Exhibit 99.3
F-1
Pages | ||||
F-4 | ||||
Financial Statements: | ||||
F-3 | ||||
F-5 | ||||
F-6 | ||||
F-7 | ||||
F-8 | ||||
F-9 to F-29 | ||||
Financial Statements Schedules: | ||||
S-1 to S-3 | ||||
S-4 to S-5 |
F-2
/s/ PricewaterhouseCoopers LLP | ||
Philadelphia, Pennsylvania | ||
November 20, 2009 except with respect to our opinion on the consolidated financial statements insofar as it relates to the effects of the change in accounting for noncontrolling interests and the two-class method for determining income per unit discussed in Note 3, as to which the date is August 6, 2010. |
F-3
Chief Executive Officer
Chief Financial Officer
Chief Accounting Officer
F-4
September 30, | ||||||||
2009 | 2008 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 59,213 | $ | 10,909 | ||||
Accounts receivable (less allowances for doubtful accounts of $13,239 and $20,215, respectively) | 136,147 | 218,411 | ||||||
Accounts receivable — related parties | 5,851 | 5,130 | ||||||
Inventories | 87,940 | 144,206 | ||||||
Derivative financial instruments | 14,970 | 13 | ||||||
Collateral deposits | — | 17,830 | ||||||
Prepaid expenses and other current assets | 12,386 | 28,597 | ||||||
Total current assets | 316,507 | 425,096 | ||||||
Property, plant and equipment (less accumulated depreciation and amortization of $804,239 and $743,097, respectively) | 628,899 | 616,834 | ||||||
Goodwill | 665,663 | 640,843 | ||||||
Intangible assets (less accumulated amortization of $23,970 and $20,033, respectively) | 32,611 | 27,579 | ||||||
Other assets | 13,884 | 14,721 | ||||||
Total assets | $ | 1,657,564 | $ | 1,725,073 | ||||
LIABILITIES AND PARTNERS’ CAPITAL | ||||||||
Current liabilities: | ||||||||
Current maturities of long-term debt | $ | 82,225 | $ | 71,466 | ||||
Accounts payable — trade | 115,041 | 172,800 | ||||||
Accounts payable — related parties | 2,252 | 2,017 | ||||||
Employee compensation and benefits accrued | 36,055 | 31,408 | ||||||
Interest accrued | 22,203 | 23,490 | ||||||
Customer deposits and advances | 87,760 | 106,946 | ||||||
Derivative financial instruments | 19,284 | 55,792 | ||||||
Other current liabilities | 55,785 | 68,642 | ||||||
Total current liabilities | 420,605 | 532,561 | ||||||
Long-term debt | 783,419 | 861,924 | ||||||
Other noncurrent liabilities | 77,215 | 72,490 | ||||||
Total liabilities | 1,281,239 | 1,466,975 | ||||||
Commitments and contingencies (note 13) | ||||||||
Partners’ capital: | ||||||||
AmeriGas Partners, L.P. partners capital: | ||||||||
Common unitholders (units issued - 57,046,388 and 57,009,951, respectively) | 367,708 | 308,186 | ||||||
General partner | 3,698 | 3,094 | ||||||
Accumulated other comprehensive loss | (6,947 | ) | (63,905 | ) | ||||
Total AmeriGas Partners, L. P. partners’ capital | 364,459 | 247,375 | ||||||
Noncontrolling interests | 11,866 | (1) | 10,723 | (1) | ||||
Total partners’ capital | 376,325 | (1) | 258,098 | (1) | ||||
Total liabilities and partners’ capital | $ | 1,657,564 | $ | 1,725,073 | ||||
(1) | As adjusted in accordance with the transition provisions for accounting for noncontrolling interests in consolidated subsidiaries (Note 3). |
F-5
Year Ended | ||||||||||||
September 30, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Revenues: | ||||||||||||
Propane | $ | 2,091,890 | $ | 2,624,672 | $ | 2,096,080 | ||||||
Other | 168,205 | 190,517 | 181,295 | |||||||||
2,260,095 | 2,815,189 | 2,277,375 | ||||||||||
Costs and expenses: | ||||||||||||
Cost of sales — propane (excluding depreciation shown below) | 1,254,332 | 1,836,917 | 1,365,071 | |||||||||
Cost of sales — other (excluding depreciation shown below) | 62,172 | 71,396 | 72,125 | |||||||||
Operating and administrative expenses | 615,152 | 610,465 | 562,524 | |||||||||
Depreciation | 78,528 | 75,679 | 71,555 | |||||||||
Amortization | 5,260 | 4,723 | 4,059 | |||||||||
Gains on sales of LPG storage facilities | (39,887 | ) | — | (46,117 | ) | |||||||
Other income, net | (16,005 | ) | (18,855 | ) | (17,572 | ) | ||||||
1,959,552 | 2,580,325 | 2,011,645 | ||||||||||
Operating income | 300,543 | 234,864 | 265,730 | |||||||||
Interest expense | (70,340 | ) | (72,886 | ) | (71,487 | ) | ||||||
Income before income taxes | 230,203 | 161,978 | 194,243 | |||||||||
Income tax expense | (2,593 | ) | (1,672 | ) | (846 | ) | ||||||
Net income | 227,610 | (1) | 160,306 | (1) | 193,397 | (1) | ||||||
Less: net income attributable to noncontrolling interests | (2,967 | )(1) | (2,287 | )(1) | (2,613 | )(1) | ||||||
Net income attributable to AmeriGas Partners, L. P. | $ | 224,643 | (1) | $ | 158,019 | (1) | $ | 190,784 | (1) | |||
General partner’s interest in net income attributable to AmeriGas Partners, L.P. | $ | 6,737 | $ | 2,278 | $ | 5,600 | ||||||
Limited partners’ interest in net income attributable to AmeriGas Partners, L.P. | $ | 217,906 | $ | 155,741 | $ | 185,184 | ||||||
Income per limited partner unit — basic and diluted (note 2) | $ | 3.59 | $ | 2.70 | $ | 3.15 | ||||||
Average limited partner units outstanding (thousands): | ||||||||||||
Basic | 57,038 | 57,005 | 56,826 | |||||||||
Diluted | 57,082 | 57,044 | 56,862 | |||||||||
(1) | As adjusted in accordance with the transition provisions for accounting for noncontrolling interests in consolidated subsidiaries (Note 3). |
F-6
Year Ended | ||||||||||||
September 30, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
Net income | $ | 227,610 | (1) | $ | 160,306 | (1) | $ | 193,397 | (1) | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 83,788 | 80,402 | 75,614 | |||||||||
Gains on sales of LPG storage facilities | (39,887 | ) | — | (46,117 | ) | |||||||
Provision for uncollectible accounts | 9,345 | 15,852 | 9,544 | |||||||||
Other, net | 320 | (1,448 | ) | 2,243 | ||||||||
Net change in: | ||||||||||||
Accounts receivable | 74,134 | (51,270 | ) | (17,142 | ) | |||||||
Inventories | 57,847 | (19,032 | ) | (18,829 | ) | |||||||
Accounts payable | (58,124 | ) | 8,136 | 17,819 | ||||||||
Collateral deposits | 17,830 | (17,830 | ) | — | ||||||||
Other current assets | 16,210 | (5,348 | ) | 310 | ||||||||
Other current liabilities | (21,575 | ) | 10,446 | (12,340 | ) | |||||||
Net cash provided by operating activities | 367,498 | 180,214 | 204,499 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
Expenditures for property, plant and equipment | (78,739 | ) | (62,756 | ) | (73,764 | ) | ||||||
Proceeds from disposals of assets | 6,880 | 8,442 | 5,954 | |||||||||
Net proceeds from sales of LPG storage facilities | 42,426 | — | 49,031 | |||||||||
Acquisitions of businesses, net of cash acquired | (50,092 | ) | (1,322 | ) | (78,763 | ) | ||||||
Net cash used by investing activities | (79,525 | ) | (55,636 | ) | (97,542 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
Distributions | (165,282 | ) | (144,659 | ) | (154,672 | ) | ||||||
Minority interest activity | (2,400 | ) | (2,138 | ) | (2,144 | ) | ||||||
Repayment of long-term debt | (71,659 | ) | (1,680 | ) | (1,762 | ) | ||||||
Proceeds from issuance of Common Units, net of tax withheld | (338 | ) | 766 | 814 | ||||||||
Capital contributions from General Partner | 10 | 8 | 66 | |||||||||
Net cash used by financing activities | (239,669 | ) | (147,703 | ) | (157,698 | ) | ||||||
Cash and cash equivalents increase (decrease) | $ | 48,304 | $ | (23,125 | ) | $ | (50,741 | ) | ||||
CASH AND CASH EQUIVALENTS: | ||||||||||||
End of year | $ | 59,213 | $ | 10,909 | $ | 34,034 | ||||||
Beginning of year | 10,909 | 34,034 | 84,775 | |||||||||
Increase (decrease) | $ | 48,304 | $ | (23,125 | ) | $ | (50,741 | ) | ||||
SUPPLEMENTAL CASH FLOW INFORMATION: | ||||||||||||
Cash paid for: | ||||||||||||
Interest | $ | 69,745 | $ | 70,801 | $ | 69,451 |
(1) | As adjusted in accordance with the transition provisions for accounting for noncontrolling interests in consolidated subsidiaries (Note 3). |
F-7
Accumulated | Total | |||||||||||||||||||||||||||
other | AmeriGas | Total | ||||||||||||||||||||||||||
Number of | General | comprehensive | Partners, L.P. | Noncontrolling | partners’ | |||||||||||||||||||||||
Common Units | Common | partner | income (loss) | partners’ capital | Interests | capital | ||||||||||||||||||||||
Balance September 30, 2006 | 56,797,105 | $ | 250,493 | $ | 2,525 | $ | (31,515 | ) | $ | 221,503 | $ | 10,448 | (1) | $ | 231,951 | (1) | ||||||||||||
Net income | 185,184 | 5,600 | 190,784 | 2,613 | (1) | 193,397 | (1) | |||||||||||||||||||||
Net gains on derivative instruments | 25,270 | 25,270 | 255 | (1) | 25,525 | (1) | ||||||||||||||||||||||
Reclassification of net losses on derivative instruments | 21,276 | 21,276 | 214 | (1) | 21,490 | (1) | ||||||||||||||||||||||
Comprehensive income | 185,184 | 5,600 | 46,546 | 237,330 | 3,082 | (1) | 240,412 | (1) | ||||||||||||||||||||
Distributions | (149,433 | ) | (5,239 | ) | (154,672 | ) | (2,202) | (1) | (156,874) | (1) | ||||||||||||||||||
Unit-based compensation expense | 489 | — | 489 | 489 | (1) | |||||||||||||||||||||||
Common Units issued in connection with incentive compensation plans | 25,392 | 814 | 8 | 822 | 822 | (1) | ||||||||||||||||||||||
Common Units issued in connection with acquisition | 166,205 | 5,698 | 58 | 5,756 | 58 | (1) | 5,814 | (1) | ||||||||||||||||||||
Balance September 30, 2007 | 56,988,702 | 293,245 | 2,952 | 15,031 | 311,228 | 11,386 | (1) | 322,614 | (1) | |||||||||||||||||||
Net income | 155,741 | 2,278 | 158,019 | 2,287 | (1) | 160,306 | (1) | |||||||||||||||||||||
Net losses on derivative instruments | (25,925 | ) | (25,925 | ) | (267) | (1) | (26,192) | (1) | ||||||||||||||||||||
Reclassification of net gains on derivative instruments | (53,011 | ) | (53,011 | ) | (545) | (1) | (53,556) | (1) | ||||||||||||||||||||
Comprehensive income | 155,741 | 2,278 | (78,936 | ) | 79,083 | 1,475 | (1) | 80,558 | (1) | |||||||||||||||||||
Distributions | (142,515 | ) | (2,144 | ) | (144,659 | ) | (2,138) | (1) | (146,797) | (1) | ||||||||||||||||||
Unit-based compensation expense | 949 | — | 949 | 949 | (1) | |||||||||||||||||||||||
Common Units issued in connection with incentive compensation plans | 21,249 | 766 | 8 | 774 | 774 | (1) | ||||||||||||||||||||||
Balance September 30, 2008 | 57,009,951 | 308,186 | 3,094 | (63,905 | ) | 247,375 | 10,723 | (1) | 258,098 | (1) | ||||||||||||||||||
Net income | 217,906 | 6,737 | 224,643 | 2,967 | (1) | 227,610 | (1) | |||||||||||||||||||||
Net losses on derivative instruments | (136,786 | ) | (136,786 | ) | (1,531) | (1) | (138,317) | (1) | ||||||||||||||||||||
Reclassification of net losses on derivative instruments | 193,744 | 193,744 | 2,107 | (1) | 195,851 | (1) | ||||||||||||||||||||||
Comprehensive income | 217,906 | 6,737 | 56,958 | 281,601 | 3,543 | (1) | 285,144 | (1) | ||||||||||||||||||||
Distributions | (159,139 | ) | (6,143 | ) | (165,282 | ) | (2,400) | (1) | (167,682) | (1) | ||||||||||||||||||
Unit-based compensation expense | 1,093 | — | 1,093 | 1,093 | (1) | |||||||||||||||||||||||
Common Units issued in connection with incentive compensation plans, net of tax withheld | 36,437 | (338 | ) | 10 | (328 | ) | (328) | (1) | ||||||||||||||||||||
