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Supplemental Condensed Combining Financial Information
12 Months Ended
Dec. 31, 2011
Supplemental Condensed Combining Financial Information Of Parent Company Only Disclosure [Abstract]  
SUPPLEMENTAL CONDENSED COMBINING FINANCIAL INFORMATION

12. SUPPLEMENTAL CONDENSED COMBINING FINANCIAL INFORMATION

Condensed combining financial information as of December 31, 2011 and 2010 and for the three year period ended December 31, 2011 has been derived from our books and records and is provided below to illustrate, for informational purposes only, the net contribution to our financial results that are realized from the leasing operations of properties subject to the Master Lease with Marketing (which represents approximately 69% of our properties as of December 31, 2011) and from properties leased to other tenants. The condensed combining financial information set forth below presents our results of operations, net assets and cash flows, related to Marketing, our other tenants and our corporate functions necessary to arrive at the information for us on a combined basis. The assets, liabilities, lease agreements and other leasing operations attributable to the Master Lease and other tenant leases are not segregated in legal entities. However, we generally maintain our books and records in site specific detail and have classified the operating results which are clearly applicable to each owned or leased property as attributable to Marketing or to our other tenants or to non-operating corporate functions. The condensed combining financial information has been prepared by us using certain assumptions, judgments and allocations. Each of our properties were classified as attributable to Marketing, other tenants or corporate for all periods presented based on the property’s use as of December 31, 2011 or the property’s use immediately prior to its disposition or third-party lease expiration. Environmental remediation expenses have been attributed to Marketing or other tenants on a site specific basis and environmental related litigation expenses and professional fees have been attributed to Marketing or other tenants based on the pro rata share of specifically identifiable environmental expenses for the period from January 1, 2009 through December 31, 2011.

The heading “Corporate” in the statements below includes assets, liabilities, income and expenses attributed to general and administrative functions, financing activities and parent or subsidiary level income taxes, capital taxes or franchise taxes which were not incurred on behalf of our leasing operations and are not reasonably allocable to Marketing or other tenants. With respect to general and administrative expenses, we have attributed those expenses clearly applicable to Marketing and other tenants. We considered various methods of allocating to Marketing and other tenants amounts included under the heading “Corporate” and determined that none of the methods resulted in a reasonable allocation of such amounts or an allocation of such amounts that more clearly summarizes the net contribution to our financial results realized from the leasing operations of properties leased to Marketing and of properties leased to other tenants. Moreover, we determined that each of the allocation methods we considered resulted in a presentation of these amounts that would make it more difficult to understand the clearly identifiable results from our leasing operations attributable to Marketing and other tenants. We believe that the segregated presentation of assets, liabilities, income and expenses attributed to general and administrative functions, financing activities and parent or subsidiary level income taxes, capital taxes or franchise taxes provides the most meaningful presentation of these amounts since changes in these amounts are not fully correlated to changes in our leasing activities.

While we believe these assumptions, judgments and allocations are reasonable, the condensed combining financial information is not intended to reflect what the net results would have been had assets, liabilities, lease agreements and other operations attributable to Marketing or our other tenants had been conducted through stand-alone entities during any of the periods presented.

The condensed combining statement of operations of Getty Realty Corp. for the year ended December 31, 2011 is as follows (in thousands):

 

                                 
    Getty
Petroleum
Marketing
    Other
Tenants
    Corporate     Consolidated  

Revenues from rental properties

  $ 62,118     $ 48,100     $ —       $ 110,218  

Interest on notes and mortgages receivable

    —         2,489       169       2,658  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

    62,118       50,589       169       112,876  
   

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses:

                               

Rental property expenses

    (8,777     (7,305     (641     (16,723

Impairment charges

    (18,676     (1,300     —         (19,976

Environmental expenses, net

    (5,706     (122     —         (5,828

General and administrative expenses

    (10,419     (1,783     (11,383     (23,585

Allowance for deferred rent receivable

    (19,758     —         —         (19,758

Depreciation and amortization expense

    (5,010     (5,231     (46     (10,287
   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

