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Intangible Assets and Goodwill
 3 Months Ended
Mar. 31, 2014
Intangible Assets and Goodwill [Abstract]  
Intangible Assets and Goodwill
Note 8.  Intangible Assets and Goodwill

The following table summarizes our intangible assets by business segment at the dates indicated:

 
 
March 31, 2014
 
 
December 31, 2013
 
 
 
Gross
Value
 
 
Accumulated
Amortization
 
 
Carrying
Value
 
 
Gross
Value
 
 
Accumulated
Amortization
 
 
Carrying
Value
 
NGL Pipelines & Services:
 
 
 
 
 
 
 
 
 
 
 
 
Customer relationship intangibles
 
$
340.8
 
 
$
(170.3
)
 
$
170.5
 
 
$
340.8
 
 
$
(165.7
)
 
$
175.1
 
Contract-based intangibles
 
 
281.3
 
 
 
(175.2
)
 
 
106.1
 
 
 
281.3
 
 
 
(171.2
)
 
 
110.1
 
Segment total
 
 
622.1
 
 
 
(345.5
)
 
 
276.6
 
 
 
622.1
 
 
 
(336.9
)
 
 
285.2
 
Onshore Natural Gas Pipelines & Services:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer relationship intangibles
 
 
1,163.6
 
 
 
(288.5
)
 
 
875.1
 
 
 
1,163.6
 
 
 
(281.2
)
 
 
882.4
 
Contract-based intangibles
 
 
466.1
 
 
 
(335.0
)
 
 
131.1
 
 
 
466.1
 
 
 
(330.7
)
 
 
135.4
 
Segment total
 
 
1,629.7
 
 
 
(623.5
)
 
 
1,006.2
 
 
 
1,629.7
 
 
 
(611.9
)
 
 
1,017.8
 
Onshore Crude Oil Pipelines & Services:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer relationship intangibles
 
 
10.7
 
 
 
(6.6
)
 
 
4.1
 
 
 
10.7
 
 
 
(6.3
)
 
 
4.4
 
Contract-based intangibles
 
 
0.4
 
 
 
(0.3
)
 
 
0.1
 
 
 
0.4
 
 
 
(0.3
)
 
 
0.1
 
Segment total
 
 
11.1
 
 
 
(6.9
)
 
 
4.2
 
 
 
11.1
 
 
 
(6.6
)
 
 
4.5
 
Offshore Pipelines & Services:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer relationship intangibles
 
 
195.8
 
 
 
(147.6
)
 
 
48.2
 
 
 
203.9
 
 
 
(150.0
)
 
 
53.9
 
Contract-based intangibles
 
 
1.2
 
 
 
(0.4
)
 
 
0.8
 
 
 
1.2
 
 
 
(0.4
)
 
 
0.8
 
Segment total
 
 
197.0
 
 
 
(148.0
)
 
 
49.0
 
 
 
205.1
 
 
 
(150.4
)
 
 
54.7
 
Petrochemical & Refined Products Services:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customer relationship intangibles
 
 
104.3
 
 
 
(39.5
)
 
 
64.8
 
 
 
104.3
 
 
 
(38.2
)
 
 
66.1
 
Contract-based intangibles
 
 
39.9
 
 
 
(6.3
)
 
 
33.6
 
 
 
39.9
 
 
 
(6.0
)
 
 
33.9
 
Segment total
 
 
144.2
 
 
 
(45.8
)
 
 
98.4
 
 
 
144.2
 
 
 
(44.2
)
 
 
100.0
 
Total all segments
 
$
2,604.1
 
 
$
(1,169.7
)
 
$
1,434.4
 
 
$
2,612.2
 
 
$
(1,150.0
)
 
$
1,462.2
 

The following table presents the amortization expense of our intangible assets by business segment for the periods indicated:

 
 
For the Three Months
 
 
 
Ended March 31,
 
 
 
2014
 
 
2013
 
NGL Pipelines & Services
 
$
8.6
 
 
$
9.6
 
Onshore Natural Gas Pipelines & Services
 
 
11.6
 
 
 
12.4
 
Onshore Crude Oil Pipelines & Services
 
 
0.3
 
 
 
0.3
 
Offshore Pipelines & Services
 
 
2.6
 
 
 
3.0
 
Petrochemical & Refined Products Services
 
 
1.6
 
 
 
1.6
 
Total
 
$
24.7
 
 
$
26.9
 

The following table presents our forecast of amortization expense associated with existing intangible assets for the periods indicated:

Remainder
of 2014
 
 
2015
 
 
2016
 
 
2017
 
 
2018
 
$
69.3
 
 
$
85.3
 
 
$
80.9
 
 
$
85.4
 
 
$
88.8
 

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.  The following table presents changes in the carrying amount of goodwill during the three months ended March 31, 2014:

 
 
NGL
Pipelines
& Services
 
 
Onshore
Natural Gas
Pipelines
& Services
 
 
Onshore
Crude Oil
Pipelines
& Services
 
 
Offshore
Pipelines
& Services
 
 
Petrochemical
& Refined
Products
Services
 
 
Consolidated
Total
 
Balance at December 31, 2013 (1)
 
$
341.2
 
 
$
296.3
 
 
$
305.1
 
 
$
82.1
 
 
$
1,055.3
 
 
$
2,080.0
 
Reclassification to assets held for sale
 
 
--
 
 
 
--
 
 
 
--
 
 
 
(0.1
)
 
 
--
 
 
 
(0.1
)
Reclassification of goodwill
 
 
520.0
 
 
 
--
 
 
 
--
 
 
 
--
 
 
 
(520.0
)
 
 
--
 
Balance at March 31, 2014 (1)
 
$
861.2
 
 
$
296.3
 
 
$
305.1
 
 
$
82.0
 
 
$
535.3
 
 
$
2,079.9
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)   The total carrying amount of goodwill at March 31, 2014 and December 31, 2013 is net of $1.3 million of accumulated impairment charges. No goodwill impairment charges were recorded during the three months ended March 31, 2014.
 

In January 2014, our Appalachia-to-Texas Express ("ATEX") ethane pipeline commenced operations.  In addition to construction of new assets, this project involved repurposing portions of the TE Products Pipeline to accommodate the southbound delivery of ethane produced from the Marcellus and Utica Shales to the U.S. Gulf Coast. The repurposed assets were reclassified from the Petrochemical & Refined Products Services business segment to the NGL Pipelines & Services business segment in January 2014 when the ATEX pipeline commenced operations.  Pipeline assets that continue to be utilized by the TE Products Pipeline in the northbound delivery of refined products and other hydrocarbons from the U.S. Gulf Coast remain in the Petrochemical & Refined Products Services business segment.

In total, the carrying value of the fixed assets at January 1, 2014 that were transferred from the TE Products Pipeline to the ATEX pipeline was $73.7 million.  Based on the relative fair values of the assets involved, we also transferred $520.0 million of goodwill from the Petrochemical & Refined Products Services business segment to the NGL Pipelines & Services business segment.  The relative fair values of the segment assets were determined based on assumptions regarding the future economic prospects of the ATEX pipeline versus the other assets that would remain in the associated reporting unit.  These assumptions included: (i) discrete financial forecasts for the pipelines and related businesses contained within the reporting unit, which, in turn, relied on management's estimates of future operating margins, throughput volumes and similar factors; (ii) long-term growth rates for cash flows beyond the discrete forecast period; and (iii) appropriate discount rates.  We believe our assumptions are consistent with those that market participants would utilize in estimating the reporting unit's fair value.