XML 75 R15.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Intangible Assets and Goodwill | 9 Months Ended
--- | ---
Sep. 30, 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:
|  | September 30, 2014 |  |  | December 31, 2013 |
|  | Gross Value |  |  | Accumulated Amortization |  |  | Carrying Value |  |  | Gross Value |  |  | Accumulated Amortization |  |  | Carrying Value |
NGL Pipelines & Services: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer relationship intangibles |  | $ | 340.8 |  |  | $ | (179.0 | ) |  | $ | 161.8 |  |  | $ | 340.8 |  |  | $ | (165.7 | ) |  | $ | 175.1 |
Contract-based intangibles |  |  | 277.9 |  |  |  | (175.1 | ) |  |  | 102.8 |  |  |  | 281.3 |  |  |  | (171.2 | ) |  |  | 110.1 |
Segment total |  |  | 618.7 |  |  |  | (354.1 | ) |  |  | 264.6 |  |  |  | 622.1 |  |  |  | (336.9 | ) |  |  | 285.2 |
Onshore Natural Gas Pipelines & Services: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer relationship intangibles |  |  | 1,163.6 |  |  |  | (302.3 | ) |  |  | 861.3 |  |  |  | 1,163.6 |  |  |  | (281.2 | ) |  |  | 882.4 |
Contract-based intangibles |  |  | 466.0 |  |  |  | (343.7 | ) |  |  | 122.3 |  |  |  | 466.1 |  |  |  | (330.7 | ) |  |  | 135.4 |
Segment total |  |  | 1,629.6 |  |  |  | (646.0 | ) |  |  | 983.6 |  |  |  | 1,629.7 |  |  |  | (611.9 | ) |  |  | 1,017.8 |
Onshore Crude Oil Pipelines & Services: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer relationship intangibles |  |  | 9.6 |  |  |  | (6.1 | ) |  |  | 3.5 |  |  |  | 10.7 |  |  |  | (6.3 | ) |  |  | 4.4 |
Contract-based intangibles |  |  | 0.4 |  |  |  | (0.3 | ) |  |  | 0.1 |  |  |  | 0.4 |  |  |  | (0.3 | ) |  |  | 0.1 |
Segment total |  |  | 10.0 |  |  |  | (6.4 | ) |  |  | 3.6 |  |  |  | 11.1 |  |  |  | (6.6 | ) |  |  | 4.5 |
Offshore Pipelines & Services: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer relationship intangibles |  |  | 195.8 |  |  |  | (152.6 | ) |  |  | 43.2 |  |  |  | 203.9 |  |  |  | (150.0 | ) |  |  | 53.9 |
Contract-based intangibles |  |  | 1.2 |  |  |  | (0.5 | ) |  |  | 0.7 |  |  |  | 1.2 |  |  |  | (0.4 | ) |  |  | 0.8 |
Segment total |  |  | 197.0 |  |  |  | (153.1 | ) |  |  | 43.9 |  |  |  | 205.1 |  |  |  | (150.4 | ) |  |  | 54.7 |
Petrochemical & Refined Products Services: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer relationship intangibles |  |  | 104.3 |  |  |  | (42.1 | ) |  |  | 62.2 |  |  |  | 104.3 |  |  |  | (38.2 | ) |  |  | 66.1 |
Contract-based intangibles |  |  | 39.9 |  |  |  | (6.7 | ) |  |  | 33.2 |  |  |  | 39.9 |  |  |  | (6.0 | ) |  |  | 33.9 |
Segment total |  |  | 144.2 |  |  |  | (48.8 | ) |  |  | 95.4 |  |  |  | 144.2 |  |  |  | (44.2 | ) |  |  | 100.0 |
Total all segments |  | $ | 2,599.5 |  |  | $ | (1,208.4 | ) |  | $ | 1,391.1 |  |  | $ | 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 September 30, |  |  | For the Nine Months Ended September 30, |
|  | 2014 |  |  | 2013 |  |  | 2014 |  |  | 2013 |
NGL Pipelines & Services |  | $ | 8.1 |  |  | $ | 8.6 |  |  | $ | 25.4 |  |  | $ | 27.7 |
Onshore Natural Gas Pipelines & Services |  |  | 11.1 |  |  |  | 13.3 |  |  |  | 34.2 |  |  |  | 38.0 |
Onshore Crude Oil Pipelines & Services |  |  | 0.3 |  |  |  | 0.3 |  |  |  | 0.9 |  |  |  | 1.0 |
Offshore Pipelines & Services |  |  | 2.5 |  |  |  | 2.9 |  |  |  | 7.6 |  |  |  | 8.8 |
Petrochemical & Refined Products Services |  |  | 1.5 |  |  |  | 1.5 |  |  |  | 4.6 |  |  |  | 4.7 |
Total |  | $ | 23.5 |  |  | $ | 26.6 |  |  | $ | 72.7 |  |  | $ | 80.2 |
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 |
| $ | 22.2 |  |  | $ | 86.0 |  |  | $ | 81.6 |  |  | $ | 86.1 |  |  | $ | 89.5 |
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 nine months ended September 30, 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 of goodwill |  |  | 520.0 |  |  |  | -- |  |  |  | -- |  |  |  | -- |  |  |  | (520.0 | ) |  |  | -- |
Goodwill related to the sale of assets |  |  | -- |  |  |  | -- |  |  |  | -- |  |  |  | (0.1 | ) |  |  | -- |  |  |  | (0.1 | )
Balance at September 30, 2014 (1) |  | $ | 861.2 |  |  | $ | 296.3 |  |  | $ | 305.1 |  |  | $ | 82.0 |  |  | $ | 535.3 |  |  | $ | 2,079.9 |
(1) The total carrying amount of goodwill at September 30, 2014 and December 31, 2013 is net of $1.3 million of accumulated impairment charges. No goodwill impairment charges were recorded during the nine months ended September 30, 2014. |
In January 2014, our Appalachia-to-Texas Express ("ATEX") ethane pipeline commenced operations. In addition to the 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.

X
- Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16323-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16265-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16373-109275 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13854-109267 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration