8-K/AOther EventsExhibits & Filings

Targa Resources Corp. 8-K/A Report, Corporate Update (May 24, 2016)

Filed May 24, 2016For Securities:TRGP

Summary

Targa Resources Corp. (TRC) has filed a Form 8-K/A to amend its 2015 Annual Report on Form 10-K. The primary purpose of this filing is to provide investors with updated segment reporting and to reflect the retrospective adoption of a new accounting standard concerning debt issuance costs. These changes are effective for the 2016 fiscal year and aim to enhance comparability with prior periods and future financial statements. Specifically, the company has revised its reportable segments. The former 'Gathering and Processing' division is now presented as two distinct segments: 'Field Gathering and Processing' and 'Coastal Gathering and Processing.' Similarly, the 'Logistics and Marketing' division (Downstream Business) is now disaggregated into 'Logistics Assets' and 'Marketing and Distribution.' Additionally, Targa Resources has adopted ASU 2015-03, which requires debt issuance costs (excluding those for revolving credit facilities) to be presented as a direct reduction from the carrying amount of the related debt on the balance sheet, rather than as a separate asset.

Key Highlights

  • 1Targa Resources Corp. is filing an 8-K/A to update its 2015 10-K filing.
  • 2The update includes changes to segment reporting, effective for the 2016 fiscal year.
  • 3The 'Gathering and Processing' segment is now split into 'Field Gathering and Processing' and 'Coastal Gathering and Processing'.
  • 4The 'Logistics and Marketing' segment is now split into 'Logistics Assets' and 'Marketing and Distribution'.
  • 5The company is retrospectively applying ASU 2015-03 for the presentation of debt issuance costs.
  • 6Debt issuance costs will now be presented as a direct deduction from the related debt liability on the balance sheet.
  • 7This filing provides recast financial information to improve comparability for investors.

Frequently Asked Questions

Targa Resources is filing this 8-K/A to amend its 2015 Form 10-K to provide updated segment reporting and to reflect the retrospective adoption of Accounting Standards Update (ASU) 2015-03 regarding the presentation of debt issuance costs. This is intended to improve comparability for investors.

The company has re-evaluated its segments. The former 'Gathering and Processing' segment has been disaggregated into 'Field Gathering and Processing' and 'Coastal Gathering and Processing'. The 'Logistics and Marketing' (Downstream Business) segment has been disaggregated into 'Logistics Assets' and 'Marketing and Distribution'.

ASU 2015-03 requires debt issuance costs related to debt liabilities (other than revolving credit facilities) to be presented as a direct deduction from the carrying amount of that debt on the Consolidated Balance Sheet, similar to how debt discounts are shown. This change is applied retrospectively.

No, this filing explicitly states that it does not reflect events or developments that occurred after February 29, 2016. Investors should refer to Targa's Form 10-Q for the period ended March 31, 2016, and other subsequent SEC filings for more current information.