    (68,346     (15,741     (12,070     (96,157
   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

    (6,228     34,848       (11,901     16,719  

Other income, net

    641       (621     (4     16  

Interest expense

    —         —         (5,125     (5,125
   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings (loss) from continuing operations

    (5,587     34,227       (17,030     11,610  

Discontinued operations:

                               

Loss from operating activities

    81       (183     —         (102

Gains on dispositions of real estate

    —         948       —         948  
   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings from discontinued operations

    81       765       —         846  
   

 

 

   

 

 

   

 

 

   

 

 

 

Net earnings (loss)

  $ (5,506   $ 34,992     $ (17,030   $ 12,456  
   

 

 

   

 

 

   

 

 

   

 

 

 

 

The condensed combining statement of operations of Getty Realty Corp. for the year ended December 31, 2010 is as follows (in thousands):

 

                                 
    Getty
Petroleum
Marketing
    Other
Tenants
    Corporate     Consolidated  

Revenues from rental properties

  $ 58,578     $ 29,481     $ —       $ 88,059  

Interest on notes and mortgages receivable

    —         —         133       133  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

    58,578       29,481       133       88,192  
   

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses:

                               

Rental property expenses

    (7,012     (2,580     (478     (10,070

Environmental expenses, net

    (5,302     (127     —         (5,429

General and administrative expenses

    (146     (135     (7,897     (8,178

Depreciation and amortization expense

    (4,201     (5,412     (37     (9,650
   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

    (16,661     (8,254     (8,412     (33,327
   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

    41,917       21,227       (8,279     54,865  

Other income, net

    (172     172       156       156  

Interest expense

    —         —         (5,050     (5,050
   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings (loss) from continuing operations

    41,745       21,399       (13,173     49,971  

Discontinued operations:

                               

Loss from operating activities

    (82     106       —         24  

Gains on dispositions of real estate

    1,857       (152     —         1,705  
   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings from discontinued operations

    1,775       (46     —         1,729  
   

 

 

   

 

 

   

 

 

   

 

 

 

Net earnings (loss)

  $ 43,520     $ 21,353     $ (13,173   $ 51,700  
   

 

 

   

 

 

   

 

 

   

 

 

 

The condensed combining statement of operations of Getty Realty Corp. for the year ended December 31, 2009 is as follows (in thousands):

 

                                 
    Getty
Petroleum
Marketing
    Other
Tenants
    Corporate     Consolidated  

Revenues from rental properties

  $ 60,607     $ 23,436     $ —       $ 84,043  

Interest on notes and mortgages receivable

    —         —         127       127  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

    60,607       23,436       127       84,170  
   

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses:

                               

Rental property expenses

    (6,925     (3,168     (560     (10,653

Impairment Charges

    (1,135     —         —         (1,135

Environmental expenses, net

    (8,544     (201     —         (8,745

General and administrative expenses

    (280     (231     (6,338     (6,849

Depreciation and amortization expense

    (5,523     (5,084     (71     (10,678
   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

    (22,407     (8,684     (6,969     (38,060
   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

    38,200       14,752       (6,842     46,110  

Other income (expense), net

    153       (50     317       420  

Interest expense

    —         —         (5,091     (5,091
   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings (loss) from continuing operations

    38,353       14,702       (11,616     41,439  

Discontinued operations:

                               

Earnings (loss) from operating activities

    (47     293       —         246  

Gains on dispositions of real estate

    4,591       773       —         5,364  
   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings from discontinued operations

    4,544       1,066       —         5,610  
   

 

 

   

 

 

   

 

 

   

 

 

 

Net earnings (loss)

  $ 42,897     $ 15,768     $ (11,616   $ 47,049  
   

 

 

   

 

 

   

 

 

   

 

 

 

 

The condensed combining balance sheet of Getty Realty Corp. as of December 31, 2011 is as follows (in thousands):

 

