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Investments in Non-Controlled Entities (Tables) | 12 Months Ended
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Dec. 31, 2018
Equity Method Investments and Joint Ventures [Abstract] |
Equity Method Investments | Our investments in non-controlled entities at December 31, 2018 were comprised of:
Entity |  | Ownership Interest
BridgeTex Pipeline Company, LLC (“BridgeTex”) |  | 30%
Double Eagle Pipeline LLC (“Double Eagle”) |  | 50%
HoustonLink Pipeline Company, LLC (“HoustonLink”) |  | 50%
MVP Terminalling, LLC (“MVP”) |  | 50%
Powder Springs Logistics, LLC (“Powder Springs”) |  | 50%
Saddlehorn Pipeline Company, LLC (“Saddlehorn”) |  | 40%
Seabrook Logistics, LLC (“Seabrook”) |  | 50%
Texas Frontera, LLC (“Texas Frontera”) |  | 50%
In September 2018, we sold a 20% interest in BridgeTex to an affiliate of OMERS Infrastructure Management Inc. (“OMERS”), which reduced our ongoing ownership in BridgeTex to a 30% interest. We received $575.6 million in net proceeds from the sale, and we recorded a gain of $353.8 million on our consolidated statements of income. See Note 16 – Commitments and Contingencies for details regarding our indemnity to OMERS that was recorded in relation to the sale. We own a 50% equity interest in MVP, with an affiliate of Valero Energy Corporation (“Valero”) owning the other 50% interest. Upon formation of MVP in September 2017, we contributed $97.6 million of PP&E to this entity. Concurrently, Valero contributed cash of $48.8 million, which was distributed to us as reimbursement for Valero’s portion of the PP&E we contributed. The $48.8 million is reflected as distributions from returns of investments in non-controlled entities on our consolidated statements of cash flows. We serve as operator of BridgeTex, HoustonLink, MVP, Powder Springs, Saddlehorn, Texas Frontera and the pipeline activities of Seabrook. We receive fees for management services as well as reimbursement or payment to us for certain direct operational payroll and other overhead costs. The management fees we have received are reported as affiliate management fee revenue on our consolidated statements of income. Cost reimbursements we receive from these entities in connection with our operating services are included as reductions to costs and expenses on our consolidated statements of income and totaled $4.2 million, $3.6 million and $3.9 million, respectively, for the years ended December 31, 2016, 2017 and 2018. We recorded the following revenue and expense transactions from certain of these non-controlled entities in our consolidated statements of income (in millions):
|  | Year Ended December 31,
|  | 2016 |  | 2017 |  | 2018
Transportation and terminals revenue: |  |  |  |  |  |
BridgeTex, capacity lease |  | $ | 35.5 |  |  | $ | 36.1 |  |  | $ | 39.6 |
Double Eagle, throughput revenue |  | $ | 3.3 |  |  | $ | 4.7 |  |  | $ | 5.2 |
Saddlehorn, storage revenue |  | $ | 0.7 |  |  | $ | 2.1 |  |  | $ | 2.2 |
Operating costs: |  |  |  |  |  |
Seabrook, storage and ancillary services |  | $ | — |  |  | $ | — |  |  | $ | 10.6 |
MVP, sale of air emission reduction credits (reduction of operating costs) |  | $ | — |  |  | $ | — |  |  | $ | (2.2 | )
Product sales revenue: |  |  |  |  |  |
Powder Springs, butane sales |  | $ | — |  |  | $ | — |  |  | $ | 4.9 |
Cost of product sales: |  |  |  |  |  |
BridgeTex, transportation charges |  | $ | — |  |  | $ | 14.5 |  |  | $ | — |
Powder Springs, butane purchases |  | $ | — |  |  | $ | — |  |  | $ | 0.4 |
Our consolidated balance sheets reflected the following balances related to our investments in non-controlled entities (in millions):
|  | December 31, 2017 |  | December 31, 2018
|  | Trade Accounts Receivable |  | Other Accounts Receivable |  | Other Accounts Payable |  | Trade Accounts Receivable |  | Other Accounts Receivable |  | Other Accounts Payable |  | Long-Term Receivables
BridgeTex |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 0.3 |  |  | $ | 1.5 |  |  | $ | — |  |  | $ | — |
Double Eagle |  | $ | 0.5 |  |  | $ | — |  |  | $ | — |  |  | $ | 0.5 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
HoustonLink |  | $ | — |  |  | $ | — |  |  | $ | 0.1 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
MVP |  | $ | — |  |  | $ | 0.4 |  |  | $ | — |  |  | $ | — |  |  | $ | 0.4 |  |  | $ | — |  |  | $ | — |
Powder Springs |  | $ | — |  |  | $ | 0.9 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2.2 |
Saddlehorn |  | $ | — |  |  | $ | 0.1 |  |  | $ | — |  |  | $ | — |  |  | $ | 0.2 |  |  | $ | — |  |  | $ | — |
Seabrook |  | $ | — |  |  | $ | 0.2 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1.1 |  |  | $ | — |
We have entered into a long-term lease for 1.7 million barrels of storage from Seabrook (see Note 13 – Leases for future minimum annual rentals under this lease) which is connected to our Houston distribution system. This agreement also provides us with designated access to Seabrook’s docks for crude oil import and export opportunities. We in turn generate revenue by providing this storage capacity and dock access to our third-party customers. We incurred charges for transportation of crude oil at published spot tariff rates on the BridgeTex pipeline of $14.5 million for the year ended December 31, 2018, which were recorded as cost of product sales in our consolidated statements of income. We purchased inventory from BridgeTex valued at $6.7 million during 2017. The financial results from MVP and Texas Frontera are included in our marine storage segment, the financial results from BridgeTex, Double Eagle, HoustonLink, Saddlehorn and Seabrook are included in our crude oil segment and the financial results from Powder Springs are included in our refined products segment, each as earnings of non-controlled entities. A summary of our investments in non-controlled entities (representing only our proportionate interests) follows (in thousands):
Investments at December 31, 2017 |  | $ | 1,082,511 |
Additional investment |  | 216,424 |
Sale of ownership interest in BridgeTex |  | (205,776 | )
Other adjustments |  | 502 |
Earnings of non-controlled entities: |  |
Proportionate share of earnings |  | 183,317 |
Amortization of excess investment and capitalized interest |  | (2,200 | )
Earnings of non-controlled entities |  | 181,117 |
Less: |  |
Distributions from operations of non-controlled entities |  | 196,686 |
Distributions from returns of investments in non-controlled entities |  | 1,786 |
Investments at December 31, 2018 |  | $ | 1,076,306 |
Summarized financial information of our non-controlled entities (representing 100% of the interests in these entities) follows (in thousands):
|  | December 31,
|  | 2017 |  | 2018
Current assets |  | $ | 229,342 |  |  | $ | 258,698 |
Noncurrent assets |  | 2,057,892 |  |  | 2,461,456 |
Total assets |  | $ | 2,287,234 |  |  | $ | 2,720,154 |
Current liabilities |  | $ | 122,198 |  |  | $ | 170,558 |
Noncurrent liabilities |  | 74,533 |  |  | 73,700 |
Total liabilities |  | $ | 196,731 |  |  | $ | 244,258 |
Equity |  | $ | 2,090,503 |  |  | $ | 2,475,896 |
|  | Year Ended December 31,
|  | 2016 |  | 2017 |  | 2018
Revenue |  | $ | 279,180 |  |  | $ | 419,214 |  |  | $ | 631,420 |
Net income |  | $ | 164,684 |  |  | $ | 256,423 |  |  | $ | 416,128 |

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- Definition Tabular disclosure of equity method investments including, but not limited to, name of each investee or group of investments, percentage ownership, difference between recorded amount of an investment and the value of the underlying equity in the net assets, and summarized financial information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571 + Details
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