XML 48 R34.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Revenues (Tables) | 3 Months Ended
--- | ---
Mar. 31, 2018
Revenues [Abstract] |
Revenues by Business Segment and Revenue Type | We classify our revenues into sales of products and midstream services. Product sales relate primarily to our various marketing activities whereas midstream services represent our other integrated businesses (i.e., gathering, processing, transportation, fractionation, storage and terminaling). The following table presents our revenues by business segment, and further by revenue type, for the periods indicated:
|  | For the Three Months Ended March 31, |
|  | 2018 (1) |  |  | 2017 (2) |
NGL Pipelines & Services: |  |  |  |  |  |
Sales of NGLs and related products |  | $ | 2,815.4 |  |  | $ | 2,887.2 |
Midstream services |  |  | 597.9 |  |  |  | 458.6 |
Total |  |  | 3,413.3 |  |  |  | 3,345.8 |
Crude Oil Pipelines & Services: |  |  |  |  |  |  |  |
Sales of crude oil |  |  | 3,341.7 |  |  |  | 1,618.6 |
Midstream services |  |  | 229.2 |  |  |  | 188.6 |
Total |  |  | 3,570.9 |  |  |  | 1,807.2 |
Natural Gas Pipelines & Services: |  |  |  |  |  |  |  |
Sales of natural gas |  |  | 560.0 |  |  |  | 544.0 |
Midstream services |  |  | 244.8 |  |  |  | 217.2 |
Total |  |  | 804.8 |  |  |  | 761.2 |
Petrochemical & Refined Products Services: |  |  |  |  |  |  |  |
Sales of petrochemicals and refined products |  |  | 1,289.3 |  |  |  | 1,211.1 |
Midstream services |  |  | 220.2 |  |  |  | 195.1 |
Total |  |  | 1,509.5 |  |  |  | 1,406.2 |
Total consolidated revenues |  | $ | 9,298.5 |  |  | $ | 7,320.4 |
(1) Revenues are accounted for under ASC 606 upon implementation at January 1, 2018. (2) Revenues are accounted for under ASC 605 for historical periods prior to January 1, 2018. |
Unbilled Revenue and Deferred Revenue | The following table provides information regarding our contract assets and contract liabilities as of March 31, 2018:
Contract Asset | Location |  | Balance |
Unbilled revenue (current amount) | Prepaid and other current assets |  | $ | 64.4 |
Unbilled revenue (noncurrent) | Other assets |  |  | 0.2 |
Total |  |  | $ | 64.6 |
Contract Liability | Location |  | Balance |
Deferred revenue (current amount) | Other current liabilities |  | $ | 78.5 |
Deferred revenue (noncurrent) | Other long-term liabilities |  |  | 140.6 |
Total |  |  | $ | 219.1 |
The following table presents significant changes in our unbilled revenue and deferred revenue balances during the three months ended March 31, 2018:
|  | Unbilled Revenue |  |  | Deferred Revenue |
Balance at January 1, 2018 (upon adoption of ASC 606) |  | $ | -- |  |  | $ | 224.7 |
Amount included in opening balance transferred to other accounts during period (1) |  |  | -- |  |  |  | (54.0 | )
Amount recorded during period |  |  | 62.4 |  |  |  | 86.0 |
Amounts recorded during period transferred to other accounts (1) |  |  | -- |  |  |  | (37.6 | )
Amount recorded in connection with business combination |  |  | 2.2 |  |  |  | -- |
Balance at March 31, 2018 |  | $ | 64.6 |  |  | $ | 219.1 |
(1) Unbilled revenues are transferred to accounts receivable once we have an unconditional right to consideration from the customer. Deferred revenues are recognized as revenue upon satisfaction of our performance obligation to the customer. |
Remaining Performance Obligations | The following table presents estimated fixed consideration from contracts with customers that contain minimum volume commitments, deficiency and similar fees and the term of the contracts exceeds one year. These amounts represent the revenues we expect to recognize in future periods from these contracts as of March 31, 2018. For a significant portion of our revenue, we bill customers a contractual rate for the services provided multiplied by the amount of volume handled in a given period. We have the right to invoice the customer in the amount that corresponds directly with the value of our performance completed to date. Therefore, we are not required to disclose information about the variable consideration of remaining performance obligations as we recognize revenue equal to the amount that we have the right to invoice.
