XML 54 R18.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Partners' Capital and Distributions | 3 Months Ended
--- | ---
Mar. 31, 2012
Partners' Capital and Distributions |
Partners' Capital and Distributions |
Note 9—Partners’ Capital and Distributions PAA Distributions The following table details the distributions paid during or pertaining to the first three months of 2012, net of reductions to the general partner’s incentive distributions (in millions, except per unit amounts):
|  |  |  | Distributions Paid |  | Distributions |
|  |  |  | Common |  | General Partner |  |  |  | per limited |
Date Declared |  | Date Paid or To Be Paid |  | Units |  | Incentive |  | 2% |  | Total |  | partner unit |
April 10, 2012 |  | May 15, 2012 (1) |  | $ | 169 |  | $ | 65 |  | $ | 3 |  | $ | 237 |  | $ | 1.0450 |
January 10, 2012 |  | February 14, 2012 |  | $ | 159 |  | $ | 63 |  | $ | 3 |  | $ | 225 |  | $ | 1.0250 |
(1) Payable to unitholders of record at the close of business on May 4, 2012, for the period January 1, 2012 through March 31, 2012. In order to enhance our distribution coverage ratio and liquidity following a significant acquisition, our general partner has, from time to time, agreed to reduce the amounts due to it as incentive distributions. As such, beginning with the first distribution declared and paid after closing the BP NGL Acquisition, which occurred on April 1, 2012, our general partner agreed to reduce the amount of its incentive distributions by $15 million per year for two years and $10 million per year thereafter. The first incentive distribution reduction related to this acquisition of approximately $4 million will be applied to the May 2012 distribution. See Note 4 for further discussion of the BP NGL Acquisition. PAA Equity Offerings During the three months ended March 31, 2012, we completed an equity offering of our common units as shown in the table below (in millions, except unit and per unit data):
|  |  |  | Gross |  | Proceeds |  | General Partner |  |  |  | Net |
Date |  | Units Issued |  | Unit Price |  | from Sale |  | Contribution |  | Costs |  | Proceeds |
March 2012 (1) |  | 5,750,000 |  | $ | 80.03 |  | $ | 460 |  | $ | 9 |  | $ | (14 | ) | $ | 455 |
(1) This offering of common units was an underwritten transaction that required us to pay a gross spread. The net proceeds from this offering were used to fund a portion of the BP NGL acquisition, to reduce outstanding borrowings under our credit facilities and for general partnership purposes. LTIP Vesting In connection with the settlement of vested LTIP awards, we issued 191,812 common units during the three months ended March 31, 2012 with a fair value of approximately $16 million. Noncontrolling Interests in Subsidiaries As of March 31, 2012, noncontrolling interests in subsidiaries consisted of the following: (i) an approximate 36 % interest in PNG and (ii) a 25% interest in SLC Pipeline LLC. Modification of Conversion of PNG Subordinated Units In February 2012, PNG modified the terms of the first three tranches of the PNG Series B subordinated units held by PAA. The Series B subordinated units do not participate in quarterly distributions. Instead, the Series B subordinated units convert into Series A subordinated units or common units in five distinct tranches upon the achievement of defined benchmarks tied to the amount of capacity in service at Pine Prairie and increases in PNG’s quarterly distributions. The modification increased the quarterly distribution benchmark for Tranche 1, 2 and 3 from annualized levels of $1.44 per unit, $1.53 per unit and $1.63 per unit, respectively, to an annualized level of $1.71 per unit. The following table presents the operational and financial benchmarks, as modified, for conversion of the Series B subordinated units into Series A subordinated units for each tranche (units in millions):
|  | Series B Subordinated Units to Convert into Series A Subordinated Units |  | Working Gas Storage Capacity (Bcf) |  | Annualized Distribution Level (1) |
Tranche 1 |  | 2.6 |  | 29.6 |  | $ | 1.71 |
Tranche 2 |  | 2.8 |  | 35.6 |  | $ | 1.71 |
Tranche 3 |  | 2.1 |  | 41.6 |  | $ | 1.71 |
Tranche 4 |  | 3.0 |  | 48.0 |  | $ | 1.71 |
Tranche 5 |  | 3.0 |  | 48.0 |  | $ | 1.80 |
(1) For satisfaction of this benchmark, PNG must, for two consecutive quarters, (i) maintain distributable cash flow sufficient to pay a quarterly distribution of at least the annualized distribution benchmark on the weighted average number of outstanding common units and Series A subordinated units and all of such Series B subordinated units and (ii) distribute available cash of at least the annualized distribution benchmark on all outstanding common units and Series A subordinated units and the corresponding distributions on PNG’s general partner’s 2% interest and the related distributions on the incentive distribution rights. See Note 5 to our Consolidated Financial Statements included in Part IV of our 2011 Annual Report on Form 10-K for a complete discussion of our Series B subordinated units. Noncontrolling Interests Rollforward The following table reflects the changes in the noncontrolling interests in partners’ capital (in millions):
|  | For the Three Months Ended |
|  | March 31, |
|  | 2012 |  | 2011 |
Beginning balance |  | $ | 524 |  | $ | 231 |
Sale of noncontrolling interests in a subsidiary |  | — |  | 306 |
Net income attributable to noncontrolling interests |  | 7 |  | 3 |
Distributions to noncontrolling interests |  | (12 | ) | (5 | )
Equity compensation expense |  | 1 |  | 1 |
Other comprehensive income/(loss): |  |  |  |  |
Reclassification adjustments |  | (6 | ) | — |
Deferred gain/(loss) on cash flow hedges, net |  | 2 |  | — |
Ending Balance |  | $ | 516 |  | $ | 536 |

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

X
- Definition The entire disclosure for the formation, structure, control and ownership of the partnership. Disclosures related to accounts comprising partners' capital. Includes balances of general partners' capital account, limited partners' capital account, preferred partners' capital account and total partners' capital account and units outstanding; accumulated other comprehensive income; amount and nature of changes to amount of partner's capital and units outstanding by class, rights and privileges for each class of units; distribution policies and distributions paid by unit class; impact of and correction of an error in previously issued financial statements; limitations of partners' liability; redemption, conversion and distribution policies; and deferred compensation related to the issuance of units. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 272 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6373374&loc=d3e70434-108055 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 272 -SubTopic 10 -Section 50 -Paragraph 3 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=6373374&loc=d3e70478-108055 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 87-21 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Practice Bulletin (PB) -Number 14 -Paragraph 10, 15 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 5 -Subparagraph (SAB TOPIC 4.F) -URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187171-122770 + Details
Name: | us-gaap_PartnersCapitalNotesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration