Description of Debt Securities
— On September 30, 2010, we issued $250.0 million of our 3.25% Senior
Notes due October 1, 2015. We received net proceeds of $247.7 million, net of underwriters’ fees, related
expense and unamortized discounts of $1.5 million, $0.6 million and $0.2 million, respectively, which we used
to repay funds borrowed under the revolver portion of our Credit Facility. Interest on the notes will be paid
semi-annually on April 1 and October 1 of each year. The notes will mature on October 1, 2015, unless
redeemed prior to maturity. The underwriters’ fees and related expense are deferred in other long-term assets in
our consolidated balance sheets and will be amortized over the term of the notes.
The notes are senior unsecured obligations, ranking equally in right of payment with our existing
unsecured indebtedness, including indebtedness under our Credit Facility. We are not required to make
mandatory redemption or sinking fund payments with respect to these notes. The securities are redeemable at a
premium at our option.
Total Contractual Cash Obligations and Off-Balance Sheet Obligations
— A summary of our total
contractual cash obligations as of December 31, 2011, is as follows:
Payments Due by Period
Total
2012 2013-2014 2015-2016
2017 and
Thereafter
(Millions)
Long-term debt(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 805.2 $ 23.9 $ 26.1 $755.2 $ —
Operating lease obligations(b) . . . . . . . . . . . . . . . . . . . . . .
30.4 12.5 13.6
3.3
1.0
Purchase obligations(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . 471.3 295.9 82.5
72.5
20.4
Other long-term liabilities(d) . . . . . . . . . . . . . . . . . . . . . .
12.6 —
0.6
0.2
11.8
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,319.5 $332.3 $122.8 $831.2 $33.2
(a) Includes interest payments on debt that has been swapped to a fixed-rate obligation and on debt securities
that have been issued. These interest payments are $23.9 million, $26.1 million and $8.2 million for 2012,
2013-2014 and 2015-2016, respectively. Interest payments on debt that has not been swapped to a fixed-
rate obligation are not included as these payments are based on floating interest rates and we cannot
determine with accuracy the periodic repayment dates or the amounts of the interest payments.
(b) Our operating lease obligations are contractual obligations, and primarily consist of our leased marine
propane terminal and railcar leases, both of which provide supply and storage infrastructure for our
Wholesale Propane Logistics business. Operating lease obligations also include firm transportation
arrangements and natural gas storage for our Pelico system. The firm transportation arrangements supply
off-system natural gas to Pelico and the natural gas storage arrangement enables us to maximize the value
between the current price of natural gas and the futures market price of natural gas.
(c) Our purchase obligations are contractual obligations and include purchase orders for capital expenditures,
various non-cancelable commitments to purchase physical quantities of propane supply for our Wholesale
Propane Logistics business and other items. For contracts where the price paid is based on an index, the
amount is based on the forward market prices as of December 31, 2011. Purchase obligations exclude
accounts payable, accrued interest payable and other current liabilities recognized in the consolidated
balance sheets. Purchase obligations also exclude current and long-term unrealized losses on derivative
instruments included in the consolidated balance sheet, which represent the current fair value of various
derivative contracts and do not represent future cash purchase obligations. These contracts may be settled
financially at the difference between the future market price and the contractual price and may result in
cash payments or cash receipts in the future, but generally do not require delivery of physical quantities of
the underlying commodity. In addition, many of our gas purchase contracts include short and long-term
commitments to purchase produced gas at market prices. These contracts, which have no minimum
quantities, are excluded from the table.
(d) Other long-term liabilities include $11.4 million of asset retirement obligations and $1.2 million of
environmental reserves recognized in the consolidated balance sheet at December 31, 2011.
We have no items that are classified as off balance sheet obligations.
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