Segment Information

The Partnership’s chief operating decision maker is the chief executive officer (“CEO”) of its general partner. The CEO reviews the Partnership’s discrete financial information, makes operating decisions, assesses financial performance and allocates resources on a type of service basis. The Partnership has two reportable segments: L&S and G&P. Each of these segments are organized and managed based upon the nature of the products and services it offers.


•	L&S – transports, stores and distributes crude oil and refined petroleum products. Segment information for prior periods includes HST, WHC and MPLXT as they are entities under common control. Segment information for periods prior to the Ozark pipeline acquisition does not include amounts for these operations. See Note 3 for more detail of these acquisitions.


•	G&P – gathers, processes and transports natural gas; gathers, transports, fractionates, stores and markets NGLs.

The Partnership has investments in entities that are accounted for using the equity method of accounting (see Note 4). However, the CEO views the Partnership-operated equity method investments’ financial information as if those investments were consolidated.

Segment operating income represents income from operations attributable to the reportable segments. Corporate general and administrative expenses, unrealized derivative gains (losses), goodwill impairment, certain management fees and depreciation and amortization are not allocated to the reportable segments. Management does not consider these items allocable to or controllable by any individual segment and, therefore, excludes these items when evaluating segment performance. Segment results are also adjusted to exclude the portion of income from operations attributable to the noncontrolling interests related to partially-owned entities that are either consolidated or accounted for as equity method investments. Segment operating income attributable to MPLX LP excludes the operating income related to Predecessors of the HSM, HST, WHC and MPLXT businesses prior to the dates they were acquired by MPLX LP.

The tables below present information about income from operations and capital expenditures for the reported segments:



	Three Months Ended June 30, 2017
(In millions)	L&S		G&P		Total
Revenues and other income:
Segment revenues	$	372	$	603	$	975
Segment other income	12		—		12
Total segment revenues and other income	384		603		987
Costs and expenses:
Segment cost of revenues	176		252		428
Segment operating income before portion attributable to noncontrolling interests and Predecessor	208		351		559
Segment portion attributable to noncontrolling interests and Predecessor	—		38		38
Segment operating income attributable to MPLX LP	$	208	$	313	$	521



	Three Months Ended June 30, 2016
(In millions)	L&S		G&P		Total
Revenues and other income:
Segment revenues	$	331	$	530	$	861
Segment other income	14		—		14
Total segment revenues and other income	345		530		875
Costs and expenses:
Segment cost of revenues	142		223		365
Segment operating income before portion attributable to noncontrolling interests and Predecessor	203		307		510
Segment portion attributable to noncontrolling interests and Predecessor	80		36		116
Segment operating income attributable to MPLX LP	$	123	$	271	$	394



	Six Months Ended June 30, 2017
(In millions)	L&S		G&P		Total
Revenues and other income:
Segment revenues	$	717	$	1,200	$	1,917
Segment other income	24		1		25
Total segment revenues and other income	741		1,201		1,942
Costs and expenses:
Segment cost of revenues	324		505		829
Segment operating income before portion attributable to noncontrolling interests and Predecessor	417		696		1,113
Segment portion attributable to noncontrolling interests and Predecessor	53		74		127
Segment operating income attributable to MPLX LP	$	364	$	622	$	986



	Six Months Ended June 30, 2016
(In millions)	L&S		G&P		Total
Revenues and other income:
Segment revenues	$	562	$	1,028	$	1,590
Segment other income	30		—		30
Total segment revenues and other income	592		1,028		1,620
Costs and expenses:
Segment cost of revenues	239		423		662
Segment operating income before portion attributable to noncontrolling interests and Predecessor	353		605		958
Segment portion attributable to noncontrolling interests and Predecessor	142		77		219
Segment operating income attributable to MPLX LP	$	211	$	528	$	739



	Three Months Ended June 30,						Six Months Ended June 30,
(In millions)	2017			2016			2017			2016
Reconciliation to Income from operations:
L&S segment operating income attributable to MPLX LP	$	208		$	123		$	364		$	211
G&P segment operating income attributable to MPLX LP	313			271			622			528
Segment operating income attributable to MPLX LP	521			394			986			739
Segment portion attributable to unconsolidated affiliates	(38		)	(47		)	(78		)	(89		)
Segment portion attributable to Predecessor	—			80			53			142
Income (loss) from equity method investments	1			(83		)	6			(78		)
Other income - related parties	14			11			25			18
Unrealized derivative gains (losses)⁽¹⁾	3			(12		)	19			(21		)
Depreciation and amortization	(164		)	(151		)	(351		)	(287		)
Impairment expense	—			(1		)	—			(130		)
General and administrative expenses	(57		)	(63		)	(115		)	(116		)
Income from operations	$	280		$	128		$	545		$	178



	Three Months Ended June 30,						Six Months Ended June 30,
(In millions)	2017			2016			2017			2016
Reconciliation to Total revenues and other income:
Total segment revenues and other income	$	987		$	875		$	1,942		$	1,620
Revenue adjustment from unconsolidated affiliates	(88		)	(99		)	(180		)	(203		)
Income (loss) from equity method investments	1			(83		)	6			(78		)
Other income - related parties	14			11			25			18
Unrealized derivative gains (losses) related to product sales⁽¹⁾	2			(6		)	9			(14		)
Total revenues and other income	$	916		$	698		$	1,802		$	1,343

(1)

The Partnership makes a distinction between realized or unrealized gains and losses on derivatives. During the period when a derivative contract is outstanding, changes in the fair value of the derivative are recorded as an unrealized gain or loss. When a derivative contract matures or is settled, the previously recorded unrealized gain or loss is reversed and the realized gain or loss of the contract is recorded.



	Three Months Ended June 30,						Six Months Ended June 30,
(In millions)	2017			2016			2017			2016
Reconciliation to Net income attributable to noncontrolling interests and Predecessor:
Segment portion attributable to noncontrolling interests and Predecessor	$	38		$	116		$	127		$	219
Portion of noncontrolling interests and Predecessor related to items below segment income from operations	(27		)	(84		)	(63		)	(118		)
Portion of operating (income) loss attributable to noncontrolling interests of unconsolidated affiliates	(10		)	21			(26		)	(2		)
Net income attributable to noncontrolling interests and Predecessor	$	1		$	53		$	38		$	99

The following table reconciles segment capital expenditures to total capital expenditures:



	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2017		2016		2017		2016
L&S segment capital expenditures	$	136	$	106	$	233	$	181
G&P segment capital expenditures	317		212		624		485
Total segment capital expenditures	453		318		857		666
Less: Capital expenditures for Partnership-operated, non-wholly-owned subsidiaries in G&P segment	81		16		205		60
Total capital expenditures	$	372	$	302	$	652	$	606

Total assets by reportable segment were:



(In millions)	June 30, 2017		December 31, 2016
Cash and cash equivalents	$	293	$	234
L&S	3,819		2,978
G&P	14,489		14,297
Total assets	$	18,601	$	17,509