Enterprise Products Partners L.P.

SEC Filings

S-1/A
ENTERPRISE PRODUCTS PARTNERS L P filed this Form S-1/A on 07/21/1998
Entire Document
 
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                       ENTERPRISE PRODUCTS PARTNERS L.P.
 
              NOTES TO COMBINED FINANCIAL STATEMENTS--(CONTINUED)
   
]  ENVIRONMENTAL COSTS for remediation are accrued based on estimates of known
remediation requirements. Such accruals are based upon management's best
estimate of the ultimate costs to remediate the site. Ongoing environmental
compliance costs are charged to expense as incurred, and expenditures to
mitigate or prevent future environmental contamination are capitalized.
Environmental costs, accrued environmental liabilities and expenditures to
mitigate or eliminate future environmental contamination for each of the years
in the three-year period ended December 31, 1997 were not significant to the
combined financial statements. The Company's estimated liability for
environmental remediation is not discounted.     
 
  CASH FLOWS are computed using the indirect method. For cash flow purposes,
the Company considers all highly liquid debt instruments with an original
maturity of less than three months at the date of purchase to be cash
equivalents. All cash presented as restricted cash in the Company's financial
statements is due to requirements of the Company's debt agreements.
 
  DOLLAR AMOUNTS presented in the tabulations within the notes to the
Company's financial statements are stated in thousands of dollars, unless
otherwise indicated.
   
  RECENT STATEMENTS OF FINANCIAL ACCOUNTING STANDARDS ("SFAS") include the
following: (effective for fiscal years beginning after December 15, 1997) SFAS
130, Reporting of Comprehensive Income, SFAS 131, Disclosure about Segments of
an Enterprise and Related Information and SFAS 132, Employers' Disclosure
about Pensions and Other Postretirement Benefits and (effective for all fiscal
quarters of fiscal years beginning after June 15, 1999) SFAS 133, Accounting
for Derivative Instruments and Hedging Activities. Management is currently
studying these SFAS items for possible impact on the combined financial
statements; however, based upon its preliminary assessment of the SFASs,
management believes that they will not have a significant impact on the
Company's financial statements. On April 3, 1998, the American Institute of
Certified Public Accountants issued Statement of Position 98-5, Reporting on
the Costs of Start-Up Activities ("SOP 98-5"). For years beginning after
December 15, 1998, SOP 98-5 generally requires that all start-up costs of a
business activity be charged to expense as incurred and any start-up cost
previously deferred should be written-off as a cumulative effect of a change
in accounting principle. Management is currently studying SOP 98-5 for its
possible impact on the combined financial statements. Based upon its
preliminary assessment of SOP 98-5, management believes that SOP 98-5 will not
have a material impact on the combined financial statements except for a $4.5
million non-cash write-off at January 1, 1999 of the unamortized balance of
deferred start-up costs of Belvieu Environmental Fuels ("BEF"), in which the
Company owns a 33 1/3% economic interest. Such a write-off would cause a $1.5
million reduction in the equity in income of unconsolidated affiliates for
1999 and a corresponding reduction in the Company's investment in
unconsolidated affiliates.     
 
2. PROPERTY, PLANT AND EQUIPMENT
 
  Property, plant and equipment and accumulated depreciation are as follows:
 

<TABLE>
<CAPTION>
                                                    ESTIMATED
                                                     USEFUL
                                                     LIFE IN
                                                      YEARS     1996     1997
                                                    --------- -------- --------
   <S>                                              <C>       <C>      <C>
   Plants and pipelines............................   5-35    $535,674 $599,047
   Underground and other storage facilities........   5-35      75,396   79,744
   Transportation equipment........................   3-35       1,471   12,393
   Land............................................             11,999   12,783
   Construction in progress........................             58,944   12,627
                                                              -------- --------
     Total.........................................            683,484  716,594
   Less accumulated depreciation...................            185,554  202,867
                                                              -------- --------
   Property, plant and equipment, net..............           $497,930 $513,727
                                                              ======== ========
</TABLE>

 
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