Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 05, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'GLOBAL PARTNERS LP | ' |
Entity Central Index Key | '0001323468 | ' |
Document Type | '10-Q/A | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'true | ' |
Amendment Description | 'To reflect the corrections described below, Global Partners LP (the "Partnership") is amending its Quarterly Report on Form 10-Q and restating its unaudited consolidated financial statements for each of the quarters ended March 31, 2013, June 30, 2013 and September 30, 2013 (the "Restated 2013 Quarters) and related disclosures. This Amendment No. 1 on Form 10-Q/A amends the Quarterly Report on Form 10-Q of the Partnership for the fiscal quarter ended September 30, 2013, as filed with the Securities and Exchange Commission on November 7, 2013, and restates its unaudited consolidated financial statements as of and for the three and nine months ended September 30, 2013 and the notes thereto and related disclosure. As a result, the unaudited consolidated financial statements included in the originally filed Form 10-Q for the quarter ended September 30, 2013 should not be relied upon. The Partnership is restating its unaudited consolidated financial statements primarily to reflect a correction in its accounting for Renewable Identification Numbers ("RINs"). A RIN is a serial number assigned to a batch of biofuel for the purpose of tracking its production, use, and trading as required by the Environmental Protection Agency's ("EPA") Renewable Fuel Standard that originated with the Energy Policy Act of 2005. To evidence that the required volume of renewable fuel is blended with gasoline, obligated parties must retire sufficient RINs to cover their Renewable Volume Obligation ("RVO"). The Partnership's EPA obligations relative to renewable fuel reporting are largely limited to the foreign gasoline that the Partnership may choose to import. As a wholesaler of transportation fuels through its terminals, the Partnership separates RINs from renewable fuel through blending with gasoline and can use those separated RINs to settle its RVO. While the annual compliance period for a RVO is a calendar year, the settlement of the RVO can occur, upon certain deferral elections, more than one year after the close of the compliance period. In connection with the year ended December 31, 2013 financial statement close process, certain misstatements were identified related to the Partnership's accounting for the RVO, RIN inventory and the mark to market loss related to RIN forward commitments. The Partnership has corrected its accounting for RINs, which included the recognition of a mark-to-market liability associated with the RVO deficiency at period end. The Partnership is restating its consolidated balance sheet at September 30, 2013 and the results of operations for the three and nine months ended September 30, 2013 to reflect in the proper period the impact of these accounting corrections. Additionally, the Partnership determined that at September 30, 2013, certain accrued liabilities related to the procurement of petroleum products were no longer warranted. The Partnership is restating its consolidated balance sheet at September 30, 2013 and results of operations for the three and nine months then ended to reflect the correction of the timing of the relief of these accrued liabilities at that date. The Partnership has also corrected other items that individually and in the aggregate are immaterial to the Partnership's operating results. The more significant of these items include a correction to the Partnership's business combination accounting related to a 2013 acquisition and an income statement classification error related to the Partnership's presentation of amortization of deferred financing fees. The unaudited consolidated financial statements and the notes thereto included herein have been restated to reflect these corrections, and disclosures of these corrections have been made to the discussion under Part I, Item 2., "Management's Discussion and Analysis of Financial Condition and Results of Operations." The Partnership is refiling the Form 10-Q in its entirety in this Amendment No. 1, except as stated above and for the disclosure included in Part I, Item 4., Controls and Procedures. The Partnership has included new certifications of its officers pursuant to Sections 302 and 906 of the Sarbanes Oxley Act with this Form 10-Q/A. | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 27,430,563 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $15,068 | $5,977 |
Accounts receivable, net | 625,829 | 696,762 |
Accounts receivable-affiliates | 1,496 | 1,307 |
Inventories | 397,412 | 634,667 |
Brokerage margin deposits | 40,694 | 54,726 |
Fair value of forward fixed price contracts | 37,001 | 48,062 |
Prepaid expenses and other current assets | 41,591 | 65,432 |
Total current assets | 1,159,091 | 1,506,933 |
Property and equipment, net | 838,424 | 712,322 |
Intangible assets, net | 73,663 | 60,822 |
Goodwill | 118,390 | 32,326 |
Other assets | 17,701 | 17,349 |
Total assets | 2,207,269 | 2,329,752 |
Current liabilities: | ' | ' |
Accounts payable | 615,093 | 759,698 |
Working capital revolving credit facility-current portion | ' | 83,746 |
Term loan | 115,000 | ' |
Environmental liabilities-current portion | 4,271 | 4,341 |
Trustee taxes payable | 75,891 | 91,494 |
Accrued expenses and other current liabilities | 60,621 | 71,442 |
Obligations on forward fixed price contracts | 38,885 | 34,474 |
Total current liabilities | 909,761 | 1,045,195 |
Working capital revolving credit facility-less current portion | 300,300 | 340,754 |
Revolving credit facility | 399,700 | 422,000 |
Senior notes | 68,163 | ' |
Environmental liabilities-less current portion | 37,651 | 39,831 |
Other long-term liabilities | 44,454 | 45,511 |
Total liabilities | 1,760,029 | 1,893,291 |
Global Partners LP equity: | ' | ' |
Common unitholders (27,430,563 units issued and 27,268,247 outstanding at September 30, 2013 and 27,430,563 units issued and 27,310,648 outstanding at December 31, 2012) | 409,728 | 456,538 |
General partner interest (0.83% interest with 230,303 equivalent units outstanding at September 30, 2013 and December 31, 2012) | -487 | -407 |
Accumulated other comprehensive loss | -13,877 | -19,670 |
Total Global Partners LP equity | 395,364 | 436,461 |
Noncontrolling interest | 51,876 | ' |
Total partners' equity | 447,240 | 436,461 |
Total liabilities and partners' equity | $2,207,269 | $2,329,752 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) | Sep. 30, 2013 | Dec. 31, 2012 |
CONSOLIDATED BALANCE SHEETS | ' | ' |
Common unitholders, units issued | 27,430,563 | 27,430,563 |
Common unitholders, units outstanding | 27,268,247 | 27,310,648 |
General partner interest (as a percent) | 0.83% | 0.83% |
General partner interest, equivalent units outstanding | 230,303 | 230,303 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
CONSOLIDATED STATEMENTS OF INCOME | ' | ' | ' | ' |
Sales | $4,433,426 | $4,617,194 | $14,794,372 | $12,508,738 |
Cost of sales | 4,315,333 | 4,534,574 | 14,523,410 | 12,280,124 |
Gross profit | 118,093 | 82,620 | 270,962 | 228,614 |
Costs and operating expenses: | ' | ' | ' | ' |
Selling, general and administrative expenses | 27,889 | 22,709 | 79,232 | 66,502 |
Operating expenses | 46,713 | 40,196 | 137,420 | 100,692 |
Amortization expense | 4,773 | 1,511 | 13,321 | 5,373 |
Total costs and operating expenses | 79,375 | 64,416 | 229,973 | 172,567 |
Operating income | 38,718 | 18,204 | 40,989 | 56,047 |
Interest expense | -10,855 | -10,633 | -32,113 | -31,811 |
Income before income tax expense | 27,863 | 7,571 | 8,876 | 24,236 |
Income tax expense | -2,727 | -678 | -852 | -228 |
Net income | 25,136 | 6,893 | 8,024 | 24,008 |
Net loss attributable to noncontrolling interest | 679 | ' | 549 | ' |
Net income attributable to Global Partners LP | 25,815 | 6,893 | 8,573 | 24,008 |
Less: General partner's interest in net income, including incentive distribution rights | -1,042 | -316 | -2,306 | -733 |
Limited partners' interest in net income | $24,773 | $6,577 | $6,267 | $23,275 |
Basic net income per limited partner unit (in dollars per unit) | $0.91 | $0.24 | $0.23 | $0.89 |
Diluted net income per limited partner unit (in dollars per unit) | $0.91 | $0.24 | $0.23 | $0.89 |
Basic weighted average limited partner units outstanding (in units) | 27,333 | 27,311 | 27,350 | 26,085 |
Diluted weighted average limited partner units outstanding (in units) | 27,333 | 27,485 | 27,593 | 26,258 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' | ' |
Net income | $25,136 | $6,893 | $8,024 | $24,008 |
Other comprehensive income: | ' | ' | ' | ' |
Change in fair value of cash flow hedges | -945 | 515 | 2,577 | 1,204 |
Change in pension liability | 1,191 | 373 | 3,216 | 581 |
Total other comprehensive income | 246 | 888 | 5,793 | 1,785 |
Comprehensive income | 25,382 | 7,781 | 13,817 | 25,793 |
Comprehensive loss attributable to noncontrolling interest | 679 | ' | 549 | ' |
Comprehensive income attributable to Global Partners LP | $26,061 | $7,781 | $14,366 | $25,793 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities | ' | ' |
Net income | $8,024 | $24,008 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 55,534 | 32,663 |
Amortization of deferred financing fees | 5,062 | 4,106 |
Amortization of senior notes discount | 263 | ' |
Bad debt expense | 3,030 | 270 |
Stock-based compensation expense | 955 | -20 |
Gain on disposition of property and equipment | -1,444 | -162 |
Curtailment gain | ' | -469 |
Changes in operating assets and liabilities, exclusive of business combinations: | ' | ' |
Accounts receivable | 70,202 | -40,237 |
Accounts receivable - affiliate | -189 | 499 |
Inventories | 237,386 | 81,839 |
Broker margin deposits | 14,032 | 13,663 |
Prepaid expenses, all other current assets and other assets | 18,589 | 264 |
Accounts payable | -147,359 | 91,708 |
Trustee taxes payable | -15,603 | -7,515 |
Change in fair value of forward fixed price contracts | 15,472 | -25,450 |
Accrued expenses, all other current liabilities and other long-term liabilities | -9,842 | 14,533 |
Net cash provided by operating activities | 254,112 | 189,700 |
Cash flows from investing activities | ' | ' |
Acquisitions | -185,262 | -181,898 |
Capital expenditures | -46,935 | -30,907 |
Proceeds from sale of property and equipment | 5,769 | 6,610 |
Net cash used in investing activities | -226,428 | -206,195 |
Cash flows from financing activities | ' | ' |
Payments on working capital revolving credit facility | -124,200 | -161,800 |
(Payments on) borrowings from revolving credit facility | -22,300 | 217,000 |
Borrowings from term loan | 115,000 | ' |
Proceeds from senior notes, net of discount | 67,900 | ' |
Repurchase of common units | -4,331 | -2,152 |
Repurchased units withheld for tax obligations | -2,086 | -96 |
Noncontrolling interest capital contribution | 1,425 | ' |
Distributions to partners | -50,001 | -39,712 |
Net cash (used in) provided by financing activities | -18,593 | 13,240 |
Increase (decrease) in cash and cash equivalents | 9,091 | -3,255 |
Cash and cash equivalents at beginning of period | 5,977 | 4,328 |
Cash and cash equivalents at end of period | 15,068 | 1,073 |
Supplemental information | ' | ' |
Cash paid during the period for interest | $26,002 | $27,720 |
CONSOLIDATED_STATEMENTS_OF_PAR
CONSOLIDATED STATEMENTS OF PARTNERS' EQUITY (USD $) | Total | Common Unitholders | General Partner Interest | Accumulated Other Comprehensive Loss | Noncontrolling Interest |
In Thousands, unless otherwise specified | |||||
Balance at Dec. 31, 2012 | $436,461 | $456,538 | ($407) | ($19,670) | ' |
Increase (Decrease) in Partners' Capital | ' | ' | ' | ' | ' |
Net income (loss) | 8,024 | 6,267 | 2,306 | ' | -549 |
Acquisition of noncontrolling interest, at fair value | 51,000 | ' | ' | ' | 51,000 |
Noncontrolling interest capital contribution | 1,425 | ' | ' | ' | 1,425 |
Other comprehensive income | 5,793 | ' | ' | 5,793 | ' |
Stock-based compensation | 955 | 955 | ' | ' | ' |
Distributions to partners | -50,117 | -47,731 | -2,386 | ' | ' |
Repurchase of common units | -4,331 | -4,331 | ' | ' | ' |
Repurchased units withheld for tax obligation | -2,086 | -2,086 | ' | ' | ' |
Phantom unit dividends | 116 | 116 | ' | ' | ' |
Balance at Sep. 30, 2013 | $447,240 | $409,728 | ($487) | ($13,877) | $51,876 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Organization and Basis of Presentation | ' | |||||||||
Organization and Basis of Presentation | ' | |||||||||
Note 1. Organization and Basis of Presentation | ||||||||||
Organization | ||||||||||
Global Partners LP (the “Partnership”) is a publicly traded Delaware master limited partnership formed in March 2005. As of September 30, 2013, the Partnership had the following wholly owned subsidiaries: Global Companies LLC, Glen Hes Corp., Global Montello Group Corp. (“GMG”), Chelsea Sandwich LLC, Global Energy Marketing LLC, Alliance Energy LLC, Bursaw Oil LLC, GLP Finance Corp., Global Energy Marketing II LLC, Global CNG LLC and Cascade Kelly Holdings LLC. Global GP LLC, the Partnership’s general partner (the “General Partner”) manages the Partnership’s operations and activities and employs its officers and substantially all of its personnel, except for its gasoline station and convenience store employees and certain union personnel who are employed by GMG. | ||||||||||
The Partnership is a midstream logistics and marketing company. The Partnership is one of the largest distributors of gasoline (including gasoline blendstocks such as ethanol and naphtha), distillates (such as home heating oil, diesel and kerosene), residual oil and renewable fuels to wholesalers, retailers and commercial customers in the New England states and New York. The Partnership also engages in the purchasing, selling and logistics of transporting domestic and Canadian crude oil and other products via rail, establishing a “virtual pipeline” from the mid-continent region of the United States and Canada to the East and West Coasts for distribution to refiners and other customers. The Partnership owns, controls or has access to one of the largest terminal networks of refined petroleum products and renewable fuels in Massachusetts, Maine, Connecticut, Vermont, New Hampshire, Rhode Island, New York, New Jersey and Pennsylvania (collectively, the “Northeast”). The Partnership also owns and controls terminals in North Dakota and Oregon that extend its origin-to-destination capabilities. The Partnership is a major multi-brand gasoline distributor and, as of September 30, 2013, had a portfolio of approximately 900 owned, leased and/or supplied gasoline stations primarily in the Northeast. The Partnership receives revenue from retail sales of gasoline, convenience store sales and gasoline station rental income. The Partnership is also a distributor of natural gas and propane. In addition, the Partnership provides ancillary services to companies and receives revenue from these ancillary services. | ||||||||||
On March 1, 2012, the Partnership acquired from AE Holdings Corp. (“AE Holdings”) 100% of the outstanding membership interests in Alliance Energy LLC (“Alliance”) (see Note 3). Prior to the closing of the acquisition, Alliance was wholly owned by AE Holdings, which is approximately 95% owned by members of the Slifka family. No member of the Slifka family owned a controlling interest in AE Holdings, nor currently owns a controlling interest in the General Partner. Three independent directors of the General Partner’s board of directors serve on a conflicts committee. The conflicts committee unanimously approved the Alliance acquisition and received advice from its independent counsel and independent financial adviser. | ||||||||||
On February 1, 2013, the Partnership acquired a 60% membership interest in Basin Transload LLC (“Basin Transload”), and on February 15, 2013, the Partnership acquired 100% of the membership interests in Cascade Kelly Holdings LLC (“Cascade Kelly”). See Note 3. | ||||||||||
The General Partner, which holds a 0.83% general partner interest in the Partnership, is owned by affiliates of the Slifka family. As of September 30, 2013, affiliates of the General Partner, including its directors and executive officers, owned 11,548,902 common units, representing a 42.1% limited partner interest. | ||||||||||
Basis of Presentation | ||||||||||
The financial results of Basin Transload for the eight months ended September 30, 2013 and of Cascade Kelly for the seven and one-half months ended September 30, 2013 are included in the accompanying statements of income for the nine months ended September 30, 2013. The Partnership consolidated the September 30, 2013 balance sheet of Basin Transload because the Partnership controls the entity. The accompanying consolidated financial statements as of September 30, 2013 and December 31, 2012 and for the three and nine months ended September 30, 2013 and 2012 reflect the accounts of the Partnership. All intercompany balances and transactions have been eliminated. | ||||||||||
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and reflect all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial condition and operating results for the interim periods. The interim financial information, which has been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), should be read in conjunction with the consolidated financial statements for the year ended December 31, 2012 and notes thereto contained in the Partnership’s Annual Report on Form 10-K. The significant accounting policies described in Note 2, “Summary of Significant Accounting Policies,” of such Annual Report on Form 10-K are the same used in preparing the accompanying consolidated financial statements. | ||||||||||
The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the results of operations that will be realized for the entire year ending December 31, 2013. The consolidated balance sheet at December 31, 2012 has been derived from the audited consolidated financial statements included in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2012. | ||||||||||
Due to the nature of the Partnership’s business and its customers’ reliance, in part, on consumer travel and spending patterns, the Partnership may experience more demand for gasoline and gasoline blendstocks during the late spring and summer months than during the fall and winter. Travel and recreational activities are typically higher in these months in the geographic areas in which the Partnership operates, increasing the demand for gasoline and gasoline blendstocks that the Partnership distributes. Therefore, the Partnership’s volumes in gasoline and gasoline blendstocks are typically higher in the second and third quarters of the calendar year. As demand for some of the Partnership’s refined petroleum products, specifically home heating oil and residual oil for space heating purposes, is generally greater during the winter months, heating oil and residual oil sales are generally higher during the first and fourth quarters of the calendar year. These factors may result in significant fluctuations in the Partnership’s quarterly operating results. | ||||||||||
Noncontrolling Interest | ||||||||||
These financial statements reflect the application of ASC 810, “Consolidations” (“ASC 810”) which establishes accounting and reporting standards that require: (i) the ownership interest in subsidiaries held by parties other than the parent to be clearly identified and presented in the consolidated balance sheet within shareholder’s equity, but separate from the parent’s equity; (ii) the amount of consolidated net income attributable to the parent and the noncontrolling interest to be clearly identified and presented on the face of the consolidated statement of operations and (iii) changes in a parent’s ownership interest while the parent retains its controlling financial interest in its subsidiary to be accounted for consistently. | ||||||||||
The Partnership acquired a 60% interest in Basin Transload on February 1, 2013. After evaluating ASC 810, the Partnership concluded it is appropriate to consolidate the balance sheet and statement of operations of Basin Transload based on an evaluation of the outstanding voting interests. Amounts pertaining to the noncontrolling ownership interest held by third parties in the financial position and operating results of the Partnership are reported as a noncontrolling interest in the accompanying consolidated balance sheet and statement of income. | ||||||||||
Reclassification | ||||||||||
Amortization expense of deferred financing fees has been reclassified from selling, general and administrative expenses to interest expense. | ||||||||||
Concentration of Risk | ||||||||||
The following table presents the Partnership’s product sales as a percentage of total sales for the periods presented: | ||||||||||
Three Months Ended | Nine Months Ended | |||||||||
September 30, | September 30, | |||||||||
2013 | 2012 | 2013 | 2012 | |||||||
Gasoline sales: gasoline and gasoline blendstocks such as ethanol and naphtha | 65% | 76% | 59% | 70% | ||||||
Distillates (home heating oil, diesel and kerosene), residual oil, crude oil, natural gas and propane sales | 35% | 24% | 41% | 30% | ||||||
Total | 100% | 100% | 100% | 100% | ||||||
The Partnership had two significant customers, ExxonMobil Corporation (“ExxonMobil”) and Phillips 66 (“Phillips 66”), which accounted for approximately 18% and 11%, respectively, of total sales for the three months ended September 30, 2013, and approximately 15% and 14% respectively, of total sales for the nine months ended September 30, 2013. The Partnership had one significant customer, ExxonMobil, which accounted for approximately 16% and 16% of total sales for the three and nine months ended September 30, 2012, respectively. |
Restatement
Restatement | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Restatement | ' | |||||||||||||||
Restatement | ' | |||||||||||||||
Note 2. Restatement | ||||||||||||||||
The Partnership is restating its unaudited consolidated financial statements primarily to reflect a correction in its accounting for Renewable Identification Numbers (“RINs”). A RIN is a serial number assigned to a batch of biofuel for the purpose of tracking its production, use, and trading as required by the Environmental Protection Agency’s (“EPA”) Renewable Fuel Standard that originated with the Energy Policy Act of 2005. To evidence that the required volume of renewable fuel is blended with gasoline, obligated parties must retire sufficient RINs to cover their Renewable Volume Obligation (“RVO”). The Partnership’s EPA obligations relative to renewable fuel reporting are largely limited to the foreign gasoline that the Partnership may choose to import. As a wholesaler of transportation fuels through its terminals, the Partnership separates RINs from renewable fuel through blending with gasoline and can use those separated RINs to settle its RVO. While the annual compliance period for a RVO is a calendar year, the settlement of the RVO can occur, under certain deferral elections, more than one year after the close of the compliance period. | ||||||||||||||||
In connection with the year ended December 31, 2013 financial statement close process, certain misstatements were identified related to the Partnership’s accounting for the RVO, RIN inventory and the mark to market loss related to RIN forward commitments. The Partnership has corrected its accounting for RINs, which included the recognition of a mark-to-market liability associated with the RVO deficiency at period end (the “RVO Deficiency”). At September 30, 2013, the Partnership’s RVO Deficiency was $22.6 million, the mark to market loss related to RIN forward commitments was $6.6 million and the reduction in previously reported RIN inventory was $4.8 million. The Partnership is restating its consolidated balance sheet at September 30, 2013 and the results of operations for the three and nine months ended September 30, 2013 to reflect in the proper period the impact of these accounting corrections. The impact of these corrections was to increase net income by $15.0 million for the three months ended September 30, 2013, and to decrease net income by 29.9 million for the nine months ended September 30, 2013. | ||||||||||||||||
Additionally, the Partnership determined that at September 30, 2013, certain accrued liabilities related to the procurement of petroleum products were no longer warranted. The Partnership is restating its consolidated balance sheet at September 30, 2013 and results of operations for the three and nine months then ended to reflect the correction of the timing of the relief of these accrued liabilities at that date. The impact of these corrections was $5.4 million and $10.8 million of additional income for the three and nine months ended September 30, 2013. | ||||||||||||||||
The Partnership has also corrected other items that individually and in the aggregate are immaterial to the Partnership’s operating results. The more significant of these items include a correction to the Partnership’s business combination accounting related to a 2013 acquisition and an income statement classification error related to the Partnership’s presentation of amortization of deferred financing fees. | ||||||||||||||||
As a result, the Partnership has restated its unaudited consolidated financial statements to reflect these corrections as of and for the three and nine months ended September 30, 2013. These corrections had no impact on the Partnership’s previously reported net cash provided by operating activities, net cash provided by investing activities or net cash used in financing activities. | ||||||||||||||||
The following is a summary of the adjustments to the Partnership’s previously issued unaudited consolidated balance sheet as of September 30, 2013 (in thousands): | ||||||||||||||||
Previously | Adjustments | Restated | ||||||||||||||
Reported | ||||||||||||||||
Assets | ||||||||||||||||
Accounts receivable, net | $ | 781,800 | $ | (155,971 | ) (d)(e) | $ | 625,829 | |||||||||
Inventories | $ | 402,221 | $ | (4,809 | ) (a) | $ | 397,412 | |||||||||
Total current assets | $ | 1,319,871 | $ | (160,780 | ) (a)(d)(e) | $ | 1,159,091 | |||||||||
Intangible assets, net | $ | 129,755 | $ | (56,092 | ) (c) | $ | 73,663 | |||||||||
Goodwill | $ | 58,890 | $ | 59,500 | (c) | $ | 118,390 | |||||||||
Total assets | $ | 2,364,641 | $ | (157,372 | ) (a)(c)(d)(e) | $ | 2,207,269 | |||||||||
Liabilities and partners’ equity | ||||||||||||||||
Accounts payable | $ | 769,693 | $ | (154,600 | ) (d) | $ | 615,093 | |||||||||
Accrued expenses and other current liabilities | $ | 46,403 | $ | 14,218 | (b)(f)(g) | $ | 60,621 | |||||||||
Total current liabilities | $ | 1,050,143 | $ | (140,382 | ) (b)(d)(f)(g) | $ | 909,761 | |||||||||
Total liabilities | $ | 1,900,411 | $ | (140,382 | ) (b)(d)(f)(g) | $ | 1,760,029 | |||||||||
Partners’ equity | ||||||||||||||||
Common unitholders | $ | 427,929 | $ | (18,201 | ) | $ | 409,728 | |||||||||
General partner interest | $ | (335 | ) | $ | (152 | ) (j) | $ | (487 | ) | |||||||
Total Global Partners LP equity | $ | 413,717 | $ | (18,353 | ) | $ | 395,364 | |||||||||
Noncontrolling interest | $ | 50,513 | $ | 1,363 | (i) | $ | 51,876 | |||||||||
Total partners’ equity | $ | 464,230 | $ | (16,990 | ) | $ | 447,240 | |||||||||
Total liabilities and partners’ equity | $ | 2,364,641 | $ | (157,372 | ) | $ | 2,207,269 | |||||||||
The following is a summary of the adjustments to the Partnership’s previously issued unaudited consolidated statement of income for the three and nine months ended September 30, 2013, the most significant of which relates to an aggregate of RIN adjustments totaling $15.0 million (income) and $29.9 million (expense) for the three and nine months ended September 30, 2013 (see footnotes (a)(f)(g)) (in thousands, except per unit data): | ||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||
Previously | Adjustments | Restated | ||||||||||||||
Reported | ||||||||||||||||
Cost of sales | $ | 4,337,146 | $ | (21,813 | ) (a)(b)(f)(g)(h) | $ | 4,315,333 | |||||||||
Gross profit | $ | 96,280 | $ | 21,813 | (a)(b)(f)(g)(h) | $ | 118,093 | |||||||||
Selling, general and administrative expenses | $ | 29,086 | $ | (1,197 | ) (e) | $ | 27,889 | |||||||||
Amortization | $ | 6,676 | $ | (1,903 | ) (c) | $ | 4,773 | |||||||||
Total operating expenses | $ | 82,475 | $ | (3,100 | ) (c)(e) | $ | 79,375 | |||||||||
Operating income | $ | 13,805 | $ | 24,913 | (a)(b)(c)(e)(f)(g)(h) | $ | 38,718 | |||||||||
Interest expense | $ | (9,111 | ) | $ | (1,744 | ) (e) | $ | (10,855 | ) | |||||||
Income before income taxes | $ | 4,694 | $ | 23,169 | (a)(b)(c)(e)(f)(g)(h) | $ | 27,863 | |||||||||
Net income | $ | 1,967 | $ | 23,169 | (a)(b)(c)(e)(f)(g)(h) | $ | 25,136 | |||||||||
Net loss attributable to noncontrolling interest | $ | 1,440 | $ | (761 | ) (i) | $ | 679 | |||||||||
Net income attributable to Global Partners LP | $ | 3,407 | $ | 22,408 | $ | 25,815 | ||||||||||
General partner’s interest in net income, including incentive distribution rights | $ | (856 | ) | $ | (186 | ) (j) | $ | (1,042 | ) | |||||||
Limited partners’ interest in net income | $ | 2,551 | $ | 22,222 | $ | 24,773 | ||||||||||
Basic net income per limited partner unit | $ | 0.09 | $ | 0.82 | $ | 0.91 | ||||||||||
Diluted net income per limited partner unit | $ | 0.09 | $ | 0.82 | $ | 0.91 | ||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||
Previously | Adjustments | Restated | ||||||||||||||
Reported | ||||||||||||||||
Cost of sales | $ | 14,504,383 | $ | 19,027 | (a)(b)(f)(g)(h) | $ | 14,523,410 | |||||||||
Gross profit | $ | 289,989 | $ | (19,027 | ) (a)(b)(f)(g)(h) | $ | 270,962 | |||||||||
Selling, general and administrative expenses | $ | 82,923 | $ | (3,691 | ) (e) | $ | 79,232 | |||||||||
Amortization | $ | 16,729 | $ | (3,408 | ) (c) | $ | 13,321 | |||||||||
Total operating expenses | $ | 237,072 | $ | (7,099 | ) (c)(e) | $ | 229,973 | |||||||||
Operating income | $ | 52,917 | $ | (11,928 | ) (a)(b)(c)(e)(f)(g)(h) | $ | 40,989 | |||||||||
Interest expense | $ | (27,051 | ) | $ | (5,062 | ) (e) | $ | (32,113 | ) | |||||||
Income before income taxes | $ | 25,866 | $ | (16,990 | ) (a)(b)(c)(e)(f)(g)(h) | $ | 8,876 | |||||||||
Net income | $ | 25,014 | $ | (16,990 | ) (a)(b)(c)(e)(f)(g)(h) | $ | 8,024 | |||||||||
Net loss attributable to noncontrolling interest | $ | 1,912 | $ | (1,363 | ) (i) | $ | 549 | |||||||||
Net income attributable to Global Partners LP | $ | 26,926 | $ | (18,353 | ) | $ | 8,573 | |||||||||
General partner’s interest in net income, including incentive distribution rights | $ | (2,458 | ) | $ | 152 | (j) | $ | (2,306 | ) | |||||||
Limited partners’ interest in net income | $ | 24,468 | $ | (18,201 | ) | $ | 6,267 | |||||||||
Basic net income per limited partner unit | $ | 0.89 | $ | (0.66 | ) | $ | 0.23 | |||||||||
Diluted net income per limited partner unit | $ | 0.89 | $ | (0.66 | ) | $ | 0.23 | |||||||||
The following is a summary of the adjustments to the Partnership’s previously issued unaudited consolidated statement of comprehensive income for the three and nine months ended September 30, 2013, the most significant of which relates to an aggregate of RIN adjustments totaling $15.0 million (income) and $29.9 million (expense) for the three and nine months ended September 30, 2013 (see footnote (a)(f)(g)) (in thousands): | ||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||
Previously | Adjustments | Restated | ||||||||||||||
Reported | ||||||||||||||||
Net income | $ | 1,967 | $ | 23,169 | $ | 25,136 | ||||||||||
Comprehensive income | $ | 2,213 | $ | 23,169 | $ | 25,382 | ||||||||||
Comprehensive loss attributable to noncontrolling interest | $ | 1,440 | $ | -761 | $ | 679 | ||||||||||
Comprehensive income (loss) attributable to Global Partners LP | $ | 3,653 | $ | 22,408 | $ | 26,061 | ||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||
Previously | Adjustments | Restated | ||||||||||||||
Reported | ||||||||||||||||
Net income | $ | 25,014 | $ (16,990) | $ | 8,024 | |||||||||||
Comprehensive income | $ | 30,807 | $ (16,990) | $ | 13,817 | |||||||||||
Comprehensive loss attributable to noncontrolling interest | $ | 1,912 | $ (1,363) | $ | 549 | |||||||||||
Comprehensive income attributable to Global Partners LP | $ | 32,719 | $ (18,353) | $ | 14,366 | |||||||||||
The following is a summary of the adjustments to the Partnership’s previously issued unaudited consolidated statement of cash flows for the nine months ended September 30, 2013, the most significant of which relates to an aggregate of RIN adjustments totaling $29.9 million (expense) for the nine months ended September 30, 2013 (see footnote (a)(f)(g)) (in thousands): | ||||||||||||||||
Previously | Adjustments | Restated | ||||||||||||||
Reported | ||||||||||||||||
Net income | $ | 25,014 | $ | -16,990 | $ | 8,024 | ||||||||||
Depreciation and amortization | $ | 58,942 | $ | -3,408 | $ | 55,534 | ||||||||||
Bad debt expense | $ | 1,659 | $ | 1,371 | $ | 3,030 | ||||||||||
Accounts receivable | $ | (84,398 | ) | $ | 154,600 | $ | 70,202 | |||||||||
Inventories | $ | 232,577 | $ | 4,809 | $ | 237,386 | ||||||||||
Accounts payable | $ | 7,241 | $ | -154,600 | $ | (147,359 | ) | |||||||||
Accrued expenses, all other current liabilities and other long-term liabilities | $ | (24,060 | ) | $ | 14,218 | $ | (9,842 | ) | ||||||||
Net cash provided by operating activities | 254,112 | — | 254,112 | |||||||||||||
(a) To reduce previously reported inventory for the nine months ended September 30, 2013 by approximately $4.8 million (expense). The impact of adjusting previously reported RIN inventory in prior quarters resulted in a $9.0 million increase in net income for the three months ended September 30, 2013. | ||||||||||||||||
(b) To reduce accrued liabilities related to the procurement of petroleum products by approximately $5.4 million (income) and $10.8 million (income) for the three and nine months ended September 30, 2013 for accruals determined to no longer be warranted at the end of the reporting period. | ||||||||||||||||
