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

Involuntary conversions result from the loss of an asset due to some unforeseen event (e.g., destruction due to a fire).  Some of these events are covered by insurance, thus resulting in a property damage insurance recovery.  Amounts we receive from insurance carriers are net of any deductibles related to the covered event.  We record a receivable from insurance to the extent we recognize a loss from an involuntary conversion event and the likelihood of our recovering such loss is deemed probable.  To the extent that any of our insurance claim receivables are later judged not probable of recovery (e.g., due to new information), such amounts are expensed.  We recognize gains on involuntary conversions when the amount received from insurance exceeds the net book value of the retired assets.

In addition, we do not recognize gains related to insurance recoveries until all contingencies related to such proceeds have been resolved, that is, a non-refundable cash payment is received from the insurance carrier or we have a binding settlement agreement with the carrier that clearly states that a non-refundable payment will be made.  To the extent that an asset is rebuilt, the associated expenditures are capitalized, as appropriate, on our Consolidated Balance Sheets and presented as “Capital expenditures” on our Statements of Consolidated Cash Flows.

Under our current insurance program, the standalone deductible for property damage claims is $30 million. We also have business interruption protection; however, such claims must involve physical damage and have a combined loss value in excess of $30 million and the period of interruption must exceed 60 days. With respect to named windstorm claims, the maximum amount of insurance coverage available to us for any single event is $200 million, after applying the appropriate deductibles. A named windstorm is a hurricane, typhoon, tropical storm or cyclone as declared by the U.S. National Weather Service.


Note 19.  Supplemental Cash Flow Information

The following table provides information regarding the net effect of changes in our operating accounts and cash payments for interest and income taxes for the periods indicated:

 
 
For the Year Ended December 31,
 
 
 
2017
   
2016
   
2015
 
Decrease (increase) in:
                 
Accounts receivable – trade
 
$
(1,076.2
)
 
$
(679.0
)
 
$
1,279.3
 
Accounts receivable – related parties
   
(0.7
)
   
0.4
     
1.3
 
Inventories
   
194.6
     
(871.8
)
   
(72.7
)
Prepaid and other current assets
   
226.0
     
(49.3
)
   
(59.1
)
Other assets
   
(111.0
)
   
(2.0
)
   
(5.8
)
Increase (decrease) in:
                       
Accounts payable – trade
   
66.6
     
(21.5
)
   
(52.9
)
Accounts payable – related parties
   
56.0
     
21.0
     
(34.8
)
Accrued product payables
   
952.3
     
1,193.3
     
(1,342.4
)
Accrued interest
   
17.3
     
(11.4
)
   
16.5
 
Other current liabilities
   
(291.4
)
   
189.9
     
(67.1
)
Other liabilities
   
(1.3
)
   
49.5
     
14.4
 
Net effect of changes in operating accounts
 
$
32.2
   
$
(180.9
)
 
$
(323.3
)
 
                       
Cash payments for interest, net of $192.1, $168.2 and $149.1
capitalized in 2017, 2016 and 2015, respectively
 
$
912.1
   
$
947.9
   
$
911.6
 
 
                       
Cash payments for federal and state income taxes
 
$
20.9
   
$
18.7
   
$
17.5
 

We incurred liabilities for construction in progress that had not been paid at December 31, 2017, 2016 and 2015 of $373.0 million, $124.3 million and $472.8 million, respectively.  Such amounts are not included under the caption “Capital expenditures” on our Statements of Consolidated Cash Flows.

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