Derivative Instruments, Hedging Activities and Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2013

Derivative Instruments, Hedging Activities and Fair Value Measurements [Abstract]

Hedging Instruments Under the FASB's Derivative and Hedging Guidance

The following table summarizes our portfolio of interest rate swaps at December 31, 2013:

Hedged Transaction	Number and Type of Derivatives Outstanding	Notional Amount		Period of Hedge	Rate Swap	Accounting Treatment
Senior Notes AA	10 fixed-to-floating swaps	$	750.0	1/2011 to 2/2016	3.2% to 1.2%	Fair value hedge
Undesignated swaps	6 floating-to-fixed swaps	$	600.0	5/2010 to 7/2014	0.2% to 2.0%	Mark-to-market

The prices of natural gas, NGLs, crude oil, refined products and petrochemical products are subject to fluctuations in response to changes in supply and demand, market conditions and a variety of additional factors that are beyond our control. In order to manage such price risks, we enter into commodity derivative instruments such as physical forward contracts, futures contracts, fixed-for-float swaps, basis swaps and option contracts. The following table summarizes our portfolio of commodity derivative instruments outstanding at December 31, 2013 (volume measures as noted):

	Volume (1)				Accounting
Derivative Purpose	Current (2)		Long-Term (2)		Treatment
Derivatives designated as hedging instruments:
Natural gas processing:
Forecasted natural gas purchases for plant thermal reduction (Bcf)		7.0		n/a	Cash flow hedge
Forecasted sales of NGLs (MMBbls)		1.1		n/a	Cash flow hedge
Octane enhancement:
Forecasted purchases of NGLs (MMBbls)		0.4		n/a	Cash flow hedge
Forecasted sales of octane enhancement products (MMBbls)		3.1		0.1	Cash flow hedge
Natural gas marketing:
Forecasted sales of natural gas (Bcf)		2.6		n/a	Cash flow hedge
Natural gas storage inventory management activities (Bcf)		8.2		n/a	Fair value hedge
NGL marketing:
Forecasted purchases of NGLs and related hydrocarbon products (MMBbls)		5.9		n/a	Cash flow hedge
Forecasted sales of NGLs and related hydrocarbon products (MMBbls)		5.4		n/a	Cash flow hedge
Refined products marketing:
Forecasted purchases of refined products (MMBbls)		0.6		n/a	Cash flow hedge
Forecasted sales of refined products (MMBbls)		1.6		n/a	Cash flow hedge
Refined products inventory management activities (MMBbls)		0.1		n/a	Fair value hedge
Crude oil marketing:
Forecasted purchases of crude oil (MMBbls)		4.0		n/a	Cash flow hedge
Forecasted sales of crude oil (MMBbls)		5.8		n/a	Cash flow hedge
Derivatives not designated as hedging instruments:
Natural gas risk management activities (Bcf) (3,4)		94.7		19.7	Mark-to-market
Refined products risk management activities (MMBbls) (4)		0.8		n/a	Mark-to-market
Crude oil risk management activities (MMBbls) (4)		14.4		n/a	Mark-to-market

(1)	Volume for derivatives designated as hedging instruments reflects the total amount of volumes hedged whereas volume for derivatives not designated as hedging instruments reflects the absolute value of derivative notional volumes.
(2)	The maximum term for derivatives designated as cash flow hedges, derivatives designated as fair value hedges and derivatives not designated as hedging instruments is January 2015, May 2014 and October 2016, respectively.
(3)	Current volumes include 27.5 Bcf of physical derivative instruments that are predominantly priced at a marked-based index plus a premium or minus a discount related to location differences.
(4)	Reflects the use of derivative instruments to manage risks associated with transportation, processing and storage assets.

Derivative Assets and Liabilities Balance Sheet

The following table provides a balance sheet overview of our derivative assets and liabilities at the dates indicated:

