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Supplemental Condensed Consolidating Financial Information (Tables)
12 Months Ended
Dec. 31, 2013
Supplemental Condensed Consolidating Financial Information  
Schedule of condensed consolidating balance sheets

Condensed consolidating financial information for MarkWest Energy Partners and its combined guarantor and combined non-guarantor subsidiaries as of December 31, 2013 and 2012 and for the years ended December 31, 2013, 2012 and 2011 is as follows (in thousands):

Condensed Consolidating Balance Sheets

 
  As of December 31, 2013  
 
  Parent   Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Consolidating
Adjustments
  Consolidated  

ASSETS

                               

Current assets:

                               

Cash and cash equivalents

  $ 224   $ 79,363   $ 5,718   $   $ 85,305  

Restricted cash

            10,000         10,000  

Receivables and other current assets

    6,248     266,610     134,880         407,738  

Intercompany receivables

    1,194,955     78,010     125,115     (1,398,080 )    

Fair value of derivative instruments

        10,444     1,013         11,457  
                       

Total current assets

    1,201,427     434,427     276,726     (1,398,080 )   514,500  

Total property, plant and equipment, net

    5,379     2,149,845     5,622,602     (84,657 )   7,693,169  

Other long-term assets:

                               

Restricted cash

            10,000         10,000  

Investment in unconsolidated affiliates

        75,627             75,627  

Investment in consolidated affiliates

    5,741,374     4,541,617         (10,282,991 )    

Intangibles, net of accumulated amortization

        595,995     278,797         874,792  

Fair value of derivative instruments

        505             505  

Intercompany notes receivable

    151,200             (151,200 )    

Other long-term assets

    52,338     92,276     83,216         227,830  
                       

Total assets

  $ 7,151,718   $ 7,890,292   $ 6,271,341   $ (11,916,928 ) $ 9,396,423  
                       
                       

LIABILITIES AND EQUITY

                               

Current liabilities:

                               

Intercompany payables

  $   $ 1,315,707   $ 82,373   $ (1,398,080 ) $  

Fair value of derivative instruments

        26,382     2,456         28,838  

Other current liabilities

    58,110     199,146     583,810     (2,131 )   838,935  
                       

Total current liabilities

    58,110     1,541,235     668,639     (1,400,211 )   867,773  

Deferred income taxes

    3,407     284,159             287,566  

Long-term intercompany financing payable

        151,200     97,461     (248,661 )    

Fair value of derivative instruments

        27,763             27,763  

Long-term debt, net of discounts

    3,023,071                 3,023,071  

Other long-term liabilities

    3,745     144,561     8,194         156,500  

Redeemable non-controlling interest

   
   
   
   
235,617
   
235,617
 

Equity:

   
 
   
 
   
 
   
 
   
 
 

Common Units

    3,461,360     5,741,374     5,497,047     (11,223,486 )   3,476,295  

Class B Units

    602,025                 602,025  

Non-controlling interest in consolidated subsidiaries

                719,813     719,813  
                       

Total equity

    4,063,385     5,741,374     5,497,047     (10,503,673 )   4,798,133  
                       

Total liabilities and equity

  $ 7,151,718   $ 7,890,292   $ 6,271,341   $ (11,916,928 ) $ 9,396,423  
                       
                       

 

 
  As of December 31, 2012  
 
  Parent   Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Consolidating
Adjustments
  Consolidated  

ASSETS

                               

Current assets:

                               

Cash and cash equivalents

  $ 210,015   $ 102,979   $ 32,762   $   $ 345,756  

Restricted cash

            25,500         25,500  

Receivables and other current assets

    9,191     178,913     74,658         262,762  

Intercompany receivables

    812,562     18,472     32,656     (863,690 )    

Fair value of derivative instruments

        18,389     1,115         19,504  
                       

Total current assets

    1,031,768     318,753     166,691     (863,690 )   653,522  

Total property, plant and equipment, net

    3,542     1,999,474     3,032,121     (95,519 )   4,939,618  

Other long-term assets:

                               

Restricted cash

            10,000         10,000  

Investment in unconsolidated affiliates

        63,054             63,054  

Investment in consolidated affiliates

    4,104,473     2,719,920         (6,824,393 )    

Intangibles, net of accumulated amortization

        559,320     295,835         855,155  

Fair value of derivative instruments

        10,878             10,878  

Intercompany notes receivable

    225,000             (225,000 )    

Other long-term assets

    50,866     70,009     75,260         196,135  
                       

Total assets

  $ 5,415,649   $ 5,741,408   $ 3,579,907   $ (8,008,602 ) $ 6,728,362  
                       
                       