(c) To correct the valuation of customer relationships and related amortization expense on such assets acquired in connection with the February 1, 2013 acquisition of a 60% membership interest in Basin Transload LLC. Specifically, the reduction in the value of customer relationships reflects the reversal of a customer relationship that was determined to not meet the criteria of a capitalizable intangible asset and, separately, a reduction in the cash flow period for another customer relationship that should have been considered at the date of acquisition. The difference in the amortization expense for the three and nine months ended September 30, 2013 of $1.9 million and $3.4 million, respectively, reflects the reduction in the value of customer relationships acquired of $52.0 million and the reduction in the economic useful life of the remaining assets from five to two years. | ||||||||||||||||
(d) To reduce accounts receivable by $154.6 million and accounts payable by $154.6 million which reflect the netting of positive and negative product exchange balances with the same counterparty which has a right of offset. | ||||||||||||||||
(e) Other adjustments to operating expenses include an increase to the allowance for doubtful accounts of $547,000 and $1.4 million for the three and nine months ended September 30,2013, respectively and an income statement reclassification of amortization of deferred financing fees from selling, general and administrative expenses to interest expense of $1.7 million and $5.1 million for the three and nine months ended September 30, 2013, respectively. | ||||||||||||||||
(f) To record the change in the RVO Deficiency of approximately $13.5 million (expense) and $22.6 million (expense) at the end of the reporting period for the three and nine months ended September 30, 2013, respectively. | ||||||||||||||||
(g) To record the change in the liability related to the losses on RIN forward commitments of $19.5 million (income) and $2.6 million (expense) for the three and nine months ended September 30, 2013. | ||||||||||||||||
(h) Other adjustments to costs of sales include a $1.3 million (income) and $0.0 million fair value of oil related forward fixed price contracts for the three and nine months ended September 30, 2013. | ||||||||||||||||
(i) Represents impact of all adjustments to the net loss attributable to the non-controlling interest of $761,000 (expense) and $1.4 million (expense), respectively. | ||||||||||||||||
(j) Represents impact of all adjustments to the General Partner’s interest in net income of $186,000 (income) and $152,000 (expense), respectively. | ||||||||||||||||
2013 Acquisitions | ||||||||||||||||
Acquisition of Basin Transload LLC | ||||||||||||||||
On February 1, 2013, the Partnership acquired a 60% membership interest in Basin Transload, which operates two transloading facilities in Columbus and Beulah, North Dakota for crude oil and other products, with a combined rail loading capacity of 160,000 barrels per day. The purchase price, including expenditures related to certain capital expansion projects, was approximately $91.1 million which the Partnership financed with borrowings under its credit facility. |
Business_Combinations
Business Combinations | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Business Combinations | ' | ||||||||||
Business Combinations | ' | ||||||||||
Note 3. Business Combinations | |||||||||||
The acquisition was accounted for using the purchase method of accounting in accordance with the Financial Accounting Standards Board’s (“FASB”) guidance regarding business combinations. The Partnership’s financial statements include the results of operations of its membership interest in Basin Transload subsequent to the acquisition date. | |||||||||||
The purchase price allocation is considered preliminary, and additional adjustments may be recorded during the allocation period in accordance with the FASB’s guidance regarding business combinations. The purchase price allocation will be finalized as the Partnership receives additional information relevant to the acquisition, including a final valuation of the assets purchased, including tangible and intangible assets, and liabilities assumed. | |||||||||||
The following table presents the preliminary allocation of the purchase price to the estimated fair value of the assets acquired and liabilities assumed at the date of acquisition (in thousands): | |||||||||||
Assets purchased: | |||||||||||
Accounts receivable | $ | 2,003 | |||||||||
Prepaid expenses | 68 | ||||||||||
Property and equipment | 29,112 | ||||||||||
Intangibles | 26,162 | ||||||||||
Total identifiable assets purchased | 57,345 | ||||||||||
Liabilities assumed: | |||||||||||
Accounts payable | (1,326 | ) | |||||||||
Total liabilities assumed | (1,326 | ) | |||||||||
Net identifiable assets acquired | 56,019 | ||||||||||
Noncontrolling interest | (51,000 | ) | |||||||||
Goodwill | 86,064 | ||||||||||
Net assets acquired | $ | 91,083 | |||||||||
The Partnership engaged a third-party valuation firm to assist in the valuation of the Partnership’s interest in Basin Transload’s property and equipment, intangible assets and noncontrolling interest. During the quarter ended September 30, 2013, the Partnership recorded certain changes to the preliminary purchase accounting, primarily related to the values assigned to property and equipment, intangibles and the noncontrolling interest based on a preliminary valuation received from a third-party valuation firm. The impact of these changes increased goodwill from $76.1 million at June 30, 2013 to $86.1 million at September 30, 2013. | |||||||||||
The Partnership’s third party valuation firm primarily used the replacement cost methodology to value property and equipment, adjusted for depreciation associated with the age and estimated condition of the assets. The income approach was used to value the intangible assets, which consist principally of customer relationships. | |||||||||||
The fair value of the noncontrolling interest was developed by a third-party valuation firm based on the fair value of the acquired business as a whole, reduced by the consideration paid by management to obtain control. This fair value of the business was estimated based on the fair value of Basin Transload’s net assets and applying a reasonable control premium. | |||||||||||
The fair values of the remaining Basin Transload assets and liabilities noted above approximate their carrying values at February 1, 2013. The Partnership is completing its review of the preliminary values received from the third-party valuation firm with a particular emphasis on assessing the appropriate number of years of cash flows used to value the intangible assets given the nature of the industry. It is possible that once the Partnership receives the completed valuations on the property and equipment, intangible assets and noncontrolling interest, the final purchase price accounting may be different than what is presented above. | |||||||||||
The preliminary purchase price for the acquisition was allocated to assets acquired and liabilities assumed based on their estimated fair values. The Partnership then allocated the purchase price in excess of net tangible assets acquired to identifiable intangible assets, based upon on their estimates and assumptions. Any excess purchase price over the fair value of the net tangible and intangible assets acquired was allocated to goodwill. | |||||||||||
The Partnership utilized accounting guidance related to intangible assets which lists the pertinent factors to be considered when estimating the useful life of an intangible asset. These factors include, in part, a review of the expected use by the Partnership of the assets acquired, the expected useful life of another asset (or group of assets) related to the acquired assets and legal, regulatory or other contractual provisions that may limit the useful life of an acquired asset. The Partnership amortizes these intangible assets over their estimated useful lives which is consistent with the estimated undiscounted future cash flows of these assets. | |||||||||||
As part of the purchase price allocation, identifiable intangible assets include customer relationships that are being amortized over two years. Amortization expense amounted to $3.0 million and $8.0 million for the three and nine months ended September 30, 2013, respectively. The following table presents the estimated remaining amortization expense for intangible assets acquired in connection with the acquisition (in thousands): | |||||||||||
2013 (10/1/13 – 12/31/13) | $ | 2,978 | |||||||||
2014 | 12,111 | ||||||||||
2015 | 2,969 | ||||||||||
Total | $ | 18,058 | |||||||||
The $86.1 million of goodwill was assigned to the Wholesale reporting unit. The goodwill recognized is attributed to the unique origin of the acquired locations through which the Partnership’s customers can efficiently supply cost-competitive crude oil to destinations on the East and West Coasts. The goodwill is deductible for income tax purposes. | |||||||||||
Acquisition of Cascade Kelly Holdings LLC | |||||||||||
On February 15, 2013, the Partnership acquired 100% of the membership interests in Cascade Kelly, which owns a West Coast crude oil and ethanol facility near Portland, Oregon. The total cash purchase price was approximately $94.2 million which the Partnership funded with borrowings under its credit facility and with proceeds from the issuance of the Partnership’s unsecured 8.00% senior notes due 2018 (see Note 7). The transaction includes a rail transloading facility serviced by the Burlington Northern Santa Fe Railway, 200,000 barrels of storage capacity, a deepwater marine terminal with access to a 1,200-foot leased dock and the largest ethanol plant on the West Coast. Situated along the Columbia River in Clatskanie, Oregon, the site is located on land leased under a long-term agreement from the Port of St. Helens. | |||||||||||
The acquisition was accounted for using the purchase method of accounting in accordance with the FASB’s guidance regarding business combinations. The Partnership’s financial statements include the results of operations of Cascade Kelly subsequent to the acquisition date. | |||||||||||
The purchase price allocation is considered preliminary, and additional adjustments may be recorded during the allocation period in accordance with the FASB’s guidance regarding business combinations. The purchase price allocation will be finalized as the Partnership receives additional information relevant to the acquisition, including a final valuation of the assets purchased, including tangible and intangible assets, and liabilities assumed. | |||||||||||
The following table presents the preliminary allocation of the purchase price to the estimated fair value of the assets acquired and liabilities assumed at the date of acquisition (in thousands): | |||||||||||
Assets purchased: | |||||||||||
Accounts receivable | $ | 296 | |||||||||
Inventory | 131 | ||||||||||
Prepaid expenses | 96 | ||||||||||
Property and equipment | 96,591 | ||||||||||
Total identifiable assets purchased | 97,114 | ||||||||||
Liabilities assumed: | |||||||||||
Accounts payable | (1,428 | ) | |||||||||
Other current liabilities | (1,507 | ) | |||||||||
Total liabilities assumed | (2,935 | ) | |||||||||
Net identifiable assets acquired | $ | 94,179 | |||||||||
Management is in the process of finalizing the purchase price accounting. The Partnership engaged a third-party valuation firm to assist in the valuation of Cascade Kelly’s property and equipment, and the preliminary estimate of fair value is $96.6 million. During the quarter ended September 30, 2013, the Partnership recorded certain changes to the preliminary purchase accounting, primarily related to the values assigned to property and equipment based on a preliminary valuation received from a third-party valuation firm. The impact of these changes decreased goodwill from $51.1 million at June 30, 2013 to $0 at September 30, 2013. | |||||||||||
During the preliminary stage of evaluating the purchase price accounting, the estimated fair value of property and equipment developed by management and used in the determination of the acquisition price was based on management’s acquisition history and on the crude oil facility. In the third quarter, the Partnership’s third-party valuation firm completed inspections of the crude oil and ethanol fixed assets and prepared a preliminary valuation which began with quantifying the replacement cost of the acquired assets. The level of physical depreciation and other forms of depreciation was then quantified and deducted from the replacement cost to arrive at the fair value of the assets. The impact of the valuation was to increase property and equipment by $51.5 million. Management attributed the increase to the completion of the valuation by the third-party valuation firm, which concluded that the fair value of the ethanol assets is more favorable than originally anticipated. The Partnership continues to review the assumptions used in valuing the crude oil and ethanol fixed assets, with a particular focus on the adjustments made between replacement cost and fair value. | |||||||||||
The Partnership expects to make the capital improvements necessary to place the ethanol plant into service; therefore, as of September 30, 2013, the fair value of the ethanol plant is included in construction in process. After the plant has been successfully placed into service, depreciation will commence. | |||||||||||
It is possible that once the Partnership receives the completed valuations on the property and equipment, the final purchase price accounting may be different than what is presented above. | |||||||||||
The fair values of the remaining Cascade Kelly assets and liabilities noted above approximate their carrying values at February 15, 2013. | |||||||||||
The preliminary purchase price for the acquisition was allocated to assets acquired and liabilities assumed based on their estimated fair values. The Partnership then allocated the purchase price in excess of net tangible assets acquired to identifiable intangible assets, if any, based upon on their estimates and assumptions. | |||||||||||
2012 Acquisition | |||||||||||
Alliance Energy LLC—On March 1, 2012, pursuant to a Contribution Agreement between the Partnership and AE Holdings (the “Contribution Agreement”), the Partnership acquired from AE Holdings 100% of the outstanding membership interests in Alliance, a gasoline distributor and operator of gasoline stations and convenience stores. The aggregate purchase price of the acquisition was approximately $312.4 million, consisting of both cash and non-cash components. Alliance was an affiliate of the Partnership as Alliance was owned by AE Holdings which is approximately 95% owned by members of the Slifka family. Both the Partnership and Alliance shared certain common directors. | |||||||||||
The acquisition was accounted for using the purchase method of accounting in accordance with the FASB’s guidance regarding business combinations. The Partnership’s financial statements include the results of operations of Alliance subsequent to the acquisition date. | |||||||||||
The purchase price includes cash consideration of $181.9 million which was funded by the Partnership through additional borrowings under its revolving credit facility. The consideration also includes the issuance of 5,850,000 common units representing limited partner interests in the Partnership which had a fair value of $22.31 per unit on March 1, 2012, resulting in equity consideration of $130.5 million. | |||||||||||
The purchase price for the acquisition was allocated to assets acquired and liabilities assumed based on their estimated fair values with the exception of environmental liabilities which were recorded on an undiscounted basis (see Note 12). The Partnership then allocated the purchase price in excess of net tangible assets acquired to identifiable intangible assets, based upon a valuation from an independent third party. Any excess purchase price over the fair value of the net tangible and intangible assets acquired was allocated to goodwill and assigned to the Gasoline Distribution and Station Operations reporting unit. | |||||||||||
Goodwill — The following table presents a summary roll forward of the Partnership’s goodwill at September 30, 2013 (in thousands): | |||||||||||
Goodwill at | Goodwill at | ||||||||||
December 31, | 2013 | September 30, | |||||||||
2012 | Additions | 2013 | |||||||||
Acquisition of Alliance (1) | $ | 31,151 | $ | — | $ | 31,151 | |||||
Acquisition of gasoline stations from Mutual Oil Company (1) | 1,175 | — | 1,175 | ||||||||
Acquisition of 60% interest in Basin Transload (2) | — | 86,064 | 86,064 | ||||||||
Total | $ | 32,326 | $ | 86,064 | $ | 118,390 | |||||
(1) Goodwill allocated to the Gasoline Distribution and Station Operations reporting unit | |||||||||||
(2) Goodwill allocated to the Wholesale reporting unit | |||||||||||
Supplemental Pro-Forma Information — Revenues and net income included in the Partnership’s consolidated operating results for Basin Transload from January 1, 2013 to February 1, 2013, the acquisition date, and for Cascade Kelly from January 1, 2013 to February 15, 2013, the acquisition date, were immaterial. Accordingly, the supplemental pro-forma information for the nine months ended September 30, 2013 is consistent with the amounts reported in the accompanying statement of income for the nine months ended September 30, 2013. | |||||||||||
The following unaudited pro-forma information presents the consolidated results of operations of the Partnership as if the acquisitions of Basin Transload, Cascade Kelly and Alliance occurred at the beginning of the period presented, with pro-forma adjustments to give effect to intercompany sales and certain other adjustments (in thousands, except per unit data): | |||||||||||
Nine Months Ended | |||||||||||
September 30, 2012 | |||||||||||
Sales | $ | 12,758,170 | |||||||||
Net loss | $ | (4,194 | ) | ||||||||
Net loss per limited partner unit, basic and diluted | $ | (0.17 | ) | ||||||||
The Partnership’s 60% interest in Basin Transload’s sales and net loss included in the Partnership’s consolidated operating results from February 1, 2013, the acquisition date, through the period ended September 30, 2013 were $6.4 million and $2.9 million, respectively. Cascade Kelly’s sales and net loss included in the Partnership’s consolidated operating results from February 15, 2013, the acquisition date, through the period ended September 30, 2013 were $7.7 million and $1.3 million, respectively. |
Net_Income_Per_Limited_Partner
Net Income Per Limited Partner Unit | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Net Income Per Limited Partner Unit | ' | |||||||||||||||||||||||||||
Net Income Per Limited Partner Unit | ' | |||||||||||||||||||||||||||
Note 4. Net Income Per Limited Partner Unit | ||||||||||||||||||||||||||||
Under the Partnership’s partnership agreement, for any quarterly period, the incentive distribution rights (“IDRs”) participate in net income only to the extent of the amount of cash distributions actually declared, thereby excluding the IDRs from participating in the Partnership’s undistributed net income or losses. Accordingly, the Partnership’s undistributed net income is assumed to be allocated to the common unitholders, or limited partners’ interest, and to the General Partner’s general partner interest. | ||||||||||||||||||||||||||||
At September 30, 2013 and December 31, 2012, common units outstanding as reported in the accompanying consolidated financial statements excluded 162,316 and 119,915 common units, respectively, held on behalf of the Partnership pursuant to its repurchase program (see Note 13). These units are not deemed outstanding for purposes of calculating net income per limited partner unit (basic and diluted). | ||||||||||||||||||||||||||||
The following table provides a reconciliation of net income and the assumed allocation of net income to the limited partners’ interest for purposes of computing net income per limited partner unit for the three and nine months ended September 30, 2013 and 2012 (in thousands, except per unit data): | ||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | Three Months Ended September 30, 2012 | |||||||||||||||||||||||||||
Numerator: | Total | Limited | General | IDRs | Total | Limited | General | IDRs | ||||||||||||||||||||
Partner | Partner | Partner | Partner | |||||||||||||||||||||||||
Interest | Interest | Interest | Interest | |||||||||||||||||||||||||
Net income attributable to Global Partners LP | $ | 25,815 | $ | 24,773 | $ | 1,042 | $ | — | $ | 6,893 | $ | 6,577 | $ | 316 | $ | — | ||||||||||||
Declared distribution | $ | 17,425 | $ | 16,459 | $ | 138 | $ | 828 | $ | 15,019 | $ | 14,607 | $ | 122 | $ | 290 | ||||||||||||
Assumed allocation of undistributed net income | 8,390 | 8,314 | 76 | — | (8,126 | ) | (8,030 | ) | (96 | ) | — | |||||||||||||||||
Assumed allocation of net income | $ | 25,815 | $ | 24,773 | $ | 214 | $ | 828 | $ | 6,893 | $ | 6,577 | $ | 26 | $ | 290 | ||||||||||||
Denominator: | ||||||||||||||||||||||||||||
Basic weighted average limited partner units outstanding | 27,333 | 27,311 | ||||||||||||||||||||||||||
Dilutive effect of phantom units | — | 174 | ||||||||||||||||||||||||||
Diluted weighted average limited partner units outstanding | 27,333 | 27,485 | ||||||||||||||||||||||||||
Basic net income per limited partner unit | $ | 0.91 | $ | 0.24 | ||||||||||||||||||||||||
Diluted net income per limited partner unit (1) | $ | 0.91 | $ | 0.24 | ||||||||||||||||||||||||
(1) Basic units were used to calculate diluted net income per limited partner unit for the three months ended September 30, 2013 as using the effects of the phantom units would have an anti-dilutive effect on income per limited partner unit. | ||||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||
Numerator: | Total | Limited | General | IDRs | Total | Limited | General | IDRs | ||||||||||||||||||||
Partner | Partner | Partner | Partner | |||||||||||||||||||||||||
Interest | Interest | Interest | Interest | |||||||||||||||||||||||||
Net income attributable to Global Partners LP (1) | $ | 8,573 | $ | 6,267 | $ | 2,306 | $ | — | $ | 24,008 | $ | 23,275 | $ | 733 | $ | — | ||||||||||||
Declared distribution | $ | 51,196 | $ | 48,554 | $ | 407 | $ | 2,235 | $ | 43,786 | $ | 42,724 | $ | 358 | $ | 704 | ||||||||||||
Adjustment to distribution in connection with the Alliance acquisition (2) | — | — | — | — | (1,929 | ) | (1,929 | ) | — | — | ||||||||||||||||||
Adjusted declared distribution | 51,196 | 48,554 | 407 | 2,235 | 41,857 | 40,795 | 358 | 704 | ||||||||||||||||||||
Assumed allocation of undistributed net income | (42,623 | ) | (42,287 | ) | (336 | ) | — | (17,849 | ) | (17,520 | ) | (329 | ) | — | ||||||||||||||
Assumed allocation of net income | $ | 8,573 | $ | 6,267 | $ | 71 | $ | 2,235 | $ | 24,008 | $ | 23,275 | $ | 29 | $ | 704 | ||||||||||||
Denominator: | ||||||||||||||||||||||||||||
Basic weighted average limited partner units outstanding | 27,350 | 26,085 | ||||||||||||||||||||||||||
Dilutive effect of phantom units | 243 | 173 | ||||||||||||||||||||||||||
Diluted weighted average limited partner units outstanding | 27,593 | 26,258 | ||||||||||||||||||||||||||
Basic net income per limited partner unit | $ | 0.23 | $ | 0.89 | ||||||||||||||||||||||||
Diluted net income per limited partner unit | $ | 0.23 | $ | 0.89 | ||||||||||||||||||||||||
(1) Calculation includes the effect of the March 1, 2012 issuance of 5,850,000 common units in connection with the acquisition of Alliance. As a result, the general partner interest was 0.83% for the nine months ended September 30, 2013 and, based on a weighted average, 0.87% for the nine months ended September 30, 2012. | ||||||||||||||||||||||||||||
(2) In connection with the acquisition of Alliance on March 1, 2012 and the issuance of 5,850,000 common units, the Contribution Agreement provided that any declared distribution for the first quarter of 2012 reflect the seller’s actual period of ownership during that quarter. The payment by the seller of $1.9 million reflects the timing of the transaction (March 1), the seller’s 31 days of actual unit ownership in the 91 days of the quarter and the net receipt by seller ($1.0 million) of a pro-rated portion of the quarterly cash distribution of $0.50 per unit paid on the issued 5,850,000 common units. | ||||||||||||||||||||||||||||
On April 24, 2013, the board of directors of the General Partner declared a quarterly cash distribution of $0.5825 per unit for the period from January 1, 2013 through March 31, 2013. On July 23, 2013, the board of directors of the General Partner declared a quarterly cash distribution of $0.5875 per unit for the period from April 1, 2013 through June 30, 2013. On October 23, 2013, the board of directors of the General Partner declared a quarterly cash distribution of $0.60 per unit for the period from July 1, 2013 through September 30, 2013. These declared cash distributions result in incentive distributions to the General Partner, as the holder of the IDRs, and enable the Partnership to exceed its second target level distribution with respect to such IDRs. See Note 9, “Cash Distributions” for further information. |
Inventories
Inventories | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventories | ' | |||||||
Inventories | ' | |||||||
Note 5. Inventories | ||||||||
Except for its convenience store inventory and its RIN inventory, the Partnership hedges substantially all of its inventory, primarily through futures contracts. These futures contracts are entered into when inventory is purchased and are designated as fair value hedges against the inventory on a specific barrel basis. Changes in the fair value of these contracts, as well as the offsetting gain or loss on the hedged inventory item, are recognized in earnings as an increase or decrease in cost of sales. All hedged inventory is valued using the lower of cost, as determined by specific identification, or market. Prior to sale, hedges are removed from specific barrels of inventory, and the then unhedged inventory is sold and accounted for on a first-in, first-out basis. In addition, the Partnership has convenience store inventory and RIN inventory which are carried at the lower of historical cost or market. Inventory from Cascade Kelly was nominal at September 30, 2013 and is carried at the lower of cost or market. | ||||||||
Inventories consisted of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Distillates: home heating oil, diesel and kerosene | $ | 165,561 | $ | 235,029 | ||||
Gasoline | 82,061 | 144,269 | ||||||
Gasoline blendstocks | 36,875 | 119,932 | ||||||
Renewable identification numbers (RINs) | 5,854 | 19,384 | ||||||
Crude oil | 60,837 | 80,273 | ||||||
Residual oil | 36,649 | 29,150 | ||||||
Propane and other | 2,411 | — | ||||||
Convenience store inventory | 7,164 | 6,630 | ||||||
Total | $ | 397,412 | $ | 634,667 | ||||
In addition to its own inventory, the Partnership has exchange agreements for petroleum products with unrelated third-party suppliers, whereby it may draw inventory from these other suppliers and suppliers may draw inventory from the Partnership. Positive exchange balances are accounted for as accounts receivable and amounted to $49.2 million and $120.9 million at September 30, 2013 and December 31, 2012, respectively. Negative exchange balances are accounted for as accounts payable and amounted to $40.4 million and $139.5 million at September 30, 2013 and December 31, 2012, respectively. Exchange transactions are valued using current carrying costs. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||||||||
Note 6. Derivative Financial Instruments | ||||||||||||||||||||||||||
Accounting and reporting guidance for derivative instruments and hedging activities requires that an entity recognize derivatives as either assets or liabilities on the balance sheet and measure the instruments at fair value. Changes in the fair value of the derivative are to be recognized currently in earnings, unless specific hedge accounting criteria are met. The Partnership principally uses derivative instruments to hedge the commodity risk associated with its inventory and product purchases and sales and to hedge variable interest rates associated with the Partnership’s credit facilities. | ||||||||||||||||||||||||||
The following table presents the volume of activity related to the Partnership’s derivative financial instruments at September 30, 2013: | ||||||||||||||||||||||||||
Units (1) | Unit of Measure | |||||||||||||||||||||||||
Futures Contracts | ||||||||||||||||||||||||||
Long | 19,639 | Thousands of barrels | ||||||||||||||||||||||||
Short | (23,968 | ) | Thousands of barrels | |||||||||||||||||||||||
Natural Gas Contracts | ||||||||||||||||||||||||||
Long | 7,481 | Thousands of decatherms | ||||||||||||||||||||||||
Short | (7,481 | ) | Thousands of decatherms | |||||||||||||||||||||||
Interest Rate Collar | $ | 100 | Millions of U.S. dollars | |||||||||||||||||||||||
Interest Rate Swap | $ | 100 | Millions of U.S. dollars | |||||||||||||||||||||||
Interest Rate Cap | $ | 100 | Millions of U.S. dollars | |||||||||||||||||||||||
Foreign Currency Derivatives | ||||||||||||||||||||||||||
Open Forward Exchange Contracts (2) | $ | 23.8 | Millions of Canadian dollars | |||||||||||||||||||||||
$ | 23.1 | Millions of U.S. dollars | ||||||||||||||||||||||||
(1) Number of open positions and gross notional amounts do not quantify risk or represent assets or liabilities of the Partnership, but are used in the calculation of daily cash settlements under the contracts. | ||||||||||||||||||||||||||
(2) All-in forward rate Canadian dollars (“CAD”) $1.0311 to USD $1.00. | ||||||||||||||||||||||||||
Fair Value Hedges | ||||||||||||||||||||||||||
The Partnership enters into futures contracts in the normal course of business to reduce the risk of loss of inventory value, which could result from fluctuations in market prices. These futures contracts are designated as fair value hedges against the inventory with specific futures contracts matched to specific barrels of inventory. As a result of the Partnership’s hedge designation on these transactions, the futures contracts are recorded on the Partnership’s consolidated balance sheet and marked to market through the use of independent markets based on the prevailing market prices of such instruments at the date of valuation. Likewise, the underlying inventory being hedged is also marked to market. Changes in the fair value of the futures contracts, as well as the change in the fair value of the hedged inventory, are recognized in the consolidated statement of income through cost of sales. These futures contracts are settled on a daily basis by the Partnership through brokerage margin accounts. | ||||||||||||||||||||||||||
The Partnership’s futures contracts are settled daily; therefore, there was no corresponding asset or liability on the Partnership’s consolidated balance sheet related to these contracts at September 30, 2013 and December 31, 2012. These contracts remain open until their contract end date. The daily settlement of these futures contracts is accomplished through the use of brokerage margin deposit accounts. | ||||||||||||||||||||||||||
The following table presents the hedge ineffectiveness from derivatives involved in fair value hedging relationships recognized in the Partnership’s consolidated statements of income for the three and nine months ended September 30, 2013 and 2012 (in thousands): | ||||||||||||||||||||||||||
Amount of Gain (Loss) Recognized in | ||||||||||||||||||||||||||
Income on Derivatives | ||||||||||||||||||||||||||
Location of Gain (Loss) | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
Derivatives in Fair Value | Recognized in | September 30, | September 30, | |||||||||||||||||||||||
Hedging Relationships | Income on Derivative | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Futures contracts | Cost of sales | $ | (4,348 | ) | $ | (100,666 | ) | $ | 15,753 | $ | (110,114 | ) | ||||||||||||||
Amount of Gain (Loss) Recognized in | ||||||||||||||||||||||||||
Income on Hedged Items | ||||||||||||||||||||||||||
Location of Gain (Loss) | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
Hedged Items in Fair Value | Recognized in | September 30, | September 30, | |||||||||||||||||||||||
Hedged Relationships | Income on Hedged Items | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Inventories | Cost of sales | $ | 4,545 | $ | 100,765 | $ | (15,033 | ) | $ | 110,368 | ||||||||||||||||
Cash Flow Hedges | ||||||||||||||||||||||||||
The Partnership utilizes various interest rate derivative instruments to hedge variable interest rate on its debt. These derivative instruments are designated as cash flow hedges of the underlying debt. To the extent such hedges are effective, the changes in the fair value of the derivative instrument are reported as a component of other comprehensive income (loss) and reclassified into interest expense or interest income in the same period during which the hedged transaction affects earnings. | ||||||||||||||||||||||||||
In September 2008, the Partnership executed a zero premium interest rate collar with a major financial institution. The collar, which became effective on October 2, 2008 and expired on October 2, 2013, was used to hedge the variability in cash flows in monthly interest payments made on $100.0 million of one-month LIBOR-based borrowings on the credit facility (and subsequent refinancings thereof) due to changes in the one-month LIBOR rate. | ||||||||||||||||||||||||||
In October 2009, the Partnership executed an interest rate swap with a major financial institution. The swap, which became effective on May 16, 2011 and expires on May 16, 2016, is used to hedge the variability in interest payments due to changes in the one-month LIBOR swap curve with respect to $100.0 million of one-month LIBOR-based borrowings on the credit facility at a fixed rate of 3.93%. | ||||||||||||||||||||||||||
In April 2011, the Partnership executed an interest rate cap with a major financial institution. The rate cap, which became effective on April 13, 2011 and expires on April 13, 2016, is used to hedge the variability in interest payments due to changes in the one-month LIBOR rate above 5.5% with respect to $100.0 million of one-month LIBOR-based borrowings on the credit facility. | ||||||||||||||||||||||||||
