Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | Summary of Significant Accounting Policies |
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Basis of Presentation. Our consolidated financial statements include our refined products, crude oil and marine storage segments. We consolidated all entities in which we have a controlling ownership interest. We apply the equity method of accounting for entities where our ownership interest is greater than 20% but we do not control and which we have determined are not variable interest entities. We have eliminated all intercompany transactions. |
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Use of Estimates. The preparation of our consolidated financial statements in conformity with generally accepted accounting principles in the U.S. ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities that exist at the date of our consolidated financial statements, as well as their impact on the reported amounts of revenue and expense during the reporting periods. Actual results could differ from those estimates. |
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Cash Equivalents. Cash and cash equivalents include demand and time deposits and funds that own highly marketable securities with original maturities of three months or less when acquired. We periodically assess the financial condition of the institutions where we hold these funds, and, at December 31, 2013 and 2014, we believed our credit risk relative to these funds was minimal. |
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Accounts Receivable and Allowance for Doubtful Accounts. Accounts receivable represent valid claims against customers. We recognize accounts receivable when we sell products or render services and collection of the receivable is probable. We extend credit terms to certain customers based on historical dealings and to other customers after a review of various credit indicators. We establish an allowance for doubtful accounts for all or any portion of an account where we consider collections to be at risk and evaluate reserves no less than quarterly to determine their adequacy. Judgments relative to at-risk accounts include the customers' current financial condition, the customers' historical relationship with us and current and projected economic conditions. We write off accounts receivable when we deem the account uncollectible. |
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Inventory Valuation. Inventory is comprised primarily of refined products, liquefied petroleum gases, transmix and crude oil, which are stated and relieved at the lower of average cost or market. During 2014, we recorded a lower-of-average-cost-or-market adjustment of $39.3 million to our fractionation and butane blending inventories. |
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Property, Plant and Equipment. Property, plant and equipment consist primarily of pipeline, pipeline-related equipment, storage tanks and processing equipment. We state property, plant and equipment at cost except for certain acquired assets recorded at fair value on their respective acquisition dates and impaired assets. We record impaired assets at fair value on the last impairment evaluation date for which an adjustment was required. |
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We assign asset lives based on reasonable estimates when we place an asset into service. Subsequent events could cause us to change our estimates, which would affect the future calculation of depreciation expense. The range of depreciable lives by asset category is detailed in Note 8—Property, Plant and Equipment. |
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When we sell or retire property, plant and equipment, we remove its carrying value and the related accumulated depreciation from our accounts and record any associated gains or losses on our income statement in the period of sale or disposition. |
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We capitalize expenditures to replace existing assets and retire the replaced assets. We capitalize expenditures when they extend the useful life, increase the productivity or capacity or improve the safety or efficiency of the asset. We capitalize direct project costs such as labor and materials as incurred. Indirect project costs, such as overhead, are capitalized based on a percentage of direct labor charged to the respective capital project. We charge expenditures for maintenance, repairs and minor replacements to operating expense in the period incurred. |
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Investments in Non-Controlled Entities. We account for investments greater than 20% in affiliates that we do not control using the equity method of accounting. Under this method, an investment is recorded at our acquisition cost or capital contributions, as adjusted by contractual terms, plus equity in earnings or losses since acquisition or formation, plus interest capitalized, less distributions received and amortization of interest capitalized and excess net investment. Excess net investment is the amount by which our investment in a non-controlled entity exceeded our proportionate share of the book value of the net assets of that investment. We amortize excess net investment over the weighted-average depreciable asset lives of the equity investee. Our unamortized excess net investment was $15.1 million and $79.0 million at December 31, 2013 and 2014, respectively. The increase in the amount of unamortized excess investment during 2014 was due primarily to our investment in BridgeTex. We evaluate equity method investments for impairment whenever events or circumstances indicate that there is an other-than-temporary loss in value of the investment. In the event that we determine that the loss in value of an investment is other-than-temporary, we would record a charge to earnings to adjust the carrying value to fair value. We recognized no equity investment impairments during 2012, 2013 or 2014. |
