Business Segments (Tables)

6 Months Ended

Jun. 30, 2016

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,
	2016			2015			2016			2015
Revenues	$	5,617.8		$	7,092.5		$	10,623.1		$	14,565.0
Subtract operating costs and expenses		(4,822.2	)		(6,357.5	)		(8,969.1	)		(12,973.9	)
Add equity in income of unconsolidated affiliates		76.4			110.2			177.5			199.4
Add depreciation, amortization and accretion expense amounts not reflected in gross operating margin		360.3			385.6			718.5			730.9
Add asset impairment charges not reflected in gross operating margin		13.1			79.0			14.8			112.3
Add net losses or subtract net gains attributable to asset sales, insurance recoveries and related property damage not reflected in gross operating margin		8.8			2.5			13.7			2.4
Add non-refundable payments attributable to shipper make-up rights on new pipeline projects reflected in gross operating margin		1.8			5.2			8.9			35.9
Subtract subsequent revenue recognition of deferred revenues attributable to make-up rights not reflected in gross operating margin		(6.6	)		(14.3	)		(19.5	)		(34.4	)
Total segment gross operating margin	$	1,249.4		$	1,303.2		$	2,567.9		$	2,637.6

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 GAAP 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,
	2016			2015			2016			2015
Total segment gross operating margin	$	1,249.4		$	1,303.2		$	2,567.9		$	2,637.6
Adjustments to reconcile total segment gross operating margin to operating income:
Subtract depreciation, amortization and accretion expense amounts not reflected in gross operating margin		(360.3	)		(385.6	)		(718.5	)		(730.9	)
Subtract asset impairment charges not reflected in gross operating margin		(13.1	)		(79.0	)		(14.8	)		(112.3	)
Add net gains or subtract net losses attributable to asset sales, insurance recoveries and related property damage not reflected in gross operating margin		(8.8	)		(2.5	)		(13.7	)		(2.4	)
Subtract non-refundable payments attributable to shipper make-up rights on new pipeline projects reflected in gross operating margin		(1.8	)		(5.2	)		(8.9	)		(35.9	)
Add subsequent revenue recognition of deferred revenues attributable to make-up rights not reflected in gross operating margin		6.6			14.3			19.5			34.4
Subtract general and administrative costs not reflected in gross operating margin		(35.1	)		(44.9	)		(79.0	)		(94.2	)
Operating income		836.9			800.3			1,752.5			1,696.3
Other expense, net		(267.0	)		(251.6	)		(504.0	)		(490.2	)
Income before income taxes	$	569.9		$	548.7		$	1,248.5		$	1,206.1

Information by Business Segments

Information by business segment, together with reconciliations to our consolidated financial statement totals, is presented in the following table:

