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Intangible Assets and Goodwill (Tables)
 12 Months Ended
Dec. 31, 2012
Intangible Assets and Goodwill [Abstract]  
Intangible Assets by Segment
The following table summarizes our intangible assets by business segment at the dates indicated:

 
 
December 31, 2012
  
December 31, 2011
 
 
 
Gross
Value
  
Accumulated
Amortization
  
Carrying
Value
  
Gross
Value
  
Accumulated
Amortization
  
Carrying
Value
 
NGL Pipelines & Services:
 
  
  
  
  
  
 
Customer relationship intangibles
 
$
340.8
  
$
(147.6
)
 
$
193.2
  
$
340.8
  
$
(128.2
)
 
$
212.6
 
Contract-based intangibles
  
284.6
   
(157.2
)
  
127.4
   
298.4
   
(169.7
)
  
128.7
 
Segment total
  
625.4
   
(304.8
)
  
320.6
   
639.2
   
(297.9
)
  
341.3
 
Onshore Natural Gas Pipelines & Services:
                        
Customer relationship intangibles
  
1,163.6
   
(250.0
)
  
913.6
   
1,163.6
   
(209.7
)
  
953.9
 
Contract-based intangibles
  
466.1
   
(311.8
)
  
154.3
   
464.8
   
(290.9
)
  
173.9
 
Segment total
  
1,629.7
   
(561.8
)
  
1,067.9
   
1,628.4
   
(500.6
)
  
1,127.8
 
Onshore Crude Oil Pipelines & Services:
                        
Customer relationship intangibles
  
10.7
   
(4.9
)
  
5.8
   
9.7
   
(4.1
)
  
5.6
 
Contract-based intangibles
  
0.4
   
(0.3
)
  
0.1
   
0.4
   
(0.2
)
  
0.2
 
Segment total
  
11.1
   
(5.2
)
  
5.9
   
10.1
   
(4.3
)
  
5.8
 
Offshore Pipelines & Services:
                        
Customer relationship intangibles
  
203.9
   
(138.5
)
  
65.4
   
205.8
   
(129.2
)
  
76.6
 
Contract-based intangibles
  
1.2
   
(0.4
)
  
0.8
   
1.2
   
(0.3
)
  
0.9
 
Segment total
  
205.1
   
(138.9
)
  
66.2
   
207.0
   
(129.5
)
  
77.5
 
Petrochemical & Refined Products Services:
                        
Customer relationship intangibles
  
104.3
   
(33.4
)
  
70.9
   
104.3
   
(28.4
)
  
75.9
 
Contract-based intangibles
  
41.2
   
(5.9
)
  
35.3
   
57.6
   
(29.7
)
  
27.9
 
Segment total
  
145.5
   
(39.3
)
  
106.2
   
161.9
   
(58.1
)
  
103.8
 
Total all segments
 
$
2,616.8
  
$
(1,050.0
)
 
$
1,566.8
  
$
2,646.6
  
$
(990.4
)
 
$
1,656.2
 
Amortization Expense of Intangible Assets by Segment
The following table presents the amortization expense of our intangible assets by business segment for the periods presented:

 
 
For Year Ended December 31,
 
 
 
2012
  
2011
  
2010
 
NGL Pipelines & Services
 
$
39.7
  
$
41.1
  
$
40.1
 
Onshore Natural Gas Pipelines & Services
  
63.4
   
77.1
   
72.7
 
Onshore Crude Oil Pipelines & Services
  
0.9
   
0.4
   
0.4
 
Offshore Pipelines & Services
  
11.3
   
11.2
   
12.8
 
Petrochemical & Refined Products Services
  
10.4
   
17.2
   
11.6
 
Total
 
$
125.7
  
$
147.0
  
$
137.6
 
Forecasted Amortization Expense
The following table presents our forecast of amortization expense associated with existing intangible assets for the years indicated:

2013
  
2014
  
2015
  
2016
  
2017
 
$
107.9
  
$
96.2
  
$
90.3
  
$
92.1
  
$
96.0
 
Significant Acquired Intangible Assets
§
State Line and Fairplay customer relationships – We acquired these customer relationships in connection with our acquisition of the State Line and Fairplay natural gas gathering systems in May 2010 (see Note 10).  The carrying values of these intangible assets at December 31, 2012 are presented in the following table:

 
 
Gross
Value
 
 
Accumulated
Amortization
 
 
Carrying
Value
 
State Line natural gas gathering customer relationships (1)
 
$
675.0
 
 
$
(52.8
)
 
$
622.2
 
Fairplay natural gas gathering customer relationships (1)
 
 
116.6
 
 
 
(18.2
)
 
 
98.4
 
Fairplay natural gas processing customer relationships (2)
 
 
103.4
 
 
 
(16.1
)
 
 
87.3
 
Total acquired customer relationships
 
$
895.0
 
 
$
(87.1
)
 
$
807.9
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)   These natural gas gathering customer relationship intangible assets are a component of our Onshore Natural Gas Pipelines & Services business segment.
(2)   The Fairplay natural gas processing customer relationship intangible assets are a component of our NGL Pipelines & Services business segment.
 
Changes in Carrying Amount of Goodwill
Goodwill represents the excess of the purchase price of an acquired business over the amounts assigned to assets acquired and liabilities assumed in the transaction.  Goodwill is not amortized; however, it is subject to annual impairment testing at the end of each fiscal year, and more frequently, if circumstances indicate it is probable that the fair value of goodwill is below its carrying amount.  The following table presents changes in the carrying amount of goodwill during the periods presented:

 
 
NGL
Pipelines
& Services
 
 
Onshore
Natural Gas
Pipelines
& Services
 
 
Onshore
Crude Oil
Pipelines
& Services
 
 
Offshore
Pipelines
& Services
 
 
Petrochemical
& Refined
Products
Services
 
 
Consolidated
Total
 
Balance at January 1, 2010 (1)
 
$
341.2
 
 
$
284.9
 
 
$
303.0
 
 
$
82.1
 
 
$
1,007.1
 
 
$
2,018.3
 
Goodwill related to acquisitions (2)
 
 
--
 
 
 
26.2
 
 
 
8.2
 
 
 
--
 
 
 
55.0
 
 
 
89.4
 
Balance at December 31, 2010
 
 
341.2
 
 
 
311.1
 
 
 
311.2
 
 
 
82.1
 
 
 
1,062.1
 
 
 
2,107.7
 
Goodwill adjustment (3)
 
 
--
 
 
 
--
 
 
 
--
 
 
 
--
 
 
 
(0.6
)
 
 
(0.6
)
Goodwill related to the sale of assets (4)
 
 
--
 
 
 
(14.8
)
 
 
--
 
 
 
--
 
 
 
--
 
 
 
(14.8
)
Balance at December 31, 2011
 
 
341.2
 
 
 
296.3
 
 
 
311.2
 
 
 
82.1
 
 
 
1,061.5
 
 
 
2,092.3
 
Reclassification to assets held for sale
 
 
--
 
 
 
--
 
 
 
--
 
 
 
--
 
 
 
(5.5
)
 
 
(5.5
)
Balance at December 31, 2012
 
$
341.2
 
 
$
296.3
 
 
$
311.2
 
 
$
82.1
 
 
$
1,056.0
 
 
$
2,086.8
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)   The total carrying amount of goodwill at January 1, 2010 is net of $1.3 million of accumulated impairment charges incurred prior to 2010. No goodwill impairment charges were recorded during the three years ended December 31, 2012.
(2)   Amount presented for Petrochemical & Refined Products Services includes $5.5 million of goodwill that was part of the drop down of trucking assets from EPCO (see Note 15).
(3)   The goodwill we recorded in connection with a marine business acquisition completed in November 2010 was subsequently reduced in May 2011 due to a purchase price adjustment.
(4)   In December 2011, we disposed of our ownership interests in Crystal (see Note 8), including related goodwill.
 
Goodwill Recorded in Connection to Business Combination
The following table summarizes goodwill amounts we recorded in connection with business combinations and asset drop-down transactions during the year ended December 31, 2010:

Goodwill related to acquisition of:
State Line and Fairplay Natural Gas Gathering Systems
$
26.2
Marine shipyard business
49.5
Drop-down of trucking assets from EPCO (see Note 15)
5.5
Other
8.2
Total (1)
$
89.4
 
(1)   We attribute these goodwill amounts to our ability to leverage the acquired businesses with our existing asset base to create future business opportunities.