XML 35 R30.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Derivatives and Risk Management Activities (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2014
Derivative disclosures |
Schedule of interest rate risk hedging | The following table summarizes the terms of our forward starting interest rate swaps as of September 30, 2014 (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 |  | 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, 2014 (in millions):
|  |  |  | USD |  | CAD |  | Average Exchange Rate USD to CAD |
Forward exchange contracts that exchange CAD for USD: |  |  |  |  |  |  |  |  |
|  | 2014 |  | $ | 284 |  | $ | 319 |  | $1.00 - $1.12 |
|  | 2015 |  | 178 |  | 200 |  | $1.00 - $1.12 |
|  |  |  | $ | 462 |  | $ | 519 |  | $1.00 - $1.12 |
Forward exchange contracts that exchange USD for CAD: |  |  |  |  |  |  |  |  |
|  | 2014 |  | $ | 284 |  | $ | 313 |  | $1.00 - $1.10 |
|  | 2015 |  | 178 |  | 195 |  | $1.00 - $1.09 |
|  |  |  | $ | 462 |  | $ | 508 |  | $1.00 - $1.10 |
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, 2014 and 2013 is as follows (in millions):
|  | Three Months Ended September 30, 2014 |  |  | Three Months Ended September 30, 2013 |
|  | Derivatives in Hedging Relationships |  |  |  |  |  |  | Derivatives in Hedging Relationships |  |  |  |  |
Location of gain/(loss) |  | Gain/(loss) reclassified from AOCI into income (1) |  | Other gain/(loss) recognized in income |  | Derivatives Not Designated as a Hedge |  | Total |  |  | Gain/(loss) reclassified from AOCI into income (1) |  | Other gain/(loss) recognized in income |  | Derivatives Not Designated as a Hedge |  | Total |
Commodity Derivatives |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Supply and Logistics segment revenues |  | $ | (4 | ) | $ | — |  | $ | (17 | ) | $ | (21 | ) |  | $ | 109 |  | $ | — |  | $ | (91 | ) | $ | 18 |
Facilities segment revenues |  | — |  | — |  | — |  | — |  |  | (2 | ) | — |  | — |  | (2 | )
Field operating costs |  | — |  | — |  | (2 | ) | (2 | ) |  | — |  | — |  | 2 |  | 2 |
Interest Rate Derivatives |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  | (1 | ) | — |  | — |  | (1 | ) |  | (2 | ) | 3 |  | — |  | 1 |
Foreign Currency Derivatives |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Supply and Logistics segment revenues |  | — |  | — |  | (17 | ) | (17 | ) |  | — |  | — |  | — |  | — |
Other income/(expense), net |  | — |  | — |  | — |  | — |  |  | 1 |  | — |  | — |  | 1 |
Total Gain/(Loss) on Derivatives Recognized in Net Income |  | $ | (5 | ) | $ | — |  | $ | (36 | ) | $ | (41 | ) |  | $ | 106 |  | $ | 3 |  | $ | (89 | ) | $ | 20 |
|  | Nine Months Ended September 30, 2014 |  |  | Nine Months Ended September 30, 2013 |
|  | Derivatives in Hedging Relationships |  |  |  |  |  |  | Derivatives in Hedging Relationships |  |  |  |  |
Location of gain/(loss) |  | Gain/(loss) reclassified from AOCI into income (1) |  | Other gain/(loss) recognized in income |  | Derivatives Not Designated as a Hedge |  | Total |  |  | Gain/(loss) reclassified from AOCI into income (1) |  | Other gain/(loss) recognized in income |  | Derivatives Not Designated as a Hedge |  | Total |
Commodity Derivatives |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Supply and Logistics segment revenues |  | $ | (12 | ) | $ | — |  | $ | (17 | ) | $ | (29 | ) |  | $ | 139 |  | $ | — |  | $ | (34 | ) | $ | 105 |
Facilities segment revenues |  | — |  | — |  | — |  | — |  |  | (14 | ) | — |  | — |  | (14 | )
Field operating costs |  | — |  | — |  | (3 | ) | (3 | ) |  | — |  | — |  | 7 |  | 7 |
Interest Rate Derivatives |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  | (4 | ) | — |  | — |  | (4 | ) |  | (5 | ) | 3 |  | — |  | (2 | )
Foreign Currency Derivatives |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Supply and Logistics segment revenues |  | — |  | — |  | (17 | ) | (17 | ) |  | — |  | — |  | — |  | — |
Other income/(expense), net |  | — |  | — |  | — |  | — |  |  | 4 |  | — |  | — |  | 4 |
Total Gain/(Loss) on Derivatives Recognized in Net Income |  | $ | (16 | ) | $ | — |  | $ | (37 | ) | $ | (53 | ) |  | $ | 124 |  | $ | 3 |  | $ | (27 | ) | $ | 100 |
(1) During the three and nine months ended September 30, 2014, all of our hedged transactions were probable of occurring. During the three months ended September 30, 2013 we reclassified losses of $2 million from AOCI to Facilities segment revenues as a result of anticipated hedged transactions that were probable of not occurring. During the nine months ended September 30, 2013, we reclassified gains of $3 million and losses of $1 million from AOCI to Supply and Logistics segment revenues and Facilities segment revenues, respectively, as a result of anticipated hedged transactions that were probable of not occurring.
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, 2014 (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 |  | $ | 7 |  |  |  |  |  |
|  | Other long-term assets |  | 4 |  |  |  |  |  |
Interest rate derivatives |  |  |  |  |  |  | Other current liabilities |  | $ | (15 | )
Total derivatives designated as hedging instruments |  |  |  | $ | 11 |  |  |  |  | $ | (15 | )
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |  |
Commodity derivatives |  | Other current assets |  | $ | 65 |  |  | Other current assets |  | $ | (43 | )
|  | Other long-term assets |  | 5 |  |  | Other current liabilities |  | (7 | )
|  | Other current liabilities |  | 2 |  |  | Other long-term liabilities |  | (2 | )
Foreign currency derivatives |  |  |  |  |  |  | Other current liabilities |  | (10 | )
Total derivatives not designated as hedging instruments |  |  |  | $ | 72 |  |  |  |  | $ | (62 | )
Total derivatives |  |  |  | $ | 83 |  |  |  |  | $ | (77 | )
The following table summarizes the derivative assets and liabilities on our condensed consolidated balance sheet on a gross basis as of December 31, 2013 (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 |  | $ | 36 |  |  | Other current assets |  | $ | (24 | )
|  | Other long-term assets |  | 5 |  |  |  |  |  |
Interest rate derivatives |  | Other long-term assets |  | 26 |  |  |  |  |  |
Total derivatives designated as hedging instruments |  |  |  | $ | 67 |  |  |  |  | $ | (24 | )
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |  |
Commodity derivatives |  | Other current assets |  | $ | 60 |  |  | Other current assets |  | $ | (117 | )
|  | Other long-term assets |  | 5 |  |  | Other long-term assets |  | (6 | )
|  | Other current liabilities |  | 1 |  |  | Other current liabilities |  | (5 | )
|  |  |  |  |  |  | Other long-term liabilities |  | (1 | )
Foreign currency derivatives |  |  |  |  |  |  | Other current liabilities |  | (4 | )
Total derivatives not designated as hedging instruments |  |  |  | $ | 66 |  |  |  |  | $ | (133 | )
Total derivatives |  |  |  | $ | 133 |  |  |  |  | $ | (157 | )
Schedule of derivatives assets and liabilities that are subject to offsetting, including enforceable master netting arrangements | The following tables present information about derivatives and financial assets and liabilities that are subject to offsetting, including enforceable master netting arrangements at September 30, 2014 and December 31, 2013 (in millions):
|  | September 30, 2014 |  |  | December 31, 2013 |
|  | Derivative |  | Derivative |  |  | Derivative |  | Derivative |
|  | Asset Positions |  | Liability Positions |  |  | Asset Positions |  | Liability Positions |
Netting Adjustments: |  |  |  |  |  |  |  |  |  |
Gross position - asset/(liability) |  | $ | 83 |  | $ | (77 | ) |  | $ | 133 |  | $ | (157 | )
Netting adjustment |  | (45 | ) | 45 |  |  | (148 | ) | 148 |
Cash collateral paid/(received) |  | 35 |  | — |  |  | 161 |  | — |
Net position - asset/(liability) |  | $ | 73 |  | $ | (32 | ) |  | $ | 146 |  | $ | (9 | )
Balance Sheet Location After Netting Adjustments: |  |  |  |  |  |  |  |  |  |
Other current assets |  | $ | 64 |  | $ | — |  |  | $ | 116 |  | $ | — |
Other long-term assets |  | 9 |  | — |  |  | 30 |  | — |
Other current liabilities |  | — |  | (30 | ) |  | — |  | (8 | )
Other long-term liabilities |  | — |  | (2 | ) |  | — |  | (1 | )
|  | $ | 73 |  | $ | (32 | ) |  | $ | 146 |  | $ | (9 | )
Net deferred gain/(loss), including tax effects, recognized in AOCI for derivatives | The net deferred gain/(loss), including tax effects, recognized in AOCI for derivatives for the three and nine months ended September 30, 2014 and 2013 are as follows (in millions):
|  | Three Months Ended |  | Nine Months Ended |
|  | September 30, |  | September 30, |
|  | 2014 |  | 2013 |  | 2014 |  | 2013 |
Commodity derivatives, net |  | $ | 2 |  | $ | 66 |  | $ | (10 | ) | $ | 77 |
Interest rate derivatives, net |  | (8 | ) | 12 |  | (47 | ) | 63 |
Total |  | $ | (6 | ) | $ | 78 |  | $ | (57 | ) | $ | 140 |
Derivative financial assets and liabilities within the fair value hierarchy accounted for at fair value on a recurring basis | The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2014 and December 31, 2013 (in millions):
|  | Fair Value as of September 30, 2014 |  |  | Fair Value as of December 31, 2013 |
Recurring Fair Value Measures (1) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total |  |  | Level 1 |  | Level 2 |  | Level 3 |  | Total |
Commodity derivatives |  | $ | 6 |  | $ | 22 |  | $ | 3 |  | $ | 31 |  |  | $ | 16 |  | $ | (59 | ) | $ | (3 | ) | $ | (46 | )
Interest rate derivatives |  | — |  | (15 | ) | — |  | (15 | ) |  | — |  | 26 |  | — |  | 26 |
Foreign currency derivatives |  | — |  | (10 | ) | — |  | (10 | ) |  | — |  | (4 | ) | — |  | (4 | )
Total net derivative asset/(liability) |  | $ | 6 |  | $ | (3 | ) | $ | 3 |  | $ | 6 |  |  | $ | 16 |  | $ | (37 | ) | $ | (3 | ) | $ | (24 | )
(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, |
|  | 2014 |  | 2013 |  | 2014 |  | 2013 |
Beginning Balance |  | $ | 1 |  | $ | 4 |  | $ | (3 | ) | $ | 4 |
Unrealized gains/(losses): |  |  |  |  |  |  |  |  |
Included in earnings (1) |  | 1 |  | (4 | ) | — |  | (1 | )
Included in other comprehensive income |  | — |  | — |  | — |  | — |
Settlements |  | — |  | (1 | ) | 3 |  | (3 | )
Derivatives entered into during the period |  | 1 |  | — |  | 3 |  | (1 | )
Transfers out of Level 3 |  | — |  | — |  | — |  | — |
Ending Balance |  | $ | 3 |  | $ | (1 | ) | $ | 3 |  | $ | (1 | )
Change in unrealized gains/(losses) included in earnings relating to Level 3 derivatives still held at the end of the periods |  | $ | 2 |  | $ | (4 | ) | $ | 3 |  | $ | (1 | )
(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 derivative and other financial assets and liabilities that are subject to offsetting, including master netting arrangements. + References No definition available. + Details
Name: | paa_ScheduleOfOffsettingAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | paa_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

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

X
- Definition Tabular disclosure of financial instrument classified as a derivative asset (liability) after deduction of derivative liability (asset) using recurring unobservable inputs that reflect the entity's own assumption about the assumptions market participants would use in pricing. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19279-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
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=35706170&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 derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments. + 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=35706170&loc=SL5618551-113959 Reference 2: 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=35706170&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 Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624163-113959 + 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 8 -URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41678-113959 Reference 2: 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 3: 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=35706170&loc=d3e41620-113959 Reference 4: 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=35706170&loc=SL5579245-113959 Reference 5: 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=35706170&loc=SL5580258-113959 Reference 6: 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=35706170&loc=SL5579240-113959 Reference 7: 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=35706170&loc=d3e41641-113959 Reference 8: 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=35706170&loc=d3e41638-113959 Reference 9: 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=35706170&loc=SL5624171-113959 Reference 10: 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=35706170&loc=SL5624163-113959 Reference 11: 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=26873400&loc=d3e23780-122690 + 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=36462937&loc=d3e19190-110258 + Details
Name: | us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the notional amounts of outstanding derivative positions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5579245-113959 + Details
Name: | us-gaap_ScheduleOfNotionalAmountsOfOutstandingDerivativePositionsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration