v2.4.0.8
Long-Term Incentive Plan (Tables)
12 Months Ended
Dec. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Changes In Non-Vested Unit Awards
 
 
Equity Method
 
Liability Method Performance-Based Awards
 
 
 
 
 
 
Performance-Based Awards
 
Retention Awards
 
 
Total Awards
 
 

Number of Unit
Awards
 
Weighted-Average Grant Date Fair Value
 

Number of Unit
Awards
 
Weighted-Average Grant Date Fair Value
 

Number of Unit
Awards
 
Weighted-Average Fair Value
 

Number of Unit
Awards
 
Weighted-Average Fair Value
Non-vested units - 1/1/2013
 
444,090

 
$
31.24

 
58,802

 
$
24.60

 
111,025

 
$
43.19

 
613,917

 
$
32.77

Units granted during 2013
 
182,798

 
$
51.49

 
22,668


$
53.02


45,700


$
51.49

 
251,166

 
$
51.63

Units vested during 2013
 
(228,058
)
 
$
29.07

 
(2,207
)
 
$
34.02

 
(57,015
)
 
$
63.27

 
(287,280
)
 
$
35.90

Units forfeited during 2013
 
(9,420
)
 
$
35.98

 
(4,052
)
 
$
25.00

 
(2,355
)
 
$
63.27

 
(15,827
)
 
$
37.23

Non-vested units - 12/31/13
 
389,410

 
$
41.90

 
75,211

 
$
32.87

 
97,355

 
$
63.27

 
561,976

 
$
44.40

Total Non-Vested Unit Awards
Grant Date
Unit Awards Granted
 
Estimated Forfeitures
 
Adjustment to Unit Awards in Anticipation of Achieving Above- Target Financial Results
 
Total Unit Award Accrual
 
Vesting Date
 
Unrecognized Compensation Expense(a)         (in millions)
 
Performance-Based Awards:
 
 
 
 
 
 
 
 
 
 
 
 
2012 Awards
267,322

 
39,225

 
228,097

 
456,194

 
12/31/2014
 
$
6.0

 
2013 Awards
228,498

 
31,869

 
147,472

 
344,101

 
12/31/2015
 
12.4

 
Retention Awards:
 
 
 
 
 
 
 
 
 
 
 
 
2014 Vesting Date
71,849

 
10,778

 

 
61,071

 
12/31/2014
 
0.7

 
2015 Vesting Date
444

 
22

 

 
422

 
12/31/2015
 

 
2016 Vesting Date
13,300

 
665

 

 
12,635

 
12/31/2016
 
0.7

 
Total
581,413

 
82,559

 
375,569

 
874,423

 
 
 
$
19.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 

(a) Unrecognized compensation expense will be recognized over the remaining vesting period of the awards.

Weighted-Average Grant Date Fair Values
 
 
Equity Method
 
 
 
 
Performance-Based Awards
 
Retention Awards
 
Liability Method Performance-Based Awards
 
 

Number of
Unit
Awards
 
Weighted-Average Grant Date Fair Value
 

Number of Unit
Awards
 
Weighted-Average Grant Date Fair Value
 

Number of Unit
Awards
 
Weighted-Average Fair Value
Units granted during 2011
 
281,180

 
$
28.52

 
59,880

 
$
23.96

 
70,296

 
$
34.32

Units granted during 2012
 
214,232

 
$
33.57

 
7,016

 
$
30.54

 
53,558

 
$
33.57

Units granted during 2013
 
182,798

 
$
51.49

 
22,668

 
$
53.02

 
45,700

 
$
51.49

Vested Unit Awards
The table below sets forth the numbers and values of units that vested in each of the three years ended December 31, 2013. The vested limited partner units include adjustments for above-target performance.
Vesting Date
 
Vested
Limited
Partner Units
 
Fair Value of Unit Awards on Vesting Date (in millions)*
 
Intrinsic Value of Unit Awards on Vesting Date (in millions)
12/31/2011
 
1,100,276

 
$
16.5

 
$
37.9

12/31/2012
 
751,237

 
$
17.1

 
$
32.5

12/31/2013
 
572,353

 
$
20.5

 
$
36.2

 
 
 
 
 
 
 

* Represents the amount of the equity-based liabilities settled in January of the year following the vesting date.
Cash Flow Effects Of LTIP Settlements
We settle awards that vest by issuing limited partner units. The difference between the limited partner units issued to the participants and the total units accrued represents the minimum tax withholdings associated with the award settlement, which we pay in cash.
Settlement Date
 
Number of Limited Partner Units Issued, Net of Tax Withholdings
 
Minimum Tax Withholdings
(in millions)
 
Employer Taxes (in millions)
 
Total Cash Taxes Paid (in millions)
January 2011
 
505,492

 
$
7.4

 
$
0.9

 
$
8.3

January 2012
 
722,766

 
$
13.0

 
$
1.3

 
$
14.3

January 2013
 
476,682

 
$
12.3

 
$
1.1

 
$
13.4

Equity-Based Incentive Compensation Expense
Equity-based incentive compensation expense, excluding amounts for directors (discussed below), for 2011, 2012 and 2013 was as follows (in thousands):
 
 
Year Ended December 31, 2011
 
Year Ended December 31, 2012
 
Year Ended December 31, 2013
 
Equity
Method
 
Liability
Method
 
Total
 
Equity
Method
 
Liability
Method
 
Total
 
Equity
Method
 
Liability
Method
 
Total
2009 awards
$
4,418

 
$
4,264

 
$
8,682

 
$

 
$

 
$

 
$

 
$

 
$

2010 awards
3,100

 
1,562

 
4,662

 
4,937

 
3,723

 
8,660

 
121

 
73

 
194

2011 awards
2,839

 
841

 
3,680

 
5,062

 
2,094

 
7,156

 
5,359

 
4,280

 
9,639

2012 awards

 

 

 
3,426

 
1,101

 
4,527

 
4,751

 
2,747

 
7,498

2013 awards

 

 

 

 

 

 
4,726

 
1,451

 
6,177

Retention awards
686

 

 
686

 
693

 

 
693

 
575

 

 
575

Total
$
11,043

 
$
6,667

 
$
17,710

 
$
14,118

 
$
6,918

 
$
21,036

 
$
15,532

 
$
8,551

 
$
24,083

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allocation of LTIP expense on our consolidated statements of income:
 
 
 
 
 
 
 
 
 
 
G&A expense
 
 
 
$
16,024

 
 
 
 
 
$
18,587

 
 
 
 
 
$
23,264

Operating expense
 
 
 
1,686

 
 
 
 
 
2,449

 
 
 
 
 
819

Total
 
 
 
$
17,710

 
 
 
 
 
$
21,036

 
 
 
 
 
$
24,083

Director Equity-Based Compensation Expense
 
 
Year Ended December 31,
 
 
2011
 
2012
 
2013
Phantom units earned pursuant to the LTIP
 
20,284

 
20,054

 
16,424

 
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
 
Compensation - phantom unit expense
 
$
446

 
$
523

 
$
533

Distribution equivalents
 
139

 
195

 
267

Changes in market value of phantom units
 
568

 
973

 
2,535

Total value of phantom units
 
1,153

 
1,691

 
3,335

Compensation paid in cash
 
292

 
345

 
422

Compensation paid in our limited partner units
 
140

 
170

 
85

Total director compensation
 
1,585

 
2,206

 
3,842

Distribution equivalents charged to partners' capital
 
(139
)
 
(195
)
 
(267
)
Total director compensation expense
 
$
1,446

 
$
2,011

 
$
3,575