XML 95 R34.htm IDEA: XBRL DOCUMENT v2.4.0.8
Property, Plant and Equipment (Tables)
 12 Months Ended
Dec. 31, 2013
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment and Accumulated Depreciation
The historical costs of our property, plant and equipment and related accumulated depreciation balances were as follows at the dates indicated:

 
Estimated
 
December 31,
 
 
 
Useful Life
in Years
 
2013
  
2012
 
Plants, pipelines and facilities (1)
  
3-45
 
(6)
$
27,540.4
  
$
25,382.4
 
Underground and other storage facilities (2)
  
5-40
 
(7) 
2,101.8
   
1,826.3
 
Platforms and facilities (3)
  
20-31
   
659.6
   
635.2
 
Transportation equipment (4)
  
3-10
   
138.9
   
136.2
 
Marine vessels (5)
  
15-30
   
744.8
   
695.0
 
Land
      
176.6
   
167.2
 
Construction in progress
      
2,655.5
   
2,113.1
 
Total
      
34,017.6
   
30,955.4
 
Less accumulated depreciation
      
7,071.0
   
6,109.0
 
Property, plant and equipment, net
     
$
26,946.6
  
$
24,846.4
 
 
(1)
Plants and pipelines include processing plants; NGL, natural gas, crude oil and petrochemical and refined products pipelines; terminal loading and unloading facilities; office furniture and equipment; buildings; laboratory and shop equipment and related assets.
(2)
Underground and other storage facilities include underground product storage caverns; above ground storage tanks; water wells and related assets.
(3)
Platforms and facilities include offshore platforms and related facilities and other associated assets located in the Gulf of Mexico.
(4)
Transportation equipment includes tractor-trailer tank trucks and other vehicles and similar assets used in our operations.
(5)
Marine vessels include tow boats, barges and related equipment used in our marine transportation business.
(6)
In general, the estimated useful lives of major assets within this category are: processing plants, 20-35 years; pipelines and related equipment, 5-45 years; terminal facilities, 10-35 years; office furniture and equipment, 3-20 years; buildings, 20-40 years; and laboratory and shop equipment, 5-35 years.
(7)
In general, the estimated useful lives of assets within this category are: underground storage facilities, 5-35 years; storage tanks, 10-40 years; and water wells, 5-35 years.
 
Depreciation Expense and Capitalized Interest
The following table summarizes our depreciation expense and capitalized interest amounts for the periods indicated:

 
 
For the Year Ended December 31,
 
 
 
2013
  
2012
  
2011
 
Depreciation expense (1)
 
$
1,012.4
  
$
900.5
  
$
776.6
 
Capitalized interest (2)
  
133.0
   
116.8
   
106.7
 
(1)
Depreciation expense is a component of "Costs and expenses" as presented on our Statements of Consolidated Operations.
(2)
We capitalize interest costs incurred on funds used to construct property, plant and equipment while the asset is in its construction phase. The capitalized interest is recorded as part of the asset to which it relates and is amortized over the asset's estimated useful life as a component of depreciation expense. When capitalized interest is recorded, it reduces interest expense from what it would be otherwise.
 
AROs
The following table presents information regarding our AROs for the periods indicated:

 
 
For the Year Ended December 31,
 
 
 
2013
  
2012
  
2011
 
Balance at beginning of period
 
$
105.2
  
$
112.0
  
$
97.1
 
Liabilities incurred
  
1.7
   
1.7
   
0.7
 
Liabilities settled
  
(14.2
)
  
(27.8
)
  
(7.3
)
Revisions in estimated cash flows
  
(8.6
)
  
13.7
   
15.0
 
Accretion expense
  
6.1
   
5.6
   
6.5
 
Balance at end of period
 
$
90.2
  
$
105.2
  
$
112.0
 
 
Forecasted Accretion Expense Associated with AROs
The following table presents our forecast of accretion expense for the periods indicated:

2014
 
2015
 
2016
 
2017
 
2018
 
 
$
6.1
  
$
6.5
  
$
6.9
  
$
7.4
  
$
8.0