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Operating Segments (Tables)
 6 Months Ended
Jun. 30, 2014
Operating Segments  
Segment financial data

The following table reflects certain financial data for each segment for the periods indicated (in millions):

 

 

 

Transportation

 

Facilities

 

Supply and Logistics

 

Total

 

Three Months Ended June 30, 2014

 

 

 

 

 

 

 

 

 

Revenues (1):

 

 

 

 

 

 

 

 

 

External Customers

 

$

195

 

$

144

 

$

10,856

 

$

11,195

 

Intersegment (2)

 

217

 

133

 

4

 

354

 

Total revenues of reportable segments

 

$

412

 

$

277

 

$

10,860

 

$

11,549

 

Equity earnings in unconsolidated entities

 

$

23

 

$

—

 

$

—

 

$

23

 

Segment profit (3) (4)

 

$

221

 

$

134

 

$

133

 

$

488

 

Maintenance capital

 

$

42

 

$

5

 

$

1

 

$

48

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2013

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

External Customers

 

$

165

 

$

197

 

$

9,933

 

$

10,295

 

Intersegment (2)

 

200

 

151

 

1

 

352

 

Total revenues of reportable segments

 

$

365

 

$

348

 

$

9,934

 

$

10,647

 

Equity earnings in unconsolidated entities

 

$

11

 

$

—

 

$

—

 

$

11

 

Segment profit (3) (4)

 

$

160

 

$

149

 

$

176

 

$

485

 

Maintenance capital

 

$

23

 

$

11

 

$

5

 

$

39

 

 

 

 

Transportation

 

Facilities

 

Supply and Logistics

 

Total

 

Six Months Ended June 30, 2014

 

 

 

 

 

 

 

 

 

Revenues (1):

 

 

 

 

 

 

 

 

 

External Customers

 

$

376

 

$

301

 

$

22,201

 

$

22,878

 

Intersegment (2)

 

422

 

275

 

27

 

724

 

Total revenues of reportable segments

 

$

798

 

$

576

 

$

22,228

 

$

23,602

 

Equity earnings in unconsolidated entities

 

$

44

 

$

—

 

$

—

 

$

44

 

Segment profit (3) (4)

 

$

427

 

$

288

 

$

382

 

$

1,097

 

Maintenance capital

 

$

76

 

$

15

 

$

4

 

$

95

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2013

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

External Customers

 

$

338

 

$

420

 

$

20,157

 

$

20,915

 

Intersegment (2)

 

394

 

283

 

1

 

678

 

Total revenues of reportable segments

 

$

732

 

$

703

 

$

20,158

 

$

21,593

 

Equity earnings in unconsolidated entities

 

$

23

 

$

—

 

$

—

 

$

23

 

Segment profit (3) (4)

 

$

323

 

$

300

 

$

610

 

$

1,233

 

Maintenance capital

 

$

55

 

$

18

 

$

9

 

$

82

 

 

 

(1)                   Effective January 1, 2014, our natural gas sales and costs, primarily attributable to the activities performed by our natural gas storage commercial optimization group, are reported in the Supply and Logistics segment. Such items were previously reported in the Facilities segment.

 

(2)                   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. For further discussion, see “Analysis of Operating Segments” under Item 7 of our 2013 Annual Report on Form 10-K.

 

(3)                   Supply and Logistics segment profit includes interest expense (related to hedged inventory purchases) of approximately $5 million for each of the three months ended June 30, 2014 and 2013 and approximately $7 million and $10 million for the six months ended June 30, 2014 and 2013, respectively.

 

(4)                   The following table reconciles segment profit to net income attributable to PAA (in millions):

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

Segment profit

 

$

488

 

$

485

 

$

1,097

 

$

1,233

 

Depreciation and amortization

 

(100

)

(91

)

(196

)

(173

)

Interest expense, net

 

(82

)

(75

)

(161

)

(152

)

Other income/(expense), net

 

4

 

(1

)

2

 

(1

)

Income before tax

 

310

 

318

 

742

 

907

 

Income tax expense

 

(22

)

(18

)

(70

)

(70

)

Net income

 

288

 

300

 

672

 

837

 

Net income attributable to noncontrolling interests

 

(1

)

(8

)

(1

)

(16

)

Net income attributable to PAA

 

$

287

 

$

292

 

$

671

 

$

821

 

 
Reconciliation of segment profit to net income attributable to PAA

The following table reconciles segment profit to net income attributable to PAA (in millions):

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

Segment profit

 

$

488

 

$

485

 

$

1,097

 

$

1,233

 

Depreciation and amortization

 

(100

)

(91

)

(196

)

(173

)

Interest expense, net

 

(82

)

(75

)

(161

)

(152

)

Other income/(expense), net

 

4

 

(1

)

2

 

(1

)

Income before tax

 

310

 

318

 

742

 

907

 

Income tax expense

 

(22

)

(18

)

(70

)

(70

)

Net income

 

288

 

300

 

672

 

837

 

Net income attributable to noncontrolling interests

 

(1

)

(8

)

(1

)

(16

)

Net income attributable to PAA

 

$

287

 

$

292

 

$

671

 

$

821