Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 31, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | MAGELLAN MIDSTREAM PARTNERS LP | |
Entity Central Index Key | 1,126,975 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 228,195,160 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues | $ 638,020 | $ 572,848 | $ 1,960,890 | $ 1,834,362 |
Costs and Expenses [Abstract] | ||||
Operating | 172,115 | 165,368 | 475,256 | 442,254 |
Cost of product sales | 120,510 | 121,819 | 473,781 | 440,670 |
Depreciation and amortization | 56,228 | 49,909 | 161,726 | 146,103 |
General and administrative | 47,389 | 37,202 | 147,235 | 120,876 |
Total costs and expenses | 396,242 | 374,298 | 1,257,998 | 1,149,903 |
Earnings of non-controlled entities | 53,795 | 31,151 | 130,843 | 78,173 |
Operating profit | 295,573 | 229,701 | 833,735 | 762,632 |
Interest expense | 55,133 | 51,895 | 168,535 | 154,653 |
Interest capitalized | (3,099) | (3,424) | (13,354) | (10,804) |
Interest income | (501) | (240) | (1,460) | (788) |
Gain on sale of asset | (353,797) | (18,505) | (353,797) | (18,505) |
Other expense | 1,694 | 549 | 10,299 | 3,762 |
Income before provision for income taxes | 596,143 | 199,426 | 1,023,512 | 634,314 |
Provision for income taxes | 1,609 | 926 | 3,659 | 2,678 |
Net income | $ 594,534 | $ 198,500 | $ 1,019,853 | $ 631,636 |
Basic net income per limited partner unit (in dollars per share) | $ 2.60 | $ 0.87 | $ 4.47 | $ 2.77 |
Diluted net income per limited partner unit (in dollars per share) | $ 2.60 | $ 0.87 | $ 4.46 | $ 2.77 |
Weighted average number of limited partner units outstanding used for basic net income per unit calculation (in dollars per share) | 228,397 | 228,199 | 228,368 | 228,167 |
Weighted average number of limited partner units outstanding used for diluted net income per unit calculation (in dollars per share) | 228,449 | 228,260 | 228,412 | 228,222 |
Service [Member] | ||||
Revenues | $ 488,775 | $ 446,935 | $ 1,392,960 | $ 1,272,845 |
Product [Member] | ||||
Revenues | 144,403 | 121,010 | 552,792 | 548,634 |
Product and Service, Other [Member] | ||||
Revenues | $ 4,842 | $ 4,903 | $ 15,138 | $ 12,883 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 594,534 | $ 198,500 | $ 1,019,853 | $ 631,636 |
Other comprehensive income: | ||||
Net gain (loss) on cash flow hedges | 6,852 | (228) | 13,963 | (1,735) |
Reclassification of net loss on cash flow hedges to income | 740 | 740 | 2,219 | 2,219 |
Net actuarial loss | 0 | 0 | (5,291) | 0 |
Amortization of prior service credit | (45) | (45) | (136) | (136) |
Amortization of actuarial loss | 1,806 | 1,568 | 8,623 | 4,779 |
Settlement cost | 0 | 289 | 0 | 2,015 |
Total other comprehensive income | 9,353 | 2,324 | 19,378 | 7,142 |
Comprehensive income | $ 603,887 | $ 200,824 | $ 1,039,231 | $ 638,778 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 217,423 | $ 160,840 |
Trade accounts receivable | 137,618 | 138,779 |
Other accounts receivable | 24,025 | 14,561 |
Inventory | 179,366 | 182,345 |
Energy commodity derivatives deposits | 47,354 | 36,690 |
Other current assets | 66,221 | 63,396 |
Total current assets | 672,007 | 596,611 |
Property, plant and equipment | 7,570,759 | 7,235,468 |
Less: accumulated depreciation | 1,835,824 | 1,682,633 |
Net property, plant and equipment | 5,734,935 | 5,552,835 |
Investments in non-controlled entities | 1,005,392 | 1,082,511 |
Long-term receivables | 23,520 | 27,676 |
Goodwill | 53,260 | 53,260 |
Other intangibles (less accumulated amortization of $1,389 and $2,493 at December 31, 2017 and September 30, 2018, respectively) | 51,660 | 52,764 |
Restricted cash | 42,807 | 15,228 |
Other noncurrent assets | 12,087 | 13,490 |
Total assets | 7,595,668 | 7,394,375 |
Current liabilities: | ||
Accounts payable | 137,169 | 104,852 |
Accrued payroll and benefits | 53,285 | 56,261 |
Accrued interest payable | 49,309 | 70,657 |
Accrued taxes other than income | 52,307 | 51,343 |
Environmental liabilities | 10,537 | 6,235 |
Deferred revenue | 121,247 | 117,795 |
Accrued product liabilities | 80,195 | 96,159 |
Energy commodity derivatives contracts, net | 32,244 | 25,694 |
Current portion of long-term debt, net | 552,898 | 250,974 |
Other current liabilities | 37,873 | 56,540 |
Total current liabilities | 1,127,064 | 836,510 |
Long-term debt, net | 3,718,607 | 4,273,518 |
Long-term pension and benefits | 125,088 | 111,305 |
Other noncurrent liabilities | 64,425 | 30,350 |
Environmental liabilities | 13,064 | 13,039 |
Commitments and contingencies | ||
Partners’ capital: | ||
Limited partner unitholders (228,025 units and 228,195 units outstanding at December 31, 2017 and September 30, 2018, respectively) | 2,665,620 | 2,267,231 |
Accumulated other comprehensive loss | (118,200) | (137,578) |
Total partners’ capital | 2,547,420 | 2,129,653 |
Total liabilities and partners’ capital | $ 7,595,668 | $ 7,394,375 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Other intangibles, accumulated amortization | $ 2,493 | $ 1,389 |
Limited partner unitholders, units outstanding (in shares) | 228,195,160 | 228,024,556 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Operating Activities: | ||
Net income | $ 1,019,853 | $ 631,636 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 161,726 | 146,103 |
Gain on sale and retirement of assets | (347,541) | (10,924) |
Earnings of non-controlled entities | (130,843) | (78,173) |
Distributions from operations of non-controlled entities | 147,950 | 97,691 |
Equity-based incentive compensation expense | 24,612 | 14,183 |
Settlement cost, amortization of prior service credit and actuarial loss | 8,487 | 6,658 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable and other accounts receivable | (8,303) | (14,413) |
Inventory | 2,979 | (34,384) |
Energy commodity derivatives contracts, net of derivatives deposits | (4,505) | 1,135 |
Accounts payable | 27,498 | 15,576 |
Accrued payroll and benefits | (2,976) | (5,608) |
Accrued interest payable | (21,348) | (23,386) |
Accrued taxes other than income | 964 | (322) |
Accrued product liabilities | (15,964) | 67,972 |
Deferred revenue | 5,353 | 14,806 |
Current and noncurrent environmental liabilities | 4,327 | (3,352) |
Other current and noncurrent assets and liabilities | (8,488) | (11,497) |
Net cash provided by operating activities | 863,781 | 813,701 |
Investing Activities: | ||
Additions to property, plant and equipment, net | (374,320) | (418,239) |
Proceeds from sale and disposition of assets | 579,448 | 44,303 |
Investments in non-controlled entities | (147,048) | (114,078) |
Distributions from returns of investments in non-controlled entities | 1,786 | 52,738 |
Deposits received from undivided joint interest third party | 41,571 | 0 |
Net cash provided (used) by investing activities | 101,437 | (435,276) |
Financing Activities: | ||
Distributions paid | (642,370) | (596,854) |
Net commercial paper borrowings | 0 | 218,984 |
Payments on notes | (250,000) | 0 |
Debt placement costs | (326) | 0 |
Net receipt on financial derivatives | 20,925 | 0 |
Payments associated with settlement of equity-based incentive compensation | (9,285) | (13,875) |
Net cash used by financing activities | (881,056) | (391,745) |
Change in cash, cash equivalents and restricted cash | 84,162 | (13,320) |
Cash, cash equivalents and restricted cash at beginning of period | 176,068 | 14,701 |
Cash, cash equivalents and restricted cash at end of period | 260,230 | 1,381 |
Supplemental non-cash investing and financing activities: | ||
Contribution of property, plant and equipment to a non-controlled entity | 0 | 93,051 |
Issuance of limited partner units in settlement of equity-based incentive plan awards | 120 | 1,669 |
Additions to property, plant and equipment | (375,599) | (443,439) |
Changes in accounts payable and other current liabilities related to capital expenditures | 1,279 | 25,200 |
Additions to property, plant and equipment, net | $ (374,320) | $ (418,239) |
Organization, Description of Bu
Organization, Description of Business And Basis Of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Description of Business and Basis of Presentation | Organization, Description of Business and Basis of Presentation Organization Unless indicated otherwise, the terms “our,” “we,” “us” and similar language refer to Magellan Midstream Partners, L.P. together with its subsidiaries. Magellan Midstream Partners, L.P. is a Delaware limited partnership and its limited partner units are traded on the New York Stock Exchange under the ticker symbol “MMP.” Magellan GP, LLC, a wholly-owned Delaware limited liability company, serves as its general partner. Description of Business We are principally engaged in the transportation, storage and distribution of refined petroleum products and crude oil. As of September 30, 2018 , our asset portfolio, including the assets of our joint ventures, consisted of: • our refined products segment, comprised of our 9,700 -mile refined products pipeline system with 53 terminals as well as 26 independent terminals not connected to our pipeline system and our 1,100 -mile ammonia pipeline system; • our crude oil segment, comprised of approximately 2,200 miles of crude oil pipelines, our condensate splitter and storage facilities with an aggregate storage capacity of approximately 33 million barrels, of which approximately 21 million barrels are used for contract storage; and • our marine storage segment, consisting of five marine terminals located along coastal waterways with an aggregate storage capacity of approximately 26 million barrels. Terminology common in our industry includes the following terms, which describe products that we transport, store and distribute through our pipelines and terminals: • refined products are the output from refineries and are primarily used as fuels by consumers. Refined products include gasoline, diesel fuel, aviation fuel, kerosene and heating oil. Collectively, diesel fuel, aviation fuel, kerosene and heating oil are referred to as distillates; • liquefied petroleum gases, or LPGs, are produced as by-products of the crude oil refining process and in connection with natural gas production. LPGs include butane and propane; • blendstocks are blended with refined products to change or enhance their characteristics such as increasing a gasoline’s octane or oxygen content. Blendstocks include alkylates, oxygenates and natural gasoline; • heavy oils and feedstocks are used as burner fuels or feedstocks for further processing by refineries and petrochemical facilities. Heavy oils and feedstocks include No. 6 fuel oil and vacuum gas oil; • crude oil and condensate are used as feedstocks by refineries and petrochemical facilities; • biofuels , such as ethanol and biodiesel, are typically blended with other refined products as required by government mandates; and • ammonia is primarily used as a nitrogen fertilizer. Except for ammonia, we use the term petroleum products to describe any, or a combination, of the above-noted products. Basis of Presentation In the opinion of management, our accompanying consolidated financial statements which are unaudited, except for the consolidated balance sheet as of December 31, 2017 , which is derived from our audited financial statements, include all normal and recurring adjustments necessary to present fairly our financial position as of September 30, 2018 , the results of operations for the three and nine months ended September 30, 2017 and 2018 and cash flows for the nine months ended September 30, 2017 and 2018 . The results of operations for the nine months ended September 30, 2018 are not necessarily indicative of the results to be expected for the full year ending December 31, 2018 for several reasons. Profits from our butane blending activities are realized largely during the first and fourth quarters of each year. Additionally, gasoline demand, which drives transportation volumes and revenues on our refined products pipeline system, generally trends higher during the summer driving months. Further, the volatility of commodity prices impacts the profits from our commodity activities and, to a lesser extent, the volume of petroleum products we transport on our pipelines. Pursuant to the rules and regulations of the Securities and Exchange Commission, the financial statements in this report do not include all of the information and notes normally included with financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017 . Reclassifications. Prior year amounts related to restricted cash have been reclassified to conform with the current period’s presentation. Use of Estimates The preparation of our consolidated financial statements in conformity with 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. Restricted Cash Restricted cash includes cash held by us, which is contractually required to be used for the construction of fixed assets, and is unavailable for general use. It is classified as noncurrent due to its designation to be used for the construction of noncurrent assets. Correction of Actuarial Valuation Error In first quarter 2018, an error was discovered in our third-party actuary’s valuation of our pension liabilities and net periodic pension expenses dating back to 2010. The impacts of the error were not material to any of our prior period financial statements and the cumulative impact was corrected with a one-time adjustment in the first quarter of 2018. As a result, during first quarter 2018, net periodic pension expenses were increased by $16.0 million ( $5.7 million operating expense, $3.4 million general and administrative (“G&A”) costs and $6.9 million other expense below operating profit on our consolidated statements of income). In addition, long-term pension and benefits was increased $18.8 million and accumulated other comprehensive loss was increased by $2.8 million on our consolidated balance sheets. New Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). This ASU requires lessees to recognize a right of use asset and lease liability on the balance sheet for all leases, with the exception of short-term leases. The new accounting model for lessors remains largely the same, although some changes have been made to align it with the new lessee model and the new revenue recognition guidance. This update also requires companies to include additional disclosures regarding their lessee and lessor agreements. For public companies, this ASU is effective for fiscal years that start after December 15, 2018, and early adoption is permitted. This standard will not have a material impact on our consolidated statements of income. Based on our current population of leases, we expect the impact of this ASU to increase our assets and liabilities by approximately $80.0 million due to the recognition of right of use assets and lease liabilities. New Accounting Pronouncements - Adopted January 1, 2018 In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . This update changes GAAP’s hedge accounting requirements to simplify some of the specialized treatment’s most complex areas. These simplifications are intended to expand opportunities to use hedge accounting and better align the accounting treatment with existing risk management activities. The ASU is effective for public companies starting after December 15, 2018, and we early-adopted the new standard on January 1, 2018. The adoption of this ASU did not have a material impact on our consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments: A Consensus of the FASB Emerging Issues Task Force . This ASU includes a requirement to make an accounting policy election to classify distributions received from equity method investees under either (1) the cumulative earnings approach, where distributions in excess of equity earnings are considered a return of capital and classified as cash inflows from investing activities, or (2) the nature of the distribution approach, where each distribution is evaluated on the basis of the source of the payment and classified as either operating or investing cash inflows. We adopted this standard on January 1, 2018 using the retrospective transition method and made an accounting policy election to use the nature of the distribution approach, which resulted in the following adjustments to our September 30, 2017 comparative statement of cash flows (in thousands): Nine Months Ended September 30, 2017, as Reported ASU 2016-15 Adjustment Nine Months Ended September 30, 2017, as Adjusted Operating activities: Distributions from operations of non-controlled entities $ 78,562 $ 19,129 $ 97,691 Net cash provided by operating activities $ 794,572 $ 19,129 $ 813,701 Investing activities: Distributions from returns of investments in non-controlled entities $ 71,867 $ (19,129 ) $ 52,738 Net cash used by investing activities $ (416,147 ) $ (19,129 ) $ (435,276 ) In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU amends the existing accounting standards for revenue recognition and is based on the principle that revenue should be recognized to depict the transfer of goods or services to a customer at an amount that reflects the consideration a company expects to receive in exchange for those goods or services. On January 1, 2018, we adopted the new Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers and all related amendments using the modified retrospective method. We recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of partners’ capital. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet resulting from the adoption of the new revenue standard was as follows (in thousands): Balance at December 31, 2017 Adjustments Due to ASU 2014-09 Balance at January 1, 2018 Assets: Property, plant and equipment $ 7,235,468 $ 8,516 $ 7,243,984 Accumulated depreciation (1,682,633 ) (325 ) (1,682,958 ) Net property, plant and equipment $ 5,552,835 $ 8,191 $ 5,561,026 Investments in non-controlled entities $ 1,082,511 $ 502 $ 1,083,013 Liabilities: Deferred revenue $ 117,795 $ (1,901 ) $ 115,894 Other noncurrent liabilities $ 30,350 $ 4,619 $ 34,969 Partners’ capital: Limited partner unitholders $ 2,267,231 $ 5,975 $ 2,273,206 The primary changes impacting our financial statements under the new revenue standard include the requirement for us to estimate deficiencies in our customers’ use of our services contracted as minimum commitments and adjust the amount of revenue recognized in proportion to our customers’ pattern of exercised rights. This change results in accelerating the timing of revenue recognized for specific contracts for which we estimate our customers will not ship their minimum commitments. In addition, we periodically receive payments from customers seeking to expand their access to our pipeline systems and terminals. Prior to the adoption of the new revenue standard, these payments were recorded as reductions to our property, plant and equipment (“PP&E”) expenditures. Under the new revenue standard, these payments are recorded to deferred revenue and other noncurrent liabilities and are recognized as revenue in proportion to the related services provided. The impact of this change increases our revenues, contract liabilities, PP&E and depreciation expense. We expect the impact of the adoption of the new revenue standard, including these changes, to be immaterial to our net income on an ongoing basis. |
Revenue from Contract with Cust
Revenue from Contract with Customers | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | Revenue from Contracts with Customers Adoption of ASC 606, Revenue from Contracts with Customers The table below provides the amount by which financial statement line items are affected in the current reporting period by the application of the new revenue standard, as compared with the guidance that was in effect before the change (in thousands): As Reported Amounts without adoption of ASC 606 Effect of Change Higher/(Lower) Statements of Income: Three Months Ended September 30, 2018 Transportation and terminals revenue $ 488,775 $ 486,801 $ 1,974 Depreciation and amortization $ 56,228 $ 56,108 $ 120 Nine Months Ended September 30, 2018 Transportation and terminals revenue $ 1,392,960 $ 1,383,404 $ 9,556 Depreciation and amortization $ 161,726 $ 161,486 $ 240 Balance Sheet: As of September 30, 2018 Assets: Property, plant and equipment $ 7,570,759 $ 7,555,758 $ 15,001 Accumulated depreciation 1,835,824 1,835,259 565 Net property, plant and equipment $ 5,734,935 $ 5,720,499 $ 14,436 Investments in non-controlled entities $ 1,005,392 $ 1,004,890 $ 502 Liabilities: Deferred revenue $ 121,247 $ 129,458 $ (8,211 ) Other noncurrent liabilities $ 64,425 $ 56,567 $ 7,858 Partners’ capital: Limited partner unitholders $ 2,665,620 $ 2,650,329 $ 15,291 Revenue recognition policies Revenue is recognized upon the satisfaction of each performance obligation required by our customer contracts. Transportation and terminals revenue is recognized over time as our customers receive the benefits of our service as it is performed on their behalf using an output method based on actual deliveries. Revenue for our storage services is recognized over time using an output method based on the capacity of storage under contract with our customers. Product sales revenue is recognized at a point in time when our customers take control of the commodities purchased. We record back-to-back purchases and sales of petroleum products where we are acting as an agent on a net basis. We recognize pipeline transportation revenue for crude oil and ammonia shipments when our customers’ product arrives at the customer-designated destination. For shipments of refined products under published tariffs that combine transportation and terminalling services, we recognize revenue when our customers take delivery of their product from our system. For shipments where terminalling services are not included in the tariff, we recognize revenue when our customers’ product arrives at the customer-designated destination. We have certain contracts that require counterparties to ship a minimum volume over an agreed-upon time period, which are contracted as minimum dollar or volume commitments. Revenue pursuant to these take-or-pay contracts is recognized when the customers utilize their committed volumes. Additionally, when we estimate that the customers will not utilize all or a portion of their committed volumes, we recognize revenue in proportion to the pattern of exercised rights for the respective commitment period. Our interstate common carrier petroleum products pipeline operations are subject to rate regulation by the Federal Energy Regulatory Commission (“FERC”) under the Interstate Commerce Act, the Energy Policy Act of 1992 and rules and orders promulgated pursuant thereto. FERC regulation requires that interstate pipeline rates be filed with the FERC, be posted publicly and be nondiscriminatory and “just and reasonable.” The rates on approximately 40% of the shipments on our refined products pipeline system are regulated by the FERC primarily through an index methodology. As an alternative to cost-of-service or index-based rates, interstate pipeline companies may establish rates by obtaining authority to charge market-based rates in competitive markets or by negotiation with unaffiliated shippers. Approximately 60% of our refined products pipeline system’s markets are either subject to regulations by the states in which we operate or are approved for market-based rates by the FERC, and in both cases these rates can generally be adjusted at our discretion based on market factors. Most of the tariffs on our crude oil pipelines are established by negotiated rates that generally provide for annual adjustments in line with changes in the FERC index, subject to certain modifications. For both our index-based rates and our market-based rates, our published tariffs serve as contracts, and shippers nominate the volume to be shipped up to a month in advance. These 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 this non-monetary consideration as tender deduction revenue. We receive tender deductions from our customers as consideration for product losses during the transportation of petroleum products within our pipeline systems. Tender deduction revenue is generally recognized as transportation revenue when the customer's transported commodities reach their destination and is recorded at the fair value of the product received on the date received or the contract date, as applicable. Product sales revenue pricing is contractually specified, and we have determined that each barrel sold represents a separate performance obligation. Transaction prices for our other services including terminalling, storage and ancillary services are typically contracted as a single performance obligation with our customers. In circumstances where multiple performance obligations are contractually required, we allocate the transaction price to the various performance obligations based on their relative standalone selling price. Statement of Income Disclosures The following tables provide details of our revenues disaggregated by key activities that comprise our performance obligations by operating segment (in thousands): Three Months Ended September 30, 2018 Refined Products Crude Oil Marine Storage Intersegment Eliminations Total Transportation $ 197,235 $ 91,086 $ — $ — $ 288,321 Terminalling 46,213 2,528 616 — 49,357 Storage 25,137 29,094 33,890 (923 ) 87,198 Ancillary services 28,808 6,278 5,857 — 40,943 Lease revenue 2,641 16,132 4,183 — 22,956 Transportation and terminals revenue 300,034 145,118 44,546 (923 ) 488,775 Product sales revenue 129,926 12,666 1,811 — 144,403 Affiliate management fee revenue 351 3,463 1,028 — 4,842 Total revenue 430,311 161,247 47,385 (923 ) 638,020 Revenue not under the guidance of ASC 606: Lease revenue (1) (2,641 ) (16,132 ) (4,183 ) — (22,956 ) Losses from futures contracts included in product sales revenue (2) 24,253 102 — — 24,355 Affiliate management fee revenue (351 ) (3,463 ) (1,028 ) — (4,842 ) Total revenue from contracts with customers under ASC 606 $ 451,572 $ 141,754 $ 42,174 $ (923 ) $ 634,577 (1) Lease revenue is accounted for under ASC 840, Leases . (2) The impact on product sales revenue from futures contracts falls under the guidance of ASC 815, Derivatives and Hedging . Nine Months Ended September 30, 2018 Refined Products Crude Oil Marine Storage Intersegment Eliminations Total Transportation $ 548,733 $ 254,964 $ — $ — $ 803,697 Terminalling 136,135 2,528 1,920 — 140,583 Storage 75,353 87,620 101,420 (2,753 ) 261,640 Ancillary services 83,055 19,512 18,928 — 121,495 Lease revenue 8,216 44,705 12,624 — 65,545 Transportation and terminals revenue 851,492 409,329 134,892 (2,753 ) 1,392,960 Product sales revenue 513,634 32,387 6,771 — 552,792 Affiliate management fee revenue 1,000 11,328 2,810 — 15,138 Total revenue 1,366,126 453,044 144,473 (2,753 ) 1,960,890 Revenue not under the guidance of ASC 606: Lease revenue (1) (8,216 ) (44,705 ) (12,624 ) — (65,545 ) Losses from futures contracts included in product sales revenue (2) 64,558 5,582 — — 70,140 Affiliate management fee revenue (1,000 ) (11,328 ) (2,810 ) — (15,138 ) Total revenue from contracts with customers under ASC 606 $ 1,421,468 $ 402,593 $ 129,039 $ (2,753 ) $ 1,950,347 (1) Lease revenue is accounted for under ASC 840, Leases . (2) The impact on product sales revenue from futures contracts falls under the guidance of ASC 815, Derivatives and Hedging . Balance Sheet Disclosures We invoice customers on our refined products pipelines 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 contract liability. This liability is presented as deferred revenue on our consolidated balance sheets. Deferred revenue is also recorded for pre-payments received in conjunction with take-or-pay contracts, storage contracts and other service offerings in which the service to our customers remains unfulfilled. Additionally, at each period end, we defer the direct costs we have incurred associated with our customers’ in-transit products as contract assets. Contract assets are presented on our consolidated balance sheets as other current assets. These direct costs are estimated based on our per-barrel direct delivery cost for the current period 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 of 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 contract assets and contract liabilities are determined using judgments and assumptions that management considers reasonable. The following table summarizes our accounts receivable, contract assets and contract liabilities resulting from contracts with customers (in thousands): January 1, 2018 September 30, 2018 Accounts receivable from contracts with customers $ 133,084 $ 135,269 Contract assets $ 8,615 $ 8,053 Contract liabilities $ 106,933 $ 119,841 For the three and nine months ended September 30, 2018 , we recognized $10.7 million and $77.0 million , respectively, of transportation and terminals revenue that was recorded in deferred revenue as of January 1, 2018. Unfulfilled Performance Obligations We have certain contracts with customers that represent customer commitments to purchase a minimum amount of our services over specified time periods. These contracts require us to provide services to our customers in the future and result in our having unfulfilled performance obligations (“UPOs”) to our customers related to the periods remaining under each contract. We have UPOs in many of our core business services, including transportation, terminalling and storage services. The UPOs will be recognized as revenue in the future as our customers utilize our services or when we estimate that our customers are not likely to use all or a portion of their commitments. The following table provides the aggregate amount of the transaction price allocated to our UPOs as of September 30, 2018 by operating segment, including the range of years remaining on our contracts with customers and an estimate of revenues expected to be recognized over the next 12 months (dollars in thousands): Refined Products Crude Oil Marine Storage Total Balances at September 30, 2018 $ 2,176,871 $ 1,419,449 $ 341,673 $ 3,937,993 Remaining terms 1 - 20 years 1 - 10 years 1 - 6 years Estimated revenues from UPOs to be recognized in the next 12 months $ 395,872 $ 328,844 $ 147,795 $ 872,511 In computing the value of these future revenues, we have used the current rates in effect as of September 30, 2018 and have not included any estimates for future rate changes due to changes in the FERC index or other contractually negotiated rate escalations. Our UPO balances include the full amount of our customer commitments as of September 30, 2018 through the expiration of the related contracts. The UPO balances disclosed exclude all performance obligations for which the original expected term is one year or less, the consideration is variable or the future use of our services is fully at the discretion of our customers. |
Segment Disclosures
Segment Disclosures | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Disclosures | Segment Disclosures Our reportable segments are strategic business units that offer different products and services. Our segments are managed separately as each segment requires different marketing strategies and business knowledge. Management evaluates performance based on segment operating margin, which includes revenue from affiliates and external customers, operating expenses, cost of product sales and earnings of non-controlled entities. We believe that investors benefit from having access to the same financial measures used by management. Operating margin, which is presented in the following tables, is an important measure used by management to evaluate the economic performance of our core operations. Operating margin is not a GAAP measure, but the components of operating margin are computed using amounts that are determined in accordance with GAAP. A reconciliation of operating margin to operating profit, which is its nearest comparable GAAP financial measure, is included in the tables below (presented in thousands). Operating profit includes depreciation and amortization expense and G&A expense that management does not consider when evaluating the core profitability of our separate operating segments. Three Months Ended September 30, 2017 Refined Products Crude Oil Marine Storage Intersegment Eliminations Total Transportation and terminals revenue $ 289,030 $ 116,305 $ 42,501 $ (901 ) $ 446,935 Product sales revenue 107,175 12,370 1,465 — 121,010 Affiliate management fee revenue 353 3,703 847 — 4,903 Total revenue 396,558 132,378 44,813 (901 ) 572,848 Operating expenses 118,665 31,163 17,723 (2,183 ) 165,368 Cost of product sales 103,391 16,630 1,798 — 121,819 (Earnings) losses of non-controlled entities 700 (31,244 ) (607 ) — (31,151 ) Operating margin 173,802 115,829 25,899 1,282 316,812 Depreciation and amortization expense 27,469 12,584 8,574 1,282 49,909 G&A expense 23,808 9,266 4,128 — 37,202 Operating profit $ 122,525 $ 93,979 $ 13,197 $ — $ 229,701 Three Months Ended September 30, 2018 Refined Products Crude Oil Marine Storage Intersegment Eliminations Total Transportation and terminals revenue $ 300,034 $ 145,118 $ 44,546 $ (923 ) $ 488,775 Product sales revenue 129,926 12,666 1,811 — 144,403 Affiliate management fee revenue 351 3,463 1,028 — 4,842 Total revenue 430,311 161,247 47,385 (923 ) 638,020 Operating expenses 112,279 45,195 17,178 (2,537 ) 172,115 Cost of product sales 106,756 11,590 2,164 — 120,510 Earnings of non-controlled entities (3,393 ) (49,420 ) (982 ) — (53,795 ) Operating margin 214,669 153,882 29,025 1,614 399,190 Depreciation and amortization expense 30,440 15,145 9,029 1,614 56,228 G&A expense 28,751 12,766 5,872 — 47,389 Operating profit $ 155,478 $ 125,971 $ 14,124 $ — $ 295,573 Nine Months Ended September 30, 2017 Refined Products Crude Oil Marine Storage Intersegment Eliminations Total Transportation and terminals revenue $ 808,818 $ 329,813 $ 136,702 $ (2,488 ) $ 1,272,845 Product sales revenue 509,068 34,876 4,690 — 548,634 Affiliate management fee revenue 1,035 10,311 1,537 — 12,883 Total revenue 1,318,921 375,000 142,929 (2,488 ) 1,834,362 Operating expenses 312,911 89,991 45,753 (6,401 ) 442,254 Cost of product sales 396,292 37,814 6,564 — 440,670 (Earnings) losses of non-controlled entities 167 (76,388 ) (1,952 ) — (78,173 ) Operating margin 609,551 323,583 92,564 3,913 1,029,611 Depreciation and amortization expense 81,440 35,947 24,803 3,913 146,103 G&A expense 75,429 30,376 15,071 — 120,876 Operating profit $ 452,682 $ 257,260 $ 52,690 $ — $ 762,632 Nine Months Ended September 30, 2018 Refined Products Crude Oil Marine Storage Intersegment Eliminations Total Transportation and terminals revenue $ 851,492 $ 409,329 $ 134,892 $ (2,753 ) $ 1,392,960 Product sales revenue 513,634 32,387 6,771 — 552,792 Affiliate management fee revenue 1,000 11,328 2,810 — 15,138 Total revenue 1,366,126 453,044 144,473 (2,753 ) 1,960,890 Operating expenses 319,670 109,963 52,835 (7,212 ) 475,256 Cost of product sales 434,632 32,401 6,748 — 473,781 Earnings of non-controlled entities (5,614 ) (122,879 ) (2,350 ) — (130,843 ) Operating margin 617,438 433,559 87,240 4,459 1,142,696 Depreciation and amortization expense 89,855 40,648 26,764 4,459 161,726 G&A expense 90,825 38,127 18,283 — 147,235 Operating profit $ 436,758 $ 354,784 $ 42,193 $ — $ 833,735 |
Investments in Non-Controlled E
Investments in Non-Controlled Entities | 9 Months Ended |
Sep. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Non-Controlled Entities | Investments in Non-Controlled Entities Our investments in non-controlled entities at September 30, 2018 were comprised of: Entity Ownership Interest BridgeTex Pipeline Company, LLC (“BridgeTex”) 30% Double Eagle Pipeline LLC (“Double Eagle”) 50% HoustonLink Pipeline Company, LLC (“HoustonLink”) 50% MVP Terminalling, LLC (“MVP”) 50% Powder Springs Logistics, LLC (“Powder Springs”) 50% Saddlehorn Pipeline Company, LLC (“Saddlehorn”) 40% Seabrook Logistics, LLC (“Seabrook”) 50% Texas Frontera, LLC (“Texas Frontera”) 50% In September 2018, we sold a 20% interest in BridgeTex to an affiliate of OMERS Infrastructure Management, Inc. (“OMERS”), which reduced our ongoing investment in BridgeTex to a 30% interest. We received $578.5 million in cash from the sale, and we recorded a gain of $353.8 million on our consolidated statements of income. See Note 9 – Commitments and Contingencies for details regarding our indemnity to OMERS that was recorded in relation to the sale. We serve as operator of BridgeTex, HoustonLink, MVP, Powder Springs, Saddlehorn, Texas Frontera and the pipeline activities of Seabrook. We receive fees for management services as well as reimbursement or payment to us for certain direct operational payroll and other overhead costs. The management fees we have received are reported as affiliate management fee revenue on our consolidated statements of income. Cost reimbursements we receive from these entities in connection with our operating services are included as reductions to costs and expenses on our consolidated statements of income and totaled $0.7 million and $0.9 million during the three months ended September 30, 2017 and 2018 , respectively, and $3.1 million and $2.6 million during the nine months ended September 30, 2017 and 2018 , respectively. We recorded the following revenue and expense transactions from certain of these non-controlled entities in our consolidated statements of income (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2017 2018 2017 2018 Transportation and terminals revenue: BridgeTex, pipeline capacity $ 9.1 $ 9.9 $ 27.0 $ 29.5 Double Eagle, throughput revenue $ 1.3 $ 1.0 $ 3.1 $ 3.9 Saddlehorn, storage revenue $ 0.5 $ 0.5 $ 1.6 $ 1.6 Operating costs: Seabrook, storage and ancillary services $ — $ 4.0 $ — $ 4.0 Product sales revenue: Powder Springs, butane sales $ — $ — $ — $ 4.9 Cost of product sales: Powder Springs, butane purchases $ — $ — $ — $ 0.4 Our consolidated balance sheets reflected the following balances related to our investments in non-controlled entities (in millions): December 31, 2017 September 30, 2018 Trade Accounts Receivable Other Accounts Receivable Other Accounts Payable Trade Accounts Receivable Other Accounts Receivable Other Accounts Payable BridgeTex $ — $ — $ — $ 0.2 $ 0.1 $ — Double Eagle $ 0.5 $ — $ — $ 0.3 $ — $ — HoustonLink $ — $ — $ 0.1 $ — $ — $ — MVP $ — $ 0.4 $ — $ — $ 1.2 $ — Powder Springs $ — $ 0.9 $ — $ — $ 2.1 $ — Saddlehorn $ — $ 0.1 $ — $ — $ 0.2 $ — Seabrook $ — $ 0.2 $ — $ — $ — $ 2.1 The financial results from MVP and Texas Frontera are included in our marine storage segment, the financial results from BridgeTex, Double Eagle, HoustonLink, Saddlehorn and Seabrook are included in our crude oil segment and the financial results from Powder Springs are included in our refined products segment, each as earnings of non-controlled entities. A summary of our investments in non-controlled entities follows (in thousands): Investments at December 31, 2017 $ 1,082,511 Additional investment 147,048 Sale of ownership interest in BridgeTex (205,776 ) Other adjustments 502 Earnings of non-controlled entities: Proportionate share of earnings 132,647 Amortization of excess investment and capitalized interest (1,804 ) Earnings of non-controlled entities 130,843 Less: Distributions from operations of non-controlled entities 147,950 Distributions from returns of investments in non-controlled entities 1,786 Investments at September 30, 2018 $ 1,005,392 |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory at December 31, 2017 and September 30, 2018 was as follows (in thousands): December 31, 2017 September 30, Refined products $ 73,845 $ 60,390 Liquefied petroleum gases 45,553 53,080 Transmix 33,319 43,588 Crude oil 23,763 16,129 Additives 5,865 6,179 Total inventory $ 182,345 $ 179,366 |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans We sponsor a defined contribution plan in which we match our employees’ qualifying contributions, resulting in additional expense to us. Expenses related to the defined contribution plan were $2.0 million and $2.7 million for the three months ended September 30, 2017 and 2018 , respectively, and $7.4 million and $8.8 million for the nine months ended September 30, 2017 and 2018 , respectively. Additionally, we sponsor two union pension plans that cover certain union employees, a pension plan for all non-union employees and a postretirement benefit plan for certain employees. Net periodic benefit expense for the three and nine months ended September 30, 2017 and 2018 was as follows (in thousands): Three Months Ended Three Months Ended September 30, 2017 September 30, 2018 Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits Components of net periodic benefit costs: Service cost $ 5,125 $ 51 $ 6,424 $ 58 Interest cost 2,466 111 2,816 104 Expected return on plan assets (2,566 ) — (3,055 ) — Amortization of prior service credit (45 ) — (45 ) — Amortization of actuarial loss 1,406 162 1,659 147 Settlement cost 289 — — — Net periodic benefit cost $ 6,675 $ 324 $ 7,799 $ 309 Nine Months Ended Nine Months Ended September 30, 2017 September 30, 2018 Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits Components of net periodic benefit costs: Service cost $ 15,373 $ 182 $ 28,393 $ 174 Interest cost 7,398 356 12,054 312 Expected return on plan assets (7,699 ) — (9,057 ) — Amortization of prior service credit (136 ) — (136 ) — Amortization of actuarial loss 4,217 562 8,182 441 Settlement cost 2,015 — — — Net periodic benefit cost $ 21,168 $ 1,100 $ 39,436 $ 927 The service component of our net periodic benefit costs is presented in operating expense and G&A expense, and the non-service components are presented in other expense in our consolidated statements of income. The changes in accumulated other comprehensive loss (“AOCL”) related to employee benefit plan assets and benefit obligations for the three and nine months ended September 30, 2017 and 2018 were as follows (in thousands): Three Months Ended Three Months Ended September 30, 2017 September 30, 2018 Gains (Losses) Included in AOCL Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits Beginning balance $ (54,138 ) $ (7,481 ) $ (96,352 ) $ (6,036 ) Amortization of prior service credit (45 ) — (45 ) — Amortization of actuarial loss 1,406 162 1,659 147 Settlement cost 289 — — — Ending balance $ (52,488 ) $ (7,319 ) $ (94,738 ) $ (5,889 ) Nine Months Ended Nine Months Ended September 30, 2017 September 30, 2018 Gains (Losses) Included in AOCL Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits Beginning balance $ (58,584 ) $ (7,881 ) $ (97,226 ) $ (6,597 ) Net actuarial gain (loss) — — (5,558 ) 267 Amortization of prior service credit (136 ) — (136 ) — Amortization of actuarial loss 4,217 562 8,182 441 Settlement cost 2,015 — — — Ending balance $ (52,488 ) $ (7,319 ) $ (94,738 ) $ (5,889 ) The net periodic benefit costs and AOCL presented in the tables above for the nine month period ending September 30, 2018 include one-time corrections made in first quarter 2018 resulting from an error in our third-party actuary’s valuation of our pension liabilities and net periodic pension expenses. See Note 1 – Organization, Description of Business and Basis of Presentation for more details regarding this error correction. Contributions estimated to be paid into the plans in 2018 are $31.7 million and $0.6 million for the pension plans and other postretirement benefit plan, respectively. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt at December 31, 2017 and September 30, 2018 was as follows (in thousands): December 31, September 30, Commercial paper $ — $ — 6.40% Notes due 2018 250,000 — 6.55% Notes due 2019 550,000 550,000 4.25% Notes due 2021 550,000 550,000 3.20% Notes due 2025 250,000 250,000 5.00% Notes due 2026 650,000 650,000 6.40% Notes due 2037 250,000 250,000 4.20% Notes due 2042 250,000 250,000 5.15% Notes due 2043 550,000 550,000 4.20% Notes due 2045 250,000 250,000 4.25% Notes due 2046 500,000 500,000 4.20% Notes due 2047 500,000 500,000 Face value of long-term debt 4,550,000 4,300,000 Unamortized debt issuance costs (1) (29,472 ) (27,683 ) Net unamortized debt premium (discount) (1) 215 (2,127 ) Net unamortized amount of gains from historical fair value hedges (1) 3,749 1,315 Long-term debt, net, including current portion 4,524,492 4,271,505 Less: current portion of long-term debt, net 250,974 552,898 Long-term debt, net $ 4,273,518 $ 3,718,607 (1) Debt issuance costs, note discounts and premiums and realized gains and losses of historical fair value hedges are being amortized or accreted to the applicable notes over the respective lives of those notes. All of the instruments detailed in the table above are senior indebtedness. Other Debt Revolving Credit Facilities. At September 30, 2018 , the total borrowing capacity under our revolving credit facility maturing October 26, 2022 was $1.0 billion . Any borrowings outstanding under this facility are classified as long-term debt on our consolidated balance sheets. Borrowings under this facility are unsecured and bear interest at LIBOR plus a spread ranging from 1.000% to 1.625% based on our credit ratings. Additionally, an unused commitment fee is assessed at a rate between 0.100% and 0.275% depending on our credit ratings. The unused commitment fee was 0.125% at September 30, 2018 . Borrowings under this facility may be used for general partnership purposes, including capital expenditures. As of both December 31, 2017 and September 30, 2018 , there were no borrowings outstanding under this facility, with $6.3 million obligated for letters of credit. Amounts obligated for letters of credit are not reflected as debt on our consolidated balance sheets, but decrease our borrowing capacity under this facility. Commercial Paper Program. We have a commercial paper program under which we may issue commercial paper notes in an amount up to the available capacity under our $1.0 billion revolving credit facility. The maturities of the commercial paper notes vary, but may not exceed 397 days from the date of issuance. Because the commercial paper we can issue is limited to amounts available under our revolving credit facility, amounts outstanding under the program are classified as long-term debt. The commercial paper notes are sold under customary terms in the commercial paper market and are issued at a discount from par, or alternatively, are sold at par and bear varying interest rates on a fixed or floating basis. The weighted-average interest rate for commercial paper borrowings based on the number of days outstanding was 1.3% for the year ended December 31, 2017 and 2.3% for the nine months ended September 30, 2018 . |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Interest Rate Derivatives We periodically enter into interest rate derivatives to hedge the fair value of debt or hedge against variability in interest rates. We record any ineffectiveness on interest rate 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. Adjustments resulting from discontinued hedges continue to be recognized in accordance with their historic hedging relationships. During 2018, we entered into $200.0 million of treasury lock agreements to protect against the risk of variability of a portion of debt issuances we anticipate to occur in 2018 and 2019. The fair value of these interest rate derivative agreements at September 30, 2018 was recorded as a current asset of $5.2 million , with the offset recorded to other comprehensive income. We account for these agreements as cash flow hedges. We entered into $100.0 million of interest rate swap agreements in 2016 to protect against the variability of future interest payments on a portion of debt we anticipated issuing in 2018. These agreements were accounted for as cash flow hedges. In September 2018, we terminated and settled these agreements for a gain of $20.9 million . The gain was recorded to other comprehensive income and will be recognized into earnings as an adjustment to our periodic interest accruals over the life of the expected debt issuance. Commodity Derivatives Our butane blending activities produce gasoline, and we can reasonably estimate the timing and quantities of sales of these products. We use a combination of exchange-traded commodities futures contracts and forward purchase and sale contracts to help manage commodity price changes and mitigate the risk of decline in the product margin realized from our butane blending activities. Further, certain of our other commercial operations generate petroleum products, and we also use futures contracts to hedge against price changes for some of these commodities. Forward physical purchase and sale contracts that qualify for and are elected as normal purchases and sales are accounted for using traditional accrual accounting, 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 tested once the forecasted period has passed to determine whether similar forward contracts are probable of physical delivery in the future. We record the effective portion of the gains or losses for commodity-based contracts designated 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 economic hedges that hedge against changes in the price of petroleum products that we expect to sell or purchase in the future currently in earnings as adjustments to product sales revenue, cost of product sales or operating expenses, as applicable. Our open futures contracts at September 30, 2018 were as follows: Type of Contract/Accounting Methodology Product Represented by the Contract and Associated Barrels Maturity Dates Futures - Economic Hedges 5.4 million barrels of refined products and crude oil Between October 2018 and April 2019 Futures - Economic Hedges 1.7 million barrels of butane and natural gasoline Between October 2018 and April 2019 Energy Commodity Derivatives Contracts and Deposits Offsets At December 31, 2017 and September 30, 2018 , we had margin deposits of $36.7 million and $47.4 million , respectively, for our future contracts with our counterparties, which were recorded as current assets under energy commodity derivatives deposits on our consolidated balance sheets. We have the right to offset the combined fair values of our open futures contracts against our margin deposits under a master netting arrangement for each counterparty; however, we have elected to present the combined fair values of our open futures contracts separately from the related margin deposits on our consolidated balance sheets. Additionally, we have the right to offset the fair values of our futures contracts together for each counterparty, which we have elected to do, and we report the combined net balances on our consolidated balance sheets. A schedule of the derivative amounts we have offset and the deposit amounts we could offset under a master netting arrangement are provided below as of December 31, 2017 and September 30, 2018 (in thousands): Description Gross Amounts of Recognized Liabilities Gross Amounts of Assets Offset in the Consolidated Balance Sheets Net Amounts of Liabilities Presented in the Consolidated Balance Sheets (2) Margin Deposit Amounts Not Offset in the Consolidated Balance Sheets Net Asset Amount (1) As of December 31, 2017 $ (38,936 ) $ 12,851 $ (26,085 ) $ 36,690 $ 10,605 As of September 30, 2018 $ (55,087 ) $ 22,843 $ (32,244 ) $ 47,354 $ 15,110 (1) Amount represents the maximum loss we would incur if all of our counterparties failed to perform on their derivative contracts. (2) Net amount includes energy commodity derivative contracts classified as current liabilities of $25,694 and noncurrent liabilities of $391 at December 31, 2017. Net amount includes energy commodity derivative contracts classified as current liabilities of $32,244 at September 30, 2018 . Impact of Derivatives on Our Financial Statements Comprehensive Income The changes in derivative activity included in AOCL for the three and nine months ended September 30, 2017 and 2018 were as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, Derivative Losses Included in AOCL 2017 2018 2017 2018 Beginning balance $ (34,804 ) $ (25,165 ) $ (34,776 ) $ (33,755 ) Net gain (loss) on cash flow hedges (228 ) 6,852 (1,735 ) 13,963 Reclassification of net loss on cash flow hedges to income 740 740 2,219 2,219 Ending balance $ (34,292 ) $ (17,573 ) $ (34,292 ) $ (17,573 ) The following is a summary of the effect on our consolidated statements of income for the three and nine months ended September 30, 2017 and 2018 of derivatives that were designated as cash flow hedges (in thousands): Interest Rate Contracts Amount of Gain (Loss) Recognized in AOCL on Derivative Location of Loss Reclassified from AOCL into Income Amount of Loss Reclassified from AOCL into Income Three Months Ended September 30, 2017 $ (228 ) Interest expense $ (740 ) Three Months Ended September 30, 2018 $ 6,852 Interest expense $ (740 ) Nine Months Ended September 30, 2017 $ (1,735 ) Interest expense $ (2,219 ) Nine Months Ended September 30, 2018 $ 13,963 Interest expense $ (2,219 ) As of September 30, 2018 , the net loss estimated to be classified to interest expense over the next twelve months from AOCL is approximately $2.3 million . This amount relates to the amortization of losses on interest rate contracts over the life of the related debt instruments. We used futures contracts designated as fair value hedges to hedge against changes in the fair value of crude oil that was contractually reserved as tank bottoms and included with other noncurrent assets on our consolidated balance sheets. During September 2017, as a result of contract renegotiations, we sold a portion of the tank bottoms, settled the related hedges and transferred the permanent portion of the tank bottoms from noncurrent assets to PP&E. The effective portions of the fair value gains or losses on these futures contracts were offset by fair value gains or losses on the crude oil, and there was no ineffectiveness recognized. The cash flows from settled contracts were recorded in operating activities in our consolidated statements of cash flows. The gains (losses) on these futures contracts and the underlying crude oil were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2018 2017 2018 Gain (loss) recognized in other income/expense on derivatives (futures contracts) $ (1,661 ) $ 122 $ 5,107 (427 ) Gain (loss) recognized in other income/expense on hedged item (crude oil) $ 1,661 $ (122 ) $ (5,107 ) 427 The differential between the current spot price and forward price was excluded from the assessment of hedge effectiveness for these fair value hedges. For the three and nine months ended September 30, 2017 , we recognized a gain of $0.7 million and $2.4 million , respectively, for the amounts we excluded from the assessment of effectiveness of these fair value hedges, which we reported as other (income) expense on our consolidated statements of income. The following table provides a summary of the effect on our consolidated statements of income for the three and nine months ended September 30, 2017 and 2018 of derivatives accounted for as economic hedges (in thousands): Amount of Gain (Loss) Recognized on Derivatives Three Months Ended Nine Months Ended Location of Gain (Loss) Recognized on Derivatives September 30, September 30, Derivative Instrument 2017 2018 2017 2018 Futures contracts Product sales revenue $ (47,336 ) $ (24,354 ) $ (4,442 ) $ (70,140 ) Futures contracts Operating expenses 663 — 663 — Futures contracts Cost of product sales 19,660 11,665 19,713 16,058 Total $ (27,013 ) $ (12,689 ) $ 15,934 $ (54,082 ) The impact of the derivatives in the above table was reflected as cash from operations on our consolidated statements of cash flows. Balance Sheets The following tables provide a summary of the fair value of derivatives , which are presented on a net basis in our consolidated balance sheets, that were designated as hedging instruments as of December 31, 2017 and September 30, 2018 (in thousands): December 31, 2017 Asset Derivatives Liability Derivatives Derivative Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value Futures contracts Energy commodity derivatives contracts, net $ — Energy commodity derivatives contracts, net $ 173 Interest rate contracts Other current assets 12,177 Other current liabilities — Total $ 12,177 Total $ 173 September 30, 2018 Asset Derivatives Liability Derivatives Derivative Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value Futures contracts Energy commodity derivatives contracts, net $ — Energy commodity derivatives contracts, net $ 189 Interest rate contracts Other current assets 5,215 Other current liabilities — Total $ 5,215 Total $ 189 The following tables provide a summary of the fair value of derivatives , which are presented on a net basis in our consolidated balance sheets, that were not designated as hedging instruments as of December 31, 2017 and September 30, 2018 (in thousands): December 31, 2017 Asset Derivatives Liability Derivatives Derivative Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value Futures contracts Energy commodity derivatives contracts, net $ 12,605 Energy commodity derivatives contracts, net $ 38,126 Futures contracts Other noncurrent assets 246 Other noncurrent liabilities 637 Total $ 12,851 Total $ 38,763 September 30, 2018 Asset Derivatives Liability Derivatives Derivative Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value Futures contracts Energy commodity derivatives contracts, net $ 22,843 Energy commodity derivatives contracts, net $ 54,898 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Butane Blending Patent Infringement Proceeding On October 4, 2017, Sunoco Partners Marketing & Terminals L.P. (“Sunoco”) brought an action for patent infringement in the U.S. District Court for the District of Delaware alleging Magellan Midstream Partners, L.P. (“Magellan”) and Powder Springs Logistics, LLC (“Powder Springs”) have infringed patents relating to butane blending at the Powder Springs facility located in Powder Springs, Georgia. Sunoco has since submitted pleadings alleging that Magellan has also infringed various patents relating to butane blending at nine Magellan facilities, in addition to Powder Springs. Sunoco is seeking an undetermined amount of damages, attorneys’ fees and a permanent injunction enjoining Magellan and Powder Springs from infringing on the subject patents. We deny and are vigorously defending against all claims asserted by Sunoco. Although it is not possible to predict the ultimate outcome, we believe, based on our current understanding of the applicable facts and law, that the ultimate resolution of this matter will not have a material adverse impact on our results of operations, financial position or cash flows. Environmental Liabilities Liabilities recognized for estimated environmental costs were $19.3 million and $23.6 million at December 31, 2017 and September 30, 2018 , respectively. We have classified environmental liabilities as current or noncurrent based on management’s estimates regarding the timing of actual payments. Environmental expenses recognized as a result of changes in our environmental liabilities are generally included in operating expenses on our consolidated statements of income. Environmental expenses were $3.0 million and $5.5 million for the three months ended September 30, 2017 and 2018 , respectively, and $7.5 million and $10.8 million for the nine months ended September 30, 2017 and 2018 , respectively. Environmental Receivables Receivables from insurance carriers and other third parties related to environmental matters were $7.2 million at December 31, 2017 , of which $0.5 million and $6.7 million were recorded to other accounts receivable and long-term receivables, respectively, on our consolidated balance sheets. Receivables from insurance carriers and other third parties related to environmental matters were $6.7 million at September 30, 2018 , of which $0.7 million and $6.0 million were recorded to other accounts receivable and long-term receivables, respectively, on our consolidated balance sheets. Other In connection with the sale of part of our interest in BridgeTex (see Note 4 – Investments in Non-Controlled Entities ), we agreed to indemnify an affiliate of OMERS for certain claims involving BridgeTex. The maximum obligation is limited to the net proceeds we received. We probability-weighted potential outcome scenarios to estimate the value of such indemnification obligations. As a result, we reduced the gain recognized on the transaction by $16.0 million and recorded the same estimate in other noncurrent liabilities on our consolidated balance sheets this period. We believe, however, that the most likely outcome is that no significant liability will result from such obligations. We have entered into an agreement to guarantee our 50% pro rata share, up to $25.0 million , of obligations under Powder Springs’ credit facility. As of September 30, 2018 , our consolidated balance sheets reflected a $0.4 million other current liability and a corresponding increase in our investment in non-controlled entities on our consolidated balance sheets to reflect the fair value of this guarantee. We are a party to various other claims, legal actions and complaints arising in the ordinary course of business. While the results cannot be predicted with certainty, management believes the ultimate resolution of these claims, legal actions and complaints after consideration of amounts accrued, insurance coverage or other indemnification arrangements will not have a material adverse effect on our results of operations, financial position or cash flows. |
Long-Term Incentive Plan
Long-Term Incentive Plan | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Long-Term Incentive Plan | Long-Term Incentive Plan The compensation committee of our general partner’s board of directors administers our long-term incentive plan (“LTIP”) covering certain of our employees and the independent directors of our general partner. The LTIP primarily consists of phantom units and permits the grant of awards covering an aggregate payout of 11.9 million of our limited partner units. The estimated units remaining available under the LTIP at September 30, 2018 total 2.1 million . Our equity-based incentive compensation expense was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2018 2017 2018 Performance-based awards $ 2,728 $ 7,087 $ 12,119 $ 22,176 Time-based awards 738 846 2,064 2,436 Total $ 3,466 $ 7,933 $ 14,183 $ 24,612 Allocation of LTIP expense on our consolidated statements of income: G&A expense $ 3,430 $ 7,867 $ 14,062 $ 24,412 Operating expense 36 66 121 200 Total $ 3,466 $ 7,933 $ 14,183 $ 24,612 On February 1, 2018, 294,054 unit awards were granted pursuant to our LTIP. These awards included both performance-based and time-based awards and have a three -year vesting period that will end on December 31, 2020. Basic and Diluted Net Income Per Limited Partner Unit The difference between our actual limited partner units outstanding and our weighted-average number of limited partner units outstanding used to calculate basic net income per unit is due to the impact of: (i) the unit awards issued to non-employee directors and (ii) the weighted average effect of units actually issued during a period. The difference between the weighted-average number of limited partner units outstanding used for basic and diluted net income per unit calculations on our consolidated statements of income is primarily the dilutive effect of unit awards associated with our LTIP that have not yet vested. |
Partners' Capital and Distribut
Partners' Capital and Distributions | 9 Months Ended |
Sep. 30, 2018 | |
Partners' Capital Notes [Abstract] | |
Partners' Capital and Distributions | Partners’ Capital and Distributions Partners’ Capital In May 2017, we filed a prospectus supplement to the shelf registration statement for our continuous equity offering program (which we refer to as an at-the-market program, or “ATM”) pursuant to which we may issue up to $750.0 million of common units in amounts, at prices and on terms to be determined by market conditions at the time. The net proceeds from any sales under the ATM, after deducting the sales agents’ commissions and our offering expenses, will be used for general partnership purposes, including repayment of indebtedness or capital expenditures. No units have been issued pursuant to this program. The following table details the changes in the number of our limited partner units outstanding from December 31, 2017 through September 30, 2018 : Limited partner units outstanding on December 31, 2017 228,024,556 January 2018–Settlement of employee LTIP awards 168,913 During 2018–Other (a) 1,691 Limited partner units outstanding on September 30, 2018 228,195,160 (a) Limited partner units issued to settle the equity-based retainer paid to an independent director of our general partner. Distributions Distributions we paid during 2017 and 2018 were as follows (in thousands, except per unit amounts): Payment Date Per Unit Cash Distribution Amount Total Cash Distribution to Limited Partners 02/14/2017 $ 0.8550 $ 194,961 05/15/2017 0.8725 198,951 08/14/2017 0.8900 202,942 Through 09/30/2017 2.6175 596,854 11/14/2017 0.9050 206,362 Total $ 3.5225 $ 803,216 02/14/2018 $ 0.9200 $ 209,940 05/15/2018 0.9375 213,933 08/14/2018 0.9575 218,497 Through 09/30/2018 2.8150 642,370 11/14/2018 (a) 0.9775 223,061 Total $ 3.7925 $ 865,431 (a) Our general partner’s board of directors declared this cash distribution in October 2018 to be paid on November 14, 2018 to unitholders of record at the close of business on November 7, 2018 . |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Fair Value Methods and Assumptions - Financial Assets and Liabilities. We used the following methods and assumptions in estimating fair value of our financial assets and liabilities: • Energy commodity derivatives contracts . These include exchange-traded futures contracts related to petroleum products. These contracts are carried at fair value on our consolidated balance sheets and are valued based on quoted prices in active markets. See Note 8 – Derivative Financial Instruments for further disclosures regarding these contracts. • Interest rate contracts. These include interest rate hedge agreements to protect against the risk of variability of interest payments on future debt. These contracts are carried at fair value on our consolidated balance sheets and are valued based on an assumed exchange, at the end of each period, in an orderly transaction with a market participant in the market in which the financial instrument is traded. The exchange value was calculated using present value techniques on estimated future cash flows based on forward interest rate curves. See Note 8 – Derivative Financial Instruments for further disclosures regarding these contracts. • Long-term receivables. These primarily include payments receivable under a direct-financing leasing arrangement and cost reimbursement payments receivable. These receivables were recorded at fair value on our consolidated balance sheets, using then-current market rates to estimate the present value of future cash flows. • Debt. The fair value of our publicly traded notes was based on the prices of those notes at December 31, 2017 and September 30, 2018 ; however, where recent observable market trades were not available, prices were determined using adjustments to the last traded value for that debt issuance or by adjustments to the prices of similar debt instruments of peer entities that are actively traded. The carrying amount of borrowings, if any, under our revolving credit facility and our commercial paper program approximates fair value due to the frequent repricing of these obligations. Fair Value Measurements - Financial Assets and Liabilities The following tables summarize the carrying amounts, fair values and fair value measurements recorded or disclosed as of December 31, 2017 and September 30, 2018 based on the three levels established by ASC 820, Fair Value Measurements and Disclosures (in thousands): December 31, 2017 Assets (Liabilities) Fair Value Measurements using: Carrying Amount Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Energy commodity derivatives contracts $ (26,085 ) $ (26,085 ) $ (26,085 ) $ — $ — Interest rate contracts $ 12,177 $ 12,177 $ — $ 12,177 $ — Long-term receivables $ 27,676 $ 27,676 $ — $ — $ 27,676 Debt $ (4,524,492 ) $ (4,826,480 ) $ — $ (4,826,480 ) $ — September 30, 2018 Assets (Liabilities) Fair Value Measurements using: Carrying Amount Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Energy commodity derivatives contracts $ (32,244 ) $ (32,244 ) $ (32,244 ) $ — $ — Interest rate contracts $ 5,215 $ 5,215 $ — $ 5,215 $ — Long-term receivables $ 23,520 $ 23,520 $ — $ — $ 23,520 Debt $ (4,271,505 ) $ (4,314,870 ) $ — $ (4,314,870 ) $ — |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Stacy P. Methvin is an independent member of our general partner’s board of directors and is also a director of one of our customers. We received tariff and other ancillary revenue from this customer of $4.1 million and $6.0 million for the three months ended September 30, 2017 and 2018 , respectively, and $12.5 million and $14.4 million for the nine months ended September 30, 2017 and 2018 , respectively. We recorded receivables of $1.6 million and $3.0 million from this customer at December 31, 2017 and September 30, 2018 , respectively. The tariff revenue we recognized from this customer was in the normal course of business, with rates determined in accordance with published tariffs. See Note 4 – Investments in Non-Controlled Entities for details of transactions with our joint ventures. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Recognizable events No recognizable events occurred subsequent to September 30, 2018 . Non-recognizable events Cash Distribution. In October 2018, our general partner’s board of directors declared a quarterly distribution of $0.9775 per unit for the period of July 1, 2018 through September 30, 2018. This quarterly cash distribution will be paid on November 14, 2018 to unitholders of record on November 7, 2018 . The total cash distributions expected to be paid under this declaration are approximately $223.1 million . |
Organization, Description of _2
Organization, Description of Business And Basis Of Presentation (Accounting Policies) (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation In the opinion of management, our accompanying consolidated financial statements which are unaudited, except for the consolidated balance sheet as of December 31, 2017 , which is derived from our audited financial statements, include all normal and recurring adjustments necessary to present fairly our financial position as of September 30, 2018 , the results of operations for the three and nine months ended September 30, 2017 and 2018 and cash flows for the nine months ended September 30, 2017 and 2018 . The results of operations for the nine months ended September 30, 2018 are not necessarily indicative of the results to be expected for the full year ending December 31, 2018 for several reasons. Profits from our butane blending activities are realized largely during the first and fourth quarters of each year. Additionally, gasoline demand, which drives transportation volumes and revenues on our refined products pipeline system, generally trends higher during the summer driving months. Further, the volatility of commodity prices impacts the profits from our commodity activities and, to a lesser extent, the volume of petroleum products we transport on our pipelines. Pursuant to the rules and regulations of the Securities and Exchange Commission, the financial statements in this report do not include all of the information and notes normally included with financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017 . |
Use of Estimates | Use of Estimates The preparation of our consolidated financial statements in conformity with 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. |
Reclassifications | Reclassifications. Prior year amounts related to restricted cash have been reclassified to conform with the current period’s presentation. |
Restricted Cash | Restricted Cash Restricted cash includes cash held by us, which is contractually required to be used for the construction of fixed assets, and is unavailable for general use. It is classified as noncurrent due to its designation to be used for the construction of noncurrent assets. |
New Accounting Pronouncements | New Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). This ASU requires lessees to recognize a right of use asset and lease liability on the balance sheet for all leases, with the exception of short-term leases. The new accounting model for lessors remains largely the same, although some changes have been made to align it with the new lessee model and the new revenue recognition guidance. This update also requires companies to include additional disclosures regarding their lessee and lessor agreements. For public companies, this ASU is effective for fiscal years that start after December 15, 2018, and early adoption is permitted. This standard will not have a material impact on our consolidated statements of income. Based on our current population of leases, we expect the impact of this ASU to increase our assets and liabilities by approximately $80.0 million due to the recognition of right of use assets and lease liabilities. New Accounting Pronouncements - Adopted January 1, 2018 In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . This update changes GAAP’s hedge accounting requirements to simplify some of the specialized treatment’s most complex areas. These simplifications are intended to expand opportunities to use hedge accounting and better align the accounting treatment with existing risk management activities. The ASU is effective for public companies starting after December 15, 2018, and we early-adopted the new standard on January 1, 2018. The adoption of this ASU did not have a material impact on our consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments: A Consensus of the FASB Emerging Issues Task Force . This ASU includes a requirement to make an accounting policy election to classify distributions received from equity method investees under either (1) the cumulative earnings approach, where distributions in excess of equity earnings are considered a return of capital and classified as cash inflows from investing activities, or (2) the nature of the distribution approach, where each distribution is evaluated on the basis of the source of the payment and classified as either operating or investing cash inflows. We adopted this standard on January 1, 2018 using the retrospective transition method and made an accounting policy election to use the nature of the distribution approach, which resulted in the following adjustments to our September 30, 2017 comparative statement of cash flows (in thousands): Nine Months Ended September 30, 2017, as Reported ASU 2016-15 Adjustment Nine Months Ended September 30, 2017, as Adjusted Operating activities: Distributions from operations of non-controlled entities $ 78,562 $ 19,129 $ 97,691 Net cash provided by operating activities $ 794,572 $ 19,129 $ 813,701 Investing activities: Distributions from returns of investments in non-controlled entities $ 71,867 $ (19,129 ) $ 52,738 Net cash used by investing activities $ (416,147 ) $ (19,129 ) $ (435,276 ) In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU amends the existing accounting standards for revenue recognition and is based on the principle that revenue should be recognized to depict the transfer of goods or services to a customer at an amount that reflects the consideration a company expects to receive in exchange for those goods or services. On January 1, 2018, we adopted the new Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers and all related amendments using the modified retrospective method. We recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of partners’ capital. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet resulting from the adoption of the new revenue standard was as follows (in thousands): Balance at December 31, 2017 Adjustments Due to ASU 2014-09 Balance at January 1, 2018 Assets: Property, plant and equipment $ 7,235,468 $ 8,516 $ 7,243,984 Accumulated depreciation (1,682,633 ) (325 ) (1,682,958 ) Net property, plant and equipment $ 5,552,835 $ 8,191 $ 5,561,026 Investments in non-controlled entities $ 1,082,511 $ 502 $ 1,083,013 Liabilities: Deferred revenue $ 117,795 $ (1,901 ) $ 115,894 Other noncurrent liabilities $ 30,350 $ 4,619 $ 34,969 Partners’ capital: Limited partner unitholders $ 2,267,231 $ 5,975 $ 2,273,206 The primary changes impacting our financial statements under the new revenue standard include the requirement for us to estimate deficiencies in our customers’ use of our services contracted as minimum commitments and adjust the amount of revenue recognized in proportion to our customers’ pattern of exercised rights. This change results in accelerating the timing of revenue recognized for specific contracts for which we estimate our customers will not ship their minimum commitments. In addition, we periodically receive payments from customers seeking to expand their access to our pipeline systems and terminals. Prior to the adoption of the new revenue standard, these payments were recorded as reductions to our property, plant and equipment (“PP&E”) expenditures. Under the new revenue standard, these payments are recorded to deferred revenue and other noncurrent liabilities and are recognized as revenue in proportion to the related services provided. The impact of this change increases our revenues, contract liabilities, PP&E and depreciation expense. We expect the impact of the adoption of the new revenue standard, including these changes, to be immaterial to our net income on an ongoing basis. |
Revenue Recognition | Revenue recognition policies Revenue is recognized upon the satisfaction of each performance obligation required by our customer contracts. Transportation and terminals revenue is recognized over time as our customers receive the benefits of our service as it is performed on their behalf using an output method based on actual deliveries. Revenue for our storage services is recognized over time using an output method based on the capacity of storage under contract with our customers. Product sales revenue is recognized at a point in time when our customers take control of the commodities purchased. We record back-to-back purchases and sales of petroleum products where we are acting as an agent on a net basis. We recognize pipeline transportation revenue for crude oil and ammonia shipments when our customers’ product arrives at the customer-designated destination. For shipments of refined products under published tariffs that combine transportation and terminalling services, we recognize revenue when our customers take delivery of their product from our system. For shipments where terminalling services are not included in the tariff, we recognize revenue when our customers’ product arrives at the customer-designated destination. We have certain contracts that require counterparties to ship a minimum volume over an agreed-upon time period, which are contracted as minimum dollar or volume commitments. Revenue pursuant to these take-or-pay contracts is recognized when the customers utilize their committed volumes. Additionally, when we estimate that the customers will not utilize all or a portion of their committed volumes, we recognize revenue in proportion to the pattern of exercised rights for the respective commitment period. Our interstate common carrier petroleum products pipeline operations are subject to rate regulation by the Federal Energy Regulatory Commission (“FERC”) under the Interstate Commerce Act, the Energy Policy Act of 1992 and rules and orders promulgated pursuant thereto. FERC regulation requires that interstate pipeline rates be filed with the FERC, be posted publicly and be nondiscriminatory and “just and reasonable.” The rates on approximately 40% of the shipments on our refined products pipeline system are regulated by the FERC primarily through an index methodology. As an alternative to cost-of-service or index-based rates, interstate pipeline companies may establish rates by obtaining authority to charge market-based rates in competitive markets or by negotiation with unaffiliated shippers. Approximately 60% of our refined products pipeline system’s markets are either subject to regulations by the states in which we operate or are approved for market-based rates by the FERC, and in both cases these rates can generally be adjusted at our discretion based on market factors. Most of the tariffs on our crude oil pipelines are established by negotiated rates that generally provide for annual adjustments in line with changes in the FERC index, subject to certain modifications. For both our index-based rates and our market-based rates, our published tariffs serve as contracts, and shippers nominate the volume to be shipped up to a month in advance. These 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 this non-monetary consideration as tender deduction revenue. We receive tender deductions from our customers as consideration for product losses during the transportation of petroleum products within our pipeline systems. Tender deduction revenue is generally recognized as transportation revenue when the customer's transported commodities reach their destination and is recorded at the fair value of the product received on the date received or the contract date, as applicable. Product sales revenue pricing is contractually specified, and we have determined that each barrel sold represents a separate performance obligation. Transaction prices for our other services including terminalling, storage and ancillary services are typically contracted as a single performance obligation with our customers. In circumstances where multiple performance obligations are contractually required, we allocate the transaction price to the various performance obligations based on their relative standalone selling price. |
Revenue Recognition, Deferred Revenue | Balance Sheet Disclosures We invoice customers on our refined products pipelines 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 contract liability. This liability is presented as deferred revenue on our consolidated balance sheets. Deferred revenue is also recorded for pre-payments received in conjunction with take-or-pay contracts, storage contracts and other service offerings in which the service to our customers remains unfulfilled. Additionally, at each period end, we defer the direct costs we have incurred associated with our customers’ in-transit products as contract assets. Contract assets are presented on our consolidated balance sheets as other current assets. These direct costs are estimated based on our per-barrel direct delivery cost for the current period 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 of 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 contract assets and contract liabilities are determined using judgments and assumptions that management considers reasonable. |
Organization, Description of _3
Organization, Description of Business and Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments: A Consensus of the FASB Emerging Issues Task Force . This ASU includes a requirement to make an accounting policy election to classify distributions received from equity method investees under either (1) the cumulative earnings approach, where distributions in excess of equity earnings are considered a return of capital and classified as cash inflows from investing activities, or (2) the nature of the distribution approach, where each distribution is evaluated on the basis of the source of the payment and classified as either operating or investing cash inflows. We adopted this standard on January 1, 2018 using the retrospective transition method and made an accounting policy election to use the nature of the distribution approach, which resulted in the following adjustments to our September 30, 2017 comparative statement of cash flows (in thousands): Nine Months Ended September 30, 2017, as Reported ASU 2016-15 Adjustment Nine Months Ended September 30, 2017, as Adjusted Operating activities: Distributions from operations of non-controlled entities $ 78,562 $ 19,129 $ 97,691 Net cash provided by operating activities $ 794,572 $ 19,129 $ 813,701 Investing activities: Distributions from returns of investments in non-controlled entities $ 71,867 $ (19,129 ) $ 52,738 Net cash used by investing activities $ (416,147 ) $ (19,129 ) $ (435,276 ) In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU amends the existing accounting standards for revenue recognition and is based on the principle that revenue should be recognized to depict the transfer of goods or services to a customer at an amount that reflects the consideration a company expects to receive in exchange for those goods or services. On January 1, 2018, we adopted the new Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers and all related amendments using the modified retrospective method. We recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of partners’ capital. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet resulting from the adoption of the new revenue standard was as follows (in thousands): Balance at December 31, 2017 Adjustments Due to ASU 2014-09 Balance at January 1, 2018 Assets: Property, plant and equipment $ 7,235,468 $ 8,516 $ 7,243,984 Accumulated depreciation (1,682,633 ) (325 ) (1,682,958 ) Net property, plant and equipment $ 5,552,835 $ 8,191 $ 5,561,026 Investments in non-controlled entities $ 1,082,511 $ 502 $ 1,083,013 Liabilities: Deferred revenue $ 117,795 $ (1,901 ) $ 115,894 Other noncurrent liabilities $ 30,350 $ 4,619 $ 34,969 Partners’ capital: Limited partner unitholders $ 2,267,231 $ 5,975 $ 2,273,206 |
Revenue from Contract with Cu_2
Revenue from Contract with Customers (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Prospective Adoption of New Accounting Pronouncements | The table below provides the amount by which financial statement line items are affected in the current reporting period by the application of the new revenue standard, as compared with the guidance that was in effect before the change (in thousands): As Reported Amounts without adoption of ASC 606 Effect of Change Higher/(Lower) Statements of Income: Three Months Ended September 30, 2018 Transportation and terminals revenue $ 488,775 $ 486,801 $ 1,974 Depreciation and amortization $ 56,228 $ 56,108 $ 120 Nine Months Ended September 30, 2018 Transportation and terminals revenue $ 1,392,960 $ 1,383,404 $ 9,556 Depreciation and amortization $ 161,726 $ 161,486 $ 240 Balance Sheet: As of September 30, 2018 Assets: Property, plant and equipment $ 7,570,759 $ 7,555,758 $ 15,001 Accumulated depreciation 1,835,824 1,835,259 565 Net property, plant and equipment $ 5,734,935 $ 5,720,499 $ 14,436 Investments in non-controlled entities $ 1,005,392 $ 1,004,890 $ 502 Liabilities: Deferred revenue $ 121,247 $ 129,458 $ (8,211 ) Other noncurrent liabilities $ 64,425 $ 56,567 $ 7,858 Partners’ capital: Limited partner unitholders $ 2,665,620 $ 2,650,329 $ 15,291 |
Revenue from External Customers by Products and Services | The following tables provide details of our revenues disaggregated by key activities that comprise our performance obligations by operating segment (in thousands): Three Months Ended September 30, 2018 Refined Products Crude Oil Marine Storage Intersegment Eliminations Total Transportation $ 197,235 $ 91,086 $ — $ — $ 288,321 Terminalling 46,213 2,528 616 — 49,357 Storage 25,137 29,094 33,890 (923 ) 87,198 Ancillary services 28,808 6,278 5,857 — 40,943 Lease revenue 2,641 16,132 4,183 — 22,956 Transportation and terminals revenue 300,034 145,118 44,546 (923 ) 488,775 Product sales revenue 129,926 12,666 1,811 — 144,403 Affiliate management fee revenue 351 3,463 1,028 — 4,842 Total revenue 430,311 161,247 47,385 (923 ) 638,020 Revenue not under the guidance of ASC 606: Lease revenue (1) (2,641 ) (16,132 ) (4,183 ) — (22,956 ) Losses from futures contracts included in product sales revenue (2) 24,253 102 — — 24,355 Affiliate management fee revenue (351 ) (3,463 ) (1,028 ) — (4,842 ) Total revenue from contracts with customers under ASC 606 $ 451,572 $ 141,754 $ 42,174 $ (923 ) $ 634,577 (1) Lease revenue is accounted for under ASC 840, Leases . (2) The impact on product sales revenue from futures contracts falls under the guidance of ASC 815, Derivatives and Hedging . Nine Months Ended September 30, 2018 Refined Products Crude Oil Marine Storage Intersegment Eliminations Total Transportation $ 548,733 $ 254,964 $ — $ — $ 803,697 Terminalling 136,135 2,528 1,920 — 140,583 Storage 75,353 87,620 101,420 (2,753 ) 261,640 Ancillary services 83,055 19,512 18,928 — 121,495 Lease revenue 8,216 44,705 12,624 — 65,545 Transportation and terminals revenue 851,492 409,329 134,892 (2,753 ) 1,392,960 Product sales revenue 513,634 32,387 6,771 — 552,792 Affiliate management fee revenue 1,000 11,328 2,810 — 15,138 Total revenue 1,366,126 453,044 144,473 (2,753 ) 1,960,890 Revenue not under the guidance of ASC 606: Lease revenue (1) (8,216 ) (44,705 ) (12,624 ) — (65,545 ) Losses from futures contracts included in product sales revenue (2) 64,558 5,582 — — 70,140 Affiliate management fee revenue (1,000 ) (11,328 ) (2,810 ) — (15,138 ) Total revenue from contracts with customers under ASC 606 $ 1,421,468 $ 402,593 $ 129,039 $ (2,753 ) $ 1,950,347 (1) Lease revenue is accounted for under ASC 840, Leases . (2) The impact on product sales revenue from futures contracts falls under the guidance of ASC 815, Derivatives and Hedging . |
Contract with Customer, Asset and Liability | The following table summarizes our accounts receivable, contract assets and contract liabilities resulting from contracts with customers (in thousands): January 1, 2018 September 30, 2018 Accounts receivable from contracts with customers $ 133,084 $ 135,269 Contract assets $ 8,615 $ 8,053 Contract liabilities $ 106,933 $ 119,841 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | The following table provides the aggregate amount of the transaction price allocated to our UPOs as of September 30, 2018 by operating segment, including the range of years remaining on our contracts with customers and an estimate of revenues expected to be recognized over the next 12 months (dollars in thousands): Refined Products Crude Oil Marine Storage Total Balances at September 30, 2018 $ 2,176,871 $ 1,419,449 $ 341,673 $ 3,937,993 Remaining terms 1 - 20 years 1 - 10 years 1 - 6 years Estimated revenues from UPOs to be recognized in the next 12 months $ 395,872 $ 328,844 $ 147,795 $ 872,511 |
Segment Disclosures (Tables)
Segment Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Business Segment Reporting Information | Three Months Ended September 30, 2017 Refined Products Crude Oil Marine Storage Intersegment Eliminations Total Transportation and terminals revenue $ 289,030 $ 116,305 $ 42,501 $ (901 ) $ 446,935 Product sales revenue 107,175 12,370 1,465 — 121,010 Affiliate management fee revenue 353 3,703 847 — 4,903 Total revenue 396,558 132,378 44,813 (901 ) 572,848 Operating expenses 118,665 31,163 17,723 (2,183 ) 165,368 Cost of product sales 103,391 16,630 1,798 — 121,819 (Earnings) losses of non-controlled entities 700 (31,244 ) (607 ) — (31,151 ) Operating margin 173,802 115,829 25,899 1,282 316,812 Depreciation and amortization expense 27,469 12,584 8,574 1,282 49,909 G&A expense 23,808 9,266 4,128 — 37,202 Operating profit $ 122,525 $ 93,979 $ 13,197 $ — $ 229,701 Three Months Ended September 30, 2018 Refined Products Crude Oil Marine Storage Intersegment Eliminations Total Transportation and terminals revenue $ 300,034 $ 145,118 $ 44,546 $ (923 ) $ 488,775 Product sales revenue 129,926 12,666 1,811 — 144,403 Affiliate management fee revenue 351 3,463 1,028 — 4,842 Total revenue 430,311 161,247 47,385 (923 ) 638,020 Operating expenses 112,279 45,195 17,178 (2,537 ) 172,115 Cost of product sales 106,756 11,590 2,164 — 120,510 Earnings of non-controlled entities (3,393 ) (49,420 ) (982 ) — (53,795 ) Operating margin 214,669 153,882 29,025 1,614 399,190 Depreciation and amortization expense 30,440 15,145 9,029 1,614 56,228 G&A expense 28,751 12,766 5,872 — 47,389 Operating profit $ 155,478 $ 125,971 $ 14,124 $ — $ 295,573 Nine Months Ended September 30, 2017 Refined Products Crude Oil Marine Storage Intersegment Eliminations Total Transportation and terminals revenue $ 808,818 $ 329,813 $ 136,702 $ (2,488 ) $ 1,272,845 Product sales revenue 509,068 34,876 4,690 — 548,634 Affiliate management fee revenue 1,035 10,311 1,537 — 12,883 Total revenue 1,318,921 375,000 142,929 (2,488 ) 1,834,362 Operating expenses 312,911 89,991 45,753 (6,401 ) 442,254 Cost of product sales 396,292 37,814 6,564 — 440,670 (Earnings) losses of non-controlled entities 167 (76,388 ) (1,952 ) — (78,173 ) Operating margin 609,551 323,583 92,564 3,913 1,029,611 Depreciation and amortization expense 81,440 35,947 24,803 3,913 146,103 G&A expense 75,429 30,376 15,071 — 120,876 Operating profit $ 452,682 $ 257,260 $ 52,690 $ — $ 762,632 Nine Months Ended September 30, 2018 Refined Products Crude Oil Marine Storage Intersegment Eliminations Total Transportation and terminals revenue $ 851,492 $ 409,329 $ 134,892 $ (2,753 ) $ 1,392,960 Product sales revenue 513,634 32,387 6,771 — 552,792 Affiliate management fee revenue 1,000 11,328 2,810 — 15,138 Total revenue 1,366,126 453,044 144,473 (2,753 ) 1,960,890 Operating expenses 319,670 109,963 52,835 (7,212 ) 475,256 Cost of product sales 434,632 32,401 6,748 — 473,781 Earnings of non-controlled entities (5,614 ) (122,879 ) (2,350 ) — (130,843 ) Operating margin 617,438 433,559 87,240 4,459 1,142,696 Depreciation and amortization expense 89,855 40,648 26,764 4,459 161,726 G&A expense 90,825 38,127 18,283 — 147,235 Operating profit $ 436,758 $ 354,784 $ 42,193 $ — $ 833,735 |
Investments in Non-Controlled_2
Investments in Non-Controlled Entities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Our investments in non-controlled entities at September 30, 2018 were comprised of: Entity Ownership Interest BridgeTex Pipeline Company, LLC (“BridgeTex”) 30% Double Eagle Pipeline LLC (“Double Eagle”) 50% HoustonLink Pipeline Company, LLC (“HoustonLink”) 50% MVP Terminalling, LLC (“MVP”) 50% Powder Springs Logistics, LLC (“Powder Springs”) 50% Saddlehorn Pipeline Company, LLC (“Saddlehorn”) 40% Seabrook Logistics, LLC (“Seabrook”) 50% Texas Frontera, LLC (“Texas Frontera”) 50% In September 2018, we sold a 20% interest in BridgeTex to an affiliate of OMERS Infrastructure Management, Inc. (“OMERS”), which reduced our ongoing investment in BridgeTex to a 30% interest. We received $578.5 million in cash from the sale, and we recorded a gain of $353.8 million on our consolidated statements of income. See Note 9 – Commitments and Contingencies for details regarding our indemnity to OMERS that was recorded in relation to the sale. We serve as operator of BridgeTex, HoustonLink, MVP, Powder Springs, Saddlehorn, Texas Frontera and the pipeline activities of Seabrook. We receive fees for management services as well as reimbursement or payment to us for certain direct operational payroll and other overhead costs. The management fees we have received are reported as affiliate management fee revenue on our consolidated statements of income. Cost reimbursements we receive from these entities in connection with our operating services are included as reductions to costs and expenses on our consolidated statements of income and totaled $0.7 million and $0.9 million during the three months ended September 30, 2017 and 2018 , respectively, and $3.1 million and $2.6 million during the nine months ended September 30, 2017 and 2018 , respectively. We recorded the following revenue and expense transactions from certain of these non-controlled entities in our consolidated statements of income (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2017 2018 2017 2018 Transportation and terminals revenue: BridgeTex, pipeline capacity $ 9.1 $ 9.9 $ 27.0 $ 29.5 Double Eagle, throughput revenue $ 1.3 $ 1.0 $ 3.1 $ 3.9 Saddlehorn, storage revenue $ 0.5 $ 0.5 $ 1.6 $ 1.6 Operating costs: Seabrook, storage and ancillary services $ — $ 4.0 $ — $ 4.0 Product sales revenue: Powder Springs, butane sales $ — $ — $ — $ 4.9 Cost of product sales: Powder Springs, butane purchases $ — $ — $ — $ 0.4 Our consolidated balance sheets reflected the following balances related to our investments in non-controlled entities (in millions): December 31, 2017 September 30, 2018 Trade Accounts Receivable Other Accounts Receivable Other Accounts Payable Trade Accounts Receivable Other Accounts Receivable Other Accounts Payable BridgeTex $ — $ — $ — $ 0.2 $ 0.1 $ — Double Eagle $ 0.5 $ — $ — $ 0.3 $ — $ — HoustonLink $ — $ — $ 0.1 $ — $ — $ — MVP $ — $ 0.4 $ — $ — $ 1.2 $ — Powder Springs $ — $ 0.9 $ — $ — $ 2.1 $ — Saddlehorn $ — $ 0.1 $ — $ — $ 0.2 $ — Seabrook $ — $ 0.2 $ — $ — $ — $ 2.1 The financial results from MVP and Texas Frontera are included in our marine storage segment, the financial results from BridgeTex, Double Eagle, HoustonLink, Saddlehorn and Seabrook are included in our crude oil segment and the financial results from Powder Springs are included in our refined products segment, each as earnings of non-controlled entities. A summary of our investments in non-controlled entities follows (in thousands): Investments at December 31, 2017 $ 1,082,511 Additional investment 147,048 Sale of ownership interest in BridgeTex (205,776 ) Other adjustments 502 Earnings of non-controlled entities: Proportionate share of earnings 132,647 Amortization of excess investment and capitalized interest (1,804 ) Earnings of non-controlled entities 130,843 Less: Distributions from operations of non-controlled entities 147,950 Distributions from returns of investments in non-controlled entities 1,786 Investments at September 30, 2018 $ 1,005,392 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory at December 31, 2017 and September 30, 2018 was as follows (in thousands): December 31, 2017 September 30, Refined products $ 73,845 $ 60,390 Liquefied petroleum gases 45,553 53,080 Transmix 33,319 43,588 Crude oil 23,763 16,129 Additives 5,865 6,179 Total inventory $ 182,345 $ 179,366 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Consolidated Net Periodic Benefit Costs | Net periodic benefit expense for the three and nine months ended September 30, 2017 and 2018 was as follows (in thousands): Three Months Ended Three Months Ended September 30, 2017 September 30, 2018 Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits Components of net periodic benefit costs: Service cost $ 5,125 $ 51 $ 6,424 $ 58 Interest cost 2,466 111 2,816 104 Expected return on plan assets (2,566 ) — (3,055 ) — Amortization of prior service credit (45 ) — (45 ) — Amortization of actuarial loss 1,406 162 1,659 147 Settlement cost 289 — — — Net periodic benefit cost $ 6,675 $ 324 $ 7,799 $ 309 Nine Months Ended Nine Months Ended September 30, 2017 September 30, 2018 Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits Components of net periodic benefit costs: Service cost $ 15,373 $ 182 $ 28,393 $ 174 Interest cost 7,398 356 12,054 312 Expected return on plan assets (7,699 ) — (9,057 ) — Amortization of prior service credit (136 ) — (136 ) — Amortization of actuarial loss 4,217 562 8,182 441 Settlement cost 2,015 — — — Net periodic benefit cost $ 21,168 $ 1,100 $ 39,436 $ 927 The service component of our net periodic benefit costs is presented in operating expense and G&A expense, and the non-service components are presented in other expense in our consolidated statements of income. |
Schedule of Amounts Recognized in Other Comprehensive Loss | The changes in accumulated other comprehensive loss (“AOCL”) related to employee benefit plan assets and benefit obligations for the three and nine months ended September 30, 2017 and 2018 were as follows (in thousands): Three Months Ended Three Months Ended September 30, 2017 September 30, 2018 Gains (Losses) Included in AOCL Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits Beginning balance $ (54,138 ) $ (7,481 ) $ (96,352 ) $ (6,036 ) Amortization of prior service credit (45 ) — (45 ) — Amortization of actuarial loss 1,406 162 1,659 147 Settlement cost 289 — — — Ending balance $ (52,488 ) $ (7,319 ) $ (94,738 ) $ (5,889 ) Nine Months Ended Nine Months Ended September 30, 2017 September 30, 2018 Gains (Losses) Included in AOCL Pension Benefits Other Postretirement Benefits Pension Benefits Other Postretirement Benefits Beginning balance $ (58,584 ) $ (7,881 ) $ (97,226 ) $ (6,597 ) Net actuarial gain (loss) — — (5,558 ) 267 Amortization of prior service credit (136 ) — (136 ) — Amortization of actuarial loss 4,217 562 8,182 441 Settlement cost 2,015 — — — Ending balance $ (52,488 ) $ (7,319 ) $ (94,738 ) $ (5,889 ) |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Consolidated Debt | Long-term debt at December 31, 2017 and September 30, 2018 was as follows (in thousands): December 31, September 30, Commercial paper $ — $ — 6.40% Notes due 2018 250,000 — 6.55% Notes due 2019 550,000 550,000 4.25% Notes due 2021 550,000 550,000 3.20% Notes due 2025 250,000 250,000 5.00% Notes due 2026 650,000 650,000 6.40% Notes due 2037 250,000 250,000 4.20% Notes due 2042 250,000 250,000 5.15% Notes due 2043 550,000 550,000 4.20% Notes due 2045 250,000 250,000 4.25% Notes due 2046 500,000 500,000 4.20% Notes due 2047 500,000 500,000 Face value of long-term debt 4,550,000 4,300,000 Unamortized debt issuance costs (1) (29,472 ) (27,683 ) Net unamortized debt premium (discount) (1) 215 (2,127 ) Net unamortized amount of gains from historical fair value hedges (1) 3,749 1,315 Long-term debt, net, including current portion 4,524,492 4,271,505 Less: current portion of long-term debt, net 250,974 552,898 Long-term debt, net $ 4,273,518 $ 3,718,607 (1) Debt issuance costs, note discounts and premiums and realized gains and losses of historical fair value hedges are being amortized or accreted to the applicable notes over the respective lives of those notes. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule Of NYMEX Contracts And Butane Price Swap Purchase Agreements | Our open futures contracts at September 30, 2018 were as follows: Type of Contract/Accounting Methodology Product Represented by the Contract and Associated Barrels Maturity Dates Futures - Economic Hedges 5.4 million barrels of refined products and crude oil Between October 2018 and April 2019 Futures - Economic Hedges 1.7 million barrels of butane and natural gasoline Between October 2018 and April 2019 |
