Acquisitions (Notes)

6 Months Ended

Jun. 30, 2015

Business Combinations [Abstract]

Mergers, Acquisitions and Dispositions Disclosures [Text Block]

3. Acquisitions

On October 15, 2014 (the "Closing Date"), under the terms of the Contribution Agreement, WNRL purchased all of the outstanding limited liability company interests of WRW from WRSW, in exchange for $320 million of cash and 1,160,092 common units representing limited partner interests in WNRL. The issuance of these units to Western increased Western's limited partner interest in WNRL to 66.2%. We funded the cash consideration through $269 million in new borrowings under the Revolving Credit Facility and $51 million from cash on hand.

At the Closing Date, WNRL purchased substantially all of Western’s southwest wholesale assets including assets and related inventories of WRW's lubricant distribution, southwest bulk petroleum fuels distribution and products transportation. We treated the purchase of WRW's assets as a reorganization of entities under common control as required for accounting purposes and, as such, we recorded the purchased assets at Western's historical book value.

In connection with the Contribution Agreement, we entered into wholesale commercial agreements with Western that have initial ten year terms. See Note 18, Related Party Transactions, to our condensed consolidated financial statements for additional information regarding the commercial agreements.