Business Segments (Tables)

9 Months Ended

Sep. 30, 2012

Business Segments [Abstract]

Measurement of Total Segment Gross Operating Margin

The following table presents our measurement of total segment gross operating margin for the periods indicated:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2012			2011			2012			2011
Revenues	$	10,468.7		$	11,327.1		$	31,511.0		$	32,727.3
Less:    Operating costs and expenses		(9,659.8	)		(10,604.6	)		(29,136.5	)		(30,675.0	)
Add:     Equity in income of unconsolidated affiliates		21.0			8.6			42.2			35.9
Depreciation, amortization and accretion (1)		269.2			238.3			785.1			702.4
Non-cash asset impairment charges		43.1			5.2			57.6			5.2
Operating lease expenses paid by EPCO		--			--			--			0.3
Losses (gains) related to asset sales		(0.3	)		17.6			(4.1	)		(0.6	)
Gains from sale of ownership interests in equity-method unconsolidated affiliate    – Energy Transfer Equity (2)		--			(19.4	)		--			(24.8	)
Gains related to property damage insurance recoveries (see Note 16)		(2.3	)		--			(30.0	)		--
Total segment gross operating margin	$	1,139.6		$	972.8		$	3,225.3		$	2,770.7
(1)   Amount is a component of "Depreciation, amortization and accretion" as presented on the Unaudited Condensed Statements of Consolidated Cash Flows. (2)   Amounts pertain to sales of limited partner interests in Energy Transfer Equity while this investment was accounted for using the equity method. See Note 7 for information regarding these sales.

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 indicated:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2012			2011			2012			2011
Total segment gross operating margin	$	1,139.6		$	972.8		$	3,225.3		$	2,770.7
Adjustments to reconcile total segment gross operating margin to operating income:
Amounts included in operating costs and expenses:
Depreciation, amortization and accretion		(269.2	)		(238.3	)		(785.1	)		(702.4	)
Non-cash asset impairment charges		(43.1	)		(5.2	)		(57.6	)		(5.2	)
Operating lease expenses paid by EPCO		--			--			--			(0.3	)
Gains (losses) related to asset sales		0.3			(17.6	)		4.1			0.6
Gains from sale of ownership interests in equity-method unconsolidated affiliate    – Energy Transfer Equity (see Note 7)		--			19.4			--			24.8
Gains related to property damage insurance recoveries (see Note 16)		2.3			--			30.0			--
General and administrative costs		(41.4	)		(50.0	)		(130.2	)		(138.3	)
Operating income		788.5			681.1			2,286.5			1,949.9
Other expense, net		(198.2	)		(190.0	)		(499.4	)		(561.3	)
Income before income taxes	$	590.3		$	491.1		$	1,787.1		$	1,388.6

