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Equity-Based Awards | 9 Months Ended
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Sep. 30, 2021
Equity-based Awards [Abstract] |
Equity-based Awards | Note 12. 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 compensation expense we recognized in connection with equity-based awards for the periods indicated:
|  | For the Three Months Ended September 30, |  |  | For the Nine Months Ended September 30, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Equity-classified awards: |  |  |  |  |  |  |  |  |  |  |  |
Phantom unit awards |  | $ | 35.0 |  |  | $ | 37.3 |  |  | $ | 111.0 |  |  | $ | 113.1 |
Profits interest awards |  |  | 0.6 |  |  |  | 2.2 |  |  |  | 4.7 |  |  |  | 7.2 |
Liability-classified awards |  |  | – |  |  |  | – |  |  |  | 0.1 |  |  |  | – |
Total |  | $ | 35.6 |  |  | $ | 39.5 |  |  | $ | 115.8 |  |  | $ | 120.3 |
The fair value of equity-classified awards is amortized to earnings over the requisite service or vesting period. Equity-classified awards are expected to result in the issuance of the Partnership’s common units upon vesting. Compensation expense for liability-classified awards 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. Phantom Unit Awards Subject to customary forfeiture provisions, phantom unit awards allow recipients to acquire the Partnership’s common units once a defined vesting period expires (at no cost to the recipient apart from fulfilling required service and other conditions). The following table presents phantom unit award activity for the period indicated:
|  | Number of Units |  |  | Weighted- Average Grant Date Fair Value per Unit (1) |
Phantom unit awards at December 31, 2020 |  |  | 15,669,442 |  |  | $ | 26.76 |
Granted (2) |  |  | 7,720,645 |  |  | $ | 21.30 |
Vested |  |  | (5,574,695 | ) |  | $ | 27.01 |
Forfeited |  |  | (514,907 | ) |  | $ | 24.48 |
Phantom unit awards at September 30, 2021 |  |  | 17,300,485 |  |  | $ | 24.31 |
(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 phantom unit awards issued during 2021 was $164.4 million based on a grant date market price of the Partnership’s common units ranging from $20.79 to $22.05 per unit. An estimated annual forfeiture rate of 2.0% was applied to these awards.
Each phantom unit award includes a DER, which entitles the participant to nonforfeitable cash payments equal to the product of the number of phantom unit awards outstanding for the participant and the cash distribution per common unit paid by the Partnership to its common unitholders. Cash payments made in connection with DERs are charged to partners’ equity when the phantom unit award is expected to result in the issuance of common units; otherwise, such amounts are expensed. The following table presents supplemental information regarding phantom unit awards for the periods indicated:
|  | For the Three Months Ended September 30, |  |  | For the Nine Months Ended September 30, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Cash payments made in connection with DERs |  | $ | 7.9 |  |  | $ | 7.1 |  |  | $ | 23.1 |  |  | $ | 20.0 |
Total intrinsic value of phantom unit awards that vested during period |  |  | 3.5 |  |  |  | 2.0 |  |  |  | 122.6 |  |  |  | 113.4 |
For the EPCO group of companies, the unrecognized compensation cost associated with phantom unit awards was $185.1 million at September 30, 2021, of which our share of such cost is currently estimated to be $153.0 million. Due to the graded vesting provisions of these awards, we expect to recognize our share of the unrecognized compensation cost for these awards over a weighted-average period of 2.0 years. Profits Interest Awards In 2016 and 2018, EPCO Holdings Inc., a privately held affiliate of EPCO, contributed a portion of the Partnership common units it owned to form limited partnerships (referred to as “Employee Partnerships”) that serve as long-term incentive arrangements for key employees of EPCO by providing them a “profits interest” (in the form of a Class B limited partner interest) in an Employee Partnership. The Class B limited partner interests of two of the four Employee Partnerships outstanding at January 1, 2021, EPD PubCo Unit II L.P. and EPD PrivCo Unit I L.P., vested on June 11, 2021 when the closing market price of the Partnership’s common units exceeded $25.41 per unit. As a result of these vesting events, we recognized an aggregate $1.9 million of non-cash, compensation expense in the three months ended June 30, 2021. The Class B limited partner interests of EPD Unit IV L.P. and EPCO Unit II L.P. remain outstanding. At September 30, 2021, our share of the total unrecognized compensation cost related to these two Employee Partnerships was $10.4 million, which we expect to recognize over a weighted-average period of 2.2 years.

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