Employee Incentive Plans (Tables)
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3 Months Ended |
Mar. 31, 2018 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
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Schedule of Amounts Recognized in Consolidated Financial Statements |
Amounts recognized on the consolidated financial statements with respect to these plans are as follows (in millions):
| | | | | | | | | | Three Months Ended March 31, | | 2018 | | 2017 | Cost of unit-based compensation charged to operating expense | $ | 2.0 |
| | $ | 5.0 |
| Cost of unit-based compensation charged to general and administrative expense | 3.1 |
| | 14.4 |
| Total unit-based compensation expense | $ | 5.1 |
| | $ | 19.4 |
| Non-controlling interest in unit-based compensation | $ | 1.9 |
| | $ | 7.3 |
| Amount of related income tax benefit recognized in net income (1) | $ | 0.7 |
| | $ | 4.6 |
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| | (1) | For the three months ended March 31, 2018 and 2017, the amount of related income tax benefit recognized in net income excluded $1.6 million and $2.3 million of income tax expense related to tax deficiencies recorded upon vesting of restricted units. |
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Summary of Restricted Incentive Unit Activity |
A summary of the restricted incentive unit activity for the three months ended March 31, 2018 is provided below: | | | | | | | | | | | | Three Months Ended March 31, 2018 | EnLink Midstream, LLC Restricted Incentive Units: | | Number of Units | | Weighted Average Grant-Date Fair Value | Non-vested, beginning of period | | 1,889,310 |
| | $ | 16.33 |
| Granted (1) | | 838,734 |
| | 15.51 |
| Vested (1)(2) | | (531,143 | ) | | 24.60 |
| Forfeited | | (114,795 | ) | | 11.75 |
| Non-vested, end of period | | 2,082,106 |
| | $ | 14.14 |
| Aggregate intrinsic value, end of period (in millions) | | $ | 30.5 |
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| | (1) | Restricted incentive units typically vest at the end of three years. In March 2018, ENLC granted 194,185 restricted incentive units with a fair value of $3.0 million to officers and certain employees as bonus payments for 2017, and these restricted incentive units vested immediately and are included in the restricted incentive units granted and vested line items. |
| | (2) | Vested units included 171,813 units withheld for payroll taxes paid on behalf of employees. |
A summary of the restricted incentive unit activity for the three months ended March 31, 2018 is provided below: | | | | | | | | | | | | Three Months Ended March 31, 2018 | EnLink Midstream Partners, LP Restricted Incentive Units: | | Number of Units | | Weighted Average Grant-Date Fair Value | Non-vested, beginning of period | | 1,980,224 |
| | $ | 15.81 |
| Granted (1) | | 938,306 |
| | 15.02 |
| Vested (1)(2) | | (574,624 | ) | | 22.32 |
| Forfeited | | (124,301 | ) | | 11.83 |
| Non-vested, end of period | | 2,219,605 |
| | $ | 13.97 |
| Aggregate intrinsic value, end of period (in millions) | | $ | 30.3 |
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| | (1) | Restricted incentive units typically vest at the end of three years. In March 2018, ENLK granted 200,753 restricted incentive units with a fair value of $3.0 million to officers and certain employees as bonus payments for 2017, and these restricted incentive units vested immediately and are included in the restricted incentive units granted and vested line items. |
| | (2) | Vested units included 181,959 units withheld for payroll taxes paid on behalf of employees. |
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Summary of Restricted Units' Aggregate Intrinsic Value |
A summary of the restricted incentive units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) for the three months ended March 31, 2018 and 2017 is provided below (in millions): | | | | | | | | | | | | Three Months Ended March 31, | EnLink Midstream Partners, LP Restricted Incentive Units: | | 2018 | | 2017 | Aggregate intrinsic value of units vested | | $ | 8.7 |
| | $ | 15.3 |
| Fair value of units vested | | $ | 12.8 |
| | $ | 20.5 |
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A summary of the restricted incentive units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) for the three months ended March 31, 2018 and 2017 is provided below (in millions): | | | | | | | | | | | | Three Months Ended March 31, | EnLink Midstream, LLC Restricted Incentive Units: | | 2018 | | 2017 | Aggregate intrinsic value of units vested | | $ | 8.9 |
| | $ | 14.3 |
| Fair value of units vested | | $ | 13.1 |
| | $ | 20.4 |
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Summary of Grant-Date Fair Values |
The following table presents a summary of the grant-date fair value of performance units granted and the related assumptions by performance unit grant date:
| | | | | | EnLink Midstream Partners, LP Performance Units: | | March 2018 | Beginning TSR price | | $ | 15.44 |
| Risk-free interest rate | | 2.38 | % | Volatility factor | | 43.85 | % | Distribution yield | | 10.5 | % |
The following table presents a summary of the grant-date fair value assumptions by performance unit grant date:
| | | | | | EnLink Midstream, LLC Performance Units: | | March 2018 | Beginning TSR price | | $ | 16.55 |
| Risk-free interest rate | | 2.38 | % | Volatility factor | | 51.36 | % | Distribution yield | | 6.7 | % |
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Summary of Performance Units |
The following table presents a summary of the performance units: | | | | | | | | | | | | Three Months Ended March 31, 2018 | EnLink Midstream, LLC Performance Units: | | Number of Units | | Weighted Average Grant-Date Fair Value | Non-vested, beginning of period | | 548,839 |
| | $ | 22.14 |
| Granted | | 223,865 |
| | 21.63 |
| Vested (1) | | (102,555 | ) | | 40.48 |
| Forfeited | | (70,918 | ) | | 17.75 |
| Non-vested, end of period | | 599,231 |
| | $ | 19.33 |
| Aggregate intrinsic value, end of period (in millions) | | $ | 8.8 |
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| | (1) | Vested units included 28,846 units withheld for payroll taxes paid on behalf of employees. |
A summary of the performance units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) for the three months ended March 31, 2018 is provided below (in millions): | | | | | | | | Three Months Ended March 31, | EnLink Midstream, LLC Performance Units: | | 2018 | Aggregate intrinsic value of units vested | | $ | 1.9 |
| Fair value of units vested | | $ | 4.2 |
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The following table presents a summary of the performance units: | | | | | | | | | | | | Three Months Ended March 31, 2018 | EnLink Midstream Partners, LP Performance Units: | | Number of Units | | Weighted Average Grant-Date Fair Value | Non-vested, beginning of period | | 585,285 |
| | $ | 20.52 |
| Granted | | 256,345 |
| | 19.24 |
| Vested (1) | | (115,328 | ) | | 35.39 |
| Forfeited | | (76,351 | ) | | 16.62 |
| Non-vested, end of period | | 649,951 |
| | $ | 17.83 |
| Aggregate intrinsic value, end of period (in millions) | | $ | 8.9 |
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| | (1) | Vested units included 34,069 units withheld for payroll taxes paid on behalf of employees. |
A summary of the performance units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) for the three months ended March 31, 2018 is provided below (in millions): | | | | | | | | Three Months Ended March 31, | EnLink Midstream Partners, LP Performance Units: | | 2018 | Aggregate intrinsic value of units vested | | $ | 2.0 |
| Fair value of units vested | | $ | 4.1 |
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