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 categories of long-lived assets, primarily property, plant and equipment, that were subject to non-recurring fair value measurements during the year ended December 31, 2016:

 
       
Fair Value Measurements
at the End of the Reporting Period Using
       
 
 
Carrying
Value at
December 31,
2016
   
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
   
Significant
Other
Observable
Inputs
(Level 2)
   
Significant
Unobservable
Inputs
(Level 3)
   
Total
Non-Cash
Impairment
Loss
 
Long-lived assets disposed of other than by sale
 
$
--
   
$
--
   
$
--
   
$
--
   
$
29.9
 
Long-lived assets held and used
   
8.0
     
8.0
     
--
     
--
     
2.2
 
Long-lived assets disposed of by sale
   
--
     
--
     
--
     
--
     
13.1
 
Total
                                 
$
45.2
 

Total non -cash asset impairment and related charges during 2016 were $53.5 million, which consisted of $45.2 million of impairment charges attributable to long-lived assets, $1.2 million of impairment charges attributable to the write-down of surplus materials classified as current assets, and $7.1 million of related charges for equipment destroyed by fire at our Pascagoula gas plant.  Impairment charges attributable to long-lived assets primarily relate to the planned abandonment of certain plant and pipeline assets in Texas and New Mexico.

Our non-cash asset impairment charges for the year ended December 31, 2015 are a component of operating costs and expenses and primarily reflect the $54.8 million charge we recorded in connection with the sale of our Offshore Business and the abandonment of certain natural gas and crude oil pipeline assets in Texas.  The following table presents categories of long-lived assets that were subject to non-recurring fair value measurements during the year ended December 31, 2015:

 
       
Fair Value Measurements
at the End of the Reporting Period Using
       
 
 
Carrying
Value at
December 31,
2015
   
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
   
Significant
Other
Observable
Inputs
(Level 2)
   
Significant
Unobservable
Inputs
(Level 3)
   
Total
Non-Cash
Impairment
Loss
 
Long-lived assets disposed of other than by sale
 
$
0.4
   
$
--
   
$
--
   
$
0.4
   
$
81.4
 
Long-lived assets held for sale
   
18.0
     
--
     
--
     
18.0
     
14.2
 
Long-lived assets disposed of by sale
   
--
     
--
     
--
     
--
     
67.0
 
Total
                                 
$
162.6
 

Other Fair Value Information
The carrying amounts of cash and cash equivalents (including restricted cash balances), accounts receivable, commercial paper notes and accounts payable approximate their fair values based on their short-term nature.  

The estimated total fair value of our fixed-rate debt obligations was $23.47 billion and $21.95 billion at December 31, 2017 and 2016, respectively.  The aggregate carrying value of these debt obligations was $21.48 billion and $20.85 billion at December 31, 2017 and 2016, respectively.  These values are primarily based on quoted market prices for such debt or debt of similar terms and maturities (Level 2) and our credit standing.  Changes in market rates of interest affect the fair value of our fixed-rate debt.  The amounts reported for fixed-rate debt obligations exclude those amounts hedged using fixed-to-floating interest rate swaps.  See “Interest Rate Hedging Activities” within this Note 14 for additional information.  

The carrying values of our variable-rate long-term debt obligations approximate their fair values since the associated interest rates are market-based.  We do not have any long-term investments in debt or equity securities recorded at fair value.

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