Business Segments (Tables)

6 Months Ended

Jun. 30, 2017

Measurement of Total Segment Gross Operating Margin

The following table presents our measurement of total segment gross operating margin for the periods presented. The GAAP financial measure most directly comparable to total segment gross operating margin is operating income.

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2017			2016			2017			2016
Income before income taxes	$	674.7		$	569.9		$	1,451.7		$	1,248.5
Add total other expense, net		264.0			267.0			518.6			504.0
Operating income		938.7			836.9			1,970.3			1,752.5
Adjustments to reconcile operating income to total gross operating margin:
Add depreciation, amortization and accretion expense in operating costs and expenses		379.2			360.3			755.4			718.5
Add asset impairment and related charges in operating costs and expenses		14.0			20.2			25.2			21.9
Add net losses attributable to asset sales in operating costs and expenses		0.3			1.7			--			6.6
Add general and administrative costs		45.7			35.1			96.1			79.0
Adjustments for make-up rights on certain new pipeline projects:
Add non-refundable payments received from shippers attributable to make-up rights (1)		8.3			1.8			21.6			8.9
Subtract the subsequent recognition of revenues attributable to make-up rights (2)		(6.8	)		(6.6	)		(15.9	)		(19.5	)
Total segment gross operating margin	$	1,379.4		$	1,249.4		$	2,852.7		$	2,567.9

(1)Since make-up rights entail a future performance obligation by the pipeline to the shipper, these receipts are recorded as deferred revenue for GAAP purposes; however, these receipts are included in gross operating margin in the period of receipt since they are nonrefundable to the shipper. (2)As deferred revenues attributable to make-up rights are subsequently recognized as revenue under GAAP, gross operating margin must be adjusted to remove such amounts to prevent duplication since the associated non-refundable payments were previously included in gross operating margin.

Gross operating margin by segment is calculated by subtracting segment operating costs and expenses from segment revenues, with both segment totals reflecting the adjustments noted in the preceding table, as applicable, and before the elimination of intercompany transactions. The following table presents gross operating margin by segment for the periods indicated:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2017		2016		2017		2016
Gross operating margin by segment:
NGL Pipelines & Services	$	759.9	$	719.1	$	1,615.9	$	1,502.8
Crude Oil Pipelines & Services		236.7		177.4		501.3		379.7
Natural Gas Pipelines & Services		194.4		177.4		365.3		355.1
Petrochemical & Refined Products Services		188.4		175.5		370.2		330.3
Total segment gross operating margin	$	1,379.4	$	1,249.4	$	2,852.7	$	2,567.9

Information by Business Segments

Summarized Segment Financial Information

Information by business segment, together with reconciliations to amounts presented on our Unaudited Condensed Statements of Consolidated Operations, is presented in the following table:

	Reportable Business Segments
	NGL Pipelines & Services		Crude Oil Pipelines & Services		Natural Gas Pipelines & Services		Petrochemical & Refined Products Services			Adjustments and Eliminations			Consolidated Total
Revenues from third parties:
Three months ended June 30, 2017	$	2,617.8	$	1,895.8	$	782.9	$	1,301.2		$	--		$	6,597.7
Three months ended June 30, 2016		2,512.7		1,651.4		533.9		906.6			--			5,604.6
Six months ended June 30, 2017		5,960.8		3,698.4		1,540.7		2,707.4			--			13,907.3
Six months ended June 30, 2016		4,914.7		2,928.9		1,081.2		1,669.5			--			10,594.3
Revenues from related parties:
Three months ended June 30, 2017		2.8		3.8		3.3		--			--			9.9
Three months ended June 30, 2016		2.8		8.6		1.8		--			--			13.2
Six months ended June 30, 2017		5.6		8.4		6.7		--			--			20.7
Six months ended June 30, 2016		4.6		19.7		4.5		--			--			28.8
Intersegment and intrasegment revenues:
Three months ended June 30, 2017		5,642.1		3,383.7		220.6		389.7			(9,636.1	)		--
Three months ended June 30, 2016		4,880.8		2,445.7		146.9		307.7			(7,781.1	)		--
Six months ended June 30, 2017		14,516.9		6,857.7		415.1		804.4			(22,594.1	)		--
Six months ended June 30, 2016		8,055.6		3,945.1		271.6		550.4			(12,822.7	)		--
Total revenues:
Three months ended June 30, 2017		8,262.7		5,283.3		1,006.8		1,690.9			(9,636.1	)		6,607.6
Three months ended June 30, 2016		7,396.3		4,105.7		682.6		1,214.3			(7,781.1	)		5,617.8
Six months ended June 30, 2017		20,483.3		10,564.5		1,962.5		3,511.8			(22,594.1	)		13,928.0
Six months ended June 30, 2016		12,974.9		6,893.7		1,357.3		2,219.9			(12,822.7	)		10,623.1
Equity in income (loss) of unconsolidated affiliates:
Three months ended June 30, 2017		19.0		89.2		0.9		(2.1	)		--			107.0
Three months ended June 30, 2016		14.0		65.8		0.9		(4.3	)		--			76.4
Six months ended June 30, 2017		34.5		170.4		1.9		(5.0	)		--			201.8
Six months ended June 30, 2016		29.1		155.9		1.9		(9.4	)		--			177.5

