XML 18 R33.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Derivatives and Risk Management Activities (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2012
Derivatives and Risk Management Activities |
Terms of forward starting interest rate swaps |
The following table summarizes the terms of our forward starting interest rate swaps as of September 30, 2012 (notional amounts in millions):
Hedged Transaction |  | Number and Types of Derivatives Employed |  | Notional Amount |  | Expected Termination Date |  | Average Rate Locked |  | Accounting Treatment |
Anticipated debt offering |  | 6 forward starting swaps (30-year) |  | $ | 250 |  | 6/17/2013 |  | 4.24 | % | Cash flow hedge |
Anticipated debt offering |  | 5 forward starting swaps (30-year) |  | $ | 125 |  | 6/16/2014 |  | 3.39 | % | Cash flow hedge |
Anticipated debt offering |  | 10 forward starting swaps (30-year) |  | $ | 250 |  | 6/15/2015 |  | 3.60 | % | Cash flow hedge |
Open foreign currency exchange contracts |
The following table summarizes our open forward exchange contracts as of September 30, 2012 (in millions):
|  |  |  | USD |  | CAD |  | Average Exchange Rate USD to CAD |
Forward exchange contracts that exchange CAD for USD: |  |  |  |  |  |  |  |  |
|  | 2012 |  | $ | 94 |  | $ | 92 |  | $1.02 to $1.00 |
|  | 2013 |  | 9 |  | 9 |  | $1.00 to $1.00 |
|  |  |  | $ | 103 |  | $ | 101 |  | $1.01 to $1.00 |
Forward exchange contracts that exchange USD for CAD: |  |  |  |  |  |  |  |  |
|  | 2012 |  | $ | 123 |  | $ | 124 |  | $0.99 to $1.00 |
|  | 2013 |  | 149 |  | 150 |  | $0.99 to $1.00 |
|  |  |  | $ | 272 |  | $ | 274 |  | $0.99 to $1.00 |
Net position by currency: |  |  |  |  |  |  |  |  |
|  | 2012 |  | $ | 29 |  | $ | 32 |  |  |
|  | 2013 |  | 140 |  | 141 |  |  |
|  |  |  | $ | 169 |  | $ | 173 |  |  |
Impact of derivative activities recognized in earnings |
A summary of the impact of our derivative activities recognized in earnings for the three and nine months ended September 30, 2012 and 2011 is as follows (in millions):
|  | Three Months Ended September 30, 2012 |  | Three Months Ended September 30, 2011 |
|  |  |  | Derivatives |  |  |  |  |  | Derivatives |  |  |
|  | Derivatives in |  | Not |  |  |  | Derivatives in |  | Not |  |  |
|  | Hedging |  | Designated |  |  |  | Hedging |  | Designated |  |  |
Location of gain/(loss) |  | Relationships (1) |  | as a Hedge (4) |  | Total |  | Relationships (1)(2) |  | as a Hedge (4) |  | Total |
Commodity Derivatives |  |  |  |  |  |  |  |  |  |  |  |  |
Supply and Logistics segment revenues |  | $ | 123 |  | $ | (102 | ) | $ | 21 |  | $ | (1 | ) | $ | 50 |  | $ | 49 |
Facilities segment revenues |  | — |  | — |  | — |  | 3 |  | — |  | 3 |
Field operating costs |  | — |  | 4 |  | 4 |  | — |  | (1 | ) | (1 | )
Interest Rate Derivatives |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  | (1 | ) | — |  | (1 | ) | — |  | — |  | — |
Foreign Currency Derivatives |  |  |  |  |  |  |  |  |  |  |  |  |
Supply and Logistics segment revenues |  | — |  | 4 |  | 4 |  | — |  | (6 | ) | (6 | )
Other income/(expense), net |  | 1 |  | — |  | 1 |  | 3 |  | — |  | 3 |
Total Gain/(Loss) on Derivatives Recognized in Net Income |  | $ | 123 |  | $ | (94 | ) | $ | 29 |  | $ | 5 |  | $ | 43 |  | $ | 48 |
|  | Nine Months Ended September 30, 2012 |  | Nine Months Ended September 30, 2011 |
|  |  |  | Derivatives |  |  |  |  |  | Derivatives |  |  |
|  | Derivatives in |  | Not |  |  |  | Derivatives in |  | Not |  |  |
|  | Hedging |  | Designated |  |  |  | Hedging |  | Designated |  |  |
Location of gain/(loss) |  | Relationships (1)(2)(3) |  | as a Hedge (4) |  | Total |  | Relationships (1)(3) |  | as a Hedge (4) |  | Total |
Commodity Derivatives |  |  |  |  |  |  |  |  |  |  |  |  |
Supply and Logistics segment revenues |  | $ | 62 |  | $ | 59 |  | $ | 121 |  | $ | (237 | ) | $ | 90 |  | $ | (147 | )
Facilities segment revenues |  | 13 |  | — |  | 13 |  | (3 | ) | 1 |  | (2 | )
Purchases and related costs |  | 41 |  | — |  | 41 |  | — |  | (1 | ) | (1 | )
Field operating costs |  | — |  | 2 |  | 2 |  | — |  | — |  | — |
Interest Rate Derivatives |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  | (2 | ) | — |  | (2 | ) | 1 |  | — |  | 1 |
Foreign Currency Derivatives |  |  |  |  |  |  |  |  |  |  |  |  |
Supply and Logistics segment revenues |  | — |  | 4 |  | 4 |  | — |  | (3 | ) | (3 | )
Other income/(expense), net |  | 4 |  | — |  | 4 |  | 5 |  | — |  | 5 |
Total Gain/(Loss) on Derivatives Recognized in Net Income |  | $ | 118 |  | $ | 65 |  | $ | 183 |  | $ | (234 | ) | $ | 87 |  | $ | (147 | )
(1) |  | Amounts represent derivative gains and losses that were reclassified from AOCI to earnings during the period to coincide with the earnings impact of the hedged transaction.
