Acquisition of Xxxxxx Street Marine LLC. The Partnership retrospectively adjusted the financial results for all periods to include HSM as required for transactions amongst entities under common control. The following table presents the Partnership’s previously reported Consolidated Statement of Income for the years ended December 31, 2015, 2014 and 2013 retrospectively adjusted for the acquisition of HSM: 2015 (In millions, except per unit data) MPLX LP (Previously Reported) HSM MPLX LP (Currently Reported) Revenues and other income: Service revenue $ 130 $ — $ 130 Service revenue - related parties 465 128 593 Rental income 20 — 20 Rental income - related parties 16 85 101 Product sales 36 — 36 Product sales - related parties 1 — 1 Other income 8 1 9 Other income - related parties 27 44 71 Total revenues and other income 703 258 961 Costs and expenses: Cost of revenues (excludes items below) 167 58 225 Purchased product costs 20 — 20 Rental cost of sales 5 — 5 Purchases - related parties 102 64 166 Depreciation and amortization 89 27 116 General and administrative expenses 104 14 118 Other taxes 10 3 13 Total costs and expenses 497 166 663 Income from operations 206 92 298 Interest expense (net of amounts capitalized of $5 million) 35 — 35 Other financial costs 13 — 13 Income before income taxes 158 92 250 Provision for income taxes 1 — 1 Net income 157 92 249 Less: Net income attributable to noncontrolling interests 1 — 1 Net income attributable to Predecessor — 92 92 Net income attributable to MPLX LP 156 — 156 Less: General partner’s interest in net income attributable to MPLX LP 57 — 57 Limited partners’ interest in net income attributable to MPLX LP $ 99 $ — $ 99 2014 (In millions, except per unit data) MPLX LP (Previously Reported) HSM MPLX LP (Currently Reported) Revenues and other income: Service revenue $ 69 $ 1 $ 70 Service revenue - related parties 436 226 662 Rental income - related parties 15 — 15 Other income 5 1 6 Other income - related parties 23 17 40 Total revenues and other income 548 245 793 Costs and expenses: Cost of revenues (excludes items below) 144 84 228 Rental cost of sales 1 — 1 Purchases - related parties 98 55 153 Depreciation and amortization 50 25 75 General and administrative expenses 65 16 81 Other taxes 7 3 10 Total costs and expenses 365 183 548 Income from operations 183 62 245 Other financial costs 1 — 1 Income before income taxes 178 62 240 Provision for income taxes — 1 1 Net income 178 61 239 Less: Net income attributable to noncontrolling interests 57 — ...
Acquisition of Xxxxxx Street Marine LLC. On March 14, 2016, the Partnership entered into a Membership Interests Contribution Agreement (the “Contribution Agreement”) with the General Partner, MPLX Logistics and MPC Investment, each a wholly-owned subsidiary of MPC, related to the acquisition of HSM, MPC’s inland marine business, from MPC. Pursuant to the Contribution Agreement, the transaction was valued at $600 million, consisting of a fixed number of common units and general partner units of 22,534,002 and 459,878, respectively. The general partner units maintain MPC’s two percent general partner interest in the Partnership. The acquisition closed on March 31, 2016 and the fair value of the common units and general partner units issued was $669 million and $14 million, respectively, as recorded on the Consolidated Statements of Equity. MPC agreed to waive distributions in the first quarter of 2016 on MPLX LP common units issued in connection with this transaction. MPC did not receive general partner distributions or incentive distribution rights that would have otherwise accrued on such MPLX LP common units with respect to the first quarter distributions. The value of these waived distributions was $15 million. The inland marine business, comprised of 18 tow boats and 205 barges which transport light products, heavy oils, crude oil, renewable fuels, chemicals and feedstocks in the Midwest and U.S. Gulf Coast regions, accounted for nearly 60 percent of the total volumes MPC shipped by inland marine vessels as of March 31, 2016. The Partnership accounts for HSM as a reporting unit of the L&S segment. The acquisition from MPC was a transfer between entities under common control. As an entity under common control with MPC, the Partnership recorded the assets acquired from MPC on its consolidated Balance Sheets at MPC’s historical basis instead of fair value. Transfers of businesses between entities under common control require prior periods to be retrospectively adjusted to furnish comparative information. Accordingly, the Partnership has retrospectively adjusted the historical financial results for all periods to include HSM.
