Business Segments (Tables)

6 Months Ended

Jun. 30, 2014

Measurement of Total Segment Gross Operating Margin

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

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2014			2013			2014			2013
Revenues	$	12,520.8		$	11,149.3		$	25,430.7		$	22,532.4
Subtract operating costs and expenses		(11,639.1	)		(10,367.2	)		(23,519.6	)		(20,787.6	)
Add equity in income of unconsolidated affiliates		50.3			37.6			106.8			82.1
Add depreciation, amortization and accretion expense amounts not reflected in gross operating margin		312.4			289.7			613.8			566.5
Add impairment charges not reflected in gross operating margin		3.7			27.1			12.5			38.1
Subtract net gains or add net losses attributable to asset sales and insurance recoveries not reflected in gross operating margin		(6.8	)		5.7			(96.4	)		(58.2	)
Add non-refundable deferred revenues attributable to shipper make-up rights on new pipeline projects reflected in gross operating margin		21.9			--			45.2			--
Total segment gross operating margin	$	1,263.2		$	1,142.2		$	2,593.0		$	2,373.3

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,
	2014			2013			2014			2013
Total segment gross operating margin	$	1,263.2		$	1,142.2		$	2,593.0		$	2,373.3
Adjustments to reconcile total segment gross operating margin to operating income:
Subtract depreciation, amortization and accretion expense amounts not reflected in gross operating margin		(312.4	)		(289.7	)		(613.8	)		(566.5	)
Subtract impairment charges not reflected in gross operating margin		(3.7	)		(27.1	)		(12.5	)		(38.1	)
Add net gains or subtract net losses attributable to asset sales and insurance recoveries not reflected in gross operating margin (see Note 16)		6.8			(5.7	)		96.4			58.2
Subtract non-refundable deferred revenues attributable to shipper make-up rights on new pipeline projects reflected in gross operating margin		(21.9	)		--			(45.2	)		--
Subtract general and administrative costs not reflected in gross operating margin		(47.7	)		(45.5	)		(100.9	)		(95.0	)
Operating income		884.3			774.2			1,917.0			1,731.9
Other expense, net		(227.8	)		(200.5	)		(449.0	)		(396.5	)
Income before income taxes	$	656.5		$	573.7		$	1,468.0		$	1,335.4

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			Adjustments and Eliminations			Consolidated Total
Revenues from third parties:
Three months ended June 30, 2014	$	4,019.5	$	1,034.5	$	5,865.6	$	36.6	$	1,547.3		$	--		$	12,503.5
Three months ended June 30, 2013		3,504.7		953.0		5,129.5		39.3		1,516.1			--			11,142.6
Six months ended June 30, 2014		9,193.2		2,234.5		10,801.0		71.3		3,077.9			--			25,377.9
Six months ended June 30, 2013		7,455.4		1,827.2		9,922.7		79.8		3,234.7			--			22,519.8
Revenues from related parties:
Three months ended June 30, 2014		1.7		6.5		6.7		2.4		--			--			17.3
Three months ended June 30, 2013		0.2		4.5		--		2.0		--			--			6.7
Six months ended June 30, 2014		7.5		11.1		29.6		4.6		--			--			52.8
Six months ended June 30, 2013		0.5		8.0		--		4.1		--			--			12.6
Intersegment and intrasegment revenues:
Three months ended June 30, 2014		3,324.9		295.4		5,634.3		1.3		428.4			(9,684.3	)		--
Three months ended June 30, 2013		2,380.4		254.9		2,717.0		4.2		394.2			(5,750.7	)		--
Six months ended June 30, 2014		7,185.9		604.8		8,185.0		3.6		865.4			(16,844.7	)		--
Six months ended June 30, 2013		5,089.4		511.1		4,741.7		6.2		816.3			(11,164.7	)		--
Total revenues:
Three months ended June 30, 2014		7,346.1		1,336.4		11,506.6		40.3		1,975.7			(9,684.3	)		12,520.8
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
Six months ended June 30, 2014		16,386.6		2,850.4		19,015.6		79.5		3,943.3			(16,844.7	)		25,430.7
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
Equity in income (loss) of unconsolidated affiliates:
Three months ended June 30, 2014		6.1		0.9		42.2		7.6		(6.5	)		--			50.3
Three months ended June 30, 2013		3.8		0.9		30.1		8.7		(5.9	)		--			37.6
Six months ended June 30, 2014		7.5		1.8		84.9		18.7		(6.1	)		--			106.8
Six months ended June 30, 2013		7.7		1.9		66.7		15.1		(9.3	)		--			82.1
Gross operating margin:
Three months ended June 30, 2014		680.9		203.0		184.0		33.6		161.7			--			1,263.2
Three months ended June 30, 2013		544.9		197.7		197.2		39.7		162.7			--			1,142.2
Six months ended June 30, 2014		1,460.9		423.4		343.7		72.9		292.1			--			2,593.0
Six months ended June 30, 2013		1,137.4		388.5		433.6		80.2		333.6			--			2,373.3
Property, plant and equipment, net: (see Note 6)
At June 30, 2014		11,800.0		8,865.0		1,511.0		1,184.9		2,730.8			1,463.0			27,554.7
At December 31, 2013		9,957.8		8,917.3		1,479.9		1,223.7		2,712.4			2,655.5			26,946.6
Investments in unconsolidated affiliates: (see Note 7)
At June 30, 2014		680.9		23.6		1,577.1		522.8		74.9			--			2,879.3
At December 31, 2013		645.5		24.2		1,165.2		531.8		70.4			--			2,437.1
Intangible assets, net: (see Note 8)
At June 30, 2014		273.0		994.7		3.9		46.4		96.9			--			1,414.9
At December 31, 2013		285.2		1,017.8		4.5		54.7		100.0			--			1,462.2
Goodwill: (see Note 8)
At June 30, 2014		861.2		296.3		305.1		82.0		535.3			--			2,079.9
At December 31, 2013		341.2		296.3		305.1		82.1		1,055.3			--			2,080.0
Segment assets:
At June 30, 2014		13,615.1		10,179.6		3,397.1		1,836.1		3,437.9			1,463.0			33,928.8
At December 31, 2013		11,229.7		10,255.6		2,954.7		1,892.3		3,938.1			2,655.5			32,925.9

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,
	2014			2013			2014			2013
NGL Pipelines & Services:
Sales of NGLs and related products	$	3,630.6		$	3,235.9		$	8,426.4		$	6,901.5
Midstream services		390.6			269.0			774.3			554.4
Total		4,021.2			3,504.9			9,200.7			7,455.9
Onshore Natural Gas Pipelines & Services:
Sales of natural gas		787.0			723.9			1,740.2			1,363.4
Midstream services		254.0			233.6			505.4			471.8
Total		1,041.0			957.5			2,245.6			1,835.2
Onshore Crude Oil Pipelines & Services:
Sales of crude oil		5,781.9			5,057.4			10,655.3			9,800.2
Midstream services		90.4			72.1			175.3			122.5
Total		5,872.3			5,129.5			10,830.6			9,922.7
Offshore Pipelines & Services:
Sales of natural gas		--			0.1			0.2			0.2
Sales of crude oil		2.9			(0.1	)		5.0			2.2
Midstream services		36.1			41.3			70.7			81.5
Total		39.0			41.3			75.9			83.9
Petrochemical & Refined Products Services:
Sales of petrochemicals and refined products		1,376.6			1,334.2			2,732.8			2,881.4
Midstream services		170.7			181.9			345.1			353.3
Total		1,547.3			1,516.1			3,077.9			3,234.7
Total consolidated revenues	$	12,520.8		$	11,149.3		$	25,430.7		$	22,532.4

Consolidated costs and expenses
Operating costs and expenses:
Cost of sales	$	10,705.3		$	9,458.3		$	21,758.0		$	19,150.8
Other operating costs and expenses (1)		624.5			586.4			1,231.7			1,090.4
Depreciation, amortization and accretion		312.4			289.7			613.8			566.5
Net losses (gains) attributable to asset sales and insurance recoveries		(6.8	)		5.7			(96.4	)		(58.2	)
Non-cash asset impairment charges		3.7			27.1			12.5			38.1
General and administrative costs		47.7			45.5			100.9			95.0
Total consolidated costs and expenses	$	11,686.8		$	10,412.7		$	23,620.5		$	20,882.6

(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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