PROPERTY, PLANT AND EQUIPMENT

6 Months Ended

Jun. 30, 2015

PROPERTY, PLANT AND EQUIPMENT [Abstract]

6. PROPERTY, PLANT AND EQUIPMENT

Our property, plant and equipment is comprised of the following:

	June 30,			December 31,
	2015			2014
	(in millions)
Land	$	52.3		$	44.2
Rights-of-way		861.2			851.8
Pipelines		9,726.6			9,585.4
Pumping equipment, buildings and tanks ⁽¹⁾		3,475.2			3,261.8
Compressors, meters and other operating equipment		2,122.7			2,072.7
Vehicles, office furniture and equipment ⁽¹⁾		313.4			278.9
Processing and treating plants		629.3			516.0
Construction in progress		2,363.1			1,857.1
Total property, plant and equipment		19,543.8			18,467.9
Accumulated depreciation		(3,002.5	)		(2,775.2	)
Property, plant and equipment, net	$	16,541.3		$	15,692.7

⁽¹⁾

During the second quarter 2015, management reclassified $135.0 million related to rail facilities from “Vehicles, office furniture and equipment” to “Pumping equipment, buildings, and tanks” to better reflect the way in which these assets are analyzed. This change has been retrospectively adjusted for all periods presented.

In May 2015, MEP approved a plan to sell its non-core Tinsley crude oil pipeline, storage facilities, and docks with a total carrying amount of $16.8 million and its non-core Louisiana propylene pipeline with no remaining carrying value. These assets are part of our Natural Gas segment. As of June 30, 2015, we reclassified these assets as held for sale in “Other current assets” on our consolidated statements of financial position at its fair value, net of estimated cost to sell of $4.5 million. We ceased recognizing depreciation expense on these assets upon reclassification. As a result, we recorded a $12.3 million expected loss on disposal from sale of these assets during the second quarter of 2015. These non-cash impairment charges are included in “Asset impairment” on our consolidated statements of income.