Equity Method Investments
|
| | | | | | | | | |
| Ownership as of December 31, 2013 | | December 31, |
(In millions) | | 2013 | | 2012 |
Centennial | 50% | | $ | 29 |
| | $ | 27 |
|
LOCAP LLC | 59% | | 24 |
| | 26 |
|
LOOP | 51% | | 214 |
| | 198 |
|
North Dakota Pipeline(a) | 38% | | 24 |
| | — |
|
TAAE | 43% | | 29 |
| | — |
|
TACE | 60% | | 70 |
| | 29 |
|
TAEI | 34% | | 23 |
| | — |
|
TAME(b) | 50% | | 35 |
| | 27 |
|
Other | | | 15 |
| | 14 |
|
Total | | | $ | 463 |
| | $ | 321 |
|
| |
(a) | We own a 38 percent interest in the Class B units of this entity. Our Class B units will be converted to an approximate 27 percent ownership interest in the Class A units of this entity upon completion of the Sandpiper pipeline construction project in 2016. |
| |
(b) | Excludes TAEI's investment in TAME. |
Summarized financial information for equity method investees is as follows:
|
| | | | | | | | | | | |
(In millions) | 2013 | | 2012 | | 2011 |
Income statement data: | | | | | |
Revenues and other income | $ | 1,067 |
| | $ | 1,025 |
| | $ | 1,043 |
|
Income from operations | 87 |
| | 73 |
| | 128 |
|
Net income | 63 |
| | 47 |
| | 101 |
|
Balance sheet data - December 31: | | | | | |
Current assets | $ | 339 |
| | $ | 217 |
| | |
Noncurrent assets | 1,238 |
| | 1,163 |
| | |
Current liabilities | 145 |
| | 161 |
| | |
Noncurrent liabilities | 618 |
| | 636 |
| | |
As of December 31, 2013, the carrying value of our equity method investments was $41 million higher than the underlying net assets of investees. This basis difference is being amortized or accreted into net income over the remaining estimated useful lives of the underlying net assets, except for $55 million of excess related to goodwill.
Centennial experienced a significant reduction in shipment volumes in the second half of 2011 that has continued through 2013. At December 31, 2013, Centennial was not shipping product. As a result, we continued to evaluate the carrying value of our equity investment in Centennial and concluded that no impairment was required given our assessment of its fair value based on various potential uses of Centennial’s assets. If current business conditions remain unchanged and the owners of Centennial are unable to find an alternative use for the assets, there could be a future impairment of our Centennial interest. As of December 31, 2013, our equity investment in Centennial was $29 million and we had a $42 million guarantee associated with 50 percent of Centennial's outstanding debt. See Note 25 for additional information on the debt guarantee.
Dividends and partnership distributions received from equity method investees (excluding distributions that represented a return of capital previously contributed) were $18 million, $37 million and $48 million in 2013, 2012 and 2011.