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Goodwill and Other Intangible Assets. We do not amortize goodwill, which represents the excess of fair value of the business acquired over the fair value of assets acquired and liabilities assumed. We evaluate goodwill for impairment annually as of October 1st and when events or changes in circumstances indicate that the fair value of a reporting unit with goodwill has been reduced below carrying value. Goodwill was $53.3 million at both December 31, 2013 and 2014. Our reported goodwill at December 31, 2014 included $38.4 million allocated to our refined products segment, $12.1 million allocated to our crude oil segment and $2.8 million allocated to our marine storage segment. |
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For 2014, we performed a qualitative assessment to determine whether the fair value of our reporting units was more likely than not less than their respective carrying amounts. Our evaluation consisted of assessing the general impact of how a number of different elements would affect the fair value of our reporting units; including, the current and projected future earnings of our reporting units, our capitalization, our current slate of capital projects, the growth in the distributions we pay to our unitholders, current and future interest rates and the impact of lower crude oil prices on our earnings and the acquisition markets. As of October 1, 2014, our qualitative assessment indicated that there was no need to conduct further quantitative testing nor did our analysis reflect any reporting units at risk. If, based on the results of our qualitative assessment, we believed it was more likely than not the fair value of our reporting units were less than the carrying amount, we would have performed step one of the two-step goodwill impairment test. The first step of the goodwill impairment test determines whether an impairment exists by comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the estimated fair value of the reporting unit exceeds its carrying amount, no impairment is indicated. If the carrying amount of a reporting unit exceeds its estimated fair value, an impairment is indicated and the second step of the test is performed to measure the amount of impairment by comparing the implied fair value of the reporting unit goodwill to the carrying amount of that goodwill. For periods prior to 2014, our October 1st goodwill assessment was based on a quantitative assessment of the fair value of our reporting units. |
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We amortize other intangible assets over their estimated useful lives of 5 years up to 25 years. The weighted-average asset life of our other intangible assets at December 31, 2014 was approximately 6 years. We adjust the useful lives of our other intangible assets if events or circumstances indicate there has been a change in the remaining useful lives. We eliminate from our balance sheets the gross carrying amount and the related accumulated amortization for any fully amortized intangibles in the year they are fully amortized. We review our other intangible assets for impairment whenever events or changes in circumstances indicate we should assess the recoverability of the carrying amount of the intangible asset. We recognized no impairments for other intangible assets in 2012, 2013 and 2014. Amortization of other intangible assets was $1.9 million, $6.0 million and $2.7 million in 2012, 2013 and 2014, respectively, of which $0.6 million and $0.2 million was charged against transportation and terminals revenue in each year during 2012 and 2013, respectively. |
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Tank Bottoms and Linefill. A contract we have with a customer at our crude oil terminal in Cushing, Oklahoma requires us to maintain a minimum volume of crude oil in the tanks they utilize at that facility. Because of this contractual requirement, the crude oil we own at that facility is not sold in the normal course of our business; therefore, we classify these crude oil barrels as a long-term asset carried at cost adjusted for gains or losses on certain derivative contracts classified as fair value hedges. At December 31, 2014, our tank bottoms and linefill consisted of 0.7 million barrels of crude oil with a carrying value of $42.6 million. We have entered into New York Mercantile Exchange ("NYMEX") contracts representing 0.7 million barrels of crude oil, which we have designated as fair value hedges against price changes in our tank bottoms and linefill. The cumulative gains (losses) of these derivative agreements as of December 31, 2013 and 2014 were $(8.7) million and $13.3 million, respectively, which were recorded as decreases (increases) to the tank bottoms and linefill. |
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Impairment of Long-Lived Assets. We evaluate our long-lived assets of identifiable business activities, other than those held for sale, for impairment when events or changes in circumstances indicate, in management's judgment, that the carrying value of such assets may not be recoverable. We base the determination of whether impairment has occurred on management's estimate of undiscounted future cash flows attributable to the assets as compared to the carrying value of the assets. We calculate the amount of the impairment recognized as the excess of the carrying amount of the asset over the fair value of the assets, as determined either through reference to similar asset sales or by estimating the fair value using a discounted cash flow approach. |
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Judgments and assumptions are inherent in management's estimate of undiscounted future cash flows used to determine recoverability of an asset and the estimate of an asset's fair value used to calculate the amount of impairment to recognize. The use of alternate judgments and assumptions could result in the recognition of different levels of impairment charges in the financial statements. |
Impairments we recognized in 2012 and 2013 were not material. In 2014, based on an impairment analysis we performed, we accelerated the depreciation of a certain terminal and related assets in our Refined Products segment (that we subsequently sold in 2014) by $9.4 million. |