	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, 2016	$	2,512.7	$	1,651.4	$	533.9	$	906.6		$	--	$	--		$	5,604.6
Three months ended June 30, 2015		2,263.8		3,087.0		681.4		1,018.5			34.5		--			7,085.2
Six months ended June 30, 2016		4,914.7		2,928.9		1,081.2		1,669.5			--		--			10,594.3
Six months ended June 30, 2015		4,938.6		5,764.0		1,412.3		2,367.6			69.1		--			14,551.6
Revenues from related parties:
Three months ended June 30, 2016		2.8		8.6		1.8		--			--		--			13.2
Three months ended June 30, 2015		2.3		1.4		3.3		--			0.3		--			7.3
Six months ended June 30, 2016		4.6		19.7		4.5		--			--		--			28.8
Six months ended June 30, 2015		3.8		2.4		6.3		--			0.9		--			13.4
Intersegment and intrasegment revenues:
Three months ended June 30, 2016		4,880.8		2,445.7		146.9		307.7			--		(7,781.1	)		--
Three months ended June 30, 2015		2,781.0		1,539.7		169.5		322.9			0.1		(4,813.2	)		--
Six months ended June 30, 2016		8,055.6		3,945.1		271.6		550.4			--		(12,822.7	)		--
Six months ended June 30, 2015		5,224.1		2,816.8		339.5		608.5			0.5		(8,989.4	)		--
Total revenues:
Three months ended June 30, 2016		7,396.3		4,105.7		682.6		1,214.3			--		(7,781.1	)		5,617.8
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
Six months ended June 30, 2016		12,974.9		6,893.7		1,357.3		2,219.9			--		(12,822.7	)		10,623.1
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
Equity in income (loss) of unconsolidated affiliates:
Three months ended June 30, 2016		14.0		65.8		0.9		(4.3	)		--		--			76.4
Three months ended June 30, 2015		12.5		79.4		1.0		(3.7	)		21.0		--			110.2
Six months ended June 30, 2016		29.1		155.9		1.9		(9.4	)		--		--			177.5
Six months ended June 30, 2015		24.1		139.3		1.9		(7.1	)		41.2		--			199.4
Gross operating margin:
Three months ended June 30, 2016		719.1		177.4		177.4		175.5			--		--			1,249.4
Three months ended June 30, 2015		650.6		235.6		191.4		181.3			44.3		--			1,303.2
Six months ended June 30, 2016		1,502.8		379.7		355.1		330.3			--		--			2,567.9
Six months ended June 30, 2015		1,345.8		449.6		395.9		355.9			90.4		--			2,637.6
Property, plant and equipment, net: (see Note 4)
At June 30, 2016		13,297.2		4,060.1		8,500.0		3,265.2			--		3,889.0			33,011.5
At December 31, 2015		12,909.7		3,550.3		8,620.0		3,060.7			--		3,894.0			32,034.7
Investments in unconsolidated affiliates: (see Note 5)
At June 30, 2016		745.7		1,827.2		22.0		74.5			--		--			2,669.4
At December 31, 2015		718.7		1,813.4		22.5		73.9			--		--			2,628.5
Intangible assets, net: (see Note 6)
At June 30, 2016		365.3		2,325.0		1,070.8		187.2			--		--			3,948.3
At December 31, 2015		380.3		2,377.5		1,087.7		191.7			--		--			4,037.2
Goodwill: (see Note 6)
At June 30, 2016		2,651.7		1,841.0		296.3		956.2			--		--			5,745.2
At December 31, 2015		2,651.7		1,841.0		296.3		956.2			--		--			5,745.2
Segment assets:
At June 30, 2016		17,059.9		10,053.3		9,889.1		4,483.1			--		3,889.0			45,374.4
At December 31, 2015		16,660.4		9,582.2		10,026.5		4,282.5			--		3,894.0			44,445.6

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,
	2016		2015		2016		2015
NGL Pipelines & Services:
Sales of NGLs and related products	$	2,060.4	$	1,849.1	$	4,003.9	$	4,091.3
Midstream services		455.1		417.0		915.4		851.1
Total		2,515.5		2,266.1		4,919.3		4,942.4
Crude Oil Pipelines & Services:
Sales of crude oil		1,482.2		2,971.3		2,603.3		5,542.0
Midstream services		177.8		117.1		345.3		224.4
Total		1,660.0		3,088.4		2,948.6		5,766.4
Natural Gas Pipelines & Services:
Sales of natural gas		305.7		429.9		620.7		906.2
Midstream services		230.0		254.8		465.0		512.4
Total		535.7		684.7		1,085.7		1,418.6
Petrochemical & Refined Products Services:
Sales of petrochemicals and refined products		713.4		832.7		1,266.6		1,983.7
Midstream services		193.2		185.8		402.9		383.9
Total		906.6		1,018.5		1,669.5		2,367.6
Offshore Pipelines & Services:
Sales of crude oil		--		1.7		--		2.8
Midstream services		--		33.1		--		67.2
Total		--		34.8		--		70.0
Total consolidated revenues	$	5,617.8	$	7,092.5	$	10,623.1	$	14,565.0

Consolidated costs and expenses
Operating costs and expenses:
Cost of sales	$	3,838.7	$	5,257.9	$	7,047.0	$	10,936.0
Other operating costs and expenses (1)		601.3		632.5		1,175.1		1,192.3
Depreciation, amortization and accretion		360.3		385.6		718.5		730.9
Asset impairment charges		13.1		79.0		14.8		112.3
Loss due to Pascagoula fire		7.1		--		7.1		--
Net losses attributable to asset sales		1.7		2.5		6.6		2.4
General and administrative costs		35.1		44.9		79.0		94.2
Total consolidated costs and expenses	$	4,857.3	$	6,402.4	$	9,048.1	$	13,068.1

(1)Represents the cost of operating our plants, pipelines and other fixed assets excluding: depreciation, amortization and accretion charges; asset impairment charges; losses due to property damage events (e.g., the fire at our Pascagoula facility (see Note 4)); and net losses (or gains) attributable to asset sales.