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Transactions with Related Parties | 12 Months Ended
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Dec. 31, 2018
Transactions with Related Parties |
Transactions with Related Parties | (14) Transactions with Related Parties We provide compression services to entities affiliated with ETP, which as of December 31, 2018, owned approximately 48% of our limited partner interests, including all of the Class B Units, and 100% of the General Partner. During the year ended December 31, 2018, we recognized $17.1 million in revenue from such affiliated entities. As of December 31, 2018, we had $2.7 million in related party receivables from such affiliated entities and $0.4 million in related party payables to such affiliated entities. Additionally, the Partnership had a $44.9 million related party receivable from ETP as of December 31, 2018 related to indemnification for sales tax contingencies incurred by the USA Compression Predecessor. See Note 17 for more information related to such sales tax contingencies. The USA Compression Predecessor also provided compression services to entities affiliated with ETP. During the years ended December 31, 2017 and 2016, the USA Compression Predecessor recognized $17.2 million and $16.9 million, respectively, in revenue from such affiliated entities. As of December 31, 2017, the USA Compression Predecessor recognized $45,000 in related party receivables from such affiliated entities and $2.0 million in related party payables to such affiliated entities. Accounts receivable and payable that related to revenues and expenses between the USA Compression Predecessor and ETP were reclassified to Predecessor parent company net investment as there was no expectation that those amounts would be settled in cash. ETP provided certain benefits to the USA Compression Predecessor employees which did not continue following the Transactions Date. ETP provided medical, dental and other healthcare benefits to the USA Compression Predecessor employees. The total amount incurred by ETP for the benefit of the USA Compression Predecessor employees for the years ended December 31, 2018, 2017 and 2016 was $1.9 million, $7.4 million and $5.8 million, respectively, which was allocated to the USA Compression Predecessor and recorded in operation and maintenance and general and administrative expenses, as appropriate. ETP also provided a matching contribution to the USA Compression Predecessor employees’ 401(k) accounts. The total amount of matching contributions incurred for the benefit of the USA Compression Predecessor employees for the years ended December 31, 2018, 2017 and 2016 was $0.9 million, $3.0 million and $2.7 million, respectively, which was allocated to the USA Compression Predecessor and recorded in operation and maintenance and general and administrative expenses, as appropriate. ETP also provided a 3% profit sharing contribution to the 401(k) accounts for all USA Compression Predecessor employees with base compensation below a specified threshold. The contribution was in addition to the 401(k) matching contribution and employees became vested in the profit sharing contribution based on years of service. ETP allocated certain overhead costs associated with general and administrative services, including salaries and benefits, facilities, insurance, information services, human resources and other support departments to the USA Compression Predecessor which did not continue following the Transactions Date. Where costs incurred on the USA Compression Predecessor’s behalf could not be determined by specific identification, the costs were primarily allocated to the USA Compression Predecessor based on an average percentage of fixed assets, net income (loss) and adjusted EBITDA. The USA Compression Predecessor believes these allocations were a reasonable reflection of the utilization of services provided. However, the allocations may not fully reflect the expenses that would have been incurred had the USA Compression Predecessor been a standalone company during the periods presented. During the years ended December 31, 2018, 2017 and 2016 ETP allocated general and administrative expenses of $1.8 million, $3.6 million and $4.7 million, respectively, to the USA Compression Predecessor. An independent director of the General Partner serves as a director of one of our customers. During the period of such director’s appointment as a director of the General Partner during the year ended December 31, 2018, we recognized $0.3 million in revenue on compression services and $0 in accounts receivable from this customer on the Consolidated Balance Sheets as of December 31, 2018. Pursuant to that certain Board Representation Agreement entered into by us, the General Partner, ETE and EIG in connection with our private placement of Preferred Units and Warrants to EIG, EIG Management Company, LLC has the right to designate one of the members of the Board for so long as the holders of the Preferred Units hold more than 5% of the Partnership’s outstanding common units in the aggregate (taking into account the common units that would be issuable upon conversion of the Preferred Units and exercise of the Warrants).

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- Definition The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -URI http://asc.fasb.org/topic&trid=2122745 + Details
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