Business Segments (Tables)

3 Months Ended

Mar. 31, 2012

Measurement of Total Segment Gross Operating Margin

The following table shows our measurement of total segment gross operating margin for the periods presented:

	For the Three Months
	Ended March 31,
	2012			2011
Revenues	$	11,252.5		$	10,183.7
Less: Operating costs and expenses		(10,467.2	)		(9,537.1	)
Add: Equity in income of unconsolidated affiliates		9.9			16.2
Depreciation, amortization and accretion in operating costs and expenses (1)		254.6			230.8
Non-cash asset impairment charges		5.4			--
Operating lease expenses paid by EPCO		--			0.2
Gains from asset sales and related transactions in operating costs and expenses (2)		(2.5	)		(18.4	)
Total segment gross operating margin	$	1,052.7		$	875.4

(1) Amount is a component of “Depreciation, amortization and accretion” as presented on the Unaudited Condensed Statements of Consolidated Cash Flows. (2) Amount is a component of “Gains from asset sales and related transactions” as presented on the Unaudited Condensed Statements of Consolidated Cash Flows.

Reconciliation of Total Segment Gross Operating Margin to Operating Income and Income Before Provision for Income Taxes

The following table presents a reconciliation of total segment gross operating margin to operating income and further to income before income taxes for the periods presented:

	For the Three Months Ended March 31,
	2012			2011
Total segment gross operating margin	$	1,052.7		$	875.4
Adjustments to reconcile total segment gross operating margin to operating income:
Depreciation, amortization and accretion in operating costs and expenses		(254.6	)		(230.8	)
Non-cash asset impairment charges		(5.4	)		--
Operating lease expenses paid by EPCO		--			(0.2	)
Gains from asset sales and related transactions in operating costs and expenses		2.5			18.4
General and administrative costs		(46.3	)		(37.9	)
Operating income		748.9			624.9
Other expense, net		(127.8	)		(183.3	)
Income before income taxes	$	621.1		$	441.6

Information by Business Segments

Information by business segment, together with reconciliations to our consolidated totals, is presented in the following table:

	Reportable Business Segments
			Onshore		Onshore Crude Oil					Petrochemical & Refined
	NGL		Natural Gas		Onshore Crude Oil			Offshore		Petrochemical & Refined					Adjustments
	Pipelines		Pipelines		Pipelines			Pipelines		Products			Other		and			Consolidated
	& Services		& Services		& Services			& Services		Services			Investments		Eliminations			Totals
Revenues from third parties:
Three months ended March 31, 2012	$	4,354.1	$	804.9	$	4,473.6		$	54.4	$	1,534.7		$	--	$	--		$	11,221.7
Three months ended March 31, 2011		4,055.4		871.7		3,370.6			60.6		1,575.3			--		--			9,933.6
Revenues from related parties:
Three months ended March 31, 2012		0.4		28.7		--			1.7		--			--		--			30.8
Three months ended March 31, 2011		201.4		44.9		--			3.8		--			--		--			250.1
Intersegment and intrasegment revenues:
Three months ended March 31, 2012		2,818.2		223.7		1,730.9			3.3		439.9			--		(5,216.0	)		--
Three months ended March 31, 2011		3,474.6		270.9		707.1			1.7		473.1			--		(4,927.4	)		--
Total revenues:
Three months ended March 31, 2012		7,172.7		1,057.3		6,204.5			59.4		1,974.6			--		(5,216.0	)		11,252.5
Three months ended March 31, 2011		7,731.4		1,187.5		4,077.7			66.1		2,048.4			--		(4,927.4	)		10,183.7
Equity in income (loss) of unconsolidated affiliates:
Three months ended March 31, 2012		5.2		1.4		0.5			6.9		(6.5	)		2.4		--			9.9
Three months ended March 31, 2011		5.9		1.2		(0.5	)		8.3		(5.0	)		6.3		--			16.2
Gross operating margin:
Three months ended March 31, 2012		654.9		206.2		39.3			52.1		97.8			2.4		--			1,052.7
Three months ended March 31, 2011		504.4		159.2		31.8			61.3		112.4			6.3		--			875.4
Segment assets:
At March 31, 2012		8,014.1		9,984.9		960.1			2,007.7		3,764.5			--		2,810.8			27,542.1
At December 31, 2011		7,966.4		9,949.6		944.6			2,000.9		3,769.5			1,023.1		2,145.6			27,799.7
Property, plant and equipment, net: (see Note 6)
At March 31, 2012		7,136.1		8,546.0		478.7			1,399.7		2,539.0			--		2,810.8			22,910.3
At December 31, 2011		7,137.8		8,495.4		456.9			1,416.4		2,539.5			--		2,145.6			22,191.6
Investments in unconsolidated affiliates: (see Note 7)
At March 31, 2012		186.7		29.3		164.6			451.0		63.7			--		--			895.3
At December 31, 2011		146.1		30.1		170.7			424.9		64.7			1,023.1		--			1,859.6
Intangible assets, net: (see Note 8)
At March 31, 2012		350.1		1,113.3		5.6			74.9		100.3			--		--			1,644.2
At December 31, 2011		341.3		1,127.8		5.8			77.5		103.8			--		--			1,656.2
Goodwill: (see Note 8)
At March 31, 2012		341.2		296.3		311.2			82.1		1,061.5			--		--			2,092.3
At December 31, 2011		341.2		296.3		311.2			82.1		1,061.5			--		--			2,092.3

Consolidated Revenues and Expenses

The following table provides additional information regarding our consolidated revenues and costs and expenses for the periods presented:

	For the Three Months Ended March 31,
	2012			2011
NGL Pipelines & Services:
Sales of NGLs and related products	$	4,115.3		$	4,057.7
Midstream services		239.2			199.1
Total		4,354.5			4,256.8
Onshore Natural Gas Pipelines & Services:
Sales of natural gas		572.6			712.7
Midstream services		261.0			203.9
Total		833.6			916.6
Onshore Crude Oil Pipelines & Services:
Sales of crude oil		4,447.6			3,348.2
Midstream services		26.0			22.4
Total		4,473.6			3,370.6
Offshore Pipelines & Services:
Sales of natural gas		0.1			0.3
Sales of crude oil		1.4			3.3
Midstream services		54.6			60.8
Total		56.1			64.4
Petrochemical & Refined Products Services:
Sales of petrochemicals and refined products		1,351.2			1,382.8
Midstream services		183.5			192.5
Total		1,534.7			1,575.3
Total consolidated revenues	$	11,252.5		$	10,183.7

Consolidated costs and expenses
Operating costs and expenses:
Cost of sales related to our marketing activities	$	8,688.5		$	7,930.1
Depreciation, amortization and accretion		254.6			230.8
Gains from asset sales and related transactions		(2.5	)		(18.4	)
Non-cash asset impairment charges		5.4			--
Other operating costs and expenses		1,521.2			1,394.6
General and administrative costs		46.3			37.9
Total consolidated costs and expenses	$	10,513.5		$	9,575.0

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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