In September 2013, the Partnership executed a forward interest rate swap with a major financial institution. The swap, which became effective on October 2, 2013 and expires on October 2, 2018, is used to hedge the variability in cash flows in monthly interest payments due to changes in the one-month LIBOR swap curve with respect to $100.0 million of one-month LIBOR-based borrowings on the credit facility at a fixed rate of 1.819%. This swap will essentially replace the interest rate collar which expired on October 2, 2013. | ||||||||||||||||||||||||||
The following table presents the fair value of the Partnership’s derivative instruments involved in cash flow hedging relationships and their location in the Partnership’s consolidated balance sheets at September 30, 2013 and December 31, 2012 (in thousands): | ||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||
Derivatives Designated as | 2013 | 2012 | ||||||||||||||||||||||||
Hedging Instruments | Balance Sheet Location | Fair Value | Fair Value | |||||||||||||||||||||||
Asset derivatives | ||||||||||||||||||||||||||
Interest rate cap | Other assets | $ | 49 | $ | 35 | |||||||||||||||||||||
Liability derivatives | ||||||||||||||||||||||||||
Interest rate collar | Other long-term liabilities | $ | 6 | $ | 1,868 | |||||||||||||||||||||
Interest rate swap | Other long-term liabilities | 10,833 | 11,534 | |||||||||||||||||||||||
Total liability derivatives | $ | 10,839 | $ | 13,402 | ||||||||||||||||||||||
The following table presents the amount of net gains and losses from derivatives involved in cash flow hedging relationships recognized in the Partnership’s consolidated statements of income and partners’ equity for the three and nine months ended September 30, 2013 and 2012 (in thousands): | ||||||||||||||||||||||||||
Recognized in Income | Recognized in Income | |||||||||||||||||||||||||
on Derivatives | on Derivatives | |||||||||||||||||||||||||
Amount of Gain (Loss) | (Ineffectiveness Portion | Amount of Gain (Loss) | (Ineffectiveness Portion | |||||||||||||||||||||||
Recognized in Other | and Amount Excluded | Recognized in Other | and Amount Excluded | |||||||||||||||||||||||
Comprehensive Income | from Effectiveness | Comprehensive Income | from Effectiveness | |||||||||||||||||||||||
on Derivatives | Testing) | on Derivatives | Testing) | |||||||||||||||||||||||
Derivatives in | Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||
Cash Flow | September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||
Hedging Relationship | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Interest rate collar | $ | 635 | $ | 481 | $ | — | $ | — | $ | 1,861 | $ | 1,341 | $ | — | $ | — | ||||||||||
Interest rate swap | (1,538 | ) | 78 | — | — | 701 | 133 | — | — | |||||||||||||||||
Interest rate cap | (42 | ) | (44 | ) | — | — | 15 | (270 | ) | — | — | |||||||||||||||
Total | $ | (945 | ) | $ | 515 | $ | — | $ | — | $ | 2,577 | $ | 1,204 | $ | — | $ | — | |||||||||
Ineffectiveness related to the interest rate collar and the interest rate swap is recognized as interest expense and was immaterial for the three and nine months ended September 30, 2013 and 2012. The effective portion related to the interest rate collar that was originally reported in other comprehensive income and reclassified to earnings was $0.6 million for each of the three months ended September 30, 2013 and 2012, and $1.9 million for each of the nine months ended September 30, 2013 and 2012. None of the effective portion related to the interest rate cap that was originally reported in other comprehensive income was reclassified into earnings for the three and nine months ended September 30, 2013 and 2012. | ||||||||||||||||||||||||||
Other Derivative Activity | ||||||||||||||||||||||||||
The Partnership uses futures contracts, and occasionally swap agreements, to hedge its commodity exposure under forward fixed price purchase and sale commitments on its products. These derivatives are not designated by the Partnership as either fair value hedges or cash flow hedges. Rather, the forward fixed price purchase and sales commitments, which meet the definition of a derivative, are reflected in the Partnership’s consolidated balance sheet. The related futures contracts (and swaps, if applicable) are also reflected in the Partnership’s consolidated balance sheet, thereby creating an economic hedge. Changes in the fair value of the futures contracts (and swaps, if applicable), as well as offsetting gains or losses due to the change in the fair value of forward fixed price purchase and sale commitments, are recognized in the consolidated statement of income through cost of sales. These futures contracts are settled on a daily basis by the Partnership through brokerage margin accounts. | ||||||||||||||||||||||||||
While the Partnership seeks to maintain a position that is substantially balanced within its product purchase activities, it may experience net unbalanced positions for short periods of time as a result of variances in daily sales and transportation and delivery schedules as well as other logistical issues inherent in the business, such as weather conditions. In connection with managing these positions, maintaining a constant presence in the marketplace and managing the futures market outlook for future anticipated inventories, which are necessary for its business, the Partnership engages in a controlled trading program for up to an aggregate of 250,000 barrels of products at any one point in time. Any derivatives not involved in a direct hedging activity are marked to market and recognized in the consolidated statement of income through cost of sales. | ||||||||||||||||||||||||||
The Partnership also markets and sells natural gas by entering into forward purchase commitments for natural gas when it enters into arrangements for the forward sale commitment of product for physical delivery to third-party users. The Partnership reflects the fair value of forward fixed purchase and sales commitments in its consolidated balance sheet. Changes in the fair value of the forward fixed price purchase and sale commitments are recognized in the consolidated statement of income through cost of sales. | ||||||||||||||||||||||||||
During the three and nine months ended September 30, 2013, the Partnership entered into forward currency contracts to hedge certain foreign denominated (Canadian) product purchases. These forward contracts are not designated and are reflected in the consolidated balance sheet. Changes in the fair values of these forward currency contracts are reflected in cost of sales. | ||||||||||||||||||||||||||
Similar to the futures contracts used by the Partnership to hedge its inventory, the Partnership’s futures contracts are settled daily and, accordingly, there was no corresponding asset or liability in the Partnership’s consolidated balance sheets related to these contracts at September 30, 2013 and December 31, 2012. These contracts remain open until their contract end date. The daily settlement of these futures contracts is accomplished through the use of brokerage margin deposit accounts. | ||||||||||||||||||||||||||
The following table summarizes the derivatives not designated by the Partnership as either fair value hedges or cash flow hedges and their respective fair values and location in the Partnership’s consolidated balance sheets at September 30, 2013 and December 31, 2012 (in thousands): | ||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||
Balance Sheet | 2013 | 2012 | ||||||||||||||||||||||||
Summary of Other Derivatives | Item Pertains to | Location | Fair Value | Fair Value | ||||||||||||||||||||||
Asset Derivatives | ||||||||||||||||||||||||||
Forward purchase commitments | Gasoline and Gasoline Blendstocks | -1 | $ | 10,328 | $ | 131 | ||||||||||||||||||||
Crude Oil | -1 | 957 | 15,127 | |||||||||||||||||||||||
Residual Oil | -1 | — | 285 | |||||||||||||||||||||||
Total forward purchase commitments | 11,285 | 15,543 | ||||||||||||||||||||||||
Forward sales commitments | Gasoline and Gasoline Blendstocks | -1 | 13,649 | 30,928 | ||||||||||||||||||||||
Distillates | -1 | 3,938 | — | |||||||||||||||||||||||
Crude Oil | -1 | 5,874 | — | |||||||||||||||||||||||
Natural Gas | -1 | 2,255 | 1,591 | |||||||||||||||||||||||
Total forward sales commitments | 25,716 | 32,519 | ||||||||||||||||||||||||
Total forward fixed price contracts | 37,001 | 48,062 | ||||||||||||||||||||||||
Foreign currency forward contract | Foreign Denominated Sales | -2 | — | 145 | ||||||||||||||||||||||
Total asset derivatives | $ | 37,001 | $ | 48,207 | ||||||||||||||||||||||
Liability Derivatives | ||||||||||||||||||||||||||
Forward purchase commitments | Gasoline and Gasoline Blendstocks | -3 | $ | 12,226 | $ | 27,604 | ||||||||||||||||||||
Residual Oil | -3 | 268 | — | |||||||||||||||||||||||
Distillates | -3 | 3,888 | 2,171 | |||||||||||||||||||||||
Crude Oil | -3 | 5,243 | — | |||||||||||||||||||||||
Natural Gas | -3 | 2,233 | 1,576 | |||||||||||||||||||||||
Propane | -3 | 768 | — | |||||||||||||||||||||||
Total forward purchase commitments | 24,626 | 31,351 | ||||||||||||||||||||||||
Forward sales commitments | Gasoline and Gasoline Blendstocks | -3 | 12,675 | 173 | ||||||||||||||||||||||
Distillates | -3 | 1,529 | 2,950 | |||||||||||||||||||||||
Crude Oil | -3 | 55 | — | |||||||||||||||||||||||
Total forward sales commitments | 14,259 | 3,123 | ||||||||||||||||||||||||
Total obligations on forward fixed price contracts | 38,885 | 34,474 | ||||||||||||||||||||||||
Foreign currency forward contract | Foreign Denominated Sales | -4 | 58 | — | ||||||||||||||||||||||
Total liability derivatives | $ | 38,943 | $ | 34,474 | ||||||||||||||||||||||
(1) Fair value of forward fixed price contracts | ||||||||||||||||||||||||||
(2) Prepaid expenses and other current assets | ||||||||||||||||||||||||||
(3) Obligations on forward fixed price contracts | ||||||||||||||||||||||||||
(4) Accrued expenses and other current liabilities | ||||||||||||||||||||||||||
The following table presents the amount of gains and losses from derivatives not involved in a hedging relationship recognized in the Partnership’s consolidated statements of income for the three and nine months ended September 30, 2013 and 2012 (in thousands): | ||||||||||||||||||||||||||
Amount of Gain (Loss) | Amount of Gain (Loss) | |||||||||||||||||||||||||
Location of | Recognized in Income | Recognized in Income | ||||||||||||||||||||||||
Gain (Loss) | on Derivatives | on Derivatives | ||||||||||||||||||||||||
Recognized in | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
Derivatives Not Designated as | Income on | September 30, | September 30, | |||||||||||||||||||||||
Hedging Instruments | Derivatives | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Product contracts | Cost of sales | $ | 4,576 | $ | 11,062 | $ | 8,223 | $ | 15,666 | |||||||||||||||||
Foreign currency contracts | Cost of sales | (437 | ) | 160 | (203 | ) | 121 | |||||||||||||||||||
Total | $ | 4,139 | $ | 11,222 | $ | 8,020 | $ | 15,787 | ||||||||||||||||||
Credit Risk | ||||||||||||||||||||||||||
The Partnership’s derivative financial instruments do not contain credit risk related to other contingent features that could cause accelerated payments when these financial instruments are in net liability positions. | ||||||||||||||||||||||||||
The Partnership is exposed to credit loss in the event of nonperformance by counterparties of forward purchase and sale commitments, futures contracts and swap agreements, but the Partnership has no current reason to expect any material nonperformance by any of these counterparties. Futures contracts, the primary derivative instrument utilized by the Partnership, are traded on regulated exchanges, greatly reducing potential credit risks. The Partnership utilizes primarily three clearing brokers, all major financial institutions, for all New York Mercantile Exchange (“NYMEX”) and Chicago Mercantile Exchange (“CME”) derivative transactions and the right of offset exists. Accordingly, the fair value of derivative instruments is presented on a net basis in the consolidated balance sheets. Exposure on forward purchase and sale commitments and swap agreements is limited to the amount of the recorded fair value as of the balance sheet dates. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2013 | |
Debt | ' |
Debt | ' |
Note 7. Debt | |
Credit Agreement | |
The Partnership entered into an Amended and Restated Credit Agreement dated May 14, 2010, as amended (the “Credit Agreement”). Total available commitments under the Credit Agreement are $1.615 billion. The Credit Agreement will mature on May 14, 2015. | |
As of September 30, 2013, there were three facilities under the Credit Agreement: | |
· a working capital revolving credit facility to be used for working capital purposes and letters of credit in the principal amount equal to the lesser of the Partnership’s borrowing base and $1.0 billion; | |
· a $500.0 million revolving credit facility to be used for acquisitions and general corporate purposes; and | |
· a $115.0 million term loan that will mature on January 31, 2014. | |
In addition, the Credit Agreement has an accordion feature whereby the Partnership may request on the same terms and conditions of its then existing Credit Agreement, provided no Event of Default (as defined in the Credit Agreement) then exists, an increase to the working capital revolving credit facility, the revolving credit facility or both by up to another $250.0 million, in the aggregate, for a total credit facility of up to $1.865 billion. Any such request for an increase by the Partnership must be in a minimum amount of $5.0 million. The Partnership cannot provide assurance, however, that its lending group will agree to fund any request by the Partnership for additional amounts in excess of the total available commitments of $1.615 billion. | |
In addition, the Credit Agreement includes a swing line pursuant to which Bank of America, N.A., as the swing line lender, may make swing line loans in an aggregate amount equal to the lesser of (a) $35.0 million and (b) the Aggregate WC Commitments (as defined in the Credit Agreement). Swing line loans will bear interest at the Base Rate (as defined in the Credit Agreement). The swing line is a sub-portion of the working capital revolving credit facility and is not an addition to the total available commitments of $1.615 billion. | |
Pursuant to the Credit Agreement, and in connection with any agreement by and between a Loan Party and a Lender (as such terms are defined in the Credit Agreement) or affiliate thereof (an “AR Buyer”), a Loan Party may sell certain of its accounts receivables to an AR Buyer (the “Receivables Sales Agreement”). Also pursuant to the Credit Agreement, the Loan Parties are permitted to sell or transfer any account receivable to an AR Buyer only to the extent that (i) no Default or Event of Default (as such terms are defined in the Credit Agreement) has occurred and is continuing or would exist after giving effect to any such sale or transfer; (ii) such accounts receivable are sold for cash; (iii) the cash purchase price to be paid to the selling Loan Party for each account receivable is not less than the amount of credit such Loan Party would have been able to get for such account receivable had such account receivable been included in the Borrowing Base (as defined in the Credit Agreement) or, to the extent such account receivable is not otherwise eligible to be included in the Borrowing Base, then the cash purchase price to be paid is not less than 85% of the face amount of such account receivable; (iv) such account receivable is sold pursuant to a Receivables Sales Agreement; (v) the Loan Parties have complied with the notice requirement set forth in the Credit Agreement; (vi) neither the AR Buyer nor the Administrative Agent has delivered any notice of a termination event; (vii) the aggregate amount of the accounts receivable sold to one or more AR Buyers which has not yet been collected will not exceed $75.0 million at any time; and (viii) the cash proceeds received from the applicable Loan Party in connection with such sale will be used to immediately repay any outstanding WC Loans (as defined in the Credit Agreement). To date, the level of receivables sold has not been significant, and the Partnership has accounted for such transfers as sales pursuant to ASC 860, “Transfers and Servicing.” Due to the short-term nature of the receivables sold to date, no servicing obligation has been recorded because it would have been de minimus. | |
Availability under the Partnership’s working capital revolving credit facility is subject to a borrowing base which is redetermined from time to time and based on specific advance rates on eligible current assets. Under the Credit Agreement, the Partnership’s borrowings under the working capital revolving credit facility cannot exceed the then current borrowing base. Availability under the Partnership’s borrowing base may be affected by events beyond the Partnership’s control, such as changes in petroleum product prices, collection cycles, counterparty performance, advance rates and limits, and general economic conditions. These and other events could require the Partnership to seek waivers or amendments of covenants or alternative sources of financing or to reduce expenditures. The Partnership can provide no assurance that such waivers, amendments or alternative financing could be obtained or, if obtained, would be on terms acceptable to the Partnership. | |
Commencing November 16, 2012, borrowings under the working capital revolving credit facility bear interest at (1) the Eurodollar rate plus 2.00% to 2.50%, (2) the cost of funds rate plus 2.00% to 2.50%, or (3) the base rate plus 1.00% to 1.50%, each depending on the Utilization Amount (as defined in the Credit Agreement). From January 1, 2012 through November 15, 2012, borrowings under the working capital revolving credit facility bore interest at (1) the Eurodollar rate plus 2.50% to 3.00%, (2) the cost of funds rate plus 2.50% to 3.00%, or (3) the base rate plus 1.50% to 2.00%, each depending on the pricing level provided in the Credit Agreement, which in turn depended upon the Utilization Amount (as defined in the Credit Agreement). | |
Commencing November 16, 2012, borrowings under the revolving credit facility bear interest at (1) the Eurodollar rate plus 2.50% to 3.50%, (2) the cost of funds rate plus 2.50% to 3.50%, or (3) the base rate plus 1.50% to 2.50%, each depending on the Combined Total Leverage Ratio (as defined in the Credit Agreement). From January 1, 2012 through November 15, 2012, borrowings under the revolving credit facility bore interest at (1) the Eurodollar rate plus 3.00% to 3.875%, (2) the cost of funds rate plus 3.00% to 3.875%, or (3) the base rate plus 2.00% to 2.875%, each depending on the pricing level provided in the Credit Agreement, which in turn depended upon the Combined Total Leverage Ratio (as defined in the Credit Agreement). | |
Borrowings under the term loan bear interest at either the Eurodollar rate or the cost of funds rate, in each case plus 3.50%, or the base rate plus 2.50%. | |
The average interest rates for the Credit Agreement were 4.3% and 4.1% for the three months ended September 30, 2013 and 2012, respectively, and 4.3% and 4.1% for the nine months ended September 30, 2013 and 2012, respectively. | |
As of September 30, 2013, the Partnership had a zero premium interest rate collar, an interest rate swap and an interest rate cap, all of which were used to hedge the variability in interest payments under the Credit Agreement due to changes in LIBOR rates. Subsequent to September 30, 2013, the interest rate collar expired and was replaced with a forward starting interest swap agreement. See Note 6 for additional information on these cash flow hedges. | |
The Partnership incurs a letter of credit fee of 2.00% – 2.50% per annum for each letter of credit issued. In addition, the Partnership incurs a commitment fee on the unused portion of each facility under the Credit Agreement, ranging from 0.375% to 0.50% per annum. | |
The Partnership classifies a portion of its working capital revolving credit facility as a long-term liability because the Partnership has a multi-year, long-term commitment from its bank group. The long-term portion of the working capital revolving credit facility was $300.3 million and $340.8 million at September 30, 2013 and December 31, 2012, respectively, representing the amounts expected to be outstanding during the entire year. In addition, the Partnership classifies a portion of its working capital revolving credit facility as a current liability because it repays amounts outstanding and reborrows funds based on its working capital requirements. The current portion of the working capital revolving credit facility was approximately $0 and $83.7 million at September 30, 2013 and December 31, 2012, respectively, representing the amounts the Partnership expects to pay down during the course of the year. | |
As of September 30, 2013, the Partnership had total borrowings outstanding under the Credit Agreement of $815.0 million, including $399.7 million outstanding on the revolving credit facility and $115.0 million outstanding on the term loan which was used to acquire a 60% membership interest in Basin Transload and a portion of all of the outstanding membership interests in Cascade Kelly. In addition, the Partnership had outstanding letters of credit of $278.4 million. Subject to borrowing base limitations, the total remaining availability for borrowings and letters of credit was $521.6 million and $218.9 million at September 30, 2013 and December 31, 2012, respectively. | |
The Credit Agreement is secured by substantially all of the assets of the Partnership and the Partnership’s wholly owned subsidiaries and is guaranteed by the General Partner. The Credit Agreement imposes certain requirements including, for example, a prohibition against distributions if any potential default or Event of Default (as defined in the Credit Agreement) would occur as a result thereof, and limitations on the Partnership’s ability to grant liens, make certain loans or investments, incur additional indebtedness or guarantee other indebtedness, make any material change to the nature of the Partnership’s business or undergo a fundamental change, make any material dispositions, acquire another company, enter into a merger, consolidation, sale leaseback transaction or purchase of assets, or make capital expenditures in excess of specified levels. | |
The Credit Agreement imposes financial covenants that require the Partnership to maintain certain minimum working capital amounts, capital expenditure limits, a minimum combined interest coverage ratio, a maximum senior secured leverage ratio and a maximum total leverage ratio. On September 20, 2013, the Partnership entered into a Twelfth Amendment to the Credit Agreement which amended the Credit Agreement to modify a certain financial covenant. While the Partnership would not have been in compliance with certain of the foregoing covenants at September 30, 2013 following the restatement of its unaudited consolidated financial statements, the Credit Agreement has been terminated, is of no force and effect as of the date of this filing on Form 10-Q/A and has been restated in its entirety by a Second Amended and Restated Credit Agreement dated as of December 16 2013. The Credit Agreement also contains a representation whereby there can be no event or circumstance, either individually or in the aggregate, that has had or could reasonably be expected to have a Material Adverse Effect (as defined in the Credit Agreement). In addition, the Credit Agreement limits distributions by the Partnership to its unitholders to the amount of the Partnership’s Available Cash (as defined in its partnership agreement). | |
Senior Notes | |
On February 14, 2013, the Partnership entered into a Note Purchase Agreement (the “Purchase Agreement”) with FS Energy and Power Fund (“FS Energy”), with respect to the issue and sale by the Partnership to FS Energy of an aggregate principal amount of $70.0 million unsecured 8.00% Senior Notes due 2018 (the “Notes”). The Notes were issued in a private placement exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”) and have not been registered under the Securities Act or any state securities laws, and may not be offered or sold except pursuant to an exemption from the registration requirements of the Securities Act and applicable state laws. | |
Closing of the offering occurred on February 14, 2013. The Notes were sold to FS Energy at 97% of their face amount, resulting in net proceeds to the Partnership of approximately $67.9 million. Additionally, the Partnership separately paid fees and offering expenses. The discount of $2.1 million at issuance will be accreted as additional interest over the expected term on the Notes. On February 15, 2013, the Partnership used the net proceeds from the offering, after paying fees and offering expenses, together with a portion of the $115.0 million term loan to finance its acquisition of all of the outstanding membership interests in Cascade Kelly and to pay related transaction costs. | |
The Notes were issued pursuant to an indenture dated as of February 14, 2013 (the “Indenture”) among the Partnership, our subsidiary guarantors and FS Energy. The Notes will mature on February 14, 2018. Interest on the Notes accrued from February 14, 2013 and is paid semi-annually on February 14 and August 14 of each year, beginning on August 14, 2013. | |
The Partnership may redeem all or some of the Notes at any time or from time to time pursuant to the terms of the Indenture. The Notes are also subject to optional or mandatory exchange for HY Bonds (as such term is defined in the Indenture) at the time and on the terms specified in the Indenture. The holders of the Notes may require the Partnership to repurchase the Notes following certain asset sales or a Change of Control (as defined in the Indenture) at the prices and on the terms specified in the Indenture. | |
The Notes are guaranteed on a senior, unsecured basis by certain of the Partnership’s wholly owned subsidiaries. The Indenture contains covenants that are no more restrictive to the Partnership in the aggregate than the terms, conditions, covenants and defaults contained in its Credit Agreement and will limit the Partnership’s ability to, among other things, incur additional indebtedness, make distributions to equity owners, make certain investments, restrict distributions by its subsidiaries, create liens, enter into sale-leaseback transactions, sell assets or merge with other entities. | |
Deferred Financing Fees | |
The Partnership incurs bank fees related to its Credit Agreement. These deferred financing fees are amortized over the life of the Credit Agreement. The Partnership capitalized deferred financing fees of $0.2 million and $0 for the three months ended September 30, 2013 and 2012, respectively, and $5.3 million and $1.1 million for the nine months ended September 30, 2013 and 2012, respectively. Amortization expenses of approximately $1.7 million and $1.4 million for the three months ended September 30, 2013 and 2012, respectively, and $5.1 million and $4.1 million for the nine months ended September 30, 2013 and 2012, respectively, are included in interest expense in the accompanying consolidated statements of income. Unamortized fees are included in other current assets and other long-term assets. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Related Party Transactions | ' | |||||||
Related Party Transactions | ' | |||||||
Note 8. Related Party Transactions | ||||||||
The Partnership is a party to a Second Amended and Restated Terminal Storage Rental and Throughput Agreement, as amended, with Global Petroleum Corp. (“GPC”), an affiliate of the Partnership that is 100% owned by members of the Slifka family. The agreement, which extends through July 31, 2015, is accounted for as an operating lease. After July 31, 2015, the agreement continues for successive one year terms unless either party gives notice to terminate at least 90 days prior to the expiration of the then current term. The expenses under this agreement totaled approximately $2.3 million and $2.2 million for the three months ended September 30, 2013 and 2012, respectively, and $6.8 million and $6.7 million for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||
Pursuant to an Amended and Restated Services Agreement with GPC, GPC provides certain terminal operating management services to the Partnership and uses certain administrative, accounting and information processing services of the Partnership. The expenses from these services totaled approximately $24,000 for each of the three months ended September 30, 2013 and 2012, and $72,000 for each of the nine months ended September 30, 2013 and 2012. These charges were recorded in selling, general and administrative expenses in the accompanying consolidated statements of income. On March 9, 2012, in connection with the Partnership’s acquisition of Alliance (see Note 3), the agreement was amended to include the services provided by GPC to Alliance. The agreement is for an indefinite term, and either party may terminate its receipt of some or all of the services thereunder upon 180 days’ notice at any time. As of September 30, 2013, no such notice of termination was given by either party. | ||||||||
Prior to the acquisition of Alliance on March 1, 2012, the Partnership was a party to an Amended and Restated Services Agreement with Alliance. Pursuant to the agreement, the Partnership provided certain administrative, accounting and information processing services, and the use of certain facilities, to Alliance. The income from these services was approximately $31,000 for the nine months ended September 30, 2012. These fees were recorded as an offset to selling, general and administrative expenses in the accompanying consolidated statements of income. On March 9, 2012, in connection with the acquisition of Alliance, the agreement was terminated without penalty. There were no settlement gains or losses recognized as a result of the termination of this agreement. | ||||||||
In addition, on March 9, 2012, following the closing of the acquisition of Alliance, Global Companies and AE Holdings entered into a shared services agreement pursuant to which Global Companies provides AE Holdings with certain tax, accounting, treasury and legal support services for which AE Holdings pays Global Companies $15,000 per year. The shared services agreement is for an indefinite term and AE Holdings may terminate its receipt of some or all of the services upon 180 days’ notice. As of September 30, 2013, no such notice of termination was given by AE Holdings. | ||||||||
Prior to the acquisition of Alliance on March 1, 2012, the Partnership sold refined petroleum products and renewable fuels to Alliance at prevailing market prices at the time of delivery. Sales to Alliance were approximately $40.6 million for the nine months ended September 30, 2012. | ||||||||
In addition, Global Companies and GMG entered into management agreements with Alliance in connection with the Partnership’s September 2010 acquisition of retail gasoline stations from ExxonMobil. The management fee and overhead reimbursement were approximately $433,000 and $250,000, respectively, for the nine months ended September 30, 2012. On March 9, 2012, in connection with the acquisition of Alliance, the management agreements were terminated without penalty. | ||||||||
The General Partner employs all of the Partnership’s employees, except for its gasoline station and convenience store employees and certain union personnel, who are employed by GMG. The Partnership reimburses the General Partner for expenses incurred in connection with these employees. These expenses, including payroll, payroll taxes and bonus accruals, were $13.9 million and $10.5 million for the three months ended September 30, 2013 and 2012, respectively, and $45.0 million and $30.6 million for the nine months ended September 30, 2013 and 2012, respectively. The Partnership also reimburses the General Partner for its contributions under the General Partner’s 401(k) Savings and Profit Sharing Plan and the General Partner’s qualified and non-qualified pension plans. | ||||||||
The table below presents trade receivables with GPC and the Partnership and receivables from the General Partner (in thousands): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Receivables from GPC | $ | 436 | $ | 275 | ||||
Receivables from the General Partner (1) | 1,060 | 1,032 | ||||||
Total | $ | 1,496 | $ | 1,307 | ||||
(1) Receivables from the General Partner reflect the Partnership’s prepayment of payroll taxes and payroll | ||||||||
accruals to the General Partner. |
Cash_Distributions
Cash Distributions | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Cash Distributions | ' | ||||||||||||||||
Cash Distributions | ' | ||||||||||||||||
Note 9. Cash Distributions | |||||||||||||||||
The Partnership intends to consider regular cash distributions to unitholders on a quarterly basis, although there is no assurance as to the future cash distributions since they are dependent upon future earnings, capital requirements, financial condition and other factors. The Credit Agreement prohibits the Partnership from making cash distributions if any potential default or Event of Default, as defined in the Credit Agreement, occurs or would result from the cash distribution. | |||||||||||||||||
Within 45 days after the end of each quarter, the Partnership will distribute all of its Available Cash (as defined in its partnership agreement) to unitholders of record on the applicable record date. The amount of Available Cash is all cash on hand on the date of determination of Available Cash for the quarter; less the amount of cash reserves established by the General Partner to provide for the proper conduct of the Partnership’s business, to comply with applicable law, any of the Partnership’s debt instruments, or other agreements or to provide funds for distributions to unitholders and the General Partner for any one or more of the next four quarters. | |||||||||||||||||
The Partnership will make distributions of Available Cash from distributable cash flow for any quarter in the following manner: 99.17% to the common unitholders, pro rata, and 0.83% to the General Partner, until the Partnership distributes for each outstanding common unit an amount equal to the minimum quarterly distribution for that quarter; and thereafter, cash in excess of the minimum quarterly distribution is distributed to the unitholders and the General Partner based on the percentages as provided below. | |||||||||||||||||
As holder of the IDRs, the General Partner is entitled to incentive distributions if the amount that the Partnership distributes with respect to any quarter exceeds specified target levels shown below: | |||||||||||||||||
Total Quarterly Distribution | Marginal Percentage Interest in | ||||||||||||||||
Distributions | |||||||||||||||||
Target Amount | Unitholders | General Partner | |||||||||||||||
Minimum Quarterly Distribution | $0.46 | 99.17% | 0.83% | ||||||||||||||
First Target Distribution | $0.46 | 99.17% | 0.83% | ||||||||||||||
Second Target Distribution | above $0.4625 up to $0.5375 | 86.17% | 13.83% | ||||||||||||||
Third Target Distribution | above $0.5375 up to $0.6625 | 76.17% | 23.83% | ||||||||||||||
Thereafter | above $0.6625 | 51.17% | 48.83% | ||||||||||||||
The Partnership paid the following cash distribution during 2013 (in thousands, except per unit data): | |||||||||||||||||
Cash | Per Unit | Common | General | Incentive | Total Cash | ||||||||||||
Distribution | Cash | Units | Partner | Distribution | Distribution | ||||||||||||
Payment Date | Distribution | ||||||||||||||||
02/14/13 (1) | $ | 0.57 | $ | 15,636 | $ | 131 | $ | 579 | $ | 16,346 | |||||||
05/15/13 (2) | 0.5825 | 15,979 | 134 | 683 | 16,796 | ||||||||||||
08/14/13 (3) | 0.5875 | 16,116 | 135 | 724 | 16,975 | ||||||||||||
(1) This distribution of $0.57 per unit resulted in the Partnership exceeding its second target level distribution for the fourth quarter of 2012. As a result, the General Partner, as the holder of the IDRs, received an incentive distribution. | |||||||||||||||||
(2) This distribution of $0.5825 per unit resulted in the Partnership exceeding its second target level distribution for the first quarter of 2013. As a result, the General Partner, as the holder of the IDRs, received an incentive distribution. | |||||||||||||||||
(3) This distribution of $0.5875 per unit resulted in the Partnership exceeding its second target level distribution for the second quarter of 2013. As a result, the General Partner, as the holder of the IDRs, received an incentive distribution. | |||||||||||||||||
In addition, on October 23, 2013, the board of directors of the General Partner declared a quarterly cash distribution of $0.60 per unit ($2.40 per unit on an annualized basis) for the period from July 1, 2013 through September 30, 2013. On November 14, 2013, the Partnership will pay this cash distribution to its common unitholders of record as of the close of business November 5, 2013. This distribution will result in the Partnership exceeding its second target level distribution for the quarter ended September 30, 2013. |
Segment_Reporting
Segment Reporting | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Segment Reporting | ' | |||||||||||||
Segment Reporting | ' | |||||||||||||
Note 10. Segment Reporting | ||||||||||||||
The Partnership engages in the distribution of refined petroleum products, renewable fuels, crude oil, natural gas and propane. The Partnership also engages in the purchasing, selling and logistics of transporting domestic and Canadian crude oil and other products. The Partnership’s operating segments are based upon the revenue sources for which discrete financial information is reviewed by the chief operating decision maker (the “CODM”) and include Wholesale, Gasoline Distribution and Station Operations and Commercial. Each of these operating segments generates revenues and incurs expenses and is evaluated for operating performance on a regular basis. | ||||||||||||||
These operating segments are also the Partnership’s reporting segments based on the way the CODM manages the business and on the similarity of customers and expected long-term financial performance of each segment. For the three and nine months ended September 30, 2013 and 2012, the Commercial operating segment did not meet the quantitative metrics for disclosure as a reportable segment on a stand-alone basis as defined in accounting guidance related to segment reporting. However, the Partnership has elected to present segment disclosures for the Commercial operating segment as management believes such disclosures are meaningful to the user of the Partnership’s financial information. The accounting policies of the segments are the same as those described in Note 2, “Summary of Significant Accounting Policies,” in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2012. | ||||||||||||||
In the Wholesale reporting segment, the Partnership sells unbranded gasoline (including gasoline blendstocks such as ethanol and naphtha) and diesel to unbranded gasoline customers and other resellers of transportation fuels. The Partnership sells home heating oil, diesel, kerosene, residual oil and propane to home heating oil retailers and wholesale distributors. The Partnership also sells and transports crude oil to refiners. Generally, customers use their own vehicles or contract carriers to take delivery of the gasoline and distillate products at bulk terminals and inland storage facilities that the Partnership owns or controls or with which it has throughput or exchange arrangements. Crude oil is aggregated by truck or pipeline in the mid-continent, transported on land by train and shipped to refineries on the East Coast and West Coast in barges. Additionally, ethanol is shipped primarily by rail and by barge. The results of Basin Transload and Cascade Kelly, both acquired in February 2013 (see Note 3), are included in the Wholesale segment. | ||||||||||||||
In the Gasoline Distribution and Station Operations reporting segment, the Partnership sells branded and unbranded gasoline to gasoline stations and other sub-jobbers. This segment also includes gasoline, convenience store, car wash and other ancillary sales at the Partnership’s directly operated stores, as well as rental income from dealer leased or commission agent leased gasoline stations. | ||||||||||||||
The Commercial segment includes sales and deliveries to end user customers in the public sector and to large commercial and industrial end users of unbranded gasoline, home heating oil, diesel, kerosene, residual oil, renewable fuels and natural gas. In the case of commercial and industrial end user customers, the Partnership sells products primarily either through a competitive bidding process or through contracts of various terms. The Commercial segment also includes sales of custom blended fuels delivered by barges or from a terminal dock to ships through bunkering activity. | ||||||||||||||
Commercial segment end user customers include federal and state agencies, municipalities, large industrial companies, many autonomous authorities such as transportation authorities and water resource authorities, colleges and universities and a group of small utilities. In the Commercial segment, the Partnership generally arranges the delivery of the product to the customer’s designated location. The Partnership typically hires third-party common carriers to deliver the product. | ||||||||||||||
The Partnership evaluates segment performance based on net product margins before allocations of corporate and indirect operating costs, depreciation, amortization (including non-cash charges) and interest. Based on the way the CODM manages the business, it is not reasonably possible for the Partnership to allocate the components of operating costs and expenses among the reportable segments. There were no intersegment sales for any of the periods presented below. | ||||||||||||||
Summarized financial information for the Partnership’s reportable segments is presented in the table below (in thousands): | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Wholesale Segment: | ||||||||||||||
Sales | ||||||||||||||
Gasoline and gasoline blendstocks | $ | 1,981,536 | $ | 2,570,580 | $ | 6,142,691 | $ | 6,465,950 | ||||||
Other oils and related products (2) | 1,326,374 | 936,991 | 5,352,215 | 3,202,108 | ||||||||||
Total | $ | 3,307,910 | $ | 3,507,571 | $ | 11,494,906 | $ | 9,668,058 | ||||||
Net product margin | ||||||||||||||
Gasoline and gasoline blendstocks (1) | $ | 21,854 | $ | 8,925 | $ | 4,786 | $ | 34,382 | ||||||
Other oils and related products (2) | 42,213 | 25,994 | 115,766 | 68,449 | ||||||||||
Total (1) | $ | 64,067 | $ | 34,919 | $ | 120,552 | $ | 102,831 | ||||||
Gasoline Distribution and Station Operations Segment: | ||||||||||||||
Sales | ||||||||||||||
Gasoline | $ | 870,689 | $ | 907,579 | $ | 2,449,400 | $ | 2,181,164 | ||||||
Station operations (3) | 40,970 | 36,760 | 109,891 | 91,806 | ||||||||||
Total | $ | 911,659 | $ | 944,339 | $ | 2,559,291 | $ | 2,272,970 | ||||||
Net product margin | ||||||||||||||
Gasoline | $ | 43,443 | $ | 33,556 | $ | 110,533 | $ | 89,284 | ||||||
Station operations (3) | 21,287 | 18,673 | 59,062 | 48,367 | ||||||||||
Total | $ | 64,730 | $ | 52,229 | $ | 169,595 | $ | 137,651 | ||||||
Commercial Segment: | ||||||||||||||
Sales | $ | 213,857 | $ | 165,284 | $ | 740,175 | $ | 567,710 | ||||||
Net product margin | $ | 4,745 | $ | 4,779 | $ | 21,340 | $ | 14,158 | ||||||
Combined sales and net product margin: | ||||||||||||||
Sales | $ | 4,433,426 | $ | 4,617,194 | $ | 14,794,372 | $ | 12,508,738 | ||||||
Net product margin (1)(4) | $ | 133,542 | $ | 91,927 | $ | 311,487 | $ | 254,640 | ||||||
Depreciation allocated to cost of sales | (15,449 | ) | (9,307 | ) | (40,525 | ) | (26,026 | ) | ||||||
Combined gross profit (1) | $ | 118,093 | $ | 82,620 | $ | 270,962 | $ | 228,614 | ||||||
(1) Includes a $15.5 million decrease and a ($6.6 million) increase in the mark to market loss related to RIN forward commitments for the three and nine months ended September 30, 2013, respectively, and increases of $13.5 million and $22.6 million in the mark to market value of the RVO Deficiency for the three and nine months ended September 30, 2013, respectively (see Note 2). | ||||||||||||||
(2) Other oils and related products primarily consist of distillates, residual oil, crude oil and propane and include the February 2013 acquisitions of Basin Transload and Cascade Kelly (see Note 3). | ||||||||||||||
(3) Station operations primarily consist of convenience store sales at the Partnership’s directly operated stores and rental income from dealer leased or commission agent leased gasoline stations. | ||||||||||||||
(4) Net product margin is a non-GAAP financial measure used by management and external users of the Partnership’s consolidated financial statements to assess the Partnership’s business. The table above includes a reconciliation of net product margin on a combined basis to gross profit, a directly comparable GAAP measure. | ||||||||||||||
A reconciliation of the totals reported for the reportable segments to the applicable line items in the consolidated financial statements is as follows (in thousands): | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Combined gross profit (1) | $ | 118,093 | $ | 82,620 | $ | 270,962 | $ | 228,614 | ||||||
Operating costs and expenses not allocated to operating segments: | ||||||||||||||
Selling, general and administrative expenses | 27,889 | 22,709 | 79,232 | 66,502 | ||||||||||
Operating expenses | 46,713 | 40,196 | 137,420 | 100,692 | ||||||||||
Amortization expense | 4,773 | 1,511 | 13,321 | 5,373 | ||||||||||
Total operating costs and expenses | 79,375 | 64,416 | 229,973 | 172,567 | ||||||||||
Operating income (1) | 38,718 | 18,204 | 40,989 | 56,047 | ||||||||||
Interest expense | (10,855 | ) | (10,633 | ) | (32,113 | ) | (31,811 | ) | ||||||
Income tax expense | (2,727 | ) | (678 | ) | (852 | ) | (228 | ) | ||||||
Net income (1) | 25,136 | 6,893 | 8,024 | 24,008 | ||||||||||
Net loss attributable to noncontrolling interest | 679 | — | 549 | — | ||||||||||
Net income attributable to Global Partners LP (1) | $ | 25,815 | $ | 6,893 | $ | 8,573 | $ | 24,008 | ||||||
(1) Includes a $15.5 million decrease and a ($6.6 million) increase in the mark to market loss related to RIN forward commitments for the three and nine months ended September 30, 2013, respectively, and increases of $13.5 million and $22.6 million in the mark to market value of the RVO Deficiency for the three and nine months ended September 30, 2013, respectively (see Note 2). | ||||||||||||||
There were no foreign sales for the three and nine months ended September 30, 2013 and 2012. The Partnership has no significant foreign assets. | ||||||||||||||
Segment Assets | ||||||||||||||
In connection with its acquisitions of Cascade Kelly and a 60% membership interest in Basin Transload in February 2013, the Partnership acquired assets, including goodwill, of approximately $240.5 million, of which approximately $125.7 million of property and equipment has primarily been allocated to the Wholesale segment as of the respective acquisition dates. As of September 30, 2013, the total property and equipment related to these assets had a net book value of approximately $120.5 million. | ||||||||||||||
The Partnership acquired retail gasoline stations from Alliance in March 2012 and ExxonMobil in September 2010 which have been allocated to the Gasoline Distribution and Station Operations segment. As of September 30, 2013, total property and equipment allocated to this segment had a net book value of approximately $506.1 million. | ||||||||||||||
Due to the commingled nature and uses of the remainder of the Partnership’s assets, it is not reasonably possible for the Partnership to allocate these assets among its reportable segments. |
Property_and_Equipment
Property and Equipment | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Property and Equipment | ' | |||||||
Property and Equipment | ' | |||||||
Note 11. Property and Equipment | ||||||||
Property and equipment consisted of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Buildings and improvements | $ | 592,285 | $ | 498,984 | ||||
Land | 287,592 | 289,903 | ||||||
Fixtures and equipment | 18,222 | 14,554 | ||||||
Construction in process | 90,633 | 17,809 | ||||||
Capitalized internal use software | 5,847 | 5,847 | ||||||
Total property and equipment | 994,579 | 827,097 | ||||||
Less accumulated depreciation | (156,155 | ) | (114,775 | ) | ||||
Total | $ | 838,424 | $ | 712,322 | ||||
The increase of approximately $167.5 million in gross total property and equipment at September 30, 2013 was primarily due to the Partnership’s acquisitions of its membership interest in Basin Transload and Cascade Kelly (see Note 2) and to additions related to the Partnership’s gasoline stations and Albany, New York terminal. |
Environmental_Liabilities_Asse
Environmental Liabilities, Asset Retirement Obligations and Renewable Identification Numbers (RINs) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Environmental Liabilities, Asset Retirement Obligations and Renewable Identification Numbers (RINs) | ' | ||||||||||||||||
Environmental Liabilities, Asset Retirement Obligations and Renewable Identification Numbers (RINs) | ' | ||||||||||||||||
Note 12. Environmental Liabilities, Asset Retirement Obligations and Renewable Identification Numbers (RINs) | |||||||||||||||||
Environmental Liabilities | |||||||||||||||||
The Partnership owns or leases properties where refined petroleum products, renewable fuels and crude oil are being or may have been handled. These properties and the refined petroleum products, renewable fuels and crude oil handled thereon may be subject to federal and state environmental laws and regulations. Under such laws and regulations, the Partnership could be required to remove or remediate containerized hazardous liquids or associated generated wastes (including wastes disposed of or abandoned by prior owners or operators), to clean up contaminated property arising from the release of liquids or wastes into the environment, including contaminated groundwater, or to implement best management practices to prevent future contamination. | |||||||||||||||||
The Partnership maintains insurance of various types with varying levels of coverage that it considers adequate under the circumstances to cover its operations and properties. The insurance policies are subject to deductibles that the Partnership considers reasonable and not excessive. In addition, the Partnership has entered into indemnification agreements with various sellers in conjunction with several of its acquisitions. Allocation of environmental liability is an issue negotiated in connection with each of the Partnership’s acquisition transactions. In each case, the Partnership makes an assessment of potential environmental liability exposure based on available information. Based on that assessment and relevant economic and risk factors, the Partnership determines whether to, and the extent to which it will, assume liability for existing environmental conditions. | |||||||||||||||||
In connection with the December 2012 acquisition of six New England gasoline stations from Mutual Oil Company, the Partnership assumed certain environmental liabilities, including certain ongoing remediation efforts. As a result, the Partnership recorded, on an undiscounted basis, a total environmental liability of approximately $0.6 million. | |||||||||||||||||
In connection with the March 2012 acquisition of Alliance, the Partnership assumed Alliance’s environmental liabilities, including ongoing environmental remediation at certain of the retail stations owned by Alliance and future remediation activities required by applicable federal, state or local law or regulation. Remedial action plans are in place, as may be applicable with the state agencies regulating such ongoing remediation. Based on reports from environmental engineers, the Partnership’s estimated cost of the ongoing environmental remediation for which Alliance was responsible and future remediation activities required by applicable federal, state or local law or regulation is estimated to be approximately $16.1 million to be expended over an extended period of time. Certain environmental remediation obligations at the retail stations acquired by Alliance from ExxonMobil in 2011 are being funded by a third party who assumed the liability in connection with the Alliance/ExxonMobil transaction in 2011 and, therefore, cost estimates for such obligations at these stations are not included in this estimate. As a result, the Partnership recorded, on an undiscounted basis, total environmental liabilities of approximately $16.1 million. | |||||||||||||||||
In connection with the September 2010 acquisition of retail gasoline stations from ExxonMobil, the Partnership assumed certain environmental liabilities, including ongoing environmental remediation at and monitoring activities at certain of the acquired sites and future remediation activities required by applicable federal, state or local law or regulation. Remedial action plans are in place with the applicable state regulatory agencies for the majority of these locations, including plans for soil and groundwater treatment systems at certain sites. Based on consultations with environmental engineers, the Partnership’s estimated cost of the remediation is expected to be approximately $30.0 million to be expended over an extended period of time. As a result, the Partnership recorded, on an undiscounted basis, total environmental liabilities of approximately $30.0 million. | |||||||||||||||||
In connection with the June 2010 acquisition of three refined petroleum products terminals in Newburgh, New York, the Partnership assumed certain environmental liabilities, including certain ongoing remediation efforts. As a result, the Partnership recorded, on an undiscounted basis, a total environmental liability of approximately $1.5 million. | |||||||||||||||||
In connection with the November 2007 acquisition of ExxonMobil’s Glenwood Landing and Inwood, New York terminals, the Partnership assumed certain environmental liabilities, including the remediation obligations under remedial action plans submitted by ExxonMobil to and approved by the New York Department of Environmental Conservation (“NYDEC”) with respect to both terminals. As a result, the Partnership recorded, on an undiscounted basis, total environmental liabilities of approximately $1.2 million. | |||||||||||||||||
In connection with the May 2007 acquisition of ExxonMobil’s Albany and Newburgh, New York and Burlington, Vermont terminals, the Partnership assumed certain environmental liabilities, including the remediation obligations under a proposed remedial action plan submitted by ExxonMobil to NYDEC with respect to the Albany, New York terminal. As a result, the Partnership recorded, on an undiscounted basis, total environmental liabilities of approximately $8.0 million. In June 2008, the Partnership submitted a remedial action work plan to NYDEC, implementing NYDEC’s conditional approval of the remedial action plan submitted by ExxonMobil. The Partnership responded to NYDEC’s requests for additional information and conducted pilot tests for the remediation outlined in the work plan. Based on the results of such pilot tests, the Partnership changed its estimate and reduced the environmental liability by $2.8 million during the fourth quarter ended December 31, 2008. In July 2009, NYDEC approved the remedial action work plan, and the Partnership signed a Stipulation Agreement with NYDEC to govern implementation of the approved plan. The remedial action work has been implemented pursuant to the approved work plan, and the post-remediation stage of operation, monitoring and maintenance has commenced and is ongoing. As a result, the Partnership changed its estimate and reduced the environmental liability by $1.7 million during the second quarter ended June 30, 2011. | |||||||||||||||||
The following table presents a summary roll forward of the Partnership’s environmental liabilities at September 30, 2013 (in thousands): | |||||||||||||||||
Balance at | Balance at | ||||||||||||||||
December 31, | Payments in | Dispositions | Other | September 30, | |||||||||||||
Environmental Liability Related to: | 2012 | 2013 | 2013 | Adjustments | 2013 | ||||||||||||
ExxonMobil Gasoline Stations | $ | 26,610 | $ | (1,018 | ) | $ | (366 | ) | $ | (3 | ) | $ | 25,223 | ||||
Alliance Gasoline Stations | 14,984 | (613 | ) | (600 | ) | 420 | 14,191 | ||||||||||
Mutual Oil | 625 | — | — | — | 625 | ||||||||||||
Newburgh | 1,500 | — | — | — | 1,500 | ||||||||||||
Glenwood Landing and Inwood | 347 | (25 | ) | — | — | 322 | |||||||||||
Albany | 106 | (45 | ) | — | — | 61 | |||||||||||
Total environmental liabilities | $ | 44,172 | $ | (1,701 | ) | $ | (966 | ) | $ | 417 | $ | 41,922 | |||||
Current portion | $ | 4,341 | $ | 4,271 | |||||||||||||
Long-term portion | 39,831 | 37,651 | |||||||||||||||
Total environmental liabilities | $ | 44,172 | $ | 41,922 | |||||||||||||
The Partnership’s estimates used in these environmental liabilities are based on all known facts at the time and its assessment of the ultimate remedial action outcomes. Among the many uncertainties that impact the Partnership’s estimates are the necessary regulatory approvals for, and potential modification of, its remediation plans, the amount of data available upon initial assessment of the impact of soil or water contamination, changes in costs associated with environmental remediation services and equipment, relief of obligation through divestures of sites and the possibility of existing legal claims giving rise to additional claims. Dispositions generally represent relief of legal obligation through the sale of the related property. Other adjustments generally represent changes in estimates for existing obligations or obligations associated with new sites. Therefore, although the Partnership believes that these environmental liabilities are adequate, no assurances can be made that any costs incurred in excess of these environmental liabilities or outside of indemnifications or not otherwise covered by insurance would not have a material adverse effect on the Partnership’s financial condition, results of operations or cash flows. | |||||||||||||||||
Asset Retirement Obligations | |||||||||||||||||
The Partnership is required to account for the legal obligations associated with the long-lived assets that result from the acquisition, construction, development or operation of long-lived assets. Such asset retirement obligations specifically pertain to the treatment of underground gasoline storage tanks (“USTs”) that exist in those U.S. states which statutorily require removal of the USTs at a certain point in time. Specifically, the Partnership’s retirement obligations consist of the estimated costs of removal and disposals of USTs in specific states. The fair value of a liability for an asset retirement obligation is recognized in the year in which it is incurred. The associated asset retirement costs are capitalized as part of the carrying cost of the asset. The Partnership has recorded approximately $1.9 million in total asset retirement obligations which are included in other long-term liabilities in the accompanying balance sheet at September 30, 2013. | |||||||||||||||||
Renewable Identification Numbers (RINs) | |||||||||||||||||
A RIN is a serial number assigned to a batch of biofuel for the purpose of tracking its production, use, and trading as required by the EPA Renewable Fuel Standard that originated with the Energy Policy Act of 2005. To evidence that the required volume of renewable fuel is blended with gasoline, obligated parties must retire sufficient RINs to cover their RVO. The Partnership’s EPA obligations relative to renewable fuel reporting are largely limited to the foreign gasoline that the Partnership may choose to import. As a wholesaler of transportation fuels through its terminals, the Partnership separates RINs from renewable fuel through blending with gasoline and can use those separated RINs to settle its RVO. While the annual compliance period for a RVO is a calendar year, the settlement of the RVO can occur, upon certain deferral elections, more than one year after the close of the compliance period. | |||||||||||||||||
The Partnership’s Wholesale segment’s operating results are sensitive to the timing associated with its RIN position relative to its RVO at a point in time, and the Partnership may recognize a mark-to-market liability for a shortfall in RINs at the end of each reporting period. To the extent the Partnership does not have a sufficient number of RINs to satisfy the obligation as of the balance sheet date, the Partnership charges cost of sales for such deficiency based on the market price of the RINs as of the balance sheet date, and records a liability representing the Partnership’s obligation to purchase RINs. At September 30, 2013, the Partnership’s RVO Deficiency was($22.6 million). The Partnership’s RVO Deficiency was immaterial at December 31, 2012. | |||||||||||||||||
The Partnership may enter into RIN forward commitments. At September 30, 2013, a significant number of the forward sales contracts were fixed at a price below the RIN spot rate. Accordingly, the Partnership has provided for the mark to market value of these firm non-cancellable forward commitments which amounted to approximately ($6.6 million) at September 30, 2013. The mark to market loss related to RIN forward commitments was immaterial at December 31, 2012. |
LongTerm_Incentive_Plan
Long-Term Incentive Plan | 9 Months Ended |
Sep. 30, 2013 | |
Long-Term Incentive Plan | ' |
Long-Term Incentive Plan | ' |
Note 13. Long-Term Incentive Plan | |
The General Partner has a Long-Term Incentive Plan (“LTIP”) whereby 564,242 common units were initially authorized for issuance. On June 22, 2012, the Partnership’s common unitholders approved an amendment and restatement of the LTIP (the “Restated LTIP”). The Restated LTIP: (i) increases the number of common units available for delivery with respect to awards under the LTIP so that, effective June 22, 2012 a total of 4,300,000 common units are available for delivery with respect to awards under the Restated LTIP, (ii) adds a prohibition on repricing of unit options and unit appreciation rights without approval of the Partnership’s unitholders, except in the case of adjustments implemented to reflect certain Partnership transactions, (iii) adds a prohibition on granting unit options or unit appreciation rights with an exercise price less than the fair market value of a common unit on the grant date (other than “substitute awards” granted in substitution for similar awards held by individuals who become employees, consultants and directors of the Partnership or one of its affiliates as a result of a merger, consolidation or acquisition by the Partnership or its affiliate of another entity or the assets of another entity), (iv) permits the granting of fully-vested common units and (v) incorporates certain other non-material ministerial changes. Any units delivered pursuant to an award under the Restated LTIP may be acquired in the open market, issued by the Partnership, or any combination of the foregoing. The Restated LTIP provides for awards to employees, consultants and directors of the General Partner and employees and consultants of affiliates of the Partnership who perform services for the Partnership. The Restated LTIP allows for the award of options, unit appreciation rights, restricted units, phantom units, unit awards and substitute awards. | |
Phantom Unit Awards | |
On June 27, 2013, the Compensation Committee of the board of directors of the General Partner granted a total of 510,836 phantom units under the Restated LTIP to certain employees and non-employee directors of the General Partner. In connection with the awards, grantees who are employees entered into various forms of a Confidentiality, Non-Solicitation, and Non-Competition Agreement with the General Partner. The Partnership currently intends and reasonably expects to issue and deliver the common units upon vesting. | |
The awards granted to employees, with one exception, will vest on a cumulative basis as follows, subject to continued employment: 33 1/3% on July 1, 2017, 66 2/3% on July 1, 2018 and 100% on July 1, 2019. The phantom unit award to one employee will vest on a cumulative basis as follows, subject to continued employment: 33 1/3% on December 31, 2014, 66 2/3% on December 31, 2015 and 100% on December 31, 2016. The awards granted to the non-employee directors will vest on a cumulative basis as follows: 33 1/3% on December 31, 2014, 66 2/3% on December 31, 2015 and 100% on December 31, 2016. | |
Accounting guidance for share-based compensation requires that a non-vested equity share unit awarded to an employee is to be measured at its fair value as if it were vested and issued on the grant date. The fair value of the award at the June 27, 2013 grant date approximated the fair value of the Partnership’s common unit at that date. | |
Compensation cost for an award of share-based employee compensation classified as equity, as is the case of the Partnership’s award, is recognized over the requisite service period. The requisite service period for the Partnership is from June 27, 2013, the grant date, through the vesting dates described above. The Partnership will recognize as compensation expense for the awards granted to employees and non-employee directors the value of the portion of the award that is ultimately expected to vest over the requisite service period on a straight-line basis. In accordance with the guidance issued for share-based compensation, the Partnership estimated forfeitures at the time of grant. Such estimates, which were based on the Partnership’s service history, will be revised, if necessary, in subsequent periods if actual forfeitures differ from estimates. The Partnership recorded compensation expense related to these awards of approximately $0.9 million for the three and nine months ended September 30, 2013, respectively, which is included in selling, general and administrative expenses in the accompanying consolidated statements of income. The total compensation cost related to the non-vested awards not yet recognized at September 30, 2013 was approximately $18.7 million and is expected to be recognized ratably over the remaining requisite service period. | |
Repurchase Program | |
In May 2009, the board of directors of the General Partner authorized the repurchase of the Partnership’s common units (the “Repurchase Program”) for the purpose of meeting the General Partner’s anticipated obligations to deliver common units under the LTIP and meeting the General Partner’s obligations under existing employment agreements and other employment related obligations of the General Partner (collectively, the “General Partner’s Obligations”). The Partnership is authorized to acquire up to 942,427 of its common units in the aggregate over an extended period of time, consistent with the General Partner’s Obligations. Common units of the Partnership may be repurchased from time to time in open market transactions, including block purchases, or in privately negotiated transactions. Such authorized unit repurchases may be modified, suspended or terminated at any time, and are subject to price, economic and market conditions, applicable legal requirements and available liquidity. Since the Repurchase Program was implemented, the General Partner repurchased 487,915 common units pursuant to the Repurchase Program for approximately $12.0 million, of which approximately $4.3 million was purchased in 2013. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||||||||
Note 14. Fair Value Measurements | ||||||||||||||||||||||||||
Certain of the Partnership’s assets and liabilities are measured at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. | ||||||||||||||||||||||||||
The FASB established a fair value hierarchy, which prioritizes the inputs used in measuring fair value into the following three levels: | ||||||||||||||||||||||||||
Level 1 | — | Observable inputs such as quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||||||||||
Level 2 | — | Inputs other than the quoted prices in active markets that are observable for assets or liabilities, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in inactive markets. | ||||||||||||||||||||||||
Level 3 | — | Unobservable inputs based on the entity’s own assumptions. | ||||||||||||||||||||||||
The following table presents those financial assets and financial liabilities measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012 (in thousands): | ||||||||||||||||||||||||||
Fair Value as of September 30, 2013 | Fair Value as of December 31, 2012 | |||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Hedged inventories | $ | 342,379 | $ | — | $ | 342,379 | $ | — | $ | 526,107 | $ | — | $ | 526,107 | $ | — | ||||||||||
Fair value of forward fixed price contracts | 37,001 | — | 30,170 | 6,831 | 48,062 | — | 48,062 | — | ||||||||||||||||||
Swap agreements and options | 139 | 134 | 5 | — | 179 | 54 | 125 | — | ||||||||||||||||||
Foreign currency derivatives | — | — | — | — | 145 | — | 145 | — | ||||||||||||||||||
Interest rate cap | 49 | — | 49 | — | 35 | — | 35 | — | ||||||||||||||||||
Broker margin deposits | 40,694 | 40,694 | — | — | 54,726 | 54,726 | — | — | ||||||||||||||||||
Pension plan | 17,885 | 17,885 | — | — | 17,158 | 17,158 | — | — | ||||||||||||||||||
Total | $ | 438,147 | $ | 58,713 | $ | 372,603 | $ | 6,831 | $ | 646,412 | $ | 71,938 | $ | 574,474 | $ | — | ||||||||||
Liabilities: | ||||||||||||||||||||||||||
Obligations on forward fixed price contracts | $ | (38,885 | ) | $ | — | $ | (33,587 | ) | $ | (5,298 | ) | $ | (34,474 | ) | $ | — | $ | (34,474 | ) | $ | — | |||||
RIN forward commitments | (6,608 | ) | — | (6,608 | ) | — | — | — | — | — | ||||||||||||||||
Swap agreements and option contracts | (134 | ) | (134 | ) | — | — | (54 | ) | (54 | ) | — | — | ||||||||||||||
Foreign currency derivatives | (58 | ) | — | (58 | ) | — | — | — | — | — | ||||||||||||||||
Interest rate collar and swap | (10,840 | ) | — | (10,840 | ) | — | (13,402 | ) | — | (13,402 | ) | — | ||||||||||||||
Total liabilities | $ | (56,525 | ) | $ | (134 | ) | $ | (51,093 | ) | $ | (5,298 | ) | $ | (47,930 | ) | $ | (54 | ) | $ | (47,876 | ) | $ | — | |||
This table excludes cash on hand and assets and liabilities that are measured at historical cost or any basis other than fair value. The carrying amounts of certain of the Partnership’s financial instruments, including cash equivalents, accounts receivable, accounts payable and other accrued liabilities approximate fair value due to their short maturities. The carrying value of the Partnership’s credit facilities approximate fair value due to the variable rate nature of these financial instruments. The fair values of the derivatives used by the Partnership are disclosed in Note 6. | ||||||||||||||||||||||||||
The majority of the Partnership’s derivatives outstanding are reported at fair value based market quotes that are deemed to be observable inputs in an active market for similar assets and liabilities and are considered Level 2 inputs for purposes of fair value disclosures. Specifically, the fair values of the Partnership’s financial assets and financial liabilities provided above were derived from NYMEX and New York Harbor quotes for the Partnership’s hedged inventories, forward fixed price contracts, swap agreements and option contracts and from the LIBOR rates for the Partnership’s interest rate collar, interest rate swap and interest rate cap. The fair value of the foreign currency derivatives and the mark to market loss related to RIN forward commitments are based on broker price quotations. Except as discussed below, the Partnership has not changed its valuation techniques or Level 2 inputs during the three and nine months ended September 30, 2013. | ||||||||||||||||||||||||||
The fair value for the Partnership’s forward fixed price contracts related to crude oil are derived from a combination of quoted NYMEX market commodity prices as well as significant unobservable inputs (Level 3), including internally developed assumptions where there is little, if any, market activity. The unobservable inputs used in the measurement of the Partnership’s forward fixed price contracts include estimates for location basis, transportation and throughput costs net of an estimated margin for current market participants. Gains and losses recognized in earnings (or changes in net assets) are disclosed in Note 6. | ||||||||||||||||||||||||||
The following table presents a summary of the changes in fair value of the Partnership’s Level 3 financial assets and liabilities at September 30, 2013 (in thousands): | ||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Fair value at December 31, 2012 | $ | — | ||||||||||||||||||||||||
Reclass of Level 2 inputs | 15,127 | |||||||||||||||||||||||||
Change in fair value recorded in Cost of Sales | (13,594 | ) | ||||||||||||||||||||||||
Fair value at September 30, 2013 | $ | 1,533 | ||||||||||||||||||||||||
The fair values of the Partnership’s pension plan assets at September 30, 2013 and December 31, 2012 were determined by Level 1 inputs which principally consist of quoted prices in active markets for identical assets. The plan assets primarily consisted of fixed income securities, equity securities and cash and cash equivalents. | ||||||||||||||||||||||||||
For assets and liabilities measured on a non-recurring basis during the period, accounting guidance requires quantitative disclosures about the fair value measurements separately for each major category. See Note 3 for acquired assets and liabilities measured on a non-recurring basis during the fiscal quarters ended September 30, 2013. | ||||||||||||||||||||||||||
Financial Instruments | ||||||||||||||||||||||||||
The fair value of the Partnership’s financial instruments approximated the carrying value as of September 30, 2013 and December 31, 2012, in each case due to the short-term nature and the variable interest rate of the financial instruments. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Taxes | ' |
Income Taxes | ' |
Note 15. Income Taxes | |
Section 7704 of the Internal Revenue Code provides that publicly-traded partnerships are, as a general rule, taxed as corporations. However, an exception, referred to as the “Qualifying Income Exception,” exists under Section 7704(c) with respect to publicly-traded partnerships of which 90% or more of the gross income for every taxable year consists of “qualifying income.” Qualifying income includes income and gains derived from the transportation, storage and marketing of refined petroleum products and crude oil to resellers and refiners. Other types of qualifying income include interest (other than from a financial business), dividends, gains from the sale of real property and gains from the sale or other disposition of capital assets held for the production of income that otherwise constitutes qualifying income. | |
Substantially all of the Partnership’s income is “qualifying income” for federal income tax purposes and, therefore, is not subject to federal income taxes at the partnership level. Accordingly, no provision has been made for income taxes on the qualifying income in the Partnership’s financial statements. Net income for financial statement purposes may differ significantly from taxable income reportable to unitholders as a result of differences between the tax basis and financial reporting basis of assets and liabilities and the taxable income allocation requirements under the Partnership’s agreement of limited partnership. Individual unitholders have different investment basis depending upon the timing and price at which they acquired their common units. Further, each unitholder’s tax accounting, which is partially dependent upon the unitholder’s tax position, differs from the accounting followed in the Partnership’s consolidated financial statements. Accordingly, the aggregate difference in the basis of the Partnership’s net assets for financial and tax reporting purposes cannot be readily determined because information regarding each unitholder’s tax attributes in the Partnership is not available to the Partnership. | |
One of the Partnership’s wholly owned subsidiaries, GMG, is a taxable entity for federal and state income tax purposes. Current and deferred income taxes are recognized on the separate earnings of GMG. The after-tax earnings of GMG are included in the earnings of the Partnership. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Partnership calculates its current and deferred tax provision based on estimates and assumptions that could differ from actual results reflected in income tax returns filed in subsequent years. Adjustments based on filed returns are recorded when identified. | |
The Partnership recognizes deferred tax assets to the extent that the recoverability of these assets satisfy the “more likely than not” recognition criteria in accordance with the FASB’s guidance regarding income taxes. Based upon projections of future taxable income, the Partnership believes that the recorded deferred tax assets will be realized. |
Legal_Proceedings
Legal Proceedings | 9 Months Ended |
Sep. 30, 2013 | |
Legal Proceedings | ' |
Legal Proceedings | ' |
Note 16. Legal Proceedings | |
General | |
Although the Partnership may, from time to time, be involved in litigation and claims arising out of its operations in the normal course of business, the Partnership does not believe that it is a party to any litigation that will have a material adverse impact on its financial condition or results of operations. Except as described below and in Note 12 included herein, the Partnership is not aware of any significant legal or governmental proceedings against it, or contemplated to be brought against it. The Partnership maintains insurance policies with insurers in amounts and with coverage and deductibles as its general partner believes are reasonable and prudent. However, the Partnership can provide no assurance that this insurance will be adequate to protect it from all material expenses related to potential future claims or that these levels of insurance will be available in the future at economically acceptable prices. | |
Other | |
The Partnership received from the EPA, by letters dated November 2, 2011 and March 29, 2012, reporting requirements and testing orders (collectively, the “Requests for Information”) for information under the Clean Air Act. The Requests for Information are part of an EPA investigation to determine whether the Partnership has violated sections of the Clean Air Act at certain of its terminal locations in New England with respect to residual oil and asphalt. The Partnership has submitted all required information requested under the Requests for Information. The Partnership does not believe that a material violation has occurred nor does the Partnership believe any adverse determination in connection with such investigation would have a material impact on its operations. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Accumulated Other Comprehensive Loss | ' | ||||||||||
Accumulated Other Comprehensive Loss | ' | ||||||||||
Note 17. Accumulated Other Comprehensive Loss | |||||||||||
The following table presents the changes in accumulated other comprehensive loss for the three and nine months ended September 30, 2013 (in thousands): | |||||||||||
Three Months Ended September 30, 2013 | Pension | Derivatives | Total | ||||||||
Plan | |||||||||||
Balance at June 30, 2013 | $ | (2,859 | ) | $ | (11,264 | ) | $ | (14,123 | ) | ||
Other comprehensive income (loss) before reclassifications of gain (loss) | 1,191 | (945 | ) | 246 | |||||||
Amount of gain (loss) reclassified from accumulated other comprehensive income | — | — | — | ||||||||
Total comprehensive income | 1,191 | (945 | ) | 246 | |||||||
Balance at September 30, 2013 | $ | (1,668 | ) | $ | (12,209 | ) | $ | (13,877 | ) | ||
Nine Months Ended September 30, 2013 | Pension | Derivatives | Total | ||||||||
Plan | |||||||||||
Balance at December 31, 2012 | $ | (4,884 | ) | $ | (14,786 | ) | $ | (19,670 | ) | ||
Other comprehensive income before reclassifications of gain (loss) | 3,216 | 2,577 | 5,793 | ||||||||
Amount of gain (loss) reclassified from accumulated other comprehensive income | — | — | — | ||||||||
Total comprehensive income | 3,216 | 2,577 | 5,793 | ||||||||
Balance at September 30, 2013 | $ | (1,668 | ) | $ | (12,209 | ) | $ | (13,877 | ) |
NonCash_Investing_Activities
Non-Cash Investing Activities | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Non-Cash Investing Activities | ' | ||||
Non-Cash Investing Activities | ' | ||||
Note 18. Non-Cash Investing Activities | |||||
The following table presents non-cash investing activities for the nine months ended September 30, 2012 (in thousands): | |||||
Effect of acquisition of Alliance Energy LLC: | |||||
Fair value of tangible assets acquired | $ | (333,212 | ) | ||
Fair value of liabilities assumed | 83,209 | ||||
Fair value of acquired intangible assets | (33,285 | ) | |||
Fair value of common units issued | 130,513 | ||||
Consideration paid in excess of fair value (goodwill) | (29,123 | ) | |||
Net cash paid in connection with the acquisition of Alliance | $ | (181,898 | ) |
New_Accounting_Standards
New Accounting Standards | 9 Months Ended |
Sep. 30, 2013 | |
New Accounting Standards | ' |
New Accounting Standards | ' |
Note 19. New Accounting Standards | |
Accounting Standards or Updates Recently Adopted | |
In February 2013, the FASB issued Accounting Standards Update (“ASU”) No. 2013-02, “Other Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” Under this standard, an entity is required to provide information about the amounts reclassified out of Accumulated Other Comprehensive Income (“AOCI”) by component. In addition, an entity is required to present, either on the face of the financial statements or in the notes, significant amounts reclassified out of AOCI by the respective line items of net income, but only if the amount reclassified is required to be reclassified in its entirety in the same reporting period. For amounts that are not required to be classified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional details about those amounts. This standard does not change the current requirements for reporting net income or other comprehensive income in the financial statements. The Partnership adopted this guidance on January 1, 2013 which did not have a material impact on the Partnership’s financial position, results of operations or cash flows. | |
In January 2013, the FASB issued ASU No. 2013-01, “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” This standard provides additional guidance on the scope of disclosures about offsetting assets and liabilities. The additional guidance provides that only recognized derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and lending transactions would be subject to disclosure requirements. The Partnership adopted this guidance on January 1, 2013 which did not have a material impact on the Partnership’s financial position, results of operations or cash flows. | |
Accounting Standards or Updates Not Yet Effective | |
The Partnership has evaluated the accounting guidance recently issued and has determined that these standards or updates will not have a material impact on its financial position, results of operations or cash flows. |
Subsequent_Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Event | ' |
Subsequent Event | ' |
Note 20. Subsequent Event | |
On October 23, 2013, the board of directors of the General Partner declared a quarterly cash distribution of $0.60 per unit ($2.40 per unit on an annualized basis) for the period from July 1, 2013 through September 30, 2013. On November 14, 2013, the Partnership will pay this cash distribution to its common unitholders of record as of the close of business November 5, 2013. |
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Policies) | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Organization and Basis of Presentation | ' | |||||||||
Basis of Presentation | ' | |||||||||
Basis of Presentation | ||||||||||
The financial results of Basin Transload for the eight months ended September 30, 2013 and of Cascade Kelly for the seven and one-half months ended September 30, 2013 are included in the accompanying statements of income for the nine months ended September 30, 2013. The Partnership consolidated the September 30, 2013 balance sheet of Basin Transload because the Partnership controls the entity. The accompanying consolidated financial statements as of September 30, 2013 and December 31, 2012 and for the three and nine months ended September 30, 2013 and 2012 reflect the accounts of the Partnership. All intercompany balances and transactions have been eliminated. | ||||||||||
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and reflect all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial condition and operating results for the interim periods. The interim financial information, which has been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), should be read in conjunction with the consolidated financial statements for the year ended December 31, 2012 and notes thereto contained in the Partnership’s Annual Report on Form 10-K. The significant accounting policies described in Note 2, “Summary of Significant Accounting Policies,” of such Annual Report on Form 10-K are the same used in preparing the accompanying consolidated financial statements. | ||||||||||
The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the results of operations that will be realized for the entire year ending December 31, 2013. The consolidated balance sheet at December 31, 2012 has been derived from the audited consolidated financial statements included in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2012. | ||||||||||
Due to the nature of the Partnership’s business and its customers’ reliance, in part, on consumer travel and spending patterns, the Partnership may experience more demand for gasoline and gasoline blendstocks during the late spring and summer months than during the fall and winter. Travel and recreational activities are typically higher in these months in the geographic areas in which the Partnership operates, increasing the demand for gasoline and gasoline blendstocks that the Partnership distributes. Therefore, the Partnership’s volumes in gasoline and gasoline blendstocks are typically higher in the second and third quarters of the calendar year. As demand for some of the Partnership’s refined petroleum products, specifically home heating oil and residual oil for space heating purposes, is generally greater during the winter months, heating oil and residual oil sales are generally higher during the first and fourth quarters of the calendar year. These factors may result in significant fluctuations in the Partnership’s quarterly operating results. | ||||||||||
Noncontrolling Interest | ' | |||||||||
Noncontrolling Interest | ||||||||||
These financial statements reflect the application of ASC 810, “Consolidations” (“ASC 810”) which establishes accounting and reporting standards that require: (i) the ownership interest in subsidiaries held by parties other than the parent to be clearly identified and presented in the consolidated balance sheet within shareholder’s equity, but separate from the parent’s equity; (ii) the amount of consolidated net income attributable to the parent and the noncontrolling interest to be clearly identified and presented on the face of the consolidated statement of operations and (iii) changes in a parent’s ownership interest while the parent retains its controlling financial interest in its subsidiary to be accounted for consistently. | ||||||||||
The Partnership acquired a 60% interest in Basin Transload on February 1, 2013. After evaluating ASC 810, the Partnership concluded it is appropriate to consolidate the balance sheet and statement of operations of Basin Transload based on an evaluation of the outstanding voting interests. Amounts pertaining to the noncontrolling ownership interest held by third parties in the financial position and operating results of the Partnership are reported as a noncontrolling interest in the accompanying consolidated balance sheet and statement of income. | ||||||||||
Reclassification | ' | |||||||||
Reclassification | ||||||||||
Amortization expense of deferred financing fees has been reclassified from selling, general and administrative expenses to interest expense. | ||||||||||
Concentration of Risk | ' | |||||||||
Concentration of Risk | ||||||||||
The following table presents the Partnership’s product sales as a percentage of total sales for the periods presented: | ||||||||||
Three Months Ended | Nine Months Ended | |||||||||
September 30, | September 30, | |||||||||
2013 | 2012 | 2013 | 2012 | |||||||
Gasoline sales: gasoline and gasoline blendstocks such as ethanol and naphtha | 65% | 76% | 59% | 70% | ||||||
Distillates (home heating oil, diesel and kerosene), residual oil, crude oil, natural gas and propane sales | 35% | 24% | 41% | 30% | ||||||
Total | 100% | 100% | 100% | 100% | ||||||
The Partnership had two significant customers, ExxonMobil Corporation (“ExxonMobil”) and Phillips 66 (“Phillips 66”), which accounted for approximately 18% and 11%, respectively, of total sales for the three months ended September 30, 2013, and approximately 15% and 14% respectively, of total sales for the nine months ended September 30, 2013. The Partnership had one significant customer, ExxonMobil, which accounted for approximately 16% and 16% of total sales for the three and nine months ended September 30, 2012, respectively. |
Organization_and_Basis_of_Pres2
Organization and Basis of Presentation (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Organization and Basis of Presentation | ' | |||||||||
Schedule of product sales as a percentage of total sales | ' | |||||||||
Three Months Ended | Nine Months Ended | |||||||||
September 30, | September 30, | |||||||||
2013 | 2012 | 2013 | 2012 | |||||||
Gasoline sales: gasoline and gasoline blendstocks such as ethanol and naphtha | 65% | 76% | 59% | 70% | ||||||
Distillates (home heating oil, diesel and kerosene), residual oil, crude oil, natural gas and propane sales | 35% | 24% | 41% | 30% | ||||||
Total | 100% | 100% | 100% | 100% |
Restatement_Tables
Restatement (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Restatement | ' | |||||||||||||||
Summary of adjustments to the Partnership's previously issued unaudited consolidated balance sheet | ' | |||||||||||||||
The following is a summary of the adjustments to the Partnership’s previously issued unaudited consolidated balance sheet as of September 30, 2013 (in thousands): | ||||||||||||||||
Previously | Adjustments | Restated | ||||||||||||||
Reported | ||||||||||||||||
Assets | ||||||||||||||||
Accounts receivable, net | $ | 781,800 | $ | (155,971 | ) (d)(e) | $ | 625,829 | |||||||||
Inventories | $ | 402,221 | $ | (4,809 | ) (a) | $ | 397,412 | |||||||||
Total current assets | $ | 1,319,871 | $ | (160,780 | ) (a)(d)(e) | $ | 1,159,091 | |||||||||
Intangible assets, net | $ | 129,755 | $ | (56,092 | ) (c) | $ | 73,663 | |||||||||
Goodwill | $ | 58,890 | $ | 59,500 | (c) | $ | 118,390 | |||||||||
Total assets | $ | 2,364,641 | $ | (157,372 | ) (a)(c)(d)(e) | $ | 2,207,269 | |||||||||
Liabilities and partners’ equity | ||||||||||||||||
Accounts payable | $ | 769,693 | $ | (154,600 | ) (d) | $ | 615,093 | |||||||||
Accrued expenses and other current liabilities | $ | 46,403 | $ | 14,218 | (b)(f)(g) | $ | 60,621 | |||||||||
Total current liabilities | $ | 1,050,143 | $ | (140,382 | ) (b)(d)(f)(g) | $ | 909,761 | |||||||||
Total liabilities | $ | 1,900,411 | $ | (140,382 | ) (b)(d)(f)(g) | $ | 1,760,029 | |||||||||
Partners’ equity | ||||||||||||||||
Common unitholders | $ | 427,929 | $ | (18,201 | ) | $ | 409,728 | |||||||||
General partner interest | $ | (335 | ) | $ | (152 | ) (j) | $ | (487 | ) | |||||||
Total Global Partners LP equity | $ | 413,717 | $ | (18,353 | ) | $ | 395,364 | |||||||||
Noncontrolling interest | $ | 50,513 | $ | 1,363 | (i) | $ | 51,876 | |||||||||
Total partners’ equity | $ | 464,230 | $ | (16,990 | ) | $ | 447,240 | |||||||||
Total liabilities and partners’ equity | $ | 2,364,641 | $ | (157,372 | ) | $ | 2,207,269 | |||||||||
Summary of adjustments to the Partnership's previously issued unaudited consolidated statement of income | ' | |||||||||||||||
The following is a summary of the adjustments to the Partnership’s previously issued unaudited consolidated statement of income for the three and nine months ended September 30, 2013, the most significant of which relates to an aggregate of RIN adjustments totaling $15.0 million (income) and $29.9 million (expense) for the three and nine months ended September 30, 2013 (see footnotes (a)(f)(g)) (in thousands, except per unit data): | ||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||
Previously | Adjustments | Restated | ||||||||||||||
Reported | ||||||||||||||||
Cost of sales | $ | 4,337,146 | $ | (21,813 | ) (a)(b)(f)(g)(h) | $ | 4,315,333 | |||||||||
Gross profit | $ | 96,280 | $ | 21,813 | (a)(b)(f)(g)(h) | $ | 118,093 | |||||||||
Selling, general and administrative expenses | $ | 29,086 | $ | (1,197 | ) (e) | $ | 27,889 | |||||||||
Amortization | $ | 6,676 | $ | (1,903 | ) (c) | $ | 4,773 | |||||||||
Total operating expenses | $ | 82,475 | $ | (3,100 | ) (c)(e) | $ | 79,375 | |||||||||
Operating income | $ | 13,805 | $ | 24,913 | (a)(b)(c)(e)(f)(g)(h) | $ | 38,718 | |||||||||
Interest expense | $ | (9,111 | ) | $ | (1,744 | ) (e) | $ | (10,855 | ) | |||||||
Income before income taxes | $ | 4,694 | $ | 23,169 | (a)(b)(c)(e)(f)(g)(h) | $ | 27,863 | |||||||||
Net income | $ | 1,967 | $ | 23,169 | (a)(b)(c)(e)(f)(g)(h) | $ | 25,136 | |||||||||
Net loss attributable to noncontrolling interest | $ | 1,440 | $ | (761 | ) (i) | $ | 679 | |||||||||
Net income attributable to Global Partners LP | $ | 3,407 | $ | 22,408 | $ | 25,815 | ||||||||||
General partner’s interest in net income, including incentive distribution rights | $ | (856 | ) | $ | (186 | ) (j) | $ | (1,042 | ) | |||||||
Limited partners’ interest in net income | $ | 2,551 | $ | 22,222 | $ | 24,773 | ||||||||||
Basic net income per limited partner unit | $ | 0.09 | $ | 0.82 | $ | 0.91 | ||||||||||
Diluted net income per limited partner unit | $ | 0.09 | $ | 0.82 | $ | 0.91 | ||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||
Previously | Adjustments | Restated | ||||||||||||||
Reported | ||||||||||||||||
Cost of sales | $ | 14,504,383 | $ | 19,027 | (a)(b)(f)(g)(h) | $ | 14,523,410 | |||||||||
Gross profit | $ | 289,989 | $ | (19,027 | ) (a)(b)(f)(g)(h) | $ | 270,962 | |||||||||
Selling, general and administrative expenses | $ | 82,923 | $ | (3,691 | ) (e) | $ | 79,232 | |||||||||
Amortization | $ | 16,729 | $ | (3,408 | ) (c) | $ | 13,321 | |||||||||
Total operating expenses | $ | 237,072 | $ | (7,099 | ) (c)(e) | $ | 229,973 | |||||||||
Operating income | $ | 52,917 | $ | (11,928 | ) (a)(b)(c)(e)(f)(g)(h) | $ | 40,989 | |||||||||
Interest expense | $ | (27,051 | ) | $ | (5,062 | ) (e) | $ | (32,113 | ) | |||||||
Income before income taxes | $ | 25,866 | $ | (16,990 | ) (a)(b)(c)(e)(f)(g)(h) | $ | 8,876 | |||||||||
Net income | $ | 25,014 | $ | (16,990 | ) (a)(b)(c)(e)(f)(g)(h) | $ | 8,024 | |||||||||
Net loss attributable to noncontrolling interest | $ | 1,912 | $ | (1,363 | ) (i) | $ | 549 | |||||||||
Net income attributable to Global Partners LP | $ | 26,926 | $ | (18,353 | ) | $ | 8,573 | |||||||||
General partner’s interest in net income, including incentive distribution rights | $ | (2,458 | ) | $ | 152 | (j) | $ | (2,306 | ) | |||||||
Limited partners’ interest in net income | $ | 24,468 | $ | (18,201 | ) | $ | 6,267 | |||||||||
Basic net income per limited partner unit | $ | 0.89 | $ | (0.66 | ) | $ | 0.23 | |||||||||
Diluted net income per limited partner unit | $ | 0.89 | $ | (0.66 | ) | $ | 0.23 | |||||||||
Summary of adjustments to the Partnership's previously issued unaudited consolidated statement of comprehensive income | ' | |||||||||||||||
The following is a summary of the adjustments to the Partnership’s previously issued unaudited consolidated statement of comprehensive income for the three and nine months ended September 30, 2013, the most significant of which relates to an aggregate of RIN adjustments totaling $15.0 million (income) and $29.9 million (expense) for the three and nine months ended September 30, 2013 (see footnote (a)(f)(g)) (in thousands): | ||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||
Previously | Adjustments | Restated | ||||||||||||||
Reported | ||||||||||||||||
Net income | $ | 1,967 | $ | 23,169 | $ | 25,136 | ||||||||||
Comprehensive income | $ | 2,213 | $ | 23,169 | $ | 25,382 | ||||||||||
Comprehensive loss attributable to noncontrolling interest | $ | 1,440 | $ | -761 | $ | 679 | ||||||||||
Comprehensive income (loss) attributable to Global Partners LP | $ | 3,653 | $ | 22,408 | $ | 26,061 | ||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||
Previously | Adjustments | Restated | ||||||||||||||
Reported | ||||||||||||||||
Net income | $ | 25,014 | $ (16,990) | $ | 8,024 | |||||||||||
Comprehensive income | $ | 30,807 | $ (16,990) | $ | 13,817 | |||||||||||
Comprehensive loss attributable to noncontrolling interest | $ | 1,912 | $ (1,363) | $ | 549 | |||||||||||
Comprehensive income attributable to Global Partners LP | $ | 32,719 | $ (18,353) | $ | 14,366 | |||||||||||
Summary of adjustments to the Partnership's previously issued unaudited consolidated statement of cash flows | ' | |||||||||||||||
The following is a summary of the adjustments to the Partnership’s previously issued unaudited consolidated statement of cash flows for the nine months ended September 30, 2013, the most significant of which relates to an aggregate of RIN adjustments totaling $29.9 million (expense) for the nine months ended September 30, 2013 (see footnote (a)(f)(g)) (in thousands): | ||||||||||||||||
Previously | Adjustments | Restated | ||||||||||||||
Reported | ||||||||||||||||
Net income | $ | 25,014 | $ | -16,990 | $ | 8,024 | ||||||||||
Depreciation and amortization | $ | 58,942 | $ | -3,408 | $ | 55,534 | ||||||||||
Bad debt expense | $ | 1,659 | $ | 1,371 | $ | 3,030 | ||||||||||
Accounts receivable | $ | (84,398 | ) | $ | 154,600 | $ | 70,202 | |||||||||
Inventories | $ | 232,577 | $ | 4,809 | $ | 237,386 | ||||||||||
Accounts payable | $ | 7,241 | $ | -154,600 | $ | (147,359 | ) | |||||||||
Accrued expenses, all other current liabilities and other long-term liabilities | $ | (24,060 | ) | $ | 14,218 | $ | (9,842 | ) | ||||||||
Net cash provided by operating activities | 254,112 | — | 254,112 | |||||||||||||
(a) To reduce previously reported inventory for the nine months ended September 30, 2013 by approximately $4.8 million (expense). The impact of adjusting previously reported RIN inventory in prior quarters resulted in a $9.0 million increase in net income for the three months ended September 30, 2013. | ||||||||||||||||
(b) To reduce accrued liabilities related to the procurement of petroleum products by approximately $5.4 million (income) and $10.8 million (income) for the three and nine months ended September 30, 2013 for accruals determined to no longer be warranted at the end of the reporting period. | ||||||||||||||||
(c) To correct the valuation of customer relationships and related amortization expense on such assets acquired in connection with the February 1, 2013 acquisition of a 60% membership interest in Basin Transload LLC. Specifically, the reduction in the value of customer relationships reflects the reversal of a customer relationship that was determined to not meet the criteria of a capitalizable intangible asset and, separately, a reduction in the cash flow period for another customer relationship that should have been considered at the date of acquisition. The difference in the amortization expense for the three and nine months ended September 30, 2013 of $1.9 million and $3.4 million, respectively, reflects the reduction in the value of customer relationships acquired of $52.0 million and the reduction in the economic useful life of the remaining assets from five to two years. | ||||||||||||||||
(d) To reduce accounts receivable by $154.6 million and accounts payable by $154.6 million which reflect the netting of positive and negative product exchange balances with the same counterparty which has a right of offset. | ||||||||||||||||
(e) Other adjustments to operating expenses include an increase to the allowance for doubtful accounts of $547,000 and $1.4 million for the three and nine months ended September 30,2013, respectively and an income statement reclassification of amortization of deferred financing fees from selling, general and administrative expenses to interest expense of $1.7 million and $5.1 million for the three and nine months ended September 30, 2013, respectively. | ||||||||||||||||
(f) To record the change in the RVO Deficiency of approximately $13.5 million (expense) and $22.6 million (expense) at the end of the reporting period for the three and nine months ended September 30, 2013, respectively. | ||||||||||||||||
(g) To record the change in the liability related to the losses on RIN forward commitments of $19.5 million (income) and $2.6 million (expense) for the three and nine months ended September 30, 2013. | ||||||||||||||||
(h) Other adjustments to costs of sales include a $1.3 million (income) and $0.0 million fair value of oil related forward fixed price contracts for the three and nine months ended September 30, 2013. | ||||||||||||||||
(i) Represents impact of all adjustments to the net loss attributable to the non-controlling interest of $761,000 (expense) and $1.4 million (expense), respectively. | ||||||||||||||||
(j) Represents impact of all adjustments to the General Partner’s interest in net income of $186,000 (income) and $152,000 (expense), respectively. |
Business_Combinations_Tables
Business Combinations (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Acquisitions | ' | ||||||||||
Summary roll forward of Partnership's goodwill | ' | ||||||||||
The following table presents a summary roll forward of the Partnership’s goodwill at September 30, 2013 (in thousands): | |||||||||||
Goodwill at | Goodwill at | ||||||||||
December 31, | 2013 | September 30, | |||||||||
2012 | Additions | 2013 | |||||||||
Acquisition of Alliance (1) | $ | 31,151 | $ | — | $ | 31,151 | |||||
Acquisition of gasoline stations from Mutual Oil Company (1) | 1,175 | — | 1,175 | ||||||||
Acquisition of 60% interest in Basin Transload (2) | — | 86,064 | 86,064 | ||||||||
Total | $ | 32,326 | $ | 86,064 | $ | 118,390 | |||||
(1) Goodwill allocated to the Gasoline Distribution and Station Operations reporting unit | |||||||||||
(2) Goodwill allocated to the Wholesale reporting unit | |||||||||||
Alliance | ' | ||||||||||
Acquisitions | ' | ||||||||||
Schedule of supplemental pro-forma information | ' | ||||||||||
The following unaudited pro-forma information presents the consolidated results of operations of the Partnership as if the acquisitions of Basin Transload, Cascade Kelly and Alliance occurred at the beginning of the period presented, with pro-forma adjustments to give effect to intercompany sales and certain other adjustments (in thousands, except per unit data): | |||||||||||
Nine Months Ended | |||||||||||
September 30, 2012 | |||||||||||
Sales | $ | 12,758,170 | |||||||||
Net loss | $ | (4,194 | ) | ||||||||
Net loss per limited partner unit, basic and diluted | $ | (0.17 | ) | ||||||||
Basin Transload | ' | ||||||||||
Acquisitions | ' | ||||||||||
Schedule of preliminary allocation of the purchase price to the estimated fair value of the assets acquired and liabilities assumed at the date of acquisition | ' | ||||||||||
The following table presents the preliminary allocation of the purchase price to the estimated fair value of the assets acquired and liabilities assumed at the date of acquisition (in thousands): | |||||||||||
Assets purchased: | |||||||||||
Accounts receivable | $ | 2,003 | |||||||||
Prepaid expenses | 68 | ||||||||||
Property and equipment | 29,112 | ||||||||||
Intangibles | 26,162 | ||||||||||
Total identifiable assets purchased | 57,345 | ||||||||||
Liabilities assumed: | |||||||||||
Accounts payable | (1,326 | ) | |||||||||
Total liabilities assumed | (1,326 | ) | |||||||||
Net identifiable assets acquired | 56,019 | ||||||||||
Noncontrolling interest | (51,000 | ) | |||||||||
Goodwill | 86,064 | ||||||||||
Net assets acquired | $ | 91,083 | |||||||||
Schedule of estimated remaining amortization expense for intangible assets acquired in connection with the acquisition | ' | ||||||||||
The following table presents the estimated remaining amortization expense for intangible assets acquired in connection with the acquisition (in thousands): | |||||||||||
2013 (10/1/13 – 12/31/13) | $ | 2,978 | |||||||||
2014 | 12,111 | ||||||||||
2015 | 2,969 | ||||||||||
Total | $ | 18,058 | |||||||||
Cascade Kelly | ' | ||||||||||
Acquisitions | ' | ||||||||||
Schedule of preliminary allocation of the purchase price to the estimated fair value of the assets acquired and liabilities assumed at the date of acquisition | ' | ||||||||||
The following table presents the preliminary allocation of the purchase price to the estimated fair value of the assets acquired and liabilities assumed at the date of acquisition (in thousands): | |||||||||||
Assets purchased: | |||||||||||
Accounts receivable | $ | 296 | |||||||||
Inventory | 131 | ||||||||||
Prepaid expenses | 96 | ||||||||||
Property and equipment | 96,591 | ||||||||||
Total identifiable assets purchased | 97,114 | ||||||||||
Liabilities assumed: | |||||||||||
Accounts payable | (1,428 | ) | |||||||||
Other current liabilities | (1,507 | ) | |||||||||
Total liabilities assumed | (2,935 | ) | |||||||||
Net identifiable assets acquired | $ | 94,179 |
Net_Income_Per_Limited_Partner1
Net Income Per Limited Partner Unit (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Net Income Per Limited Partner Unit | ' | |||||||||||||||||||||||||||
Schedule of reconciliation of net income and the assumed allocation of net income to the limited partners' interest for purposes of computing net income per limited partner unit | ' | |||||||||||||||||||||||||||
The following table provides a reconciliation of net income and the assumed allocation of net income to the limited partners’ interest for purposes of computing net income per limited partner unit for the three and nine months ended September 30, 2013 and 2012 (in thousands, except per unit data): | ||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | Three Months Ended September 30, 2012 | |||||||||||||||||||||||||||
Numerator: | Total | Limited | General | IDRs | Total | Limited | General | IDRs | ||||||||||||||||||||
Partner | Partner | Partner | Partner | |||||||||||||||||||||||||
Interest | Interest | Interest | Interest | |||||||||||||||||||||||||
Net income attributable to Global Partners LP | $ | 25,815 | $ | 24,773 | $ | 1,042 | $ | — | $ | 6,893 | $ | 6,577 | $ | 316 | $ | — | ||||||||||||
Declared distribution | $ | 17,425 | $ | 16,459 | $ | 138 | $ | 828 | $ | 15,019 | $ | 14,607 | $ | 122 | $ | 290 | ||||||||||||
Assumed allocation of undistributed net income | 8,390 | 8,314 | 76 | — | (8,126 | ) | (8,030 | ) | (96 | ) | — | |||||||||||||||||
Assumed allocation of net income | $ | 25,815 | $ | 24,773 | $ | 214 | $ | 828 | $ | 6,893 | $ | 6,577 | $ | 26 | $ | 290 | ||||||||||||
Denominator: | ||||||||||||||||||||||||||||
Basic weighted average limited partner units outstanding | 27,333 | 27,311 | ||||||||||||||||||||||||||
Dilutive effect of phantom units | — | 174 | ||||||||||||||||||||||||||
Diluted weighted average limited partner units outstanding | 27,333 | 27,485 | ||||||||||||||||||||||||||
Basic net income per limited partner unit | $ | 0.91 | $ | 0.24 | ||||||||||||||||||||||||
Diluted net income per limited partner unit (1) | $ | 0.91 | $ | 0.24 | ||||||||||||||||||||||||
(1) Basic units were used to calculate diluted net income per limited partner unit for the three months ended September 30, 2013 as using the effects of the phantom units would have an anti-dilutive effect on income per limited partner unit. | ||||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||
Numerator: | Total | Limited | General | IDRs | Total | Limited | General | IDRs | ||||||||||||||||||||
Partner | Partner | Partner | Partner | |||||||||||||||||||||||||
Interest | Interest | Interest | Interest | |||||||||||||||||||||||||
Net income attributable to Global Partners LP (1) | $ | 8,573 | $ | 6,267 | $ | 2,306 | $ | — | $ | 24,008 | $ | 23,275 | $ | 733 | $ | — | ||||||||||||
Declared distribution | $ | 51,196 | $ | 48,554 | $ | 407 | $ | 2,235 | $ | 43,786 | $ | 42,724 | $ | 358 | $ | 704 | ||||||||||||
Adjustment to distribution in connection with the Alliance acquisition (2) | — | — | — | — | (1,929 | ) | (1,929 | ) | — | — | ||||||||||||||||||
Adjusted declared distribution | 51,196 | 48,554 | 407 | 2,235 | 41,857 | 40,795 | 358 | 704 | ||||||||||||||||||||
Assumed allocation of undistributed net income | (42,623 | ) | (42,287 | ) | (336 | ) | — | (17,849 | ) | (17,520 | ) | (329 | ) | — | ||||||||||||||
Assumed allocation of net income | $ | 8,573 | $ | 6,267 | $ | 71 | $ | 2,235 | $ | 24,008 | $ | 23,275 | $ | 29 | $ | 704 | ||||||||||||
Denominator: | ||||||||||||||||||||||||||||
Basic weighted average limited partner units outstanding | 27,350 | 26,085 | ||||||||||||||||||||||||||
Dilutive effect of phantom units | 243 | 173 | ||||||||||||||||||||||||||
Diluted weighted average limited partner units outstanding | 27,593 | 26,258 | ||||||||||||||||||||||||||
Basic net income per limited partner unit | $ | 0.23 | $ | 0.89 | ||||||||||||||||||||||||
Diluted net income per limited partner unit | $ | 0.23 | $ | 0.89 | ||||||||||||||||||||||||
(1) Calculation includes the effect of the March 1, 2012 issuance of 5,850,000 common units in connection with the acquisition of Alliance. As a result, the general partner interest was 0.83% for the nine months ended September 30, 2013 and, based on a weighted average, 0.87% for the nine months ended September 30, 2012. | ||||||||||||||||||||||||||||
(2) In connection with the acquisition of Alliance on March 1, 2012 and the issuance of 5,850,000 common units, the Contribution Agreement provided that any declared distribution for the first quarter of 2012 reflect the seller’s actual period of ownership during that quarter. The payment by the seller of $1.9 million reflects the timing of the transaction (March 1), the seller’s 31 days of actual unit ownership in the 91 days of the quarter and the net receipt by seller ($1.0 million) of a pro-rated portion of the quarterly cash distribution of $0.50 per unit paid on the issued 5,850,000 common units. |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventories | ' | |||||||
Schedule of inventories | ' | |||||||
Inventories consisted of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Distillates: home heating oil, diesel and kerosene | $ | 165,561 | $ | 235,029 | ||||
Gasoline | 82,061 | 144,269 | ||||||
Gasoline blendstocks | 36,875 | 119,932 | ||||||
Renewable identification numbers (RINs) | 5,854 | 19,384 | ||||||
Crude oil | 60,837 | 80,273 | ||||||
Residual oil | 36,649 | 29,150 | ||||||
Propane and other | 2,411 | — | ||||||
Convenience store inventory | 7,164 | 6,630 | ||||||
Total | $ | 397,412 | $ | 634,667 |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||||||||
Schedule of the volume of activity related to the derivative financial instruments | ' | |||||||||||||||||||||||||
The following table presents the volume of activity related to the Partnership’s derivative financial instruments at September 30, 2013: | ||||||||||||||||||||||||||
Units (1) | Unit of Measure | |||||||||||||||||||||||||
Futures Contracts | ||||||||||||||||||||||||||
Long | 19,639 | Thousands of barrels | ||||||||||||||||||||||||
Short | (23,968 | ) | Thousands of barrels | |||||||||||||||||||||||
Natural Gas Contracts | ||||||||||||||||||||||||||
Long | 7,481 | Thousands of decatherms | ||||||||||||||||||||||||
Short | (7,481 | ) | Thousands of decatherms | |||||||||||||||||||||||
Interest Rate Collar | $ | 100 | Millions of U.S. dollars | |||||||||||||||||||||||
Interest Rate Swap | $ | 100 | Millions of U.S. dollars | |||||||||||||||||||||||
Interest Rate Cap | $ | 100 | Millions of U.S. dollars | |||||||||||||||||||||||
Foreign Currency Derivatives | ||||||||||||||||||||||||||
Open Forward Exchange Contracts (2) | $ | 23.8 | Millions of Canadian dollars | |||||||||||||||||||||||
$ | 23.1 | Millions of U.S. dollars | ||||||||||||||||||||||||
(1) Number of open positions and gross notional amounts do not quantify risk or represent assets or liabilities of the Partnership, but are used in the calculation of daily cash settlements under the contracts. | ||||||||||||||||||||||||||
(2) All-in forward rate Canadian dollars (“CAD”) $1.0311 to USD $1.00. | ||||||||||||||||||||||||||
Summary of derivatives not designated as either fair value hedges or cash flow hedges and their respective fair values and location | ' | |||||||||||||||||||||||||
The following table summarizes the derivatives not designated by the Partnership as either fair value hedges or cash flow hedges and their respective fair values and location in the Partnership’s consolidated balance sheets at September 30, 2013 and December 31, 2012 (in thousands): | ||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||
Balance Sheet | 2013 | 2012 | ||||||||||||||||||||||||
Summary of Other Derivatives | Item Pertains to | Location | Fair Value | Fair Value | ||||||||||||||||||||||
Asset Derivatives | ||||||||||||||||||||||||||
Forward purchase commitments | Gasoline and Gasoline Blendstocks | -1 | $ | 10,328 | $ | 131 | ||||||||||||||||||||
Crude Oil | -1 | 957 | 15,127 | |||||||||||||||||||||||
Residual Oil | -1 | — | 285 | |||||||||||||||||||||||
Total forward purchase commitments | 11,285 | 15,543 | ||||||||||||||||||||||||
Forward sales commitments | Gasoline and Gasoline Blendstocks | -1 | 13,649 | 30,928 | ||||||||||||||||||||||
Distillates | -1 | 3,938 | — | |||||||||||||||||||||||
Crude Oil | -1 | 5,874 | — | |||||||||||||||||||||||
Natural Gas | -1 | 2,255 | 1,591 | |||||||||||||||||||||||
Total forward sales commitments | 25,716 | 32,519 | ||||||||||||||||||||||||
Total forward fixed price contracts | 37,001 | 48,062 | ||||||||||||||||||||||||
Foreign currency forward contract | Foreign Denominated Sales | -2 | — | 145 | ||||||||||||||||||||||
Total asset derivatives | $ | 37,001 | $ | 48,207 | ||||||||||||||||||||||
Liability Derivatives | ||||||||||||||||||||||||||
Forward purchase commitments | Gasoline and Gasoline Blendstocks | -3 | $ | 12,226 | $ | 27,604 | ||||||||||||||||||||
Residual Oil | -3 | 268 | — | |||||||||||||||||||||||
Distillates | -3 | 3,888 | 2,171 | |||||||||||||||||||||||
Crude Oil | -3 | 5,243 | — | |||||||||||||||||||||||
Natural Gas | -3 | 2,233 | 1,576 | |||||||||||||||||||||||
Propane | -3 | 768 | — | |||||||||||||||||||||||
Total forward purchase commitments | 24,626 | 31,351 | ||||||||||||||||||||||||
Forward sales commitments | Gasoline and Gasoline Blendstocks | -3 | 12,675 | 173 | ||||||||||||||||||||||
Distillates | -3 | 1,529 | 2,950 | |||||||||||||||||||||||
Crude Oil | -3 | 55 | — | |||||||||||||||||||||||
Total forward sales commitments | 14,259 | 3,123 | ||||||||||||||||||||||||
Total obligations on forward fixed price contracts | 38,885 | 34,474 | ||||||||||||||||||||||||
Foreign currency forward contract | Foreign Denominated Sales | -4 | 58 | — | ||||||||||||||||||||||
Total liability derivatives | $ | 38,943 | $ | 34,474 | ||||||||||||||||||||||
(1) Fair value of forward fixed price contracts | ||||||||||||||||||||||||||
(2) Prepaid expenses and other current assets | ||||||||||||||||||||||||||
(3) Obligations on forward fixed price contracts | ||||||||||||||||||||||||||
(4) Accrued expenses and other current liabilities | ||||||||||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||||||||
Schedule of the amount of gains and losses from derivatives not involved in a hedging relationship recognized in the consolidated statements of income | ' | |||||||||||||||||||||||||
The following table presents the amount of gains and losses from derivatives not involved in a hedging relationship recognized in the Partnership’s consolidated statements of income for the three and nine months ended September 30, 2013 and 2012 (in thousands): | ||||||||||||||||||||||||||
Amount of Gain (Loss) | Amount of Gain (Loss) | |||||||||||||||||||||||||
Location of | Recognized in Income | Recognized in Income | ||||||||||||||||||||||||
Gain (Loss) | on Derivatives | on Derivatives | ||||||||||||||||||||||||
Recognized in | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
Derivatives Not Designated as | Income on | September 30, | September 30, | |||||||||||||||||||||||
Hedging Instruments | Derivatives | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Product contracts | Cost of sales | $ | 4,576 | $ | 11,062 | $ | 8,223 | $ | 15,666 | |||||||||||||||||
Foreign currency contracts | Cost of sales | (437 | ) | 160 | (203 | ) | 121 | |||||||||||||||||||
Total | $ | 4,139 | $ | 11,222 | $ | 8,020 | $ | 15,787 | ||||||||||||||||||
Fair value hedging relationships | ' | |||||||||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||||||||
Schedule of net gains and losses from derivatives recognized in consolidated statements of income | ' | |||||||||||||||||||||||||
The following table presents the hedge ineffectiveness from derivatives involved in fair value hedging relationships recognized in the Partnership’s consolidated statements of income for the three and nine months ended September 30, 2013 and 2012 (in thousands): | ||||||||||||||||||||||||||
Amount of Gain (Loss) Recognized in | ||||||||||||||||||||||||||
Income on Derivatives | ||||||||||||||||||||||||||
Location of Gain (Loss) | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
Derivatives in Fair Value | Recognized in | September 30, | September 30, | |||||||||||||||||||||||
Hedging Relationships | Income on Derivative | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Futures contracts | Cost of sales | $ | (4,348 | ) | $ | (100,666 | ) | $ | 15,753 | $ | (110,114 | ) | ||||||||||||||
Amount of Gain (Loss) Recognized in | ||||||||||||||||||||||||||
Income on Hedged Items | ||||||||||||||||||||||||||
Location of Gain (Loss) | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
Hedged Items in Fair Value | Recognized in | September 30, | September 30, | |||||||||||||||||||||||
Hedged Relationships | Income on Hedged Items | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Inventories | Cost of sales | $ | 4,545 | $ | 100,765 | $ | (15,033 | ) | $ | 110,368 | ||||||||||||||||
Cash flow hedging relationships | ' | |||||||||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||||||||
Schedule of fair values of derivative instruments and location in consolidated balance sheets | ' | |||||||||||||||||||||||||
The following table presents the fair value of the Partnership’s derivative instruments involved in cash flow hedging relationships and their location in the Partnership’s consolidated balance sheets at September 30, 2013 and December 31, 2012 (in thousands): | ||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||
Derivatives Designated as | 2013 | 2012 | ||||||||||||||||||||||||
Hedging Instruments | Balance Sheet Location | Fair Value | Fair Value | |||||||||||||||||||||||
Asset derivatives | ||||||||||||||||||||||||||
Interest rate cap | Other assets | $ | 49 | $ | 35 | |||||||||||||||||||||
Liability derivatives | ||||||||||||||||||||||||||
Interest rate collar | Other long-term liabilities | $ | 6 | $ | 1,868 | |||||||||||||||||||||
Interest rate swap | Other long-term liabilities | 10,833 | 11,534 | |||||||||||||||||||||||
Total liability derivatives | $ | 10,839 | $ | 13,402 | ||||||||||||||||||||||
Schedule of net gains and losses from derivatives recognized in consolidated statements of income | ' | |||||||||||||||||||||||||
The following table presents the amount of net gains and losses from derivatives involved in cash flow hedging relationships recognized in the Partnership’s consolidated statements of income and partners’ equity for the three and nine months ended September 30, 2013 and 2012 (in thousands): | ||||||||||||||||||||||||||
Recognized in Income | Recognized in Income | |||||||||||||||||||||||||
on Derivatives | on Derivatives | |||||||||||||||||||||||||
Amount of Gain (Loss) | (Ineffectiveness Portion | Amount of Gain (Loss) | (Ineffectiveness Portion | |||||||||||||||||||||||
Recognized in Other | and Amount Excluded | Recognized in Other | and Amount Excluded | |||||||||||||||||||||||
Comprehensive Income | from Effectiveness | Comprehensive Income | from Effectiveness | |||||||||||||||||||||||
on Derivatives | Testing) | on Derivatives | Testing) | |||||||||||||||||||||||
Derivatives in | Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||
Cash Flow | September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||
Hedging Relationship | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Interest rate collar | $ | 635 | $ | 481 | $ | — | $ | — | $ | 1,861 | $ | 1,341 | $ | — | $ | — | ||||||||||
Interest rate swap | (1,538 | ) | 78 | — | — | 701 | 133 | — | — | |||||||||||||||||
Interest rate cap | (42 | ) | (44 | ) | — | — | 15 | (270 | ) | — | — | |||||||||||||||
Total | $ | (945 | ) | $ | 515 | $ | — | $ | — | $ | 2,577 | $ | 1,204 | $ | — | $ | — |
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Related Party Transactions | ' | |||||||
Schedule of receivables from related parties | ' | |||||||
The table below presents trade receivables with GPC and the Partnership and receivables from the General Partner (in thousands): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Receivables from GPC | $ | 436 | $ | 275 | ||||
Receivables from the General Partner (1) | 1,060 | 1,032 | ||||||
Total | $ | 1,496 | $ | 1,307 | ||||
(1) Receivables from the General Partner reflect the Partnership’s prepayment of payroll taxes and payroll | ||||||||
accruals to the General Partner. |
Cash_Distributions_Tables
Cash Distributions (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Cash Distributions | ' | ||||||||||||||||
Schedule of quarterly cash distributions to the unitholders and the General Partner based on target levels | ' | ||||||||||||||||
Total Quarterly Distribution | Marginal Percentage Interest in | ||||||||||||||||
Distributions | |||||||||||||||||
Target Amount | Unitholders | General Partner | |||||||||||||||
Minimum Quarterly Distribution | $0.46 | 99.17% | 0.83% | ||||||||||||||
First Target Distribution | $0.46 | 99.17% | 0.83% | ||||||||||||||
Second Target Distribution | above $0.4625 up to $0.5375 | 86.17% | 13.83% | ||||||||||||||
Third Target Distribution | above $0.5375 up to $0.6625 | 76.17% | 23.83% | ||||||||||||||
Thereafter | above $0.6625 | 51.17% | 48.83% | ||||||||||||||
Schedule of cash distribution made by the Partnership | ' | ||||||||||||||||
The Partnership paid the following cash distribution during 2013 (in thousands, except per unit data): | |||||||||||||||||
Cash | Per Unit | Common | General | Incentive | Total Cash | ||||||||||||
Distribution | Cash | Units | Partner | Distribution | Distribution | ||||||||||||
Payment Date | Distribution | ||||||||||||||||
02/14/13 (1) | $ | 0.57 | $ | 15,636 | $ | 131 | $ | 579 | $ | 16,346 | |||||||
05/15/13 (2) | 0.5825 | 15,979 | 134 | 683 | 16,796 | ||||||||||||
08/14/13 (3) | 0.5875 | 16,116 | 135 | 724 | 16,975 | ||||||||||||
(1) This distribution of $0.57 per unit resulted in the Partnership exceeding its second target level distribution for the fourth quarter of 2012. As a result, the General Partner, as the holder of the IDRs, received an incentive distribution. | |||||||||||||||||
(2) This distribution of $0.5825 per unit resulted in the Partnership exceeding its second target level distribution for the first quarter of 2013. As a result, the General Partner, as the holder of the IDRs, received an incentive distribution. | |||||||||||||||||
(3) This distribution of $0.5875 per unit resulted in the Partnership exceeding its second target level distribution for the second quarter of 2013. As a result, the General Partner, as the holder of the IDRs, received an incentive distribution. |
Segment_Reporting_Tables
Segment Reporting (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Segment Reporting | ' | |||||||||||||
Summary of financial information for the reportable segments | ' | |||||||||||||
Summarized financial information for the Partnership’s reportable segments is presented in the table below (in thousands): | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Wholesale Segment: | ||||||||||||||
Sales | ||||||||||||||
Gasoline and gasoline blendstocks | $ | 1,981,536 | $ | 2,570,580 | $ | 6,142,691 | $ | 6,465,950 | ||||||
Other oils and related products (2) | 1,326,374 | 936,991 | 5,352,215 | 3,202,108 | ||||||||||
Total | $ | 3,307,910 | $ | 3,507,571 | $ | 11,494,906 | $ | 9,668,058 | ||||||
Net product margin | ||||||||||||||
Gasoline and gasoline blendstocks (1) | $ | 21,854 | $ | 8,925 | $ | 4,786 | $ | 34,382 | ||||||
Other oils and related products (2) | 42,213 | 25,994 | 115,766 | 68,449 | ||||||||||
Total (1) | $ | 64,067 | $ | 34,919 | $ | 120,552 | $ | 102,831 | ||||||
Gasoline Distribution and Station Operations Segment: | ||||||||||||||
Sales | ||||||||||||||
Gasoline | $ | 870,689 | $ | 907,579 | $ | 2,449,400 | $ | 2,181,164 | ||||||
Station operations (3) | 40,970 | 36,760 | 109,891 | 91,806 | ||||||||||
Total | $ | 911,659 | $ | 944,339 | $ | 2,559,291 | $ | 2,272,970 | ||||||
Net product margin | ||||||||||||||
Gasoline | $ | 43,443 | $ | 33,556 | $ | 110,533 | $ | 89,284 | ||||||
Station operations (3) | 21,287 | 18,673 | 59,062 | 48,367 | ||||||||||
Total | $ | 64,730 | $ | 52,229 | $ | 169,595 | $ | 137,651 | ||||||
Commercial Segment: | ||||||||||||||
Sales | $ | 213,857 | $ | 165,284 | $ | 740,175 | $ | 567,710 | ||||||
Net product margin | $ | 4,745 | $ | 4,779 | $ | 21,340 | $ | 14,158 | ||||||
Combined sales and net product margin: | ||||||||||||||
Sales | $ | 4,433,426 | $ | 4,617,194 | $ | 14,794,372 | $ | 12,508,738 | ||||||
Net product margin (1)(4) | $ | 133,542 | $ | 91,927 | $ | 311,487 | $ | 254,640 | ||||||
Depreciation allocated to cost of sales | (15,449 | ) | (9,307 | ) | (40,525 | ) | (26,026 | ) | ||||||
Combined gross profit (1) | $ | 118,093 | $ | 82,620 | $ | 270,962 | $ | 228,614 | ||||||
(1) Includes a $15.5 million decrease and a ($6.6 million) increase in the mark to market loss related to RIN forward commitments for the three and nine months ended September 30, 2013, respectively, and increases of $13.5 million and $22.6 million in the mark to market value of the RVO Deficiency for the three and nine months ended September 30, 2013, respectively (see Note 2). | ||||||||||||||
(2) Other oils and related products primarily consist of distillates, residual oil, crude oil and propane and include the February 2013 acquisitions of Basin Transload and Cascade Kelly (see Note 3). | ||||||||||||||
(3) Station operations primarily consist of convenience store sales at the Partnership’s directly operated stores and rental income from dealer leased or commission agent leased gasoline stations. | ||||||||||||||
(4) Net product margin is a non-GAAP financial measure used by management and external users of the Partnership’s consolidated financial statements to assess the Partnership’s business. The table above includes a reconciliation of net product margin on a combined basis to gross profit, a directly comparable GAAP measure. | ||||||||||||||
Schedule of reconciliation of the totals reported for the reportable segments to the applicable line items in the consolidated financial statements | ' | |||||||||||||
A reconciliation of the totals reported for the reportable segments to the applicable line items in the consolidated financial statements is as follows (in thousands): | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Combined gross profit (1) | $ | 118,093 | $ | 82,620 | $ | 270,962 | $ | 228,614 | ||||||
Operating costs and expenses not allocated to operating segments: | ||||||||||||||
Selling, general and administrative expenses | 27,889 | 22,709 | 79,232 | 66,502 | ||||||||||
Operating expenses | 46,713 | 40,196 | 137,420 | 100,692 | ||||||||||
Amortization expense | 4,773 | 1,511 | 13,321 | 5,373 | ||||||||||
Total operating costs and expenses | 79,375 | 64,416 | 229,973 | 172,567 | ||||||||||
Operating income (1) | 38,718 | 18,204 | 40,989 | 56,047 | ||||||||||
Interest expense | (10,855 | ) | (10,633 | ) | (32,113 | ) | (31,811 | ) | ||||||
Income tax expense | (2,727 | ) | (678 | ) | (852 | ) | (228 | ) | ||||||
Net income (1) | 25,136 | 6,893 | 8,024 | 24,008 | ||||||||||
Net loss attributable to noncontrolling interest | 679 | — | 549 | — | ||||||||||
Net income attributable to Global Partners LP (1) | $ | 25,815 | $ | 6,893 | $ | 8,573 | $ | 24,008 | ||||||
(1) Includes a $15.5 million decrease and a ($6.6 million) increase in the mark to market loss related to RIN forward commitments for the three and nine months ended September 30, 2013, respectively, and increases of $13.5 million and $22.6 million in the mark to market value of the RVO Deficiency for the three and nine months ended September 30, 2013, respectively (see Note 2). |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Property and Equipment | ' | |||||||
Schedule of components of property and equipment | ' | |||||||
Property and equipment consisted of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Buildings and improvements | $ | 592,285 | $ | 498,984 | ||||
Land | 287,592 | 289,903 | ||||||
Fixtures and equipment | 18,222 | 14,554 | ||||||
Construction in process | 90,633 | 17,809 | ||||||
Capitalized internal use software | 5,847 | 5,847 | ||||||
Total property and equipment | 994,579 | 827,097 | ||||||
Less accumulated depreciation | (156,155 | ) | (114,775 | ) | ||||
Total | $ | 838,424 | $ | 712,322 |
Environmental_Liabilities_Asse1
Environmental Liabilities, Asset Retirement Obligations and Renewable Identification Numbers (RINs) (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Environmental Liabilities, Asset Retirement Obligations and Renewable Identification Numbers (RINs) | ' | ||||||||||||||||
Summary roll forward of the environmental liabilities | ' | ||||||||||||||||
The following table presents a summary roll forward of the Partnership’s environmental liabilities at September 30, 2013 (in thousands): | |||||||||||||||||
Balance at | Balance at | ||||||||||||||||
December 31, | Payments in | Dispositions | Other | September 30, | |||||||||||||
Environmental Liability Related to: | 2012 | 2013 | 2013 | Adjustments | 2013 | ||||||||||||
ExxonMobil Gasoline Stations | $ | 26,610 | $ | (1,018 | ) | $ | (366 | ) | $ | (3 | ) | $ | 25,223 | ||||
Alliance Gasoline Stations | 14,984 | (613 | ) | (600 | ) | 420 | 14,191 | ||||||||||
Mutual Oil | 625 | — | — | — | 625 | ||||||||||||
Newburgh | 1,500 | — | — | — | 1,500 | ||||||||||||
Glenwood Landing and Inwood | 347 | (25 | ) | — | — | 322 | |||||||||||
Albany | 106 | (45 | ) | — | — | 61 | |||||||||||
Total environmental liabilities | $ | 44,172 | $ | (1,701 | ) | $ | (966 | ) | $ | 417 | $ | 41,922 | |||||
Current portion | $ | 4,341 | $ | 4,271 | |||||||||||||
Long-term portion | 39,831 | 37,651 | |||||||||||||||
Total environmental liabilities | $ | 44,172 | $ | 41,922 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||||||||
Schedule of financial assets and financial liabilities measured at fair value on a recurring basis | ' | |||||||||||||||||||||||||
The following table presents those financial assets and financial liabilities measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012 (in thousands): | ||||||||||||||||||||||||||
Fair Value as of September 30, 2013 | Fair Value as of December 31, 2012 | |||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Hedged inventories | $ | 342,379 | $ | — | $ | 342,379 | $ | — | $ | 526,107 | $ | — | $ | 526,107 | $ | — | ||||||||||
Fair value of forward fixed price contracts | 37,001 | — | 30,170 | 6,831 | 48,062 | — | 48,062 | — | ||||||||||||||||||
Swap agreements and options | 139 | 134 | 5 | — | 179 | 54 | 125 | — | ||||||||||||||||||
Foreign currency derivatives | — | — | — | — | 145 | — | 145 | — | ||||||||||||||||||
Interest rate cap | 49 | — | 49 | — | 35 | — | 35 | — | ||||||||||||||||||
Broker margin deposits | 40,694 | 40,694 | — | — | 54,726 | 54,726 | — | — | ||||||||||||||||||
Pension plan | 17,885 | 17,885 | — | — | 17,158 | 17,158 | — | — | ||||||||||||||||||
Total | $ | 438,147 | $ | 58,713 | $ | 372,603 | $ | 6,831 | $ | 646,412 | $ | 71,938 | $ | 574,474 | $ | — | ||||||||||
Liabilities: | ||||||||||||||||||||||||||
Obligations on forward fixed price contracts | $ | (38,885 | ) | $ | — | $ | (33,587 | ) | $ | (5,298 | ) | $ | (34,474 | ) | $ | — | $ | (34,474 | ) | $ | — | |||||
RIN forward commitments | (6,608 | ) | — | (6,608 | ) | — | — | — | — | — | ||||||||||||||||
Swap agreements and option contracts | (134 | ) | (134 | ) | — | — | (54 | ) | (54 | ) | — | — | ||||||||||||||
Foreign currency derivatives | (58 | ) | — | (58 | ) | — | — | — | — | — | ||||||||||||||||
Interest rate collar and swap | (10,840 | ) | — | (10,840 | ) | — | (13,402 | ) | — | (13,402 | ) | — | ||||||||||||||
Total liabilities | $ | (56,525 | ) | $ | (134 | ) | $ | (51,093 | ) | $ | (5,298 | ) | $ | (47,930 | ) | $ | (54 | ) | $ | (47,876 | ) | $ | — | |||
Summary of the changes in fair value of Level 3 financial assets and liabilities | ' | |||||||||||||||||||||||||
The following table presents a summary of the changes in fair value of the Partnership’s Level 3 financial assets and liabilities at September 30, 2013 (in thousands): | ||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Fair value at December 31, 2012 | $ | — | ||||||||||||||||||||||||
Reclass of Level 2 inputs | 15,127 | |||||||||||||||||||||||||
Change in fair value recorded in Cost of Sales | (13,594 | ) | ||||||||||||||||||||||||
Fair value at September 30, 2013 | $ | 1,533 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Accumulated Other Comprehensive Loss | ' | ||||||||||
Schedule of changes in accumulated other comprehensive loss | ' | ||||||||||
The following table presents the changes in accumulated other comprehensive loss for the three and nine months ended September 30, 2013 (in thousands): | |||||||||||
Three Months Ended September 30, 2013 | Pension | Derivatives | Total | ||||||||
Plan | |||||||||||
Balance at June 30, 2013 | $ | (2,859 | ) | $ | (11,264 | ) | $ | (14,123 | ) | ||
Other comprehensive income (loss) before reclassifications of gain (loss) | 1,191 | (945 | ) | 246 | |||||||
Amount of gain (loss) reclassified from accumulated other comprehensive income | — | — | — | ||||||||
Total comprehensive income | 1,191 | (945 | ) | 246 | |||||||
Balance at September 30, 2013 | $ | (1,668 | ) | $ | (12,209 | ) | $ | (13,877 | ) | ||
Nine Months Ended September 30, 2013 | Pension | Derivatives | Total | ||||||||
Plan | |||||||||||
Balance at December 31, 2012 | $ | (4,884 | ) | $ | (14,786 | ) | $ | (19,670 | ) | ||
Other comprehensive income before reclassifications of gain (loss) | 3,216 | 2,577 | 5,793 | ||||||||
Amount of gain (loss) reclassified from accumulated other comprehensive income | — | — | — | ||||||||
Total comprehensive income | 3,216 | 2,577 | 5,793 | ||||||||
Balance at September 30, 2013 | $ | (1,668 | ) | $ | (12,209 | ) | $ | (13,877 | ) |
NonCash_Investing_Activities_T
Non-Cash Investing Activities (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Non-Cash Investing Activities | ' | ||||
Schedule of non-cash investing activities | ' | ||||
The following table presents non-cash investing activities for the nine months ended September 30, 2012 (in thousands): | |||||
Effect of acquisition of Alliance Energy LLC: | |||||
Fair value of tangible assets acquired | $ | (333,212 | ) | ||
