measurement must be assigned to a level corresponding to the lowest level input that is significant to the fair value measurement in its entirety.
The three broad levels of inputs defined by the fair value hierarchy are as follows:
 
Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
 
Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
 
Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement.
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

















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Table of Contents

The table below presents the balances of assets and liabilities measured at fair value as of September 30, 2012March 31, 2013, December 31, 2011,2012, and SeptemberMarch 25, 20112012 on a recurring basis:
  Total Level 1 Level 2 Level 3
September 30, 2012        
(In thousands)        
Interest rate swap agreements (1)
 $(34,708) $—
 $(34,708) $—
Net derivative liability $(34,708) $—
 $(34,708) $—
         
December 31, 2011        
Interest rate swap agreements (1)
 $(32,400) $—
 $(32,400) $—
Cross-currency swap agreements (2)
 (37,617) —
 (37,617) —
Foreign currency swap agreements (2)
 (13,155) —
 (13,155) —
Net derivative liability $(83,172) $—
 $(83,172) $—
         
September 25, 2011        
Interest rate swap agreements (1)
 $(33,835) $—
 $(33,835) $—
Interest rate swap agreements (2)
 (4,797) —
 (4,797) —
Cross-currency swap agreements (2)
 (37,723) —
 (37,723) —
Foreign currency swap agreements (2)
 (16,846) —
 (16,846) —
Net derivative liability $(93,201) $—
 $(93,201) $—
  Total Level 1 Level 2 Level 3
March 31, 2013        
(In thousands)        
Interest rate swap agreements (1)
 $(23,388) $—
 $(23,388) $—
Interest rate swap agreements (2)
 (7,643) —
 (7,643) —
Net derivative liability $(31,031) $—
 $(31,031) $—
         
December 31, 2012        
Interest rate swap agreements (1)
 $(32,260) $—
 $(32,260) $—
Net derivative liability $(32,260) $—
 $(32,260) $—
         
March 25, 2012        
Interest rate swap agreements (1)
 $(32,280) $—
 $(32,280) $—
Net derivative liability $(32,280) $—
 $(32,280) $—
(1)IncludedDesignated as cash flow hedges and are included in “Derivative Liability” on the Unaudited Condensed Consolidated Balance Sheet
(2)IncludedNot designated as cash flow hedges and are included in "Current derivative liability""Derivative Liability" on the Unaudited Condensed Consolidated Balance Sheet
Fair values of the interest rate cross-currency and foreign currency swap agreements are determined using significant inputs, including the LIBOR and foreign currency forward curves, that are considered Level 2 observable market inputs. In addition, the Partnership considered the effect of its credit and non-performance risk on the fair values provided, and recognized an adjustment decreasing the net derivative liability by approximately $1.10.9 million as of September 30, 2012March 31, 2013.
There were no assets measured at fair value on a non-recurring basis at September 30, 2012March 31, 2013, December 31, 2011, or SeptemberMarch 25, 20112012, except for as described below.
At the end of the third quarter in 2012, the Partnership concluded based on operating results, as well as updated forecasts, and changes in market conditions, that a review of the carrying value of long-lived assets at Wildwater Kingdom was warranted. After performing its review, the Partnership determined that a portion of the park's fixed assets were impaired. Based on Level 3 unobservable valuation assumptions and other market inputs, the assets were marked to a fair value of $19.8 million, resulting in an impairment charge of $25.0 million during the quarter.
In 2010, the Partnership concluded based on operating results, as well as updated forecasts, that a review of the carrying value of long-lived assets at California's Great America was warranted. After performing its review, the Partnership determined that a portion of the park's fixed assets, the majority of which were originally recorded with the PPI acquisition, were impaired. As a result, it recognized $62.0 million of fixed-asset impairment during the fourth quarter of 2010.

After completing its 2010 annual review of indefinite-lived intangibles for impairment, the Partnership concluded that a portion of trade-names originally recorded with the PPI acquisition were impaired. As a result, the Partnership recognized approximately $0.9 million of trade-name impairment during the fourth quarter of 2010. A relief-from-royalty model is used to determine whether the fair value of trade-names exceeds their carrying amount. The fair value of the trade-names is determined as the present value of fees avoided by owning the respective trade-name.
The fair value of term debt at September 30, 2012March 31, 2013 was approximately $1,125.7637.1 million based on borrowing rates currently available to the Partnership on long-term debt with similar terms and average maturities. The fair value of the Partnership's notes at September 30, 2012March 31, 2013 was approximately $352.6950.1 million based on borrowing rates availablepublic trading levels as of that date to the Partnership on notes with similar terms and maturities.date. The fair value of the term debt was based on Level 2 inputs and the notes were based on Level 21 inputs.





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(8) Earnings per Unit:
Net income (loss) per limited partner unit is calculated based on the following unit amounts:
  Three months ended Nine months ended Twelve months ended
  9/30/2012 9/25/2011 9/30/2012 9/25/2011 9/30/2012 9/25/2011
  (In thousands except per unit amounts)
Basic weighted average units outstanding 55,611
 55,346
 55,473
 55,345
 55,440
 55,342
Effect of dilutive units:            
Unit options and restricted unit awards 45
 —
 42
 —
 31
 —
Phantom units 336
 482
 333
 502
 416
 544
Diluted weighted average units outstanding 55,992
 55,828
 55,848
 55,847
 55,887
 55,886
Net income (loss) per unit - basic $2.53
 $2.75
 $2.01
 $1.29
 $2.00
 $0.15
Net income (loss) per unit - diluted $2.51
 $2.73
 $2.00
 $1.28
 $1.98
 $0.15
             
  Three months ended Twelve months ended
  3/31/2013 3/25/2012 3/31/2013 3/25/2012
  (In thousands except per unit amounts)
Basic weighted average units outstanding 55,854
 55,378
 55,694
 55,353
Effect of dilutive units:        
Unit options and restricted unit awards —
 —
 63
 2
Phantom units —
 —
 299
 492
Diluted weighted average units outstanding 55,854
 55,378
 56,056
 55,847
Net income (loss) per unit - basic $(1.95) $(1.18) $1.04
 $1.53
Net income (loss) per unit - diluted $(1.95) $(1.18) $1.04
 $1.52
         
The effect of unit options on the three nine and twelve months ended September 30,March 31, 2013, had they not been out of the money or antidilutive, would have been zero and 16,000 units, respectively. The effect of out-of-the-money and/or antidilutive unit options on the three and twelve months ended March 25, 2012, had they not been out of the money or antidilutive, would have been 66,0002,000, 34,000and 36,000 units, respectively. The effect of out-of-the-money and/or antidilutive unit options on the three, nine and twelve months ended September 25, 2011, had they not been out of the money or antidilutive, would have been 57,000, 67,000 and 127,00047,000 units, respectively.
 
(9) Income and Partnership Taxes:
Under the applicable accounting rules, income taxes are recognized for the amount of taxes payable by the Partnership’s corporate subsidiaries for the current year and for the impact of deferred tax assets and liabilities, which represent future tax consequences of events that have been recognized differently in the financial statements than for tax purposes. The income tax provision (benefit) for interim periods is determined by applying an estimated annual effective tax rate to the quarterly income (loss) of the Partnership’s corporate subsidiaries. For 2012, the estimated annual effective rate includes the effect of an anticipated adjustment to the valuation allowance that relates to foreign tax credit carry-forwards arising from the corporate subsidiaries. The amount of this adjustment has a disproportionate impact on the annual effective tax rate that results in a significant variation in the customary relationship between the provision for taxes and income before taxes in interim periods. In addition to income taxes on its corporate subsidiaries, the Partnership pays a publicly traded partnership tax (PTP tax) on partnership-level gross income (net revenues less cost of food, merchandise and games). As such, the Partnership’s total provision (benefit) for taxes includes amounts for both the PTP tax and for income taxes on its corporate subsidiaries.
During the second quarterAs of 2012 the Partnership adjusted its deferred tax assets and liabilities to reflect the impact of changes to the enacted statutory tax rates in Canada and recorded a corresponding $1.8 million income tax provision.  During the first quarter of 20122013 the Partnership accruedhas recorded $1.01.1 million forof unrecognized tax benefits including interest and/or penalties related to state and local tax filing positions. The Partnership recognizes interest and/or penalties related to unrecognized tax benefits in the income tax provision. The Partnership does not anticipate that the balance of the unrecognized tax benefit will change significantly over the next 12 months.

(10) Contingencies:

The Partnership is a party to a number of lawsuits arising in the normal course of business. In the opinion of management, none of these matters is expected to have a material effect in the aggregate on the Partnership's financial statements.

(11) Immaterial Restatement:

We have made two separate corrections relating to our use of the composite depreciation method.

The Partnership usesfirst correction, which impacts the Balance Sheet at March 25, 2012 and the Statement of Operations and Other Comprehensive Income for the 3 and 12 month periods ended March 25, 2012, related to a misapplication of the composite depreciation method for the group of assets acquired as a whole in 1983, as well as for groups of assets in each subsequent business acquisition.method. Upon the normal retirement of an asset within a composite group, the Partnership'sour practice generally hashad been to extend the depreciable life of that composite group beyond its original estimated useful life. In conjunction with the preparation of the Partnership'sour financial statements for the three months ended July 1,in 2012, management determined that this methodology was not appropriate. As a result, the Partnershipwe revised the useful lives of itsour composite groups to their original estimated useful life (ascribed upon acquisition) and corrected previously computed depreciation expense (and accumulated depreciation). Management evaluated

The second correction, which impacts the amountBalance Sheet at March 25, 2012 and naturethe Statement of these adjustmentsOperations and concludedOther Comprehensive Income for the 12 month period ended March 25, 2012, reflects a subsequent determination that they werea disposition from our composite group of assets was considered to be unusual. In certain situations under the composite method, disposals are considered unusual and, accordingly, losses are not materialincluded in the composite depreciation pool but are rather charged immediately to eitherexpense. In 2013, the Partnership's prior annual or quarterly financial statements. Nonetheless,initial determination of whether a specific asset retired under the historical financial statement amounts includedcomposite method of depreciation in this filing have been corrected for this error. The Partnership expects to likewise correct previously presented2011 was normal was reviewed in connection with responding

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historical financial statements to an open SEC comment letter. We ultimately concluded that such disposition was unusual and that a $8.8 millioncharge should be included in future filings, including the annual financial statements to be includedreflected in the Partnership's Annual Report on Form 10-K for the year ending December 31, 2012.2011 financial statements.

The tables below detailreflect the effectsimpact on the financial statements of such depreciation adjustments (including the related deferred income tax impact)corrections as described above. The "As originally filed" amounts represent amounts as filed in the Partnership's 1st quarter 2012 Form 10-Q . The "As restated" amounts in all columns represent amounts after restatement for the first correction which was disclosed in the Partnership's 2nd quarter Form 10-Q and the second correction which was disclosed in the Partnership's 2012 Annual Report on previously presented historical financial statement amounts:Form 10-K/A filed on May 10, 2013.


Balance Sheets   
 12/31/2011 9/25/2011
Accumulated depreciation   
As originally filed$(1,044,589) $(1,044,353)
Correction(18,599) (18,252)
As restated$(1,063,188) $(1,062,605)
Total assets   
As originally filed$2,074,557
 $2,159,339
Correction(18,599) (18,252)
As restated$2,055,958
 $2,141,087
Deferred Tax Liability   
As originally filed$135,446
 $125,588
Correction(1,679) (1,615)
As restated$133,767
 $123,973
Limited Partners' Equity   
As originally filed$182,438
 $221,611
Correction(16,920) (16,637)
As restated$165,518
 $204,974
Balance Sheet 
(In thousands)3/25/2012
Accumulated depreciation 
As originally filed$(1,046,162)
Corrections(27,622)
As restated$(1,073,784)
Total assets 
As originally filed$2,113,126
Corrections(27,622)
As restated$2,085,504
Deferred Tax Liability 
As originally filed$135,746
Corrections(5,019)
As restated$130,727
Limited Partners' Equity 
As originally filed$96,417
Corrections(22,603)
As restated$73,814








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Statements of Operations and Other Comprehensive Income
  Three months ended Nine months ended Twelve months ended
  9/25/2011 9/25/2011 9/25/2011
Depreciation and amortization      
As originally filed $62,619
 $109,173
 $124,345
Correction 829
 1,684
 2,037
As restated $63,448
 $110,857
 $126,382
Income (loss) before tax      
As originally filed $190,891
 $95,031
 $(2,271)
Correction (829) (1,684) (2,037)
As restated $190,062
 $93,347
 $(4,308)
Provision (benefit) for taxes    
As originally filed $38,161
 $22,327
 $(11,808)
Correction (317) (554) (616)
As restated $37,844
 $21,773
 $(12,424)
Net income (loss)    
As originally filed $152,730
 $72,704
 $9,537
Correction (512) (1,130) (1,421)
As restated $152,218
 $71,574
 $8,116
       
Basic earnings per limited partner unit:    
As originally filed $2.76
 $1.31
 $0.17
Correction (0.01) (0.02) (0.02)
As restated $2.75
 $1.29
 $0.15
       
Diluted earnings per limited partner unit:    
As originally filed $2.74
 $1.30
 $0.17
Correction (0.01) (0.02) (0.02)
As restated $2.73
 $1.28
 $0.15
Statements of Operations and Other Comprehensive Income
(In thousands except per unit amounts) Three months ended Twelve months ended
  3/25/2012 3/25/2012
Depreciation and amortization    
As originally filed $3,846
 $123,861
Corrections 233
 2,031
As restated $4,079
 $125,892
Loss on impairment / retirement of fixed assets, net    
As originally filed $92
 $2,461
Corrections —
 8,790
As restated $92
 $11,251
Income (loss) before tax    
As originally filed $(86,721) $101,565
Corrections (233) (10,821)
As restated $(86,954) $90,744
Provision (benefit) for taxes  
As originally filed $(21,539) $9,897
Corrections —
 (3,960)
As restated $(21,539) $5,937
Net income (loss)  
As originally filed $(65,182) $91,668
Corrections (233) (6,861)
As restated $(65,415) $84,807
     
Basic earnings per limited partner unit:  
As originally filed $(1.18) $1.66
Corrections —
 (0.13)
As restated $(1.18) $1.53
     
Diluted earnings per limited partner unit:  
As originally filed $(1.18) $1.64
Corrections —
 (0.12)
As restated $(1.18) $1.52


(12) Changes in Accumulated Other Comprehensive Income by Component:

(12)The following tables reflect the changes in Accumulated other comprehensive income (loss) related to limited partners' equity for the period ended March 31, 2013:



19
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Changes in Accumulated Other Comprehensive Income by Component (1)
(In thousands)       
   Gains and    
   Losses on Foreign  
   Cash Flow Currency  
   Hedges Items Total
Balance at December 31, 2012 $(25,749) $(2,751) $(28,500)
        
 Other comprehensive      
 income before      
 reclassifications 1,940
 301
 301
        
 Amounts reclassified      
 from accumulated      
 other comprehensive      
 
income (2)
 6,945
 —
 8,885
        
Net current-period other      
comprehensive income 8,885
 301
 9,186
        
March 31, 2013 $(16,864) $(2,450) $(19,314)

(1) All amounts are net of tax. Amounts in parentheses indicate debits.
(2) See Reclassifications Out of Accumulated Other Comprehensive Income table below for reclassification details.

Reclassifications Out of Accumulated Other Comprehensive Income (1)
(In thousands)       
Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Statement Where Net Income is Presented
Gains and losses on cash flow hedges      
 Interest rate contracts $8,174
  Net effect of swaps
   $8,174
  Total before tax
   (1,229)  Provision (benefit) for taxes
   $6,945
  Net of tax

(1) Amounts in parentheses indicate debits.

(13) Consolidating Financial Information of Guarantors and Issuers:

Cedar Fair, L.P., Canada's Wonderland Company ("Cedar Canada"), and Magnum Management Corporation ("Magnum") are the co-issuers of the Partnership's 9.125% notes and the 5.25% notes (see Note 5). The notes have been fully and unconditionally guaranteed, on a joint and several basis, by each 100% owned subsidiary of Cedar Fair (other than Cedar Canada and Magnum) that guarantees the Partnership's senior secured credit facilities. There are no non-guarantor subsidiaries.

The following consolidating schedules present condensed financial information for Cedar Fair, L.P., Cedar Canada, and Magnum, the co-issuers, and each 100% owned subsidiary of Cedar Fair (other than Cedar Canada and Magnum), the guarantors (on a combined basis), as of September 30, 2012March 31, 2013, December 31, 2011,2012, and SeptemberMarch 25, 20112012 and for the three nine and twelve month periods ended

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September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012. In lieu of providing separate unaudited financial statements for the guarantor subsidiaries, we have included the accompanying condensed consolidating financial statements.

Since Cedar Fair, L.P., Cedar Canada and Magnum are co-issuers of the notes and co-borrowers under the Amended 20102013 Credit Agreement, all outstanding debt has been equally reflected within each co-issuer's September 30, 2012March 31, 2013, December 31, 20112012 and SeptemberMarch 25, 20112012 balance sheets in the accompanying condensed consolidating financial statements.

The consolidating financial information has been corrected for the information described in Note 11.12.
  

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CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
September 30, 2012
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $43,000
 $2,263
 $40,278
 $10,561
 $—
 $96,102
Receivables 3
 108,211
 64,153
 478,372
 (621,382) 29,357
Inventories —
 1,584
 2,742
 29,267
 —
 33,593
Current deferred tax asset —
 6,239
 772
 3,334
 —
 10,345
Income tax refundable —
 —
 10,454
 —
 —
 10,454
Other current assets 929
 2,065
 674
 3,775
 —
 7,443
  43,932
 120,362
 119,073
 525,309
 (621,382) 187,294
Property and Equipment (net) 425,747
 1,025
 272,951
 864,121
 —
 1,563,844
Investment in Park 577,612
 791,617
 118,514
 63,384
 (1,551,127) —
Goodwill 9,061
 —
 127,384
 111,218
 —
 247,663
Other Intangibles, net —
 —
 18,039
 22,826
 —
 40,865
Deferred Tax Asset —
 39,320
 —
 —
 (39,320) —
Intercompany Receivable 877,208
 1,069,721
 1,116,623
 —
 (3,063,552) —
Other Assets 23,361
 15,580
 8,925
 2,305
 —
 50,171
  $1,956,921
 $2,037,625
 $1,781,509
 $1,589,163
 $(5,275,381) $2,089,837
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Accounts payable $210,936
 $116,160
 $29,248
 $287,634
 $(621,382) $22,596
Deferred revenue —
 —
 4,544
 30,138
 —
 34,682
Accrued interest 735
 195
 6,082
 —
 —
 7,012
Accrued taxes 5,818
 42,090
 —
 4,496
 —
 52,404
Accrued salaries, wages and benefits —
 24,864
 2,365
 8,990
 —
 36,219
Self-insurance reserves —
 4,751
 1,698
 16,643
 —
 23,092
Other accrued liabilities 824
 4,097
 2,417
 3,505
 —
 10,843
  218,313
 192,157
 46,354
 351,406
 (621,382) 186,848
Deferred Tax Liability —
 —
 59,462
 122,952
 (39,320) 143,094
Derivative Liability 20,801
 13,907
 —
 —
 —
 34,708
Other Liabilities —
 3,880
 —
 3,500
 —
 7,380
Long-Term Debt:            
Term debt 1,131,100
 1,131,100
 1,131,100
 —
 (2,262,200) 1,131,100
Notes 400,676
 400,676
 400,676
 —
 (801,352) 400,676
  1,531,776
 1,531,776
 1,531,776
 —
 (3,063,552) 1,531,776
             
Equity 186,031
 295,905
 143,917
 1,111,305
 (1,551,127) 186,031
  $1,956,921
 $2,037,625
 $1,781,509
 $1,589,163
 $(5,275,381) $2,089,837


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CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
December 31, 2011
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $—
 $512
 $31,540
 $3,472
 $—
 $35,524
Receivables —
 62,408
 69,285
 412,095
 (536,177) 7,611
Inventories —
 1,547
 2,703
 28,819
 —
 33,069
Current deferred tax asset —
 6,239
 772
 3,334
 —
 10,345
Other current assets 508
 13,461
 1,027
 7,822
 (10,852) 11,966
  508
 84,167
 105,327
 455,542
 (547,029) 98,515
Property and Equipment (net) 455,579
 1,044
 266,111
 896,758
 —
 1,619,492
Investment in Park 518,819
 661,251
 118,385
 40,481
 (1,338,936) —
Intercompany Note Receivable —
 93,845
 —
 —
 (93,845) —
Goodwill 9,061
 —
 123,210
 111,219
 —
 243,490
Other Intangibles, net —
 —
 17,448
 22,825
 —
 40,273
Deferred Tax Asset —
 47,646
 —
 —
 (47,646) —
Intercompany Receivable 887,344
 1,084,112
 1,141,302
 —
 (3,112,758) —
Other Assets 27,641
 16,158
 9,353
 1,036
 —
 54,188
  $1,898,952
 $1,988,223
 $1,781,136
 $1,527,861
 $(5,140,214) $2,055,958
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Current maturities of long-term debt $15,921
 $15,921
 $15,921
 $—
 $(31,842) $15,921
Accounts payable 175,968
 144,868
 25,631
 202,566
 (536,177) 12,856
Deferred revenue —
 —
 2,891
 26,703
 —
 29,594
Accrued interest 198
 131
 15,433
 —
 —
 15,762
Accrued taxes 3,909
 —
 7,374
 15,577
 (10,852) 16,008
Accrued salaries, wages and benefits —
 26,916
 1,076
 5,396
 —
 33,388
Self-insurance reserves —
 3,977
 1,711
 15,555
 —
 21,243
Current derivative liability —
 —
 50,772
 —
 —
 50,772
Other accrued liabilities 1,247
 5,568
 252
 832
 —
 7,899
  197,243
 197,381
 121,061
 266,629
 (578,871) 203,443
Deferred Tax Liability —
 —
 58,463
 122,950
 (47,646) 133,767
Derivative Liability 19,451
 12,949
 —
 —
 —
 32,400
Other Liabilities —
 4,090
 —
 —
 —
 4,090
Intercompany Note Payable —
 —
 —
 93,845
 (93,845) —
Long-Term Debt:            
Term debt 1,140,179
 1,140,179
 1,140,179
 —
 (2,280,358) 1,140,179
Notes 400,279
 400,279
 400,279
 —
 (800,558) 400,279
  1,540,458
 1,540,458
 1,540,458
 —
 (3,080,916) 1,540,458
             
Equity 141,800
 233,345
 61,154
 1,044,437
 (1,338,936) 141,800
  $1,898,952
 $1,988,223
 $1,781,136
 $1,527,861
 $(5,140,214) $2,055,958

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CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING BALANCE SHEET
September 25, 2011March 31, 2013
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $49,000
 $2,489
 $36,473
 $8,350
 $—
 $96,312
Receivables 3
 45,663
 81,773
 587,910
 (676,810) 38,539
Inventories —
 1,684
 2,951
 32,311
 —
 36,946
Current deferred tax asset —
 1,686
 779
 3,409
 —
 5,874
Other current assets 875
 2,091
 774
 5,559
 —
 9,299
  49,878
 53,613
 122,750
 637,539
 (676,810) 186,970
Property and Equipment (net) 455,663
 1,055
 257,802
 900,759
 —
 1,615,279
Investment in Park 534,400
 681,893
 118,514
 53,988
 (1,388,795) —
Intercompany Note Receivable —
 269,500
 —
 —
 (269,500) —
Goodwill 9,061
 —
 121,869
 111,219
 —
 242,149
Other Intangibles, net —
 —
 17,258
 22,809
 —
 40,067
Deferred Tax Asset —
 49,845
 —
 —
 (49,845) —
Intercompany Receivable 887,219
 1,083,987
 1,141,302
 —
 (3,112,508) —
Other Assets 28,962
 16,884
 9,616
 1,160
 —
 56,622
  $1,965,183
 $2,156,777
 $1,789,111
 $1,727,474
 $(5,497,458) $2,141,087
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Accounts payable $189,887
 $281,605
 $27,488
 $206,288
 $(676,810) $28,458
Deferred revenue —
 —
 3,701
 28,993
 —
 32,694
Accrued interest 6,115
 1,364
 6,489
 —
 —
 13,968
Accrued taxes 5,189
 23,550
 —
 4,354
 —
 33,093
Accrued salaries, wages and benefits —
 29,373
 2,341
 9,395
 —
 41,109
Self-insurance reserves —
 3,130
 1,658
 17,154
 —
 21,942
Current derivative liability 4,797
 —
 54,569
 —
 —
 59,366
Other accrued liabilities 1,206
 4,840
 1,277
 4,924
 —
 12,247
  207,194
 343,862
 97,523
 271,108
 (676,810) 242,877
Deferred Tax Liability —
 —
 61,405
 112,413
 (49,845) 123,973
Derivative Liability 20,459
 13,376
 —
 —
 —
 33,835
Other Liabilities —
 2,872
 —
 —
 —
 2,872
Intercompany Note Payable —
 —
 —
 269,500
 (269,500) —
Long-Term Debt:            
Term debt 1,156,100
 1,156,100
 1,156,100
 —
 (2,312,200) 1,156,100
Notes 400,154
 400,154
 400,154
 —
 (800,308) 400,154
  1,556,254
 1,556,254
 1,556,254
 —
 (3,112,508) 1,556,254
             
Equity 181,276
 240,413
 73,929
 1,074,453
 (1,388,795) 181,276
  $1,965,183
 $2,156,777
 $1,789,111
 $1,727,474
 $(5,497,458) $2,141,087
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $—
 $732
 $4,125
 $5,181
 $—
 $10,038
Receivables 682
 79,472
 67,302
 436,595
 (570,709) 13,342
Inventories —
 3,645
 3,032
 32,386
 —
 39,063
Current deferred tax asset —
 31,543
 816
 3,663
 —
 36,022
Other current assets 207
 9,630
 1,618
 16,260
 —
 27,715
  889
 125,022
 76,893
 494,085
 (570,709) 126,180
Property and Equipment (net) 457,484
 1,003
 262,941
 849,424
 —
 1,570,852
Investment in Park 419,501
 714,013
 115,401
 21,689
 (1,270,604) —
Goodwill 9,061
 —
 123,374
 111,218
 —
 243,653
Other Intangibles, net —
 —
 17,470
 22,853
 —
 40,323
Deferred Tax Asset —
 34,890
 —
 90
 (34,980) —
Intercompany Receivable 877,336
 1,165,652
 1,211,522
 —
 (3,254,510) —
Other Assets 14,581
 10,291
 7,473
 2,303
 —
 34,648
  $1,778,852
 $2,050,871
 $1,815,074
 $1,501,662
 $(5,130,803) $2,015,656
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Current maturities of long-term debt $6,300
 $6,300
 $6,300
 $—
 $(12,600) $6,300
Accounts payable 103,654
 215,425
 3,891
 285,182
 (570,709) 37,443
Deferred revenue —
 —
 6,679
 59,505
 —
 66,184
Accrued interest 1,444
 916
 5,979
 —
 —
 8,339
Accrued taxes 4,790
 390
 331
 3,489
 —
 9,000
Accrued salaries, wages and benefits —
 13,483
 1,095
 5,604
 —
 20,182
Self-insurance reserves —
 5,324
 1,696
 16,537
 —
 23,557
Other accrued liabilities 589
 5,161
 133
 1,984
 —
 7,867
  116,777
 246,999
 26,104
 372,301
 (583,309) 178,872
Deferred Tax Liability —
 —
 62,700
 126,867
 (34,980) 154,587
Derivative Liability 18,594
 12,437
 —
 —
 —
 31,031
Other Liabilities —
 4,185
 —
 3,500
 —
 7,685
Long-Term Debt:            
Revolving credit loans 96,000
 96,000
 96,000
 —
 (192,000) 96,000
Term debt 623,700
 623,700
 623,700
 —
 (1,247,400) 623,700
Notes 901,255
 901,255
 901,255
 —
 (1,802,510) 901,255
  1,620,955
 1,620,955
 1,620,955
 —
 (3,241,910) 1,620,955
             
Equity 22,526
 166,295
 105,315
 998,994
 (1,270,604) 22,526
  $1,778,852
 $2,050,871
 $1,815,074
 $1,501,662
 $(5,130,803) $2,015,656


22
Table of Contents

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOMEBALANCE SHEET
For the Three Months Ended September 30,December 31, 2012
 (As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $79,663
 $141,134
 $88,334
 $464,902
 $(220,588) $553,445
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 6,447
 40,906
 —
 47,353
Operating expenses 1,368
 74,191
 18,736
 289,604
 (220,588) 163,311
Selling, general and administrative 1,853
 32,627
 4,822
 13,691
 —
 52,993
Depreciation and amortization 19,209
 10
 9,430
 32,098
 —
 60,747
Loss on impairment / retirement of fixed assets, net 25,000
 —
 —
 —
 —
 25,000
  47,430
 106,828
 39,435
 376,299
 (220,588) 349,404
Operating income 32,233
 34,306
 48,899
 88,603
 —
 204,041
Interest expense (income), net 12,213
 7,258
 9,897
 (2,518) —
 26,850
Net effect of swaps (104) (71) —
 —
 —
 (175)
Unrealized / realized foreign currency gain —
 —
 (15,035) —
 —
 (15,035)
Other (income) expense 186
 (2,043) 512
 1,345
 —
 —
Income from investment in affiliates (125,311) (79,600) (11,138) (45,137) 261,186
 —
Income before taxes 145,249
 108,762
 64,663
 134,913
 (261,186) 192,401
Provision for taxes 4,561
 9,777
 17,181
 20,194
 —
 51,713
Net income $140,688
 $98,985
 $47,482
 $114,719
 $(261,186) $140,688
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment (563) —
 (563) —
 563
 (563)
Unrealized income (loss) on cash flow hedging derivatives (234) 48
 —
 —
 (48) (234)
Other comprehensive income (loss), (net of tax) (797) 48
 (563) —
 515
 (797)
Total Comprehensive Income $139,891
 $99,033
 $46,919
 $114,719
 $(260,671) $139,891


  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $25,000
 $444
 $50,173
 $3,213
 $—
 $78,830
Receivables 4
 101,093
 71,099
 498,555
 (652,559) 18,192
Inventories —
 1,724
 2,352
 23,764
 —
 27,840
Current deferred tax asset —
 3,705
 816
 3,663
 —
 8,184
Other current assets 563
 17,858
 530
 5,490
 (16,381) 8,060
  25,567
 124,824
 124,970
 534,685
 (668,940) 141,106
Property and Equipment (net) 439,506
 1,013
 268,157
 835,596
 —
 1,544,272
Investment in Park 485,136
 772,183
 115,401
 53,790
 (1,426,510) —
Goodwill 9,061
 —
 125,942
 111,218
 —
 246,221
Other Intangibles, net —
 —
 17,835
 22,817
 —
 40,652
Deferred Tax Asset —
 36,443
 —
 90
 (36,533) —
Intercompany Receivable 877,612
 1,070,125
 1,116,623
 —
 (3,064,360) —
Other Assets 22,048
 14,832
 8,419
 2,315
 —
 47,614
  $1,858,930
 $2,019,420
 $1,777,347
 $1,560,511
 $(5,196,343) $2,019,865
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Accounts payable $147,264
 $213,279
 $16,101
 $286,649
 $(652,559) $10,734
Deferred revenue —
 —
 4,996
 34,489
 —
 39,485
Accrued interest 98
 64
 15,350
 —
 —
 15,512
Accrued taxes 4,518
 —
 6,239
 23,437
 (16,381) 17,813
Accrued salaries, wages and benefits —
 17,932
 1,214
 5,690
 —
 24,836
Self-insurance reserves —
 5,528
 1,754
 16,624
 —
 23,906
Other accrued liabilities 1,110
 2,502
 140
 2,164
 —
 5,916
  152,990
 239,305
 45,794
 369,053
 (668,940) 138,202
Deferred Tax Liability —
 —
 63,460
 126,865
 (36,533) 153,792
Derivative Liability 19,309
 12,951
 —
 —
 —
 32,260
Other Liabilities —
 5,480
 —
 3,500
 —
 8,980
Long-Term Debt:            
Term debt 1,131,100
 1,131,100
 1,131,100
 —
 (2,262,200) 1,131,100
Notes 401,080
 401,080
 401,080
 —
 (802,160) 401,080
  1,532,180
 1,532,180
 1,532,180
 —
 (3,064,360) 1,532,180
             
Equity 154,451
 229,504
 135,913
 1,061,093
 (1,426,510) 154,451
  $1,858,930
 $2,019,420
 $1,777,347
 $1,560,511
 $(5,196,343) $2,019,865

23
Table of Contents

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOMEBALANCE SHEET
For the Three Months Ended March 25, 2012September 25, 2011
(As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $82,713
 $147,138
 $84,679
 $487,352
 $(229,614) $572,268
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 6,659
 42,099
 —
 48,758
Operating expenses 1,257
 69,119
 19,397
 301,293
 (229,614) 161,452
Selling, general and administrative 1,297
 30,460
 5,064
 15,157
 —
 51,978
Depreciation and amortization 20,354
 11
 9,564
 33,519
 —
 63,448
Loss on impairment / retirement of fixed assets, net 827
 —
 10
 43
 —
 880
  23,735
 99,590
 40,694
 392,111
 (229,614) 326,516
Operating income 58,978
 47,548
 43,985
 95,241
 —
 245,752
Interest expense, net 23,948
 3,085
 13,433
 855
 —
 41,321
Net effect of swaps (4,112) (192) 342
 —
 —
 (3,962)
Unrealized / realized foreign currency loss —
 —
 18,549
 —
 —
 18,549
Other (income) expense (30) (1,711) 616
 907
 —
 (218)
Income from investment in affiliates (117,557) (57,557) (8,410) (15,579) 199,103
 —
Income before taxes 156,729
 103,923
 19,455
 109,058
 (199,103) 190,062
Provision for taxes 4,511
 12,445
 3,103
 17,785
 —
 37,844
Net income $152,218
 $91,478
 $16,352
 $91,273
 $(199,103) $152,218
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment 2,842
 —
 2,842
 —
 (2,842) 2,842
Unrealized income on cash flow hedging derivatives (3,224) (4,646) 72
 —
 4,574
 (3,224)
Other comprehensive income (loss), (net of tax) (382) (4,646) 2,914
 —
 1,732
 (382)
Total Comprehensive Income $151,836
 $86,832
 $19,266
 $91,273
 $(197,371) $151,836





  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
ASSETS            
Current Assets:            
Cash and cash equivalents $—
 $397
 $119
 $6,803
 $—
 $7,319
Receivables —
 82,892
 59,911
 370,246
 (506,356) 6,693
Inventories —
 3,321
 3,678
 37,487
 —
 44,486
Current deferred tax asset —
 11,014
 772
 3,334
 —
 15,120
Other current assets 359
 5,907
 11,851
 12,293
 —
 30,410
  359
 103,531
 76,331
 430,163
 (506,356) 104,028
Property and Equipment (net) 464,394
 1,035
 279,255
 896,184
 —
 1,640,868
Investment in Park 459,339
 661,166
 115,401
 25,758
 (1,261,664) —
Intercompany Note Receivable —
 104,165
 —
 —
 (104,165) —
Goodwill 9,061
 —
 125,528
 111,219
 —
 245,808
Other Intangibles, net —
 —
 17,776
 22,831
 —
 40,607
Deferred Tax Asset —
 47,646
 —
 —
 (47,646) —
Intercompany Receivable 889,442
 1,239,210
 1,294,302
 —
 (3,422,954) —
Other Assets 26,323
 16,288
 9,608
 1,974
 —
 54,193
  $1,848,918
 $2,173,041
 $1,918,201
 $1,488,129
 $(5,342,785) $2,085,504
LIABILITIES AND PARTNERS’ EQUITY            
Current Liabilities:            
Current maturities of long-term debt $15,921
 $15,921
 $15,921
 $—
 $(31,842) $15,921
Accounts payable 60,297
 232,001
 26,302
 215,968
 (506,356) 28,212
Deferred revenue —
 —
 5,413
 45,341
 —
 50,754
Accrued interest 3,089
 1,706
 5,519
 —
 —
 10,314
Accrued taxes 4,925
 340
 261
 3,294
 —
 8,820
Accrued salaries, wages and benefits —
 26,989
 781
 5,792
 —
 33,562
Self-insurance reserves —
 4,212
 1,716
 15,826
 —
 21,754
Other accrued liabilities 462
 3,312
 226
 2,104
 —
 6,104
  84,694
 284,481
 56,139
 288,325
 (538,198) 175,441
Deferred Tax Liability —
 —
 58,762
 119,611
 (47,646) 130,727
Derivative Liability 19,403
 12,877
 —
 —
 —
 32,280
Other Liabilities —
 2,235
 —
 —
 —
 2,235
Intercompany Note Payable —
 —
 —
 104,165
 (104,165) —
Long-Term Debt:            
Revolving credit loans 155,004
 155,004
 155,004
 —
 (310,008) 155,004
Term debt 1,140,179
 1,140,179
 1,140,179
 —
 (2,280,358) 1,140,179
Notes 400,373
 400,373
 400,373
 —
 (800,746) 400,373
  1,695,556
 1,695,556
 1,695,556
 —
 (3,391,112) 1,695,556
             
Equity 49,265
 177,892
 107,744
 976,028
 (1,261,664) 49,265
  $1,848,918
 $2,173,041
 $1,918,201
 $1,488,129
 $(5,342,785) $2,085,504


24
Table of Contents

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the NineThree Months Ended September 30, 2012March 31, 2013
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $124,864
 $221,221
 $130,441
 $808,471
 $(345,748) $939,249
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 9,988
 73,938
 —
 83,926
Operating expenses 4,141
 147,211
 40,328
 534,900
 (345,748) 380,832
Selling, general and administrative 4,841
 70,848
 9,877
 29,922
 —
 115,488
Depreciation and amortization 33,436
 28
 16,415
 63,277
 —
 113,156
Loss on impairment / retirement of fixed assets, net 24,221
 —
 9
 —
 —
 24,230
  66,639
 218,087
 76,617
 702,037
 (345,748) 717,632
Operating income 58,225
 3,134
 53,824
 106,434
 —
 221,617
Interest expense (income), net 36,438
 21,957
 30,898
 (5,422) —
 83,871
Net effect of swaps (35) 192
 (1,475) —
 —
 (1,318)
Unrealized / realized foreign currency gain —
 —
 (13,926) —
 —
 (13,926)
Other (income) expense 561
 (7,119) 1,221
 5,337
 —
 —
Income from investment in affiliates (99,035) (72,862) (14,505) (38,160) 224,562
 —
Income before taxes 120,296
 60,966
 51,611
 144,679
 (224,562) 152,990
Provision (benefit) for taxes 8,701
 (3,771) 13,525
 22,940
 —
 41,395
Net income $111,595
 $64,737
 $38,086
 $121,739
 $(224,562) $111,595
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment (1,251) —
 (1,251) —
 1,251
 (1,251)
Unrealized income (loss) on cash flow hedging derivatives (1,798) (629) 21
 —
 608
 (1,798)
Other comprehensive income (loss), (net of tax) (3,049) (629) (1,230) —
 1,859
 (3,049)
Total Comprehensive Income $108,546
 $64,108
 $36,856
 $121,739
 $(222,703) $108,546
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $4,317
 $8,371
 $289
 $41,510
 $(12,688) $41,799
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 —
 5,037
 —
 5,037
Operating expenses 1,423
 21,606
 5,941
 60,375
 (12,688) 76,657
Selling, general and administrative 1,292
 16,613
 711
 2,423
 —
 21,039
Depreciation and amortization 475
 9
 —
 4,302
 —
 4,786
Loss on impairment / retirement of fixed assets, net 36
 —
 478
 86
 —
 600
  3,226
 38,228
 7,130
 72,223
 (12,688) 108,119
Operating income (loss) 1,091
 (29,857) (6,841) (30,713) —
 (66,320)
Interest expense (income), net 10,512
 7,677
 9,764
 (2,230) —
 25,723
Net effect of swaps 5,635
 3,576
 —
 —
 —
 9,211
Loss on early debt extinguishment 21,175
 12,781
 617
 —
 —
 34,573
Unrealized / realized foreign currency loss —
 —
 8,958
 —
 —
 8,958
Other (income) expense 188
 (2,388) 800
 1,400
 —
 —
Loss from investment in affiliates 72,096
 35,640
 3,520
 21,227
 (132,483) —
Loss before taxes (108,515) (87,143) (30,500) (51,110) 132,483
 (144,785)
Provision (benefit) for taxes 611
 (17,665) (9,254) (9,351) —
 (35,659)
Net loss $(109,126) $(69,478) $(21,246) $(41,759) $132,483
 $(109,126)
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment 301
 —
 301
 —
 (301) 301
Unrealized income on cash flow hedging derivatives 8,885
 2,535
 —
 —
 (2,535) 8,885
Other comprehensive income, (net of tax) 9,186
 2,535
 301
 —
 (2,836) 9,186
Total Comprehensive Loss $(99,940) $(66,943) $(20,945) $(41,759) $129,647
 $(99,940)



25
Table of Contents

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the NineThree Months Ended SeptemberMarch 25, 20112012
(As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $118,280
 $210,407
 $115,163
 $768,126
 $(328,349) $883,627
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 9,389
 70,592
 —
 79,981
Operating expenses 4,180
 131,955
 38,959
 504,813
 (328,349) 351,558
Selling, general and administrative 8,049
 64,226
 9,541
 28,310
 —
 110,126
Depreciation and amortization 33,021
 34
 15,440
 62,362
 —
 110,857
Loss on impairment / retirement of fixed assets, net 1,023
 —
 10
 43
 —
 1,076
  46,273
 196,215
 73,339
 666,120
 (328,349) 653,598
Operating income 72,007
 14,192
 41,824
 102,006
 —
 230,029
Interest expense, net 70,822
 8,395
 39,129
 6,184
 —
 124,530
Net effect of swaps (7,230) 910
 2,813
 —
 —
 (3,507)
Unrealized / realized foreign currency loss —
 —
 14,704
 —
 —
 14,704
Other (income) expense 1,517
 (4,712) 2,072
 2,078
 —
 955
(Income) loss from investment in affiliates (71,656) (34,663) (12,389) 107
 118,601
 —
Income (loss) before taxes 78,554
 44,262
 (4,505) 93,637
 (118,601) 93,347
Provision (benefit) for taxes 6,980
 2,527
 (4,446) 16,712
 —
 21,773
Net income (loss) $71,574
 $41,735
 $(59) $76,925
 $(118,601) $71,574
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment 2,354
 —
 2,354
 —
 (2,354) 2,354
Unrealized income on cash flow hedging derivatives 2,366
 (9,866) 79
 —
 9,787
 2,366
Other comprehensive income (loss), (net of tax) 4,720
 (9,866) 2,433
 —
 7,433
 4,720
Total Comprehensive Income $76,294
 $31,869
 $2,374
 $76,925
 $(111,168) $76,294

  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $1,456
 $2,577
 $266
 $27,932
 $(4,033) $28,198
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 —
 4,087
 —
 4,087
Operating expenses 1,335
 20,436
 5,657
 47,890
 (4,033) 71,285
Selling, general and administrative 1,332
 13,696
 760
 2,196
 —
 17,984
Depreciation and amortization 696
 9
 —
 3,374
 —
 4,079
Loss on impairment / retirement of fixed assets, net 82
 —
 10
 —
 —
 92
  3,445
 34,141
 6,427
 57,547
 (4,033) 97,527
Operating loss (1,989) (31,564) (6,161) (29,615) —
 (69,329)
Interest expense, net 11,158
 6,615
 10,403
 (1,389) —
 26,787
Net effect of swaps 173
 332
 (1,475) —
 —
 (970)
Unrealized / realized foreign currency gain —
 —
 (8,192) —
 —
 (8,192)
Other (income) expense 187
 (3,035) 197
 2,651
 —
 —
Loss from investment in affiliates 50,491
 23,083
 3,230
 24,916
 (101,720) —
Loss before taxes (63,998) (58,559) (10,324) (55,793) 101,720
 (86,954)
Provision (benefit) for taxes 1,417
 (11,672) (2,334) (8,950) —
 (21,539)
Net loss $(65,415) $(46,887) $(7,990) $(46,843) $101,720
 $(65,415)
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment (1,169) —
 (1,169) —
 1,169
 (1,169)
Unrealized income on cash flow hedging derivatives 339
 98
 21
 —
 (119) 339
Other comprehensive income (loss), (net of tax) (830) 98
 (1,148) —
 1,050
 (830)
Total Comprehensive Loss $(66,245) $(46,789) $(9,138) $(46,843) $102,770
 $(66,245)

























26
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CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
For the Twelve Months Ended September 30, 2012March 31, 2013
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $147,733
 $261,878
 $142,250
 $941,465
 $(409,232) $1,084,094
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 10,531
 85,471
 —
 96,002
Operating expenses 5,452
 180,665
 47,134
 636,106
 (409,232) 460,125
Selling, general and administrative 6,865
 90,892
 11,650
 36,381
 —
 145,788
Depreciation and amortization 37,698
 41
 18,300
 72,097
 —
 128,136
(Gain) loss on impairment / retirement of fixed assets, net 24,188
 —
 (62) 1,593
 —
 25,719
  74,203
 271,598
 87,553
 831,648
 (409,232) 855,770
Operating income (loss) 73,530
 (9,720) 54,697
 109,817
 —
 228,324
Interest (income) expense, net 50,007
 28,592
 44,583
 (6,813) —
 116,369
Net effect of swaps (5,019) (1) (5,910) —
 —
 (10,930)
Unrealized / realized foreign currency gain —
 —
 (18,721) —
 —
 (18,721)
Other (income) expense 749
 (10,205) 1,498
 7,958
 —
 —
Income from investment in affiliates (93,080) (55,557) (12,698) (24,955) 186,290
 —
Income before taxes 120,873
 27,451
 45,945
 133,627
 (186,290) 141,606
Provision (benefit) for taxes 10,106
 (29,298) 20,942
 29,089
 —
 30,839
Net income $110,767
 $56,749
 $25,003
 $104,538
 $(186,290) $110,767
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment (2,672) —
 (2,672) —
 2,672
 (2,672)
Unrealized income (loss) on cash flow hedging derivatives (397) (109) 21
 —
 88
 (397)
Other comprehensive income (loss), (net of tax) (3,069) (109) (2,651) —
 2,760
 (3,069)
Total Comprehensive Income $107,698
 $56,640
 $22,352
 $104,538
 $(183,530) $107,698
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $148,576
 $263,930
 $140,441
 $941,246
 $(412,138) $1,082,055
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 10,316
 85,682
 —
 95,998
Operating expenses 5,468
 177,526
 48,147
 637,772
 (412,138) 456,775
Selling, general and administrative 6,455
 89,532
 11,086
 34,293
 —
 141,366
Depreciation and amortization 37,439
 40
 18,199
 71,335
 —
 127,013
(Gain) on sale of other assets —
 —
 —
 (6,625) —
 (6,625)
Loss on impairment / retirement of fixed assets, net 25,089
 —
 474
 5,281
 —
 30,844
  74,451
 267,098
 88,222
 827,738
 (412,138) 845,371
Operating income (loss) 74,125
 (3,168) 52,219
 113,508
 —
 236,684
Interest (income) expense, net 47,879
 30,390
 40,231
 (9,013) —
 109,487
Net effect of swaps 5,324
 3,365
 —
 —
 —
 8,689
Loss on early debt extinguishment 21,175
 12,781
 617
 —
 —
 34,573
Unrealized / realized foreign currency loss —
 —
 8,152
 —
 —
 8,152
Other (income) expense 750
 (8,860) 2,623
 5,487
 —
 —
Income from investment in affiliates (68,417) (53,593) (14,307) (18,503) 154,820
 —
Income before taxes 67,414
 12,749
 14,903
 135,537
 (154,820) 75,783
Provision (benefit) for taxes 9,269
 (15,849) (3,507) 27,725
 —
 17,638
Net income $58,145
 $28,598
 $18,410
 $107,812
 $(154,820) $58,145
Other comprehensive income, (net of tax):            
Cumulative foreign currency translation adjustment 1,839
 —
 1,839
 —
 (1,839) 1,839
Unrealized income on cash flow hedging derivatives 8,685
 2,551
 —
 —
 (2,551) 8,685
Other comprehensive income (loss), (net of tax) 10,524
 2,551
 1,839
 —
 (4,390) 10,524
Total Comprehensive Income $68,669
 $31,149
 $20,249
 $107,812
 $(159,210) $68,669



27
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CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the Twelve Months Ended SeptemberMarch 25, 20112012 (As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $138,907
 $247,595
 $126,355
 $886,578
 $(386,119) $1,013,316
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 9,850
 80,928
 —
 90,778
Operating expenses 5,725
 163,754
 45,814
 597,781
 (386,119) 426,955
Selling, general and administrative 9,755
 79,492
 11,347
 32,598
 —
 133,192
Depreciation and amortization 37,168
 95
 17,188
 71,931
 —
 126,382
Loss on impairment of goodwill and other intangibles —
 —
 —
 903
 —
 903
Loss on impairment / retirement of fixed assets, net 1,456
 —
 10
 62,043
 —
 63,509
  54,104
 243,341
 84,209
 846,184
 (386,119) 841,719
Operating income 84,803
 4,254
 42,146
 40,394
 —
 171,597
Interest expense, net 99,205
 14,877
 52,411
 4,362
 —
 170,855
Net effect of swaps (7,183) 910
 8,045
 —
 —
 1,772
Unrealized / realized foreign currency loss —
 —
 2,323
 —
 —
 2,323
Other (income) expense 1,704
 (5,748) 2,852
 2,147
 —
 955
(Income) loss from investment in affiliates (25,098) 1,534
 (9,116) 2,425
 30,255
 —
Income (loss) before taxes 16,175
 (7,319) (14,369) 31,460
 (30,255) (4,308)
Provision (benefit) for taxes 8,059
 953
 (7,308) (14,128) —
 (12,424)
Net income (loss) $8,116
 $(8,272) $(7,061) $45,588
 $(30,255) $8,116
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment (1,704) —
 (1,704) —
 1,704
 (1,704)
Unrealized income on cash flow hedging derivatives 22,916
 (7,153) 180
 —
 6,973
 22,916
Other comprehensive income (loss), (net of tax) 21,212
 (7,153) (1,524) —
 8,677
 21,212
Total Comprehensive Income (Loss) $29,328
 $(15,425) $(8,585) $45,588
 $(21,578) $29,328
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
Net revenues $140,548
 $249,988
 $126,375
 $903,046
 $(390,156) $1,029,801
Costs and expenses:            
Cost of food, merchandise and games revenues —
 —
 9,932
 82,100
 —
 92,032
Operating expenses 5,351
 167,068
 45,805
 608,940
 (390,156) 437,008
Selling, general and administrative 7,963
 83,355
 11,151
 35,026
 —
 137,495
Depreciation and amortization 37,309
 45
 17,325
 71,213
 —
 125,892
Loss (gain) on impairment / retirement of fixed assets, net 876
 —
 (51) 10,426
 —
 11,251
  51,499
 250,468
 84,162
 807,705
 (390,156) 803,678
Operating income (loss) 89,049
 (480) 42,213
 95,341
 —
 226,123
Interest expense, net 72,309
 19,090
 50,897
 488
 —
 142,784
Net effect of swaps (10,940) (243) (4,793) —
 —
 (15,976)
Unrealized / realized foreign currency loss —
 —
 8,605
 —
 —
 8,605
Other (income) expense 716
 (9,542) 1,708
 7,084
 —
 (34)
(Income) loss from investment in affiliates (67,272) (19,390) (2,601) 16,074
 73,189
 —
Income (loss) before taxes 94,236
 9,605
 (11,603) 71,695
 (73,189) 90,744
Provision (benefit) for taxes 9,429
 (25,950) 4,319
 18,139
 —
 5,937
Net income (loss) $84,807
 $35,555
 $(15,922) $53,556
 $(73,189) $84,807
Other comprehensive income (loss), (net of tax):            
Cumulative foreign currency translation adjustment 1,050
 —
 1,050
 —
 (1,050) 1,050
Unrealized income (loss) on cash flow hedging derivatives (7,958) (9,638) 254
 —
 9,384
 (7,958)
Other comprehensive income (loss), (net of tax) (6,908) (9,638) 1,304
 —
 8,334
 (6,908)
Total Comprehensive Income (Loss) $77,899
 $25,917
 $(14,618) $53,556
 $(64,855) $77,899




28
Table of Contents

CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the NineThree Months Ended September 30, 2012March 31, 2013
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $208,436
 $48,506
 $9,093
 $155,849
 $(145,140) $276,744
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates (56,171) (70,083) 3,948
 (22,834) 145,140
 —
Sale of other assets 1,173
 —
 —
 —
 —
 1,173
Capital expenditures (29,295) (8) (14,426) (32,081) —
 (75,810)
Net cash from (for) investing activities (84,293) (70,091) (10,478) (54,915) 145,140
 (74,637)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Derivative settlement —
 —
 (50,450) —
 —
 (50,450)
Term debt payments, including early termination penalties (14,468) (10,212) (320) —
 —
 (25,000)
Intercompany (payments) receipts —
 93,845
 —
 (93,845) —
 —
Distributions (paid) received (66,675) 110
 —
 —
 —
 (66,565)
Capital (contribution) infusion —
 (60,000) 60,000
 —
 —
 —
Exercise of limited partnership unit options —
 47
 —
 —
 —
 47
Excess tax benefit from unit-based compensation expense —
 (454) —
 —
 —
 (454)
Net cash from (for) financing activities (81,143) 23,336
 9,230
 (93,845) —
 (142,422)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 893
 —
 —
 893
CASH AND CASH EQUIVALENTS            
Net increase for the period 43,000
 1,751
 8,738
 7,089
 —
 60,578
Balance, beginning of period —
 512
 31,540
 3,472
 —
 35,524
Balance, end of period $43,000
 $2,263
 $40,278
 $10,561
 $—
 $96,102
             
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $(117,670) $(49,663) $(42,030) $(12,767) $153,463
 $(68,667)
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates 65,636
 58,171
 (2,442) 32,098
 (153,463) —
Capital expenditures (17,866) —
 (600) (17,363) —
 (35,829)
Net cash from (for) investing activities 47,770
 58,171
 (3,042) 14,735
 (153,463) (35,829)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Net borrowings on revolving credit loans $96,000
 $—
 $—
 $—
 $—
 $96,000
Term debt borrowings 359,022
 256,500
 14,478
 —
 —
 630,000
Note borrowings 294,897
 205,103
 —
 —
 —
 500,000
Payment of debt issuance costs (14,763) (8,538) (190) —
 —
 (23,491)
Term debt payments, including early termination penalties (654,568) (462,054) (14,478) —
 —
 (1,131,100)
Distributions (paid) received (35,688) 868
 —
 —
 —
 (34,820)
Exercise of limited partnership unit options —
 28
 —
 —
 —
 28
Excess tax benefit from unit-based compensation expense —
 (127) —
 —
 —
 (127)
Net cash from (for) financing activities 44,900
 (8,220) (190) —
 —
 36,490
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 (786) —
 —
 (786)
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period (25,000) 288
 (46,048) 1,968
 —
 (68,792)
Balance, beginning of period 25,000
 444
 50,173
 3,213
 —
 78,830
Balance, end of period $—
 $732
 $4,125
 $5,181
 $—
 $10,038
             

29
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CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the NineThree Months Ended SeptemberMarch 25, 20112012 (As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $169,343
 $48,628
 $48,422
 $25,310
 $(69,338) $222,365
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates (29,986) (39,615) (6,353) 6,616
 69,338
 —
Capital expenditures (38,121) —
 (10,510) (24,249) —
 (72,880)
Net cash from (for) investing activities (68,107) (39,615) (16,863) (17,633) 69,338
 (72,880)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Net (payments) on revolving credit loans (23,200) —
 —
 —
 —
 (23,200)
Term debt borrowings 13,246
 9,358
 334
 —
 —
 22,938
Term debt payments, including early termination penalties (13,831) (9,763) (306) —
 —
 (23,900)
Intercompany (payments) receipts —
 688
 —
 (688) —
 —
Distributions (paid) received (16,668) 64
 —
 —
 —
 (16,604)
Payment of debt issuance costs (11,783) (8,332) (375) —
 —
 (20,490)
Net cash from (for) financing activities (52,236) (7,985) (347) (688) —
 (61,256)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 (1,682) —
 —
 (1,682)
CASH AND CASH EQUIVALENTS            
Net increase for the period 49,000
 1,028
 29,530
 6,989
 —
 86,547
Balance, beginning of period —
 1,461
 6,943
 1,361
 —
 9,765
Balance, end of period $49,000
 $2,489
 $36,473
 $8,350
 $—
 $96,312
             
             
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $(184,504) $10,151
 $(37,239) $(6,697) $136,357
 $(81,932)
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates 62,103
 60,369
 2,208
 11,677
 (136,357) —
Capital expenditures (8,374) —
 (7,125) (11,969) —
 (27,468)
Net cash from (for) investing activities 53,729
 60,369
 (4,917) (292) (136,357) (27,468)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Net borrowings on revolving credit loans 153,000
 —
 2,004
 —
 —
 155,004
Derivative settlement —
 —
 (50,450) —
 —
 (50,450)
Intercompany (payments) receipts —
 (10,320) —
 10,320
 —
 —
Distributions (paid) received (22,225) 74
 —
 —
 —
 (22,151)
Capital (contribution) infusion —
 (60,000) 60,000
 —
 —
 —
Exercise of limited partnership unit options —
 48
 —
 —
 —
 48
Excess tax benefit from unit-based compensation —
 (437) —
 —
 —
 (437)
Net cash from (for) financing activities 130,775
 (70,635) 11,554
 10,320
 —
 82,014
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 (819) —
 —
 (819)
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period —
 (115) (31,421) 3,331
 —
 (28,205)
Balance, beginning of period —
 512
 31,540
 3,472
 —
 35,524
Balance, end of period $—
 $397
 $119
 $6,803
 $—
 $7,319
             
             

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CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the Twelve Months Ended September 30, 2012March 31, 2013
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $186,582
 $(152,159) $12,038
 $318,078
 $(91,985) $272,554
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates (40,694) (47,206) 5,245
 (9,330) 91,985
 —
Sale of other assets 1,173
 —
 —
 —
 —
 1,173
Capital expenditures (33,025) (8) (23,050) (37,037) —
 (93,120)
Net cash for investing activities (72,546) (47,214) (17,805) (46,367) 91,985
 (91,947)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Intercompany term debt (payments) receipts —
 269,500
 —
 (269,500) —
 —
Derivative settlement —
 —
 (50,450) —
 —
 (50,450)
Term debt payments, including early termination penalties (14,467) (10,213) (320) —
 —
 (25,000)
Distributions (paid) received (105,569) 261
 —
 —
 —
 (105,308)
Capital (contribution) infusion —
 (60,000) 60,000
 —
 —
 —
Exercise of limited partnership unit options —
 53
 —
 —
 —
 53
Payment of debt issuance costs —
 —
 (723) —
 —
 (723)
Excess tax benefit from unit-based compensation expense —
 (454) —
 —
 —
 (454)
Net cash from (for) financing activities (120,036) 199,147
 8,507
 (269,500) —
 (181,882)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 1,065
 —
 —
 1,065
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period (6,000) (226) 3,805
 2,211
 —
 (210)
Balance, beginning of period 49,000
 2,489
 36,473
 8,350
 —
 96,312
Balance, end of period $43,000
 $2,263
 $40,278
 $10,561
 $—
 $96,102
             
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $188,221
 $(37,475) $16,546
 $135,165
 $(4,510) $297,947
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates 43,043
 (49,642) (2,479) 4,568
 4,510
 —
Sale of other assets 1,173
 —
 —
 14,885
 —
 16,058
Capital expenditures (43,156) (8) (8,023) (52,075) —
 (103,262)
Net cash for investing activities 1,060
 (49,650) (10,502) (32,622) 4,510
 (87,204)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Net borrowings on revolving credit loans $(57,000) $—
 $(2,004) $—
 $—
 $(59,004)
Term debt borrowings 359,022
 256,500
 14,478
 —
 —
 630,000
Note borrowings 294,897
 205,103
 —
 —
 —
 500,000
Intercompany term debt (payments) receipts —
 104,165
 —
 (104,165) —
 —
Term debt payments, including early termination penalties (669,035) (472,267) (14,798) —
 —
 (1,156,100)
Distributions (paid) received (102,402) 920
 —
 —
 —
 (101,482)
Capital (contribution) infusion —
 —
 —
 —
 —
 —
Exercise of limited partnership unit options —
 57
 —
 —
 —
 57
Payment of debt issuance costs (14,763) (8,537) (191) —
 —
 (23,491)
Excess tax benefit from unit-based compensation expense —
 1,519
 —
 —
 —
 1,519
Net cash from (for) financing activities (189,281) 87,460
 (2,515) (104,165) —
 (208,501)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 477
 —
 —
 477
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period —
 335
 4,006
 (1,622) —
 2,719
Balance, beginning of period —
 397
 119
 6,803
 —
 7,319
Balance, end of period $—
 $732
 $4,125
 $5,181
 $—
 $10,038
             

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CEDAR FAIR, L.P.
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the Twelve Months Ended SeptemberMarch 25, 20112012 (As restated)
(In thousands)
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $101,376
 $(9,652) $25,380
 $19,056
 $58,064
 $194,224
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates 25,281
 23,147
 (1,356) 10,992
 (58,064) —
Capital expenditures (44,247) —
 (13,179) (27,488) —
 (84,914)
Net cash from (for) investing activities (18,966) 23,147
 (14,535) (16,496) (58,064) (84,914)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Term debt borrowings 13,246
 9,358
 334
 —
 —
 22,938
Intercompany term debt (payments) receipts —
 2,063
 —
 (2,063) —
 —
Term debt payments, including early termination penalties (24,211) (17,091) (536) —
 —
 (41,838)
Distributions (paid) received (30,559) 121
 —
 —
 —
 (30,438)
Exercise of limited partnership unit options —
 7
 —
 —
 —
 7
Payment of debt issuance costs (12,886) (9,110) (761) —
 —
 (22,757)
Net cash from (for) financing activities (54,410) (14,652) (963) (2,063) —
 (72,088)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 (2,611) —
 —
 (2,611)
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period 28,000
 (1,157) 7,271
 497
 —
 34,611
Balance, beginning of period 21,000
 3,646
 29,202
 7,853
 —
 61,701
Balance, end of period $49,000
 $2,489
 $36,473
 $8,350
 $—
 $96,312
             
  Cedar Fair L.P. (Parent) Co-Issuer Subsidiary (Magnum) Co-Issuer Subsidiary (Cedar Canada) Guarantor Subsidiaries Eliminations Total
             
NET CASH FROM (FOR) OPERATING ACTIVITIES $113,654
 $(89,658) $14,102
 $182,798
 $(367) $220,529
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES            
Investment in joint ventures and affiliates (16,818) (6,588) 1,126
 21,913
 367
 —
Capital expenditures (40,662) —
 (22,440) (34,253) —
 (97,355)
Net cash from (for) investing activities (57,480) (6,588) (21,314) (12,340) 367
 (97,355)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES            
Net borrowings (payments) on revolving credit loans 31,000
 —
 (3,110) —
 —
 27,890
Intercompany term debt (payments) receipts —
 166,023
 —
 (166,023) —
 —
Term debt payments, including early termination penalties (13,831) (9,763) (306) —
 —
��(23,900)
Derivative settlement —
 —
 (50,450) —
 —
 (50,450)
Distributions (paid) received (73,343) 273
 —
 —
 —
 (73,070)
Capital (contribution) infusion —
 (60,000) 60,000
 —
 —
 —
Payment of debt issuance costs —
 —
 (723) —
 —
 (723)
Exercise of limited partnership unit options —
 53
 —
 —
 —
 53
Excess tax benefit from unit-based compensation —
 (437) —
 —
 —
 (437)
Net cash from (for) financing activities (56,174) 96,149
 5,411
 (166,023) —
 (120,637)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —
 —
 (2,473) —
 —
 (2,473)
CASH AND CASH EQUIVALENTS            
Net increase (decrease) for the period —
 (97) (4,274) 4,435
 —
 64
Balance, beginning of period —
 494
 4,393
 2,368
 —
 7,255
Balance, end of period $—
 $397
 $119
 $6,803
 $—
 $7,319


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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Business Overview:

We generate our revenues primarily from sales of (1) admission to our parks, (2) food, merchandise and games inside our parks, and (3) hotel rooms, food and other attractions outside our parks. Our principal costs and expenses, which include salaries and wages, advertising, maintenance, operating supplies, utilities and insurance, are relatively fixed and do not vary significantly with attendance.

Each of our properties is run by a park general manager and operates autonomously. Management reviews operating results, evaluates performance and makes operating decisions, including the allocation of resources, on a property-by-property basis.

Aside from attendance and guest per capita statistics, discrete financial information and operating results are not prepared at the regional level, but rather at the individual park level for use by the CEO, who is the Chief Operating Decision Maker (CODM), as well as by the Chief Financial Officer, the Chief Operating Officer, the park general managers, and the Executive Vice President, Operations.


Critical Accounting Policies:
This management’s discussion and analysis of financial condition and results of operations is based upon our unaudited condensed consolidated financial statements, which were prepared in accordance with accounting principles generally accepted in the United States of America. These principles require us to make judgments, estimates and assumptions during the normal course of business that affect the amounts reported in the unaudited condensed consolidated financial statements. Actual results could differ significantly from those estimates under different assumptions and conditions.
Management believes that judgment and estimates related to the following critical accounting policies could materially affect our consolidated financial statements:
 
•Property and Equipment
 
•Impairment of Long-Lived Assets
 
•Goodwill and Other Intangible Assets
 
•Self-Insurance Reserves
 
•Derivative Financial Instruments
 
•Revenue Recognition

Income Taxes
In the thirdfirst quarter of 20122013, there were no changes in the above critical accounting policies previously disclosed in our Annual Report on Form 10-K10-K/A for the year ended December 31, 20112012. except as noted below.
Change in Depreciation Method
Effective January 1, 2013, the Partnership changed its method of depreciation for the group of assets acquired as a whole in 1983, as well as for the groups of like assets of each subsequent business acquisition from the composite method to the unit method.
Historically, the Partnership had used the composite depreciation method for land improvements, buildings, rides and equipment for the group of assets acquired as a whole in 1983, as well as for the group of like assets of each subsequent business acquisition. The unit method was only used for all individual assets purchased. Under the composite depreciation method, assets with similar estimated lives are grouped together and the several pools of assets are depreciated on an aggregate basis. No gain or loss is recognized on normal retirements of composite assets. Instead, the net book value of a retired asset reduces accumulated depreciation for the composite group. Unusual retirements of composite assets could result in the recognition of a gain or loss. Under the unit method of depreciation, individual assets are depreciated over their estimated useful lives, with gains and losses on all asset retirements recognized currently in income.
In order to improve comparability and enhance the level of precision associated with allocating historical cost, the Partnership had determined that it was preferable to change from the composite method of depreciation to the unit method of depreciation for

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all assets. The Partnership believes that pursuant to generally accepted accounting principles, changing from the composite method of depreciation to the unit method of depreciation is a change in accounting estimate that is effected by a change in accounting principle, which should be accounted for prospectively. This prospective application will result in the discontinuance of the composite method of depreciation for all prior acquisitions with the existing net book value of each composite pool allocated to the remaining individual assets (units) in that pool with each unit assigned an appropriate remaining useful life on an individual unit basis. Assigning a useful life to each unit in the various composite pools had an insignificant effect on the weighted average useful lives of all assets that were previously accounted for under the composite method.
The change in depreciation method had an immaterial impact on the Condensed Consolidated Financial Statements for the quarter ended March 31, 2013.Future asset retirements could have a material impact on the Condensed Consolidated Financial Statements in the periods such items occur.


