Supplemental Guarantor Condensed Consolidating Financial Information (Tables)

9 Months Ended

Sep. 30, 2016

Supplemental Guarantor Condensed Consolidating Financial Statements

Schedule of condensed consolidating balance sheets

Condensed Consolidating Balance Sheet

September 30, 2016

(In thousands)

	(Issuer)		Non-
	Guarantor		Guarantor
	Subsidiaries		Subsidiary		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	14,408	$	535	$	—	$	14,943
Accounts receivable, net		280,857		151		—		281,008
Accounts receivable - affiliates		2,423		332		(420)		2,335
Inventories		438,254		—		—		438,254
Brokerage margin deposits		18,681		—		—		18,681
Derivative assets		24,563		—		—		24,563
Prepaid expenses and other current assets		73,412		253		—		73,665
Total current assets		852,598		1,271		(420)		853,449
Property and equipment, net		1,115,951		12,814		—		1,128,765
Intangible assets, net		67,586		—		—		67,586
Goodwill		299,057		—		—		299,057
Other assets		35,663		—		—		35,663
Total assets	$	2,370,855	$	14,085	$	(420)	$	2,384,520
Liabilities and partners' equity
Current liabilities:
Accounts payable	$	230,846	$	395	$	—	$	231,241
Accounts payable - affiliates		332		88		(420)		—
Working capital revolving credit facility - current portion		168,000		—		—		168,000
Environmental liabilities - current portion		5,329		—		—		5,329
Trustee taxes payable		83,883		—		—		83,883
Accrued expenses and other current liabilities		62,884		223		—		63,107
Derivative liabilities		24,491		—		—		24,491
Total current liabilities		575,765		706		(420)		576,051
Working capital revolving credit facility - less current portion		150,000		—		—		150,000
Revolving credit facility		180,800		—		—		180,800
Senior notes		658,497		—		—		658,497
Environmental liabilities - less current portion		60,552		—		—		60,552
Financing obligations		152,378		—		—		152,378
Deferred tax liabilities		72,907		—		—		72,907
Other long-term liabilities		55,850		—		—		55,850
Total liabilities		1,906,749		706		(420)		1,907,035
Partners' equity
Global Partners LP equity		464,106		8,058		—		472,164
Noncontrolling interest		—		5,321		—		5,321
Total partners' equity		464,106		13,379		—		477,485
Total liabilities and partners' equity	$	2,370,855	$	14,085	$	(420)	$	2,384,520

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 Ended September 30, 2016

(In thousands)

	(Issuer)		Non-
	Guarantor		Guarantor
	Subsidiaries		Subsidiary		Eliminations		Consolidated
Sales	$	2,029,574	$	948	$	(324)	$	2,030,198
Cost of sales		1,895,069		2,842		(324)		1,897,587
Gross profit		134,505		(1,894)		—		132,611
Costs and operating expenses:
Selling, general and administrative expenses		36,504		201		—		36,705
Operating expenses		69,692		899		—		70,591
Amortization expense		2,260		—		—		2,260
Net loss on sale and disposition of assets		7,486		—		—		7,486
Goodwill and long-lived asset impairment		43,648		104,169		—		147,817
Total costs and operating expenses		159,590		105,269		—		264,859
Operating loss		(25,085)		(107,163)		—		(132,248)
Interest expense		(21,197)		—		—		(21,197)
Loss before income tax expense		(46,282)		(107,163)		—		(153,445)
Income tax expense		(3,138)		—		—		(3,138)
Net loss		(49,420)		(107,163)		—		(156,583)
Net loss attributable to noncontrolling interest		—		37,032		—		37,032
Net loss attributable to Global Partners LP		(49,420)		(70,131)		—		(119,551)
Less: General partners' interest in net loss, including incentive distribution rights		(801)		—		—		(801)
Limited partners' interest in net loss	$	(48,619)	$	(70,131)	$	—	$	(118,750)

Condensed Consolidating Statement of Operations

Three Months Ended September 30, 2015

(In thousands)

	(Issuer)		Non-
	Guarantor		Guarantor
	Subsidiaries		Subsidiary		Eliminations		Consolidated
Sales	$	2,485,369	$	4,759	$	(3,925)	$	2,486,203
Cost of sales		2,335,169		2,660		(3,925)		2,333,904
Gross profit		150,200		2,099		—		152,299
Costs and operating expenses:
Selling, general and administrative expenses		42,204		276		—		42,480
Operating expenses		75,320		1,989		—		77,309
Amortization expense		2,319		—		—		2,319
Net loss on sale and disposition of assets		680		—		—		680
Total costs and operating expenses		120,523		2,265		—		122,788
Operating loss		29,677		(166)		—		29,511
Interest expense		(20,643)		—		—		(20,643)
Income (loss) before income tax expense		9,034		(166)		—		8,868
Income tax expense		(722)		—		—		(722)
Net income (loss)		8,312		(166)		—		8,146
Net income attributable to noncontrolling interest		—		66		—		66
Net income attributable to Global Partners LP		8,312		(100)		—		8,212
Less: General partners' interest in net income, including incentive distribution rights		2,832		—		—		2,832
Limited partners' interest in net income	$	5,480	$	(100)	$	—	$	5,380

Condensed Consolidating Statement of Operations

Nine Months Ended September 30, 2016

(In thousands)

	(Issuer)		Non-
	Guarantor		Guarantor
	Subsidiaries		Subsidiary		Eliminations		Consolidated
Sales	$	5,925,280	$	4,649	$	(2,720)	$	5,927,209
Cost of sales		5,529,366		8,551		(2,720)		5,535,197
Gross profit		395,914		(3,902)		—		392,012
Costs and operating expenses:
Selling, general and administrative expenses		107,648		681		—		108,329
Operating expenses		215,198		3,520		—		218,718
Amortization expense		7,128		—		—		7,128
Net loss on sale and disposition of assets		13,966		—		—		13,966
Goodwill and long-lived asset impairment		45,803		104,169		—		149,972
Total costs and operating expenses		389,743		108,370		—		498,113
Operating income (loss)		6,171		(112,272)		—		(106,101)
Interest expense		(65,192)		—		—		(65,192)
Loss before income tax expense		(59,021)		(112,272)		—		(171,293)
Income tax expense		(1,668)		—		—		(1,668)
Net loss		(60,689)		(112,272)		—		(172,961)
Net loss attributable to noncontrolling interest		—		39,076		—		39,076
Net loss attributable to Global Partners LP		(60,689)		(73,196)		—		(133,885)
Less: General partners' interest in net loss, including incentive distribution rights		(897)		—		—		(897)
Limited partners' interest in net loss	$	(59,792)	$	(73,196)	$	—	$	(132,988)

Condensed Consolidating Statement of Operations

Nine Months Ended September 30, 2015

(In thousands)

	(Issuer)		Non-
	Guarantor		Guarantor
	Subsidiaries		Subsidiary		Eliminations		Consolidated
Sales	$	8,137,767	$	19,539	$	(11,899)	$	8,145,407
Cost of sales		7,685,077		7,184		(11,899)		7,680,362
Gross profit		452,690		12,355		—		465,045
Costs and operating expenses:
Selling, general and administrative expenses		134,991		1,666		—		136,657
Operating expenses		211,291		6,842		—		218,133
Amortization expense		7,698		3,032		—		10,730
Net loss on sale and disposition of assets		1,330		—		—		1,330
Total costs and operating expenses		355,310		11,540		—		366,850
Operating income		97,380		815		—		98,195
Interest expense		(51,052)		(5)		—		(51,057)
Income before income tax expense		46,328		810		—		47,138
Income tax expense		(969)		—		—		(969)
Net income		45,359		810		—		46,169
Net income attributable to noncontrolling interest		—		(324)		—		(324)
Net income attributable to Global Partners LP		45,359		486		—		45,845
Less: General partners' interest in net income, including incentive distribution rights		7,682		—		—		7,682
Limited partners' interest in net income	$	37,677	$	486	$	—	$	38,163

Schedule of condensed consolidating statements of cash flows

Condensed Consolidating Statement Cash Flows

Nine Months Ended September 30, 2016

(In thousands)

	(Issuer)		Non-
	Guarantor		Guarantor
	Subsidiaries		Subsidiary		Consolidated
Cash flows from operating activities
Net cash provided by operating activities	$	13,829	$	331	$	14,160
Cash flows from investing activities
Capital expenditures		(54,738)		—		(54,738)
Proceeds from sale of property and equipment		58,908		9		58,917
Net cash provided by investing activities		4,170		9		4,179
Cash flows from financing activities
Net borrowings from working capital revolving credit facility		69,900		—		69,900
Net payments on revolving credit facility		(88,200)		—		(88,200)
Proceeds from sale-leaseback, net		62,476		—		62,476
Distribution to noncontrolling interest		2,697		(4,495)		(1,798)
Distributions to partners		(46,890)		—		(46,890)
Net cash used in financing activities		(17)		(4,495)		(4,512)
Cash and cash equivalents
Increase (decrease) in cash and cash equivalents		17,982		(4,155)		13,827
Cash and cash equivalents at beginning of period		(3,574)		4,690		1,116
Cash and cash equivalents at end of period	$	14,408	$	535	$	14,943

Condensed Consolidating Statement Cash Flows

Nine Months Ended September 30, 2015

(In thousands)

	(Issuer)		Non-
	Guarantor		Guarantor
	Subsidiaries		Subsidiary		Consolidated
Cash flows from operating activities
Net cash (used in) provided by operating activities	$	(16,160)	$	10,768	$	(5,392)
Cash flows from investing activities
Acquisitions		(561,170)		—		(561,170)
Capital expenditures		(54,028)		(2,491)		(56,519)
Proceeds from sale of property and equipment		2,548		—		2,548
Net cash used in investing activities		(612,650)		(2,491)		(615,141)
Cash flows from financing activities
Proceeds from issuance of common units, net		109,305		—		109,305
Net borrowings from working capital revolving credit facility		154,900		—		154,900
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		(3,892)		—		(3,892)
Noncontrolling interest capital contribution		2,560		—		2,560
Distribution to noncontrolling interest		20		(4,300)		(4,280)
Distributions to partners		(71,158)		—		(71,158)
Net cash provided by (used in) financing activities		621,060		(5,000)		616,060
Cash and cash equivalents
(Decrease) increase in cash and cash equivalents		(7,750)		3,277		(4,473)
Cash and cash equivalents at beginning of period		2,560		2,678		5,238
Cash and cash equivalents at end of period	$	(5,190)	$	5,955	$	765