Supplemental Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2015

Supplemental Condensed Consolidating Financial Information

Schedule of condensed consolidating balance sheets

Condensed consolidating financial information for the Partnership and its combined guarantor and combined non-guarantor subsidiaries as of June 30, 2015 and December 31, 2014 and for the three and six months ended June 30, 2015 and 2014 is as follows (in thousands):

Condensed Consolidating Balance Sheets

	As of June 30, 2015
	Parent		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	2	$	45,160	$	—		$	45,162
Restricted cash	—		—		10,000		—			10,000
Receivables and other current assets	4,515		146,887		180,222		—			331,624
Receivables from unconsolidated affiliates, net	—		2,687		2,661		—			5,348
Intercompany receivables	934,388		18,214		47,131		(999,733		)	—
Fair value of derivative instruments	—		12,723		2,428		—			15,151
Total current assets	938,903		180,513		287,602		(999,733		)	407,285
Total property, plant and equipment, net	10,268		2,175,626		6,984,817		(34,900		)	9,135,811
Other long-term assets:
Investment in unconsolidated affiliates	—		85,091		813,672		(9,943		)	888,820
Investment in consolidated affiliates	8,117,920		7,005,652		—		(15,123,572		)	—
Intangibles, net of accumulated amortization	—		506,353		254,583		—			760,936
Fair value of derivative instruments	—		7,976		—		—			7,976
Intercompany notes receivable	231,400		—		—		(231,400		)	—
Other long-term assets	55,376		26,670		76,685		—			158,731
Total assets	$	9,353,867	$	9,987,881	$	8,417,359	$	(16,399,548	)	$	11,359,559
LIABILITIES AND EQUITY
Current liabilities:
Intercompany payables	$	1,948	$	976,097	$	21,688	$	(999,733	)	$	—
Fair value of derivative instruments	—		554		610		—			1,164
Payables to unconsolidated affiliates	12		40		11,957		—			12,009
Other current liabilities	51,194		174,805		247,355		(2,547		)	470,807
Total current liabilities	53,154		1,151,496		281,610		(1,002,280		)	483,980
Deferred income taxes	2,588		340,350		—		—			342,938
Fair value of derivative instruments	—		—		55		—			55
Long-term intercompany financing payable	—		231,400		93,750		(325,150		)	—
Long-term debt, net of discounts	4,540,663		—		—		—			4,540,663
Other long-term liabilities	8,453		146,715		7,954		—			163,122
Equity:
Common Units	4,297,490		8,117,920		8,033,990		(16,094,272		)	4,355,128
Class B Units	451,519		—		—		—			451,519
Non-controlling interest in consolidated subsidiaries	—		—		—		1,022,154			1,022,154
Total equity	4,749,009		8,117,920		8,033,990		(15,072,118		)	5,828,801
Total liabilities and equity	$	9,353,867	$	9,987,881	$	8,417,359	$	(16,399,548	)	$	11,359,559

