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

12 Months Ended

Dec. 31, 2017

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, 2017:

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 1.87%	Fair value hedge

At December 31, 2017, our portfolio of forward starting swaps was as follows:

Hedged Transaction	Number and Type of Derivatives Outstanding	Notional Amount		Expected Settlement Date	Average Rate Locked	Accounting Treatment
Future long-term debt offering	3 forward starting swaps	$	275.0	2/2019	2.57%	Cash flow hedge

The following table summarizes our portfolio of commodity derivative instruments outstanding at December 31, 2017 (volume measures as noted):

	Volume (1)		Accounting
Derivative Purpose	Current (2)	Long-Term (2)	Treatment
Derivatives designated as hedging instruments:
Octane enhancement:
Forecasted purchase of NGLs (MMBbls)	1.1	n/a	Cash flow hedge
Forecasted sales of octane enhancement products (MMBbls)	1.0	n/a	Cash flow hedge
Natural gas marketing:
Forecasted purchases of natural gas for fuel (Bcf)	1.0	n/a	Cash flow hedge
Natural gas storage inventory management activities (Bcf)	3.9	n/a	Fair value hedge
NGL marketing:
Forecasted purchases of NGLs and related hydrocarbon products (MMBbls)	49.0	n/a	Cash flow hedge
Forecasted sales of NGLs and related hydrocarbon products (MMBbls)	64.6	n/a	Cash flow hedge
NGLs inventory management activities (MMBbls)	0.5	n/a	Fair value hedge
Refined products marketing:
Forecasted purchases of refined products (MMBbls)	0.6	n/a	Cash flow hedge
Forecasted sales of refined products (MMBbls)	1.3	n/a	Cash flow hedge
Refined products inventory management activities (MMBbls)	0.5	n/a	Fair value hedge
Crude oil marketing:
Forecasted purchases of crude oil (MMBbls)	3.7	3.3	Cash flow hedge
Forecasted sales of crude oil (MMBbls)	6.9	3.3	Cash flow hedge
Petrochemical marketing:
Forecasted purchases of NGLs for propylene marketing activities (MMBbls)	0.8	n/a	Cash flow hedge
Derivatives not designated as hedging instruments:
Natural gas risk management activities (Bcf) (3,4)	67.3	9.0	Mark-to-market
NGL risk management activities (MMBbls) (4)	18.3	n/a	Mark-to-market
Refined products risk management activities (MMBbls) (4)	0.6	n/a	Mark-to-market
Crude oil risk management activities (MMBbls) (4)	104.0	12.2	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 2020, May 2018 and December 2020, respectively. (3)   Current and long-term volumes include 21.1 Bcf and 5.3 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, 2017			December 31, 2016			December 31, 2017			December 31, 2016
	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	$	--	Current assets	$	0.3	Current liabilities	$	1.5	Current liabilities	$	0.2
Interest rate derivatives	Other assets		0.1	Other assets		36.2	Other liabilities		0.2	Other liabilities		0.9
Total interest rate derivatives			0.1			36.5			1.7			1.1
Commodity derivatives	Current assets		109.5	Current assets		499.2	Current liabilities		104.4	Current liabilities		662.0
Commodity derivatives	Other assets		6.4	Other assets		--	Other liabilities		6.8	Other liabilities		--
Total commodity derivatives			115.9			499.2			111.2			662.0
Total derivatives designated as hedging instruments		$	116.0		$	535.7		$	112.9		$	663.1
Derivatives not designated as hedging instruments
Commodity derivatives	Current assets	$	43.9	Current assets	$	41.9	Current liabilities	$	62.3	Current liabilities	$	75.5
Commodity derivatives	Other assets		1.9	Other assets		0.3	Other liabilities		3.4	Other liabilities		1.9
Total commodity derivatives			45.8			42.2			65.7			77.4
Total derivatives not designated as hedging instruments		$	45.8		$	42.2		$	65.7		$	77.4

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, 2017:
Interest rate derivatives		$	0.1		$	--		$	0.1		$	(0.1	)	$	--	$	--		$	--
Commodity derivatives			161.7			--			161.7			(157.8	)		--		--			3.9
As of December 31, 2016:
Interest rate derivatives		$	36.5		$	--		$	36.5		$	(0.2	)	$	--	$	--		$	36.3
Commodity derivatives			541.4			--			541.4			(526.8	)		--		--			14.6

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, 2017:
Interest rate derivatives		$	1.7		$	--		$	1.7		$	(0.1	)		$	--			$	1.6
Commodity derivatives			176.9			--			176.9			(157.8	)			(17.3	)			1.8
As of December 31, 2016:
Interest rate derivatives		$	1.1		$	--		$	1.1		$	(0.2	)		$	--			$	0.9
Commodity derivatives			739.4			--			739.4			(526.8	)			(212.4	)			0.2

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,
		2017			2016			2015
Interest rate derivatives	Interest expense	$	(0.2	)	$	0.3		$	(1.4	)
Commodity derivatives	Revenue		1.1			(90.5	)		19.1
Total		$	0.9		$	(90.2	)	$	17.7

Derivatives in Fair Value Hedging Relationships	Location	Gain (Loss) Recognized in Income on Hedged Item
		For the Year Ended December 31,
		2017		2016			2015
Interest rate derivatives	Interest expense	$	0.4	$	(0.4	)	$	1.4
Commodity derivatives	Revenue		27.4		125.0			0.2
Total		$	27.8	$	124.6		$	1.6

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,
	2017			2016			2015
Interest rate derivatives	$	(5.7	)	$	42.3		$	--
Commodity derivatives – Revenue (1)		(33.7	)		(197.4	)		217.6
Commodity derivatives – Operating costs and expenses (1)		(4.8	)		3.6			(2.7	)
Total	$	(44.2	)	$	(151.5	)	$	214.9
(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,
		2017			2016			2015
Interest rate derivatives	Interest expense	$	(40.4	)	$	(37.4	)	$	(35.3	)
Commodity derivatives	Revenue		(111.6	)		(53.6	)		231.7
Commodity derivatives	Operating costs and expenses		(0.6	)		0.2			(3.5	)
Total		$	(152.6	)	$	(90.8	)	$	192.9

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,
		2017			2016		2015
Commodity derivatives	Revenue	$	--		$	--	$	4.7
Commodity derivatives	Operating costs and expenses		(1.1	)		0.5		0.1
Total		$	(1.1	)	$	0.5	$	4.8

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,
		2017			2016			2015
Interest rate derivatives	Interest expense	$	--		$	--		$	--
Commodity derivatives	Revenue		(42.7	)		(38.4	)		1.0
Commodity derivatives	Operating costs and expenses		0.1			(0.4	)		0.1
Total		$	(42.6	)	$	(38.8	)	$	1.1

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.

The values for commodity derivatives at December 31, 2017 are presented before and after the application of CME Rule 814, which deems that financial instruments cleared by the CME are settled daily in connection with variation margin payments.  As a result of this new exchange rule, CME-related derivatives are considered to have no fair value at the balance sheet date for financial reporting purposes; however, the derivatives remain outstanding and subject to future commodity price fluctuations until they are settled in accordance with their contractual terms.  The rule change was effective January 1, 2017.