Balance September 30, 2009 | 57,046,388 | $ | 367,708 | $ | 3,698 | $ | (6,947 | ) | $ | 364,459 | $ | 11,866 | (1) | $ | 376,325 | (1) | ||||||||||||
(1) | As adjusted in accordance with the transition provisions for accounting for noncontrolling interests in consolidated subsidiaries (Note 3). |
F-8
F-9
• | Level 1 — Quoted prices (unadjusted) in active markets for identical assets and liabilities that we have the ability to access at the measurement date. The Partnership did not have any derivative financial instruments categorized as Level 1 at September 30, 2009. |
• | Level 2 — Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived from observable market data by correlation or other means. Instruments categorized in Level 2 include non-exchange traded derivatives such as over the counter commodity price swap and option contracts and interest rate protection agreements. |
• | Level 3 — Unobservable inputs for the asset or liability including situations where there is little, if any, market activity for the asset or liability. We did not have any derivative financial instruments categorized as Level 3 at September 30, 2009. |
F-10
F-11
F-12
The new guidance regarding the two-class method requires that income per limited partner unit be calculated as if all earnings for the period were distributed and requires a separate calculation for each quarter and year-to-date period. In periods when our net income attributable to AmeriGas Partners exceeds our Available Cash, as defined in the Partnership Agreement, and is above certain levels, the calculation according to the two-class method results in an increased allocation of undistributed earnings to the General Partner. In periods when our Available Cash in respect of the quarter or year-to-date periods exceeds our net income (loss) attributable to AmeriGas Partners, the calculation according to the two-class method results in an allocation of earnings to the General Partner greater than its relative ownership interest in the Partnership (or in the case of a net loss attributable to AmeriGas Partners, an allocation of such net loss to the Common Unitholders greater than their relative ownership interest in the Partnership). The new guidance requires retrospective application of the guidance to all periods presented. The retrospective application of the new guidance did not impact the calculation of net income per limited partner unit for the years ended September 30, 2009, 2008 or 2007 but did impact the calculations for the three month periods ended June 30, 2009 and September 30, 2009.
F-13
F-14
F-15
2009 | 2008 | 2007 | ||||||||||
Net current assets (liabilities) | $ | 1,916 | $ | (1,010 | ) | $ | (2,208 | ) | ||||
Property, plant and equipment | 17,646 | 2,731 | 59,439 | |||||||||
Goodwill | 24,048 | 751 | 19,449 | |||||||||
Customer relationships and noncompete agreements (estimated useful life of 10 and 5 years, respectively) | 10,268 | 2,451 | 8,238 | |||||||||
Other net long-term liabilities | — | — | (98 | ) | ||||||||
Total | $ | 53,878 | $ | 4,923 | $ | 84,820 | ||||||
1. | all cash on hand at the end of such quarter, |
2. | plus all additional cash on hand as of the date of determination resulting from borrowing after the end of such quarter, |
3. | less the amount of cash reserves established by the General Partner in its reasonable discretion. |
F-16
2009 | 2008 | 2007 | ||||||||||
1st Quarter | $ | 0.64 | $ | 0.61 | $ | 0.58 | ||||||
2nd Quarter | 0.64 | 0.61 | 0.58 | |||||||||
3rd Quarter | 0.67 | 0.64 | 0.61 | |||||||||
4th Quarter | 0.84 | 0.64 | 0.86 |
2009 | 2008 | |||||||
AmeriGas Partners Senior Notes: | ||||||||
8.875%, due May 2011 | $ | 14,720 | $ | 14,767 | ||||
7.25%, due May 2015 | 415,000 | 415,000 | ||||||
7.125%, due May 2016 | 350,000 | 350,000 | ||||||
AmeriGas OLP First Mortgage Notes: | ||||||||
Series D, 7.11%, due March 2009 | — | 70,201 | ||||||
Series E, 8.50%, due July 2010 | 80,018 | 80,042 | ||||||
Other | 5,906 | 3,380 | ||||||
Total long-term debt | 865,644 | 933,390 | ||||||
Less current maturities | (82,225 | ) | (71,466 | ) | ||||
Total long-term debt due after one year | $ | 783,419 | $ | 861,924 | ||||
F-17
F-18
1. | no event of default exists or would exist upon making such distributions and |
2. | the Partnership’s consolidated fixed charge coverage ratio, as defined, is greater than 1.75-to-1. |
2009 | 2008 | |||||||
Propane gas | $ | 67,945 | $ | 121,365 | ||||
Materials, supplies and other | 16,489 | 19,296 | ||||||
Appliances for sale | 3,506 | 3,545 | ||||||
Total inventories | $ | 87,940 | $ | 144,206 | ||||
F-19
2009 | 2008 | |||||||
Land | $ | 66,880 | $ | 66,153 | ||||
Buildings and improvements | 96,873 | 91,760 | ||||||
Transportation equipment | 73,000 | 68,254 | ||||||
Storage facilities | 121,857 | 118,650 | ||||||
Equipment, primarily cylinders and tanks | 1,035,402 | 992,532 | ||||||
Other, including construction in process | 39,126 | 22,582 | ||||||
Gross property, plant and equipment | 1,433,138 | 1,359,931 | ||||||
Less accumulated depreciation and amortization | (804,239 | ) | (743,097 | ) | ||||
Net property, plant and equipment | $ | 628,899 | $ | 616,834 | ||||
2009 | 2008 | |||||||
Subject to amortization: | ||||||||
Customer relationships and noncompete agreements | $ | 56,581 | $ | 47,612 | ||||
Accumulated amortization | (23,970 | ) | (20,033 | ) | ||||
32,611 | 27,579 | |||||||
Not subject to amortization: | ||||||||
Goodwill | $ | 665,663 | $ | 640,843 | ||||
F-20
Grants Awarded in Fiscal Year | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Risk-free rate | 1.0 | % | 3.1 | % | 4.7 | % | ||||||
Expected life | 3 years | 3 years | 3 years | |||||||||
Expected volatility | 32.0 | % | 17.7 | % | 17.6 | % | ||||||
Dividend Yield | 9.1 | % | 6.8 | % | 7.1 | % |
Total | Vested | Non-Vested | ||||||||||||||||||||||
Weighted | Weighted | Weighted | ||||||||||||||||||||||
Average | Average | Average | ||||||||||||||||||||||
Number of | Grant Date | Number of | Grant Date | Number of | Grant Date | |||||||||||||||||||
Common | Fair Value | Common | Fair Value | Common | Fair Value | |||||||||||||||||||
Units | (per Unit) | Units | (per Unit) | Units | (per Unit) | |||||||||||||||||||
September 30, 2008 | 126,100 | $ | 33.44 | 39,966 | $ | 32.03 | 86,134 | $ | 34.10 | |||||||||||||||
Granted | 60,200 | $ | 31.94 | — | $ | — | 60,200 | $ | 31.94 | |||||||||||||||
Forfeited | (1,500 | ) | $ | 30.70 | — | $ | — | (1,500 | ) | $ | 30.70 | |||||||||||||
Vested | — | $ | — | 48,818 | $ | 31.70 | (48,818 | ) | $ | 31.70 | ||||||||||||||
Unit awards paid | (37,200 | ) | $ | 29.56 | (37,200 | ) | $ | 29.56 | — | $ | — | |||||||||||||
September 30, 2009 | 147,600 | $ | 33.83 | 51,584 | $ | 33.49 | 96,016 | $ | 34.02 | |||||||||||||||
F-21
2009 | 2008 | 2007 | ||||||||||
Number of original Awards granted | 38,350 | 39,767 | 52,200 | |||||||||
Fiscal year granted | 2006 | 2005 | 2004 | |||||||||
Payment of Awards: | ||||||||||||
AmeriGas Partners Common Units issued | 36,437 | 21,249 | 25,392 | |||||||||
Cash paid | $ | 879 | $ | 809 | $ | 600 |
Year Ending September 30, | ||||
2010 | $ | 48,266 | ||
2011 | 39,695 | |||
2012 | 32,899 | |||
2013 | 26,888 | |||
2014 | 19,675 | |||
Thereafter | 55,305 | |||
Total minimum operating lease payments | $ | 222,728 | ||
F-22
F-23
F-24
2009 | 2008 | |||||||
Litigation, property and casualty liabilities | $ | 17,972 | $ | 27,831 | ||||
Taxes other than income taxes | 5,537 | 6,411 | ||||||
Propane exchange liabilities | 9,795 | 12,583 | ||||||
Deferred tank fee revenue | 12,225 | 12,470 | ||||||
Other | 10,256 | 9,347 | ||||||
Total other current liabilities | $ | 55,785 | $ | 68,642 | ||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Derivative financial instruments: | ||||||||||||||||
Assets | $ | — | $ | 15,250 | $ | — | $ | 15,250 | ||||||||
Liabilities | $ | — | $ | (19,284 | ) | $ | — | $ | (19,284 | ) |
F-25
F-26
Derivative Assets | Derivative (Liabilities) | |||||||||||||||
Balance Sheet | Fair | Balance Sheet | Fair | |||||||||||||
As of September 30, 2009 | Location | Value | Location | Value | ||||||||||||
Derivatives Designated as Hedging Instruments: | ||||||||||||||||
Propane contracts | Derivative financial instruments and Other assets | $ | 11,730 | |||||||||||||
Interest rate contracts | Derivative financial instruments | 2,249 | Derivative financial instruments | $ | (18,131 | ) | ||||||||||
Total Derivatives Designated as Hedging Instruments | $ | 13,979 | $ | (18,131 | ) | |||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||
Propane contracts | Derivative financial instruments | $ | 1,271 | Derivative financial instruments | $ | (1,153 | ) | |||||||||
Total Derivatives Not Designated as Hedging Instruments | $ | 1,271 | $ | (1,153 | ) | |||||||||||
Total Derivatives | $ | 15,250 | $ | (19,284 | ) | |||||||||||
Location of | ||||||||||||
Loss | Loss | Loss | ||||||||||
Recognized in | Reclassified from | Reclassified from | ||||||||||
AOCI and Noncontrolling | AOCI and Noncontrolling | AOCI and Noncontrolling | ||||||||||
Fiscal 2009: | Interests | Interests into Income | Interests into Income | |||||||||
Cash Flow Hedges: | ||||||||||||
Propane contracts | $ | (128,214 | ) | Cost of sales | $ | (193,364 | ) | |||||
Interest rate contracts | (10,104 | ) | Interest expense / other income | (2,487 | ) | |||||||
Total | $ | (138,318 | ) | $ | (195,851 | ) | ||||||
F-27
(Thousands of dollars, except per unit amounts)
Asset (Liability) | ||||||||
Carrying | Estimated | |||||||
Amount | Fair Value | |||||||
2009: | ||||||||
Derivative financial instruments | $ | (4,034 | ) | $ | (4,034 | ) | ||
Long-term debt | (865,644 | ) | (836,561 | ) | ||||
2008: | ||||||||
Derivative financial instruments | $ | (59,796 | ) | $ | (59,796 | ) | ||
Long-term debt | (933,390 | ) | (863,550 | ) |
2009 | 2008 | 2007 | ||||||||||
Gains on sales of fixed assets (a) | $ | 2,795 | $ | 1,698 | $ | 862 | ||||||
Finance charges | 11,717 | 11,822 | 10,208 | |||||||||
Other | 1,493 | 5,335 | 6,502 | |||||||||
Total other income, net | $ | 16,005 | $ | 18,855 | $ | 17,572 | ||||||
(a) | Excludes gains on sales of LPG storage facilities in Fiscal 2009 and Fiscal 2007 of $39,887 and $46,117, respectively (seeNote 5) |
F-28
(Thousands of dollars, except per unit amounts)
December 31, | March 31, | June 30, | September 30, | |||||||||||||||||||||||||||||
2008 (a) | 2007 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | |||||||||||||||||||||||||
Revenues | $ | 727,064 | $ | 748,168 | $ | 823,377 | $ | 1,006,656 | $ | 372,677 | $ | 535,129 | $ | 336,977 | $ | 525,236 | ||||||||||||||||
Operating income (loss) | $ | 144,766 | $ | 73,958 | $ | 168,115 | $ | 153,287 | $ | 4,329 | $ | 9,585 | $ | (16,667 | ) | $ | (1,966 | ) | ||||||||||||||
Net income (loss) | $ | 125,404 | $ | 55,035 | $ | 149,546 | $ | 134,506 | $ | (13,522 | ) | $ | (8,726 | ) | $ | (33,818 | ) | $ | (20,509 | ) | ||||||||||||
Net income (loss) attributable to AmeriGas Partners, L.P. | $ | 123,963 | $ | 54,305 | $ | 147,835 | $ | 132,950 | $ | (13,525 | ) | $ | (8,788 | ) | $ | (33,630 | ) | $ | (20,448 | ) | ||||||||||||
Income (loss) per limited partner unit — basic and diluted (b) | $ | 1.50 | $ | 0.87 | $ | 1.71 | $ | 1.58 | $ | (0.29 | ) | $ | (0.16 | ) | $ | (0.59 | ) | $ | (0.36 | ) |
(a) | Includes gain on sale of the Partnership’s California storage facility which increased operating income by $39,887 and net income attributable to AmeriGas Partners, L.P. by $39,484 (see Note 5). |
(b) | Theoretical distributions of net income attributable to AmeriGas Partners, L.P. in accordance with accounting guidance regarding the application of the two-class method for determining earnings per share resulted in an increased allocation of net income attributable to AmeriGas Partners, L.P. to the General Partner in the computation of income per limited partner unit which had the effect of decreasing quarterly earnings per limited partner unit for the quarters ended December 31 and March 31 and (increasing) decreasing quarterly loss per limited partner unit for the quarters ended June 30, 2009 and September 30, 2009 as follows: |
Quarter ended: | December 31, | March 31, | ||||||||||||||
2008 | 2007 | 2009 | 2008 | |||||||||||||
Decrease in income per limited partner unit | $ | (0.65 | ) | $ | (0.07 | ) | $ | (0.85 | ) | $ | (0.73 | ) | ||||
June 30, | September 30, | |||||||||||||||
2009 | 2009 | |||||||||||||||
(Increase) decrease in loss per limited partner unit | $ | (0.05 | ) | $ | 0.05 |
F-29
(Thousands of dollars)
September 30, | ||||||||
2009 | 2008 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash | $ | 965 | $ | 959 | ||||
Total current assets | 965 | 959 | ||||||
Investment in AmeriGas Propane, L.P. | 1,161,091 | 1,043,285 | ||||||
Other assets | 7,010 | 8,207 | ||||||
Total assets | $ | 1,169,066 | $ | 1,052,451 | ||||
LIABILITIES AND PARTNERS’ CAPITAL | ||||||||
Current liabilities: | ||||||||
Accounts payable and other liabilities | $ | 4,391 | $ | 4,812 | ||||
Accrued interest | 20,496 | 20,496 | ||||||
Total current liabilities | 24,887 | 25,308 | ||||||
Long-term debt | 779,720 | 779,768 | ||||||
Commitments and contingencies (Note 1) | ||||||||
Partners’ capital: | ||||||||
Common unitholders | 367,708 | 308,186 | ||||||
General partner | 3,698 | 3,094 | ||||||
Accumulated other comprehensive loss | (6,947 | ) | (63,905 | ) | ||||
Total partners’ capital | 364,459 | 247,375 | ||||||
Total liabilities and partners’ capital | $ | 1,169,066 | $ | 1,052,451 | ||||
S-1
SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY)
(Thousands of dollars)
Year | ||||||||||||
Ended | ||||||||||||
September 30, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Operating (income) expenses, net | $ | (337 | ) | $ | (49 | ) | $ | 78 | ||||
Interest expense | (58,003 | ) | (58,003 | ) | (58,006 | ) | ||||||
Loss before income taxes | (58,340 | ) | (58,052 | ) | (57,928 | ) | ||||||
Income tax expense | — | 3 | 30 | |||||||||
Loss before equity in income of AmeriGas Propane, L.P. | (58,340 | ) | (58,055 | ) | (57,958 | ) | ||||||
Equity in income of AmeriGas Propane, L.P. | 282,983 | 216,074 | 248,742 | |||||||||
Net income | $ | 224,643 | $ | 158,019 | $ | 190,784 | ||||||
General partner’s interest in net income | $ | 6,737 | $ | 2,278 | $ | 5,600 | ||||||
Limited partners’ interest in net income | $ | 217,906 | $ | 155,741 | $ | 185,184 | ||||||
Income per limited partner unit — basic and diluted: | $ | 3.59 | $ | 2.70 | $ | 3.15 | ||||||
Average limited partner units outstanding — basic (thousands) | 57,038 | 57,005 | 56,826 | |||||||||
Average limited partner units outstanding — diluted (thousands) | 57,082 | 57,044 | 56,862 | |||||||||
S-2
SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY)
(Thousands of dollars)
Year | ||||||||||||
Ended | ||||||||||||
September 30, | ||||||||||||