                                 
    Getty
Petroleum
Marketing
    Other
Tenants
    Corporate     Consolidated  

ASSETS:

                               

Real Estate:

                               

Land

  $ 131,076     $ 214,397     $ —       $ 345,473  

Buildings and improvements

    170,553       99,479       349       270,381  
   

 

 

   

 

 

   

 

 

   

 

 

 
      301,629       313,876       349       615,854  

Less — accumulated depreciation and amortization

    (107,480     (29,446     (191     (137,117
   

 

 

   

 

 

   

 

 

   

 

 

 

Real estate, net

    194,149       284,430       158       478,737  

Net investment in direct financing leases

    —         92,632       —         92,632  

Deferred rent receivable, net

    —         8,080       —         8,080  

Cash and cash equivalents

    —         —         7,698       7,698  

Other receivables, net

    —         43       1,046       1,089  

Notes, mortgages and accounts receivable, net

    5,743       28,262       2,078       36,083  

Prepaid expenses and other assets

    —         7,568       3,202       10,770  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

    199,892       421,015       14,182       635,089  
   

 

 

   

 

 

   

 

 

   

 

 

 

LIABILITIES:

                               

Borrowings under credit line

    —         —         147,700       147,700  

Term loan

    —         —         22,810       22,810  

Environmental remediation costs

    57,368       332       —         57,700  

Dividends payable

    —         —         —         —    

Accounts payable and accrued liabilities

    4,002       19,564       11,144       34,710  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

    61,370       19,896       181,654       262,920  
   

 

 

   

 

 

   

 

 

   

 

 

 

Net assets (liabilities)

  $ 138,522     $ 401,119     $ (167,472   $ 372,169  
   

 

 

   

 

 

   

 

 

   

 

 

 

The condensed combining balance sheet of Getty Realty Corp. as of December 31, 2010 is as follows (in thousands):

 

                                 
    Getty
Petroleum
Marketing
    Other
Tenants
    Corporate     Consolidated  

ASSETS:

                               

Real Estate:

                               

Land

  $ 137,151     $ 116,262     $ —       $ 253,413  

Buildings and improvements

    152,570       98,233       371       251,174  
   

 

 

   

 

 

   

 

 

   

 

 

 
      289,721       214,495       371       504,587  

Less — accumulated depreciation and amortization

    (118,784     (25,241     (192     (144,217
   

 

 

   

 

 

   

 

 

   

 

 

 

Real estate, net

    170,937       189,254       179       360,370  

Net investment in direct financing leases

    —         20,540       —         20,540  

Deferred rent receivable, net

    21,221       6,164       —         27,385  

Cash and cash equivalents

    —         —         6,122       6,122  

Other receivables, net

    —         271       296       567  

Mortgages and accounts receivable, net

    13       238       1,274       1,525  

Prepaid expenses and other assets

    —         3,444       3,225       6,669  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

    192,171       219,911       11,096       423,178  
   

 

 

   

 

 

   

 

 

   

 

 

 

LIABILITIES:

                               

Borrowings under credit line

    —         —         41,300       41,300  

Term loan

    —         —         23,590       23,590  

Environmental remediation costs

    9,967       941       —         10,908  

Dividends payable

    —         —         14,432       14,432  

Accounts payable and accrued liabilities

    962       6,953       10,098       18,013  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

    10,929       7,894       89,420       108,243  
   

 

 

   

 

 

   

 

 

   

 

 

 

Net assets (liabilities)

  $ 181,242     $ 212,017     $ (78,324   $ 314,935  
   

 

 

   

 

 

   

 

 

   

 

 

 

 

The condensed combining statement of cash flows of Getty Realty Corp. for the year ended December 31, 2011 is as follows (in thousands):

 

                                 
    Getty
Petroleum
Marketing
    Other
Tenants
    Corporate     Consolidated  

CASH FLOWS FROM OPERATING ACTIVITIES:

                               

Net earnings (loss)

  $ (5,506   $ 34,992     $ (17,030   $ 12,456  

Adjustments to reconcile net earnings (loss) to net cash flow provided by operating activities:

                               

Depreciation and amortization expense

    5,024       5,266       46       10,336  

Impairment charges

    18,676       1,550       —         20,226  

Gains on dispositions of real estate

    (641     (327     —         (968

Deferred rent receivable, net of allowance

    1,463       (1,916     —         (453

Allowance for deferred rent and accounts receivable

    28,879       —         —         28,879  

Amortization of above-market and below-market leases

    —         (685     —         (685

Accretion expense

    879       20       —         899  

Stock-based employee compensation expense

    —         —         643       643  

Changes in assets and liabilities:

                               

Other receivables, net

    —         228       —         228  

Net investment in direct financing leases

    —         505       —         505  

Accounts receivable, net

    (14,851     (39     —         (14,890

Prepaid expenses and other assets

    —         (68     198       130  

Environmental remediation costs

    (1,304     (677     —         (1,981

Accounts payable and accrued liabilities

    3,040       662       2,203       5,905  
   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flow provided by (used in) operating activities

    35,659       39,511       (13,940     61,230  
   

 

 

   

 

 

   

 

 

   

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

                               

Property acquisitions and capital expenditures

    —         (167,471     (24     (167,495

Proceeds from dispositions of real estate

    1,604       1,781       —         3,385  

Decrease in cash held for property acquisitions

    —         —         (750     (750

Issuance of notes and mortgages receivable

    —         (30,400     (1,068     (31,468

Collection of notes and mortgages receivable

    —         2,415       264       2,679  
   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flow provided by (used in) investing activities

    1,604       (193,675     (1,578     (193,649
   

 

 

   

 

 

   

 

 

   

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

                               

Borrowings under credit agreement

    —         —         247,253       247,253  

Repayments under credit agreement

                    (140,853     (140,853

Repayments under term loan agreement

    —         —         (780     (780

Cash dividends paid

    —         —         (63,436     (63,436

Payments of loan origination costs

                    (175     (175

Net proceeds from issuance of common stock

    —         —         91,986       91,986  

Cash consolidation- Corporate

    (37,263     153,882       (116,619     —    
   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flow (used in) provided by financing activities

    (37,263     153.882       17,376       133,995  
   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase in cash and cash equivalents

    —         —         1,576       1,576  

Cash and cash equivalents at beginning of year

    —         —         6,122       6,122  
   

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of year

  $ —       $ —       $ 7,698     $ 7,698  
   

 

 

   

 

 

   

 

 

   

 

 

 

 

The condensed combining statement of cash flows of Getty Realty Corp. for the year ended December 31, 2010 is as follows (in thousands):

 

                                 
    Getty
Petroleum
Marketing
    Other
Tenants
    Corporate     Consolidated  

CASH FLOWS FROM OPERATING ACTIVITIES:

                               

Net earnings (loss)

  $ 43,520     $ 21,353     $ (13,173   $ 51,700  

Adjustments to reconcile net earnings (loss) to net cash flow provided by operating activities:

                               

Depreciation and amortization expense

    4,229       5,472       37       9,738  

Impairment charges

    —         —         —         —    

Gains on dispositions of real estate

    (1,685     (20     —         (1,705

Deferred rent receivable

    1,580       (1,484     —         96  

Allowance for accounts receivable

    —         229       —         229  

Amortization of above-market and below-market leases

    —         (1,260     —         (1,260

Accretion expense

    758       17       —         775  

Stock-based employee compensation expense

    —         —         480       480  

Changes in assets and liabilities:

                               

Other receivables, net

    —         408       —         408  

Net investment in direct financing leases

    —         (323     —         (323

Accounts receivable, net

    (15     (174     —         (189

Prepaid expenses and other assets

    —         59       (542     (483

Environmental remediation costs

    (3,062     550       —         (2,512

Accounts payable and accrued liabilities

    42       (273     200       (31
   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flow provided by (used in) operating activities

    45,367       24,554       (12,998     56,923  
   

 

 

   

 

