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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

Our derivative financial instruments are included at their fair values in the consolidated statements of financial position as follows:

	December
	2016		2015
	(in millions)
Other current assets	$	44.1	$	123.9
Other assets, net		3.2		39.7
Accounts payable and other⁽¹⁾		(196.3)		(130.9)
Other long-term liabilities		(24.7)		(90.6)
	$	(173.7)	$	(57.9)

⁽¹⁾ Includes $12.6 million of cash collateral held at December 31, 2015.

Schedule of Derivative Balances by Counter Party Credit Quality

The table below summarizes our derivative balances by counterparty credit quality (any negative amounts represent our net obligations to pay the counterparty).

	December 31,
	2016		2015
	(in millions)
Counterparty Credit Quality⁽¹⁾
AA⁽²⁾	$	(76.7)	$	(12.4)
A		(68.2)		(10.5)
Lower than A		(28.8)		(35.0)
	$	(173.7)	$	(57.9)

⁽¹⁾ As determined by nationally-recognized statistical ratings organizations.

⁽²⁾ Includes $12.6 million of cash collateral held at December 31, 2015.

Schedule of Credit Concentrations in Industry Sectors

At December 31, 2016 and 2015, we had credit concentrations in the following industry sectors, as presented below:

	December 31,
	2016		2015
	(in millions)
United States financial institutions and investment banking entities⁽¹⁾	$	(128.1)	$	(30.9)
Non-United States financial institutions		(50.6)		(51.0)
Other		5.0		24.0
	$	(173.7)	$	(57.9)

⁽¹⁾ Includes $12.6 million of cash collateral held at December 31, 2015.

Effect of Derivative Instruments on the Consolidated Statements of Financial Position

		Asset Derivatives				Liability Derivatives
		Fair Value at				Fair Value at
	Financial Position	December 31,				December 31,
	Location	2016		2015		2016		2015

		(in millions)
Derivatives designated as hedging instruments:⁽¹⁾
Interest rate contracts	Accounts payable and other	$	—	$	—	$	(144.0)	$	(85.2)
Interest rate contracts	Other long-term liabilities		—		—		(21.1)		(72.3)
			—		—		(165.1)		(157.5)

Derivatives not designated as hedging instruments:
Commodity contracts	Other current assets		44.1		123.9		—		—
Commodity contracts	Other assets		3.2		39.7		—		—
Commodity contracts	Accounts payable and other (2)		—		—		(52.3)		(33.1)
Commodity contracts	Other long-term liabilities		—		—		(3.6)		(18.3)
			47.3		163.6		(55.9)		(51.4)
Total derivative instruments		$	47.3	$	163.6	$	(221.0)	$	(208.9)

⁽¹⁾

Includes items currently designated as hedging instruments. Excludes the portion of de-designated hedges which may have a component remaining in AOCI.

⁽²⁾

Liability derivatives exclude $12.6 million of cash collateral held at December 31, 2015.

Effect of Derivative Instruments on the Consolidated Statements of Income and Accumulated Other Comprehensive Income

Derivatives in Cash Flow Hedging Relationships	Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)		Location of Gain (Loss) Reclassified from AOCI to Earnings (Effective Portion)	Amount of Gain (Loss) Reclassified from AOCI to Earnings (Effective Portion)		Location of Gain (Loss) Recognized in Earnings on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)⁽¹⁾	Amount of Gain (Loss) Recognized in Earnings on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)⁽¹⁾

(in millions)
For the year ended December 31, 2016
Interest rate contracts	$	(1.1)	Interest expense	$	(39.4)	Interest expense	$	(6.5)
Commodity contracts		—	Commodity costs		0.3	Commodity costs		—
Total	$	(1.1)		$	(39.1)		$	(6.5)

For the year ended December 31, 2015
Interest rate contracts	$	86.7	Interest expense	$	(22.0)	Interest expense	$	98.9
Commodity contracts		(24.2)	Commodity costs		32.9	Commodity costs		(4.1)
Total	$	62.5		$	10.9		$	94.8

For the year ended December 31, 2014
Interest rate contracts	$	(163.4)	Interest expense	$	(16.2)	Interest expense	$	(100.1)
Commodity contracts		29.9	Commodity costs		(5.8)	Commodity costs		5.6
Total	$	(133.5)		$	(22.0)		$	(94.5)

⁽¹⁾

Includes only the ineffective portion of derivatives that are designated as hedging instruments and does not include net gains or losses associated with derivatives that do not qualify for hedge accounting treatment.

