Targa Resources Corp. | 2013 | FY | 3

Note 6 — Property, Plant and Equipment and Intangible Assets

 
 
December 31, 2013
  
December 31, 2012
  
 
 
 
Targa Resources Partners LP
  
TRC Non-Partnership
  
Targa Resources Corp. Consolidated
  
Targa Resources Partners LP
  
TRC Non-Partnership
  
Targa Resources Corp. Consolidated
  
Estimated Useful Lives (In Years)
 
Gathering systems
 
$
2,230.1
  
$
-
  
$
2,230.1
  
$
1,975.3
  
$
-
  
$
1,975.3
  
5 to 20
 
Processing and fractionation facilities
  
1,598.0
   
6.6
   
1,604.6
   
1,251.6
   
6.6
   
1,258.2
  
5 to 25
 
Terminaling and storage facilities
  
715.2
   
-
   
715.2
   
462.0
   
-
   
462.0
  
5 to 25
 
Transportation assets
  
294.7
   
-
   
294.7
   
292.5
   
-
   
292.5
  
10 to 25
 
Other property, plant and equipment
  
121.3
   
0.2
   
121.5
   
84.6
   
0.2
   
84.8
  
3 to 25
 
Land
  
89.5
   
-
   
89.5
   
87.1
   
-
   
87.1
   
-
 
Construction in progress
  
702.8
   
-
   
702.8
   
548.1
   
-
   
548.1
   
-
 
Property, plant and equipment
  
5,751.6
   
6.8
   
5,758.4
   
4,701.2
   
6.8
   
4,708.0
     
Accumulated depreciation
  
(1,406.2
)
  
(2.3
)
  
(1,408.5
)
  
(1,168.0
)
  
(2.0
)
  
(1,170.0
)
    
Property, plant and equipment, net
 
$
4,345.4
  
$
4.5
  
$
4,349.9
  
$
3,533.2
  
$
4.8
  
$
3,538.0
     
 
                            
Intangible assets
 
$
681.8
  
$
-
  
$
681.8
  
$
681.9
  
$
-
  
$
681.9
   
20
 
Accumulated amortization
  
(28.4
)
  
-
   
(28.4
)
  
(1.1
)
  
-
   
(1.1
)
    
Intangible assets, net
 
$
653.4
  
$
-
  
$
653.4
  
$
680.8
  
$
-
  
$
680.8
     

Intangible assets consist of customer contracts and customer relationships acquired in business acquisitions. The fair value of these acquired intangible assets was determined at the date of acquisition based on the present value of estimated future cash flows. Key valuation assumptions include probability of contracts under negotiation, renewals of existing contracts, economic incentives to retain customers, past and future volumes, current and future capacity of the gathering system, pricing volatility and the discount rate.

Amortization expense attributable to these intangible assets is recorded using a method that closely reflects the cash flow pattern underlying the intangible asset valuation. Amortization of these assets was $27.3 million in 2013. The estimated amortization expense for these intangible assets is approximately $61.4 million, $80.1 million, $88.3 million, $81.5 million and $67.8 million for each of years 2014 through 2018.

us-gaap:PropertyPlantAndEquipmentAndIntangibleAssetsTextBlock