Derivative Instruments, Hedging Activities and Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2014

Derivative Instruments, Hedging Activities and Fair Value Measurements [Abstract]

Hedging Instruments Under the FASB's Derivative and Hedging Guidance

The prices of natural gas, NGLs, crude oil, refined products and petrochemical products are subject to fluctuations in response to changes in supply and demand, market conditions and a variety of additional factors that are beyond our control.  In order to manage such price risks, we enter into commodity derivative instruments such as physical forward contracts, futures contracts, fixed-for-float swaps, basis swaps and option contracts.  The following table summarizes our portfolio of commodity derivative instruments outstanding at December 31, 2014 (volume measures as noted):

	Volume (1)				Accounting
Derivative Purpose	Current (2)		Long-Term (2)		Treatment
Derivatives designated as hedging instruments:
Natural gas processing:
Forecasted sales of NGLs (MMBbls) (3)		0.9		n/a	Cash flow hedge
Natural gas marketing:
Forecasted sales of natural gas (Bcf)		1.0		n/a	Cash flow hedge
Natural gas storage inventory management activities (Bcf)		8.6		n/a	Fair value hedge
NGL marketing:
Forecasted purchases of NGLs and related hydrocarbon products (MMBbls)		9.9		n/a	Cash flow hedge
Forecasted sales of NGLs and related hydrocarbon products (MMBbls)		10.2		n/a	Cash flow hedge
Refined products marketing:
Forecasted purchases of refined products (MMBbls)		1.2		n/a	Cash flow hedge
Forecasted sales of refined products (MMBbls)		1.8		n/a	Cash flow hedge
Refined products inventory management activities (MMBbls)		0.2		n/a	Fair value hedge
Crude oil marketing:
Forecasted purchases of crude oil (MMBbls)		5.8		n/a	Cash flow hedge
Forecasted sales of crude oil (MMBbls)		6.9		n/a	Cash flow hedge
Derivatives not designated as hedging instruments:
Natural gas risk management activities (Bcf) (4,5)		81.4		11.8	Mark-to-market
Crude oil risk management activities (MMBbls) (5)		4.2		n/a	Mark-to-market

(1) Volume for derivatives designated as hedging instruments reflects the total amount of volumes hedged whereas volume for derivatives not designated as hedging instruments reflects the absolute value of derivative notional volumes.

(2) The maximum term for derivatives designated as cash flow hedges, derivatives designated as fair value hedges and derivatives not designated as hedging instruments is December 2015, October 2015 and March 2018, respectively.

(3) Forecasted sales of NGL volumes under natural gas processing exclude 0.1 MMBbls of additional hedges executed under contracts that have been designated as normal sales agreements.

(4) Current volumes include 35.2 Bcf of physical derivative instruments that are predominantly priced at a marked-based index plus a premium or minus a discount related to location differences.

(5) Reflects the use of derivative instruments to manage risks associated with transportation, processing and storage assets.

Derivative Assets and Liabilities Balance Sheet

The following table provides a balance sheet overview of our derivative assets and liabilities at the dates indicated:

	Asset Derivatives						Liability Derivatives
	December 31, 2014			December 31, 2013			December 31, 2014			December 31, 2013
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments
Interest rate derivatives	Other current assets	$	--	Other current assets	$	20.2	Other current liabilities	$	--	Other current liabilities	$	--
Interest rate derivatives	Other assets		--	Other assets		12.4	Other liabilities		--	Other liabilities		--
Total interest rate derivatives			--			32.6			--			--
Commodity derivatives	Other current assets		217.9	Other current assets		30.9	Other current liabilities		145.3	Other current liabilities		46.5
Commodity derivatives	Other assets		--	Other assets		--	Other liabilities		--	Other liabilities		0.3
Total commodity derivatives			217.9			30.9			145.3			46.8
Total derivatives designated as hedging instruments		$	217.9		$	63.5		$	145.3		$	46.8
Derivatives not designated as hedging instruments
Interest rate derivatives	Other current assets	$	--	Other current assets	$	--	Other current liabilities	$	--	Other current liabilities	$	7.8
Commodity derivatives	Other current assets		8.1	Other current assets		7.6	Other current liabilities		0.7	Other current liabilities		5.5
Commodity derivatives	Other assets		0.6	Other assets		2.8	Other liabilities		1.4	Other liabilities		2.8
Total commodity derivatives			8.7			10.4			2.1			8.3
Total derivatives not designated as hedging instruments		$	8.7		$	10.4		$	2.1		$	16.1

Offsetting Financial Assets

Certain of our commodity derivative instruments are subject to master netting arrangements or similar agreements.  The following tables present our derivative instruments subject to such arrangements at the dates indicated:

	Offsetting of Financial Assets and Derivative Assets
										Gross Amounts Not Offset in the Balance Sheet
	Gross Amounts of Recognized Assets			Gross Amounts Offset in the Balance Sheet			Amounts of Assets Presented in the Balance Sheet			Financial Instruments				Cash Collateral Received			Amounts That Would Have Been Presented On Net Basis
	(i)			(ii)			(iii) = (i) – (ii)			(iv)							(v) = (iii) + (iv)
As of December 31, 2014:
Commodity derivatives		$	226.6		$	--		$	226.6		$	(147.3	)	$	(23.9	)		$	55.4
As of December 31, 2013:
Interest rate derivatives		$	32.6		$	--		$	32.6		$	(2.6	)	$	--			$	30.0
Commodity derivatives			41.3			--			41.3			(41.0	)		--				0.3

Offsetting Financial Liabilities

	Offsetting of Financial Liabilities and Derivative Liabilities
										Gross Amounts Not Offset in the Balance Sheet
	Gross Amounts of Recognized Liabilities			Gross Amounts Offset in the Balance Sheet			Amounts of Liabilities Presented in the Balance Sheet			Financial Instruments				Cash Collateral Paid				Amounts That Would Have Been Presented On Net Basis
	(i)			(ii)			(iii) = (i) – (ii)			(iv)								(v) = (iii) + (iv)
As of December 31, 2014:
Commodity derivatives		$	147.4		$	--		$	147.4		$	(147.3	)		$	--			$	0.1
As of December 31, 2013:
Interest rate derivatives		$	7.8		$	--		$	7.8		$	(2.6	)		$	--			$	5.2
Commodity derivatives			55.1			--			55.1			(41.0	)			(9.3	)			4.8

Derivative Instruments Effects on Statements of Operations

The following tables present the effect of our derivative instruments designated as fair value hedges on our Statements of Consolidated Operations for the periods indicated:

Derivatives in Fair Value Hedging Relationships	Location	Gain (Loss) Recognized in Income on Derivative
		For the Year Ended December 31,
		2014				2013				2012
Interest rate derivatives	Interest expense		$	(26.5	)		$	(13.1	)		$	2.7
Commodity derivatives	Revenue			11.9				(0.1	)			(6.4	)
Total			$	(14.6	)		$	(13.2	)		$	(3.7	)

Derivatives in Fair Value Hedging Relationships	Location	Gain (Loss) Recognized in Income on Hedged Item
		For the Year Ended December 31,
		2014				2013				2012
Interest rate derivatives	Interest expense		$	26.4			$	12.8			$	(2.9	)
Commodity derivatives	Revenue			(11.8	)			(5.7	)			19.1
Total			$	14.6			$	7.1			$	16.2

Derivative Instruments Effects on Statements of Comprehensive Income

The following tables present the effect of our derivative instruments designated as cash flow hedges on our Statements of Consolidated Operations and Statements of Consolidated Comprehensive Income for the periods indicated:

Derivatives in Cash Flow Hedging Relationships	Change in Value Recognized in Other Comprehensive Income (Loss) On Derivative (Effective Portion)
	For the Year Ended December 31,
	2014		2013			2012
Interest rate derivatives	$	--	$	6.6		$	(70.2	)
Commodity derivatives – Revenue (1)		161.3		(47.9	)		31.0
Commodity derivatives – Operating costs and expenses (1)		--		1.0			(13.7	)
Total	$	161.3	$	(40.3	)	$	(52.9	)
(1)   The fair value of these derivative instruments will be reclassified to their respective locations on the Statement of Consolidated Operations upon settlement of the underlying derivative transactions, as appropriate.