(2) |  | Amounts include losses of approximately $2 million and gains of approximately $8 million for the nine months ended September 30, 2012 and the three months ended September 30, 2011, respectively. These amounts represent the ineffective portion of our commodity and interest rate derivatives that are designated as cash flow hedges.
(3) |  | Interest expense includes net gains of approximately $2 million and $1 million for the nine months ended September 30, 2012 and 2011, respectively, associated with interest rate swaps designated as a fair value hedge. These swaps terminated during September 2012.
(4) |  | Includes realized and unrealized gains or losses for derivatives not designated for hedge accounting during the period.
Summary of derivative assets and liabilities on condensed consolidated balance sheet |
The following table summarizes the derivative assets and liabilities on our condensed consolidated balance sheet on a gross basis as of September 30, 2012 (in millions):
|  | Asset Derivatives |  | Liability Derivatives |
|  | Balance Sheet Location |  | Fair Value |  | Balance Sheet Location |  | Fair Value |
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |  |
Commodity derivatives |  | Other current assets |  | $ | 32 |  | Other current assets |  | $ | (30 | )
|  | Other long-term assets |  | 11 |  | Other long-term assets |  | (3 | )
|  |  |  |  |  | Other current liabilities |  | (4 | )
Interest rate derivatives |  |  |  |  |  | Other current liabilities |  | (84 | )
|  |  |  |  |  | Other long-term liabilities |  | (49 | )
Foreign currency derivatives |  | Other current assets |  | 3 |  | Other current liabilities |  | (1 | )
Total derivatives designated as hedging instruments |  |  |  | $ | 46 |  |  |  | $ | (171 | )
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |
Commodity derivatives |  | Other current assets |  | $ | 161 |  | Other current assets |  | $ | (91 | )
|  | Other long-term assets |  | 15 |  | Other long-term assets |  | (5 | )
|  |  |  |  |  | Other current liabilities |  | (1 | )
Foreign currency derivatives |  | Other current assets |  | 4 |  |  |  |  |
Total derivatives not designated as hedging instruments |  |  |  | $ | 180 |  |  |  | $ | (97 | )
Total derivatives |  |  |  | $ | 226 |  |  |  | $ | (268 | )
The following table summarizes the derivative assets and liabilities on our condensed consolidated balance sheet on a gross basis as of December 31, 2011 (in millions):
|  | Asset Derivatives |  | Liability Derivatives |
|  | Balance Sheet |  |  |  | Balance Sheet |  |  |
|  | Location |  | Fair Value |  | Location |  | Fair Value |
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |  |
Commodity derivatives |  | Other current assets |  | $ | 72 |  | Other current assets |  | $ | (47 | )
|  | Other long-term assets |  | 20 |  | Other long-term assets |  | (2 | )
Interest rate derivatives |  | Other current assets |  | 1 |  | Other current liabilities |  | (24 | )
|  |  |  |  |  | Other long-term liabilities |  | (114 | )
Foreign currency derivatives |  | Other current assets |  | 1 |  |  |  |  |
Total derivatives designated as hedging instruments |  |  |  | $ | 94 |  |  |  | $ | (187 | )
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |
Commodity derivatives |  | Other current assets |  | $ | 87 |  | Other current assets |  | $ | (39 | )
|  | Other long-term assets |  | 6 |  | Other long-term assets |  | (3 | )
|  |  |  |  |  | Other current liabilities |  | (1 | )
Total derivatives not designated as hedging instruments |  |  |  | $ | 93 |  |  |  | $ | (43 | )
Total derivatives |  |  |  | $ | 187 |  |  |  | $ | (230 | )
Amounts of gain/(loss) recognized in AOCI on derivatives (effective portion) |
The net deferred gain/(loss), including tax effects, recognized in AOCI for derivatives during the three and nine months ended September 30, 2012 and 2011 are as follows (in millions):
|  | For the Three Months Ended |  | For the Nine Months Ended |
|  | September 30, |  | September 30, |
|  | 2012 |  | 2011 |  | 2012 |  | 2011 |
Commodity derivatives, net |  | $ | 88 |  | $ | (15 | ) | $ | 88 |  | $ | (112 | )
Foreign currency derivatives, net |  | — |  | 5 |  | — |  | 4 |
Interest rate derivatives, net |  | 9 |  | (123 | ) | (19 | ) | (117 | )
Total |  | $ | 97 |  | $ | (133 | ) | $ | 69 |  | $ | (225 | )
Financial assets and liabilities within the fair value hierarchy accounted for at fair value on a recurring basis |
