XML 51 R34.htm IDEA: XBRL DOCUMENT v3.3.1.900
Intangible Assets and Goodwill (Tables)
 12 Months Ended
Dec. 31, 2015
Intangible Assets and Goodwill [Abstract]  
Intangible Assets by Segment
The following table summarizes our intangible assets by business segment at the dates indicated:

 
 
December 31, 2015
  
December 31, 2014
 
 
 
Gross
Value
  
Accumulated
Amortization
  
Carrying
Value
  
Gross
Value
  
Accumulated
Amortization
  
Carrying
Value
 
NGL Pipelines & Services:
 
  
  
  
  
  
 
Customer relationship intangibles
 
$
447.4
  
$
(156.9
)
 
$
290.5
  
$
340.8
  
$
(183.2
)
 
$
157.6
 
Contract-based intangibles
  
283.0
   
(193.2
)
  
89.8
   
277.7
   
(178.7
)
  
99.0
 
IDRs (1)
  
--
   
--
   
--
   
432.6
   
--
   
432.6
 
Segment total
  
730.4
   
(350.1
)
  
380.3
   
1,051.1
   
(361.9
)
  
689.2
 
Crude Oil Pipelines & Services:
                        
Customer relationship intangibles
  
2,204.4
   
(39.1
)
  
2,165.3
   
1,108.0
   
(7.7
)
  
1,100.3
 
Contract-based intangibles
  
281.4
   
(69.2
)
  
212.2
   
281.4
   
(13.5
)
  
267.9
 
IDRs (1)
  
--
   
--
   
--
   
855.4
   
--
   
855.4
 
Segment total
  
2,485.8
   
(108.3
)
  
2,377.5
   
2,244.8
   
(21.2
)
  
2,223.6
 
Natural Gas Pipelines & Services:
                        
Customer relationship intangibles
  
1,350.3
   
(366.3
)
  
984.0
   
1,163.6
   
(308.9
)
  
854.7
 
Contract-based intangibles
  
464.7
   
(361.0
)
  
103.7
   
466.0
   
(347.8
)
  
118.2
 
Segment total
  
1,815.0
   
(727.3
)
  
1,087.7
   
1,629.6
   
(656.7
)
  
972.9
 
Petrochemical & Refined Products Services:
                        
Customer relationship intangibles
  
185.5
   
(38.3
)
  
147.2
   
198.4
   
(43.3
)
  
155.1
 
Contract-based intangibles
  
56.3
   
(11.8
)
  
44.5
   
56.3
   
(7.8
)
  
48.5
 
IDRs (1)
  
--
   
--
   
--
   
171.2
   
--
   
171.2
 
Segment total
  
241.8
   
(50.1
)
  
191.7
   
425.9
   
(51.1
)
  
374.8
 
Offshore Pipelines & Services: (2)
                        
Customer relationship intangibles
  
--
   
--
   
--
   
195.8
   
(154.9
)
  
40.9
 
Contract-based intangibles
  
--
   
--
   
--
   
1.2
   
(0.5
)
  
0.7
 
Segment total
  
--
   
--
   
--
   
197.0
   
(155.4
)
  
41.6
 
Total intangible assets
 
$
5,273.0
  
$
(1,235.8
)
  
4,037.2
  
$
5,548.4
  
$
(1,246.3
)
 
$
4,302.1
 
                         
(1)    We recorded intangible assets having an aggregate carrying value of $1.46 billion in connection with our October 2014 acquisition of the IDRs of Oiltanking. The IDRs represented contractual rights to future cash incentive distributions to be paid by Oiltanking. These rights were granted to Oiltanking GP under the terms of Oiltanking's partnership agreement. Oiltanking GP could separate and sell the IDRs independent of its other residual general partner interest in Oiltanking. In February 2015 (following completion of Step 2 of the Oiltanking acquisition), the Oiltanking IDRs were cancelled and the carrying value of this intangible asset was reclassified to goodwill.
(2)    Our intangible assets classified within the Offshore Pipelines & Services segment were sold to Genesis in July 2015 (see Note 5).
 
