Supplemental Guarantor Condensed Consolidating Financial Information (Tables)

9 Months Ended

Sep. 30, 2017

Supplemental Guarantor Condensed Consolidating Financial Statements

Schedule of condensed consolidating balance sheets

Condensed Consolidating Balance Sheet

September 30, 2017

(In thousands)

	(Issuer)		Non-
	Guarantor		Guarantor
	Subsidiaries		Subsidiary		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	9,591	$	1,264	$	—	$	10,855
Accounts receivable, net		330,527		220		192		330,939
Accounts receivable - affiliates		5,647		192		(192)		5,647
Inventories		280,510		—		—		280,510
Brokerage margin deposits		12,454		—		—		12,454
Derivative assets		5,350		—		—		5,350
Prepaid expenses and other current assets		77,012		163		—		77,175
Total current assets		721,091		1,839		—		722,930
Property and equipment, net		1,030,146		8,085		—		1,038,231
Intangible assets, net		57,670		—		—		57,670
Goodwill		291,455		—		—		291,455
Other assets		37,892		—		—		37,892
Total assets	$	2,138,254	$	9,924	$	—	$	2,148,178
Liabilities and partners' equity
Current liabilities:
Accounts payable	$	241,588	$	136	$	—	$	241,724
Accounts payable - affiliates		(193)		193		—		—
Working capital revolving credit facility - current portion		39,200		—		—		39,200
Environmental liabilities - current portion		5,329		—		—		5,329
Trustee taxes payable		97,857		—		—		97,857
Accrued expenses and other current liabilities		81,259		124		—		81,383
Derivative liabilities		11,109		—		—		11,109
Total current liabilities		476,149		453		—		476,602
Working capital revolving credit facility - less current portion		100,000		—		—		100,000
Revolving credit facility		190,000		—		—		190,000
Senior notes		661,109		—		—		661,109
Environmental liabilities - less current portion		52,712		—		—		52,712
Financing obligations		152,463		—		—		152,463
Deferred tax liabilities		64,181		—		—		64,181
Other long-term liabilities		59,343		—		—		59,343
Total liabilities		1,755,957		453		—		1,756,410
Partners' equity
Global Partners LP equity		382,297		5,713		—		388,010
Noncontrolling interest		—		3,758		—		3,758
Total partners' equity		382,297		9,471		—		391,768
Total liabilities and partners' equity	$	2,138,254	$	9,924	$	—	$	2,148,178

Condensed Consolidating Balance Sheet

December 31, 2016

(In thousands)

	(Issuer)		Non-
	Guarantor		Guarantor
	Subsidiaries		Subsidiary		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	9,373	$	655	$	—	$	10,028
Accounts receivable, net		420,897		213		250		421,360
Accounts receivable - affiliates		2,865		528		(250)		3,143
Inventories		521,878		—		—		521,878
Brokerage margin deposits		27,653		—		—		27,653
Derivative assets		21,382		—		—		21,382
Prepaid expenses and other current assets		69,872		150		—		70,022
Total current assets		1,073,920		1,546		—		1,075,466
Property and equipment, net		1,087,964		11,935		—		1,099,899
Intangible assets, net		65,013		—		—		65,013
Goodwill		294,768		—		—		294,768
Other assets		28,874		—		—		28,874
Total assets	$	2,550,539	$	13,481	$	—	$	2,564,020
Liabilities and partners' equity
Current liabilities:
Accounts payable	$	320,003	$	259	$	—	$	320,262
Working capital revolving credit facility - current portion		274,600		—		—		274,600
Environmental liabilities - current portion		5,341		—		—		5,341
Trustee taxes payable		101,166		—		—		101,166
Accrued expenses and other current liabilities		70,262		181		—		70,443
Derivative liabilities		27,413		—		—		27,413
Total current liabilities		798,785		440		—		799,225
Working capital revolving credit facility - less current portion		150,000		—		—		150,000
Revolving credit facility		216,700		—		—		216,700
Senior notes		659,150		—		—		659,150
Environmental liabilities - less current portion		57,724		—		—		57,724
Financing obligations		152,444		—		—		152,444
Deferred tax liabilities		66,054		—		—		66,054
Other long-term liabilities		64,882		—		—		64,882
Total liabilities		2,165,739		440		—		2,166,179
Partners' equity
Global Partners LP equity		384,800		7,855		—		392,655
Noncontrolling interest		—		5,186		—		5,186
Total partners' equity		384,800		13,041		—		397,841
Total liabilities and partners' equity	$	2,550,539	$	13,481	$	—	$	2,564,020

