Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 16, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 1-16335 | ||
Entity Registrant Name | Magellan Midstream Partners, L.P. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 73-1599053 | ||
Entity Address, Address Line One | One Williams Center | ||
Entity Address, Address Line Two | P.O. Box 22186 | ||
Entity Address, City or Town | Tulsa | ||
Entity Address, State or Province | OK | ||
Entity Address, Postal Zip Code | 74121-2186 | ||
City Area Code | 918 | ||
Local Phone Number | 574-7000 | ||
Title of 12(b) Security | Common Units | ||
Trading Symbol | MMP | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 10,802,833,233 | ||
Entity Common Stock, Shares Outstanding (in shares) | 212,393,262 | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement prepared for the solicitation of proxies in connection with the 2022 Annual Meeting of Limited Partners are to be incorporated by reference in Part III of this Form 10-K. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001126975 | ||
Current Fiscal Year End Date | --12-31 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Firm ID | 42 |
Auditor Location | Tulsa, Oklahoma |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Total revenue | $ 2,733.1 | $ 2,322 | $ 2,600.9 |
Costs and expenses: | |||
Operating | 569.7 | 587.8 | 616.4 |
Cost of product sales | 780 | 468.2 | 560.9 |
Depreciation, amortization and impairment | 227.9 | 243.1 | 230.7 |
General and administrative | 206.3 | 171.2 | 194.2 |
Total costs and expenses | 1,783.9 | 1,470.3 | 1,602.2 |
Other operating income (expense) | 2.8 | 0.1 | 3 |
Earnings of non-controlled entities | 154.4 | 153.3 | 169 |
Operating profit | 1,106.4 | 1,005.1 | 1,170.7 |
Interest expense | 228.1 | 234.1 | 221.1 |
Interest capitalized | (1.7) | (11.3) | (19.3) |
Interest income | (0.5) | (1) | (3.3) |
Gain on disposition of assets | (75) | (12.9) | (29) |
Other (income) expense | 20.9 | 5.2 | 11.8 |
Income from continuing operations before provision for income taxes | 934.6 | 791 | 989.4 |
Provision for income taxes | 2.3 | 2.9 | 1.4 |
Income from continuing operations | 932.3 | 788.1 | 988 |
Income from discontinued operations | 49.7 | 28.9 | 32.8 |
Net income | $ 982 | $ 817 | $ 1,020.8 |
Earnings per common unit - Basic | |||
Continuing operations (in dollars per share) | $ 4.24 | $ 3.49 | $ 4.32 |
Discontinued operations (in dollars per share) | 0.23 | 0.13 | 0.14 |
Net income per common unit (in dollars per share) | 4.47 | 3.62 | 4.46 |
Earnings per common unit - Diluted | |||
Continuing operations (in dollars per share) | 4.24 | 3.49 | 4.32 |
Discontinued operations (in dollars per share) | 0.23 | 0.13 | 0.14 |
Net income per common unit (in dollars per share) | $ 4.47 | $ 3.62 | $ 4.46 |
Weighted average number of common units outstanding used for basic net income per unit calculation (in shares) | 219.6 | 225.5 | 228.7 |
Weighted average number of common units outstanding used for diluted net income per unit calculation (in shares) | 219.8 | 225.5 | 228.8 |
Transportation and terminals revenue | |||
Total revenue | $ 1,798.9 | $ 1,743.3 | $ 1,913.9 |
Product sales revenue | |||
Total revenue | 913 | 557.5 | 665.8 |
Affiliate management fee revenue | |||
Total revenue | $ 21.2 | $ 21.2 | $ 21.2 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 982 | $ 817 | $ 1,020.8 |
Derivative activity: | |||
Net loss on cash flow hedges | 0 | (9.5) | (25.2) |
Reclassification of net loss on cash flow hedges to income | 3.5 | 3.5 | 2.7 |
Changes in employee benefit plan assets and benefit obligations recognized in other comprehensive income: | |||
Net actuarial gain (loss) | 16.3 | (23.5) | (27.3) |
Curtailment gain | 0 | 1.7 | 0 |
Recognition of prior service credit amortization in income | (0.2) | (0.2) | (0.2) |
Recognition of actuarial loss amortization in income | 6 | 5.9 | 5.8 |
Recognition of settlement cost in income | 2.6 | 1 | 2.6 |
Total other comprehensive income (loss) | 28.2 | (21.1) | (41.6) |
Comprehensive income | $ 1,010.2 | $ 795.9 | $ 979.2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 2 | $ 13 |
Trade accounts receivable | 135.2 | 103.6 |
Other accounts receivable | 34.6 | 37.1 |
Inventory | 281.1 | 158.2 |
Commodity derivatives contracts, net | 1.4 | 0 |
Commodity derivatives deposits | 46.3 | 34.2 |
Assets held for sale | 299.5 | 15.1 |
Other current assets | 43.1 | 43.9 |
Total current assets | 843.2 | 405.1 |
Property, plant and equipment | 8,045.9 | 7,943.8 |
Less: accumulated depreciation | 2,141.2 | 1,956.9 |
Net property, plant and equipment | 5,904.7 | 5,986.9 |
Investments in non-controlled entities | 980.8 | 1,213.9 |
Right-of-use asset, operating leases | 174.2 | 166.1 |
Long-term receivables | 10.1 | 22.8 |
Goodwill | 50.1 | 50.1 |
Other intangibles (less accumulated amortization of $9.2 and $11.9 at December 31, 2020 and 2021, respectively) | 43.2 | 44.9 |
Restricted cash | 7 | 9.4 |
Noncurrent assets held for sale | 0 | 277.6 |
Other noncurrent assets | 16.7 | 20.2 |
Total assets | 8,030 | 8,197 |
Current liabilities: | ||
Accounts payable | 109.5 | 98 |
Accrued payroll and benefits | 74.9 | 52.1 |
Accrued interest payable | 59 | 59 |
Accrued taxes other than income | 76.5 | 67.7 |
Deferred revenue | 92.5 | 98.6 |
Accrued product liabilities | 153.5 | 75.2 |
Commodity derivatives contracts, net | 18.6 | 21.6 |
Current portion of operating lease liability | 25.8 | 27.5 |
Liabilities held for sale | 15.8 | 8.4 |
Other current liabilities | 53.5 | 50.5 |
Total current liabilities | 679.6 | 558.6 |
Long-term operating lease liability | 147.3 | 137.5 |
Long-term debt, net | 5,088.8 | 4,978.7 |
Long-term pension and benefits | 145 | 163.8 |
Long-term liabilities held for sale | 0 | 1.5 |
Other noncurrent liabilities | 69.5 | 53.1 |
Commitments and contingencies | ||
Partners’ capital: | ||
Common unitholders (223.1 units and 212.4 units outstanding at December 31, 2020 and 2021, respectively) | 2,054.8 | 2,487 |
Accumulated other comprehensive loss | (155) | (183.2) |
Total partners’ capital | 1,899.8 | 2,303.8 |
Total liabilities and partners’ capital | $ 8,030 | $ 8,197 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Other intangibles, accumulated amortization | $ 11.9 | $ 9.2 |
Common unitholders, units outstanding (in shares) | 212,387,990 | 223,119,811 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Activities: | |||
Net income | $ 982 | $ 817 | $ 1,020.8 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Income from discontinued operations | (49.7) | (28.9) | (32.8) |
Depreciation, amortization and impairment expense | 227.9 | 243.1 | 230.7 |
Gain on disposition of assets | (75) | (12.9) | (29) |
Earnings of non-controlled entities | (154.4) | (153.3) | (169) |
Distributions from operations of non-controlled entities | 193.3 | 207.6 | 203.6 |
Equity-based incentive compensation expense | 21.8 | 12 | 24 |
Settlement cost, amortization of prior service credit and actuarial loss | 8.4 | 6.7 | 8.2 |
Debt extinguishment costs | 0 | 12.9 | 8.3 |
Changes in operating assets and liabilities (Note 9) | (9.7) | (37.1) | 2.1 |
Net cash provided by operating activities of continuing operations | 1,144.6 | 1,067.1 | 1,266.9 |
Net cash provided by operating activities of discontinued operations | 51.6 | 40.4 | 53.2 |
Net cash provided by operating activities | 1,196.2 | 1,107.5 | 1,320.1 |
Investing Activities: | |||
Additions to property, plant and equipment, net | (148.6) | (424.1) | (923.2) |
Proceeds from disposition of assets | 275.1 | 334.8 | 65.4 |
Investments in non-controlled entities | (5.6) | (95.1) | (212.4) |
Distributions from returns of investments in non-controlled entities | 0 | 0.5 | 8.5 |
Deposits received from undivided joint interest third party | 0 | 0 | 75.3 |
Net cash provided (used) by investing activities of continuing operations | 120.9 | (183.9) | (986.4) |
Net cash used by investing activities of discontinued operations | (2.8) | (15.5) | (19.8) |
Net cash provided (used) by investing activities | 118.1 | (199.4) | (1,006.2) |
Financing Activities: | |||
Distributions paid | (906.4) | (927.1) | (921.6) |
Repurchase of common units | (523.1) | (276.9) | 0 |
Net commercial paper borrowings | 108 | 0 | 0 |
Borrowings under long-term notes | 0 | 828.4 | 996.4 |
Payments on notes | 0 | (550) | (550) |
Debt placement costs | 0 | (7.6) | (12) |
Debt extinguishment costs | 0 | (12.9) | (8.3) |
Net payment on financial derivatives | 0 | (9.5) | (33.3) |
Payments associated with settlement of equity-based incentive compensation | (6.2) | (14.7) | (9.8) |
Net cash used by financing activities | (1,327.7) | (970.3) | (538.6) |
Change in cash, cash equivalents and restricted cash | (13.4) | (62.2) | (224.7) |
Cash, cash equivalents and restricted cash at beginning of period | 22.4 | 84.6 | 309.3 |
Cash, cash equivalents and restricted cash at end of period | 9 | 22.4 | 84.6 |
Supplemental non-cash investing and financing activities: | |||
Additions to property, plant and equipment | (140.8) | (344.4) | (959.8) |
Changes in current liabilities related to capital expenditures | (7.8) | (79.7) | 36.6 |
Additions to property, plant and equipment, net | $ (148.6) | $ (424.1) | $ (923.2) |
Consolidated Statement of Partn
Consolidated Statement of Partners' Capital - USD ($) $ in Millions | Total | Common Unitholders | Accumulated Other Comprehensive Loss |
Beginning balance at Dec. 31, 2018 | $ 2,643.4 | $ 2,763.9 | $ (120.5) |
Comprehensive income: | |||
Net income | 1,020.8 | 1,020.8 | |
Total other comprehensive income (loss) | (41.6) | (41.6) | |
Comprehensive income | 979.2 | 1,020.8 | (41.6) |
Distributions | (921.6) | (921.6) | |
Equity-based incentive compensation expense | 24 | 24 | |
Issuance of common units in settlement of equity-based incentive plan awards | 0.5 | 0.5 | |
Payments associated with settlement of equity-based incentive compensation | (9.8) | (9.8) | |
Other | (0.7) | (0.7) | |
Ending balance at Dec. 31, 2019 | 2,715 | 2,877.1 | (162.1) |
Comprehensive income: | |||
Net income | 817 | 817 | |
Total other comprehensive income (loss) | (21.1) | (21.1) | |
Comprehensive income | 795.9 | 817 | (21.1) |
Distributions | (927.1) | (927.1) | |
Equity-based incentive compensation expense | 12 | 12 | |
Repurchase of common units | (276.9) | (276.9) | |
Issuance of common units in settlement of equity-based incentive plan awards | 0.6 | 0.6 | |
Payments associated with settlement of equity-based incentive compensation | (14.7) | (14.7) | |
Other | (1) | (1) | |
Ending balance at Dec. 31, 2020 | 2,303.8 | 2,487 | (183.2) |
Comprehensive income: | |||
Net income | 982 | 982 | |
Total other comprehensive income (loss) | 28.2 | 28.2 | |
Comprehensive income | 1,010.2 | 982 | 28.2 |
Distributions | (906.4) | (906.4) | |
Equity-based incentive compensation expense | 21.8 | 21.8 | |
Repurchase of common units | (523.1) | (523.1) | |
Issuance of common units in settlement of equity-based incentive plan awards | 0.5 | 0.5 | |
Payments associated with settlement of equity-based incentive compensation | (6.2) | (6.2) | |
Other | (0.8) | (0.8) | |
Ending balance at Dec. 31, 2021 | $ 1,899.8 | $ 2,054.8 | $ (155) |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business 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 our common 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 our general partner. The board of directors of our general partner is referred to herein as our “board”. Description of Business We are principally engaged in the transportation, storage and distribution of refined petroleum products and crude oil. As of December 31, 2021, our asset portfolio, excluding assets associated with discontinued operations, consisted of: • our refined products segment, comprised of our approximately 9,800-mile refined petroleum products pipeline system with 54 terminals and two marine storage terminals (one of which is owned through a joint venture); and • our crude oil segment, comprised of approximately 2,200 miles of crude oil pipelines, a condensate splitter and 39 million barrels of aggregate storage capacity, of which approximately 29 million barrels are used for contract storage. Approximately 1,000 miles of these pipelines, the condensate splitter and 31 million barrels of this storage capacity (including 25 million barrels used for contract storage) are wholly-owned, with the remainder owned through joint ventures. Description of Products The following terms are commonly used in our industry to describe products that we transport, store, distribute or otherwise handle through our petroleum pipelines and terminals: • refined products are the output from crude oil refineries that are primarily used as fuels by consumers. Refined products include gasoline, diesel fuel, aviation fuel, kerosene and heating oil. Diesel fuel, kerosene and heating oil are also referred to as distillates; • transmix is a mixture that forms when different refined products are transported in pipelines. Transmix is fractionated and blended into usable refined products; • liquefied petroleum gases or LPGs are liquids produced as by-products of the crude oil refining process and in connection with natural gas production. LPGs include gas liquids such as butane, natural gasoline and propane; • blendstocks are products blended with refined products to change or enhance their characteristics such as increasing a gasoline’s octane or oxygen content. Blendstocks include alkylates and oxygenates; and • crude oil, which includes condensate, is a naturally occurring unrefined petroleum product recovered from underground that is used as feedstock by refineries, splitters and petrochemical facilities. We use the term petroleum products to describe any, or a combination, of the above-noted products. In addition, we handle, store and distribute renewable fuels, such as ethanol and biodiesel. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Significant Accounting Policies Basis of Presentation. Our consolidated financial statements include our refined products and crude oil operating segments. We consolidate all entities in which we have a controlling ownership interest. We apply the equity method of accounting to investments in entities over which we exercise significant influence but do not control. We eliminate all intercompany transactions. In June 2021, we entered into an agreement to sell our independent terminals network comprised of 26 refined petroleum products terminals with approximately six million barrels of storage located primarily in the southeastern United States (“U.S.”). The sale is expected to close upon the receipt of required regulatory approval. The related results of operations, financial position and cash flows have been classified as discontinued operations for all periods presented (see Note 3 – Discontinued Operations and Assets Held for Sale for additional details). Unless indicated otherwise, the information in the Notes to Consolidated Financial Statements relates to continuing operations. Reclassifications. Certain prior period amounts have been reclassified to conform with the current period’s presentation, including amounts related to our discontinued operations. Use of Estimates. The preparation of our consolidated financial statements in conformity with U.S. generally accepted accounting principles (“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. Cash Equivalents. Cash and cash equivalents include demand and time deposits and funds that own highly marketable securities with original maturities of three months or less when acquired. We periodically assess the financial condition of the institutions where we hold these funds, and at December 31, 2020 and 2021, we believed our credit risk relative to these funds was minimal. Restricted Cash. Restricted cash includes cash that we are contractually required to use 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. Accounts Receivable and Allowance for Doubtful Accounts. Accounts receivable represent valid claims against customers. We recognize accounts receivable when we sell products or render services and collection of the receivable is probable. We extend credit terms to certain customers after a review of various credit indicators. We establish an allowance for doubtful accounts using an expected credit loss approach and evaluate reserves no less than quarterly to determine their adequacy. Judgments relative to at-risk accounts include the customers’ current financial condition, the customers’ historical relationship with us and current and projected economic conditions. We write off accounts receivable when we deem an account uncollectible. Product Overages and Shortages. Each period end we measure the volume of each type of product in our pipeline systems and terminals, which is compared to the volumes of our customers’ inventories (as adjusted for tender deductions). To the extent the product volumes in our pipeline systems and terminals exceed the volumes of our customers’ book inventories, we recognize a gain from the product overage and increase our product inventories. To the extent the product in our pipeline systems and terminals is less than our customers’ book inventories, we recognize a loss from the product shortage and we record a liability for product owed to our customers. The product overages we recognize are recorded based on market prices, and the resulting inventory is carried at weighted average cost. The product shortages we recognize are recorded based on our weighted average cost. Additionally, when product shortages result in a net short inventory position, the related liability is recorded based on period-end market prices. Product overages and shortages as well as adjustments to the value of net short inventory positions are recorded in operating expenses on our consolidated statements of income. Income Taxes. We are a partnership for income tax purposes and therefore are not subject to federal or state income taxes for most of the states in which we operate. The tax on our net income is borne by our unitholders through allocation to them of their share of our taxable income. Net income for financial statement purposes may differ significantly from taxable income allocated to unitholders because of differences between the tax basis and financial reporting basis of assets and liabilities and the taxable income allocation requirements under our partnership agreement. The aggregate difference in the basis of our net assets for financial and tax reporting purposes cannot be readily determined because information regarding each unitholder’s tax attributes is not available to us. The amounts recognized as provision for income taxes in our consolidated statements of income are primarily comprised of partnership-level taxes levied by the state of Texas. This tax is based on revenues less direct costs of sale for our assets apportioned to the state of Texas. Net Income Per Unit. We calculate basic net income per common unit for each period by dividing net income by the weighted average number of common units outstanding. The difference between our actual common units outstanding and our weighted average number of common units outstanding used to calculate net income per common unit is due to the impact of: (i) the phantom units issued to our independent directors, which are included in the calculation of basic and diluted weighted average units outstanding and (ii) the weighted average effect of units actually issued or repurchased during a period. The difference between the weighted average number of common units outstanding used for basic and diluted net income per unit calculations on our consolidated statements of income is primarily the dilutive effect of phantom unit awards granted pursuant to our long-term incentive plan, which have not yet vested in periods where contingent performance metrics have been met. Index of Additional Significant Accounting Policies Discontinued Operations and Assets Held for Sale Note 3 – Discontinued Operati ons and Assets Held for Sa le Revenue from Contracts with Customers Note 5 – Revenue Property, Plant and Equipment Note 6 – Property, Plant and Equipment, Goodwill and Other Intangibles Goodwill and Other Intangible Assets Note 6 – Property, Plant and Equipment, Goodwill and Other Intangibles Investments in Non-Controlled Entities Note 7 – Investments in Non-Controlled Entities Inventory Note 8 – Inventory Leases Note 1 1 – Leases Pension and Postretirement Medical and Life Benefit Obligations Note 1 2 – Employee Benefit Plans Equity-Based Incentive Compensation Note 1 3 – Long-Term Incentive Plan Derivative Financial Instruments Note 1 4 – Derivative Financial Instruments Contingencies and Environmental Note 1 6 – Commitments and Contingencies New Accounting Pronouncements We evaluate new Accounting Standards Codifications (“ASC”) and updates issued by the Financial Accounting Standards Board on an ongoing basis. There are no new accounting pronouncements that we anticipate will have a material impact on our financial statements. |
Discontinued Operations and Ass
Discontinued Operations and Assets Held for Sale | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations and Assets Held for Sale | Discontinued Operations and Assets Held for Sale In June 2021, we entered into an agreement to sell our independent terminals network comprised of 26 refined petroleum products terminals with approximately six million barrels of storage located primarily in the southeastern U.S. to Buckeye Partners, L.P. (“Buckeye”) for $435 million. The sale is expected to close upon the receipt of required regulatory approval. The related results of operations, which were previously included in our refined products segment, have been classified as discontinued operations. Summarized Results of Discontinued Operations The following table provides the summarized results that have been reclassified from continuing operations to discontinued operations on the consolidated statements of income for the years ended December 31, 2019, 2020 and 2021 (in millions): Year Ended December 31, 2019 2020 2021 Transportation and terminals revenue $ 56.8 $ 51.4 $ 53.3 Product sales revenue 70.3 54.2 83.7 Total revenue 127.1 105.6 137.0 Costs and expenses: Operating 17.9 13.4 11.2 Cost of product sales 58.5 45.5 66.5 Depreciation, amortization and impairment 15.4 15.6 7.1 General and administrative 2.5 2.2 2.5 Total costs and expenses 94.3 76.7 87.3 Income from discontinued operations $ 32.8 $ 28.9 $ 49.7 Summarized Assets and Liabilities of Discontinued Operations The following table provides the summarized assets and liabilities classified as held for sale on the consolidated balance sheets as of December 31, 2020 and 2021 (in millions): Year Ended December 31, 2020 2021 Assets: Trade accounts receivable $ 5.6 $ 6.3 Inventory 9.2 17.0 Net property, plant and equipment 274.9 272.0 Goodwill 2.7 2.7 Other assets 0.3 1.5 Total assets classified as held for sale $ 292.7 $ 299.5 Liabilities: Accounts payable $ 2.0 $ 3.7 Accrued product liabilities 4.0 8.4 Other liabilities 3.9 3.7 Total liabilities classified as held for sale $ 9.9 $ 15.8 |
Segment Disclosures
Segment Disclosures | 12 Months Ended |
Dec. 31, 2021 | |
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 because each segment requires different marketing strategies and business knowledge. Management evaluates performance based on segment operating margin, which includes revenue from affiliates and third-party customers, operating expenses, cost of product sales, other operating (income) expense 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. Operating profit includes depreciation, amortization and impairment expense and general and administrative (“G&A”) expense that management does not consider when evaluating the core profitability of our separate operating segments. Year Ended December 31, 2019 (in millions) Refined Products Crude Oil Intersegment Total Transportation and terminals revenue $ 1,299.0 $ 620.3 $ (5.4) $ 1,913.9 Product sales revenue 637.5 28.3 — 665.8 Affiliate management fee revenue 6.7 14.5 — 21.2 Total revenue 1,943.2 663.1 (5.4) 2,600.9 Operating expense 454.0 173.3 (10.9) 616.4 Cost of product sales 532.8 28.1 — 560.9 Other operating (income) expense (10.2) 7.2 — (3.0) Earnings of non-controlled entities (8.1) (160.9) — (169.0) Operating margin 974.7 615.4 5.5 1,595.6 Depreciation, amortization and impairment expense 158.7 66.5 5.5 230.7 G&A expense 138.3 55.9 — 194.2 Operating profit $ 677.7 $ 493.0 $ — $ 1,170.7 Additions to long-lived assets $ 785.1 $ 74.2 $ 859.3 As of December 31, 2019 (in millions) Segment assets $ 5,116.4 $ 2,894.7 $ 8,011.1 Assets held for sale 295.5 Corporate assets 131.1 Total assets $ 8,437.7 Goodwill $ 38.5 $ 12.1 $ 50.6 Investments in non-controlled entities $ 422.4 $ 818.2 $ 1,240.6 Year Ended December 31, 2020 (in millions) Refined Products Crude Oil Intersegment Total Transportation and terminals revenue $ 1,190.4 $ 559.5 $ (6.6) $ 1,743.3 Product sales revenue 524.4 33.1 — 557.5 Affiliate management fee revenue 6.3 14.9 — 21.2 Total revenue 1,721.1 607.5 (6.6) 2,322.0 Operating expense 411.8 189.2 (13.2) 587.8 Cost of product sales 425.8 42.4 — 468.2 Other operating (income) expense (3.2) 3.1 — (0.1) Earnings of non-controlled entities (32.5) (120.8) — (153.3) Operating margin 919.2 493.6 6.6 1,419.4 Depreciation, amortization and impairment expense 159.9 76.6 6.6 243.1 G&A expense 123.5 47.7 — 171.2 Operating profit $ 635.8 $ 369.3 $ — $ 1,005.1 Additions to long-lived assets $ 277.5 $ 56.4 $ 333.9 As of December 31, 2020 (in millions) Segment assets $ 4,977.0 $ 2,836.9 $ 7,813.9 Assets held for sale 292.7 Corporate assets 90.4 Total assets $ 8,197.0 Goodwill $ 38.0 $ 12.1 $ 50.1 Investments in non-controlled entities $ 429.2 $ 784.7 $ 1,213.9 Year Ended December 31, 2021 (in millions) Refined Products Crude Oil Intersegment Total Transportation and terminals revenue $ 1,338.5 $ 466.2 $ (5.8) $ 1,798.9 Product sales revenue 763.9 149.1 — 913.0 Affiliate management fee revenue 6.4 14.8 — 21.2 Total revenue 2,108.8 630.1 (5.8) 2,733.1 Operating expense 416.7 165.4 (12.4) 569.7 Cost of product sales 630.1 149.9 — 780.0 Other operating (income) expense (6.9) 4.1 — (2.8) Earnings of non-controlled entities (34.4) (120.0) — (154.4) Operating margin 1,103.3 430.7 6.6 1,540.6 Depreciation, amortization and impairment expense 153.9 67.4 6.6 227.9 G&A expense 147.8 58.5 — 206.3 Operating profit $ 801.6 $ 304.8 $ — $ 1,106.4 Additions to long-lived assets $ 88.9 $ 41.1 $ 130.0 As of December 31, 2021 (in millions) Segment assets $ 4,880.0 $ 2,780.7 $ 7,660.7 Assets held for sale 299.5 Corporate assets 69.8 Total assets $ 8,030.0 Goodwill $ 38.0 $ 12.1 $ 50.1 Investments in non-controlled entities $ 232.8 $ 748.0 $ 980.8 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue 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 on a net basis. We recognize pipeline transportation revenue for crude oil 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 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 related rules and orders. FERC regulation requires that interstate pipeline rates be filed with the FERC, be posted publicly, be “just and reasonable” and not be unduly discriminatory. The rates on approximately 30% 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 liquid pipeline companies may establish rates by obtaining authority to charge market-based rates in competitive markets or by negotiation with unaffiliated shippers. Approximately 70% 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. Statements of Income Disclosures The following tables provide details of our revenue disaggregated by key activities that comprise our performance obligations by operating segment (in millions): Year Ended December 31, 2019 Refined Products Crude Oil Intersegment Eliminations Total Transportation $ 787.7 $ 381.6 $ — $ 1,169.3 Terminalling 139.9 17.8 — 157.7 Storage 214.9 119.3 (5.4) 328.8 Ancillary services 128.6 28.4 — 157.0 Lease revenue 27.9 73.2 — 101.1 Transportation and terminals revenue 1,299.0 620.3 (5.4) 1,913.9 Product sales revenue 637.5 28.3 — 665.8 Affiliate management fee revenue 6.7 14.5 — 21.2 Total revenue 1,943.2 663.1 (5.4) 2,600.9 Revenue not under the guidance of ASC 606, Revenue from Contracts with Customers: Lease revenue (27.9) (73.2) — (101.1) (Gains) losses from futures contracts included in product sales revenue 63.5 3.0 — 66.5 Affiliate management fee revenue (6.7) (14.5) — (21.2) Total revenue from contracts with customers under ASC 606 $ 1,972.1 $ 578.4 $ (5.4) $ 2,545.1 Year Ended December 31, 2020 Refined Products Crude Oil Intersegment Eliminations Total Transportation $ 742.9 $ 305.4 $ — $ 1,048.3 Terminalling 109.6 21.5 — 131.1 Storage 199.3 129.0 (6.6) 321.7 Ancillary services 114.9 26.9 — 141.8 Lease revenue 23.7 76.7 — 100.4 Transportation and terminals revenue 1,190.4 559.5 (6.6) 1,743.3 Product sales revenue 524.4 33.1 — 557.5 Affiliate management fee revenue 6.3 14.9 — 21.2 Total revenue 1,721.1 607.5 (6.6) 2,322.0 Revenue not under the guidance of ASC 606, Revenue from Contracts with Customers: Lease revenue (23.7) (76.7) — (100.4) (Gains) losses from futures contracts included in product sales revenue (56.8) 3.6 — (53.2) Affiliate management fee revenue (6.3) (14.9) — (21.2) Total revenue from contracts with customers under ASC 606 $ 1,634.3 $ 519.5 $ (6.6) $ 2,147.2 Year Ended December 31, 2021 Refined Products Crude Oil Intersegment Eliminations Total Transportation $ 915.7 $ 228.8 $ — $ 1,144.5 Terminalling 100.1 17.0 — 117.1 Storage 177.1 114.8 (5.8) 286.1 Ancillary services 125.2 29.9 — 155.1 Lease revenue 20.4 75.7 — 96.1 Transportation and terminals revenue 1,338.5 466.2 (5.8) 1,798.9 Product sales revenue 763.9 149.1 — 913.0 Affiliate management fee revenue 6.4 14.8 — 21.2 Total revenue 2,108.8 630.1 (5.8) 2,733.1 Revenue not under the guidance of ASC 606, Revenue from Contracts with Customers: Lease revenue (20.4) (75.7) — (96.1) (Gains) losses from futures contracts included in product sales revenue (127.2) (16.0) — (143.2) Affiliate management fee revenue (6.4) (14.8) — (21.2) Total revenue from contracts with customers under ASC 606 $ 1,954.8 $ 523.6 $ (5.8) $ 2,472.6 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. We also record contract liabilities for payments received in conjunction with take-or-pay contracts, storage contracts and other service offerings in which the service to our customers remains unfulfilled. These liabilities are presented as deferred revenue and other noncurrent liabilities on our consolidated balance sheets. We recognize contract assets for costs incurred to obtain new customer contracts. Additionally, at each period end, we defer a portion of the costs incurred associated with our customers’ in-transit products based on our per-barrel direct delivery costs and the average delivery point for all barrels in our system. These contract assets are presented on our consolidated balance sheets as other current and noncurrent assets. 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 millions): December 31, 2020 December 31, 2021 Accounts receivable from contracts with customers $ 103.3 $ 134.8 Contract assets $ 12.2 $ 12.5 Contract liabilities $ 102.7 $ 100.1 For the year ended December 31, 2021, we recognized $80.9 million of transportation and terminals revenue that was recorded in deferred revenue as of December 31, 2020. 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 us 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. 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 December 31, 2021 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 millions): Refined Products Crude Oil Total Amounts as of December 31, 2021 $ 1,874.5 $ 1,069.8 $ 2,944.3 Remaining terms 1 - 17 years 1 - 10 years Estimated revenues from UPOs to be recognized in the next 12 months $ 368.9 $ 257.4 $ 626.3 In computing the value of these future revenues, we have used the current rates in effect as of December 31, 2021 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 |