Gain/(Loss) Reclassified from Accumulated Other Comprehensive Income/(Loss) to Income (Effective Portion)

Derivatives in Cash Flow Hedging Relationships	Location	Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) to Income (Effective Portion)
		For the Year Ended December 31,
		2014				2013				2012
Interest rate derivatives	Interest expense		$	(32.4	)		$	(29.2	)		$	(16.2	)
Commodity derivatives	Revenue			75.0				(22.4	)			10.1
Commodity derivatives	Operating costs and expenses			1.7				0.3				(24.3	)
Total			$	44.3			$	(51.3	)		$	(30.4	)

Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion)

Derivatives in Cash Flow Hedging Relationships	Location	Gain (Loss) Recognized in Income on Derivative (Ineffective Portion)
		For the Year Ended December 31,
		2014				2013			2012
Commodity derivatives	Revenue		$	(0.3	)		$	0.2		$	--
Commodity derivatives	Operating costs and expenses			--				--			0.3
Total			$	(0.3	)		$	0.2		$	0.3

Gain/(Loss) Recognized in Income on Derivative

The following table presents the effect of our derivative instruments not designated as hedging instruments on our Statements of Consolidated Operations for the periods indicated:

Derivatives Not Designated as Hedging Instruments	Location	Gain (Loss) Recognized in Income on Derivative
		For the Year Ended December 31,
		2014				2013				2012
Interest rate derivatives	Interest expense		$	(0.1	)		$	(0.7	)		$	(5.6	)
Commodity derivatives	Revenue			(23.0	)			7.3				22.7
Commodity derivatives	Operating costs and expense			--				--				(2.8	)
Total			$	(23.1	)		$	6.6			$	14.3

Fair Value Measurements of Financial Assets and Liabilities Measured on a Recurring Basis

The following tables set forth, by level within the fair value hierarchy, the carrying values of our financial assets and liabilities at the dates indicated. These assets and liabilities are measured on a recurring basis and are classified based on the lowest level of input used to estimate their fair value. Our assessment of the relative significance of such inputs requires judgment.

	December 31, 2014 Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Financial assets:
Commodity derivatives	$	37.8	$	187.8	$	1.0	$	226.6
Financial liabilities:
Liquidity Option Agreement	$	--	$	--	$	119.4	$	119.4
Commodity derivatives		13.8		133.0		0.6		147.4
Total	$	13.8	$	133.0	$	120.0	$	266.8

	December 31, 2013 Fair Value Measurements Using
	Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Financial assets:
Interest rate derivatives	$	--	$	32.6	$	--	$	32.6
Commodity derivatives		17.2		20.2		3.9		41.3
Total	$	17.2	$	52.8	$	3.9	$	73.9
Financial liabilities:
Interest rate derivatives	$	--	$	7.8	$	--	$	7.8
Commodity derivatives		30.8		23.6		0.7		55.1
Total	$	30.8	$	31.4	$	0.7	$	62.9

Reconciliation of Changes in the Fair Value of Level 3 Financial Assets and Liabilities

The following table sets forth a reconciliation of changes in the fair values of our recurring Level 3 financial assets and liabilities on a combined basis for the periods indicated:

		For the Year Ended December 31,
	Location	2014			2013
Financial asset (liability) balance, net, January 1		$	3.2		$	(1.5	)
Total gains (losses) included in:
Net income (1)	Revenue		0.9			2.8
Other comprehensive income	Commodity derivative instruments – changes in fair value of cash flow hedges		(2.6	)		(0.9	)
Settlements			(3.4	)		1.6
Acquisition of Liquidity Option Agreement			(119.4	)		--
Transfers out of Level 3 (2)			2.3			1.2
Financial asset (liability) balance, net, December 31 (2)		$	(119.0	)	$	3.2
(1)There were $2.6 million and $4.4 million of unrealized losses and gains included in these amounts for the years ended December 31, 2014 and 2013, respectively. (2)Transfers out of Level 3 into Level 2 were due to shorter remaining transaction maturities falling inside of the Level 2 range at December 31, 2014 and 2013.

