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

Goodwill
Goodwill represents the excess of the purchase price of an acquired business over the amounts assigned to assets acquired and liabilities assumed in the transaction.  Goodwill is not amortized; however, it is subject to annual impairment testing at the end of each fiscal year, and more frequently, if circumstances indicate it is probable that the fair value of goodwill is below its carrying amount.  The following table presents changes in the carrying amount of goodwill during the periods indicated:

 
 
NGL
Pipelines
& Services
   
Crude Oil
Pipelines
& Services
   
Natural Gas
Pipelines
& Services
   
Petrochemical
& Refined
Products
Services
   
Offshore
Pipelines
& Services
   
Consolidated
Total
 
Balance at January 1, 2015
 
$
2,210.2
   
$
918.7
   
$
296.3
   
$
793.0
   
$
82.0
   
$
4,300.2
 
Reclassification of Oiltanking IDR balances to goodwill in connection with the cancellation of such rights and other adjustments
   
432.6
     
850.7
     
--
     
170.8
     
--
     
1,454.1
 
Reduction in goodwill related to the sale of assets
   
--
     
(2.1
)
   
--
     
--
     
(82.0
)
   
(84.1
)
Addition to goodwill related to the acquisition of EFS Midstream
   
8.9
     
73.7
     
--
     
--
     
--
     
82.6
 
Goodwill reclassified to assets held-for-sale
   
--
     
--
     
--
     
(7.6
)
   
--
     
(7.6
)
Balance at December 31, 2015
   
2,651.7
     
1,841.0
     
296.3
     
956.2
     
--
     
5,745.2
 
Balance at December 31, 2016
   
2,651.7
     
1,841.0
     
296.3
     
956.2
     
--
     
5,745.2
 
Balance at December 31, 2017
 
$
2,651.7
   
$
1,841.0
   
$
296.3
   
$
956.2
   
$
--
   
$
5,745.2
 

We did not record any goodwill impairment charges during the years ended December 31, 2017, 2016 or 2015.  Based on our most recent goodwill impairment test at December 31, 2017, each reporting unit’s fair value was substantially in excess of its carrying value (i.e., by at least 10%). 

Upon completion of Step 2 of the Oiltanking acquisition in February 2015, the IDRs of Oiltanking were cancelled and the associated $1.45 billion carrying value of this identifiable intangible asset was reclassified to goodwill. In the aggregate, we recorded $3.67 billion of goodwill in connection with the Oiltanking acquisition.  Factors contributing to the recognition of goodwill in the Oiltanking acquisition include (i) opportunities for new business and repurposing existing assets for “best use” in order to meet anticipated increased demand for export and logistical services related to North American crude oil, condensate and NGL production, (ii) securing ownership and control of assets that are essential to our other midstream assets and (iii) cost savings from integrating Oiltanking’s operations into our midstream asset network.  See Note 12 for additional information regarding the Oiltanking acquisition.

In July 2015, we recorded $82.6 million of goodwill in connection with our acquisition of EFS Midstream (see Note 12).  In general, we attribute this goodwill to our ability to leverage the acquired business with our existing midstream asset network to create future business opportunities.

In July 2015, we removed $82.0 million of goodwill in connection with sale of the Offshore Business (see Note 10). 

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