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
 
The following table presents supplemental information regarding restricted common unit awards for the periods indicated:

 
 
For the Year Ended December 31,
 
 
 
2017
   
2016
   
2015
 
Cash distributions paid to restricted common unitholders
 
$
0.3
   
$
1.6
   
$
4.0
 
Total intrinsic value of restricted common unit awards that vested during period
 
$
18.9
   
$
28.5
   
$
67.3
 

Unit Option Awards
EPCO’s long-term incentive plans provide for the issuance of non-qualified incentive options denominated in our common units.  Historically, our unit option awards were issued under the 1998 Plan. All such awards had been exercised as of December 31, 2015 and no new unit option awards were granted during the three years ended December 31, 2017.

When issued, the exercise price of each unit option award was equal to the market price of our common units on the date of grant.  In general, unit option awards had a vesting period of four years from the date of grant and expired at the end of the calendar year following the year of vesting.  The fair value of each unit option award was estimated on the date of grant using a Black-Scholes option pricing model, which incorporated various assumptions including expected life of the option, risk-free interest rates, expected distribution yield of our common units, and expected price volatility of our common units.  Compensation expense recorded in connection with unit option awards was based on the grant date fair value, net of an allowance for estimated forfeitures, over the requisite service or vesting period.

The following table presents unit option award activity for the period indicated:

 
 
Number of
Units
   
Weighted-
Average
Strike Price
(dollars/unit)
 
Unit option awards at January 1, 2015
   
1,270,000
   
$
16.14
 
Exercised
   
(1,270,000
)
 
$
16.14
 
Unit option awards at December 31, 2015
   
--
   
$
--
 

In order to fund its unit option award-related obligations, EPCO purchased our common units at fair value directly from us.  When employees exercised unit option awards, we reimbursed EPCO for the cash difference between the strike price paid by the employee and the actual purchase price paid by EPCO for the units issued to the employee.
 
The following table presents supplemental information regarding unit option awards during the year ended December 31, 2015:

Total intrinsic value of unit option awards exercised during period
 
$
21.7
 
Cash received from EPCO in connection with the exercise of unit option awards
 
$
13.1
 
Unit option award-related cash reimbursements to EPCO
 
$
21.7
 

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