Business Segments (Tables)

3 Months Ended

Mar. 31, 2019

Measurement of Total Segment Gross Operating Margin

	For the Three Months Ended March 31,
	2019			2018
Operating income	$	1,626.2		$	1,138.5
Adjustments to reconcile operating income to total segment gross operating margin (addition or subtraction indicated by sign):
Depreciation, amortization and accretion expense in operating costs and expenses		450.9			394.3
Asset impairment and related charges in operating costs and expenses		4.8			0.9
Net gains attributable to asset sales in operating costs and expenses		(0.4	)		(0.5	)
General and administrative costs		52.2			53.0
Non-refundable payments received from shippers attributable to make-up rights (1)		2.2			2.7
Subsequent recognition of revenues attributable to make-up rights (2)		(7.5	)		(14.2	)
Total segment gross operating margin	$	2,128.4		$	1,574.7

(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 March 31,
	2019		2018
Gross operating margin by segment:
NGL Pipelines & Services	$	959.2	$	884.9
Crude Oil Pipelines & Services		662.3		220.0
Natural Gas Pipelines & Services		264.3		197.9
Petrochemical & Refined Products Services		242.6		271.9
Total segment gross operating margin	$	2,128.4	$	1,574.7

The following table summarizes the non-cash mark-to-market gains (losses) included in gross operating margin and interest expense for the periods indicated:

	For the Three Months Ended March 31,
	2019			2018
Mark-to-market gains (losses) in gross operating margin:
NGL Pipelines & Services	$	1.3		$	(3.4	)
Crude Oil Pipelines & Services		99.8			(129.6	)
Natural Gas Pipelines & Services		(0.3	)		(2.2	)
Petrochemical & Refined Products Services		(4.5	)		(1.6	)
Total mark-to-market impact on gross operating margin		96.3			(136.8	)
Mark-to-market loss in interest expense		--			(0.1	)
Total	$	96.3		$	(136.9	)

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 March 31, 2019	$	3,311.6	$	2,601.6	$	923.7	$	1,694.3		$	--		$	8,531.2
Three months ended March 31, 2018		3,409.6		3,552.7		802.0		1,509.5			--			9,273.8
Revenues from related parties:
Three months ended March 31, 2019		2.8		5.7		3.8		--			--			12.3
Three months ended March 31, 2018		3.7		18.2		2.8		--			--			24.7
Intersegment and intrasegment revenues:
Three months ended March 31, 2019		5,491.4		7,885.0		195.4		714.4			(14,286.2	)		--
Three months ended March 31, 2018		6,564.9		11,426.3		170.9		613.3			(18,775.4	)		--
Total revenues:
Three months ended March 31, 2019		8,805.8		10,492.3		1,122.9		2,408.7			(14,286.2	)		8,543.5
Three months ended March 31, 2018		9,978.2		14,997.2		975.7		2,122.8			(18,775.4	)		9,298.5
Equity in income (loss) of unconsolidated affiliates:
Three months ended March 31, 2019		30.1		124.6		1.7		(1.8	)		--			154.6
Three months ended March 31, 2018		19.4		97.9		1.0		(2.6	)		--			115.7

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 March 31, 2019	$	15,909.7	$	6,216.0	$	8,320.5	$	6,206.0	$	2,695.3	$	39,347.5
At December 31, 2018		14,845.4		5,847.7		8,303.8		6,213.9		3,526.8		38,737.6
Investments in unconsolidated affiliates: (see Note 5)
At March 31, 2019		670.3		1,898.0		23.2		62.8		--		2,654.3
At December 31, 2018		662.0		1,867.5		22.8		62.8		--		2,615.1
Intangible assets, net: (see Note 6)
At March 31, 2019		371.0		2,072.6		970.1		152.2		--		3,565.9
At December 31, 2018		380.1		2,094.6		979.3		154.4		--		3,608.4
Goodwill: (see Note 6)
At March 31, 2019		2,651.7		1,841.0		296.3		956.2		--		5,745.2
At December 31, 2018		2,651.7		1,841.0		296.3		956.2		--		5,745.2
Segment assets:
At March 31, 2019		19,602.7		12,027.6		9,610.1		7,377.2		2,695.3		51,312.9
At December 31, 2018		18,539.2		11,650.8		9,602.2		7,387.3		3,526.8		50,706.3

Consolidated Revenues and Expenses

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

	For the Three Months Ended March 31,
	2019			2018
Consolidated revenues:
NGL Pipelines & Services	$	3,314.4		$	3,413.3
Crude Oil Pipelines & Services		2,607.3			3,570.9
Natural Gas Pipelines & Services		927.5			804.8
Petrochemical & Refined Products Services		1,694.3			1,509.5
Total consolidated revenues	$	8,543.5		$	9,298.5

Consolidated costs and expenses
Operating costs and expenses:
Cost of sales	$	5,835.6		$	7,140.4
Other operating costs and expenses (1)		728.8			687.6
Depreciation, amortization and accretion		450.9			394.3
Asset impairment and related charges		4.8			0.9
Net gains attributable to asset sales		(0.4	)		(0.5	)
General and administrative costs		52.2			53.0
Total consolidated costs and expenses	$	7,071.9		$	8,275.7

(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.