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Equity-Based Awards (Tables) | 12 Months Ended
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Dec. 31, 2023
Equity-based Awards [Abstract] |
Equity-based Award Expense | 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 years indicated:
|  | For the Year Ended December 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
Equity-classified awards: |  |  |  |  |  |  |  |  |
Phantom unit awards |  | $ | 166 |  |  | $ | 153 |  |  | $ | 146 |
Profits interest awards |  |  | 6 |  |  |  | 4 |  |  |  | 6 |
Total |  | $ | 172 |  |  | $ | 157 |  |  | $ | 152 |
Other Share-based Compensation Plans | The following table presents phantom unit award activity for the years 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 |  |  | (5,648,281 | ) |  | $ | 26.98 |
Forfeited |  |  | (570,887 | ) |  | $ | 24.44 |
Phantom unit awards at December 31, 2021 |  |  | 17,170,919 |  |  | $ | 24.31 |
Granted (3) |  |  | 7,968,880 |  |  | $ | 24.11 |
Vested |  |  | (6,616,741 | ) |  | $ | 25.08 |
Forfeited |  |  | (540,113 | ) |  | $ | 23.92 |
Phantom unit awards at December 31, 2022 |  |  | 17,982,945 |  |  | $ | 23.94 |
Granted (4) |  |  | 8,904,445 |  |  | $ | 25.80 |
Vested |  |  | (6,786,085 | ) |  | $ | 24.81 |
Forfeited |  |  | (544,054 | ) |  | $ | 24.52 |
Phantom unit awards at December 31, 2023 |  |  | 19,557,251 |  |  | $ | 24.47 |
(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 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.
(3) | The aggregate grant date fair value of phantom unit awards issued during 2022 was $192 million based on a grant date market price of the Partnership’s common units ranging from $24.10 to $26.62 per unit. An estimated annual forfeiture rate of 2.1% was applied to these awards.
(4) | The aggregate grant date fair value of phantom unit awards issued during 2023 was $230 million based on a grant date market price of the Partnership’s common units ranging from $25.80 to $26.70 per unit. An estimated annual forfeiture rate of 2.0% was applied to these awards.
The following table presents supplemental information regarding phantom unit awards for the years indicated:
|  | For the Year Ended December 31, |
|  | 2023 |  |  | 2022 |  |  | 2021 |
Cash payments made in connection with DERs |  | $ | 38 |  |  | $ | 34 |  |  | $ | 31 |
Total intrinsic value of phantom unit awards that vested during period |  | $ | 182 |  |  | $ | 160 |  |  | $ | 124 |
The following table summarizes key elements of each Employee Partnership as of December 31, 2023:
Employee Partnership | Partnership Common Units Contributed by EPCO Holdings | Class A Capital Base (1) | Class A Preference Return Per Unit | Expected Vesting/ Liquidation Date (2) | Estimated Fair Value of Profits Interest Awards (3) | Unrecognized Compensation Cost (4)
EPD IV | 6,400,000 | $173 | $0.4325 | October 2024 | $14 | $10
EPCO II | 1,600,000 | $43 | $0.4325 | October 2024 | $3 | $–
(1) | Represents the fair market value of the Partnership’s common units contributed to each Employee Partnership at the applicable contribution date.
(2) | Represents the expected vesting/liquidation date based on the requisite service period (as derived using a Monte Carlo model) for each Employee Partnership.
(3) | Represents the total fair value of the profits interest awards awarded to the Class B limited partners of each Employee Partnership irrespective of how such costs will be allocated between us and EPCO and its privately held affiliates. The fair value is as of the plan modification date.
(4) | Represents our expected share of the unrecognized compensation cost at December 31, 2023, which we expect to recognize over a weighted-average period of 0.8 years.
The following table summarizes the assumptions we used in applying a Black-Scholes option pricing model or Monte Carlo model, as applicable, to derive that portion of the estimated fair value of the profits interest awards (at either the grant date or modification date) for each Employee Partnership:
| Expected Life | Risk-Free | Expected | Expected Unit
Employee | of Award | Interest | Distribution | Price
Partnership | from Grant Date | Rate | Yield | Volatility
EPD IV | 5.9 years | 0.2% to 4.9% | 6.5% to 8.4% | 22% to 39%
EPCO II | 5.9 years | 0.2% to 4.9% | 6.3% to 8.4% | 22% to 36%

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