Adjusted EBITDA:
We believe that Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, other non-cash items, and adjustments as defined in the Amended 20102013 Credit Agreement) is a meaningful measure of park-level operating profitability because we use it for measuring returns on capital investments, evaluating potential acquisitions, determining awards under incentive compensation plans, and calculating compliance with certain loan covenants. Adjusted EBITDA is provided in the discussion of results of operations that follows as a supplemental measure of our operating results and is not intended to be a substitute for operating income, net income or cash flows from operating activities as defined under generally accepted accounting principles. In addition, Adjusted EBITDA may not be comparable to similarly titled measures of other companies.

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The table below sets forth a reconciliation of Adjusted EBITDA to net income for the three-, nine- and twelve-month periods ended September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012.
 
  Three months ended Nine months ended Twelve months ended
  9/30/2012 9/25/2011 9/30/2012 9/25/2011 9/30/2012 9/25/2011
  (13 weeks) (13 weeks) (39 weeks) (38 weeks) (53 weeks) (52 weeks)
  (In thousands )
Net income $140,688
 $152,218
 $111,595
 $71,574
 $110,767
 $8,116
Interest expense 26,863
 41,353
 83,902
 124,650
 116,437
 171,049
Interest income (13) (32) (31) (120) (68) (194)
Provision (benefit) for taxes 51,713
 37,844
 41,395
 21,773
 30,839
 (12,424)
Depreciation and amortization 60,747
 63,448
 113,156
 110,857
 128,136
 126,382
EBITDA 279,998
 294,831
 350,017
 328,734
 386,111
 292,929
Net effect of swaps (175) (3,962) (1,318) (3,507) (10,930) 1,772
Unrealized foreign currency (gain) loss (14,737) 17,314
 (14,108) 13,224
 (17,502) 549
Non-cash equity expense (income) 362
 —
 2,630
 (228) 2,619
 (269)
Loss on impairment of goodwill and other intangibles —
 —
 —
 —
 —
 903
Loss on impairment/retirement of fixed assets, net 25,000
 880
 24,230
 1,076
 25,719
 63,509
Terminated merger costs —
 —
 —
 80
 150
 (79)
Refinancing costs —
 (195) —
 955
 —
 955
Other non-recurring items (as defined) 1,861
 836
 4,026
 6,107
 7,445
 6,107
Adjusted EBITDA (1)
 $292,309
 $309,704
 $365,477
 $346,441
 $393,612
 $366,376
             
(1) As permitted by and defined in the Amended 2010 Credit Agreement        
  Three months ended Twelve months ended
  3/31/2013 3/25/2012 3/31/2013 3/25/2012
  (13 weeks) (12 weeks) (53 weeks) (52 weeks)
  (In thousands)
Net income (loss) $(109,126) $(65,415) $58,145
 $84,807
Interest expense 25,763
 26,803
 109,579
 142,876
Interest income (40) (16) (92) (92)
Provision (benefit) for taxes (35,659) (21,539) 17,638
 5,937
Depreciation and amortization 4,786
 4,079
 127,013
 125,892
EBITDA (114,276) (56,088) 312,283
 359,420
Loss on early extinguishment of debt 34,573
 —
 34,573
 —
Net effect of swaps 9,211
 (970) 8,689
 (15,976)
Unrealized foreign currency (gain) loss 8,881
 (8,249) 7,949
 8,502
Non-cash equity expense 2,933
 1,700
 4,498
 1,689
Loss on impairment/retirement of fixed assets, net 600
 92
 30,844
 11,251
(Gain) on sale of other assets —
 —
 (6,625) —
Terminated merger costs —
 —
 —
 230
Refinancing costs —
 —
 —
 (34)
Other non-recurring items (as defined) 805
 1,721
 3,264
 6,823
Adjusted EBITDA (1)
 $(57,273) $(61,794) $395,475
 $371,905
         
(1) As permitted by and defined in the 2013 Credit Agreement    

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Results of Operations:

Our results of operations for the nine, three and twelve months ended September 30, 2012 and September 25, 2011 are not directly comparable as the current nine- and twelve month periods include an additional week of operations due to the timing of the fiscal third quarter close, and as the current three-month period includes fewer operating days due to the timing of the fiscal second and third quarter closes. Since a large portion of the variances in our statements of operations is due to the difference in the number of operating days in the current fiscal periods, we will also compare current operating results to the prior year period ended October 2, 2011.

Immaterial Restatement -

We have made two separate corrections relating to our use of the composite depreciation methodmethod.

The first correction, which impacts the Balance Sheet at March 25, 2012 and the Statement of Operations and Other Comprehensive Income for the group3 and 12 month periods ended March 25, 2012, related to a misapplication of assets acquired as a whole in 1983, as well as for groups of assets in each subsequent business acquisition.the composite depreciation method. Upon the normal retirement of an asset within a composite group, our practice generally hashad been to extend the depreciable life of that composite group beyond its original estimated useful life. In conjunction with the preparation of our financial statements for the three months ended July 1,in 2012, wemanagement determined that this methodology was not appropriate. As a result, we revised the useful lives of our composite groups to their original estimated useful life (ascribed upon acquisition) and corrected previously computed depreciation expense (and accumulated depreciation).

The second correction, which impacts the Balance Sheet at March 25, 2012 and the Statement of Operations and Other Comprehensive Income for the 12 month period ended March 25, 2012, reflects a subsequent determination that a disposition from our composite group of assets was considered to be unusual. In certain situations under the composite method, disposals are considered unusual and, accordingly, losses are not included in the composite depreciation pool but are rather charged immediately to expense. In 2013, the Partnership's initial determination of whether a specific asset retired under the composite method of depreciation in 2011 was normal was challenged by the SEC Staff. We evaluated the amount and nature of these adjustments andultimately concluded that theysuch disposition was unusual and that a $8.8 millioncharge be reflected in the 2011 financial statements.

First Quarter -

Operating results for the first quarter historically include less than 5% of our full-year revenues and attendance. The results include normal off-season operating, maintenance and administrative expenses at our ten seasonal amusement parks and four outdoor water parks, as well as daily operations at Knott's Berry Farm, which is open year-round, and Castaway Bay, which is generally open daily from Memorial Day to Labor Day plus a limited daily schedule for the balance of the year.
The following table presents key financial information for the three months ended March 31, 2013 and March 25, 2012:
  Three months ended Three months ended Increase (Decrease)
  3/31/2013 3/25/2012 $ %
  (13 weeks) (12 weeks)    
    (As restated)    
  (Amounts in thousands)
Net revenues $41,799
 $28,198
 $13,601
 48.2 %
Operating costs and expenses 102,733
 93,356
 9,377
 10.0 %
Depreciation and amortization 4,786
 4,079
 707
 17.3 %
Loss on impairment / retirement of fixed assets 600
 92
 508
 N/M
Operating loss $(66,320) $(69,329) $3,009
 (4.3)%
         
Other Data:        
Adjusted EBITDA $(57,273) $(61,794) $4,521
 (7.3)%

For the quarter ended March 31, 2013, net revenues increased to $41.8 million from $28.2 million for the first quarter of 2012. The increase between periods was primarily due to the strong first-quarter performance in both attendance and per-capita spending at Knott's Berry Farm, our only year-round property, compared with the first quarter a year ago, as well as an extra week of operations due to the earlier timing of Easter in 2013 compared to 2012. At the end of the first quarter, only five of our 15 properties were not materialin operation. The other parks, including our larger parks, Cedar Point and Kings Island located in Ohio and Canada's Wonderland in Toronto, were in the final stages of preparing to eitheropen for the 2013 operating season.

Operating costs and expenses for the quarter increased $9.3 million to $102.7 million from $93.4 million in 2012 and were in line with expectations. Operating results for the first quarter include normal off-season operating, maintenance and administrative

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expenses at our prior annualseasonal amusement and water parks, and daily operations at Knott’s Berry Farm and Castaway Bay. The increase in first-quarter costs reflects a $5.4 million increase in operating expenses and a $2.3 million increase in selling, general and administrative ("SG&A") expenses. The cost of food, merchandise and games revenues for the period increased slightly due to sales volume increases at Knott's Berry Farm in the first quarter of 2013. The $5.4 million increase in operating expenses was due primarily to the extra week of operations in the first quarter of 2013 compared with 2012. For the quarter, labor costs increased $3.8 million, maintenance expense increased $2.2 million and operating supplies increased $0.9 million. These increases in operating costs were somewhat offset by a reduction in insurance expense due to a prior-year, non-recurring public liability claim at one of our parks. The $2.3 million increase in SG&A expenses was due primarily to increases in first-quarter advertising fees and full-time labor costs, largely related to full staffing levels.

Interest expense for the first quarter of 2013 was $25.8 million, representing a $1.0 million decrease compared to the first quarter of 2012. The decrease in interest expense was primarily due to the settlement of our Canadian swap in the first quarter of 2012.

During the first quarter of 2013, the net effect of our swaps decreased $10.2 million to a non-cash charge to earnings of $9.2 million, reflecting the regularly scheduled amortization of amounts in AOCI related to interest rate swaps, the write off of amounts in AOCI related to de-designated interest rate swaps, as well as gains from marking the ineffective and de-designated swaps to market. During the first quarter of 2013 we also recognized a $9.0 million charge to earnings for unrealized/realized foreign currency gains and losses, $8.9 million of which represents an unrealized foreign currency loss on the U.S.-dollar denominated debt held at our Canadian property. Due to our March 2013 refinancing, loan fees related to our 2010 and 2011 financings were written off, resulting in a $34.6 million charge to earnings in the period.

During the quarter, a benefit for taxes of $35.7 million was recorded to account for publicly traded partnership (PTP) taxes and the tax attributes of our corporate subsidiaries, compared to a benefit for taxes of $21.5 million in the same period a year ago. Actual cash taxes paid or quarterly financial statements. Nonetheless, the historical financial statement amounts included in this filing have been corrected for this error. We expect to likewise correct previously presented historical financial statementspayable are estimated to be included in future filings, including the annual financial statements to be included in our Annual Report on Form 10-Kbetween $14-$17 million for the 2013 calendar year.

After interest expense and the provision for taxes, net loss for the quarter totaled $109.1 million, or $1.95 per diluted limited partner unit, compared with net loss of $65.4 million, or $1.18 per diluted limited partner unit, for the first quarter a year ending December 31, 2012.ago. The larger net loss for the period is due to the loss on early debt extinguishment and a change in the unrealized/realized loss on foreign currency exchange, offset somewhat by the increased first-quarter revenues.


NineTwelve Months Ended September 30, 2012March 31, 2013 -

The fiscal nine-monthtwelve-month period ended September 30, 2012,March 31, 2013, consisted of a 39-week53-week period and included a total of 2,178 operating days compared with 3852 weeks and 2,148 operating days for the fiscal nine-monthtwelve-month period ended SeptemberMarch 25, 2011.2012. Operating days were virtually identical, as the current period had only one additional operating day.

The following table presents key financial information for the ninetwelve months ended September 30, 2012March 31, 2013 and SeptemberMarch 25, 20112012:
  Nine months ended Nine months ended Increase (Decrease)
  9/30/2012 9/25/2011 $ %
  (39 weeks) (38 weeks)    
  (Amounts in thousands except per capita spending)
         
Net revenues $939,249
 $883,627
 $55,622
 6.3 %
Operating costs and expenses 580,246
 541,665
 38,581
 7.1 %
Depreciation and amortization 113,156
 110,857
 2,299
 2.1 %
Loss on impairment / retirement of fixed assets, net 24,230
 1,076
 23,154
 N/M
Operating income $221,617
 $230,029
 $(8,412) (3.7)%
N/M - Not meaningful        
Other Data:        
Adjusted EBITDA $365,477
 $346,441
 $19,036
 5.5 %
Adjusted EBITDA margin 38.9% 39.2% $—
 (0.3)%
Attendance 20,689
 20,114
 575
 2.9 %
Per capita spending $41.78
 $40.15
 $1.63
 4.1 %
Out-of-park revenues $99,526
 $97,622
 $1,904
 2.0 %
  Twelve months ended Twelve months ended Increase (Decrease)
  3/31/2013 3/25/2012 $ %
  (53 weeks) (52 weeks)    
    (As restated)    
  (Amounts in thousands)
Net revenues $1,082,055
 $1,029,801
 $52,254
 5.1%
Operating costs and expenses 694,139
 666,535
 27,604
 4.1%
Depreciation and amortization 127,013
 125,892
 1,121
 0.9%
(Gain) on sale of other assets (6,625) —
 (6,625) N/M
Loss on impairment/retirement of fixed assets 30,844
 11,251
 19,593
 174.1%
Operating income $236,684
 $226,123
 $10,561
 4.7%
N/M - Not meaningful        
Other Data:        
Adjusted EBITDA $395,475
 $371,905
 $23,570
 6.3%
Adjusted EBITDA margin 36.5% 36.1% —
 0.4%


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Net revenues totaled $1,082.1 millionfor the ninetwelve months ended September 30, 2012March 31, 2013, increasing $52.3 million, from $1,029.8 million increased $55.6 million to $939.2 million from $883.6 million duringfor the ninetrailing twelve months ended SeptemberMarch 25, 20112012. The increase in revenues reflects an increase of 575,000 visits, or 3%, in combined attendanceRevenues for the nine-monthtwelve-month period ended September 30, 2012 when compared withincreased 5% on the nine-month period ended September 25, 2011. The increase in revenues also reflects a 4%, or $1.63, increase in averagestrength of higher attendance and in-park guest per capita spending. In-park guest per capita spending represents the amount spent per attendee to gain admission to a park, plus all amounts spent while inside the park gates. The increase in per capita spending was largely due to the successful introduction of new premium benefit offerings and the positive impact of new customer messaging and dynamic pricing initiatives. Attendance increased year-over-year on virtually the same number of operating days as our season pass sales and visits increased during the same nine-month period and a 2%, or $1.9 million, increase incomparable periods.

Meanwhile, out-of-park revenues. Out-of-park revenues, includewhich represents the sale of hotel rooms, food, merchandise and other complementary activities located outside of the park gates, as well as e-commerce transaction fees. In-park guest per capita spending representsincreased slightly in the average amount spent per attendee to gain admission to a park

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plus all amounts spent while inside the park gates. Revenuescomparable periods. The increase in net revenues for the first ninetwelve months of the yearended March 31, 2013 also reflectreflects the negative impact of currency exchange rates and the weakening U.S. dollar on our Canadian operations ($4.5(approximately $4.5 million) during the period.

For the nine-month period ended September 30, 2012, operatingOperating costs and expenses increased 7%$27.6 million, or 4%, or $38.5to $694.1 million to $580.2 million from $541.7versus $666.5 million for 2012 and were in line with expectations. The increase in costs and expenses was the nine-month period ended September 25, 2011, the net result of a $3.9$4.0 million increase in cost of goods sold, a $29.3$19.8 million increase in operating expenses, and a $5.4 million$3.9 increase in selling, generalSG&A costs. The 4% increase in cost of goods sold is consistent with anticipated cost increases associated with our efforts to improve the quality of food and other product offerings at our parks. Operating expenses increased due to several factors, including higher employment-related costs, higher operating supply costs, and higher self-insurance expenses. Employment-related costs increased approximately $12.6 million due to normal merit increases, increases in health-related benefit costs, additional staffing levels associated with new premium benefit offerings and other initiatives aimed at improving the overall guest experience, and non-recurring severance payments. Operating supplies and expenses increased approximately $5.3 million due primarily to initiatives to expand or enhance live entertainment at the parks, as well as incremental costs associated with our e-commerce platform and higher attendance. These increases in operating costs were somewhat offset by a reduction in insurance expense due to a prior-year (first quarter of 2012), non-recurring public liability claim at one of our parks.

The increase in SG&A costs was due to an increase in employment-related costs ($4.5 million), operating supplies ($3.8 million), and agency advertising fees ($2.7 million), offset by decreases in professional and administrative costs ("SG&A")($5.9 million). DepreciationThe increase in employment costs was primarily the result of higher wages and amortization expense for the period increased $2.3 millionbenefits due to normal merit increases and full-staffing levels. Increases in operating supplies and advertising fees were due to the earlier timing of Easter, as well as incremental costs to support operating initiatives including general infrastructure improvements. Professional and administrative fees decreased primarily due to a reduction in litigation expenses and costs for SEC compliance matters related to Special Meeting requests. The overall increase in capital spending when compared withcosts and expenses also reflects the prior year. The positive impact of exchange rates on our Canadian operations ($1.2 million) during the period.

Loss on impairment/retirement of fixed assets, reported fornet, during the nine-month period totaled $30.8 million, which reflects a non-cash charge to earnings of $25.0 million for the partial impairment of operating and non-operating fixed assets at Wildwater Kingdom netalong with losses on other retirements. During the twelve-month period ended March 31, 2013, two non-core assets were sold at gains totaling $6.6 million. During the twelve-month period ended March 25, 2012, a charge of an $0.8$11.3 million gain fromfor the sale of a non-operating asset at one of our properties. After depreciation, amortization, loss on impairment / retirement of fixed assets was recorded which includes the retirement of the asset as described in Note 11 to the financial statements.

Depreciation and amortization expense for the period increased $1.1 million compared with the prior period due primarily to an increase in capital expenditures for the 2012 season. After depreciation and amortization, as well as impairment charges and all other non-cash costs, operating income for the current period decreased $8.4increased $10.6 million to $221.6$236.7 million through the first nine months of 2012 from operating income of $230.0 million through the first nine months of 2011.$226.1 million.

