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Equity-based Awards | 9 Months Ended
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Sep. 30, 2013
Equity-based Awards [Abstract] |
Equity-based Awards | Note 3. Equity-based Awards An allocated portion of the fair value of EPCO's equity-based awards is charged to us under the ASA. The following table summarizes the compensation expense we recognized in connection with equity-based awards for the periods indicated:
|  | For the Three Months |  |  | For the Nine Months |
|  | Ended September 30, |  |  | Ended September 30, |
|  | 2013 |  |  | 2012 |  |  | 2013 |  |  | 2012 |
Restricted common unit awards |  | $ | 17.8 |  |  | $ | 13.8 |  |  | $ | 52.7 |  |  | $ | 44.3 |
Unit option awards |  |  | 0.1 |  |  |  | 0.2 |  |  |  | 0.7 |  |  |  | 1.2 |
Other (1) |  |  | 0.1 |  |  |  | 0.2 |  |  |  | 0.4 |  |  |  | 1.6 |
Total |  | $ | 18.0 |  |  | $ | 14.2 |  |  | $ | 53.8 |  |  | $ | 47.1 |
(1) Primarily represents expense associated with unit appreciation rights ("UARs"), phantom units and similar awards. |
The fair value of equity-classified awards (e.g., restricted common unit and unit option awards) is amortized to earnings over the requisite service or vesting period. Compensation expense for liability-classified awards (e.g., UARs and phantom units) is recognized over the requisite service or vesting period based on the fair value of the award remeasured at each reporting date. Liability-classified awards are settled in cash upon vesting. At September 30, 2013, EPCO's significant long-term incentive plans applicable to us were the Enterprise Products 1998 Long-Term Incentive Plan ("1998 Plan") and the 2008 Enterprise Products Long-Term Incentive Plan (Third Amendment and Restatement) ("2008 Plan"). In September 2013, our unitholders approved the third amendment and restatement of the 2008 Plan, which was also approved by the Audit and Conflicts Committee (the "AC Committee") of the board of directors of our general partner. The 2008 Plan (as amended and restated) is a long-term incentive plan under which any employee or consultant of EPCO, us or our affiliates that provides services to us, directly or indirectly, may receive incentive compensation awards in the form of options, restricted units, phantom units, distribution equivalent rights, UARs, unit awards, other unit-based awards or substitute awards. Non-employee directors of our general partner may also participate in the 2008 Plan. The 2008 Plan is administered by the AC Committee, which has significant authority thereunder to, among other things, (i) designate participants; (ii) determine the type or types of award(s) and the number of common units to be covered by any award; (iii) determine the terms and conditions of any award; and (iv) determine whether, to what extent and under what circumstances participants may settle, exercise, cancel or forfeit any award. The maximum number of common units available for issuance under the 2008 Plan is currently 10,000,000, and will automatically increase under the terms of the 2008 Plan by 2,500,000 common units per year, beginning on January 1, 2014 and subsequently on each January 1 thereafter during the term of the 2008 Plan; provided, however, that in no event shall the maximum aggregate number exceed 35,000,000 common units. The 2008 Plan is effective until September 30, 2023 or, if earlier, at the time that all available common units under the 2008 Plan have been delivered to participants or the time of termination of the 2008 Plan by the board of directors of EPCO or by the AC Committee. After giving effect to awards granted under the 1998 Plan and 2008 Plan through September 30, 2013 and the September 2013 amendments reflected in the 2008 Plan, a total of 1,151,778 and 4,333,287 additional common units could be issued under these plans, respectively, as of September 30, 2013. Restricted Common Unit Awards Restricted common unit awards allow recipients to acquire our common units (at no cost to the recipient apart from service or other conditions) once a defined vesting period expires, subject to customary forfeiture provisions. As used in the context of EPCO's long-term incentive plans, the term "restricted common unit" represents a time-vested unit. Restricted common unit awards generally vest at a rate of 25% per year beginning one year after the grant date. Such awards are non-vested until the required service period expires. Restricted common units are included in the number of common units presented on our Unaudited Condensed Consolidated Balance Sheets. The fair value of a restricted common unit award is based on the market price per unit of the underlying security on the date of grant. Compensation expense is recognized based on the grant date fair value, net of an allowance for estimated forfeitures, over the requisite service or vesting period. The following table presents information regarding restricted common unit awards for the period indicated:
|  | Number of Units |  |  | Weighted- Average Grant Date Fair Value per Unit (1) |
Restricted common units at December 31, 2012 |  |  | 3,893,486 |  |  | $ | 40.87 |
Granted (2,3) |  |  | 1,769,076 |  |  | $ | 57.20 |
Vested (3) |  |  | (1,846,198 | ) |  | $ | 34.77 |
Forfeited |  |  | (159,832 | ) |  | $ | 47.40 |