	Asset Derivatives						Liability Derivatives
	December 31, 2013			December 31, 2012			December 31, 2013			December 31, 2012
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments
Interest rate derivatives	Other current assets	$	20.2	Other current assets	$	19.6	Other current liabilities	$	--	Other current liabilities	$	175.4
Interest rate derivatives	Other assets		12.4	Other assets		25.6	Other liabilities		--	Other liabilities		--
Total interest rate derivatives			32.6			45.2			--			175.4
Commodity derivatives	Other current assets		30.9	Other current assets		45.3	Other current liabilities		46.5	Other current liabilities		35.4
Commodity derivatives	Other assets		--	Other assets		--	Other liabilities		0.3	Other liabilities		0.5
Total commodity derivatives			30.9			45.3			46.8			35.9
Total derivatives designated as hedging instruments		$	63.5		$	90.5		$	46.8		$	211.3
Derivatives not designated as hedging instruments
Interest rate derivatives	Other current assets	$	--	Other current assets	$	--	Other current liabilities	$	7.8	Other current liabilities	$	12.2
Interest rate derivatives	Other assets		--	Other assets		--	Other liabilities		--	Other liabilities		5.0
Total interest rate derivatives			--			--			7.8			17.2
Commodity derivatives	Other current assets		7.6	Other current assets		15.7	Other current liabilities		5.5	Other current liabilities		8.9
Commodity derivatives	Other assets		2.8	Other assets		0.6	Other liabilities		2.8	Other liabilities		0.7
Total commodity derivatives			10.4			16.3			8.3			9.6
Total derivatives not designated as hedging instruments		$	10.4		$	16.3		$	16.1		$	26.8

Offsetting Financial Assets

Certain of our commodity derivative instruments are subject to master netting arrangements or similar agreements. The following tables present our derivative instruments subject to such arrangements at the dates indicated:

	Offsetting of Financial Assets and Derivative Assets
	Gross Amounts of Recognized Assets			Gross Amounts Offset in the Balance Sheet			Amounts of Assets Presented in the Balance Sheet			Gross Amounts Not Offset in the Balance Sheet								Amounts That Would Have Been Presented On Net Basis
										Financial Instruments				Cash Collateral Received
	(i)			(ii)			(iii) = (i) – (ii)			(iv)								(v) = (iii) + (iv)
As of December 31, 2013:
Commodity derivatives		$	41.3		$	--		$	41.3		$	(41.0	)		$	--			$	0.3
As of December 31, 2012:
Commodity derivatives		$	61.6		$	--		$	61.6		$	(38.7	)		$	(15.2	)		$	7.7

Offsetting Financial Liabilities

	Offsetting of Financial Liabilities and Derivative Liabilities
	Gross Amounts of Recognized Liabilities			Gross Amounts Offset in the Balance Sheet			Amounts of Liabilities Presented in the Balance Sheet			Gross Amounts Not Offset in the Balance Sheet								Amounts That Would Have Been Presented On Net Basis
										Financial Instruments				Cash Collateral Paid
	(i)			(ii)			(iii) = (i) – (ii)			(iv)								(v) = (iii) + (iv)
As of December 31, 2013:
Commodity derivatives		$	55.1		$	--		$	55.1		$	(41.0	)		$	( 9.3	)		$	4.8
As of December 31, 2012:
Commodity derivatives		$	45.5		$	--		$	45.5		$	(38.7	)		$	(4.3	)		$	2.5

Derivative Instruments Effects on Statements of Operations

The following tables present the effect of our derivative instruments designated as fair value hedges on our Statements of Consolidated Operations for the periods indicated:

Derivatives in Fair Value Hedging Relationships	Location	Gain (Loss) Recognized in Income on Derivative
		For the Year Ended December 31,
		2013				2012				2011
Interest rate derivatives	Interest expense		$	(13.1	)		$	2.7			$	24.7
Commodity derivatives	Revenue			(0.1	)			(6.4	)			17.1
Total			$	(13.2	)		$	(3.7	)		$	41.8

Derivatives in Fair Value Hedging Relationships	Location	Gain (Loss) Recognized in Income on Hedged Item
		For the Year Ended December 31,
		2013				2012				2011
Interest rate derivatives	Interest expense		$	12.8			$	(2.9	)		$	(24.5	)
Commodity derivatives	Revenue			(5.7	)			19.1				(14.9	)
Total			$	7.1			$	16.2			$	(39.4	)

Derivative Instruments Effects on Statements of Comprehensive Income

The following tables present the effect of our derivative instruments designated as cash flow hedges on our Statements of Consolidated Operations and Statements of Consolidated Comprehensive Income for the periods indicated:

Derivatives in Cash Flow Hedging Relationships	Change in Value Recognized in Other Comprehensive Income (Loss) on Derivative (Effective Portion)
	For the Year Ended December 31,
	2013				2012				2011
Interest rate derivatives (1)		$	6.6			$	(70.2	)		$	(333.2	)
Commodity derivatives – Revenue (2) (3)			(47.9	)			31.0				(192.3	)
Commodity derivatives – Operating costs and expenses (3)			1.0				(13.7	)			(29.6	)
Total		$	(40.3	)		$	(52.9	)		$	(555.1	)

(1)	The increase in other comprehensive loss in 2011 and 2012 was primarily due to the impact of decreases in forward London Interbank Offered Rates ("LIBOR") on our forward starting interest rate swap portfolio.
(2)	The increase in other comprehensive loss in 2011 was primarily due to the impact of rising commodity prices on our cash flow hedges associated with physical future deliveries of NGLs, crude oil and refined products.
(3)	The fair value of these derivative instruments would be reclassified to their respective locations on the Statement of Consolidated Operations upon settlement of the underlying derivative transactions, as appropriate.

Gain/(Loss) Reclassified from Accumulated Other Comprehensive Income/(Loss) to Income (Effective Portion)

Derivatives in Cash Flow Hedging Relationships	Location	Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) to Income (Effective Portion)
		For the Year Ended December 31,
		2013				2012				2011
Interest rate derivatives	Interest expense		$	(29.2	)		$	(16.2	)		$	(6.3	)
Commodity derivatives	Revenue			(22.4	)			10.1				(218.4	)
Commodity derivatives	Operating costs and expenses			0.3				(24.3	)			(13.9	)
Total			$	(51.3	)		$	(30.4	)		$	(238.6	)

Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion)

Derivatives in Cash Flow Hedging Relationships	Location	Gain (Loss) Recognized in Income on Derivative (Ineffective Portion)
		For the Year Ended December 31,
		2013			2012			2011
Commodity derivatives	Revenue		$	0.2		$	--		$	0.2
Commodity derivatives	Operating costs and expenses			--			0.3			(0.3	)
Total			$	0.2		$	0.3		$	(0.1	)

Gain/(Loss) Recognized in Income on Derivative

The following table presents the effect of our derivative instruments not designated as hedging instruments on our Statements of Consolidated Operations for the periods indicated:

Derivatives Not Designated as Hedging Instruments	Location	Gain (Loss) Recognized in Income on Derivative
		For the Year Ended December 31,
		2013				2012				2011
Interest rate derivatives	Interest expense		$	(0.7	)		$	(5.6	)		$	(18.5	)
Commodity derivatives	Revenue			7.3				22.7				39.9
Commodity derivatives	Operating costs and expense			--				(2.8	)			(3.7	)
Foreign currency derivatives	Other expense			--				--				(0.5	)
Total			$	6.6			$	14.3			$	17.2

Fair Value Measurements of Financial Assets and Liabilities Measured on a Recurring Basis

The following table sets forth, by level within the fair value hierarchy, the carrying values of our financial assets and liabilities at the dates indicated. These assets and liabilities are measured on a recurring basis and are classified based on the lowest level of input used to estimate their fair value. Our assessment of the relative significance of such inputs requires judgment.

	2013 Fair Value Measurements Using
	Quoted Prices
	in Active			Significant
	Markets for			Other			Significant			Carrying
	Identical Assets			Observable			Unobservable			Value
	and Liabilities			Inputs			Inputs			at December 31,
	(Level 1)			(Level 2)			(Level 3)			2013
Financial assets:
Interest rate derivatives		$	--		$	32.6		$	--		$	32.6
Commodity derivatives			17.2			20.2			3.9			41.3
Total		$	17.2		$	52.8		$	3.9		$	73.9
Financial liabilities:
Interest rate derivatives		$	--		$	7.8		$	--		$	7.8
Commodity derivatives			30.8			23.6			0.7			55.1
Total		$	30.8		$	31.4		$	0.7		$	62.9

	2012 Fair Value Measurements Using
	Quoted Prices
	in Active			Significant
	Markets for			Other			Significant			Carrying
	Identical Assets			Observable			Unobservable			Value
	and Liabilities			Inputs			Inputs			at December 31,
	(Level 1)			(Level 2)			(Level 3)			2012
Financial assets:
Interest rate derivatives		$	--		$	45.2		$	--		$	45.2
Commodity derivatives			11.4			47.8			2.4			61.6
Total		$	11.4		$	93.0		$	2.4		$	106.8
Financial liabilities:
Interest rate derivatives		$	--		$	192.6		$	--		$	192.6
Commodity derivatives			13.1			28.5			3.9			45.5
Total		$	13.1		$	221.1		$	3.9		$	238.1

Reconciliation of Changes in the Fair Value of Level 3 Financial Assets and Liabilities

