Supplemental Guarantor Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2016

Supplemental Guarantor Condensed Consolidating Financial Statements

Schedule of condensed consolidating balance sheets

Condensed Consolidating Balance Sheet

June 30, 2016

(In thousands)

	(Issuer)		Non-
	Guarantor		Guarantor
	Subsidiaries		Subsidiary		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	8,029	$	565	$	—	$	8,594
Accounts receivable, net		357,960		182		—		358,142
Accounts receivable - affiliates		3,892		80		(110)		3,862
Inventories		443,994		—		—		443,994
Brokerage margin deposits		39,363		—		—		39,363
Derivative assets		29,590		—		—		29,590
Prepaid expenses and other current assets		67,288		390		—		67,678
Total current assets		950,116		1,217		(110)		951,223
Property and equipment, net		1,173,484		33,755		—		1,207,239
Intangible assets, net		70,200		—		—		70,200
Goodwill		349,306		86,063		—		435,369
Other assets		38,938		—		—		38,938
Total assets	$	2,582,044	$	121,035	$	(110)	$	2,702,969
Liabilities and partners' equity
Current liabilities:
Accounts payable	$	286,538	$	269	$	—	$	286,807
Accounts payable - affiliates		80		30		(110)		—
Working capital revolving credit facility - current portion		218,800		—		—		218,800
Environmental liabilities - current portion		5,337		—		—		5,337
Trustee taxes payable		96,364		—		—		96,364
Accrued expenses and other current liabilities		48,278		193		—		48,471
Derivative liabilities		24,088		—		—		24,088
Total current liabilities		679,485		492		(110)		679,867
Working capital revolving credit facility - less current portion		150,000		—		—		150,000
Revolving credit facility		213,400		—		—		213,400
Senior notes		657,866		—		—		657,866
Environmental liabilities - less current portion		65,144		—		—		65,144
Financing obligations		152,371		—		—		152,371
Deferred tax liabilities		79,738		—		—		79,738
Other long-term liabilities		56,551		—		—		56,551
Total liabilities		2,054,555		492		(110)		2,054,937
Partners' equity
Global Partners LP equity		527,489		78,190		—		605,679
Noncontrolling interest		—		42,353		—		42,353
Total partners' equity		527,489		120,543		—		648,032
Total liabilities and partners' equity	$	2,582,044	$	121,035	$	(110)	$	2,702,969

Condensed Consolidating Balance Sheet

December 31, 2015

(In thousands)

	(Issuer)		Non-
	Guarantor		Guarantor
	Subsidiaries		Subsidiary		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	—	$	4,690	$	(3,574)	$	1,116
Accounts receivable, net		311,079		275		—		311,354
Accounts receivable - affiliates		2,745		746		(913)		2,578
Inventories		388,952		—		—		388,952
Brokerage margin deposits		31,327		—		—		31,327
Derivative assets		66,099		—		—		66,099
Prepaid expenses and other current assets		65,376		233		—		65,609
Total current assets		865,578		5,944		(4,487)		867,035
Property and equipment, net		1,203,251		39,432		—		1,242,683
Intangible assets, net		75,694		—		—		75,694
Goodwill		349,306		86,063		—		435,369
Other assets		42,894		—		—		42,894
Total assets	$	2,536,723	$	131,439	$	(4,487)	$	2,663,675
Liabilities and partners' equity
Current liabilities:
Cash overdraft	$	3,574	$	—	$	(3,574)	$	—
Accounts payable		303,242		539		—		303,781
Accounts payable - affiliates		746		167		(913)		—
Working capital revolving credit facility - current portion		98,100		—		—		98,100
Environmental liabilities - current portion		5,350		—		—		5,350
Trustee taxes payable		95,264		—		—		95,264
Accrued expenses and other current liabilities		59,742		586		—		60,328
Derivative liabilities		31,911		—		—		31,911
Total current liabilities		597,929		1,292		(4,487)		594,734
Working capital revolving credit facility - less current portion		150,000		—		—		150,000
Revolving credit facility		269,000		—		—		269,000
Senior notes		656,564		—		—		656,564
Environmental liabilities - less current portion		67,883		—		—		67,883
Financing obligations		89,790		—		—		89,790
Deferred tax liabilities		84,836		—		—		84,836
Other long-term liabilities		56,884		—		—		56,884
Total liabilities		1,972,886		1,292		(4,487)		1,969,691
Partners' equity
Global Partners LP equity		563,837		83,952		—		647,789
Noncontrolling interest		—		46,195		—		46,195
Total partners' equity		563,837		130,147		—		693,984
Total liabilities and partners' equity	$	2,536,723	$	131,439	$	(4,487)	$	2,663,675

Schedule of condensed consolidating statements of income

Condensed Consolidating Statement of Operations

Three Months EndedJune 30, 2016

(In thousands)

	(Issuer)		Non-
	Guarantor		Guarantor
	Subsidiaries		Subsidiary		Eliminations		Consolidated
Sales	$	2,145,425	$	1,067	$	(293)	$	2,146,199
Cost of sales		2,014,281		2,869		(293)		2,016,857
Gross profit		131,144		(1,802)		—		129,342
Costs and operating expenses:
Selling, general and administrative expenses		36,393		247		—		36,640
Operating expenses		74,857		1,034		—		75,891
Amortization expense		2,359		—		—		2,359
Net loss on sale and disposition of assets and impairment charges		2,530		—		—		2,530
Total costs and operating expenses		116,139		1,281		—		117,420
Operating income (loss)		15,005		(3,083)		—		11,922
Interest expense		(21,015)		—		—		(21,015)
Loss before income tax benefit		(6,010)		(3,083)		—		(9,093)
Income tax benefit		550		—		—		550
Net loss		(5,460)		(3,083)		—		(8,543)
Net loss attributable to noncontrolling interest		—		1,233		—		1,233
Net loss attributable to Global Partners LP		(5,460)		(1,850)		—		(7,310)
Less: General partners' interest in net loss, including incentive distribution rights		(49)		—		—		(49)
Limited partners' interest in net loss	$	(5,411)	$	(1,850)	$	—	$	(7,261)

Condensed Consolidating Statement of Operations

Three Months Ended June 30,2015

(In thousands)

	(Issuer)		Non-
	Guarantor		Guarantor
	Subsidiaries		Subsidiary		Eliminations		Consolidated
Sales	$	2,677,213	$	6,730	$	(3,855)	$	2,680,088
Cost of sales		2,537,435		2,320		(3,855)		2,535,900
Gross profit		139,778		4,410		—		144,188
Costs and operating expenses:
Selling, general and administrative expenses		44,760		631		—		45,391
Operating expenses		69,655		2,513		—		72,168
Amortization expense		2,793		277		—		3,070
Net loss on sale and disposition of assets and impairment charges		213		—		—		213
Total costs and operating expenses		117,421		3,421		—		120,842
Operating income (loss)		22,357		989		—		23,346
Interest expense		(16,451)		—		—		(16,451)
Income before income tax benefit		5,906		989		—		6,895
Income tax benefit		719		—		—		719
Net income		6,625		989		—		7,614
Net income attributable to noncontrolling interest		—		(396)		—		(396)
Net income attributable to Global Partners LP		6,625		593		—		7,218
Less: General partners' interest in net income, including incentive distribution rights		2,671		—		—		2,671
Limited partners' interest in net income	$	3,954	$	593	$	—	$	4,547

Condensed Consolidating Statement of Operations

Six Months Ended June 30, 2016

(In thousands)

	(Issuer)		Non-
	Guarantor		Guarantor
	Subsidiaries		Subsidiary		Eliminations		Consolidated
Sales	$	3,895,706	$	3,701	$	(2,396)	$	3,897,011
Cost of sales		3,634,297		5,709		(2,396)		3,637,610
Gross profit		261,409		(2,008)		—		259,401
Costs and operating expenses:
Selling, general and administrative expenses		71,144		480		—		71,624
Operating expenses		145,506		2,621		—		148,127
Amortization expense		4,868		—		—		4,868
Net loss on sale and disposition of assets and impairment charges		8,635		—		—		8,635
Total costs and operating expenses		230,153		3,101		—		233,254
Operating income (loss)		31,256		(5,109)		—		26,147
Interest expense		(43,995)		—		—		(43,995)
Loss before income tax benefit		(12,739)		(5,109)		—		(17,848)
Income tax benefit		1,470		—		—		1,470
Net loss		(11,269)		(5,109)		—		(16,378)
Net loss attributable to noncontrolling interest		—		2,044		—		2,044
Net loss attributable to Global Partners LP		(11,269)		(3,065)		—		(14,334)
Less: General partners' interest in net loss, including incentive distribution rights		(96)		—		—		(96)
Limited partners' interest in net loss	$	(11,173)	$	(3,065)	$	—	$	(14,238)

Condensed Consolidating Statement of Operations

Six Months Ended June 30, 2015

(In thousands)

	(Issuer)		Non-
	Guarantor		Guarantor
	Subsidiaries		Subsidiary		Eliminations		Consolidated
Sales	$	5,652,398	$	14,780	$	(7,974)	$	5,659,204
Cost of sales		5,349,908		4,524		(7,974)		5,346,458
Gross profit		302,490		10,256		—		312,746
Costs and operating expenses:
Selling, general and administrative expenses		92,787		1,390		—		94,177
Operating expenses		135,971		4,853		—		140,824
Amortization expense		5,379		3,032		—		8,411
Net loss on sale and disposition of assets and impairment charges		650		—		—		650
Total costs and operating expenses		234,787		9,275		—		244,062
Operating income (loss)		67,703		981		—		68,684
Interest expense		(30,409)		(5)		—		(30,414)
Income before income tax expense		37,294		976		—		38,270
Income tax expense		(247)		—		—		(247)
Net income		37,047		976		—		38,023
Net income attributable to noncontrolling interest		—		(390)		—		(390)
Net income attributable to Global Partners LP		37,047		586		—		37,633
Less: General partners' interest in net income, including incentive distribution rights		4,850		—		—		4,850
Limited partners' interest in net income	$	32,197	$	586	$	—	$	32,783

Schedule of condensed consolidating statements of cash flows

Condensed Consolidating Statement Cash Flows

Six Months Ended June 30, 2016

(In thousands)

	(Issuer)		Non-
	Guarantor		Guarantor
	Subsidiaries		Subsidiary		Consolidated
Cash flows from operating activities
Net cash used in (provided by) operating activities	$	(60,344)	$	361	$	(59,983)
Cash flows from investing activities
Capital expenditures		(38,846)		—		(38,846)
Proceeds from sale of property and equipment		11,673		9		11,682
Net cash (used in) provided by investing activities		(27,173)		9		(27,164)
Cash flows from financing activities
Net borrowings from working capital revolving credit facility		120,700		—		120,700
Net payments on revolving credit facility		(55,600)		—		(55,600)
Proceeds from sale-leaseback, net		62,476		—		62,476
Distribution to noncontrolling interest		2,697		(4,495)		(1,798)
Distributions to partners		(31,153)		—		(31,153)
Net cash provided by (used in) financing activities		99,120		(4,495)		94,625
Cash and cash equivalents
Increase (decrease) in cash and cash equivalents		11,603		(4,125)		7,478
Cash and cash equivalents at beginning of period		(3,574)		4,690		1,116
Cash and cash equivalents at end of period	$	8,029	$	565	$	8,594

Condensed Consolidating Statement Cash Flows

Six Months Ended June 30,2015

(In thousands)

	(Issuer)		Non-
	Guarantor		Guarantor
	Subsidiaries		Subsidiary		Consolidated
Cash flows from operating activities
Net cash (used in) provided by operating activities	$	(65,254)	$	8,022	$	(57,232)
Cash flows from investing activities
Acquisitions		(561,757)		—		(561,757)
Capital expenditures		(30,809)		(2,354)		(33,163)
Proceeds from sale of property and equipment		1,251		—		1,251
Net cash used in investing activities		(591,315)		(2,354)		(593,669)
Cash flows from financing activities
Proceeds from issuance of common units, net		109,305		—		109,305
Net borrowings from working capital revolving credit facility		168,200		—		168,200
Net borrowings from revolving credit facility		134,200		—		134,200
Proceeds from senior notes, net of discount		295,125		—		295,125
Payments on line of credit		—		(700)		(700)
Repurchase of common units		(2,442)		—		(2,442)
Noncontrolling interest capital contribution		1,880		—		1,880
Distribution to noncontrolling interest		700		(4,300)		(3,600)
Distributions to partners		(45,118)		—		(45,118)
Net cash provided by (used in) financing activities		661,850		(5,000)		656,850
Cash and cash equivalents
Increase in cash and cash equivalents		5,281		668		5,949
Cash and cash equivalents at beginning of period		2,560		2,678		5,238
Cash and cash equivalents at end of period	$	7,841	$	3,346	$	11,187