Enterprise Products Partners L.P.

SEC Filings

ENTERPRISE PRODUCTS PARTNERS L P filed this Form S-1/A on 07/21/1998
Entire Document
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 BEF, an unconsolidated affiliate, 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.
  The Company is exposed to certain market risks which are inherent in
financial instruments it issues in the normal course of business. The Company
may, but generally does not, enter into derivative financial instrument
transactions in order to manage or reduce market risk. The Company does not
enter into derivative financial instruments for speculative purposes. At
December 31, 1997 and March 31, 1998, the Company had no derivative
instruments in place to cover any potential interest rate, foreign currency or
other financial instrument risk.