Property, Plant and Equipment a
Property, Plant and Equipment and Other Intangibles | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment and Other Intangibles | Property, Plant and Equipment, Goodwill and Other Intangibles Property, Plant and Equipment Property, plant and equipment consists primarily of pipeline, pipeline-related equipment, storage tanks and processing equipment. We state property, plant and equipment at cost except for certain acquired assets recorded at fair value on their respective acquisition dates and impaired assets. We record impaired assets at fair value on the last impairment evaluation date for which an adjustment was required. We assign asset lives based on reasonable estimates when we place an asset into service. Subsequent events could cause us to change our estimates, which would affect the future calculation of depreciation expense. When we sell or retire property, plant and equipment, we remove its carrying value and the related accumulated depreciation from our accounts and record any associated gains or losses on our consolidated statements of income in the period of sale or disposition. We capitalize expenditures to replace existing assets and retire the replaced assets. We capitalize expenditures when they extend the useful life, increase the productivity or capacity, or improve the safety or efficiency of the asset. We capitalize direct project costs such as labor and materials as incurred. Indirect project costs, such as overhead, are capitalized based on a percentage of direct labor charged to the respective capital project. We charge expenditures for maintenance, repairs and minor replacements to operating expense in the period incurred. During construction, we capitalize interest on construction projects undergoing preparation for use and when total budgeted project costs exceed $0.5 million. The interest we capitalize is based on the weighted average interest rate of our debt. The weighted average rates used to capitalize interest on borrowed funds were 4.6%, 4.4% and 4.4% for the years ended December 31, 2019, 2020 and 2021, respectively. Property, plant and equipment consisted of the following (in millions): Estimated Depreciable Lives December 31, 2020 2021 Construction work-in-progress $ 122.0 $ 89.5 Land and rights-of-way 373.9 374.3 Buildings 119.7 121.8 10 to 53 years Storage tanks 1,952.7 1,986.7 10 to 49 years Pipeline and station equipment 3,325.9 3,386.0 10 to 59 years Processing equipment 1,769.4 1,826.4 3 to 56 years Other 280.2 261.2 3 to 53 years Property, plant and equipment, gross $ 7,943.8 $ 8,045.9 Other includes total interest capitalized on assets placed in service as of December 31, 2020 and 2021 of $96.2 million and $98.7 million, respectively. Depreciation expense for the years ended December 31, 2019, 2020 and 2021 was $227.5 million, $240.5 million and $225.2 million, respectively. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. In reviewing for impairment, the carrying value of such assets is compared to the estimated undiscounted future cash flows expected from the use of the assets and their eventual disposition. If such cash flows are not sufficient to support the asset’s recorded value, an impairment charge is recognized to reduce the carrying value of the long-lived asset to its estimated fair value. The determination of future cash flows as well as the estimated fair value of long-lived assets involves significant estimates on the part of management. In accordance with ASC, 360 Plant, Property and Equipment , we ceased recording depreciation and amortization for the assets held for sale in June 2021. Goodwill We record the excess of purchase price over the fair value of the tangible and identifiable intangible assets acquired and liabilities assumed in a business acquisition (or combination) as goodwill. The goodwill relating to each of our reporting units is tested for impairment annually as well as when an event or change in circumstances indicates an impairment may have occurred. For purposes of performing the impairment test for goodwill, our reporting units are our refined products and crude oil segments. In 2019 and 2020, we elected to complete the qualitative goodwill impairment test and concluded it was more likely than not that the fair value of each of our reporting units was greater than its carrying amount. In 2021, we elected to perform the quantitative assessment for purposes of our annual goodwill impairment test and calculated that the fair value of each of our reporting units was greater than the carrying amount. Based on this assessment, we concluded goodwill was not impaired. Other Intangibles Other intangible assets with finite lives are amortized over their estimated useful lives of 7 years up to 30 years. The weighted average asset life of our other intangible assets at December 31, 2021 was approximately 16 years. We adjust the useful lives of our other intangible assets if events or circumstances indicate there has been a change in the remaining useful lives. We eliminate from our balance sheets the gross carrying amount and the related accumulated amortization for any fully amortized intangibles in the year they are fully amortized. During the years ended December 31, 2019, 2020 and 2021, amortization of other intangible assets was $3.3 million, $2.7 million and $2.7 million, respectively. |
Investments in Non-Controlled E
Investments in Non-Controlled Entities | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Non-Controlled Entities | Investments in Non-Controlled EntitiesWe account for interests in affiliates that we do not control using the equity method of accounting. Under this method, an investment is recorded at our acquisition cost or capital contributions, as adjusted by contractual terms, plus equity in earnings or losses since acquisition or formation, plus interest capitalized, less distributions received and amortization of interest capitalized and excess net investment. Excess net investment is the amount by which our investment in a non-controlled entity exceeded our proportionate share of the book value of the net assets of that investment. We amortize excess net investment over the weighted average depreciable asset lives of the equity investee. Our unamortized excess net investment was $33.0 million and $32.0 million at December 31, 2020 and 2021, respectively. The amount of unamortized excess investment is primarily related to our investment in BridgeTex. We evaluate equity method investments for impairment whenever events or circumstances indicate that there is an other-than-temporary loss in value of the investment. In the event that we determine that the loss in value of an investment is other-than-temporary, we would record a charge to earnings to adjust the carrying value to fair value. We recognized no equity investment impairments during 2019, 2020 and 2021. Our equity investments in non-controlled entities at December 31, 2021 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”) 25% Powder Springs Logistics, LLC (“Powder Springs”) 50% Saddlehorn Pipeline Company, LLC (“Saddlehorn”) 30% Seabrook Logistics, LLC (“Seabrook”) 50% Texas Frontera, LLC (“Texas Frontera”) 50% In April 2021, we sold nearly half of our membership interest in MVP. As a result of the sale, we received proceeds of $272.1 million and recorded a gain of $70.4 million on our consolidated statements of income. Following the sale, we own approximately 25% of MVP and remain the operator of the facility. 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 receive 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 $5.3 million, $3.6 million and $2.5 million, respectively, for the years ended December 31, 2019, 2020 and 2021. We recorded the following revenue and expense transactions from certain of these non-controlled entities in our consolidated statements of income (in millions): Year Ended December 31, 2019 2020 2021 Transportation and terminals revenue: BridgeTex, pipeline capacity and storage $ 41.8 $ 42.3 $ 43.7 Double Eagle, throughput revenue $ 6.2 $ 4.9 $ 3.0 Saddlehorn, storage revenue $ 2.2 $ 2.5 $ 2.3 Operating expense: Seabrook, storage lease and ancillary services $ 25.9 $ 29.1 $ 19.7 Product sales revenue: Seabrook, product sales $ 0.3 $ — $ — Other operating income: MVP, easement sale $ 0.3 $ — $ — Seabrook, gain on sale of air emission credits $ — $ 1.4 $ 0.4 Our consolidated balance sheets reflected the following balances related to our investments in non-controlled entities (in millions): December 31, 2020 Trade Accounts Receivable Other Accounts Receivable Other Accounts Payable Long-Term Receivables BridgeTex $ 0.4 $ — $ 1.0 $ — Double Eagle $ 0.3 $ — $ — $ — HoustonLink $ — $ — $ 0.1 $ — MVP $ — $ 0.5 $ 2.3 $ — Powder Springs $ — $ — $ — $ 10.2 Saddlehorn $ — $ 0.1 $ — $ — Seabrook $ — $ — $ 7.3 $ — December 31, 2021 Trade Accounts Receivable Other Accounts Receivable Other Accounts Payable Long-Term Receivables BridgeTex $ 1.2 $ — $ 0.3 $ — Double Eagle $ 0.2 $ — $ — $ — HoustonLink $ — $ — $ 0.2 $ — MVP $ — $ 0.6 $ 2.2 $ — Powder Springs $ — $ — $ — $ — Saddlehorn $ — $ 0.2 $ — $ — Seabrook $ — $ 0.1 $ 3.2 $ — We entered into a long-term terminalling and storage contract with Seabrook for exclusive use of dedicated tankage that provides our customers with crude oil storage capacity and dock access for crude oil imports and exports on the Texas Gulf Coast (see Note 11 – Leases for more details regarding this lease). We also made purchases of transmix from MVP throughout the year totaling $7.6 million. The financial results from MVP, Powder Springs and Texas Frontera are included in our refined products segment and the financial results from BridgeTex, Double Eagle, HoustonLink, Saddlehorn and Seabrook are included in our crude oil segment, each as earnings of non-controlled entities. A summary of our investments in non-controlled entities (representing only our proportionate interests) follows (in millions): Investments at December 31, 2020 $ 1,213.9 Additional investment 5.6 Sale of ownership interests (199.8) Earnings of non-controlled entities: Proportionate share of earnings 156.2 Amortization of excess investment and capitalized interest (1.8) Earnings of non-controlled entities 154.4 Less: Distributions from operations of non-controlled entities 193.3 Investments at December 31, 2021 $ 980.8 Summarized financial information of our non-controlled entities (representing 100% of the interests in these entities) follows (in millions): December 31, 2020 2021 Current assets $ 243.8 $ 227.0 Noncurrent assets 2,846.7 2,795.7 Total assets $ 3,090.5 $ 3,022.7 Current liabilities $ 143.6 $ 178.6 Noncurrent liabilities 57.5 59.5 Total liabilities $ 201.1 $ 238.1 Equity $ 2,889.4 $ 2,784.6 Year Ended December 31, 2019 2020 2021 Revenue $ 782.0 $ 752.7 $ 733.1 Net income $ 507.5 $ 471.4 $ 463.4 |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory is comprised primarily of refined products, crude oil, liquefied petroleum gases and transmix and is stated and relieved at the lower of average cost or net realizable value. Inventory at December 31, 2020 and 2021 was as follows (in millions): December 31, 2020 2021 Refined products $ 72.0 $ 138.0 Crude oil 32.4 25.4 Liquefied petroleum gases 25.0 42.0 Transmix 23.4 72.4 Additives 5.4 3.3 Total inventory $ 158.2 $ 281.1 |
Supplemental Cash Flows Informa
Supplemental Cash Flows Information | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flows Information | Consolidated Statements of Cash Flows Changes in the components of operating assets and liabilities are as follows (in millions): Year Ended December 31, 2019 2020 2021 Trade accounts receivable and other accounts receivable $ (20.3) $ (0.9) $ (29.1) Inventory 2.7 14.0 (122.9) Accounts payable (1.9) 4.5 16.0 Accrued payroll and benefits 4.8 (22.3) 22.8 Accrued interest payable 1.0 (5.3) — Accrued taxes other than income 12.6 4.4 8.8 Deferred revenue (11.4) (10.7) (6.1) Accrued product liabilities 15.9 (8.5) 78.3 Other current and noncurrent assets and liabilities (1.3) (12.3) 22.5 Total $ 2.1 $ (37.1) $ (9.7) |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt at December 31, 2020 and 2021 was as follows (in millions): December 31, 2020 2021 Commercial paper $ — $ 108.0 3.20% Notes due 2025 250.0 250.0 5.00% Notes due 2026 650.0 650.0 3.25% Notes due 2030 500.0 500.0 6.40% Notes due 2037 250.0 250.0 4.20% Notes due 2042 250.0 250.0 5.15% Notes due 2043 550.0 550.0 4.20% Notes due 2045 250.0 250.0 4.25% Notes due 2046 500.0 500.0 4.20% Notes due 2047 500.0 500.0 4.85% Notes due 2049 500.0 500.0 3.95% Notes due 2050 800.0 800.0 Face value of long-term debt 5,000.0 5,108.0 Unamortized debt issuance costs (1) (40.1) (37.8) Net unamortized debt premium (1) 18.8 18.6 Long-term debt, net $ 4,978.7 $ 5,088.8 (1) Debt issuance costs and note discounts and premiums 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. At December 31, 2021, maturities of our senior notes were as follows: $0 in 2022 through 2024; $250 million in 2025; and $4.75 billion thereafter. Other Debt Revolving Credit Facility . At December 31, 2021, the total borrowing capacity under our revolving credit facility maturing in May 2024 was $1.0 billion. Any borrowings outstanding under this facility are classified as long-term debt on our consolidated balance sheets. Borrowings under the facility are unsecured and bear interest at LIBOR plus a spread ranging from 0.875% to 1.500% based on our credit ratings. Additionally, an unused commitment fee is assessed at a rate between 0.075% and 0.200% depending on our credit ratings. The unused commitment fee was 0.125% at December 31, 2021. Borrowings under this facility may be used for general purposes, including capital expenditures. As of December 31, 2020 and 2021, there were no borrowings outstanding under this facility and $3.5 million was 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. Our revolving credit facility requires us to maintain a specified ratio of consolidated debt to EBITDA (as defined in the credit agreement) of no greater than 5.0 to 1.0. In addition, the revolving credit facility and the indentures under which our senior notes were issued contain covenants that limit our ability to, among other things, incur indebtedness secured by certain liens or encumber our assets, engage in certain sale-leaseback transactions and consolidate, merge or dispose of all or substantially all of our assets. We were in compliance with these covenants as of and during the year ended December 31, 2021. 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 0.4% and 0.2% for the year ended December 31, 2020 and 2021, respectively. There was $108.0 million outstanding under this program at December 31, 2021. During the years ending December 31, 2019, 2020 and 2021, total cash payments for interest on all indebtedness, excluding the impact of related interest rate swap agreements, were $217.1 million, $234.5 million and $221.6 million, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases We have both lessee and lessor arrangements. Our leases are evaluated at inception or at any subsequent modification. Depending on the terms, leases are classified as either operating or finance leases if we are the lessee, or as operating, sales-type or direct financing leases if we are the lessor, as appropriate under ASC 842, Leases . Our lessee arrangements primarily include a terminalling and storage contract where we have exclusive use of dedicated tankage, leased pipelines and office buildings. Our lessor arrangements include pipeline capacity and storage contracts and our condensate splitter tolling agreement that qualify as operating leases under ASC 842. In addition, we have a long-term throughput and deficiency agreement with a customer that is being accounted for as a sales-type lease under ASC 842. In accordance with ASC 842, we have made an accounting policy election to not apply the standard to lessee arrangements with a term of one year or less and no purchase option that is reasonably certain of exercise. We will continue to account for these short-term arrangements by recognizing payments and expenses as incurred, without recording a lease liability and right-of-use asset. We have also made an accounting policy election for both our lessee and lessor arrangements to combine lease and non-lease components. This election is applied to all of our lease arrangements as our non-lease components do not result in significant timing differences in the recognition of rental expenses or income. Operating Leases – Lessee We recognize a lease liability for each lease based on the present value of remaining minimum fixed rental payments (which includes payments under any renewal option that we are reasonably certain to exercise), using a discount rate that approximates the rate of interest we would have to pay to borrow on a collateralized basis over a similar term. We also recognize a right-of-use asset for each lease, valued at the lease liability, adjusted for prepaid or accrued rent balances existing at the time of initial recognition. The lease liability and right-of-use asset are reduced over the term of the lease as payments are made and the assets are used. Related Party Operating Lease . We entered into a long-term terminalling and storage contract with Seabrook for exclusive use of dedicated tankage that provides our customers with crude oil storage capacity and dock access for crude oil imports and exports on the Texas Gulf Coast. Minimum fixed rental payments are recognized on a straight-line basis over the life of the lease as costs and expenses on our consolidated statements of income. Variable and short-term rental payments are recognized as costs and expenses as they are incurred. Variable payments consist of amounts that exceed the contractual minimum rental payment (for example, payment increases tied to a change in a market index). Future minimum rental payments under operating leases with initial terms greater than one year as of December 31, 2021 are as follows (in millions): Third Party Leases Seabrook Lease All Leases 2022 $ 21.2 $ 9.9 $ 31.1 2023 21.4 9.9 31.3 2024 21.7 9.7 31.4 2025 21.8 6.6 28.4 2026 12.5 6.6 19.1 Thereafter 34.1 17.6 51.7 Total future minimum rental payments 132.7 60.3 193.0 Present value discount 12.1 7.8 19.9 Total operating lease liability $ 120.6 $ 52.5 $ 173.1 The following tables provide a summary of the effect on our consolidated statements of income for the years ended December 31, 2019, 2020 and 2021 (in millions): Year Ended December 31, 2019 Third Party Leases Seabrook Lease All Leases Fixed lease expense $ 19.2 $ 10.8 $ 30.0 Short-term lease expense 1.6 — 1.6 Variable lease expense 3.0 15.0 18.1 Total lease expense $ 23.8 $ 25.8 $ 49.7 Year Ended December 31, 2020 Third Party Leases Seabrook Lease All Leases Fixed lease expense $ 19.2 $ 14.3 $ 33.5 Short-term lease expense 1.3 — 1.3 Variable lease expense 4.1 14.8 18.9 Total lease expense $ 24.6 $ 29.1 $ 53.7 Year Ended December 31, 2021 Third Party Leases Seabrook Lease All Leases Fixed lease expense $ 21.0 $ 12.7 $ 33.7 Short-term lease expense 1.7 — 1.7 Variable lease expense 3.4 6.8 10.2 Total lease expense $ 26.1 $ 19.5 $ 45.6 The following table provides a summary of the effect on our consolidated balance sheets as of December 31, 2020 and 2021 (dollars in millions): As of and for the Year Ended December 31, 2020 December 31, 2021 Third Party Leases Seabrook Lease All Leases Third Party Leases Seabrook Lease All Leases Current lease liability $ 17.1 $ 10.4 $ 27.5 $ 17.8 $ 8.0 $ 25.8 Long-term lease liability $ 85.0 $ 52.5 $ 137.5 $ 102.8 $ 44.5 $ 147.3 Right-of-use asset $ 103.2 $ 62.9 $ 166.1 $ 121.7 $ 52.5 $ 174.2 Operating cash flows for operating leases $ 24.1 $ 29.1 $ 53.2 $ 26.2 $ 19.5 $ 45.7 Weighted average remaining lease term (years) 6 7 7 7 7 7 Weighted average discount 3.7 % 4.0 % 3.8 % 3.0 % 4.1 % 3.4 % Operating Leases – Lessor We recognize fixed rental income on a straight-line basis over the life of the lease as revenue on our consolidated statements of income. Variable rental payments are recognized as revenue in the period in which the circumstances on which the variable lease payments are based occur. Future minimum payments receivable under operating leases with initial terms greater than one year as of December 31, 2021 are estimated as follows (in millions): 2022 $ 24.9 2023 25.2 2024 21.9 2025 13.8 2026 13.1 Thereafter 32.9 Total $ 131.8 We recognized variable lease revenue of $58.4 million, $61.4 million and $61.0 million, respectively, for the years ended December 31, 2019, 2020 and 2021, primarily related to our condensate splitter. At December 31, 2021, property, plant and equipment utilized by our customers in operating lease arrangements consisted of: $216.9 million of processing equipment; $56.4 million of storage tanks; $47.5 million of pipeline and station equipment; and $29.0 million of other assets. The processing equipment primarily relates to our condensate splitter. Sales-Type Lease – Lessor We entered into a long-term throughput and deficiency agreement with a customer on a pipeline and related assets that we constructed in Texas and New Mexico, which contains minimum volume/payment commitments. Our customer has the option to purchase this pipeline and related assets at the end of the lease term for a nominal amount. This agreement is accounted for as a sales-type lease under ASC 842. The net investment under this arrangement as of December 31, 2020 and 2021 was as follows (in millions): December 31, 2020 December 31, 2021 Total minimum lease payments receivable $ 14.0 $ 12.2 Less: Unearned income 2.3 1.8 Recorded net investment in sales-type lease $ 11.7 $ 10.4 The net investment in this sales-type lease was classified in the consolidated balance sheets as follows (in millions): December 31, 2020 December 31, 2021 Other accounts receivable $ 1.2 $ 1.3 Long-term receivables 10.5 9.1 Total $ 11.7 $ 10.4 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Compensation and Employee Benefit Plans | Employee Benefit Plans Our pension and postretirement benefit liabilities represent the funded status of the present value of benefit obligations of our employee benefit plans. We develop pension, postretirement medical and life benefit costs from third-party actuarial valuations. We establish actuarial assumptions to anticipate future events and use those assumptions when calculating the expense and liabilities related to these plans. These factors include assumptions management makes concerning expected investment return on plan assets, discount rates, health care costs trend rates, turnover rates and rates of future compensation increases, among others. In addition, we use subjective factors such as withdrawal and mortality rates to develop actuarial valuations. Management reviews and updates these assumptions on an annual basis. The actuarial assumptions that we use may differ from actual results due to changing market rates or other factors. These differences could affect the amount of pension and postretirement medical and life benefit expense we will recognize in future periods. Defined Contribution Plan. 