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Operating Segments
 9 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
Operating Segments
Operating Segments
 
We manage our operations through three operating segments: Transportation, Facilities and Supply and Logistics. 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 (a) purchases and related costs, (b) field operating costs and (c) segment general and administrative expenses. Each of the items above excludes depreciation and amortization. Maintenance capital 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.
 
The following table reflects certain financial data for each segment (in millions):
Three Months Ended September 30, 2016
 
Transportation
 
Facilities
 
Supply and
Logistics
 
Total
Revenues:
 
 

 
 

 
 

 
 

External customers
 
$
159

 
$
135

 
$
4,876

 
$
5,170

Intersegment (1)
 
242

 
147

 
3

 
392

Total revenues of reportable segments
 
$
401

 
$
282

 
$
4,879

 
$
5,562

Equity earnings in unconsolidated entities
 
$
46

 
$
—

 
$
—

 
$
46

Segment profit/(loss) (2) (3) 
 
$
261

 
$
173

 
$
(6
)
 
$
428

Maintenance capital
 
$
29

 
$
15

 
$
3

 
$
47

 
Three Months Ended September 30, 2015
 
Transportation
 
Facilities
 
Supply and
Logistics
 
Total
Revenues:
 
 

 
 

 
 

 
 

External customers
 
$
172

 
$
132

 
$
5,247

 
$
5,551

Intersegment (1)
 
229

 
131

 
7

 
367

Total revenues of reportable segments
 
$
401

 
$
263

 
$
5,254

 
$
5,918

Equity earnings in unconsolidated entities
 
$
45

 
$
—

 
$
—

 
$
45

Segment profit (2) (3) 
 
$
254

 
$
146

 
$
87

 
$
487

Maintenance capital
 
$
34

 
$
16

 
$
2

 
$
52

 
Nine Months Ended September 30, 2016
 
Transportation
 
Facilities
 
Supply and
Logistics
 
Total
Revenues:
 
 

 
 

 
 

 
 

External customers
 
$
482

 
$
405

 
$
13,344

 
$
14,231

Intersegment (1)
 
706

 
412

 
9

 
1,127

Total revenues of reportable segments
 
$
1,188

 
$
817

 
$
13,353

 
$
15,358

Equity earnings in unconsolidated entities
 
$
133

 
$
—

 
$
—

 
$
133

Segment profit (2) (3) 
 
$
760

 
$
488

 
$
13

 
$
1,261

Maintenance capital
 
$
86

 
$
32

 
$
10

 
$
128

 
Nine Months Ended September 30, 2015
 
Transportation
 
Facilities
 
Supply and
Logistics
 
Total
Revenues:
 
 

 
 

 
 

 
 

External customers
 
$
538

 
$
393

 
$
17,225

 
$
18,156

Intersegment (1)
 
665

 
396

 
13

 
1,074

Total revenues of reportable segments
 
$
1,203

 
$
789

 
$
17,238

 
$
19,230

Equity earnings in unconsolidated entities
 
$
134

 
$
—

 
$
—

 
$
134

Segment profit (2) (3) 
 
$
681

 
$
432

 
$
258

 
$
1,371

Maintenance capital
 
$
101

 
$
48

 
$
5

 
$
154

___________________________________________
(1) 
Segment revenues include intersegment amounts that are eliminated in “Purchases and related costs” and “Field operating costs” in our Condensed Consolidated Statements of Operations. Intersegment sales are conducted at posted tariff rates, rates similar to those charged to third parties or rates that we believe approximate market at the time the agreement is executed or renegotiated. For further discussion, see “Analysis of Operating Segments” under Item 7 of our 2015 Annual Report on Form 10-K.

(2) 
Supply and Logistics segment profit includes interest expense (related to hedged inventory purchases) of $5 million and $1 million for the three months ended September 30, 2016 and 2015, respectively, and $10 million and $4 million for the nine months ended September 30, 2016 and 2015, respectively.
 
(3) 
The following table reconciles segment profit to net income attributable to PAA (in millions):
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2016
 
2015
 
2016
 
2015
Segment profit
$
428

 
$
487

 
$
1,261

 
$
1,371

Depreciation and amortization
(33
)
 
(107
)
 
(351
)
 
(319
)
Interest expense, net
(113
)
 
(109
)
 
(339
)
 
(320
)
Other income/(expense), net
17

 
(4
)
 
46

 
(7
)
Income before tax
299

 
267

 
617

 
725

Income tax expense
(1
)
 
(17
)
 
(15
)
 
(66
)
Net income
298

 
250

 
602

 
659

Net income attributable to noncontrolling interests
(1
)
 
(1
)
 
(3
)
 
(2
)
Net income attributable to PAA
$
297

 
$
249

 
$
599

 
$
657