Enterprise Products Partners L.P.

SEC Filings

10-K
ENTERPRISE PRODUCTS PARTNERS L P filed this Form 10-K on 02/28/2018
Entire Document
 

ENTERPRISE PRODUCTS PARTNERS L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 5.  Property, Plant and Equipment

The historical costs of our property, plant and equipment and related accumulated depreciation balances were as follows at the dates indicated:

 
 
Estimated
Useful Life
   
December 31,
 
 
 
in Years
   
2017
   
2016
 
Plants, pipelines and facilities (1)
 
3-45 (5)
 
 
$
37,132.2
   
$
35,124.6
 
Underground and other storage facilities (2)
 
5-40 (6)
 
   
3,460.9
     
3,326.9
 
Transportation equipment (3)
 
3-10
     
177.1
     
165.8
 
Marine vessels (4)
 
15-30
     
803.8
     
800.7
 
Land
           
273.1
     
264.6
 
Construction in progress
           
4,698.1
     
3,320.7
 
Total
           
46,545.2
     
43,003.3
 
Less accumulated depreciation
           
10,924.8
     
9,710.8
 
Property, plant and equipment, net
         
$
35,620.4
   
$
33,292.5
 
                         
(1)   Plants, pipelines and facilities include processing plants; NGL, natural gas, crude oil and petrochemical and refined products pipelines; terminal loading and unloading facilities; buildings; office furniture and equipment; laboratory and shop equipment and related assets.
(2)   Underground and other storage facilities include underground product storage caverns; above ground storage tanks; water wells and related assets.
(3)   Transportation equipment includes tractor-trailer tank trucks and other vehicles and similar assets used in our operations.
(4)   Marine vessels include tow boats, barges and related equipment used in our marine transportation business.
(5)   In general, the estimated useful lives of major assets within this category are: processing plants, 20-35 years; pipelines and related equipment, 5-45 years; terminal facilities, 10-35 years; buildings, 20-40 years; office furniture and equipment, 3-20 years; and laboratory and shop equipment, 5-35 years.
(6)   In general, the estimated useful lives of assets within this category are: underground storage facilities, 5-35 years; storage tanks, 10-40 years; and water wells, 5-35 years.
 

The following table summarizes our depreciation expense and capitalized interest amounts for the periods indicated:

 
 
For the Year Ended December 31,
 
 
 
2017
   
2016
   
2015
 
Depreciation expense (1)
 
$
1,296.1
   
$
1,215.7
   
$
1,161.6
 
Capitalized interest (2)
   
192.1
     
168.2
     
149.1
 
(1)   Depreciation expense is a component of “Costs and expenses” as presented on our Statements of Consolidated Operations.
(2)   Capitalized interest is a component of “Interest expense” as presented on our Statements of Consolidated Operations.
 

Asset Retirement Obligations
We record AROs in connection with legal requirements to perform specified retirement activities under contractual arrangements and/or governmental regulations.  Our contractual AROs primarily result from right-of-way agreements associated with our pipeline operations and real estate leases associated with our plant sites.  In addition, we record AROs in connection with governmental regulations associated with the abandonment or retirement of above-ground brine storage pits and certain marine vessels.  We also record AROs in connection with regulatory requirements associated with the renovation or demolition of certain assets containing hazardous substances such as asbestos.  We typically fund our AROs using cash flow from operations.

Property, plant and equipment at December 31, 2017 and 2016 includes $39.9 million and $44.9 million, respectively, of asset retirement costs capitalized as an increase in the associated long-lived asset.

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