Derivatives and Offset Amounts | A schedule of the derivative amounts we have offset and the deposit amounts we could offset under a master netting arrangement are provided below as of December 31, 2017 and September 30, 2018 (in thousands): Description Gross Amounts of Recognized Liabilities Gross Amounts of Assets Offset in the Consolidated Balance Sheets Net Amounts of Liabilities Presented in the Consolidated Balance Sheets (2) Margin Deposit Amounts Not Offset in the Consolidated Balance Sheets Net Asset Amount (1) As of December 31, 2017 $ (38,936 ) $ 12,851 $ (26,085 ) $ 36,690 $ 10,605 As of September 30, 2018 $ (55,087 ) $ 22,843 $ (32,244 ) $ 47,354 $ 15,110 (1) Amount represents the maximum loss we would incur if all of our counterparties failed to perform on their derivative contracts. (2) Net amount includes energy commodity derivative contracts classified as current liabilities of $25,694 and noncurrent liabilities of $391 at December 31, 2017. Net amount includes energy commodity derivative contracts classified as current liabilities of $32,244 at September 30, 2018 . |
Derivative Gains Included in Accumulated Other Comprehensive Loss (AOCL) | The changes in derivative activity included in AOCL for the three and nine months ended September 30, 2017 and 2018 were as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, Derivative Losses Included in AOCL 2017 2018 2017 2018 Beginning balance $ (34,804 ) $ (25,165 ) $ (34,776 ) $ (33,755 ) Net gain (loss) on cash flow hedges (228 ) 6,852 (1,735 ) 13,963 Reclassification of net loss on cash flow hedges to income 740 740 2,219 2,219 Ending balance $ (34,292 ) $ (17,573 ) $ (34,292 ) $ (17,573 ) |
Derivatives and Hedging-Cash Flow Hedges | The following is a summary of the effect on our consolidated statements of income for the three and nine months ended September 30, 2017 and 2018 of derivatives that were designated as cash flow hedges (in thousands): Interest Rate Contracts Amount of Gain (Loss) Recognized in AOCL on Derivative Location of Loss Reclassified from AOCL into Income Amount of Loss Reclassified from AOCL into Income Three Months Ended September 30, 2017 $ (228 ) Interest expense $ (740 ) Three Months Ended September 30, 2018 $ 6,852 Interest expense $ (740 ) Nine Months Ended September 30, 2017 $ (1,735 ) Interest expense $ (2,219 ) Nine Months Ended September 30, 2018 $ 13,963 Interest expense $ (2,219 ) |
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location | Three Months Ended September 30, Nine Months Ended September 30, 2017 2018 2017 2018 Gain (loss) recognized in other income/expense on derivatives (futures contracts) $ (1,661 ) $ 122 $ 5,107 (427 ) Gain (loss) recognized in other income/expense on hedged item (crude oil) $ 1,661 $ (122 ) $ (5,107 ) 427 |
Derivatives and Hedging-Overall-Subsequent Measurement | The following table provides a summary of the effect on our consolidated statements of income for the three and nine months ended September 30, 2017 and 2018 of derivatives accounted for as economic hedges (in thousands): Amount of Gain (Loss) Recognized on Derivatives Three Months Ended Nine Months Ended Location of Gain (Loss) Recognized on Derivatives September 30, September 30, Derivative Instrument 2017 2018 2017 2018 Futures contracts Product sales revenue $ (47,336 ) $ (24,354 ) $ (4,442 ) $ (70,140 ) Futures contracts Operating expenses 663 — 663 — Futures contracts Cost of product sales 19,660 11,665 19,713 16,058 Total $ (27,013 ) $ (12,689 ) $ 15,934 $ (54,082 ) |
Derivatives and Hedging-Designated | The following tables provide a summary of the fair value of derivatives , which are presented on a net basis in our consolidated balance sheets, that were designated as hedging instruments as of December 31, 2017 and September 30, 2018 (in thousands): December 31, 2017 Asset Derivatives Liability Derivatives Derivative Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value Futures contracts Energy commodity derivatives contracts, net $ — Energy commodity derivatives contracts, net $ 173 Interest rate contracts Other current assets 12,177 Other current liabilities — Total $ 12,177 Total $ 173 September 30, 2018 Asset Derivatives Liability Derivatives Derivative Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value Futures contracts Energy commodity derivatives contracts, net $ — Energy commodity derivatives contracts, net $ 189 Interest rate contracts Other current assets 5,215 Other current liabilities — Total $ 5,215 Total $ 189 The following tables provide a summary of the fair value of derivatives , which are presented on a net basis in our consolidated balance sheets, that were not designated as hedging instruments as of December 31, 2017 and September 30, 2018 (in thousands): December 31, 2017 Asset Derivatives Liability Derivatives Derivative Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value Futures contracts Energy commodity derivatives contracts, net $ 12,605 Energy commodity derivatives contracts, net $ 38,126 Futures contracts Other noncurrent assets 246 Other noncurrent liabilities 637 Total $ 12,851 Total $ 38,763 September 30, 2018 Asset Derivatives Liability Derivatives Derivative Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value Futures contracts Energy commodity derivatives contracts, net $ 22,843 Energy commodity derivatives contracts, net $ 54,898 |
Long-Term Incentive Plan (Table
Long-Term Incentive Plan (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity-Based Incentive Compensation Expense | Our equity-based incentive compensation expense was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2018 2017 2018 Performance-based awards $ 2,728 $ 7,087 $ 12,119 $ 22,176 Time-based awards 738 846 2,064 2,436 Total $ 3,466 $ 7,933 $ 14,183 $ 24,612 Allocation of LTIP expense on our consolidated statements of income: G&A expense $ 3,430 $ 7,867 $ 14,062 $ 24,412 Operating expense 36 66 121 200 Total $ 3,466 $ 7,933 $ 14,183 $ 24,612 |
Partners' Capital and Distrib_2
Partners' Capital and Distributions (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Partners' Capital Notes [Abstract] | |
Schedule of Capital Units | The following table details the changes in the number of our limited partner units outstanding from December 31, 2017 through September 30, 2018 : Limited partner units outstanding on December 31, 2017 228,024,556 January 2018–Settlement of employee LTIP awards 168,913 During 2018–Other (a) 1,691 Limited partner units outstanding on September 30, 2018 228,195,160 (a) Limited partner units issued to settle the equity-based retainer paid to an independent director of our general partner. |
Schedule of Distributions | Distributions we paid during 2017 and 2018 were as follows (in thousands, except per unit amounts): Payment Date Per Unit Cash Distribution Amount Total Cash Distribution to Limited Partners 02/14/2017 $ 0.8550 $ 194,961 05/15/2017 0.8725 198,951 08/14/2017 0.8900 202,942 Through 09/30/2017 2.6175 596,854 11/14/2017 0.9050 206,362 Total $ 3.5225 $ 803,216 02/14/2018 $ 0.9200 $ 209,940 05/15/2018 0.9375 213,933 08/14/2018 0.9575 218,497 Through 09/30/2018 2.8150 642,370 11/14/2018 (a) 0.9775 223,061 Total $ 3.7925 $ 865,431 (a) Our general partner’s board of directors declared this cash distribution in October 2018 to be paid on November 14, 2018 to unitholders of record at the close of business on November 7, 2018 . |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables summarize the carrying amounts, fair values and fair value measurements recorded or disclosed as of December 31, 2017 and September 30, 2018 based on the three levels established by ASC 820, Fair Value Measurements and Disclosures (in thousands): December 31, 2017 Assets (Liabilities) Fair Value Measurements using: Carrying Amount Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Energy commodity derivatives contracts $ (26,085 ) $ (26,085 ) $ (26,085 ) $ — $ — Interest rate contracts $ 12,177 $ 12,177 $ — $ 12,177 $ — Long-term receivables $ 27,676 $ 27,676 $ — $ — $ 27,676 Debt $ (4,524,492 ) $ (4,826,480 ) $ — $ (4,826,480 ) $ — September 30, 2018 Assets (Liabilities) Fair Value Measurements using: Carrying Amount Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Energy commodity derivatives contracts $ (32,244 ) $ (32,244 ) $ (32,244 ) $ — $ — Interest rate contracts $ 5,215 $ 5,215 $ — $ 5,215 $ — Long-term receivables $ 23,520 $ 23,520 $ — $ — $ 23,520 Debt $ (4,271,505 ) $ (4,314,870 ) $ — $ (4,314,870 ) $ — |
Organization, Description of _4
Organization, Description of Business and Basis of Presentation (Narrative) (Details) $ in Thousands, bbl in Millions | Jan. 01, 2019USD ($) | Sep. 30, 2018USD ($)Terminalbblmi | Mar. 31, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)Terminalbblmi | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) |
Organization and Description of Business [Line Items] | |||||||
Operating | $ 172,115 | $ 165,368 | $ 475,256 | $ 442,254 | |||
General and administrative | 47,389 | 37,202 | 147,235 | 120,876 | |||
Other expense | 1,694 | $ 549 | 10,299 | $ 3,762 | |||
Long-term pension and benefits | 125,088 | 125,088 | $ 111,305 | ||||
Accumulated other comprehensive loss | $ 118,200 | $ 118,200 | $ 137,578 | ||||
Refined Products Segment [Member] | |||||||
Organization and Description of Business [Line Items] | |||||||
Number of Pipeline Terminals | Terminal | 53 | 53 | |||||
Number of Independent Terminals | Terminal | 26 | 26 | |||||
Refined Products Segment [Member] | Refined Products Transportation Services [Member] | |||||||
Organization and Description of Business [Line Items] | |||||||
Pipeline Length | mi | 9,700 | 9,700 | |||||
Refined Products Segment [Member] | Ammonia Transportation Services [Member] | |||||||
Organization and Description of Business [Line Items] | |||||||
Pipeline Length | mi | 1,100 | 1,100 | |||||
Crude Oil Pipeline and Terminals Segment [Member] | |||||||
Organization and Description of Business [Line Items] | |||||||
Pipeline Length | mi | 2,200 | 2,200 | |||||
Storage Capacity | bbl | 33 | 33 | |||||
Contracted Storage | bbl | 21 | 21 | |||||
Marine Storage Segment [Member] | |||||||
Organization and Description of Business [Line Items] | |||||||
Number of Independent Terminals | Terminal | 5 | 5 | |||||
Storage Capacity | bbl | 26 | 26 | |||||
Error in Actuarial Assumptions [Member] | |||||||
Organization and Description of Business [Line Items] | |||||||
Net periodic benefit cost (credit) | $ 16,000 | ||||||
Operating | 5,700 | ||||||
General and administrative | 3,400 | ||||||
Other expense | 6,900 | ||||||
Long-term pension and benefits | 18,800 | ||||||
Accumulated other comprehensive loss | $ 2,800 | ||||||
Scenario, Forecast | Assets, Total [Member] | Accounting Standards Update 2016-02 [Member] | |||||||
Organization and Description of Business [Line Items] | |||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 80,000 | ||||||
Scenario, Forecast | Liabilities, Total [Member] | Accounting Standards Update 2016-02 [Member] | |||||||
Organization and Description of Business [Line Items] | |||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 80,000 |
Organization, Description of _5
Organization, Description of Business and Basis of Presentation (Changes from New Accounting Pronouncements) (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Item Effected [Line Items] | ||||
Distributions from operations of non-controlled entities | $ 147,950 | $ 97,691 | ||
Net Cash Provided by (Used in) Operating Activities | 863,781 | 813,701 | ||
Distributions from returns of investments in non-controlled entities | 1,786 | 52,738 | ||
Net Cash Provided by (Used in) Investing Activities | 101,437 | (435,276) | ||
Property, Plant and Equipment, Gross | 7,570,759 | $ 7,235,468 | ||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (1,835,824) | (1,682,633) | ||
Property, Plant and Equipment, Net | 5,734,935 | 5,552,835 | ||
Investments in non-controlled entities | 1,005,392 | 1,082,511 | ||
Deferred revenue | 121,247 | 117,795 | ||
Other noncurrent liabilities | 64,425 | 30,350 | ||
Limited partner unitholders | 2,665,620 | 2,267,231 | ||
Accounting Standards Update 2014-09 [Member] | ||||
Item Effected [Line Items] | ||||
Property, Plant and Equipment, Gross | 7,570,759 | $ 7,243,984 | ||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (1,835,824) | (1,682,958) | ||
Property, Plant and Equipment, Net | 5,734,935 | 5,561,026 | ||
Investments in non-controlled entities | 1,005,392 | 1,083,013 | ||
Deferred revenue | 121,247 | 115,894 | ||
Other noncurrent liabilities | 64,425 | 34,969 | ||
Limited partner unitholders | 2,665,620 | 2,273,206 | ||
Previously Reported [Member] | ||||
Item Effected [Line Items] | ||||
Distributions from operations of non-controlled entities | 78,562 | |||
Net Cash Provided by (Used in) Operating Activities | 794,572 | |||
Distributions from returns of investments in non-controlled entities | 71,867 | |||
Net Cash Provided by (Used in) Investing Activities | (416,147) | |||
Restatement Adjustment [Member] | Accounting Standards Update 2016-15 [Member] | ||||
Item Effected [Line Items] | ||||
Distributions from operations of non-controlled entities | 19,129 | |||
Net Cash Provided by (Used in) Operating Activities | 19,129 | |||
Distributions from returns of investments in non-controlled entities | (19,129) | |||
Net Cash Provided by (Used in) Investing Activities | $ (19,129) | |||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Item Effected [Line Items] | ||||
Property, Plant and Equipment, Gross | 7,555,758 | 7,235,468 | ||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (1,835,259) | (1,682,633) | ||
Property, Plant and Equipment, Net | 5,720,499 | 5,552,835 | ||
Investments in non-controlled entities | 1,004,890 | 1,082,511 | ||
Deferred revenue | 129,458 | 117,795 | ||
Other noncurrent liabilities | 56,567 | 30,350 | ||
Limited partner unitholders | 2,650,329 | $ 2,267,231 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Item Effected [Line Items] | ||||
Property, Plant and Equipment, Gross | 15,001 | 8,516 | ||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (565) | (325) | ||
Property, Plant and Equipment, Net | 14,436 | 8,191 | ||
Investments in non-controlled entities | 502 | 502 | ||
Deferred revenue | (8,211) | (1,901) | ||
Other noncurrent liabilities | 7,858 | 4,619 | ||
Limited partner unitholders | $ 15,291 | $ 5,975 |
Revenue from Contract with Cu_3
Revenue from Contract with Customers (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018USD ($) | Sep. 30, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | ||
Average Delivery Point of Barrels in Pipeline System | 50.00% | 50.00% |
Deferred Revenue, Revenue Recognized | $ 10.7 | $ 77 |
Revenue from Contract with Cu_4
Revenue from Contract with Customers (Schedule of Prospective Adoption) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Item Effected [Line Items] | ||||||
Revenues | $ 638,020 | $ 572,848 | $ 1,960,890 | $ 1,834,362 | ||
Depreciation and amortization | 56,228 | 49,909 | 161,726 | 146,103 | ||
Property, Plant and Equipment, Gross | 7,570,759 | 7,570,759 | $ 7,235,468 | |||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 1,835,824 | 1,835,824 | 1,682,633 | |||
Property, Plant and Equipment, Net | 5,734,935 | 5,734,935 | 5,552,835 | |||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 1,005,392 | 1,005,392 | 1,082,511 | |||
Deferred revenue | 121,247 | 121,247 | 117,795 | |||
Other noncurrent liabilities | 64,425 | 64,425 | 30,350 | |||
Limited partner unitholders | 2,665,620 | 2,665,620 | 2,267,231 | |||
Accounting Standards Update 2014-09 [Member] | ||||||
Item Effected [Line Items] | ||||||
Depreciation and amortization | 56,228 | 161,726 | ||||
Property, Plant and Equipment, Gross | 7,570,759 | 7,570,759 | $ 7,243,984 | |||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 1,835,824 | 1,835,824 | 1,682,958 | |||
Property, Plant and Equipment, Net | 5,734,935 | 5,734,935 | 5,561,026 | |||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 1,005,392 | 1,005,392 | 1,083,013 | |||
Deferred revenue | 121,247 | 121,247 | 115,894 | |||
Other noncurrent liabilities | 64,425 | 64,425 | 34,969 | |||
Limited partner unitholders | 2,665,620 | 2,665,620 | 2,273,206 | |||
Accounting Standards Update 2014-09 [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||||
Item Effected [Line Items] | ||||||
Depreciation and amortization | 56,108 | 161,486 | ||||
Property, Plant and Equipment, Gross | 7,555,758 | 7,555,758 | 7,235,468 | |||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 1,835,259 | 1,835,259 | 1,682,633 | |||
Property, Plant and Equipment, Net | 5,720,499 | 5,720,499 | 5,552,835 | |||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 1,004,890 | 1,004,890 | 1,082,511 | |||
Deferred revenue | 129,458 | 129,458 | 117,795 | |||
Other noncurrent liabilities | 56,567 | 56,567 | 30,350 | |||
Limited partner unitholders | 2,650,329 | 2,650,329 | $ 2,267,231 | |||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||||
Item Effected [Line Items] | ||||||
Depreciation and amortization | 120 | 240 | ||||
Property, Plant and Equipment, Gross | 15,001 | 15,001 | 8,516 | |||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 565 | 565 | 325 | |||
Property, Plant and Equipment, Net | 14,436 | 14,436 | 8,191 | |||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 502 | 502 | 502 | |||
Deferred revenue | (8,211) | (8,211) | (1,901) | |||
Other noncurrent liabilities | 7,858 | 7,858 | 4,619 | |||
Limited partner unitholders | 15,291 | 15,291 | $ 5,975 | |||
Service [Member] | ||||||
Item Effected [Line Items] | ||||||
Revenues | 488,775 | $ 446,935 | 1,392,960 | $ 1,272,845 | ||
Service [Member] | Accounting Standards Update 2014-09 [Member] | ||||||
Item Effected [Line Items] | ||||||
Revenues | 488,775 | 1,392,960 | ||||
Service [Member] | Accounting Standards Update 2014-09 [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||||
Item Effected [Line Items] | ||||||
Revenues | 486,801 | 1,383,404 | ||||
Service [Member] | Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||||
Item Effected [Line Items] | ||||||
Revenues | $ 1,974 | $ 9,556 |
Revenue from Contract with Cu_5
Revenue from Contract with Customers ( Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 638,020 | $ 572,848 | $ 1,960,890 | $ 1,834,362 |
Operating Leases, Income Statement, Lease Revenue | (22,956) | (65,545) | ||
Unrealized Gain (Loss) on Derivatives | 24,355 | 70,140 | ||
Affiliate management fee revenue | (4,842) | (15,138) | ||
Revenue from Contract with Customer, Including Assessed Tax | 634,577 | 1,950,347 | ||
Service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 488,775 | 446,935 | 1,392,960 | 1,272,845 |
Product [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 144,403 | 121,010 | 552,792 | 548,634 |
Product and Service, Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,842 | 4,903 | 15,138 | 12,883 |
Operating Segments [Member] | Refined Products Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 430,311 | 396,558 | 1,366,126 | 1,318,921 |
Operating Leases, Income Statement, Lease Revenue | (2,641) | (8,216) | ||
Unrealized Gain (Loss) on Derivatives | 24,253 | 64,558 | ||
Affiliate management fee revenue | (351) | (1,000) | ||
Revenue from Contract with Customer, Including Assessed Tax | 451,572 | 1,421,468 | ||
Operating Segments [Member] | Crude Oil Pipeline and Terminals Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 161,247 | 132,378 | 453,044 | 375,000 |
Operating Leases, Income Statement, Lease Revenue | (16,132) | (44,705) | ||
Unrealized Gain (Loss) on Derivatives | 102 | 5,582 | ||
Affiliate management fee revenue | (3,463) | (11,328) | ||
