Supplemental Cash Flow Information

3 Months Ended

Mar. 31, 2015

Supplemental Cash Flow Information [Abstract]

SUPPLEMENTAL CASH FLOW INFORMATION

11. SUPPLEMENTAL CASH FLOW INFORMATION

In order to determine net cash provided by operating activities, net income is adjusted by, among other things, changes in current assets and current liabilities as follows (in thousands):

	Three Months Ended March 31,
	2015			2014
Decrease (increase) in current assets:
Receivables from related party	$	(7,662	)	$	4,436
Prepaid expenses and other	(172		)	(122		)
Increase (decrease) in current liabilities:
Accounts payable	(275		)	(2,181		)
Accrued liabilities	556			360
Taxes other than income taxes	(224		)	(385		)
Deferred revenue from related party	22			663
Changes in current assets and current liabilities	$	(7,755	)	$	2,771

The above changes in current assets and current liabilities differ from changes between amounts reflected in the applicable balance sheets for the respective periods for the following reasons:

• amounts accrued for capital expenditures are reflected in investing activities when such amounts are paid, and

• amounts accrued for offering costs and debt issuance costs were reflected in financing activities when paid.

Noncash financing activities for the three months ended March 31, 2015 included the contribution of $4.8 million for projects ($4.5 million for capital projects, an investing activity, and $0.3 million for expense projects, an operating activity) that were funded by Valero related to the Houston and St. Charles Terminal Services Business. Valero agreed to fund these projects as part of our acquisition of the Houston and St. Charles Terminal Services Business. Noncash financing activities for the three months ended March 31, 2015 also included the issuance of 1,908,100 common units and 38,941 general partner units having an aggregate value of $100.0 million in connection with the Houston and St. Charles Terminal Acquisition described in Note 3.

There were no significant noncash investing or financing activities for the three months ended March 31, 2014.

The following is a reconciliation of the amounts presented as net transfers to Valero on our statements of partners’ capital and statements of cash flows (in thousands):

	Three Months Ended March 31,
	2015			2014 (a)
Net transfers from Valero per statement of partners’ capital	$	9,934		$	24,002
Less: Noncash transfers to Valero	(1,001		)	(754		)
Net transfers from Valero per statement of cash flows	$	10,935		$	24,756
(a) Prior period financial information has been retrospectively adjusted for the Acquisitions.

Noncash transfers to Valero primarily represent the change in amounts accrued by our Predecessor for capital expenditures as we do not reflect capital expenditures in our statements of cash flows until such amounts are paid.

Cash flows related to interest and income taxes paid were as follows (in thousands):

	Three Months Ended March 31,
	2015		2014 (a)
Interest paid	$	172	$	236
Income taxes paid	—		31
(a) Prior period financial information has been retrospectively adjusted for the Acquisitions.