Page 176 - DCP AR2011 Dev

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DCP MIDSTREAM PARTNERS, LP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2011, 2010 and 2009 — (Continued)
22. Valuation and Qualifying Accounts and Reserves
Our valuation and qualifying accounts and reserves for the years ended December 31, 2011, 2010 and
2009 are as follows:
Balance at
Beginning of
Charged to
Consolidated
Statements of
Charged to
Other Deductions/
Balance at
End of
Period Operations Accounts Other
Period
(Millions)
December 31, 2011
Allowance for doubtful accounts . . . . . . . . . . . $0.5
$ —
$ —
$(0.2) $0.3
Environmental . . . . . . . . . . . . . . . . . . . . . . . . .
1.9
0.4 —
(0.3)
2.0
Litigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.2
0.1 —
(0.3) —
Other (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —
0.5 — —
0.5
$2.6
$1.0
$ —
$(0.8) $2.8
December 31, 2010
Allowance for doubtful accounts . . . . . . . . . . . $0.5
$ —
$ —
$ —
$0.5
Environmental . . . . . . . . . . . . . . . . . . . . . . . . .
1.1
1.0 —
(0.2)
1.9
Litigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.4
0.3 —
(2.5)
0.2
Other (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.1 —
1.0
(1.1) —
$4.1
$1.3
$1.0
$(3.8) $2.6
December 31, 2009
Allowance for doubtful accounts . . . . . . . . . . . $1.0
$ —
$ —
$(0.5) $0.5
Environmental . . . . . . . . . . . . . . . . . . . . . . . . .
1.9 — —
(0.8)
1.1
Litigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.5 — —
(0.1)
2.4
Other (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
0.1 — — —
0.1
$5.5
$ —
$ —
$(1.4) $4.1
(a) Principally consists of reserves against other long-term assets, which are included in other long-term
assets, and other contingency liabilities, which are included in other current liabilities, and the recognition
and re-measurement of the fair value of contingent consideration.
23. Subsequent Events
On January 3, 2012, we entered into a 2-year Term Loan Agreement with Wells Fargo Bank, National
Association, SunTrust Bank and The Bank of Tokyo-Mitsubishi UFJ, Ltd. as lenders. We borrowed $135.0
million under the term loan on January 3, 2012, which was used to fund the acquisition of the remaining 49.9%
interest in East Texas.
On January 3, 2012, we completed the acquisition of the remaining 49.9% interest in East Texas from DCP
Midstream, LLC for aggregate consideration of $165.0 million, subject to certain working capital and other
customary purchase price adjustments. The transaction was financed at closing through the execution of a term
loan and the issuance of 727,520 common units. Prior to the contribution of the additional interest in East
Texas, we owned a 50.1% interest which we accounted for as a consolidated subsidiary. The contribution of the
remaining 49.9% interest in East Texas represents a transaction between entities under common control, but
does not represent a change in reporting entity. Accordingly, we will include the results of the remaining 49.9%
interest in East Texas prospectively from the date of contribution.
On January 18, 2012, we, along with Williams Partners L.P., announced a planned expansion of the
Discovery natural gas gathering pipeline system in the deepwater Gulf of Mexico. Discovery intends to
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