DCP SOUTHEAST TEXAS HOLDINGS, GP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Years Ended December 31, 2011, 2010 and 2009
6. Goodwill and Intangible Assets
At December 31, 2011 and 2010, we had goodwill of $11.9 million as a result of the amount that we
recognized in connection with our acquisition of the Raywood processing plant and Liberty gathering system
from Ceritas Holdings, LP, or Ceritas, in 2010.
The change in carrying amount of goodwill is as follows:
December 31,
2011
2010
(Millions)
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $11.9 $ —
Acquisitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 11.9
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $11.9 $11.9
Intangible assets consist primarily of customer contracts, and are as a result of our acquisition of the
Raywood processing plant and Liberty gathering system from Ceritas in 2010. The gross carrying amount and
accumulated amortization of these intangible assets are included in the accompanying consolidated balance
sheets as intangible assets, net, and are as follows:
December 31,
2011
2010
(Millions)
Gross carrying amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $34.9 $34.9
Accumulated amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3.5)
(1.2)
Intangible assets, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $31.4 $33.7
For the years ended December 31, 2011 and 2010, we recorded amortization expense of $2.3 million and
$1.2 million, respectively. As of December 31, 2011, the remaining amortization period was 13.5 years.
Estimated amortization for these intangibles is as follows as of December 31, 2011:
Estimated Future Amortization
(Millions)
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.3
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.9
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $31.4
7. Fair Value Measurement
Determination of Fair Value
Below is a general description of our valuation methodologies for derivative financial assets and liabilities,
which are measured at fair value. Fair values are generally based upon quoted market prices, where available. If
listed market prices or quotes are not available, we determine fair value based upon a market quote, adjusted by
other market-based or independently sourced market data such as historical commodity volatilities and/or
counterparty specific considerations. These adjustments result in a fair value for each asset or liability under an
“exit price” methodology, in line with how we believe a marketplace participant would value that asset or
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