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, including expenses related to discontinued operations, were $11.4 million, $12.2 million and $10.6 million in 2019, 2020 and 2021, respectively. Defined Benefit Plans. We sponsor two pension plans, including one for non-union employees and one for union employees, and a postretirement benefit plan for certain employees. The annual measurement date of these plans is December 31. The following table presents the changes in benefit obligations and plan assets for pension benefits and other postretirement benefits, as well as the end-of-period accumulated benefit obligation, including amounts related to discontinued operations, for the years ended December 31, 2020 and 2021 (in millions): Pension Benefits Other Postretirement Benefits 2020 2021 2020 2021 Change in benefit obligations: Benefit obligations at beginning of year $ 381.2 $ 443.6 $ 15.2 $ 17.3 Service cost 27.7 28.2 0.3 0.3 Interest cost 11.0 9.5 0.5 0.4 Plan participants’ contributions — — 0.6 0.8 Actuarial (gain) loss 53.2 (19.4) 2.5 0.9 Benefits paid (23.1) (29.2) (1.8) (1.9) Curtailment gain (1.7) — — — Settlement payments (4.7) (9.3) — — Benefit obligations at end of year 443.6 423.4 17.3 17.8 Change in plan assets: Fair value of plan assets at beginning of year 249.2 295.7 — — Employer contributions 29.3 27.6 1.2 1.1 Plan participants’ contributions — — 0.6 0.8 Actual return on plan assets 43.6 9.7 — — Benefits paid (23.1) (29.2) (1.8) (1.9) Settlement payments (3.3) (9.3) — — Fair value of plan assets at end of year 295.7 294.5 — — Funded status at end of year $ (147.9) $ (128.9) $ (17.3) $ (17.8) Accumulated benefit obligations $ 324.8 $ 305.0 At December 31, 2020 and 2021, the accumulated benefit obligations of each of our plans exceeded the fair value of the related plan’s assets. The pension plans’ actuarial gain in 2021 of $19.4 million is primarily due to the impact of increases in the discount rates used to calculate the benefit obligations, partially offset by demographic changes. The pension benefit obligations experienced an actuarial loss of $53.2 million in 2020 primarily due to the impact of decreases in the discount rates used to calculate the benefit obligations, partially offset by changes in salary assumptions and higher asset returns. The following table summarizes information for pension plans with obligations in excess of plan assets (in millions): December 31, 2020 2021 Plans with a projected benefit obligation in excess of plan assets: Projected benefit obligation $ 443.6 $ 423.4 Fair value of plan assets $ 295.7 $ 294.5 Plans with an accumulated benefit obligation in excess of plan assets: Accumulated benefit obligation $ 324.8 $ 305.0 Fair value of plan assets $ 295.7 $ 294.5 Amounts recognized in the consolidated balance sheets included in these financial statements were as follows (in millions): Pension Benefits Other Postretirement Benefits 2020 2021 2020 2021 Amounts recognized in consolidated balance sheets: Current accrued benefit cost $ — $ — $ 1.4 $ 1.7 Long-term pension and benefits 147.9 128.9 15.9 16.1 147.9 128.9 17.3 17.8 Accumulated other comprehensive loss: Net actuarial loss (120.5) (95.3) (10.4) (10.7) Prior service credit 2.7 2.5 — — (117.8) (92.8) (10.4) (10.7) Net amount of liabilities and accumulated other comprehensive loss recognized in consolidated balance sheets $ 30.1 $ 36.1 $ 6.9 $ 7.1 Net periodic benefit expense for the years ended December 31, 2019, 2020 and 2021 was as follows (in millions): Pension Benefits Other Postretirement Benefits 2019 2020 2021 2019 2020 2021 Components of net periodic benefit costs: Service cost $ 25.4 $ 27.7 $ 28.2 $ 0.2 $ 0.3 $ 0.3 Interest cost 12.2 11.0 9.5 0.5 0.5 0.4 Expected return on plan assets (9.4) (11.4) (11.9) — — — Amortization of prior service credit (0.2) (0.2) (0.2) — — — Amortization of actuarial loss 5.5 5.4 5.4 0.3 0.4 0.6 Settlement cost 2.6 1.0 2.6 — — — Settlement gain on disposition of assets — (1.3) — — — — Net periodic benefit cost $ 36.1 $ 32.2 $ 33.6 $ 1.0 $ 1.2 $ 1.3 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 (income) expense in our consolidated statements of income. Changes in plan assets and benefit obligations recognized in other comprehensive income (loss) during 2019, 2020 and 2021 were as follows (in millions): Pension Benefits Other Postretirement Benefits 2019 2020 2021 2019 2020 2021 Beginning balance $ (88.6) $ (104.7) $ (117.8) $ (5.4) $ (8.4) $ (10.4) Net actuarial gain (loss) (24.0) (21.0) 17.2 (3.3) (2.5) (0.9) Amortization of prior service credit (0.2) (0.2) (0.2) — — — Amortization of actuarial loss 5.5 5.4 5.4 0.3 0.5 0.6 Curtailment gain — 1.7 — — — — Settlement cost 2.6 1.0 2.6 — — — Amount recognized in other comprehensive loss (16.1) (13.1) 25.0 (3.0) (2.0) (0.3) Ending balance $ (104.7) $ (117.8) $ (92.8) $ (8.4) $ (10.4) $ (10.7) Actuarial gains and losses are amortized over the average future service period of the current active plan participants expected to receive benefits. The corridor approach is used to determine when actuarial gains and losses are to be amortized and is equal to 10% of the greater of the projected benefit obligation or the market related value of plan assets. The amount of gain or loss in excess of the calculated corridor is subject to amortization. The weighted average rate assumptions used to determine projected benefit obligations were as follows: Pension Benefits Other Postretirement Benefits 2020 2021 2020 2021 Discount rate 2.23% 2.61% 2.30% 2.64% Rate of compensation increase 4.53% 6.51% n/a n/a Cash balance interest crediting rate 1.70% 1.94% n/a n/a The weighted average rate assumptions used to determine net pension and other postretirement benefit plans expense were as follows: Pension Benefits Other Postretirement Benefits For the Year Ended December 31, For the Year Ended December 31, 2019 2020 2021 2019 2020 2021 Discount rate 3.98% 3.01% 2.23% 4.08% 3.06% 2.30% Rate of compensation increase 6.48% 4.58% 4.53% n/a n/a n/a Expected rate of return on plan assets 6.00% 4.50% 4.10% n/a n/a n/a Cash balance interest crediting rate 2.78% 2.16% 1.70% n/a n/a n/a The non-pension postretirement benefit plans provide for retiree contributions and contain other cost-sharing features such as deductibles and coinsurance. The accounting for these plans anticipates future cost sharing that is consistent with management’s expressed intent to increase the retiree contribution rate generally in line with health care cost increases. The annual assumed rate of increase in the health care cost trend rate for 2022 is 6.0% decreasing systematically to 5.08% by 2029 for pre-65 year old participants. The fair values of the pension plan assets at December 31, 2020 were as follows (in millions): Asset Category Total Quoted Prices in Active Markets for Significant Significant Domestic equity securities: (1) Small-cap fund $ 5.8 $ 5.8 $ — $ — Mid-cap fund 5.8 5.8 — — Large-cap fund 47.6 47.6 — — International equity fund 29.9 29.9 — — Fixed income securities: (1) Short-term bond fund 4.2 4.2 — — Intermediate-term bond fund 34.9 34.9 — — Long-term investment grade bond funds 161.0 161.0 — — Other: Short-term investment fund 6.3 6.3 — — Group annuity contract 0.2 — — 0.2 Fair value of plan assets $ 295.7 $ 295.5 $ — $ 0.2 (1) We hold equity and fixed income securities through investments in mutual funds, which are dedicated to each category as indicated. The fair values of the pension plan assets at December 31, 2021 were as follows (in millions): Asset Category Total Quoted Prices in Active Markets for Significant Significant Domestic equity securities (1) : Small-cap fund $ 6.1 $ 6.1 $ — $ — Mid-cap fund 6.0 6.0 — — Large-cap fund 48.0 48.0 — — International equity fund 30.1 30.1 — — Fixed income securities (1) : Long-term investment grade bond funds 197.1 197.1 — — Other: Short-term investment fund 7.0 7.0 — — Group annuity contract 0.2 — — 0.2 Fair value of plan assets $ 294.5 $ 294.3 $ — $ 0.2 (1) We hold equity and fixed income securities through investments in mutual funds, which are dedicated to each category as indicated. As reflected in the tables above, Level 3 activity was not material. The investment strategies for the various funds held as pension plan assets by asset category are as follows: Asset Category Fund’s Investment Strategy Domestic equity securities: Small-cap fund Seeks to track performance of the Center for Research in Security Prices (“CRSP”) US Small Cap Index Mid-cap fund Seeks to track performance of the CRSP US Mid Cap Index Large-cap fund Seeks to track performance of the Standard & Poor’s 500 Index International equity fund Seeks to track performance of the FTSE Global All Cap ex US Index Fixed income securities: Short-term bond fund Seeks current income with limited price volatility through investment in primarily high quality bonds with short-term maturities Intermediate-term bond fund Seeks moderate and sustainable level of current income by investing primarily in high quality fixed income securities with maturities from five to ten years Long-term investment grade bond funds Seek high and sustainable current income through investment primarily in long-term investment grade debt securities Other: Short-term investment funds Invest in high quality short-term money market instruments issued by the U.S. Treasury Group annuity contract Earns interest quarterly equal to the effective yield of the 91-day U.S. Treasury bill The expected long-term rate of return on plan assets was determined by combining a review of projected returns, historical returns of portfolios with assets similar to the current portfolios of the union and non-union pension plans and target weightings of each asset classification. Our investment objective for the assets within the pension plans is to earn a return that meets or exceeds the growth of obligations that result from interest and changes in the discount rate, while avoiding excessive risk. Defined diversification goals are set in order to reduce the risk of wide swings in the market value from year to year, or of incurring large losses that may result from concentrated positions. As a result, our plan assets have no significant concentrations of credit risk. Additionally, liquidity risks are minimized because the funds that the plans have invested in are publicly traded. We evaluate risks based on the potential impact to the predictability of contribution requirements, probability of under-funding, expected risk-adjusted returns and investment return volatility. Funds are invested with multiple investment managers. Our liabilities are calculated using rates defined by the Pension Protection Act of 2006. Approximately 70% of the plans’ investments are allocated to fixed-income securities and invested to match the durations of the plans’ short, intermediate and long-term pension liabilities, with the amount invested in each duration reflecting that duration’s proportion of the plans’ liabilities. The remaining approximately 30% of the plans’ investments are allocated to equity securities. The target allocation and actual weighted average asset allocation percentages at December 31, 2020 and 2021 were as follows: 2020 2021 Actual Target Actual Target Equity securities 30% 30% 30% 30% Fixed income securities 68% 67% 67% 70% Other 2% 3% 3% —% As of December 31, 2021, the benefit amounts expected to be paid from plan assets through December 31, 2031 were as follows (in millions): Pension Other 2022 $ 16.2 $ 1.7 2023 $ 18.1 $ 1.5 2024 $ 21.6 $ 1.3 2025 $ 22.4 $ 1.3 2026 $ 27.4 $ 1.2 2027 through 2031 $ 147.9 $ 4.0 Contributions estimated to be paid by us into the plans in 2022 are $37.2 million and $1.7 million for the pension and other postretirement benefit plans, respectively. |
Long-Term Incentive Plan
Long-Term Incentive Plan | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Long-Term Incentive Plan | Long-Term Incentive Plan The compensation committee of our board administers our long-term incentive plan (“LTIP”) covering certain of our employees and the independent directors of our general partner. In April 2021, our compensation committee and our limited partners approved an amendment to the LTIP increasing the number of common units available for issuance from 11.9 million to 13.7 million. The LTIP primarily consists of phantom units. The estimated units remaining available under the LTIP at December 31, 2021 totaled approximately 2.4 million. The awards include: (i) performance-based awards issued to certain officers and other key employees (“performance-based awards”), (ii) time-based awards issued to certain officers and other key employees (“time-based awards,” and together with performance-based awards, “employee awards”) and (iii) awards issued to independent members of our board (“director awards”) that may be deferred and if deferred may be paid in cash. All of the awards include distribution equivalent rights, except non-deferred director awards. The LTIP requires employee awards to be settled in our common units, except the settlement of distribution equivalents, which we pay in cash. As a result, we classify employee awards as equity. Fair value for these awards is determined on the grant date, and we recognize this value as compensation expense ratably over the requisite service period, which is the vesting period of each award. The vesting period for employee awards is generally three years; however, certain awards have been issued with shorter vesting periods while others have vesting periods of up to four years. Because employee awards contain distribution equivalent rights, the fair value of our employee awards is based on the closing price of our units on the grant date. Payouts for performance-based awards are subject to the attainment of a financial metric. Additionally, the 2019 performance-based awards, which vested on December 31, 2021, were subject to an adjustment for our total unitholder return (the “TUR adjustment”), and the fair value of these awards was adjusted for the fair value of the TUR adjustment. The TUR adjustment is based on our total unitholder return at the end of the three-year vesting period of the awards in relation to the total unitholder returns of certain peer entities. The financial metric for the performance-based awards is our distributable cash flow per unit excluding commodity-related activities for the last year of the three-year vesting period as compared to established threshold, target and stretch levels. The payouts for the performance-related component of the awards can range from 0%, for results below threshold, up to 200%, for actual results at stretch or above. Payouts related to time-based awards are based solely on the completion of the requisite service period by the employee and contain no provisions that provide for a payout other than the original number of units awarded and the associated distribution equivalents. Performance-based awards are subject to forfeiture if a participant’s employment is terminated for any reason other than for termination within two years of a change-in-control that occurs on an involuntary basis without cause or on a voluntary basis for good cause, or due to retirement, disability or death prior to the vesting date. These awards can vest early under certain circumstances following a change in control. Time-based awards are subject to forfeiture if a participant’s employment is terminated for any reason other than retirement, death or disability prior to the vesting date, or as the result of certain other employment restrictions. If an employee award recipient retires, dies or becomes disabled prior to the end of the vesting period, the award is prorated based upon months of employment completed during the vesting period, and the award is settled shortly after the end of the vesting period. Compensation expense for our equity awards is calculated as the number of unit awards less forfeitures, multiplied by the grant date fair value of those awards, multiplied by the percentage of the requisite service period completed at each period end, multiplied by the expected payout percentage, less previously-recognized compensation expense. Non-deferred director awards are paid in units valued on the grant date, with compensation expense calculated as the number of units awarded multiplied by the fair value of those units at that date. We classify deferred director awards as liability awards because they may be settled in cash. Because deferred director awards have distribution equivalent rights, the fair value of these awards equals the closing price of our units at the measurement date. Compensation expense for deferred director awards is calculated as the number of units awarded, multiplied by the fair value of those awards on the measurement date, less previously-recognized compensation expense. Non-Vested Unit Awards The following table includes the changes during the current fiscal year in the number of non-vested units that have been granted by the compensation committee. The amounts below do not include adjustments for above-target or below-target performance. Performance-Based Awards Time-Based Awards Total Awards Number of Unit Weighted Average Fair Value Number of Unit Weighted Average Fair Value Number of Unit Weighted Average Fair Value Non-vested units - 1/1/2021 340,164 $ 62.35 353,544 $ 61.07 693,708 $ 61.70 Units granted during 2021 281,823 $ 40.85 301,873 $ 40.99 583,696 $ 40.92 Units vested during 2021 (161,484) $ 63.62 (168,204) $ 60.76 (329,688) $ 62.16 Units forfeited during 2021 (14,578) $ 51.23 (16,699) $ 50.92 (31,277) $ 51.06 Non-vested units - 12/31/21 445,925 $ 48.66 470,514 $ 48.67 916,439 $ 48.67 The table below summarizes the total non-vested unit awards outstanding, including estimated targeted financial performance adjustments, to determine our total equity-based liability accrual. Grant Date Non-Vested Unit Awards Performance Adjustment to Unit Awards Total Unit Award Accrual Vesting Date Unrecognized Compensation Expense (in millions) (a) Performance-based awards: 2020 awards 171,400 (51,420) 119,980 12/31/2022 $ 2.4 2021 awards 274,525 68,631 343,156 12/31/2023 9.3 Time-based awards: 2022 vesting date 178,911 — 178,911 12/31/2022 3.7 2023 vesting date 291,603 — 291,603 12/31/2023 8.3 Total 916,439 17,211 933,650 $ 23.7 (a) Unrecognized compensation expense will be recognized over the remaining vesting period of the awards . Weighted Average Fair Value The weighted average fair value of awards granted during 2019, 2020 and 2021 was as follows: Performance-Based Awards Time-Based Awards Number of Weighted Average Fair Value Number of Unit Weighted Average Fair Value Units granted during 2019 182,834 $ 63.65 195,031 $ 62.91 Units granted during 2020 189,632 $ 61.16 198,450 $ 61.18 Units granted during 2021 281,823 $ 40.85 301,873 $ 40.99 Vested Unit Awards The table below sets forth the numbers and values of units that vested in each of the three years ended December 31, 2021. The vested common units include adjustments for above-target financial and market performance. Vesting Date Vested Fair Value of Unit Awards on Vesting Date (in millions) Intrinsic Value of Unit Awards on Vesting Date (in millions) 12/31/2019 436,629 $31.0 $27.5 12/31/2020 235,127 $15.2 $10.0 12/31/2021 316,336 $19.3 $14.7 Cash Flow Effects of LTIP Settlements The difference between the common units issued to the participants and the total number of unit awards vested primarily represents the tax withholdings associated with the award settlement, which we pay in cash. Settlement Date Number of Common Units Issued, Net of Tax Withholdings Tax Withholdings and Other Cash Payments Employer Taxes (in millions) Total Cash Payments January 2019 199,792 $9.8 $0.9 $10.7 January 2020 275,093 $14.7 $1.3 $16.0 January 2021 150,435 $6.2 $0.7 $6.9 Compensation Expense Summary Equity-based incentive compensation expense for 2019, 2020 and 2021, primarily recorded as G&A expense on our consolidated statements of income, was as follows (in millions): Year Ended December 31, 2019 2020 2021 Performance awards $ 17.9 $ 3.1 $ 11.2 Time-based awards $ 6.1 $ 8.9 $ 10.6 Total $ 24.0 $ 12.0 $ 21.8 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments We use derivative instruments to manage market price risks associated with inventories, interest rates and certain forecasted transactions. For those instruments that qualify for hedge accounting, the accounting treatment depends on their intended use and their designation. We classify derivative financial instruments qualifying for hedge accounting treatment into two categories: (1) cash flow hedges and (2) fair value hedges. We execute cash flow hedges to hedge against the variability in cash flows related to a forecasted transaction and execute fair value hedges to hedge against the changes in the value of a recognized asset or liability. At the inception of a hedged transaction, we document the relationship between the hedging instrument and the hedged item, the risk management objectives and the methods used for assessing and testing hedge effectiveness. We also assess, both at the inception of the hedge and on an on-going basis, whether the derivatives that are used in our hedging transactions are highly effective in offsetting changes in cash flows or fair value of the hedged item. If we determine that a derivative originally designated as a cash flow or fair value hedge is no longer highly effective, we discontinue hedge accounting prospectively and record the change in the fair value of the derivative in current earnings. The changes in fair value of derivative financial instruments that are not designated as hedges for accounting purposes, which we refer to as economic hedges, are included in current earnings. As part of our risk management process, we assess the creditworthiness of the financial and other institutions with which we execute financial derivatives. Such financial instruments involve the risk of non-performance by the counterparty, which could result in material losses to us. Interest Rate Derivatives We periodically enter into interest rate derivatives to hedge the fair value of debt or hedge against variability in interest rates. For interest rate cash flow hedges, we record the unrealized gains or losses as an adjustment to other comprehensive income. The realized gains and losses from our cash flow hedges are recognized into earnings as an adjustment to our periodic interest expense over the life of the related debt issuance. For fair value hedges on long-term debt, we record the unrealized gains or losses as an adjustment to long-term debt, and realized amounts as an adjustment to our periodic interest expense. Adjustments resulting from discontinued hedges continue to be recognized in accordance with their historic hedging relationships. In December 2020, upon issuance of an additional $300.0 million of 3.95% notes due 2050, we terminated and settled treasury lock agreements that we had previously entered into to protect against the variability of interest payments on this anticipated debt issuance for a gain of $1.0 million, which was included in our statements of cash flows as a net receipt on financial derivatives. These agreements were accounted for as cash flow hedges. The gain was recorded to other comprehensive income (loss) and will be recognized into earnings as an adjustment to our periodic interest expense over the term of the life of the associated notes. In May 2020, upon issuance of $500.0 million of 3.25% notes due 2030, we terminated and settled treasury lock agreements that we had previously entered into to protect against the variability of interest payments on this anticipated debt issuance for a loss of $10.4 million, which was included in our statements of cash flows as a net payment on financial derivatives. These agreements were accounted for as cash flow hedges. The loss was recorded to other comprehensive income (loss) and will be recognized into earnings as an adjustment to our periodic interest expense over the term of the life of the associated notes. In August 2019, upon issuance of our $500.0 million of 3.95% notes due 2050, we terminated and settled treasury lock agreements we had previously entered into to protect against the variability of interest payments on this anticipated debt issuance for a loss of $25.3 million, which was included in our statements of cash flows as a net payment on financial derivatives. These agreements were accounted for as cash flow hedges. The loss was recorded to other comprehensive income (loss) and will be recognized into earnings as an adjustment to our periodic interest expense over the life of the associated notes. In January 2019, upon issuance of $500.0 million of 4.85% notes due 2049, we terminated and settled treasury lock agreements that we had previously entered into to protect against the variability of interest payments on this anticipated debt issuance for a loss of $8.0 million, which was included in our statements of cash flows as a net payment on financial derivatives. These agreements were accounted for as cash flow hedges. The loss was recorded to other comprehensive income (loss) and will be recognized into earnings as an adjustment to our periodic interest expense over the life of the associated notes. Commodity Derivatives Our gas liquids 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 and over-the-counter commodity derivatives contracts and forward physical purchase and sale contracts to help manage commodity price changes and mitigate the risk of decline in the product margin realized from our gas liquids blending activities. Further, certain of our other commercial operations and marketing activities involve petroleum products inventories, and we also use derivatives contracts to hedge against price changes for some of these inventories. 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 costs 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 derivative 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 December 31, 2021 were as follows: Type of Contract/ Product Represented by the Contract and Associated Barrels Maturity Dates Commodity derivatives contract - Economic hedges 3.3 million barrels of refined products and crude oil Between January and November 2022 Commodity derivatives contract - Economic hedges 0.6 million barrels of gas liquids Between January and April 2022 Commodity Derivatives Contracts and Deposits Offsets At December 31, 2020 and 2021, we had made margin deposits of $34.2 million and $46.3 million, respectively, for our commodity derivatives contracts with our counterparties, which were recorded as current assets under commodity derivatives deposits on our consolidated balance sheets. We have the right to offset the combined fair values of our open derivatives 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 derivatives contracts separately from the related margin deposits on our consolidated balance sheets. Additionally, we have the right to offset the fair values of our derivatives 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 master netting arrangements are provided below as of December 31, 2020 and 2021 (in millions): 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 Margin Deposit Amounts Not Offset in the Consolidated Balance Sheets Net Asset Amount (1) As of December 31, 2020 $ (21.7) $ 1.2 $ (20.5) $ 34.2 $ 13.7 As of December 31, 2021 $ (22.3) $ 5.1 $ (17.2) $ 46.3 $ 29.1 (1) Amount represents the maximum loss we would incur if all of our counterparties failed to perform on their derivative contracts. Basis Derivative Agreement During 2019, we entered into a basis derivative agreement with a joint venture co-owner’s affiliate, and, contemporaneously, that affiliate entered into an intrastate transportation services agreement with the joint venture. Settlements under the basis derivative agreement are determined based on the basis differential of crude oil prices at different market locations and a notional volume of 30,000 barrels per day. As a result, we account for this agreement as a derivative. The agreement will expire in early 2022. We recognize the changes in fair value of this agreement based on forward price curves for crude oil in West Texas and the Houston Gulf Coast in other operating income (expense) in our consolidated statements of income. The liability for this agreement at December 31, 2020 and 2021, respectively, was $10.2 million and $1.5 million. Impact of Derivatives on Our Financial Statements Comprehensive Income The changes in derivative activity included in AOCL for the years ended December 31, 2019, 2020 and 2021 were as follows (in millions): Year Ended December 31, Derivative Losses Included in AOCL 2019 2020 2021 Beginning balance $ (26.5) $ (49.0) $ (55.0) Net loss on cash flow hedges (25.2) (9.5) — Reclassification of net loss on cash flow hedges to income 2.7 3.5 3.5 Ending balance $ (49.0) $ (55.0) $ (51.5) The following is a summary of the effect on our consolidated statements of income for the years ended December 31, 2019, 2020 and 2021 of derivatives that were designated as cash flow hedges (in millions): Interest Rate Contracts Amount of Loss Recognized in AOCL on Derivatives Location of Loss Reclassified from AOCL into Income Amount of Loss Reclassified from AOCL into Income Year Ended December 31, 2019 $ (25.2) Interest expense $ (2.7) Year Ended December 31, 2020 $ (9.5) Interest expense $ (3.5) Year Ended December 31, 2021 $ — Interest expense $ (3.5) As of December 31, 2021, the net loss estimated to be classified to interest expense over the next twelve months from AOCL is approximately $3.5 million. This amount relates to the amortization of losses on interest rate contracts over the life of the related debt instruments. The following table provides a summary of the effect on our consolidated statements of income for the years ended December 31, 2019, 2020 and 2021 of derivatives that were not designated as hedging instruments (in millions): Amount of Gain (Loss) Year Ended December 31, Derivative Instrument Location of Gain (Loss) 2019 2020 2021 Commodity derivatives contracts Product sales revenue $ (66.5) $ 53.2 $ (143.2) Commodity derivatives contracts Cost of product sales (0.2) 0.3 21.1 Basis derivative agreement Other operating income (expense) (10.2) (4.3) (5.6) Total $ (76.9) $ 49.2 $ (127.7) 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 not designated as hedging instruments as of December 31, 2020 and 2021 (in millions): December 31, 2020 Asset Derivatives Liability Derivatives Derivative Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value Commodity derivatives contracts Commodity derivatives contracts, net $ 0.1 Commodity derivatives contracts, net $ 21.7 Commodity derivatives contracts Other noncurrent assets 1.1 Other noncurrent liabilities — Basis derivative agreement Other current assets — Other current liabilities 8.8 Basis derivative agreement Other noncurrent assets — Other noncurrent liabilities 1.4 Total $ 1.2 Total $ 31.9 December 31, 2021 Asset Derivatives Liability Derivatives Derivative Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value Commodity derivatives contracts Commodity derivatives contracts, net $ 5.1 Commodity derivatives contracts, net $ 22.3 Basis derivative agreement Other current assets — Other current liabilities 1.5 Total $ 5.1 Total $ 23.8 |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures 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: • Commodity derivatives contracts . These include exchange-traded and over-the-counter derivative contracts related to petroleum products. These contracts are carried at fair value on our consolidated balance sheets. The exchange-traded contracts are valued based on quoted prices in active markets, while the over-the-counter contracts are valued based on observable market data inputs including published commodity pricing data. See Note 14 – Derivative Financial Instruments for further disclosures regarding these contracts. • Basis derivative agreement. During 2019, we entered into a basis derivative agreement with a joint venture co-owner’s affiliate, and, contemporaneously, that affiliate entered into an intrastate transportation services agreement with the joint venture. Settlements under the basis derivative agreement are determined based on the basis differential of crude oil prices at different market locations and a notional volume of 30,000 barrels per day (see Note 14 - Derivative Financial Instruments for further disclosures regarding this agreement). The fair value of this derivative was calculated based on observable market data inputs, including published commodity pricing data and market interest rates. The key inputs in the fair value calculation include the forward price curves for crude oil, the implied forward correlation in crude oil prices between West Texas and the Houston Gulf Coast, and the implied forward volatility for crude oil futures contracts. • Long-term receivables. These include payments receivable under a sales-type leasing arrangement and cost reimbursement agreements. 