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

12 Months Ended

Dec. 31, 2015

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

Hedging Instruments Under the FASB's Derivative and Hedging Guidance

The following table summarizes our portfolio of interest rate swaps at December 31, 2015:

Hedged Transaction	Number and Type of Derivatives Outstanding		Notional Amount			Period of Hedge	Rate Swap	Accounting Treatment
Senior Notes OO	10 fixed-to-floating swaps		$	750.0		5/2015 to 5/2018	1.65% to 0.82%	Fair value hedge

The prices of natural gas, NGLs, crude oil, petrochemicals and refined 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, 2015 (volume measures as noted):

	Volume (1)				Accounting
Derivative Purpose	Current (2)		Long-Term (2)		Treatment
Derivatives designated as hedging instruments:
Natural gas processing:
Forecasted natural gas purchases for plant thermal reduction (Bcf)		9.1		n/a	Cash flow hedge
Forecasted sales of NGLs (MMBbls)		2.1		n/a	Cash flow hedge
Natural gas marketing:
Forecasted purchases of natural gas for fuel (Bcf)		2.4		n/a	Cash flow hedge
Natural gas storage inventory management activities (Bcf)		10.7		n/a	Fair value hedge
NGL marketing:
Forecasted purchases of NGLs and related hydrocarbon products (MMBbls)		28.7		0.4	Cash flow hedge
Forecasted sales of NGLs and related hydrocarbon products (MMBbls)		42.2		0.1	Cash flow hedge
Refined products marketing:
Forecasted purchases of refined products (MMBbls)		2.7		n/a	Cash flow hedge
Forecasted sales of refined products (MMBbls)		0.8		0.1	Cash flow hedge
Refined products inventory management activities (MMBbls)		1.3		n/a	Fair value hedge
Crude oil marketing:
Forecasted purchases of crude oil (MMBbls)		15.0		n/a	Cash flow hedge
Forecasted sales of crude oil (MMBbls)		17.6		n/a	Cash flow hedge
Crude oil inventory management activities (MMBbls)		0.7		n/a	Fair value hedge
Derivatives not designated as hedging instruments:
Natural gas risk management activities (Bcf) (3,4)		48.2		8.2	Mark-to-market
NGL risk management activities (MMBbls) (4)		1.8		n/a	Mark-to-market
Crude oil risk management activities (MMBbls) (4)		11.8		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 2017, January 2017 and March 2018, respectively.

(3)	Current and long-term volumes include 24.3 Bcf and 2.1 Bcf, respectively, of physical derivative instruments that are predominantly priced at a marked-based index plus a premium or minus a discount related to location differences.

(4) 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, 2015			December 31, 2014			December 31, 2015			December 31, 2014
	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	Current assets	$	3.2	Current assets	$	--	Other current liabilities	$	--	Other current liabilities	$	--
Interest rate derivatives	Other assets		--	Other assets		--	Other liabilities		3.7	Other liabilities		--
Total interest rate derivatives			3.2			--			3.7			--
Commodity derivatives	Current assets		253.8	Current assets		217.9	Other current liabilities		137.5	Other current liabilities		145.3
Commodity derivatives	Other assets		0.2	Other assets		--	Other liabilities		1.4	Other liabilities		--
Total commodity derivatives			254.0			217.9			138.9			145.3
Total derivatives designated as hedging instruments		$	257.2		$	217.9		$	142.6		$	145.3

Derivatives not designated as hedging instruments
Interest rate derivatives	Current assets	$	--	Current assets	$	--	Other current liabilities	$	--	Other current liabilities	$	--
Commodity derivatives	Current assets		1.6	Current assets		8.1	Other current liabilities		3.1	Other current liabilities		0.7
Commodity derivatives	Other assets		--	Other assets		0.6	Other liabilities		1.0	Other liabilities		1.4
Total commodity derivatives			1.6			8.7			4.1			2.1
Total derivatives not designated as hedging instruments		$	1.6		$	8.7		$	4.1		$	2.1