Fair value of liabilities assumed | 83,209 | ||||
Fair value of acquired intangible assets | (33,285 | ) | |||
Fair value of common units issued | 130,513 | ||||
Consideration paid in excess of fair value (goodwill) | (29,123 | ) | |||
Net cash paid in connection with the acquisition of Alliance | $ | (181,898 | ) |
Organization_and_Basis_of_Pres3
Organization and Basis of Presentation (Details) | 9 Months Ended | 9 Months Ended | 0 Months Ended | |||||
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Mar. 02, 2012 | Mar. 02, 2012 | Feb. 28, 2013 | Feb. 01, 2013 | Feb. 15, 2013 | |
item | Affiliates of general partner | Alliance | Alliance | Basin Transload LLC | Basin Transload LLC | Cascade Kelly | ||
AE Holdings | AE Holdings | |||||||
Members of Slifka family | ||||||||
Organization | ' | ' | ' | ' | ' | ' | ' | ' |
Number of owned, leased and/or supplied gasoline stations | 900 | ' | ' | ' | ' | ' | ' | ' |
Percentage of outstanding membership interests acquired | ' | ' | ' | 100.00% | ' | 60.00% | 60.00% | 100.00% |
Affiliate ownership percentage of seller in acquisition | ' | ' | ' | ' | 95.00% | ' | ' | ' |
Number of independent directors of the general partner's board of directors serving on the conflicts committee | 3 | ' | ' | ' | ' | ' | ' | ' |
General partner interest (as a percent) | 0.83% | ' | ' | ' | ' | ' | ' | ' |
Number of common units held | 27,268,247 | 27,310,648 | 11,548,902 | ' | ' | ' | ' | ' |
Limited partner ownership interest (as a percent) | ' | ' | 42.10% | ' | ' | ' | ' | ' |
Organization_and_Basis_of_Pres4
Organization and Basis of Presentation (Details 2) (Sales) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Product | ' | ' | ' | ' |
Concentration of Risk | ' | ' | ' | ' |
Percentage of total sales | 100.00% | 100.00% | 100.00% | 100.00% |
Product | Gasoline sales: gasoline and gasoline blendstocks such as ethanol and naphtha | ' | ' | ' | ' |
Concentration of Risk | ' | ' | ' | ' |
Percentage of total sales | 65.00% | 76.00% | 59.00% | 70.00% |
Product | Distillates (home heating oil, diesel and kerosene), residual oil, crude oil, natural gas and propane sales | ' | ' | ' | ' |
Concentration of Risk | ' | ' | ' | ' |
Percentage of total sales | 35.00% | 24.00% | 41.00% | 30.00% |
Customer | ' | ' | ' | ' |
Concentration of Risk | ' | ' | ' | ' |
Number of significant customers | ' | ' | 2 | 1 |
Customer | ExxonMobil | ' | ' | ' | ' |
Concentration of Risk | ' | ' | ' | ' |
Percentage of total sales | 18.00% | 16.00% | 15.00% | 16.00% |
Customer | Phillips 66 | ' | ' | ' | ' |
Concentration of Risk | ' | ' | ' | ' |
Percentage of total sales | 11.00% | ' | 14.00% | ' |
Restatement_Details
Restatement (Details) (USD $) | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Previously Reported | Correction of accounting for Renewable Identification Numbers ("RINs") | Correction of accounting for Renewable Identification Numbers ("RINs") | Correction of accounting for accrued liabilities | Correction of accounting for accrued liabilities | ||||
Adjustments | Adjustments | Adjustments | Adjustments | |||||
RVO Deficiency | ' | ' | ' | ' | $22,600,000 | $22,600,000 | ' | ' |
Mark to market value of RIN forward commitments | ' | ' | ' | ' | 6,600,000 | 6,600,000 | ' | ' |
Reduction in RIN inventory | ' | ' | ' | ' | 9,000,000 | 4,800,000 | ' | ' |
Increase (decrease) in net income | ' | ' | ' | ' | 15,000,000 | -29,900,000 | 5,400,000 | 10,800,000 |
Net cash provided by operating activities | 254,112,000 | 189,700,000 | ' | 254,112,000 | ' | 0 | ' | ' |
Assets | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable, net | 625,829,000 | ' | 696,762,000 | 781,800,000 | -155,971,000 | -155,971,000 | ' | ' |
Inventories | 397,412,000 | ' | 634,667,000 | 402,221,000 | -4,809,000 | -4,809,000 | ' | ' |
Total current assets | 1,159,091,000 | ' | 1,506,933,000 | 1,319,871,000 | -160,780,000 | -160,780,000 | ' | ' |
Intangible assets, net | 73,663,000 | ' | 60,822,000 | 129,755,000 | -56,092,000 | -56,092,000 | ' | ' |
Goodwill | 118,390,000 | ' | 32,326,000 | 58,890,000 | 59,500,000 | 59,500,000 | ' | ' |
Total assets | 2,207,269,000 | ' | 2,329,752,000 | 2,364,641,000 | -157,372,000 | -157,372,000 | ' | ' |
Liabilities and partners' equity | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts payable | 615,093,000 | ' | 759,698,000 | 769,693,000 | -154,600,000 | -154,600,000 | ' | ' |
Accrued expenses and other current liabilities | 60,621,000 | ' | 71,442,000 | 46,403,000 | 14,218,000 | 14,218,000 | ' | ' |
Total current liabilities | 909,761,000 | ' | 1,045,195,000 | 1,050,143,000 | -140,382,000 | -140,382,000 | ' | ' |
Total liabilities | 1,760,029,000 | ' | 1,893,291,000 | 1,900,411,000 | -140,382,000 | -140,382,000 | ' | ' |
Partners' equity | ' | ' | ' | ' | ' | ' | ' | ' |
Common unitholders | 409,728,000 | ' | 456,538,000 | 427,929,000 | -18,201,000 | -18,201,000 | ' | ' |
General partner interest | -487,000 | ' | -407,000 | -335,000 | -152,000 | -152,000 | ' | ' |
Total Global Partners LP equity | 395,364,000 | ' | 436,461,000 | 413,717,000 | -18,353,000 | -18,353,000 | ' | ' |
Noncontrolling interest | 51,876,000 | ' | ' | 50,513,000 | 1,363,000 | 1,363,000 | ' | ' |
Total partners' equity | 447,240,000 | ' | 436,461,000 | 464,230,000 | -16,990,000 | -16,990,000 | ' | ' |
Total liabilities and partners' equity | $2,207,269,000 | ' | $2,329,752,000 | $2,364,641,000 | ($157,372,000) | ($157,372,000) | ' | ' |
Restatement_Details_2
Restatement (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Cost of sales | $4,315,333,000 | $4,534,574,000 | $14,523,410,000 | $12,280,124,000 |
Gross profit | 118,093,000 | 82,620,000 | 270,962,000 | 228,614,000 |
Selling, general and administrative expenses | 27,889,000 | 22,709,000 | 79,232,000 | 66,502,000 |
Amortization | 4,773,000 | 1,511,000 | 13,321,000 | 5,373,000 |
Total operating expenses | 79,375,000 | 64,416,000 | 229,973,000 | 172,567,000 |
Operating income | 38,718,000 | 18,204,000 | 40,989,000 | 56,047,000 |
Interest expense | -10,855,000 | -10,633,000 | -32,113,000 | -31,811,000 |
Income before income taxes | 27,863,000 | 7,571,000 | 8,876,000 | 24,236,000 |
Net income | 25,136,000 | 6,893,000 | 8,024,000 | 24,008,000 |
Net loss attributable to noncontrolling interest | 679,000 | ' | 549,000 | ' |
Net income attributable to Global Partners LP | 25,815,000 | 6,893,000 | 8,573,000 | 24,008,000 |
General partner's interest in net income, including incentive distribution rights | -1,042,000 | -316,000 | -2,306,000 | -733,000 |
Limited partners' interest in net income | 24,773,000 | 6,577,000 | 6,267,000 | 23,275,000 |
Basic net income per limited partner unit (in dollars per unit) | $0.91 | $0.24 | $0.23 | $0.89 |
Diluted net income per limited partner unit (in dollars per unit) | $0.91 | $0.24 | $0.23 | $0.89 |
Previously Reported | ' | ' | ' | ' |
Cost of sales | 4,337,146,000 | ' | 14,504,383,000 | ' |
Gross profit | 96,280,000 | ' | 289,989,000 | ' |
Selling, general and administrative expenses | 29,086,000 | ' | 82,923,000 | ' |
Amortization | 6,676,000 | ' | 16,729,000 | ' |
Total operating expenses | 82,475,000 | ' | 237,072,000 | ' |
Operating income | 13,805,000 | ' | 52,917,000 | ' |
Interest expense | -9,111,000 | ' | -27,051,000 | ' |
Income before income taxes | 4,694,000 | ' | 25,866,000 | ' |
Net income | 1,967,000 | ' | 25,014,000 | ' |
Net loss attributable to noncontrolling interest | 1,440,000 | ' | 1,912,000 | ' |
Net income attributable to Global Partners LP | 3,407,000 | ' | 26,926,000 | ' |
General partner's interest in net income, including incentive distribution rights | -856,000 | ' | -2,458,000 | ' |
Limited partners' interest in net income | 2,551,000 | ' | 24,468,000 | ' |
Basic net income per limited partner unit (in dollars per unit) | $0.09 | ' | $0.89 | ' |
Diluted net income per limited partner unit (in dollars per unit) | $0.09 | ' | $0.89 | ' |
Correction of accounting for Renewable Identification Numbers ("RINs") | Adjustments | ' | ' | ' | ' |
Total RIN adjustments | ' | ' | -29,900,000 | ' |
Cost of sales | -21,813,000 | ' | 19,027,000 | ' |
Gross profit | 21,813,000 | ' | -19,027,000 | ' |
Selling, general and administrative expenses | -1,197,000 | ' | -3,691,000 | ' |
Amortization | -1,903,000 | ' | -3,408,000 | ' |
Total operating expenses | -3,100,000 | ' | -7,099,000 | ' |
Operating income | 24,913,000 | ' | -11,928,000 | ' |
Interest expense | -1,744,000 | ' | -5,062,000 | ' |
Income before income taxes | 23,169,000 | ' | -16,990,000 | ' |
Net income | 23,169,000 | ' | -16,990,000 | ' |
Net loss attributable to noncontrolling interest | -761,000 | ' | -1,363,000 | ' |
Net income attributable to Global Partners LP | 22,408,000 | ' | -18,353,000 | ' |
General partner's interest in net income, including incentive distribution rights | -186,000 | ' | 152,000 | ' |
Limited partners' interest in net income | $22,222,000 | ' | ($18,201,000) | ' |
Basic net income per limited partner unit (in dollars per unit) | $0.82 | ' | $0.66 | ' |
Diluted net income per limited partner unit (in dollars per unit) | $0.82 | ' | $0.66 | ' |
Restatement_Details_3
Restatement (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Net income | $25,136,000 | $6,893,000 | $8,024,000 | $24,008,000 |
Comprehensive income | 25,382,000 | 7,781,000 | 13,817,000 | 25,793,000 |
Comprehensive loss attributable to noncontrolling interest | 679,000 | ' | 549,000 | ' |
Comprehensive income (loss) attributable to Global Partners LP | 26,061,000 | 7,781,000 | 14,366,000 | 25,793,000 |
Previously Reported | ' | ' | ' | ' |
Net income | 1,967,000 | ' | 25,014,000 | ' |
Comprehensive income | 2,213,000 | ' | 30,807,000 | ' |
Comprehensive loss attributable to noncontrolling interest | 1,440,000 | ' | 1,912,000 | ' |
Comprehensive income (loss) attributable to Global Partners LP | 3,653,000 | ' | 32,719,000 | ' |
Correction of accounting for Renewable Identification Numbers ("RINs") | Adjustments | ' | ' | ' | ' |
Total RIN adjustments | ' | ' | -29,900,000 | ' |
Net income | 23,169,000 | ' | -16,990,000 | ' |
Comprehensive income | 23,169,000 | ' | -16,990,000 | ' |
Comprehensive loss attributable to noncontrolling interest | -761,000 | ' | 1,363,000 | ' |
Comprehensive income (loss) attributable to Global Partners LP | $22,408,000 | ' | ($18,353,000) | ' |
Restatement_Details_4
Restatement (Details 4) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Feb. 28, 2013 | Feb. 01, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Basin Transload LLC | Basin Transload LLC | Basin Transload LLC | Previously Reported | Previously Reported | Correction of accounting for Renewable Identification Numbers ("RINs") | Correction of accounting for Renewable Identification Numbers ("RINs") | Correction of accounting for Renewable Identification Numbers ("RINs") | Correction of accounting for Renewable Identification Numbers ("RINs") | |||||
Adjustments | Adjustments | Adjustments | Adjustments | ||||||||||
Customer relationships | Basin Transload LLC | ||||||||||||
Total RIN adjustments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($29,900,000) | ' | ' |
Net income | 25,136,000 | 6,893,000 | 8,024,000 | 24,008,000 | ' | ' | ' | 1,967,000 | 25,014,000 | 23,169,000 | -16,990,000 | ' | ' |
Depreciation and amortization | ' | ' | 55,534,000 | 32,663,000 | ' | ' | ' | ' | 58,942,000 | ' | -3,408,000 | ' | ' |
Bad debt expense | ' | ' | 3,030,000 | 270,000 | ' | ' | ' | ' | 1,659,000 | ' | 1,371,000 | ' | ' |
Accounts receivable | ' | ' | 70,202,000 | -40,237,000 | ' | ' | ' | ' | -84,398,000 | ' | 154,600,000 | ' | ' |
Inventories | ' | ' | 237,386,000 | 81,839,000 | ' | ' | ' | ' | 232,577,000 | ' | 4,809,000 | ' | ' |
Accounts payable | ' | ' | -147,359,000 | 91,708,000 | ' | ' | ' | ' | 7,241,000 | ' | -154,600,000 | ' | ' |
Accrued expenses, all other current liabilities and other long-term liabilities | ' | ' | -9,842,000 | 14,533,000 | ' | ' | ' | ' | -24,060,000 | ' | 14,218,000 | ' | ' |
Net cash provided by operating activities | ' | ' | 254,112,000 | 189,700,000 | ' | ' | ' | ' | 254,112,000 | ' | 0 | ' | ' |
Reduction in RIN inventory | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,000,000 | 4,800,000 | ' | ' |
Reduction in accrued liabilities related to the procurement of petroleum products | ' | ' | ' | ' | ' | ' | ' | ' | ' | -5,400,000 | -10,800,000 | ' | ' |
Percentage of outstanding membership interests acquired from AE Holdings | ' | ' | ' | ' | ' | 60.00% | 60.00% | ' | ' | ' | ' | ' | ' |
Amortization expense | 4,773,000 | 1,511,000 | 13,321,000 | 5,373,000 | ' | ' | ' | 6,676,000 | 16,729,000 | -1,903,000 | -3,408,000 | ' | ' |
Reduction in value acquired intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 52,000,000 | ' |
Amortization period | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | '2 years |
Increase to allowance for doubtful accounts | ' | ' | ' | ' | ' | ' | ' | ' | ' | 547,000 | 1,400,000 | ' | ' |
Amortization of deferred financing fees | ' | ' | 5,062,000 | 4,106,000 | ' | ' | ' | ' | ' | 1,700,000 | 5,100,000 | ' | ' |
RVO Deficiency | -13,500,000 | ' | -22,600,000 | ' | ' | ' | ' | ' | ' | -13,500,000 | -22,600,000 | ' | ' |
Change in liability related to losses on RIN forward commitments | -15,500,000 | ' | 6,600,000 | ' | ' | ' | ' | ' | ' | -19,500,000 | 2,600,000 | ' | ' |
Change in fair value of forward fixed price contracts | ' | ' | -15,472,000 | 25,450,000 | ' | ' | ' | ' | ' | 1,300,000 | 0 | ' | ' |
Net (income) loss attributable to noncontrolling interest | 679,000 | ' | 549,000 | ' | ' | ' | ' | 1,440,000 | 1,912,000 | -761,000 | -1,363,000 | ' | ' |
Net income attributable to Global Partners LP | $25,815,000 | $6,893,000 | $8,573,000 | $24,008,000 | ' | ' | ' | $3,407,000 | $26,926,000 | $22,408,000 | ($18,353,000) | ' | ' |
Business_Combinations_Details
Business Combinations (Details) (USD $) | 9 Months Ended | 1 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 8 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 7 Months Ended | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | Mar. 02, 2012 | Feb. 14, 2013 | Mar. 31, 2012 | Mar. 02, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Mar. 02, 2012 | Mar. 02, 2012 | Feb. 01, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Feb. 28, 2013 | Sep. 30, 2013 | Feb. 01, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Feb. 15, 2013 | Sep. 30, 2013 | Feb. 15, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
8.00% senior notes due 2018 | Alliance | Alliance | Alliance | Alliance | Alliance | Alliance | Alliance | Basin Transload | Basin Transload | Basin Transload | Basin Transload | Basin Transload | Basin Transload | Basin Transload | Basin Transload | Basin Transload | Cascade Kelly | Cascade Kelly | Cascade Kelly | Cascade Kelly | Cascade Kelly | Cascade Kelly | Mutual Oil | Mutual Oil | |||
Gasoline Distribution and Station Operations Segment | Gasoline Distribution and Station Operations Segment | Pro-forma | AE Holdings | AE Holdings | item | Wholesale Segment | Wholesale Segment | Pro-forma | ft | Purchase price adjustment | 8.00% senior notes due 2018 | Pro-forma | Gasoline Distribution and Station Operations Segment | Gasoline Distribution and Station Operations Segment | |||||||||||||
Members of Slifka family | bbl | ||||||||||||||||||||||||||
Acquisitions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of outstanding membership interests acquired from AE Holdings | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | 60.00% | ' | ' | ' | ' | 60.00% | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' |
Number of transloading facilities operated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Combined rail loading capacity per day (in barrels) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 160,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expenditures related to certain capital expansion projects | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $91,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price | ' | ' | ' | ' | 312,400,000 | ' | ' | ' | ' | ' | 91,083,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 94,179,000 | ' | ' | ' | ' | ' |
Affiliate ownership percentage of seller in acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | 95.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rail transloading facility, storage capacity (in barrels) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' |
Summary of the purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of common units issued | ' | ' | ' | 5,850,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of common units issued in equity consideration (in dollars per share) | ' | $22.31 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net assets acquired | ' | ' | ' | ' | 312,400,000 | ' | ' | ' | ' | ' | 91,083,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 94,179,000 | ' | ' | ' | ' | ' |
Total fair value of common units issued | ' | ' | ' | ' | 130,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets purchased: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,003,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 296,000 | ' | ' | ' | ' | ' |
Inventory | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 131,000 | ' | ' | ' | ' | ' |
Prepaid expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 68,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 96,000 | ' | ' | ' | ' | ' |
Property and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29,112,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 96,591,000 | 51,500,000 | ' | ' | ' | ' |
Intangibles | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26,162,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total identifiable assets purchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 57,345,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 97,114,000 | ' | ' | ' | ' | ' |
Liabilities assumed: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,326,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,428,000 | ' | ' | ' | ' | ' |
Other current liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,507,000 | ' | ' | ' | ' | ' |
Total liabilities assumed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,326,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2,935,000 | ' | ' | ' | ' | ' |
Net identifiable assets acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 56,019,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 94,179,000 | ' | ' | ' | ' | ' |
Non-controlling interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -51,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 86,064,000 | 86,100,000 | 86,100,000 | 86,100,000 | 76,200,000 | ' | ' | 86,100,000 | ' | 0 | 51,100,000 | ' | ' | ' | ' | ' | ' |
Net assets acquired | ' | ' | ' | ' | 312,400,000 | ' | ' | ' | ' | ' | 91,083,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 94,179,000 | ' | ' | ' | ' | ' |
Cash consideration | ' | ' | ' | ' | 181,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | 8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated remaining amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2013 (10/1/13 - 12/31/13) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,978,000 | 2,978,000 | 2,978,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,111,000 | 12,111,000 | 12,111,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,969,000 | 2,969,000 | 2,969,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,058,000 | 18,058,000 | 18,058,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Changes in goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill at the beginning of the period | 32,326,000 | ' | ' | ' | ' | 31,151,000 | 31,151,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,175,000 | 1,175,000 |
Additions | 86,064,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 86,064,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill at the end of the period | 118,390,000 | ' | ' | ' | ' | 31,151,000 | 31,151,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 86,064,000 | ' | ' | ' | ' | ' | ' | ' | ' | 1,175,000 | 1,175,000 |
Supplemental Pro-Forma Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | 12,758,170,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,758,170,000 | ' | ' | ' | ' | ' | 12,758,170,000 | ' | ' |
Net loss | ' | ' | ' | ' | ' | ' | ' | -4,194,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -4,194,000 | ' | ' | ' | ' | ' | -4,194,000 | ' | ' |
Net loss per limited partner unit, basic and diluted | ' | ' | ' | ' | ' | ' | ' | ($0.17) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($0.17) | ' | ' | ' | ' | ' | ($0.17) | ' | ' |
Stated interest rate (as a percent) | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' |
Deepwater marine terminal, leased dock access capacity (in feet) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,200 | ' | ' | ' | ' | ' |
Actual results since acquisition date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of sales of acquiree included in consolidated operating results since acquisition date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,400,000 | ' | ' | ' | ' | ' | ' | 7,700,000 | ' | ' | ' | ' | ' | ' | ' |
Amount of net loss of acquiree included in consolidated operating results since acquisition date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,900,000 | ' | ' | ' | ' | ' | ' | $1,300,000 | ' | ' | ' | ' | ' | ' | ' |
Net_Income_Per_Limited_Partner2
Net Income Per Limited Partner Unit (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Net Income Per Limited Partner Unit | ' | ' | ' | ' | ' |
Repurchased units not deemed outstanding | 162,316 | ' | 162,316 | ' | 119,915 |
Net Income Per Limited Partner Unit | ' | ' | ' | ' | ' |
Net income attributable to Global Partners LP | $25,815 | $6,893 | $8,573 | $24,008 | ' |
Declared distribution | 17,425 | 15,019 | 51,196 | 43,786 | ' |
Adjustment to distribution in connection with the Alliance acquisition | ' | ' | ' | -1,929 | ' |
Adjusted declared distribution | ' | ' | 51,196 | 41,857 | ' |
Assumed allocation of undistributed net income | 8,390 | -8,126 | -42,623 | -17,849 | ' |
Assumed allocation of net income | 25,815 | 6,893 | 8,573 | 24,008 | ' |
Denominator: | ' | ' | ' | ' | ' |
Basic weighted average limited partner units outstanding | 27,333,000 | 27,311,000 | 27,350,000 | 26,085,000 | ' |
Diluted weighted average limited partner units outstanding | 27,333,000 | 27,485,000 | 27,593,000 | 26,258,000 | ' |
Basic net income per limited partner unit (in dollars per unit) | $0.91 | $0.24 | $0.23 | $0.89 | ' |
Diluted net income per limited partner unit (in dollars per unit) | $0.91 | $0.24 | $0.23 | $0.89 | ' |
Limited Partner Interest | ' | ' | ' | ' | ' |
Net Income Per Limited Partner Unit | ' | ' | ' | ' | ' |
Net income attributable to Global Partners LP | 24,773 | 6,577 | 6,267 | 23,275 | ' |
Declared distribution | 16,459 | 14,607 | 48,554 | 42,724 | ' |
Adjustment to distribution in connection with the Alliance acquisition | ' | ' | ' | -1,929 | ' |
Adjusted declared distribution | ' | ' | 48,554 | 40,795 | ' |
Assumed allocation of undistributed net income | 8,314 | -8,030 | -42,287 | -17,520 | ' |
Assumed allocation of net income | 24,773 | 6,577 | 6,267 | 23,275 | ' |
Denominator: | ' | ' | ' | ' | ' |
Basic weighted average limited partner units outstanding | 27,333,000 | 27,311,000 | 27,350,000 | 26,085,000 | ' |
Dilutive effect of phantom units | 0 | 174,000 | 243,000 | 173,000 | ' |
Diluted weighted average limited partner units outstanding | 27,333,000 | 27,485,000 | 27,593,000 | 26,258,000 | ' |
Basic net income per limited partner unit (in dollars per unit) | $0.91 | $0.24 | $0.23 | $0.89 | ' |
Diluted net income per limited partner unit (in dollars per unit) | $0.91 | $0.24 | $0.23 | $0.89 | ' |
General Partner Interest | ' | ' | ' | ' | ' |
Net Income Per Limited Partner Unit | ' | ' | ' | ' | ' |
Net income attributable to Global Partners LP | 1,042 | 316 | 2,306 | 733 | ' |
Declared distribution | 138 | 122 | 407 | 358 | ' |
Adjusted declared distribution | ' | ' | 407 | 358 | ' |
Assumed allocation of undistributed net income | 76 | -96 | -336 | -329 | ' |
Assumed allocation of net income | 214 | 26 | 71 | 29 | ' |
IDRs | ' | ' | ' | ' | ' |
Net Income Per Limited Partner Unit | ' | ' | ' | ' | ' |
Declared distribution | 828 | 290 | 2,235 | 704 | ' |
Adjusted declared distribution | ' | ' | 2,235 | 704 | ' |
Assumed allocation of net income | $828 | $290 | $2,235 | $704 | ' |
Net_Income_Per_Limited_Partner3
Net Income Per Limited Partner Unit (Details 2) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | |||||||||
Aug. 14, 2013 | 15-May-13 | Feb. 14, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Oct. 23, 2013 | Jul. 23, 2013 | Apr. 24, 2013 | Mar. 02, 2012 | Mar. 31, 2012 | Sep. 30, 2012 | Mar. 31, 2012 | Mar. 02, 2012 | |
General Partner Interest | General Partner Interest | General Partner Interest | Seller | Seller | Weighted average | Alliance | Alliance | |||||||||
Net Income Per Limited Partner Unit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common units in connection with acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,850,000 | ' |
General partner ownership interest (as a percent) | ' | ' | ' | ' | ' | ' | ' | 0.83% | ' | ' | ' | ' | ' | 0.87% | ' | ' |
Adjustment in purchase price due to timing of transaction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,900,000 |
Period of actual unit ownership considered for purchase price adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '31 days | ' | ' | ' | ' |
Period in quarter considered for actual unit ownership | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '91 days | ' | ' | ' | ' |
Cash distribution to common units | $16,975,000 | $16,796,000 | $16,346,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,000,000 | ' | ' | ' |
Quarterly cash distributions paid (in dollars per unit) | $0.59 | $0.58 | $0.57 | $0.60 | $0.59 | $0.58 | $0.57 | ' | ' | ' | ' | ' | $0.50 | ' | ' | ' |
Quarterly cash distribution declared (in dollars per unit) | ' | ' | ' | ' | ' | ' | ' | ' | $0.60 | $0.59 | $0.58 | ' | ' | ' | ' | ' |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Inventories | ' | ' |
Inventories | $397,412,000 | $634,667,000 |
Positive exchange balances on inventory exchange agreements accounted for as accounts receivable | 49,200,000 | 120,900,000 |
Negative exchange balances on inventory exchange agreements accounted for as accounts payable | 40,400,000 | 139,500,000 |
Distillates: home heating oil, diesel and kerosene | ' | ' |
Inventories | ' | ' |
Inventories | 165,561,000 | 235,029,000 |
Gasoline | ' | ' |
Inventories | ' | ' |
Inventories | 82,061,000 | 144,269,000 |
Gasoline blendstocks | ' | ' |
Inventories | ' | ' |
Inventories | 36,875,000 | 119,932,000 |
Renewable identification numbers (RINs) | ' | ' |
Inventories | ' | ' |
Inventories | 5,854,000 | 19,384,000 |
Crude Oil | ' | ' |
Inventories | ' | ' |
Inventories | 60,837,000 | 80,273,000 |
Residual oil | ' | ' |
Inventories | ' | ' |
Inventories | 36,649,000 | 29,150,000 |
Propane and other | ' | ' |
Inventories | ' | ' |
Inventories | 2,411,000 | ' |
Convenience store inventory | ' | ' |
Inventories | ' | ' |
Inventories | $7,164,000 | $6,630,000 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
In Millions, unless otherwise specified | Futures contracts | Futures contracts | Natural Gas Contracts | Natural Gas Contracts | Interest Rate collar | Interest rate swap | Interest rate cap | Open forward exchange contracts | Open forward exchange contracts |
Long | Short | Long | Short | USD ($) | USD ($) | USD ($) | USD ($) | CAD | |
bbl | bbl | decatherm | decatherm | ||||||
Volume of activity related to derivative financial instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Nonmonetary units | 19,639,000 | -23,968,000 | 7,481,000 | -7,481,000 | ' | ' | ' | ' | ' |
Monetary units | ' | ' | ' | ' | $100 | $100 | $100 | $23.10 | 23.8 |
Forward rate of CAD to USD | ' | ' | ' | ' | ' | ' | ' | 1.0311 | 1.0311 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Inventories | ' | ' | ' | ' | ' |
Fair values of derivative financial instruments | ' | ' | ' | ' | ' |
Asset Derivatives | $0 | ' | $0 | ' | $0 |
Liability Derivatives | 0 | ' | 0 | ' | 0 |
Amount of Gain (Loss) Recognized in Income on Hedged Items | 4,545 | 100,765 | -15,033 | 110,368 | ' |
Derivatives in Fair Value Hedging Relationships | Futures contracts | ' | ' | ' | ' | ' |
Fair values of derivative financial instruments | ' | ' | ' | ' | ' |
Asset Derivatives | 0 | ' | 0 | ' | 0 |
Liability Derivatives | 0 | ' | 0 | ' | 0 |
Amount of Gain (Loss) Recognized in Income on Derivatives | ($4,348) | ($100,666) | $15,753 | ($110,114) | ' |
Derivative_Financial_Instrumen4
Derivative Financial Instruments (Details 3) (Derivatives in Cash Flow Hedging Relationship, USD $) | 9 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Interest rate cap | Zero premium interest rate collar | Interest rate swap | Forward interest rate swap | Derivatives Designated as Hedging Instruments | Derivatives Designated as Hedging Instruments | Derivatives Designated as Hedging Instruments | Derivatives Designated as Hedging Instruments | Derivatives Designated as Hedging Instruments | Derivatives Designated as Hedging Instruments | Derivatives Designated as Hedging Instruments | Derivatives Designated as Hedging Instruments | |
Credit facility | Credit facility | Revolving credit facility | Revolving credit facility | Interest rate cap | Interest rate cap | Zero premium interest rate collar | Zero premium interest rate collar | Interest rate swap | Interest rate swap | |||
Fair values of derivative financial instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Hedged borrowings | $100,000 | $100,000 | $100,000 | $100,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings variable interest rate | 'one-month LIBOR | 'one-month LIBOR | 'one-month LIBOR | 'one-month LIBOR | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed rate (as a percent) | ' | ' | 3.93% | 1.82% | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum cap rate (as a percent) | 5.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset Derivatives | ' | ' | ' | ' | ' | ' | 49 | 35 | ' | ' | ' | ' |
Liability Derivatives | ' | ' | ' | ' | $10,839 | $13,402 | ' | ' | $6 | $1,868 | $10,833 | $11,534 |
Derivative_Financial_Instrumen5
Derivative Financial Instruments (Details 4) (Derivatives in Cash Flow Hedging Relationship, USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Gains and losses from derivatives | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives | ($945,000) | $515,000 | $2,577,000 | $1,204,000 |
Interest Rate collar | ' | ' | ' | ' |
Gains and losses from derivatives | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives | 635,000 | 481,000 | 1,861,000 | 1,341,000 |
Reclassification of gain (loss) from other comprehensive income to earnings | ' | ' | ' | ' |
Amount of gain (loss) reclassified from other comprehensive income into earnings - effective portion | 600,000 | 600,000 | 1,900,000 | 1,900,000 |
Interest rate swap | ' | ' | ' | ' |
Gains and losses from derivatives | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives | -1,538,000 | 78,000 | 701,000 | 133,000 |
Interest rate cap | ' | ' | ' | ' |
Gains and losses from derivatives | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives | -42,000 | -44,000 | 15,000 | -270,000 |
Reclassification of gain (loss) from other comprehensive income to earnings | ' | ' | ' | ' |
Amount of gain (loss) reclassified from other comprehensive income into earnings - effective portion | $0 | $0 | $0 | $0 |
Derivative_Financial_Instrumen6
Derivative Financial Instruments (Details 5) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Credit Risk | ' | ' |
Number of clearing brokers, primarily utilized | 3 | ' |
Forward | Sales commitments | ' | ' |
Derivatives not designated as either fair value hedges or cash flow hedges | ' | ' |
Asset Derivatives | $37,001 | $48,062 |
Liability Derivatives | 38,885 | 34,474 |
Derivatives not designated as either fair value hedges or cash flow hedges | Product contracts | Maximum | ' | ' |
Derivatives not designated as either fair value hedges or cash flow hedges | ' | ' |
Aggregate units of products in a controlled trading program | 250,000 | ' |
Derivatives not designated as either fair value hedges or cash flow hedges | Foreign currency forward contract | Foreign Denominated Sales | ' | ' |
Derivatives not designated as either fair value hedges or cash flow hedges | ' | ' |
Asset Derivatives | ' | 145 |
Liability Derivatives | 58 | ' |
Derivatives not designated as either fair value hedges or cash flow hedges | Forward | ' | ' |
Derivatives not designated as either fair value hedges or cash flow hedges | ' | ' |
Asset Derivatives | 37,001 | 48,207 |
Liability Derivatives | 38,943 | 34,474 |
Derivatives not designated as either fair value hedges or cash flow hedges | Forward | Purchase commitments | ' | ' |
Derivatives not designated as either fair value hedges or cash flow hedges | ' | ' |
Asset Derivatives | 11,285 | 15,543 |
Liability Derivatives | 24,626 | 31,351 |
Derivatives not designated as either fair value hedges or cash flow hedges | Forward | Purchase commitments | Gasoline and gasoline blendstocks | ' | ' |
Derivatives not designated as either fair value hedges or cash flow hedges | ' | ' |
Asset Derivatives | 10,328 | 131 |
Liability Derivatives | 12,226 | 27,604 |
Derivatives not designated as either fair value hedges or cash flow hedges | Forward | Purchase commitments | Crude Oil | ' | ' |
Derivatives not designated as either fair value hedges or cash flow hedges | ' | ' |
Asset Derivatives | 957 | 15,127 |
Liability Derivatives | 5,243 | ' |
Derivatives not designated as either fair value hedges or cash flow hedges | Forward | Purchase commitments | Residual Oil | ' | ' |
Derivatives not designated as either fair value hedges or cash flow hedges | ' | ' |
Asset Derivatives | ' | 285 |
Liability Derivatives | 268 | ' |
Derivatives not designated as either fair value hedges or cash flow hedges | Forward | Purchase commitments | Distillates | ' | ' |
Derivatives not designated as either fair value hedges or cash flow hedges | ' | ' |
Liability Derivatives | 3,888 | 2,171 |
Derivatives not designated as either fair value hedges or cash flow hedges | Forward | Purchase commitments | Natural Gas | ' | ' |
Derivatives not designated as either fair value hedges or cash flow hedges | ' | ' |
Liability Derivatives | 2,233 | 1,576 |
Derivatives not designated as either fair value hedges or cash flow hedges | Forward | Purchase commitments | Propane | ' | ' |
Derivatives not designated as either fair value hedges or cash flow hedges | ' | ' |
Liability Derivatives | 768 | ' |
Derivatives not designated as either fair value hedges or cash flow hedges | Forward | Sales commitments | ' | ' |
Derivatives not designated as either fair value hedges or cash flow hedges | ' | ' |
Asset Derivatives | 25,716 | 32,519 |
Liability Derivatives | 14,259 | 3,123 |
Derivatives not designated as either fair value hedges or cash flow hedges | Forward | Sales commitments | Gasoline and gasoline blendstocks | ' | ' |
Derivatives not designated as either fair value hedges or cash flow hedges | ' | ' |
Asset Derivatives | 13,649 | 30,928 |
Liability Derivatives | 12,675 | 173 |
Derivatives not designated as either fair value hedges or cash flow hedges | Forward | Sales commitments | Crude Oil | ' | ' |
Derivatives not designated as either fair value hedges or cash flow hedges | ' | ' |
Asset Derivatives | 5,874 | ' |
Liability Derivatives | 55 | ' |
Derivatives not designated as either fair value hedges or cash flow hedges | Forward | Sales commitments | Distillates | ' | ' |
Derivatives not designated as either fair value hedges or cash flow hedges | ' | ' |
Asset Derivatives | 3,938 | ' |
Liability Derivatives | 1,529 | 2,950 |
Derivatives not designated as either fair value hedges or cash flow hedges | Forward | Sales commitments | Natural Gas | ' | ' |
Derivatives not designated as either fair value hedges or cash flow hedges | ' | ' |
Asset Derivatives | $2,255 | $1,591 |
Derivative_Financial_Instrumen7
Derivative Financial Instruments (Details 6) (Derivatives not designated as either fair value hedges or cash flow hedges, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Derivative Financial Instruments | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income on Derivatives | $4,139 | $11,222 | $8,020 | $15,787 |
Product contracts | ' | ' | ' | ' |
Derivative Financial Instruments | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income on Derivatives | 4,576 | 11,062 | 8,223 | 15,666 |
Foreign currency derivatives | ' | ' | ' | ' |
Derivative Financial Instruments | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income on Derivatives | ($437) | $160 | ($203) | $121 |
Debt_Details
Debt (Details) (USD $) | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 10 Months Ended | 10 Months Ended | 10 Months Ended | 9 Months Ended | 10 Months Ended | 10 Months Ended | 10 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Feb. 14, 2013 | Feb. 28, 2013 | Feb. 01, 2013 | Feb. 15, 2013 | Feb. 15, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | 14-May-10 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Nov. 15, 2012 | Sep. 30, 2013 | Nov. 15, 2012 | Sep. 30, 2013 | Nov. 15, 2012 | Sep. 30, 2013 | Nov. 15, 2012 | Sep. 30, 2013 | Nov. 15, 2012 | Sep. 30, 2013 | Nov. 15, 2012 | Sep. 30, 2013 | Nov. 15, 2012 | Sep. 30, 2013 | Nov. 15, 2012 | Sep. 30, 2013 | Nov. 15, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Nov. 15, 2012 | Sep. 30, 2013 | Nov. 15, 2012 | Sep. 30, 2013 | Nov. 15, 2012 | Sep. 30, 2013 | Nov. 15, 2012 | Sep. 30, 2013 | Nov. 15, 2012 | Sep. 30, 2013 | Nov. 15, 2012 | Sep. 30, 2013 | Nov. 15, 2012 | Sep. 30, 2013 | Nov. 15, 2012 | Sep. 30, 2013 | Nov. 15, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
8.00% senior notes due 2018 | Basin Transload LLC | Basin Transload LLC | Cascade Kelly | Cascade Kelly | Swing line loans | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | Working capital revolving credit facility | Working capital revolving credit facility | Working capital revolving credit facility | Working capital revolving credit facility | Working capital revolving credit facility | Working capital revolving credit facility | Working capital revolving credit facility | Working capital revolving credit facility | Working capital revolving credit facility | Working capital revolving credit facility | Working capital revolving credit facility | Working capital revolving credit facility | Working capital revolving credit facility | Working capital revolving credit facility | Working capital revolving credit facility | Working capital revolving credit facility | Working capital revolving credit facility | Working capital revolving credit facility | Working capital revolving credit facility | Working capital revolving credit facility | Working capital revolving credit facility | Working capital revolving credit facility | Letter of credit | Letter of credit | Letter of credit | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | Term Loan | Term Loan | Term Loan | Term Loan | Term Loan | |||
8.00% senior notes due 2018 | item | Maximum | Minimum | Accordion feature | Accordion feature | Eurodollar rate | Eurodollar rate | Eurodollar rate | Eurodollar rate | Eurodollar rate | Eurodollar rate | Cost of funds rate | Cost of funds rate | Cost of funds rate | Cost of funds rate | Cost of funds rate | Cost of funds rate | Base rate | Base rate | Base rate | Base rate | Base rate | Base rate | Swing line loans | Credit Agreement | Maximum | Minimum | Eurodollar rate | Eurodollar rate | Eurodollar rate | Eurodollar rate | Eurodollar rate | Eurodollar rate | Cost of funds rate | Cost of funds rate | Cost of funds rate | Cost of funds rate | Cost of funds rate | Cost of funds rate | Base rate | Base rate | Base rate | Base rate | Base rate | Base rate | Credit Agreement | AR Buyer | Maximum | Basin Transload LLC | Eurodollar rate | Cost of funds rate | Base rate | ||||||||||||||||||||||
Maximum | Minimum | Maximum | Maximum | Minimum | Minimum | Maximum | Maximum | Minimum | Minimum | Maximum | Maximum | Minimum | Minimum | Accordion feature | Maximum | Maximum | Minimum | Minimum | Maximum | Maximum | Minimum | Minimum | Maximum | Maximum | Minimum | Minimum | Accordion feature | AR Buyer | ||||||||||||||||||||||||||||||||||||||||||||||
Maximum | Maximum | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total available commitments | ' | ' | ' | ' | ' | ' | ' | $1,615,000,000 | ' | ' | ' | ' | ' | $1,615,000,000 | ' | ' | ' | ' | $1,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $35,000,000 | ' | ' | ' | ' | $500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $115,000,000 | ' | ' | ' | ' |
Number of line of credit facilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional available commitments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increased credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,865,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Request Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of cash purchase price to be paid to the selling Loan Party for each account receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | ' | ' | ' | ' | ' |
Minimum aggregate amount of the accounts receivable sold to affiliate, which has not yet been collected | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75,000,000 | ' | ' | ' | ' | ' | ' |
Variable rate basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Eurodollar rate | 'Eurodollar rate | ' | ' | ' | ' | 'cost of funds | 'cost of funds | ' | ' | ' | ' | 'base rate | 'base rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Eurodollar rate | 'Eurodollar rate | ' | ' | ' | ' | 'cost of funds | 'cost of funds | ' | ' | ' | ' | 'base rate | 'base rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Eurodollar rate | 'cost of funds | 'Base rate |
Interest rate margin (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.50% | 3.00% | 2.00% | 2.50% | ' | ' | 2.50% | 3.00% | 2.00% | 2.50% | ' | ' | 1.50% | 2.00% | 1.00% | 1.50% | ' | ' | ' | ' | ' | ' | ' | ' | 3.50% | 3.88% | 2.50% | 3.00% | ' | ' | 3.50% | 3.88% | 2.50% | 3.00% | ' | ' | 2.50% | 2.88% | 1.50% | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.50% | 3.50% | 2.50% |
Average interest rates (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 4.30% | 4.10% | 4.30% | 4.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fee incurred (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.50% | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment fee on the unused portion (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | 0.38% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,300,000 | 340,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 83,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total borrowings outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 815,000,000 | ' | 815,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 399,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding letters of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 278,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total remaining availability for borrowings and letters of credit | ' | ' | ' | ' | ' | ' | ' | ' | 521,600,000 | ' | 521,600,000 | ' | 218,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of outstanding membership interests acquired | ' | ' | ' | 60.00% | 60.00% | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60.00% | ' | ' | ' |
Aggregate principal amount | ' | ' | 70,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stated interest rate (as a percent) | ' | ' | 8.00% | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of face amount for which debt is issued | ' | ' | 97.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of debt | ' | ' | 67,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of discount at issuance, which will be accreted as additional interest over the expected term of Notes | ' | ' | 2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt default | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred financing fees capitalized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | 0 | 5,300,000 | 1,100,000 | ' | ' | ' | ' | ' | ' | ' |
Amortization expenses | $5,062,000 | $4,106,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,700,000 | $1,400,000 | $5,100,000 | $4,100,000 | ' | ' | ' | ' | ' | ' | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 |
GPC | GPC | GPC | GPC | GPC | GPC | GPC | Alliance | Alliance | Alliance | Alliance | AE Holdings | AE Holdings | General Partner | General Partner | General Partner | General Partner | General Partner | General Partner | General Partner | General Partner | General Partner | General Partner | |||
Second amended and restated terminal storage rental and throughput agreement | Amended and restated services agreement | Amended and restated services agreement | Amended and restated services agreement | Amended and restated services agreement | Amended and restated services agreement | Amended and restated services agreement | Management agreements | Shared services agreement | Shared services agreement | Second amended and restated terminal storage rental and throughput agreement | Second amended and restated terminal storage rental and throughput agreement | Second amended and restated terminal storage rental and throughput agreement | Second amended and restated terminal storage rental and throughput agreement | Second amended and restated terminal storage rental and throughput agreement | |||||||||||
Members of Slifka family | Global Companies LLC and GMG | Global Companies LLC | Global Companies LLC | Members of Slifka family | Members of Slifka family | Members of Slifka family | Members of Slifka family | Members of Slifka family | |||||||||||||||||
Minimum | |||||||||||||||||||||||||
Related Party Transactions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage ownership interest | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Information on related party transaction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Successive term after July 31, 2015 under the agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' |
Expenses incurred from transactions with related parties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $13,900,000 | $10,500,000 | $45,000,000 | $30,600,000 | ' | $2,300,000 | $2,200,000 | $6,800,000 | $6,700,000 | ' |
Amount to be paid per year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notice period to terminate the receipt of services under the agreement | ' | ' | ' | ' | ' | ' | ' | '180 days | ' | ' | ' | ' | ' | ' | '180 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | '90 days |
Income from services provided to related parties | ' | ' | ' | ' | ' | 24,000 | 24,000 | 72,000 | 72,000 | ' | ' | 31,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gains or losses recognized as a result of the termination of agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales to related parties | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Management fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 433,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Overhead reimbursement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Receivables from related parties | $1,496,000 | $1,307,000 | $436,000 | $275,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,060,000 | ' | $1,060,000 | ' | $1,032,000 | ' | ' | ' | ' | ' |
Cash_Distributions_Details
Cash Distributions (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Aug. 14, 2013 | 15-May-13 | Feb. 14, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Oct. 31, 2013 | Aug. 14, 2013 | 15-May-13 | Feb. 14, 2013 | Oct. 23, 2013 | Aug. 14, 2013 | 15-May-13 | Feb. 14, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
item | Common Unitholders | Common Unitholders | Common Unitholders | Common Unitholders | General Partner | General Partner | General Partner | General Partner | Minimum Quarterly Distribution | Minimum Quarterly Distribution | Minimum Quarterly Distribution | First Target Distribution | First Target Distribution | First Target Distribution | Second Target Distribution | Second Target Distribution | Second Target Distribution | Second Target Distribution | Third Target Distribution | Third Target Distribution | Third Target Distribution | Third Target Distribution | Thereafter | Thereafter | Thereafter | ||||||||
Common Unitholders | General Partner | Common Unitholders | General Partner | Minimum | Maximum | Common Unitholders | General Partner | Minimum | Maximum | Common Unitholders | General Partner | Minimum | Common Unitholders | General Partner | |||||||||||||||||||
Cash Distributions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period of distribution of available cash after end of each quarter | ' | ' | ' | ' | ' | ' | ' | '45 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of quarters of cash reserves to provide funds for distributions to unitholders and General Partner | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Quarterly Distribution Target Amount (in dollars per unit) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.46 | ' | ' | $0.46 | ' | ' | $0.46 | $0.54 | ' | ' | $0.54 | $0.66 | ' | ' | $0.66 | ' | ' |
Marginal Percentage Interest in Distributions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 99.17% | 0.83% | ' | 99.17% | 0.83% | ' | ' | 86.17% | 13.83% | ' | ' | 76.17% | 23.83% | ' | 51.17% | 48.83% |
Cash Distribution Payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Per Unit Cash Distribution (in dollars per unit) | $0.59 | $0.58 | $0.57 | $0.60 | $0.59 | $0.58 | $0.57 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Incentive Distribution | $724 | $683 | $579 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash distribution | $16,975 | $16,796 | $16,346 | ' | ' | ' | ' | ' | ' | $16,116 | $15,979 | $15,636 | ' | $135 | $134 | $131 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distribution declared | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quarterly cash distribution declared (in dollars per unit) | ' | ' | ' | ' | ' | ' | ' | ' | $2.40 | ' | ' | ' | $0.60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Summarized financial information for the Partnership's reportable segments | ' | ' | ' | ' |
Intersegment sales | ' | ' | $0 | ' |
Sales | 4,433,426,000 | 4,617,194,000 | 14,794,372,000 | 12,508,738,000 |
Net product margin/ Gross profit | 118,093,000 | 82,620,000 | 270,962,000 | 228,614,000 |
Net product margin to gross profit reconciliation | ' | ' | ' | ' |
Change in liability related to losses on RIN forward commitments | -15,500,000 | ' | 6,600,000 | ' |
Change in mark to market value of RVO deficiency | 13,500,000 | ' | 22,600,000 | ' |
Wholesale: | ' | ' | ' | ' |
Summarized financial information for the Partnership's reportable segments | ' | ' | ' | ' |
Sales | 3,307,910,000 | 3,507,571,000 | 11,494,906,000 | 9,668,058,000 |
Net product margin/ Gross profit | 64,067,000 | 34,919,000 | 120,552,000 | 102,831,000 |
Gasoline and gasoline blendstocks | ' | ' | ' | ' |
Summarized financial information for the Partnership's reportable segments | ' | ' | ' | ' |
Sales | 1,981,536,000 | 2,570,580,000 | 6,142,691,000 | 6,465,950,000 |
Net product margin/ Gross profit | 21,854,000 | 8,925,000 | 4,786,000 | 34,382,000 |
Other oils and related products | ' | ' | ' | ' |
Summarized financial information for the Partnership's reportable segments | ' | ' | ' | ' |
Sales | 1,326,374,000 | 936,991,000 | 5,352,215,000 | 3,202,108,000 |
Net product margin/ Gross profit | 42,213,000 | 25,994,000 | 115,766,000 | 68,449,000 |
Gasoline Distribution and Station Operations Segment | ' | ' | ' | ' |
Summarized financial information for the Partnership's reportable segments | ' | ' | ' | ' |
Sales | 911,659,000 | 944,339,000 | 2,559,291,000 | 2,272,970,000 |
Net product margin/ Gross profit | 64,730,000 | 52,229,000 | 169,595,000 | 137,651,000 |
Gasoline | ' | ' | ' | ' |
Summarized financial information for the Partnership's reportable segments | ' | ' | ' | ' |
Sales | 870,689,000 | 907,579,000 | 2,449,400,000 | 2,181,164,000 |
Net product margin/ Gross profit | 43,443,000 | 33,556,000 | 110,533,000 | 89,284,000 |
Station operations | ' | ' | ' | ' |
Summarized financial information for the Partnership's reportable segments | ' | ' | ' | ' |
Sales | 40,970,000 | 36,760,000 | 109,891,000 | 91,806,000 |
Net product margin/ Gross profit | 21,287,000 | 18,673,000 | 59,062,000 | 48,367,000 |
Commercial Segment | ' | ' | ' | ' |
Summarized financial information for the Partnership's reportable segments | ' | ' | ' | ' |
Sales | 213,857,000 | 165,284,000 | 740,175,000 | 567,710,000 |
Net product margin/ Gross profit | 4,745,000 | 4,779,000 | 21,340,000 | 14,158,000 |
Reportable segments | ' | ' | ' | ' |
Summarized financial information for the Partnership's reportable segments | ' | ' | ' | ' |
Net product margin/ Gross profit | 133,542,000 | 91,927,000 | 311,487,000 | 254,640,000 |
Not allocated to segments | ' | ' | ' | ' |
Net product margin to gross profit reconciliation | ' | ' | ' | ' |
Depreciation allocated to cost of sales | ($15,449,000) | ($9,307,000) | ($40,525,000) | ($26,026,000) |
Segment_Reporting_Details_2
Segment Reporting (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Reconciliation of the totals reported for the reportable segments to the applicable line items in the consolidated financial statements | ' | ' | ' | ' |
Combined gross profit | $118,093,000 | $82,620,000 | $270,962,000 | $228,614,000 |
Operating costs and expenses | ' | ' | ' | ' |
Selling, general and administrative expenses | 27,889,000 | 22,709,000 | 79,232,000 | 66,502,000 |
Operating expenses | 46,713,000 | 40,196,000 | 137,420,000 | 100,692,000 |
Amortization expense | 4,773,000 | 1,511,000 | 13,321,000 | 5,373,000 |
Total costs and operating expenses | 79,375,000 | 64,416,000 | 229,973,000 | 172,567,000 |
Operating income | 38,718,000 | 18,204,000 | 40,989,000 | 56,047,000 |
Interest expense | -10,855,000 | -10,633,000 | -32,113,000 | -31,811,000 |
Income tax expense | -2,727,000 | -678,000 | -852,000 | -228,000 |
Net income | 25,136,000 | 6,893,000 | 8,024,000 | 24,008,000 |
Net (income) loss attributable to noncontrolling interest | 679,000 | ' | 549,000 | ' |
Net income attributable to Global Partners LP | 25,815,000 | 6,893,000 | 8,573,000 | 24,008,000 |
Change in liability related to losses on RIN forward commitments | -15,500,000 | ' | 6,600,000 | ' |
Change in mark to market value of RVO deficiency | 13,500,000 | ' | 22,600,000 | ' |
Foreign sales | 0 | 0 | 0 | 0 |
Foreign assets | 0 | ' | 0 | ' |
Operating costs and expenses not allocated to operating segments | ' | ' | ' | ' |
Operating costs and expenses | ' | ' | ' | ' |
Selling, general and administrative expenses | 27,889,000 | 22,709,000 | 79,232,000 | 66,502,000 |
Operating expenses | 46,713,000 | 40,196,000 | 137,420,000 | 100,692,000 |
Amortization expense | 4,773,000 | 1,511,000 | 13,221,000 | 5,373,000 |
Total costs and operating expenses | $79,375,000 | $64,416,000 | $229,973,000 | $172,567,000 |
Segment_Reporting_Details_3
Segment Reporting (Details 3) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Feb. 28, 2013 | Feb. 01, 2013 | Feb. 28, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Feb. 28, 2013 |
Basin Transload | Basin Transload | Cascade Kelly and Basin Transload | Gasoline Distribution and Station Operations segment | Wholesale Segment | Wholesale Segment | |||
Alliance and Exxon Mobil | Cascade Kelly and Basin Transload | Cascade Kelly and Basin Transload | ||||||
Segment Assets | ' | ' | ' | ' | ' | ' | ' | ' |
Assets including goodwill acquired in connection with acquisition | ' | ' | ' | ' | $240,500,000 | ' | ' | ' |
Property and equipment | ' | ' | ' | 29,112,000 | ' | ' | ' | 125,700,000 |
Net book value of assets | $838,424,000 | $712,322,000 | ' | ' | ' | $506,100,000 | $120,500,000 | ' |
Percentage of membership interests acquired | ' | ' | 60.00% | 60.00% | ' | ' | ' | ' |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Property and Equipment | ' | ' |
Total property and equipment | $994,579,000 | $827,097,000 |
Less accumulated depreciation | -156,155,000 | -114,775,000 |
Total | 838,424,000 | 712,322,000 |
Increase in gross total property and equipment | 167,500,000 | ' |
Buildings and improvements | ' | ' |
Property and Equipment | ' | ' |
Total property and equipment | 592,285,000 | 498,984,000 |
Land | ' | ' |
Property and Equipment | ' | ' |
Total property and equipment | 287,592,000 | 289,903,000 |
Fixtures and equipment | ' | ' |
Property and Equipment | ' | ' |
Total property and equipment | 18,222,000 | 14,554,000 |
Construction in process | ' | ' |
Property and Equipment | ' | ' |
Total property and equipment | 90,633,000 | 17,809,000 |
Capitalized internal use software | ' | ' |
Property and Equipment | ' | ' |
Total property and equipment | $5,847,000 | $5,847,000 |
Environmental_Liabilities_Asse2
Environmental Liabilities, Asset Retirement Obligations and Renewable Identification Numbers (RINs) (Details) (USD $) | 9 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | ||||||||||
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2010 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2012 | Jun. 02, 2010 | Nov. 30, 2007 | Jun. 30, 2011 | Dec. 31, 2008 | 31-May-07 | |
ExxonMobil Gasoline Stations | ExxonMobil Gasoline Stations | Alliance Gasoline Stations | Mutual Oil | Mutual Oil | Newburgh | Newburgh | Glenwood Landing and Inwood | Albany | Alliance Acquisition | Newburgh Terminals Acquisition | Glenwood Landing and Inwood, New York Terminal Acquisitions | Albany and Newburgh, New York and Burlington, Vermont Terminal Acquisitions | Albany and Newburgh, New York and Burlington, Vermont Terminal Acquisitions | Albany and Newburgh, New York and Burlington, Vermont Terminal Acquisitions | |||
item | item | ||||||||||||||||
Environmental Liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of gasoline stations acquired | ' | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of refined petroleum products terminals acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' |
Assumed environmental liabilities, recorded on an undiscounted basis | ' | $600,000 | ' | $30,000,000 | ' | ' | ' | ' | ' | ' | ' | $16,100,000 | $1,500,000 | $1,200,000 | ' | ' | $8,000,000 |
Change in environmental liability | -417,000 | ' | 3,000 | ' | -420,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,700,000 | 2,800,000 | ' |
Changes in environmental liabilities during the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | 44,172,000 | ' | 26,610,000 | ' | 14,984,000 | ' | 625,000 | 1,500,000 | 1,500,000 | 347,000 | 106,000 | ' | ' | ' | ' | ' | ' |
Payments | -1,701,000 | ' | -1,018,000 | ' | -613,000 | ' | ' | ' | ' | -25,000 | -45,000 | ' | ' | ' | ' | ' | ' |
Dispositions | -966,000 | ' | -366,000 | ' | -600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Adjustments | 417,000 | ' | -3,000 | ' | 420,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,700,000 | -2,800,000 | ' |
Balance at the end of the period | 41,922,000 | ' | 25,223,000 | ' | 14,191,000 | 625,000 | 625,000 | 1,500,000 | 1,500,000 | 322,000 | 61,000 | ' | ' | ' | ' | ' | ' |
Environmental liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current portion | 4,271,000 | 4,341,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term portion | 37,651,000 | 39,831,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total environmental liabilities | 41,922,000 | ' | 25,223,000 | ' | 14,191,000 | 625,000 | 625,000 | 1,500,000 | 1,500,000 | 322,000 | 61,000 | ' | ' | ' | ' | ' | ' |
Total assets retirement obligations | $1,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Renewable Identification Numbers (RINs) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum settlement period | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LongTerm_Incentive_Plan_Detail
Long-Term Incentive Plan (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 53 Months Ended | |
In Millions, except Share data, unless otherwise specified | Jun. 27, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 22, 2012 |
Long-Term Incentive Plan | ' | ' | ' | ' | ' |
Number of common units initially authorized for issuance under LTIP (in shares) | ' | 564,242 | 564,242 | 564,242 | ' |
Number of common units available for issuance | ' | ' | ' | ' | 4,300,000 |
Long-Term Incentive Plan | ' | ' | ' | ' | ' |
Phantom units granted (in shares) | 510,836 | ' | ' | ' | ' |
Compensation expenses for phantom unit awards | ' | $0.90 | $0.90 | ' | ' |
Compensation cost related to the non-vested awards not yet recognized | ' | 18.7 | 18.7 | 18.7 | ' |
Repurchase Program | ' | ' | ' | ' | ' |
Aggregate common units authorized to be acquired (in shares) | ' | 942,427 | 942,427 | 942,427 | ' |
Common units repurchased by General Partner (in shares) | ' | ' | ' | 487,915 | ' |
Common units repurchased by General Partner | ' | ' | $4.30 | $12 | ' |
All employees except one employee | July 1, 2017 | ' | ' | ' | ' | ' |
Long-Term Incentive Plan | ' | ' | ' | ' | ' |
Vesting rights percentage of phantom units | ' | ' | 33.33% | ' | ' |
All employees except one employee | July 1, 2018 | ' | ' | ' | ' | ' |
Long-Term Incentive Plan | ' | ' | ' | ' | ' |
Cumulative vesting rights percentage on the second vesting of phantom units | ' | ' | 66.67% | ' | ' |
All employees except one employee | July 1, 2019 | ' | ' | ' | ' | ' |
Long-Term Incentive Plan | ' | ' | ' | ' | ' |
Cumulative vesting rights percentage on the third vesting of phantom units | ' | ' | 100.00% | ' | ' |
One employee | December 31, 2014 | ' | ' | ' | ' | ' |
Long-Term Incentive Plan | ' | ' | ' | ' | ' |
Vesting rights percentage of phantom units | ' | ' | 33.33% | ' | ' |
One employee | December 31, 2015 | ' | ' | ' | ' | ' |
Long-Term Incentive Plan | ' | ' | ' | ' | ' |
Cumulative vesting rights percentage on the second vesting of phantom units | ' | ' | 66.67% | ' | ' |
One employee | December 31, 2016 | ' | ' | ' | ' | ' |
Long-Term Incentive Plan | ' | ' | ' | ' | ' |
Cumulative vesting rights percentage on the third vesting of phantom units | ' | ' | 100.00% | ' | ' |
Non-employee directors | December 31, 2014 | ' | ' | ' | ' | ' |
Long-Term Incentive Plan | ' | ' | ' | ' | ' |
Vesting rights percentage of phantom units | ' | ' | 33.33% | ' | ' |
Non-employee directors | December 31, 2015 | ' | ' | ' | ' | ' |
Long-Term Incentive Plan | ' | ' | ' | ' | ' |
Cumulative vesting rights percentage on the second vesting of phantom units | ' | ' | 66.67% | ' | ' |
Non-employee directors | December 31, 2016 | ' | ' | ' | ' | ' |
Long-Term Incentive Plan | ' | ' | ' | ' | ' |
Cumulative vesting rights percentage on the third vesting of phantom units | ' | ' | 100.00% | ' | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 |
Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | ||
Total estimated fair value | Total estimated fair value | Total estimated fair value | Total estimated fair value | Total estimated fair value | Total estimated fair value | Total estimated fair value | Total estimated fair value | Total estimated fair value | Total estimated fair value | Total estimated fair value | Total estimated fair value | Total estimated fair value | Total estimated fair value | Total estimated fair value | Level 1 | Level 1 | Level 1 | Level 1 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 3 | Level 3 | ||
Forward fixed price purchase and sale contracts | Forward fixed price purchase and sale contracts | RIN forward commitments | Swap agreements and option contracts | Swap agreements and option contracts | Foreign currency derivatives | Foreign currency derivatives | Interest rate cap | Interest rate cap | Interest rate collar and swap | Interest rate collar and swap | Inventories | Inventories | Swap agreements and option contracts | Swap agreements and option contracts | Forward fixed price purchase and sale contracts | Forward fixed price purchase and sale contracts | RIN forward commitments | Swap agreements and option contracts | Swap agreements and option contracts | Foreign currency derivatives | Foreign currency derivatives | Interest rate cap | Interest rate cap | Interest rate collar and swap | Interest rate collar and swap | Inventories | Inventories | Forward fixed price purchase and sale contracts | |||||||||
Assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Hedged inventories | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $342,379 | $526,107 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $342,379 | $526,107 | ' | ' |
Derivative assets | ' | ' | ' | 37,001 | 48,062 | ' | 139 | 179 | ' | 145 | 49 | 35 | ' | ' | ' | ' | ' | ' | 134 | 54 | ' | ' | 30,170 | 48,062 | ' | 5 | 125 | ' | 145 | 49 | 35 | ' | ' | ' | ' | ' | 6,831 |
Broker margin deposits | ' | 40,694 | 54,726 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,694 | 54,726 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pension plan | ' | 17,885 | 17,158 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,885 | 17,158 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total assets | ' | 438,147 | 646,412 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 58,713 | 71,938 | ' | ' | 372,603 | 574,474 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,831 | ' |
Liabilities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative liabilities | ' | ' | ' | -38,885 | -34,474 | -6,608 | -134 | -54 | -58 | ' | ' | ' | -10,840 | -13,402 | ' | ' | ' | ' | -134 | -54 | ' | ' | -33,587 | -34,474 | -6,608 | ' | ' | -58 | ' | ' | ' | -10,840 | -13,402 | ' | ' | ' | -5,298 |
Total liabilities | ' | -56,525 | -47,930 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -134 | -54 | ' | ' | -51,093 | -47,876 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -5,298 | ' |
Changes in fair value of Level 3 financial assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclass of Level 2 inputs | 15,127 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in fair value recorded in Cost of Sales | -13,594 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value at the end of the period | $1,533 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Taxes | ' | ' | ' | ' |
Minimum percentage of gross income representing qualifying income of publicly traded partnerships | ' | ' | 90.00% | ' |
Amount of income tax provision | $2,727 | $678 | $852 | $228 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Accumulated other comprehensive loss | ' | ' | ' | ' |
Balance at the beginning of the period | ($14,123) | ' | ($19,670) | ' |
Other comprehensive income (loss) before reclassifications of gain (loss) | 246 | ' | 5,793 | ' |
Total other comprehensive income | 246 | 888 | 5,793 | 1,785 |
Balance at the end of the period | -13,877 | ' | -13,877 | ' |
Pension Plan | ' | ' | ' | ' |
Accumulated other comprehensive loss | ' | ' | ' | ' |
Balance at the beginning of the period | -2,859 | ' | -4,884 | ' |
Other comprehensive income (loss) before reclassifications of gain (loss) | 1,191 | ' | 3,216 | ' |
Total other comprehensive income | 1,191 | ' | 3,216 | ' |
Balance at the end of the period | -1,668 | ' | -1,668 | ' |
Derivatives | ' | ' | ' | ' |
Accumulated other comprehensive loss | ' | ' | ' | ' |
Balance at the beginning of the period | -11,264 | ' | -14,786 | ' |
Other comprehensive income (loss) before reclassifications of gain (loss) | -945 | ' | 2,577 | ' |
Total other comprehensive income | -945 | ' | 2,577 | ' |
Balance at the end of the period | ($12,209) | ' | ($12,209) | ' |
NonCash_Investing_Activities_D
Non-Cash Investing Activities (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2012 |
Effect of acquisition of Alliance Energy LLC | ' |
Fair value of tangible assets acquired | ($333,212) |
Fair value of liabilities assumed | 83,209 |
Fair value of acquired intangible assets | -33,285 |
Fair value of common units issued | 130,513 |
Consideration paid in excess of fair value (goodwill) | -29,123 |
Net cash paid in connection with the acquisition of Alliance | ($181,898) |
Subsequent_Event_Details
Subsequent Event (Details) (Subsequent event, General Partner, USD $) | 0 Months Ended |
Oct. 23, 2013 | |
Subsequent Events | ' |
Quarterly cash distribution declared (in dollars per unit) | $0.60 |
Annualized basis | ' |
Subsequent Events | ' |
Quarterly cash distribution declared (in dollars per unit) | $2.40 |