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. • Contractual obligations. At December 31, 2021, these primarily included a long-term contractual obligation we entered into in connection with the 2020 sale of three marine terminals to a subsidiary of Buckeye Partners, L.P. (“Buckeye”). This obligation requires us to perform certain environmental remediation work on Buckeye’s behalf at the New Haven, Connecticut terminal. This contractual obligation was recorded at fair value on our consolidated balance sheets upon initial recognition and was calculated using our best estimate of potential outcome scenarios to determine our liability for the remediation costs required in this agreement. • Debt. The fair value of our publicly traded notes was based on the prices of those notes at December 31, 2020 and 2021; 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, 2020 and 2021, based on the three levels established by ASC 820; Fair Value Measurements and Disclosures (in millions): Fair Value Measurements as of Assets (Liabilities) Carrying Amount Fair Value Quoted Prices in Significant Other Significant Commodity derivatives contracts $ (20.5) $ (20.5) $ (20.5) $ — $ — Basis derivative agreement $ (10.2) $ (10.2) $ — $ (10.2) $ — Long-term receivables $ 22.8 $ 22.8 $ — $ — $ 22.8 Contractual obligations $ (11.2) $ (11.2) $ — $ — $ (11.2) Debt $ (4,978.7) $ (5,880.9) $ — $ (5,880.9) $ — Fair Value Measurements as of Assets (Liabilities) Carrying Amount Fair Value Quoted Prices in Significant Other Significant Commodity derivatives contracts $ (17.2) $ (17.2) $ (18.6) $ 1.4 $ — Basis derivative agreement $ (1.5) $ (1.5) $ — $ (1.5) $ — Long-term receivables $ 10.1 $ 10.1 $ — $ — $ 10.1 Contractual obligations $ (9.8) $ (9.8) $ — $ — $ (9.8) Debt $ (5,088.8) $ (5,711.5) $ — $ (5,711.5) $ — |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Certain conditions may exist as of the date our consolidated financial statements are issued that could result in a loss to us, but which will only be resolved when one or more future events occur or fail to occur. Our management assesses such contingent liabilities, which inherently involves significant judgment. In assessing loss contingencies related to legal proceedings that are pending against us or for unasserted claims that may result in proceedings, our management, with input from legal counsel, evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. Environmental expenditures are charged to operating expense or capitalized based on the nature of the expenditures. We record environmental liabilities independently of any potential claim for recovery. Accruals related to environmental matters are generally determined based on site-specific plans for remediation, taking into account currently available facts, existing technologies and presently enacted laws and regulations. Accruals for environmental matters reflect our prior remediation experience and include an estimate for costs such as fees paid to contractors, outside engineering and consulting firms. Accruals for estimated losses from environmental remediation obligations generally are recognized no later than completion of the remediation feasibility study. Such accruals are adjusted as further information develops or circumstances change. The determination of the accrual amounts recorded for environmental liabilities includes significant judgments and assumptions made by management. The use of alternate judgments and assumptions could result in the recognition of different levels of environmental remediation costs. We maintain specific insurance coverage, which may cover all or portions of certain environmental expenditures less a deductible. We recognize receivables in cases where we consider the realization of reimbursements of remediation costs as probable. We recognize liabilities for other commitments and contingencies when, after analyzing the available information, we determine it is probable that an asset has been impaired, or that a liability has been incurred and the amount of impairment or loss can be reasonably estimated. When we can estimate a range of probable loss, we accrue the most likely amount within that range, or if no amount is more likely than another, we accrue the minimum of the range of probable loss. We expense legal costs associated with loss contingencies as incurred. 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”) are infringing patents relating to butane blending at the Powder Springs facility located in Powder Springs, Georgia. Sunoco subsequently submitted pleadings alleging that Magellan is also infringing various patents related to butane blending at eight Magellan facilities, in addition to Powder Springs. Sunoco sought monetary damages, attorneys’ fees and a permanent injunction enjoining Powder Springs from infringing the subject patents. We have vigorously defended against all claims asserted by Sunoco. A jury trial concluded on December 6, 2021, at which the jury found Magellan willfully infringed the three patents in suit and awarded damages of approximately $9.4 million against Magellan relating to the eight Magellan facilities at issue. The jury further found that Powder Springs willfully infringed the one patent at issue relating to the Powder Springs facility and awarded approximately $2.8 million against Magellan and Powder Springs relating to that facility. Sunoco requested that the the court enhance the damages award based upon the jury’s finding of willfulness, and that the court award additional damages and pre- and post-judgment interest. Magellan and Powder Springs have filed post-trial pleadings opposing Sunoco’s request for enhanced damages and to otherwise challenge the finding of liability and willfulness. The final determination of the trial court is subject to potential future appeals by either or both parties to the litigation.The amounts we have accrued in relation to the claims are immaterial, and although it is not possible to predict the ultimate outcome, we believe the final 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 $13.5 million and $9.8 million at December 31, 2020 and December 31, 2021, 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 included in operating expenses on our consolidated statements of income. Environmental expenses were $3.8 million, $3.4 million and $3.2 million for the years ended December 31, 2019, 2020 and 2021, respectively. Other In first quarter 2020, we entered into a long-term contractual obligation in connection with the sale of three marine terminals to Buckeye. This obligation requires us to perform certain environmental remediation work on Buckeye’s behalf in New Haven, Connecticut. At December 31, 2020 our consolidated balance sheets included a current liability of $0.6 million and a noncurrent liability of $10.2 million, and as of December 31, 2021, our consolidated balance sheets reflected a current liability of $0.5 million and a noncurrent liability of $8.9 million, reflecting the fair values of these obligations. We have entered into an agreement to guarantee our 50% pro rata share, up to $25.0 million, of contractual obligations under Powder Springs’ credit facility. As of December 31, 2020 and 2021, 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 and the non-controlled entities in which we own an interest are a party to various other claims, legal actions and complaints. 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 business. |
Concentration of Risks
Concentration of Risks | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
Concentration of Risks | Concentration of Risks We transport, store and distribute petroleum products for refiners, producers, marketers, traders and end users of those products. Our revenue producing activities are concentrated in the central U.S. Concentrations of customers may affect our overall credit risk as our customers may be similarly affected by changes in economic, regulatory or other factors. We generally secure transportation and storage revenue with warehouseman’s liens. We periodically evaluate the financial condition and creditworthiness of our customers and require additional security as we deem necessary. As of December 31, 2021, we had 1,715 employees, primarily concentrated in the central and Gulf Coast regions of the U.S. There were 854 employees assigned to our refined products segment, 253 employees assigned to our crude oil segment and 526 employees assigned to provide G&A services. We also had 82 employees assigned to our discontinued operations. Approximately 13% of our employees are represented by the United Steel Workers and covered by a collective bargaining agreement that expired at the end of January 2022. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Stacy Methvin is an independent member of our general partner’s board of directors and also serves as a director of one of our customers. We received tariff, terminalling and other ancillary revenue from this customer of $29.6 million, $37.4 million and $65.2 million for the periods ending December 31, 2019, 2020 and 2021, respectively. We recorded a receivable of $3.9 million and $5.4 million from this customer at December 31, 2020 and 2021, respectively. We occasionally have transmix settlements with this customer as well. Additionally, we received storage and other miscellaneous revenue of $0.5 million for the period ending December 31, 2020 and $0.3 million for the period ending December 31, 2021 from a subsidiary of a separate company for which Stacy Methvin served as a director until August 31, 2021. See Note 7 – Investments in Non-Controlled Entities and Note 11 – Leases for a discussion of transactions with our joint ventures. |
Partners' Capital and Distribut
Partners' Capital and Distributions | 12 Months Ended |
Dec. 31, 2021 | |
Partners' Capital Notes [Abstract] | |
Partners' Capital and Distributions | Partners’ Capital and Distributions Partners’ Capital Our board authorized the repurchase of up to $1.5 billion of our common units through 2024. The timing, price and actual number of common units repurchased will depend on a number of factors including our expected expansion capital spending needs, excess cash available, balance sheet metrics, legal and regulatory requirements, market conditions and the trading price of our common units. The repurchase program does not obligate us to acquire any particular amount of common units, and the repurchase program may be suspended or discontinued at any time. The following table details the changes in the number of our common units outstanding from January 1, 2019 through December 31, 2021: Common units outstanding on January 1, 2019 228,195,160 February 2019—Settlement of employee LTIP awards 199,792 During 2019—Other (1) 8,476 Common units outstanding on December 31, 2019 228,403,428 Units repurchased during 2020 (5,568,260) February 2020—Settlement of employee LTIP awards 275,093 During 2020—Other (1) 9,550 Common units outstanding on December 31, 2020 223,119,811 Units repurchased during 2021 (10,894,828) January 2021—Settlement of employee LTIP awards 150,435 During 2021—Other (1) 12,572 Common units outstanding on December 31, 2021 212,387,990 (1) Common units issued to settle the equity-based retainer paid to independent directors of our general partner. Our partnership agreement allows us to issue additional partnership securities for any partnership purpose at any time and from time to time for consideration and on terms and conditions as our general partner determines, all without approval by our unitholders. Common unitholders have the following rights, among others: • right to receive distributions of our available cash within 45 days after the end of each quarter; • right to elect the members of our board; • right to remove Magellan GP, LLC as our general partner upon a 100% vote of outstanding unitholders; • right to transfer common unit ownership to substitute common unitholders; • right to receive an annual report, containing audited financial statements and a report on those financial statements by our independent public accountants, within 120 days after the close of the fiscal year end; • right to receive information reasonably required for tax reporting purposes within 90 days after the close of the calendar year; • right to vote according to the unitholder’s percentage interest in us at any meeting that may be called by our general partner; and • right to inspect our books and records at the unitholder’s own expense. In the event of liquidation, we would distribute all property and cash in excess of that required to discharge all liabilities to the unitholders in proportion to the positive balances in their respective capital accounts. The common unitholders’ liability is generally limited to their investment. Distributions Distributions we paid during 2019, 2020 and 2021 were as follows (in millions, except per unit amounts): Payment Date Per Unit Total Distribution 2/14/2019 $ 0.9975 $ 227.8 5/15/2019 1.0050 229.5 8/14/2019 1.0125 231.3 11/14/2019 1.0200 233.0 Total $ 4.0350 $ 921.6 2/14/2020 $ 1.0275 $ 234.8 5/15/2020 1.0275 231.2 8/14/2020 1.0275 231.2 11/13/2020 1.0275 229.9 Total $ 4.1100 $ 927.1 2/12/2021 $ 1.0275 $ 229.4 5/14/2021 1.0275 229.0 8/13/2021 1.0275 226.6 11/12/2021 1.0375 221.4 Total $ 4.1200 $ 906.4 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Recognizable events No recognizable events have occurred subsequent to December 31, 2021. Non-recognizable events On January 25, 2022, Michael N. Mears notified the partnership of his decision to retire from his positions of President, Chief Executive Officer and Chairman of the Board of Directors effective on April 30, 2022. Our board elected Barry R. Pearl, currently the independent Lead Director, as Chairman of the Board and also elected Aaron L. Milford as Chief Executive Officer and President effective May 1, 2022. Mr. Milford currently serves as Chief Operating Officer and has served in such capacity since 2019. He served as Senior Vice President and Chief Financial Officer from 2015 to 2019 and various positions of increasing responsibility since joining us and our predecessor in 1995. Approximately 13% of our employees are represented by the United Steel Workers and covered by a collective bargaining agreement that expired at the end of January 2022. We are operating under a 24-hour rolling extension of this agreement while negotiations for a new agreement continue. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation. Our consolidated financial statements include our refined products and crude oil operating segments. We consolidate all entities in which we have a controlling ownership interest. We apply the equity method of accounting to investments in entities over which we exercise significant influence but do not control. We eliminate all intercompany transactions. |
Reclassifications | Reclassifications. Certain prior period amounts have been reclassified to conform with the current period’s presentation, including amounts related to our discontinued operations. |
Use of Estimates | Use of Estimates. The preparation of our consolidated financial statements in conformity with U.S. generally accepted accounting principles (“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. |
Cash Equivalents | Cash Equivalents. Cash and cash equivalents include demand and time deposits and funds that own highly marketable securities with original maturities of three months or less when acquired. We periodically assess the financial condition of the institutions where we hold these funds, and at December 31, 2020 and 2021, we believed our credit risk relative to these funds was minimal. |
Restricted Cash | Restricted Cash. Restricted cash includes cash that we are contractually required to use 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. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts. Accounts receivable represent valid claims against customers. We recognize accounts receivable when we sell products or render services and collection of the receivable is probable. We extend credit terms to certain customers after a review of various credit indicators. We establish an allowance for doubtful accounts using an expected credit loss approach and evaluate reserves no less than quarterly to determine their adequacy. Judgments relative to at-risk accounts include the customers’ current financial condition, the customers’ historical relationship with us and current and projected economic conditions. We write off accounts receivable when we deem an account uncollectible. |
Product Overages and Shortages | Product Overages and Shortages. Each period end we measure the volume of each type of product in our pipeline systems and terminals, which is compared to the volumes of our customers’ inventories (as adjusted for tender deductions). To the extent the product volumes in our pipeline systems and terminals exceed the volumes of our customers’ book inventories, we recognize a gain from the product overage and increase our product inventories. To the extent the product in our pipeline systems and terminals is less than our customers’ book inventories, we |
Income Taxes | Income Taxes. We are a partnership for income tax purposes and therefore are not subject to federal or state income taxes for most of the states in which we operate. The tax on our net income is borne by our unitholders through allocation to them of their share of our taxable income. Net income for financial statement purposes may differ significantly from taxable income allocated to unitholders because of differences between the tax basis and financial reporting basis of assets and liabilities and the taxable income allocation requirements under our partnership agreement. The aggregate difference in the basis of our net assets for financial and tax reporting purposes cannot be readily determined because information regarding each unitholder’s tax attributes is not available to us. The amounts recognized as provision for income taxes in our consolidated statements of income are primarily comprised of partnership-level taxes levied by the state of Texas. This tax is based on revenues less direct costs of sale for our assets apportioned to the state of Texas. |
Net Income Per Unit | Net Income Per Unit. We calculate basic net income per common unit for each period by dividing net income by the weighted average number of common units outstanding. The difference between our actual common units outstanding and our weighted average number of common units outstanding used to calculate net income per common unit is due to the impact of: (i) the phantom units issued to our independent directors, which are included in the calculation of basic and diluted weighted average units outstanding and (ii) the weighted average effect of units actually issued or repurchased during a period. The difference between the weighted average number of common units outstanding used for basic and diluted net income per unit calculations on our consolidated statements of income is primarily the dilutive effect of phantom unit awards granted pursuant to our long-term incentive plan, which have not yet vested in periods where contingent performance metrics have been met. |
New Accounting Pronouncements | New Accounting Pronouncements We evaluate new Accounting Standards Codifications (“ASC”) and updates issued by the Financial Accounting Standards Board on an ongoing basis. There are no new accounting pronouncements that we anticipate will have a material impact on our financial statements. |
Revenue | 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 on a net basis. We recognize pipeline transportation revenue for crude oil 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 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 related rules and orders. FERC regulation requires that interstate pipeline rates be filed with the FERC, be posted publicly, be “just and reasonable” and not be unduly discriminatory. The rates on approximately 30% 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 liquid pipeline companies may establish rates by obtaining authority to charge market-based rates in competitive markets or by negotiation with unaffiliated shippers. Approximately 70% 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. |
Property, Plant and Equipment | Property, plant and equipment consists primarily of pipeline, pipeline-related equipment, storage tanks and processing equipment. We state property, plant and equipment at cost except for certain acquired assets recorded at fair value on their respective acquisition dates and impaired assets. We record impaired assets at fair value on the last impairment evaluation date for which an adjustment was required. We assign asset lives based on reasonable estimates when we place an asset into service. Subsequent events could cause us to change our estimates, which would affect the future calculation of depreciation expense. When we sell or retire property, plant and equipment, we remove its carrying value and the related accumulated depreciation from our accounts and record any associated gains or losses on our consolidated statements of income in the period of sale or disposition. We capitalize expenditures to replace existing assets and retire the replaced assets. We capitalize expenditures when they extend the useful life, increase the productivity or capacity, or improve the safety or efficiency of the asset. We capitalize direct project costs such as labor and materials as incurred. Indirect project costs, such as overhead, are capitalized based on a percentage of direct labor charged to the respective capital project. We charge expenditures for maintenance, repairs and minor replacements to operating expense in the period incurred. |
Impairment of Long-Lived Assets | Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. In reviewing for impairment, the carrying value of such assets is compared to the estimated undiscounted future cash flows expected from the use of the assets and their eventual disposition. If such cash flows are not sufficient to support the asset’s recorded value, an impairment charge is recognized to reduce the carrying value of the long-lived asset to its estimated fair value. The determination of future cash flows as well as the estimated fair value of long-lived assets involves significant estimates on the part of management. |
Goodwill | We record the excess of purchase price over the fair value of the tangible and identifiable intangible assets acquired and liabilities assumed in a business acquisition (or combination) as goodwill. The goodwill relating to each of our reporting units is tested for impairment annually as well as when an event or change in circumstances indicates an impairment may have occurred.For purposes of performing the impairment test for goodwill, our reporting units are our refined products and crude oil segments. |
Other Intangibles | Other intangible assets with finite lives are amortized over their estimated useful lives of 7 years up to 30 years. The weighted average asset life of our other intangible assets at December 31, 2021 was approximately 16 years. We adjust the useful lives of our other intangible assets if events or circumstances indicate there has been a change in the remaining useful lives. We eliminate from our balance sheets the gross carrying amount and the related accumulated amortization for any fully amortized intangibles in the year they are fully amortized. |
Investments in Non-Controlled Entities | We account for interests in affiliates that we do not control using the equity method of accounting. Under this method, an investment is recorded at our acquisition cost or capital contributions, as adjusted by contractual terms, plus equity in earnings or losses since acquisition or formation, plus interest capitalized, less distributions received and amortization of interest capitalized and excess net investment. Excess net investment is the amount by which our investment in a non-controlled entity exceeded our proportionate share of the book value of the net assets of that investment. We amortize excess net investment over the weighted average depreciable asset lives of the equity investee. Our unamortized excess net investment was $33.0 million and $32.0 million at December 31, 2020 and 2021, respectively. The amount of unamortized excess investment is primarily related to our investment in BridgeTex. We evaluate equity method investments for impairment whenever events or circumstances indicate that there is an other-than-temporary loss in value of the investment. In the event that we determine that the loss in value of an investment is other-than-temporary, we would record a charge to earnings to adjust the carrying value to fair value. We recognized no equity investment impairments during 2019, 2020 and 2021. |
Inventory | stated and relieved at the lower of average cost or net realizable value.Inventory |
Lessee and Lessor Arrangements | We have both lessee and lessor arrangements. Our leases are evaluated at inception or at any subsequent modification. Depending on the terms, leases are classified as either operating or finance leases if we are the lessee, or as operating, sales-type or direct financing leases if we are the lessor, as appropriate under ASC 842, Leases . Our lessee arrangements primarily include a terminalling and storage contract where we have exclusive use of dedicated tankage, leased pipelines and office buildings. Our lessor arrangements include pipeline capacity and storage contracts and our condensate splitter tolling agreement that qualify as operating leases under ASC 842. In addition, we have a long-term throughput and deficiency agreement with a customer that is being accounted for as a sales-type lease under ASC 842. In accordance with ASC 842, we have made an accounting policy election to not apply the standard to lessee arrangements with a term of one year or less and no purchase option that is reasonably certain of exercise. We will continue to account for these short-term arrangements by recognizing payments and expenses as incurred, without recording a lease liability and right-of-use asset. We have also made an accounting policy election for both our lessee and lessor arrangements to combine lease and non-lease components. This election is applied to all of our lease arrangements as our non-lease components do not result in significant timing differences in the recognition of rental expenses or income. |
Operating Leases – Lessee | We recognize a lease liability for each lease based on the present value of remaining minimum fixed rental payments (which includes payments under any renewal option that we are reasonably certain to exercise), using a discount rate that approximates the rate of interest we would have to pay to borrow on a collateralized basis over a similar term. We also recognize a right-of-use asset for each lease, valued at the lease liability, adjusted for prepaid or accrued rent balances existing at the time of initial recognition. The lease liability and right-of-use asset are reduced over the term of the lease as payments are made and the assets are used. Related Party Operating Lease . We entered into a long-term terminalling and storage contract with Seabrook for exclusive use of dedicated tankage that provides our customers with crude oil storage capacity and dock access for crude oil imports and exports on the Texas Gulf Coast. |