	As of December 31, 2014
	Parent		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	—	$	108,887	$	—		$	108,887
Restricted cash	—		—		20,000		—			20,000
Receivables and other current assets	1,219		225,695		153,834		—			380,748
Receivables from unconsolidated affiliates, net	247		3,001		3,849		—			7,097
Intercompany receivables	633,994		24,683		178,109		(836,786		)	—
Fair value of derivative instruments	—		17,386		3,535		—			20,921
Total current assets	635,460		270,765		468,214		(836,786		)	537,653
Total property, plant and equipment, net	9,992		2,140,565		6,550,040		(47,697		)	8,652,900
Other long-term assets:
Investment in unconsolidated affiliates	—		82,616		733,226		(10,209		)	805,633
Investment in consolidated affiliates	7,990,532		6,500,008		—		(14,490,540		)	—
Intangibles, net of accumulated amortization	—		546,637		262,640		—			809,277
Fair value of derivative instruments	—		16,507		—		—			16,507
Intercompany notes receivable	186,100		—		—		(186,100		)	—
Other long-term assets	52,825		29,412		76,571		—			158,808
Total assets	$	8,874,909	$	9,586,510	$	8,090,691	$	(15,571,332	)	$	10,980,778
LIABILITIES AND EQUITY
Current liabilities:
Intercompany payables	$	3,287	$	729,714	$	103,787	$	(836,788	)	$	—
Payables to unconsolidated affiliates	—		—		8,621		—			8,621
Other current liabilities	69,552		177,269		386,821		(2,400		)	631,242
Total current liabilities	72,839		906,983		499,229		(839,188		)	639,863
Deferred income taxes	6,162		351,098		—		—			357,260
Long-term intercompany financing payable	—		186,100		95,061		(281,161		)	—
Long-term debt, net of discounts	3,621,404		—		—		—			3,621,404
Other long-term liabilities	8,794		151,797		8,421		—			169,012
Equity:
Common Units	4,714,191		7,990,532		7,487,980		(15,434,460		)	4,758,243
Class B Units	451,519		—		—		—			451,519
Non-controlling interest in consolidated subsidiaries	—		—		—		983,477			983,477
Total equity	5,165,710		7,990,532		7,487,980		(14,450,983		)	6,193,239
Total liabilities and equity	$	8,874,909	$	9,586,510	$	8,090,691	$	(15,571,332	)	$	10,980,778

Schedule of condensed consolidating statements of operations

Condensed Consolidating Statements of Operations

	Three months ended June 30, 2015
	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Total revenue	$	—		$	232,588		$	231,920		$	(4,880	)	$	459,628
Operating expenses:
Purchased product costs	—			120,299			5,248			—			125,547
Facility expenses	—			38,920			47,291			2,430			88,641
Selling, general and administrative expenses	14,013			13,715			10,860			(3,617		)	34,971
Depreciation and amortization	393			51,470			86,712			(1,070		)	137,505
Other operating expenses (income)	—			935			1,676			—			2,611
Total operating expenses	14,406			225,339			151,787			(2,257		)	389,275
(Loss) income from operations	(14,406		)	7,249			80,133			(2,623		)	70,353
Earnings from consolidated affiliates	73,192			63,113			—			(136,305		)	—
Loss on redemption of debt	(117,860		)	—			—			—			(117,860		)
Other expense, net	(53,898		)	(4,887		)	(1,926		)	10,370			(50,341		)
(Loss) income before provision for income tax	(112,972		)	65,475			78,207			(128,558		)	(97,848		)
Provision for income tax expense (benefit)	(3,740		)	(7,716		)	—			—			(11,456		)
Net income	(109,232		)	73,191			78,207			(128,558		)	(86,392		)
Net income attributable to non-controlling interest	—			—			—			(15,094		)	(15,094		)
Net (loss) income attributable to the Partnership’s unitholders	$	(109,232	)	$	73,191		$	78,207		$	(143,652	)	$	(101,486	)

	Three months ended June 30, 2014
	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Total revenue	$	—		$	318,408		$	209,800		$	(9,842	)	$	518,366
Operating expenses:
Purchased product costs	—			180,638			47,150			—			227,788
Facility expenses	—			42,567			44,311			(1,288		)	85,590
Selling, general and administrative expenses	10,760			7,795			12,416			(3,270		)	27,701
Depreciation and amortization	288			49,719			71,409			(1,373		)	120,043
Other operating expenses (income)	—			352			6,536			(5,270		)	1,618
Total operating expenses	11,048			281,071			181,822			(11,201		)	462,740
(Loss) income from operations	(11,048		)	37,337			27,978			1,359			55,626
Earnings from consolidated affiliates	54,074			18,928			—			(73,002		)	—
Other expense, net	(44,526		)	(5,382		)	(4,978		)	9,368			(45,518		)
Income before provision for income tax	(1,500		)	50,883			23,000			(62,275		)	10,108
Provision for income tax expense	251			(3,191		)	—			—			(2,940		)
Net income	(1,751		)	54,074			23,000			(62,275		)	13,048
Net income attributable to non-controlling interest	—			—			—			(4,071		)	(4,071		)
Net income attributable to the Partnership’s unitholders	$	(1,751	)	$	54,074		$	23,000		$	(66,346	)	$	8,977