|  | Remainder of 2018 |  |  | 2019 |  |  | 2020 |  |  | 2021 |  |  | 2022 |  |  | Thereafter |  |  | Total |
Midstream services |  | $ | 1,704.7 |  |  | $ | 2,155.1 |  |  | $ | 1,945.8 |  |  | $ | 1,484.3 |  |  | $ | 1,110.0 |  |  | $ | 4,179.6 |  |  | $ | 12,579.5 |
Impact of Change in Accounting Policy | Unaudited Condensed Consolidated Balance Sheet Information as of March 31, 2018
|  | Impact of change in accounting policy |
|  | Balances without adoption of ASC 606 |  |  | Impact of adoption of ASC 606 |  |  | As Reported |
Assets |  |  |  |  |  |  |  |  |
Accounts receivable – trade, net |  | $ | 4,504.5 |  |  | $ | (64.6 | ) |  | $ | 4,439.9 |
Prepaid and other current assets |  | $ | 288.9 |  |  | $ | 64.4 |  |  | $ | 353.3 |
Property, plant and equipment, net |  | $ | 36,410.9 |  |  | $ | 5.4 |  |  | $ | 36,416.3 |
Other assets |  | $ | 209.8 |  |  | $ | 0.2 |  |  | $ | 210.0 |
Liabilities and Equity |  |  |  |  |  |  |  |  |  |  |  |
Other long-term liabilities |  | $ | 601.2 |  |  | $ | 2.2 |  |  | $ | 603.4 |
Partners' equity |  | $ | 22,750.1 |  |  | $ | 3.2 |  |  | $ | 22,753.3 |
The impact of adoption of ASC 606 was the reclassification of unbilled revenue amounts of $64.6 million from accounts receivable to other current assets, $64.4 million, and other long-term assets, $0.2 million. Unaudited Condensed Consolidated Statement of Operations Information for the Three Months Ended March 31, 2018
|  | Impact of change in accounting policy |
|  | Balances without adoption of ASC 606 |  |  | Impact of adoption of ASC 606 |  |  | As Reported |
Revenues |  | $ | 9,181.5 |  |  | $ | 117.0 |  |  | $ | 9,298.5 |
Costs and expenses: |  |  |  |  |  |  |  |  |  |  |  |
Operating costs and expenses: |  | $ | 8,108.9 |  |  | $ | 113.8 |  |  | $ | 8,222.7 |
The impact of adoption of ASC 606 on revenues during the first quarter of 2018 includes the recognition of $113.8 million of revenues from non-cash consideration (i.e., equity NGLs) earned when providing natural gas processing services and $3.2 million recognized in connection with CIACs. Operating costs and expenses for the period includes $113.8 million attributable to cost of sales recognized when the equity NGL products are sold and delivered to customers. Unaudited Condensed Consolidated Statement of Cash Flows Information for the Three Months Ended March 31, 2018
|  | Impact of change in accounting policy |
|  | Balances without adoption of ASC 606 |  |  | Impact of adoption of ASC 606 |  |  | As Reported |
Operating activities: |  |  |  |  |  |  |  |  |
Net income |  | $ | 908.3 |  |  | $ | 3.2 |  |  | $ | 911.5 |
Net effect of changes in operating accounts |  | $ | (205.3 | ) |  | $ | 2.2 |  |  | $ | (203.1 | )
Investing activities: |  |  |  |  |  |  |  |  |  |  |  |
Contributions in aid of construction costs |  | $ | 5.4 |  |  | $ | (5.4 | ) |  | $ | -- |

X
- Definition Tabular disclosure of contract balances and changes in contract balances. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=82913847&loc=SL49130551-203045 + Details
Name: | us-gaap_ContractWithCustomerAssetAndLiabilityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of disaggregation of revenue into categories depicting how nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factor. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=82913847&loc=SL49130545-203045 + Details
Name: | us-gaap_DisaggregationOfRevenueTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_RevenueFromContractWithCustomerAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of expected timing for satisfying remaining performance obligation. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -SubTopic 10 -Section 50 -Paragraph 1A -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=84173487&loc=SL51747714-108306 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(1) -URI http://asc.fasb.org/extlink&oid=82913847&loc=SL49130556-203045 + Details
Name: | us-gaap_RevenueRemainingPerformanceObligationExpectedTimingOfSatisfactionTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=64853466&loc=d3e22580-107794 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -SubTopic 10 -Section 45 -Paragraph 13 -URI http://asc.fasb.org/extlink&oid=68064558&loc=d3e765-108305 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=64853466&loc=d3e22499-107794 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.10-01.(b)(6)) -URI http://asc.fasb.org/extlink&oid=27015980&loc=d3e46468-122699 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=64853466&loc=d3e22583-107794 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -SubTopic 10 -Section 45 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=68064558&loc=d3e725-108305 + Details
Name: | us-gaap_ScheduleOfNewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration