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Investments in Unconsolidated Entities | 12 Months Ended
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Dec. 31, 2016
Equity Method Investments and Joint Ventures [Abstract] |
Investments in Unconsolidated Entities | Investments in Unconsolidated Entities Investments in entities over which we have significant influence but not control are accounted for by the equity method. We do not consolidate any part of the assets or liabilities of our equity investees. Our share of net income or loss is reflected as one line item on our Consolidated Statements of Operations entitled “Equity earnings in unconsolidated entities” and will increase or decrease, as applicable, the carrying value of our investments in unconsolidated entities on our Consolidated Balance Sheets. We evaluate our equity investments for impairment in accordance with FASB guidance with respect to the equity method of accounting for investments in common stock. An impairment of an equity investment results when factors indicate that the investment’s fair value is less than its carrying value and the reduction in value is other than temporary in nature. Our investments in unconsolidated entities consisted of the following (in millions, except percentage data):
|  |  |  | Ownership Interest at December 31, 2016 |  | December 31,
Entity |  | Type of Operation |  |  | 2016 |  | 2015
BridgeTex Pipeline Company, LLC (“BridgeTex”) |  | Crude Oil Pipeline |  | 50% |  | $ | 1,098 |  |  | $ | 1,082 |
Butte Pipe Line Company |  | Crude Oil Pipeline |  | 22% |  | 11 |  |  | 9 |
Caddo Pipeline LLC |  | Crude Oil Pipeline |  | 50% |  | 65 |  |  | 28 |
Cheyenne Pipeline LLC (“Cheyenne”) |  | Crude Oil Pipeline |  | 50% |  | 30 |  |  | — |
Diamond Pipeline LLC (“Diamond”) |  | Crude Oil Pipeline (1) |  | 50% |  | 143 |  |  | 38 |
Eagle Ford Pipeline LLC |  | Crude Oil Pipeline |  | 50% |  | 372 |  |  | 382 |
Eagle Ford Terminals Corpus Christi LLC (“Eagle Ford Terminals”) |  | Crude Oil Terminal and Dock (1) |  | 50% |  | 53 |  |  | 29 |
Frontier Aspen LLC |  | Crude Oil Pipeline |  | 50% |  | 45 |  |  | 48 |
Saddlehorn Pipeline Company, LLC |  | Crude Oil Pipeline |  | 40% |  | 213 |  |  | 103 |
Settoon, Towing LLC |  | Barge Transportation Services |  | 50% |  | 87 |  |  | 84 |
STACK Pipeline LLC (“STACK”) |  | Crude Oil Pipeline |  | 50% |  | 14 |  |  | — |
White Cliffs Pipeline, LLC |  | Crude Oil Pipeline |  | 36% |  | 212 |  |  | 224 |
Total Investments in Unconsolidated Entities |  |  |  |  |  | $ | 2,343 |  |  | $ | 2,027 |
(1) | Asset is currently under construction by the entity and has not yet been placed in service.
In June 2016, we sold 50% of our investment in Cheyenne, and in August 2016 we sold 50% of our investment in STACK. As a result of these transactions, we now account for our remaining 50% equity interest in such entities under the equity method of accounting. See Note 6 for additional information related to these transactions. In November 2014, we acquired a 50% interest in BridgeTex from Oxy. BridgeTex owns a crude oil pipeline that extends from Colorado City in West Texas to a crude oil terminal in East Houston, which we believe is complementary to our existing West Texas assets. We paid cash of $1.088 billion, including working capital adjustments of $13 million, for our interest in BridgeTex. Distributions received from unconsolidated entities are classified based on the nature of the distribution approach, which looks to the activity that generated the distribution. We consider distributions received from unconsolidated entities as a return on investment in those entities to the extent that the distribution was generated through operating results, and therefore classify these distributions as cash flows from operating activities in our Consolidated Statement of Cash Flows. Other distributions received from unconsolidated entities are considered a return of investment and classified as cash flows from investing activities on the Consolidated Statement of Cash Flows. We generally fund our portion of development, construction or capital expansion projects of our equity method investees through capital contributions. Our contributions to these entities increase the carrying value of our investments and are reflected in our Consolidated Statements of Cash Flows as cash used in investing activities. During the years ended December 31, 2016, 2015 and 2014, we made cash contributions of $288 million, $245 million and $158 million, respectively, to certain of our equity method investees. The contributions amount for 2015 is net of $53 million of cash received as a return of our investment. In addition, we capitalized interest of $13 million and $8 million during the years ended December 31, 2016 and 2015, respectively, related to contributions to unconsolidated entities for projects under development and construction. We anticipate that we will make additional contributions related to ongoing projects at BridgeTex, Diamond, Eagle Ford Terminals and STACK over the next few years. Our investments in unconsolidated entities exceeded our share of the underlying equity in the net assets of such entities by $736 million and $760 million at December 31, 2016 and 2015, respectively. Such basis differences are included in the carrying values of our investments on our Consolidated Balance Sheets. The portion of the basis differences attributable to depreciable or amortizable assets is amortized on a straight-line basis over the estimated useful life of the related assets, which reduces “Equity earnings in unconsolidated entities” on our Consolidated Statements of Operations. The portion of the basis differences attributable to goodwill is not amortized. The basis difference is primarily related to our acquisition of an interest in BridgeTex in 2014. Summarized Financial Information of Unconsolidated Entities Combined summarized financial information for all of our unconsolidated entities is shown in the tables below (in millions). None of our unconsolidated entities have noncontrolling interests.
| December 31,
| 2016 |  | 2015
Current assets | $ | 303 |  |  | $ | 365 |
Noncurrent assets | $ | 3,558 |  |  | $ | 2,901 |
Current liabilities | $ | 241 |  |  | $ | 231 |
Noncurrent liabilities | $ | 162 |  |  | $ | 184 |
| Year Ended December 31,
| 2016 |  | 2015 |  | 2014
Revenues | $ | 802 |  |  | $ | 769 |  |  | $ | 531 |
Operating income | $ | 469 |  |  | $ | 441 |  |  | $ | 301 |
Net income | $ | 452 |  |  | $ | 424 |  |  | $ | 285 |

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=66011266&loc=d3e33918-111571 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=64825282&loc=d3e32847-111569 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.12) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=64825282&loc=d3e32787-111569 + Details
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