Fair Value Measurements, Valuation Techniques

The followingtables provide quantitative information about our recurring Level 3 fair value measurements at the dates indicated:

	Fair Value At December 31, 2014
	Financial Assets		Financial Liabilities		Valuation Techniques	Unobservable Input	Range
Commodity derivatives – Crude oil	$	1.0	$	0.4	Discounted cash flow	Forward commodity prices	$49.26-$53.27/barrel
Commodity derivatives – Natural gas		--		0.2	Discounted cash flow	Forward commodity prices	$3.05-$4.09/MMBtu
Liquidity Option Agreement (see Note 18)		--		119.4	Discounted cash flow	Expected life of OTA following option exercise	30 years
						Estimated growth rates in Enterprise's earnings before interest, taxes, depreciation and amortization	3% to 14%
						OTA ownership interest in Enterprise common units	1.9% to 2.8%
						Interest rate on assumed debt of OTA following option exercise	4.9% over 30 years
						Forecasted yield on Enterprise common units	4.0% to 5.5%
						Federal and state tax rate	38%
Total	$	1.0	$	120.0

	Fair Value At December 31, 2013
	Financial Assets		Financial Liabilities		Valuation Techniques	Unobservable Input	Range
Commodity derivatives – Crude oil	$	3.9	$	0.7	Discounted cash flow	Forward commodity prices	$89.55-$98.54/barrel

Noncash Impairment Charges by Segment

The following table summarizes our non-cash impairment charges by segment during each of the periods indicated:

	For the Year Ended December 31,
	2014		2013		2012
NGL Pipelines & Services	$	16.2	$	30.6	$	16.3
Onshore Natural Gas Pipelines & Services		0.7		--		29.2
Onshore Crude Oil Pipelines & Services		2.9		30.1		10.6
Offshore Pipelines & Services		5.1		18.0		4.0
Petrochemical & Refined Products Services		9.1		18.7		3.3
Total	$	34.0	$	97.4	$	63.4

Nonrecurring Fair Value Measurements

Our non-cash asset impairment charges for the year ended December 31, 2014 are a component of operating costs and expenses on our Statements of Consolidated Operations and primarily relate to the abandonment of certain natural gas processing equipment in Louisiana, natural gas pipeline segments in the Gulf of Mexico, refined products terminal and pipeline assets in Arkansas, and NGL storage caverns in Oklahoma and Texas.  The following table summarizes our non-recurring fair value measurements for the year ended December 31, 2014:

			Fair Value Measurements Using
	Carrying Value at December 31, 2014		Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Non-Cash Impairment Loss
Impairment of long-lived assets disposed of other than by sale	$	--		$	--		$	--		$	--		$	26.7
Impairment of long-lived assets to be disposed of by sale		1.5			--			--			1.5			7.3
Total													$	34.0

Our non-cash asset impairment charges for the year ended December 31, 2013 include $4.8 million related to our investment in two offshore natural gas gathering systems owned by Neptune (see Note 9). This charge is a component of equity in income of unconsolidated affiliates on our Statements of Consolidated Operations. The remainder of the non-cash impairment charges for 2013, or $92.6 million, are a component of operating costs and expenses on our Statements of Consolidated Operations.  These latter charges primarily represent the abandonment of certain crude oil and natural gas pipeline segments in Texas, Oklahoma and the Gulf of Mexico, certain refined products terminal assets in Texas, an NGL storage cavern in Arizona and an NGL fractionator and storage caverns in Ohio.  The following table summarizes our non-recurring fair value measurements for the year ended December 31, 2013:

			Fair Value Measurements Using
	Carrying Value at December 31, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Non-Cash Impairment Loss
Impairment of long-lived assets disposed of other than by sale	$	--	$	--	$	--	$	--	$	79.4
Impairment of long-lived assets held and used		44.6		--		--		44.6		9.0
Impairment of long-lived assets to be disposed of by sale		0.6		--		--		0.6		9.0
Total									$	97.4

Our non-cash asset impairment charges for the year ended December 31, 2012 are a component of operating costs and expenses on our Statements of Consolidated Operations and primarily related to the abandonment of crude oil and natural gas pipeline segments in Texas and the Gulf of Mexico.  The following table summarizes our non-recurring fair value measurements for the year ended December 31, 2012:

			Fair Value Measurements Using
	Carrying Value at December 31, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Non-Cash Impairment Loss
Impairment of long-lived assets disposed of other than by sale	$	0.8	$	--	$	--	$	0.8	$	56.5
Impairment of long-lived assets held and used		2.2		--		--		2.2		2.6
Impairment of long-lived assets to be disposed of by sale		--		--		--		--		4.3
Total									$	63.4