Gulf South Pipeline Company, LP

CIK:0001559289|SEC Filings

Fair Value Measurements and Derivatives and Other Comprehensive Income (Notes)

12 Months Ended

Dec. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Note 4: Fair Value Measurements, Derivatives and Other Comprehensive Income (OCI)

Gulf South’s assets and liabilities which are recorded at fair value on a recurring basis are related to outstanding derivatives. At December 31, 2014, Gulf South had no outstanding derivatives recorded on its Balance Sheets. At December 31, 2013, Gulf South had $0.5 million of commodity derivatives that were recorded in Other current assets and $0.3 million of commodity derivatives recorded in Other current liabilities. The derivatives were measured using a Level 2 input under the fair value hierarchy.

Gulf South's AOCI as of December 31, 2014 and 2013 was $5.0 million and $5.5 million, all of which related to losses on cash flow hedges. Gulf South estimates that approximately $0.7 million of net losses reported in AOCI as of December 31, 2014, are expected to be reclassified into earnings within the next twelve months. The amounts related to cash flow hedges are related to treasury rate locks that were settled in a previous period. The losses associated with the rate locks are being amortized over the terms of the related interest payments, generally the terms of the related debt.

Financial Assets and Liabilities

The following methods and assumptions were used in estimating the fair value disclosure amounts for financial assets and liabilities:

Cash: For cash, the carrying amount is a reasonable estimate of fair value due to the short maturity of those instruments.

Advances to Affiliates: Advances to affiliates, which are represented by demand notes, earn a variable rate of interest, which is adjusted regularly to reflect current market conditions. Therefore, the carrying amount is a reasonable estimate of fair value. The interest rate on intercompany demand notes is LIBOR plus one percent and is adjusted every three months.

Long-Term Debt: The estimated fair value of Gulf South's publicly traded debt is based on quoted market prices at December 31, 2014 and 2013. The fair market value of the debt that is not publicly traded is based on market prices of similar debt at December 31, 2014 and 2013.

The carrying amount and estimated fair values of Gulf South's financial assets and liabilities which are not recorded at fair value on the Balance Sheets as of December 31, 2014 and 2013, were as follows (in millions):



As of December 31, 2014			Estimated Fair Value
Financial Assets	Carrying Amount		Level 1		Level 2		Level 3		Total
Cash	$	1.9	$	1.9	$	—	$	—	$	1.9
Advances to affiliates - non-current	61.5		—		61.5		—		61.5

Financial Liabilities
Long-term debt	$	847.1	$	—	$	874.8	$	—	$	874.8



As of December 31, 2013			Estimated Fair Value
Financial Assets	Carrying Amount		Level 1		Level 2		Level 3		Total
Cash	$	1.1	$	1.1	$	—	$	—	$	1.1
Advances to affiliates - current	192.6		—		192.6		—		192.6

Financial Liabilities
Long-term debt	$	846.3	$	—	$	889.7	$	—	$	889.7

Fair Value, by Balance Sheet Grouping [Table Text Block]



As of December 31, 2014			Estimated Fair Value
Financial Assets	Carrying Amount		Level 1		Level 2		Level 3		Total
Cash	$	1.9	$	1.9	$	—	$	—	$	1.9
Advances to affiliates - non-current	61.5		—		61.5		—		61.5

Financial Liabilities
Long-term debt	$	847.1	$	—	$	874.8	$	—	$	874.8



As of December 31, 2013			Estimated Fair Value
Financial Assets	Carrying Amount		Level 1		Level 2		Level 3		Total
Cash	$	1.1	$	1.1	$	—	$	—	$	1.1
Advances to affiliates - current	192.6		—		192.6		—		192.6

Financial Liabilities
Long-term debt	$	846.3	$	—	$	889.7	$	—	$	889.7

Supplemental Disclosure of Cash Flow Information (Notes)

12 Months Ended

Dec. 31, 2014

Supplemental Cash Flow Elements [Abstract]

Cash Flow, Supplemental Disclosures [Text Block]

Note 12: Supplemental Disclosure of Cash Flow Information (in millions):



	For the Year Ended December 31,
	2014		2013		2012
Cash paid during the period for:
Interest (net of amount capitalized) ⁽¹⁾	$	37.4	$	40.9	$	57.0
Income taxes, net	$	—	$	0.1	$	0.1
Non-cash adjustments:
Accounts payable and PPE	$	12.9	$	16.1	$	14.3
Transfer of assets	$	3.9	$	—	$	30.6


(1)	The 2012 period includes payments of $6.8 million related to the settlements of interest rate derivatives.

