Subsequent Events

6 Months Ended

Jun. 30, 2011

Subsequent Events

Subsequent Events

14. Subsequent Events

Recognizable events

No recognizable events occurred during the period.

Non-recognizable events

In July 2011, our general partner's board of directors declared a quarterly distribution of $0.785 per unit to be paid on August 12, 2011 to unitholders of record at the close of business on August 4, 2011. The total cash distributions to be paid are $88.5 million (see Note 12—Distributions for details).

In July 2011, Lonny E. Townsend, Senior Vice President, General Counsel, Compliance and Ethics Officer and Assistant Secretary of Magellan GP, LLC, our general partner, informed the Board of Directors of our general partner (the "Board of Directors") that he will retire from his positions effective January 2, 2012. The Board of Directors then elected Douglas J. May to succeed Mr. Townsend in these same positions. Upon Mr. Townsend's retirement, Mr. May will become Senior Vice President, General Counsel, Compliance and Ethics Officer and Assistant Secretary of our general partner.

As part of the annual review of various executive compensation and benefit plans by the Compensation Committee of the Board of Directors, and in a continuing effort to remain competitive with peer companies and retain our executive officers, in July 2011, the Board of Directors adopted the Magellan Midstream Holdings GP, LLC Executive Severance Pay Plan (the "Plan"). Under the Plan, severance benefits will be paid to our executive officers based on years of service for the following termination events:

• Position Elimination — Benefits payable to executive officers will be two weeks base salary for each completed year of service. Base salary excludes any incentive compensation. This benefit is consistent with the benefit all employees receive under our existing severance pay plan.

• Change-in-Control — As defined in the Plan, to receive severance pay benefits due to a change-in-control, the executive officer must resign voluntarily for good reason or be terminated involuntarily for other than performance reasons within two years following a change-in-control. Benefits payable to the chief executive officer are three times annual base salary plus current year's target annual incentive plan payout. Benefits payable to other executive officers are two times annual base salary plus current year's target annual incentive plan payout.

In July 2011, we terminated and settled the $100.0 million of swaps and received $6.1 million, which was recorded as an adjustment to long-term debt and will be amortized over the remaining life of the 6.40% notes.