LIABILITIES AND EQUITY

                               

Current liabilities:

                               

Intercompany payables

  $ 461   $ 839,543   $ 23,686   $ (863,690 ) $  

Fair value of derivative instruments

        27,062     167         27,229  

Other current liabilities

    42,301     197,934     472,462     (1,892 )   710,805  
                       

Total current liabilities

    42,762     1,064,539     496,315     (865,582 )   738,034  

Deferred income taxes

    2,906     186,522             189,428  

Long-term intercompany financing payable

        225,000     99,592     (324,592 )    

Fair value of derivative instruments

        32,190             32,190  

Long-term debt, net of discounts

    2,523,051                 2,523,051  

Other long-term liabilities

    2,959     128,684     2,618         134,261  

Equity:

                               

Common Units

    2,091,440     4,104,473     2,981,382     (7,079,891 )   2,097,404  

Class B Units

    752,531                 752,531  

Non-controlling interest in consolidated subsidiaries

                261,463     261,463  
                       

Total equity

    2,843,971     4,104,473     2,981,382     (6,818,428 )   3,111,398  
                       

Total liabilities and equity

  $ 5,415,649   $ 5,741,408   $ 3,579,907   $ (8,008,602 ) $ 6,728,362  
                       
                       
Schedule of condensed consolidating statements of operations

Condensed Consolidating Statements of Operations

 
  Year ended December 31, 2013  
 
  Parent   Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Consolidating
Adjustments
  Consolidated  

Total revenue

  $   $ 1,161,145   $ 550,181   $ (48,879 ) $ 1,662,447  

Operating expenses:

                               

Purchased product costs

        588,670     100,758         689,428  

Facility expenses

        148,492     146,649     (1,203 )   293,938  

Selling, general and administrative expenses

    46,732     29,855     32,512     (7,550 )   101,549  

Depreciation and amortization

    847     183,610     185,810     (5,739 )   364,528  

Other operating expenses

        4,907     (39,926 )   2,080     (32,939 )
                       

Total operating expenses

    47,579     955,534     425,803     (12,412 )   1,416,504  
                       

(Loss) income from operations

    (47,579 )   205,611     124,378     (36,467 )   245,943  

Earnings from consolidated affiliates

    276,995     110,763         (387,758 )    

Loss on redemption of debt

    (38,455 )               (38,455 )

Other expense, net

    (161,975 )   (26,749 )   (11,247 )   45,597     (154,374 )
                       

Income before provision for income tax

    28,986     289,625     113,131     (378,628 )   53,114  

Provision for income tax expense

    (39 )   (12,630 )           (12,669 )
                       

Net income

    28,947     276,995     113,131     (378,628 )   40,445  

Net income attributable to non-controlling interest

                (2,368 )   (2,368 )
                       

Net income attributable to the Partnership's unitholders

  $ 28,947   $ 276,995   $ 113,131   $ (380,996 ) $ 38,077  
                       
                       

 

 
  Year ended December 31, 2012  
 
  Parent   Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Consolidating
Adjustments
  Consolidated  

Total revenue

  $   $ 1,125,368   $ 324,738   $ (10,292 ) $ 1,439,814  

Operating expenses:

                               

Purchased product costs

        441,853     74,513         516,366  

Facility expenses

        137,261     71,138     (167 )   208,232  

Selling, general and administrative expenses

    48,949     19,069     29,674     (4,248 )   93,444  

Depreciation and amortization

    607     164,858     75,599     (4,494 )   236,570  

Other operating expenses

    2     4,341     2,583         6,926  
                       

Total operating expenses

    49,558     767,382     253,507     (8,909 )   1,061,538  
                       

(Loss) income from operations

    (49,558 )   357,986     71,231     (1,383 )   378,276  

Earnings from consolidated affiliates

    366,460     66,114         (432,574 )    

Other expense, net

    (118,563 )   (21,001 )   (8,554 )   25,135     (122,983 )
                       

Income before provision for income tax

    198,339     403,099     62,677     (408,822 )   255,293  

Provision for income tax expense

    (1,689 )   (36,639 )           (38,328 )
                       

Net income

    196,650     366,460     62,677     (408,822 )   216,965  

Net income attributable to non-controlling interest

                3,437     3,437  
                       

Net income attributable to the Partnership's unitholders

  $ 196,650   $ 366,460   $ 62,677   $ (405,385 ) $ 220,402  
                       
                       

 