|  | Fair Value as of September 30, 2012 (in millions) |  | Fair Value as of December 31, 2011 (in millions) |
Recurring Fair Value Measures (1) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |  | Total |
Commodity derivatives |  | $ | 30 |  | $ | 45 |  | $ | 10 |  | $ | 85 |  | $ | 80 |  | $ | 1 |  | $ | 12 |  | $ | 93 |
Interest rate derivatives |  | — |  | (133 | ) | — |  | (133 | ) | — |  | (137 | ) | — |  | (137 | )
Foreign currency derivatives |  | — |  | 6 |  | — |  | 6 |  | — |  | 1 |  | — |  | 1 |
Total |  | $ | 30 |  | $ | (82 | ) | $ | 10 |  | $ | (42 | ) | $ | 80 |  | $ | (135 | ) | $ | 12 |  | $ | (43 | )
(1) Derivative assets and liabilities are presented above on a net basis but do not include related cash margin deposits.
Reconciliation of changes in fair value of derivatives classified as level 3 |
The following table provides a reconciliation of changes in fair value of the beginning and ending balances for our derivatives classified as level 3 (in millions):
|  | Three Months Ended |  | Nine Months Ended |
|  | September 30, |  | September 30, |
|  | 2012 |  | 2011 |  | 2012 |  | 2011 |
Beginning Balance |  | $ | 36 |  | $ | 10 |  | $ | 12 |  | $ | (14 | )
Unrealized gains/(losses): |  |  |  |  |  |  |  |  |
Included in earnings (1) |  | (9 | ) | 17 |  | (1 | ) | 30 |
Included in other comprehensive income |  | — |  | 3 |  | 3 |  | 2 |
Settlements |  | (4 | ) | (2 | ) | (18 | ) | 31 |
Derivatives entered into during the period |  | 1 |  | 8 |  | 23 |  | 4 |
Transfers out of level 3 |  | (14 | ) | — |  | (9 | ) | (17 | )
Ending Balance |  | $ | 10 |  | $ | 36 |  | $ | 10 |  | $ | 36 |
Change in unrealized gains/(losses) included in earnings relating to level 3 derivatives still held at the end of the periods |  | $ | (8 | ) | $ | 26 |  | $ | 25 |  | $ | 35 |
(1) We reported unrealized gains and losses associated with level 3 commodity derivatives in our condensed consolidated statements of operations as Supply and Logistics segment revenues.

X
- Definition Tabular disclosure of the fair value measurement of assets and liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of asset and liability. + References No definition available. + Details
Name: | paa_FairValueAssetsLiabilitiesMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix: | paa_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Disclosure of notional amounts of outstanding foreign currency forward exchange contracts. + References No definition available. + Details
Name: | paa_ScheduleOfNotionalAmountsOfOutstandingForeignCurrencyExchangeContractsTableTextBlock
Namespace Prefix: | paa_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

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

X
- Definition Tabular disclosure of the effective portion of the gains and losses on derivative instruments designated (and non-derivative instruments) designated and qualifying in cash flow hedges and net investment hedges that was recognized in other comprehensive income (loss) during the current period. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsEffectOnOtherComprehensiveIncomeLossTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5618551-113959 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 205G -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 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 44C -Subparagraph b -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 FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 205G -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 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624163-113959 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 44C -Subparagraph a -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. + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41638-113959 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41678-113959 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5580258-113959 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(n)(2)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579245-113959 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 25 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41620-113959 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624163-113959 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41641-113959 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579240-113959 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19190-110258 + Details
Name: | us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration