Variable Interest Entities (Tables)

12 Months Ended

Dec. 31, 2013

Variable Interest Entities

Schedule of misstatement impact on consolidated balance sheet

The impact of the misstatement is shown in the tables below (in thousands).

	December 31, 2012
Balance Sheet	As previously reported			As restated
Cash and cash equivalents	$	347,899		$	345,756
Receivables, net		198,769			197,977
Other current assets		35,053			34,871
Total current assets		656,639			653,522
Property, plant and equipment		5,700,176			5,542,316
Less: accumulated depreciation		(624,548	)		(602,698	)
Total property, plant and equipment, net		5,075,628			4,939,618
Investment in unconsolidated affiliates		31,179			63,054
Other long-term assets		2,242			2,140
Total assets		6,835,716			6,728,362
Accounts payable		320,645			320,627
Accrued liabilities		391,352			390,178
Total current liabilities		739,226			738,034
Deferred income taxes		191,318			189,428
Other long-term liabilities		134,340			134,261
Common units		2,134,714			2,097,404
Non-controlling interest in consolidated subsidiaries		328,346			261,463
Total equity		3,215,591			3,111,398
Total liabilities and equity		6,835,716			6,728,362

Schedule of misstatement impact on consolidated statement of operations

	Year ended December 31, 2012				Year ended December 31, 2011
Statement of Operations	As previously reported		As restated		As previously reported			As restated
Revenue	$	1,395,231	$	1,383,279	$	1,534,434		$	1,522,592
Total revenue		1,451,766		1,439,814		1,505,399			1,493,557
Facility expenses		208,385		206,861		173,598			171,497
Selling, general and administrative expenses		94,116		93,444		81,229			80,441
Depreciation		189,549		183,250		149,954			143,704
Accretion of asset retirement obligations		677		672		1,190			1,185
Total operating expenses		1,070,038		1,061,538		1,187,235			1,178,091
Income from operations		381,728		378,276		318,164			315,466
Earnings from unconsolidated affiliates		699		2,328		(1,095	)		158
Income before provision for income tax		257,116		255,293		119,894			118,449
Net income		218,788		216,965		106,245			104,800
Net loss (income) attributable to non-controlling interest		1,614		3,437		(45,550	)		(44,105	)

Schedule of misstatement impact on consolidated statement of cash flows

	Year ended December 31, 2012						Year ended December 31, 2011
Statement of Cash Flows	As previously reported			As restated			As previously reported			As restated
Cash flows from operating activities:
Net income	$	218,788		$	216,965		$	106,245		$	104,800
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		189,549			183,250			149,954			143,704
Accretion of asset retirement obligations		677			672			1,190			1,185
Equity in (earnings) loss of unconsolidated affiliates		(699	)		(2,328	)		1,095			(158	)
Distributions from unconsolidated affiliates		2,600			8,416			300			4,382
Receivables		32,588			31,993			(45,463	)		(45,107	)
Other current assets		(23,115	)		(23,285	)		(3,728	)		(3,557	)
Accounts payable and accrued liabilities		28,412			28,417			54,745			54,795
Other long-term assets		(647	)		(647	)		(307	)		(308	)
Net cash provided by operating activities		496,713			492,013			414,698			410,403
Cash flows from investing activities:
Capital expenditures		(1,951,427	)		(1,950,324	)		(551,281	)		(550,839	)
Investment in unconsolidated affiliates		(5,227	)		(6,066	)		—			—
Net cash flows used in investing activities		(2,472,352	)		(2,472,088	)		(776,553	)		(776,111	)
Cash flows from financing activities:
Contributions from non-controlling interest		265,620			264,781			126,392			126,392
Payment of distributions to non-controlling interest		(5,887	)		(71	)		(66,887	)		(62,805	)
Net cash flows provided by financing activities		2,206,522			2,211,499			411,421			415,503
Net increase in cash and cash equivalents		230,883			231,424			49,566			49,795
Cash and cash equivalents at beginning of year		117,016			114,332			67,450			64,537
Cash and cash equivalents at end of period		347,899			345,756			117,016			114,332

Schedule of misstatement impact on consolidated statement of changes in equity

	Common Units						Non-controlling Interest						Total Equity
Statement of Changes in Equity	As previously reported			As restated			As previously reported			As restated			As previously reported			As restated
December 31, 2010	$	993,049		$	957,452		$	465,517		$	392,842		$	1,458,566		$	1,350,294
Distributions paid		(218,398	)		(218,398	)		(66,887	)		(62,805	)		(285,285	)		(281,203	)
Deferred income tax impact from changes in equity.		(62,227	)		(63,417	)		—			—			(62,227	)		(63,417	)
Net income		60,695			60,695			45,550			44,105			106,245			104,800
December 31, 2011		679,309			642,522			70,227			189			1,502,067			1,395,242
Distributions paid		(339,967	)		(339,967	)		(5,887	)		(71	)		(345,854	)		(340,038	)
Contributions from non-controlling interest		—			—			265,620			264,782			265,620			264,782
Deferred income tax impact from changes in equity.		(66,566	)		(67,089	)		—			—			(66,566	)		(67,089	)
Net income		220,402			220,402			(1,614	)		(3,437	)		218,788			216,965
December 31, 2012		2,134,714			2,097,404			328,346			261,463			3,215,591			3,111,398

Net income (loss) attributable to the Partnership and transfers to the non-controlling interest

 The following table summarizes the effect of the change of ownership interest of MarkWest Liberty Midstream on the equity attributable to the Partnership's common units for the year ended December 31, 2011 (in thousands):

Net income attributable to the Partnership's unitholders	$	60,695
Transfers to the non-controlling interests:
Decrease in common unit equity for 2011 acquisition of equity interest in MarkWest Liberty Midstream, net of $51,321 income tax benefit		(1,194,865	)
Decrease in common unit equity for transaction costs related to 2011 acquisition of equity interest in MarkWest Liberty Midstream		(3,600	)
Net (loss) income attributable to the Partnership and transfers to the non-controlling interest	$	(1,137,770	)