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Business Segments (Tables)

12 Months Ended

Dec. 31, 2019

Measurement of Total Segment Gross Operating Margin

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

	For the Year Ended December 31,
	2019			2018			2017
Operating income	$	6,078.7		$	5,408.6		$	3,928.9
Adjustments to reconcile operating income to total gross operating margin (addition or subtraction indicated by sign):
Depreciation, amortization and accretion expense in operating costs and expenses		1,848.3			1,687.0			1,531.3
Asset impairment and related charges in operating costs and expenses		132.7			50.5			49.8
Net gains attributable to asset sales in operating costs and expenses		(5.7	)		(28.7	)		(10.7	)
General and administrative costs		211.7			208.3			181.1
Non-refundable payments received from shippers attributable to make-up rights (1)		47.0			21.5			24.1
Subsequent recognition of revenues attributable to make-up rights (2)		(22.9	)		(56.2	)		(29.9	)
Total segment gross operating margin	$	8,289.8		$	7,291.0		$	5,674.6

(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.

Information by Business Segments

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 years indicated:

	For the Year Ended December 31,
	2019		2018		2017
Gross operating margin by segment:
NGL Pipelines & Services	$	4,069.8	$	3,830.7	$	3,258.3
Crude Oil Pipelines & Services		2,087.8		1,511.3		987.2
Natural Gas Pipelines & Services		1,062.6		891.2		714.5
Petrochemical & Refined Products Services		1,069.6		1,057.8		714.6
Total segment gross operating margin	$	8,289.8	$	7,291.0	$	5,674.6

Information by business segment, together with reconciliations to amounts presented on our 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:
Year ended December 31, 2019	$	13,460.8	$	10,244.6	$	3,154.7	$	5,861.8		$	–		$	32,721.9
Year ended December 31, 2018		15,630.5		10,968.2		3,439.5		6,388.3			–			36,426.5
Year ended December 31, 2017		12,455.7		8,137.2		3,132.5		5,471.1			–			29,196.5
Revenues from related parties:
Year ended December 31, 2019		9.9		42.7		14.7		–			–			67.3
Year ended December 31, 2018		18.4		74.4		14.9		–			–			107.7
Year ended December 31, 2017		12.3		19.6		13.1		–			–			45.0
Intersegment and intrasegment revenues:
Year ended December 31, 2019		20,840.4		34,613.0		624.7		2,481.3			(58,559.4	)		–
Year ended December 31, 2018		26,453.6		35,490.4		721.9		2,917.5			(65,583.4	)		–
Year ended December 31, 2017		27,278.6		15,943.0		850.8		1,766.9			(45,839.3	)		–
Total revenues:
Year ended December 31, 2019		34,311.1		44,900.3		3,794.1		8,343.1			(58,559.4	)		32,789.2
Year ended December 31, 2018		42,102.5		46,533.0		4,176.3		9,305.8			(65,583.4	)		36,534.2
Year ended December 31, 2017		39,746.6		24,099.8		3,996.4		7,238.0			(45,839.3	)		29,241.5
Equity in income (loss) of unconsolidated affiliates:
Year ended December 31, 2019		114.5		449.2		6.3		(7.0	)		–			563.0
Year ended December 31, 2018		117.0		365.4		6.8		(9.2	)		–			480.0
Year ended December 31, 2017		73.4		358.4		3.8		(9.6	)		–			426.0

Information by business segment, together with reconciliations to our 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 December 31, 2019	$	16,652.1	$	6,324.4	$	8,432.5	$	7,553.2	$	2,641.2	$	41,603.4
At December 31, 2018		14,845.4		5,847.7		8,303.8		6,213.9		3,526.8		38,737.6
At December 31, 2017		13,831.2		5,208.4		8,375.0		3,507.7		4,698.1		35,620.4
Investments in unconsolidated affiliates: (see Note 5)
At December 31, 2019		703.8		1,866.5		27.3		2.6		–		2,600.2
At December 31, 2018		662.0		1,867.5		22.8		62.8		–		2,615.1
At December 31, 2017		733.9		1,839.2		20.8		65.5		–		2,659.4
Intangible assets, net: (see Note 6)
At December 31, 2019		360.2		2,001.9		941.2		145.7		–		3,449.0
At December 31, 2018		380.1		2,094.6		979.3		154.4		–		3,608.4
At December 31, 2017		322.3		2,186.5		1,018.4		163.1		–		3,690.3
Goodwill: (see Note 6)
At December 31, 2019		2,651.7		1,841.0		296.3		956.2		–		5,745.2
At December 31, 2018		2,651.7		1,841.0		296.3		956.2		–		5,745.2
At December 31, 2017		2,651.7		1,841.0		296.3		956.2		–		5,745.2
Segment assets:
At December 31, 2019		20,367.8		12,033.8		9,697.3		8,657.7		2,641.2		53,397.8
At December 31, 2018		18,539.2		11,650.8		9,602.2		7,387.3		3,526.8		50,706.3
At December 31, 2017		17,539.1		11,075.1		9,710.5		4,692.5		4,698.1		47,715.3

Consolidated Revenues and Expenses

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

	For the Year Ended December 31,
	2019			2018			2017
Consolidated revenues:
NGL Pipelines & Services	$	13,470.7		$	15,648.9		$	12,468.0
Crude Oil Pipelines & Services		10,287.3			11,042.6			8,156.8
Natural Gas Pipelines & Services		3,169.4			3,454.4			3,145.6
Petrochemical & Refined Products Services		5,861.8			6,388.3			5,471.1
Total consolidated revenues	$	32,789.2		$	36,534.2		$	29,241.5

Consolidated costs and expenses:
Operating costs and expenses:
Cost of sales	$	22,065.8		$	26,789.8		$	21,487.0
Other operating costs and expenses (1)		3,020.7			2,898.7			2,500.1
Depreciation, amortization and accretion		1,848.3			1,687.0			1,531.3
Asset impairment and related charges		132.7			50.5			49.8
Net gains attributable to asset sales		(5.7	)		(28.7	)		(10.7	)
General and administrative costs		211.7			208.3			181.1
Total consolidated costs and expenses	$	27,273.5		$	31,605.6		$	25,738.6

(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 and insurance recoveries.