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Debt Placement Costs. We capitalize costs incurred for debt borrowings when paid and amortize those costs over the life of the associated debt instrument using the effective interest method. When debt is retired before its scheduled maturity date, we write off any remaining placement costs associated with that debt. |
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Interest Capitalized. During construction, we capitalize interest on all construction projects requiring a completion period of three months or longer and total project costs exceeding $0.5 million. The interest we capitalize is based on the weighted-average interest rate of our debt. The weighted average rates used to capitalize interest on borrowed funds was 5.3%, 5.2% and 4.9% for the years ended December 31, 2012, 2013 and 2014, respectively. |
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Pension and Postretirement Medical and Life Benefit Obligations. We sponsor three pension plans that cover substantially all of our employees, a postretirement medical and life benefit plan for certain employees and a defined contribution plan. Our pension and postretirement benefit liabilities represent the funded status of the present value of benefit obligations of these plans. |
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We develop pension, postretirement medical and life benefits costs from actuarial valuations. We establish actuarial assumptions to anticipate future events and use those assumptions when calculating the expense and liabilities related to these plans. These factors include assumptions management makes concerning interest rates, expected investment return on plan assets, health care costs trend rates, turnover rates and rates of future compensation increases, among others. In addition, we use subjective factors such as withdrawal and mortality rates to develop actuarial valuations. Management reviews and updates these assumptions on an annual basis. The actuarial assumptions that we use may differ from actual results due to changing market rates or other factors. These differences could affect the amount of pension and postretirement medical and life benefit expense we will recognize in future periods. |
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Derivative Financial Instruments. We use derivative instruments to manage market price risks associated with inventories, interest rates, our tank bottom and linefill assets and certain forecasted transactions. Our policies prohibit us from engaging in speculative trading activities. For certain physical forward commodity derivative contracts, accounting guidance provides for and we apply the normal purchase/normal sale exception, whereby changes in the mark-to-market values of such contracts are not recognized in income, rather the revenues and expenses associated with such transactions are recognized during the period when commodities are physically delivered or received. Physical forward commodity contracts subject to this exception are evaluated for the probability of future delivery and are periodically back-tested once the forecasted period has passed to determine whether similar forward contracts are probable of physical delivery in the future. For all other derivative contracts, we record the agreements on our balance sheets at fair value. |
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For those instruments that qualify for hedge accounting, the accounting treatment depends on their intended use and their designation. We divide derivative financial instruments qualifying for hedge accounting treatment into two categories: (1) cash flow hedges and (2) fair value hedges. We execute cash flow hedges to hedge against the variability in cash flows related to a forecasted transaction and execute fair value hedges to hedge against the changes in the value of a recognized asset or liability. At the inception of a hedged transaction, we document the relationship between the hedging instrument and the hedged item, the risk management objectives and the methods used for assessing and testing correlation and hedge effectiveness. We also assess, both at the inception of the hedge and on an on-going basis, whether the derivatives that are used in our hedging transactions are highly effective in offsetting changes in cash flows or fair value of the hedged item. If we determine that a derivative originally designated as a cash flow or fair value hedge is no longer highly effective, we discontinue hedge accounting prospectively and record the change in the fair value of the derivative in current earnings. The change in fair value of derivative financial instruments that are not designated as a hedging instrument is included in current earnings. |
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As part of our risk management process, we assess the creditworthiness of the financial and other institutions with which we execute financial derivatives. Such financial instruments involve the risk of non-performance by the counterparty, which could result in material losses to us. |
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We have entered into NYMEX commodity based futures contracts to hedge against price changes on a portion of the refined products we expect to sell in the future and changes in the fair value of our tank bottoms and linefill. Some of these contracts have qualified as cash flow or fair value hedges under Accounting Standards Codification ("ASC") No. 815, Derivatives and Hedging, while others have not. We record the effective portion of the gains or losses for those contracts that qualify for and are designated as cash flow hedges in other comprehensive income and the ineffective portion in product sales revenue. We reclassify gains and losses from contracts that qualify as cash flow hedges from other comprehensive income to product sales revenue when the hedged transaction occurs and we terminate the derivative agreement. We record the effective portion of the gains or losses for those contracts that qualify as fair value hedges as adjustments to the assets being hedged and the ineffective portions as well as amounts excluded from the assessment of hedge effectiveness as adjustments to other income or expense. We recognize the change in fair value of those agreements that are not designated as hedges in product sales revenue, except for those undesignated agreements that economically hedge the inventories associated with our pipeline system overages. We record the change in fair value of those agreements in operating expenses. |
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In addition, we have entered into Chicago Mercantile Exchange ("CME")-traded butane futures agreements to hedge against changes in the price of butane we expect to purchase in the future. We account for all of these agreements as economic hedges, with period changes in the fair value of these agreements recorded as adjustments to cost of product sales. |
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We use interest rate derivatives to help manage interest rate risk. We record any ineffectiveness on derivatives designated as hedging instruments to interest expense and the change in fair value of interest rate derivatives that we do not designate as hedging instruments to other income or expense in our results of operations. For the effective portion of interest rate cash flow hedges, we record the noncurrent portion of unrealized gains or losses as an adjustment to other comprehensive income with the current portion recorded as an adjustment to interest expense. For the effective portion of fair value hedges on long-term debt, we record the noncurrent portion of gains or losses as an adjustment to long-term debt with the current portion recorded as an adjustment to interest expense. |
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See Comprehensive Income in this Note 2 for details of the derivative gains and losses included in accumulated other comprehensive loss. |
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Revenue Recognition. We recognize pipeline transportation revenue for crude oil shipments when our customers take possession of their product from our system. For ammonia shipments and shipments of refined products under published tariffs that combine transportation and terminalling services, we recognize revenue when our customers take possession of their product from our system through tanker trucks, railcars or third-party pipelines. For all other shipments, where terminalling services are not included in the tariff, we recognize revenue when our customers' product arrives at the customer-designated delivery point. We have certain agreements that require counterparties to ship a minimum volume over an agreed-upon period. Revenue pursuant to such agreements is recognized at the earlier of when the volume is shipped or when the counterparty’s ability to meet the minimum volume commitment has expired. |
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We recognize injection service fees associated with additives upon injection to the customer's product, which occurs at the time we deliver the product to our customers. We recognize leased tank storage, pipeline capacity leases, terminalling, throughput, ethanol loading and unloading services, laboratory testing, data services, pipeline operation fees and other miscellaneous service-related revenue upon completion of contract services. We recognize product sales upon delivery of the product to the customer. See Derivative Financial Instruments above for a discussion of how these agreements impact product sales. We record back-to-back purchases and sales of refined products where we are acting as an agent to facilitate refined product sales between a supplier and a customer on a net basis. |
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Deferred Transportation Revenue and Costs. Generally, we invoice customers on our refined products pipeline for transportation services when their product enters our system. At each period end, we record all invoiced amounts associated with products that have not yet been delivered (in-transit products) as a deferred liability. The value of this liability is calculated as the total of the volume of each product type, for each pipeline region, multiplied by the average tariff rate for that product type for the most recent month invoiced to our customers. We use the most recent month's average tariff rate because the product in our pipeline system generally turns over every month. Additionally, at each period end, we defer the direct costs we have incurred associated with these in-transit products, until delivery occurs, as a deferred asset. These direct costs are estimated based on our average per-barrel direct delivery cost for the current year multiplied by the total in-transit barrels in our system at the end of the period multiplied by 50% to reflect the average transportation costs incurred for all products across all our pipeline systems. We use 50% of the in-transit barrels because that best represents the average delivery point of all barrels in our pipeline system. These deferred revenues and costs are determined using judgments and assumptions that management considers reasonable. |
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Pipeline Over/Short Product. The tariffs we charge for our pipeline transportation systems are primarily regulated by the Federal Energy Regulatory Commission (“FERC”); however, certain tariffs are regulated by the Surface Transportation Board or state regulatory authorities. Our tariffs include provisions which allow us to deduct from our customer's inventory a small percentage of the products our customers transport on our pipeline systems. We refer to these product quantities as tender deductions. The purpose of these tender deductions is to help offset the product losses we sustain as a result of shrinkage, evaporation, protection of product quality and product measurement inaccuracies. We record these tender deductions as an increase of pipeline over/short product inventory and a reduction of operating expense. Each period end, we measure the volume of each type of product in our pipeline system, which is compared to the volumes of our customers' inventories (as adjusted for tender deductions). To the extent that the product volumes in our pipeline system exceeds the volumes of our customers' book inventories, we increase our product inventories and recognize a gain; however, to the extent the product in our pipeline system is less than our customers' book inventories, we record a liability (for product owed to our customers) and recognize a loss. The product gains and losses we recognize are recorded based on period-end product market prices, and we include those gains or losses in operating expenses on our consolidated statements of income. |
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Excise Taxes Charged to Customers. Revenues are recorded net of all amounts charged to our customers for excise taxes. |
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Equity-Based Incentive Compensation. The compensation committee of our general partner (the “compensation committee") has approved incentive awards of phantom units representing limited partner interests in us to certain employees. The awards granted include performance-based awards and retention awards, both of which include distribution equivalent rights. Further, the compensation committee has issued phantom units with distribution equivalent rights to our independent directors who have deferred the receipt of board fees into the director deferred compensation plan. |
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Under ASC 718, Compensation-Stock Compensation, we classify unit awards as either equity or liabilities. Fair value for award grants classified as equity is determined on the grant date of the award, and we recognize this value as compensation expense ratably over the requisite service period, which is the vesting period of each unit award. Because all of our unit awards contain full distribution equivalent rights, the per-unit fair value of our equity awards is the closing price of our limited partner units on the grant date. However, the per-unit fair value of the equity awards we issued in 2014 also includes the fair value of the market-based component of those awards. Compensation expense for awards classified as equity is calculated as the number of unit awards classified as equity less estimated forfeitures, multiplied by the per unit grant date fair value of those awards, multiplied by the percentage of the requisite service period completed at each period end, multiplied by the expected payout percentage, less previously-recognized compensation expense. We re-measure unit awards classified as liabilities at fair value on the close of business at each reporting period end until settlement date. Fair value at each re-measurement date is the closing price of our limited partner units at each period end. Compensation expense for unit awards classified as liabilities is the number of unit awards classified as liabilities less estimated forfeitures, multiplied by the re-measured per-unit fair value of the awards, multiplied by the percentage of the requisite service period completed at each period end, multiplied by the expected payout percentage, less previously-recognized compensation expense. |
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Performance-based awards include provisions that can result in payouts to the recipients of the 2013 awards of from 0% up to 250% of the targeted amount of the award and, to the recipients of the 2014 awards of from 0% to 200% of the targeted amount of the award. Additionally, the 2014 awards are subject to a market performance metric, which could increase or decrease the payout of the award by as much as 50%. Judgments and assumptions of the final award payouts are inherent in the accruals recorded for equity-based incentive compensation costs. The use of alternate judgments and assumptions could result in the recognition of different levels of equity-based incentive compensation costs. |
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Payouts related to retention awards are based solely on the completion of the requisite service period by the employee. Retention awards contain no provisions which would provide for a payout to the employee of anything other than the original number of units awarded and the associated distribution equivalents. |
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The vesting period for both the performance-based and retention awards is generally three years; however, certain awards have been issued with shorter vesting periods while others have vesting periods of up to four years. We settle vested non-director award grants by issuing new common units, except for the associated statutory minimum tax withholding, which we settle by paying with cash on hand. Phantom units issued to our directors are settled in cash in January of the year following their death or resignation from the board of directors of our general partner. |
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Contingencies and Environmental. Certain conditions may exist as of the date our consolidated financial statements are issued that could result in a loss to us, but which will only be resolved when one or more future events occur or fail to occur. Our management assesses such contingent liabilities, which inherently involves significant judgment. In assessing loss contingencies related to legal proceedings that are pending against us or for unasserted claims that may result in proceedings, our management, with input from legal counsel, evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. |
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Environmental expenditures are charged to operating expense or capitalized based on the nature of the expenditures. Environmental expenditures that meet the capitalization criteria for property, plant and equipment, as well as costs that mitigate or prevent environmental contamination that has yet to occur, are capitalized. We expense expenditures that relate to an existing condition caused by past operations. We record environmental liabilities assumed in a business combination at fair value, otherwise, we record environmental liabilities on an undiscounted basis. We recognize liabilities for other commitments and contingencies when, after analyzing the available information, we determine it is probable that an asset has been impaired, or that a liability has been incurred and the amount of impairment or loss can be reasonably estimated. When we can estimate a range of probable loss, we accrue the most likely amount within that range, or if no amount is more likely than another, we accrue the minimum of the range of probable loss. We expense legal costs associated with loss contingencies as incurred. |
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We record environmental liabilities independently of any potential claim for recovery. Accruals related to environmental matters are generally determined based on site-specific plans for remediation, taking into account currently available facts, existing technologies and presently enacted laws and regulations. Accruals for environmental matters reflect our prior remediation experience and include an estimate for costs such as fees paid to contractors, outside engineering and consulting firms. Accruals for estimated losses from environmental remediation obligations generally are recognized no later than completion of the remediation feasibility study. Such accruals are adjusted as further information develops or circumstances change. |
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We maintain selective insurance coverage, which may cover all or portions of certain environmental expenditures less a deductible. We recognize receivables in cases where we consider the realization of reimbursements of remediation costs as probable. We would sustain losses to the extent of amounts we have recognized as environmental receivables if the counterparties to those transactions were unable to perform their obligations to us. |
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The determination of the accrual amounts recorded for environmental liabilities includes significant judgments and assumptions made by management. The use of alternate judgments and assumptions could result in the recognition of different levels of environmental remediation costs. |
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Income Taxes. We are a partnership for income tax purposes and, therefore, have not been subject to federal or state income taxes for most of the states in which we operate. The tax on our net income is borne by the individual partners through the allocation of taxable income. Net income for financial statement purposes may differ significantly from taxable income of unitholders because of differences between the tax basis and financial reporting basis of assets and liabilities and the taxable income allocation requirements under our partnership agreement. The aggregate difference in the basis of our net assets for financial and tax reporting purposes cannot be readily determined because information regarding each partner's tax attributes is not available to us. |
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As a publicly traded limited partnership, we are subject to a statutory requirement that our "qualifying income" (as defined by the Internal Revenue Code, related Treasury Regulations, and Internal Revenue Service pronouncements) exceed 90% of our total gross income, determined on a calendar year basis. If our qualifying income does not meet this statutory requirement, we could be taxed as a corporation for federal and state income tax purposes. For the years ended December 31, 2012, 2013 and 2014, our qualifying income met the statutory requirement. |
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The amounts recognized as provision for income taxes in our consolidated statements of income reflect a partnership-level tax levied by the state of Texas. This tax is based on revenues less direct costs of sale for our assets apportioned to the state of Texas. |
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Net Income Per Unit. We calculate basic net income per limited partner unit for each period by dividing net income by the weighted-average number of limited partner units outstanding. Diluted net income per limited partner unit for each period is the same calculation as basic net income per limited partner unit, except the weighted-average limited partner units outstanding includes the dilutive effect of phantom unit grants associated with our long-term incentive plan in periods where contingent performance metrics have been met. |
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Comprehensive Income. We account for comprehensive income in accordance with ASC 220, Comprehensive Income. Comprehensive income was determined based on our net income adjusted for changes in other comprehensive income (loss) from unrealized gains or losses from derivative hedging transactions, reclassification of derivative gain and losses to net income and adjustments to record the periodic and settlement costs of our pension and postretirement benefit plans and our pension and postretirement benefit obligation liabilities at the funded status of the present value of the benefit obligations. |
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Amounts included in accumulated other comprehensive loss ("AOCL") are as follows (in thousands): |
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| | Derivative | | Pension and | | Accumulated |
Gains | Postretirement | Other |
(Losses) | Liabilities | Comprehensive |
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Balance, January 1, 2012 | | $ | 3,161 | | | $ | (50,362 | ) | | $ | (47,201 | ) |
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Derivative activity: | | | | | | |
Net gain on cash flow hedges(1) | | 13,889 | | | — | | | 13,889 | |
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Reclassification of net gain on cash flow hedges to income(1) | | (2,924 | ) | | — | | | (2,924 | ) |
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Changes in employee benefit plan assets and benefit obligations recognized in other comprehensive income: | | | | | | |
Net actuarial loss(2) | | — | | | (17,804 | ) | | (17,804 | ) |
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Plan amendment(2) | | — | | | 16,020 | | | 16,020 | |
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Amortization of prior service credit(2) | | — | | | (1,664 | ) | | (1,664 | ) |
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Amortization of actuarial loss(2) | | — | | | 4,626 | | | 4,626 | |
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Balance, December 31, 2012 | | 14,126 | | | (49,184 | ) | | (35,058 | ) |
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Derivative activity: | | | | | | |
Net loss on cash flow hedges(1) | | (4,744 | ) | | — | | | (4,744 | ) |
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Reclassification of net loss on cash flow hedges to income(1) | | 4,245 | | | — | | | 4,245 | |
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Changes in employee benefit plan assets and benefit obligations recognized in other comprehensive income: | | | | | | |
Net actuarial gain(2) | | — | | | 14,089 | | | 14,089 | |
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Amortization of prior service credit(2) | | — | | | (3,405 | ) | | (3,405 | ) |
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Amortization of actuarial loss(2) | | — | | | 5,369 | | | 5,369 | |
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Balance, December 31, 2013 | | 13,627 | | | (33,131 | ) | | (19,504 | ) |
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Derivative activity: | | | | | | |
Net loss on cash flow hedges(1) | | (30,090 | ) | | — | | | (30,090 | ) |
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Reclassification of net gain on cash flow hedges to income(1) | | (124 | ) | | — | | | (124 | ) |
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Changes in employee benefit plan assets and benefit obligations recognized in other comprehensive income: | | | | | | |
Net actuarial loss(2) | | — | | | (33,937 | ) | | (33,937 | ) |
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Amortization of prior service credit(2) | | — | | | (3,680 | ) | | (3,680 | ) |
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Amortization of actuarial loss(2) | | — | | | 3,986 | | | 3,986 | |
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Settlement cost(2) | | — | | | 1,809 | | | 1,809 | |
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Balance, December 31, 2014 | | $ | (16,587 | ) | | $ | (64,953 | ) | | $ | (81,540 | ) |
(1) See Note 13–Derivative Financial Instruments for additional detail of the amount of gain (loss) recognized in AOCL on derivatives and the amount of (gain) loss reclassified from AOCL into income. |
(2) See Note 10–Employee Benefit Plans for additional detail of the changes in employee benefit plan assets and benefit obligations that are recognized in other comprehensive income (loss). |
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New Accounting Pronouncements |
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In January 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) 2015-01, Income Statement–Extraordinary and Unusual Items. This standard eliminates the concept of extraordinary and unusual items from U.S. GAAP. The new standard is effective for annual and interim periods after December 15, 2015. Early adoption is permitted. We adopted this standard on January 1, 2015. Our adoption of this ASU did not have a material impact on our results of operations, financial position or cash flows. |
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In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements–Going Concern (Subtopic 205-40): Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern. This standard requires management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. Before this standard, no accounting guidance existed for management on when and how to assess or disclose going concern uncertainties. The amendments are effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted. We adopted this standard on January 1, 2015. Our adoption of this ASU did not have a material impact on our results of operations, financial position or cash flows. |
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In June 2014, the FASB issued ASU 2014-12, Compensation–Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. This ASU finalizes the Emerging Issues Task Force’s Proposed ASU No. EITF-13D of the same name and seeks to resolve the diversity in practice that exists when accounting for share-based payments. This ASU requires that a performance target that affects vesting and can be achieved after the requisite service period to be accounted for as a performance condition. The new standard is effective for annual and interim periods after December 15, 2015. Early adoption is permitted. We adopted this standard on January 1, 2015. Our adoption of this ASU did not have a material impact on our results of operations, financial position or cash flows. |
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In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which eliminates the industry-specific guidance in U.S. GAAP and produces a single, principles-based method for companies to report revenue in their financial statements. This standard requires companies to make more estimates and use more judgment than under current guidance. In addition, all companies must compile more extensive footnote disclosures about how the revenue numbers were derived. This ASU is effective for periods beginning January 1, 2017 and requires either a full retrospective or modified retrospective adoption. We have not yet determined which adoption method we will employ. Early adoption of this standard is not allowed. We are currently in the process of evaluating the impact this new standard will have on our financial statements. |
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In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This standard will limit the number of disposals of assets that should be presented as discontinued operations to those disposals that represent a strategic shift in operations and have a major effect on the organization's operations and financial results. Expanded disclosures will be required to provide more information about the assets, liabilities, income and expenses of discontinued operations as well as significant asset disposals that do not meet the criterion for discontinued operations treatment. This ASU will take effect for annual financial statements with fiscal years beginning on or after December 15, 2014. Our adoption of this ASU did not have a material impact on our results of operations, financial position or cash flows. |