Components of Accumulated Other Comprehensive Income/(Loss)

	Cash Flow Hedges
	2016		2015

	(in millions)
Balance at January 1	$	(370.0)	$	(211.4)
Other comprehensive income before reclassifications⁽¹⁾		(8.7)		(155.7)
Amounts reclassified from AOCI⁽²⁾⁽³⁾		39.4		(3.1)
Tax benefit		—		0.2
Net other comprehensive loss	$	30.7	$	(158.6)
Balance at December 31	$	(339.3)	$	(370.0)

⁽¹⁾

Excludes NCI gains of $2.0 million reclassified from AOCI at December 31, 2015.

⁽²⁾

Excludes NCI losses of $0.3 million and $7.8 million reclassified from AOCI at December 31, 2016 and 2015, respectively.

⁽³⁾

For additional details on the amounts reclassified from AOCI, reference the Reclassifications from Accumulated Other Comprehensive Income table below.

Reclassifications from Accumulated Other Comprehensive Income

	For the year ended December 31,
	2016		2015		2014

	(in millions)
Losses (gains) on cash flow hedges:
Interest Rate Contracts⁽¹⁾	$	39.6	$	22.0	$	16.2
Commodity Contracts⁽²⁾⁽³⁾		(0.2)		(25.1)		5.0
Total Reclassifications from AOCI	$	39.4	$	(3.1)	$	21.2

⁽¹⁾

Loss reported within “Interest expense, net” in the consolidated statements of income.

⁽²⁾

Loss (gain) reported within “Commodity costs” in the consolidated statements of income.

⁽³⁾

Excludes NCI gains (losses) of $(0.3) million, $(7.8) million and $0.8 million reclassified from AOCI for the years ending December 31, 2016, 2015 and 2014, respectively.

Effect of Derivative Instruments on Consolidated Statements of Income

		December 31,
		2016		2015		2014

Derivatives Not Designated	Location of Gain (Loss)	Amount of Gain (Loss)
as Hedging Instruments	Recognized in Earnings	Recognized in Earnings⁽¹⁾⁽²⁾

		(in millions)
Commodity contracts	Transportation and other services⁽³⁾	$	(3.1)	$	11.4	$	17.4
Commodity contracts	Commodity sales		0.3		(23.3)		23.7
Commodity contracts	Commodity sales – affiliate		—		(0.3)		0.3
Commodity contracts	Commodity costs⁽⁴⁾		(41.7)		65.7		136.8
Commodity contracts	Power		—		—		0.7
Total		$	(44.5)	$	53.5	$	178.9

⁽¹⁾	Does not include settlements associated with derivative instruments that settle through physical delivery.
⁽²⁾	Includes only net gains or losses associated with those derivatives that do not receive hedge accounting treatment and does not include the ineffective portion of derivatives that are designated as hedging instruments.
⁽³⁾	Includes settlement gains of $5.6 million, $26.9 million, and $4.5 million for the years ended December 31, 2016, 2015 and 2014, respectively.
⁽⁴⁾	Includes settlement gains of $70.7 million and $96.3 million and $8.0 million for the years ended December 31, 2016, 2015, and 2014, respectively.

Offsetting of Financial Assets and Derivative Assets

	As of December 31, 2016
	Gross Amount of Recognized Assets		Gross Amount Offset in the Statement of Financial Position		Net Amount of Assets Presented in the Statement of Financial Position		Gross Amount Not Offset in the Statement of Financial Position		Net Amount

	(in millions)
Description:
Derivatives	$	47.3	$	—	$	47.3	$	(40.2)	$	7.1

	As of December 31, 2015
	Gross Amount of Recognized Assets		Gross Amount Offset in the Statement of Financial Position		Net Amount of Assets Presented in the Statement of Financial Position		Gross Amount Not Offset in the Statement of Financial Position⁽¹⁾		Net Amount

	(in millions)
Description:
Derivatives	$	163.6	$	—	$	163.6	$	(41.5)	$	122.1

⁽¹⁾Includes $12.6 million of cash collateral held at December 31, 2015.