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 Paid			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, 2015:
Interest rate derivatives		$	3.2		$	--		$	3.2		$	(3.2	)	$	--		$	--			$	--
Commodity derivatives			255.6			--			255.6			(143.0	)		(40.1	)		(72.2	)			0.3
As of December 31, 2014:
Commodity derivatives		$	226.6		$	--		$	226.6		$	(147.3	)	$	--		$	(23.9	)		$	55.4

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, 2015:
Interest rate derivatives		$	3.7		$	--		$	3.7		$	(3.2	)		$	--		$	0.5
Commodity derivatives			143.0			--			143.0			(143.0	)			--			--
As of December 31, 2014:
Commodity derivatives		$	147.4		$	--		$	147.4		$	(147.3	)		$	--		$	0.1

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,
		2015			2014			2013
Interest rate derivatives	Interest expense	$	(1.4	)	$	(26.5	)	$	(13.1	)
Commodity derivatives	Revenue		19.1			11.9			(0.1	)
Total		$	17.7		$	(14.6	)	$	(13.2	)

Derivatives in Fair Value Hedging Relationships	Location	Gain (Loss) Recognized in Income on Hedged Item
		For the Year Ended December 31,
		2015		2014			2013
Interest rate derivatives	Interest expense	$	1.4	$	26.4		$	12.8
Commodity derivatives	Revenue		0.2		(11.8	)		(5.7	)
Total		$	1.6	$	14.6		$	7.1

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,
	2015			2014		2013
Interest rate derivatives	$	--		$	--	$	6.6
Commodity derivatives – Revenue (1)		217.6			161.3		(47.9	)
Commodity derivatives – Operating costs and expenses (1)		(2.7	)		--		1.0
Total	$	214.9		$	161.3	$	(40.3	)

(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,
		2015			2014			2013
Interest rate derivatives	Interest expense	$	(35.3	)	$	(32.4	)	$	(29.2	)
Commodity derivatives	Revenue		231.7			75.0			(22.4	)
Commodity derivatives	Operating costs and expenses		(3.5	)		1.7			0.3
Total		$	192.9		$	44.3		$	(51.3	)

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,
		2015		2014			2013
Commodity derivatives	Revenue	$	4.7	$	(0.3	)	$	0.2
Commodity derivatives	Operating costs and expenses		0.1		--			--
Total		$	4.8	$	(0.3	)	$	0.2

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,
		2015		2014			2013
Interest rate derivatives	Interest expense	$	--	$	(0.1	)	$	(0.7	)
Commodity derivatives	Revenue		1.0		(23.0	)		7.3
Commodity derivatives	Operating costs and expense		0.1		--			--
Total		$	1.1	$	(23.1	)	$	6.6

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

The following tables set forth, by level within the Level 1, 2 and 3 fair value hierarchy (see Note 2), 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, 2015 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	$	--	$	3.2	$	--	$	3.2
Commodity derivatives		109.5		145.2		0.9		255.6
Total	$	109.5	$	148.4	$	0.9	$	258.8

Financial liabilities:
Liquidity Option Agreement	$	--	$	--	$	245.1	$	245.1
Interest rate derivatives		--		3.7		--		3.7
Commodity derivatives		31.3		109.2		2.5		143.0
Total	$	31.3	$	112.9	$	247.6	$	391.8

	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	$	--	$	--	$	219.7	$	219.7
Commodity derivatives		13.8		133.0		0.6		147.4
Total	$	13.8	$	133.0	$	220.3	$	367.1

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	2015			2014
Financial asset (liability) balance, net, January 1		$	(219.3	)	$	3.2
Total gains (losses) included in:
Net income (1)	Revenue		(0.9	)		0.9
Net income	Other expense, net		(25.4	)		--
Other comprehensive income (loss)	Commodity derivative instruments – changes in fair value of cash flow hedges		(19.2	)		(2.6	)
Settlements			0.1			(3.4	)
Acquisition of Liquidity Option Agreement (see Note 17)			--			(219.7	)
Transfers out of Level 3 (2)			18.0			2.3
Financial liability balance, net, December 31 (2)		$	(246.7	)	$	(219.3	)

(1) There were $0.9 million and $2.6 million of unrealized losses included in these amounts for the years ended December 31, 2015 and 2014, 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, 2015 and 2014.

