Business Segments (Tables)

6 Months Ended

Jun. 30, 2015

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,
	2015			2014			2015			2014
Revenues	$	7,092.5		$	12,520.8		$	14,565.0		$	25,430.7
Subtract operating costs and expenses		(6,357.5	)		(11,639.1	)		(12,973.9	)		(23,519.6	)
Add equity in income of unconsolidated affiliates		110.2			50.3			199.4			106.8
Add depreciation, amortization and accretion expense amounts not reflected in gross operating margin		385.6			312.4			730.9			613.8
Add impairment charges not reflected in gross operating margin		79.0			3.7			112.3			12.5
Add net losses or subtract net gains attributable to asset sales and insurance recoveries not reflected in gross operating margin (see Note 16)		2.5			(6.8	)		2.4			(96.4	)
Add non-refundable deferred revenues attributable to shipper make-up rights on new pipeline projects reflected in gross operating margin		5.2			21.9			35.9			45.2
Subtract subsequent recognition of deferred revenues attributable to make-up rights not reflected in gross operating margin		(14.3	)		--			(34.4	)		--
Total segment gross operating margin	$	1,303.2		$	1,263.2		$	2,637.6		$	2,593.0

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,
	2015			2014			2015			2014
Total segment gross operating margin	$	1,303.2		$	1,263.2		$	2,637.6		$	2,593.0
Adjustments to reconcile total segment gross operating margin to operating income:
Subtract depreciation, amortization and accretion expense amounts not reflected in gross operating margin		(385.6	)		(312.4	)		(730.9	)		(613.8	)
Subtract impairment charges not reflected in gross operating margin		(79.0	)		(3.7	)		(112.3	)		(12.5	)
Add net gains or subtract net losses attributable to asset sales and insurance recoveries not reflected in gross operating margin		(2.5	)		6.8			(2.4	)		96.4
Subtract non-refundable deferred revenues attributable to shipper make-up rights on new pipeline projects reflected in gross operating margin		(5.2	)		(21.9	)		(35.9	)		(45.2	)
Add subsequent recognition of deferred revenues attributable to make-up rights not reflected in gross operating margin		14.3			--			34.4			--
Subtract general and administrative costs not reflected in gross operating margin		(44.9	)		(47.7	)		(94.2	)		(100.9	)
Operating income		800.3			884.3			1,696.3			1,917.0
Other expense, net		(251.6	)		(227.8	)		(490.2	)		(449.0	)
Income before income taxes	$	548.7		$	656.5		$	1,206.1		$	1,468.0

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		Crude Oil Pipelines & Services		Natural Gas Pipelines & Services		Petrochemical & Refined Products Services			Offshore Pipelines & Services		Adjustments and Eliminations			Consolidated Total
Revenues from third parties:
Three months ended June 30, 2015	$	2,263.8	$	3,087.0	$	681.4	$	1,018.5		$	34.5	$	--		$	7,085.2
Three months ended June 30, 2014		4,019.5		5,865.6		1,034.5		1,547.3			36.6		--			12,503.5
Six months ended June 30, 2015		4,938.6		5,764.0		1,412.3		2,367.6			69.1		--			14,551.6
Six months ended June 30, 2014		9,193.2		10,801.0		2,234.5		3,077.9			71.3		--			25,377.9
Revenues from related parties:
Three months ended June 30, 2015		2.3		1.4		3.3		--			0.3		--			7.3
Three months ended June 30, 2014		1.7		6.7		6.5		--			2.4		--			17.3
Six months ended June 30, 2015		3.8		2.4		6.3		--			0.9		--			13.4
Six months ended June 30, 2014		7.5		29.6		11.1		--			4.6		--			52.8
Intersegment and intrasegment revenues:
Three months ended June 30, 2015		2,781.0		1,539.7		169.5		322.9			0.1		(4,813.2	)		--
Three months ended June 30, 2014		3,324.9		5,634.3		295.4		428.4			1.3		(9,684.3	)		--
Six months ended June 30, 2015		5,224.1		2,816.8		339.5		608.5			0.5		(8,989.4	)		--
Six months ended June 30, 2014		7,185.9		8,185.0		604.8		865.4			3.6		(16,844.7	)		--
Total revenues:
Three months ended June 30, 2015		5,047.1		4,628.1		854.2		1,341.4			34.9		(4,813.2	)		7,092.5
Three months ended June 30, 2014		7,346.1		11,506.6		1,336.4		1,975.7			40.3		(9,684.3	)		12,520.8
Six months ended June 30, 2015		10,166.5		8,583.2		1,758.1		2,976.1			70.5		(8,989.4	)		14,565.0
Six months ended June 30, 2014		16,386.6		19,015.6		2,850.4		3,943.3			79.5		(16,844.7	)		25,430.7
Equity in income (loss) of unconsolidated affiliates:
Three months ended June 30, 2015		12.5		79.4		1.0		(3.7	)		21.0		--			110.2
Three months ended June 30, 2014		6.1		42.2		0.9		(6.5	)		7.6		--			50.3
Six months ended June 30, 2015		24.1		139.3		1.9		(7.1	)		41.2		--			199.4
Six months ended June 30, 2014		7.5		84.9		1.8		(6.1	)		18.7		--			106.8
Gross operating margin:
Three months ended June 30, 2015		650.6		235.6		191.4		181.3			44.3		--			1,303.2
Three months ended June 30, 2014		680.9		184.0		203.0		161.7			33.6		--			1,263.2
Six months ended June 30, 2015		1,345.8		449.6		395.9		355.9			90.4		--			2,637.6
Six months ended June 30, 2014		1,460.9		343.7		423.4		292.1			72.9		--			2,593.0
Property, plant and equipment, net: (see Note 7)
At June 30, 2015		11,919.2		2,484.3		8,741.0		3,057.9			--		3,581.4			29,783.8
At December 31, 2014		11,766.9		2,332.2		8,835.5		3,047.2			1,145.1		2,754.7			29,881.6
Investments in unconsolidated affiliates: (see Note 8)
At June 30, 2015		683.5		1,818.3		31.1		74.3			--		--			2,607.2
At December 31, 2014		682.3		1,767.7		23.2		75.1			493.7		--			3,042.0
Intangible assets, net: (see Note 9)
At June 30, 2015		246.6		1,334.9		953.1		198.9			--		--			2,733.5
At December 31, 2014		689.2		2,223.6		972.9		374.8			41.6		--			4,302.1
Goodwill: (see Note 9)
At June 30, 2015		2,640.5		1,765.0		296.3		963.0			--		--			5,664.8
At December 31, 2014		2,207.9		914.3		296.3		792.2			82.0		--			4,292.7
Segment assets:
At June 30, 2015		15,489.8		7,402.5		10,021.5		4,294.1			--		3,581.4			40,789.3
At December 31, 2014		15,346.3		7,237.8		10,127.9		4,289.3			1,762.4		2,754.7			41,518.4

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,
	2015		2014			2015		2014
NGL Pipelines & Services:
Sales of NGLs and related products	$	1,849.1	$	3,630.6		$	4,091.3	$	8,426.4
Midstream services		417.0		390.6			851.1		774.3
Total		2,266.1		4,021.2			4,942.4		9,200.7
Crude Oil Pipelines & Services:
Sales of crude oil		2,971.3		5,781.9			5,542.0		10,655.3
Midstream services		117.1		90.4			224.4		175.3
Total		3,088.4		5,872.3			5,766.4		10,830.6
Natural Gas Pipelines & Services:
Sales of natural gas		429.9		787.0			906.2		1,740.2
Midstream services		254.8		254.0			512.4		505.4
Total		684.7		1,041.0			1,418.6		2,245.6
Petrochemical & Refined Products Services:
Sales of petrochemicals and refined products		832.7		1,376.6			1,983.7		2,732.8
Midstream services		185.8		170.7			383.9		345.1
Total		1,018.5		1,547.3			2,367.6		3,077.9
Offshore Pipelines & Services:
Sales of natural gas		--		--			--		0.2
Sales of crude oil		1.7		2.9			2.8		5.0
Midstream services		33.1		36.1			67.2		70.7
Total		34.8		39.0			70.0		75.9
Total consolidated revenues	$	7,092.5	$	12,520.8		$	14,565.0	$	25,430.7

Consolidated costs and expenses
Operating costs and expenses:
Cost of sales	$	5,257.9	$	10,705.3		$	10,936.0	$	21,758.0
Other operating costs and expenses (1)		632.5		624.5			1,192.3		1,231.7
Depreciation, amortization and accretion		385.6		312.4			730.9		613.8
Net losses (gains) attributable to asset sales and insurance recoveries		2.5		(6.8	)		2.4		(96.4	)
Non-cash asset impairment charges		79.0		3.7			112.3		12.5
General and administrative costs		44.9		47.7			94.2		100.9
Total consolidated costs and expenses	$	6,402.4	$	11,686.8		$	13,068.1	$	23,620.5

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