XML 57 R44.htm IDEA: XBRL DOCUMENT v3.10.0.1
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2018
Fair Value Disclosures [Abstract]  
Breakdown by Fair Value Hierarchy Category for Financial Instruments Included in Consolidated Balance Sheets

The following table shows a breakdown by fair value hierarchy category for (1) financial instruments measurements included on our Consolidated Balance Sheets at fair value and (2) supplemental fair value disclosures for other financial instruments:

 

 

 

September 30, 2018

 

 

 

Carrying

 

 

Fair Value

 

 

 

Value

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial Instruments Recorded on Our

   Consolidated Balance Sheets at Fair Value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets from commodity derivative contracts (1)

 

$

67.7

 

 

$

67.7

 

 

$

—

 

 

$

67.7

 

 

$

—

 

Liabilities from commodity derivative contracts (1)

 

 

243.5

 

 

 

243.5

 

 

 

—

 

 

 

231.0

 

 

 

12.5

 

Permian Acquisition contingent consideration (2)

 

 

329.0

 

 

 

329.0

 

 

 

—

 

 

 

—

 

 

 

329.0

 

TPL contingent consideration (3)

 

 

2.5

 

 

 

2.5

 

 

 

—

 

 

 

—

 

 

 

2.5

 

Financial Instruments Recorded on Our

   Consolidated Balance Sheets at Carrying Value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

203.2

 

 

 

203.2

 

 

 

—

 

 

 

—

 

 

 

—

 

TRC Revolver

 

 

435.0

 

 

 

435.0

 

 

 

—

 

 

 

435.0

 

 

 

—

 

TRP Revolver

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Partnership's Senior unsecured notes

 

 

5,277.9

 

 

 

5,322.8

 

 

 

—

 

 

 

5,322.8

 

 

 

—

 

Partnership's accounts receivable securitization facility

 

 

290.0

 

 

 

290.0

 

 

 

—

 

 

 

290.0

 

 

 

—

 

 

 

 

December 31, 2017

 

 

 

Carrying

 

 

Fair Value

 

 

 

Value

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial Instruments Recorded on Our

   Consolidated Balance Sheets at Fair Value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets from commodity derivative contracts (1)

 

$

60.3

 

 

$

60.3

 

 

$

—

 

 

$

58.8

 

 

$

1.5

 

Liabilities from commodity derivative contracts (1)

 

 

98.5

 

 

 

98.5

 

 

 

—

 

 

 

93.3

 

 

 

5.2

 

Permian Acquisition contingent consideration (2)

 

 

317.0

 

 

 

317.0

 

 

 

—

 

 

 

—

 

 

 

317.0

 

TPL contingent consideration (3)

 

 

2.4

 

 

 

2.4

 

 

 

—

 

 

 

—

 

 

 

2.4

 

Financial Instruments Recorded on Our

   Consolidated Balance Sheets at Carrying Value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

137.2

 

 

 

137.2

 

 

 

—

 

 

 

—

 

 

 

—

 

TRC Revolver

 

 

435.0

 

 

 

435.0

 

 

 

—

 

 

 

435.0

 

 

 

—

 

TRP Revolver

 

 

20.0

 

 

 

20.0

 

 

 

—

 

 

 

20.0

 

 

 

—

 

Partnership's Senior unsecured notes

 

 

4,278.0

 

 

 

4,362.4

 

 

 

—

 

 

 

4,362.4

 

 

 

—

 

Partnership's accounts receivable securitization facility

 

 

350.0

 

 

 

350.0

 

 

 

—

 

 

 

350.0

 

 

 

—

 

 

(1)

The fair value of derivative contracts in this table is presented on a different basis than the Consolidated Balance Sheets presentation as disclosed in Note 15 – Derivative Instruments and Hedging Activities. The above fair values reflect the total value of each derivative contract taken as a whole, whereas the Consolidated Balance Sheets presentation is based on the individual maturity dates of estimated future settlements. As such, an individual contract could have both an asset and liability position when segregated into its current and long-term portions for Consolidated Balance Sheets classification purposes.

(2)

We have a contingent consideration liability related to the Permian Acquisition, which is carried at fair value. See Note 4 – Newly-Formed Joint Ventures, Acquisitions and Divestitures.

(3)

We have a contingent consideration liability for TPL’s previous acquisition of a gas gathering system and related assets, which is carried at fair value.
Reconciliation of Changes in Fair Value of Financial Instruments Classified as Level 3

The following table summarizes the changes in fair value of our financial instruments classified as Level 3 in the fair value hierarchy:

 

 

 

 

Commodity

 

 

 

 

 

 

 

 

Derivative Contracts

 

 

Contingent

 

 

 

 

Asset/(Liability)

 

 

Liability

 

Balance, December 31, 2017

 

$

(3.8

)

 

$

(319.4

)

 

Change in fair value of TPL contingent consideration

 

 

-

 

 

 

(0.1

)

 

Change in fair value of Permian Acquisition contingent consideration (1)

 

 

-

 

 

 

(12.0

)

 

New Level 3 derivative instruments

 

 

(1.0

)

 

 

-

 

 

Settlements included in Revenue

 

 

2.6

 

 

 

-

 

 

Unrealized gain/(loss) included in OCI

 

 

(10.3

)

 

 

-

 

Balance, September 30, 2018

 

$

(12.5

)

 

$

(331.5

)

 

 

(1)

Represents the change in fair value between December 31, 2017 and September 30, 2018 of the contingent consideration that arose as part of the Permian Acquisition in the first quarter of 2017. See Note 4 – Newly-Formed Joint Ventures, Acquisitions and Divestitures for discussion of the initial fair value.