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Employee Incentive Plans
 3 Months Ended
Mar. 31, 2022
Share-based Payment Arrangement [Abstract]  
Employee Incentive Plans
(9) 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.

Amounts recognized on the consolidated financial statements with respect to these plans are as follows (in millions):
Three Months Ended
March 31,
20222021
Cost of unit-based compensation charged to operating expense$1.6 $1.7 
Cost of unit-based compensation charged to general and administrative expense5.0 4.8 
Total unit-based compensation expense$6.6 $6.5 
Amount of related income tax benefit recognized in net income (1)$1.6 $1.5 
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(1)For the three months ended March 31, 2022 and 2021, the amount of related income tax benefit recognized in net income excluded $2.0 million and $2.5 million, respectively, of income tax expense related to book-to-tax differences recorded upon the 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 three months ended March 31, 2022 is provided below:
Three Months Ended
March 31, 2022
ENLC Restricted Incentive Units:Number of UnitsWeighted Average Grant-Date Fair Value
Non-vested, beginning of period7,507,471 $5.46 
Granted (1)1,761,711 8.87 
Vested (1)(2)(1,032,738)10.35 
Forfeited(2,022)3.71 
Non-vested, end of period8,234,422 $5.58 
Aggregate intrinsic value, end of period (in millions)$79.5  
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(1)Restricted incentive units typically vest at the end of three years. In March 2022, ENLC granted 193,935 restricted incentive units with a fair value of $1.7 million. These restricted incentives units vested immediately and are included in the restricted incentive units granted and vested line items.
(2)Vested units included 278,866 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 months ended March 31, 2022 and 2021 is provided below (in millions):
Three Months Ended
March 31,
ENLC Restricted Incentive Units:20222021
Aggregate intrinsic value of units vested$7.6 $3.0 
Fair value of units vested$10.7 $10.2 
As of March 31, 2022, there were $24.5 million of unrecognized compensation costs that related to non-vested ENLC restricted incentive units. These costs are expected to be recognized over a weighted-average period of 2.0 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:
Three Months Ended
March 31, 2022
ENLC Performance Units:Number of UnitsWeighted Average Grant-Date Fair Value
Non-vested, beginning of period3,574,827 $6.40 
Granted598,286 11.45 
Vested (1)(708,361)15.57 
Non-vested, end of period3,464,752 $5.40 
Aggregate intrinsic value, end of period (in millions)$33.4 
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(1)Vested units included 273,357 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 months ended March 31, 2022 and 2021 is provided below (in millions).

 Three Months Ended
March 31,
ENLC Performance Units:20222021
Aggregate intrinsic value of units vested$5.6 $0.6 
Fair value of units vested$11.0 $4.4 

As of March 31, 2022, there were $15.5 million of unrecognized compensation costs that related to non-vested ENLC performance units. These costs are expected to be recognized over a weighted-average period of 1.9 years.

The following table presents a summary of the grant-date fair value assumptions by performance unit grant date:
ENLC Performance Units:March 2022 (1)January 2021
Grant-date fair value$11.90 $4.70 
Beginning TSR price$8.83 $3.71 
Risk-free interest rate2.15 %0.17 %
Volatility factor75.00 %71.00 %
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(1)Excludes ENLC performance units awarded March 1, 2022 with vesting conditions based on performance metrics. The 88,863 ENLC performance units have a grant-date fair value of $8.90 and will vest in February 2023.