Fair Value Measurements, Valuation Techniques

The following tables provide quantitative information regarding our recurring Level 3 fair value measurements for commodity derivatives at the dates indicated:

	Fair Value At December 31, 2015
	Financial Assets		Financial Liabilities		Valuation Techniques	Unobservable Input	Range
Commodity derivatives – Crude oil	$	0.9	$	1.2	Discounted cash flow	Forward commodity prices	$35.63-$43.84/barrel
Commodity derivatives – Propane		--		1.3	Discounted cash flow	Forward commodity prices	$0.42-$0.44/gallon
Total	$	0.9	$	2.5

	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
Total	$	1.0	$	0.6

Noncash Impairment Charges by Segment

We measure certain assets, primarily long-lived assets and equity method investments, at fair value on a nonrecurring basis. These assets are recognized at fair value when they are deemed to be other-than-temporarily impaired. The following table summarizes our non-cash impairment charges by segment during each of the periods indicated:

	For the Year Ended December 31,
	2015		2014		2013
NGL Pipelines & Services	$	20.8	$	16.2	$	30.6
Crude Oil Pipelines & Services		33.5		2.9		30.1
Natural Gas Pipelines & Services		21.6		0.7		--
Petrochemical & Refined Products Services		28.2		9.1		18.7
Offshore Pipelines & Services		58.5		5.1		18.0
Total	$	162.6	$	34.0	$	97.4

Nonrecurring Fair Value Measurements

Our non-cash asset impairment charges for the year ended December 31, 2015 are a component of operating costs and expenses and primarily reflect the $54.8 million charge we recorded in connection with the sale of our Offshore Business (see Note 5) and the abandonment of certain natural gas and crude oil pipeline assets in Texas. The following table presents categories of long-lived assets, primarily property, plant and equipment, that were subject to non-recurring fair value measurements during the year ended December 31, 2015:

			Fair Value Measurements at the End of the Reporting Period Using
	Carrying Value at December 31, 2015		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
Long-lived assets disposed of other than by sale	$	0.4	$	--	$	--	$	0.4	$	81.4
Long-lived assets held for sale		18.0		--		--		18.0		14.2
Long-lived assets disposed of by sale (1)		--		--		--		--		67.0
Total									$	162.6

(1) Includes a $54.8 million charge recorded in connection with the sale of our Offshore Business.

Our non-cash asset impairment charges for the year ended December 31, 2014 are a component of operating costs and expenses 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 presents categories of long-lived assets, primarily property, plant and equipment, that were subject to non-recurring fair value measurements during the year ended December 31, 2014:

			Fair Value Measurements at the End of the Reporting Period 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
Long-lived assets disposed of other than by sale	$	--	$	--	$	--	$	--	$	26.7
Long-lived assets held for sale		1.5		--		--		1.5		3.6
Long-lived assets disposed of by sale		--		--		--		--		3.7
Total									$	34.0

Our non-cash asset impairment charges for the year ended December 31, 2013 primarily relate to 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 cavern facility in Ohio. These impairment charges totaled $92.6 million and are a component of operating costs and expenses. The remaining charge, or $4.8 million, relates to the impairment of an equity method investment and was presented as a component of equity in income of unconsolidated affiliates. The following table presents categories of long-lived assets that were subject to non-recurring fair value measurements during the year ended December 31, 2013:

			Fair Value Measurements at the End of the Reporting Period 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
Long-lived assets disposed of other than by sale	$	--	$	--	$	--	$	--	$	79.4
Long-lived assets held and used		44.6		--		--		44.6		9.0
Long-lived assets held for sale		0.6		--		--		0.6		3.4
Long-lived assets disposed of by sale		--		--		--		--		5.6
Total									$	97.4