Offsetting of Financial Liabilities and Derivative Liabilities

	As of December 31, 2016
	Gross Amount of Recognized Liabilities		Gross Amount Offset in the Statement of Financial Position		Net Amount of Liabilities Presented in the Statement of Financial Position		Gross Amount Not Offset in the Statement of Financial Position		Net Amount

	(in millions)
Description:
Derivatives	$	(221.0)	$	—	$	(221.0)	$	40.2	$	(180.8)

	As of December 31, 2015
	Gross Amount of Recognized Liabilities⁽¹⁾		Gross Amount Offset in the Statement of Financial Position		Net Amount of Liabilities Presented in the Statement of Financial Position		Gross Amount Not Offset in the Statement of Financial Position⁽¹⁾		Net Amount

	(in millions)
Description:
Derivatives	$	(221.5)	$	—	$	(221.5)	$	41.5	$	(180.0)

⁽¹⁾Includes $12.6 million of cash collateral held at December 31, 2015.

Table Setting Forth By Level Within The Fair Value Hierarchy Financial Assets And Liabilities

	December 31, 2016								December 31, 2015
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	(in millions)
Interest rate contracts	$	—	$	(165.1)	$	—	$	(165.1)	$	—	$	(157.5)	$	—	$	(157.5)
Commodity contracts:
Financial		—		(4.1)		(0.1)		(4.2)		—		8.4		8.9		17.3
Physical		—		—		2.6		2.6		—		—		0.6		0.6
Commodity options		—		—		(7.0)		(7.0)		—		—		94.3		94.3
	$	—	$	(169.2)	$	(4.5)	$	(173.7)	$	—	$	(149.1)	$	103.8	$	(45.3)
Cash collateral								—								(12.6)
Total							$	(173.7)							$	(57.9)

Schedule of Quantitative Information on Level 3 Fair Value Measurements


	Fair Value at				Range ⁽¹⁾
	December 31,		Valuation	Unobservable							Weighted
Contract Type	2016 ⁽²⁾		Technique	Input	Lowest			Highest			Average			Units
	(in millions)
Commodity Contracts – Financial
Natural Gas	$	4.7	Market Approach	Forward Natural Gas Price		3.18			3.93			3.58		MMBtu
NGLs		(4.8)	Market Approach	Forward NGL Price		0.27			1.23			0.64		Gal
Commodity Contracts – Physical
Natural Gas		0.7	Market Approach	Forward Natural Gas Price		2.72			4.16			3.49		MMBtu
Crude Oil		(1.2)	Market Approach	Forward Crude Oil Price		39.21			55.62			52.00		Bbl
NGLs		3.1	Market Approach	Forward NGL Price		0.27			1.31			0.48		Gal
Commodity Options
Natural Gas, Crude Oil and NGLs		(7.0)	Option Model	Option Volatility		22	%		33	%		25	%
Total Fair Value	$	(4.5)

⁽¹⁾

Prices are in dollars per Millions of British Thermal Units, or MMBtu, for natural gas; dollars per Gallon, or Gal, for NGLs; and dollars per barrel, or Bbl, for crude oil.

⁽²⁾

Fair values include credit valuation adjustment gains of approximately $0.1 million.

	Fair Value at				Range⁽¹⁾
	December 31,		Valuation	Unobservable							Weighted
Contract Type	2015⁽²⁾		Technique	Input	Lowest			Highest			Average			Units
	(in millions)
Commodity Contracts – Financial
Natural Gas	$	0.3	Market Approach	Forward Natural Gas Price		2.27			3.07			2.64		MMBtu
NGLs		8.6	Market Approach	Forward NGL Price		0.16			0.93			0.41		Gal
Commodity Contracts – Physical
Natural Gas		(2.5)	Market Approach	Forward Natural Gas Price		2.08			3.44			2.33		MMBtu
Crude Oil		—	Market Approach	Forward Crude Oil Price		26.50			38.41			37.29		Bbl
NGLs		3.1	Market Approach	Forward NGL Price		0.16			1.20			0.40		Gal
Commodity Options
Natural Gas, Crude Oil and NGLs		94.3	Option Model	Option Volatility		13	%		74	%		36	%
Total Fair Value	$	103.8

⁽¹⁾

Prices are in dollars per MMBtu for natural gas, Gal for NGLs and Bbl for crude oil.

