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Property, Plant and Equipment and Intangible Assets
9 Months Ended
Sep. 30, 2019
Property Plant And Equipment And Intangible Assets [Abstract]  
Property, Plant and Equipment and Intangible Assets

Note 6 — Property, Plant and Equipment and Intangible Assets

 

 

 

September 30, 2019

 

 

December 31, 2018

 

 

Estimated Useful Lives (In Years)

Gathering systems

 

$

8,767.6

 

 

$

7,547.9

 

 

5 to 20

Processing and fractionation facilities

 

 

4,968.0

 

 

 

4,007.7

 

 

5 to 25

Terminaling and storage facilities

 

 

1,459.1

 

 

 

1,138.7

 

 

5 to 25

Transportation assets

 

 

2,221.9

 

 

 

445.1

 

 

10 to 50

Other property, plant and equipment

 

 

302.2

 

 

 

334.5

 

 

3 to 25

Land

 

 

154.4

 

 

 

144.3

 

 

Construction in progress

 

 

1,675.9

 

 

 

3,602.5

 

 

Finance lease right-of-use assets

 

 

46.9

 

 

 

 

 

Property, plant and equipment

 

 

19,596.0

 

 

 

17,220.7

 

 

 

Accumulated depreciation and amortization

 

 

(4,899.1

)

 

 

(4,292.3

)

 

 

Property, plant and equipment, net

 

$

14,696.9

 

 

$

12,928.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intangible assets

 

$

2,736.6

 

 

$

2,736.6

 

 

10 to 20

Accumulated amortization

 

 

(882.2

)

 

 

(753.4

)

 

 

Intangible assets, net

 

$

1,854.4

 

 

$

1,983.2

 

 

 

 

During the preparation of the Company's first quarter 2019 consolidated financial statements, the Company identified an error related to depreciation expense on certain assets that should have been placed in-service during 2018. The Company does not believe this error is material to its previously issued historical consolidated financial statements for any of the periods impacted and accordingly, has not adjusted the historical financial statements. The Company recorded the cumulative impact of the adjustment in the period of identification, resulting in a one-time $12.5 million overstatement of depreciation expense.

 

During the three and nine months ended September 30, 2019, depreciation expense was $201.4 million and $590.1 million. During the three and nine months ended September 30, 2018, depreciation expense was $161.7 million and $470.9 million.

 

Intangible Assets

 

Intangible assets consist of customer contracts and customer relationships acquired in prior business combinations. The fair value of these acquired intangible assets were determined at the date of acquisition based on the present values of estimated future cash flows. Amortization expense attributable to these assets is recorded over the periods in which we benefit from services provided to customers.

 

The estimated annual amortization expense for intangible assets is approximately $171.6 million, $159.4 million, $149.5 million, $141.2 million and $136.0 million for each of the years 2019 through 2023.

 

The changes in our intangible assets are as follows:

 

 

 

 

 

 

Balance at December 31, 2018

 

$

1,983.2

 

Amortization

 

 

(128.8

)

Balance at September 30, 2019

 

$

1,854.4