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Condensed Consolidating Guarantor Financial Statements
12 Months Ended
Dec. 31, 2017
Condensed Consolidating Guarantor Financial Statements [Abstract]  
Condensed Financial Information of Parent Company Only Disclosure [Text Block]
CONDENSED CONSOLIDATING GUARANTOR FINANCIAL STATEMENTS
Our senior unsecured notes are guaranteed by certain of our subsidiaries as follows: Rose Rock Finance Corporation, Rose Rock Midstream Operating, LLC, Rose Rock Midstream Energy GP, LLC, Rose Rock Midstream Crude, L.P., Rose Rock Midstream Field Services, LLC, SemGas, L.P., SemMaterials, L.P., SemGroup Europe Holding, L.L.C., SemOperating G.P., L.L.C., SemMexico, L.L.C., SemDevelopment, L.L.C., Mid-America Midstream Gas Services, L.L.C., SemCrude Pipeline, L.L.C., Wattenberg Holding, LLC and Glass Mountain Holding, LLC (collectively, the "Guarantors").
Each of the Guarantors is 100% owned by SemGroup Corporation (the "Parent"). Such guarantees of the Notes are full and unconditional and constitute the joint and several obligations of the Guarantors. There are no significant restrictions upon the ability of the Parent or any of the Guarantors to obtain funds from its respective subsidiaries by dividend or loan. Distributions of cash flows from HFOTCO, a non-guarantor, are restricted by the existing indebtedness of HFOTCO. None of the assets of the Guarantors represent restricted net assets pursuant to Rule 4-08(e)(3) of Regulation S-X under the Securities Act.
Condensed consolidating financial statements for the Parent, the Guarantors and non-guarantors as of December 31, 2017 and 2016 and for the years ended December 31, 2017, 2016 and 2015 are presented on an equity method basis in the tables below (in thousands).
Intercompany receivable and payable balances, including notes receivable and payable, are capital transactions primarily to facilitate the capital needs of our subsidiaries. As such, subsidiary intercompany balances have been reported as a reduction to equity on the condensed consolidating Guarantor balance sheets. The Parent's net intercompany balance, including note receivable, and investments in subsidiaries have been reported in equity method investments on the condensed consolidating Guarantor balance sheets. Intercompany transactions, such as daily cash management activities, have been reported as financing activities within the condensed consolidating Guarantor statements of cash flows. The Parent's investing activities with subsidiaries have been reflected as cash flows from investing activities. These balances are eliminated through consolidating adjustments below.
Condensed Consolidating Guarantor Balance Sheets
 
 
December 31, 2017
 
 
Parent
 
Guarantors
 
Non-guarantors
 
Consolidating Adjustments
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
32,457

 
$

 
$
69,872

 
$
(8,630
)
 
$
93,699

Accounts receivable
 
(9
)
 
562,967

 
90,526

 

 
653,484

Receivable from affiliates
 
58

 
1,421

 
212

 

 
1,691

Current assets held for sale
 

 

 
38,063

 

 
38,063

Inventories
 

 
101,665

 

 

 
101,665

Other current assets
 
6,671

 
4,493

 
3,133

 

 
14,297

Total current assets
 
39,177

 
670,546

 
201,806

 
(8,630
)
 
902,899

Property, plant and equipment
 
8,086

 
1,002,982

 
2,304,063

 

 
3,315,131

Equity method investments
 
3,085,274

 
964,930

 

 
(3,764,923
)
 
285,281

Goodwill
 

 

 
257,302

 

 
257,302

Other intangible assets
 
10

 
127,783

 
270,850

 

 
398,643

Other noncurrent assets, net
 
45,587

 
3,097

 
83,916

 

 
132,600

Noncurrent assets held for sale
 

 

 
84,961

 

 
84,961

Total assets
 
$
3,178,134


$
2,769,338


$
3,202,898


$
(3,773,553
)

$
5,376,817

LIABILITIES AND OWNERS’ EQUITY
 
 
 
 
 
 
 
 
 


Current liabilities:
 
 
 
 
 
 
 
 
 


Accounts payable
 
$
646

 
$
533,651

 
$
53,601

 
$

 
$
587,898

Payable to affiliates
 
10

 
6,961

 

 

 
6,971

Accrued liabilities
 
38,747

 
26,275

 
66,387

 
(2
)
 
131,407

Current liabilities held for sale
 

 

 
23,847

 

 
23,847

Other current liabilities
 
1,922

 
5,532

 
8,984

 

 
16,438

Total current liabilities
 
41,325

 
572,419

 
152,819

 
(2
)
 
766,561

Long-term debt
 
1,474,491

 
6,690

 
1,395,104

 
(23,190
)
 
2,853,095

Deferred income taxes
 
1,892

 

 
44,693

 

 
46,585

Other noncurrent liabilities
 
2,061

 

 
36,434

 

 
38,495

Noncurrent liabilities held for sale
 

 

 
13,716

 

 
13,716

Commitments and contingencies
 


 


 


 


 


Total owners’ equity
 
1,658,365

 
2,190,229

 
1,560,132

 
(3,750,361
)
 
1,658,365

Total liabilities and owners’ equity
 
$
3,178,134

 
$
2,769,338

 
$
3,202,898

 
$
(3,773,553
)
 
$
5,376,817

 
 
December 31, 2016
 
 
Parent
 
Guarantors
 
Non-guarantors
 
Consolidating Adjustments
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
19,002

 
$

 
$
59,796

 
$
(4,582
)
 
$
74,216

Accounts receivable
 

 
361,160

 
57,179

 

 
418,339

Receivable from affiliates
 
27

 
25,244

 
184

 

 
25,455

Inventories
 

 
89,638

 
9,596

 

 
99,234

Other current assets
 
8,986

 
5,760

 
3,887

 
(3
)
 
18,630

Total current assets
 
28,015

 
481,802

 
130,642

 
(4,585
)
 
635,874

Property, plant and equipment
 
5,621

 
970,079

 
786,372

 

 
1,762,072

Equity method investments
 
2,454,118

 
940,696

 

 
(2,960,525
)
 
434,289

Goodwill
 

 
26,628

 
7,602

 

 
34,230

Other intangible assets
 
15

 
149,669

 
1,294

 

 
150,978

Other noncurrent assets, net
 
54,155

 
2,080

 
1,294

 

 
57,529

Total assets
 
$
2,541,924

 
$
2,570,954

 
$
927,204

 
$
(2,965,110
)
 
$
3,074,972

LIABILITIES AND OWNERS’ EQUITY
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
674

 
$
348,297

 
$
18,336

 
$

 
$
367,307

Payable to affiliates
 

 
26,508

 

 

 
26,508

Accrued liabilities
 
25,078

 
23,423

 
32,603

 

 
81,104

Other current liabilities
 
889

 
5,108

 
7,439

 

 
13,436

Total current liabilities
 
26,641

 
403,336

 
58,378

 

 
488,355

Long-term debt
 
1,050,893

 
6,142

 
16,500

 
(22,617
)
 
1,050,918

Deferred income taxes
 
16,119

 

 
48,382

 

 
64,501

Other noncurrent liabilities
 
2,306

 

 
22,927

 

 
25,233

Commitments and contingencies
 


 


 


 


 


Total owners’ equity
 
1,445,965

 
2,161,476

 
781,017

 
(2,942,493
)
 
1,445,965

Total liabilities and owners’ equity
 
$
2,541,924

 
$
2,570,954

 
$
927,204

 
$
(2,965,110
)
 
$
3,074,972





Condensed Consolidating Guarantor Statements of Operations
 
 
Year Ended December 31, 2017
 
 
Parent
 
Guarantors
 
Non-guarantors
 
Consolidating Adjustments
 
Consolidated
Revenues:
 
 
 
 
 
 
 
 
 
 
Product
 
$

 
$
1,468,754

 
$
153,164

 
$

 
$
1,621,918

Service
 

 
149,197

 
242,069

 

 
391,266

Lease
 

 

 
5,843

 

 
5,843

Other
 

 

 
62,890

 

 
62,890

Total revenues
 

 
1,617,951


463,966




2,081,917

Expenses:
 
 
 
 
 
 
 
 
 

Costs of products sold, exclusive of depreciation and amortization shown below
 

 
1,383,868

 
131,023

 

 
1,514,891

Operating
 

 
113,503

 
141,261

 

 
254,764

General and administrative
 
42,422

 
26,143

 
41,808

 

 
110,373

Depreciation and amortization
 
2,294

 
70,053

 
86,074

 

 
158,421

Loss (gain) on disposal or impairment, net
 

 
(79,585
)
 
92,918

 

 
13,333

Total expenses
 
44,716

 
1,513,982


493,084




2,051,782

Earnings from equity method investments
 
68,964

 
(11,564
)
 

 
9,931

 
67,331

Operating income (loss)
 
24,248


92,405


(29,118
)

9,931


97,466

Other expenses (income):
 
 
 
 
 
 
 
 
 

Interest expense
 
40,053

 
38,791

 
25,019

 
(854
)
 
103,009

Loss on early extinguishment of debt
 
19,930

 

 

 

 
19,930

Foreign currency transaction gain
 
(2,764
)
 

 
(1,945
)
 

 
(4,709
)
Other income, net
 
(913
)
 
(33
)
 
(1,134
)
 
854

 
(1,226
)
Total other expenses, net
 
56,306

 
38,758


21,940




117,004

Income (loss) from continuing operations before income taxes
 
(32,058
)
 
53,647


(51,058
)

9,931


(19,538
)
Income tax expense (benefit)
 
(14,908
)
 

 
12,520

 

 
(2,388
)
Income (loss) from continuing operations
 
(17,150
)
 
53,647


(63,578
)

9,931


(17,150
)
Net income (loss)
 
$
(17,150
)

$
53,647


$
(63,578
)

$
9,931


$
(17,150
)
Net income (loss)
 
$
(17,150
)
 
$
53,647


$
(63,578
)

$
9,931


$
(17,150
)
Other comprehensive income (loss), net of income taxes
 
(11,987
)
 
(573
)
 
32,673

 

 
20,113

Comprehensive income (loss)
 
$
(29,137
)
 
$
53,074


$
(30,905
)

$
9,931


$
2,963








 
 
Year Ended December 31, 2016
 
 
Parent
 
Guarantors
 
Non-guarantors
 
Consolidating Adjustments
 
Consolidated
Revenues:
 
 
 
 
 
 
 
 
 
 
Product
 
$

 
$
872,961

 
$
136,448

 
$

 
$
1,009,409

Service
 

 
162,460

 
102,570

 

 
265,030

Other
 

 

 
57,725

 

 
57,725

Total revenues
 

 
1,035,421

 
296,743

 

 
1,332,164

Expenses:
 
 
 
 
 
 
 
 
 

Costs of products sold, exclusive of depreciation and amortization shown below
 

 
761,971

 
111,460

 

 
873,431

Operating
 

 
115,431

 
96,668

 

 
212,099

General and administrative
 
22,349

 
31,196

 
30,363

 

 
83,908

Depreciation and amortization
 
1,647

 
68,669

 
28,488

 

 
98,804

Loss (gain) on disposal or impairment, net
 

 
16,115

 
(67
)
 

 
16,048

Total expenses
 
23,996

 
993,382

 
266,912

 

 
1,284,290

Earnings from equity method investments
 
56,815

 
81,366

 

 
(64,424
)
 
73,757

Loss on issuance of common units by equity method investee
 
(41
)
 

 

 

 
(41
)
Operating income
 
32,778

 
123,405

 
29,831

 
(64,424
)
 
121,590

Other expenses (income):
 
 
 
 
 
 
 
 
 

Interest expense (income)
 
(4,002
)
 
72,277

 
(4,819
)
 
(806
)
 
62,650

Foreign currency transaction loss
 

 

 
4,759

 

 
4,759

Loss on sale or impairment of non-operated equity method investment, net
 
30,644

 

 

 

 
30,644

Other expenses (income), net
 
(339
)
 
63

 
(1,524
)
 
806

 
(994
)
Total other expenses (income), net
 
26,303

 
72,340

 
(1,584
)
 

 
97,059

Income from continuing operations before income taxes
 
6,475

 
51,065

 
31,415


(64,424
)

24,531

Income tax expense
 
4,380

 

 
6,888

 

 
11,268

Income from continuing operations
 
2,095

 
51,065

 
24,527

 
(64,424
)
 
13,263

Loss from discontinued operations, net of income taxes
 

 

 
(1
)
 

 
(1
)
Net income
 
2,095

 
51,065

 
24,526

 
(64,424
)
 
13,262

Less: net income attributable to noncontrolling interests
 

 
11,167

 

 

 
11,167

Net income attributable to SemGroup
 
$
2,095

 
$
39,898

 
$
24,526

 
$
(64,424
)
 
$
2,095

Net income
 
$
2,095

 
$
51,065

 
$
24,526

 
$
(64,424
)
 
$
13,262

Other comprehensive income (loss), net of income taxes
 
7,360

 
1,223

 
(23,935
)
 

 
(15,352
)
Comprehensive income (loss)
 
9,455

 
52,288

 
591

 
(64,424
)
 
(2,090
)
Less: comprehensive income attributable to noncontrolling interests
 

 
11,167

 

 

 
11,167

Comprehensive income (loss) attributable to SemGroup
 
$
9,455

 
$
41,121

 
$
591

 
$
(64,424
)
 
$
(13,257
)

 
 
Year Ended December 31, 2015
 
 
Parent
 
Guarantors
 
Non-guarantors
 
Consolidating Adjustments
 
Consolidated
Revenues:
 
 
 
 
 
 
 
 
 
 
Product
 
$

 
$
900,303

 
$
218,583

 
$

 
$
1,118,886

Service
 

 
188,429

 
71,113

 

 
259,542

Other
 

 

 
76,666

 

 
76,666

Total revenues
 

 
1,088,732

 
366,362

 

 
1,455,094

Expenses:
 
 
 
 
 
 
 
 
 
 
Costs of products sold, exclusive of depreciation and amortization shown below
 

 
808,776

 
170,773

 

 
979,549

Operating
 

 
117,541

 
106,902

 

 
224,443

General and administrative
 
29,914

 
31,021

 
36,431

 

 
97,366

Depreciation and amortization
 
1,522

 
73,393

 
25,967

 

 
100,882

Loss on disposal or impairment, net
 

 
10,399

 
1,073

 

 
11,472

Total expenses
 
31,436

 
1,041,130

 
341,146

 

 
1,413,712

Earnings from equity method investments
 
65,512

 
86,518

 

 
(70,644
)
 
81,386

Gain on issuance of common units by equity method investee
 
6,385

 

 

 

 
6,385

Operating income
 
40,461


134,120


25,216


(70,644
)

129,153

Other expenses (income):
 
 
 
 
 
 
 
 
 
 
Interest expense (income)
 
2,230

 
69,664

 
(262
)
 
(1,957
)
 
69,675

Foreign currency transaction gain
 
(5
)
 

 
(1,062
)
 

 
(1,067
)
Gain on sale of non-operated equity method investment
 
(14,517
)
 

 

 

 
(14,517
)
Other income, net
 
(2,048
)
 
(38
)
 
(1,155
)
 
1,957

 
(1,284
)
Total other expenses (income), net
 
(14,340
)
 
69,626

 
(2,479
)
 

 
52,807

Income from continuing operations before income taxes
 
54,801

 
64,494

 
27,695

 
(70,644
)
 
76,346

Income tax expense
 
24,482

 

 
9,048

 

 
33,530

Income from continuing operations
 
30,319

 
64,494

 
18,647

 
(70,644
)
 
42,816

Loss from discontinued operations, net of income taxes
 

 
(3
)
 
(1
)
 

 
(4
)
Net income
 
30,319

 
64,491

 
18,646

 
(70,644
)
 
42,812

Less: net income attributable to noncontrolling interests
 

 
12,492

 

 

 
12,492

Net income attributable to SemGroup
 
$
30,319

 
$
51,999

 
$
18,646

 
$
(70,644
)
 
$
30,320

Net income
 
$
30,319

 
$
64,491

 
$
18,646

 
$
(70,644
)
 
$
42,812

Other comprehensive income (loss), net of income taxes
 
17,420

 
430

 
(49,271
)
 

 
(31,421
)
Comprehensive income (loss)
 
47,739

 
64,921

 
(30,625
)
 
(70,644
)
 
11,391

Less: comprehensive income attributable to noncontrolling interests
 

 
12,492

 

 

 
12,492

Comprehensive income (loss) attributable to SemGroup
 
$
47,739

 
$
52,429

 
$
(30,625
)
 
$
(70,644
)
 
$
(1,101
)




Condensed Consolidating Guarantor Statements of Cash Flows
 
 
Year Ended December 31, 2017
 
 
Parent
 
Guarantors
 
Non-guarantors
 
Consolidating Adjustments
 
Consolidated
Net cash provided by (used in) operating activities
 
$
(46,556
)
 
$
98,857

 
$
88,175

 
$

 
$
140,476

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
Capital expenditures
 
(4,554
)
 
(135,999
)
 
(322,160
)
 

 
(462,713
)
Proceeds from sale of equity method investment and other long-lived assets
 

 
312,492

 
2,329

 

 
314,821

Contributions to equity method investments
 

 
(26,444
)
 

 

 
(26,444
)
Payments to acquire business, net of cash acquired
 

 

 
(294,239
)
 

 
(294,239
)
Distributions from equity method investees in excess of equity in earnings
 

 
28,774

 

 

 
28,774

Net cash provided by (used in) investing activities
 
(4,554
)
 
178,823

 
(614,070
)
 

 
(439,801
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
Debt issuance costs
 
(11,116
)
 

 

 

 
(11,116
)
Borrowings on credit facilities and issuance of senior unsecured notes
 
1,470,377

 

 
55,000

 

 
1,525,377

Principal payments on credit facilities and other obligations
 
(1,049,652
)
 
(26
)
 
(2,750
)
 

 
(1,052,428
)
Debt extinguishment costs
 
(16,293
)
 

 

 

 
(16,293
)
Repurchase of common stock for payment of statutory taxes due on equity-based compensation
 
(1,473
)
 

 

 

 
(1,473
)
Dividends paid
 
(129,925
)
 

 

 

 
(129,925
)
Proceeds from issuance of common stock under employee stock purchase plan
 
1,114

 

 

 

 
1,114

Intercompany borrowings (advances), net
 
(198,467
)
 
(277,654
)
 
480,169

 
(4,048
)
 

Net cash provided by (used in) financing activities
 
64,565

 
(277,680
)
 
532,419

 
(4,048
)
 
315,256

Effect of exchange rate changes on cash and cash equivalents
 

 

 
3,552

 

 
3,552

Change in cash and cash equivalents
 
13,455

 

 
10,076

 
(4,048
)
 
19,483

Cash and cash equivalents at beginning of period
 
19,002

 

 
59,796

 
(4,582
)
 
74,216

Cash and cash equivalents at end of period
 
$
32,457

 
$

 
$
69,872

 
$
(8,630
)
 
$
93,699

 
 
Year Ended December 31, 2016
 
 
Parent
 
Guarantors
 
Non-guarantors
 
Consolidating Adjustments
 
Consolidated
Net cash provided by operating activities
 
$
84,460

 
$
79,054

 
$
65,282

 
$
(58,822
)
 
$
169,974

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
Capital expenditures
 
(2,928
)
 
(56,102
)
 
(253,426
)


 
(312,456
)
Proceeds from sale of long-lived assets
 

 
53

 
98

 

 
151

Contributions to equity method investments
 

 
(4,188
)
 

 

 
(4,188
)
Proceeds from sale of common units of equity method investee
 
60,483

 

 

 

 
60,483

Distributions from equity method investments in excess of equity in earnings
 

 
27,726

 

 

 
27,726

Net cash provided by (used in) investing activities
 
57,555


(32,511
)
 
(253,328
)
 

 
(228,284
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
Debt issuance costs
 
(7,728
)
 

 

 

 
(7,728
)
Borrowings on credit facilities and issuance of senior unsecured notes
 
382,500

 

 

 

 
382,500

Principal payments on debt and other obligations
 
(396,859
)
 
(31
)
 

 

 
(396,890
)
Proceeds from issuance of common shares, net of offering costs
 
223,025

 

 

 

 
223,025

Distributions to noncontrolling interests
 

 
(32,133
)
 

 

 
(32,133
)
Repurchase of common stock
 
(965
)
 

 

 

 
(965
)
Dividends paid
 
(92,910
)
 

 

 

 
(92,910
)
Proceeds from issuance of common stock under employee stock purchase plan
 
1,010

 

 

 

 
1,010

Intercompany borrowings (advances), net
 
(235,645
)
 
(23,437
)
 
203,278

 
55,804

 

Net cash provided by (used in) financing activities
 
(127,572
)
 
(55,601
)
 
203,278

 
55,804

 
75,909

Effect of exchange rate changes on cash and cash equivalents
 

 

 
(1,479
)
 

 
(1,479
)
Change in cash and cash equivalents
 
14,443

 
(9,058
)
 
13,753

 
(3,018
)
 
16,120

Cash and cash equivalents at beginning of period
 
4,559

 
9,058

 
46,043

 
(1,564
)
 
58,096

Cash and cash equivalents at end of period
 
$
19,002

 
$

 
$
59,796

 
$
(4,582
)
 
$
74,216

 
 
Year Ended December 31, 2015
 
 
Parent
 
Guarantors
 
Non-guarantors
 
Consolidating Adjustments
 
Consolidated
Net cash provided by operating activities
 
$
37,259

 
$
122,838

 
$
58,845

 
$
(37,180
)
 
$
181,762

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
Capital expenditures
 
(1,740
)
 
(197,074
)
 
(280,716
)
 

 
(479,530
)
Proceeds from sale of long-lived assets
 

 
257

 
3,431

 

 
3,688

Contributions to equity method investments
 

 
(46,730
)
 

 

 
(46,730
)
Proceeds from the sale of interest in SemCrude Pipeline, L.L.C. to Rose Rock Midstream, L.P.
 
251,181

 

 

 
(251,181
)
 

Proceeds from sale of common units of equity method investee
 
56,318

 

 

 

 
56,318

Distributions from equity method investments in excess of equity in earnings
 
35,340

 
24,113

 

 
(35,340
)
 
24,113

Net cash provided by (used in) investing activities
 
341,099

 
(219,434
)
 
(277,285
)
 
(286,521
)
 
(442,141
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
Debt issuance costs
 
(601
)
 
(5,688
)
 

 

 
(6,289
)
Borrowings on credit facilities and issuance of senior unsecured notes
 
181,000

 
686,208

 

 

 
867,208

Principal payments on credit facilities and other obligations
 
(186,000
)
 
(374,049
)
 

 

 
(560,049
)
Distributions to noncontrolling interests
 

 
(40,410
)
 

 

 
(40,410
)
Proceeds from issuance of common units, net of offering costs
 

 
89,119

 

 

 
89,119

Repurchase of common stock
 
(4,261
)
 

 

 

 
(4,261
)
Dividends paid
 
(69,514
)
 

 

 

 
(69,514
)
Proceeds from issuance of common stock under employee stock purchase plan
 
1,223

 

 

 

 
1,223

Intercompany borrowings (advances), net
 
(304,900
)
 
(253,150
)
 
231,812

 
326,238

 

Net cash provided by (used in) financing activities
 
(383,053
)
 
102,030

 
231,812

 
326,238

 
277,027

Effect of exchange rate changes on cash and cash equivalents
 

 

 
850

 

 
850

Change in cash and cash equivalents
 
(4,695
)
 
5,434

 
14,222

 
2,537

 
17,498

Cash and cash equivalents at beginning of period
 
9,254

 
3,624

 
31,821

 
(4,101
)
 
40,598

Cash and cash equivalents at end of period
 
$
4,559

 
$
9,058

 
$
46,043

 
$
(1,564
)
 
$
58,096