Business Segments (Tables)

6 Months Ended

Jun. 30, 2018

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,
	2018			2017			2018			2017
Operating income	$	986.4		$	938.7		$	2,124.9		$	1,970.3
Adjustments to reconcile operating income to total gross operating margin:
Add depreciation, amortization and accretion expense in operating costs and expenses		425.3			379.2			819.6			755.4
Add asset impairment and related charges in operating costs and expenses		15.9			14.0			16.8			25.2
Add net losses or subtract net gains attributable to asset sales in operating costs and expenses		(0.9	)		0.3			(1.4	)		--
Add general and administrative costs		51.4			45.7			104.4			96.1
Adjustments for make-up rights on certain new pipeline projects:
Add non-refundable payments received from shippers attributable to make-up rights (1)		5.6			8.3			8.3			21.6
Subtract the subsequent recognition of revenues attributable to make-up rights (2)		(22.0	)		(6.8	)		(36.2	)		(15.9	)
Total segment gross operating margin	$	1,461.7		$	1,379.4		$	3,036.4		$	2,852.7

(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,
	2018		2017		2018		2017
Gross operating margin by segment:
NGL Pipelines & Services	$	913.7	$	759.9	$	1,798.6	$	1,615.9
Crude Oil Pipelines & Services		52.8		236.7		272.8		501.3
Natural Gas Pipelines & Services		213.4		194.4		411.3		365.3
Petrochemical & Refined Products Services		281.8		188.4		553.7		370.2
Total segment gross operating margin	$	1,461.7	$	1,379.4	$	3,036.4	$	2,852.7

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, 2018	$	3,268.8	$	2,733.8	$	789.5	$	1,619.8		$	--		$	8,411.9
Three months ended June 30, 2017		2,617.8		1,895.8		782.9		1,301.2			--			6,597.7
Six months ended June 30, 2018		6,678.4		6,286.5		1,591.5		3,129.3			--			17,685.7
Six months ended June 30, 2017		5,960.8		3,698.4		1,540.7		2,707.4			--			13,907.3
Revenues from related parties:
Three months ended June 30, 2018		4.9		47.4		3.3		--			--			55.6
Three months ended June 30, 2017		2.8		3.8		3.3		--			--			9.9
Six months ended June 30, 2018		8.6		65.6		6.1		--			--			80.3
Six months ended June 30, 2017		5.6		8.4		6.7		--			--			20.7
Intersegment and intrasegment revenues:
Three months ended June 30, 2018		6,004.6		9,978.5		165.0		784.0			(16,932.1	)		--
Three months ended June 30, 2017		5,642.1		3,383.7		220.6		389.7			(9,636.1	)		--
Six months ended June 30, 2018		12,569.5		21,404.8		335.9		1,397.3			(35,707.5	)		--
Six months ended June 30, 2017		14,516.9		6,857.7		415.1		804.4			(22,594.1	)		--
Total revenues:
Three months ended June 30, 2018		9,278.3		12,759.7		957.8		2,403.8			(16,932.1	)		8,467.5
Three months ended June 30, 2017		8,262.7		5,283.3		1,006.8		1,690.9			(9,636.1	)		6,607.6
Six months ended June 30, 2018		19,256.5		27,756.9		1,933.5		4,526.6			(35,707.5	)		17,766.0
Six months ended June 30, 2017		20,483.3		10,564.5		1,962.5		3,511.8			(22,594.1	)		13,928.0
Equity in income (loss) of unconsolidated affiliates:
Three months ended June 30, 2018		39.4		83.5		1.6		(2.2	)		--			122.3
Three months ended June 30, 2017		19.0		89.2		0.9		(2.1	)		--			107.0
Six months ended June 30, 2018		58.8		181.4		2.6		(4.8	)		--			238.0
Six months ended June 30, 2017		34.5		170.4		1.9		(5.0	)		--			201.8

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, 2018	$	14,716.9	$	5,401.3	$	8,356.1	$	6,235.0	$	2,345.2	$	37,054.5
At December 31, 2017		13,831.2		5,208.4		8,375.0		3,507.7		4,698.1		35,620.4
Investments in unconsolidated affiliates: (see Note 5)
At June 30, 2018		630.5		1,865.7		21.0		64.3		--		2,581.5
At December 31, 2017		733.9		1,839.2		20.8		65.5		--		2,659.4
Intangible assets, net: (see Note 6)
At June 30, 2018		398.4		2,139.9		999.1		158.7		--		3,696.1
At December 31, 2017		322.3		2,186.5		1,018.4		163.1		--		3,690.3
Goodwill: (see Note 6)
At June 30, 2018		2,651.7		1,841.0		296.3		956.2		--		5,745.2
At December 31, 2017		2,651.7		1,841.0		296.3		956.2		--		5,745.2
Segment assets:
At June 30, 2018		18,397.5		11,247.9		9,672.5		7,414.2		2,345.2		49,077.3
At December 31, 2017		17,539.1		11,075.1		9,710.5		4,692.5		4,698.1		47,715.3

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 June 30,					For the Six Months Ended June 30,
	2018			2017		2018			2017
Consolidated revenues:
NGL Pipelines & Services	$	3,273.7		$	2,620.6	$	6,687.0		$	5,966.4
Crude Oil Pipelines & Services		2,781.2			1,899.6		6,352.1			3,706.8
Natural Gas Pipelines & Services		792.8			786.2		1,597.6			1,547.4
Petrochemical & Refined Products Services		1,619.8			1,301.2		3,129.3			2,707.4
Total consolidated revenues	$	8,467.5		$	6,607.6	$	17,766.0		$	13,928.0

Consolidated costs and expenses
Operating costs and expenses:
Cost of sales	$	6,391.9		$	4,731.1	$	13,532.3		$	10,066.8
Other operating costs and expenses (1)		719.8			605.6		1,407.4			1,216.0
Depreciation, amortization and accretion		425.3			379.2		819.6			755.4
Asset impairment and related charges		15.9			14.0		16.8			25.2
Net losses (gains) attributable to asset sales		(0.9	)		0.3		(1.4	)		--
General and administrative costs		51.4			45.7		104.4			96.1
Total consolidated costs and expenses	$	7,603.4		$	5,775.9	$	15,879.1		$	12,159.5

(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.