2009 | 2008 | 2007 (b) | ||||||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES (a) | $ | 165,616 | $ | 144,664 | $ | 152,752 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
Contributions to AmeriGas Propane, L.P. | — | — | (264 | ) | ||||||||
Net cash used by investing activities | — | — | (264 | ) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
Distributions | (165,282 | ) | (144,659 | ) | (154,672 | ) | ||||||
Proceeds from issuance of Common Units, net of tax withheld | (338 | ) | 766 | 814 | ||||||||
Capital contribution from General Partner | 10 | 8 | 66 | |||||||||
Net cash used by financing activities | (165,610 | ) | (143,885 | ) | (153,792 | ) | ||||||
Increase (decrease) in cash and cash equivalents | $ | 6 | $ | 779 | $ | (1,304 | ) | |||||
CASH AND CASH EQUIVALENTS: | ||||||||||||
End of year | $ | 965 | $ | 959 | $ | 180 | ||||||
Beginning of year | 959 | 180 | 1,484 | |||||||||
Increase (decrease) | $ | 6 | $ | 779 | $ | (1,304 | ) | |||||
(a) | Includes distributions received from AmeriGas Propane, L.P. of $221,607, $200,983 and $210,996 for the years ended September 30, 2009, 2008 and 2007, respectively. | |
(b) | During the year ended September 30, 2007, the Partnership issued Common Units to the General Partner at a price of $34.28 per Common Unit in consideration for the retention of certain income tax liabilities relating to the acquisition of All Star Gas Corporation. |
S-3
(Thousands of dollars)
Charged | ||||||||||||||||
Balance at | (credited) | Balance at | ||||||||||||||
beginning | to costs and | end of | ||||||||||||||
of year | expenses | Other | year | |||||||||||||
Year Ended September 30, 2009 | ||||||||||||||||
Reserves deducted from assets in the consolidated balance sheet: | ||||||||||||||||
Allowance for doubtful accounts | $ | 20,215 | $ | 9,345 | $ | (16,321 | )(1) | $ | 13,239 | |||||||
Other reserves: | ||||||||||||||||
Property and casualty liability | $ | 71,172 | $ | 20,482 | $ | (29,398 | )(2) | $ | 62,658 | (5) | ||||||
402 | (3) | |||||||||||||||
Environmental, litigation and other | $ | 14,481 | $ | 7,867 | $ | (968 | )(2) | $ | 21,660 | |||||||
280 | (3) | |||||||||||||||
Year Ended September 30, 2008 | ||||||||||||||||
Reserves deducted from assets in the consolidated balance sheet: | ||||||||||||||||
Allowance for doubtful accounts | $ | 15,149 | $ | 15,852 | $ | (10,786 | )(1) | $ | 20,215 | |||||||
Other reserves: | ||||||||||||||||
Property and casualty liability | $ | 57,714 | $ | 31,498 | $ | (18,040 | )(2) | $ | 71,172 | (5) | ||||||
Environmental, litigation and other | $ | 12,056 | $ | 4,559 | $ | (2,280 | )(2) | $ | 14,481 | |||||||
146 | (3) |
S-4
(Thousands of dollars)
Charged | ||||||||||||||||
Balance at | (credited) | Balance at | ||||||||||||||
beginning | to costs and | end of | ||||||||||||||
of year | expenses | Other | year | |||||||||||||
Year Ended September 30, 2007 | ||||||||||||||||
Reserves deducted from assets in the consolidated balance sheet: | ||||||||||||||||
Allowance for doubtful accounts | $ | 14,460 | $ | 9,544 | $ | (10,131 | )(1) | $ | 15,149 | |||||||
1,276 | (4) | |||||||||||||||
Other reserves: | ||||||||||||||||
Property and casualty liability | $ | 58,550 | $ | 10,987 | $ | (11,823 | )(2) | $ | 57,714 | (5) | ||||||
Environmental, litigation and other | $ | 12,680 | $ | 90 | $ | (685 | )(2) | $ | 12,056 | |||||||
(29 | )(3) |
(1) | Uncollectible accounts written off, net of recoveries | |
(2) | Payments, net of any refunds | |
(3) | Other adjustments, primarily reclassifications | |
(4) | Acquisitions | |
(5) | At September 30, 2009, 2008, and 2007, the Partnership had insurance indemnification receivables associated with its property and casualty liabilities totaling $241, $17,926, and $0, respectively. |
S-5