 

   

 

 

   

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

                               

Property acquisitions and capital expenditures

    —         (4,629     (96     (4,725

Proceeds from dispositions of real estate

    2,623       235       —         2,858  

Decrease in cash held for property acquisitions

    —         —         2,665       2,665  

Collection of mortgages receivable, net

    —         —         158       158  
   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flow provided by (used in) investing activities

    2,623       (4,394     2,727       956  
   

 

 

   

 

 

   

 

 

   

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

                               

Borrowing under credit agreement

                    163,500       163,500  

Repayments under credit agreement

    —         —         (273,400     (273,400

Repayments under term loan agreement

    —         —         (780     (780

Cash dividends paid

    —         —         (52,332     (52,332

Net proceeds from issuance of common stock

    —         —         108,205       108,205  

Cash consolidation- Corporate

    (47,990     (20,160     68,150       —    
   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flow (used in) provided by financing activities

    (47,990     (20,160     13,343       (54,807
   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase in cash and cash equivalents

    —         —         3,072       3,072  

Cash and cash equivalents at beginning of year

    —         —         3,050       3,050  
   

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of year

  $ —       $ —       $ 6,122     $ 6,122  
   

 

 

   

 

 

   

 

 

   

 

 

 

 

The condensed combining statement of cash flows of Getty Realty Corp. for the year ended December 31, 2009 is as follows (in thousands):

 

                                 
    Getty
Petroleum
Marketing
    Other
Tenants
    Corporate     Consolidated  

CASH FLOWS FROM OPERATING ACTIVITIES:

                               

Net earnings (loss)

  $ 42,897     $ 15,768     $ (11,616   $ 47,049  

Adjustments to reconcile net earnings (loss) to net cash flow provided by operating activities:

                               

Depreciation and amortization expense

    5,605       5,351       71       11,027  

Impairment charges

    1,135       —         —         1,135  

Gains on dispositions of real estate

    (4,744     (723     —         (5,467

Deferred rent receivable

    99       (862     —         (763

Allowance for accounts receivable

    —         120       —         120  

Amortization of above-market and below-market leases

    —         (1,217     —         (1,217

Accretion expense

    864       20       —         884  

Stock-based employee compensation expense

    —         —         390       390  

Changes in assets and liabilities:

                               

Other receivables, net

    —         (669     —         (669

Net investment in direct financing leases

    —         (85     —         (85

Accounts receivable, net

    9       (184     —         (175

Prepaid expenses and other assets

    —         (47     386       339  

Environmental remediation costs

    (1,734     58       —         (1,676

Accounts payable and accrued liabilities

    (232     305       1,567       1,640  
   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flow provided by (used in) operating activities

    43,899       17,835       (9,202     52,532  
   

 

 

   

 

 

   

 

 

   

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

                               

Property acquisitions and capital expenditures

    (483     (54,785     (49     (55,317

Proceeds from dispositions of real estate

    5,701       1,238       —         6,939  

Increase in cash held for property acquisitions

    —         —         (1,623     (1,623

Issuance of notes and mortgages receivable

    —         —         (300     (300

Collection of mortgages receivable

    —         —         155       155  
   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flow provided by (used in) investing activities

    5,218       (53,547     (1,817     (50,146
   

 

 

   

 

 

   

 

 

   

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

                               

Borrowings under credit agreement

    —         —         79,000       79,000  

Repayments under credit agreement

    —         —         (58,050     (58,050

Borrowings under term loan agreement

    —         —         24,500       24,500  

Repayments under credit agreement

    —         —         (130     (130

Cash dividends paid

    —         —         (46,834     (46,834

Cash consolidation — Corporate

    (49,117     35,712       13,405       —    
   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flow (used in) provided by financing activities

    (49,117     35,712       11,891       (1,514
   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase in cash and cash equivalents

    —         —         872       872  

Cash and cash equivalents at beginning of year

    —         —         2,178       2,178  
   

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of year

  $ —       $ —       $ 3,050     $ 3,050