Employee Benefit Plans | Our pension and postretirement benefit liabilities represent the funded status of the present value of benefit obligations of our employee benefit plans. We develop pension, postretirement medical and life benefit costs from third-party actuarial valuations. We establish actuarial assumptions to anticipate future events and use those assumptions when calculating the expense and liabilities related to these plans. These factors include assumptions management makes concerning expected investment return on plan assets, discount rates, health care costs trend rates, turnover rates and rates of future compensation increases, among others. In addition, we use subjective factors such as withdrawal and mortality rates to develop actuarial valuations. Management reviews and updates these assumptions on an annual basis. The actuarial assumptions that we use may differ from actual results due to changing market rates or other factors. These differences could affect the amount of pension and postretirement medical and life benefit expense we will recognize in future periods. |
Long-Term Incentive Plan | The compensation committee of our board administers our long-term incentive plan (“LTIP”) covering certain of our employees and the independent directors of our general partner. In April 2021, our compensation committee and our limited partners approved an amendment to the LTIP increasing the number of common units available for issuance from 11.9 million to 13.7 million. The LTIP primarily consists of phantom units. The estimated units remaining available under the LTIP at December 31, 2021 totaled approximately 2.4 million. The awards include: (i) performance-based awards issued to certain officers and other key employees (“performance-based awards”), (ii) time-based awards issued to certain officers and other key employees (“time-based awards,” and together with performance-based awards, “employee awards”) and (iii) awards issued to independent members of our board (“director awards”) that may be deferred and if deferred may be paid in cash. All of the awards include distribution equivalent rights, except non-deferred director awards. The LTIP requires employee awards to be settled in our common units, except the settlement of distribution equivalents, which we pay in cash. As a result, we classify employee awards as equity. Fair value for these awards is determined on the grant date, and we recognize this value as compensation expense ratably over the requisite service period, which is the vesting period of each award. The vesting period for employee awards is generally three years; however, certain awards have been issued with shorter vesting periods while others have vesting periods of up to four years. Because employee awards contain distribution equivalent rights, the fair value of our employee awards is based on the closing price of our units on the grant date. Payouts for performance-based awards are subject to the attainment of a financial metric. Additionally, the 2019 performance-based awards, which vested on December 31, 2021, were subject to an adjustment for our total unitholder return (the “TUR adjustment”), and the fair value of these awards was adjusted for the fair value of the TUR adjustment. The TUR adjustment is based on our total unitholder return at the end of the three-year vesting period of the awards in relation to the total unitholder returns of certain peer entities. The financial metric for the performance-based awards is our distributable cash flow per unit excluding commodity-related activities for the last year of the three-year vesting period as compared to established threshold, target and stretch levels. The payouts for the performance-related component of the awards can range from 0%, for results below threshold, up to 200%, for actual results at stretch or above. Payouts related to time-based awards are based solely on the completion of the requisite service period by the employee and contain no provisions that provide for a payout other than the original number of units awarded and the associated distribution equivalents. Performance-based awards are subject to forfeiture if a participant’s employment is terminated for any reason other than for termination within two years of a change-in-control that occurs on an involuntary basis without cause or on a voluntary basis for good cause, or due to retirement, disability or death prior to the vesting date. These awards can vest early under certain circumstances following a change in control. Time-based awards are subject to forfeiture if a participant’s employment is terminated for any reason other than retirement, death or disability prior to the vesting date, or as the result of certain other employment restrictions. If an employee award recipient retires, dies or becomes disabled prior to the end of the vesting period, the award is prorated based upon months of employment completed during the vesting period, and the award is settled shortly after the end of the vesting period. Compensation expense for our equity awards is calculated as the number of unit awards less forfeitures, multiplied by the grant date fair value of those awards, multiplied by the percentage of the requisite service period completed at each period end, multiplied by the expected payout percentage, less previously-recognized compensation expense. |
Derivative Financial Instruments | We use derivative instruments to manage market price risks associated with inventories, interest rates and certain forecasted transactions. For those instruments that qualify for hedge accounting, the accounting treatment depends on their intended use and their designation. We classify derivative financial instruments qualifying for hedge accounting treatment into two categories: (1) cash flow hedges and (2) fair value hedges. We execute cash flow hedges to hedge against the variability in cash flows related to a forecasted transaction and execute fair value hedges to hedge against the changes in the value of a recognized asset or liability. At the inception of a hedged transaction, we document the relationship between the hedging instrument and the hedged item, the risk management objectives and the methods used for assessing and testing hedge effectiveness. We also assess, both at the inception of the hedge and on an on-going basis, whether the derivatives that are used in our hedging transactions are highly effective in offsetting changes in cash flows or fair value of the hedged item. If we determine that a derivative originally designated as a cash flow or fair value hedge is no longer highly effective, we discontinue hedge accounting prospectively and record the change in the fair value of the derivative in current earnings. The changes in fair value of derivative financial instruments that are not designated as hedges for accounting purposes, which we refer to as economic hedges, are included in current earnings. As part of our risk management process, we assess the creditworthiness of the financial and other institutions with which we execute financial derivatives. Such financial instruments involve the risk of non-performance by the counterparty, which could result in material losses to us. |
Commitments and Contingencies | Certain conditions may exist as of the date our consolidated financial statements are issued that could result in a loss to us, but which will only be resolved when one or more future events occur or fail to occur. Our management assesses such contingent liabilities, which inherently involves significant judgment. In assessing loss contingencies related to legal proceedings that are pending against us or for unasserted claims that may result in proceedings, our management, with input from legal counsel, evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. Environmental expenditures are charged to operating expense or capitalized based on the nature of the expenditures. We record environmental liabilities independently of any potential claim for recovery. Accruals related to environmental matters are generally determined based on site-specific plans for remediation, taking into account currently available facts, existing technologies and presently enacted laws and regulations. Accruals for environmental matters reflect our prior remediation experience and include an estimate for costs such as fees paid to contractors, outside engineering and consulting firms. Accruals for estimated losses from environmental remediation obligations generally are recognized no later than completion of the remediation feasibility study. Such accruals are adjusted as further information develops or circumstances change. The determination of the accrual amounts recorded for environmental liabilities includes significant judgments and assumptions made by management. The use of alternate judgments and assumptions could result in the recognition of different levels of environmental remediation costs. We maintain specific insurance coverage, which may cover all or portions of certain environmental expenditures less a deductible. We recognize receivables in cases where we consider the realization of reimbursements of remediation costs as probable. |
Discontinued Operations and A_2
Discontinued Operations and Assets Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The following table provides the summarized results that have been reclassified from continuing operations to discontinued operations on the consolidated statements of income for the years ended December 31, 2019, 2020 and 2021 (in millions): Year Ended December 31, 2019 2020 2021 Transportation and terminals revenue $ 56.8 $ 51.4 $ 53.3 Product sales revenue 70.3 54.2 83.7 Total revenue 127.1 105.6 137.0 Costs and expenses: Operating 17.9 13.4 11.2 Cost of product sales 58.5 45.5 66.5 Depreciation, amortization and impairment 15.4 15.6 7.1 General and administrative 2.5 2.2 2.5 Total costs and expenses 94.3 76.7 87.3 Income from discontinued operations $ 32.8 $ 28.9 $ 49.7 The following table provides the summarized assets and liabilities classified as held for sale on the consolidated balance sheets as of December 31, 2020 and 2021 (in millions): Year Ended December 31, 2020 2021 Assets: Trade accounts receivable $ 5.6 $ 6.3 Inventory 9.2 17.0 Net property, plant and equipment 274.9 272.0 Goodwill 2.7 2.7 Other assets 0.3 1.5 Total assets classified as held for sale $ 292.7 $ 299.5 Liabilities: Accounts payable $ 2.0 $ 3.7 Accrued product liabilities 4.0 8.4 Other liabilities 3.9 3.7 Total liabilities classified as held for sale $ 9.9 $ 15.8 |
Segment Disclosures (Tables)
Segment Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting Information by Segment | Year Ended December 31, 2019 (in millions) Refined Products Crude Oil Intersegment Total Transportation and terminals revenue $ 1,299.0 $ 620.3 $ (5.4) $ 1,913.9 Product sales revenue 637.5 28.3 — 665.8 Affiliate management fee revenue 6.7 14.5 — 21.2 Total revenue 1,943.2 663.1 (5.4) 2,600.9 Operating expense 454.0 173.3 (10.9) 616.4 Cost of product sales 532.8 28.1 — 560.9 Other operating (income) expense (10.2) 7.2 — (3.0) Earnings of non-controlled entities (8.1) (160.9) — (169.0) Operating margin 974.7 615.4 5.5 1,595.6 Depreciation, amortization and impairment expense 158.7 66.5 5.5 230.7 G&A expense 138.3 55.9 — 194.2 Operating profit $ 677.7 $ 493.0 $ — $ 1,170.7 Additions to long-lived assets $ 785.1 $ 74.2 $ 859.3 As of December 31, 2019 (in millions) Segment assets $ 5,116.4 $ 2,894.7 $ 8,011.1 Assets held for sale 295.5 Corporate assets 131.1 Total assets $ 8,437.7 Goodwill $ 38.5 $ 12.1 $ 50.6 Investments in non-controlled entities $ 422.4 $ 818.2 $ 1,240.6 Year Ended December 31, 2020 (in millions) Refined Products Crude Oil Intersegment Total Transportation and terminals revenue $ 1,190.4 $ 559.5 $ (6.6) $ 1,743.3 Product sales revenue 524.4 33.1 — 557.5 Affiliate management fee revenue 6.3 14.9 — 21.2 Total revenue 1,721.1 607.5 (6.6) 2,322.0 Operating expense 411.8 189.2 (13.2) 587.8 Cost of product sales 425.8 42.4 — 468.2 Other operating (income) expense (3.2) 3.1 — (0.1) Earnings of non-controlled entities (32.5) (120.8) — (153.3) Operating margin 919.2 493.6 6.6 1,419.4 Depreciation, amortization and impairment expense 159.9 76.6 6.6 243.1 G&A expense 123.5 47.7 — 171.2 Operating profit $ 635.8 $ 369.3 $ — $ 1,005.1 Additions to long-lived assets $ 277.5 $ 56.4 $ 333.9 As of December 31, 2020 (in millions) Segment assets $ 4,977.0 $ 2,836.9 $ 7,813.9 Assets held for sale 292.7 Corporate assets 90.4 Total assets $ 8,197.0 Goodwill $ 38.0 $ 12.1 $ 50.1 Investments in non-controlled entities $ 429.2 $ 784.7 $ 1,213.9 Year Ended December 31, 2021 (in millions) Refined Products Crude Oil Intersegment Total Transportation and terminals revenue $ 1,338.5 $ 466.2 $ (5.8) $ 1,798.9 Product sales revenue 763.9 149.1 — 913.0 Affiliate management fee revenue 6.4 14.8 — 21.2 Total revenue 2,108.8 630.1 (5.8) 2,733.1 Operating expense 416.7 165.4 (12.4) 569.7 Cost of product sales 630.1 149.9 — 780.0 Other operating (income) expense (6.9) 4.1 — (2.8) Earnings of non-controlled entities (34.4) (120.0) — (154.4) Operating margin 1,103.3 430.7 6.6 1,540.6 Depreciation, amortization and impairment expense 153.9 67.4 6.6 227.9 G&A expense 147.8 58.5 — 206.3 Operating profit $ 801.6 $ 304.8 $ — $ 1,106.4 Additions to long-lived assets $ 88.9 $ 41.1 $ 130.0 As of December 31, 2021 (in millions) Segment assets $ 4,880.0 $ 2,780.7 $ 7,660.7 Assets held for sale 299.5 Corporate assets 69.8 Total assets $ 8,030.0 Goodwill $ 38.0 $ 12.1 $ 50.1 Investments in non-controlled entities $ 232.8 $ 748.0 $ 980.8 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables provide details of our revenue disaggregated by key activities that comprise our performance obligations by operating segment (in millions): Year Ended December 31, 2019 Refined Products Crude Oil Intersegment Eliminations Total Transportation $ 787.7 $ 381.6 $ — $ 1,169.3 Terminalling 139.9 17.8 — 157.7 Storage 214.9 119.3 (5.4) 328.8 Ancillary services 128.6 28.4 — 157.0 Lease revenue 27.9 73.2 — 101.1 Transportation and terminals revenue 1,299.0 620.3 (5.4) 1,913.9 Product sales revenue 637.5 28.3 — 665.8 Affiliate management fee revenue 6.7 14.5 — 21.2 Total revenue 1,943.2 663.1 (5.4) 2,600.9 Revenue not under the guidance of ASC 606, Revenue from Contracts with Customers: Lease revenue (27.9) (73.2) — (101.1) (Gains) losses from futures contracts included in product sales revenue 63.5 3.0 — 66.5 Affiliate management fee revenue (6.7) (14.5) — (21.2) Total revenue from contracts with customers under ASC 606 $ 1,972.1 $ 578.4 $ (5.4) $ 2,545.1 Year Ended December 31, 2020 Refined Products Crude Oil Intersegment Eliminations Total Transportation $ 742.9 $ 305.4 $ — $ 1,048.3 Terminalling 109.6 21.5 — 131.1 Storage 199.3 129.0 (6.6) 321.7 Ancillary services 114.9 26.9 — 141.8 Lease revenue 23.7 76.7 — 100.4 Transportation and terminals revenue 1,190.4 559.5 (6.6) 1,743.3 Product sales revenue 524.4 33.1 — 557.5 Affiliate management fee revenue 6.3 14.9 — 21.2 Total revenue 1,721.1 607.5 (6.6) 2,322.0 Revenue not under the guidance of ASC 606, Revenue from Contracts with Customers: Lease revenue (23.7) (76.7) — (100.4) (Gains) losses from futures contracts included in product sales revenue (56.8) 3.6 — (53.2) Affiliate management fee revenue (6.3) (14.9) — (21.2) Total revenue from contracts with customers under ASC 606 $ 1,634.3 $ 519.5 $ (6.6) $ 2,147.2 Year Ended December 31, 2021 Refined Products Crude Oil Intersegment Eliminations Total Transportation $ 915.7 $ 228.8 $ — $ 1,144.5 Terminalling 100.1 17.0 — 117.1 Storage 177.1 114.8 (5.8) 286.1 Ancillary services 125.2 29.9 — 155.1 Lease revenue 20.4 75.7 — 96.1 Transportation and terminals revenue 1,338.5 466.2 (5.8) 1,798.9 Product sales revenue 763.9 149.1 — 913.0 Affiliate management fee revenue 6.4 14.8 — 21.2 Total revenue 2,108.8 630.1 (5.8) 2,733.1 Revenue not under the guidance of ASC 606, Revenue from Contracts with Customers: Lease revenue (20.4) (75.7) — (96.1) (Gains) losses from futures contracts included in product sales revenue (127.2) (16.0) — (143.2) Affiliate management fee revenue (6.4) (14.8) — (21.2) Total revenue from contracts with customers under ASC 606 $ 1,954.8 $ 523.6 $ (5.8) $ 2,472.6 |
Contract Assets and Liabilities | The following table summarizes our accounts receivable, contract assets and contract liabilities resulting from contracts with customers (in millions): December 31, 2020 December 31, 2021 Accounts receivable from contracts with customers $ 103.3 $ 134.8 Contract assets $ 12.2 $ 12.5 Contract liabilities $ 102.7 $ 100.1 |
Remaining Performance Obligation | The following table provides the aggregate amount of the transaction price allocated to our UPOs as of December 31, 2021 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 millions): Refined Products Crude Oil Total Amounts as of December 31, 2021 $ 1,874.5 $ 1,069.8 $ 2,944.3 Remaining terms 1 - 17 years 1 - 10 years Estimated revenues from UPOs to be recognized in the next 12 months $ 368.9 $ 257.4 $ 626.3 |
Property, Plant and Equipment_2
Property, Plant and Equipment and Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment consisted of the following (in millions): Estimated Depreciable Lives December 31, 2020 2021 Construction work-in-progress $ 122.0 $ 89.5 Land and rights-of-way 373.9 374.3 Buildings 119.7 121.8 10 to 53 years Storage tanks 1,952.7 1,986.7 10 to 49 years Pipeline and station equipment 3,325.9 3,386.0 10 to 59 years Processing equipment 1,769.4 1,826.4 3 to 56 years Other 280.2 261.2 3 to 53 years Property, plant and equipment, gross $ 7,943.8 $ 8,045.9 |
Investments in Non-Controlled_2
Investments in Non-Controlled Entities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Our equity investments in non-controlled entities at December 31, 2021 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”) 25% Powder Springs Logistics, LLC (“Powder Springs”) 50% Saddlehorn Pipeline Company, LLC (“Saddlehorn”) 30% Seabrook Logistics, LLC (“Seabrook”) 50% Texas Frontera, LLC (“Texas Frontera”) 50% In April 2021, we sold nearly half of our membership interest in MVP. As a result of the sale, we received proceeds of $272.1 million and recorded a gain of $70.4 million on our consolidated statements of income. Following the sale, we own approximately 25% of MVP and remain the operator of the facility. 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 receive 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 $5.3 million, $3.6 million and $2.5 million, respectively, for the years ended December 31, 2019, 2020 and 2021. We recorded the following revenue and expense transactions from certain of these non-controlled entities in our consolidated statements of income (in millions): Year Ended December 31, 2019 2020 2021 Transportation and terminals revenue: BridgeTex, pipeline capacity and storage $ 41.8 $ 42.3 $ 43.7 Double Eagle, throughput revenue $ 6.2 $ 4.9 $ 3.0 Saddlehorn, storage revenue $ 2.2 $ 2.5 $ 2.3 Operating expense: Seabrook, storage lease and ancillary services $ 25.9 $ 29.1 $ 19.7 Product sales revenue: Seabrook, product sales $ 0.3 $ — $ — Other operating income: MVP, easement sale $ 0.3 $ — $ — Seabrook, gain on sale of air emission credits $ — $ 1.4 $ 0.4 Our consolidated balance sheets reflected the following balances related to our investments in non-controlled entities (in millions): December 31, 2020 Trade Accounts Receivable Other Accounts Receivable Other Accounts Payable Long-Term Receivables BridgeTex $ 0.4 $ — $ 1.0 $ — Double Eagle $ 0.3 $ — $ — $ — HoustonLink $ — $ — $ 0.1 $ — MVP $ — $ 0.5 $ 2.3 $ — Powder Springs $ — $ — $ — $ 10.2 Saddlehorn $ — $ 0.1 $ — $ — Seabrook $ — $ — $ 7.3 $ — December 31, 2021 Trade Accounts Receivable Other Accounts Receivable Other Accounts Payable Long-Term Receivables BridgeTex $ 1.2 $ — $ 0.3 $ — Double Eagle $ 0.2 $ — $ — $ — HoustonLink $ — $ — $ 0.2 $ — MVP $ — $ 0.6 $ 2.2 $ — Powder Springs $ — $ — $ — $ — Saddlehorn $ — $ 0.2 $ — $ — Seabrook $ — $ 0.1 $ 3.2 $ — We entered into a long-term terminalling and storage contract with Seabrook for exclusive use of dedicated tankage that provides our customers with crude oil storage capacity and dock access for crude oil imports and exports on the Texas Gulf Coast (see Note 11 – Leases for more details regarding this lease). We also made purchases of transmix from MVP throughout the year totaling $7.6 million. The financial results from MVP, Powder Springs and Texas Frontera are included in our refined products segment and the financial results from BridgeTex, Double Eagle, HoustonLink, Saddlehorn and Seabrook are included in our crude oil segment, each as earnings of non-controlled entities. A summary of our investments in non-controlled entities (representing only our proportionate interests) follows (in millions): Investments at December 31, 2020 $ 1,213.9 Additional investment 5.6 Sale of ownership interests (199.8) Earnings of non-controlled entities: Proportionate share of earnings 156.2 Amortization of excess investment and capitalized interest (1.8) Earnings of non-controlled entities 154.4 Less: Distributions from operations of non-controlled entities 193.3 Investments at December 31, 2021 $ 980.8 Summarized financial information of our non-controlled entities (representing 100% of the interests in these entities) follows (in millions): December 31, 2020 2021 Current assets $ 243.8 $ 227.0 Noncurrent assets 2,846.7 2,795.7 Total assets $ 3,090.5 $ 3,022.7 Current liabilities $ 143.6 $ 178.6 Noncurrent liabilities 57.5 59.5 Total liabilities $ 201.1 $ 238.1 Equity $ 2,889.4 $ 2,784.6 Year Ended December 31, 2019 2020 2021 Revenue $ 782.0 $ 752.7 $ 733.1 Net income $ 507.5 $ 471.4 $ 463.4 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | stated and relieved at the lower of average cost or net realizable value. Inventory at December 31, 2020 and 2021 was as follows (in millions): December 31, 2020 2021 Refined products $ 72.0 $ 138.0 Crude oil 32.4 25.4 Liquefied petroleum gases 25.0 42.0 Transmix 23.4 72.4 Additives 5.4 3.3 Total inventory $ 158.2 $ 281.1 |
Supplemental Cash Flows Infor_2
Supplemental Cash Flows Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Changes in Components of Operating Assets and Liabilities | Changes in the components of operating assets and liabilities are as follows (in millions): Year Ended December 31, 2019 2020 2021 Trade accounts receivable and other accounts receivable $ (20.3) $ (0.9) $ (29.1) Inventory 2.7 14.0 (122.9) Accounts payable (1.9) 4.5 16.0 Accrued payroll and benefits 4.8 (22.3) 22.8 Accrued interest payable 1.0 (5.3) — Accrued taxes other than income 12.6 4.4 8.8 Deferred revenue (11.4) (10.7) (6.1) Accrued product liabilities 15.9 (8.5) 78.3 Other current and noncurrent assets and liabilities (1.3) (12.3) 22.5 Total $ 2.1 $ (37.1) $ (9.7) |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Consolidated Debt | Debt Long-term debt at December 31, 2020 and 2021 was as follows (in millions): December 31, 2020 2021 Commercial paper $ — $ 108.0 3.20% Notes due 2025 250.0 250.0 5.00% Notes due 2026 650.0 650.0 3.25% Notes due 2030 500.0 500.0 6.40% Notes due 2037 250.0 250.0 4.20% Notes due 2042 250.0 250.0 5.15% Notes due 2043 550.0 550.0 4.20% Notes due 2045 250.0 250.0 4.25% Notes due 2046 500.0 500.0 4.20% Notes due 2047 500.0 500.0 4.85% Notes due 2049 500.0 500.0 3.95% Notes due 2050 800.0 800.0 Face value of long-term debt 5,000.0 5,108.0 Unamortized debt issuance costs (1) (40.1) (37.8) Net unamortized debt premium (1) 18.8 18.6 Long-term debt, net $ 4,978.7 $ 5,088.8 (1) Debt issuance costs and note discounts and premiums are being amortized or accreted to the applicable notes over the respective lives of those notes. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Maturity | Future minimum rental payments under operating leases with initial terms greater than one year as of December 31, 2021 are as follows (in millions): Third Party Leases Seabrook Lease All Leases 2022 $ 21.2 $ 9.9 $ 31.1 2023 21.4 9.9 31.3 2024 21.7 9.7 31.4 2025 21.8 6.6 28.4 2026 12.5 6.6 19.1 Thereafter 34.1 17.6 51.7 Total future minimum rental payments 132.7 60.3 193.0 Present value discount 12.1 7.8 19.9 Total operating lease liability $ 120.6 $ 52.5 $ 173.1 |
Lessee, Operating Lease, Disclosure | The following tables provide a summary of the effect on our consolidated statements of income for the years ended December 31, 2019, 2020 and 2021 (in millions): Year Ended December 31, 2019 Third Party Leases Seabrook Lease All Leases Fixed lease expense $ 19.2 $ 10.8 $ 30.0 Short-term lease expense 1.6 — 1.6 Variable lease expense 3.0 15.0 18.1 Total lease expense $ 23.8 $ 25.8 $ 49.7 Year Ended December 31, 2020 Third Party Leases Seabrook Lease All Leases Fixed lease expense $ 19.2 $ 14.3 $ 33.5 Short-term lease expense 1.3 — 1.3 Variable lease expense 4.1 14.8 18.9 Total lease expense $ 24.6 $ 29.1 $ 53.7 Year Ended December 31, 2021 Third Party Leases Seabrook Lease All Leases Fixed lease expense $ 21.0 $ 12.7 $ 33.7 Short-term lease expense 1.7 — 1.7 Variable lease expense 3.4 6.8 10.2 Total lease expense $ 26.1 $ 19.5 $ 45.6 The following table provides a summary of the effect on our consolidated balance sheets as of December 31, 2020 and 2021 (dollars in millions): As of and for the Year Ended December 31, 2020 December 31, 2021 Third Party Leases Seabrook Lease All Leases Third Party Leases Seabrook Lease All Leases Current lease liability $ 17.1 $ 10.4 $ 27.5 $ 17.8 $ 8.0 $ 25.8 Long-term lease liability $ 85.0 $ 52.5 $ 137.5 $ 102.8 $ 44.5 $ 147.3 Right-of-use asset $ 103.2 $ 62.9 $ 166.1 $ 121.7 $ 52.5 $ 174.2 Operating cash flows for operating leases $ 24.1 $ 29.1 $ 53.2 $ 26.2 $ 19.5 $ 45.7 Weighted average remaining lease term (years) 6 7 7 7 7 7 Weighted average discount 3.7 % 4.0 % 3.8 % 3.0 % 4.1 % 3.4 % |
Lessor, Future Minimum Payments Receivable | Future minimum payments receivable under operating leases with initial terms greater than one year as of December 31, 2021 are estimated as follows (in millions): 2022 $ 24.9 2023 25.2 2024 21.9 2025 13.8 2026 13.1 Thereafter 32.9 Total $ 131.8 |
Leases, Investment in Direct Financing Lease | The net investment under this arrangement as of December 31, 2020 and 2021 was as follows (in millions): December 31, 2020 December 31, 2021 Total minimum lease payments receivable $ 14.0 $ 12.2 Less: Unearned income 2.3 1.8 Recorded net investment in sales-type lease $ 11.7 $ 10.4 The net investment in this sales-type lease was classified in the consolidated balance sheets as follows (in millions): December 31, 2020 December 31, 2021 Other accounts receivable $ 1.2 $ 1.3 Long-term receivables 10.5 9.1 Total $ 11.7 $ 10.4 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Changes in Benefit Obligations and Plan Assets | The following table presents the changes in benefit obligations and plan assets for pension benefits and other postretirement benefits, as well as the end-of-period accumulated benefit obligation, including amounts related to discontinued operations, for the years ended December 31, 2020 and 2021 (in millions): Pension Benefits Other Postretirement Benefits 2020 2021 2020 2021 Change in benefit obligations: Benefit obligations at beginning of year $ 381.2 $ 443.6 $ 15.2 $ 17.3 Service cost 27.7 28.2 0.3 0.3 Interest cost 11.0 9.5 0.5 0.4 Plan participants’ contributions — — 0.6 0.8 Actuarial (gain) loss 53.2 (19.4) 2.5 0.9 Benefits paid (23.1) (29.2) (1.8) (1.9) Curtailment gain (1.7) — — — Settlement payments (4.7) (9.3) — — Benefit obligations at end of year 443.6 423.4 17.3 17.8 Change in plan assets: Fair value of plan assets at beginning of year 249.2 295.7 — — Employer contributions 29.3 27.6 1.2 1.1 Plan participants’ contributions — — 0.6 0.8 Actual return on plan assets 43.6 9.7 — — Benefits paid (23.1) (29.2) (1.8) (1.9) Settlement payments (3.3) (9.3) — — Fair value of plan assets at end of year 295.7 294.5 — — Funded status at end of year $ (147.9) $ (128.9) $ (17.3) $ (17.8) Accumulated benefit obligations $ 324.8 $ 305.0 |
Pension Plans with Obligations in Excess of Assets | The following table summarizes information for pension plans with obligations in excess of plan assets (in millions): December 31, 2020 2021 Plans with a projected benefit obligation in excess of plan assets: Projected benefit obligation $ 443.6 $ 423.4 Fair value of plan assets $ 295.7 $ 294.5 Plans with an accumulated benefit obligation in excess of plan assets: Accumulated benefit obligation $ 324.8 $ 305.0 Fair value of plan assets $ 295.7 $ 294.5 |
Amounts Recognized in Consolidated Balance Sheets | Amounts recognized in the consolidated balance sheets included in these financial statements were as follows (in millions): Pension Benefits Other Postretirement Benefits 2020 2021 2020 2021 Amounts recognized in consolidated balance sheets: Current accrued benefit cost $ — $ — $ 1.4 $ 1.7 Long-term pension and benefits 147.9 128.9 15.9 16.1 147.9 128.9 17.3 17.8 Accumulated other comprehensive loss: Net actuarial loss (120.5) (95.3) (10.4) (10.7) Prior service credit 2.7 2.5 — — (117.8) (92.8) (10.4) (10.7) Net amount of liabilities and accumulated other comprehensive loss recognized in consolidated balance sheets $ 30.1 $ 36.1 $ 6.9 $ 7.1 |
Consolidated Net Periodic Benefit Costs | Net periodic benefit expense for the years ended December 31, 2019, 2020 and 2021 was as follows (in millions): Pension Benefits Other Postretirement Benefits 2019 2020 2021 2019 2020 2021 Components of net periodic benefit costs: Service cost $ 25.4 $ 27.7 $ 28.2 $ 0.2 $ 0.3 $ 0.3 Interest cost 12.2 11.0 9.5 0.5 0.5 0.4 Expected return on plan assets (9.4) (11.4) (11.9) — — — Amortization of prior service credit (0.2) (0.2) (0.2) — — — Amortization of actuarial loss 5.5 5.4 5.4 0.3 0.4 0.6 Settlement cost 2.6 1.0 2.6 — — — Settlement gain on disposition of assets — (1.3) — — — — Net periodic benefit cost $ 36.1 $ 32.2 $ 33.6 $ 1.0 $ 1.2 $ 1.3 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) | Changes in plan assets and benefit obligations recognized in other comprehensive income (loss) during 2019, 2020 and 2021 were as follows (in millions): Pension Benefits Other Postretirement Benefits 2019 2020 2021 2019 2020 2021 Beginning balance $ (88.6) $ (104.7) $ (117.8) $ (5.4) $ (8.4) $ (10.4) Net actuarial gain (loss) (24.0) (21.0) 17.2 (3.3) (2.5) (0.9) Amortization of prior service credit (0.2) (0.2) (0.2) — — — Amortization of actuarial loss 5.5 5.4 5.4 0.3 0.5 0.6 Curtailment gain — 1.7 — — — — Settlement cost 2.6 1.0 2.6 — — — Amount recognized in other comprehensive loss (16.1) (13.1) 25.0 (3.0) (2.0) (0.3) Ending balance $ (104.7) $ (117.8) $ (92.8) $ (8.4) $ (10.4) $ (10.7) |
Weighted-Average Rate Assumptions Used and Investment Strategies | The weighted average rate assumptions used to determine projected benefit obligations were as follows: Pension Benefits Other Postretirement Benefits 2020 2021 2020 2021 Discount rate 2.23% 2.61% 2.30% 2.64% Rate of compensation increase 4.53% 6.51% n/a n/a Cash balance interest crediting rate 1.70% 1.94% n/a n/a The weighted average rate assumptions used to determine net pension and other postretirement benefit plans expense were as follows: Pension Benefits Other Postretirement Benefits For the Year Ended December 31, For the Year Ended December 31, 2019 2020 2021 2019 2020 2021 Discount rate 3.98% 3.01% 2.23% 4.08% 3.06% 2.30% Rate of compensation increase 6.48% 4.58% 4.53% n/a n/a n/a Expected rate of return on plan assets 6.00% 4.50% 4.10% n/a n/a n/a Cash balance interest crediting rate 2.78% 2.16% 1.70% n/a n/a n/a The investment strategies for the various funds held as pension plan assets by asset category are as follows: Asset Category Fund’s Investment Strategy Domestic equity securities: Small-cap fund Seeks to track performance of the Center for Research in Security Prices (“CRSP”) US Small Cap Index Mid-cap fund Seeks to track performance of the CRSP US Mid Cap Index Large-cap fund Seeks to track performance of the Standard & Poor’s 500 Index International equity fund Seeks to track performance of the FTSE Global All Cap ex US Index Fixed income securities: Short-term bond fund Seeks current income with limited price volatility through investment in primarily high quality bonds with short-term maturities Intermediate-term bond fund Seeks moderate and sustainable level of current income by investing primarily in high quality fixed income securities with maturities from five to ten years Long-term investment grade bond funds Seek high and sustainable current income through investment primarily in long-term investment grade debt securities Other: Short-term investment funds Invest in high quality short-term money market instruments issued by the U.S. Treasury Group annuity contract Earns interest quarterly equal to the effective yield of the 91-day U.S. Treasury bill |
Fair Value and Allocation of Pension Plan Assets | The fair values of the pension plan assets at December 31, 2020 were as follows (in millions): Asset Category Total Quoted Prices in Active Markets for Significant Significant Domestic equity securities: (1) Small-cap fund $ 5.8 $ 5.8 $ — $ — Mid-cap fund 5.8 5.8 — — Large-cap fund 47.6 47.6 — — International equity fund 29.9 29.9 — — Fixed income securities: (1) Short-term bond fund 4.2 4.2 — — Intermediate-term bond fund 34.9 34.9 — — Long-term investment grade bond funds 161.0 161.0 — — Other: Short-term investment fund 6.3 6.3 — — Group annuity contract 0.2 — — 0.2 Fair value of plan assets $ 295.7 $ 295.5 $ — $ 0.2 (1) We hold equity and fixed income securities through investments in mutual funds, which are dedicated to each category as indicated. The fair values of the pension plan assets at December 31, 2021 were as follows (in millions): Asset Category Total Quoted Prices in Active Markets for Significant Significant Domestic equity securities (1) : Small-cap fund $ 6.1 $ 6.1 $ — $ — Mid-cap fund 6.0 6.0 — — Large-cap fund 48.0 48.0 — — International equity fund 30.1 30.1 — — Fixed income securities (1) : Long-term investment grade bond funds 197.1 197.1 — — Other: Short-term investment fund 7.0 7.0 — — Group annuity contract 0.2 — — 0.2 Fair value of plan assets $ 294.5 $ 294.3 $ — $ 0.2 (1) We hold equity and fixed income securities through investments in mutual funds, which are dedicated to each category as indicated. The target allocation and actual weighted average asset allocation percentages at December 31, 2020 and 2021 were as follows: 2020 2021 Actual Target Actual Target Equity securities 30% 30% 30% 30% Fixed income securities 68% 67% 67% 70% Other 2% 3% 3% —% |
Expected Benefit Payments | As of December 31, 2021, the benefit amounts expected to be paid from plan assets through December 31, 2031 were as follows (in millions): Pension Other 2022 $ 16.2 $ 1.7 2023 $ 18.1 $ 1.5 2024 $ 21.6 $ 1.3 2025 $ 22.4 $ 1.3 2026 $ 27.4 $ 1.2 2027 through 2031 $ 147.9 $ 4.0 |
Long-Term Incentive Plan (Table
Long-Term Incentive Plan (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Changes in Non-Vested Unit Awards | The amounts below do not include adjustments for above-target or below-target performance. Performance-Based Awards Time-Based Awards Total Awards Number of Unit Weighted Average Fair Value Number of Unit Weighted Average Fair Value Number of Unit Weighted Average Fair Value Non-vested units - 1/1/2021 340,164 $ 62.35 353,544 $ 61.07 693,708 $ 61.70 Units granted during 2021 281,823 $ 40.85 301,873 $ 40.99 583,696 $ 40.92 Units vested during 2021 (161,484) $ 63.62 (168,204) $ 60.76 (329,688) $ 62.16 Units forfeited during 2021 (14,578) $ 51.23 (16,699) $ 50.92 (31,277) $ 51.06 Non-vested units - 12/31/21 445,925 $ 48.66 470,514 $ 48.67 916,439 $ 48.67 |
Total Non-Vested Unit Awards | The table below summarizes the total non-vested unit awards outstanding, including estimated targeted financial performance adjustments, to determine our total equity-based liability accrual. Grant Date Non-Vested Unit Awards Performance Adjustment to Unit Awards Total Unit Award Accrual Vesting Date Unrecognized Compensation Expense (in millions) (a) Performance-based awards: 2020 awards 171,400 (51,420) 119,980 12/31/2022 $ 2.4 2021 awards 274,525 68,631 343,156 12/31/2023 9.3 Time-based awards: 2022 vesting date 178,911 — 178,911 12/31/2022 3.7 2023 vesting date 291,603 — 291,603 12/31/2023 8.3 Total 916,439 17,211 933,650 $ 23.7 (a) Unrecognized compensation expense will be recognized over the remaining vesting period of the awards . |
Weighted-Average Grant Date Fair Values | The weighted average fair value of awards granted during 2019, 2020 and 2021 was as follows: Performance-Based Awards Time-Based Awards Number of Weighted Average Fair Value Number of Unit Weighted Average Fair Value Units granted during 2019 182,834 $ 63.65 195,031 $ 62.91 Units granted during 2020 189,632 $ 61.16 198,450 $ 61.18 Units granted during 2021 281,823 $ 40.85 301,873 $ 40.99 |
Vested Unit Awards | The table below sets forth the numbers and values of units that vested in each of the three years ended December 31, 2021. The vested common units include adjustments for above-target financial and market performance. Vesting Date Vested Fair Value of Unit Awards on Vesting Date (in millions) Intrinsic Value of Unit Awards on Vesting Date (in millions) 12/31/2019 436,629 $31.0 $27.5 12/31/2020 235,127 $15.2 $10.0 12/31/2021 316,336 $19.3 $14.7 |
Cash Flow Effects of LTIP Settlements | The difference between the common units issued to the participants and the total number of unit awards vested primarily represents the tax withholdings associated with the award settlement, which we pay in cash. Settlement Date Number of Common Units Issued, Net of Tax Withholdings Tax Withholdings and Other Cash Payments Employer Taxes (in millions) Total Cash Payments January 2019 199,792 $9.8 $0.9 $10.7 January 2020 275,093 $14.7 $1.3 $16.0 January 2021 150,435 $6.2 $0.7 $6.9 |
Equity-Based Incentive Compensation Expense | Equity-based incentive compensation expense for 2019, 2020 and 2021, primarily recorded as G&A expense on our consolidated statements of income, was as follows (in millions): Year Ended December 31, 2019 2020 2021 Performance awards $ 17.9 $ 3.1 $ 11.2 Time-based awards $ 6.1 $ 8.9 $ 10.6 Total $ 24.0 $ 12.0 $ 21.8 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Open Future Contracts | Our open futures contracts at December 31, 2021 were as follows: Type of Contract/ Product Represented by the Contract and Associated Barrels Maturity Dates Commodity derivatives contract - Economic hedges 3.3 million barrels of refined products and crude oil Between January and November 2022 Commodity derivatives contract - Economic hedges 0.6 million barrels of gas liquids Between January and April 2022 |
Schedule of Derivatives Offset Amounts | A schedule of the derivative amounts we have offset and the deposit amounts we could offset under master netting arrangements are provided below as of December 31, 2020 and 2021 (in millions): 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 Margin Deposit Amounts Not Offset in the Consolidated Balance Sheets Net Asset Amount (1) As of December 31, 2020 $ (21.7) $ 1.2 $ (20.5) $ 34.2 $ 13.7 As of December 31, 2021 $ (22.3) $ 5.1 $ (17.2) $ 46.3 $ 29.1 (1) Amount represents the maximum loss we would incur if all of our counterparties failed to perform on their derivative contracts. |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The changes in derivative activity included in AOCL for the years ended December 31, 2019, 2020 and 2021 were as follows (in millions): Year Ended December 31, Derivative Losses Included in AOCL 2019 2020 2021 Beginning balance $ (26.5) $ (49.0) $ (55.0) Net loss on cash flow hedges (25.2) (9.5) — Reclassification of net loss on cash flow hedges to income 2.7 3.5 3.5 Ending balance $ (49.0) $ (55.0) $ (51.5) The following is a summary of the effect on our consolidated statements of income for the years ended December 31, 2019, 2020 and 2021 of derivatives that were designated as cash flow hedges (in millions): Interest Rate Contracts Amount of Loss Recognized in AOCL on Derivatives Location of Loss Reclassified from AOCL into Income Amount of Loss Reclassified from AOCL into Income Year Ended December 31, 2019 $ (25.2) Interest expense $ (2.7) Year Ended December 31, 2020 $ (9.5) Interest expense $ (3.5) Year Ended December 31, 2021 $ — Interest expense $ (3.5) |
Schedule of Derivatives and Hedging-Overall-Subsequent Measurement | The following table provides a summary of the effect on our consolidated statements of income for the years ended December 31, 2019, 2020 and 2021 of derivatives that were not designated as hedging instruments (in millions): Amount of Gain (Loss) Year Ended December 31, Derivative Instrument Location of Gain (Loss) 2019 2020 2021 Commodity derivatives contracts Product sales revenue $ (66.5) $ 53.2 $ (143.2) Commodity derivatives contracts Cost of product sales (0.2) 0.3 21.1 Basis derivative agreement Other operating income (expense) (10.2) (4.3) (5.6) Total $ (76.9) $ 49.2 $ (127.7) |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | 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, 2020 and 2021 (in millions): December 31, 2020 Asset Derivatives Liability Derivatives Derivative Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value Commodity derivatives contracts Commodity derivatives contracts, net $ 0.1 Commodity derivatives contracts, net $ 21.7 Commodity derivatives contracts Other noncurrent assets 1.1 Other noncurrent liabilities — Basis derivative agreement Other current assets — Other current liabilities 8.8 Basis derivative agreement Other noncurrent assets — Other noncurrent liabilities 1.4 Total $ 1.2 Total $ 31.9 December 31, 2021 Asset Derivatives Liability Derivatives Derivative Instrument Balance Sheet Location Fair Value Balance Sheet Location Fair Value Commodity derivatives contracts Commodity derivatives contracts, net $ 5.1 Commodity derivatives contracts, net $ 22.3 Basis derivative agreement Other current assets — Other current liabilities 1.5 Total $ 5.1 Total $ 23.8 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | The following tables summarize the carrying amounts, fair values and fair value measurements recorded or disclosed as of December 31, 2020 and 2021, based on the three levels established by ASC 820; Fair Value Measurements and Disclosures (in millions): Fair Value Measurements as of Assets (Liabilities) Carrying Amount Fair Value Quoted Prices in Significant Other Significant Commodity derivatives contracts $ (20.5) $ (20.5) $ (20.5) $ — $ — Basis derivative agreement $ (10.2) $ (10.2) $ — $ (10.2) $ — Long-term receivables $ 22.8 $ 22.8 $ — $ — $ 22.8 Contractual obligations $ (11.2) $ (11.2) $ — $ — $ (11.2) Debt $ (4,978.7) $ (5,880.9) $ — $ (5,880.9) $ — Fair Value Measurements as of Assets (Liabilities) Carrying Amount Fair Value Quoted Prices in Significant Other Significant Commodity derivatives contracts $ (17.2) $ (17.2) $ (18.6) $ 1.4 $ — Basis derivative agreement $ (1.5) $ (1.5) $ — $ (1.5) $ — Long-term receivables $ 10.1 $ 10.1 $ — $ — $ 10.1 Contractual obligations $ (9.8) $ (9.8) $ — $ — $ (9.8) Debt $ (5,088.8) $ (5,711.5) $ — $ (5,711.5) $ — |
Partners' Capital and Distrib_2
Partners' Capital and Distributions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Partners' Capital Notes [Abstract] | |
Changes in Outstanding Limited Partner Units | The following table details the changes in the number of our common units outstanding from January 1, 2019 through December 31, 2021: Common units outstanding on January 1, 2019 228,195,160 February 2019—Settlement of employee LTIP awards 199,792 During 2019—Other (1) 8,476 Common units outstanding on December 31, 2019 228,403,428 Units repurchased during 2020 (5,568,260) February 2020—Settlement of employee LTIP awards 275,093 During 2020—Other (1) 9,550 Common units outstanding on December 31, 2020 223,119,811 Units repurchased during 2021 (10,894,828) January 2021—Settlement of employee LTIP awards 150,435 During 2021—Other (1) 12,572 Common units outstanding on December 31, 2021 212,387,990 |
Distributions Made to Limited Partner | Distributions we paid during 2019, 2020 and 2021 were as follows (in millions, except per unit amounts): Payment Date Per Unit Total Distribution 2/14/2019 $ 0.9975 $ 227.8 5/15/2019 1.0050 229.5 8/14/2019 1.0125 231.3 11/14/2019 1.0200 233.0 Total $ 4.0350 $ 921.6 2/14/2020 $ 1.0275 $ 234.8 5/15/2020 1.0275 231.2 8/14/2020 1.0275 231.2 11/13/2020 1.0275 229.9 Total $ 4.1100 $ 927.1 2/12/2021 $ 1.0275 $ 229.4 5/14/2021 1.0275 229.0 8/13/2021 1.0275 226.6 11/12/2021 1.0375 221.4 Total $ 4.1200 $ 906.4 |
Organization and Description _2
Organization and Description of Business (Narrative) (Details) bbl in Millions | 12 Months Ended |
Dec. 31, 2021bblterminalmi | |
Refined Products | |
Segment Reporting Information [Line Items] | |
Pipeline length | mi | 9,800 |
Number of pipeline terminals | terminal | 54 |
number of marine terminals | terminal | 2 |
Number of marine terminals owned through joint venture | terminal | 1 |
Crude Oil | |
Segment Reporting Information [Line Items] | |
Pipeline length | mi | 2,200 |
Storage capacity | 39 |
Contracted storage | 29 |
Pipeline length - wholly owned | mi | 1,000 |
Storage capacity - wholly owned | 31 |
Contracted storage - wholly owned | 25 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - Discontinued Operations, Held-for-sale - Independent Terminals Network bbl in Millions | Jun. 30, 2021bblterminal | Jun. 10, 2021terminalbbl |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of independent terminals | terminal | 26 | 26 |
Contracted storage | bbl | 6 | 6 |
Discontinued Operations and A_3
Discontinued Operations and Assets Held for Sale (Narrative) (Details) bbl in Millions, $ in Millions | Jun. 10, 2021USD ($)terminalbbl | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2021bblterminal |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from disposition of assets | $ 275.1 | $ 334.8 | $ 65.4 | ||
Independent Terminals Network | Discontinued Operations, Held-for-sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of independent terminals | terminal | 26 | 26 | |||
Contracted storage | bbl | 6 | 6 | |||
Proceeds from disposition of assets | $ 435 |
Discontinued Operations and A_4
Discontinued Operations and Assets Held for Sale (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Total revenue | $ 137 | $ 105.6 | $ 127.1 |
Costs and expenses: | |||
Operating | 11.2 | 13.4 | 17.9 |
Cost of product sales | 66.5 | 45.5 | 58.5 |
Depreciation, amortization and impairment | 7.1 | 15.6 | 15.4 |
General and administrative | 2.5 | 2.2 | 2.5 |
Total costs and expenses | 87.3 | 76.7 | 94.3 |
Income from discontinued operations | 49.7 | 28.9 | 32.8 |
Assets: | |||
Trade accounts receivable | 6.3 | 5.6 | |
Inventory | 17 | 9.2 | |
Net property, plant and equipment | 272 | 274.9 | |
Goodwill | 2.7 | 2.7 | |
Other assets | 1.5 | 0.3 | |
Total assets classified as held for sale | 299.5 | 292.7 | |
Liabilities: | |||
Accounts payable | 3.7 | 2 | |
Accrued product liabilities | 8.4 | 4 | |
Other liabilities | 3.7 | 3.9 | |
Total liabilities classified as held for sale | 15.8 | 9.9 | |
Transportation and terminals revenue | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Total revenue | 53.3 | 51.4 | 56.8 |
Product sales revenue | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Total revenue | $ 83.7 | $ 54.2 | $ 70.3 |
Segment Disclosures (Segment Re
Segment Disclosures (Segment Reporting Information by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Total revenue | $ 2,733.1 | $ 2,322 | $ 2,600.9 |
Operating expense | 569.7 | 587.8 | 616.4 |
Cost of product sales | 780 | 468.2 | 560.9 |
Other operating (income) expense | (2.8) | (0.1) | (3) |
Earnings of non-controlled entities | (154.4) | (153.3) | (169) |
Operating margin | 1,540.6 | 1,419.4 | 1,595.6 |
Depreciation, amortization and impairment expense | 227.9 | 243.1 | 230.7 |
G&A expense | 206.3 | 171.2 | 194.2 |
Operating profit | 1,106.4 | 1,005.1 | 1,170.7 |
Additions to long-lived assets | 140.8 | 344.4 | 959.8 |
Total assets | 8,030 | 8,197 | 8,437.7 |
Goodwill | 50.1 | 50.1 | 50.6 |
Investments in non-controlled entities | 980.8 | 1,213.9 | 1,240.6 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Additions to long-lived assets | 130 | 333.9 | 859.3 |
Total assets | 7,660.7 | 7,813.9 | 8,011.1 |
Operating Segments | Refined Products | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 2,108.8 | 1,721.1 | 1,943.2 |
Operating expense | 416.7 | 411.8 | 454 |
Cost of product sales | 630.1 | 425.8 | 532.8 |
Other operating (income) expense | (6.9) | (3.2) | (10.2) |
Earnings of non-controlled entities | (34.4) | (32.5) | (8.1) |
Operating margin | 1,103.3 | 919.2 | 974.7 |
Depreciation, amortization and impairment expense | 153.9 | 159.9 | 158.7 |
G&A expense | 147.8 | 123.5 | 138.3 |
Operating profit | 801.6 | 635.8 | 677.7 |
Additions to long-lived assets | 88.9 | 277.5 | 785.1 |
Total assets | 4,880 | 4,977 | 5,116.4 |
Goodwill | 38 | 38 | 38.5 |
Investments in non-controlled entities | 232.8 | 429.2 | 422.4 |
Operating Segments | Crude Oil | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 630.1 | 607.5 | 663.1 |
Operating expense | 165.4 | 189.2 | 173.3 |
Cost of product sales | 149.9 | 42.4 | 28.1 |
Other operating (income) expense | 4.1 | 3.1 | 7.2 |
Earnings of non-controlled entities | (120) | (120.8) | (160.9) |
Operating margin | 430.7 | 493.6 | 615.4 |
Depreciation, amortization and impairment expense | 67.4 | 76.6 | 66.5 |
G&A expense | 58.5 | 47.7 | 55.9 |
Operating profit | 304.8 | 369.3 | 493 |
Additions to long-lived assets | 41.1 | 56.4 | 74.2 |
Total assets | 2,780.7 | 2,836.9 | 2,894.7 |
Goodwill | 12.1 | 12.1 | 12.1 |
Investments in non-controlled entities | 748 | 784.7 | 818.2 |
Corporate, Non-Segment | |||
Segment Reporting Information [Line Items] | |||
Total assets | 69.8 | 90.4 | 131.1 |
Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Total revenue | (5.8) | (6.6) | (5.4) |
Operating expense | (12.4) | (13.2) | (10.9) |
Cost of product sales | 0 | 0 | 0 |
Other operating (income) expense | 0 | 0 | 0 |
Earnings of non-controlled entities | 0 | 0 | 0 |
Operating margin | 6.6 | 6.6 | 5.5 |
Depreciation, amortization and impairment expense | 6.6 | 6.6 | 5.5 |
G&A expense | 0 | 0 | 0 |
Operating profit | 0 | 0 | 0 |
Assets held for sale | |||
Segment Reporting Information [Line Items] | |||
Total assets | 299.5 | 292.7 | 295.5 |
Transportation and terminals revenue | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 1,798.9 | 1,743.3 | 1,913.9 |
Transportation and terminals revenue | Operating Segments | Refined Products | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 1,338.5 | 1,190.4 | 1,299 |
Transportation and terminals revenue | Operating Segments | Crude Oil | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 466.2 | 559.5 | 620.3 |
Transportation and terminals revenue | Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Total revenue | (5.8) | (6.6) | (5.4) |
Product sales revenue | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 913 | 557.5 | 665.8 |
Product sales revenue | Operating Segments | Refined Products | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 763.9 | 524.4 | 637.5 |
Product sales revenue | Operating Segments | Crude Oil | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 149.1 | 33.1 | 28.3 |
Product sales revenue | Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 0 | 0 | 0 |
Affiliate management fee revenue | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 21.2 | 21.2 | 21.2 |
Affiliate management fee revenue | Operating Segments | Refined Products | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 6.4 | 6.3 | 6.7 |
Affiliate management fee revenue | Operating Segments | Crude Oil | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 14.8 | 14.9 | 14.5 |
Affiliate management fee revenue | Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Total revenue | $ 0 | $ 0 | $ 0 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Disaggregation of Revenue [Line Items] | |
Contract with customer, liability, change in timeframe, performance obligation satisfied, revenue recognized | $ 80.9 |
Refined Products | |
Disaggregation of Revenue [Line Items] | |
Revenue, shipments regulated by FERC, percentage | 30.00% |
Revenue, markets regulated by FERC, percentage | 70.00% |
Revenue (Disaggregated Revenue)
Revenue (Disaggregated Revenue) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 2,733.1 | $ 2,322 | $ 2,600.9 |
Lease revenue | (96.1) | (100.4) | (101.1) |
(Gains) losses from futures contracts included in product sales revenue | (143.2) | (53.2) | 66.5 |
Affiliate management fee revenue | (21.2) | (21.2) | (21.2) |
Total revenue from contracts with customers under ASC 606 | 2,472.6 | 2,147.2 | 2,545.1 |
Transportation and terminals revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,798.9 | 1,743.3 | 1,913.9 |
Product sales revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 913 | 557.5 | 665.8 |
Affiliate management fee revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 21.2 | 21.2 | 21.2 |
Transferred over Time | Transportation | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,144.5 | 1,048.3 | 1,169.3 |
Transferred over Time | Terminalling | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 117.1 | 131.1 | 157.7 |
Transferred over Time | Storage | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 286.1 | 321.7 | 328.8 |
Transferred over Time | Ancillary services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 155.1 | 141.8 | 157 |
Transferred over Time | Lease revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 96.1 | 100.4 | 101.1 |
Transferred over Time | Transportation and terminals revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,798.9 | 1,743.3 | 1,913.9 |
Transferred at Point in Time | Product sales revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 913 | 557.5 | 665.8 |
Operating Segments | Refined Products | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,108.8 | 1,721.1 | 1,943.2 |
Lease revenue | (20.4) | (23.7) | (27.9) |
(Gains) losses from futures contracts included in product sales revenue | (127.2) | (56.8) | 63.5 |
Affiliate management fee revenue | (6.4) | (6.3) | (6.7) |
Total revenue from contracts with customers under ASC 606 | 1,954.8 | 1,634.3 | 1,972.1 |
Operating Segments | Refined Products | Transportation and terminals revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,338.5 | 1,190.4 | 1,299 |
Operating Segments | Refined Products | Product sales revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 763.9 | 524.4 | 637.5 |
Operating Segments | Refined Products | Affiliate management fee revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 6.4 | 6.3 | 6.7 |
Operating Segments | Refined Products | Transferred over Time | Transportation | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 915.7 | 742.9 | 787.7 |
Operating Segments | Refined Products | Transferred over Time | Terminalling | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 100.1 | 109.6 | 139.9 |
Operating Segments | Refined Products | Transferred over Time | Storage | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 177.1 | 199.3 | 214.9 |
Operating Segments | Refined Products | Transferred over Time | Ancillary services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 125.2 | 114.9 | 128.6 |
Operating Segments | Refined Products | Transferred over Time | Lease revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 20.4 | 23.7 | 27.9 |
Operating Segments | Refined Products | Transferred over Time | Transportation and terminals revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,338.5 | 1,190.4 | 1,299 |
Operating Segments | Refined Products | Transferred at Point in Time | Product sales revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 763.9 | 524.4 | 637.5 |
Operating Segments | Crude Oil | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 630.1 | 607.5 | 663.1 |
Lease revenue | (75.7) | (76.7) | (73.2) |
(Gains) losses from futures contracts included in product sales revenue | (16) | 3.6 | 3 |
Affiliate management fee revenue | (14.8) | (14.9) | (14.5) |
Total revenue from contracts with customers under ASC 606 | 523.6 | 519.5 | 578.4 |
Operating Segments | Crude Oil | Transportation and terminals revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 466.2 | 559.5 | 620.3 |
Operating Segments | Crude Oil | Product sales revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 149.1 | 33.1 | 28.3 |
Operating Segments | Crude Oil | Affiliate management fee revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 14.8 | 14.9 | 14.5 |
Operating Segments | Crude Oil | Transferred over Time | Transportation | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 228.8 | 305.4 | 381.6 |
Operating Segments | Crude Oil | Transferred over Time | Terminalling | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 17 | 21.5 | 17.8 |
Operating Segments | Crude Oil | Transferred over Time | Storage | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 114.8 | 129 | 119.3 |
