| Debt
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
• | Level 1 — Quoted prices (unadjusted) in active markets for identical assets and liabilities that we have the ability to access at the measurement date. |
• | Level 2 — Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived from observable market data by correlation or other means. |
• | Level 3 — Unobservable inputs for the asset or liability including situations where there is little, if any, market activity for the asset or liability. |
2014 | 2013 | 2012 (a) | |||||||||
Net income attributable to AmeriGas Partners, L.P. | $ | 289,893 | $ | 221,222 | $ | 11,025 | |||||
Adjust for general partner share and theoretical distributions of net income attributable to AmeriGas Partners, L.P. to the general partner in accordance with the two-class method for MLPs | (27,895 | ) | (22,639 | ) | (20,181 | ) | |||||
Common Unitholders’ interest in net income attributable to AmeriGas Partners, L.P. under the two-class method for MLPs | $ | 261,998 | $ | 198,583 | $ | (9,156 | ) | ||||
Weighted average Common Units outstanding — basic (thousands) | 92,876 | 92,832 | 81,433 | ||||||||
Potentially dilutive Common Units (thousands) | 70 | 78 | — | ||||||||
Weighted average Common Units outstanding — diluted (thousands) | 92,946 | 92,910 | 81,433 |
(a) | There were 58 potentially dilutive Common Units excluded from the calculation because of the net loss attributable under the two-class method. |
|
|
Assets acquired: | ||||
Current assets | $ | 301,372 | ||
Property, plant & equipment | 890,215 | |||
Customer relationships (estimated useful life of 15 years) | 418,900 | |||
Trademarks and tradenames (a) | 91,100 | |||
Goodwill (a) (b) | 1,217,717 | |||
Other assets | 9,947 | |||
Total assets acquired | $ | 2,929,251 | ||
Liabilities assumed: | ||||
Current liabilities | $ | (238,016 | ) | |
Long-term debt | (62,927 | ) | ||
Other noncurrent liabilities | (23,481 | ) | ||
Total liabilities assumed | $ | (324,424 | ) | |
Total | $ | 2,604,827 |
(a) | During Fiscal 2013, the Partnership made correcting adjustments to trademarks and tradenames and goodwill which are not reflected in the table above (see Note 10). |
(b) | Goodwill associated with the Heritage Acquisition principally results from synergies expected from combining the operations and from assembled workforce. |
2012 | ||||
Revenues | $ | 3,413,331 | ||
Net income attributable to AmeriGas Partners | $ | 30,977 | ||
Income per limited partner unit: | ||||
Basic | $ | 0.17 | ||
Diluted | $ | 0.17 |
2014 | 2013 | 2012 | |||||||||
Net current assets | $ | 136 | $ | 691 | $ | 1,590 | |||||
Property, plant and equipment | 6,916 | 5,167 | 6,175 | ||||||||
Goodwill | 6,751 | 12,481 | 5,363 | ||||||||
Customer relationships and noncompete agreements (estimated useful life of 10 and 5 years, respectively) | 6,434 | 5,576 | 5,234 | ||||||||
Total | $ | 20,237 | $ | 23,915 | $ | 18,362 |
|
2014 | 2013 | 2012 | |||||||||
1st Quarter | $ | 0.84 | $ | 0.80 | $ | 0.74 | |||||
2nd Quarter | $ | 0.84 | $ | 0.80 | $ | 0.76 | |||||
3rd Quarter | $ | 0.88 | $ | 0.84 | $ | 0.80 | |||||
4th Quarter | $ | 0.88 | $ | 0.84 | $ | 0.80 |
|
2014 | 2013 | ||||||
AmeriGas Partners Senior Notes: | |||||||
7.00%, due May 2022 | $ | 980,844 | $ | 980,844 | |||
6.75%, due May 2020 | 550,000 | 550,000 | |||||
6.50%, due May 2021 | 270,001 | 270,001 | |||||
6.25%, due August 2019 | 450,000 | 450,000 | |||||
HOLP Senior Secured Notes | 26,497 | 32,001 | |||||
Other | 14,392 | 17,265 | |||||
Total long-term debt | 2,291,734 | 2,300,111 | |||||
Less: current maturities | (11,589 | ) | (12,014 | ) | |||
Total long-term debt due after one year | $ | 2,280,145 | $ | 2,288,097 |
|
|
2014 | 2013 | ||||||
Propane gas | $ | 157,032 | $ | 130,410 | |||
Materials, supplies and other | 19,680 | 22,860 | |||||
Appliances for sale | 5,234 | 5,658 | |||||
Total inventories | $ | 181,946 | $ | 158,928 |
|
2014 | 2013 | ||||||
Land | $ | 142,505 | $ | 147,405 | |||
Buildings and improvements | 188,183 | 176,638 | |||||
Transportation equipment | 243,437 | 227,242 | |||||
Storage facilities | 248,757 | 240,251 | |||||
Equipment, primarily cylinders and tanks | 1,598,120 | 1,688,512 | |||||
Other, including work in progress | 205,675 | 189,154 | |||||
Gross property, plant and equipment | 2,626,677 | 2,669,202 | |||||
Less accumulated depreciation and amortization | (1,239,767 | ) | (1,231,688 | ) | |||
Net property, plant and equipment | $ | 1,386,910 | $ | 1,437,514 |
|
Balance September 30, 2012 | $ | 1,914,808 | |
Acquisitions | 12,481 | ||
Purchase accounting adjustments | 19 | ||
Correcting adjustment | 9,300 | ||
Balance September 30, 2013 | 1,936,608 | ||