Amortization Expense of Intangible Assets by Segment
The following table presents the amortization expense of our intangible assets by business segment for the periods indicated:

 
 
For the Year Ended December 31,
 
 
 
2015
  
2014
  
2013
 
NGL Pipelines & Services
 
$
33.6
  
$
33.1
  
$
36.4
 
Crude Oil Pipelines & Services
  
87.1
   
15.7
   
1.4
 
Natural Gas Pipelines & Services
  
40.0
   
45.0
   
50.1
 
Petrochemical & Refined Products Services
  
8.9
   
6.9
   
6.2
 
Offshore Pipelines & Services
  
4.5
   
9.9
   
11.5
 
Total
 
$
174.1
  
$
110.6
  
$
105.6
 
Forecasted Amortization Expense
The following table presents our forecast of amortization expense associated with existing intangible assets for the years indicated:

2016
  
2017
  
2018
  
2019
  
2020
$
181.6
  
$
177.4
  
$
171.6
  
$
167.0
  
$
166.3
Significant Acquired Intangible Assets
At December 31, 2015, the carrying value of our portfolio of customer relationship intangible assets was $3.59 billion, the principal components of which are as follows:

  
Weighted
Average
Remaining
Amortization
Period at
December 31,
2015
 
December 31, 2015
 
 
Gross
Value
  
Accumulated
Amortization
  
Carrying
Value
 
Basin-specific customer relationships:
       
   EFS Midstream (1)
26.4 years
 
$
1,409.8
  
$
(26.2
)
 
$
1,383.6
 
   State Line and Fairplay (2)
31.2 years
  
895.0
   
(141.7
)
  
753.3
 
   San Juan Gathering (3)
23.8 years
  
331.3
   
(196.4
)
  
134.9
 
   Encinal (4)
11.0 years
  
132.9
   
(86.9
)
  
46.0
 
General customer relationships:
             
   Oiltanking (5)
28.0 years
  
1,192.5
   
(11.5
)
  
1,181.0
 
              
(1)  We acquired these intangible assets in connection with our acquisition of EFS Midstream in July 2015 (see Note 12 for additional information).
(2)  These customer relationships are associated with our State Line and Fairplay Gathering Systems, which we acquired in 2010. The State Line system serves producers in the Haynesville and Bossier Shale supply basins and the Cotton Valley and Taylor Sand formations in Louisiana and eastern Texas. The Fairplay system serves producers in the Cotton Valley and Taylor Sand formations within Panola and Rusk counties in East Texas.
(3)  These customer relationships are associated with our San Juan Gathering System, which serves producers in the San Juan Basin of northern New Mexico and southern Colorado. We acquired this intangible asset in 2004.
(4)  These customer relationships are associated with our Encinal Gathering System, which serves producers in the Olmos and Wilcox formations in South Texas. We acquired this intangible asset in 2006.
(5)  We acquired these intangible assets in connection with our acquisition of Oiltanking in October 2014 (see Note 12 for additional information).
 
Changes in Carrying Amount of 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.  Goodwill is not amortized; however, it is subject to annual impairment testing at the end of each fiscal year, and more frequently, if circumstances indicate it is probable that the fair value of goodwill is below its carrying amount.  The following table presents changes in the carrying amount of goodwill during the periods indicated:

 
 
NGL
Pipelines
& Services
  
Crude Oil
Pipelines
& Services
  
Natural Gas
Pipelines
& Services
  
Petrochemical
& Refined
Products
Services
  
Offshore
Pipelines
& Services
  
Consolidated
Total
 
Balance at December 31, 2012
 
$
341.2
  
$
311.2
  
$
296.3
  
$
1,056.0
  
$
82.1
  
$
2,086.8
 
Reduction in goodwill related to the sale of assets
  
--
   
(6.1
)
  
--
   
(0.7
)
  
--
   
(6.8
)
Balance at December 31, 2013
  
341.2
   
305.1
   
296.3
   
1,055.3
   
82.1
   
2,080.0
 
Reclassification of goodwill between segments
  
520.0
   
--
   
--
   
(520.0
)
  
--
   
--
 
Reduction in goodwill related to the sale of assets
  
--
   
--
   
--
   
--
   
(0.1
)
  
(0.1
)
Addition to goodwill related to the acquisition of Oiltanking
  
1,349.0
   
613.6
   
--
   
257.7
   
--
   
2,220.3
 
Balance at December 31, 2014
  
2,210.2
   
918.7
   
296.3
   
793.0
   
82.0
   
4,300.2
 
Reclassification of Oiltanking IDR balances to goodwill in connection with the cancellation of such rights in February 2015 and other adjustments
  
432.6
   
850.7
   
--
   
170.8
   
--
   
1,454.1
 
Reduction in goodwill related to the sale of assets
  
--
   
(2.1
)
  
--
   
--
   
(82.0
)
  
(84.1
)
Addition to goodwill related to the acquisition of EFS Midstream
  
8.9
   
73.7
   
--
   
--
   
--
   
82.6
 
Goodwill reclassified to assets held-for-sale
  
--
   
--
   
--
   
(7.6
)
  
--
   
(7.6
)
Balance at December 31, 2015
 
$
2,651.7
  
$
1,841.0
  
$
296.3
  
$
956.2
  
$
--
  
$
5,745.2