Business Segments (Tables)

3 Months Ended

Mar. 31, 2017

Measurement of Total Segment Gross Operating Margin

The following table presents our measurement of total segment gross operating margin for the periods presented. The GAAP financial measure most directly comparable to total segment gross operating margin is operating income.

	For the Three Months Ended March 31,
	2017			2016
Income before income taxes	$	777.0		$	678.6
Add total other expense, net		254.6			237.0
Operating income		1,031.6			915.6
Adjustments to reconcile operating income to total gross operating margin:
Add depreciation, amortization and accretion expense in operating costs and expenses		376.2			358.2
Add asset impairment and related charges in operating costs and expenses		11.2			1.7
Add net losses and subtract net gains attributable to asset sales in operating costs and expenses		(0.3	)		4.9
Add general and administrative costs		50.4			43.9
Adjustments for make-up rights on certain new pipeline projects:
Add non-refundable payments received from shippers attributable to make-up rights (1)		13.3			7.1
Subtract the subsequent recognition of revenues attributable to make-up rights (2)		(9.1	)		(12.9	)
Total segment gross operating margin	$	1,473.3		$	1,318.5

(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,
	2017		2016
Gross operating margin by segment:
NGL Pipelines & Services	$	856.0	$	783.7
Crude Oil Pipelines & Services		264.6		202.3
Natural Gas Pipelines & Services		170.9		177.7
Petrochemical & Refined Products Services		181.8		154.8
Total segment gross operating margin	$	1,473.3	$	1,318.5

Reconciliation of Total Segment Gross Operating Margin to Operating Income and Income Before Provision for Income Taxes

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, 2017	$	3,343.0	$	1,802.6	$	757.8	$	1,406.2		$	--		$	7,309.6
Three months ended March 31, 2016		2,402.0		1,277.5		547.3		762.9			--			4,989.7
Revenues from related parties:
Three months ended March 31, 2017		2.8		4.6		3.4		--			--			10.8
Three months ended March 31, 2016		1.8		11.1		2.7		--			--			15.6
Intersegment and intrasegment revenues:
Three months ended March 31, 2017		8,874.8		3,474.0		194.5		414.7			(12,958.0	)		--
Three months ended March 31, 2016		3,174.8		1,499.4		124.7		242.7			(5,041.6	)		--
Total revenues:
Three months ended March 31, 2017		12,220.6		5,281.2		955.7		1,820.9			(12,958.0	)		7,320.4
Three months ended March 31, 2016		5,578.6		2,788.0		674.7		1,005.6			(5,041.6	)		5,005.3
Equity in income (loss) of unconsolidated affiliates:
Three months ended March 31, 2017		15.5		81.2		1.0		(2.9	)		--			94.8
Three months ended March 31, 2016		15.1		90.1		1.0		(5.1	)		--			101.1

Information by Business Segments

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, 2017	$	14,003.1	$	4,346.9	$	8,355.6	$	3,284.7	$	3,565.8	$	33,556.1
At December 31, 2016		14,091.5		4,216.1		8,403.0		3,261.2		3,320.7		33,292.5
Investments in unconsolidated affiliates: (see Note 5)
At March 31, 2017		758.1		1,828.0		21.5		63.8		--		2,671.4
At December 31, 2016		750.4		1,824.6		21.7		80.6		--		2,677.3
Intangible assets, net: (see Note 6)
At March 31, 2017		342.9		2,255.9		1,046.3		178.0		--		3,823.1
At December 31, 2016		350.2		2,279.0		1,054.5		180.4		--		3,864.1
Goodwill: (see Note 6)
At March 31, 2017		2,651.7		1,841.0		296.3		956.2		--		5,745.2
At December 31, 2016		2,651.7		1,841.0		296.3		956.2		--		5,745.2
Segment assets:
At March 31, 2017		17,755.8		10,271.8		9,719.7		4,482.7		3,565.8		45,795.8
At December 31, 2016		17,843.8		10,160.7		9,775.5		4,478.4		3,320.7		45,579.1

Consolidated Revenues and Expenses

Other Revenue and Expense Information

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

	For the Three Months Ended March 31,
	2017			2016
NGL Pipelines & Services:
Sales of NGLs and related products	$	2,887.2		$	1,943.5
Midstream services		458.6			460.3
Total		3,345.8			2,403.8
Crude Oil Pipelines & Services:
Sales of crude oil		1,618.6			1,121.1
Midstream services		188.6			167.5
Total		1,807.2			1,288.6
Natural Gas Pipelines & Services:
Sales of natural gas		544.0			315.0
Midstream services		217.2			235.0
Total		761.2			550.0
Petrochemical & Refined Products Services:
Sales of petrochemicals and refined products		1,211.1			553.2
Midstream services		195.1			209.7
Total		1,406.2			762.9
Total consolidated revenues	$	7,320.4		$	5,005.3

Consolidated costs and expenses
Operating costs and expenses:
Cost of sales	$	5,335.7		$	3,208.3
Other operating costs and expenses (1)		610.4			573.8
Depreciation, amortization and accretion		376.2			358.2
Impairment and related charges		11.2			1.7
Net losses (gains) attributable to asset sales		(0.3	)		4.9
General and administrative costs		50.4			43.9
Total consolidated costs and expenses	$	6,383.6		$	4,190.8

(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.