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Acquisitions, Dispositions and Impairments | 6 Months Ended
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Jun. 30, 2016
Acquisitions, Dispositions and Impairments |
Acquisitions, Dispositions and Impairments | Note 13—Acquisitions, Dispositions and Impairments Acquisitions. During the first six months of 2016, we completed one acquisition for cash consideration of $85 million. We did not recognize any goodwill related to this acquisition. In addition, in August 2016, we completed the acquisition of an integrated system of NGL assets in Western Canada from Westcoast Energy Inc., a unit of Spectra Energy, for cash consideration of approximately $204 million, including $51 million for inventory and working capital. Dispositions and Divestitures. During the six months ended June 30, 2016, we sold several non-core assets, including certain of our Gulf of Mexico pipelines and East Coast refined products terminals. In addition, in June 2016 we sold 50% of our investment in Cheyenne Pipeline LLC. We recognized gains of approximately $71 million and losses of $55 million related to these sales, including $15 million of impairment of goodwill that was included in a disposal group classified as held for sale as of March 31, 2016. These gains and losses are included in “Depreciation and amortization” on our Condensed Consolidated Statement of Operations. As of June 30, 2016, we classified approximately $152 million of assets as held for sale on our Condensed Consolidated Balance Sheet (in “Other current assets”) related to definitive agreements to sell additional non-core assets, a majority of which are included in our Transportation segment. A portion of these transactions closed in July 2016, and we expect the sale of the remaining assets to be consummated later in the third quarter of 2016, subject to customary closing conditions, as applicable. Impairments. During the second quarter of 2016, we recognized approximately $80 million of non-cash impairment losses on certain of our long-lived rail and other terminal assets included in our Facilities segment. Such impairment losses are reflected in “Depreciation and amortization” on our Condensed Consolidated Statement of Operations. The decline in demand for movements of crude oil by rail in the United States due to sustained unfavorable market conditions resulted in expected decreases in future cash flows for certain of our rail terminal assets, which was a triggering event that required us to assess the recoverability of our carrying value of such long-lived assets. As a result of this impairment review, we wrote off the portion of the carrying amount of these long-lived assets that exceeded their fair value. Our estimated fair values were based upon recent sales prices of comparable facilities, as well as management’s expectation of the market values for such assets based on their industry experience. We consider such inputs to be a Level 3 input in the fair value hierarchy. In addition, during the second quarter of 2016, we recognized a charge of approximately $18 million to “Depreciation and amortization” related to the write-off of the remaining book value of assets taken out of service.

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- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References No definition available. + Details
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