Intangible Assets and Goodwill

3 Months Ended

Mar. 31, 2015

Intangible Assets and Goodwill [Abstract]

Note 8. Intangible Assets and Goodwill

Identifiable Intangible Assets

The following table summarizes our intangible assets by business segment at the dates indicated:

	March 31, 2015							December 31, 2014
	Gross Value		Accumulated Amortization			Carrying Value		Gross Value		Accumulated Amortization			Carrying Value
NGL Pipelines & Services:
Customer relationship intangibles	$	340.8	$	(187.2	)	$	153.6	$	340.8	$	(183.2	)	$	157.6
Contract-based intangibles		277.7		(182.2	)		95.5		277.7		(178.7	)		99.0
IDRs (1)		--		--			--		432.6		--			432.6
Segment total		618.5		(369.4	)		249.1		1,051.1		(361.9	)		689.2
Onshore Natural Gas Pipelines & Services:
Customer relationship intangibles		1,163.6		(314.9	)		848.7		1,163.6		(308.9	)		854.7
Contract-based intangibles		466.0		(351.7	)		114.3		466.0		(347.8	)		118.2
Segment total		1,629.6		(666.6	)		963.0		1,629.6		(656.7	)		972.9
Onshore Crude Oil Pipelines & Services:
Customer relationship intangibles		1,108.0		(10.3	)		1,097.7		1,108.0		(7.7	)		1,100.3
Contract-based intangibles		281.4		(27.6	)		253.8		281.4		(13.5	)		267.9
IDRs (1)		--		--			--		855.4		--			855.4
Segment total		1,389.4		(37.9	)		1,351.5		2,244.8		(21.2	)		2,223.6
Offshore Pipelines & Services:
Customer relationship intangibles		195.8		(157.2	)		38.6		195.8		(154.9	)		40.9
Contract-based intangibles		1.2		(0.5	)		0.7		1.2		(0.5	)		0.7
Segment total		197.0		(157.7	)		39.3		197.0		(155.4	)		41.6
Petrochemical & Refined Products Services:
Customer relationship intangibles		198.4		(44.6	)		153.8		198.4		(43.3	)		155.1
Contract-based intangibles		56.3		(8.9	)		47.4		56.3		(7.8	)		48.5
IDRs (1)		--		--			--		171.2		--			171.2
Segment total		254.7		(53.5	)		201.2		425.9		(51.1	)		374.8
Total all segments	$	4,089.2	$	(1,285.1	)	$	2,804.1	$	5,548.4	$	(1,246.3	)	$	4,302.1

(1) At December 31, 2014, we had indefinite-lived intangible assets outstanding with a carrying value of $1.46 billion recorded in connection with our acquisition of the Oiltanking IDRs in October 2014. The IDRs represented contractual rights to future cash incentive distributions to be paid by Oiltanking. In February 2015 (following completion of Step 2 of the Oiltanking acquisition), the Oiltanking IDRs were cancelled and the carrying value of the IDRs were reclassified to goodwill.

The following table presents the amortization expense of our intangible assets by business segment for the periods indicated:

	For the Three Months Ended March 31,
	2015		2014
NGL Pipelines & Services	$	7.5	$	8.6
Onshore Natural Gas Pipelines & Services		9.9		11.6
Onshore Crude Oil Pipelines & Services		16.7		0.3
Offshore Pipelines & Services		2.3		2.6
Petrochemical & Refined Products Services		2.4		1.6
Total	$	38.8	$	24.7

The following table presents our forecast of amortization expense associated with existing intangible assets for the periods indicated:

Remainder of 2015				2016				2017				2018				2019
$	112.3			$	152.3			$	149.3			$	142.7			$	131.3

Goodwill

Goodwill represents the excess of the purchase price of an acquired business over the amounts assigned to assets acquired and liabilities assumed in the transaction. The following table presents changes in the carrying amount of goodwill since December 31, 2014:

	NGL Pipelines & Services		Onshore Natural Gas Pipelines & Services		Onshore Crude Oil Pipelines & Services		Offshore Pipelines & Services		Petrochemical & Refined Products Services		Consolidated Total
Balance at December 31, 2014	$	2,180.4	$	296.3	$	859.9	$	82.0	$	781.3	$	4,199.9
Reclassification of Oiltanking IDR balances to goodwill in connection with the cancellation of such rights in February 2015		432.6		--		850.7		--		170.8		1,454.1
Balance at March 31, 2015	$	2,613.0	$	296.3	$	1,710.6	$	82.0	$	952.1	$	5,654.0

Upon completion of Step 2 of the Oiltanking acquisition in February 2015, the IDRs of Oiltanking were cancelled and the associated carrying values were reclassified from intangible assets to goodwill and allocated to the appropriate business segments.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References+ Details