Company: PAGP
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001581990-25-000013
Chunk: 109

Company: PLAINS GP HOLDINGS LP
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 8
Chunk 109
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24)Other long-term liabilities and deferred credits3 (26)— (23)2 (16)— (14)Total$52 $(95)$96 $53 $42 $(118)$72 $(4) Interest Rate Risk Hedging We use interest rate derivatives to hedge the benchmark interest rate associated with interest payments occurring as a result of debt issuances. The derivative instruments we use to manage this risk consist of forward starting interest rate swaps and treasury locks. These derivatives are designated as cash flow hedges. As such, changes in fair value are deferred in AOCI and are reclassified to interest expense as we incur the interest expense associated with the underlying debt. 

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Table of ContentsPLAINS GP HOLDINGS, L.P. AND SUBSIDIARIESNOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The following table summarizes the terms of our outstanding interest rate derivatives as of March 31, 2025 (notional amounts in millions):Hedged TransactionNumber and Types ofDerivatives EmployedNotionalAmountExpectedTermination DateAverage RateLockedAccountingTreatmentAnticipated interest payments8 forward starting swaps(30-year)$200 6/15/20263.09%Cash flow hedgeAnticipated interest payments4 forward starting swaps(30-year)$100 10/15/20253.76%Cash flow hedge As of March 31, 2025, there was a net loss of $44 million deferred in AOCI. The deferred net loss recorded in AOCI is expected to be reclassified to future earnings contemporaneously with interest expense accruals associated with underlying debt instruments. We estimate that substantially all of the remaining deferred loss will be reclassified to earnings through 2056 as the underlying hedged transactions impact earnings. A portion of these amounts is based on market prices as of March 31, 2025; thus, actual amounts to be reclassified will differ and could vary materially as a result of changes in market conditions.The following table summarizes the net unrealized gain/(loss) recognized in AOCI for derivatives (in millions):Three Months EndedMarch 31, 20252024Interest rate derivatives, net$(1)$13 At March 31, 2025, the net fair value of our interest rate hedges, which was included in “Other current assets” and “Other long-term assets, net” on our Condensed