Revenue from Contract with Customer, Including Assessed Tax | 141,754 | 402,593 | ||
Operating Segments [Member] | Marine Storage Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 47,385 | 44,813 | 144,473 | 142,929 |
Operating Leases, Income Statement, Lease Revenue | (4,183) | (12,624) | ||
Unrealized Gain (Loss) on Derivatives | 0 | 0 | ||
Affiliate management fee revenue | (1,028) | (2,810) | ||
Revenue from Contract with Customer, Including Assessed Tax | 42,174 | 129,039 | ||
Operating Segments [Member] | Service [Member] | Refined Products Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 300,034 | 289,030 | 851,492 | 808,818 |
Operating Segments [Member] | Service [Member] | Crude Oil Pipeline and Terminals Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 145,118 | 116,305 | 409,329 | 329,813 |
Operating Segments [Member] | Service [Member] | Marine Storage Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 44,546 | 42,501 | 134,892 | 136,702 |
Operating Segments [Member] | Product [Member] | Refined Products Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 129,926 | 107,175 | 513,634 | 509,068 |
Operating Segments [Member] | Product [Member] | Crude Oil Pipeline and Terminals Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 12,666 | 12,370 | 32,387 | 34,876 |
Operating Segments [Member] | Product [Member] | Marine Storage Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,811 | 1,465 | 6,771 | 4,690 |
Operating Segments [Member] | Product and Service, Other [Member] | Refined Products Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 351 | 353 | 1,000 | 1,035 |
Operating Segments [Member] | Product and Service, Other [Member] | Crude Oil Pipeline and Terminals Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,463 | 3,703 | 11,328 | 10,311 |
Operating Segments [Member] | Product and Service, Other [Member] | Marine Storage Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,028 | 847 | 2,810 | 1,537 |
Intersegment Eliminations [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | (923) | (901) | (2,753) | (2,488) |
Operating Leases, Income Statement, Lease Revenue | 0 | 0 | ||
Unrealized Gain (Loss) on Derivatives | 0 | 0 | ||
Affiliate management fee revenue | 0 | 0 | ||
Revenue from Contract with Customer, Including Assessed Tax | (923) | (2,753) | ||
Intersegment Eliminations [Member] | Service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | (923) | (901) | (2,753) | (2,488) |
Intersegment Eliminations [Member] | Product [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Intersegment Eliminations [Member] | Product and Service, Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | $ 0 | 0 | $ 0 |
Transferred over Time [Member] | Service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 488,775 | 1,392,960 | ||
Transferred over Time [Member] | Transportation [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 288,321 | 803,697 | ||
Transferred over Time [Member] | Terminalling [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 49,357 | 140,583 | ||
Transferred over Time [Member] | Storage [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 87,198 | 261,640 | ||
Transferred over Time [Member] | Ancillary Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 40,943 | 121,495 | ||
Transferred over Time [Member] | Lease Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 22,956 | 65,545 | ||
Transferred over Time [Member] | Operating Segments [Member] | Service [Member] | Refined Products Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 300,034 | 851,492 | ||
Transferred over Time [Member] | Operating Segments [Member] | Service [Member] | Crude Oil Pipeline and Terminals Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 145,118 | 409,329 | ||
Transferred over Time [Member] | Operating Segments [Member] | Service [Member] | Marine Storage Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 44,546 | 134,892 | ||
Transferred over Time [Member] | Operating Segments [Member] | Transportation [Member] | Refined Products Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 197,235 | 548,733 | ||
Transferred over Time [Member] | Operating Segments [Member] | Transportation [Member] | Crude Oil Pipeline and Terminals Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 91,086 | 254,964 | ||
Transferred over Time [Member] | Operating Segments [Member] | Transportation [Member] | Marine Storage Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Transferred over Time [Member] | Operating Segments [Member] | Terminalling [Member] | Refined Products Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 46,213 | 136,135 | ||
Transferred over Time [Member] | Operating Segments [Member] | Terminalling [Member] | Crude Oil Pipeline and Terminals Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,528 | 2,528 | ||
Transferred over Time [Member] | Operating Segments [Member] | Terminalling [Member] | Marine Storage Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 616 | 1,920 | ||
Transferred over Time [Member] | Operating Segments [Member] | Storage [Member] | Refined Products Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 25,137 | 75,353 | ||
Transferred over Time [Member] | Operating Segments [Member] | Storage [Member] | Crude Oil Pipeline and Terminals Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 29,094 | 87,620 | ||
Transferred over Time [Member] | Operating Segments [Member] | Storage [Member] | Marine Storage Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 33,890 | 101,420 | ||
Transferred over Time [Member] | Operating Segments [Member] | Ancillary Services [Member] | Refined Products Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 28,808 | 83,055 | ||
Transferred over Time [Member] | Operating Segments [Member] | Ancillary Services [Member] | Crude Oil Pipeline and Terminals Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 6,278 | 19,512 | ||
Transferred over Time [Member] | Operating Segments [Member] | Ancillary Services [Member] | Marine Storage Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5,857 | 18,928 | ||
Transferred over Time [Member] | Operating Segments [Member] | Lease Revenue [Member] | Refined Products Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,641 | 8,216 | ||
Transferred over Time [Member] | Operating Segments [Member] | Lease Revenue [Member] | Crude Oil Pipeline and Terminals Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 16,132 | 44,705 | ||
Transferred over Time [Member] | Operating Segments [Member] | Lease Revenue [Member] | Marine Storage Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,183 | 12,624 | ||
Transferred over Time [Member] | Intersegment Eliminations [Member] | Service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | (923) | (2,753) | ||
Transferred over Time [Member] | Intersegment Eliminations [Member] | Transportation [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Transferred over Time [Member] | Intersegment Eliminations [Member] | Terminalling [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Transferred over Time [Member] | Intersegment Eliminations [Member] | Storage [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | (923) | (2,753) | ||
Transferred over Time [Member] | Intersegment Eliminations [Member] | Ancillary Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Transferred over Time [Member] | Intersegment Eliminations [Member] | Lease Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | ||
Transferred at Point in Time [Member] | Product [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 144,403 | 552,792 | ||
Transferred at Point in Time [Member] | Operating Segments [Member] | Product [Member] | Refined Products Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 129,926 | 513,634 | ||
Transferred at Point in Time [Member] | Operating Segments [Member] | Product [Member] | Crude Oil Pipeline and Terminals Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 12,666 | 32,387 | ||
Transferred at Point in Time [Member] | Operating Segments [Member] | Product [Member] | Marine Storage Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,811 | 6,771 | ||
Transferred at Point in Time [Member] | Intersegment Eliminations [Member] | Product [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 0 | $ 0 |
Revenue from Contract with Cu_6
Revenue from Contract with Customers (Assets and Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jan. 01, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Billed Contracts Receivable | $ 135,269 | $ 133,084 |
Contract with Customer, Asset, Net | 8,053 | 8,615 |
Contract with Customer, Liability | $ 119,841 | $ 106,933 |
Revenue from Contract with Cu_7
Revenue from Contract with Customers (Performance Obligations) (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Segment Reporting Information [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 3,937,993 |
Refined Products Segment [Member] | |
Segment Reporting Information [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 2,176,871 |
Crude Oil Pipeline and Terminals Segment [Member] | |
Segment Reporting Information [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 1,419,449 |
Marine Storage Segment [Member] | |
Segment Reporting Information [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 341,673 |
Minimum [Member] | Refined Products Segment [Member] | |
Segment Reporting Information [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Maximum [Member] | Refined Products Segment [Member] | |
Segment Reporting Information [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 20 years |
Revenue from Contract with Cu_8
Revenue from Contract with Customers (Performance Obligations in Next 12 Months) (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Segment Reporting Information [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 3,937,993 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01 | |
Segment Reporting Information [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 872,511 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Refined Products Segment [Member] | |
Segment Reporting Information [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 2,176,871 |
Refined Products Segment [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01 | |
Segment Reporting Information [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 395,872 |
Crude Oil Pipeline and Terminals Segment [Member] | |
Segment Reporting Information [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 1,419,449 |
Crude Oil Pipeline and Terminals Segment [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01 | |
Segment Reporting Information [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 328,844 |
Marine Storage Segment [Member] | |
Segment Reporting Information [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 341,673 |
Marine Storage Segment [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01 | |
Segment Reporting Information [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 147,795 |
Minimum [Member] | Refined Products Segment [Member] | |
Segment Reporting Information [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Minimum [Member] | Crude Oil Pipeline and Terminals Segment [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01 | |
Segment Reporting Information [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Minimum [Member] | Marine Storage Segment [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01 | |
Segment Reporting Information [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Maximum [Member] | Refined Products Segment [Member] | |
Segment Reporting Information [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 20 years |
Maximum [Member] | Crude Oil Pipeline and Terminals Segment [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01 | |
Segment Reporting Information [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 10 years |
Maximum [Member] | Marine Storage Segment [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01 | |
Segment Reporting Information [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 6 years |
Segment Disclosures (Schedule O
Segment Disclosures (Schedule Of Business Segment Reporting Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 638,020 | $ 572,848 | $ 1,960,890 | $ 1,834,362 |
Operating expenses | 172,115 | 165,368 | 475,256 | 442,254 |
Cost of product sales | 120,510 | 121,819 | 473,781 | 440,670 |
(Earnings) losses of non-controlled entities | (53,795) | (31,151) | (130,843) | (78,173) |
Operating margin | 399,190 | 316,812 | 1,142,696 | 1,029,611 |
Depreciation and amortization | 56,228 | 49,909 | 161,726 | 146,103 |
G&A expense | 47,389 | 37,202 | 147,235 | 120,876 |
Operating profit | 295,573 | 229,701 | 833,735 | 762,632 |
Operating Segments [Member] | Refined Products Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 430,311 | 396,558 | 1,366,126 | 1,318,921 |
Operating expenses | 112,279 | 118,665 | 319,670 | 312,911 |
Cost of product sales | 106,756 | 103,391 | 434,632 | 396,292 |
(Earnings) losses of non-controlled entities | (3,393) | 700 | (5,614) | 167 |
Operating margin | 214,669 | 173,802 | 617,438 | 609,551 |
Depreciation and amortization | 30,440 | 27,469 | 89,855 | 81,440 |
G&A expense | 28,751 | 23,808 | 90,825 | 75,429 |
Operating profit | 155,478 | 122,525 | 436,758 | 452,682 |
Operating Segments [Member] | Crude Oil Pipeline and Terminals Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 161,247 | 132,378 | 453,044 | 375,000 |
Operating expenses | 45,195 | 31,163 | 109,963 | 89,991 |
Cost of product sales | 11,590 | 16,630 | 32,401 | 37,814 |
(Earnings) losses of non-controlled entities | (49,420) | (31,244) | (122,879) | (76,388) |
Operating margin | 153,882 | 115,829 | 433,559 | 323,583 |
Depreciation and amortization | 15,145 | 12,584 | 40,648 | 35,947 |
G&A expense | 12,766 | 9,266 | 38,127 | 30,376 |
Operating profit | 125,971 | 93,979 | 354,784 | 257,260 |
Operating Segments [Member] | Marine Storage Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 47,385 | 44,813 | 144,473 | 142,929 |
Operating expenses | 17,178 | 17,723 | 52,835 | 45,753 |
Cost of product sales | 2,164 | 1,798 | 6,748 | 6,564 |
(Earnings) losses of non-controlled entities | (982) | (607) | (2,350) | (1,952) |
Operating margin | 29,025 | 25,899 | 87,240 | 92,564 |
Depreciation and amortization | 9,029 | 8,574 | 26,764 | 24,803 |
G&A expense | 5,872 | 4,128 | 18,283 | 15,071 |
Operating profit | 14,124 | 13,197 | 42,193 | 52,690 |
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (923) | (901) | (2,753) | (2,488) |
Operating expenses | (2,537) | (2,183) | (7,212) | (6,401) |
Cost of product sales | 0 | 0 | 0 | 0 |
(Earnings) losses of non-controlled entities | 0 | 0 | 0 | 0 |
Operating margin | 1,614 | 1,282 | 4,459 | 3,913 |
Depreciation and amortization | 1,614 | 1,282 | 4,459 | 3,913 |
G&A expense | 0 | 0 | 0 | 0 |
Operating profit | 0 | 0 | 0 | 0 |
Service [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 488,775 | 446,935 | 1,392,960 | 1,272,845 |
Service [Member] | Operating Segments [Member] | Refined Products Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 300,034 | 289,030 | 851,492 | 808,818 |
Service [Member] | Operating Segments [Member] | Crude Oil Pipeline and Terminals Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 145,118 | 116,305 | 409,329 | 329,813 |
Service [Member] | Operating Segments [Member] | Marine Storage Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 44,546 | 42,501 | 134,892 | 136,702 |
Service [Member] | Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (923) | (901) | (2,753) | (2,488) |
Product [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 144,403 | 121,010 | 552,792 | 548,634 |
Product [Member] | Operating Segments [Member] | Refined Products Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 129,926 | 107,175 | 513,634 | 509,068 |
Product [Member] | Operating Segments [Member] | Crude Oil Pipeline and Terminals Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 12,666 | 12,370 | 32,387 | 34,876 |
Product [Member] | Operating Segments [Member] | Marine Storage Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,811 | 1,465 | 6,771 | 4,690 |
Product [Member] | Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Product and Service, Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 4,842 | 4,903 | 15,138 | 12,883 |
Product and Service, Other [Member] | Operating Segments [Member] | Refined Products Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 351 | 353 | 1,000 | 1,035 |
Product and Service, Other [Member] | Operating Segments [Member] | Crude Oil Pipeline and Terminals Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 3,463 | 3,703 | 11,328 | 10,311 |
Product and Service, Other [Member] | Operating Segments [Member] | Marine Storage Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,028 | 847 | 2,810 | 1,537 |
Product and Service, Other [Member] | Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Investments in Non-Controlled_3
Investments in Non-Controlled Entities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||||
Proceeds from sale and disposition of assets | $ 579,448 | $ 44,303 | |||
Gain on sale of asset | $ 353,797 | $ 18,505 | 353,797 | 18,505 | |
Revenues | 638,020 | 572,848 | 1,960,890 | 1,834,362 | |
Operating | 172,115 | 165,368 | 475,256 | 442,254 | |
Cost of product sales | 120,510 | 121,819 | 473,781 | 440,670 | |
Trade accounts receivable | 137,618 | 137,618 | $ 138,779 | ||
Other accounts receivable | 24,025 | 24,025 | 14,561 | ||
Change in Equity Method Investments [Roll Forward] | |||||
Investments at December 31, 2017 | 1,082,511 | ||||
Additional investment | 147,048 | ||||
Sale of ownership interest in BridgeTex | (205,776) | ||||
Other adjustments | 502 | ||||
Proportionate share of earnings | 132,647 | ||||
Amortization of excess investment and capitalized interest | (1,804) | ||||
Earnings of non-controlled entities | 53,795 | 31,151 | 130,843 | 78,173 | |
Distributions from operations of non-controlled entities | 147,950 | 97,691 | |||
Distributions from returns of investments in non-controlled entities | 1,786 | 52,738 | |||
Investments at September 30, 2018 | 1,005,392 | 1,005,392 | |||
Service [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Revenues | 488,775 | 446,935 | 1,392,960 | 1,272,845 | |
Product [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Revenues | 144,403 | 121,010 | 552,792 | 548,634 | |
Equity Method Investee [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Related Party Transaction, Other Revenues from Transactions with Related Party | $ 900 | 700 | $ 2,600 | 3,100 | |
BridgeTex [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in equity method investment | 30.00% | 30.00% | |||
Equity Method Investment Sold Percentage | 20.00% | 20.00% | |||
Proceeds from sale and disposition of assets | $ 578,500 | ||||
Gain on sale of asset | 353,800 | ||||
BridgeTex [Member] | Equity Method Investee [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Trade accounts receivable | $ 200 | 200 | |||
Other accounts receivable | 100 | 100 | |||
BridgeTex [Member] | Equity Method Investee [Member] | Service [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Revenues | $ 9,900 | 9,100 | $ 29,500 | 27,000 | |
Double Eagle Pipeline Llc [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in equity method investment | 50.00% | 50.00% | |||
Double Eagle Pipeline Llc [Member] | Equity Method Investee [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Trade accounts receivable | $ 300 | $ 300 | 500 | ||
Double Eagle Pipeline Llc [Member] | Equity Method Investee [Member] | Service [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Revenues | $ 1,000 | 1,300 | $ 3,900 | 3,100 | |
HoustonLink Pipeline Company LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in equity method investment | 50.00% | 50.00% | |||
HoustonLink Pipeline Company LLC [Member] | Equity Method Investee [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Accounts Payable, Other, Current | 100 | ||||
MVP Terminalling, LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in equity method investment | 50.00% | 50.00% | |||
MVP Terminalling, LLC [Member] | Equity Method Investee [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Other accounts receivable | $ 1,200 | $ 1,200 | 400 | ||
Powder Springs Logistics, LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in equity method investment | 50.00% | 50.00% | |||
Powder Springs Logistics, LLC [Member] | Equity Method Investee [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Cost of product sales | $ 0 | 0 | $ 400 | 0 | |
Other accounts receivable | 2,100 | 2,100 | 900 | ||
Powder Springs Logistics, LLC [Member] | Equity Method Investee [Member] | Product [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Revenues | $ 0 | 0 | $ 4,900 | 0 | |
Saddlehorn Pipeline Company [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in equity method investment | 40.00% | 40.00% | |||
Saddlehorn Pipeline Company [Member] | Equity Method Investee [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Other accounts receivable | $ 200 | $ 200 | 100 | ||
Saddlehorn Pipeline Company [Member] | Equity Method Investee [Member] | Service [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Revenues | $ 500 | 500 | $ 1,600 | 1,600 | |
Seabrook Logistics, LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in equity method investment | 50.00% | 50.00% | |||
Seabrook Logistics, LLC [Member] | Equity Method Investee [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Operating | $ 4,000 | $ 0 | $ 4,000 | $ 0 | |
Other accounts receivable | $ 200 | ||||
Accounts Payable, Other, Current | $ 2,100 | $ 2,100 | |||
Texas Frontera Llc [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in equity method investment | 50.00% | 50.00% |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Refined products | $ 60,390 | $ 73,845 |
Liquefied petroleum gases | 53,080 | 45,553 |
Transmix | 43,588 | 33,319 |
Crude oil | 16,129 | 23,763 |
Additives | 6,179 | 5,865 |
Total inventory | $ 179,366 | $ 182,345 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($)pension_plan | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)pension_plan | Sep. 30, 2017USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Contribution Plan, Cost | $ 2.7 | $ 2 | $ 8.8 | $ 7.4 |
Number Of Company Sponsored Union Pension Plans | pension_plan | 2 | 2 | ||
Pension Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 31.7 | $ 31.7 | ||
Other Postretirement Benefits Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 0.6 | $ 0.6 |
Schedule Of Consolidated Net Pe
Schedule Of Consolidated Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Pension Plan [Member] | ||||
Components of net periodic benefit costs: | ||||
Service cost | $ 6,424 | $ 5,125 | $ 28,393 | $ 15,373 |
Interest cost | 2,816 | 2,466 | 12,054 | 7,398 |
Expected return on plan assets | (3,055) | (2,566) | (9,057) | (7,699) |
Amortization of prior service credit | (45) | (45) | (136) | (136) |
Amortization of actuarial loss | 1,659 | 1,406 | 8,182 | 4,217 |
Settlement cost | 0 | 289 | 0 | 2,015 |
Net periodic benefit cost | 7,799 | 6,675 | 39,436 | 21,168 |
Other Postretirement Benefits Plan [Member] | ||||
Components of net periodic benefit costs: | ||||
Service cost | 58 | 51 | 174 | 182 |
Interest cost | 104 | 111 | 312 | 356 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service credit | 0 | 0 | 0 | 0 |
Amortization of actuarial loss | 147 | 162 | 441 | 562 |
Settlement cost | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $ 309 | $ 324 | $ 927 | $ 1,100 |
Employee Benefit Plans Schedule
Employee Benefit Plans Schedule of Amounts Recognized in Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Changes in AOCL [Roll Forward] | ||||
Accumulated other comprehensive loss (Beginning Bal) | $ (137,578) | |||
Net actuarial gain (loss) | $ 0 | $ 0 | (5,291) | $ 0 |
Amortization of prior service credit | (45) | (45) | (136) | (136) |
Amortization of actuarial loss | 1,806 | 1,568 | 8,623 | 4,779 |
Settlement cost | 0 | 289 | 0 | 2,015 |
Accumulated other comprehensive loss (Ending Bal) | (118,200) | (118,200) | ||
Pension Plan [Member] | ||||
Changes in AOCL [Roll Forward] | ||||
Accumulated other comprehensive loss (Beginning Bal) | (96,352) | (54,138) | (97,226) | (58,584) |
Net actuarial gain (loss) | (5,558) | 0 | ||
Amortization of prior service credit | (45) | (45) | (136) | (136) |
Amortization of actuarial loss | 1,659 | 1,406 | 8,182 | 4,217 |
Settlement cost | 0 | 289 | 0 | 2,015 |
Accumulated other comprehensive loss (Ending Bal) | (94,738) | (52,488) | (94,738) | (52,488) |
Other Postretirement Benefits Plan [Member] | ||||
Changes in AOCL [Roll Forward] | ||||
Accumulated other comprehensive loss (Beginning Bal) | (6,036) | (7,481) | (6,597) | (7,881) |
Net actuarial gain (loss) | 267 | 0 | ||
Amortization of prior service credit | 0 | 0 | 0 | 0 |
Amortization of actuarial loss | 147 | 162 | 441 | 562 |
Settlement cost | 0 | 0 | 0 | 0 |
Accumulated other comprehensive loss (Ending Bal) | $ (5,889) | $ (7,319) | $ (5,889) | $ (7,319) |
Debt (Consolidated Debt) (Detai
Debt (Consolidated Debt) (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 4,300,000,000 | $ 4,550,000,000 |
Unamortized debt issuance costs | (27,683,000) | (29,472,000) |
Net unamortized premium (discount) | (2,127,000) | 215,000 |
Net unamortized amount of gains from historical fair value hedges | 1,315,000 | 3,749,000 |
Long-term Debt | 4,271,505,000 | 4,524,492,000 |
Current portion of long-term debt, net | 552,898,000 | 250,974,000 |
Long-term debt, net | 3,718,607,000 | 4,273,518,000 |
6.40% Notes Due 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 0 | 250,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 6.40% | |
6.55% Notes Due 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 550,000,000 | 550,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 6.55% | |
4.25% Notes Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 550,000,000 | 550,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | |
3.20% Notes Due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 250,000,000 | 250,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 3.20% | |
5.00% Notes Due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 650,000,000 | 650,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |
6.40% Notes Due 2037 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 250,000,000 | 250,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 6.40% | |
4.20% Notes Due 2042 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 250,000,000 | 250,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 4.20% | |
5.15% Notes Due 2043 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 550,000,000 | 550,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.15% | |
4.20% Notes Due 2045 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 250,000,000 | 250,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 4.20% | |
4.25% Notes Due 2046 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 500,000,000 | 500,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | |
4.20% Notes Due 2047 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 500,000,000 | 500,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 4.20% | |
Commercial Paper [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 0 | $ 0 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Long term debt | $ 4,271,505,000 | $ 4,524,492,000 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000,000 | |
Unused commitment fee | 0.125% | |
Long term debt | $ 0 | 0 |
Obligation for letters of credit | $ 6,300,000 | $ 6,300,000 |
Revolving Credit Facility [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |
Unused commitment fee | 0.10% | |
Revolving Credit Facility [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.625% | |
Unused commitment fee | 0.275% | |
Commercial Paper [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000,000 | |
Long-term Debt, Weighted Average Interest Rate, over Time | 2.30% | 1.30% |
Commercial Paper [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Term | 397 days |
Derivative Financial Instrume_3
Derivative Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Derivative [Line Items] | ||||
Net receipt on financial derivatives | $ (20,925) | $ 0 | ||
Energy commodity derivatives deposits | 47,354 | $ 36,690 | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | (2,300) | |||
Commodity Contract [Member] | ||||
Derivative [Line Items] | ||||
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net | $ 700 | $ 2,400 | ||
Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | 200,000 | |||
Cash Flow Hedging [Member] | Interest Rate Contract [Member] | Other Current Assets [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Fair Value, Net | 5,200 | |||
Future Debt Issuance 2018 [Member] | Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | 100,000 | |||
Net receipt on financial derivatives | $ 20,900 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Schedule Of NYMEX Contracts And Butane Price Swap Purchase Agreements) (Details) bbl in Millions | Sep. 30, 2018bbl |
Economic Hedges [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 5.4 |
Economic Hedges Futures [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 1.7 |
Derivative Financial Instrume_5
Derivative Financial Instruments (Schedule of Derivative Offset Amounts) (Details) - Exchange Traded [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | |||
Derivative Liability, Fair Value, Gross Liability | $ 55,087 | $ 38,936 | |
Derivative Asset, Fair Value, Gross Asset | 22,843 | 12,851 | |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | [1] | (32,244) | (26,085) |
Derivative, Collateral, Right to Reclaim Cash | 47,354 | 36,690 | |
Amount After Offset | [2] | 15,110 | 10,605 |
Other Current Liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | $ (32,244) | (25,694) | |
Other Noncurrent Liabilities [Member] | |||
Derivative [Line Items] | |||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | $ (391) | ||
[1] | Net amount includes energy commodity derivative contracts classified as current liabilities of $25,694 and noncurrent liabilities of $391 at December 31, 2017. Net amount includes energy commodity derivative contracts classified as current liabilities of $32,244 at September 30, 2018. | ||
[2] | Amount represents the maximum loss we would incur if all of our counterparties failed to perform on their derivative contracts. |
Derivative Financial Instrume_6
Derivative Financial Instruments (Derivative Gains Included In Accumulated Other Comprehensive Loss (AOCL) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Derivative Gains Included in AOCI [Roll Forward] | ||||
Beginning balance | $ (25,165) | $ (34,804) | $ (33,755) | $ (34,776) |
Net gain (loss) on cash flow hedges | 6,852 | (228) | 13,963 | (1,735) |
Reclassification of net loss (gain) on cash flow hedges to income | 740 | 740 | 2,219 | 2,219 |
Ending balance | $ (17,573) | $ (34,292) | $ (17,573) | $ (34,292) |
Derivative Financial Instrume_7
Derivative Financial Instruments (Derivatives And Hedging-Cash Flow Hedges) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) on cash flow hedges | $ 6,852 | $ (228) | $ 13,963 | $ (1,735) |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest Rate Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gain (loss) on cash flow hedges | 6,852 | (228) | 13,963 | (1,735) |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest Rate Contract [Member] | Interest Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | $ (740) | $ (740) | $ (2,219) | $ (2,219) |
Derivative Financial Instrume_8
Derivative Financial Instruments (Derivatives and Hedging-Fair Value Hedges) (Details) - Commodity Contract [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Increase (Decrease) in Fair Value of Price Risk Fair Value Hedging Instruments | $ 122 | $ (1,661) | $ (427) | $ 5,107 |
Increase (Decrease) in Fair Value of Hedged Item in Price Risk Fair Value Hedge | $ (122) | $ 1,661 | $ 427 | $ (5,107) |
Derivative Financial Instrume_9
Derivative Financial Instruments (Derivatives And Hedging-Overall-Subsequent Measurement) (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ (12,689) | $ (27,013) | $ (54,082) | $ 15,934 |
Commodity Contract [Member] | Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | (24,354) | (47,336) | (70,140) | (4,442) |
Commodity Contract [Member] | Operating Expenses [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 663 | 0 | 663 |
Commodity Contract [Member] | Cost of Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 11,665 | $ 19,660 | $ 16,058 | $ 19,713 |
Derivative Financial Instrum_10
Derivative Financial Instruments (Derivatives and Hedging - Designated) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 5,215 | $ 12,177 |
Derivative Liability, Fair Value, Gross Liability | 189 | 173 |
Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 189 | 173 |
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 5,215 | 12,177 |
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 12,851 | |
Derivative Liability, Fair Value, Gross Liability | 38,763 | |
Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 22,843 | 12,605 |
Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 54,898 | 38,126 |
Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Other Noncurrent Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 246 | |
Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Other Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $ 637 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Loss Contingencies [Line Items] | |||||
Liabilities recognized for estimated environmental costs | $ 23.6 | $ 23.6 | $ 19.3 | ||
Environmental expenses | 5.5 | $ 3 | 10.8 | $ 7.5 | |
Receivables from insurance carriers related to environmental matters | 6.7 | 6.7 | 7.2 | ||
Accounts Receivable [Member] | |||||
Loss Contingencies [Line Items] | |||||
Receivables from insurance carriers related to environmental matters | 0.7 | 0.7 | 0.5 | ||
Other Noncurrent Assets [Member] | |||||
Loss Contingencies [Line Items] | |||||
Receivables from insurance carriers related to environmental matters | $ 6 | $ 6 | $ 6.7 | ||
BridgeTex [Member] | |||||
Loss Contingencies [Line Items] | |||||
Interest in equity method investment | 30.00% | 30.00% | |||
BridgeTex [Member] | Indemnification Agreement [Member] | Equity Method Investee [Member] | |||||
Loss Contingencies [Line Items] | |||||
Guarantees, Fair Value Disclosure | $ 16 | $ 16 | |||
Powder Springs Logistics, LLC [Member] | |||||
Loss Contingencies [Line Items] | |||||
Interest in equity method investment | 50.00% | 50.00% | |||
Powder Springs Logistics, LLC [Member] | Guarantee of Indebtedness of Others [Member] | Equity Method Investee [Member] | |||||
Loss Contingencies [Line Items] | |||||
Interest in equity method investment | 50.00% | 50.00% | |||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 25 | $ 25 | |||
Guarantees, Fair Value Disclosure | $ 0.4 | $ 0.4 |
Long-Term Incentive Plan (Narra
Long-Term Incentive Plan (Narrative) (Details) - shares | Feb. 01, 2018 | Sep. 30, 2018 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Limited partners' capital account, units authorized for issuance (in shares) | 11,900,000 | |
Limited partner unitholders, units remaining available (in shares) | 2,100,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 294,054 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |
Long-Term Incentive Plan (Equit
Long-Term Incentive Plan (Equity-Based Incentive Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||||
Allocation of LTIP expense on consolidated statements of income | $ 7,933 | $ 3,466 | $ 24,612 | $ 14,183 |
G&A Expense [Member] | ||||
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||||
Allocation of LTIP expense on consolidated statements of income | 7,867 | 3,430 | 24,412 | 14,062 |
Operating Expenses [Member] | ||||
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||||
Allocation of LTIP expense on consolidated statements of income | 66 | 36 | 200 | 121 |
Performance Based Awards [Member] | ||||
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||||
Allocation of LTIP expense on consolidated statements of income | 7,087 | 2,728 | 22,176 | 12,119 |
Time-Based Awards [Member] | ||||
Share-based Compensation Arrangements by Share-based Payment Award [Line Items] | ||||
Allocation of LTIP expense on consolidated statements of income | $ 846 | $ 738 | $ 2,436 | $ 2,064 |
Partners' Capital and Distrib_3
Partners' Capital and Distributions (Narrative) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Partners' Capital [Abstract] | |
Amount Authorized Under Equity Distribution Agreement | $ 750 |
Partners' Capital and Distrib_4
Partners' Capital and Distributions (Schedule of Capital Units) (Details) | 9 Months Ended |
Sep. 30, 2018shares | |
Increase (Decrease) in Partners' Capital [Roll Forward] | |
Limited partner units outstanding on January 1, 2018 (in shares) | 228,024,556 |
Limited partner units outstanding on September 30, 2018 (in shares) | 228,195,160 |
Management [Member] | |
Increase (Decrease) in Partners' Capital [Roll Forward] | |
During 2018–Other (in shares) | 168,913 |
Director [Member] | |
Increase (Decrease) in Partners' Capital [Roll Forward] | |
During 2018–Other (in shares) | 1,691 |
Partners' Capital and Distrib_5
Partners' Capital and Distributions (Schedule Of Distributions) (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 14, 2018 | Aug. 14, 2018 | May 15, 2018 | Feb. 14, 2018 | Nov. 14, 2017 | Aug. 14, 2017 | May 15, 2017 | Feb. 14, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Distribution Made to Limited Partner [Line Items] | ||||||||||||
Cash distribution per unit (in dollars per share) | $ 0.9575 | $ 0.9375 | $ 0.9200 | $ 0.9050 | $ 0.8900 | $ 0.8725 | $ 0.855 | $ 2.815 | $ 2.6175 | $ 3.5225 | ||
Total Cash Distribution to Limited Partners | $ 218,497 | $ 213,933 | $ 209,940 | $ 206,362 | $ 202,942 | $ 198,951 | $ 194,961 | $ 642,370 | $ 596,854 | $ 803,216 | ||
Scenario, Forecast | ||||||||||||
Distribution Made to Limited Partner [Line Items] | ||||||||||||
Cash distribution per unit (in dollars per share) | $ 0.9775 | $ 3.7925 | ||||||||||
Total Cash Distribution to Limited Partners | $ 223,061 | $ 865,431 |
Fair Value (Schedule Of Carryin
Fair Value (Schedule Of Carrying Amounts And Fair Values Of Financial Assets/Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Inputs, Level 1 [Member] | Commodity Contract [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Liability | $ (32,244) | $ (26,085) |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | (4,314,870) | (4,826,480) |
Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Contract [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 5,215 | 12,177 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivables | 23,520 | 27,676 |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivables | 23,520 | 27,676 |
Debt | (4,271,505) | (4,524,492) |
Reported Value Measurement [Member] | Commodity Contract [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Liability | (32,244) | (26,085) |
Reported Value Measurement [Member] | Interest Rate Contract [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | 5,215 | 12,177 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term receivables | 23,520 | 27,676 |
Debt | (4,314,870) | (4,826,480) |
Estimate of Fair Value Measurement [Member] | Commodity Contract [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Liability | (32,244) | (26,085) |
Estimate of Fair Value Measurement [Member] | Interest Rate Contract [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative Asset | $ 5,215 | $ 12,177 |
Related Party Transactions (Det
Related Party Transactions (Details) - Director [Member] - Methvin Company [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Other Revenues from Transactions with Related Party | $ 6 | $ 4.1 | $ 14.4 | $ 12.5 | |
Accounts Receivable, Related Parties, Current | $ 3 | $ 3 | $ 1.6 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 14, 2018 | Aug. 14, 2018 | May 15, 2018 | Feb. 14, 2018 | Nov. 14, 2017 | Aug. 14, 2017 | May 15, 2017 | Feb. 14, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Subsequent Event [Line Items] | ||||||||||||
Cash distribution per unit (in dollars per share) | $ 0.9575 | $ 0.9375 | $ 0.9200 | $ 0.9050 | $ 0.8900 | $ 0.8725 | $ 0.855 | $ 2.815 | $ 2.6175 | $ 3.5225 | ||
Total cash distributions | $ 218,497 | $ 213,933 | $ 209,940 | $ 206,362 | $ 202,942 | $ 198,951 | $ 194,961 | $ 642,370 | $ 596,854 | $ 803,216 | ||
Scenario, Forecast | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Cash distribution per unit (in dollars per share) | $ 0.9775 | $ 3.7925 | ||||||||||
Total cash distributions | $ 223,061 | $ 865,431 |