 
  Year ended December 31, 2011  
 
  Parent   Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Consolidating
Adjustments
  Consolidated  

Total revenue

  $   $ 1,241,442   $ 252,115   $   $ 1,493,557  

Operating expenses:

                               

Purchased product costs

        651,132     84,198         735,330  

Facility expenses

        128,612     36,405         165,017  

Selling, general and administrative expenses

    46,903     31,015     7,450     (4,927 )   80,441  

Depreciation and amortization

    719     151,362     35,948     (708 )   187,321  

Other operating expenses

    673     9,030     279         9,982  
                       

Total operating expenses

    48,295     971,151     164,280     (5,635 )   1,178,091  
                       

(Loss) income from operations

    (48,295 )   270,291     87,835     5,635     315,466  

Earnings from consolidated affiliates

    288,870     43,172         (332,042 )    

Loss on redemption of debt

    (78,996 )               (78,996 )

Other expense, net

    (91,612 )   (13,686 )   (558 )   (12,165 )   (118,021 )
                       

Income before provision for income tax

    69,967     299,777     87,277     (338,572 )   118,449  

Provision for income tax expense

    (2,742 )   (10,907 )           (13,649 )
                       

Net income

    67,225     288,870     87,277     (338,572 )   104,800  

Net income attributable to non-controlling interest

                (44,105 )   (44,105 )
                       

Net income attributable to the Partnership's unitholders          

  $ 67,225   $ 288,870   $ 87,277   $ (382,677 ) $ 60,695  
                       
                       
Schedule of condensed consolidating statements of cash flows

Condensed Consolidating Statements of Cash Flows

 
  Year ended December 31, 2013  
 
  Parent   Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Consolidating
Adjustments
  Consolidated  

Net cash (used in) provided by operating activities

  $ (178,266 ) $ 368,551   $ 222,107   $ 23,258   $ 435,650  

Cash flows from investing activities:

                               

Restricted cash

            15,500         15,500  

Capital expenditures

    (789 )   (182,339 )   (2,838,677 )   (25,151 )   (3,046,956 )

Equity investments

    (59,468 )   (2,200,000 )       2,259,468      

Acquisition of business, net of cash acquired

        (222,888 )           (222,888 )

Investment in unconsolidated affiliates

        (17,521 )           (17,521 )

Distributions from consolidated affiliates

    95,548     517,635         (613,183 )    

Investment in intercompany notes, net

    73,800             (73,800 )    

Proceeds from disposal of property, plant and equipment

        757     208,546         209,303  
                       

Net cash flows provided by (used in) investing activities

    109,091     (2,104,356 )   (2,614,631 )   1,547,334     (3,062,562 )
                       

Cash flows from financing activities:

                               

Proceeds from public equity offerings, net

    1,698,066                 1,698,066  

Proceeds from long-term debt

    1,000,000                 1,000,000  

Payments of long-term debt

    (501,112 )               (501,112 )

Payments related to intercompany financing, net

        (73,800 )   (1,893 )   75,693      

Payments of premiums on redemption of long-term debt

    (31,516 )               (31,516 )

Payments for debt issuance costs, deferred financing costs and registration costs

    (14,046 )               (14,046 )

Contributions from parent and affiliates

        59,468     2,200,000     (2,259,468 )    

Contribution from non-controlling interest

            685,219         685,219  

Payments of SMR liability

        (2,241 )           (2,241 )

Share-based payment activity

    (5,210 )               (5,210 )

Payment of distributions

    (462,488 )   (95,548 )   (517,846 )   613,183     (462,699 )

Intercompany advances, net

    (1,824,310 )   1,824,310              
                       

Net cash flows (used in) provided by financing activities

    (140,616 )   1,712,189     2,365,480     (1,570,592 )   2,366,461  
                       

Net decrease in cash and cash equivalents

    (209,791 )   (23,616 )   (27,044 )       (260,451 )

Cash and cash equivalents at beginning of year

    210,015     102,979     32,762         345,756  
                       

Cash and cash equivalents at end of period

  $ 224   $ 79,363   $ 5,718   $   $ 85,305  
                       
                       

 
  Year ended December 31, 2012  
 
  Parent   Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Consolidating
Adjustments
  Consolidated  

Net cash (used in) provided by operating activities

  $ (154,328 ) $ 468,671   $ 158,412   $ 19,258   $ 492,013  

Cash flows from investing activities:

                               

Restricted cash

            (9,497 )       (9,497 )

Capital expenditures

    (138 )   (304,190 )   (1,626,809 )   (19,187 )   (1,950,324 )