Operating Segments | Crude Oil | Transferred over Time | Ancillary services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 29.9 | 26.9 | 28.4 |
Operating Segments | Crude Oil | Transferred over Time | Lease revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 75.7 | 76.7 | 73.2 |
Operating Segments | Crude Oil | Transferred over Time | Transportation and terminals revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 466.2 | 559.5 | 620.3 |
Operating Segments | Crude Oil | Transferred at Point in Time | Product sales revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 149.1 | 33.1 | 28.3 |
Intersegment Eliminations | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | (5.8) | (6.6) | (5.4) |
Lease revenue | 0 | 0 | 0 |
(Gains) losses from futures contracts included in product sales revenue | 0 | 0 | 0 |
Affiliate management fee revenue | 0 | 0 | 0 |
Total revenue from contracts with customers under ASC 606 | (5.8) | (6.6) | (5.4) |
Intersegment Eliminations | Transportation and terminals revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | (5.8) | (6.6) | (5.4) |
Intersegment Eliminations | Product sales revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Intersegment Eliminations | Affiliate management fee revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Intersegment Eliminations | Transferred over Time | Transportation | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Intersegment Eliminations | Transferred over Time | Terminalling | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Intersegment Eliminations | Transferred over Time | Storage | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | (5.8) | (6.6) | (5.4) |
Intersegment Eliminations | Transferred over Time | Ancillary services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Intersegment Eliminations | Transferred over Time | Lease revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Intersegment Eliminations | Transferred over Time | Transportation and terminals revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | (5.8) | (6.6) | (5.4) |
Intersegment Eliminations | Transferred at Point in Time | Product sales revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 0 | $ 0 | $ 0 |
Revenue (Contract Assets and Li
Revenue (Contract Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable from contracts with customers | $ 134.8 | $ 103.3 |
Contract assets | 12.5 | 12.2 |
Contract liabilities | $ 100.1 | $ 102.7 |
Revenue (Remaining Performance
Revenue (Remaining Performance Obligation) (Details) $ in Millions | Dec. 31, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 2,944.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining terms | 12 months |
Revenue, remaining performance obligation, amount | $ 626.3 |
Refined Products | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | 1,874.5 |
Refined Products | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | 368.9 |
Crude Oil | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | 1,069.8 |
Crude Oil | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 257.4 |
Minimum | Refined Products | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining terms | 1 year |
Minimum | Crude Oil | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining terms | 1 year |
Maximum | Refined Products | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining terms | 17 years |
Maximum | Crude Oil | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining terms | 10 years |
Property, Plant and Equipment_3
Property, Plant and Equipment and Other Intangibles (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Interest costs threshold for capitalization construction in process | $ 0.5 | ||
Long-term debt, weighted average interest rate, over time | 4.40% | 4.40% | 4.60% |
Property, plant and equipment | $ 8,045.9 | $ 7,943.8 | |
Depreciation expense | $ 225.2 | 240.5 | $ 227.5 |
Finite-lived intangible asset, useful life | 16 years | ||
Amortization of intangible assets | $ 2.7 | 2.7 | $ 3.3 |
Other | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 261.2 | 280.2 | |
Capitalized Interest | Other | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 98.7 | $ 96.2 | |
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Finite-lived intangible asset, useful life | 7 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Finite-lived intangible asset, useful life | 30 years |
Property, Plant and Equipment_4
Property, Plant and Equipment and Other Intangibles (Property, Plant and Equipment) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 8,045.9 | $ 7,943.8 |
Construction work-in-progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 89.5 | 122 |
Land and rights-of-way | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 374.3 | 373.9 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 121.8 | 119.7 |
Storage tanks | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 1,986.7 | 1,952.7 |
Pipeline and station equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 3,386 | 3,325.9 |
Processing equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 1,826.4 | 1,769.4 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 261.2 | $ 280.2 |
Minimum | Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Estimated depreciable life, years | 10 years | |
Minimum | Storage tanks | ||
Property, Plant and Equipment [Line Items] | ||
Estimated depreciable life, years | 10 years | |
Minimum | Pipeline and station equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated depreciable life, years | 10 years | |
Minimum | Processing equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated depreciable life, years | 3 years | |
Minimum | Other | ||
Property, Plant and Equipment [Line Items] | ||
Estimated depreciable life, years | 3 years | |
Maximum | Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Estimated depreciable life, years | 53 years | |
Maximum | Storage tanks | ||
Property, Plant and Equipment [Line Items] | ||
Estimated depreciable life, years | 49 years | |
Maximum | Pipeline and station equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated depreciable life, years | 59 years | |
Maximum | Processing equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated depreciable life, years | 56 years | |
Maximum | Other | ||
Property, Plant and Equipment [Line Items] | ||
Estimated depreciable life, years | 53 years |
Investments in Non-Controlled_3
Investments in Non-Controlled Entities (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | May 01, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments unamortized excess investment net | $ 32 | $ 33 | |||
Proceeds from disposition of assets | 275.1 | 334.8 | $ 65.4 | ||
Gain on disposition of assets | 75 | 12.9 | 29 | ||
Equity Method Investee | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Other revenues from transactions with related party | $ 2.5 | $ 3.6 | $ 5.3 | ||
MVP Terminalling, LLC (“MVP”) | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Proceeds from disposition of assets | $ 272.1 | ||||
Gain on disposition of assets | $ 70.4 | ||||
Ownership interest | 25.00% | 25.00% | |||
MVP Terminalling, LLC (“MVP”) | Equity Method Investee | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Purchases from related party | $ 7.6 |
Investments in Non-Controlled_4
Investments in Non-Controlled Entities (Equity Method Investments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | May 01, 2021 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||||
Total revenue | $ 2,733.1 | $ 2,322 | $ 2,600.9 | ||
Operating expense | 569.7 | 587.8 | 616.4 | ||
Other operating income (expense) | 2.8 | 0.1 | 3 | ||
Trade Accounts Receivable | 135.2 | 103.6 | |||
Other Accounts Receivable | 34.6 | 37.1 | |||
Change in Equity Method Investments [Roll Forward] | |||||
Beginning balance | 1,213.9 | 1,240.6 | |||
Additional investment | 5.6 | ||||
Sale of ownership interests | (199.8) | ||||
Proportionate share of earnings | 156.2 | ||||
Amortization of excess investment and capitalized interest | (1.8) | ||||
Earnings of non-controlled entities | 154.4 | 153.3 | 169 | ||
Distributions from operations of non-controlled entities | 193.3 | 207.6 | 203.6 | ||
Ending balance | 980.8 | 1,213.9 | 1,240.6 | ||
Balance Sheet Information: | |||||
Current assets | 843.2 | 405.1 | |||
Total assets | 8,030 | 8,197 | 8,437.7 | ||
Current liabilities | 679.6 | 558.6 | |||
Equity | 1,899.8 | 2,303.8 | 2,715 | $ 2,643.4 | |
Income Statement Information: | |||||
Revenue | 2,733.1 | 2,322 | 2,600.9 | ||
Equity Method Investments | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total revenue | 733.1 | 752.7 | 782 | ||
Balance Sheet Information: | |||||
Current assets | 227 | 243.8 | |||
Noncurrent assets | 2,795.7 | 2,846.7 | |||
Total assets | 3,022.7 | 3,090.5 | |||
Current liabilities | 178.6 | 143.6 | |||
Noncurrent liabilities | 59.5 | 57.5 | |||
Total liabilities | 238.1 | 201.1 | |||
Equity | 2,784.6 | 2,889.4 | |||
Income Statement Information: | |||||
Revenue | 733.1 | 752.7 | 782 | ||
Net income | $ 463.4 | 471.4 | 507.5 | ||
BridgeTex Pipeline Company, LLC (“BridgeTex”) | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership Interest | 30.00% | ||||
BridgeTex Pipeline Company, LLC (“BridgeTex”) | Equity Method Investee | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Trade Accounts Receivable | $ 1.2 | 0.4 | |||
Other Accounts Receivable | 0 | 0 | |||
Other Accounts Payable | 0.3 | 1 | |||
Long-Term Receivables | $ 0 | 0 | |||
Double Eagle Pipeline LLC (“Double Eagle”) | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership Interest | 50.00% | ||||
Double Eagle Pipeline LLC (“Double Eagle”) | Equity Method Investee | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Trade Accounts Receivable | $ 0.2 | 0.3 | |||
Other Accounts Receivable | 0 | 0 | |||
Other Accounts Payable | 0 | 0 | |||
Long-Term Receivables | $ 0 | 0 | |||
HoustonLink Pipeline Company, LLC (“HoustonLink”) | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership Interest | 50.00% | ||||
HoustonLink Pipeline Company, LLC (“HoustonLink”) | Equity Method Investee | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Trade Accounts Receivable | $ 0 | 0 | |||
Other Accounts Receivable | 0 | 0 | |||
Other Accounts Payable | 0.2 | 0.1 | |||
Long-Term Receivables | $ 0 | 0 | |||
MVP Terminalling, LLC (“MVP”) | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership Interest | 25.00% | 25.00% | |||
MVP Terminalling, LLC (“MVP”) | Equity Method Investee | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Other operating income (expense) | $ 0 | 0 | 0.3 | ||
Trade Accounts Receivable | 0 | 0 | |||
Other Accounts Receivable | 0.6 | 0.5 | |||
Other Accounts Payable | 2.2 | 2.3 | |||
Long-Term Receivables | $ 0 | 0 | |||
Powder Springs Logistics, LLC (“Powder Springs”) | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership Interest | 50.00% | ||||
Powder Springs Logistics, LLC (“Powder Springs”) | Equity Method Investee | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Trade Accounts Receivable | $ 0 | 0 | |||
Other Accounts Receivable | 0 | 0 | |||
Other Accounts Payable | 0 | 0 | |||
Long-Term Receivables | $ 0 | 10.2 | |||
Saddlehorn Pipeline Company, LLC (“Saddlehorn”) | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership Interest | 30.00% | ||||
Saddlehorn Pipeline Company, LLC (“Saddlehorn”) | Equity Method Investee | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Trade Accounts Receivable | $ 0 | 0 | |||
Other Accounts Receivable | 0.2 | 0.1 | |||
Other Accounts Payable | 0 | 0 | |||
Long-Term Receivables | $ 0 | 0 | |||
Seabrook Logistics, LLC (“Seabrook”) | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership Interest | 50.00% | ||||
Seabrook Logistics, LLC (“Seabrook”) | Equity Method Investee | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Operating expense | $ 19.7 | 29.1 | 25.9 | ||
Other operating income (expense) | 0.4 | 1.4 | 0 | ||
Trade Accounts Receivable | 0 | 0 | |||
Other Accounts Receivable | 0.1 | 0 | |||
Other Accounts Payable | 3.2 | 7.3 | |||
Long-Term Receivables | $ 0 | 0 | |||
Texas Frontera, LLC (“Texas Frontera”) | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership Interest | 50.00% | ||||
Transportation and terminals revenue | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total revenue | $ 1,798.9 | 1,743.3 | 1,913.9 | ||
Income Statement Information: | |||||
Revenue | 1,798.9 | 1,743.3 | 1,913.9 | ||
Transportation and terminals revenue | BridgeTex Pipeline Company, LLC (“BridgeTex”) | Equity Method Investee | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total revenue | 43.7 | 42.3 | 41.8 | ||
Income Statement Information: | |||||
Revenue | 43.7 | 42.3 | 41.8 | ||
Transportation and terminals revenue | Double Eagle Pipeline LLC (“Double Eagle”) | Equity Method Investee | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total revenue | 3 | 4.9 | 6.2 | ||
Income Statement Information: | |||||
Revenue | 3 | 4.9 | 6.2 | ||
Transportation and terminals revenue | Saddlehorn Pipeline Company, LLC (“Saddlehorn”) | Equity Method Investee | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total revenue | 2.3 | 2.5 | 2.2 | ||
Income Statement Information: | |||||
Revenue | 2.3 | 2.5 | 2.2 | ||
Product sales revenue | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total revenue | 913 | 557.5 | 665.8 | ||
Income Statement Information: | |||||
Revenue | 913 | 557.5 | 665.8 | ||
Product sales revenue | Seabrook Logistics, LLC (“Seabrook”) | Equity Method Investee | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total revenue | 0 | 0 | 0.3 | ||
Income Statement Information: | |||||
Revenue | $ 0 | $ 0 | $ 0.3 |
Inventory (Inventory) (Details)
Inventory (Inventory) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Refined products | $ 138 | $ 72 |
Crude oil | 25.4 | 32.4 |
Liquefied petroleum gases | 42 | 25 |
Transmix | 72.4 | 23.4 |
Additives | 3.3 | 5.4 |
Total inventory | $ 281.1 | $ 158.2 |
Supplemental Cash Flows Infor_3
Supplemental Cash Flows Information (Changes in Components of Operating Assets and Liabilities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |||
Trade accounts receivable and other accounts receivable | $ (29.1) | $ (0.9) | $ (20.3) |
Inventory | (122.9) | 14 | 2.7 |
Accounts payable | 16 | 4.5 | (1.9) |
Accrued payroll and benefits | 22.8 | (22.3) | 4.8 |
Accrued interest payable | 0 | (5.3) | 1 |
Accrued taxes other than income | 8.8 | 4.4 | 12.6 |
Deferred revenue | (6.1) | (10.7) | (11.4) |
Accrued product liabilities | 78.3 | (8.5) | 15.9 |
Other current and noncurrent assets and liabilities | 22.5 | (12.3) | (1.3) |
Changes in components of operating assets and liabilities | $ (9.7) | $ (37.1) | $ 2.1 |
Supplemental Cash Flows Infor_4
Supplemental Cash Flows Information (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |||
Increase (decrease) in long-term pension and benefits liability | $ (16.3) | $ 21.5 | $ 27 |
Debt (Consolidated Debt) (Detai
Debt (Consolidated Debt) (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | May 31, 2020 | Dec. 31, 2019 | Aug. 31, 2019 | |
Debt Instrument [Line Items] | ||||||
Face value of long-term debt | $ 5,108,000,000 | $ 5,000,000,000 | ||||
Unamortized debt issuance costs | [1] | (37,800,000) | (40,100,000) | |||
Net unamortized debt premium | [1] | 18,600,000 | 18,800,000 | |||
Long-term debt, net | 5,088,800,000 | 4,978,700,000 | ||||
Commercial paper | ||||||
Debt Instrument [Line Items] | ||||||
Face value of long-term debt | $ 108,000,000 | 0 | ||||
3.20% Notes due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 3.20% | |||||
Face value of long-term debt | $ 250,000,000 | 250,000,000 | ||||
5.00% Notes due 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 5.00% | |||||
Face value of long-term debt | $ 650,000,000 | 650,000,000 | ||||
3.25% Notes due 2030 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 3.25% | 3.25% | ||||
Face value of long-term debt | $ 500,000,000 | 500,000,000 | $ 500,000,000 | |||
6.40% Notes due 2037 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 6.40% | |||||
Face value of long-term debt | $ 250,000,000 | 250,000,000 | ||||
4.20% Notes due 2042 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 4.20% | |||||
Face value of long-term debt | $ 250,000,000 | 250,000,000 | ||||
5.15% Notes due 2043 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 5.15% | |||||
Face value of long-term debt | $ 550,000,000 | 550,000,000 | ||||
4.20% Notes due 2045 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 4.20% | |||||
Face value of long-term debt | $ 250,000,000 | 250,000,000 | ||||
4.25% Notes due 2046 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 4.25% | |||||
Face value of long-term debt | $ 500,000,000 | 500,000,000 | ||||
4.20% Notes due 2047 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 4.20% | |||||
Face value of long-term debt | $ 500,000,000 | 500,000,000 | ||||
4.85% Notes due 2049 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 4.85% | 4.85% | ||||
Face value of long-term debt | $ 500,000,000 | 500,000,000 | $ 500,000,000 | |||
3.95% Notes due 2050 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 3.95% | 3.95% | ||||
Face value of long-term debt | $ 800,000,000 | $ 800,000,000 | $ 500,000,000 | |||
[1] | Debt issuance costs and note discounts and premiums are being amortized or accreted to the applicable notes over the respective lives of those notes. |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |||
2022 | $ 0 | ||
2023 | 0 | ||
2024 | 0 | ||
2025 | 250,000,000 | ||
Thereafter | $ 4,750,000,000 | ||
Long-term debt, weighted average interest rate, over time | 4.40% | 4.40% | 4.60% |
Cash payments for interest | $ 221,600,000 | $ 234,500,000 | $ 217,100,000 |
Revolving Credit Facility | |||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||
Maximum borrowing capacity | $ 1,000,000,000 | ||
Commitment fee percentage | 0.125% | ||
Borrowings outstanding | $ 0 | 0 | |
Letter of credit obligations | $ 3,500,000 | $ 3,500,000 | |
Consolidated debt to EBITDA ratio | 5 | ||
Revolving Credit Facility | Minimum | |||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||
Basis spread on variable rate | 0.875% | ||
Commitment fee percentage | 0.075% | ||
Revolving Credit Facility | Maximum | |||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||
Basis spread on variable rate | 1.50% | ||
Commitment fee percentage | 0.20% | ||
Commercial Paper | |||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||
Maximum borrowing capacity | $ 1,000,000,000 | ||
Borrowings outstanding | $ 108,000,000 | ||
Long-term debt, weighted average interest rate, over time | 0.20% | 0.40% | |
Commercial Paper | Maximum | |||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||
Term of contract | 397 days |
Leases (Lessee, Operating Lease
Leases (Lessee, Operating Lease Liability, Maturity) (Details) $ in Millions | Dec. 31, 2021USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2022 | $ 31.1 |
2023 | 31.3 |
2024 | 31.4 |
2025 | 28.4 |
2026 | 19.1 |
Thereafter | 51.7 |
Total future minimum rental payments | 193 |
Present value discount | 19.9 |
Total operating lease liability | 173.1 |
Third Party Leases | |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2022 | 21.2 |
2023 | 21.4 |
2024 | 21.7 |
2025 | 21.8 |
2026 | 12.5 |
Thereafter | 34.1 |
Total future minimum rental payments | 132.7 |
Present value discount | 12.1 |
Total operating lease liability | 120.6 |
Seabrook Lease | Equity Method Investee | Seabrook Logistics, LLC (“Seabrook”) | |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2022 | 9.9 |
2023 | 9.9 |
2024 | 9.7 |
2025 | 6.6 |
2026 | 6.6 |
Thereafter | 17.6 |
Total future minimum rental payments | 60.3 |
Present value discount | 7.8 |
Total operating lease liability | $ 52.5 |
Leases (Lessee, Operating Lea_2
Leases (Lessee, Operating Lease, Disclosure) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Fixed lease expense | $ 33.7 | $ 33.5 | $ 30 |
Short-term lease expense | 1.7 | 1.3 | 1.6 |
Variable lease expense | 10.2 | 18.9 | 18.1 |
Total lease expense | 45.6 | 53.7 | 49.7 |
Current lease liability | 25.8 | 27.5 | |
Long-term lease liability | 147.3 | 137.5 | |
Right-of-use asset | 174.2 | 166.1 | |
Operating cash flows for operating leases | $ 45.7 | $ 53.2 | |
Weighted average remaining lease term (years) | 7 years | 7 years | |
Weighted average discount rate | 3.40% | 3.80% | |
Third Party Leases | |||
Lessee, Lease, Description [Line Items] | |||
Fixed lease expense | $ 21 | $ 19.2 | 19.2 |
Short-term lease expense | 1.7 | 1.3 | 1.6 |
Variable lease expense | 3.4 | 4.1 | 3 |
Total lease expense | 26.1 | 24.6 | 23.8 |
Current lease liability | 17.8 | 17.1 | |
Long-term lease liability | 102.8 | 85 | |
Right-of-use asset | 121.7 | 103.2 | |
Operating cash flows for operating leases | $ 26.2 | $ 24.1 | |
Weighted average remaining lease term (years) | 7 years | 6 years | |
Weighted average discount rate | 3.00% | 3.70% | |
Seabrook Logistics, LLC (“Seabrook”) | Equity Method Investee | Seabrook Lease | |||
Lessee, Lease, Description [Line Items] | |||
Fixed lease expense | $ 12.7 | $ 14.3 | 10.8 |
Short-term lease expense | 0 | 0 | 0 |
Variable lease expense | 6.8 | 14.8 | 15 |
Total lease expense | 19.5 | 29.1 | $ 25.8 |
Current lease liability | 8 | 10.4 | |
Long-term lease liability | 44.5 | 52.5 | |
Right-of-use asset | 52.5 | 62.9 | |
Operating cash flows for operating leases | $ 19.5 | $ 29.1 | |
Weighted average remaining lease term (years) | 7 years | 7 years | |
Weighted average discount rate | 4.10% | 4.00% |
Leases (Lessor, Future Minimum
Leases (Lessor, Future Minimum Payments Receivable) (Details) $ in Millions | Dec. 31, 2021USD ($) |
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | |
2022 | $ 24.9 |
2023 | 25.2 |
2024 | 21.9 |
2025 | 13.8 |
2026 | 13.1 |
Thereafter | 32.9 |
Total | $ 131.8 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Variable lease revenue | $ 61 | $ 61.4 | $ 58.4 |
Processing equipment | |||
Lessor, Lease, Description [Line Items] | |||
Property, plant, and equipment, lessor asset under operating lease, after accumulated depreciation | 216.9 | ||
Storage tanks | |||
Lessor, Lease, Description [Line Items] | |||
Property, plant, and equipment, lessor asset under operating lease, after accumulated depreciation | 56.4 | ||
Pipeline and station equipment | |||
Lessor, Lease, Description [Line Items] | |||
Property, plant, and equipment, lessor asset under operating lease, after accumulated depreciation | 47.5 | ||
Other | |||
Lessor, Lease, Description [Line Items] | |||
Property, plant, and equipment, lessor asset under operating lease, after accumulated depreciation | $ 29 |
Leases (Investment in Direct Fi
Leases (Investment in Direct Financing Lease) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Sales-type and Direct Financing Leases, Lease Receivables, Gross Difference, Amount [Abstract] | ||
Total minimum lease payments receivable | $ 12.2 | $ 14 |
Less: Unearned income | 1.8 | 2.3 |
Recorded net investment in sales-type lease | 10.4 | 11.7 |
Other accounts receivable | 1.3 | 1.2 |
Long-term receivables | 9.1 | 10.5 |
Total | 10.4 | $ 11.7 |
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract] | ||
2022 | 1.7 | |
2023 | 1.7 | |
2024 | 1.7 | |
2025 | 1.7 | |
2026 | 1.7 | |
Thereafter | $ 3.5 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)plan | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, expenses | $ 10.6 | $ 12.2 | $ 11.4 |
Number of sponsored pension plans | plan | 2 | ||
Number of sponsored pension plans, non-union employees | plan | 1 | ||
Number of sponsored pension plans, union employees | plan | 1 | ||
Health care cost trend rate assumed, next fiscal year | 6.00% | ||
Ultimate health care cost trend rate | 5.08% | ||
Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target | 70.00% | 67.00% | |
Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target | 30.00% | 30.00% | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actuarial (gain) loss | $ 19.4 | $ (53.2) | |
Contributions estimated to be paid | 37.2 | ||
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actuarial (gain) loss | (0.9) | $ (2.5) | |
Contributions estimated to be paid | $ 1.7 |
Employee Benefit Plans (Changes
Employee Benefit Plans (Changes in Benefit Obligations and Plan Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Benefits | |||
Change in benefit obligations: | |||
Benefit obligations at beginning of year | $ 443,600 | $ 381,200 | |
Service cost | 28,200 | 27,700 | $ 25,400 |
Interest cost | 9,500 | 11,000 | 12,200 |
Plan participants’ contributions | 0 | 0 | |
Actuarial (gain) loss | (19,400) | 53,200 | |
Benefits paid | (29,200) | (23,100) | |
Curtailment gain | 0 | (1,700) | |
Settlement payments | (9,300) | (4,700) | |
Benefit obligations at end of year | 423,400 | 443,600 | 381,200 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 295,700 | 249,200 | |
Employer contributions | 27,600 | 29,300 | |
Plan participants’ contributions | 0 | 0 | |
Actual return on plan assets | 9,700 | 43,600 | |
Benefits paid | (29,200) | (23,100) | |
Settlement payments | (9,300) | (3,300) | |
Fair value of plan assets at end of year | 294,500 | 295,700 | 249,200 |
Funded status at end of year | (128,900) | (147,900) | |
Accumulated benefit obligations | 305,000 | 324,800 | |
Other Postretirement Benefits | |||
Change in benefit obligations: | |||
Benefit obligations at beginning of year | 17,300 | 15,200 | |
Service cost | 300 | 300 | 200 |
Interest cost | 400 | 500 | 500 |
Plan participants’ contributions | 800 | 600 | |
Actuarial (gain) loss | 900 | 2,500 | |
Benefits paid | (1,900) | (1,800) | |
Curtailment gain | 0 | 0 | |
Settlement payments | 0 | 0 | |
Benefit obligations at end of year | 17,800 | 17,300 | 15,200 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Employer contributions | 1,100 | 1,200 | |
Plan participants’ contributions | 800 | 600 | |
Actual return on plan assets | 0 | 0 | |
Benefits paid | (1,900) | (1,800) | |
Settlement payments | 0 | 0 | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Funded status at end of year | $ (17,800) | $ (17,300) |
Employee Benefit Plans (Pension
Employee Benefit Plans (Pension Plans with Obligations in Excess of Assets) (Details) - Pension Benefits - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation | $ 423,400 | $ 443,600 | $ 381,200 |
Fair value of plan assets | 294,500 | 295,700 | $ 249,200 |
Accumulated benefit obligation | $ 305,000 | $ 324,800 |
Employee Benefit Plans (Amounts
Employee Benefit Plans (Amounts Recognized in Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Amounts recognized in consolidated balance sheets: | ||
Long-term pension and benefits | $ 145,000 | $ 163,800 |
Accumulated other comprehensive loss: | ||
Accumulated other comprehensive loss | (155,000) | (183,200) |
Pension Benefits | ||
Amounts recognized in consolidated balance sheets: | ||
Current accrued benefit cost | 0 | 0 |
Long-term pension and benefits | 128,900 | 147,900 |
Amounts recognized in consolidated balance sheets | 128,900 | 147,900 |
Accumulated other comprehensive loss: | ||
Net actuarial loss | (95,300) | (120,500) |
Prior service credit | 2,500 | 2,700 |
Accumulated other comprehensive loss | (92,800) | (117,800) |
Net amount of liabilities and accumulated other comprehensive loss recognized in consolidated balance sheets | 36,100 | 30,100 |
Other Postretirement Benefits | ||
Amounts recognized in consolidated balance sheets: | ||
Current accrued benefit cost | 1,700 | 1,400 |
Long-term pension and benefits | 16,100 | 15,900 |
Amounts recognized in consolidated balance sheets | 17,800 | 17,300 |
Accumulated other comprehensive loss: | ||
Net actuarial loss | (10,700) | (10,400) |
Prior service credit | 0 | 0 |
Accumulated other comprehensive loss | (10,700) | (10,400) |
Net amount of liabilities and accumulated other comprehensive loss recognized in consolidated balance sheets | $ 7,100 | $ 6,900 |
Employee Benefit Plans (Consoli
Employee Benefit Plans (Consolidated Net Periodic Benefit Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Benefits | |||
Components of net periodic pension and postretirement benefit expense: | |||
Service cost | $ 28,200 | $ 27,700 | $ 25,400 |
Interest cost | 9,500 | 11,000 | 12,200 |
Expected return on plan assets | (11,900) | (11,400) | (9,400) |
Amortization of prior service credit | (200) | (200) | (200) |
Amortization of actuarial loss | 5,400 | 5,400 | 5,500 |
Settlement cost | 2,600 | 1,000 | 2,600 |
Settlement gain on disposition of assets | 0 | (1,300) | 0 |
Net periodic benefit cost | 33,600 | 32,200 | 36,100 |
Other Postretirement Benefits | |||
Components of net periodic pension and postretirement benefit expense: | |||
Service cost | 300 | 300 | 200 |
Interest cost | 400 | 500 | 500 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service credit | 0 | 0 | 0 |
Amortization of actuarial loss | 600 | 400 | 300 |
Settlement cost | 0 | 0 | 0 |
Settlement gain on disposition of assets | 0 | 0 | 0 |
Net periodic benefit cost | $ 1,300 | $ 1,200 | $ 1,000 |
Employee Benefit Plans (Other C
Employee Benefit Plans (Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in AOCL [Roll Forward] | |||
Beginning balance | $ 2,303,800 | $ 2,715,000 | $ 2,643,400 |
Net actuarial gain (loss) | 16,300 | (23,500) | (27,300) |
Recognition of prior service credit amortization in income | (200) | (200) | (200) |
Recognition of actuarial loss amortization in income | 6,000 | 5,900 | 5,800 |
Curtailment gain | 0 | 1,700 | 0 |
Settlement cost | 2,600 | 1,000 | 2,600 |
Total other comprehensive income (loss) | 28,200 | (21,100) | (41,600) |
Ending balance | 1,899,800 | 2,303,800 | 2,715,000 |
Pension Benefits | |||
Changes in AOCL [Roll Forward] | |||
Beginning balance | (117,800) | (104,700) | (88,600) |
Net actuarial gain (loss) | 17,200 | (21,000) | (24,000) |
Recognition of prior service credit amortization in income | (200) | (200) | (200) |
Recognition of actuarial loss amortization in income | 5,400 | 5,400 | 5,500 |
Curtailment gain | 0 | 1,700 | 0 |
Settlement cost | 2,600 | 1,000 | 2,600 |
Total other comprehensive income (loss) | 25,000 | (13,100) | (16,100) |
Ending balance | (92,800) | (117,800) | (104,700) |
Other Postretirement Benefits | |||
Changes in AOCL [Roll Forward] | |||
Beginning balance | (10,400) | (8,400) | (5,400) |
Net actuarial gain (loss) | (900) | (2,500) | (3,300) |
Recognition of prior service credit amortization in income | 0 | 0 | 0 |
Recognition of actuarial loss amortization in income | 600 | 500 | 300 |
Curtailment gain | 0 | 0 | 0 |
Settlement cost | 0 | 0 | 0 |
Total other comprehensive income (loss) | (300) | (2,000) | (3,000) |
Ending balance | $ (10,700) | $ (10,400) | $ (8,400) |
Employee Benefit Plans (Weighte
Employee Benefit Plans (Weighted-Average Rate Assumptions Used) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Benefits | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 2.61% | 2.23% | |
Rate of compensation increase | 6.51% | 4.53% | |
Cash balance interest crediting rate | 1.94% | 1.70% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 2.23% | 3.01% | 3.98% |
Rate of compensation increase | 4.53% | 4.58% | 6.48% |
Expected rate of return on plan assets | 4.10% | 4.50% | 6.00% |
Cash balance interest crediting rate | 1.70% | 2.16% | 2.78% |
Other Postretirement Benefits | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 2.64% | 2.30% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 2.30% | 3.06% | 4.08% |
Employee Benefit Plans (Fair Va
Employee Benefit Plans (Fair Value of Pension Plan Assets) (Details) - Pension Benefits - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | $ 294,500 | $ 295,700 | $ 249,200 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 294,300 | 295,500 | |||
Significant Observable Inputs (Level 2) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Significant Unobservable Inputs (Level 3) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 200 | 200 | |||
Small-cap fund | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [1] | 6,100 | 5,800 | ||
Small-cap fund | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [1] | 6,100 | 5,800 | ||
Small-cap fund | Significant Observable Inputs (Level 2) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Small-cap fund | Significant Unobservable Inputs (Level 3) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Mid-cap fund | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [1] | 6,000 | 5,800 | ||
Mid-cap fund | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [1] | 6,000 | 5,800 | ||
Mid-cap fund | Significant Observable Inputs (Level 2) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Mid-cap fund | Significant Unobservable Inputs (Level 3) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Large-cap fund | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [1] | 48,000 | 47,600 | ||
Large-cap fund | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [1] | 48,000 | 47,600 | ||
Large-cap fund | Significant Observable Inputs (Level 2) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Large-cap fund | Significant Unobservable Inputs (Level 3) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
International equity fund | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 30,100 | [1] | 29,900 | ||
International equity fund | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 30,100 | [1] | 29,900 | ||
International equity fund | Significant Observable Inputs (Level 2) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
International equity fund | Significant Unobservable Inputs (Level 3) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Short-term bond fund | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [1] | 4,200 | |||
Short-term bond fund | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [1] | 4,200 | |||
Short-term bond fund | Significant Observable Inputs (Level 2) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | ||||
Short-term bond fund | Significant Unobservable Inputs (Level 3) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | ||||
Intermediate-term bond fund | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [1] | 34,900 | |||
Intermediate-term bond fund | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [1] | 34,900 | |||
Intermediate-term bond fund | Significant Observable Inputs (Level 2) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | ||||
Intermediate-term bond fund | Significant Unobservable Inputs (Level 3) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | ||||
Long-term investment grade bond funds | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [1] | 197,100 | 161,000 | ||
Long-term investment grade bond funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | [1] | 197,100 | 161,000 | ||
Long-term investment grade bond funds | Significant Observable Inputs (Level 2) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Long-term investment grade bond funds | Significant Unobservable Inputs (Level 3) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Short-term investment fund | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 7,000 | 6,300 | |||
Short-term investment fund | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 7,000 | 6,300 | |||
Short-term investment fund | Significant Observable Inputs (Level 2) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Short-term investment fund | Significant Unobservable Inputs (Level 3) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Group annuity contract | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 200 | 200 | |||
Group annuity contract | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Group annuity contract | Significant Observable Inputs (Level 2) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 0 | 0 | |||
Group annuity contract | Significant Unobservable Inputs (Level 3) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | $ 200 | $ 200 | |||
[1] | We hold equity and fixed income securities through investments in mutual funds, which are dedicated to each category as indicated. |
Employee Benefit Plans (Target
Employee Benefit Plans (Target Allocation and Actual Weighted-Average Asset Allocation of Plan Assets) (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual | 30.00% | 30.00% |
Target | 30.00% | 30.00% |
Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual | 67.00% | 68.00% |
Target | 70.00% | 67.00% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual | 3.00% | 2.00% |
Target | 0.00% | 3.00% |
Employee Benefit Plans (Expecte
Employee Benefit Plans (Expected Benefit Payments) (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | $ 16,200 |
2023 | 18,100 |
2024 | 21,600 |
2025 | 22,400 |
2026 | 27,400 |
2027 through 2031 | 147,900 |
Other Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | 1,700 |
2023 | 1,500 |
2024 | 1,300 |
2025 | 1,300 |
2026 | 1,200 |
2027 through 2031 | $ 4,000 |
Long-Term Incentive Plan (Narra
Long-Term Incentive Plan (Narrative) (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Apr. 30, 2021 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Limited partners' capital account, units issued (in units) | 13.7 | 11.9 | |
Limited partner unitholders, units remaining available (in shares) | 2.4 | ||
Performance-Based Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award payout percentage, minimum | 0.00% | ||
Award payout percentage, maximum | 200.00% | ||
Award forfeiture period | 2 years | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years |
Long-Term Incentive Plan (Chang
Long-Term Incentive Plan (Changes in Non-Vested Unit Awards) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Unit Awards | |||
Beginning balance (in shares) | 693,708 | ||
Units granted during 2021 (in shares) | 583,696 | ||
Units vested during 2021 (in shares) | (329,688) | ||
Units forfeited during 2021 (in shares) | (31,277) | ||
Ending balance (in shares) | 916,439 | 693,708 | |
Weighted Average Fair Value | |||
Beginning balance (in dollars per share) | $ 61.70 | ||
Units granted during 2021 (in dollars per share) | 40.92 | ||
Units vested during 2021 (in dollars per share) | 62.16 | ||
Units forfeited during 2021 (in dollars per share) | 51.06 | ||
Ending balance (in dollars per share) | $ 48.67 | $ 61.70 | |
Performance-Based Awards | |||
Number of Unit Awards | |||
Beginning balance (in shares) | 340,164 | ||
Units granted during 2021 (in shares) | 281,823 | 189,632 | 182,834 |
Units vested during 2021 (in shares) | (161,484) | ||
Units forfeited during 2021 (in shares) | (14,578) | ||
Ending balance (in shares) | 445,925 | 340,164 | |
Weighted Average Fair Value | |||
Beginning balance (in dollars per share) | $ 62.35 | ||
Units granted during 2021 (in dollars per share) | 40.85 | $ 61.16 | $ 63.65 |
Units vested during 2021 (in dollars per share) | 63.62 | ||
Units forfeited during 2021 (in dollars per share) | 51.23 | ||
Ending balance (in dollars per share) | $ 48.66 | $ 62.35 | |
Time-Based Awards | |||
Number of Unit Awards | |||
Beginning balance (in shares) | 353,544 | ||
Units granted during 2021 (in shares) | 301,873 | 198,450 | 195,031 |
Units vested during 2021 (in shares) | (168,204) | ||
Units forfeited during 2021 (in shares) | (16,699) | ||
Ending balance (in shares) | 470,514 | 353,544 | |
Weighted Average Fair Value | |||
Beginning balance (in dollars per share) | $ 61.07 | ||
Units granted during 2021 (in dollars per share) | 40.99 | $ 61.18 | $ 62.91 |
Units vested during 2021 (in dollars per share) | 60.76 | ||
Units forfeited during 2021 (in dollars per share) | 50.92 | ||
Ending balance (in dollars per share) | $ 48.67 | $ 61.07 |
Long-Term Incentive Plan (Total
Long-Term Incentive Plan (Total Non-Vested Unit Awards) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-Vested Unit Awards (in shares) | 916,439 | 693,708 | |
Performance Adjustment to Unit Awards (in shares) | 17,211 | ||
Total Unit Award Accrual (in shares) | 933,650 | ||
Unrecognized Compensation Expense | [1] | $ 23.7 | |
Performance-Based Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-Vested Unit Awards (in shares) | 445,925 | 340,164 | |
Time-Based Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-Vested Unit Awards (in shares) | 470,514 | 353,544 | |
Time-Based Awards | 2022 vesting date | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-Vested Unit Awards (in shares) | 178,911 | ||
Performance Adjustment to Unit Awards (in shares) | 0 | ||
Total Unit Award Accrual (in shares) | 178,911 | ||
Unrecognized Compensation Expense | [1] | $ 3.7 | |
Time-Based Awards | 2023 vesting date | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-Vested Unit Awards (in shares) | 291,603 | ||
Performance Adjustment to Unit Awards (in shares) | 0 | ||
Total Unit Award Accrual (in shares) | 291,603 | ||
Unrecognized Compensation Expense | [1] | $ 8.3 | |
2020 awards | Performance-Based Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-Vested Unit Awards (in shares) | 171,400 | ||
Performance Adjustment to Unit Awards (in shares) | (51,420) | ||
Total Unit Award Accrual (in shares) | 119,980 | ||
Unrecognized Compensation Expense | [1] | $ 2.4 | |
2021 awards | Performance-Based Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-Vested Unit Awards (in shares) | 274,525 | ||
Performance Adjustment to Unit Awards (in shares) | 68,631 | ||
Total Unit Award Accrual (in shares) | 343,156 | ||
Unrecognized Compensation Expense | [1] | $ 9.3 | |
[1] | Unrecognized compensation expense will be recognized over the remaining vesting period of the awards. |
Long-Term Incentive Plan (Weigh
Long-Term Incentive Plan (Weighted-Average Grant Date Fair Values) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Units Awarded (in shares) | 583,696 | ||
Weighted-Average Fair Value (in dollars per share) | $ 40.92 | ||
Performance-Based Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Units Awarded (in shares) | 281,823 | 189,632 | 182,834 |
Weighted-Average Fair Value (in dollars per share) | $ 40.85 | $ 61.16 | $ 63.65 |
Time-Based Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Units Awarded (in shares) | 301,873 | 198,450 | 195,031 |
Weighted-Average Fair Value (in dollars per share) | $ 40.99 | $ 61.18 | $ 62.91 |
Long-Term Incentive Plan (Veste
Long-Term Incentive Plan (Vested Unit Awards) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Vested Common Units (in shares) | 316,336 | 235,127 | 436,629 |
Fair Value of Unit Awards on Vesting Date | $ 19.3 | $ 15.2 | $ 31 |
Intrinsic Value of Unit Awards on Vesting Date | $ 14.7 | $ 10 | $ 27.5 |
Long-Term Incentive Plan (Cash
Long-Term Incentive Plan (Cash Flow Effects of LTIP Settlements) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Number of Common Units Issued, Net of Tax Withholdings (in shares) | 150,435 | 275,093 | 199,792 |
Tax Withholdings and Other Cash Payments | $ 6.2 | $ 14.7 | $ 9.8 |
Employer Taxes | 0.7 | 1.3 | 0.9 |
Total Cash Payments | $ 6.9 | $ 16 | $ 10.7 |
Long-Term Incentive Plan (Equit
Long-Term Incentive Plan (Equity-Based Incentive Compensation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity-based incentive compensation expense | $ 21.8 | $ 12 | $ 24 |
Performance-Based Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity-based incentive compensation expense | 11.2 | 3.1 | 17.9 |
Time-Based Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity-based incentive compensation expense | $ 10.6 | $ 8.9 | $ 6.1 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Narrative) (Details) | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2020USD ($) | May 31, 2020USD ($) | Aug. 31, 2019USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)bbl | |
Derivative [Line Items] | ||||||
Face value of long-term debt | $ 5,000,000,000 | $ 5,108,000,000 | $ 5,000,000,000 | |||
Net payment on financial derivatives | 0 | 9,500,000 | $ 33,300,000 | |||
Commodity derivatives deposits | 34,200,000 | 46,300,000 | 34,200,000 | |||
Derivative liability | 20,500,000 | 17,200,000 | 20,500,000 | |||
Loss to be reclassified within twelve months | 3,500,000 | |||||
3.95% Notes due 2050 | ||||||
Derivative [Line Items] | ||||||
Face value of long-term debt | $ 300,000,000 | $ 300,000,000 | ||||
Interest rate | 3.95% | 3.95% | ||||
Net payment on financial derivatives | $ (1,000,000) | |||||
3.25% Notes due 2030 | ||||||
Derivative [Line Items] | ||||||
Face value of long-term debt | 500,000,000 | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 | ||
Interest rate | 3.25% | 3.25% | ||||
Net payment on financial derivatives | $ 10,400,000 | |||||
3.95% Notes due 2050 | ||||||
Derivative [Line Items] | ||||||
Face value of long-term debt | 800,000,000 | $ 500,000,000 | $ 800,000,000 | 800,000,000 | ||
Interest rate | 3.95% | 3.95% | ||||
Net payment on financial derivatives | $ 25,300,000 | |||||
4.85% Notes due 2049 | ||||||
Derivative [Line Items] | ||||||
Face value of long-term debt | 500,000,000 | $ 500,000,000 | 500,000,000 | $ 500,000,000 | ||
Interest rate | 4.85% | 4.85% | ||||
Net payment on financial derivatives | $ 8,000,000 | |||||
Basis derivative agreement | ||||||
Derivative [Line Items] | ||||||
Nonmonetary notional amount | bbl | 30,000 | |||||
Derivative liability | $ 10,200,000 | $ 1,500,000 | $ 10,200,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Schedule of Open Future Contracts) (Details) - Economic Hedges bbl in Millions | Dec. 31, 2021bbl |
Future Contract One | |
Derivative [Line Items] | |
Nonmonetary notional amount | 3.3 |
Future Contract Two | |
Derivative [Line Items] | |
Nonmonetary notional amount | 0.6 |
Derivative Financial Instrume_5
Derivative Financial Instruments (Schedule of Derivative Offset Amounts) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross Amounts of Recognized Liabilities | $ (22.3) | $ (21.7) |
Gross Amounts of Assets Offset in the Consolidated Balance Sheets | 5.1 | 1.2 |
Derivative Liability, Total | 17.2 | 20.5 |
Margin Deposit Amounts Not Offset in the Consolidated Balance Sheets | 46.3 | 34.2 |
Net Amount Offset | $ 29.1 | $ 13.7 |
Derivative Financial Instrume_6
Derivative Financial Instruments (Amounts Included in AOCL) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Losses Included in AOCL | |||
Beginning balance | $ 2,303.8 | $ 2,715 | $ 2,643.4 |
Net loss on cash flow hedges | 0 | (9.5) | (25.2) |
Reclassification of net loss on cash flow hedges to income | 3.5 | 3.5 | 2.7 |
Ending balance | 1,899.8 | 2,303.8 | 2,715 |
Derivative Losses Included in AOCL | |||
Derivative Losses Included in AOCL | |||
Beginning balance | (55) | (49) | (26.5) |
Ending balance | $ (51.5) | $ (55) | $ (49) |
Derivative Financial Instrume_7
Derivative Financial Instruments (Derivatives and Hedging-Cash Flow Hedges) (Details) - Interest Rate Contract - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Loss Recognized in AOCL on Derivatives | $ 0 | $ (9.5) | $ (25.2) |
Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Loss Reclassified from AOCL into Income | $ (3.5) | $ (3.5) | $ (2.7) |
Derivative Financial Instrume_8
Derivative Financial Instruments (Derivatives and Hedging-Overall-Subsequent Measurement) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized on Derivatives | $ (127.7) | $ 49.2 | $ (76.9) |
Product sales revenue | Commodity derivatives contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized on Derivatives | (143.2) | 53.2 | (66.5) |
Cost of product sales | Commodity derivatives contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized on Derivatives | 21.1 | 0.3 | (0.2) |
Other operating income (expense) | Basis derivative agreement | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized on Derivatives | $ (5.6) | $ (4.3) | $ (10.2) |
Derivative Financial Instrume_9
Derivative Financial Instruments (Derivatives and Hedging-Designated) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | $ 5.1 | $ 1.2 |
Liability Derivatives, Fair Value | 22.3 | 21.7 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 5.1 | 1.2 |
Liability Derivatives, Fair Value | 23.8 | 31.9 |
Not Designated as Hedging Instrument | Commodity derivatives contracts | Other noncurrent assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 1.1 | |
Not Designated as Hedging Instrument | Commodity derivatives contracts | Other noncurrent liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives, Fair Value | 0 | |
Not Designated as Hedging Instrument | Commodity derivatives contracts | Energy Marketing Contracts Assets, Current | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 5.1 | 0.1 |
Liability Derivatives, Fair Value | 22.3 | 21.7 |
Not Designated as Hedging Instrument | Basis derivative agreement | Other noncurrent assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 0 | |
Not Designated as Hedging Instrument | Basis derivative agreement | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 0 | 0 |
Not Designated as Hedging Instrument | Basis derivative agreement | Other noncurrent liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives, Fair Value | 1.4 | |
Not Designated as Hedging Instrument | Basis derivative agreement | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives, Fair Value | $ 1.5 | $ 8.8 |
Fair Value Disclosures (Details
Fair Value Disclosures (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)terminal | Dec. 31, 2021USD ($) | Dec. 31, 2019bbl | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of marine terminals sold | terminal | 3 | ||
Derivative liability | $ (20.5) | $ (17.2) | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term receivables | 0 | 0 | |
Contractual obligations | 0 | 0 | |
Debt | 0 | 0 | |
Significant Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term receivables | 0 | 0 | |
Contractual obligations | 0 | 0 | |
Debt | (5,880.9) | (5,711.5) | |
Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term receivables | 22.8 | 10.1 | |
Contractual obligations | (11.2) | (9.8) | |
Debt | 0 | 0 | |
Commodity derivatives contracts | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liability | (20.5) | (18.6) | |
Commodity derivatives contracts | Significant Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liability | 0 | 1.4 | |
Commodity derivatives contracts | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liability | 0 | 0 | |
Basis derivative agreement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Nonmonetary notional amount | bbl | 30,000 | ||
Derivative liability | (10.2) | (1.5) | |
Basis derivative agreement | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liability | 0 | 0 | |
Basis derivative agreement | Significant Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liability | (10.2) | (1.5) | |
Basis derivative agreement | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liability | 0 | 0 | |
Carrying Amount | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term receivables | 22.8 | 10.1 | |
Contractual obligations | (11.2) | (9.8) | |
Debt | (4,978.7) | (5,088.8) | |
Carrying Amount | Commodity derivatives contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liability | (20.5) | (17.2) | |
Carrying Amount | Basis derivative agreement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liability | (10.2) | (1.5) | |
Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term receivables | 22.8 | 10.1 | |
Contractual obligations | (11.2) | (9.8) | |
Debt | (5,880.9) | (5,711.5) | |
Fair Value | Commodity derivatives contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liability | (20.5) | (17.2) | |
Fair Value | Basis derivative agreement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liability | $ (10.2) | $ (1.5) |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Dec. 06, 2021USD ($)patentfacility | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($)terminal | Dec. 31, 2019USD ($) | Oct. 04, 2017facility |
Loss Contingencies [Line Items] | |||||
Accrual for environmental loss contingencies | $ 9.8 | $ 13.5 | |||
Environmental remediation expense | $ 3.2 | $ 3.4 | $ 3.8 | ||
Number of marine terminals sold | terminal | 3 | ||||
Powder Springs Logistics, LLC (“Powder Springs”) | |||||
Loss Contingencies [Line Items] | |||||
Ownership interest | 50.00% | ||||
Guarantee of Indebtedness of Others | Equity Method Investee | Powder Springs Logistics, LLC (“Powder Springs”) | |||||
Loss Contingencies [Line Items] | |||||
Contractual obligations | $ 0.4 | $ 0.4 | |||
Ownership interest | 50.00% | ||||
Guarantor obligations, maximum exposure, undiscounted | $ 25 | ||||
Other current liabilities | Performance Guarantee | |||||
Loss Contingencies [Line Items] | |||||
Contractual obligations | 0.5 | 0.6 | |||
Other noncurrent liabilities | Performance Guarantee | |||||
Loss Contingencies [Line Items] | |||||
Contractual obligations | $ 8.9 | $ 10.2 | |||
Unfavorable Regulatory Action | Settled Litigation | Sunoco v.s. Magellan | |||||
Loss Contingencies [Line Items] | |||||
Alleged patent infringement, number of facilities | facility | 8 | ||||
Patents found infringed, number | patent | 3 | ||||
Damages awarded, value | $ 9.4 | ||||
Patents found infringed, number of facilities | facility | 8 | ||||
Unfavorable Regulatory Action | Settled Litigation | Powder Springs Logistics, LLC (“Powder Springs”) | Sunoco v.s. Magellan | |||||
Loss Contingencies [Line Items] | |||||
Patents found infringed, number | patent | 1 | ||||
Damages awarded, value | $ 2.8 |
Concentration of Risks (Details
Concentration of Risks (Details) - employee | Jan. 31, 2022 | Dec. 31, 2021 |
Concentration Risk [Line Items] | ||
Number of employees | 1,715 | |
Number of Employees, Total | Unionized Employees Concentration Risk | Subsequent Event | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 13.00% | |
Corporate, Non-Segment | ||
Concentration Risk [Line Items] | ||
Number of employees | 526 | |
Refined Products | Operating Segments | ||
Concentration Risk [Line Items] | ||
Number of employees | 854 | |
Number of employees subject to sales agreement | 82 | |
Crude Oil | Operating Segments | ||
Concentration Risk [Line Items] | ||
Number of employees | 253 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - Director - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Methvin Company | |||
Related Party Transaction [Line Items] | |||
Other revenues from transactions with related party | $ 65.2 | $ 37.4 | $ 29.6 |
Accounts receivable, related parties, current | 5.4 | 3.9 | |
Methvin Company 2 | |||
Related Party Transaction [Line Items] | |||
Other revenues from transactions with related party | $ 0.3 | $ 0.5 |
Partners' Capital and Distrib_3
Partners' Capital and Distributions (Changes in Limited Partner Units Outstanding) (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
Capital Unit [Line Items] | ||||||
Stock repurchase program, authorized amount (up to) | $ 1,500,000,000 | |||||
Limited Partners' Capital Account [Roll Forward] | ||||||
Common units outstanding, beginning balance (in shares) | 223,119,811 | 228,403,428 | 228,195,160 | |||
Units repurchased (in shares) | (10,894,828) | (5,568,260) | ||||
Units issued (in shares) | 150,435 | 275,093 | 199,792 | |||
Common units outstanding, ending balance (in shares) | 212,387,990 | 223,119,811 | 228,403,428 | |||
Right to receive distribution in cash, period | 45 days | |||||
Removal of general partner, percentage vote required | 100.00% | |||||
Annual report available, period | 120 days | |||||
Tax reporting information, period | 90 days | |||||
Management | ||||||
Limited Partners' Capital Account [Roll Forward] | ||||||
Units issued (in shares) | 150,435 | 275,093 | [1] | 199,792 | ||
Director | ||||||
Limited Partners' Capital Account [Roll Forward] | ||||||
Units issued (in shares) | 12,572 | [1] | 9,550 | 8,476 | [1] | |
[1] | issued to settle the equity-based retainer paid to independent directors of our general partner. |
Partners' Capital and Distrib_4
Partners' Capital and Distributions (Distributions Made to Limited Partner) (Details) - USD ($) $ / shares in Units, $ in Millions | Nov. 12, 2021 | Aug. 13, 2021 | May 14, 2021 | Feb. 12, 2021 | Nov. 13, 2020 | Aug. 14, 2020 | May 15, 2020 | Feb. 14, 2020 | Nov. 14, 2019 | Aug. 14, 2019 | May 15, 2019 | Feb. 14, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Partners' Capital Notes [Abstract] | |||||||||||||||
Per Unit Distribution Amount (in dollars per share) | $ 1.0375 | $ 1.0275 | $ 1.0275 | $ 1.0275 | $ 1.0275 | $ 1.0275 | $ 1.0275 | $ 1.0275 | $ 1.0200 | $ 1.0125 | $ 1.0050 | $ 0.9975 | $ 4.1200 | $ 4.1100 | $ 4.0350 |
Total Distribution | $ 221.4 | $ 226.6 | $ 229 | $ 229.4 | $ 229.9 | $ 231.2 | $ 231.2 | $ 234.8 | $ 233 | $ 231.3 | $ 229.5 | $ 227.8 | $ 906.4 | $ 927.1 | $ 921.6 |
Subsequent Events (Details)
Subsequent Events (Details) | Jan. 31, 2022h | Feb. 13, 2022$ / shares | Dec. 31, 2021$ / shares | Nov. 12, 2021$ / shares | Aug. 13, 2021$ / shares | May 14, 2021$ / shares | Feb. 12, 2021$ / shares | Dec. 31, 2020$ / shares | Nov. 13, 2020$ / shares | Aug. 14, 2020$ / shares | May 15, 2020$ / shares | Feb. 14, 2020$ / shares | Dec. 31, 2019$ / shares | Nov. 14, 2019$ / shares | Aug. 14, 2019$ / shares | May 15, 2019$ / shares | Feb. 14, 2019$ / shares |
Subsequent Event [Line Items] | |||||||||||||||||
Per unit distribution amount (in dollars per share) | $ 4.1200 | $ 1.0375 | $ 1.0275 | $ 1.0275 | $ 1.0275 | $ 4.1100 | $ 1.0275 | $ 1.0275 | $ 1.0275 | $ 1.0275 | $ 4.0350 | $ 1.0200 | $ 1.0125 | $ 1.0050 | $ 0.9975 | ||
Subsequent Event | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Collective bargaining agreement, rolling extension term | h | 24 | ||||||||||||||||
Per unit distribution amount (in dollars per share) | $ 1.0375 | ||||||||||||||||
Subsequent Event | Number of Employees, Total | Unionized Employees Concentration Risk | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Concentration risk, percentage | 13.00% |