Basis of Presentation and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018

Estimated Useful Lives Of Property, Plant And Equipment

Depreciation is computed by the straight-line method over the estimated useful lives of the assets, as follows:



	Years
Gathering systems and pipelines	15 - 20
Facilities and equipment	3 - 25
Buildings, rights-of-way and easements	1 - 40
Office furniture and fixtures	5 - 10
Vehicles	5

Intangible Assets, Useful life

Certain intangible assets are amortized on a straight-line basis over their estimated economic lives, as follows:



	Weighted-Average Life (years)
Customer accounts and revenue contracts	20
Trademarks	10

Intangible assets consisted of the following at December 31, 2018 and 2017 (in millions):



	CEQP				CMLP
	December 31,				December 31,
	2018		2017		2018		2017
Customer accounts	$	438.9	$	438.9	$	438.9	$	438.9
Gas gathering, compression and processing contracts	325.2		325.2		325.2		325.2
Trademarks⁽¹⁾	6.2		24.7		6.2		9.2
	770.3		788.8		770.3		773.3
Less: accumulated amortization	216.5		191.6		216.5		177.6
Total intangible assets, net	$	553.8	$	597.2	$	553.8	$	595.7


(1)	As of December 31, 2018, we fully amortized and eliminated certain intangibles associated with our trademarks.

The following table summarizes total accumulated amortization of our intangible assets at December 31, 2018 and 2017 (in millions):



	CEQP				CMLP
	December 31,				December 31,
	2018		2017		2018		2017
Customer accounts	$	112.1	$	89.8	$	112.1	$	89.8
Gas gathering, compression and processing contracts	100.8		82.0		100.8		82.0
Trademarks	3.6		19.8		3.6		5.8
Total accumulated amortization	$	216.5	$	191.6	$	216.5	$	177.6

Schedule of Goodwill

The following table summarizes the goodwill of our various reporting units (in millions):



	Goodwill Impairments during the Year Ended December 31, 2016		Goodwill at January 1, 2017		Impact of Sale of US Salt				Goodwill Impairments during the Year Ended December 31, 2017		Goodwill at December 31, 2017		Other				Impact of Sale of West Coast				Goodwill at December 31, 2018
G&P
Marcellus	$	8.6	$	—	$	—			$	—	$	—	$	—			$	—			$	—
Arrow	—		45.9		—				—		45.9		—				—				45.9
S&T
COLT	44.9		—		—				—		—		—				—				—
MS&L
NGL Marketing and Logistics	—		—		—				—		—		101.7			⁽²⁾	(9.0		)	⁽¹⁾	92.7
West Coast	—		2.4		—				2.4		—		—				—				—
Supply and Logistics	65.5		101.7		—				—		101.7		(101.7		)	⁽²⁾	—				—
Storage and Terminals	14.1		36.4		—				36.4		—		—				—				—
US Salt	—		12.6		(12.6		)	⁽¹⁾	—		—		—				—				—
Trucking	29.5		—		—				—		—		—				—				—
Total	$	162.6	$	199.0	$	(12.6	)		$	38.8	$	147.6	$	—			$	(9.0	)		$	138.6


(1)	In December 2017, we sold 100% of our equity interests in US Salt to an affiliate of Kissner Group Holdings LP. In October 2018, we sold our West Coast assets and wrote off the goodwill attributable to these assets as further discussed below.


(2)	Reflects the combination of the MS&L reporting units into one NGL Marketing and Logistics reporting unit as further discussed below.

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction

The following table summarizes the transaction price allocated to our remaining performance obligations under certain contracts that have not been recognized as of December 31, 2018 (in millions):



2019	$	32.5
2020	23.5
2021	9.4
2022	7.3
2023	7.3
Thereafter	3.3
Total	$	83.3

Contract with Customer, Asset and Liability

The following table summarizes the opening and closing balances of our contract assets and contract liabilities (in millions):



	Balance at January 1, 2018		Balance at December 31, 2018
Contract Assets (Non-current)	$	1.1	$	1.0
Contract Liabilities (Current)⁽¹⁾	12.2		12.0
Contract Liabilities (Non-current)⁽¹⁾	60.6		65.4

(1)

During the year ended December 31, 2018, we recognized revenues of approximately $12.2 million that were previously included in contract liabilities (current) at January 1, 2018. The remaining change in our contract liabilities during the year ended December 31, 2018, primarily related to capital reimbursements associated with our revenue contracts and revenue deferrals associated with our contracts with increasing (decreasing) rates.

