XML 52 R36.htm IDEA: XBRL DOCUMENT v3.8.0.1
Intangible Assets and Goodwill (Tables)
 12 Months Ended
Dec. 31, 2017
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, 2017
  
December 31, 2016
 
 
 
Gross
Value
  
Accumulated
Amortization
  
Carrying
Value
  
Gross
Value
  
Accumulated
Amortization
  
Carrying
Value
 
NGL Pipelines & Services:
                  
Customer relationship intangibles
 
$
447.4
  
$
(187.5
)
 
$
259.9
  
$
447.4
  
$
(172.7
)
 
$
274.7
 
Contract-based intangibles
  
280.8
   
(218.4
)
  
62.4
   
279.9
   
(204.4
)
  
75.5
 
Segment total
  
728.2
   
(405.9
)
  
322.3
   
727.3
   
(377.1
)
  
350.2
 
Crude Oil Pipelines & Services:
                        
Customer relationship intangibles
  
2,203.5
   
(127.0
)
  
2,076.5
   
2,204.4
   
(84.5
)
  
2,119.9
 
Contract-based intangibles
  
281.0
   
(171.0
)
  
110.0
   
281.0
   
(121.9
)
  
159.1
 
Segment total
  
2,484.5
   
(298.0
)
  
2,186.5
   
2,485.4
   
(206.4
)
  
2,279.0
 
Natural Gas Pipelines & Services:
                        
Customer relationship intangibles
  
1,350.3
   
(417.1
)
  
933.2
   
1,350.3
   
(390.0
)
  
960.3
 
Contract-based intangibles
  
464.7
   
(379.5
)
  
85.2
   
464.7
   
(370.5
)
  
94.2
 
Segment total
  
1,815.0
   
(796.6
)
  
1,018.4
   
1,815.0
   
(760.5
)
  
1,054.5
 
Petrochemical & Refined Products Services:
                        
Customer relationship intangibles
  
181.4
   
(45.9
)
  
135.5
   
185.5
   
(43.9
)
  
141.6
 
Contract-based intangibles
  
46.0
   
(18.4
)
  
27.6
   
54.0
   
(15.2
)
  
38.8
 
Segment total
  
227.4
   
(64.3
)
  
163.1
   
239.5
   
(59.1
)
  
180.4
 
Total intangible assets
 
$
5,255.1
  
$
(1,564.8
)
 
$
3,690.3
  
$
5,267.2
  
$
(1,403.1
)
 
$
3,864.1
 
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,
 
 
 
2017
  
2016
  
2015
 
NGL Pipelines & Services
 
$
28.9
  
$
30.6
  
$
33.6
 
Crude Oil Pipelines & Services
  
92.5
   
98.4
   
87.1
 
Natural Gas Pipelines & Services
  
36.2
   
33.2
   
40.0
 
Petrochemical & Refined Products Services
  
9.3
   
9.1
   
8.9
 
Offshore Pipelines & Services
  
--
   
--
   
4.5
 
Total
 
$
166.9
  
$
171.3
  
$
174.1
 
Forecasted Amortization Expense
The following table presents our forecast of amortization expense associated with existing intangible assets for the years indicated:

2018
  
2019
  
2020
  
2021
  
2022
 
$
174.5
  
$
165.8
  
$
150.7
  
$
145.6
  
$
141.6
 
Significant Acquired Intangible Assets

At December 31, 2017, the carrying value of our portfolio of customer relationship intangible assets was $3.4 billion, the principal components of which are as follows:

Weighted
Average
Remaining
Amortization
Period
 
December 31, 2017
 
 
 
Gross
Value
  
Accumulated
Amortization
  
Carrying
Value
 
Basin-specific customer relationships:
          
   EFS Midstream (1)
24.4 years
 
$
1,409.8
  
$
(88.8
)
 
$
1,321.0
 
   State Line and Fairplay (2)
29.2 years
  
895.0
   
(164.7
)
  
730.3
 
   San Juan Gathering (3)
21.8 years
  
331.3
   
(218.0
)
  
113.3
 
   Encinal (4)
9.0 years
  
132.9
   
(98.4
)
  
34.5
 
General customer relationships:
             
   Oiltanking (5)
26.0 years
  
1,192.5
   
(57.1
)
  
1,135.4
 
              
(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 formation in Louisiana and eastern Texas. The Fairplay system serves producers in the Cotton Valley formation 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 January 1, 2015
 
$
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 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
 
Balance at December 31, 2016
  
2,651.7
   
1,841.0
   
296.3
   
956.2
   
--
   
5,745.2
 
Balance at December 31, 2017
 
$
2,651.7
  
$
1,841.0
  
$
296.3
  
$
956.2
  
$
--
  
$
5,745.2