ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 30-0740483 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Large accelerated filer | ý | Accelerated filer | ☐ | |
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |
Emerging Growth company | ☐ |
Page | ||
September 30, 2018 | December 31, 2017 | |||||||
(in millions, except units) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 15 | $ | 28 | ||||
Accounts receivable, net | 627 | 541 | ||||||
Receivables from affiliates | 134 | 155 | ||||||
Inventories, net | 469 | 426 | ||||||
Other current assets | 80 | 81 | ||||||
Assets held for sale | 6 | 3,313 | ||||||
Total current assets | 1,331 | 4,544 | ||||||
Property and equipment, net | 1,494 | 1,557 | ||||||
Other assets: | ||||||||
Goodwill | 1,534 | 1,430 | ||||||
Intangible assets, net | 655 | 768 | ||||||
Other noncurrent assets | 134 | 45 | ||||||
Total assets | $ | 5,148 | $ | 8,344 | ||||
Liabilities and equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 551 | $ | 559 | ||||
Accounts payable to affiliates | 160 | 206 | ||||||
Accrued expenses and other current liabilities | 370 | 368 | ||||||
Current maturities of long-term debt | 5 | 6 | ||||||
Liabilities associated with assets held for sale | — | 75 | ||||||
Total current liabilities | 1,086 | 1,214 | ||||||
Revolving line of credit | 493 | 765 | ||||||
Long-term debt, net | 2,281 | 3,519 | ||||||
Advances from affiliates | 85 | 85 | ||||||
Deferred tax liability | 118 | 389 | ||||||
Other noncurrent liabilities | 140 | 125 | ||||||
Total liabilities | 4,203 | 6,097 | ||||||
Commitments and contingencies (Note 14) | ||||||||
Equity: | ||||||||
Limited partners: | ||||||||
Series A Preferred unitholder - affiliated (no units issued and outstanding as of September 30, 2018 and 12,000,000 units issued and outstanding as of December 31, 2017) | — | 300 | ||||||
Common unitholders (82,513,643 units issued and outstanding as of September 30, 2018 and 99,667,999 units issued and outstanding as of December 31, 2017) | 945 | 1,947 | ||||||
Class C unitholders - held by subsidiary (16,410,780 units issued and outstanding as of September 30, 2018 and December 31, 2017) | — | — | ||||||
Total equity | 945 | 2,247 | ||||||
Total liabilities and equity | $ | 5,148 | $ | 8,344 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(in millions, except unit and per unit amounts) | |||||||||||||||
Revenues: | |||||||||||||||
Motor fuel sales | $ | 4,662 | $ | 2,849 | $ | 12,720 | $ | 8,152 | |||||||
Rental income | 35 | 22 | 91 | 66 | |||||||||||
Other | 64 | 193 | 306 | 546 | |||||||||||
Total revenues | 4,761 | 3,064 | 13,117 | 8,764 | |||||||||||
Cost of sales: | |||||||||||||||
Motor fuel cost of sales | 4,415 | 2,646 | 12,041 | 7,636 | |||||||||||
Other | 13 | 102 | 137 | 297 | |||||||||||
Total cost of sales | 4,428 | 2,748 | 12,178 | 7,933 | |||||||||||
Gross profit | 333 | 316 | 939 | 831 | |||||||||||
Operating expenses: | |||||||||||||||
General and administrative | 34 | 30 | 103 | 98 | |||||||||||
Other operating | 86 | 96 | 270 | 281 | |||||||||||
Rent | 20 | 20 | 54 | 62 | |||||||||||
Loss (gain) on disposal of assets and impairment charges | (8 | ) | 8 | (3 | ) | 102 | |||||||||
Depreciation, amortization and accretion | 42 | 34 | 132 | 124 | |||||||||||
Total operating expenses | 174 | 188 | 556 | 667 | |||||||||||
Operating income | 159 | 128 | 383 | 164 | |||||||||||
Other expenses: | |||||||||||||||
Interest expense, net | 35 | 51 | 105 | 163 | |||||||||||
Loss on extinguishment of debt and other | — | — | 109 | — | |||||||||||
Income from continuing operations before income taxes | 124 | 77 | 169 | 1 | |||||||||||
Income tax expense (benefit) | 10 | (44 | ) | 39 | (103 | ) | |||||||||
Income from continuing operations | 114 | 121 | 130 | 104 | |||||||||||
Income (loss) from discontinued operations, net of income taxes | (2 | ) | 17 | (265 | ) | (187 | ) | ||||||||
Net income (loss) and comprehensive income (loss) | $ | 112 | $ | 138 | $ | (135 | ) | $ | (83 | ) | |||||
Net income (loss) per limited partner unit - basic: | |||||||||||||||
Continuing operations - common units | $ | 1.16 | $ | 0.92 | $ | 0.84 | $ | 0.22 | |||||||
Discontinued operations - common units | (0.03 | ) | 0.17 | (3.12 | ) | (1.90 | ) | ||||||||
Net income (loss) - common units | $ | 1.13 | $ | 1.09 | $ | (2.28 | ) | $ | (1.68 | ) | |||||
Net income (loss) per limited partner unit - diluted: | |||||||||||||||
Continuing operations - common units | $ | 1.15 | $ | 0.91 | $ | 0.83 | $ | 0.22 | |||||||
Discontinued operations - common units | (0.03 | ) | 0.17 | (3.12 | ) | (1.90 | ) | ||||||||
Net income (loss) - common units | $ | 1.12 | $ | 1.08 | $ | (2.29 | ) | $ | (1.68 | ) | |||||
Weighted average limited partner units outstanding: | |||||||||||||||
Common units - basic | 82,506,279 | 99,469,643 | 84,891,853 | 99,185,042 | |||||||||||
Common units - diluted | 83,084,713 | 100,117,016 | 85,373,976 | 99,581,626 | |||||||||||
Cash distributions per unit | $ | 0.8255 | $ | 0.8255 | $ | 2.4765 | $ | 2.4765 |
Preferred Units-Affiliated | Common Units | Total Equity | |||||||||
Balance at December 31, 2017 | $ | 300 | $ | 1,947 | $ | 2,247 | |||||
Repurchase of common units | — | (540 | ) | (540 | ) | ||||||
Redemption of preferred units | (300 | ) | — | (300 | ) | ||||||
Cash distribution to common unitholders | — | (281 | ) | (281 | ) | ||||||
Distribution to preferred unitholder | (2 | ) | — | (2 | ) | ||||||
Unit-based compensation | — | 10 | 10 | ||||||||
Cumulative effect of change in revenue recognition accounting principle | — | (54 | ) | (54 | ) | ||||||
Partnership net income (loss) | 2 | (137 | ) | (135 | ) | ||||||
Balance at September 30, 2018 | $ | — | $ | 945 | $ | 945 |
For the Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
(in millions) | |||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (135 | ) | $ | (83 | ) | |
Adjustments to reconcile net loss to net cash provided by continuing operating activities: | |||||||
Loss from discontinued operations | 265 | 187 | |||||
Depreciation, amortization and accretion | 132 | 124 | |||||
Amortization of deferred financing fees | 4 | 12 | |||||
Loss (gain) on disposal of assets and impairment charges | (3 | ) | 102 | ||||
Loss on extinguishment of debt and other | 109 | — | |||||
Non-cash unit based compensation expense | 10 | 18 | |||||
Deferred income tax | 21 | (59 | ) | ||||
Inventory valuation adjustment | (51 | ) | (8 | ) | |||
Changes in operating assets and liabilities, net of acquisitions: | |||||||
Accounts receivable | (40 | ) | 89 | ||||
Receivable from affiliates | 21 | (137 | ) | ||||
Inventories | 30 | 31 | |||||
Other assets | (42 | ) | 6 | ||||
Accounts payable | (20 | ) | (31 | ) | |||
Accounts payable to affiliates | (46 | ) | 86 | ||||
Accrued expenses and other current liabilities | 17 | (28 | ) | ||||
Other noncurrent liabilities | 3 | 19 | |||||
Net cash provided by continuing operating activities | 275 | 328 | |||||
Cash flows from investing activities: | |||||||
Capital expenditures | (62 | ) | (75 | ) | |||
Purchase of intangible assets | (2 | ) | (29 | ) | |||
Acquisition from Superior | (58 | ) | — | ||||
Purchase of sites from 7-Eleven | (54 | ) | — | ||||
Acquisition from Sandford | (90 | ) | — | ||||
Proceeds from disposal of property and equipment | 26 | 4 | |||||
Net cash used in investing activities | (240 | ) | (100 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from issuance of long-term debt | 2,200 | — | |||||
Payments on long-term debt | (3,448 | ) | (4 | ) | |||
Payments for debt extinguishment costs | (93 | ) | — | ||||
Revolver borrowings | 2,100 | 1,894 | |||||
Revolver repayments | (2,372 | ) | (2,250 | ) | |||
Loan origination costs | (35 | ) | — | ||||
Advances from affiliates | — | 1 | |||||
Preferred units issued to ETE, net of issuance costs | — | 300 | |||||
Proceeds from issuance of common units, net of offering costs | — | 33 | |||||
Common unit repurchase | (540 | ) | — | ||||
Redemption of preferred units from ETE | (303 | ) | — | ||||
Other cash from financing activities, net | — | (2 | ) | ||||
Distributions to unitholders | (295 | ) | (312 | ) | |||
Net cash used in financing activities | (2,786 | ) | (340 | ) | |||
Cash flows from discontinued operations: | |||||||
Operating activities | (480 | ) | 160 | ||||
Investing activities | 3,207 | (57 | ) | ||||
Changes in cash included in current assets held for sale | 11 | (2 | ) | ||||
Net increase in cash and cash equivalents of discontinued operations | 2,738 | 101 | |||||
Net decrease in cash | (13 | ) | (11 | ) | |||
Cash and cash equivalents at beginning of period | 28 | 103 | |||||
Cash and cash equivalents at end of period | $ | 15 | $ | 92 |
1. | Organization and Principles of Consolidation |
• | References herein to “ETP” refer to Energy Transfer Partners, L.P. prior to its name change and Energy Transfer Operating, L.P. following its name change; |
• | References herein to “ETE” refer to Energy Transfer Equity, L.P. prior to its name change and Energy Transfer LP following its name change; |
• | Sunoco, LLC (“Sunoco LLC”), a Delaware limited liability company, primarily distributes motor fuel in 30 states throughout the East Coast, Midwest, South Central and Southeast regions of the United States. Sunoco LLC also processes transmix and distributes refined product through its terminals in Alabama, the Greater Dallas, Texas metroplex and New York. |
• | Sunoco Retail LLC (“Sunoco Retail”), a Pennsylvania limited liability company, owns and operates retail stores that sell motor fuel and merchandise primarily in New Jersey. |
• | Aloha Petroleum LLC, a Delaware limited liability company, distributes motor fuel and operates terminal facilities on the Hawaiian Islands. |
• | Aloha Petroleum, Ltd. (“Aloha”), a Hawaii corporation, owns and operates retail stores on the Hawaiian Islands. |
2. | Summary of Significant Accounting Policies |
Balance at December 31, 2017 | Adjustments Due to ASC 606 | Balance at January 1, 2018 | |||||||||
(in millions) | |||||||||||
Assets | |||||||||||
Other current assets | $ | 81 | $ | 8 | $ | 89 | |||||
Property and Equipment, net | 1,557 | — | 1,557 | ||||||||
Intangible assets, net | 768 | (100 | ) | 668 | |||||||
Other noncurrent assets | 45 | 39 | 84 | ||||||||
Liabilities and Equity | |||||||||||
Other noncurrent liabilities | 125 | 1 | 126 | ||||||||
Common unitholders | 1,947 | (54 | ) | 1,893 |
For the Three Months Ended September 30, 2018 | For the Nine Months Ended September 30, 2018 | ||||||||||||||||||||||
As Reported | Balances Without Adoption of ASC 606 | Effect of Change Higher/(Lower) | As Reported | Balances Without Adoption of ASC 606 | Effect of Change Higher/(Lower) | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Motor fuel sales | $ | 4,662 | $ | 4,676 | $ | (14 | ) | $ | 12,720 | $ | 12,757 | $ | (37 | ) | |||||||||
Rental income | 35 | 35 | — | 91 | 91 | — | |||||||||||||||||
Other | 64 | 64 | — | 306 | 306 | — | |||||||||||||||||
Costs of Sales | |||||||||||||||||||||||
Other | 13 | 14 | (1 | ) | 137 | 140 | (3 | ) | |||||||||||||||
Operating Expenses | |||||||||||||||||||||||
Other Operating | 86 | 88 | (2 | ) | 270 | 276 | (6 | ) | |||||||||||||||
Depreciation, amortization and accretion | 42 | 50 | (8 | ) | 132 | 153 | (21 | ) |
September 30, 2018 | |||||||||||
As Reported | Balances Without Adoption of ASC 606 | Effect of Change Higher/(Lower) | |||||||||
(in millions) | |||||||||||
Assets | |||||||||||
Other current assets | $ | 80 | $ | 69 | $ | 11 | |||||
Property and Equipment, net | 1,494 | 1,494 | — | ||||||||
Intangible assets, net | 655 | 777 | (122 | ) | |||||||
Other noncurrent assets | 134 | 83 | 51 | ||||||||
Liabilities and Equity | |||||||||||
Other noncurrent liabilities | 140 | 139 | 1 | ||||||||
Common unitholders | 945 | 1,006 | (61 | ) |
3. | Acquisitions |
4. | Discontinued Operations |
September 30, 2018 | December 31, 2017 | |||||||
(in millions) | ||||||||
Carrying amount of assets held for sale: | ||||||||
Cash | $ | — | $ | 21 | ||||
Inventories | — | 149 | ||||||
Other current assets | — | 16 | ||||||
Property and equipment, net | 6 | 1,851 | ||||||
Goodwill | — | 796 | ||||||
Intangible assets, net | — | 477 | ||||||
Other noncurrent assets | — | 3 | ||||||
Total assets held for sale | $ | 6 | $ | 3,313 | ||||
Carrying amount of liabilities associated with assets held for sale: | ||||||||
Long term debt | $ | — | $ | 21 | ||||
Other current and noncurrent liabilities | — | 54 | ||||||
Total liabilities associated with assets held for sale | $ | — | $ | 75 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(in millions) | |||||||||||||||
Revenues: | |||||||||||||||
Motor fuel sales | $ | — | $ | 1,320 | $ | 256 | $ | 3,762 | |||||||
Other (1) | — | 482 | 93 | 1,383 | |||||||||||
Total revenues | — | 1,802 | 349 | 5,145 | |||||||||||
Cost of sales: | |||||||||||||||
Motor fuel cost of sales | — | 1,163 | 240 | 3,359 | |||||||||||
Other | — | 319 | 65 | 915 | |||||||||||
Total cost of sales | — | 1,482 | 305 | 4,274 | |||||||||||
Gross profit | — | 320 | 44 | 871 | |||||||||||
Operating expenses: | |||||||||||||||
General and administrative | — | 57 | 7 | 126 | |||||||||||
Other operating | — | 169 | 57 | 525 | |||||||||||
Rent | — | 13 | 4 | 41 | |||||||||||
Loss on disposal of assets and impairment charges | — | 26 | 61 | 265 | |||||||||||
Depreciation, amortization and accretion expense | — | (5 | ) | — | 31 | ||||||||||
Total operating expenses | — | 260 | 129 | 988 | |||||||||||
Operating income (loss) | — | 60 | (85 | ) | (117 | ) | |||||||||
Interest expense, net | — | 13 | 2 | 21 | |||||||||||
Loss on extinguishment of debt and other | — | — | 20 | — | |||||||||||
Income (loss) from discontinued operations before income taxes | — | 47 | (107 | ) | (138 | ) | |||||||||
Income tax expense | 2 | 30 | 158 | 49 | |||||||||||
Income (loss) from discontinued operations, net of income taxes | $ | (2 | ) | $ | 17 | $ | (265 | ) | $ | (187 | ) |
(1) | Other revenue includes merchandise sales totaling $466 million for the three months ended September 30, 2017, and $89 million and $1.3 billion for the nine months ended September 30, 2018 and 2017, respectively. |
5. | Accounts Receivable, net |
September 30, 2018 | December 31, 2017 | ||||||
(in millions) | |||||||
Accounts receivable, trade | $ | 453 | $ | 285 | |||
Credit card receivables | 129 | 160 | |||||
Vendor receivables for rebates, branding, and other | 6 | 29 | |||||
Other receivables | 41 | 69 | |||||
Allowance for doubtful accounts | (2 | ) | (2 | ) | |||
Accounts receivable, net | $ | 627 | $ | 541 |
6. | Inventories, net |
September 30, 2018 | December 31, 2017 | ||||||
(in millions) | |||||||
Fuel | $ | 457 | $ | 387 | |||
Merchandise | 5 | 30 | |||||
Other | 7 | 9 | |||||
Inventories, net | $ | 469 | $ | 426 |
7. | Property and Equipment, net |
September 30, 2018 | December 31, 2017 | ||||||
(in millions) | |||||||
Land | $ | 517 | $ | 516 | |||
Buildings and leasehold improvements | 724 | 714 | |||||
Equipment | 729 | 623 | |||||
Construction in progress | 77 | 159 | |||||
Total property and equipment | 2,047 | 2,012 | |||||
Less: accumulated depreciation | 553 | 455 | |||||
Property and equipment, net | $ | 1,494 | $ | 1,557 |
8. | Goodwill and Intangible Assets, net |
September 30, 2018 | December 31, 2017 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Book Value | Gross Carrying Amount | Accumulated Amortization | Net Book Value | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Indefinite-lived | |||||||||||||||||||||||
Tradenames | $ | 295 | $ | — | $ | 295 | $ | 295 | $ | — | $ | 295 | |||||||||||
Contractual rights | 30 | — | 30 | 30 | — | 30 | |||||||||||||||||
Liquor licenses | 12 | — | 12 | 12 | — | 12 | |||||||||||||||||
Finite-lived | |||||||||||||||||||||||
Customer relations including supply agreements (1) | 484 | 186 | 298 | 674 | 256 | 418 | |||||||||||||||||
Favorable leasehold arrangements, net | 12 | 5 | 7 | 12 | 5 | 7 | |||||||||||||||||
Loan origination costs (2) | 17 | 6 | 11 | 10 | 6 | 4 | |||||||||||||||||
Other intangibles | 5 | 3 | 2 | 5 | 3 | 2 | |||||||||||||||||
Intangible assets, net | $ | 855 | $ | 200 | $ | 655 | $ | 1,038 | $ | 270 | $ | 768 |
(1) | Decrease in gross carrying amount is mainly due to the adoption of ASU No. 2014-09, Revenue from Contracts with Customers, see Note 2. |
(2) | Loan origination costs are associated with the Revolving Credit Agreement, see Note 10 for further information. |
9. | Accrued Expenses and Other Current Liabilities |
September 30, 2018 | December 31, 2017 | ||||||
(in millions) | |||||||
Wage and other employee-related accrued expenses | $ | 29 | $ | 72 | |||
Accrued tax expense | 205 | 180 | |||||
Accrued insurance | 14 | 26 | |||||
Accrued interest expense | 19 | 43 | |||||
Dealer deposits | 16 | 16 | |||||
Reserve for environmental remediation | 6 | — | |||||
Other | 81 | 31 | |||||
Total | $ | 370 | $ | 368 |
10. | Long-Term Debt |
September 30, 2018 | December 31, 2017 | ||||||
(in millions) | |||||||
Term Loan (1) | $ | — | $ | 1,243 | |||
Sale leaseback financing obligation | 109 | 113 | |||||
2018 Revolver | 493 | — | |||||
2014 Revolver (2) | — | 765 | |||||
4.875% Senior Notes Due 2023 | 1,000 | — | |||||
5.500% Senior Notes Due 2026 | 800 | — | |||||
5.875% Senior Notes Due 2028 | 400 | — | |||||
6.375% Senior Notes Due 2023 (3) | — | 800 | |||||
5.500% Senior Notes Due 2020 (3) | — | 600 | |||||
6.250% Senior Notes Due 2021 (3) | — | 800 | |||||
Other | 1 | 3 | |||||
Total debt | 2,803 | 4,324 | |||||
Less: current maturities | 5 | 6 | |||||
Less: debt issuance costs | 24 | 34 | |||||
Long-term debt, net of current maturities | $ | 2,774 | $ | 4,284 |
(1) | The Term Loan was repaid in full and terminated on January 23, 2018. |
(2) | The 2014 Revolver was repaid in full on July 27, 2018. |
(3) | The Senior Notes were redeemed on January 23, 2018. |
Level 1 | Quoted prices (unadjusted) in active markets for identical assets or liabilities; |
Level 2 | Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; |
Level 3 | Unobservable inputs in which little or no market activity exists, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing. |
11. | Other Noncurrent Liabilities |
September 30, 2018 | December 31, 2017 | ||||||
(in millions) | |||||||
Accrued straight-line rent | $ | 12 | $ | 13 | |||
Reserve for underground storage tank removal | 51 | 41 | |||||
Reserve for environmental remediation | 28 | 23 | |||||
Unfavorable lease liability | 16 | 10 | |||||
Aloha acquisition contingent consideration | — | 15 | |||||
Other | 33 | 23 | |||||
Total | $ | 140 | $ | 125 |
12. | Related-Party Transactions |
• | Philadelphia Energy Solutions Products Purchase Agreements – two related products purchase agreements, one with Philadelphia Energy Solutions Refining & Marketing (“PES”) and one with PES’s product financier Merrill Lynch Commodities; both purchase agreements contain 12-month terms that automatically renew for consecutive 12-month terms until either party cancels with notice. ETP Retail Holdings, LLC, a subsidiary of ETP, owns a noncontrolling interest in the parent of PES. Beginning in the third quarter of 2018, PES was no longer considered an affiliate of ETP as the interest in PES owned by ETP decreased to an amount which was no longer considered to give ETP any significant influence over PES’s management or operations. |
• | ETP Transportation and Terminalling Contracts – various agreements with subsidiaries of ETP for pipeline, terminalling and storage services. We also have agreements with subsidiaries of ETP for the purchase and sale of fuel. |
• | Net advances from affiliates were $85 million and $85 million as of September 30, 2018 and December 31, 2017, respectively. Advances from affiliates are primarily related to the treasury services agreements between Sunoco LLC and Sunoco (R&M), LLC and Sunoco Retail and Sunoco (R&M), LLC, which are in place for purposes of cash management. |
• | Net accounts receivable from affiliates were $134 million and $155 million as of September 30, 2018 and December 31, 2017, respectively, which are primarily related to motor fuel purchases from us. |
• | Net accounts payable to affiliates were $160 million and $206 million as of September 30, 2018 and December 31, 2017, respectively, which are related to operational expenses and fuel pipeline purchases. |
• | Motor fuel sales to affiliates were $1 million and $16 million for the three months ended September 30, 2018 and 2017, respectively. |
• | Motor fuel sales to affiliates were $23 million and $44 million for the nine months ended September 30, 2018 and 2017, respectively. |
• | Bulk fuel purchases from affiliates were $96 million and $601 million for the three months ended September 30, 2018 and 2017, respectively, which is included in motor fuel cost of sales in our Consolidated Statements of Operations and Comprehensive Income (Loss). |
• | Bulk fuel purchases from affiliates were $1.8 billion and $1.7 billion for the nine months ended September 30, 2018 and 2017, respectively, which is included in motor fuel cost of sales in our Consolidated Statements of Operations and Comprehensive Income (Loss). |
13. | Revenue |
For the Three Months Ended September 30, 2018 | For the Nine Months Ended September 30, 2018 | ||||||
(in millions) | |||||||
Fuel Distribution and Marketing Segment | |||||||
Dealer | $ | 998 | $ | 2,781 | |||
Distributor | 2,253 | 6,083 | |||||
Unbranded Wholesale | 762 | 2,011 | |||||
Commission Agent | 437 | 985 | |||||
Rental income | 32 | 82 | |||||
Other | 12 | 41 | |||||
Total | 4,494 | 11,983 | |||||
All Other Segment | |||||||
Motor Fuel | 212 | 860 | |||||
Rental income | 3 | 9 | |||||
Other | 52 | 265 | |||||
Total | 267 | 1,134 | |||||
Total Revenue | $ | 4,761 | $ | 13,117 |
Balance at January 1, 2018 | Balance at September 30, 2018 | Increase/ (Decrease) | |||||||||
(in millions) | |||||||||||
Contract Balances | |||||||||||
Contract Asset | $ | 51 | $ | 66 | $ | 15 | |||||
Accounts receivable from contracts with customers | $ | 445 | $ | 582 | $ | 137 | |||||
Contract Liability | $ | 1 | $ | 1 | $ | — |
• | Significant financing component - The Partnership elected not to adjust the promised amount of consideration for the effects of significant financing component if the Partnership expects at contract inception that the period between the transfer of a promised good or service to a customer and when the customer pays for that good or service will be one year or less. |
• | Incremental costs of obtaining a contract - The Partnership generally expenses sales commissions when incurred because the amortization period would have been less than one year. We record these costs within general and administrative expenses. The Partnership elected to expense the incremental costs of obtaining a contract when the amortization period for such contracts would have been one year or less. |
• | Shipping and handling costs - The Partnership elected to account for shipping and handling activities that occur after the customer has obtained control of a good as fulfillment activities (i.e., an expense) rather than as a promised service. |
• | Measurement of transaction price - The Partnership has elected to exclude from the measurement of transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Partnership from a customer (i.e., sales tax, value added tax, etc). |
• | Variable consideration of wholly unsatisfied performance obligations - The Partnership has elected to exclude the estimate of variable consideration to the allocation of wholly unsatisfied performance obligations. |
14. | Commitments and Contingencies |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(in millions) | |||||||||||||||
Cash rent: | |||||||||||||||
Store base rent (1) (2) | $ | 19 | $ | 16 | $ | 52 | $ | 51 | |||||||
Equipment and other rent (3) | 1 | 4 | 2 | 10 | |||||||||||
Total cash rent | 20 | 20 | 54 | 61 | |||||||||||
Non-cash rent: | |||||||||||||||
Straight-line rent | — | — | — | 1 | |||||||||||
Net rent expense | $ | 20 | $ | 20 | $ | 54 | $ | 62 |
(1) | Store base rent includes the Partnership's rent expense for leased retail store properties which are subleased to third-party operators. The sublease income from these sites is recorded in rental income on the statement of operations and totaled $11 million and $7 million for the three months ended September 30, 2018 and 2017, respectively, and $28 million and $19 million for the nine months ended September 30, 2018 and 2017, respectively. |
(2) | Store base rent includes contingent rent expense totaling $1 million and $3 million for the three months ended September 30, 2018 and 2017, respectively, and $3 million and $13 million for the nine months ended September 30, 2018 and 2017, respectively. |
(3) | Equipment and other rent consists primarily of vehicles and store equipment. |
15. | Interest Expense, net |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(in millions) | |||||||||||||||
Interest expense | $ | 35 | $ | 47 | $ | 105 | $ | 151 | |||||||
Amortization of deferred financing fees | 1 | 4 | 4 | 12 | |||||||||||
Interest income | (1 | ) | — | (4 | ) | — | |||||||||
Interest expense, net | $ | 35 | $ | 51 | $ | 105 | $ | 163 |
16. | Income Tax Expense |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(in million) | |||||||||||||||
Tax at statutory federal rate (1) | $ | 26 | $ | 27 | $ | 34 | $ | 1 | |||||||
Partnership earnings not subject to tax | (16 | ) | (74 | ) | (17 | ) | (130 | ) | |||||||
Goodwill impairment | — | 4 | — | 35 | |||||||||||
State and local tax, net of federal benefit | 3 | (3 | ) | 4 | (9 | ) | |||||||||
Statutory tax rate changes | (3 | ) | — | 16 | — | ||||||||||
Other | — | 2 | 2 | — | |||||||||||
Net income tax expense (benefit) | $ | 10 | $ | (44 | ) | $ | 39 | $ | (103 | ) |
(1) | In December 2017, the “Tax Cuts and Jobs Act” was signed into law. Among other provisions, the highest corporate federal income tax rate was reduced from 35% to 21% for tax years beginning after December 31, 2017. |
17. | Partners' Capital |
Number of Units | ||
Number of common units at December 31, 2017 | 99,667,999 | |
Common units repurchase | (17,286,859 | ) |
Phantom unit vesting | 132,503 | |
