XML 111 R27.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Operating Segments | 12 Months Ended
--- | ---
Dec. 31, 2013
Operating Segments |
Operating Segments | Note 18—Operating Segments We manage our operations through three operating segments: (i) Transportation, (ii) Facilities and (iii) Supply and Logistics. See “Revenue Recognition” in Note 2 for a summary of the types of products and services from which each segment derives its revenues. Our Chief Operating Decision Maker (our Chief Executive Officer) evaluates segment performance based on measures including segment profit and maintenance capital investment. We define segment profit as revenues and equity earnings in unconsolidated entities less (i) purchases and related costs, (ii) field operating costs and (iii) segment general and administrative expenses. Each of the items above excludes depreciation and amortization. As an MLP, we make quarterly distributions of our “available cash” (as defined in our partnership agreement) to our unitholders. We look at each period’s earnings before non-cash depreciation and amortization as an important measure of segment performance. The exclusion of depreciation and amortization expense could be viewed as limiting the usefulness of segment profit as a performance measure because it does not account in current periods for the implied reduction in value of our capital assets, such as crude oil pipelines and facilities, caused by age-related decline and wear and tear. We compensate for this limitation by recognizing that depreciation and amortization are largely offset by repair and maintenance investments, which acts to partially offset the aging and wear and tear in the value of our principal fixed assets. These maintenance investments are a component of field operating costs included in segment profit or in maintenance capital, depending on the nature of the cost. Maintenance capital, which is deducted in determining “available cash,” consists of capital expenditures for the replacement of partially or fully depreciated assets in order to maintain the operating and/or earnings capacity of our existing assets. Capital expenditures made to expand the existing operating and/or earnings capacity of our assets are considered expansion capital expenditures, not maintenance capital. Repair and maintenance expenditures incurred in order to maintain the day to day operation of our existing assets are charged to expense as incurred. The following table reflects certain financial data for each segment for the periods indicated (in millions):
|  | Transportation |  | Facilities |  | Supply and Logistics |  | Total |
Twelve Months Ended December 31, 2013 |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |
External Customers |  | $ | 701 |  | $ | 856 |  | $ | 40,692 |  | $ | 42,249 |
Intersegment (1) |  | 797 |  | 521 |  | 4 |  | 1,322 |
Total revenues of reportable segments |  | $ | 1,498 |  | $ | 1,377 |  | $ | 40,696 |  | $ | 43,571 |
Equity earnings in unconsolidated entities |  | $ | 64 |  | $ | — |  | $ | — |  | $ | 64 |
Segment profit (2) (3) |  | $ | 729 |  | $ | 616 |  | $ | 822 |  | $ | 2,167 |
Capital expenditures |  | $ | 1,046 |  | $ | 549 |  | $ | 46 |  | $ | 1,641 |
Total assets |  | $ | 7,221 |  | $ | 6,555 |  | $ | 6,584 |  | $ | 20,360 |
Maintenance capital |  | $ | 123 |  | $ | 38 |  | $ | 15 |  | $ | 176 |
Twelve Months Ended December 31, 2012 |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |
External Customers |  | $ | 623 |  | $ | 736 |  | $ | 36,438 |  | $ | 37,797 |
Intersegment (1) |  | 793 |  | 362 |  | 2 |  | 1,157 |
Total revenues of reportable segments |  | $ | 1,416 |  | $ | 1,098 |  | $ | 36,440 |  | $ | 38,954 |
Equity earnings in unconsolidated entities |  | $ | 38 |  | $ | — |  | $ | — |  | $ | 38 |
Segment profit (2) (3) |  | $ | 710 |  | $ | 482 |  | $ | 753 |  | $ | 1,945 |
Capital expenditures |  | $ | 1,244 |  | $ | 1,724 |  | $ | 503 |  | $ | 3,471 |
Total assets |  | $ | 6,423 |  | $ | 6,134 |  | $ | 6,678 |  | $ | 19,235 |
Maintenance capital |  | $ | 108 |  | $ | 49 |  | $ | 13 |  | $ | 170 |
Twelve Months Ended December 31, 2011 |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |
External Customers |  | $ | 572 |  | $ | 638 |  | $ | 33,065 |  | $ | 34,275 |
Intersegment (1) |  | 593 |  | 158 |  | 3 |  | 754 |
Total revenues of reportable segments |  | $ | 1,165 |  | $ | 796 |  | $ | 33,068 |  | $ | 35,029 |
Equity earnings in unconsolidated entities |  | $ | 13 |  | $ | — |  | $ | — |  | $ | 13 |
Segment profit (2) (3) |  | $ | 555 |  | $ | 358 |  | $ | 647 |  | $ | 1,560 |
Capital expenditures |  | $ | 600 |  | $ | 1,317 |  | $ | 18 |  | $ | 1,935 |
Total assets |  | $ | 5,156 |  | $ | 4,506 |  | $ | 5,719 |  | $ | 15,381 |
Maintenance capital |  | $ | 86 |  | $ | 22 |  | $ | 12 |  | $ | 120 |
(1) Segment revenues and purchases and related costs include intersegment amounts. Intersegment sales are conducted at posted tariff rates, rates similar to those charged to third parties or rates that we believe approximate market. (2) Supply and Logistics segment profit includes interest expense (related to hedged inventory purchases) of approximately $30 million, $12 million and $20 million for the years ended December 31, 2013, 2012 and 2011, respectively. (3) The following table reconciles segment profit to net income attributable to PAA (in millions):
|  | Year Ended December 31, |
|  | 2013 |  | 2012 |  | 2011 |
Segment profit |  | $ | 2,167 |  | $ | 1,945 |  | $ | 1,560 |
Depreciation and amortization |  | (375 | ) | (482 | ) | (249 | )
Interest expense |  | (303 | ) | (288 | ) | (253 | )
Other income/(expense), net |  | 1 |  | 6 |  | (19 | )
Income tax expense |  | (99 | ) | (54 | ) | (45 | )
Net income |  | 1,391 |  | 1,127 |  | 994 |
Net income attributable to noncontrolling interests |  | (30 | ) | (33 | ) | (28 | )
Net income attributable to PAA |  | $ | 1,361 |  | $ | 1,094 |  | $ | 966 |
Geographic Data We have operations in the United States and Canada. Set forth below are revenues and long-lived assets attributable to these geographic areas (in millions):
|  | Year Ended December 31, |
Revenues (1) |  | 2013 |  | 2012 |  | 2011 |
United States |  | $ | 32,924 |  | $ | 29,978 |  | $ | 28,181 |
Canada |  | 9,325 |  | 7,819 |  | 6,094 |
|  | $ | 42,249 |  | $ | 37,797 |  | $ | 34,275 |
(1) Revenues are primarily attributed to each region based on where the services are provided or the product is shipped.
|  | December 31, |
Long-Lived Assets (1) |  | 2013 |  | 2012 |
United States |  | $ | 11,743 |  | $ | 10,401 |
Canada |  | 3,623 |  | 3,677 |
|  | $ | 15,366 |  | $ | 14,078 |
(1) Excludes long-term derivative assets.

X
- Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration