Business Segments (Tables)

12 Months Ended

Dec. 31, 2014

Measurement of Total Segment Gross Operating Margin

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

	For the Year Ended December 31,
	2014			2013			2012
Revenues	$	47,951.2		$	47,727.0		$	42,583.1
Subtract operating costs and expenses		(44,220.5	)		(44,238.7	)		(39,367.9	)
Add equity in income of unconsolidated affiliates		259.5			167.3			64.3
Add depreciation, amortization and accretion expense amounts not reflected in gross operating margin		1,282.7			1,148.9			1,061.7
Add impairment charges not reflected in gross operating margin		34.0			92.6			63.4
Subtract net gains attributable to asset sales and insurance recoveries not reflected in gross operating margin		(102.1	)		(83.4	)		(17.6	)
Add non-refundable deferred revenues attributable to shipper make-up rights on major new pipeline projects reflected in gross operating margin (1)		84.6			4.4			--
Subtract subsequent recognition of deferred revenues attributable to make-up rights		(2.9	)		--			--
Total segment gross operating margin	$	5,286.5		$	4,818.1		$	4,387.0

(1) Several of our major new liquids pipeline projects experienced periods in 2013 and 2014 where shippers were unable to meet their contractual minimum volume commitments.

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 Year Ended December 31,
	2014			2013			2012
Total segment gross operating margin	$	5,286.5		$	4,818.1		$	4,387.0
Adjustments to reconcile total segment gross operating margin to operating income:
Subtract depreciation, amortization and accretion expense amounts not reflected in gross operating margin		(1,282.7	)		(1,148.9	)		(1,061.7	)
Subtract impairment charges not reflected in gross operating margin		(34.0	)		(92.6	)		(63.4	)
Add net gains attributable to asset sales and insurance recoveries not reflected in gross operating margin (see Note 20)		102.1			83.4			17.6
Subtract non-refundable deferred revenues attributable to shipper make-up rights on major new pipeline projects reflected in gross operating margin		(84.6	)		(4.4	)		--
Add subsequent recognition of deferred revenues attributable to make-up rights		2.9			--			--
Subtract general and administrative costs not reflected in gross operating margin		(214.5	)		(188.3	)		(170.3	)
Operating income		3,775.7			3,467.3			3,109.2
Other expense, net		(919.1	)		(802.7	)		(698.4	)
Income before income taxes	$	2,856.6		$	2,664.6		$	2,410.8

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:
Year ended December 31, 2014	$	17,078.4	$	4,182.6	$	20,151.9	$	150.3	$	6,316.5		$	--	$	--		$	47,879.7
Year ended December 31, 2013		17,119.1		3,522.7		20,609.1		151.7		6,258.5			--		--			47,661.1
Year ended December 31, 2012		15,158.9		3,297.7		17,661.6		182.7		6,208.9			--		--			42,509.8
Revenues from related parties:
Year ended December 31, 2014		11.4		21.2		32.4		6.5		--			--		--			71.5
Year ended December 31, 2013		1.1		15.8		41.3		7.7		--			--		--			65.9
Year ended December 31, 2012		9.5		54.9		0.1		8.8		--			--		--			73.3
Intersegment and intrasegment revenues:
Year ended December 31, 2014		13,716.5		1,106.7		12,678.7		6.5		1,779.6			--		(29,288.0	)		--
Year ended December 31, 2013		11,096.6		959.7		10,222.3		9.6		1,764.0			--		(24,052.2	)		--
Year ended December 31, 2012		12,500.6		871.6		6,906.9		10.4		1,758.9			--		(22,048.4	)		--
Total revenues:
Year ended December 31, 2014		30,806.3		5,310.5		32,863.0		163.3		8,096.1			--		(29,288.0	)		47,951.2
Year ended December 31, 2013		28,216.8		4,498.2		30,872.7		169.0		8,022.5			--		(24,052.2	)		47,727.0
Year ended December 31, 2012		27,669.0		4,224.2		24,568.6		201.9		7,967.8			--		(22,048.4	)		42,583.1
Equity in income (loss) of unconsolidated affiliates:
Year ended December 31, 2014		30.6		3.6		184.6		54.0		(13.3	)		--		--			259.5
Year ended December 31, 2013		15.7		3.8		140.3		29.8		(22.3	)		--		--			167.3
Year ended December 31, 2012		15.9		4.4		32.6		26.9		(17.9	)		2.4		--			64.3
Gross operating margin:
Year ended December 31, 2014		2,877.7		803.3		762.5		162.0		681.0			--		--			5,286.5
Year ended December 31, 2013		2,514.4		789.0		742.7		146.1		625.9			--		--			4,818.1
Year ended December 31, 2012		2,468.5		775.5		387.7		173.0		579.9			2.4		--			4,387.0
Property, plant and equipment, net: (see Note 8)
At December 31, 2014		11,766.9		8,835.5		2,332.2		1,145.1		3,047.2			--		2,754.7			29,881.6
At December 31, 2013		9,957.8		8,917.3		1,479.9		1,223.7		2,712.4			--		2,655.5			26,946.6
At December 31, 2012		8,494.8		8,950.1		1,385.9		1,343.0		2,559.5			--		2,113.1			24,846.4
Investments in unconsolidated affiliates: (see Note 9)
At December 31, 2014		682.3		23.2		1,767.7		493.7		75.1			--		--			3,042.0
At December 31, 2013		645.5		24.2		1,165.2		531.8		70.4			--		--			2,437.1
At December 31, 2012		324.6		24.9		493.8		479.0		72.3			--		--			1,394.6
Intangible assets, net: (see Note 11)
At December 31, 2014		689.2		972.9		2,223.6		41.6		374.8			--		--			4,302.1
At December 31, 2013		285.2		1,017.8		4.5		54.7		100.0			--		--			1,462.2
At December 31, 2012		320.6		1,067.9		5.9		66.2		106.2			--		--			1,566.8
Goodwill: (see Note 11)
At December 31, 2014		2,180.4		296.3		859.9		82.0		781.3			--		--			4,199.9
At December 31, 2013		341.2		296.3		305.1		82.1		1,055.3			--		--			2,080.0
At December 31, 2012		341.2		296.3		311.2		82.1		1,056.0			--		--			2,086.8
Segment assets:
At December 31, 2014		15,318.8		10,127.9		7,183.4		1,762.4		4,278.4			--		2,754.7			41,425.6
At December 31, 2013		11,229.7		10,255.6		2,954.7		1,892.3		3,938.1			--		2,655.5			32,925.9
At December 31, 2012		9,481.2		10,339.2		2,196.8		1,970.3		3,794.0			--		2,113.1			29,894.6

Consolidated Revenues and Expenses

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

	For the Year Ended December 31,
	2014			2013			2012
NGL Pipelines & Services:
Sales of NGLs and related products	$	15,460.1		$	15,916.0		$	14,218.5
Midstream services		1,629.7			1,204.2			949.9
Total		17,089.8			17,120.2			15,168.4
Onshore Natural Gas Pipelines & Services:
Sales of natural gas		3,181.7			2,571.6			2,395.4
Midstream services		1,022.1			966.9			957.2
Total		4,203.8			3,538.5			3,352.6
Onshore Crude Oil Pipelines & Services:
Sales of crude oil		19,783.9			20,371.3			17,548.7
Midstream services		400.4			279.1			113.0
Total		20,184.3			20,650.4			17,661.7
Offshore Pipelines & Services:
Sales of natural gas		0.3			0.5			0.4
Sales of crude oil		8.6			5.7			3.3
Midstream services		147.9			153.2			187.8
Total		156.8			159.4			191.5
Petrochemical & Refined Products Services:
Sales of petrochemicals and refined products		5,575.5			5,568.8			5,470.9
Midstream services		741.0			689.7			738.0
Total		6,316.5			6,258.5			6,208.9
Total consolidated revenues	$	47,951.2		$	47,727.0		$	42,583.1

Consolidated costs and expenses
Operating costs and expenses:
Cost of sales	$	40,464.1		$	40,770.2		$	36,015.5
Other operating costs and expenses (1)		2,541.8			2,310.4			2,244.9
Depreciation, amortization and accretion		1,282.7			1,148.9			1,061.7
Net gains attributable to asset sales and insurance recoveries		(102.1	)		(83.4	)		(17.6	)
Non-cash asset impairment charges		34.0			92.6			63.4
General and administrative costs		214.5			188.3			170.3
Total consolidated costs and expenses	$	44,435.0		$	44,427.0		$	39,538.2

(1) Represents cost of operating our plants, pipelines and other fixed assets, excluding depreciation, amortization and accretion charges.

Our largest non-affiliated customer for 2014 was Shell Oil Company and its affiliates (collectively, "Shell"), which accounted for $4.05 billion, or 8.5%, of our consolidated revenues for the year. The following table presents our consolidated revenues from Shell by business segment for the year ended December 31, 2014:

NGL Pipelines & Services	$	615.5
Onshore Natural Gas Pipelines & Services		130.3
Onshore Crude Oil Pipelines & Services		3,106.0
Offshore Pipelines & Services		6.7
Petrochemical & Refined Products Services		194.2
Total	$	4,052.7

- 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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