The following table sets forth a reconciliation of changes in the overall fair values of our recurring Level 3 financial assets and liabilities for the periods indicated:

		For the Year Ended December 31,
	Location	2013			2012
Financial asset (liability) balance, net, January 1		$	(1.5	)	$	0.4
Total gains (losses) included in:
Net income (1)	Revenue		2.8			(2.9	)
Other comprehensive income (loss)	Commodity derivative instruments – changes in fair value of cash flow hedges		(0.9	)		10.1
Settlements			1.6			0.8
Transfers out of Level 3 (2)			1.2			(9.9	)
Financial asset (liability) balance, net, December 31		$	3.2		$	(1.5	)

(1)	There were $4.4 million and $1.9 million of unrealized gains included in these amounts for the years ended December 31, 2013 and 2012, respectively.
(2)	Transfers out of Level 3 into Level 2 were due to shorter remaining transaction maturities falling inside of the Level 2 range at December 31, 2013 and 2012, respectively.

Fair Value Measurements, Valuation Techniques

The followingtables provide quantitative information about our recurring Level 3 fair value measurements at the dates indicated:

	Fair Value At December 31, 2013
	Financial Assets			Financial Liabilities			Valuation Techniques	Unobservable Input	Range
Commodity derivatives:
Crude oil		$	3.9		$	0.7	Discounted cash flow	Forward commodity prices	$89.55-$98.54/barrel

	Fair Value At December 31, 2012
	Financial Assets			Financial Liabilities			Valuation Techniques	Unobservable Input	Range
Commodity derivatives:
Crude oil		$	2.4		$	3.9	Discounted cash flow	Forward commodity prices	$75.62-$92.28/barrel

Noncash Impairment Charges by Segment

The following table summarizes our non-cash impairment charges by segment during each of the periods indicated:

	For the Year Ended December 31,
	2013		2012		2011
NGL Pipelines & Services	$	30.6	$	16.3	$	11.3
Onshore Natural Gas Pipelines & Services		--		29.2		10.4
Onshore Crude Oil Pipelines & Services		30.1		10.6		--
Offshore Pipelines & Services		18.0		4.0		5.5
Petrochemical & Refined Products Services		18.7		3.3		0.6
Total	$	97.4	$	63.4	$	27.8

Nonrecurring Fair Value Measurements

The following table summarizes our non-recurring fair value measurements for the year ended December 31, 2013:

				December 31, 2013 Fair Value Measurements Using
				Quoted Prices
				in Active			Significant
	Carrying			Markets for			Other			Significant			Total
	Value at			Identical			Observable			Unobservable			Non-Cash
	December 31,			Assets			Inputs			Inputs			Impairment
	2013			(Level 1)			(Level 2)			(Level 3)			Loss
Impairment of long-lived assets disposed of other than by sale (1)		$	--		$	--		$	--		$	--		$	79.4
Impairment of long-lived assets held and used			44.6			--			--			44.6			9.0
Impairment of long-lived assets to be disposed of by sale			0.6			--			--			0.6			9.0
Total														$	97.4

(1) Our non-cash asset impairment charges for the year ended December 31, 2013 primarily represent the abandonment of crude oil and natural gas pipeline segments in Texas, Oklahoma and the Gulf of Mexico, certain refined products terminal assets in Texas, an NGL storage cavern in Arizona and an NGL fractionator and storage caverns in Ohio.

During the year ended December 31, 2012, we recorded $63.4 million of non-cash asset impairment charges primarily due to the abandonment of assets classified as property, plant and equipment. The following table summarizes our non-recurring fair value measurements for the year ended December 31, 2012:

				December 31, 2012 Fair Value Measurements Using
				Quoted Prices
				in Active			Significant
	Carrying			Markets for			Other			Significant			Total
	Value at			Identical			Observable			Unobservable			Non-Cash
	December 31,			Assets			Inputs			Inputs			Impairment
	2012			(Level 1)			(Level 2)			(Level 3)			Loss
Impairment of long-lived assets disposed of other than by sale (1)		$	0.8		$	--		$	--		$	0.8		$	56.5
Impairment of long-lived assets held and used			2.2			--			--			2.2			2.6
Impairment of long-lived assets to be disposed of by sale			--			--			--			--			4.3
Total														$	63.4

(1) Our non-cash asset impairment charges for the year ended December 31, 2012 primarily represent the abandonment of crude oil and natural gas pipeline segments in Texas and the Gulf of Mexico.