Business Segments (Tables)

6 Months Ended

Jun. 30, 2013

Measurement of Total Segment Gross Operating Margin

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

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2013			2012			2013			2012
Revenues	$	11,149.3		$	9,789.8		$	22,532.4		$	21,042.3
Less: Operating costs and expenses		(10,367.2	)		(9,009.5	)		(20,787.6	)		(19,476.7	)
Add: Equity in income of unconsolidated affiliates		37.6			11.3			82.1			21.2
Amounts included in operating costs and expenses:
Depreciation, amortization and accretion		289.7			261.3			566.5			515.9
Non-cash asset impairment charges		27.1			9.1			38.1			14.5
Losses (gains) attributable to asset sales and insurance recoveries		5.7			(29.0	)		(58.2	)		(31.5	)
Total segment gross operating margin	$	1,142.2		$	1,033.0		$	2,373.3		$	2,085.7

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 Three Months Ended June 30,						For the Six Months Ended June 30,
	2013			2012			2013			2012
Total segment gross operating margin	$	1,142.2		$	1,033.0		$	2,373.3		$	2,085.7
Adjustments to reconcile total segment gross operating margin to operating income:
Amounts included in operating costs and expenses:
Depreciation, amortization and accretion		(289.7	)		(261.3	)		(566.5	)		(515.9	)
Non-cash asset impairment charges		(27.1	)		(9.1	)		(38.1	)		(14.5	)
Gains (losses) attributable to asset sales and insurance recoveries		(5.7	)		29.0			58.2			31.5
General and administrative costs		(45.5	)		(42.5	)		(95.0	)		(88.8	)
Operating income		774.2			749.1			1,731.9			1,498.0
Other expense, net		(200.5	)		(173.4	)		(396.5	)		(301.2	)
Income before income taxes	$	573.7		$	575.7		$	1,335.4		$	1,196.8

