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
 
Fair Value Measurements
The following tables set forth, by level within the Level 1, 2 and 3 fair value hierarchy (see Note 2), the carrying values of our financial assets and liabilities at the dates indicated. These assets and liabilities are measured on a recurring basis and are classified based on the lowest level of input used to estimate their fair value. Our assessment of the relative significance of such inputs requires judgment.

The values for commodity derivatives at December 31, 2017 are presented before and after the application of CME Rule 814, which deems that financial instruments cleared by the CME are settled daily in connection with variation margin payments.  As a result of this new exchange rule, CME-related derivatives are considered to have no fair value at the balance sheet date for financial reporting purposes; however, the derivatives remain outstanding and subject to future commodity price fluctuations until they are settled in accordance with their contractual terms.  The rule change was effective January 1, 2017.

 
 
December 31, 2017
Fair Value Measurements Using
       
 
 
Quoted Prices
in Active
Markets for
Identical Assets
and Liabilities
(Level 1)
   
Significant
Other
Observable
Inputs
(Level 2)
   
Significant
Unobservable
Inputs
(Level 3)
   
Total
 
Financial assets:
                       
Interest rate derivatives
 
$
--
   
$
0.1
   
$
--
   
$
0.1
 
Commodity derivatives:
                               
Value before application of CME Rule 814
   
47.1
     
184.9
     
2.9
     
234.9
 
Impact of CME Rule 814 change
   
(47.1
)
   
(26.1
)
   
--
     
(73.2
)
Total commodity derivatives
   
--
     
158.8
     
2.9
     
161.7
 
Total
 
$
--
   
$
158.9
   
$
2.9
   
$
161.8
 
 
                               
Financial liabilities:
                               
Liquidity Option Agreement
 
$
--
   
$
--
   
$
333.9
   
$
333.9
 
Interest rate derivatives
   
--
     
1.7
     
--
     
1.7
 
Commodity derivatives:
                               
Value before application of CME Rule 814
   
118.4
     
270.6
     
1.7
     
390.7
 
Impact of CME Rule 814 change
   
(118.4
)
   
(95.4
)
   
--
     
(213.8
)
Total commodity derivatives
   
--
     
175.2
     
1.7
     
176.9
 
Total
 
$
--
   
$
176.9
   
$
335.6
   
$
512.5
 

 
 
December 31, 2016
Fair Value Measurements Using
       
 
 
Quoted Prices
in Active
Markets for
Identical Assets
and Liabilities
(Level 1)
   
Significant
Other
Observable
Inputs
(Level 2)
   
Significant
Unobservable
Inputs
(Level 3)
   
Total
 
Financial assets:
                       
Interest rate derivatives
 
$
--
   
$
36.5
   
$
--
   
$
36.5
 
Commodity derivatives
   
84.5
     
455.2
     
1.7
     
541.4
 
Total
 
$
84.5
   
$
491.7
   
$
1.7
   
$
577.9
 
 
                               
Financial liabilities:
                               
Liquidity Option Agreement
 
$
--
   
$
--
   
$
269.6
   
$
269.6
 
Interest rate derivatives
   
--
     
1.1
     
--
     
1.1
 
Commodity derivatives
   
136.8
     
602.3
     
0.3
     
739.4
 
Total
 
$
136.8
   
$
603.4
   
$
269.9
   
$
1,010.1
 

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