Interest expense for the first three quarters of 2012 was $83.9twelve months ended March 31, 2013 decreased $33.3 million a decrease of $40.7to $109.6 million, from $142.9 million for the first three quarters of 2011.same twelve-month period a year ago. The reduction in interest expense iswas primarily attributable to an approximate 300 basis point (bps) decline in our effective interest rate, the result of lower fixed rates on London InterBank Offered Rate (LIBOR) within our interest-rate swap contracts. TheAdditionally during the current period, $25.0 million of term debt principal payments were made, reducing our average fixed LIBOR rate in our swap agreements declined from 5.62% in 2011 to 2.48% in 2012.debt outstanding.

ForDuring the current period, the net effect of our interest rate swaps decreased $2.2was recorded as a charge to earnings of $8.7 million between years, resulting incompared to a non-cash benefit to earnings of $1.3$16.0 million for the first nine months of 2012, as compared with a $3.5 million non-cash benefit to earnings for the nine-month period in 2011.prior period. The difference reflects the regularly scheduled amortization of amounts in Accumulated other comprehensive income ("AOCI")AOCI related to the swaps and the write off of AOCI amounts related to de-designated interest rate swaps, which were offset by gains from marking the ineffective and de-designated swaps to market and foreign currency gains related to the U.S.-dollar denominated Canadian term loan in the current period. During the current year-to-date period, we also recognized a $13.9$8.2 million net benefitcharge to earnings for unrealized/realized foreign currency gains,losses, which included a $14.1$7.9 million unrealized foreign currency gainloss on the U.S.-dollar denominated debt held at our Canadian property. Due to our March 2013 refinancing, loan fees that were paid as part

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of our 2010 and 2011 financings were written off, resulting in a $34.6 million non-cash charge to earnings recorded in "Loss on early debt extinguishment" on the consolidated statement of operations.

During the first fiscal nine months of 2012, aA provision for taxes of $41.4$17.6 million was recorded to accountin the period for publicly traded partnership (“PTP”) taxes and the tax attributes of our corporate subsidiaries.subsidiaries and publicly traded partnership (PTP) taxes. This compares with a $21.8 million provision for taxes of $5.9 million in period ended March 25, 2012 for the first fiscal nine monthstax attributes of 2011. The year-over-year variation in the tax provision is due primarily to an increase in the income subject to tax. Actual cash taxes paid or payable for the 2012 calendar year are estimated to be between $11our corporate subsidiaries and $13 million. The Partnership also expects to receive a $10.4 million refund of prior year taxes paid resulting from the carry back of the loss recognized from the settlement of a derivative contract.PTP taxes.

After interest expense and the benefitprovision for taxes, net income for the nine months ended September 30, 2012period totaled $111.6$58.1 million, or $2.00$1.04 per diluted limited partner unit, compared with net income of $71.6$84.8 million, or $1.28$1.52 per unit, for the nine months ended September 25, 2011.a year ago.

It is important to note that the current nine-month results benefited from an additional week, or 30 more operating days, due to the timing of the third quarter fiscal close. Comparing both 2012 and 2011 on a 39-week basis, net revenues would have been up $41.1 million, or 5%, on increases in both attendance and in-park guest per capita spending. On a comparable basis, attendance would have increased 228,000 visits, primarily due to an increase in season pass attendance, and in-park per capita spending would have increased $1.67, or 4%, primarily due to new premium benefit offerings and the positive impact of new customer messaging and dynamic pricing. Over that same comparable basis, out-of-park revenues would have decreased by approximately $0.3 million, or less than 1%.

Operating costs and expenses on a comparable 39-week basis would have increased approximately $27.9 million, or 5%, due to an increase of $2.9 million, or 3%, in cost of goods sold, an increase in operating expenses of $21.9 million, or 6%, and an increase of $3.1 million, or 3%, in SG&A costs. The overall increase in costs and expenses also reflects the positive impact of exchange rates on our Canadian operations (approximately $1.6 million) during the nine-month period ended September 30, 2012.

The 3% increase in cost of goods sold is consistent with anticipated cost increases associated with our efforts to improve the quality of food and other product offerings at the parks in 2012. Operating expenses in the 39-week period increased due to several factors, including higher employment-related costs, higher maintenance and operating supply costs, and higher self-insurance expenses. Employment-related costs increased approximately $11.0 million due to normal merit increases, increases in health-related benefit costs, additional staffing levels associated with new premium benefit offerings and other initiatives aimed at improving the overall guest experience, and non-recurring severance payments. Due in part to mild weather, we were able to accelerate off-season maintenance projects into the first half of the year, resulting in year-over-year maintenance expense increasing by approximately $4.4 million. Operating supplies and expenses increased approximately $4.0 million due primarily to initiatives

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to expand or enhance live entertainment at the parks, as well as incremental costs associated with our new e-commerce platform. During the first nine months, public liability and workers compensation expense increased $2.1 million due to claim settlements and an increase in our reserves based on management's estimates of future claims.

SG&A expense for the comparable 39-week period increased approximately $3.1 million compared to same period in 2011 due to an increase in operating supplies of $4.7 million, an increase in advertising costs of $1.5 million, and an increase in employee related costs of $2.9 million. The operating supplies and advertising increases were due to incremental costs to support 2012 operating initiatives including general infrastructure improvements. These increases in expense were offset somewhat by a reduction in litigation expenses and costs for SEC compliance matters related to Special Meeting requests in 2011.

For the fiscal nine-month period ended September 30, 2012,We believe Adjusted EBITDA (as defined in the Amended 2010 Credit Agreement), which we believe is a meaningful measure of our park-level operating results (for additional information regarding Adjusted EBITDA, including how we define and use Adjusted EBITDA, as well as a reconciliation from net income, see Note 6 in Item 6, “Selected Financial Data,” on pages 15-16). For the twelve-month period ended March 31, 2013, Adjusted EBITDA increased $23.6 million, or 6%, to $365.5 million compared with $346.4 million$395.5 million. Over this same period, our Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) increased 40 bps to 36.5% from 36.1% for the fiscal nine-monthtwelve-month period ended SeptemberMarch 25, 2011. This2012. The increase was due in part to the extra week in the current fiscal nine-month period. On a same-week basis, Adjusted EBITDA for the nine-month period would have still been up approximately $15.2 million, or 4%, between years,was primarily due to anthe increase in revenues resulting from the successful introduction of our new premium benefit offerings and dynamic pricing initiatives, as well as the successful expansion of our season pass base. These revenue gains were offset somewhat by an increase in operating costs in the period. For additional information regarding Adjusted EBITDA, including how we define Adjusted EBITDA, why we believe it provides useful information, and for a reconciliation to net income, see pages 33-34.

Third Quarter -

The fiscal three-month period ended September 30, 2012, consisted of a 13-week period and included a total of 1,177 operating days compared with 13 weeks and 1,253 operating days for the fiscal three-month period ended September 25, 2011. The variance in days is due to a shift in the operating calendar.

The following table presents key financial information for the three months ended September 30, 2012 and September 25, 2011:
  Three months ended Three months ended Increase (Decrease)
  9/30/2012 9/25/2011 $ %
  (13 weeks) (13 weeks)    
  (Amounts in thousands)
Net revenues $553,445
 $572,268
 $(18,823) (3.3)%
Operating costs and expenses 263,657
 262,188
 1,469
 0.6 %
Depreciation and amortization 60,747
 63,448
 (2,701) (4.3)%
Loss on impairment / retirement of fixed assets 25,000
 880
 24,120
 N/M
Operating income $204,041
 $245,752
 $(41,711) (17.0)%
N/M - Not meaningful        
Other Data:        
Adjusted EBITDA $292,309
 $309,704
 $(17,395) (5.6)%
Adjusted EBITDA margin 52.8% 54.1% —
 (1.3)%
Attendance 11,960
 12,933
 (973) (7.5)%
Per capita spending $42.90
 $40.84
 $2.06
 5.0 %
Out-of-park revenues $54,260
 $58,879
 $(4,619) (7.8)%

For the quarter ended September 30, 2012, net revenues decreased 3%, or $18.8 million, to $553.5 million from $572.3 million in 2011. This decrease reflects a 5% increase in average in-park per capita spending, offset by an 8% decrease in combined attendance (973,000 visits), and an 8% ($4.6 million) decrease in out-of-park revenues. The decreases in net revenues and attendance was largely attributable to the decrease in operating days in the quarter due to the way the fiscal calendar fell in 2012 compared with 2011. In-park per capita spending increased primarily due to new premium benefit offerings and the positive impact of new customer messaging and dynamic pricing. Out-of-park revenues decreased due to soft results in accommodations being somewhat offset by fees generated from our new e-commerce initiatives. The decrease in revenues for the third quarter of 2012 also reflects the negative impact of exchange rates on our Canadian operations ($2.4 million) during the period.


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Operating costs and expenses for the quarter increased less than 1%, or $1.5 million, to $263.7 million from $262.2 million in the third quarter of 2011, the net result of a $1.4 million decrease in cost of goods sold, a $1.9 million increase in operating expenses and a $1.0 million increase in SG&A costs. Operating cost and expense variances between years were also affected by the fewer number of operating days in the current fiscal quarter, as discussed above. Depreciation and amortization expense for the quarter decreased $2.7 million due primarily to the reduction in operating days in the period, on which depreciation expense is based. During the current quarter, we recognized a non-cash charge to earnings of $25.0 million for the partial impairment of operating and non-operating fixed assets at Wildwater Kingdom.

Interest expense for the third quarter of 2012 was $26.9 million, representing an $14.5 million decrease from the interest expense for the third quarter of 2011. As mentioned in the nine-month discussion above, interest expense decreased primarily due to an approximate 300 bps decline in our effective interest rate. The decline in the effective interest rate is primarily due to lower fixed rates of LIBOR in debt associated derivative contracts, which declined from 5.62% in 2011 to 2.48% in 2012.

The net effect of our swaps during the third quarter was a non-cash benefit to earnings of $0.2 million, representing a decrease of $3.8 million from the prior year. This non-cash benefit reflects the regularly scheduled amortization of amounts in AOCI related to the swaps. During the 2012 third quarter, we also recognized a $15.0 million net benefit to earnings for unrealized/realized foreign currency gains, $14.7 million of which represents an unrealized foreign currency gain on the U.S.-dollar denominated debt held at our Canadian property.

During the quarter, a provision for taxes of $51.7 million was recorded to account for PTP taxes and the tax attributes of our corporate subsidiaries, compared to a provision for taxes of $37.8 million in the same period a year ago. The variation in the tax provision recorded between periods is due primarily to the increase in income subject to tax. After interest expense and the provision for taxes, net income for the quarter totaled $140.7 million, or $2.51 per diluted limited partner unit, compared with net income of $152.2 million, or $2.73 per unit, for the third quarter a year ago.

It is important to note that the current three-month results were negatively impacted by 76 less operating days, due to the timing of the second and third quarter fiscal closes. Comparing the third quarters of 2012 and 2011 on a comparable operating-day basis, net revenues would have been up $20.8 million, or 4%, on an increase in average in-park guest per capita spending offset by a slight decrease in attendance and a 3% decrease in out-of-park revenues.

Operating costs and expenses on a comparable operating-day basis would have increased approximately $12.4 million, or 5%, on a $2.1 million increase in cost of goods sold, an $8.4 million increase in operating expenses, and $1.9 million increase in SG&A costs. The overall increase in costs and expenses also reflects the positive impact of exchange rates on our Canadian operations (approximately $0.6 million) during the third quarter. The increase in cost of goods sold is consistent with anticipated cost increases associated with our efforts to improve the quality of food and other product offerings at the parks in 2012. Consistent with our nine-month discussion above, operating expenses in the third quarter increased as a result of higher employment-related costs, higher maintenance and operating supply costs, and higher self-insurance expenses. The increase in SG&A expense for the quarter reflects an increase in operating supplies associated with the new e-commerce initiative and general park infrastructure improvements, offset slightly by a reduction in litigation expenses and costs for SEC compliance matters related to Special Meeting requests in the third quarter of 2011.

For the current quarter, Adjusted EBITDA decreased to $292.3 million from $309.7 million for the fiscal third quarter of 2011. The $17.4 million decrease in Adjusted EBITDA was due to the shift in operating days during the quarter. On a same week basis, Adjusted EBITDA would have increased $11.3 million due to incremental revenues resulting from the introduction of new premium benefit offerings, which contributed to increased average guest per capita spending, as well as an increase in attendance in the quarter. Partially offsetting these gains on a same week basis were higher park-level operating costs during the period related to park pre-opening and off-season maintenance projects and increases in costs to support 2012 initiatives, including a new e-commerce platform and infrastructure improvements. For additional information regarding Adjusted EBITDA, including how we define Adjusted EBITDA, why we believe it provides useful information, and for a reconciliation to net income, see pages 33-34.










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Twelve Months Ended September 30, 2012 -

The fiscal twelve-month period ended September 30, 2012, consisted of a 53-week period and included a total of 2,416 operating days compared with 52 weeks and 2,381 operating days for the fiscal twelve-month period ended September 25, 2011.

The following table presents key financial information for the twelve months ended September 30, 2012 and September 25, 2011:
  Twelve months ended Twelve months ended Increase (Decrease)
  9/30/2012 9/25/2011 $ %
  (53 weeks) (52 weeks)    
  (Amounts in thousands)
Net revenues $1,084,094
 $1,013,316
 $70,778
 7.0%
Operating costs and expenses 701,915
 650,925
 50,990
 7.8%
Depreciation and amortization 128,136
 126,382
 1,754
 1.4%
Loss on impairment of goodwill and other intangibles —
 903
 (903) N/M
Loss on impairment/retirement of fixed assets 25,719
 63,509
 (37,790) N/M
Operating income $228,324
 $171,597
 $56,727
 33.1%
N/M - Not meaningful        
Other Data:        
Adjusted EBITDA $393,612
 $366,376
 $27,236
 7.4%
Adjusted EBITDA margin 36.3% 36.2% —
 0.2%
Attendance 23,961
 23,135
 826
 3.6%
Per capita spending $41.44
 $39.91
 $1.53
 3.8%
Out-of-park revenues $119,460
 $114,258
 5,202
 4.6%

Net revenues totaled $1,084.1 million for the twelve months ended September 30, 2012, increasing $70.8 million, from $1,013.3 million for the trailing twelve months ended September 25, 2011. The increase in revenues was due to an increase in attendance of 826,000 visits, or 4%, an increase in average in-park per capita spending of $1.53, or 4%, and an increase in out-of-park revenues of $5.2 million, or 5%. The attendance increase was due to an increase in season pass visitation as well as the effect of the extra operating days in the period. The increase in average in-park guest per capita spending is primarily due to new premium benefit offerings and the positive impact from new customer messaging and dynamic pricing. Out-of-park revenues increased due to our hotel properties and due to an increase in fees generated by our new e-commerce initiatives. The increase in revenues was also positively affected by the additional operating days in the current fiscal period.

When comparing the two twelve-month periods, operating costs and expenses increased $51.0 million, or 8%, to $701.9 million in 2012 from $650.9 million in 2011. The increase in operating costs and expenses was the net result of a $5.2 million increase in cost of goods sold, a $33.2 million increase in operating expenses and an increase of $12.6 million in selling, general and administrative costs. The increase in operating expenses is primarily attributable to higher employment related expenses of $15 million, $6 million of higher maintenance costs, $1 million in higher insurance costs, and $5 million of higher operating supply costs. The increase in wages is largely due to increased seasonal labor hours as a result of expanded operating hours at several parks, additional attractions and guest services, and the overall effect of increased attendance. The increase in insurance costs was primarily the result of claim settlements and increases in our reserves based on future estimated claim liabilities. As discussed in the nine- and three-month sections, maintenance costs increased primarily due to the earlier timing of planned off-season projects, as well as an increase in the number of projects designed to add to the guest experience. The increase in operating supply costs relates primarily to an increase in attendance over the past year, as well as incremental costs associated with the new e-commerce platform. The increase in SG&A costs includes $5 million in costs largely related to the launching of several new revenue initiatives for the 2012 season, as well as a $3 million increase in advertising expense as we transitioned to a new advertising agency for 2012. Employment related expenses increased $5 million primarily due to the receipt of a non-recurring payroll tax credit of $2.5 million recorded in the fourth quarter of 2010, as well as an increase in retirement expenses and non-recurring severance payments in the current twelve-month period. The overall increase in costs and expenses also reflects the positive impact of exchange rates on our Canadian operations (approximately $1.6 million) during the twelve-month period ended September 30, 2012.

Depreciation and amortization expense for the trailing-twelve-month periods increased $1.8 million between years due to the increase in capital spending during the current-year period compared with the prior year. During the twelve months ended September 30, 2012, we recognized $0.7 million in non-cash charges for the retirement of assets in the normal course of business. Additionally, we recorded a non-cash charge of $25.0 million for the partial impairment of operating and non-operating fixed

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assets at Wildwater Kingdom during the third quarter in 2012. This compares to a non-cash charges recognized during the twelve-month period ended September 25, 2011 of $62.0 million at California's Great America for the partial impairment of its fixed assets and $1.5 million for asset retirements across all properties. Additionally, a non-cash charge of $0.9 million was recorded during the fourth quarter of 2010 for the partial impairment of trade-names originally recorded at the time of the PPI acquisition. It is important to note that each of our parks produces positive cash flow, and that trade-name write-downs and fixed asset impairment losses do not affect cash, Adjusted EBITDA or liquidity.

