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

Relationships with Unconsolidated Affiliates
Many of our unconsolidated affiliates perform supporting or complementary roles to our other business operations.  The following information summarizes significant related party transactions with our current unconsolidated affiliates:

For the years ended December 31, 2017, 2016 and 2015, we paid Seaway $98.8 million, $161.2 million and $175.8 million, respectively, for pipeline transportation and storage services in connection with our crude oil marketing activities.  Revenues from Seaway were $19.6 million, $36.3 million and $47.7 million for the years ended December 31, 2017, 2016 and 2015, respectively.

We pay Promix for the transportation, storage and fractionation of NGLs.  In addition, we sell natural gas to Promix for its plant fuel requirements.  Revenues from Promix were $7.8 million, $7.0 million and $8.8 million for the years ended December 31, 2017, 2016 and 2015, respectively.  Expenses with Promix were $27.8 million, $27.1 million and $24.9 million for the years ended December 31, 2017, 2016 and 2015, respectively.

For the years ended December 31, 2017, 2016 and 2015, we paid Texas Express $29.5 million, $22.8 million and $6.7 million, respectively, for pipeline transportation services.  

For the years ended December 31, 2017, 2016 and 2015, we paid Eagle Ford Crude Oil Pipeline $42.8 million, $36.2 million and $39.4 million, respectively, for crude oil transportation.

We perform management services for certain of our unconsolidated affiliates.  We charged such affiliates $10.6 million, $10.7 million and $19.1 million for the years ended December 31, 2017, 2016 and 2015, respectively.  The decrease in such amounts during 2016 is related to the sale of our Offshore Business.


Note 16.  Provision for Income Taxes

Publicly traded partnerships like ours are treated as corporations unless they have 90% or more in “qualifying income” (as that term is defined in the Internal Revenue Code).  We satisfied this requirement in each of the years ended December 31, 2017, 2016 and 2015 and, as a result, are not subject to federal income tax.  However, our partners are individually responsible for paying federal income tax on their share of our taxable income.  Net earnings for financial reporting purposes may differ significantly from taxable income reportable to our unitholders as a result of differences between the tax basis and financial reporting basis of certain assets and liabilities and other factors.  We do not have access to information regarding each partner’s individual tax basis in our limited partner interests.  

Provision for income taxes primarily reflects our state tax obligations under the Revised Texas Franchise Tax (the “Texas Margin Tax”).  Deferred income tax assets and liabilities are recognized for temporary differences between the assets and liabilities of our tax paying entities for financial reporting and tax purposes.

Our federal, state and foreign income tax provision (benefit) is summarized below:

 
 
For the Year Ended December 31,
 
 
 
2017
   
2016
   
2015
 
Current:
                 
Federal
 
$
0.1
   
$
(0.5
)
 
$
0.9
 
State
   
18.5
     
16.7
     
15.5
 
Foreign
   
1.0
     
0.6
     
1.7
 
Total current
   
19.6
     
16.8
     
18.1
 
Deferred:
                       
Federal
   
(1.8
)
   
1.1
     
(1.4
)
State
   
7.9
     
5.2
     
(19.2
)
Foreign
   
--
     
0.3
     
--
 
Total deferred
   
6.1
     
6.6
     
(20.6
)
Total provision for (benefit from) income taxes
 
$
25.7
   
$
23.4
   
$
(2.5
)

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