⁽²⁾

Fair values include credit valuation adjustment losses of approximately $0.3 million.

Schedule of Reconciliation of Changes in Fair Value of Level 3 Financial Assets and Liabilities

	Commodity		Commodity
	Financial		Physical		Commodity
	Contracts		Contracts		Options		Total

	(in millions)
Beginning balance as of January 1, 2016	$	8.9	$	0.6	$	94.3	$	103.8
Transfer in (out) of Level 3⁽¹⁾		—		—		—		—
Gains or losses included in earnings:
Reported in Commodity sales		—		(20.4)		—		(20.4)
Reported in Commodity costs		(2.2)		24.4		(32.5)		(10.3)
Gains or losses included in other comprehensive income:
Purchases, issuances, sales and settlements:
Purchases		—		—		—		—
Sales		—		—		0.7		0.7
Settlements⁽²⁾		(6.8)		(2.0)		(69.5)		(78.3)
Ending balance as December 31, 2016	$	(0.1)	$	2.6	$	(7.0)	$	(4.5)

Amounts reported in Commodity sales	$	—	$	0.3	$	—	$	0.3

Amount of changes in net assets attributable to the change in derivative gains or losses related to assets and liabilities still held at the reporting date:
Reported in Commodity sales	$	—	$	(1.5)	$	—	$	(1.5)
Reported in Commodity costs	$	0.9	$	4.0	$	(21.2)	$	(16.3)

⁽¹⁾

Our policy is to recognize transfers as of the last day of the reporting period.

⁽²⁾

Settlements represent the realized portion of forward contracts.

Schedule of Fair Values of Expected Cash Flows of Outstanding Commodity Based Swaps and Physical Contracts

The following table provides summarized information about the fair values of expected cash flows of our outstanding commodity based swaps and physical contracts at December 31, 2016 and 2015.

	At December 31, 2016											At December 31, 2015
				Wtd. Average Price⁽²⁾				Fair Value⁽³⁾				Fair Value⁽³⁾
	Commodity	Notional⁽¹⁾		Receive		Pay		Asset		Liability		Asset		Liability

	(in millions)
Portion of contracts maturing in 2017
Swaps
Receive variable/pay fixed	Natural Gas		5,145,880	$	3.51	$	3.00	$	2.6	$	—	$	—	$	—
	NGL		4,356,500	$	29.43	$	24.51	$	21.4	$	—	$	—	$	(4.5)
	Crude Oil		736,750	$	56.00	$	62.53	$	0.9	$	(5.6)	$	—	$	(10.9)
Receive fixed/pay variable	NGL		6,006,000	$	25.74	$	30.32	$	—	$	(27.5)	$	3.3	$	(0.1)
	Crude Oil		1,095,510	$	57.55	$	55.82	$	5.7	$	(3.8)	$	10.9	$	—
Receive variable/pay variable	Natural Gas		22,230,000	$	3.59	$	3.49	$	2.5	$	(0.4)	$	0.5	$	(0.2)
Physical Contracts
Receive variable/pay fixed	Natural Gas		32,400	$	3.68	$	3.49	$	—	$	—	$	—	$	—
	NGL		412,090	$	23.61	$	21.56	$	0.9	$	—	$	—	$	—
Receive fixed/pay variable	Natural Gas		69,600	$	3.56	$	3.67	$	—	$	—	$	—	$	—
	NGL		264,380	$	33.22	$	37.21	$	—	$	(1.2)	$	—	$	—
Receive variable/pay variable	Natural Gas		49,299,457	$	3.54	$	3.52	$	0.6	$	—	$	0.1	$	—
	NGL		8,269,007	$	21.85	$	21.61	$	2.6	$	(0.6)	$	—	$	—
	Crude Oil		453,392	$	50.34	$	52.85	$	0.7	$	(2.0)	$	—	$	—
Portion of contracts maturing in 2018
Physical Contracts
Receive variable/pay variable	Natural Gas		2,193,804	$	3.16	$	3.13	$	0.1	$	—	$	0.1	$	—
	NGL		6,756,250	$	19.36	$	19.15	$	1.4	$	—	$	—	$	—
Portion of contracts maturing in 2019
Physical Contracts
Receive variable/pay variable	Natural Gas		2,199,798	$	2.92	$	2.90	$	0.1	$	—	$	0.1	$	—
Portion of contracts maturing in 2020
Physical Contracts
Receive variable/pay variable	Natural Gas		365,634	$	3.13	$	3.10	$	—	$	—	$	—	$	—

