Shown below are PAA’s historical annual gross receipts per unit allocated to PAA unitholders which held units for the entire year listed. Individual total gross receipts will be represented on your K-1 statement in whole dollar amounts (versus on a per unit basis) and may vary from those described below based on your date of purchase. Also shown below is an estimate of quarterly gross receipts generated thus far this year.
Historical gross receipts are not an indicator of future gross receipts. It is impractical to forecast gross receipts for future periods since: (1) PAA manages its business for cash flow, not gross receipts; and (2) gross receipts are impacted directly by fluctuating commodity prices, which PAA can neither predict nor control. PAA does not offer tax advice. Investors should seek qualified tax counsel prior to investing in PAA.
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PAA Historical Gross Receipts Per Unit* |
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Year |
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2009 |
$ 290 |
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2008 |
$ 543 |
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2007 |
$ 418 |
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2006 |
$ 502 |
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2005 |
$ 442 |
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2004 |
$ 327 |
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2003 |
$ 236 |
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* Rounded to nearest dollar |
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Valid only for units held for the entire year listed |
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(1) The effect of EITF 04-13 is added to reported revenue to calculate total gross receipts. Emerging Issues Task Force (“EITF”) 04-13 “Accounting for Purchases and Sales of Inventory with the Same Counterparty” states that inventory purchases and sales transactions with the same counterparty should be combined for accounting purposes if they were entered into in contemplation of each other. We adopted EITF 04-13 effective April 1, 2006, which resulted in inventory purchases and sales under buy/sell transactions, which historically would have been recorded as purchases and sales, being treated as inventory exchanges in our consolidated statement of operations. This treatment of buy/sell transactions under EITF 04-13 reduces both revenues and purchases on our income statement but does not impact our financial position, net income, liquidity or the gross receipts allocated to our unitholders for tax purposes.
(2) This per unit estimate is rounded to the nearest dollar and is calculated by dividing the Partnership’s total gross receipts (see note above) by the weighted average number of L.P. units outstanding in the period plus an imputed number of GP units applicable to the GP 2% interest. Estimated quarterly gross receipts per unit may vary from the actual gross receipts allocated to each unitholder on the K-1 statement since gross receipts are allocated based on actual annual gross receipts (not quarterly gross receipts). Therefore, unitholders cannot expect to receive the gross receipts generated during any quarter unless they hold for the entire year. Also, per unit gross receipt allocations on the K-1 statement may vary from estimates due to certain year-end adjustments.