Equity investments

    (55,283 )   (1,880,279 )       1,935,562      

Acquisition of business, net of cash acquired

            (506,797 )       (506,797 )

Investment in unconsolidated affiliates

        (5,227 )       (839 )   (6,066 )

Distributions from consolidated affiliates

    75,431     140,362         (215,793 )    

Investment in intercompany notes, net

    (12,300 )           12,300      

Proceeds from disposal of property, plant and equipment

        1,732     77     (1,213 )   596  
                       

Net cash flows provided by (used in) investing activities

    7,710     (2,047,602 )   (2,143,026 )   1,710,830     (2,472,088 )
                       

Cash flows from financing activities:

                               

Proceeds from public equity offerings, net

    1,634,081                 1,634,081  

Proceeds from Credit Facility

    511,100                 511,100  

Payments of Credit Facility

    (577,100 )               (577,100 )

Proceeds from long-term debt

    742,613                 742,613  

Proceeds (payments) related to intercompany financing, net

        12,300     (1,142 )   (11,158 )    

Payments for debt issue costs and deferred financing costs

    (14,720 )               (14,720 )

Contributions from parent and affiliates

        55,283     1,879,440     (1,934,723 )    

Contribution from non-controlling interest

            264,781         264,781  

Payments of SMR liability

        (2,058 )           (2,058 )

Share-based payment activity

    (8,067 )   907             (7,160 )

Payment of distributions

    (339,967 )   (75,431 )   (140,433 )   215,793     (340,038 )

Intercompany advances, net

    (1,591,329 )   1,591,329              
                       

Net cash flows provided by financing activities

    356,611     1,582,330     2,002,646     (1,730,088 )   2,211,499  
                       

Net increase in cash and cash equivalents

    209,993     3,399     18,032         231,424  

Cash and cash equivalents at beginning of year

    22     99,580     14,730         114,332  
                       

Cash and cash equivalents at end of period

  $ 210,015   $ 102,979   $ 32,762   $   $ 345,756  
                       
                       

  Year ended December 31, 2011  
 
  Parent   Guarantor
Subsidiaries
  Non-Guarantor
Subsidiaries
  Consolidating
Adjustments
  Consolidated  

Net cash (used in) provided by operating activities

  $ (126,782 ) $ 414,844   $ 129,584   $ (7,243 ) $ 410,403  

Cash flows from investing activities:

                               

Restricted cash

            2,006         2,006  

Capital expenditures

    (789 )   (162,517 )   (399,550 )   12,017     (550,839 )

Acquisition of business

        (230,728 )           (230,728 )

Equity investments

    (47,295 )   (252,367 )       299,662      

Distributions from consolidated affiliates

    50,718     64,569         (115,287 )    

Investment in intercompany notes, net

    (37,990 )           37,990      

Proceeds from disposal of property, plant and equipment

        606     7,617     (4,773 )   3,450  
                       

Net cash flows used in investing activities

    (35,356 )   (580,437 )   (389,927 )   229,609     (776,111 )
                       

Cash flows from financing activities:

                               

Proceeds from public equity offerings, net

    1,095,488                 1,095,488  

Proceeds from Credit Facility

    1,182,200                 1,182,200  

Payments of Credit Facility

    (1,116,200 )               (1,116,200 )

Proceeds from long-term debt

    1,199,000                 1,199,000  

Payments of long-term debt

    (693,888 )               (693,888 )

Payments of premiums on redemption of long-term debt

    (71,377 )               (71,377 )

Proceeds related to intercompany financing, net

        14,990     23,000     (37,990 )    

Payments for debt issuance costs, deferred financing costs and registration costs

    (20,163 )               (20,163 )

Acquisition of non-controlling interest, including transaction costs

    (997,601 )               (997,601 )

Contributions from parents and affiliates

        47,295     252,367     (299,662 )    

Contributions from non-controlling interest

            126,392         126,392  

Payments of SMR Liability

        (1,875 )           (1,875 )

Share-based payment activity

    (6,354 )   1,084             (5,270 )

Payment of distributions

    (218,398 )   (50,718 )   (127,373 )   115,286     (281,203 )

Intercompany advances, net

    (190,547 )   190,547              
                       

Net cash flows provided by financing activities

    162,160     201,323     274,386     (222,366 )   415,503  
                       

Net decrease in cash

    22     35,730     14,043         49,795  

Cash and cash equivalents at beginning of year

        63,850     687         64,537  
                       

Cash and cash equivalents at end of period

  $ 22   $ 99,580   $ 14,730   $   $ 114,332