Schedule of condensed consolidating statements of income

Three Months Ended September 30, 2017

(In thousands)

	(Issuer)		Non-
	Guarantor		Guarantor
	Subsidiaries		Subsidiary		Eliminations		Consolidated
Sales	$	2,159,174	$	645	$	(73)	$	2,159,746
Cost of sales		2,008,467		1,258		(73)		2,009,652
Gross profit (loss)		150,707		(613)		—		150,094
Costs and operating expenses:
Selling, general and administrative expenses		40,049		85		—		40,134
Operating expenses		69,991		347		—		70,338
Amortization expense		2,260		—		—		2,260
Net loss on sale and disposition of assets		2,190		—		—		2,190
Goodwill and long-lived asset impairment		809		—		—		809
Total costs and operating expenses		115,299		432		—		115,731
Operating income (loss)		35,408		(1,045)		—		34,363
Interest expense		(20,626)		—		—		(20,626)
Income (loss) before income tax benefit		14,782		(1,045)		—		13,737
Income tax benefit		723		—		—		723
Net income (loss)		15,505		(1,045)		—		14,460
Net loss attributable to noncontrolling interest		—		418		—		418
Net income (loss) attributable to Global Partners LP		15,505		(627)		—		14,878
Less: General partners' interest in net income, including incentive distribution rights		100		—		—		100
Limited partners' interest in net income (loss)	$	15,405	$	(627)	$	—	$	14,778

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

Nine Months Ended September 30, 2017

(In thousands)

	(Issuer)		Non-
	Guarantor		Guarantor
	Subsidiaries		Subsidiary		Eliminations		Consolidated
Sales	$	6,518,172	$	2,248	$	(360)	$	6,520,060
Cost of sales		6,091,125		3,812		(360)		6,094,577
Gross profit (loss)		427,047		(1,564)		—		425,483
Costs and operating expenses:
Selling, general and administrative expenses		111,280		320		—		111,600
Operating expenses		207,483		1,237		—		208,720
Amortization expense		6,781		—		—		6,781
Net gain on sale and disposition of assets		(7,274)		(17)		—		(7,291)
Goodwill and long-lived asset impairment		809		—		—		809
Total costs and operating expenses		319,079		1,540		—		320,619
Operating income (loss)		107,968		(3,104)		—		104,864
Interest expense		(65,836)		—		—		(65,836)
Income (loss) before income tax expense		42,132		(3,104)		—		39,028
Income tax expense		(72)		—		—		(72)
Net income (loss)		42,060		(3,104)		—		38,956
Net loss attributable to noncontrolling interest		—		1,242		—		1,242
Net income (loss) attributable to Global Partners LP		42,060		(1,862)		—		40,198
Less: General partners' interest in net income, including incentive distribution rights		270		—		—		270
Limited partners' interest in net income (loss)	$	41,790	$	(1,862)	$	—	$	39,928

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)

Schedule of condensed consolidating statements of cash flows

Condensed Consolidating Statement Cash Flows

Nine Months Ended September 30, 2017

(In thousands)

	(Issuer)		Non-
	Guarantor		Guarantor
	Subsidiaries		Subsidiary		Consolidated
Cash flows from operating activities
Net cash provided by operating activities	$	361,387	$	1,054	$	362,441
Cash flows from investing activities
Capital expenditures		(31,646)		—		(31,646)
Proceeds from sale of property and equipment		29,784		20		29,804
Net cash (used in) provided by investing activities		(1,862)		20		(1,842)
Cash flows from financing activities
Net payments on working capital revolving credit facility		(285,400)		—		(285,400)
Net payments on revolving credit facility		(26,700)		—		(26,700)
Repurchased units withheld for tax obligations		(516)		—		(516)
Noncontrolling interest capital contribution		279		—		279
Distribution to noncontrolling interest		—		(465)		(465)
Distributions to partners		(46,970)		—		(46,970)
Net cash used in financing activities		(359,307)		(465)		(359,772)
Cash and cash equivalents
Increase in cash and cash equivalents		218		609		827
Cash and cash equivalents at beginning of period		9,373		655		10,028
Cash and cash equivalents at end of period	$	9,591	$	1,264	$	10,855

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