Information by business segment, together with reconciliations to our Unaudited Condensed Consolidated Balance Sheet totals, is presented in the following table:

	Reportable Business Segments
	NGL Pipelines & Services		Crude Oil Pipelines & Services		Natural Gas Pipelines & Services		Petrochemical & Refined Products Services		Adjustments and Eliminations		Consolidated Total
Property, plant and equipment, net: (see Note 4)
At June 30, 2017	$	14,125.8	$	4,355.1	$	8,297.2	$	3,340.7	$	4,101.9	$	34,220.7
At December 31, 2016		14,091.5		4,216.1		8,403.0		3,261.2		3,320.7		33,292.5
Investments in unconsolidated affiliates: (see Note 5)
At June 30, 2017		751.8		1,822.8		21.3		65.4		--		2,661.3
At December 31, 2016		750.4		1,824.6		21.7		80.6		--		2,677.3
Intangible assets, net: (see Note 6)
At June 30, 2017		335.6		2,233.6		1,037.5		175.7		--		3,782.4
At December 31, 2016		350.2		2,279.0		1,054.5		180.4		--		3,864.1
Goodwill: (see Note 6)
At June 30, 2017		2,651.7		1,841.0		296.3		956.2		--		5,745.2
At December 31, 2016		2,651.7		1,841.0		296.3		956.2		--		5,745.2
Segment assets:
At June 30, 2017		17,864.9		10,252.5		9,652.3		4,538.0		4,101.9		46,409.6
At December 31, 2016		17,843.8		10,160.7		9,775.5		4,478.4		3,320.7		45,579.1

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 June 30,				For the Six Months Ended June 30,
	2017		2016		2017		2016
NGL Pipelines & Services:
Sales of NGLs and related products	$	2,158.0	$	2,060.4	$	5,045.2	$	4,003.9
Midstream services		462.6		455.1		921.2		915.4
Total		2,620.6		2,515.5		5,966.4		4,919.3
Crude Oil Pipelines & Services:
Sales of crude oil		1,705.1		1,482.2		3,323.7		2,603.3
Midstream services		194.5		177.8		383.1		345.3
Total		1,899.6		1,660.0		3,706.8		2,948.6
Natural Gas Pipelines & Services:
Sales of natural gas		560.6		305.7		1,104.6		620.7
Midstream services		225.6		230.0		442.8		465.0
Total		786.2		535.7		1,547.4		1,085.7
Petrochemical & Refined Products Services:
Sales of petrochemicals and refined products		1,114.1		713.4		2,325.2		1,266.6
Midstream services		187.1		193.2		382.2		402.9
Total		1,301.2		906.6		2,707.4		1,669.5
Total consolidated revenues	$	6,607.6	$	5,617.8	$	13,928.0	$	10,623.1

Consolidated costs and expenses
Operating costs and expenses:
Cost of sales	$	4,731.1	$	3,838.7	$	10,066.8	$	7,047.0
Other operating costs and expenses (1)		605.6		601.3		1,216.0		1,175.1
Depreciation, amortization and accretion		379.2		360.3		755.4		718.5
Asset impairment and related charges		14.0		20.2		25.2		21.9
Net losses attributable to asset sales		0.3		1.7		--		6.6
General and administrative costs		45.7		35.1		96.1		79.0
Total consolidated costs and expenses	$	5,775.9	$	4,857.3	$	12,159.5	$	9,048.1

(1)Represents the cost of operating our plants, pipelines and other fixed assets excluding: depreciation, amortization and accretion charges; asset impairment and related charges; and net losses (or gains) attributable to asset sales.