Business Segments (Tables)

12 Months Ended

Dec. 31, 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 Year Ended December 31,
	2017			2016			2015
Income before income taxes	$	2,881.3		$	2,576.4		$	2,555.9
Add total other expense, net		1,047.6			1,004.3			984.3
Operating income		3,928.9			3,580.7			3,540.2
Adjustments to reconcile operating income to total gross operating margin:
Add depreciation, amortization and accretion expense in operating costs and expenses		1,531.3			1,456.7			1,428.2
Add asset impairment and related charges in operating costs and expenses		49.8			52.8			162.6
Add net losses or subtract net gains attributable to asset sales in operating costs and expenses		(10.7	)		(2.5	)		15.6
Add general and administrative costs		181.1			160.1			192.6
Adjustments for make-up rights on certain new pipeline projects:
Add non-refundable payments received from shippers attributable to make-up rights (1)		24.1			17.5			53.6
Subtract the subsequent recognition of revenues attributable to make-up rights (2)		(29.9	)		(34.6	)		(60.7	)
Total segment gross operating margin	$	5,674.6		$	5,230.7		$	5,332.1

(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.

Information by Business Segments

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 Year Ended December 31,
	2017		2016		2015
Gross operating margin by segment:
NGL Pipelines & Services	$	3,258.3	$	2,990.6	$	2,771.6
Crude Oil Pipelines & Services		987.2		854.6		961.9
Natural Gas Pipelines & Services		714.5		734.9		782.6
Petrochemical & Refined Products Services		714.6		650.6		718.5
Offshore Pipelines & Services		--		--		97.5
Total segment gross operating margin	$	5,674.6	$	5,230.7	$	5,332.1

Information by business segment, together with reconciliations to amounts presented on our 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			Offshore Pipelines & Services		Adjustments and Eliminations			Consolidated Total
Revenues from third parties:
Year ended December 31, 2017	$	12,455.7	$	8,137.2	$	3,132.5	$	5,471.1		$	--	$	--		$	29,196.5
Year ended December 31, 2016		10,232.7		6,478.7		2,532.4		3,721.8			--		--			22,965.6
Year ended December 31, 2015		9,779.0		10,258.3		2,729.5		4,111.9			76.9		--			26,955.6
Revenues from related parties:
Year ended December 31, 2017		12.3		19.6		13.1		--			--		--			45.0
Year ended December 31, 2016		9.8		36.3		10.6		--			--		--			56.7
Year ended December 31, 2015		9.0		47.6		13.8		--			1.9		--			72.3
Intersegment and intrasegment revenues:
Year ended December 31, 2017		27,278.6		15,943.0		850.8		1,766.9			--		(45,839.3	)		--
Year ended December 31, 2016		19,150.0		9,052.0		668.5		1,234.8			--		(30,105.3	)		--
Year ended December 31, 2015		10,217.9		5,162.0		662.1		1,126.0			0.6		(17,168.6	)		--
Total revenues:
Year ended December 31, 2017		39,746.6		24,099.8		3,996.4		7,238.0			--		(45,839.3	)		29,241.5
Year ended December 31, 2016		29,392.5		15,567.0		3,211.5		4,956.6			--		(30,105.3	)		23,022.3
Year ended December 31, 2015		20,005.9		15,467.9		3,405.4		5,237.9			79.4		(17,168.6	)		27,027.9
Equity in income (loss) of unconsolidated affiliates:
Year ended December 31, 2017		73.4		358.4		3.8		(9.6	)		--		--			426.0
Year ended December 31, 2016		61.4		311.9		3.8		(15.1	)		--		--			362.0
Year ended December 31, 2015		57.5		281.4		3.8		(15.7	)		46.6		--			373.6

Information by business segment, together with reconciliations to our 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		Offshore Pipelines & Services		Adjustments and Eliminations		Consolidated Total
Property, plant and equipment, net: (see Note 5)
At December 31, 2017	$	13,831.2	$	5,208.4	$	8,375.0	$	3,507.7	$	--	$	4,698.1	$	35,620.4
At December 31, 2016		14,091.5		4,216.1		8,403.0		3,261.2		--		3,320.7		33,292.5
At December 31, 2015		12,909.7		3,550.3		8,620.0		3,060.7		--		3,894.0		32,034.7
Investments in unconsolidated affiliates: (see Note 6)
At December 31, 2017		733.9		1,839.2		20.8		65.5		--		--		2,659.4
At December 31, 2016		750.4		1,824.6		21.7		80.6		--		--		2,677.3
At December 31, 2015		718.7		1,813.4		22.5		73.9		--		--		2,628.5
Intangible assets, net: (see Note 7)
At December 31, 2017		322.3		2,186.5		1,018.4		163.1		--		--		3,690.3
At December 31, 2016		350.2		2,279.0		1,054.5		180.4		--		--		3,864.1
At December 31, 2015		380.3		2,377.5		1,087.7		191.7		--		--		4,037.2
Goodwill: (see Note 7)
At December 31, 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
At December 31, 2015		2,651.7		1,841.0		296.3		956.2		--		--		5,745.2
Segment assets:
At December 31, 2017		17,539.1		11,075.1		9,710.5		4,692.5		--		4,698.1		47,715.3
At December 31, 2016		17,843.8		10,160.7		9,775.5		4,478.4		--		3,320.7		45,579.1
At December 31, 2015		16,660.4		9,582.2		10,026.5		4,282.5		--		3,894.0		44,445.6

Consolidated Revenues and Expenses

Other Revenue and Expense Information

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

	For the Year Ended December 31,
	2017			2016			2015
Consolidated revenues:
NGL Pipelines & Services	$	12,468.0		$	10,242.5		$	9,788.0
Crude Oil Pipelines & Services		8,156.8			6,515.0			10,305.9
Natural Gas Pipelines & Services		3,145.6			2,543.0			2,743.3
Petrochemical & Refined Products Services		5,471.1			3,721.8			4,111.9
Offshore Pipelines & Services		--			--			78.8
Total consolidated revenues	$	29,241.5		$	23,022.3		$	27,027.9

Consolidated costs and expenses:
Operating costs and expenses:
Cost of sales	$	21,487.0		$	15,710.9		$	19,612.9
Other operating costs and expenses (1)		2,500.1			2,425.6			2,449.4
Depreciation, amortization and accretion		1,531.3			1,456.7			1,428.2
Asset impairment and related charges		49.8			52.8			162.6
Net losses (gains) attributable to asset sales		(10.7	)		(2.5	)		15.6
General and administrative costs		181.1			160.1			192.6
Total consolidated costs and expenses	$	25,738.6		$	19,803.6		$	23,861.3

(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 and insurance recoveries.

Our largest non-affiliated customer for 2017 was Vitol Holding B.V. and its affiliates (collectively, “Vitol”), which accounted for $3.29 billion, or 11.2%, of our consolidated revenues for the year. Vitol is a global energy and commodity trading company. The following table presents our consolidated revenues from Vitol by business segment for the year ended December 31, 2017:

NGL Pipelines & Services	$	2,099.1
Crude Oil Pipelines & Services		625.6
Natural Gas Pipelines & Services		51.1
Petrochemical & Refined Products Services		512.5
Total	$	3,288.3