	December 31, 2017 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	$	--		$	0.1		$	--	$	0.1
Commodity derivatives:
Value before application of CME Rule 814		47.1			184.9			2.9		234.9
Impact of CME Rule 814 change		(47.1	)		(26.1	)		--		(73.2	)
Total commodity derivatives		--			158.8			2.9		161.7
Total	$	--		$	158.9		$	2.9	$	161.8
Financial liabilities:
Liquidity Option Agreement	$	--		$	--		$	333.9	$	333.9
Interest rate derivatives		--			1.7			--		1.7
Commodity derivatives:
Value before application of CME Rule 814		118.4			270.6			1.7		390.7
Impact of CME Rule 814 change		(118.4	)		(95.4	)		--		(213.8	)
Total commodity derivatives		--			175.2			1.7		176.9
Total	$	--		$	176.9		$	335.6	$	512.5

	December 31, 2016 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	$	--	$	36.5	$	--	$	36.5
Commodity derivatives		84.5		455.2		1.7		541.4
Total	$	84.5	$	491.7	$	1.7	$	577.9
Financial liabilities:
Liquidity Option Agreement	$	--	$	--	$	269.6	$	269.6
Interest rate derivatives		--		1.1		--		1.1
Commodity derivatives		136.8		602.3		0.3		739.4
Total	$	136.8	$	603.4	$	269.9	$	1,010.1

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	2017			2016
Financial asset (liability) balance, net, January 1		$	(268.2	)	$	(246.7	)
Total gains (losses) included in:
Net income (1)	Revenue		2.3			2.2
Net income	Other expense, net		(64.3	)		(24.5	)
Other comprehensive income (loss)	Commodity derivative instruments – changes in fair value of cash flow hedges		0.1			(0.5	)
Settlements (1)	Revenue		(2.4	)		(0.5	)
Transfers out of Level 3 (2)			(0.2	)		1.8
Financial liability balance, net, December 31 (2)		$	(332.7	)	$	(268.2	)
(1)   There were $0.1 million of unrealized losses and $1.7 million of unrealized gains included in these amounts for the years ended December 31, 2017 and 2016, 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, 2017 and 2016.

Fair Value Measurements, Valuation Techniques

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

	Fair Value At December 31, 2017
	Financial Assets		Financial Liabilities		Valuation Techniques	Unobservable Input	Range
Commodity derivatives – Crude oil	$	2.9	$	1.7	Discounted cash flow	Forward commodity prices	$60.21-$66.05/barrel
Total	$	2.9	$	1.7

	Fair Value At December 31, 2016
	Financial Assets		Financial Liabilities		Valuation Techniques	Unobservable Input	Range
Commodity derivatives – Crude oil	$	1.7	$	0.3	Discounted cash flow	Forward commodity prices	$51.73-$54.77/barrel
Total	$	1.7	$	0.3

Asset Impairment Charges by Segment

The following table summarizes our non-cash asset impairment charges for long-lived assets by segment during each of the periods indicated:

	For the Year Ended December 31,
	2017		2016		2015
NGL Pipelines & Services	$	11.5	$	21.0	$	20.8
Crude Oil Pipelines & Services		10.2		2.3		33.5
Natural Gas Pipelines & Services		14.3		12.3		21.6
Petrochemical & Refined Products Services		1.8		9.6		28.2
Offshore Pipelines & Services		--		--		58.5
Total	$	37.8	$	45.2	$	162.6

Nonrecurring Fair Value Measurements

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, 2017:

			Fair Value Measurements at the End of the Reporting Period Using
	Carrying Value at December 31, 2017		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	$	--	$	--	$	--	$	--	$	16.7
Long-lived assets held and used		1.5		--		--		1.5		15.4
Long-lived assets held for sale		2.5		--		--		2.5		2.5
Long-lived assets disposed of by sale		--		--		--		--		3.2
Total									$	37.8

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, 2016:

			Fair Value Measurements at the End of the Reporting Period Using
	Carrying Value at December 31, 2016		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	$	--	$	--	$	--	$	--	$	29.9
Long-lived assets held and used		8.0		8.0		--		--		2.2
Long-lived assets disposed of by sale		--		--		--		--		13.1
Total									$	45.2

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 and the abandonment of certain natural gas and crude oil pipeline assets in Texas.  The following table presents categories of long-lived assets 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		--		--		--		--		67.0
Total									$	162.6