Statement of Financial Position (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Current Assets:
Cash	$ 1.9	$ 1.1
Receivables:
Trade, net	29.1us-gaap_AccountsReceivableNetCurrent	29.5us-gaap_AccountsReceivableNetCurrent
Affiliates	5.8	8.9
Other	3.7us-gaap_OtherReceivables	7.0us-gaap_OtherReceivables
Gas receivables:
Transportation	6.1us-gaap_GasImbalanceAssetLiability	4.2us-gaap_GasImbalanceAssetLiability
Transportation - affiliates	1.5gs_GasImbalanceAssetLiabilityAffiliate	2.0gs_GasImbalanceAssetLiabilityAffiliate
Advances to affiliates	0us-gaap_DueFromAffiliateCurrent	192.6us-gaap_DueFromAffiliateCurrent
Gas stored underground	0.3	0.3
Prepayments	5.6us-gaap_PrepaidExpenseCurrent	4.6us-gaap_PrepaidExpenseCurrent
Other current assets	0.9us-gaap_OtherAssetsCurrent	2.0us-gaap_OtherAssetsCurrent
Total current assets	54.9us-gaap_AssetsCurrent	252.2us-gaap_AssetsCurrent
Property, Plant and Equipment:
Natural gas transmission and other plant	3,702.0gs_NaturalGasTransmissionAndOtherPlant	3,342.5gs_NaturalGasTransmissionAndOtherPlant
Construction work in progress	42.5us-gaap_ConstructionInProgressGross	109.6us-gaap_ConstructionInProgressGross
Property, plant and equipment, gross	3,744.5us-gaap_PropertyPlantAndEquipmentGross	3,452.1us-gaap_PropertyPlantAndEquipmentGross
Less-accumulated depreciation and amortization	820.2	707.1
Property, plant and equipment, net	2,924.3us-gaap_PropertyPlantAndEquipmentNet	2,745.0us-gaap_PropertyPlantAndEquipmentNet
Other Assets:
Gas stored underground	3.8	2.3
Advances to affiliates	61.5us-gaap_AdvancesToAffiliate	0us-gaap_AdvancesToAffiliate
Other	5.8us-gaap_OtherAssetsNoncurrent	5.5us-gaap_OtherAssetsNoncurrent
Total other assets	71.1us-gaap_AssetsNoncurrent	7.8us-gaap_AssetsNoncurrent
Total Assets	3,050.3us-gaap_Assets	3,005.0us-gaap_Assets
Payables:
Trade	19.0us-gaap_AccountsPayableCurrent	26.4us-gaap_AccountsPayableCurrent
Affiliates	3.2	2.5
Other	1.4us-gaap_AccountsPayableOtherCurrent	1.3us-gaap_AccountsPayableOtherCurrent
Gas Payables:
Transportation	4.1gs_Transportation	5.5gs_Transportation
Transportation – affiliates	5.5gs_TransportationAffiliates	6.8gs_TransportationAffiliates
Accrued taxes, other	17.9	19.3
Accrued interest	12.8us-gaap_InterestPayableCurrent	12.8us-gaap_InterestPayableCurrent
Accrued payroll and employee benefits	15.8	14.5
Construction retainage	5.6us-gaap_ConstructionPayableCurrent	3.6us-gaap_ConstructionPayableCurrent
Deferred income	0.9us-gaap_DeferredRevenueCurrent	7.6us-gaap_DeferredRevenueCurrent
Other current liabilities	6.3us-gaap_OtherLiabilitiesCurrent	10.4us-gaap_OtherLiabilitiesCurrent
Total current liabilities	92.5us-gaap_LiabilitiesCurrent	110.7us-gaap_LiabilitiesCurrent
Long-term debt	847.1us-gaap_UnsecuredLongTermDebt	846.3us-gaap_UnsecuredLongTermDebt
Other Liabilities and Deferred Credits:
Asset retirement obligation	17.4	17.8
Other	11.8us-gaap_OtherLiabilitiesNoncurrent	13.0us-gaap_OtherLiabilitiesNoncurrent
Total other liabilities and deferred credits	29.2us-gaap_LiabilitiesNoncurrent	30.8us-gaap_LiabilitiesNoncurrent
Commitments and Contingencies
Partner's Capital:
Partner's capital	2,086.5us-gaap_LimitedPartnersCapitalAccount	2,022.7us-gaap_LimitedPartnersCapitalAccount
Accumulated other comprehensive loss	(5.0)	(5.5)
Total partner's capital	2,081.5us-gaap_PartnersCapital	2,017.2us-gaap_PartnersCapital
Total Liabilities and Partner's Capital	$ 3,050.3	$ 3,005.0