Property, Plant and Equipment and Intangible Assets

3 Months Ended

Mar. 31, 2013

Property, Plant and Equipment and Intangible Assets [Abstract]

Property, Plant and Equipment and Intangible Assets

Note 6 — Property, Plant and Equipment and Intangible Assets

	March 31, 2013									December 31, 2012
	Targa Resources Partners LP			TRC Non-Partnership			Targa Resources Corp. Consolidated			Targa Resources Partners LP			TRC Non-Partnership			Targa Resources Corp. Consolidated			Estimated Useful Lives (In Years)
Gathering systems	$	2,048.0		$	-		$	2,048.0		$	1,975.3		$	-		$	1,975.3		5 to 20
Processing and fractionation facilities		1,262.1			6.6			1,268.7			1,251.6			6.6			1,258.2		5 to 25
Terminaling and storage facilities		502.6			-			502.6			462.0			-			462.0		5 to 25
Transportation assets		292.6			-			292.6			292.5			-			292.5		10 to 25
Other property, plant and equipment		86.7			0.2			86.9			84.6			0.2			84.8		3 to 25
Land		87.1			-			87.1			87.1			-			87.1			-
Construction in progress		633.7			-			633.7			548.1			-			548.1			-
Property, plant and equipment	$	4,912.8		$	6.8		$	4,919.6		$	4,701.2		$	6.8		$	4,708.0
Accumulated depreciation		(1,225.1	)		(2.1	)		(1,227.2	)		(1,168.0	)		(2.0	)		(1,170.0	)
Property, plant and equipment, net	$	3,687.7		$	4.7		$	3,692.4		$	3,533.2		$	4.8		$	3,538.0
Intangible assets	$	680.8		$	-		$	680.8		$	680.8		$	-		$	680.8			20
Accumulated amortization		(6.7	)		-			(6.7	)		-			-			-
Intangible assets, net	$	674.1		$	-		$	674.1		$	680.8		$	-		$	680.8

Intangible assets consist of customer contracts and customer relationships acquired in business acquisitions. The fair value of these acquired intangible assets was determined at the date of acquisition based on the present value of estimated future cash flows. Key valuation assumptions include probability of contracts under negotiation, renewals of existing contracts, economic incentives to retain customers, past and future volumes, current and future capacity of the gathering system, pricing volatility and the discount rate.

Customer contracts and customer relationships related to the Badlands system have an estimated economic useful life of 20 years. Amortization expense attributable to these assets is recorded using a method that closely reflects the cash flow pattern underlying the intangible asset valuation. Our estimated amortization expense for our intangible assets for each of the next five calendar years (2013-2017) is approximately $27.1 million, $61.4 million, $80.1 million, $88.3 million and $81.5 million.