After depreciation, amortization, loss on impairment of the trade-names, loss on impairment / retirement of fixed assets, and all other non-cash costs, operating income for the twelve months ended September 30, 2012 increased $56.7 million to $228.3 million compared with $171.6 million for the same period a year ago.

Interest expense for the twelve month period ended September 30, 2012 decreased $54.6 million to $116.4 million from $171.0 million for the prior twelve month period ended September 25, 2011. As mentioned in the nine-month discussion above, interest expense decreased primarily due to an approximate 300 bps decline in our effective interest rate. The decline in the effective interest rate is primarily due to lower fixed rates of LIBOR in debt associated derivative contracts, which declined from 5.62% in 2011 to 2.48% in 2012.

The net effect of our swaps during the period was a non-cash benefit to earnings of $10.9 million, representing an increase of $12.7 million from the same period ended September 25, 2011. This non-cash benefit reflects gains from marking the ineffective and de-designated swaps to market, offset somewhat by the regularly scheduled amortization of amounts in AOCI related to the swaps and foreign currency losses related to the U.S.-dollar denominated Canadian term loan in the current twelve month period. During the current twelve-month period, we also recognized a $18.7 million net benefit to earnings for unrealized/realized foreign currency gains and losses, $17.5 million of which represents an unrealized foreign currency gain on the U.S.-dollar denominated debt held at our Canadian property.

A provision for taxes of $30.8 million was recorded to account for PTP taxes and the tax attributes of our corporate subsidiaries during the twelve-month period ended September 30, 2012, compared with a net benefit for taxes of $12.4 million during the same twelve-month period a year ago. The variation in the recorded tax provision between periods is due to the higher income subject to tax for the twelve-month period ending September 30, 2012 and the tax benefit of the impairment charge recorded in the previous twelve-month period.

After interest expense and the provision for taxes, net income for the twelve months ended September 30, 2012 was $110.8 million, or $1.98 per diluted limited partner unit, compared with net income of $8.1 million, or $0.15 per diluted limited partner unit, for the twelve months ended September 25, 2011.

It is important to note that due to the timing of the third quarter fiscal close results for the twelve-month period ended September 30, 2012 benefited from an additional week (53 weeks) compared to the twelve-month period ended September 25, 2011 (52 weeks). Comparing the twelve-month periods for both 2012 and 2011 on a 53-week basis, net revenues would have been up $56.2 million, or 5%, on increases in attendance, in-park guest per capita spending and out-of-park revenues. On a comparable 53-week basis, attendance would have increased 479,000 visits, due to an increase in season pass attendance, and in-park per capita spending would have increased $1.56, or 4%, primarily due to new premium benefit offerings and the positive impact of new customer messaging and dynamic pricing. Over that same comparable basis, out-of-park revenues would have increased by approximately $3.5 million, or 3%.

On a comparable 53-week basis, operating costs and expenses would have increased approximately $40.3 million, or 6%, on a $4.2 million increase in cost of goods sold, an $25.8 million increase in operating expenses, and $10.4 million increase in SG&A costs. The overall increase in costs and expenses also reflects the favorable impact of exchange rates on our Canadian operations (approximately $1.6 million) during the period. The increase in cost of goods sold is consistent with anticipated cost increases associated with our efforts to improve the quality of food and other product offerings at the parks in 2012. Consistent with our nine- and three-month discussions above, operating expenses for the twelve-month period increased as a result of higher employment-related costs, higher maintenance and operating supply costs, and higher self-insurance expenses. The higher employment-related costs reflect normal merit increases, increases in health-related benefit costs, an overall increase in seasonal labor hours as a result of expanded operating hours at several parks, additional attractions and guest services, the overall effect of increased attendance, and non-recurring severance payments. Employment related costs also increased as result of the non-recurring payroll tax credit of $2.5 million recorded in the fourth quarter of 2010. The higher maintenance costs in the current-year twelve-month period relate primarily to the earlier timing of planned off-season projects, which was possible as a result of the mild early-season weather in 2012. The increase in operating supplies was driven by higher attendance and new initiatives to expand or enhance live entertainment at the parks, as well as incremental costs associated with our new e-commerce platform. The increase in public liability and workers compensation expense was the result of a claim settlement in the first quarter of 2012

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and increases in our reserves based on management's estimates of future claims. The higher SG&A costs reflect incremental costs associated with the launching of several new revenue initiatives for the 2012 season, including the new e-commerce platform, general park infrastructure improvements, and an increase in advertising expenses as we transitioned to a new advertising agency for 2012. These increases in SG&A costs were somewhat offset by a reduction in litigation expenses and costs for SEC compliance matters related to Special Meeting requests in 2011.

For the twelve-month period ended September 30, 2012, Adjusted EBITDA increased to $393.6 million compared with $366.4 million for the twelve months ended September 25, 2011, while our Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) increased slightly to 36.3% from 36.2% a year ago. A portion of this increase in Adjusted EBITDA was due to the extra week in the current fiscal twelve-month period. On a same-week basis, Adjusted EBITDA would have been up $23.4 million, or 6%, year over year, due to revenue growth driven by increased attendance and the strong 2011 fourth quarter operating performance. These gains were offset somewhat by incremental operating costs associated with the higher attendance and new operating initiatives for 2012. For the comparable twelve-month periods, our Adjusted EBITDA margin (Adjusted EBITDA divided by net revenues) would have increased 30 bps to 36.3% from 36.0% last year. For additional information regarding Adjusted EBITDA, including how we define Adjusted EBITDA, why we believe it provides useful information, and for a reconciliation to net income, see pages 33-34.
October 2012 -

Based on preliminary results through the end of October, revenues for the first ten months of the year increased approximately $37 million to $1,036 million from $999 million for the same period a year ago. The revenue increase is the result of a 4% increase in average in-park guest per capita spending to $42.00 and attendance levels that were comparable with last year's record results (22.7 million visits). Out-of-park revenues of approximately $108 million through October were also comparable with this time last year.

Liquidity and Capital Resources:
With respect to both liquidity and cash flow, we ended the thirdfirst quarter of 20122013 in sound condition. The negative working capital ratio (current assetsliabilities divided by current liabilities)assets) of 1.01.4 at September 30, 2012March 31, 2013 reflects the impact of our seasonal business. Cash, receivables and inventories are at normal seasonal levels and credit facilities are in place to fund current liabilities.

In July 2010, we issued $405 million of 9.125% senior unsecured notes, maturing in 2018, in a private placement, including $5.6 million of Original Issue Discount (OID) to yield 9.375%. Concurrently with this offering, we entered into a new $1,435 million credit agreement (the "2010 Credit Agreement"), which included a $1,175 million senior secured term loan facility and a $260 million senior secured revolving credit facility. The net proceeds from the offering of the notes, along with borrowings under the 2010 Credit Agreement, were used to repay in full all amounts outstanding under our previous credit facilities.

In February 2011, we amended the 2010 Credit Agreement (as so amended, the "Amended 2010 Credit Agreement") and extended the maturity date of the U.S. term loan portion of the credit facilities by one year. Under the Amended 2010 Credit Agreement, the extended U.S. term loan iswas scheduled to mature in December of 2017 and bearsbore interest at a rate of LIBOR plus 300 bps, with a LIBOR floor of 100 bps.
The Amended 2010 Credit Agreement also includesincluded a $260 million revolving credit facility. Under the agreement, the Canadian portion of the revolving credit facility has a limit of $15 million. U.S. denominated loans made under the revolving credit facility bear interest at a rate of LIBOR plus 400 bps (with no LIBOR floor). Canadian denominated loans made under the Canadian portion of the facility also bear interest at a rate of LIBOR plus 400 bps (with no LIBOR floor). The revolving credit facility, which matureswas scheduled to mature in July of 2015, also providesprovided for the issuance of documentary and standby letters of credit.

In May 2012, the Partnership prepaidMarch 2013,we issued $16500 million of long-term debt to meet its obligation5.25% senior unsecured notes, maturing in 2021, in a private placement, with no OID. Concurrently with this offering, we entered into a new $885 million credit agreement (the "2013 Credit Agreement"), which included a $630 million senior secured term loan facility and a $255 million senior secured revolving credit facility. The terms of the senior secured term loan facility include a maturity date of March 15, 2020 and an interest rate of LIBOR plus 250 bps with a LIBOR floor of 75 bps. The term loan amortizes at $6.3 million annually. The net proceeds from the notes and borrowings under the Excess Cash Flow ("ECF") provision2013 Credit Agreement were used to repay in full all amounts outstanding under the previous credit facilities. The facilities provided under the 2013 Credit Agreement are collateralized by substantially all of the assets of the Partnership.

Terms of the 2013 Credit Agreement. AsAgreement include a resultrevolving credit facility of this prepayment, as well as additional optional long-term debt prepayments made in August 2011 and September 2012a combined $255 million. Under the 2013 Credit Agreement, the Canadian portion of the revolving credit facility has a limit of $1815 million. U.S. denominated and Canadian denominated loans made under the revolving credit facility bear interest at a rate of LIBOR plus 225 bps (with no LIBOR floor). The revolving credit facility is scheduled to mature in March 2018 and also provides for the issuance of documentary and standby letters of credit. The 2013 Credit Agreement requires the Partnership to pay a commitment fee of $9 million50, respectively, bps per annum on the Company has no scheduled term-debt principal payments untilunused portion of the first quarter of 2015.credit facilities.
At the end of the quarter, we had a total of $1,131.1$630.0 million of variable-rate term debt (before giving consideration to fixed-rate interest rate swaps), $400.7$901.3 million of fixed-rate debt (including OID), no$96.0 million outstanding borrowings under our revolving

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credit facility, and cash on hand of $96.1$10.0 million. After letters of credit, which totaled $16.5$16.4 million at September 30, 2012March 31, 2013, we had $243.5$142.6 million of available borrowings under the revolving credit facility under the Amended 20102013 Credit Agreement.

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Our $405 million of senior unsecured notes require semi-annual interest payments in February and August, with the principal due in full on August 1, 2018. The notes may be redeemed, in whole or in part, at any time prior to August 1, 2014 at a price equal to 100% of the principal amount of the notes redeemed plus a “make-whole” premium together with accrued and unpaid interest, if any, to the redemption date. Thereafter, the notes may be redeemed, in whole or in part, at various prices depending on the date redeemed. Prior to August 1, 2013, up to 35% of the notes may be redeemed with the net cash proceeds of certain equity offerings at 109.125%. Our $500 million of senior unsecured notes pay interest semi-annually in March and September, with the principal due in full on March 15, 2021. The notes may be redeemed, in whole or in part, at any time prior to March 15, 2016 at a price equal to 100% of the principal amount of the notes redeemed plus a “make-whole” premium together with accrued and unpaid interest, if any, to the redemption date. Thereafter, the notes may be redeemed, in whole or in part, at various prices depending on the date redeemed. Prior to March 15, 2016, up to 35% of the notes may be redeemed with the net cash proceeds of certain equity offerings at 105.25%.
In order to maintain fixed interest costs on a portion of our domestic term debt, in September 2010 we entered into several interest rateforward-starting swap agreements ("September 2010 swaps") to effectively convert a total of $600$600 million of variable-rate debt to fixed rates beginning in October 2011. As a result of the February 2011 amendment to our credit agreement,the 2010 Credit Agreement, the LIBOR floor on the term loan portion of ourits credit facilities decreased to 100 bps from 150 bps, causing a mismatch in critical terms of the September 2010 swaps and the underlying debt. Because of the mismatch of critical terms, we determined the September 2010 swaps, which were originally designated as cash flow hedges, were no longer highly effective, resulting in the de-designation of the September 2010 swaps as of the end of February 2011. As a result of this ineffectiveness, gains of $7.2 million recorded in AOCI through the date of de-designation are being amortized through December 2015.
In order to monetize the difference in the LIBOR floors, in March 2011, we entered into several additional forward-starting basis-rate swap agreements ("March 2011 swaps") that, when combined with the September 2010 swaps, effectively converted $600$600 million of variable-rate debt to fixed rates beginning in October 2011. The September 2010 swaps and the March 2011 swaps, were jointly designated as cash flow hedges, maturing in December 2015 and had fixed LIBOR at a weighted average rate of 2.46%. For the period that the September 2010 swaps were de-designated, their fair value decreased by $3.3 million, the offset of which have beenwas recognized as a direct charge to earnings and recorded to “Net effect of swaps” on the consolidated statement of operations along with the regular amortization of “Other comprehensive income (loss)” balances related to these swaps. No other ineffectiveness related to these swaps was recorded in any period presented.
In May 2011, we entered into four additional forward-starting basis-rate swap agreements ("May 2011 swaps") that effectively converted another $200 million of variable-rate debt to fixed rates beginning in October 2011. These swaps, which were designated as cash flow hedges, mature in December 2015 and fixed LIBOR at a weighted average rate of 2.54%.
As a result of the 2013 Credit Agreement, the previously described swaps were de-designated as the spreads of the 2013 Credit Agreement decreased to 75 bps from 100 bps in the Amended 2010 Credit Agreement. The May 2011 swaps remain de-designated as the amount of variable rate debt decreased to $630 million, and accordingly, the May 2011 swaps are now over hedged. On March 4, 2013, we entered into several forward-starting swap agreements ("March 2013 swaps") that were not designated as a cash flow hedge on that date. On March 6, 2013, the March 2013 swaps were combined with the September 2010 swaps and the March 2011 swaps, and designated as cash flow hedges, effectively converting $600 million of variable-rate debt to fixed rates. The September 2010 swaps, the March 2011 swaps, and the March 2013 swaps were jointly designated as cash flow hedges, mature in December 2015 and fix LIBOR at a weighted average rate of 2.46%.
In May 2011, we entered into four additional forward-starting basis-rate swap agreements ("May 2011 swaps") that effectively convert another $200 million of variable-rate debt to fixed rates beginning in October 2011. These swaps, which have been designated as cash flow hedges, mature in December 2015 and fix LIBOR at a weighted average rate of 2.54%2.331%. TheAt the time of the de-designation, the fair market value of all $800the September 2010 swaps, March 2011 swaps, and March 2013 swaps was $23.8 million, which will be amortized out of forward-starting swap agreements atAOCI into expense in "Net effect of swaps" in the unaudited condensed consolidated statements of operations and comprehensive incomethrough December 2015. At the time of the de-designation, the fair market value of the May 2011 swaps was $7.8 million and was immediately recognized into expense in "Net effect of swaps" in the unaudited condensed consolidated statements of operations.
At March 31, 2013, the fair market value of the September 30, 20122010 swaps, the March 2011 swaps and the March 2013 swaps was a liability of $34.723.4 million, which was recorded in "Derivative Liability"“Derivative Liability” on the condensed consolidated balance sheet. The May 2011 swaps had a fair market value of $7.6 million as of March 31, 2013 and was recorded in “Derivative Liability” on the condensed consolidated balance sheet.


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The following table presents our September 2010 swaps, March 2011 swaps, and May 2011 swaps, and March 2013 swaps which became effective on October 1, 2011 and mature December 15, 2015, along with their notional amounts and their effective fixed interest rates.
($'s in thousands)Forward-Starting Interest Rate Swaps
 Notional Amounts LIBOR Rate
 $200,000
 2.40%
 75,000
 2.43%
 50,000
 2.42%
 150,000
 2.55%
 50,000
 2.42%
 50,000
 2.55%
 25,000
 2.43%
 50,000
 2.54%
 30,000
 2.54%
 70,000
 2.54%
 50,000
 2.54%
Total $'s / Average Rate$800,000
 2.48%
In 2006, we entered into several fixed-rate interest rate swap agreements totaling $1.0 billion. The weighted average fixed-LIBOR rate on these interest rate swaps, which matured on October 1, 2011, was 5.6%. Based upon our scheduled quarterly regression analysis testing of the effectiveness for the accounting treatment of these swaps, as well as changes in the forward interest rate yield curves used in that testing, the swaps were deemed to be ineffective beginning in October 2009 and continued to be deemed ineffective through their maturity. This resulted in the swaps not qualifying for hedge accounting during the fourth quarter of 2009 and through 2010 and the first three quarters of 2011.
In 2007, we entered into two cross-currency swap agreements, which matured in February 2012 and effectively converted $268.7 million of term debt at the time, and the associated interest payments, from U.S. dollar denominated debt at a rate of LIBOR plus

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200 bps to 6.3% fixed-rate Canadian dollar denominated debt. As a result of paying down the underlying Canadian term debt with net proceeds from the sale of surplus land near Canada’s Wonderland in August 2009, the notional amounts of the underlying debt and the cross-currency swaps no longer matched. Because of the mismatch of the notional amounts, we determined the swaps were no longer highly effective going forward, resulting in the de-designation of the swaps as of the end of August 2009.
Based on the change in currency exchange rates from the time we originally entered into the cross-currency swap agreements in 2007, the termination liability of the swaps had increased steadily over time. In order to protect ourselves from further downside risk to the swaps' termination value, in May 2011 we entered into several foreign currency swap agreements to fix the exchange rate on 50% of the liability. In July 2011, we fixed the exchange rate on another 25% of the swap liability, leaving only 25% exposed to further fluctuations in currency exchange rates. In February 2012, these swap agreements were settled for $50.5 million.
In addition to other covenants and provisions, including those discussed below, the Amended 2010 Credit Agreement contains an initial three-year requirement (from July 2010) that at least 50% of our aggregate term debt and senior notes be subject to either a fixed interest rate or interest rate protection. As of September 30, 2012, we were in compliance with this requirement.
The following table presents fixed-rate swaps that matured on October 1, 2011. The table also presents our cross-currency swaps that matured on February 15, 2012 and their notional amounts and interest rates as of their maturity date.
($'s in thousands)Interest Rate Swaps Cross-currency Swaps
 Notional Amounts LIBOR Rate Notional Amounts Interest Rate
 $200,000
 5.64% $255,000
 7.31%
 200,000
 5.64% 150
 9.50%
 200,000
 5.64%    
 200,000
 5.57%    
 100,000
 5.60%    
 100,000
 5.60%    
Total $'s / Average Rate$1,000,000
 5.62% $255,150
 7.31%
        
 Interest Rate Swaps
($'s in thousands)Derivatives designated as hedging instruments Derivatives not designated as hedging instruments
 Notional Amounts LIBOR Rate Notional Amounts LIBOR Rate
 $200,000
 2.27% 50,000
 2.54%
 75,000
 2.30% 30,000
 2.54%
 50,000
 2.29% 70,000
 2.54%
 150,000
 2.43% 50,000
 2.54%
 50,000
 2.29%    
 50,000
 2.47%    
 25,000
 2.30%    
Total $'s / Average Rate$600,000
 2.33% $200,000
 2.54%

The Amended 20102013 Credit Agreement requires us to maintain specified financial ratios, which if breached for any reason, including a decline in operating results due to economic or weather conditions, could result in an event of default under the agreement. The most critical of these ratios is the Consolidated Leverage Ratio, which is measured on a trailing-twelve-month quarterly basis. At the end of the thirdfirst quarter of 2012,2013, this ratio was set at 6.00x6.25x consolidated total debt (excluding the revolving debt)-to-consolidated EBITDA. The ratio will remain at that level through the end of the first quarter in 2014 and will decrease each second quarter beginning in the second quarter of 2014. Based on our trailing-twelve-month results ending September 30, 2012March 31, 2013, our Consolidated Leverage Ratio was 3.89x, providing $138.3148.2 million of EBITDA cushion on the ratio at the end of the thirdfirst quarter. We were in compliance with all other covenants under the Amended 20102013 Credit Agreement as of September 30, 2012March 31, 2013.
The Amended 20102013 Credit Agreement allows restricted payments of up to $20$60 million annually so long as no default or event of default has occurred and is continuing. These restricted payments are not subject to any specific covenants. In 2012, additionalAdditional restricted payments are allowed to be made based on an excess-cash-flow formula, should our pro-forma Consolidated Leverage Ratio be less than or equal to 4.50x,5.0x, measured on a trailing-twelve-month quarterly basis.
At March 31, 2013, the notes maturing in 2018 have more restrictive covenants than the 2021 notes. The terms of the indenture governing our 2018 notes permit us to make restricted payments of $20 million annually. Our ability to make additional restricted payments in 20122013 and beyond is permitted should our trailing-twelve-month Total-Indebtedness-to-Consolidated-Cash-Flow Ratio be less than or equal to 4.75x, measured on a quarterly basis.
In accordance with these debt provisions, on August 9, 2012,February 27, 2013, we announced the declaration of a distribution of $0.40$0.625 per limited partner unit, which was paid on September 15, 2012,March 25, 2013, and on November 6, 2012,May 8, 2013 we announced the declaration of a distribution of $0.40$0.625 per limited partner unit, payable DecemberJune 17, 2012, which will bring our total distributions paid in 2012 to $1.60 per limited partner unit.2013.
Existing credit facilities and cash flows from operations are expected to be sufficient to meet working capital needs, debt service, partnership distributions and planned capital expenditures for the foreseeable future.




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Off Balance Sheet Arrangements:
We had $16.5$16.4 million in letters of credit, which are primarily in place to backstop insurance arrangements, outstanding on our revolving credit facility as of September 30, 2012March 31, 2013. We have no other significant off-balance sheet financing arrangements.


Forward Looking Statements
Some of the statements contained in this report (including the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section) that are not historical in nature are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements as to our expectations, beliefs and strategies regarding the future. These forward-looking statements may involve risks and uncertainties that are difficult to predict, may be beyond our control and could cause actual results to differ materially from those described in such statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can

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give no assurance that such expectations will prove to be correct. Important factors, including those listed under Item 1A in the Company’s Annual Report on Form 10-K, could adversely affect our future financial performance and cause actual results to differ materially from our expectations.


ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to market risks from fluctuations in interest rates, and to a lesser extent on currency exchange rates on our operations in Canada and, from time to time, on imported rides and equipment. The objective of our financial risk management is to reduce the potential negative impact of interest rate and foreign currency exchange rate fluctuations to acceptable levels. We do not acquire market risk sensitive instruments for trading purposes.
We manage interest rate risk through the use of a combination of fixed-rate long-term debt, interest rate swaps that fix a portion of our variable-rate long-term debt, and variable-rate borrowings under our revolving credit facility. Translation exposures with regard to our Canadian operations are not hedged.
For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the change in fair value of the derivative instrument is reported as a component of “Other comprehensive income (loss)” and reclassified into earnings in the period during which the hedged transaction affects earnings. Changes in fair value of derivative instruments that do not qualify as effective hedging activities are reported as “Net effect of swaps” in the consolidated statement of operations. Additionally, the “Other comprehensive income (loss)” related to interest rate swaps that become ineffective is amortized over the remaining life of the interest rate swap, and reported as a component of “Net effect of swaps” in the consolidated statement of operations.
As of March 31, 2013, we had $901.3 million of fixed-rate senior unsecured notes and $630 million of variable-rate term debt. After considering the impact of interest rate swap agreements, approximately $1.2 billionvirtually all of our outstanding long-term debt represents fixed-rate debt and approximately $331.1 million represents variable-rate debt. Assuming an average balance on our revolving credit borrowings of approximately $61$50 million, a hypothetical 100 bps increase in 30-day LIBOR on our variable-rate debt, after the fixed-rate swap agreements, would lead to an increasea decrease of approximately $2.5$0.5 million in annual cash interest costs.
A uniform 10% strengthening of the U.S. dollar relative to the Canadian dollar would result in a $5.4$4.4 million decrease in annual operating income.

ITEM 4. CONTROLS AND PROCEDURES

(a)Evaluation of Disclosure Controls and Procedures - 
The Partnership maintains a system of controls and procedures designed to ensure that information required to be disclosed by the Partnership in its reports under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified by the Commission and that such information is accumulated and communicated to the Partnership’s management, including the Chief Executive Officer and the Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. As of September 30, 2012March 31, 2013, the PartnershipPartnership's management has evaluated the effectiveness of the design and operation of itsthe Partnership's disclosure controls and procedures under supervision of management, includingand with the participation of the Partnership's Chief Executive Officer and Chief Financial Officer. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Partnership's disclosure controls and procedures are effective.were effective as of March 31, 2013.
 






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(b)Changes in Internal Control Over Financial Reporting -
As disclosed in Amendment No. 2 to the Partnership's Form 10-K/A for the fiscal year ended December 31, 2012, in connection with restating the Partnership's consolidated financial statements therein, management identified a material weakness in internal control over financial reporting related to the Partnership's fixed assets, resulting in a conclusion that the Partnership's internal control over financial reporting was not effective as of December 31, 2012. Remediation of this material weakness in internal control over financial reporting was accomplished through the conversion of all composite assets to the unit method of depreciation as of January 1, 2013. The conversion to the unit method eliminates the concept of normal vs. unusual as any and all asset retirements with a remaining net book value will be reflected in the Consolidated Statements of Operations and Comprehensive Income.
There were no other changes in the Partnership’s internal controlscontrol over financial reporting in connection with its 2012that occurred during the fiscal quarter ended thirdMarch 31, 2013-quarter evaluation, or subsequent to such evaluation, that have materially affected, or are reasonably likely to materially affect, the Partnership’s internal control over financial reporting.


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PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Jacob T. Falfas vs. Cedar Fair, L.P.

On July 23, 2010, Jacob T. (Jack) Falfas, the former Chief Operating Officer, filed a demand for private arbitration as provided by his employment agreement. In that demand, Mr. Falfas disputed the Partnership's position that he had resigned in June 2010, alleging instead that his employment with the Partnership was terminated without cause. That dispute went to private arbitration, and on February 28, 2011, an arbitration panel ruled 2-to-1 in favor of Mr. Falfas finding that he did not resign but was terminated without cause. Rather than fashioning a remedy consistent with the employment agreement, the panel ruled that Mr. Falfas should be reinstated. The Partnership believed that the arbitrators exceeded their authority by creating a remedy not legally available to Mr. Falfas under his contract with Cedar Fair. On March 21, 2011, the Partnership filed an action  in Erie County Court of Common Pleas (Case No. 2011 CV 0217) seeking  to have the award modified or vacated. On March 22, 2011, Mr. Falfas commenced a related action in the Erie County Court of Common Pleas  (Case No. 2011 CV 0218) demanding enforcement of the arbitration ruling.  The two actions were combined into Case No. 2011 CV 0217, before Judge Roger E. Binette. On February 22, 2012 the Erie County Common Pleas Court issued a ruling partially vacating the arbitration award and declaring that Mr. Falfas was not entitled to reinstatement of his employment.  The ruling also provided that in accord with paragraph 2 of the arbitration award Mr. Falfas was entitled to certain back pay and other benefits under his 2007 Amended and Restated Employment Agreement as if the employment relationship had not been severed. In March of 2012 Mr. Falfas and the Company both filed appeals of the Court's ruling with the Ohio Sixth District Court of Appeals in Toledo, Ohio. The parties participated in mediation on May 7, 2012 at the direction ofOn April 19, 2013 the Court of Appeals.Appeals issued a ruling reversing the Erie County Common Pleas Court's  order regarding the reinstatement of Mr. Falfas' employment and  affirming the order regarding back pay and other benefits and remanding the case back to the Erie County Common Pleas Court for further proceedings.  The mediation did not result inCompany has until June 3, 2013 to file a settlement. As a resultnotice of appeal with the matter will now proceed through the normal appeal process which typically takes six to nine months to complete. Briefs have been filed and the parties are awaiting scheduling of oral argument.Ohio Supreme Court.  The Partnership believes the liability recorded as of September 30, 2012March 31, 2013 to be adequate and does not expect the arbitration ruling or the court order to materially affect its financial results in future periods.


ITEM 1A. RISK FACTORS
There have been no material changes to the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2011.2012.

ITEM 5. OTHER INFORMATION

TheOn May 8, 2013, the Partnership usesannounced that it had identified a historical classification error in the Partnership's initial determination of whether a specific asset retired under the composite method of depreciation methodwas normal or unusual. The error resulted in the overstatement of Income before taxes of $8.8 million for the groupperiod ended December 31, 2011.

Under the composite method of depreciation, no gain or loss is recognized on normal retirements of composite assets. Instead the net book value after salvage of a retired asset reduces accumulated depreciation for the composite group. Abnormal or unusual retirements of composite assets acquiredwould result in the recognition of a gain or loss. The error resulted in the Partnership's application of its qualitative policy used to determine whether an asset retirement is normal or unusual. The asset retirement being restated was originally classified as normal, thus reducing accumulated depreciation. Management identified that the Partnership had failed to consider whether the specific asset had a whole in 1983,substantial net book value and/or if the retirement caused a deviation from the estimated composite depreciation survivor curve as well as for groupsother minor qualitative issues.

The restatement amount of assets$8.8 million is recorded in each subsequent business acquisition. Upon the normalLoss on impairment / retirement of an asset within a composite group, the Partnership's practice generally has been to extend the depreciable life of that composite group beyond its original estimated useful life. In conjunction with the preparation of the Partnership's financial statements for the interim period ended July 1, 2012, management determined that this methodology was not appropriate. As a result, the Partnership revised the useful lives of its composite groups to their original estimated useful life (ascribed upon acquisition) and corrected previously computed depreciation expense (and accumulated depreciation). Management evaluated the amount and nature of these adjustments and concluded that they were not material to either the Partnership's prior annual or quarterly financial statements. Nonetheless, the historical financial statement amounts included in this filing have been corrected for this error. The Partnership expects to likewise correct previously presented historical financial statements to be included in future filings, including the annual financial statements to be includedfixed assets, net in the Partnership's Annual Report on Form 10-K for10-K/A filing to correct the year ending December 31, 2012.previous error.

ForAs disclosed in the year ended December 31, 2011Partnership's prior filings, the correctionPartnership had determined that it was preferable to change from the composite method of depreciation to the unit method of depreciation with the change effective January 1, 2013. The Partnership believes that pursuant to generally accepted accounting principles, changing from the composite method of depreciation to the unit method of depreciation is a change in accounting estimate that is effected by a change in accounting principle, which should be accounted for prospectively. The change to the unit method of depreciation eliminates the qualitative judgment needed to determine whether an asset retirement is normal or unusual, as the net book value of all retirements will decrease net income (loss) by $1.4 millionbe recorded in the Consolidated Statements of Operations and the provision (benefit) for taxes will decrease by $0.6 million.  For the 2010 annual financial statements, the correction will decrease net income (loss) by $1.5 million and the provision (benefit) for taxes will decrease by $0.6 million.  For the 2009 annual financial statements, the correction will decrease net income (loss) by $1.2 million and the provision (benefit) for taxes will decrease $0.4 million.  The balance sheet as of December 31, 2011 has already been corrected in this Form 10-Q.Comprehensive Income.



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ITEM 6. EXHIBITS
 
Exhibit (4.1)
Rights Agreement between Cedar Fair, L.P. and American Stock Transfer and Trust Co., LLC, dated April 5, 2010. Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on April 6, 2010.

Exhibit (4.2)
Indenture, by and among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and The Bank of New York Mellon, as trustee, dated as of July 29, 2010 (including form of 9.125% Senior Notes due 2018). Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (4.3)
Registration Rights Agreement, among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and J.P. Morgan Securities Inc., as representative of the initial purchasers named therein, dated July 29, 2010. Incorporated herein by reference to Exhibit 4.2 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (10.1)Cedar Fair, L.P. Amended and Restated Executive Severance Plan dated July 18, 2007. Incorporated herein by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q (File No. 001-09444) filed on August 3, 2007.
Exhibit (31.1)  Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (31.2)  Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (32)  Certifications Pursuant to 18 U.S.C. 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
  
Exhibit (101)  The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012March 31, 2013 formatted in Extensible Business Reporting Language (XBRL): (i) The Condensed Consolidated Statements of Income, (ii) the Condensed Consolidated Balance Sheets, (iii) The Condensed Consolidated Statements of Cash Flow, (iv) the Condensed Consolidated Statement of Equity and, (v) related notes
 

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
  CEDAR FAIR, L.P. 
  (Registrant) 
    
  By Cedar Fair Management, Inc. 
  General Partner 
   
Date:November 7, 2012May 10, 2013/s/ Matthew A. Ouimet
  Matthew A. Ouimet
  President and Chief Executive Officer
    
Date:November 7, 2012May 10, 2013/s/ Brian C. Witherow
  Brian C. Witherow
  Executive Vice President and
  Chief Financial Officer

 

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Table of Contents

INDEX TO EXHIBITS
 
Exhibit (4.1)
Rights Agreement between Cedar Fair, L.P. and American Stock Transfer and Trust Co., LLC, dated April 5, 2010. Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on April 6, 2010.

Exhibit (4.2)
Indenture, by and among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and The Bank of New York Mellon, as trustee, dated as of July 29, 2010 (including form of 9.125% Senior Notes due 2018). Incorporated herein by reference to Exhibit 4.1 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (4.3)
Registration Rights Agreement, among Cedar Fair, L.P., Canada's Wonderland Company, and Magnum Management Corporation, as issuers, the guarantors named therein, and J.P. Morgan Securities Inc., as representative of the initial purchasers named therein, dated July 29, 2010. Incorporated herein by reference to Exhibit 4.2 to the Registrant's Form 8-K filed on July 29, 2010.

Exhibit (10.1)Cedar Fair, L.P. Amended and Restated Executive Severance Plan dated July 18, 2007. Incorporated herein by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q (File No. 001-09444) filed on August 3, 2007.
Exhibit (31.1)  Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (31.2)  Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
  
Exhibit (32)  Certifications Pursuant to 18 U.S.C. 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
  
Exhibit (101)  The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012March 31, 2013 formatted in Extensible Business Reporting Language (XBRL): (i) The Condensed Consolidated Statements of Income, (ii) the Condensed Consolidated Balance Sheets, (iii) The Condensed Consolidated Statements of Cash Flow, (iv) the Condensed Consolidated Statement of Equity and, (v) related notes
 

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