Number of common units at September 30, 2018 | 82,513,643 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Attributable to Common Units | |||||||||||||||
Distributions (a) | $ | 68 | $ | 82 | $ | 204 | $ | 246 | |||||||
Distributions in excess of net income | 25 | 25 | (398 | ) | (413 | ) | |||||||||
Limited partners' interest in net income (loss) | $ | 93 | $ | 107 | $ | (194 | ) | $ | (167 | ) | |||||
(a) Distributions declared per unit to unitholders as of record date | $ | 0.8255 | $ | 0.8255 | $ | 2.4765 | $ | 2.4765 |
Marginal percentage interest in distributions | |||||||
Total quarterly distribution per Common Unit target amount | Common Unitholders | Holder of IDRs | |||||
Minimum Quarterly Distribution | $0.4375 | 100 | % | — | |||
First Target Distribution | Above $0.4375 up to $0.503125 | 100 | % | — | |||
Second Target Distribution | Above $0.503125 up to $0.546875 | 85 | % | 15 | % | ||
Third Target Distribution | Above $0.546875 up to $0.656250 | 75 | % | 25 | % | ||
Thereafter | Above $0.656250 | 50 | % | 50 | % |
Limited Partners | ||||||||||||
Payment Date | Per Unit Distribution | Total Cash Distribution | Distribution to IDR Holders | |||||||||
(in millions, except per unit amounts) | ||||||||||||
November 14, 2018 | $ | 0.8255 | $ | 68 | $ | 18 | ||||||
August 15, 2018 | $ | 0.8255 | $ | 68 | $ | 17 | ||||||
May 15, 2018 | $ | 0.8255 | $ | 68 | $ | 18 | ||||||
February 14, 2018 | $ | 0.8255 | $ | 82 | $ | 21 |
Series A Preferred Unit Holder | ||||
Payment Date | Total Cash Distribution | |||
(in millions) | ||||
January 25, 2018 (1) | $ | 10 |
(1) | $10 million cash distribution paid on January 25, 2018 includes $8 million cash distribution for the three months ended December 31, 2017 and $2 million cash distribution for the period from January 1, 2018 through January 25, 2018. |
18. | Unit-Based Compensation |
Number of Phantom Common Units | Weighted-Average Grant Date Fair Value | |||||
Outstanding at December 31, 2016 | 2,013,634 | $ | 34.43 | |||
Granted | 203,867 | 28.31 | ||||
Vested | (289,377 | ) | 45.48 | |||
Forfeited | (150,823 | ) | 34.71 | |||
Outstanding at December 31, 2017 | 1,777,301 | 31.89 | ||||
Granted | 421,100 | 28.86 | ||||
Vested | (199,504 | ) | 28.95 | |||
Forfeited | (299,121 | ) | 31.34 | |||
Outstanding at September 30, 2018 | 1,699,776 | $ | 30.96 |
19. | Segment Reporting |
For the Three Months Ended September 30, | |||||||||||||||||||||||||||||
2018 | 2017 | ||||||||||||||||||||||||||||
Fuel Distribution and Marketing | All Other | Intercompany Eliminations | Totals | Fuel Distribution and Marketing | All Other | Intercompany Eliminations | Totals | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Revenue | |||||||||||||||||||||||||||||
Motor fuel sales | $ | 4,450 | $ | 212 | $ | 4,662 | $ | 2,435 | $ | 414 | $ | 2,849 | |||||||||||||||||
Rental income | 32 | 3 | 35 | 19 | 3 | 22 | |||||||||||||||||||||||
Other | 12 | 52 | 64 | 13 | 180 | 193 | |||||||||||||||||||||||
Intersegment sales | 460 | 29 | (489 | ) | — | 407 | 34 | (441 | ) | — | |||||||||||||||||||
Total revenue | 4,954 | 296 | (489 | ) | 4,761 | 2,874 | 631 | (441 | ) | 3,064 | |||||||||||||||||||
Gross profit | |||||||||||||||||||||||||||||
Motor fuel | 222 | 25 | 247 | 158 | 45 | 203 | |||||||||||||||||||||||
Rental | 32 | 3 | 35 | 19 | 3 | 22 | |||||||||||||||||||||||
Other | 7 | 44 | 51 | 13 | 78 | 91 | |||||||||||||||||||||||
Total gross profit | 261 | 72 | 333 | 190 | 126 | 316 | |||||||||||||||||||||||
Total operating expenses | 143 | 31 | 174 | 88 | 100 | 188 | |||||||||||||||||||||||
Operating income | 118 | 41 | 159 | 102 | 26 | 128 | |||||||||||||||||||||||
Interest expense, net | 28 | 7 | 35 | 34 | 17 | 51 | |||||||||||||||||||||||
Income from continuing operations before income taxes | 90 | 34 | 124 | 68 | 9 | 77 | |||||||||||||||||||||||
Income tax expense (benefit) | 1 | 9 | 10 | (1 | ) | (43 | ) | (44 | ) | ||||||||||||||||||||
Income from continuing operations | 89 | 25 | 114 | 69 | 52 | 121 | |||||||||||||||||||||||
Income (loss) from discontinued operations, net of income taxes (See Note 4) | — | (2 | ) | (2 | ) | — | 17 | 17 | |||||||||||||||||||||
Net income and comprehensive income | $ | 89 | $ | 23 | $ | 112 | $ | 69 | $ | 69 | $ | 138 | |||||||||||||||||
Depreciation, amortization and accretion (1) | 32 | 10 | 42 | 23 | 6 | 29 | |||||||||||||||||||||||
Interest expense, net (1) | 28 | 7 | 35 | 34 | 30 | 64 | |||||||||||||||||||||||
Income tax expense (benefit) (1) | 1 | 11 | 12 | (1 | ) | (13 | ) | (14 | ) | ||||||||||||||||||||
EBITDA | 150 | 51 | 201 | 125 | 92 | 217 | |||||||||||||||||||||||
Non-cash compensation expense (1) | 1 | 3 | 4 | — | 9 | 9 | |||||||||||||||||||||||
Loss (gain) on disposal of assets and impairment charges (1) | 21 | (29 | ) | (8 | ) | (4 | ) | 38 | 34 | ||||||||||||||||||||
Unrealized loss on commodity derivatives (1) | — | — | — | (6 | ) | — | (6 | ) | |||||||||||||||||||||
Inventory fair value adjustments (1) | 7 | — | 7 | (51 | ) | (4 | ) | (55 | ) | ||||||||||||||||||||
Other non-cash adjustments | 4 | — | 4 | — | — | — | |||||||||||||||||||||||
Adjusted EBITDA | $ | 183 | $ | 25 | $ | 208 | $ | 64 | $ | 135 | $ | 199 | |||||||||||||||||
Capital expenditures (1) | $ | 21 | $ | 9 | $ | 30 | $ | 25 | $ | 16 | $ | 41 | |||||||||||||||||
Total assets as of September 30, 2018 and December 31, 2017, respectively | $ | 4,052 | $ | 1,096 | $ | 5,148 | $ | 3,130 | $ | 5,214 | $ | 8,344 |
(1) | Includes amounts from discontinued operations. |
For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2018 | 2017 | ||||||||||||||||||||||||||||
Fuel Distribution and Marketing | All Other | Intercompany Eliminations | Totals | Fuel Distribution and Marketing | All Other | Intercompany Eliminations | Totals | ||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Revenue | |||||||||||||||||||||||||||||
Motor fuel sales | $ | 11,860 | $ | 860 | $ | 12,720 | $ | 6,988 | $ | 1,164 | $ | 8,152 | |||||||||||||||||
Rental income | 82 | 9 | 91 | 57 | 9 | 66 | |||||||||||||||||||||||
Other | 41 | 265 | 306 | 37 | 509 | 546 | |||||||||||||||||||||||
Intersegment sales | 1,271 | 93 | (1,364 | ) | — | 1,088 | 94 | (1,182 | ) | — | |||||||||||||||||||
Total revenue | 13,254 | 1,227 | (1,364 | ) | 13,117 | 8,170 | 1,776 | (1,182 | ) | 8,764 | |||||||||||||||||||
Gross profit | |||||||||||||||||||||||||||||
Motor fuel | 587 | 92 | 679 | 383 | 133 | 516 | |||||||||||||||||||||||
Rental | 82 | 9 | 91 | 57 | 9 | 66 | |||||||||||||||||||||||
Other | 35 | 134 | 169 | 30 | 219 | 249 | |||||||||||||||||||||||
Total gross profit | 704 | 235 | 939 | 470 | 361 | 831 | |||||||||||||||||||||||
Total operating expenses | 390 | 166 | 556 | 291 | 376 | 667 | |||||||||||||||||||||||
Operating income (loss) | 314 | 69 | 383 | 179 | (15 | ) | 164 | ||||||||||||||||||||||
Interest expense, net | 74 | 31 | 105 | 68 | 95 | 163 | |||||||||||||||||||||||
Loss on extinguishment of debt and other | 109 | — | 109 | — | — | — | |||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | 131 | 38 | 169 | 111 | (110 | ) | 1 | ||||||||||||||||||||||
Income tax expense (benefit) | (1 | ) | 40 | 39 | (1 | ) | (102 | ) | (103 | ) | |||||||||||||||||||
Income (loss) from continuing operations | 132 | (2 | ) | 130 | 112 | (8 | ) | 104 | |||||||||||||||||||||
Loss from discontinued operations, net of income taxes (See Note 4) | — | (265 | ) | (265 | ) | — | (187 | ) | (187 | ) | |||||||||||||||||||
Net income (loss) and comprehensive income (loss) | $ | 132 | $ | (267 | ) | $ | (135 | ) | $ | 112 | $ | (195 | ) | $ | (83 | ) | |||||||||||||
Depreciation, amortization and accretion (1) | 95 | 37 | 132 | 81 | 74 | 155 | |||||||||||||||||||||||
Interest expense, net (1) | 74 | 33 | 107 | 68 | 116 | 184 | |||||||||||||||||||||||
Income tax expense (benefit) (1) | (1 | ) | 198 | 197 | (1 | ) | (53 | ) | (54 | ) | |||||||||||||||||||
EBITDA | 300 | 1 | 301 | 260 | (58 | ) | 202 | ||||||||||||||||||||||
Non-cash compensation expense (1) | 2 | 8 | 10 | 1 | 17 | 18 | |||||||||||||||||||||||
Loss on disposal of assets and impairment charges (1) | 24 | 34 | 58 | — | 367 | 367 | |||||||||||||||||||||||
Loss on extinguishment of debt and other (1) | 109 | 20 | 129 | — | — | — | |||||||||||||||||||||||
Unrealized gain on commodity derivatives (1) | — | — | — | (5 | ) | — | (5 | ) | |||||||||||||||||||||
Inventory fair value adjustments (1) | (50 | ) | (1 | ) | (51 | ) | (8 | ) | — | (8 | ) | ||||||||||||||||||
Other non-cash adjustments | 10 | — | 10 | — | — | — | |||||||||||||||||||||||
Adjusted EBITDA | $ | 395 | $ | 62 | $ | 457 | $ | 248 | $ | 326 | $ | 574 | |||||||||||||||||
Capital expenditures (1) | $ | 44 | $ | 18 | $ | 62 | $ | 50 | $ | 89 | $ | 139 | |||||||||||||||||
Total assets as of September 30, 2018 and December 31, 2017, respectively | $ | 4,052 | $ | 1,096 | $ | 5,148 | $ | 3,130 | $ | 5,214 | $ | 8,344 |
(1) | Includes amounts from discontinued operations. |
20. | Net Income per Unit |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(in millions, except units and per unit amounts) | |||||||||||||||
Income from continuing operations | $ | 114 | $ | 121 | $ | 130 | $ | 104 | |||||||
Less: | |||||||||||||||
Distributions on Series A Preferred units | — | 7 | 2 | 15 | |||||||||||
Incentive distribution rights | 18 | 22 | 53 | 64 | |||||||||||
Distributions on nonvested phantom unit awards | 1 | 2 | 4 | 5 | |||||||||||
Limited partners' interest in net income from continuing operations | $ | 95 | $ | 90 | $ | 71 | $ | 20 | |||||||
Income (loss) from discontinued operations | $ | (2 | ) | $ | 17 | $ | (265 | ) | $ | (187 | ) | ||||
Weighted average limited partner units outstanding: | |||||||||||||||
Common - basic | 82,506,279 | 99,469,643 | 84,891,853 | 99,185,042 | |||||||||||
Common - equivalents | 578,434 | 647,373 | 482,123 | 396,584 | |||||||||||
Common - diluted | 83,084,713 | 100,117,016 | 85,373,976 | 99,581,626 | |||||||||||
Income from continuing operations per limited partner unit: | |||||||||||||||
Common - basic | $ | 1.16 | $ | 0.92 | $ | 0.84 | $ | 0.22 | |||||||
Common - diluted | $ | 1.15 | $ | 0.91 | $ | 0.83 | $ | 0.22 | |||||||
Income (loss) from discontinued operations per limited partner unit: | |||||||||||||||
Common - basic | $ | (0.03 | ) | $ | 0.17 | $ | (3.12 | ) | $ | (1.90 | ) | ||||
Common - diluted | $ | (0.03 | ) | $ | 0.17 | $ | (3.12 | ) | $ | (1.90 | ) |
• | our ability to make, complete and integrate acquisitions from affiliates or third-parties; |
• | business strategy and operations of Energy Transfer LP and its conflicts of interest with us; |
• | changes in the price of and demand for the motor fuel that we distribute and our ability to appropriately hedge any motor fuel we hold in inventory; |
• | our dependence on limited principal suppliers; |
• | competition in the wholesale motor fuel distribution and retail store industry; |
• | changing customer preferences for alternate fuel sources or improvement in fuel efficiency; |
• | changes in our credit rating, as assigned by rating agencies; |
• | a deterioration in the credit and/or capital markets; |
• | environmental, tax and other federal, state and local laws and regulations; |
• | the fact that we are not fully insured against all risk incidents to our business; |
• | dangers inherent in the storage and transportation of motor fuel; |
• | our ability to manage growth and/or control costs; |
• | our reliance on senior management, supplier trade credit and information technology; and |
• | our partnership structure, which may create conflicts of interest between us and Sunoco GP LLC, our general partner (“General Partner”), and its affiliates, and limits the fiduciary duties of our General Partner and its affiliates. |
• | References herein to “ETP” refer to Energy Transfer Partners, L.P. prior to its name change and Energy Transfer Operating, L.P. following its name change; |
• | References herein to “ETE” refer to Energy Transfer Equity, L.P. prior to its name change and Energy Transfer LP following its name change; |
• | 76 retail stores; |
• | 419 independently operated commission agent locations where we sell motor fuel to retail customers under commission arrangements with such operators; |
• | 6,615 retail stores operated by independent operators, which we refer to as “dealers” or “distributors,” pursuant to long-term distribution agreements; and |
• | 2,552 other commercial customers, including unbranded retail stores, other fuel distributors, school districts, municipalities and other industrial customers. |
• | Motor fuel gallons sold. One of the primary drivers of our business is the total volume of motor fuel sold through our channels. Fuel distribution contracts with our customers generally provide that we distribute motor fuel at a fixed, volume-based profit margin or at an agreed upon level of price support. As a result, gross profit is directly tied to the volume of motor fuel that we distribute. |
• | Gross profit per gallon. Gross profit per gallon is calculated as the gross profit on motor fuel (excluding non-cash fair value adjustments) divided by the number of gallons sold, and is typically expressed as cents per gallon. Our gross profit per gallon varies amongst our third-party relationships and is impacted by the availability of certain discounts and rebates from suppliers. Retail gross profit per gallon is heavily impacted by volatile pricing and intense competition from retail stores, supermarkets, club stores and other retail formats, which varies based on the market. |
• | Adjusted EBITDA and Distributable Cash Flow, as adjusted. Adjusted EBITDA as used throughout this document, is defined as earnings before net interest expense, income taxes, depreciation, amortization and accretion expense, allocated non-cash compensation expense, unrealized gains and losses on commodity derivatives and inventory fair value adjustments, and certain other operating expenses reflected in net income that we do not believe are indicative of ongoing core operations, such as gain or loss on disposal of assets and non-cash impairment charges. We define Distributable Cash Flow, as adjusted, as Adjusted EBITDA less cash interest expense, including the accrual of interest expense related to our long-term debt which is paid on a semi-annual basis, Series A Preferred distribution, current income tax expense, maintenance capital expenditures and other non-cash adjustments. |
• | Adjusted EBITDA is used as a performance measure under our revolving credit facility; |
• | securities analysts and other interested parties use such metrics as measures of financial performance, ability to make distributions to our unitholders and debt service capabilities; |
• | our management uses them for internal planning purposes, including aspects of our consolidated operating budget, and capital expenditures; and |
• | Distributable Cash Flow, as adjusted provides useful information to investors as it is a widely accepted financial indicator used by investors to compare partnership performance, and as it provides investors an enhanced perspective of the operating performance of our assets and the cash our business is generating. |
• | they do not reflect our total cash expenditures, or future requirements for capital expenditures or contractual commitments; |
• | they do not reflect changes in, or cash requirements for, working capital; |
• | they do not reflect interest expense or the cash requirements necessary to service interest or principal payments on our revolving credit facility or term loan; |
• | although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect cash requirements for such replacements; and |
• | as not all companies use identical calculations, our presentation of Adjusted EBITDA and Distributable Cash Flow, as adjusted may not be comparable to similarly titled measures of other companies. |
For the Three Months Ended September 30, | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
Fuel Distribution and Marketing | All Other | Total | Fuel Distribution and Marketing | All Other | Total | |||||||||||||||||||
(dollars and gallons in millions, except gross profit per gallon) | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Motor fuel sales | $ | 4,450 | $ | 212 | $ | 4,662 | $ | 2,435 | $ | 414 | $ | 2,849 | ||||||||||||
Rental income | 32 | 3 | 35 | 19 | 3 | 22 | ||||||||||||||||||
Other | 12 | 52 | 64 | 13 | 180 | 193 | ||||||||||||||||||
Total revenues | $ | 4,494 | $ | 267 | $ | 4,761 | $ | 2,467 | $ | 597 | $ | 3,064 | ||||||||||||
Gross profit: | ||||||||||||||||||||||||
Motor fuel sales | $ | 222 | $ | 25 | $ | 247 | $ | 158 | $ | 45 | $ | 203 | ||||||||||||
Rental | 32 | 3 | 35 | 19 | 3 | 22 | ||||||||||||||||||
Other | 7 | 44 | 51 | 13 | 78 | 91 | ||||||||||||||||||
Total gross profit | $ | 261 | $ | 72 | $ | 333 | $ | 190 | $ | 126 | $ | 316 | ||||||||||||
Income from continuing operations | 89 | 25 | 114 | 69 | 52 | 121 | ||||||||||||||||||
Income (loss) from discontinued operations, net of taxes | — | (2 | ) | (2 | ) | — | 17 | 17 | ||||||||||||||||
Net income and comprehensive income | $ | 89 | $ | 23 | $ | 112 | $ | 69 | $ | 69 | $ | 138 | ||||||||||||
Adjusted EBITDA (2) | $ | 183 | $ | 25 | $ | 208 | $ | 64 | $ | 135 | $ | 199 | ||||||||||||
Distributable Cash Flow, as adjusted (2) | $ | 149 | $ | 132 | ||||||||||||||||||||
Operating Data: | ||||||||||||||||||||||||
Motor fuel gallons sold (3) | 2,004 | 2,044 | ||||||||||||||||||||||
Motor fuel gross profit cents per gallon (1) (3) | 12.7 | ¢ | 14.9 | ¢ |
(1) | Includes other non-cash adjustments and excludes the impact of inventory adjustments consistent with the definition of Adjusted EBITDA. |
(2) | We define Adjusted EBITDA and Distributable Cash Flow, as adjusted as described above under “Key Measures Used to Evaluate and Assess Our Business.” |
(3) | Includes amounts from discontinued operations. The 2.20 cent per gallon decrease was primarily attributable to the divestiture of the majority of company-operated sites. |
Three Months Ended September 30, | |||||||||||
2018 | 2017 | Change | |||||||||
(in millions) | |||||||||||
Segment Adjusted EBITDA | |||||||||||
Fuel distribution and marketing | $ | 183 | $ | 64 | $ | 119 | |||||
All other | 25 | 135 | (110 | ) | |||||||
Total | 208 | 199 | 9 | ||||||||
Depreciation, amortization and accretion (1) | (42 | ) | (29 | ) | (13 | ) | |||||
Interest expense, net (1) | (35 | ) | (64 | ) | 29 | ||||||
Non-cash compensation expense (1) | (4 | ) | (9 | ) | 5 | ||||||
Gain (loss) on disposal of assets and impairment charges (1) | 8 | (34 | ) | 42 | |||||||
Unrealized loss on commodity derivatives (1) | — | 6 | (6 | ) | |||||||
Inventory fair value adjustments (1) | (7 | ) | 55 | (62 | ) | ||||||
Other non-cash adjustments | (4 | ) | — | (4 | ) | ||||||
Income before income tax (expense) benefit (1) | 124 | 124 | — | ||||||||
Income tax (expense) benefit (1) | (12 | ) | 14 | (26 | ) | ||||||
Net income and comprehensive income | $ | 112 | $ | 138 | $ | (26 | ) | ||||
Adjusted EBITDA | 208 | 199 | 9 | ||||||||
Cash interest expense (1) | 34 | 59 | (25 | ) | |||||||
Current income tax expense (1) | 16 | 5 | 11 | ||||||||
Maintenance capital expenditures (1) | 11 | 10 | 1 | ||||||||
Distributable Cash Flow | $ | 147 | $ | 125 | $ | 22 | |||||
Transaction-related expenses (1) | 2 | 14 | (12 | ) | |||||||
Series A Preferred distribution | — | (7 | ) | 7 | |||||||
Distributable Cash Flow, as adjusted | $ | 149 | $ | 132 | $ | 17 |
(1) | Includes amounts from discontinued operations. |
• | an increase in fuel distribution and marketing motor fuel revenue of $2.0 billion due to a 30.3%, or a $0.53, increase in the sales price per motor fuel gallon, and an increase in the motor fuel gallons sold of approximately 559 million; |
• | an increase in rental income of $13 million primarily due to the increase in commission agent sites in the current period; offset by |
• | a net decrease in other revenue of $331 million, which is comprised primarily of all other motor fuel, merchandise and other income. The decrease is primarily due to the conversion of 207 retail sites to commission agent sites during April 2018. |
• | an increase in fuel distribution and marketing gross profit on motor fuel of $64 million primarily due to an increase in motor fuel gallons sold of approximately 559 million, a 53.20%, or a $0.041, increase in the gross profit per motor fuel gallon which includes a one-time benefit of approximately $25 million related to a cash settlement with a fuel supplier, partially offset by a $58 million unfavorable change in the inventory adjustment compared to the prior year; offset by |
• | a net decrease in other gross profit consisting primarily of all other motor fuel, merchandise, rental and other of $47 million The decrease is primarily due to the conversion of 207 retail sites to commission agent sites during April 2018. |
• | a change in loss (gain) of disposal of assets of $16 million primarily due to a $8 million gain recognized in the third quarter of 2018 related to fixed assets disposals and adjustments; |
• | a net decrease in general and administrative expenses and other operating expense of $6 million primarily due to lower salaries and benefits; offset by |
• | an increase in depreciation, amortization and accretion expense of $8 million. |
For the Nine Months Ended September 30, | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
Fuel Distribution and Marketing | All Other | Total | Fuel Distribution and Marketing | All Other | Total | |||||||||||||||||||
(dollars and gallons in millions, except gross profit per gallon) | ||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Motor fuel sales | $ | 11,860 | $ | 860 | $ | 12,720 | $ | 6,988 | $ | 1,164 | $ | 8,152 | ||||||||||||
Rental income | 82 | 9 | 91 | 57 | 9 | 66 | ||||||||||||||||||
Other | 41 | 265 | 306 | 37 | 509 | 546 | ||||||||||||||||||
Total revenues | $ | 11,983 | $ | 1,134 | $ | 13,117 | $ | 7,082 | $ | 1,682 | $ | 8,764 | ||||||||||||
Gross profit: | ||||||||||||||||||||||||
Motor fuel sales | $ | 587 | $ | 92 | $ | 679 | $ | 383 | $ | 133 | $ | 516 | ||||||||||||
Rental | 82 | 9 | 91 | 57 | 9 | 66 | ||||||||||||||||||
Other | 35 | 134 | 169 | 30 | 219 | 249 | ||||||||||||||||||
Total gross profit | $ | 704 | $ | 235 | $ | 939 | $ | 470 | $ | 361 | $ | 831 | ||||||||||||
Income (loss) from continuing operations | 132 | (2 | ) | 130 | 112 | (8 | ) | 104 | ||||||||||||||||
Loss from discontinued operations, net of taxes | — | (265 | ) | (265 | ) | — | (187 | ) | (187 | ) | ||||||||||||||
Net income (loss) and comprehensive income (loss) | $ | 132 | $ | (267 | ) | $ | (135 | ) | $ | 112 | $ | (195 | ) | $ | (83 | ) | ||||||||
Adjusted EBITDA (2) | $ | 395 | $ | 62 | $ | 457 | $ | 248 | $ | 326 | $ | 574 | ||||||||||||
Distributable Cash Flow, as adjusted (2) | $ | 340 | $ | 367 | ||||||||||||||||||||
Operating Data: | ||||||||||||||||||||||||
Total motor fuel gallons sold (3) | 5,838 | 5,976 | ||||||||||||||||||||||
Motor fuel gross profit cents per gallon (1) (3) | 11.1 | ¢ | 15.2 | ¢ |
(1) | Includes other non-cash adjustments and excludes the impact of inventory adjustments consistent with the definition of Adjusted EBITDA. |
(2) | We define Adjusted EBITDA and Distributable Cash Flow, as adjusted as described above under “Key Measures Used to Evaluate and Assess Our Business.” |
(3) | Includes amounts from discontinued operations. The 4.10 cent per gallon decrease was primarily attributable to the divestiture of the majority of company-operated sites. |
Nine Months Ended September 30, | |||||||||||
2018 | 2017 | Change | |||||||||
(in millions) | |||||||||||
Segment Adjusted EBITDA | |||||||||||
Fuel distribution and marketing | $ | 395 | $ | 248 | $ | 147 | |||||
All other | 62 | 326 | (264 | ) | |||||||
Total | 457 | 574 | (117 | ) | |||||||
Depreciation, amortization and accretion (1) | (132 | ) | (155 | ) | 23 | ||||||
Interest expense, net (1) | (107 | ) | (184 | ) | 77 | ||||||
Non-cash compensation expense (1) | (10 | ) | (18 | ) | 8 | ||||||
Loss on disposal of assets and impairment charges (1) | (58 | ) | (367 | ) | 309 | ||||||
Loss on extinguishment of debt and other (1) | (129 | ) | — | (129 | ) | ||||||
Unrealized loss on commodity derivatives (1) | — | 5 | (5 | ) | |||||||
Inventory fair value adjustments (1) | 51 | 8 | 43 | ||||||||
Other non-cash adjustments | (10 | ) | — | (10 | ) | ||||||
Income (loss) before income tax (expense) benefit (1) | 62 | (137 | ) | 199 | |||||||
Income tax (expense) benefit (1) | (197 | ) | 54 | (251 | ) | ||||||
Net loss and comprehensive loss | $ | (135 | ) | $ | (83 | ) | $ | (52 | ) | ||
Adjusted EBITDA | 457 | 574 | (117 | ) | |||||||
Cash interest expense (1) | 102 | 172 | (70 | ) | |||||||
Current income tax expense (benefit) (1) | 479 | 7 | 472 | ||||||||
Transaction-related income taxes (2) | (470 | ) | — | (470 | ) | ||||||
Maintenance capital expenditures (1) | 16 | 35 | (19 | ) | |||||||
Distributable Cash Flow | $ | 330 | $ | 360 | $ | (30 | ) | ||||
Transaction-related expenses (1) | 12 | 22 | (10 | ) | |||||||
Series A Preferred distribution | (2 | ) | (15 | ) | 13 | ||||||
Distributable Cash Flow, as adjusted | $ | 340 | $ | 367 | $ | (27 | ) |
(1) | Includes amounts from discontinued operations. |
(2) | Transaction-related income taxes primarily related to the 7-Eleven Transaction. |
• | an increase in fuel distribution and marketing motor fuel revenue of $4.9 billion due to 26.2%, or a $0.45, increase in the sales price per motor fuel gallon, and an increase in the motor fuel gallons sold of approximately 1.4 billion; |
• | an increase in rental income of $25 million primarily due to the increase in commission agent sites in the current period; offset by |
• | a net decrease in other revenue of $544 million, which is comprised primarily of all other motor fuel, merchandise and other income. The decrease is primarily due to the conversion of 207 retail sites to commission agent sites during April 2018. |
• | an increase in the fuel distribution and marketing gross profit on motor fuel of $204 million primarily due to $42 million favorable change in the inventory adjustment compared to the prior year and a one-time cash benefit of approximately $25 million related to a cash settlement with a fuel supplier. Excluding the inventory adjustment change, we had an increase in the fuel distribution and marketing motor fuel gallons sold of approximately 1.4 billion and a 6.5%, or a $0.006, increase in the gross profit per motor fuel gallon; offset by |
• | a net decrease in other gross profit consisting of all other motor fuel, merchandise, rental and other of $96 million. The decrease is primarily due to the conversion of 207 retail sites to commission agent sites during April 2018. |
• | a decrease in loss (gain) on disposal of assets and impairment charge of $105 million; |
• | a decrease in rent expense of $8 million; |
• | a net decrease in general and administrative expenses and other operating expense of $6 million primarily due to lower salaries and benefits; offset by |
• | an increase in depreciation, amortization and accretion expense of $8 million. |
For the Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
(in millions) | |||||||
Net cash provided by (used in) | |||||||
Operating activities - continuing operations | $ | 275 | $ | 328 | |||
Investing activities - continuing operations | (240 | ) | (100 | ) | |||
Financing activities - continuing operations | (2,786 | ) | (340 | ) | |||
Discontinued operations | 2,738 | 101 | |||||
Net decrease in cash and cash equivalents | $ | (13 | ) | $ | (11 | ) |
• | borrowed $2.2 billion under our 2018 Senior Notes offering, comprised of $1.0 billion in aggregate principal amount of 4.875% senior notes due 2023, $800 million in aggregate principal amount of 5.500% senior notes due 2026 and $400 million in aggregate principal amount of 5.875% senior notes due 2028; |
• | borrowed $2.1 billion and repaid $2.4 billion under our 2014 Revolver to fund daily operations; |
• | redeemed $2.2 billion of our existing senior notes as of December 31, 2017, comprised of $800 million in aggregate principal amount of 6.250% senior notes due 2021, $600 million in aggregate principal amount of 5.500% senior notes due 2020, and $800 million in aggregate principal amount of 6.375% senior notes due 2023; |
• | repaid $1.2 billion Term Loan in full and terminated it; |
• | redeemed the outstanding Series A Preferred Units held by ETE for $300 million and a call premium of $3 million; |
• | repurchased 17,286,859 SUN common units owned by ETP for aggregate cash consideration of approximately $540 million ; and |
• | paid $295 million in distributions to our unitholders, of which $151 million was paid to ETP and ETE collectively. |
Owned | Leased | ||||
Dealer and commission agent sites | 620 | 318 | |||
Company-operated retail stores | 6 | 70 | |||
Warehouses, offices and other | 71 | 75 | |||
Total | 697 | 463 |
• | interest rate risk on short-term borrowings; and |
• | the impact of interest rate movements on our ability to obtain adequate financing to fund future acquisitions. |
Exhibit No. | Description | |
31.1 * | ||
31.2 * | ||
32.1 ** | ||
32.2 ** | ||
99.1 * | ||
101.INS * | XBRL Instance Document | |
101.SCH * | XBRL Taxonomy Extension Schema Document | |
101.CAL * | XBRL Taxonomy Extension Calculation | |
101.DEF * | XBRL Taxonomy Extension Definition | |
101.LAB * | XBRL Taxonomy Extension Label Linkbase | |
101.PRE * | XBRL Taxonomy Extension Presentation | |
* - | Filed herewith. | |
** - | Furnished herewith |
SUNOCO LP | ||
By | Sunoco GP LLC, its general partner | |
Date: November 8, 2018 | By | /s/ Thomas R. Miller |
Thomas R. Miller | ||
Chief Financial Officer (On behalf of the registrant and in his capacity as chief financial officer) | ||
By | /s/ Camilla A. Harris | |
Camilla A. Harris | ||
Vice President, Controller and Principal Accounting Officer (In her capacity as principal accounting officer) |
1. | I have reviewed this quarterly report on Form 10-Q of Sunoco LP; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 8, 2018 | /s/ Joseph Kim |
Joseph Kim | |
President and Chief Executive Officer of Sunoco GP LLC, the general partner of Sunoco LP |
1. | I have reviewed this quarterly report on Form 10-Q of Sunoco LP; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 8, 2018 | /s/ Thomas R. Miller |
Thomas R. Miller | |
Chief Financial Officer of Sunoco GP LLC, the general partner of Sunoco LP |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership. |
Date: November 8, 2018 | /s/ Joseph Kim |
Joseph Kim | |
President and Chief Executive Officer of Sunoco GP LLC, the general partner of Sunoco LP |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership. |
Date: November 8, 2018 | /s/ Thomas R. Miller |
Thomas R. Miller | |
Chief Financial Officer of Sunoco GP LLC, the general partner of Sunoco LP |
Page | |
Balance Sheets | 1 |
Statements of Operations | 2 |
Statement of Equity | 3 |
Statements of Cash Flows | 4 |
Notes to Financial Statements | 5 |
September 30, 2018 | December 31, 2017 | ||||||
ASSETS | |||||||
Current Assets: | |||||||
Advances to affiliated companies | $ | 78 | $ | 52 | |||
Total current assets | 78 | 52 | |||||
Investment in unconsolidated affiliate | 230 | 282 | |||||
Total assets | $ | 308 | $ | 334 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities: | |||||||
Accrued and other current liabilities | $ | 3 | $ | 3 | |||
Total current liabilities | 3 | 3 | |||||
Commitments and contingencies | |||||||
Equity: | |||||||
Member’s equity | 305 | 331 | |||||
Total equity | 305 | 331 | |||||
Total liabilities and equity | $ | 308 | $ | 334 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Income (loss) from unconsolidated affiliate | $ | 12 | $ | 11 | $ | (26 | ) | $ | (18 | ) | |||||
Net income (loss) | $ | 12 | $ | 11 | $ | (26 | ) | $ | (18 | ) |
Total | |||
Balance, December 31, 2017 | $ | 331 | |
Net loss | (26 | ) | |
Balance, September 30, 2018 | $ | 305 |
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (26 | ) | $ | (18 | ) | |
Reconciliation of net loss to net cash provided by operating activities: | |||||||
Loss from unconsolidated affiliate | 26 | 18 | |||||
Distributions from unconsolidated affiliate | 26 | 26 | |||||
Net cash provided by operating activities | 26 | 26 | |||||
Cash flows from financing activities: | |||||||
Advances to Sunoco, Inc. | (26 | ) | (26 | ) | |||
Net cash used in financing activities | (26 | ) | (26 | ) | |||
Change in cash and cash equivalents | — | — | |||||
Cash and cash equivalents, beginning of period | — | — | |||||
Cash and cash equivalents, end of period | $ | — | $ | — |
1. | Operations and Organization: |
• | References herein to “ETP” refer to Energy Transfer Partners, L.P. prior to its name change and Energy Transfer Operating, L.P. following its name change; |
• | References herein to “ETE” refer to Energy Transfer Equity, L.P. prior to its name change and Energy Transfer LP following its name change; |
2. | Summary of Significant Accounting Policies: |
4. | Commitments and Contingencies: |
Document And Entity Information - shares |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2018 |
Nov. 02, 2018 |
|
Document Information [Line Items] | |||
Entity Registrant Name | SUNOCO LP | ||
Entity Central Index Key | 0001552275 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-Q | ||
Document Period End Date | Sep. 30, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | Q3 | ||
Amendment Flag | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Subsequent Event [Member] | Common Units [Member] | |||
Document Information [Line Items] | |||
Entity Partnership Units Outstanding | 82,513,643 | ||
Subsequent Event [Member] | Common Class C [Member] | |||
Document Information [Line Items] | |||
Entity Partnership Units Outstanding | 16,410,780 |
Consolidated Balance Sheets (Parenthetical) - shares |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Series A Preferred Units [Member] | ||
Equity: | ||
Limited partners' capital account, units issued (in shares) | 0 | 12,000,000 |
Limited Partners' Capital Account, Units Outstanding | 0 | 12,000,000 |
Common Units [Member] | ||
Equity: | ||
Limited partners' capital account, units issued (in shares) | 99,667,999 | |
Limited Partners' Capital Account, Units Outstanding | 82,513,643 | 99,667,999 |
Class C Units - Held by Subsidiary [Member] | ||
Equity: | ||
Limited partners' capital account, units issued (in shares) | 16,410,780 | 16,410,780 |
Limited Partners' Capital Account, Units Outstanding | 16,410,780 | 16,410,780 |
Consolidated Statement of Equity - USD ($) $ in Millions |
Total |
Common Units |
Preferred Units-Affiliated |
---|---|---|---|
Cumulative effect of change in revenue recognition accounting principle | $ (54) | $ (54) | $ 0 |
Beginning balance at Dec. 31, 2017 | 2,247 | 1,947 | 300 |
Repurchase of common units | (540) | (540) | 0 |
Redemption of Preferred units | (300) | 0 | (300) |
Cash distribution to unitholders | (281) | 281 | 0 |
Distribution to preferred units | (2) | 0 | 2 |
Unit-based compensation | 10 | 10 | 0 |
Partnership net income (loss) | (135) | (137) | 2 |
Ending balance at Sep. 30, 2018 | $ 945 | $ 945 | $ 0 |
Consolidated Statements of Cash Flows - USD ($) $ in Millions |
9 Months Ended | ||||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
||||
Cash flows from operating activities: | |||||
Net income (loss) | $ (135) | $ (83) | |||
Adjustments to reconcile net income (loss) to net cash provided by continuing operating activities: | |||||
Loss from discontinued operations | 265 | 187 | |||
Depreciation, amortization and accretion | 132 | ||||
Loss on disposal of assets and impairment charges | [1] | 58 | 367 | ||
Loss on extinguishment of debt and other | [1] | (129) | 0 | ||
Non-cash unit based compensation expense | [1] | 10 | 18 | ||
Changes in operating assets and liabilities, net of acquisitions: | |||||
Accounts receivable | (137) | ||||
Cash flows from investing activities: | |||||
Capital expenditures | [1] | (62) | (139) | ||
Cash flows from discontinued operations: | |||||
Net increase (decrease) in cash | (13) | (11) | |||
Cash and cash equivalents at beginning of period | 28 | 103 | |||
Cash and cash equivalents at end of period | 15 | ||||
Continuing Operations [Member] | |||||
Adjustments to reconcile net income (loss) to net cash provided by continuing operating activities: | |||||
Loss from discontinued operations | 265 | 187 | |||
Depreciation, amortization and accretion | 132 | 124 | |||
Amortization of deferred financing fees | 4 | 12 | |||
Loss on disposal of assets and impairment charges | (3) | 102 | |||
Loss on extinguishment of debt and other | 109 | 0 | |||
Non-cash unit based compensation expense | 10 | 18 | |||
Deferred income tax | (21) | 59 | |||
Inventory valuation adjustment | (51) | (8) | |||
Changes in operating assets and liabilities, net of acquisitions: | |||||
Accounts receivable | (40) | 89 | |||
Receivable from affiliates | 21 | (137) | |||
Inventories | 30 | 31 | |||
Other assets | (42) | 6 | |||
Accounts payable | (20) | (31) | |||
Accounts payable to affiliates | (46) | 86 | |||
Accrued expenses and other current liabilities | 17 | (28) | |||
Other noncurrent liabilities | 3 | 19 | |||
Net cash provided by continuing operating activities | 275 | 328 | |||
Cash flows from investing activities: | |||||
Capital expenditures | (62) | (75) | |||
Purchase of intangible assets | (2) | (29) | |||
Proceeds from disposal of property and equipment | 26 | 4 | |||
Net cash used in investing activities | (240) | (100) | |||
Cash flows from financing activities: | |||||
Proceeds from issuance of long-term debt | 2,200 | 0 | |||
Payments on long-term debt | (3,448) | (4) | |||
Payments for debt extinguishment costs | (93) | 0 | |||
Revolver borrowings | 2,100 | 1,894 | |||
Revolver repayments | (2,372) | (2,250) | |||
Loan origination costs | (35) | 0 | |||
Advances from affiliates | 0 | 1 | |||
Equity issued to ETE, net of issuance costs | 0 | (300) | |||
Proceeds from issuance of common units, net of offering costs | 0 | 33 | |||
Common unit repurchase | 540 | 0 | |||
Redemption of equity issued to ETE | (303) | 0 | |||
Other cash from financing activities, net | 0 | (2) | |||
Distributions to unitholders | (295) | (312) | |||
Net cash used in financing activities | (2,786) | (340) | |||
Discontinued Operations, Disposed of by Sale [Member] | |||||
Cash flows from discontinued operations: | |||||
Operating activities | (480) | 160 | |||
Investing activities | 3,207 | (57) | |||
Changes in cash included in current assets held for sale | 11 | (2) | |||
Net Cash Provided by (Used in) Discontinued Operations | 2,738 | 101 | |||
Superior Plus Corporation [Member] | |||||
Cash flows from investing activities: | |||||
Payments to Acquire Businesses, Gross | (58) | 0 | |||
7-Eleven sales [Member] | |||||
Cash flows from investing activities: | |||||
Payments to Acquire Businesses, Gross | $ (54) | $ 0 | |||
|
Organization and Principles of Consolidation |
9 Months Ended | ||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 | |||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||
Organization and Principles of Consolidation | Organization and Principles of Consolidation As used in this document, the terms “Partnership,” “SUN,” “we,” “us,” and “our” should be understood to refer to Sunoco LP and our consolidated subsidiaries, unless the context clearly indicates otherwise. We are managed by Sunoco GP LLC, our general partner (“General Partner”). As of September 30, 2018, Energy Transfer Equity, L.P. (“ETE”), a publicly traded master limited partnership, owned 100% of the membership interests in our General Partner, a 2.3% limited partner interest in us and all of our incentive distribution rights. Energy Transfer Partners, L.P. (“ETP”), another publicly traded master limited partnership which is also controlled by ETE, owned a 26.5% limited partner interest in us as of September 30, 2018. In October 2018, ETE and ETP completed the previously announced merger of ETP with a wholly-owned subsidiary of ETE in a unit-for-unit exchange. Following the closing of the merger, ETE changed its name to “Energy Transfer LP” and its common units began trading on the New York Stock Exchange under the “ET” ticker symbol on Friday, October 19, 2018. In addition, ETP changed its name to “Energy Transfer Operating, L.P.” For purposes of maintaining clarity, the following references are used herein:
In connection with the transaction, immediately prior to closing, ETE contributed 2,263,158 of our common units to ETP in exchange for 2,874,275 ETP common units, and contributed 100% of the limited liability company interests in our General Partner and all of our incentive distribution rights to ETP in exchange for 42,812,389 ETP common units. As a result, following the transaction, ETP directly owns our General Partner, all of our incentive distribution rights and approximately 34.5% of our common units, which constitutes a 28.8% limited partner interest in us. The consolidated financial statements are composed of Sunoco LP, a publicly traded Delaware limited partnership, and our wholly-owned subsidiaries. We distribute motor fuels across more than 30 states throughout the East Coast, Midwest, South Central and Southeast regions of the United States from Maine to Florida and from Florida to New Mexico, as well as Hawaii. We also operate retail stores in Hawaii, New Jersey and Texas. On April 6, 2017, certain subsidiaries of the Partnership (collectively, the “Sellers”) entered into an Asset Purchase Agreement (the “7-Eleven Purchase Agreement”) with 7-Eleven, Inc., a Texas corporation (“7-Eleven”) and SEI Fuel Services, Inc., a Texas corporation and wholly-owned subsidiary of 7-Eleven (“SEI Fuel,” and, together with 7-Eleven, referred to herein collectively as “Buyers”). On January 23, 2018, we completed the disposition of assets pursuant to the Amended and Restated Asset Purchase Agreement entered by and among Sellers, Buyers and certain other named parties for the limited purposes set forth therein, pursuant to which the parties agreed to amend and restate the 7-Eleven Purchase Agreement to reflect commercial agreements and updates made by the parties in connection with consummation of the transactions contemplated by the 7-Eleven Purchase Agreement. Under the 7-Eleven Purchase Agreement, as amended and restated, we sold a portfolio of 1,030 company operated retail fuel outlets, together with ancillary businesses and related assets to Buyers for approximately $3.2 billion (the “7-Eleven Transaction”). On January 18, 2017, with the assistance of a third-party brokerage firm, we launched a portfolio optimization plan to market and sell 97 real estate assets located in Florida, Louisiana, Massachusetts, Michigan, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Texas and Virginia. The results of these operations (the real estate optimization assets, together with the 7-Eleven Transaction, the “Retail Divestment”) have been reported as discontinued operations for all periods presented in the consolidated financial statements. See Note 4 for more information related to the 7-Eleven Purchase Agreement, the optimization plan, and the discontinued operations. On April 1, 2018, the Partnership completed the conversion of 207 retail sites located in certain West Texas, Oklahoma and New Mexico markets to a single commission agent. Our primary operations are conducted by the following consolidated subsidiaries:
All significant intercompany accounts and transactions have been eliminated in consolidation. Certain items have been reclassified for presentation purposes to conform to the accounting policies of the consolidated entity. These reclassifications had no material impact on gross profit, income from operations, net income (loss) and comprehensive income (loss), the balance sheets or statements of cash flows. |
Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Interim Financial Statements The accompanying interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Pursuant to Regulation S-X, certain information and disclosures normally included in the annual financial statements have been condensed or omitted. The consolidated financial statements and notes included herein should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2017 filed with the SEC on February 23, 2018. Significant Accounting Policies As of September 30, 2018, the only material change in the Partnership's significant accounting policies, as compared to those described in the Annual Report on Form 10-K for the year ended December 31, 2017, was the adoption of Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, described below under Recently Adopted Accounting Pronouncement. Motor Fuel and Sales Taxes For bulk sales, certain motor fuel and sales taxes are collected from customers and remitted to governmental agencies either directly by the Partnership or through suppliers. The Partnership’s accounting policy for direct sales to dealer and commercial customers is to exclude the collected motor fuel tax from sales and cost of sales. For other locations where the Partnership holds inventory, including commission agent arrangements and Partnership-operated retail locations, motor fuel sales and motor fuel cost of sales include motor fuel taxes. Such amounts were $97 million and $107 million for the three months ended September 30, 2018 and 2017, respectively, and $280 million and $303 million for the nine months ended September 30, 2018 and 2017, respectively. Merchandise sales and cost of merchandise sales are reported net of sales tax in the accompanying Consolidated Statements of Operations and Comprehensive Income (Loss). Recently Issued Accounting Pronouncements FASB ASU No. 2016-02. In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which establishes the principles that lessees and lessors shall apply to report information about the amount, timing, and uncertainty of cash flows arising from a lease. The update requires lessees to record virtually all leases on their balance sheets. For lessors, this amended guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. In January 2018, the FASB issued ASU No. 2018-01 (“ASU 2018-01”), which provides an optional transition practical expedient to not evaluate under Topic 842 existing or expired land easements that were not previously accounted for as leases under the existing lease guidance in Topic 840. The Partnership plans to elect the package of transition practical expedients and will adopt this standard beginning with its first quarter of fiscal 2019 and apply it retrospectively at the beginning of the period of adoption through a cumulative-effect adjustment to retained earnings. The Partnership has performed several procedures to evaluate the impact of the adoption of this standard on the financial statements and disclosures and address the implications of Topic 842 on future lease arrangements. The procedures include reviewing all forms of leases, performing a completeness assessment over the lease population, establishing processes and controls to timely identify new and modified lease agreements, educating its employees on these new processes and controls and implementing a third-party supported lease accounting information system to account for our leases in accordance with the new standard. However, we are still in the process of quantifying this impact. We expect that upon adoption most of the Partnership’s lease commitments will be recognized as right of use assets and lease obligations. Recently Adopted Accounting Pronouncement FASB ASU No. 2014-09. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, as a new Topic, Accounting Standards Codification (“ASC”) Topic 606. On January 1, 2018 we adopted ASC Topic 606, which is effective for interim and annual reporting periods beginning on or after December 15, 2017. The new standard requires us to recognize revenue when a customer obtains control rather than when we have transferred substantially all risks and rewards of a good or service and requires expanded disclosures. It also outlines a single comprehensive model to use in accounting for revenue arising from contracts with customers and supersedes ASC 605 - Revenue Recognition and industry-specific guidance. We have completed a detailed review of revenue contracts representative of our business segments and their revenue streams as of the adoption date. As a result of the evaluation performed, we have determined that the timing and amount of revenue that we recognize on certain contracts is impacted by the adoption of the new standard. These adjustments are primarily related to the change in recognition of dealer incentives and rebates. In addition to the evaluation performed, we have made appropriate design and implementation updates to our business processes, systems and internal controls to support recognition and disclosure under the new standard. The Partnership has elected to apply the modified retrospective method to adopt the new standard. The implementation of the new standard has an impact on the measurement of recognition of revenue. The cumulative and ongoing effects of the adoption impact the Consolidated Balance Sheet, the Consolidated Statement of Operations and Comprehensive Income (Loss), and the Statement of Equity. Additionally, new disclosures have been added in accordance with ASC Topic 606. Utilizing the practical expedients allowed under the modified retrospective adoption method, ASC Topic 606 was only applied to existing contracts for which the Partnership has remaining performance obligations as of January 1, 2018, and new contracts entered into after January 1, 2018. ASC Topic 606 was not applied to contracts that were completed prior to January 1, 2018. For contracts in scope of the new revenue standard as of January 1, 2018, we recognized a cumulative effect adjustment to retained earnings to account for the differences in timing of revenue recognition. The comparative information has not been restated under the modified retrospective method and continues to be reported under the accounting standards in effect for those periods. The material adjustments to the opening balance sheet primarily relate to a change in timing of revenue recognition for variable consideration, such as incentives paid to customers, as well as a change in timing of revenue recognition for franchise fee revenue. Historically, an asset was recognized related to the contract incentives which was amortized over the life of the agreement. Under the new standard, the timing of the recognition of incentives changed due to application of the expected value method to estimate variable consideration. Additionally, under the new standard the change in timing of franchise fee revenue is due to the treatment of revenue recognition from the symbolic license over the term of the agreement. The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet for the adoption of ASU No. 2014-09 was as follows:
The adoption of the new revenue standard resulted in reclassifications to/from revenue, cost of sales, and operating expenses. Additionally, changes in timing of revenue recognition have required the creation of contract asset or contract liability balances, as well as certain balance sheet reclassifications. In accordance with the requirements of Topic 606, the disclosure below shows the impact of adopting the new standard on the statement of operations and comprehensive income (loss) and the balance sheet.
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Acquisitions |
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Business Combinations [Abstract] | |
Acquisitions | Acquisitions On October 16, 2018, our subsidiary, Sunoco LLC, completed the acquisition of BRENCO Marketing Corporation’s fuel distribution business for approximately $24 million plus working capital adjustments. The acquired wholesale fuels business distributes approximately 95 million gallons of fuel annually across a network of approximately 160 dealer and commission agent-operated locations and 100 commercial accounts in Central and East Texas. On August 1, 2018, our subsidiary, Sunoco LLC, completed the acquisition of the equity interests of Sandford Energy, LLC, Sandford Transportation, LLC and their respective subsidiaries for approximately $66 million plus working capital and other adjustments. The acquired wholesale fuels business distributes approximately 115 million gallons of fuel annually to exploration, drilling and oil field services customers, primarily in basins in Central and West Texas and Oklahoma. Management, with the assistance of a third party valuation firm, is in the process of evaluating the initial purchase price allocation. As a result, material adjustments to this preliminary allocation may occur in the future. The acquisition preliminarily increased goodwill by $65 million. On April 25, 2018, our subsidiary, Sunoco LLC, completed the acquisition of wholesale fuel distribution assets and related terminal assets from Superior Plus Energy Services, Inc. for approximately $40 million plus working capital adjustments of $18 million. The assets consist of a network of approximately 100 dealers, several hundred commercial contracts and three terminals, which are connected to major pipelines serving the Upstate New York market. Management, with the assistance of a third party valuation firm, is in the process of evaluating the initial purchase price allocation. As a result, material adjustments to this preliminary allocation may occur in the future. The acquisition preliminarily increased goodwill by $10 million. On April 2, 2018, certain subsidiaries of the Partnership completed the acquisition of 26 retail fuel outlets from 7-Eleven and SEI Fuel for approximately $54 million. We subsequently converted the acquired stations from company-operated sites to commission agent locations. Management, with the assistance of a third party valuation firm, is in the process of evaluating the initial purchase price allocation. As a result, material adjustments to this preliminary allocation may occur in the future. The acquisition preliminarily increased goodwill by $29 million. |
Discontinued Operations (Notes) |
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Discontinued Operations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Discontinued Operations On January 23, 2018, we completed the disposition of assets pursuant to the Amended and Restated Asset Purchase Agreement entered by and among Sellers, Buyers and certain other named parties for the limited purposes set forth therein, pursuant to which the parties agreed to amend and restate the 7-Eleven Purchase Agreement to reflect commercial agreements and updates made by the parties in connection with consummation of the transactions contemplated by the 7-Eleven Purchase Agreement. Subsequent to the closing of the 7-Eleven Transaction, previously eliminated wholesale motor fuel sales to the Partnership's retail locations are reported as wholesale motor fuel sales to third parties. Also, the related accounts receivable from such sales are no longer eliminated from the consolidated balance sheets and are reported as accounts receivable. In connection with the closing of the transactions contemplated by the 7-Eleven Purchase Agreement, we entered into a Distributor Motor Fuel Agreement dated as of January 23, 2018 (the “Supply Agreement”), with 7-Eleven and SEI Fuel. The Supply Agreement consists of a 15-year take-or-pay fuel supply arrangement under which we have agreed to supply approximately 2.0 billion gallons of fuel annually plus additional aggregate growth volumes of up to 500 million gallons to be added incrementally over the first four years. For the period from January 1, 2018 through January 22, 2018, and the three and nine months ended September 30, 2017, we recorded sales to the sites that were subsequently sold to 7-Eleven of $199 million, $926 million, and $2.4 billion, respectively, that were eliminated in consolidation. We received payments on trade receivables from 7-Eleven of $1.0 billion and $2.6 billion during the three and nine months ended September 30, 2018, subsequent to the closing of the sale. On January 18, 2017, with the assistance of a third-party brokerage firm, we launched a portfolio optimization plan to market and sell 97 real estate assets. Real estate assets included in this process are company-owned locations, undeveloped greenfield sites and other excess real estate. Properties are located in Florida, Louisiana, Massachusetts, Michigan, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Texas and Virginia. The properties will be sold through a sealed-bid sale. Of the 97 properties, 50 have been sold, one is under contract to be sold and five continue to be marketed by the third-party brokerage firm. Additionally, 32 were sold to 7-Eleven and nine are part of the approximately 207 retail sites located in certain West Texas, Oklahoma and New Mexico markets which are operated by a commission agent. The Partnership has concluded that it meets the accounting requirements for reporting the financial position, results of operations and cash flows of the Retail Divestment as discontinued operations. See Note 1 for further information regarding the Retail Divestment. The following tables present the aggregate carrying amounts of assets and liabilities classified as held for sale in the Consolidated Balance Sheets:
The Partnership recorded transaction costs of $6 million during the nine months ended September 30, 2018, as a result of the 7-Eleven Transaction. The results of operations associated with discontinued operations are presented in the following table:
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Accounts Receivable, net | Accounts Receivable, net Accounts receivable, net, consisted of the following:
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Inventories, net | Inventories, net Inventories, net, consisted of the following:
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Property and Equipment, net |
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Property and Equipment, net | Property and Equipment, net Property and equipment, net, consisted of the following:
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Goodwill and Other Intangible Assets | Goodwill and Intangible Assets, net Goodwill Goodwill represents the excess of the purchase price of an acquired entity over the amounts allocated to the assets acquired and liabilities assumed in a business combination. At September 30, 2018 and December 31, 2017, we had $1.5 billion and $1.4 billion, respectively, of goodwill recorded in conjunction with past business combinations. As of September 30, 2018, we evaluated potential impairment indicators. We believe no impairment events occurred during the nine months ended September 30, 2018, and we believe the assumptions used in the analysis performed in 2017 are still relevant and indicative of our current operating environment. As a result, no impairment was recorded to goodwill during the period from January 1, 2018 through September 30, 2018. Other Intangible Assets Gross carrying amounts and accumulated amortization for each major class of intangible assets, excluding goodwill, consisted of the following:
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We review amortizable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If such a review should indicate that the carrying amount of amortizable intangible assets is not recoverable, we reduce the carrying amount of such assets to fair value. We review non-amortizable intangible assets for impairment annually, or more frequently if circumstances dictate. Customer relations and supply agreements have a remaining weighted-average life of approximately 11 years. Favorable leasehold arrangements have a remaining weighted-average life of approximately 13 years. Other intangible assets have a remaining weighted-average life of approximately 10 years. Loan origination costs have a remaining weighted-average life of approximately 4 years. |
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Accrued Expenses And Other Current Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Current accrued expenses and other current liabilities consisted of the following:
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Long-Term Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | Long-Term Debt Long-term debt consisted of the following:
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Term Loan The senior secured term loan agreement (the “Term Loan”) provided secured financing in an aggregate principal amount of up to $2.035 billion, which we borrowed in full. The Term Loan was repaid in full and terminated on January 23, 2018. See 2018 Private Offering of Senior Notes below. 2018 Private Offering of Senior Notes On January 23, 2018, we and certain of our wholly owned subsidiaries, including Sunoco Finance Corp. (together with the Partnership, the “Issuers”) completed a private offering of $2.2 billion of senior notes, comprised of $1.0 billion in aggregate principal amount of 4.875% senior notes due 2023 (the “2023 Notes”), $800 million in aggregate principal amount of 5.500% senior notes due 2026 (the “2026 Notes”) and $400 million in aggregate principal amount of 5.875% senior notes due 2028 (the “2028 Notes” and, together with the 2023 Notes and the 2026 Notes, the “Notes”). The terms of the Notes are governed by an indenture dated January 23, 2018, among the Issuers, and certain other subsidiaries of the Partnership (the “Guarantors”) and U.S. Bank National Association, as trustee. The 2023 Notes will mature on January 15, 2023 and interest is payable semi-annually on January 15 and July 15 of each year, commencing July 15, 2018. The 2026 Notes will mature on February 15, 2026 and interest is payable semi-annually on February 15 and August 15 of each year, commencing August 15, 2018. The 2028 Notes will mature on March 15, 2028 and interest is payable semi-annually on March 15 and September 15 of each year, commencing September 15, 2018. The Notes are senior obligations of the Issuers and are guaranteed on a senior basis by all of the Partnership’s existing subsidiaries and certain of its future subsidiaries. The Notes and guarantees are unsecured and rank equally with all of the Issuers’ and each Guarantor’s existing and future senior obligations. The Notes and guarantees are effectively subordinated to the Issuers’ and each Guarantor’s secured obligations, including obligations under the Partnership’s 2018 Revolver (as defined below), to the extent of the value of the collateral securing such obligations, and structurally subordinated to all indebtedness and obligations, including trade payables, of the Partnership’s subsidiaries that do not guarantee the Notes. ETC M-A Acquisition LLC (“ETC M-A”), a subsidiary of ETP, guarantees collection to the Issuers with respect to the payment of the principal amount of the Notes. ETC M-A is not subject to any of the covenants under the Indenture. In connection with our issuance of the Notes, we entered into a registration rights agreement with the initial purchasers pursuant to which we agreed to complete an offer to exchange the Notes for an issue of registered notes with terms substantively identical to each series of Notes and evidencing the same indebtedness as the Notes on or before January 23, 2019. The Partnership used the proceeds from the private offering, along with proceeds from the 7-Eleven Transaction, to: 1) redeem in full our existing senior notes as of December 31, 2017, comprised of $800 million in aggregate principal amount of 6.250% senior notes due 2021, $600 million in aggregate principal amount of 5.500% senior notes due 2020, and $800 million in aggregate principal amount of 6.375% senior notes due 2023; 2) repay in full and terminate the Term Loan; 3) pay all closing costs in connection with the 7-Eleven Transaction; 4) redeem the outstanding Series A Preferred Units held by ETE for an aggregate redemption amount of approximately $313 million; and 5) repurchase 17,286,859 SUN common units owned by subsidiaries of ETP for aggregate cash consideration of approximately $540 million. 6.250% Senior Notes Due 2021 The 2021 Senior Notes were redeemed and the indenture governing the 2021 Senior Notes was discharged on January 23, 2018. The redemption amount includes the original consideration of $800 million and a $32 million call premium plus accrued and unpaid interest. See 2018 Private Offering of Senior Notes above. 5.500% Senior Notes Due 2020 The 2020 Senior Notes were redeemed and the indenture governing the 2020 Senior Notes was discharged on January 23, 2018. The redemption amount includes the original consideration of $600 million and a $17 million call premium plus accrued and unpaid interest. See 2018 Private Offering of Senor Notes above. 6.375% Senior Notes Due 2023 The 2023 Senior Notes were redeemed and the indenture governing the 2023 Senior Notes was discharged on January 23, 2018. The redemption amount includes the original consideration of $800 million and a $44 million call premium plus accrued and unpaid interest. See 2018 Private Offerings of Senior Notes above. Revolving Credit Agreement On July 27, 2018, we entered into a new Amended and Restated Credit Agreement among the Partnership, as borrower, the lenders from time to time party thereto and Bank of America, N.A., as administrative agent, collateral agent, swingline lender and a line of credit issuer (the “2018 Revolver”). Borrowings under the 2018 Revolver were used to pay off the Partnership’s existing revolving credit facility entered into on September 25, 2014 (the “2014 Revolver”). The 2018 Revolver is a $1.50 billion revolving credit facility, expiring July 27, 2023 (which date may be extended in accordance with the terms of the 2018 Revolver). The facility can be increased from time to time upon the Partnership’s written request, subject to certain conditions, up to an additional $750 million. Borrowings under the revolving credit facility will bear interest at a base rate (a rate based off of the higher of (a) the Federal Funds Rate (as defined in the 2018 Revolver) plus 0.5%, (b) Bank of America’s prime rate and (c) one-month LIBOR (as defined therein) plus 1.00%) or LIBOR, in each case plus an applicable margin ranging from 1.25% to 2.25%, in the case of a LIBOR loan, or from 0.250% to 1.25%, in the case of a base rate loan (determined with reference to the Partnership’s Net Leverage Ratio as defined in the 2018 Revolver). Upon the first achievement by the Partnership of an investment grade credit rating, the applicable margin will decrease to a range of 1.125% to 1.75%, in the case of a LIBOR loan, or from 0.125% to 0.750%, in the case of a base rate loan (determined with reference to the credit rating for the Partnership’s senior, unsecured, non-credit enhanced long-term debt and the Partnership’s corporate issuer rating). Interest is payable quarterly if the base rate applies, at the end of the applicable interest period if LIBOR applies and at the end of the month if daily floating LIBOR applies. In addition, the unused portion of the Partnership’s revolving credit facility will be subject to a commitment fee ranging from 0.250% to 0.350%, based on the Partnership’s Leverage Ratio. Upon the first achievement by the Partnership of an investment grade credit rating, the commitment fee will decrease to a range of 0.125% to 0.350%, based on the Partnership’s credit rating as described above. The 2018 Revolver requires the Partnership to maintain a Net Leverage Ratio of not more than 5.50 to 1.00. The maximum Net Leverage Ratio is subject to upwards adjustment of not more than 6.00 to 1.00 for a period not to exceed three fiscal quarters in the event the Partnership engages in certain specified acquisitions of not less than $50 million (as permitted under the 2018 Revolver). The 2018 Revolver also requires the Partnership to maintain an Interest Coverage Ratio (as defined in the 2018 Revolver) of not less than 2.25 to 1.00. Indebtedness under the 2018 Revolver is secured by a security interest in, among other things, all of the Partnership’s present and future personal property and all of the present and future personal property of its guarantors, the capital stock of its material subsidiaries (or 66% of the capital stock of material foreign subsidiaries), and any intercompany debt. Upon the first achievement by the Partnership of an investment grade credit rating, all security interests securing the 2018 Revolver will be released. As of September 30, 2018, the balance on the 2018 Revolver was $493 million, and $8 million in standby letters of credit were outstanding. The unused availability on the 2018 Revolver at September 30, 2018 was $999 million. The Partnership was in compliance with all financial covenants at September 30, 2018. Sale Leaseback Financing Obligation On April 4, 2013, Southside Oil, LLC (“Southside”) completed a sale leaseback transaction with two separate companies for 50 of its dealer operated sites. As Southside did not meet the criteria for sale leaseback accounting, this transaction was accounted for as a financing arrangement over the course of the lease agreement. The obligations mature in varying dates through 2033, require monthly interest and principal payments, and bear interest at 5.125%. The obligation related to this transaction is included in long-term debt and the balance outstanding as of September 30, 2018 was $109 million. Fair Value Measurements We use fair value measurements to measure, among other items, purchased assets, investments, leases and derivative contracts. We also use them to assess impairment of properties, equipment, intangible assets and goodwill. An asset's fair value is defined as the price at which an asset could be exchanged in a current transaction between knowledgeable, willing parties. A liability’s fair value is defined as the amount that would be paid to transfer the liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. Where available, fair value is based on observable market prices or parameters, or is derived from such prices or parameters. Where observable prices or inputs are not available, unobservable prices or inputs are used to estimate the current fair value, often using an internal valuation model. These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the item being valued. ASC 820 “Fair Value Measurements and Disclosures” prioritizes the inputs used in measuring fair value into the following hierarchy:
The estimated fair value of debt is calculated using Level 2 inputs. The fair value of debt as of September 30, 2018, is estimated to be approximately $2.7 billion, based on outstanding balances as of the end of the period using current interest rates for similar securities. |
Other noncurrent liabilities Other noncurrent liabilities |
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Noncurrent Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities Disclosure [Text Block] | Other Noncurrent Liabilities Other noncurrent liabilities consisted of the following:
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Related-Party Transactions |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||
Related-Party Transactions | Related-Party Transactions We are party to the following fee-based commercial agreements with various affiliates of ETP:
We are party to the Stripes Distribution Contract, a 10-year agreement under which we are the exclusive distributor of motor fuel at cost (including tax and transportation costs), plus a fixed profit margin per gallon to certain independently operated commission agent locations including 207 Stripes retail sites recently converted to the commission agent model. We are party to the Sunoco Distribution Contract, a 10-year agreement under which we are the exclusive distributor of motor fuel to Sunoco Retail’s retail stores. Pursuant to the agreement, pricing is cost plus a fixed margin per gallon. This profit margin is eliminated through consolidation from the date of common control, September 1, 2014, and thereafter, in the accompanying Consolidated Statements of Operations and Comprehensive Income (Loss). In connection with the closing of our IPO on September 25, 2012, we also entered into an Omnibus Agreement with Susser Holding Corporation (“Susser”) (the “Omnibus Agreement”). Pursuant to the Omnibus Agreement, among other things, the Partnership received a three-year option to purchase from Susser up to 75 of Susser's new or recently constructed Stripes retail stores at Susser's cost and lease the stores back to Susser at a specified rate for a 15-year initial term. During 2015, we completed all 75 sale-leaseback transactions under the Omnibus Agreement. Summary of Transactions Significant affiliate balances and activity related to the Consolidated Balance Sheets and Statements of Operations and Comprehensive Income (Loss) are as follows:
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Revenue (Notes) |
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Revenue from Contract with Customer [Text Block] |
Disaggregation of Revenue We operate our business in two primary segments, fuel distribution and marketing and all other. We disaggregate revenue within the segments by channels. The following table depicts the disaggregation of revenue by channel within each segment:
Fuel Distribution and Marketing Revenue The Partnership’s fuel distribution and marketing operations earn revenue from the following channels: sales to Dealers, sales to Distributors, Unbranded Wholesale Revenue, Commission Agent Revenue, Rental Income and Other Income. Motor fuel revenue consists primarily of the sale of motor fuel under supply agreements with third party customers and affiliates. Fuel supply contracts with our customers generally provide that we distribute motor fuel at a formula price based on published rates, volume-based profit margin, and other terms specific to the agreement. The customer is invoiced the agreed-upon price with most payment terms ranging less than 30 days. If the consideration promised in a contract includes a variable amount, the Partnership estimates the variable consideration amount and factors in such an estimate to determine the transaction price under the expected value method. Revenue is recognized under the motor fuel contracts at the point in time the customer takes control of the fuel. At the time control is transferred to the customer the sale is considered final, because the agreements do not grant customers the right to return motor fuel. Under the new standard, to determine when control transfers to the customer, the shipping terms of the contract are assessed as shipping terms are considered a primary indicator of the transfer of control. For FOB shipping point terms, revenue is recognized at the time of shipment. The performance obligation with respect to the sale of goods is satisfied at the time of shipment since the customer gains control at this time under the terms. Shipping and/or handling costs that occur before the customer obtains control of the goods are deemed to be fulfillment activities and are accounted for as fulfillment costs. Once the goods are shipped, the Partnership is precluded from redirecting the shipment to another customer and revenue is recognized. Commission agent revenue consists of sales from commission agent agreements between the Partnership and select operators. The Partnership supplies motor fuel to sites operated by commission agents and sells the fuel directly to the end customer. In commission agent arrangements, control of the product is transferred at the point in time when the goods are sold to the end customer. To reflect the transfer of control, the Partnership recognizes commission agent revenue at the point in time fuel is sold to the end customer. The Partnership receives rental income from leased or subleased properties. Revenues from leasing arrangements for which we are the lessor are recognized ratably over the term of the underlying lease. All Other Revenue The Partnership’s all other operations earn revenue from the following channels: Motor Fuel Sales, Rental Income and Other Income. Motor Fuel Sales consist of fuel sales to consumers at company-operated retail stores. Other Income includes merchandise revenue that comprises the in-store merchandise and foodservice sales at company-operated retail stores, and other revenue that represents a variety of other services within our all other segment including credit card processing, car washes, lottery, automated teller machines, money orders, prepaid phone cards and wireless services. Revenue from all other operations is recognized when (or as) the performance obligations are satisfied (i.e. when the customer obtains control of the good or the service is provided). Contract Balances with Customers The Partnership satisfies its obligations by transferring goods or services in exchange for consideration from customers. The timing of performance may differ from the timing the associated consideration is paid to or received from the customer, thus resulting in the recognition of a contract asset or a contract liability. The Partnership recognizes a contract asset when making upfront consideration payments to certain customers. The upfront considerations represent a pre-paid incentive, as these payments are not made for distinct goods or services provided by the customer. The pre-payment incentives are recognized as a contract asset upon payment and amortized as a reduction of revenue over the term of the specific agreement. The Partnership recognizes a contract liability if the customer's payment of consideration precedes the entity's fulfillment of the performance obligations. We maintain some franchise agreements requiring dealers to make one-time upfront payments for long term license agreements. The Partnership recognizes a contract liability when the upfront payment is received and recognizes revenue over the term of the license. The balances of receivables from contracts with customers listed in the table below include both current trade receivables and long-term receivables, net of allowance for doubtful accounts. The allowance for receivables represents our best estimate of the probable losses associated with potential customer defaults. We determine the allowance based on historical experience and on a specific identification basis. The opening and closing balances of the Partnership’s contract assets and contract liabilities are as follows:
The amount of revenue recognized in the three and nine months ended September 30, 2018 that was included in the opening contract liability balance was $0.1 million and $0.4 million. This amount of revenue is a result of changes in the transaction price of the Partnership’s contracts with customers. The difference in the opening and closing balances of the contract asset and contract liability primarily results from the timing difference between entity's performance and the customer’s payment. Performance Obligations At contract inception, the Partnership assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promise to transfer a good or service (or bundle of goods or services) that is distinct. To identify the performance obligations, the Partnership considers all the goods or services promised in the contract, whether explicitly stated or implied based on customary business practices. For a contract that has more than one performance obligation, the Partnership allocates the total contract consideration to each distinct performance obligation on a relative standalone selling price basis. Revenue is recognized when (or as) the performance obligations are satisfied, that is, when the customer obtains control of the good or the service is provided. The Partnership distributes fuel under long-term contracts to branded distributors, branded and unbranded third party dealers, and branded and unbranded retail fuel outlets. Sunoco-branded supply contracts with distributors generally have both time and volume commitments that establish contract duration. These contracts have an initial term of approximately nine years, with an estimated, volume-weighted term remaining of approximately four years. As part of the 7-Eleven Purchase Agreement, the Partnership and 7-Eleven and SEI Fuel (collectively, the “Distributor”) have entered into a 15-year take-or-pay fuel supply agreement in which the Distributor is required to purchase a volume of fuel that provides the Partnership a minimum amount of gross profit annually. We expect to recognize this revenue in accordance with the contract as we transfer control of the product to the customer. However, in case of annual shortfall we will recognize the amount payable by the Distributor at the sooner of the time at which the Distributor makes up the shortfall or becomes contractually or operationally unable to do so. The transaction price of the contract is variable in nature, fluctuating based on market conditions. The Partnership has elected to take the practical expedient not to estimate the amount of variable consideration allocated to wholly unsatisfied performance obligations. In some contractual arrangements, the Partnership grants dealers a franchise license to operate the Partnership’s retail stores over the life of a franchise agreement. In return for the grant of the retail store license, the dealer makes a one-time nonrefundable franchise fee payment to the Partnership plus sales based royalties payable to the Partnership at a contractual rate during the period of the franchise agreement. Under the requirements of ASC Topic 606, the franchise license is deemed to be a symbolic license for which recognition of revenue over time is the most appropriate measure of progress toward complete satisfaction of the performance obligation. Revenue from this symbolic license is recognized evenly over the life of the franchise agreement. As of September 30, 2018, the aggregate amount of revenue expected to be recognized related to unsatisfied or partially satisfied franchise fee performance obligations (contract liabilities) is approximately $0.1 million for the remainder of 2018, $0.4 million in 2019, $0.2 million in 2020, and $0.1 million thereafter. Costs to Obtain or Fulfill a Contract The Partnership recognizes an asset from the costs incurred to obtain a contract (e.g. sales commissions) only if it expects to recover those costs. On the other hand, the costs to fulfill a contract are capitalized if the costs are specifically identifiable to a contract, would result in enhancing resources that will be used in satisfying performance obligations in future, and are expected to be recovered. These capitalized costs are recorded as a part of other current assets and other noncurrent assets and are amortized on a systematic basis consistent with the pattern of transfer of the goods or services to which such costs relate. The amount of amortization expense that the Partnership recognized for the three and nine months ended September 30, 2018 were $4 million and $10 million, respectively. The Partnership has also made a policy election of expensing the costs to obtain a contract, as and when they are incurred, in cases where the expected amortization period is one year or less. Practical Expedients Selected by the Partnership For the period ended September 30, 2018, the Partnership elected the following practical expedients in accordance with ASC 606:
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Commitments And Contingencies |
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Commitments and Contingencies | Commitments and Contingencies Leases The Partnership leases certain retail store and other properties under non-cancellable operating leases whose initial terms are typically 5 to 15 years, with some having a term of 40 years or more, along with options that permit renewals for additional periods. Minimum rent is expensed on a straight-line basis over the term of the lease. In addition, certain leases require additional contingent payments based on sales or motor fuel volumes. We typically are responsible for payment of real estate taxes, maintenance expenses and insurance. These properties are either sublet to third parties or used for our retail store operations. Net rent expense consisted of the following:
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Interest Expense, net |
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Interest Expense, net | Interest Expense, net Components of net interest expense were as follows:
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Income Tax Expense |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Expense | Income Tax Expense As a partnership, we are generally not subject to federal income tax and most state income taxes. However, the Partnership conducts certain activities through corporate subsidiaries which are subject to federal and state income taxes. Our effective tax rate differs from the statutory rate primarily due to Partnership earnings that are not subject to U.S. federal and most state income taxes at the Partnership level. A reconciliation of income tax expense from continuing operations at the U.S. federal statutory rate to net income tax expense (benefit) is as follows:
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Partners' Capital |
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Partners' Capital [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partners' Capital | Partners' Capital As of September 30, 2018, ETE and ETP or their subsidiaries owned 28,463,967 common units, which constitutes 34.5% of our outstanding common units, and the public owned 54,049,676 common units. As of September 30, 2018, our consolidated subsidiaries owned 16,410,780 Class C units representing limited partner interests in the Partnership (the “Class C Units”). Series A Preferred Units On March 30, 2017, the Partnership entered into a Series A Preferred Unit Purchase Agreement with ETE, relating to the issue and sale by the Partnership to ETE of 12,000,000 Series A Preferred Units (the “Preferred Units”) representing limited partner interests in the Partnership at a price per Preferred Unit of $25.00 (the “Offering”). The Offering closed on March 30, 2017, and the Partnership received proceeds from the Offering of $300 million, which it used to repay indebtedness under its revolving credit facility. On January 25, 2018, the Partnership redeemed all outstanding Series A Preferred Units held by ETE for an aggregate redemption amount of approximately $313 million. The redemption amount includes the original consideration of $300 million and a 1% call premium plus accrued and unpaid quarterly distributions. Common Units On February 7, 2018, subsequent to the record date for SUN’s fourth quarter 2017 distribution, the Partnership repurchased 17,286,859 SUN common units owned by ETP for aggregate cash consideration of approximately $540 million. The repurchase price per common unit was $31.2376, which is equal to the volume weighted average trading price of SUN common units on the New York Stock Exchange for the ten trading days ending on January 23, 2018. The Partnership funded the repurchase with cash on hand. Activity of our common units for the nine months ended September 30, 2018 is as follows:
Allocation of Net Income Our Partnership Agreement contains provisions for the allocation of net income and loss to the unitholders. For purposes of maintaining partner capital accounts, the Partnership Agreement specifies that items of income and loss shall be allocated among the partners in accordance with their respective percentage interest. Normal allocations according to percentage interests are made after giving effect, if any, to priority income allocations in an amount equal to incentive cash distributions allocated 100% to ETE. The calculation of net income allocated to the partners is as follows (in millions, except per unit amounts):
Class C Units Class C Units (i) are not convertible or exchangeable into Common Units or any other units of the Partnership and are non-redeemable; (ii) are entitled to receive distributions of available cash of the Partnership (other than available cash derived from or attributable to any distribution received by the Partnership from its wholly owned subsidiary, Sunoco Property Company LLC (“PropCo”), the proceeds of any sale of the membership interests of PropCo, or any interest or principal payments received by the Partnership with respect to indebtedness of PropCo or its subsidiaries) at a fixed rate equal to $0.8682 per quarter for each Class C Unit outstanding, (iii) do not have the right to vote on any matter except as otherwise required by any non-waivable provision of law, (iv) are not allocated any items of income, gain, loss, deduction or credit attributable to the Partnership’s ownership of, or sale or other disposition of, the membership interests of PropCo, or the Partnership’s ownership of any indebtedness of PropCo or any of its subsidiaries (“PropCo Items”), (v) will be allocated gross income (other than from PropCo Items) in an amount equal to the cash distributed to the holders of Class C Units and (vi) will be allocated depreciation, amortization and cost recovery deductions as if the Class C Units were Common Units and 1% of certain allocations of net termination gain (other than from PropCo Items). Pursuant to the terms described above, these distributions do not have an impact on the Partnership’s consolidated cash flows and as such, are excluded from total cash distributions and allocation of limited partners’ interest in net income. For the nine months ended September 30, 2018, Class C distributions declared totaled $43 million. Incentive Distribution Rights The following table illustrates the percentage allocations of available cash from operating surplus between our common unitholders and the holder of our incentive distribution rights (“IDRs”) based on the specified target distribution levels, after the payment of distributions to Class C unitholders. The amounts set forth under “marginal percentage interest in distributions” are the percentage interests of our IDR holder and the common unitholders in any available cash from operating surplus we distribute up to and including the corresponding amount in the column “total quarterly distribution per common unit target amount.” The percentage interests shown for our common unitholders and our IDR holder for the minimum quarterly distribution per common unit are also applicable to quarterly distribution amounts that are less than the minimum quarterly distribution.
Cash Distributions Our Partnership Agreement sets forth the calculation used to determine the amount and priority of cash distributions that the common unitholders receive. Cash distributions paid or payable during 2018 were as follows:
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Unit-Based Compensation |
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Share-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unit-Based Compensation | Unit-Based Compensation The Partnership has issued phantom units to its employees and non-employee directors, which vest 60% after three years and 40% after five years. Phantom units have the right to receive distributions prior to vesting. The fair value of these units is the market price of our common units on the grant date, and is amortized over the five-year vesting period using the straight-line method. Unit-based compensation expense related to the Partnership included in our Consolidated Statements of Operations and Comprehensive Income (Loss) was $4 million and $9 million for the three months ended September 30, 2018 and 2017, respectively, and $10 million and $18 million for the nine months ended September 30, 2018 and 2017, respectively. The total fair value of phantom units vested during the nine months ended September 30, 2018 and 2017, was $6 million and $2 million, respectively, based on the market price of SUN’s common units as of the vesting date. Unrecognized compensation cost related to our nonvested restricted phantom units totaled $21 million as of September 30, 2018, which is expected to be recognized over a weighted average period of 3.36 years. The fair value of nonvested phantom units outstanding as of September 30, 2018 totaled $53 million. A summary of our phantom unit award activity is as follows:
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Segment Reporting |
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Sep. 30, 2018 |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting |
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Segment Reporting Our financial statements reflect two reportable segments, fuel distribution & marketing and all other. After the Retail Divestment and the conversion of 207 retail sites to commission agent sites, the Partnership has renamed the former Wholesale segment to Fuel Distribution and Marketing and the former Retail segment is renamed to All Other. We report Adjusted EBITDA by segment as a measure of segment performance. We define Adjusted EBITDA as net income before net interest expense, income tax expense and depreciation, amortization and accretion expense, non-cash compensation expense, gains and losses on disposal of assets and impairment charges, unrealized gains and losses on commodity derivatives, inventory adjustments, and certain other operating expenses reflected in net income that we do not believe are indicative of ongoing core operations. Fuel Distribution and Marketing Segment Our Fuel Distribution and Marketing segment purchases motor fuel primarily from independent refiners and major oil companies and supplies it to independently-operated dealer stations under long-term supply agreements, to distributors and other consumers of motor fuel, and to Partnership-operated stations included in our All Other segment. Also included in the Fuel Distribution and Marketing segment are motor fuel sales to commission agent locations and sales and costs related to processing transmix. We distribute motor fuels across more than 30 states throughout the East Coast, Midwest, South Central and Southeast regions of the United States from Maine to Florida and from Florida to New Mexico, as well as Hawaii. Sales of fuel from our Fuel Distribution and Marketing segment to Partnership-operated stations included in our All Other segment are delivered at cost plus a profit margin. These amounts are included in intercompany eliminations of motor fuel revenue and motor fuel cost of sales. Also included in our Fuel Distribution and Marketing segment is rental income from properties that we lease or sublease. All Other Segment Prior to the completion of the Retail Divestment, our All Other segment primarily operated branded retail stores across more than 20 states throughout the East Coast and Southeast regions of the United States with a significant presence in Texas, Pennsylvania, New York, Florida, and Hawaii. These stores offered motor fuel, merchandise, foodservice, and a variety of other services including car washes, lottery, automated teller machines, money orders, prepaid phone cards and wireless services. The operations of the Retail Divestment are included in discontinued operations in the following segment information. Subsequent to the completion of the Retail Divestment, the remaining All Other segment includes the Partnership's ethanol plant, credit card services, franchise royalties, and its retail operations in Hawaii, New Jersey and Texas. The following tables present financial information by segment for the three and nine months ended September 30, 2018 and 2017:
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Net Income per Unit |
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Net Income Per Unit [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income per Unit | Net Income per Unit Net income per unit applicable to limited partners is computed by dividing limited partners’ interest in net income by the weighted‑average number of outstanding common units. Our net income is allocated to the limited partners in accordance with their respective partnership percentages, after giving effect to any priority income allocations for incentive distributions and distributions on employee unit awards. Earnings in excess of distributions are allocated to the limited partners based on their respective ownership interests. Payments made to our unitholders are determined in relation to actual distributions declared and are not based on the net income allocations used in the calculation of net income per unit. In addition to the common units, we identify the IDRs as participating securities and use the two-class method when calculating net income per unit applicable to limited partners, which is based on the weighted-average number of common units outstanding during the period. Diluted net income per unit includes the effects of potentially dilutive units on our common units, consisting of unvested phantom units. A reconciliation of the numerators and denominators of the basic and diluted per unit computations is as follows:
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Organization and Principles of Consolidation Organization and Principles of Consolidation (Policies) |
9 Months Ended |
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Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | All significant intercompany accounts and transactions have been eliminated in consolidation. Certain items have been reclassified for presentation purposes to conform to the accounting policies of the consolidated entity. These reclassifications had no material impact on gross profit, income from operations, net income (loss) and comprehensive income (loss), the balance sheets or statements of cash flows. |
Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Motor Fuel and Sales Taxes | Motor Fuel and Sales Taxes For bulk sales, certain motor fuel and sales taxes are collected from customers and remitted to governmental agencies either directly by the Partnership or through suppliers. The Partnership’s accounting policy for direct sales to dealer and commercial customers is to exclude the collected motor fuel tax from sales and cost of sales. For other locations where the Partnership holds inventory, including commission agent arrangements and Partnership-operated retail locations, motor fuel sales and motor fuel cost of sales include motor fuel taxes. Such amounts were $97 million and $107 million for the three months ended September 30, 2018 and 2017, respectively, and $280 million and $303 million for the nine months ended September 30, 2018 and 2017, respectively. Merchandise sales and cost of merchandise sales are reported net of sales tax in the accompanying Consolidated Statements of Operations and Comprehensive Income (Loss). |
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Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements FASB ASU No. 2016-02. In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which establishes the principles that lessees and lessors shall apply to report information about the amount, timing, and uncertainty of cash flows arising from a lease. The update requires lessees to record virtually all leases on their balance sheets. For lessors, this amended guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. In January 2018, the FASB issued ASU No. 2018-01 (“ASU 2018-01”), which provides an optional transition practical expedient to not evaluate under Topic 842 existing or expired land easements that were not previously accounted for as leases under the existing lease guidance in Topic 840. The Partnership plans to elect the package of transition practical expedients and will adopt this standard beginning with its first quarter of fiscal 2019 and apply it retrospectively at the beginning of the period of adoption through a cumulative-effect adjustment to retained earnings. The Partnership has performed several procedures to evaluate the impact of the adoption of this standard on the financial statements and disclosures and address the implications of Topic 842 on future lease arrangements. The procedures include reviewing all forms of leases, performing a completeness assessment over the lease population, establishing processes and controls to timely identify new and modified lease agreements, educating its employees on these new processes and controls and implementing a third-party supported lease accounting information system to account for our leases in accordance with the new standard. However, we are still in the process of quantifying this impact. We expect that upon adoption most of the Partnership’s lease commitments will be recognized as right of use assets and lease obligations. Recently Adopted Accounting Pronouncement FASB ASU No. 2014-09. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, as a new Topic, Accounting Standards Codification (“ASC”) Topic 606. On January 1, 2018 we adopted ASC Topic 606, which is effective for interim and annual reporting periods beginning on or after December 15, 2017. The new standard requires us to recognize revenue when a customer obtains control rather than when we have transferred substantially all risks and rewards of a good or service and requires expanded disclosures. It also outlines a single comprehensive model to use in accounting for revenue arising from contracts with customers and supersedes ASC 605 - Revenue Recognition and industry-specific guidance. We have completed a detailed review of revenue contracts representative of our business segments and their revenue streams as of the adoption date. As a result of the evaluation performed, we have determined that the timing and amount of revenue that we recognize on certain contracts is impacted by the adoption of the new standard. These adjustments are primarily related to the change in recognition of dealer incentives and rebates. In addition to the evaluation performed, we have made appropriate design and implementation updates to our business processes, systems and internal controls to support recognition and disclosure under the new standard. The Partnership has elected to apply the modified retrospective method to adopt the new standard. The implementation of the new standard has an impact on the measurement of recognition of revenue. The cumulative and ongoing effects of the adoption impact the Consolidated Balance Sheet, the Consolidated Statement of Operations and Comprehensive Income (Loss), and the Statement of Equity. Additionally, new disclosures have been added in accordance with ASC Topic 606. Utilizing the practical expedients allowed under the modified retrospective adoption method, ASC Topic 606 was only applied to existing contracts for which the Partnership has remaining performance obligations as of January 1, 2018, and new contracts entered into after January 1, 2018. ASC Topic 606 was not applied to contracts that were completed prior to January 1, 2018. For contracts in scope of the new revenue standard as of January 1, 2018, we recognized a cumulative effect adjustment to retained earnings to account for the differences in timing of revenue recognition. The comparative information has not been restated under the modified retrospective method and continues to be reported under the accounting standards in effect for those periods. The material adjustments to the opening balance sheet primarily relate to a change in timing of revenue recognition for variable consideration, such as incentives paid to customers, as well as a change in timing of revenue recognition for franchise fee revenue. Historically, an asset was recognized related to the contract incentives which was amortized over the life of the agreement. Under the new standard, the timing of the recognition of incentives changed due to application of the expected value method to estimate variable consideration. Additionally, under the new standard the change in timing of franchise fee revenue is due to the treatment of revenue recognition from the symbolic license over the term of the agreement. The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet for the adoption of ASU No. 2014-09 was as follows:
The adoption of the new revenue standard resulted in reclassifications to/from revenue, cost of sales, and operating expenses. Additionally, changes in timing of revenue recognition have required the creation of contract asset or contract liability balances, as well as certain balance sheet reclassifications. In accordance with the requirements of Topic 606, the disclosure below shows the impact of adopting the new standard on the statement of operations and comprehensive income (loss) and the balance sheet.
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Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet for the adoption of ASU No. 2014-09 was as follows:
The adoption of the new revenue standard resulted in reclassifications to/from revenue, cost of sales, and operating expenses. Additionally, changes in timing of revenue recognition have required the creation of contract asset or contract liability balances, as well as certain balance sheet reclassifications. In accordance with the requirements of Topic 606, the disclosure below shows the impact of adopting the new standard on the statement of operations and comprehensive income (loss) and the balance sheet.
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Discontinued Operations (Tables) |
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Discontinued Operations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
schedule of assets and liabilities classified as held for sale [Table Text Block] | The following tables present the aggregate carrying amounts of assets and liabilities classified as held for sale in the Consolidated Balance Sheets:
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schedule of operation results associated with discontinued operations [Table Text Block] | The results of operations associated with discontinued operations are presented in the following table:
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Accounts Receivable, net (Tables) |
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Accounts Receivable, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Receivable | Accounts receivable, net, consisted of the following:
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Inventories, net (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | Inventories, net, consisted of the following:
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Property And Equipment, net (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property and Equipment | Property and equipment, net, consisted of the following:
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Goodwill and Other Intangible Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets | Other Intangible Assets Gross carrying amounts and accumulated amortization for each major class of intangible assets, excluding goodwill, consisted of the following:
_______________________________
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Accrued Expenses and Other Current Liabilities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses And Other Current Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Liabilities | Current accrued expenses and other current liabilities consisted of the following:
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Long-Term Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt | Long-term debt consisted of the following:
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Other noncurrent liabilities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change of asset retirement obligations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Noncurrent Liabilities [Table Text Block] |
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Revenue (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Table Text Block] | The following table depicts the disaggregation of revenue by channel within each segment:
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Contract with Customer, Asset and Liability [Table Text Block] | The opening and closing balances of the Partnership’s contract assets and contract liabilities are as follows:
The amount of revenue recognized in the three and nine months ended September 30, 2018 that was included in the opening contract liability balance was $0.1 million and $0.4 million. This amount of revenue is a result of changes in the transaction price of the Partnership’s contracts with customers. The difference in the opening and closing balances of the contract asset and contract liability primarily results from the timing difference between entity's performance and the customer’s payment. |
Commitments And Contingencies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Rent Expense | Net rent expense consisted of the following:
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Interest Expense, net (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Income (Expense), Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Interest Expense Net | nterest expense were as follows:
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Income Tax Expense (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of income tax expense from continuing operations at the U.S. federal statutory rate to net income tax expense (benefit) is as follows:
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Partners' Capital (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partners' Capital [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distribution of Preferred Unit [Table Text Block] |
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Schedule of Common Units | Activity of our common units for the nine months ended September 30, 2018 is as follows:
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Schedule of Net Income Allocation By Partners | The calculation of net income allocated to the partners is as follows (in millions, except per unit amounts):
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Schedule of Incentive Distribution Rights to Limited Partners | The following table illustrates the percentage allocations of available cash from operating surplus between our common unitholders and the holder of our incentive distribution rights (“IDRs”) based on the specified target distribution levels, after the payment of distributions to Class C unitholders. The amounts set forth under “marginal percentage interest in distributions” are the percentage interests of our IDR holder and the common unitholders in any available cash from operating surplus we distribute up to and including the corresponding amount in the column “total quarterly distribution per common unit target amount.” The percentage interests shown for our common unitholders and our IDR holder for the minimum quarterly distribution per common unit are also applicable to quarterly distribution amounts that are less than the minimum quarterly distribution.
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Distributions Made to Limited Partner, by Distribution | ash distributions paid or payable during 2018 were as follows:
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Unit-Based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Nonvested Share Activity | A summary of our phantom unit award activity is as follows:
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Segment Reporting (Tables) |
3 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 |
Sep. 30, 2018 |
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Reportable Segments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting |
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Segment Reporting Our financial statements reflect two reportable segments, fuel distribution & marketing and all other. After the Retail Divestment and the conversion of 207 retail sites to commission agent sites, the Partnership has renamed the former Wholesale segment to Fuel Distribution and Marketing and the former Retail segment is renamed to All Other. We report Adjusted EBITDA by segment as a measure of segment performance. We define Adjusted EBITDA as net income before net interest expense, income tax expense and depreciation, amortization and accretion expense, non-cash compensation expense, gains and losses on disposal of assets and impairment charges, unrealized gains and losses on commodity derivatives, inventory adjustments, and certain other operating expenses reflected in net income that we do not believe are indicative of ongoing core operations. Fuel Distribution and Marketing Segment Our Fuel Distribution and Marketing segment purchases motor fuel primarily from independent refiners and major oil companies and supplies it to independently-operated dealer stations under long-term supply agreements, to distributors and other consumers of motor fuel, and to Partnership-operated stations included in our All Other segment. Also included in the Fuel Distribution and Marketing segment are motor fuel sales to commission agent locations and sales and costs related to processing transmix. We distribute motor fuels across more than 30 states throughout the East Coast, Midwest, South Central and Southeast regions of the United States from Maine to Florida and from Florida to New Mexico, as well as Hawaii. Sales of fuel from our Fuel Distribution and Marketing segment to Partnership-operated stations included in our All Other segment are delivered at cost plus a profit margin. These amounts are included in intercompany eliminations of motor fuel revenue and motor fuel cost of sales. Also included in our Fuel Distribution and Marketing segment is rental income from properties that we lease or sublease. All Other Segment Prior to the completion of the Retail Divestment, our All Other segment primarily operated branded retail stores across more than 20 states throughout the East Coast and Southeast regions of the United States with a significant presence in Texas, Pennsylvania, New York, Florida, and Hawaii. These stores offered motor fuel, merchandise, foodservice, and a variety of other services including car washes, lottery, automated teller machines, money orders, prepaid phone cards and wireless services. The operations of the Retail Divestment are included in discontinued operations in the following segment information. Subsequent to the completion of the Retail Divestment, the remaining All Other segment includes the Partnership's ethanol plant, credit card services, franchise royalties, and its retail operations in Hawaii, New Jersey and Texas. The following tables present financial information by segment for the three and nine months ended September 30, 2018 and 2017:
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Schedule of Segment Reporting Information, by Segment [Table Text Block] |
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Net Income per Unit (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Per Unit [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Income per Unit, Basic and Diluted | A reconciliation of the numerators and denominators of the basic and diluted per unit computations is as follows:
|
Organization and Principles of Consolidation - Additional Information (Details) $ in Billions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2018
shares
|
Sep. 30, 2018
state
store
segment
|
Apr. 02, 2018
store
|
Jan. 23, 2018
USD ($)
store
|
Jan. 18, 2017
store
|
|
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Number of Stores | store | 50 | 97 | |||
Percentage of membership interest acquired | 100.00% | ||||
Number of operating segments | segment | 2 | ||||
Sunoco LLC [Member] | Minimum [Member] | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Number of states in which entity operates (more than) | state | 30 | ||||
Motor Fuels [Member] | Minimum [Member] | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Number of states in which entity operates (more than) | state | 30 | ||||
Commission Agent Revenue [Member] | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Number of Stores | store | 207 | ||||
Energy Transfer Partners Limited Partnership [Member] | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest | 2.30% | ||||
ETE [Member] | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest | 26.50% | ||||
7-Eleven sales [Member] | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Number of Stores | store | 1,030 | ||||
Business acquisition, total purchase price | $ | $ 3.2 | ||||
ETE & ETP Merger [Member] | Subsequent Event [Member] | Energy Transfer Partners Limited Partnership [Member] | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest | 28.80% | ||||
Partners' Capital Account, Units, Contributed | shares | 2,874,275 | ||||
Partners' Capital Account, Units, Converted | shares | 42,812,389 | ||||
ETE & ETP Merger [Member] | Subsequent Event [Member] | Sunoco LP [Member] | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Partners' Capital Account, Units, Contributed | shares | 2,263,158 | ||||
Common Units [Member] | ETE & ETP Merger [Member] | Subsequent Event [Member] | Energy Transfer Partners Limited Partnership [Member] | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest | 34.50% |
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Accounting Policies [Abstract] | ||||
Motor fuel and sales taxes | $ 97 | $ 107 | $ 280 | $ 303 |
Summary of Significant Accounting Policies Cumulative Effect of Changes due to Adoption of ASU 2014-09 (Details) - USD ($) $ in Millions |
Sep. 30, 2018 |
Jan. 01, 2018 |
Dec. 31, 2017 |
---|---|---|---|
Other current assets | $ 80 | $ 89 | $ 81 |
Property and equipment, net | 1,494 | 1,557 | 1,557 |
Intangible assets, net | (655) | (668) | (768) |
Other noncurrent assets | 134 | 84 | 45 |
Other noncurrent liabilities | 140 | 126 | 125 |
Common Units | |||
Total partners' capital | $ 945 | 1,893 | $ 1,947 |
Accounting Standards Update 2014-09 [Member] | |||
Other current assets | 8 | ||
Property and equipment, net | 0 | ||
Intangible assets, net | (100) | ||
Other noncurrent assets | 39 | ||
Other noncurrent liabilities | 1 | ||
Total partners' capital | $ (54) |
Summary of Significant Accounting Policies Effect of change related to ASU 2014-09 (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Jan. 01, 2018 |
Dec. 31, 2017 |
|
Revenues | $ (4,761) | $ (13,117) | |||
Depreciation, amortization and accretion | (42) | $ (29) | (132) | ||
Other current assets | 80 | 80 | $ 89 | $ 81 | |
Property and equipment, net | 1,494 | 1,494 | 1,557 | 1,557 | |
Intangible assets, net | (655) | (655) | (668) | (768) | |
Other noncurrent assets | 134 | 134 | 84 | 45 | |
Other noncurrent liabilities | 140 | 140 | 126 | 125 | |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||||
Revenues | (14) | (37) | |||
Other | 0 | 0 | |||
Other | (1) | (3) | |||
Other operating | (2) | (6) | |||
Depreciation, amortization and accretion | (8) | (21) | |||
Other current assets | 11 | 11 | |||
Property and equipment, net | 0 | 0 | |||
Intangible assets, net | (122) | (122) | |||
Other noncurrent assets | 51 | 51 | |||
Other noncurrent liabilities | 1 | 1 | |||
Total partners' capital | (61) | (61) | |||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||
Revenues | (4,676) | (12,757) | |||
Other | 64 | 306 | |||
Other | (14) | (140) | |||
Other operating | (88) | (276) | |||
Depreciation, amortization and accretion | (50) | (153) | |||
Other current assets | 69 | 69 | |||
Property and equipment, net | 1,494 | 1,494 | |||
Intangible assets, net | (777) | (777) | |||
Other noncurrent assets | 83 | 83 | |||
Other noncurrent liabilities | 139 | 139 | |||
Total partners' capital | 1,006 | 1,006 | |||
Rental and Other [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||||
Revenues | 0 | 0 | |||
Rental and Other [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||
Revenues | (35) | (91) | |||
Common Units | |||||
Total partners' capital | $ 945 | $ 945 | $ 1,893 | $ 1,947 |
Acquisitions - Additional Information (Details) $ in Millions |
3 Months Ended | 9 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 16, 2018
USD ($)
|
Aug. 01, 2018
USD ($)
|
Apr. 03, 2018
USD ($)
|
Apr. 02, 2018
USD ($)
store
|
Sep. 30, 2018
USD ($)
store
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2018
USD ($)
store
|
Sep. 30, 2017
USD ($)
|
Dec. 31, 2017
shares
|
Jan. 18, 2017
store
|
Apr. 01, 2015 |
|
Business Acquisition [Line Items] | |||||||||||
Percentage of membership interest acquired | 100.00% | ||||||||||
Revenues | $ 4,761 | $ 13,117 | |||||||||
Net income (loss) | $ 112 | $ 138 | $ (135) | $ (83) | |||||||
Number of Stores | store | 50 | 50 | 97 | ||||||||
Common Units [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Limited partners' capital account, units issued (in shares) | shares | 99,667,999 | ||||||||||
Sandford Oil [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Combination, Consideration Transferred | $ 66 | ||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred | 27 | ||||||||||
Goodwill, Acquired During Period | $ 65 | ||||||||||
Superior Plus Corporation [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Combination, Consideration Transferred | $ 40 | ||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred | $ 18 | ||||||||||
Payments to Acquire Businesses, Gross | $ 58 | 0 | |||||||||
Number Of Fuel Storage Terminals | 3 | ||||||||||
Goodwill, Acquired During Period | $ 10 | ||||||||||
7-Eleven sales [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Payments to Acquire Businesses, Gross | $ 54 | $ 0 | |||||||||
Number of Stores | store | 26 | ||||||||||
Goodwill, Acquired During Period | $ 29 | ||||||||||
Six Point Three Seven Five Percentage Senior Notes Due Two Thousand Twenty Three [Member] | Senior Notes [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Interest rate, stated percentage | 6.375% | ||||||||||
Subsequent Event [Member] | BRENCO [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Combination, Consideration Transferred | $ 24 |
Acquisitions (Recognized Identified Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Millions |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Business Acquisition [Line Items] | ||
Goodwill | $ 1,534 | $ 1,430 |
Discontinued Operations Narrative (Details) $ in Millions |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 22, 2018
USD ($)
|
Sep. 30, 2018
USD ($)
store
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2018
USD ($)
store
|
Sep. 30, 2017
USD ($)
|
Jan. 23, 2018
store
|
Dec. 31, 2017
USD ($)
|
Jan. 18, 2017
store
|
||||
Revenues | $ 4,761 | $ 13,117 | |||||||||
Number of Stores | store | 50 | 50 | 97 | ||||||||
Goodwill | $ 1,534 | $ 1,534 | $ 1,430 | ||||||||
Non-cash unit based compensation expense | [1] | 4 | $ 9 | 10 | $ 18 | ||||||
Gain (Loss) on Disposition of Property Plant Equipment | [1] | $ 8 | (34) | $ (58) | (367) | ||||||
Store under Contract [Member] | |||||||||||
Number of Stores | store | 1 | 1 | |||||||||
Store sales to 7-Eleven [Domain] | |||||||||||
Number of Stores | store | 32 | 32 | |||||||||
Store Sold to Other Entities [Domain] | |||||||||||
Number of Stores | store | 9 | 9 | |||||||||
Store on Market [Domain] | |||||||||||
Number of Stores | store | 5 | 5 | |||||||||
7-Eleven sales [Member] | |||||||||||
Number of Stores | store | 1,030 | ||||||||||
Business Acquisition, Transaction Costs | $ 6 | ||||||||||
Store sales to 7-Eleven [Domain] | |||||||||||
Revenues | $ 199 | 926 | 2,388 | ||||||||
Payments to Suppliers | $ 1,007 | 2,597 | |||||||||
Discontinued Operations [Member] | |||||||||||
Revenues | 0 | 1,802 | 349 | 5,145 | |||||||
Goodwill | 0 | 0 | $ 796 | ||||||||
Gain (Loss) on Disposition of Property Plant Equipment | $ 0 | $ (26) | $ (61) | $ (265) | |||||||
|
Discontinued Operations Balance Sheet Amounts of Discontinued Operations (Details) - USD ($) $ in Millions |
Sep. 30, 2018 |
Jan. 01, 2018 |
Dec. 31, 2017 |
---|---|---|---|
Inventories, net | $ 469 | $ 426 | |
Other current assets | 80 | $ 89 | 81 |
Assets held for sale | 6 | 3,313 | |
Assets Held-for-sale, Not Part of Disposal Group | 3,313 | ||
Capital Lease Obligations | 1 | 3 | |
Property and equipment, net | 1,494 | 1,557 | 1,557 |
Goodwill | 1,534 | 1,430 | |
Intangible assets, net | 655 | 668 | 768 |
Other noncurrent assets | 134 | 84 | 45 |
Other noncurrent liabilities | 140 | $ 126 | 125 |
Liabilities associated with assets held for sale | 0 | 75 | |
Discontinued Operations [Member] | |||
Cash | 0 | 21 | |
Inventories, net | 0 | 149 | |
Other current assets | 0 | 16 | |
Capital Lease Obligations | 0 | 21 | |
Property and equipment, net | 6 | 1,851 | |
Goodwill | 0 | 796 | |
Intangible assets, net | 0 | 477 | |
Other noncurrent assets | 0 | 3 | |
Other noncurrent liabilities | $ 0 | $ 54 |
Discontinued Operations Income Statement Data for Discontinued Operations (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Revenues | $ 4,761 | $ 13,117 | |||||
Depreciation, amortization and accretion | 42 | $ 29 | 132 | ||||
Rent | 20 | 20 | 54 | $ 62 | |||
Loss on disposal of assets and impairment charges | [1] | (8) | 34 | 58 | 367 | ||
Interest expense, net | [1] | 35 | 64 | 107 | 184 | ||
Gain (Loss) on Extinguishment of Debt | [1] | 129 | 0 | ||||
Income tax expense (benefit) | 10 | 44 | 39 | (103) | |||
Loss from discontinued operations, net of income taxes | (2) | 17 | (265) | (187) | |||
Discontinued Operations [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Other | 0 | 482 | 93 | 1,383 | |||
Revenues | 0 | 1,802 | 349 | 5,145 | |||
Other | 0 | 319 | 65 | 915 | |||
Cost of Revenue | 0 | 1,482 | 305 | 4,274 | |||
Gross Profit | 0 | 320 | 44 | 871 | |||
General and administrative | 0 | 57 | 7 | 126 | |||
Depreciation, amortization and accretion | 0 | (5) | 0 | 31 | |||
Other operating | 0 | 169 | 57 | 525 | |||
Rent | 0 | 13 | 4 | 41 | |||
Loss on disposal of assets and impairment charges | 0 | 26 | 61 | 265 | |||
Operating Expenses | 0 | 260 | 129 | 988 | |||
Operating Income (Loss) | 0 | 60 | (85) | (117) | |||
Interest expense, net | 0 | 13 | 2 | 21 | |||
Gain (Loss) on Extinguishment of Debt | 0 | 0 | 20 | 0 | |||
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | 0 | 47 | (107) | (138) | |||
Income tax expense (benefit) | 2 | 30 | 158 | 49 | |||
Loss from discontinued operations, net of income taxes | (2) | 17 | (265) | (187) | |||
Discontinued Operations [Member] | Merchandise [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Other | 466 | 89 | 1,336 | ||||
Discontinued Operations [Member] | Motor Fuels [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Revenues | 0 | 1,320 | 256 | 3,762 | |||
Cost of Revenue | $ 0 | $ 1,163 | $ 240 | $ 3,359 | |||
|
Accounts Receivable, net (Details) - USD ($) $ in Millions |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for doubtful accounts | $ (2) | $ (2) |
Accounts receivable, net | 627 | 541 |
Trade Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross, current | 453 | 285 |
Credit Card Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross, current | 129 | 160 |
Vendor receivables for rebates, branding and other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross, current | 6 | 29 |
Other Receivables [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, gross, current | $ 41 | $ 69 |
Inventories, net (Details) - USD ($) $ in Millions |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Energy Related Inventory, Natural Gas in Storage | $ 457 | $ 387 |
Merchandise | 5 | 30 |
Other | 7 | 9 |
Inventories, net | $ 469 | $ 426 |
Property And Equipment, net (Details) - USD ($) $ in Millions |
Sep. 30, 2018 |
Jan. 01, 2018 |
Dec. 31, 2017 |
---|---|---|---|
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | $ 2,047 | $ 2,012 | |
Less: accumulated depreciation | 553 | 455 | |
Property and equipment, net | 1,494 | $ 1,557 | 1,557 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 517 | 516 | |
Buildings and leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 724 | 714 | |
Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | 729 | 623 | |
Construction in progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment | $ 77 | $ 159 |
Goodwill and Other Intangible Assets (Intangible Assets) - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
|
Finite Lived Intangible Assets [Line Items] | ||
Goodwill | $ 1,534 | $ 1,430 |
Customer Relations And Supply Agreements [Member] | Weighted Average [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Remaining weighted-average life | 11 years | |
Favorable leasehold arrangements, net [Member] | Weighted Average [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Remaining weighted-average life | 13 years | |
Noncompete Agreements | Weighted Average [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Remaining weighted-average life | 10 years | |
Deferred Loan Origination Costs | Weighted Average [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Remaining weighted-average life | 4 years |
Goodwill and Other Intangible Assets (Intangible Assets) (Details) - USD ($) $ in Millions |
Sep. 30, 2018 |
Jan. 01, 2018 |
Dec. 31, 2017 |
|||||
---|---|---|---|---|---|---|---|---|
Finite and Indefinite-Lived Intangible Asset by Major Class [Line Items] | ||||||||
Finite-lived intangible assets, Gross carrying amount | $ 855 | $ 1,038 | ||||||
Finite-lived intangible assets, Accumulated amortization | 200 | 270 | ||||||
Intangible assets, net | 655 | $ 668 | 768 | |||||
Customer Relations And Supply Agreements [Member] | ||||||||
Finite and Indefinite-Lived Intangible Asset by Major Class [Line Items] | ||||||||
Finite-lived intangible assets, Gross carrying amount | [1] | 484 | 674 | |||||
Finite-lived intangible assets, Accumulated amortization | [1] | 186 | 256 | |||||
Finite-lived intangible assets, Net | [1] | 298 | 418 | |||||
Favorable leasehold arrangements, net [Member] | ||||||||
Finite and Indefinite-Lived Intangible Asset by Major Class [Line Items] | ||||||||
Finite-lived intangible assets, Gross carrying amount | 12 | 12 | ||||||
Finite-lived intangible assets, Accumulated amortization | 5 | 5 | ||||||
Finite-lived intangible assets, Net | 7 | 7 | ||||||
Deferred Loan Origination Costs | ||||||||
Finite and Indefinite-Lived Intangible Asset by Major Class [Line Items] | ||||||||
Finite-lived intangible assets, Gross carrying amount | [2] | 17 | 10 | |||||
Finite-lived intangible assets, Accumulated amortization | [2] | 6 | 6 | |||||
Finite-lived intangible assets, Net | [2] | 11 | 4 | |||||
Other [Member] | ||||||||
Finite and Indefinite-Lived Intangible Asset by Major Class [Line Items] | ||||||||
Finite-lived intangible assets, Gross carrying amount | 5 | 5 | ||||||
Finite-lived intangible assets, Accumulated amortization | 3 | 3 | ||||||
Finite-lived intangible assets, Net | 2 | 2 | ||||||
Trade Names [Member] | ||||||||
Finite and Indefinite-Lived Intangible Asset by Major Class [Line Items] | ||||||||
Other Indefinite-lived Intangible Assets, Gross Carrying Amount | 295 | 295 | ||||||
Other Indefinite-lived Intangible Assets, Accumulated Amortization | 0 | 0 | ||||||
Other Indefinite-lived Intangible Assets | 295 | 295 | ||||||
Contractual Rights [Member] | ||||||||
Finite and Indefinite-Lived Intangible Asset by Major Class [Line Items] | ||||||||
Other Indefinite-lived Intangible Assets, Gross Carrying Amount | 30 | 30 | ||||||
Other Indefinite-lived Intangible Assets, Accumulated Amortization | 0 | 0 | ||||||
Other Indefinite-lived Intangible Assets | 30 | 30 | ||||||
Liquor Licenses [Member] | ||||||||
Finite and Indefinite-Lived Intangible Asset by Major Class [Line Items] | ||||||||
Other Indefinite-lived Intangible Assets, Gross Carrying Amount | 12 | 12 | ||||||
Other Indefinite-lived Intangible Assets, Accumulated Amortization | 0 | 0 | ||||||
Other Indefinite-lived Intangible Assets | $ 12 | $ 12 | ||||||
|
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Millions |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Accrued Expenses And Other Current Liabilities [Abstract] | ||
Wage and other employee-related accrued expenses | $ 29 | $ 72 |
Accrued tax expense | 205 | 180 |
Accrued insurance | 14 | 26 |
Accrued interest expense | 19 | 43 |
Dealer deposits | 16 | 16 |
Other | 81 | 31 |
Total | 370 | 368 |
Liabilities Subject to Compromise, Environmental Contingencies | $ 6 | $ 0 |
Long-Term Debt (Details) - USD ($) |
Sep. 30, 2018 |
Jan. 23, 2018 |
Dec. 31, 2017 |
||
---|---|---|---|---|---|
Debt Instrument [Line Items] | |||||
Sale leaseback financing obligation | $ 109,000,000 | $ 113,000,000 | |||
Line of credit | 493,000,000 | 765,000,000 | |||
Capital Lease Obligations | 1,000,000 | 3,000,000 | |||
Total debt | 2,803,000,000 | 4,324,000,000 | |||
Less: current maturities | 5,000,000 | 6,000,000 | |||
Less: debt issuance costs | 24,000,000 | 34,000,000 | |||
Long-term debt, net of current maturities | 2,774,000,000 | 4,284,000,000 | |||
Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Term Loan (1) | $ 2,200,000,000.0 | ||||
Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Term Loan (1) | [1] | 1,243,000,000 | |||
Two Thousand Eighteen Revolver [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit | 0 | ||||
Two Thousand Eighteen Revolver [Member] | Revolving Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit | 493,000,000 | ||||
2014 Revolver [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit | 0 | 765,000,000 | |||
Four Point Eight Seven Five Percentage Senior Notes Due Two Thousand Twenty Three [Member] | Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Term Loan (1) | 1,000,000,000.0 | ||||
Senior Notes | 1,000,000,000 | 0 | |||
Five Point Five Zero Zero Percentage Senior Notes Due Two Thousand Twenty Six [Member] | Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Term Loan (1) | 800,000,000 | ||||
Senior Notes | 800,000,000 | 0 | |||
Five Point Eight Seven Five Percentage Senior Notes Due Two Thousand Twenty Eight [Member] | Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Term Loan (1) | $ 400,000,000 | ||||
Senior Notes | $ 400,000,000 | $ 0 | |||
|
Long-Term Debt (Term Loan) (Details) - USD ($) $ in Millions |
Sep. 30, 2018 |
[1] | Dec. 31, 2017 |
Mar. 31, 2016 |
||
---|---|---|---|---|---|---|
Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Term Loan (1) | [1] | $ 1,243 | ||||
Medium-term Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Term Loan (1) | $ 0 | $ 2,035 | ||||
|
Long-Term Debt (5.500% Senior Notes Due 2020) (Details) - Senior Notes [Member] - USD ($) |
Sep. 30, 2018 |
Jan. 23, 2018 |
Dec. 31, 2017 |
Apr. 07, 2016 |
Jul. 20, 2015 |
|||
---|---|---|---|---|---|---|---|---|
Debt Instrument [Line Items] | ||||||||
Face amount | $ 2,200,000,000.0 | |||||||
Six Point Two Five Zero Percentage Senior Notes Due Two Thousand Twenty One [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior Notes | [1] | $ 0 | $ 800,000,000 | |||||
Face amount | $ 800,000,000 | |||||||
Senior Notes Call Premium | 32,000,000 | |||||||
Interest rate, stated percentage | 6.25% | |||||||
Five Point Five Zero Zero Percentage Senior Notes Due Two Thousand Twenty [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Senior Notes | [1] | $ 0 | $ 600,000,000 | |||||
Face amount | $ 600,000,000 | |||||||
Senior Notes Call Premium | $ 17,000,000 | |||||||
Interest rate, stated percentage | 5.50% | |||||||
|
Long-Term Debt (6.250% Senior Notes Due 2021) (Details) - Senior Notes [Member] - USD ($) |
Sep. 30, 2018 |
Jan. 23, 2018 |
Dec. 31, 2017 |
Apr. 07, 2016 |
||
---|---|---|---|---|---|---|
Debt Instrument [Line Items] | ||||||
Face amount | $ 2,200,000,000.0 | |||||
Six Point Two Five Zero Percentage Senior Notes Due Two Thousand Twenty One [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior Notes | [1] | $ 0 | $ 800,000,000 | |||
Face amount | $ 800,000,000 | |||||
Senior Notes Call Premium | $ 32,000,000 | |||||
Interest rate, stated percentage | 6.25% | |||||
|
Long-Term Debt (6.375% Senior Notes Due 2023) (Details) - Senior Notes [Member] - USD ($) |
Sep. 30, 2018 |
Jan. 23, 2018 |
Dec. 31, 2017 |
Apr. 01, 2015 |
||
---|---|---|---|---|---|---|
Debt Instrument [Line Items] | ||||||
Face amount | $ 2,200,000,000.0 | |||||
Six Point Three Seven Five Percentage Senior Notes Due Two Thousand Twenty Three [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior Notes | [1] | $ 0 | $ 800,000,000 | |||
Face amount | $ 800,000,000 | |||||
Interest rate, stated percentage | 6.375% | |||||
Senior Notes Call Premium | $ 44,000,000 | |||||
|
Long-Term Debt (Revolving Credit Agreement) (Details) $ in Millions |
Jul. 27, 2018
USD ($)
|
Sep. 30, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
Apr. 04, 2013
dealer
|
---|---|---|---|---|
Debt Instrument [Line Items] | ||||
Revolving line of credit | $ 493 | $ 765 | ||
Number Of Dealer Operated Sites | dealer | 50 | |||
Two Thousand Eighteen Revolver [Member] | ||||
Debt Instrument [Line Items] | ||||
Revolving line of credit | $ 0 | |||
Revolving Credit Agreement [Member] | Two Thousand Eighteen Revolver [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Maturity Date | Jul. 27, 2023 | |||
Line Of Credit Facility Additional Borrowing Capacity | $ 750 | |||
Debt Instrument, Additional Collateral For Debt | 66.00% | |||
Revolving line of credit | 493 | |||
Letters of Credit Outstanding, Amount | 8 | |||
Current borrowing capacity | $ 1,500 | $ 1,000 | ||
Debt Instrument, Covenant, Leverage Ratio | 5.50 | |||
Debt Instrument, Covenant, Interest Coverage Ratio | 2.25 | |||
Revolving Credit Agreement [Member] | Two Thousand Eighteen Revolver [Member] | Incremental Addition to One Month LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
Revolving Credit Agreement [Member] | Two Thousand Eighteen Revolver [Member] | Incremental Addition to Federal Funds Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
Revolving Credit Agreement [Member] | Two Thousand Eighteen Revolver [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Commitment fee percentage | 0.25% | |||
Business acquisition, total purchase price | $ 50 | |||
Revolving Credit Agreement [Member] | Two Thousand Eighteen Revolver [Member] | Minimum [Member] | Applicable Margin on LIBOR Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.25% | |||
Revolving Credit Agreement [Member] | Two Thousand Eighteen Revolver [Member] | Minimum [Member] | Applicable Margin on Base Rate Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.25% | |||
Revolving Credit Agreement [Member] | Two Thousand Eighteen Revolver [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Commitment fee percentage | 0.35% | |||
Debt Instrument, Covenant, Leverage Ratio | 6.00 | |||
Revolving Credit Agreement [Member] | Two Thousand Eighteen Revolver [Member] | Maximum [Member] | Applicable Margin on LIBOR Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.25% | |||
Revolving Credit Agreement [Member] | Two Thousand Eighteen Revolver [Member] | Maximum [Member] | Applicable Margin on Base Rate Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.25% | |||
Revolving Credit Agreement [Member] | Two Thousand Eighteen Revolver [Member] | External Credit Rating, Investment Grade [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.125% | |||
Revolving Credit Agreement [Member] | Two Thousand Eighteen Revolver [Member] | External Credit Rating, Investment Grade [Member] | Minimum [Member] | Applicable Margin on LIBOR Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.125% | |||
Revolving Credit Agreement [Member] | Two Thousand Eighteen Revolver [Member] | External Credit Rating, Investment Grade [Member] | Minimum [Member] | Applicable Margin on Base Rate Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Commitment fee percentage | 0.125% | |||
Revolving Credit Agreement [Member] | Two Thousand Eighteen Revolver [Member] | External Credit Rating, Investment Grade [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.75% | |||
Commitment fee percentage | 0.35% | |||
Revolving Credit Agreement [Member] | Two Thousand Eighteen Revolver [Member] | External Credit Rating, Investment Grade [Member] | Maximum [Member] | Applicable Margin on LIBOR Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.75% |
Long-Term Debt (Sale Leaseback Financing Obligation) (Details) $ in Millions |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
Apr. 04, 2013
company
dealer
|
|
Debt Disclosure [Abstract] | |||
Number of companies completed sale leaseback transaction | company | 2 | ||
Number of dealer operated sites | dealer | 50 | ||
Sale Leaseback Transaction, Imputed Interest Rate | 5.125% | ||
Sale leaseback financing obligation | $ | $ 109 | $ 113 |
Long-Term Debt 2018 Private Offering of Senior Notes (Details) - USD ($) |
9 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Feb. 07, 2018 |
Jan. 25, 2018 |
Sep. 30, 2018 |
Jan. 23, 2018 |
Apr. 07, 2016 |
Jul. 20, 2015 |
Apr. 01, 2015 |
|
Redemption of Preferred units | $ (300,000,000) | ||||||
Common Unit Repurchase, Unit Repurchased | 17,286,859 | ||||||
Common Unit Repurchase, Cash Consideration | $ 540,000,000 | $ 540,000,000 | |||||
Senior Notes [Member] | |||||||
Face amount | $ 2,200,000,000.0 | ||||||
Four Point Eight Seven Five Percentage Senior Notes Due Two Thousand Twenty Three [Member] | Senior Notes [Member] | |||||||
Face amount | $ 1,000,000,000.0 | ||||||
Interest rate, stated percentage | 4.85% | 4.875% | |||||
Five Point Five Zero Zero Percentage Senior Notes Due Two Thousand Twenty Six [Member] | Senior Notes [Member] | |||||||
Face amount | $ 800,000,000 | ||||||
Interest rate, stated percentage | 5.50% | 5.50% | |||||
Five Point Eight Seven Five Percentage Senior Notes Due Two Thousand Twenty Eight [Member] | Senior Notes [Member] | |||||||
Face amount | $ 400,000,000 | ||||||
Interest rate, stated percentage | 5.875% | 5.875% | |||||
Six Point Two Five Zero Percentage Senior Notes Due Two Thousand Twenty One [Member] | Senior Notes [Member] | |||||||
Face amount | $ 800,000,000 | ||||||
Interest rate, stated percentage | 6.25% | ||||||
Five Point Five Zero Zero Percentage Senior Notes Due Two Thousand Twenty [Member] | Senior Notes [Member] | |||||||
Face amount | $ 600,000,000 | ||||||
Interest rate, stated percentage | 5.50% | ||||||
Six Point Three Seven Five Percentage Senior Notes Due Two Thousand Twenty Three [Member] | Senior Notes [Member] | |||||||
Face amount | $ 800,000,000 | ||||||
Interest rate, stated percentage | 6.375% | ||||||
Series A Preferred Units [Member] | |||||||
Redemption of Preferred units | $ 313,000,000 | $ (300,000,000) | |||||
Common Unit Repurchase, Cash Consideration | $ 0 |
Long-Term Debt Fair Value Measurements (Details) $ in Billions |
Sep. 30, 2018
USD ($)
|
---|---|
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block] | $ 2.7 |
Other noncurrent liabilities Other noncurrent liabilities (Details) - USD ($) $ in Millions |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Accrued straight-line rent | $ 12 | $ 13 |
Reserve for underground storage tank removal | 51 | 41 |
Reserve for environmental remediation | 28 | 23 |
Unfavorable lease liability | 16 | 10 |
Others | 33 | 23 |
Aloha Acquisition [Member] | ||
Aloha acquisition contingent consideration | $ 0 | $ 15 |
Related-Party Transactions - Additional Information (Details) $ in Millions |
3 Months Ended | 9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Sep. 25, 2012
store
|
Sep. 30, 2018
USD ($)
store
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2018
USD ($)
agreement
store
|
Sep. 30, 2017
USD ($)
|
Apr. 02, 2018
store
|
Dec. 31, 2017
USD ($)
|
Jan. 18, 2017
store
|
Sep. 30, 2016
store
|
|
Related Party Transaction [Line Items] | |||||||||
Related products purchase agreements | agreement | 2 | ||||||||
Purchase agreements renewal term | 12 months | ||||||||
Number of Stores | store | 50 | 50 | 97 | ||||||
Advances from affiliates | $ 85 | $ 85 | $ 85 | ||||||
Receivables from affiliates | 134 | 134 | 155 | ||||||
Accounts payable to affiliates | 160 | 160 | $ 206 | ||||||
Revenues | 4,761 | $ 13,117 | |||||||
Philadelphia Energy Solutions Refining and Marketing [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Related products purchase agreements | agreement | 1 | ||||||||
Merrill Lynch Commodities [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Related products purchase agreements | agreement | 1 | ||||||||
Susser [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Distribution agreement term | 10 years | ||||||||
Purchase option term | 3 years | ||||||||
Number of convenience stores | store | 75 | ||||||||
Commercial agreement, initial term | 15 years | ||||||||
Number of convenience stores, sale lease back transactions completed | store | 75 | ||||||||
Sunoco Retail LLC [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Distribution agreement term | 10 years | ||||||||
Commission Agent Revenue [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Number of Stores | store | 207 | ||||||||
Continuing Operations [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Repayment of Line of credit | $ 2,372 | $ 2,250 | |||||||
Revenues | 4,761 | $ 3,064 | 13,117 | 8,764 | |||||
Cost of Revenue | 4,428 | 2,748 | 12,178 | 7,933 | |||||
Continuing Operations [Member] | Commission Agent Revenue [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Revenues | 437 | ||||||||
Continuing Operations [Member] | Wholesale motor fuel sales to affiliates [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Revenues | 1 | 16 | 23 | 44 | |||||
Affiliated Entity [Member] | Continuing Operations [Member] | Wholesale Motor Fuel [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Cost of Revenue | $ 96 | $ 601 | $ 1,760 | $ 1,700 |
Revenue Disaggregation of revenue (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|||
Revenues | $ 4,761 | $ 13,117 | ||||
Other Motor Fuels [Member] | ||||||
Revenues | [1] | 212 | 860 | |||
Continuing Operations [Member] | ||||||
Other | 64 | $ 193 | 306 | $ 546 | ||
Revenues | 4,761 | 3,064 | 13,117 | 8,764 | ||
Continuing Operations [Member] | Fuel Distribution and Marketing [Member] | ||||||
Revenues | 4,494 | 11,983 | ||||
Continuing Operations [Member] | Fuel Distribution and Marketing [Member] | Operating Segments [Member] | ||||||
Other | 12 | 13 | 41 | 37 | ||
Revenues | 4,954 | 2,874 | 13,254 | 8,170 | ||
Continuing Operations [Member] | All Other [Member] | ||||||
Other | 52 | 265 | ||||
Revenues | 267 | 1,134 | ||||
Continuing Operations [Member] | All Other [Member] | Operating Segments [Member] | ||||||
Other | 52 | 180 | 265 | 509 | ||
Revenues | 296 | 631 | 1,227 | 1,776 | ||
Continuing Operations [Member] | Wholesale motor fuel sales to third parties [Member] | ||||||
Revenues | 998 | |||||
Continuing Operations [Member] | Distributor Revenue [Member] | ||||||
Revenues | 2,253 | |||||
Continuing Operations [Member] | Unbranded Wholesale Revenue [Member] | ||||||
Revenues | 762 | |||||
Continuing Operations [Member] | Commission Agent Revenue [Member] | ||||||
Revenues | 437 | |||||
Continuing Operations [Member] | Rental and Other [Member] | ||||||
Revenues | 35 | 22 | 91 | 66 | ||
Continuing Operations [Member] | Rental and Other [Member] | Fuel Distribution and Marketing [Member] | ||||||
Revenues | 32 | 82 | ||||
Continuing Operations [Member] | Rental and Other [Member] | Fuel Distribution and Marketing [Member] | Operating Segments [Member] | ||||||
Revenues | 32 | 19 | 82 | 57 | ||
Continuing Operations [Member] | Rental and Other [Member] | All Other [Member] | ||||||
Revenues | 3 | 9 | ||||
Continuing Operations [Member] | Rental and Other [Member] | All Other [Member] | Operating Segments [Member] | ||||||
Revenues | $ 3 | $ 3 | $ 9 | $ 9 | ||
|
Revenue Contract Balances with Customers (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2018 |
Jan. 01, 2018 |
|
Contract Balances with Customers [Abstract] | |||
Contract with Customer, Asset, Net | $ 66.0 | $ 66.0 | $ 51.0 |
Increase (Decrease) in Accounts Receivable | 137.0 | ||
Contract with Customer, Asset, Reclassified to Receivable | 15.0 | ||
Receivables from Customers | 582.0 | 582.0 | 445.0 |
Contract with Customer, Liability | 1.0 | 1.0 | $ 1.0 |
Contract with Customer, Liability, Revenue Recognized | $ 0.1 | $ 0.4 |
Revenue Performance Obligations (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Sep. 30, 2018 |
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Contract with Customer, Liability, Revenue Recognized | $ 0.1 | $ 0.4 | ||||
Subsequent Event [Member] | ||||||
Contract with Customer, Liability, Revenue Recognized | $ 0.1 | $ 0.1 | $ 0.2 | $ 0.4 |
Revenue Costs to Obtain or Fulfill a Contract (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended |
---|---|---|
Sep. 30, 2018 |
Sep. 30, 2018 |
|
Revenue from Contract with Customer [Abstract] | ||
Capitalized Contract Cost, Amortization | $ 4 | $ 10 |
Commitments And Contingencies (Leases) (Details) |
9 Months Ended |
---|---|
Sep. 30, 2018 | |
Minimum [Member] | |
Operating Leased Assets [Line Items] | |
Lease term | 5 years |
Maximum [Member] | |
Operating Leased Assets [Line Items] | |
Lease term | 15 years |
Commitments And Contingencies (Leases, Schedule of Rent Expense) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Leases [Abstract] | ||||
Operating Leases, Rent Expense, Contingent Rentals | $ 1 | $ 3 | $ 3 | $ 13 |
Operating Leases, Rent Expense, Sublease Rentals | 11 | 7 | 28 | 19 |
Cash rent: | ||||
Store base rent | 19 | 16 | 52 | 51 |
Equipment and other rent | 1 | 4 | 2 | 10 |
Total cash rent | 20 | 20 | 54 | 61 |
Non-cash rent: | ||||
Straight-line rent | 0 | 0 | 0 | 1 |
Net rent expense | $ 20 | $ 20 | $ 54 | $ 62 |
Interest Expense, net (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|||
Interest expense, net | [1] | $ 35 | $ 64 | $ 107 | $ 184 | |
Continuing Operations [Member] | ||||||
Interest Expense Cash | 35 | 47 | ||||
Amortization of deferred financing fees | 1 | 4 | 4 | 12 | ||
Interest Expense, Debt | 105 | 151 | ||||
Interest expense, net | 35 | 51 | 105 | 163 | ||
Interest Income, Money Market Deposits | $ 1 | $ 0 | $ 4 | $ 0 | ||
|
Income Tax Expense (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|||||
Income Tax Disclosure [Abstract] | ||||||||
Tax at statutory federal rate (1) | $ 26 | $ 27 | $ 34 | [1] | $ 1 | [1] | ||
Partnership earnings not subject to tax | (16) | 74 | (17) | (130) | ||||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Impairment Losses, Amount | 0 | 4 | 0 | 35 | ||||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | 3 | (3) | 4 | (9) | ||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | (3) | 0 | 16 | 0 | ||||
Other | 0 | 2 | (2) | 0 | ||||
Net income tax expense (benefit) | $ (10) | $ (44) | $ (39) | $ 103 | ||||
|
Partners' Capital Narrative (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Feb. 07, 2018 |
Sep. 30, 2018 |
Sep. 30, 2018 |
Feb. 14, 2018 |
Dec. 31, 2017 |
|
Schedule of Partners' Capital [Line Items] | |||||
Treasury Stock Acquired, Average Cost Per Share | $ 31.2376 | ||||
Percentage of membership interest acquired | 100.00% | ||||
Common Units | |||||
Schedule of Partners' Capital [Line Items] | |||||
Limited Partners' Capital Account, Units Outstanding | 54,049,676 | 54,049,676 | |||
Common Units [Member] | |||||
Schedule of Partners' Capital [Line Items] | |||||
Limited Partners' Capital Account, Units Outstanding | 82,513,643 | 82,513,643 | 99,667,999 | ||
Partners' Capital Account, Units, Sale of Units | 17,286,859 | ||||
Parent Company [Member] | |||||
Schedule of Partners' Capital [Line Items] | |||||
Percentage of membership interest acquired | 34.50% | ||||
Parent Company [Member] | Common Units [Member] | |||||
Schedule of Partners' Capital [Line Items] | |||||
Limited Partners' Capital Account, Units Outstanding | 28,463,967 | 28,463,967 | |||
Series A Preferred Unit [Member] | |||||
Schedule of Partners' Capital [Line Items] | |||||
Preferred Unit, Quarterly Distribution | $ 10 |
Partners' Capital (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2018 |
Dec. 31, 2017 |
|
Schedule of Partners' Capital [Line Items] | ||||
Percentage of membership interest acquired | 100.00% | |||
Class C Units [Member] | ||||
Schedule of Partners' Capital [Line Items] | ||||
Eligible distributions per unit (in dollars per share) | $ 0.8682 | $ 0.8682 | ||
Other certain allocation percentage | 1.00% | 1.00% | ||
Distribution Made to Limited Partner, Cash Distributions Declared | $ 43 | |||
Units exchanged (in shares) | 16,410,780 | 16,410,780 | ||
Series A Preferred Units [Member] | ||||
Schedule of Partners' Capital [Line Items] | ||||
Equity Issued To Partners Capital Account | $ 300 | |||
Limited Partners' Capital Account, Units Outstanding | 0 | 0 | 12,000,000 | |
Common Units | ||||
Schedule of Partners' Capital [Line Items] | ||||
Limited Partners' Capital Account, Units Outstanding | 54,049,676 | 54,049,676 | ||
Parent Company [Member] | ||||
Schedule of Partners' Capital [Line Items] | ||||
Percentage of membership interest acquired | 34.50% |
Partners' Capital (Schedule of Common Units) (Details) - Common Units [Member] |
9 Months Ended |
---|---|
Sep. 30, 2018
shares
| |
Class of Stock [Line Items] | |
Phantom unit vesting (in shares) | 132,503 |
Common units issued in connection the ATM (in shares) | (17,286,859) |
Limited Partners' Capital Account, Units Outstanding | 99,667,999 |
Partners' Capital (Allocations of Net Income) (Details) - Common Units [Member] - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Schedule of Partners' Capital [Line Items] | ||||
Distributions | $ 68 | $ 82 | $ 204 | $ 246 |
Distributions in excess of income | (25) | (25) | 398 | 413 |
Limited partners' interest in income from continuing operations | $ 93 | $ 107 | $ (194) | $ (167) |
Cash distribution per common unit (in shares) | $ 0.8255 | $ 0.8255 | $ 2.4765 | $ 2.4765 |
Partners' Capital (Incentive Distribution Rights) (Details) |
9 Months Ended |
---|---|
Sep. 30, 2018
$ / shares
| |
Minimum Quarterly Distribution [Member] | |
Distribution Made To Managing Member Or General Partner [Line Items] | |
Total quarterly distribution per common unit target amount (in dollars per share) | $ 0.4375 |
Minimum Quarterly Distribution [Member] | Common Units [Member] | |
Distribution Made To Managing Member Or General Partner [Line Items] | |
Marginal percentage interest in distributions | 100.00% |
Minimum Quarterly Distribution [Member] | Incentive Distribution Rights [Member] | |
Distribution Made To Managing Member Or General Partner [Line Items] | |
Marginal percentage interest in distributions | 0.00% |
First Target Distribution [Member] | Common Units [Member] | |
Distribution Made To Managing Member Or General Partner [Line Items] | |
Marginal percentage interest in distributions | 100.00% |
First Target Distribution [Member] | Incentive Distribution Rights [Member] | |
Distribution Made To Managing Member Or General Partner [Line Items] | |
Marginal percentage interest in distributions | 0.00% |
First Target Distribution [Member] | Minimum [Member] | |
Distribution Made To Managing Member Or General Partner [Line Items] | |
Total quarterly distribution per common unit target amount (in dollars per share) | $ 0.4375 |
First Target Distribution [Member] | Maximum [Member] | |
Distribution Made To Managing Member Or General Partner [Line Items] | |
Total quarterly distribution per common unit target amount (in dollars per share) | $ 0.5031250 |
Second Target Distribution [Member] | Common Units [Member] | |
Distribution Made To Managing Member Or General Partner [Line Items] | |
Marginal percentage interest in distributions | 85.00% |
Second Target Distribution [Member] | Incentive Distribution Rights [Member] | |
Distribution Made To Managing Member Or General Partner [Line Items] | |
Marginal percentage interest in distributions | 15.00% |
Second Target Distribution [Member] | Minimum [Member] | |
Distribution Made To Managing Member Or General Partner [Line Items] | |
Total quarterly distribution per common unit target amount (in dollars per share) | $ 0.503125 |
Second Target Distribution [Member] | Maximum [Member] | |
Distribution Made To Managing Member Or General Partner [Line Items] | |
Total quarterly distribution per common unit target amount (in dollars per share) | $ 0.546875 |
Third Target Distribution [Member] | Common Units [Member] | |
Distribution Made To Managing Member Or General Partner [Line Items] | |
Marginal percentage interest in distributions | 75.00% |
Third Target Distribution [Member] | Incentive Distribution Rights [Member] | |
Distribution Made To Managing Member Or General Partner [Line Items] | |
Marginal percentage interest in distributions | 25.00% |
Third Target Distribution [Member] | Minimum [Member] | |
Distribution Made To Managing Member Or General Partner [Line Items] | |
Total quarterly distribution per common unit target amount (in dollars per share) | $ 0.546875 |
Third Target Distribution [Member] | Maximum [Member] | |
Distribution Made To Managing Member Or General Partner [Line Items] | |
Total quarterly distribution per common unit target amount (in dollars per share) | 0.656250 |
Distributions Thereafter [Member] | |
Distribution Made To Managing Member Or General Partner [Line Items] | |
Total quarterly distribution per common unit target amount (in dollars per share) | $ 0.656250 |
Distributions Thereafter [Member] | Common Units [Member] | |
Distribution Made To Managing Member Or General Partner [Line Items] | |
Marginal percentage interest in distributions | 50.00% |
Distributions Thereafter [Member] | Incentive Distribution Rights [Member] | |
Distribution Made To Managing Member Or General Partner [Line Items] | |
Marginal percentage interest in distributions | 50.00% |
Partners' Capital (Cash Distributions) (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Nov. 14, 2018 |
Aug. 15, 2018 |
May 15, 2018 |
Feb. 14, 2018 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Distribution Made To Managing Member Or General Partner [Line Items] | ||||||||
Per Unit Distribution (in dollars per share) | $ 0.8255 | $ 0.8255 | $ 0.8255 | |||||
Total Cash Distribution | $ 68 | $ 68 | $ 82 | |||||
Distribution to IDR Holders | $ 17 | $ 18 | $ 21 | $ 18 | $ 22 | $ 53 | $ 64 | |
Subsequent Event [Member] | ||||||||
Distribution Made To Managing Member Or General Partner [Line Items] | ||||||||
Per Unit Distribution (in dollars per share) | $ 0.8255 | |||||||
Total Cash Distribution | $ 68 | |||||||
Distribution to IDR Holders | $ 18 |
Partners' Capital Series A Preferred Units (Details) - Series A Preferred Units [Member] $ / shares in Units, $ in Millions |
Mar. 30, 2017
USD ($)
$ / shares
shares
|
---|---|
Shares Issued, Price Per Share | $ / shares | $ 25.00 |
Preferred Units, Issued | shares | 12,000,000 |
Equity Issued To Partners Capital Account | $ | $ 300 |
Partners' Capital Distribution of Preferred Units (Details) $ in Millions |
Feb. 14, 2018
USD ($)
|
---|---|
Series A Preferred Unit [Member] | |
Preferred Unit, Quarterly Distribution | $ 10 |
Unit-Based Compensation (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unit-based compensation | $ 4 | $ 9 | $ 10 | $ 18 |
Unit-Based Compensation (Phantom Common Unit Awards) - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unit-based compensation | $ 4 | $ 9 | $ 10 | $ 18 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | 6 | $ 2 | ||
Phantom common units [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | 21 | 21 | ||
Fair Value Of Nonvested Service Phantom Units | $ 53 | $ 53 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 4 months 10 days | |||
Share Based Compensation Award Tranche One [Member] | Phantom common units [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Employee Service Share-based Compensation Arrangement by Share-based Payment Award, Vesting Percentage | 60.00% | |||
Share Based Compensation Award Tranche Two [Member] | Phantom common units [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Employee Service Share-based Compensation Arrangement by Share-based Payment Award, Vesting Percentage | 40.00% |
Unit-Based Compensation (Phantom Common Unit Awards) (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2016 |
|
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Unit-based compensation | $ 4 | $ 9 | $ 10 | $ 18 | |
Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||
Non-vested at beginning of the period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 31.89 | $ 34.43 | |||
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | 28.86 | 28.31 | |||
Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | 31.34 | 34.71 | |||
Non-vested at end of period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 30.96 | 30.96 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Weighted Average Grant Date Fair Value | $ 28.95 | $ 45.48 | |||
Phantom common units [Member] | |||||
Nonvested, Number of Shares [Roll Forward] | |||||
Non-vested at beginning of period (in shares) | 1,777,301 | 2,013,634 | |||
Granted (in shares) | 421,100 | 203,867 | |||
Non-vested at end of period (in shares) | 1,699,776 | 1,699,776 | |||
Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 199,504 | 289,377 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | (299,121) | (150,823) |
Segment Reporting - Additional Information (Details) |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2018
state
store
segment
|
Apr. 02, 2018
store
|
Jan. 18, 2017
store
|
|
Segment Reporting Information [Line Items] | |||
Number of operating segments | segment | 2 | ||
Number of Stores | store | 50 | 97 | |
Minimum [Member] | Wholesale Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of states in which entity operates | state | 30 | ||
Minimum [Member] | Retail Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of states in which entity operates | state | 20 | ||
Commission Agent Revenue [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of Stores | store | 207 |
Segment Reporting (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | $ 4,761 | $ 13,117 | ||||||
Interest expense, net | [1] | 35 | $ 64 | 107 | $ 184 | |||
Income tax expense (benefit) | 10 | 44 | 39 | (103) | ||||
Income (loss) from continuing operations | 114 | 121 | 130 | 104 | ||||
Loss from discontinued operations, net of income taxes | (2) | 17 | (265) | (187) | ||||
Net income and comprehensive income | 112 | 138 | (135) | (83) | ||||
Depreciation, amortization and accretion | 42 | 29 | 132 | |||||
EBITDA | 201 | 217 | 301 | (202) | ||||
Non-cash unit based compensation expense | [1] | 4 | 9 | 10 | 18 | |||
Loss on disposal of assets and impairment charges | [1] | (8) | 34 | 58 | 367 | |||
Unrealized loss on commodity derivatives | [1] | 0 | 6 | 0 | 5 | |||
Adjusted EBITDA | 208 | 199 | 457 | 574 | ||||
Payments to Acquire Property, Plant, and Equipment | [1] | 30 | 41 | 62 | 139 | |||
Loss on extinguishment of debt and other | [1] | (129) | 0 | |||||
Assets, Fair Value Adjustment | [1] | 7 | (55) | (51) | (8) | |||
Other non-cash adjustments | 4 | 0 | 10 | 0 | ||||
Assets | 5,148 | 5,148 | $ 8,344 | |||||
Operating Segments [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Income tax expense (benefit) | [1] | 12 | (14) | 197 | (54) | |||
Depreciation, amortization and accretion | 155 | |||||||
Operating Segments [Member] | Fuel Distribution and Marketing [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Interest expense, net | [1] | 28 | 34 | 74 | 68 | |||
Income tax expense (benefit) | [1] | 1 | (1) | (1) | (1) | |||
Net income and comprehensive income | 89 | 69 | 132 | 112 | ||||
Depreciation, amortization and accretion | 32 | 23 | 95 | 81 | ||||
EBITDA | 150 | 125 | 300 | (260) | ||||
Non-cash unit based compensation expense | [1] | 1 | 0 | 2 | 1 | |||
Loss on disposal of assets and impairment charges | [1] | 21 | (4) | 24 | 0 | |||
Unrealized loss on commodity derivatives | [1] | 0 | 6 | 0 | 5 | |||
Adjusted EBITDA | 183 | 64 | 395 | 248 | ||||
Payments to Acquire Property, Plant, and Equipment | [1] | 21 | 25 | 44 | 50 | |||
Loss on extinguishment of debt and other | [1] | (109) | 0 | |||||
Assets, Fair Value Adjustment | [1] | 7 | (51) | (50) | (8) | |||
Other non-cash adjustments | 4 | 0 | 10 | 0 | ||||
Assets | 4,052 | 4,052 | 3,130 | |||||
Operating Segments [Member] | All Other [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Interest expense, net | [1] | 7 | 30 | 33 | 116 | |||
Income tax expense (benefit) | [1] | 11 | (13) | 198 | (53) | |||
Net income and comprehensive income | 23 | 69 | (267) | (195) | ||||
Depreciation, amortization and accretion | 10 | 6 | 37 | 74 | ||||
EBITDA | (51) | (92) | (1) | 58 | ||||
Non-cash unit based compensation expense | [1] | 3 | 9 | 8 | 17 | |||
Loss on disposal of assets and impairment charges | [1] | (29) | 38 | 34 | 367 | |||
Unrealized loss on commodity derivatives | [1] | 0 | 0 | 0 | 0 | |||
Adjusted EBITDA | 25 | 135 | 62 | 326 | ||||
Payments to Acquire Property, Plant, and Equipment | [1] | 9 | 16 | 18 | 89 | |||
Loss on extinguishment of debt and other | [1] | (20) | 0 | |||||
Assets, Fair Value Adjustment | [1] | 0 | (4) | (1) | 0 | |||
Other non-cash adjustments | 0 | 0 | 0 | 0 | ||||
Assets | 1,096 | 1,096 | $ 5,214 | |||||
Discontinued Operations [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Gross Profit | 0 | 320 | 44 | 871 | ||||
Other | 0 | 482 | 93 | 1,383 | ||||
Revenues | 0 | 1,802 | 349 | 5,145 | ||||
Operating Expenses | 0 | 260 | 129 | 988 | ||||
Operating income (loss) | 0 | 60 | (85) | (117) | ||||
Interest expense, net | 0 | 13 | 2 | 21 | ||||
Income tax expense (benefit) | 2 | 30 | 158 | 49 | ||||
Loss from discontinued operations, net of income taxes | (2) | 17 | (265) | (187) | ||||
Depreciation, amortization and accretion | 0 | (5) | 0 | 31 | ||||
Loss on disposal of assets and impairment charges | 0 | 26 | 61 | 265 | ||||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | (2) | 17 | (265) | (187) | ||||
Loss on extinguishment of debt and other | 0 | 0 | (20) | 0 | ||||
Discontinued Operations [Member] | Operating Segments [Member] | Fuel Distribution and Marketing [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 | ||||
Discontinued Operations [Member] | Operating Segments [Member] | All Other [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | (2) | 17 | (265) | (187) | ||||
Discontinued Operations [Member] | Motor Fuels [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 0 | 1,320 | 256 | 3,762 | ||||
Continuing Operations [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Gross Profit | 333 | 316 | 939 | 831 | ||||
Other | 64 | 193 | 306 | 546 | ||||
Intersegment | 0 | 0 | 0 | 0 | ||||
Revenues | 4,761 | 3,064 | 13,117 | 8,764 | ||||
Operating Expenses | 174 | 188 | 556 | 667 | ||||
Operating income (loss) | 159 | 128 | 383 | 164 | ||||
Interest expense, net | 35 | 51 | 105 | 163 | ||||
Income (loss) from continuing operations before income taxes | 124 | 77 | 169 | 1 | ||||
Income tax expense (benefit) | 10 | (44) | 39 | (103) | ||||
Income (loss) from continuing operations | 114 | 121 | 130 | 104 | ||||
Loss from discontinued operations, net of income taxes | (265) | (187) | ||||||
Depreciation, amortization and accretion | 42 | 34 | 132 | 124 | ||||
Non-cash unit based compensation expense | 10 | 18 | ||||||
Loss on disposal of assets and impairment charges | (8) | 8 | (3) | 102 | ||||
Payments to Acquire Property, Plant, and Equipment | 62 | 75 | ||||||
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 114 | 121 | 130 | 104 | ||||
Loss on extinguishment of debt and other | 0 | 0 | 109 | 0 | ||||
Continuing Operations [Member] | Fuel Distribution and Marketing [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 4,494 | 11,983 | ||||||
Continuing Operations [Member] | All Other [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Other | 52 | 265 | ||||||
Revenues | 267 | 1,134 | ||||||
Continuing Operations [Member] | Operating Segments [Member] | Fuel Distribution and Marketing [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Gross Profit | 261 | 190 | 704 | 470 | ||||
Other | 12 | 13 | 41 | 37 | ||||
Intersegment | 460 | 407 | 1,271 | 1,088 | ||||
Revenues | 4,954 | 2,874 | 13,254 | 8,170 | ||||
Operating Expenses | 143 | 88 | 390 | 291 | ||||
Operating income (loss) | 118 | 102 | 314 | 179 | ||||
Interest expense, net | 28 | 34 | 74 | 68 | ||||
Income (loss) from continuing operations before income taxes | 90 | 68 | 131 | 111 | ||||
Income tax expense (benefit) | 1 | (1) | (1) | (1) | ||||
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 89 | 69 | 132 | 112 | ||||
Loss on extinguishment of debt and other | 109 | 0 | ||||||
Continuing Operations [Member] | Operating Segments [Member] | All Other [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Gross Profit | 72 | 126 | 235 | 361 | ||||
Other | 52 | 180 | 265 | 509 | ||||
Intersegment | 29 | 34 | 93 | 94 | ||||
Revenues | 296 | 631 | 1,227 | 1,776 | ||||
Operating Expenses | 31 | 100 | 166 | 376 | ||||
Operating income (loss) | 41 | 26 | 69 | (15) | ||||
Interest expense, net | 7 | 17 | 31 | 95 | ||||
Income (loss) from continuing operations before income taxes | 34 | 9 | 38 | (110) | ||||
Income tax expense (benefit) | 9 | (43) | 40 | (102) | ||||
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 25 | 52 | (2) | (8) | ||||
Loss on extinguishment of debt and other | 0 | 0 | ||||||
Continuing Operations [Member] | Intersegment Eliminations | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Intersegment | (489) | (441) | (1,364) | (1,182) | ||||
Revenues | (489) | (441) | (1,364) | (1,182) | ||||
Continuing Operations [Member] | Motor Fuels [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Gross Profit | 247 | 203 | 679 | 516 | ||||
Revenues | 4,662 | 2,849 | 12,720 | 8,152 | ||||
Continuing Operations [Member] | Motor Fuels [Member] | Operating Segments [Member] | Fuel Distribution and Marketing [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Gross Profit | 222 | 158 | 587 | 383 | ||||
Revenues | 4,450 | 2,435 | 11,860 | 6,988 | ||||
Continuing Operations [Member] | Motor Fuels [Member] | Operating Segments [Member] | All Other [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Gross Profit | 25 | 45 | 92 | 133 | ||||
Revenues | 212 | 414 | 860 | 1,164 | ||||
Continuing Operations [Member] | Rental and Other [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Gross Profit | 35 | 22 | 91 | 66 | ||||
Revenues | 35 | 22 | 91 | 66 | ||||
Continuing Operations [Member] | Rental and Other [Member] | Fuel Distribution and Marketing [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 32 | 82 | ||||||
Continuing Operations [Member] | Rental and Other [Member] | All Other [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 3 | 9 | ||||||
Continuing Operations [Member] | Rental and Other [Member] | Operating Segments [Member] | Fuel Distribution and Marketing [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Gross Profit | 32 | 19 | 82 | 57 | ||||
Revenues | 32 | 19 | 82 | 57 | ||||
Continuing Operations [Member] | Rental and Other [Member] | Operating Segments [Member] | All Other [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Gross Profit | 3 | 3 | 9 | 9 | ||||
Revenues | 3 | 3 | 9 | 9 | ||||
Continuing Operations [Member] | Other [Domain] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Gross Profit | 51 | 91 | 169 | 249 | ||||
Continuing Operations [Member] | Other [Domain] | Operating Segments [Member] | Fuel Distribution and Marketing [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Gross Profit | 7 | 13 | 35 | 30 | ||||
Continuing Operations [Member] | Other [Domain] | Operating Segments [Member] | All Other [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Gross Profit | $ 44 | $ 78 | $ 134 | $ 219 | ||||
|
Net Income per Unit (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Aug. 15, 2018 |
May 15, 2018 |
Feb. 14, 2018 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Earnings Per Share Basic [Line Items] | |||||||
Income (loss) from continuing operations | $ 114 | $ 121 | $ 130 | $ 104 | |||
Distribution to preferred units | (2) | ||||||
Net income (loss) and comprehensive income (loss) | 112 | 138 | (135) | (83) | |||
Incentive distribution rights | $ 17 | $ 18 | $ 21 | 18 | 22 | 53 | 64 |
Distributions on nonvested phantom unit awards | 1 | 2 | 4 | 5 | |||
Loss from discontinued operations, net of income taxes | $ (2) | $ 17 | $ (265) | $ (187) | |||
Weighted average limited partner units outstanding: | |||||||
Income (Loss) from Continuing Operations, Net of Tax, Per Outstanding Limited Partnership Unit, Diluted | $ 1.15 | $ 0.91 | $ 0.83 | $ 0.22 | |||
Income (Loss) from Discontinued Operations, Net of Tax, Per Outstanding Limited Partnership Unit, Diluted | $ (0.03) | $ 0.17 | $ (3.12) | $ (1.90) | |||
Common Units [Member] | |||||||
Earnings Per Share Basic [Line Items] | |||||||
Income from continuing operations allocated to limited partners | $ 95 | $ 90 | $ 71 | $ 20 | |||
Weighted average limited partner units outstanding: | |||||||
Common - basic (in shares) | 82,506,279 | 99,469,643 | 84,891,853 | 99,185,042 | |||
Common - equivalents (in shares) | 578,434 | 647,373 | 482,123 | 396,584 | |||
Common - diluted (in shares) | 83,084,713 | 100,117,016 | 85,373,976 | 99,581,626 | |||
Income (Loss) from Continuing Operations, Per Outstanding Limited Partnership Unit, Basic, Net of Tax | $ 1.16 | $ 0.92 | $ 0.84 | $ 0.22 | |||
Income (Loss) from Discontinued Operations, Net of Tax, Per Outstanding Limited Partnership Unit, Basic | $ (0.03) | $ 0.17 | $ (3.12) | $ (1.90) | |||
Series A Preferred Units [Member] | |||||||
Earnings Per Share Basic [Line Items] | |||||||
Distribution to preferred units | $ 0 | $ (7) | $ 2 | $ (15) |
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