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Employee Incentive Plans
 9 Months Ended
Sep. 30, 2020
Share-based Payment Arrangement [Abstract]  
Employee Incentive Plans
(10) Employee Incentive Plans

a.Long-Term Incentive Plans

We account for unit-based compensation in accordance with ASC 718, which requires that compensation related to all unit-based awards be recognized in the consolidated financial statements. Unit-based compensation cost is valued at fair value at the date of grant, and that grant date fair value is recognized as expense over each award’s requisite service period with a corresponding increase to equity or liability based on the terms of each award and the appropriate accounting treatment under ASC 718. Unit-based compensation associated with ENLC’s unit-based compensation plan awarded to directors, officers, and employees of the General Partner and the Managing Member is recorded by ENLK since ENLC has no substantial or managed operating activities other than its interests in ENLK.

Amounts recognized on the consolidated financial statements with respect to these plans are as follows (in millions):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2020201920202019
Cost of unit-based compensation charged to operating expense$2.0 $2.1 $6.2 $4.5 
Cost of unit-based compensation charged to general and administrative expense6.4 10.0 18.4 26.7 
Total unit-based compensation expense$8.4 $12.1 $24.6 $31.2 
Non-controlling interest in unit-based compensation$— $— $— $0.5 
Amount of related income tax benefit recognized in net income (loss) (1)$2.0 $2.8 $5.8 $7.2 
____________________________
(1)For the three and nine months ended September 30, 2020, the amount of related income tax expense recognized in net income (loss) excluded $1.6 million and $6.0 million, respectively, related to book-to-tax differences recorded upon vesting of restricted units. For the three and nine months ended September 30, 2019, the amount of related income tax expense recognized in net income excluded $1.3 million for each period related to book-to-tax differences recorded upon vesting of restricted units.

b.ENLC Restricted Incentive Units

ENLC restricted incentive units were valued at their fair value at the date of grant, which is equal to the market value of ENLC common units on such date. A summary of the restricted incentive unit activity for the nine months ended September 30, 2020 is provided below:
Nine Months Ended
September 30, 2020
ENLC Restricted Incentive Units:Number of UnitsWeighted Average Grant-Date Fair Value
Non-vested, beginning of period4,063,605 $13.85 
Granted (1)4,873,848 5.42 
Vested (1)(2)(2,839,869)10.93 
Forfeited(661,623)8.28 
Non-vested, end of period5,435,961 $8.50 
Aggregate intrinsic value, end of period (in millions)$12.8  
____________________________
(1)Restricted incentive units typically vest at the end of three years. In February 2020, ENLC granted 1,144,842 restricted incentive units with a fair value of $5.2 million to officers and certain employees as bonus payments for 2019, and these restricted incentive units vested immediately and are included in the restricted incentive units granted and vested line items.
(2)Vested units included 1,009,546 units withheld for payroll taxes paid on behalf of employees.
A summary of the restricted incentive units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) for the three and nine months ended September 30, 2020 and 2019 is provided below (in millions):
Three Months Ended
September 30,		Nine Months Ended
September 30,
ENLC Restricted Incentive Units:2020201920202019
Aggregate intrinsic value of units vested$1.0 $3.1 $11.9 $16.0 
Fair value of units vested$6.0 $5.8 $31.0 $18.9 

As of September 30, 2020, there was $23.3 million of unrecognized compensation cost related to non-vested ENLC restricted incentive units. This cost is expected to be recognized over a weighted-average period of 1.6 years.

c.ENLC Performance Units

ENLC grants performance awards under the 2014 Plan. The performance award agreements provide that the vesting of performance units (i.e., performance-based restricted incentive units) granted thereunder is dependent on the achievement of certain performance goals over the applicable performance period. At the end of the vesting period, recipients receive distribution equivalents, if any, with respect to the number of performance units vested. The vesting of such units ranges from zero to 200% of the units granted depending on the extent to which the related performance goals are achieved over the relevant performance period.

The following table presents a summary of the performance units:
Nine Months Ended
September 30, 2020
ENLC Performance Units:Number of UnitsWeighted Average Grant-Date Fair Value
Non-vested, beginning of period1,317,856 $14.22 
Granted1,361,986 6.63 
Vested (1)(181,647)30.31 
Forfeited(166,211)11.01 
Non-vested, end of period2,331,984 $8.76 
Aggregate intrinsic value, end of period (in millions)$5.5 
____________________________
(1)Vested units included 69,052 units withheld for payroll taxes paid on behalf of employees.

A summary of the performance units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) for the three and nine months ended September 30, 2020 and 2019 is provided below (in millions).
 Three Months Ended
September 30,		Nine Months Ended
September 30,
ENLC Performance Units:2020201920202019
Aggregate intrinsic value of units vested$— $1.6 $0.9 $3.4 
Fair value of units vested$— $6.0 $5.5 $7.9 

As of September 30, 2020, there was $12.3 million of unrecognized compensation cost that related to non-vested ENLC performance units. That cost is expected to be recognized over a weighted-average period of 1.5 years.
The following table presents a summary of the grant-date fair value assumptions by performance unit grant date:
ENLC Performance Units:January 2020March 2020July 2020
Grant-Date Fair Value$7.69 $1.13 $2.33 
Beginning TSR price$6.13 $1.25 $2.52 
Risk-free interest rate1.62 %0.42 %0.17 %
Volatility factor37.00 %51.00 %67.00 %