XML 34 R11.htm IDEA: XBRL DOCUMENT v3.3.1.900
Investments in Non-Controlled Entities Investments in Non-Controlled Entities (Notes)
 12 Months Ended
Dec. 31, 2015
Equity Method Investments and Joint Ventures [Abstract]  
Investments in Non-Controlled Entities [Text Block]
Investments in Non-Controlled Entities

Our investments in non-controlled entities at December 31, 2015 were comprised of:
Entity
 
Ownership Interest
BridgeTex Pipeline Company, LLC ("BridgeTex")
 
50%
Double Eagle Pipeline LLC ("Double Eagle")
 
50%
Osage Pipe Line Company, LLC ("Osage")
 
50%
Powder Springs Logistics, LLC ("Powder Springs")
 
50%
Saddlehorn Pipeline Company, LLC ("Saddlehorn")
 
40%
Seabrook Logistics, LLC ("Seabrook")
 
50%
Texas Frontera, LLC ("Texas Frontera")
 
50%
The fixed management fees we have recognized from BridgeTex, Osage, Powder Springs, Saddlehorn, Seabrook and Texas Frontera are reported as affiliate management fee revenue on our consolidated statements of income.  In addition, we receive reimbursement from certain of our joint ventures for costs incurred during construction. During 2015, we received construction cost reimbursements of $1.2 million and $0.1 million from Saddlehorn and Powder Springs, respectively, which were recorded as reductions to costs and expenses on our consolidated statements of income.

At December 31, 2014, we recognized a liability of $2.2 million to BridgeTex primarily for pre-paid construction management fees (no liability was recognized at December 31, 2015). For the year ended December 31, 2014 and 2015, respectively, we recognized pipeline capacity lease revenue from BridgeTex of $2.6 million and $34.6 million, which we included in transportation and terminals revenue on our consolidated statements of income. We recognized a $2.6 million receivable from BridgeTex at December 31, 2014, and no receivable was outstanding at December 31, 2015.

In third quarter 2015, we purchased surplus pipe from BridgeTex for the amount of $0.6 million. We sold a portion of the pipe purchased from BridgeTex to Saddlehorn for $0.2 million.

We recognized throughput revenue from Double Eagle for the year ended December 31, 2014 and 2015, respectively, of $2.7 million and $3.4 million, which we included in transportation and terminals revenue on our consolidated statements of income.  At December 31, 2014 and 2015, respectively, we recognized a $0.3 million and $0.2 million trade accounts receivable from Double Eagle.

The financial results from Texas Frontera are included in our marine storage segment, the financial results from BridgeTex, Double Eagle, Osage, Saddlehorn and Seabrook are included in our crude oil segment and the financial results from Powder Springs are included in our refined products segment as earnings/losses of non-controlled entities.

A summary of our investments in non-controlled entities follows (in thousands):
 
 
BridgeTex
 
All Others
 
Consolidated
Investments at December 31, 2014
 
$
489,348

 
$
124,519

 
$
613,867

Additional investment
 
16,605

 
149,113

 
165,718

Earnings of non-controlled entities:
 
 
 
 
 

Proportionate share of earnings
 
60,446

 
8,826

 
69,272

Amortization of excess investment and capitalized interest
 
(2,039
)
 
(750
)
 
(2,789
)
Earnings of non-controlled entities
 
58,407

 
8,076

 
66,483

Less:
 
 
 
 
 
 
Distributions of earnings from investments in non-controlled entities
 
58,407

 
7,878

 
66,285

Distributions in excess of earnings of non-controlled entities
 
10,686

 
3,469

 
14,155

Investments at December 31, 2015
 
$
495,267

 
$
270,361

 
$
765,628


Summarized financial information of our non-controlled entities follows (in thousands):
 
 
December 31, 2014
 
December 31, 2015
 
 
BridgeTex
 
All Others
 
Consolidated
 
BridgeTex
 
All Others
 
Consolidated
Current assets
 
$
66,409

 
$
11,032

 
$
77,441

 
$
46,856

 
$
111,272

 
$
158,128

Noncurrent assets
 
821,323

 
210,587

 
1,031,910

 
809,676

 
573,718

 
1,383,394

Total assets
 
$
887,732

 
$
221,619

 
$
1,109,351

 
$
856,532

 
$
684,990

 
$
1,541,522

Current liabilities
 
$
71,066

 
$
4,724

 
$
75,790

 
$
23,570

 
$
125,661

 
$
149,231

Noncurrent liabilities
 
94

 
1,783

 
1,877

 
462

 
7,257

 
7,719

Total liabilities
 
$
71,160

 
$
6,507

 
$
77,667

 
$
24,032

 
$
132,918

 
$
156,950

Equity
 
$
816,572

 
$
215,112

 
$
1,031,684

 
$
832,500

 
$
552,072

 
$
1,384,572



 
 
Year Ended December 31, 2013
 
 
BridgeTex
 
All Others
 
Consolidated
Revenue
 
$
—

 
$
29,333

 
$
29,333

Net income (loss)
 
$
(40
)
 
$
13,571

 
$
13,531

 
 
 
 
 
 
 
 
 
Year Ended December 31, 2014
 
 
BridgeTex
 
All Others
 
Consolidated
Revenue
 
$
49,200

 
$
34,856

 
$
84,056

Net income
 
$
30,696

 
$
10,583

 
$
41,279

 
 
 
 
 
 
 
 
 
Year Ended December 31, 2015
 
 
BridgeTex
 
All Others
 
Consolidated
Revenue
 
$
200,214

 
$
46,627

 
$
246,841

Net income
 
$
120,890

 
$
17,567

 
$
138,457