	Six months ended June 30, 2015
	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Total revenue	$	—		$	473,913		$	463,847		$	(10,802	)	$	926,958
Operating expenses:
Purchased product costs	—			241,630			11,941			—			253,571
Facility expenses	—			76,920			98,176			5,361			180,457
Selling, general and administrative expenses	27,545			29,499			20,605			(8,043		)	69,606
Depreciation and amortization	717			102,414			171,934			(2,142		)	272,923
Other operating expenses (income)	—			1,564			429			—			1,993
Impairment expense	—			25,523			—			—			25,523
Total operating expenses	28,262			477,550			303,085			(4,824		)	804,073
(Loss) income from operations	(28,262		)	(3,637		)	160,762			(5,978		)	122,885
Earnings from consolidated affiliates	123,460			125,581			—			(249,041		)	—
Loss on redemption of debt	(117,860		)	—			—			—			(117,860		)
Other expense, net	(104,209		)	(10,486		)	(5,483		)	18,705			(101,473		)
(Loss) income before provision for income tax	(126,871		)	111,458			155,279			(236,314		)	(96,448		)
Provision for income tax expense (benefit)	(3,575		)	(12,002		)	—			—			(15,577		)
Net income	(123,296		)	123,460			155,279			(236,314		)	(80,871		)
Net income attributable to non-controlling interest	—			—			—			(29,698		)	(29,698		)
Net (loss) income attributable to the Partnership’s unitholders	$	(123,296	)	$	123,460		$	155,279		$	(266,012	)	$	(110,569	)

	Six months ended June 30, 2014
	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Total revenue	$	—		$	643,909		$	408,918		$	(21,985	)	$	1,030,842
Operating expenses:
Purchased product costs	—			345,821			85,733			—			431,554
Facility expenses	—			79,600			92,682			(3,255		)	169,027
Selling, general and administrative expenses	24,415			18,311			25,765			(5,500		)	62,991
Depreciation and amortization	568			98,839			141,222			(2,679		)	237,950
Other operating (income) expenses	—			193			6,770			(5,270		)	1,693
Total operating expenses	24,983			542,764			352,172			(16,704		)	903,215
(Loss) income from operations	(24,983		)	101,145			56,746			(5,281		)	127,627
Earnings from consolidated affiliates	121,784			41,317			—			(163,101		)	—
Other expense, net	(87,688		)	(11,480		)	(7,934		)	18,045			(89,057		)
Income before provision for income tax	9,113			130,982			48,812			(150,337		)	38,570
Provision for income tax expense	408			9,198			—			—			9,606
Net income	8,705			121,784			48,812			(150,337		)	28,964
Net income attributable to non-controlling interest	—			—			—			(7,495		)	(7,495		)
Net income attributable to the Partnership’s unitholders	$	8,705		$	121,784		$	48,812		$	(157,832	)	$	21,469

Schedule of condensed consolidating statements of cash flows

Condensed Consolidating Statements of Cash Flows

	Six months ended June 30, 2015
	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net cash (used in) provided by operating activities	$	(145,787	)	$	147,039		$	351,362		$	10,724		363,338
Cash flows from investing activities:
Restricted cash	—			—			10,000			—			10,000
Capital expenditures	(1,010		)	(121,624		)	(699,473		)	(10,955		)	(833,062		)
Equity investments in consolidated affiliates	(36,540		)	(674,134		)	—			710,674			—
Intercompany advances, net	(295,602		)	—			(12,426		)	308,028			—
Investment in unconsolidated affiliates	—			(7,071		)	(100,823		)	—			(107,894		)
Distributions from consolidated affiliates	34,736			301,130			—			(335,866		)	—
Investment in intercompany notes receivable, net	(45,300		)	—			—			45,300			—
Proceeds from disposal of property, plant and equipment	—			22			2,338			—			2,360
Net cash flows used in investing activities	(343,716		)	(501,677		)	(800,384		)	717,181			(928,596		)
Cash flows from financing activities:
Proceeds from public equity offerings, net	39,630			—			—			—			39,630
Proceeds from Credit Facility	1,260,600			—			—			—			1,260,600
Payments Credit Facility	(910,700		)	—			—			—			(910,700		)
Proceeds from long-term debt	1,848,875			—			—			—			1,848,875
Payments of long-term debt	(1,280,000		)	—			—			—			(1,280,000		)
Payments of premiums on redemption of long-term debt	(103,209		)	—			—			—			(103,209		)
Payments for debt issue costs and deferred financing costs	(20,270		)	—			—			—			(20,270		)
Payments related to intercompany financing, net	—			45,300			(1,164		)	(44,136		)	—
Proceeds from sale of equity interest in consolidated subsidiary	—			—			11,319			—			11,319
Contributions from non-controlling interest	—			—			26,689			—			26,689
Contributions from parent and affiliates	—			36,540			674,134			(710,674		)	—
Payments of SMR liability	—			(1,319		)	—			—			(1,319		)
Share-based payment activity	(6,117		)	—			—			—			(6,117		)
Payment of distributions	(339,306		)	(34,736		)	(325,683		)	335,760			(363,965		)
Intercompany advances, net	—			308,855			—			(308,855		)	—
Net cash flows provided by financing activities	489,503			354,640			385,295			(727,905		)	501,533
Net increase (decrease) in cash	—			2			(63,727		)	—			(63,725		)
Cash and cash equivalents at beginning of period	—			—			108,887			—			108,887
Cash and cash equivalents at end of period	$	—		$	2		$	45,160		$	—		$	45,162

	Six months ended June 30, 2014
	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net cash (used in) provided by operating activities	$	(97,223	)	$	263,284		$	187,138		$	3,624		$	356,823
Cash flows from investing activities:
Capital expenditures	(5,116		)	(108,203		)	(1,157,346		)	(4,658		)	(1,275,323		)
Equity investments in consolidated affiliates	(30,038		)	(1,090,000		)	—			1,120,038			—
Intercompany advances, net	(808,923		)	—			—			808,923			—
Investment in unconsolidated affiliates	—			(8,540		)	(67,514		)	—			(76,054		)
Distributions from consolidated affiliates	63,158			151,110			—			(214,268		)	—
Investment in intercompany notes, net	14,200			—			—			(14,200		)	—
Proceeds from disposal of property, plant and equipment	—			4,164			17,398			—			21,562
Proceeds from sale of equity interest in unconsolidated affiliate	—			—			324,657			—			324,657
Net cash flows used in investing activities	(766,719		)	(1,051,469		)	(882,805		)	1,695,835			(1,005,158		)
Cash flows from financing activities:
Proceeds from public equity offerings, net	711,837			—			—			—			711,837
Proceeds from Credit Facility	1,923,500			—			—			—			1,923,500
Payments Credit Facility	(1,482,300		)	—			—			—			(1,482,300		)
Payments related to intercompany financing, net	—			(14,200		)	(1,034		)	15,234			—
Payments for debt issuance costs, deferred financing costs and registration costs	(2,045		)	—			—			—			(2,045		)
Contributions from parent and affiliates	—			30,038			1,090,000			(1,120,038		)	—
Share-based payment activity	(8,943		)	—			—			—			(8,943		)
Payments of distributions	(278,316		)	(63,158		)	(151,200		)	214,268			(278,406		)
Payments of SMR liability	—			(1,201		)	—			—			(1,201		)
Intercompany advances, net	—			808,923			—			(808,923		)	—
Net cash flows provided by financing activities	863,733			760,402			937,766			(1,699,459		)	862,442
Net (decrease) increase in cash and cash equivalents	(209		)	(27,783		)	242,099			—			214,107
Cash and cash equivalents at beginning of period	224			79,363			5,718			—			85,305
Cash and cash equivalents at end of period	$	15		$	51,580		$	247,817		$	—		$	299,412