Acquisitions | 6,751 | ||
Purchase accounting adjustments | (2,684 | ) | |
Goodwill push-down adjustment associated with prior-year acquisition | 5,073 | ||
Balance September 30, 2014 | $ | 1,945,748 |
2014 | 2013 | ||||||
Customer relationships and noncompete agreements | $ | 519,103 | $ | 511,130 | |||
Trademarks and tradenames (not subject to amortization) | 82,944 | 81,800 | |||||
Gross carrying amount | 602,047 | 592,930 | |||||
Accumulated amortization | (137,709 | ) | (99,281 | ) | |||
Intangible assets, net | $ | 464,338 | $ | 493,649 |
|
Grants Awarded in Fiscal Year | ||||||||
2014 | 2013 | 2012 | ||||||
Risk-free rate | 0.8 | % | 0.4 | % | 0.4 | % | ||
Expected life | 3 years | 3 years | 3 years | |||||
Expected volatility | 21.1 | % | 20.7 | % | 23.0 | % | ||
Dividend Yield | 7.5 | % | 8.2 | % | 6.4 | % |
Total | Vested | Non-Vested | ||||||||||||||||||
Number of Common Units Subject to Award | Weighted Average Grant Date Fair Value (per Unit) | Number of Common Units Subject to Award | Weighted Average Grant Date Fair Value (per Unit) | Number of Common Units Subject to Award | Weighted Average Grant Date Fair Value (per Unit) | |||||||||||||||
September 30, 2013 | 224,167 | $ | 47.88 | 47,715 | $ | 47.92 | 176,452 | $ | 47.87 | |||||||||||
AmeriGas Performance Units: | ||||||||||||||||||||
Granted | 53,800 | $ | 41.50 | 633 | $ | 41.37 | 53,167 | $ | 41.50 | |||||||||||
Forfeited | (8,150 | ) | $ | 45.96 | — | $ | — | (8,150 | ) | $ | 45.96 | |||||||||
Vested | — | $ | — | 15,319 | $ | 53.93 | (15,319 | ) | $ | 53.93 | ||||||||||
Performance criteria not met | (31,317 | ) | $ | 54.51 | (31,317 | ) | $ | 54.51 | — | $ | — | |||||||||
AmeriGas Stock Units: | ||||||||||||||||||||
Granted | 32,658 | $ | 46.37 | 15,936 | $ | 48.00 | 16,722 | $ | 44.81 | |||||||||||
Forfeited | (7,783 | ) | $ | 51.10 | — | $ | — | (7,783 | ) | $ | (51.10 | ) | ||||||||
Vested | — | $ | — | 52,061 | $ | 47.58 | (52,061 | ) | $ | 47.58 | ||||||||||
Awards paid | (63,140 | ) | $ | 48.00 | (63,140 | ) | $ | 48.00 | — | $ | — | |||||||||
September 30, 2014 | 200,235 | $ | 44.82 | 37,207 | $ | 44.27 | 163,028 | $ | 44.95 |
2014 | 2013 | 2012 | |||||||||
AmeriGas Performance Unit awards: | |||||||||||
Number of Common Units subject to original Awards granted | 41,251 | 48,150 | 53,600 | ||||||||
Fiscal year granted | 2011 | 2010 | 2009 | ||||||||
Payment of Awards: | |||||||||||
AmeriGas Partners Common Units issued | — | — | — | ||||||||
Cash paid | $ | — | $ | — | $ | — | |||||
AmeriGas Stock Unit awards: | |||||||||||
Number of Common Units subject to original Awards granted | 72,023 | 35,934 | 67,246 | ||||||||
Payment of Awards: | |||||||||||
AmeriGas Partners Common Units issued | 40,842 | 23,192 | 44,016 | ||||||||
Cash paid | $ | 1,364 | $ | 629 | $ | 980 |
|
Year Ending September 30, | |||
2015 | $ | 58,317 | |
2016 | 48,713 | ||
2017 | 38,565 | ||
2018 | 32,710 | ||
2019 | 28,010 | ||
Thereafter | 70,381 | ||
Total minimum operating lease payments | $ | 276,696 |
|
|
2014 | 2013 | ||||||
Litigation, property and casualty liabilities | $ | 35,933 | $ | 34,250 | |||
Taxes other than income taxes | 16,353 | 9,922 | |||||
Propane exchange liabilities | 21,402 | 16,654 | |||||
Deferred tank fee revenue | 21,239 | 22,044 | |||||
Other | 16,169 | 15,775 | |||||
Total other current liabilities | $ | 111,096 | $ | 98,645 |
|
Asset (Liability) | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
September 30, 2014: | |||||||||||||||
Derivative instruments: | |||||||||||||||
Assets: | |||||||||||||||
Commodity contracts | $ | — | $ | 3,065 | $ | — | $ | 3,065 | |||||||
Liabilities: | |||||||||||||||
Commodity contracts | $ | — | $ | (9,472 | ) | $ | — | $ | (9,472 | ) | |||||
September 30, 2013 (a): | |||||||||||||||
Derivative instruments: | |||||||||||||||
Assets: | |||||||||||||||
Commodity contracts | $ | — | $ | 19,621 | $ | — | $ | 19,621 | |||||||
Liabilities: | |||||||||||||||
Commodity contracts | $ | — | $ | (1,504 | ) | $ | — | $ | (1,504 | ) |
(a) | Certain immaterial amounts have been revised to correct the classification of derivatives. |
|
2014 | 2013 (a) | ||||||
Derivative assets: | |||||||
Derivatives designated as hedging instruments: | |||||||
Propane contracts | $ | 2,278 | $ | 16,350 | |||
Derivatives not designated as hedging instruments: | |||||||
Propane contracts | 787 | 3,271 | |||||
Total derivative assets - gross | 3,065 | 19,621 | |||||
Gross amounts offset in the balance sheet | (2,793 | ) | (1,369 | ) | |||
Total derivative assets - net | $ | 272 | $ | 18,252 | |||
Derivative liabilities: | |||||||
Derivatives designated as hedging instruments: | |||||||
Propane contracts | $ | (217 | ) | $ | (1,504 | ) | |
Derivatives not designated as hedging instruments: | |||||||
Propane contracts | (9,255 | ) | — | ||||
Total derivative liabilities - gross | (9,472 | ) | (1,504 | ) | |||
Gross amounts offset in the balance sheet | 2,793 | 1,369 | |||||
Total derivative liabilities - net | $ | (6,679 | ) | $ | (135 | ) |
(a) | Certain immaterial amounts have been revised to correct the classification of derivatives. |
Gain (Loss) Recognized in AOCI and Noncontrolling Interest | Gain (Loss) Reclassified from AOCI and Noncontrolling Interest into Income | Location of Gain (Loss) Reclassified from AOCI and Noncontrolling Interest into Income | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||
Cash Flow Hedges: | ||||||||||||||||||||||||||
Propane contracts | $ | 44,203 | $ | 6,647 | $ | (86,573 | ) | $ | 56,517 | $ | (52,503 | ) | $ | (47,569 | ) | Cost of sales-propane | ||||||||||
Gain (Loss) | Location of Gain (Loss) Recognized in Income | |||||||||||||||||||||||||
Recognized in Income | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||||||||||
Propane contracts | $ | (4,863 | ) | $ | 1,848 | $ | (14,883 | ) | Cost of sales-propane |
|
2014 | 2013 | 2012 | |||||||||
Gains on sales of fixed assets | $ | 6,524 | $ | 4,115 | $ | 3,169 | |||||
Finance charges | 17,459 | 21,390 | 18,841 | ||||||||
Other | 3,467 | 6,998 | 4,511 | ||||||||
Total other income, net | $ | 27,450 | $ | 32,503 | $ | 26,521 |
|
December 31, | March 31, | June 30, | September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | 2014 | 2013 (a) | 2014 | 2013 (a) | 2014 | 2013 | ||||||||||||||||||||||||
Revenues | $ | 1,045,826 | $ | 876,647 | $ | 1,493,623 | $ | 1,176,207 | $ | 613,237 | $ | 581,719 | $ | 560,249 | $ | 531,970 | |||||||||||||||
Operating income (loss) | $ | 179,693 | $ | 139,866 | $ | 284,922 | $ | 257,505 | $ | 4,426 | $ | 6,639 | $ | (6,408 | ) | $ | (11,816 | ) | |||||||||||||
Net income (loss) | $ | 136,672 | $ | 98,043 | $ | 242,950 | $ | 215,781 | $ | (37,749 | ) | $ | (34,549 | ) | $ | (47,432 | ) | $ | (54,184 | ) | |||||||||||
Net income (loss) attributable to AmeriGas Partners, L.P. | $ | 134,898 | $ | 96,665 | $ | 240,103 | $ | 213,208 | $ | (37,761 | ) | $ | (34,595 | ) | $ | (47,347 | ) | $ | (54,056 | ) | |||||||||||
Income (loss) per limited partner unit (b): | |||||||||||||||||||||||||||||||
Basic | $ | 1.14 | $ | 0.93 | $ | 1.71 | $ | 1.56 | $ | (0.47 | ) | $ | (0.43 | ) | $ | (0.58 | ) | $ | (0.63 | ) | |||||||||||
Diluted | $ | 1.14 | $ | 0.93 | $ | 1.71 | $ | 1.56 | $ | (0.47 | ) | $ | (0.43 | ) | $ | (0.58 | ) | $ | (0.63 | ) |
(a) | The Partnership recorded the cumulative effect of an error in accounting for certain customer credits as of January 1, 2013, which decreased revenues and operating income by $7,038, and decreased net income attributable to AmeriGas Partners, L.P. by $6,967, for the three months ended March 31, 2013. The correction of the error in accounting for customer credits increased propane revenues and operating income by $3,600, and decreased net loss attributable to AmeriGas Partners, L.P. by $3,564, for the three months ended June 30, 2013 (see Note 2). |
(b) | Theoretical distributions of net income (loss) attributable to AmeriGas Partners, L.P. in accordance with accounting guidance regarding the application of the two-class method for determining earnings per share (see Note 2) resulted in a different allocation of net income attributable to AmeriGas Partners, L.P. to the General Partner and the limited partners in the computation of income per limited partner unit which had the effect of decreasing quarterly earnings per limited partner unit for the quarters ended December 31 and March 31 as follows: |
December 31, | March 31, | |||||||||||||||
Quarter ended: | 2013 | 2012 | 2014 | 2013 | ||||||||||||
Decrease in income per limited partner unit | $ | (0.24 | ) | $ | (0.06 | ) | $ | (0.79 | ) | $ | (0.66 | ) |
|
September 30, | |||||||
2014 | 2013 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash | $ | 4,746 | $ | 262 | |||
Accounts receivable — related party | 3,147 | 6,479 | |||||
Prepaids and other current assets | 1,155 | 1,155 | |||||
Total current assets | 9,048 | 7,896 | |||||
Investment in AmeriGas Propane, L.P. | 3,588,863 | 3,648,909 | |||||
Other assets | 23,610 | 27,300 | |||||
Total assets | $ | 3,621,521 | $ | 3,684,105 | |||
LIABILITIES AND PARTNERS’ CAPITAL | |||||||
Current liabilities: | |||||||
Accounts payable and other liabilities | $ | 500 | $ | 495 | |||
Accrued interest | 47,662 | 47,662 | |||||
Total current liabilities | 48,162 | 48,157 | |||||
Long-term debt | 2,250,845 | 2,250,845 | |||||
Commitments and contingencies | |||||||
Partners’ capital: | |||||||
Common unitholders | 1,299,260 | 1,354,187 | |||||
General partner | 20,460 | 15,930 | |||||
Accumulated other comprehensive income | 2,794 | 14,986 | |||||
Total partners’ capital | 1,322,514 | 1,385,103 | |||||
Total liabilities and partners’ capital | $ | 3,621,521 | $ | 3,684,105 |
Year Ended September 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Operating (expenses) income, net | $ | (258 | ) | $ | (289 | ) | $ | (3,568 | ) | ||
Loss on extinguishments of debt | — | — | (13,349 | ) | |||||||
Interest expense | (155,510 | ) | (154,593 | ) | (133,372 | ) | |||||
Loss before income taxes | (155,768 | ) | (154,882 | ) | (150,289 | ) | |||||
Income tax expense | 6 | 1 | 3 | ||||||||
Loss before equity in income of AmeriGas Propane, L.P. | (155,774 | ) | (154,883 | ) | (150,292 | ) | |||||
Equity in income of AmeriGas Propane, L.P. | 445,667 | 376,105 | 161,317 | ||||||||
Net income | $ | 289,893 | $ | 221,222 | $ | 11,025 | |||||
General partner’s interest in net income | $ | 26,749 | $ | 21,498 | $ | 13,119 | |||||
Limited partners’ interest in net income | $ | 263,144 | $ | 199,724 | $ | (2,094 | ) | ||||
Income (loss) per limited partner unit — basic and diluted | $ | 2.82 | $ | 2.14 | $ | (0.11 | ) | ||||
Average limited partner units outstanding — basic (thousands) | 92,876 | 92,832 | 81,433 | ||||||||
Average limited partner units outstanding — diluted (thousands) | 92,946 | 92,910 | 81,433 |
Year Ended September 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES (a) | $ | 348,704 | $ | 325,320 | $ | 170,598 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Acquisitions of businesses, net of cash acquired | — | — | (1,411,451 | ) | |||||||
Contributions to AmeriGas Propane, L.P. | — | — | (60,748 | ) | |||||||
Net cash used by investing activities | — | — | (1,472,199 | ) | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Distributions | (346,744 | ) | (327,000 | ) | (271,839 | ) | |||||
Issuance of long-term debt | — | — | 1,524,174 | ||||||||
Repayments of long-term debt | — | — | (232,844 | ) | |||||||
Proceeds from issuance of Common Units in public unit offering | — | — | 276,562 | ||||||||
Proceeds associated with equity based compensation plans, net of tax withheld | 2,499 | 1,221 | 951 | ||||||||
Capital contribution from General Partner | 25 | 13 | 2,824 | ||||||||
Net cash (used) provided by financing activities | (344,220 | ) | (325,766 | ) | 1,299,828 | ||||||
Increase (decrease) in cash and cash equivalents | $ | 4,484 | $ | (446 | ) | $ | (1,773 | ) | |||
CASH AND CASH EQUIVALENTS: | |||||||||||
End of year | $ | 4,746 | $ | 262 | $ | 708 | |||||
Beginning of year | 262 | 708 | 2,481 | ||||||||
Increase (decrease) | $ | 4,484 | $ | (446 | ) | $ | (1,773 | ) |
(a) | Includes cash distributions received from AmeriGas Propane, L.P. of $498,204, $478,458 and $334,527 for the years ended September 30, 2014, 2013 and 2012, respectively. |
|
Balance at beginning of year | Charged (credited) to costs and expenses | Other | Balance at end of year | |||||||||||||
Year Ended September 30, 2014 | ||||||||||||||||
Reserves deducted from assets in the consolidated balance sheet: | ||||||||||||||||
Allowance for doubtful accounts | $ | 18,552 | $ | 26,403 | $ | (27,274 | ) | (1) | $ | 17,681 | ||||||
Year Ended September 30, 2013 | ||||||||||||||||
Reserves deducted from assets in the consolidated balance sheet: | ||||||||||||||||
Allowance for doubtful accounts | $ | 17,217 | $ | 16,477 | $ | (15,142 | ) | (1) | $ | 18,552 |
Year Ended September 30, 2012 | |||||||||||||||||
Reserves deducted from assets in the consolidated balance sheet: | |||||||||||||||||
Allowance for doubtful accounts | $ | 17,181 | $ | 15,088 | $ | (15,052 | ) | (1) | $ | 17,217 |
(1) | Uncollectible accounts written off, net of recoveries. |
Balance at beginning of year | Charged (credited) to costs and expenses | Other | Balance at end of year | |||||||||||||
Year Ended September 30, 2014 | ||||||||||||||||
Reserves deducted from assets in the consolidated balance sheet: | ||||||||||||||||
Allowance for doubtful accounts | $ | 18,552 | $ | 26,403 | $ | (27,274 | ) | (1) | $ | 17,681 | ||||||
Year Ended September 30, 2013 | ||||||||||||||||
Reserves deducted from assets in the consolidated balance sheet: | ||||||||||||||||
Allowance for doubtful accounts | $ | 17,217 | $ | 16,477 | $ | (15,142 | ) | (1) | $ | 18,552 |
Year Ended September 30, 2012 | |||||||||||||||||
Reserves deducted from assets in the consolidated balance sheet: | |||||||||||||||||
Allowance for doubtful accounts | $ | 17,181 | $ | 15,088 | $ | (15,052 | ) | (1) | $ | 17,217 |
(1) | Uncollectible accounts written off, net of recoveries. |
|
• | Level 1 — Quoted prices (unadjusted) in active markets for identical assets and liabilities that we have the ability to access at the measurement date. |
• | Level 2 — Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived from observable market data by correlation or other means. |
• | Level 3 — Unobservable inputs for the asset or liability including situations where there is little, if any, market activity for the asset or liability. |
|
2014 | 2013 | 2012 (a) | |||||||||
Net income attributable to AmeriGas Partners, L.P. | $ | 289,893 | $ | 221,222 | $ | 11,025 | |||||
Adjust for general partner share and theoretical distributions of net income attributable to AmeriGas Partners, L.P. to the general partner in accordance with the two-class method for MLPs | (27,895 | ) | (22,639 | ) | (20,181 | ) | |||||
Common Unitholders’ interest in net income attributable to AmeriGas Partners, L.P. under the two-class method for MLPs | $ | 261,998 | $ | 198,583 | $ | (9,156 | ) | ||||
Weighted average Common Units outstanding — basic (thousands) | 92,876 | 92,832 | 81,433 | ||||||||
Potentially dilutive Common Units (thousands) | 70 | 78 | — | ||||||||
Weighted average Common Units outstanding — diluted (thousands) | 92,946 | 92,910 | 81,433 |
(a) | There were 58 potentially dilutive Common Units excluded from the calculation because of the net loss attributable under the two-class method. |
|
Assets acquired: | ||||
Current assets | $ | 301,372 | ||
Property, plant & equipment | 890,215 | |||
Customer relationships (estimated useful life of 15 years) | 418,900 | |||
Trademarks and tradenames (a) | 91,100 | |||
Goodwill (a) (b) | 1,217,717 | |||
Other assets | 9,947 | |||
Total assets acquired | $ | 2,929,251 | ||
Liabilities assumed: | ||||
Current liabilities | $ | (238,016 | ) | |
Long-term debt | (62,927 | ) | ||
Other noncurrent liabilities | (23,481 | ) | ||
Total liabilities assumed | $ | (324,424 | ) | |
Total | $ | 2,604,827 |
(a) | During Fiscal 2013, the Partnership made correcting adjustments to trademarks and tradenames and goodwill which are not reflected in the table above (see Note 10). |
(b) | Goodwill associated with the Heritage Acquisition principally results from synergies expected from combining the operations and from assembled workforce. |
2014 | 2013 | 2012 | |||||||||
Net current assets | $ | 136 | $ | 691 | $ | 1,590 | |||||
Property, plant and equipment | 6,916 | 5,167 | 6,175 | ||||||||
Goodwill | 6,751 | 12,481 | 5,363 | ||||||||
Customer relationships and noncompete agreements (estimated useful life of 10 and 5 years, respectively) | 6,434 | 5,576 | 5,234 | ||||||||
Total | $ | 20,237 | $ | 23,915 | $ | 18,362 |
2012 | ||||
Revenues | $ | 3,413,331 | ||
Net income attributable to AmeriGas Partners | $ | 30,977 | ||
Income per limited partner unit: | ||||
Basic | $ | 0.17 | ||
Diluted | $ | 0.17 |
|
2014 | 2013 | 2012 | |||||||||
1st Quarter | $ | 0.84 | $ | 0.80 | $ | 0.74 | |||||
2nd Quarter | $ | 0.84 | $ | 0.80 | $ | 0.76 | |||||
3rd Quarter | $ | 0.88 | $ | 0.84 | $ | 0.80 | |||||
4th Quarter | $ | 0.88 | $ | 0.84 | $ | 0.80 |
|
2014 | 2013 | ||||||
AmeriGas Partners Senior Notes: | |||||||
7.00%, due May 2022 | $ | 980,844 | $ | 980,844 | |||
6.75%, due May 2020 | 550,000 | 550,000 | |||||
6.50%, due May 2021 | 270,001 | 270,001 | |||||
6.25%, due August 2019 | 450,000 | 450,000 | |||||
HOLP Senior Secured Notes | 26,497 | 32,001 | |||||
Other | 14,392 | 17,265 | |||||
Total long-term debt | 2,291,734 | 2,300,111 | |||||
Less: current maturities | (11,589 | ) | (12,014 | ) | |||
Total long-term debt due after one year | $ | 2,280,145 | $ | 2,288,097 |
|
2014 | 2013 | ||||||
Propane gas | $ | 157,032 | $ | 130,410 | |||
Materials, supplies and other | 19,680 | 22,860 | |||||
Appliances for sale | 5,234 | 5,658 | |||||
Total inventories | $ | 181,946 | $ | 158,928 |
|
2014 | 2013 | ||||||
Land | $ | 142,505 | $ | 147,405 | |||
Buildings and improvements | 188,183 | 176,638 | |||||
Transportation equipment | 243,437 | 227,242 | |||||
Storage facilities | 248,757 | 240,251 | |||||
Equipment, primarily cylinders and tanks | 1,598,120 | 1,688,512 | |||||
Other, including work in progress | 205,675 | 189,154 | |||||
Gross property, plant and equipment | 2,626,677 | 2,669,202 | |||||
Less accumulated depreciation and amortization | (1,239,767 | ) | (1,231,688 | ) | |||
Net property, plant and equipment | $ | 1,386,910 | $ | 1,437,514 |
|
Balance September 30, 2012 | $ | 1,914,808 | |
Acquisitions | 12,481 | ||
Purchase accounting adjustments | 19 | ||
Correcting adjustment | 9,300 | ||
Balance September 30, 2013 | 1,936,608 | ||
Acquisitions | 6,751 | ||
Purchase accounting adjustments | (2,684 | ) | |
Goodwill push-down adjustment associated with prior-year acquisition | 5,073 | ||
Balance September 30, 2014 | $ | 1,945,748 |
2014 | 2013 | ||||||
Customer relationships and noncompete agreements | $ | 519,103 | $ | 511,130 | |||
Trademarks and tradenames (not subject to amortization) | 82,944 | 81,800 | |||||
Gross carrying amount | 602,047 | 592,930 | |||||
Accumulated amortization | (137,709 | ) | (99,281 | ) | |||
Intangible assets, net | $ | 464,338 | $ | 493,649 |
|
Grants Awarded in Fiscal Year | ||||||||
2014 | 2013 | 2012 | ||||||
Risk-free rate | 0.8 | % | 0.4 | % | 0.4 | % | ||
Expected life | 3 years | 3 years | 3 years | |||||
Expected volatility | 21.1 | % | 20.7 | % | 23.0 | % | ||
Dividend Yield | 7.5 | % | 8.2 | % | 6.4 | % |
Total | Vested | Non-Vested | ||||||||||||||||||
Number of Common Units Subject to Award | Weighted Average Grant Date Fair Value (per Unit) | Number of Common Units Subject to Award | Weighted Average Grant Date Fair Value (per Unit) | Number of Common Units Subject to Award | Weighted Average Grant Date Fair Value (per Unit) | |||||||||||||||
September 30, 2013 | 224,167 | $ | 47.88 | 47,715 | $ | 47.92 | 176,452 | $ | 47.87 | |||||||||||
AmeriGas Performance Units: | ||||||||||||||||||||
Granted | 53,800 | $ | 41.50 | 633 | $ | 41.37 | 53,167 | $ | 41.50 | |||||||||||
Forfeited | (8,150 | ) | $ | 45.96 | — | $ | — | (8,150 | ) | $ | 45.96 | |||||||||
Vested | — | $ | — | 15,319 | $ | 53.93 | (15,319 | ) | $ | 53.93 | ||||||||||
Performance criteria not met | (31,317 | ) | $ | 54.51 | (31,317 | ) | $ | 54.51 | — | $ | — | |||||||||
AmeriGas Stock Units: | ||||||||||||||||||||
Granted | 32,658 | $ | 46.37 | 15,936 | $ | 48.00 | 16,722 | $ | 44.81 | |||||||||||
Forfeited | (7,783 | ) | $ | 51.10 | — | $ | — | (7,783 | ) | $ | (51.10 | ) | ||||||||
Vested | — | $ | — | 52,061 | $ | 47.58 | (52,061 | ) | $ | 47.58 | ||||||||||
Awards paid | (63,140 | ) | $ | 48.00 | (63,140 | ) | $ | 48.00 | — | $ | — | |||||||||
September 30, 2014 | 200,235 | $ | 44.82 | 37,207 | $ | 44.27 | 163,028 | $ | 44.95 |
2014 | 2013 | 2012 | |||||||||
AmeriGas Performance Unit awards: | |||||||||||
Number of Common Units subject to original Awards granted | 41,251 | 48,150 | 53,600 | ||||||||
Fiscal year granted | 2011 | 2010 | 2009 | ||||||||
Payment of Awards: | |||||||||||
AmeriGas Partners Common Units issued | — | — | — | ||||||||
Cash paid | $ | — | $ | — | $ | — | |||||
AmeriGas Stock Unit awards: | |||||||||||
Number of Common Units subject to original Awards granted | 72,023 | 35,934 | 67,246 | ||||||||
Payment of Awards: | |||||||||||
AmeriGas Partners Common Units issued | 40,842 | 23,192 | 44,016 | ||||||||
Cash paid | $ | 1,364 | $ | 629 | $ | 980 |
|
Year Ending September 30, | |||
2015 | $ | 58,317 | |
2016 | 48,713 | ||
2017 | 38,565 | ||
2018 | 32,710 | ||
2019 | 28,010 | ||
Thereafter | 70,381 | ||
Total minimum operating lease payments | $ | 276,696 |
|
2014 | 2013 | ||||||
Litigation, property and casualty liabilities | $ | 35,933 | $ | 34,250 | |||
Taxes other than income taxes | 16,353 | 9,922 | |||||
Propane exchange liabilities | 21,402 | 16,654 | |||||
Deferred tank fee revenue | 21,239 | 22,044 | |||||
Other | 16,169 | 15,775 | |||||
Total other current liabilities | $ | 111,096 | $ | 98,645 |
|
Asset (Liability) | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
September 30, 2014: | |||||||||||||||
Derivative instruments: | |||||||||||||||
Assets: | |||||||||||||||
Commodity contracts | $ | — | $ | 3,065 | $ | — | $ | 3,065 | |||||||
Liabilities: | |||||||||||||||
Commodity contracts | $ | — | $ | (9,472 | ) | $ | — | $ | (9,472 | ) | |||||
September 30, 2013 (a): | |||||||||||||||
Derivative instruments: | |||||||||||||||
Assets: | |||||||||||||||
Commodity contracts | $ | — | $ | 19,621 | $ | — | $ | 19,621 | |||||||
Liabilities: | |||||||||||||||
Commodity contracts | $ | — | $ | (1,504 | ) | $ | — | $ | (1,504 | ) |
(a) | Certain immaterial amounts have been revised to correct the classification of derivatives. |
|
2014 | 2013 (a) | ||||||
Derivative assets: | |||||||
Derivatives designated as hedging instruments: | |||||||
Propane contracts | $ | 2,278 | $ | 16,350 | |||
Derivatives not designated as hedging instruments: | |||||||
Propane contracts | 787 | 3,271 | |||||
Total derivative assets - gross | 3,065 | 19,621 | |||||
Gross amounts offset in the balance sheet | (2,793 | ) | (1,369 | ) | |||
Total derivative assets - net | $ | 272 | $ | 18,252 | |||
Derivative liabilities: | |||||||
Derivatives designated as hedging instruments: | |||||||
Propane contracts | $ | (217 | ) | $ | (1,504 | ) | |
Derivatives not designated as hedging instruments: | |||||||
Propane contracts | (9,255 | ) | — | ||||
Total derivative liabilities - gross | (9,472 | ) | (1,504 | ) | |||
Gross amounts offset in the balance sheet | 2,793 | 1,369 | |||||
Total derivative liabilities - net | $ | (6,679 | ) | $ | (135 | ) |
(a) | Certain immaterial amounts have been revised to correct the classification of derivatives. |
Gain (Loss) Recognized in AOCI and Noncontrolling Interest | Gain (Loss) Reclassified from AOCI and Noncontrolling Interest into Income | Location of Gain (Loss) Reclassified from AOCI and Noncontrolling Interest into Income | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||
Cash Flow Hedges: | ||||||||||||||||||||||||||
Propane contracts | $ | 44,203 | $ | 6,647 | $ | (86,573 | ) | $ | 56,517 | $ | (52,503 | ) | $ | (47,569 | ) | Cost of sales-propane | ||||||||||
Gain (Loss) | Location of Gain (Loss) Recognized in Income | |||||||||||||||||||||||||
Recognized in Income | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||||||||||
Propane contracts | $ | (4,863 | ) | $ | 1,848 | $ | (14,883 | ) | Cost of sales-propane |
|
2014 | 2013 | 2012 | |||||||||
Gains on sales of fixed assets | $ | 6,524 | $ | 4,115 | $ | 3,169 | |||||
Finance charges | 17,459 | 21,390 | 18,841 | ||||||||
Other | 3,467 | 6,998 | 4,511 | ||||||||
Total other income, net | $ | 27,450 | $ | 32,503 | $ | 26,521 |
|
December 31, | March 31, | June 30, | September 30, | ||||||||||||||||||||||||||||
2013 | 2012 | 2014 | 2013 (a) | 2014 | 2013 (a) | 2014 | 2013 | ||||||||||||||||||||||||
Revenues | $ | 1,045,826 | $ | 876,647 | $ | 1,493,623 | $ | 1,176,207 | $ | 613,237 | $ | 581,719 | $ | 560,249 | $ | 531,970 | |||||||||||||||
Operating income (loss) | $ | 179,693 | $ | 139,866 | $ | 284,922 | $ | 257,505 | $ | 4,426 | $ | 6,639 | $ | (6,408 | ) | $ | (11,816 | ) | |||||||||||||
Net income (loss) | $ | 136,672 | $ | 98,043 | $ | 242,950 | $ | 215,781 | $ | (37,749 | ) | $ | (34,549 | ) | $ | (47,432 | ) | $ | (54,184 | ) | |||||||||||
Net income (loss) attributable to AmeriGas Partners, L.P. | $ | 134,898 | $ | 96,665 | $ | 240,103 | $ | 213,208 | $ | (37,761 | ) | $ | (34,595 | ) | $ | (47,347 | ) | $ | (54,056 | ) | |||||||||||
Income (loss) per limited partner unit (b): | |||||||||||||||||||||||||||||||
Basic | $ | 1.14 | $ | 0.93 | $ | 1.71 | $ | 1.56 | $ | (0.47 | ) | $ | (0.43 | ) | $ | (0.58 | ) | $ | (0.63 | ) | |||||||||||
Diluted | $ | 1.14 | $ | 0.93 | $ | 1.71 | $ | 1.56 | $ | (0.47 | ) | $ | (0.43 | ) | $ | (0.58 | ) | $ | (0.63 | ) |
(a) | The Partnership recorded the cumulative effect of an error in accounting for certain customer credits as of January 1, 2013, which decreased revenues and operating income by $7,038, and decreased net income attributable to AmeriGas Partners, L.P. by $6,967, for the three months ended March 31, 2013. The correction of the error in accounting for customer credits increased propane revenues and operating income by $3,600, and decreased net loss attributable to AmeriGas Partners, L.P. by $3,564, for the three months ended June 30, 2013 (see Note 2). |
(b) | Theoretical distributions of net income (loss) attributable to AmeriGas Partners, L.P. in accordance with accounting guidance regarding the application of the two-class method for determining earnings per share (see Note 2) resulted in a different allocation of net income attributable to AmeriGas Partners, L.P. to the General Partner and the limited partners in the computation of income per limited partner unit which had the effect of decreasing quarterly earnings per limited partner unit for the quarters ended December 31 and March 31 as follows: |
December 31, | March 31, | |||||||||||||||
Quarter ended: | 2013 | 2012 | 2014 | 2013 | ||||||||||||
Decrease in income per limited partner unit | $ | (0.24 | ) | $ | (0.06 | ) | $ | (0.79 | ) | $ | (0.66 | ) |
|
September 30, | |||||||
2014 | 2013 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash | $ | 4,746 | $ | 262 | |||
Accounts receivable — related party | 3,147 | 6,479 | |||||
Prepaids and other current assets | 1,155 | 1,155 | |||||
Total current assets | 9,048 | 7,896 | |||||
Investment in AmeriGas Propane, L.P. | 3,588,863 | 3,648,909 | |||||
Other assets | 23,610 | 27,300 | |||||
Total assets | $ | 3,621,521 | $ | 3,684,105 | |||
LIABILITIES AND PARTNERS’ CAPITAL | |||||||
Current liabilities: | |||||||
Accounts payable and other liabilities | $ | 500 | $ | 495 | |||
Accrued interest | 47,662 | 47,662 | |||||
Total current liabilities | 48,162 | 48,157 | |||||
Long-term debt | 2,250,845 | 2,250,845 | |||||
Commitments and contingencies | |||||||
Partners’ capital: | |||||||
Common unitholders | 1,299,260 | 1,354,187 | |||||