Restricted common units at September 30, 2013 |  |  | 3,656,532 |  |  | $ | 51.56 |
(1) Determined by dividing the aggregate grant date fair value of awards (before an allowance for forfeitures) by the number of awards issued. (2) The aggregate grant date fair value of restricted common unit awards issued during 2013 was $101.2 million based on a grant date market price of our common units ranging from $57.11 to $61.58 per unit. An estimated annual forfeiture rate of 3.9% was applied to these awards. (3) Includes awards granted to the independent directors of the board of directors of Enterprise GP as part of their annual compensation for 2013. A total of 9,296 restricted common unit awards were issued to the independent directors of Enterprise GP, which immediately vested upon issuance. |
Typically, each recipient is also entitled to nonforfeitable cash distributions equal to the product of the number of restricted common units outstanding for the participant and the cash distribution per unit paid to limited partners. Since these restricted common units are participating securities, such distributions are included in "Cash distributions paid to limited partners" as presented on our Unaudited Condensed Statements of Consolidated Cash Flows. The following table presents supplemental information regarding restricted common unit awards for the periods indicated:
|  | For the Three Months |  |  | For the Nine Months |
|  | Ended September 30, |  |  | Ended September 30, |
|  | 2013 |  |  | 2012 |  |  | 2013 |  |  | 2012 |
Cash distributions paid to restricted common unitholders |  | $ | 2.6 |  |  | $ | 2.5 |  |  | $ | 8.2 |  |  | $ | 7.9 |
Total intrinsic value of restricted common unit awards that vested during period |  |  | 1.0 |  |  |  | 1.5 |  |  |  | 107.4 |  |  |  | 64.2 |
For the EPCO group of companies, the unrecognized compensation cost associated with restricted common unit awards was an aggregate $91.3 million at September 30, 2013, of which our allocated share of the cost is currently estimated to be $83.4 million. We expect to recognize our share of the unrecognized compensation cost for these awards over a weighted-average period of 2.0 years. Unit Option Awards EPCO's long-term incentive plans provide for the issuance of non-qualified incentive options. These unit option awards are denominated in our common units. When issued, the exercise price of each unit option award may be no less than the market price of our common units on the date of grant. In general, unit option awards have a vesting period of four years from the date of grant and expire at the end of the calendar year following the year of vesting (e.g., an option vesting on May 29, 2012 will expire on December 31, 2013). However, unit option awards only become exercisable at certain times during the calendar year following the year in which they vest (typically the months of February, May, August and November). The fair value of each unit option award is estimated on the date of grant using a Black-Scholes option pricing model. Compensation expense recorded in connection with unit option awards is based on the grant date fair value, net of an allowance for estimated forfeitures, over the requisite service or vesting period. The following table presents unit option award activity for the period indicated:
|  | Number of Units |  |  | Weighted- Average Strike Price (dollars/unit) |  |  | Weighted- Average Remaining Contractual Term (in years) |  |  | Aggregate Intrinsic Value (1) |
Unit option awards at December 31, 2012 |  |  | 2,761,140 |  |  | $ | 27.41 |  |  |  | 2.0 |  |  | $ | 13.0 |
Exercised |  |  | (736,140 | ) |  | $ | 29.95 |  |  |  |  |  |  |  |  |
Unit option awards at September 30, 2013 |  |  | 2,025,000 |  |  | $ | 26.49 |  |  |  | 1.6 |  |  | $ | 50.0 |
Options exercisable at September 30, 2013 |  |  | -- |  |  | $ | -- |  |  |  | -- |  |  | $ | -- |
(1) Aggregate intrinsic value reflects fully vested unit option awards at the date indicated. |
In order to fund its unit option award-related obligations, EPCO may purchase common units at fair value either in the open market or directly from us. When employees exercise unit option awards, we reimburse EPCO for the cash difference between the strike price paid by the employee and the actual purchase price paid by EPCO for the units issued to the employee. The following table presents supplemental information regarding unit option awards during the periods indicated:
|  | For the Nine Months |
|  | Ended September 30, |
|  | 2013 |  |  | 2012 |
Total intrinsic value of unit option awards exercised during period |  | $ | 19.8 |  |  | $ | 14.0 |
Cash received from EPCO in connection with the exercise of unit option awards |  |  | 11.5 |  |  |  | 10.2 |
Unit option award-related cash reimbursements to EPCO |  |  | 19.8 |  |  |  | 14.0 |
There were no option exercises or related cash receipts or reimbursements during the three months ended September 30, 2013 or 2012. For the EPCO group of companies, the unrecognized compensation cost associated with unit option awards was an aggregate $0.2 million at September 30, 2013. We expect to be allocated substantially all of the cost of these awards over a weighted-average period of 0.4 years.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 + Details
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