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The adoption of Topic 606 had the following impact on CEQP’s and CMLP’s consolidated income statements and balance sheets (in millions):

Crestwood Equity



	Year Ended December 31, 2018
	As Reported under Topic 606		Prior to Adoption of Topic 606		Increase (Decrease)
Income Statement
Product revenues:
Gathering and processing⁽¹⁾	$	670.5	$	1,643.1	$	(972.6	)
Service revenues:
Gathering and processing⁽¹⁾⁽²⁾	276.1		318.9		(42.8		)
Marketing, supply and logistics⁽³⁾	50.2		49.4		0.8
Costs of product/services sold:
Product costs⁽¹⁾	2,950.5		3,977.3		(1,026.8		)
Depreciation, amortization and accretion⁽²⁾	168.7		163.7		5.0
Earnings from unconsolidated affiliates, net⁽⁴⁾	53.3		63.0		(9.7		)
Net income	67.0		69.5		(2.5		)



	December 31, 2018
		As Reported under Topic 606		Prior to Adoption of Topic 606		Increase (Decrease)
Balance Sheet
Assets:
Property, plant and equipment⁽²⁾		$	2,598.1	$	2,480.1	$	118.0
Accumulated depreciation and depletion⁽²⁾		568.4		551.2		17.2
Investments in unconsolidated affiliates⁽⁴⁾		1,188.2		1,207.4		(19.2		)
Liabilities:
Accrued expenses and other liabilities⁽²⁾⁽³⁾		112.4		101.2		11.2
Other long-term liabilities⁽²⁾⁽³⁾		173.6		108.2		65.4
Partners’ capital:
Crestwood Equity Partners LP partners’ capital^(2)(3)(4)		1,240.5		1,235.5		5.0

Crestwood Midstream



	Year Ended December 31, 2018
	As Reported under Topic 606		Prior to Adoption of Topic 606		Increase (Decrease)
Income Statement
Product revenues:
Gathering and processing⁽¹⁾	$	670.5	$	1,643.1	$	(972.6	)
Service revenues:
Gathering and processing⁽¹⁾⁽²⁾	276.1		318.9		(42.8		)
Marketing, supply and logistics⁽³⁾	50.2		49.4		0.8
Costs of product/services sold:
Product costs⁽¹⁾	2,950.5		3,977.3		(1,026.8		)
Depreciation, amortization and accretion⁽²⁾	181.4		176.4		5.0
Earnings from unconsolidated affiliates, net⁽⁴⁾	53.3		63.0		(9.7		)
Net income	58.6		61.1		(2.5		)



	December 31, 2018
	As Reported under Topic 606		Prior to Adoption of Topic 606		Increase (Decrease)
Balance Sheet
Assets:
Property, plant and equipment⁽²⁾	$	2,928.2	$	2,810.2	$	118.0
Accumulated depreciation and depletion⁽²⁾	725.9		708.7		17.2
Investments in unconsolidated affiliates⁽⁴⁾	1,188.2		1,207.4		(19.2		)
Liabilities:
Accrued expenses and other liabilities⁽²⁾⁽³⁾	111.3		100.1		11.2
Other long-term liabilities⁽²⁾⁽³⁾	171.0		105.6		65.4
Partners’ capital^(2)(3)(4)	2,028.2		2,023.2		5.0


(1)	On January 1, 2018, we began classifying product and service revenues as a reduction of costs of product sold on certain of our gathering and processing contracts.


(2)	On January 1, 2018, we began recording proceeds received from customers for reimbursable construction as deferred revenue instead of as reductions of property, plant and equipment.


(3)	For contracts that have fixed rates per volume that increase and/or decrease over the life of the contract once certain time periods or thresholds have been met, on January 1, 2018, we began recording revenues on those contracts ratably per unit over the life of the contract based on the remaining performance obligations to be performed.

(4)

On January 1, 2018, Jackalope Gas Gathering Services, L.L.C. (Jackalope) adopted the provisions of Topic 606, and we recorded a $9.5 million decrease to our equity method investment and a corresponding decrease to our partners’ capital to reflect our proportionate share of the cumulative effect of accounting change recorded by the equity investment related to the new standard. In addition, our earnings from unconsolidated affiliates decreased by approximately $9.7 million during the year ended December 31, 2018 to reflect our proportionate share of the ongoing impact of the new standard on Jackalope’s revenues. The adoption of Topic 606 was not material to our other equity method investments.