Information by Business Segments

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

	Reportable Business Segments
	NGL Pipelines & Services		Onshore Natural Gas Pipelines & Services		Onshore Crude Oil Pipelines & Services			Offshore Pipelines & Services		Petrochemical & Refined Products Services			Other Investments		Adjustments and Eliminations			Consolidated Total
Revenues from third parties:
Three months ended September 30, 2012	$	3,389.6	$	843.3	$	4,505.1		$	43.2	$	1,680.0		$	--	$	--		$	10,461.2
Three months ended September 30, 2011		4,323.8		855.9		3,957.1			57.7		1,968.7			--		--			11,163.2
Nine months ended September 30, 2012		11,071.6		2,349.1		13,167.4			145.1		4,713.9			--		--			31,447.1
Nine months ended September 30, 2011		12,339.3		2,590.1		11,609.3			179.4		5,451.0			--		--			32,169.1
Revenues from related parties:
Three months ended September 30, 2012		2.2		3.2		0.1			2.0		--			--		--			7.5
Three months ended September 30, 2011		94.7		66.8		--			2.4		--			--		--			163.9
Nine months ended September 30, 2012		7.2		51.4		0.1			5.2		--			--		--			63.9
Nine months ended September 30, 2011		372.9		176.5		--			8.8		--			--		--			558.2
Intersegment and intrasegment revenues:
Three months ended September 30, 2012		2,301.6		211.4		1,509.2			--		478.8			--		(4,501.0	)		--
Three months ended September 30, 2011		3,253.6		257.2		1,342.2			4.8		442.9			--		(5,300.7	)		--
Nine months ended September 30, 2012		7,396.3		614.1		4,975.6			5.0		1,357.4			--		(14,348.4	)		--
Nine months ended September 30, 2011		9,956.4		782.0		3,526.9			6.6		1,361.5			--		(15,633.4	)		--
Total revenues:
Three months ended September 30, 2012		5,693.4		1,057.9		6,014.4			45.2		2,158.8			--		(4,501.0	)		10,468.7
Three months ended September 30, 2011		7,672.1		1,179.9		5,299.3			64.9		2,411.6			--		(5,300.7	)		11,327.1
Nine months ended September 30, 2012		18,475.1		3,014.6		18,143.1			155.3		6,071.3			--		(14,348.4	)		31,511.0
Nine months ended September 30, 2011		22,668.6		3,548.6		15,136.2			194.8		6,812.5			--		(15,633.4	)		32,727.3
Equity in income (loss) of unconsolidated affiliates:
Three months ended September 30, 2012		3.0		0.9		16.5			6.8		(6.2	)		--		--			21.0
Three months ended September 30, 2011		4.3		1.4		(1.0	)		5.4		(3.8	)		2.3		--			8.6
Nine months ended September 30, 2012		12.0		3.5		20.6			17.8		(14.1	)		2.4		--			42.2
Nine months ended September 30, 2011		16.4		4.1		(3.1	)		20.3		(13.1	)		11.3		--			35.9
Gross operating margin:
Three months ended September 30, 2012		615.8		183.5		117.6			40.6		182.1			--		--			1,139.6
Three months ended September 30, 2011		547.6		156.0		67.4			53.9		145.6			2.3		--			972.8
Nine months ended September 30, 2012		1,836.5		565.5		252.7			131.0		437.2			2.4		--			3,225.3
Nine months ended September 30, 2011		1,549.7		476.3		167.0			168.6		397.8			11.3		--			2,770.7
Segment assets:
At September 30, 2012		8,838.0		10,398.4		1,838.0			1,976.8		3,815.7			--		2,293.4			29,160.3
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 September 30, 2012		7,924.5		8,994.0		1,149.4			1,363.5		2,586.7			--		2,293.4			24,311.5
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 September 30, 2012		241.9		25.2		371.7			462.0		59.6			--		--			1,160.4
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 September 30, 2012		330.4		1,082.9		5.7			69.2		107.9			--		--			1,596.1
At December 31, 2011		341.3		1,127.8		5.8			77.5		103.8			--		--			1,656.2
Goodwill: (see Note 8)
At September 30, 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 presents additional information regarding our consolidated revenues and costs and expenses for the periods indicated:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2012			2011			2012			2011
NGL Pipelines & Services:
Sales of NGLs and related products	$	3,151.9		$	4,164.9		$	10,401.1		$	12,054.8
Midstream services		239.9			253.6			677.7			657.4
Total		3,391.8			4,418.5			11,078.8			12,712.2
Onshore Natural Gas Pipelines & Services:
Sales of natural gas		608.2			704.7			1,691.6			2,136.9
Midstream services		238.3			218.0			708.9			629.7
Total		846.5			922.7			2,400.5			2,766.6
Onshore Crude Oil Pipelines & Services:
Sales of crude oil		4,471.8			3,929.8			13,093.4			11,535.9
Midstream services		33.4			27.3			74.1			73.4
Total		4,505.2			3,957.1			13,167.5			11,609.3
Offshore Pipelines & Services:
Sales of natural gas		0.2			0.3			0.3			0.9
Sales of crude oil		3.1			1.3			4.5			7.1
Midstream services		41.9			58.5			145.5			180.2
Total		45.2			60.1			150.3			188.2
Petrochemical & Refined Products Services:
Sales of petrochemicals and refined products		1,498.9			1,767.2			4,166.9			4,868.7
Midstream services		181.1			201.5			547.0			582.3
Total		1,680.0			1,968.7			4,713.9			5,451.0
Total consolidated revenues	$	10,468.7		$	11,327.1		$	31,511.0		$	32,727.3
Consolidated costs and expenses
Operating costs and expenses:
Cost of sales	$	8,794.0		$	9,787.6		$	26,655.0		$	28,397.2
Other operating costs and expenses (1)		556.1			575.3			1,672.9			1,595.6
Depreciation, amortization and accretion		269.2			238.3			785.1			702.4
Losses (gains) related to asset sales		(0.3	)		17.6			(4.1	)		(0.6	)
Gains from sale of ownership interests in equity-method    unconsolidated affiliate – Energy Transfer Equity (2)		--			(19.4	)		--			(24.8	)
Gains related to property damage insurance recoveries		(2.3	)		--			(30.0	)		--
Non-cash asset impairment charges		43.1			5.2			57.6			5.2
General and administrative costs		41.4			50.0			130.2			138.3
Total consolidated costs and expenses	$	9,701.2		$	10,654.6		$	29,266.7		$	30,813.3
(1)   Represents cost of operating our plants, pipelines and other fixed assets, excluding non-cash depreciation, amortization and accretion charges. (2)   Amounts pertain to sales of limited partner interests in Energy Transfer Equity while this investment was accounted for using the equity method. See Note 7 for information regarding these sales.