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Acquisitions, Investments in Unconsolidated Entities, Dispositions and Impairments
9 Months Ended
Sep. 30, 2016
Business Combinations [Abstract]  
Acquisitions, Investments in Unconsolidated Entities, Dispositions and Impairments
Acquisitions, Investments in Unconsolidated Entities, Dispositions and Impairments
 
Acquisitions. During the first nine months of 2016, we completed two acquisitions for cash consideration of $289 million. We did not recognize any goodwill related to these acquisitions. Included in these acquisitions was 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.
 
Investments in Unconsolidated Entities. In June 2016, we sold 50% of our investment in Cheyenne Pipeline LLC (“Cheyenne”), and in August 2016 we sold 50% of our investment in STACK Pipeline LLC (“STACK Pipeline”). As a result of these transactions, we now account for our remaining 50% equity interest in such entities under the equity method of accounting.

Dispositions and Divestitures. During the nine months ended September 30, 2016, we sold several non-core assets, including certain of our Gulf Coast pipelines and East Coast refined products terminals. In addition, we sold interests in Cheyenne and STACK Pipeline, as discussed above. In the aggregate, we recognized a net gain of approximately $99 million related to these transactions, which is included in "Depreciation and amortization" on our Condensed Consolidated Statement of Operations. Such amount is comprised of gains of approximately $155 million and losses of $56 million, including $15 million of impairment of goodwill that was included in a disposal group classified as held for sale prior to the closing of such transaction.
 
As of September 30, 2016, we classified approximately $275 million of assets as held for sale on our Condensed Consolidated Balance Sheet (in “Other current assets”) primarily related to definitive agreements to sell non-core assets, a majority of which are included in our Facilities segment. We expect the sales to be consummated in the fourth quarter of 2016 or the first half of 2017, 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.