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:
Three months ended June 30, 2013	$	3,504.7	$	953.0	$	5,129.5	$	39.3	$	1,516.1		$	--	$	--		$	11,142.6
Three months ended June 30, 2012		3,327.9		700.9		4,188.7		47.5		1,499.2			--		--			9,764.2
Six months ended June 30, 2013		7,455.4		1,827.2		9,922.7		79.8		3,234.7			--		--			22,519.8
Six months ended June 30, 2012		7,682.0		1,505.8		8,662.3		101.9		3,033.9			--		--			20,985.9
Revenues from related parties:
Three months ended June 30, 2013		0.2		4.5		--		2.0		--			--		--			6.7
Three months ended June 30, 2012		4.6		19.5		--		1.5		--			--		--			25.6
Six months ended June 30, 2013		0.5		8.0		--		4.1		--			--		--			12.6
Six months ended June 30, 2012		5.0		48.2		--		3.2		--			--		--			56.4
Intersegment and intrasegment revenues:
Three months ended June 30, 2013		2,380.4		254.9		2,717.0		4.2		394.2			--		(5,750.7	)		--
Three months ended June 30, 2012		2,276.5		179.0		1,735.5		1.7		438.7			--		(4,631.4	)		--
Six months ended June 30, 2013		5,089.4		511.1		4,741.7		6.2		816.3			--		(11,164.7	)		--
Six months ended June 30, 2012		5,094.7		402.7		3,466.4		5.0		878.6			--		(9,847.4	)		--
Total revenues:
Three months ended June 30, 2013		5,885.3		1,212.4		7,846.5		45.5		1,910.3			--		(5,750.7	)		11,149.3
Three months ended June 30, 2012		5,609.0		899.4		5,924.2		50.7		1,937.9			--		(4,631.4	)		9,789.8
Six months ended June 30, 2013		12,545.3		2,346.3		14,664.4		90.1		4,051.0			--		(11,164.7	)		22,532.4
Six months ended June 30, 2012		12,781.7		1,956.7		12,128.7		110.1		3,912.5			--		(9,847.4	)		21,042.3
Equity in income (loss) of unconsolidated affiliates:
Three months ended June 30, 2013		3.8		0.9		30.1		8.7		(5.9	)		--		--			37.6
Three months ended June 30, 2012		3.8		1.2		3.6		4.1		(1.4	)		--		--			11.3
Six months ended June 30, 2013		7.7		1.9		66.7		15.1		(9.3	)		--		--			82.1
Six months ended June 30, 2012		9.0		2.6		4.1		11.0		(7.9	)		2.4		--			21.2
Gross operating margin:
Three months ended June 30, 2013		544.9		197.7		197.2		39.7		162.7			--		--			1,142.2
Three months ended June 30, 2012		565.8		175.8		95.8		38.3		157.3			--		--			1,033.0
Six months ended June 30, 2013		1,137.4		388.5		433.6		80.2		333.6			--		--			2,373.3
Six months ended June 30, 2012		1,220.7		382.0		135.1		90.4		255.1			2.4		--			2,085.7
Property, plant and equipment, net: (see Note 6)
At June 30, 2013		9,195.8		8,925.8		1,426.2		1,277.6		2,636.0			--		2,104.7			25,566.1
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 7)
At June 30, 2013		515.5		24.4		783.1		543.3		72.5			--		--			1,938.8
At December 31, 2012		324.6		24.9		493.8		479.0		72.3			--		--			1,394.6
Intangible assets, net: (see Note 8)
At June 30, 2013		301.5		1,043.2		5.2		60.2		103.1			--		--			1,513.2
At December 31, 2012		320.6		1,067.9		5.9		66.2		106.2			--		--			1,566.8
Goodwill: (see Note 8)
At June 30, 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 June 30, 2013		10,354.0		10,289.7		2,519.6		1,963.2		3,866.9			--		2,104.7			31,098.1
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 Three Months Ended June 30,						For the Six Months Ended June 30,
	2013			2012			2013			2012
NGL Pipelines & Services:
Sales of NGLs and related products	$	3,235.9		$	3,133.9		$	6,901.5		$	7,249.2
Midstream asset services		269.0			198.6			554.4			437.8
Total		3,504.9			3,332.5			7,455.9			7,687.0
Onshore Natural Gas Pipelines & Services:
Sales of natural gas		723.9			510.8			1,363.4			1,083.4
Midstream asset services		233.6			209.6			471.8			470.6
Total		957.5			720.4			1,835.2			1,554.0
Onshore Crude Oil Pipelines & Services:
Sales of crude oil		5,057.4			4,174.0			9,800.2			8,621.6
Midstream asset services		72.1			14.7			122.5			40.7
Total		5,129.5			4,188.7			9,922.7			8,662.3
Offshore Pipelines & Services:
Sales of natural gas		0.1			--			0.2			0.1
Sales of crude oil		(0.1	)		--			2.2			1.4
Midstream asset services		41.3			49.0			81.5			103.6
Total		41.3			49.0			83.9			105.1
Petrochemical & Refined Products Services:
Sales of petrochemicals and refined products		1,334.2			1,316.8			2,881.4			2,668.0
Midstream asset services		181.9			182.4			353.3			365.9
Total		1,516.1			1,499.2			3,234.7			3,033.9
Total consolidated revenues	$	11,149.3		$	9,789.8		$	22,532.4		$	21,042.3

Consolidated costs and expenses
Operating costs and expenses:
Cost of sales	$	9,458.3		$	8,195.2		$	19,150.8		$	17,861.0
Other operating costs and expenses (1)		586.4			572.9			1,090.4			1,116.8
Depreciation, amortization and accretion		289.7			261.3			566.5			515.9
Losses (gains) attributable to asset sales and insurance recoveries		5.7			(29.0	)		(58.2	)		(31.5	)
Non-cash asset impairment charges		27.1			9.1			38.1			14.5
General and administrative costs		45.5			42.5			95.0			88.8
Total consolidated costs and expenses	$	10,412.7		$	9,052.0		$	20,882.6		$	19,565.5

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

- 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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