General partner | 20,460 | 15,930 | |||||
Accumulated other comprehensive income | 2,794 | 14,986 | |||||
Total partners’ capital | 1,322,514 | 1,385,103 | |||||
Total liabilities and partners’ capital | $ | 3,621,521 | $ | 3,684,105 |
Year Ended September 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Operating (expenses) income, net | $ | (258 | ) | $ | (289 | ) | $ | (3,568 | ) | ||
Loss on extinguishments of debt | — | — | (13,349 | ) | |||||||
Interest expense | (155,510 | ) | (154,593 | ) | (133,372 | ) | |||||
Loss before income taxes | (155,768 | ) | (154,882 | ) | (150,289 | ) | |||||
Income tax expense | 6 | 1 | 3 | ||||||||
Loss before equity in income of AmeriGas Propane, L.P. | (155,774 | ) | (154,883 | ) | (150,292 | ) | |||||
Equity in income of AmeriGas Propane, L.P. | 445,667 | 376,105 | 161,317 | ||||||||
Net income | $ | 289,893 | $ | 221,222 | $ | 11,025 | |||||
General partner’s interest in net income | $ | 26,749 | $ | 21,498 | $ | 13,119 | |||||
Limited partners’ interest in net income | $ | 263,144 | $ | 199,724 | $ | (2,094 | ) | ||||
Income (loss) per limited partner unit — basic and diluted | $ | 2.82 | $ | 2.14 | $ | (0.11 | ) | ||||
Average limited partner units outstanding — basic (thousands) | 92,876 | 92,832 | 81,433 | ||||||||
Average limited partner units outstanding — diluted (thousands) | 92,946 | 92,910 | 81,433 |
Year Ended September 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES (a) | $ | 348,704 | $ | 325,320 | $ | 170,598 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Acquisitions of businesses, net of cash acquired | — | — | (1,411,451 | ) | |||||||
Contributions to AmeriGas Propane, L.P. | — | — | (60,748 | ) | |||||||
Net cash used by investing activities | — | — | (1,472,199 | ) | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Distributions | (346,744 | ) | (327,000 | ) | (271,839 | ) | |||||
Issuance of long-term debt | — | — | 1,524,174 | ||||||||
Repayments of long-term debt | — | — | (232,844 | ) | |||||||
Proceeds from issuance of Common Units in public unit offering | — | — | 276,562 | ||||||||
Proceeds associated with equity based compensation plans, net of tax withheld | 2,499 | 1,221 | 951 | ||||||||
Capital contribution from General Partner | 25 | 13 | 2,824 | ||||||||
Net cash (used) provided by financing activities | (344,220 | ) | (325,766 | ) | 1,299,828 | ||||||
Increase (decrease) in cash and cash equivalents | $ | 4,484 | $ | (446 | ) | $ | (1,773 | ) | |||
CASH AND CASH EQUIVALENTS: | |||||||||||
End of year | $ | 4,746 | $ | 262 | $ | 708 | |||||
Beginning of year | 262 | 708 | 2,481 | ||||||||
Increase (decrease) | $ | 4,484 | $ | (446 | ) | $ | (1,773 | ) |
(a) | Includes cash distributions received from AmeriGas Propane, L.P. of $498,204, $478,458 and $334,527 for the years ended September 30, 2014, 2013 and 2012, respectively. |
|
Balance at beginning of year | Charged (credited) to costs and expenses | Other | Balance at end of year | |||||||||||||
Year Ended September 30, 2014 | ||||||||||||||||
Reserves deducted from assets in the consolidated balance sheet: | ||||||||||||||||
Allowance for doubtful accounts | $ | 18,552 | $ | 26,403 | $ | (27,274 | ) | (1) | $ | 17,681 | ||||||
Year Ended September 30, 2013 | ||||||||||||||||
Reserves deducted from assets in the consolidated balance sheet: | ||||||||||||||||
Allowance for doubtful accounts | $ | 17,217 | $ | 16,477 | $ | (15,142 | ) | (1) | $ | 18,552 |
Year Ended September 30, 2012 | |||||||||||||||||
Reserves deducted from assets in the consolidated balance sheet: | |||||||||||||||||
Allowance for doubtful accounts | $ | 17,181 | $ | 15,088 | $ | (15,052 | ) | (1) | $ | 17,217 |
(1) | Uncollectible accounts written off, net of recoveries. |
Balance at beginning of year | Charged (credited) to costs and expenses | Other | Balance at end of year | |||||||||||||
Year Ended September 30, 2014 | ||||||||||||||||
Reserves deducted from assets in the consolidated balance sheet: | ||||||||||||||||
Allowance for doubtful accounts | $ | 18,552 | $ | 26,403 | $ | (27,274 | ) | (1) | $ | 17,681 | ||||||
Year Ended September 30, 2013 | ||||||||||||||||
Reserves deducted from assets in the consolidated balance sheet: | ||||||||||||||||
Allowance for doubtful accounts | $ | 17,217 | $ | 16,477 | $ | (15,142 | ) | (1) | $ | 18,552 |
Year Ended September 30, 2012 | |||||||||||||||||
Reserves deducted from assets in the consolidated balance sheet: | |||||||||||||||||
Allowance for doubtful accounts | $ | 17,181 | $ | 15,088 | $ | (15,052 | ) | (1) | $ | 17,217 |
(1) | Uncollectible accounts written off, net of recoveries. |
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||
|