⁽¹⁾	Volumes of natural gas are measured in MMBtu, whereas volumes of NGL and crude oil are measured in Bbl.
⁽²⁾	Weighted average prices received and paid are in $/MMBtu for natural gas and $/Bbl for NGL and crude oil.
⁽³⁾	The fair value is determined based on quoted market prices at December 31, 2016 and 2015, respectively, discounted using the swap rate for the respective periods to consider the time value of money. Fair values exclude credit valuation adjustment gains of approximately $0.5 million at December 31, 2015, as well as cash collateral received.

Schedule of Fair Values of Expected Cash Flows of Outstanding Commodity Options

The following table provides summarized information about the fair values of expected cash flows of our outstanding commodity options at December 31, 2016 and 2015.

	At December 31, 2016											At December 31, 2015
				Strike		Market		Fair Value⁽³⁾				Fair Value⁽³⁾
	Commodity	Notional⁽¹⁾		Price⁽²⁾		Price⁽²⁾		Asset		Liability		Asset		Liability

Portion of option contracts maturing in 2017
Puts (purchased)	NGL		1,642,500	$	25.90	$	35.05	$	3.4	$	—	$	5.8	$	—
	Crude Oil		638,750	$	59.86	$	56.35	$	4.6	$	—	$	10.0	$	—
Calls (written)	NGL		1,642,500	$	30.06	$	35.05	$	—	$	(13.4)	$	—	$	(0.8)
	Crude Oil		638,750	$	68.19	$	56.35	$	—	$	(1.1)	$	—	$	(0.6)
Portion of option contracts maturing in 2018
Puts (purchased)	Crude Oil		91,250	$	42.00	$	56.52	$	0.2	$	—	$	—	$	—
Calls (written)	Crude Oil		91,250	$	51.75	$	56.52	$	—	$	(0.8)	$	—	$	—

⁽¹⁾	Volumes of natural gas are measured in MMBtu, whereas volumes of NGL and crude oil are measured in Bbl.
⁽²⁾	Strike and market prices are in $/MMBtu for natural gas and in $/Bbl for NGL and crude oil.
⁽³⁾	The fair value is determined based on quoted market prices at December 31, 2016 and 2015, respectively, discounted using the swap rate for the respective periods to consider the time value of money. Fair values exclude credit valuation adjustment gains of approximately $0.1 million and losses of approximately $0.4 million at December 31, 2016 and 2015, respectively, as well as cash collateral received.

Schedule of Current Interest Rate Derivatives

The following table provides information about our current interest rate derivatives for the specified periods.

				Average			Fair Value⁽²⁾ at
Date of Maturity & Contract Type	Accounting Treatment	Notional		Fixed Rate⁽¹⁾			December 31, 2016		December 31, 2015
		(dollars in millions)
Contracts maturing in 2017
Interest Rate Swaps – Pay Fixed	Cash Flow Hedge	$	500		2.21	%	$	(0.3)	$	(7.0)

Contracts maturing in 2018
Interest Rate Swaps – Pay Fixed	Cash Flow Hedge	$	810		2.24	%	$	(9.4)	$	(6.6)

Contracts maturing in 2019
Interest Rate Swaps – Pay Fixed	Cash Flow Hedge	$	620		2.96	%	$	(7.3)	$	(6.0)

Contracts settling prior to maturity
2017 – Pre-issuance Hedges	Cash Flow Hedge	$	1,000		4.07	%	$	(136.2)	$	(129.6)
2018 – Pre-issuance Hedges	Cash Flow Hedge	$	350		3.08	%	$	(13.1)	$	(12.2)

⁽¹⁾	Interest rate derivative contracts are based on the one-month or three-month LIBOR.
⁽²⁾	The fair value is determined from quoted market prices at December 31, 2016 and 2015, respectively, discounted using the swap rate for the respective periods to consider the time value of money. Fair values are presented in millions of dollars and exclude credit valuation adjustment gains of approximately $1.2 million and $3.9 million at December 31, 2016 and 2015, respectively.