XML 46 R35.htm IDEA: XBRL DOCUMENT
v3.20.2

Operating Segments (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2020
Segment Reporting [Abstract] |
Segment financial data | The following tables reflect certain financial data for each segment (in millions):
|  | Transportation |  | Facilities |  | Supply and Logistics |  | Intersegment Adjustment |  | Total
Three Months Ended June 30, 2020 |  |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |
External customers (1) |  | $ | 234 |  |  | $ | 149 |  |  | $ | 2,925 |  |  | $ | (83) |  |  | $ | 3,225 |
Intersegment (2) |  | 223 |  |  | 127 |  |  | — |  |  | 83 |  |  | 433 |
Total revenues of reportable segments |  | $ | 457 |  |  | $ | 276 |  |  | $ | 2,925 |  |  | $ | — |  |  | $ | 3,658 |
Equity earnings in unconsolidated entities |  | $ | 81 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 81 |
Segment Adjusted EBITDA |  | $ | 346 |  |  | $ | 174 |  |  | $ | 3 |  |  |  |  | $ | 523 |
Maintenance capital |  | $ | 31 |  |  | $ | 15 |  |  | $ | 8 |  |  |  |  | $ | 54 |
|  | Transportation |  | Facilities |  | Supply and Logistics |  | Intersegment Adjustment |  | Total
Three Months Ended June 30, 2019 |  |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |
External customers (1) |  | $ | 316 |  |  | $ | 151 |  |  | $ | 7,914 |  |  | $ | (128) |  |  | $ | 8,253 |
Intersegment (2) |  | 243 |  |  | 140 |  |  | 1 |  |  | 128 |  |  | 512 |
Total revenues of reportable segments |  | $ | 559 |  |  | $ | 291 |  |  | $ | 7,915 |  |  | $ | — |  |  | $ | 8,765 |
Equity earnings in unconsolidated entities |  | $ | 83 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 83 |
Segment Adjusted EBITDA |  | $ | 410 |  |  | $ | 172 |  |  | $ | 200 |  |  |  |  | $ | 782 |
Maintenance capital |  | $ | 39 |  |  | $ | 30 |  |  | $ | 3 |  |  |  |  | $ | 72 |
Six Months Ended June 30, 2020 |  |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |
External customers (1) |  | $ | 532 |  |  | $ | 323 |  |  | $ | 10,833 |  |  | $ | (194) |  |  | $ | 11,494 |
Intersegment (2) |  | 504 |  |  | 266 |  |  | 1 |  |  | 194 |  |  | 965 |
Total revenues of reportable segments |  | $ | 1,036 |  |  | $ | 589 |  |  | $ | 10,834 |  |  | $ | — |  |  | $ | 12,459 |
Equity earnings in unconsolidated entities |  | $ | 189 |  |  | $ | 2 |  |  | $ | — |  |  |  |  | $ | 191 |
Segment Adjusted EBITDA |  | $ | 788 |  |  | $ | 384 |  |  | $ | 144 |  |  |  |  | $ | 1,316 |
Maintenance capital |  | $ | 64 |  |  | $ | 29 |  |  | $ | 11 |  |  |  |  | $ | 104 |
Six Months Ended June 30, 2019 |  |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |
External customers (1) |  | $ | 618 |  |  | $ | 307 |  |  | $ | 15,936 |  |  | $ | (233) |  |  | $ | 16,628 |
Intersegment (2) |  | 497 |  |  | 282 |  |  | 2 |  |  | 233 |  |  | 1,014 |
Total revenues of reportable segments |  | $ | 1,115 |  |  | $ | 589 |  |  | $ | 15,938 |  |  | $ | — |  |  | $ | 17,642 |
Equity earnings in unconsolidated entities |  | $ | 172 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 172 |
Segment Adjusted EBITDA |  | $ | 809 |  |  | $ | 356 |  |  | $ | 478 |  |  |  |  | $ | 1,643 |
Maintenance capital |  | $ | 67 |  |  | $ | 46 |  |  | $ | 5 |  |  |  |  | $ | 118 |
As of June 30, 2020 |  |  |  |  |  |  |  |  |  |
Total assets |  | $ | 13,815 |  |  | $ | 5,995 |  |  | $ | 4,227 |  |  |  |  | $ | 24,037 |
As of December 31, 2019 |  |  |  |  |  |  |  |  |  |
Total assets |  | $ | 14,902 |  |  | $ | 7,336 |  |  | $ | 6,439 |  |  |  |  | $ | 28,677 |
(1)Transportation revenues from External customers include certain inventory exchanges with our customers where our Supply and Logistics segment has transacted the inventory exchange and serves as the shipper on our pipeline systems. See Note 3 to our Consolidated Financial Statements included in Part IV of our 2019 Annual Report on Form 10-K for a discussion of our related accounting policy. We have included an estimate of the revenues from these inventory exchanges in our Transportation segment revenues from External customers presented above and adjusted those revenues out such that Total revenues from External customers reconciles to our Condensed Consolidated Statements of Operations. This presentation is consistent with the information provided to our CODM. (2)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 activities are conducted at posted tariff rates where applicable, or otherwise at rates similar to those charged to third parties or rates that we believe approximate market at the time the agreement is executed or renegotiated.
Reconciliation of Segment Adjusted EBITDA to Net income attributable to PAA | The following table reconciles Segment Adjusted EBITDA to Net income/(loss) attributable to PAA (in millions):
| Three Months Ended June 30, |  |  |  | Six Months Ended June 30, |  |
| 2020 |  | 2019 |  | 2020 |  | 2019
Segment Adjusted EBITDA | $ | 523 |  |  | $ | 782 |  |  | $ | 1,316 |  |  | $ | 1,643 |
Adjustments (1): |  |  |  |  |  |  |
Depreciation and amortization of unconsolidated entities (2) | (16) |  |  | (14) |  |  | (33) |  |  | (27) |
Gains/(losses) from derivative activities, net of inventory valuation adjustments (3) | (90) |  |  | (44) |  |  | (121) |  |  | 30 |
Long-term inventory costing adjustments (4) | 51 |  |  | (25) |  |  | (64) |  |  | (4) |
Deficiencies under minimum volume commitments, net (5) | (7) |  |  | (1) |  |  | (6) |  |  | 7 |
Equity-indexed compensation expense (6) | (5) |  |  | (4) |  |  | (8) |  |  | (7) |
Net gain/(loss) on foreign currency revaluation (7) | — |  |  | (7) |  |  | 13 |  |  | (12) |
Line 901 incident (8) | — |  |  | (10) |  |  | — |  |  | (10) |
Significant acquisition-related expenses (9) | — |  |  | — |  |  | (3) |  |  | — |
Depreciation and amortization | (166) |  |  | (147) |  |  | (333) |  |  | (283) |
Gains/(losses) on asset sales and asset impairments, net | 1 |  |  | 4 |  |  | (618) |  |  | — |
Goodwill impairment losses | — |  |  | — |  |  | (2,515) |  |  | — |
Gain on/(impairment of) investments in unconsolidated entities, net | (69) |  |  | — |  |  | (91) |  |  | 267 |
Interest expense, net | (108) |  |  | (103) |  |  | (215) |  |  | (203) |
Other income/(expense), net | 18 |  |  | (6) |  |  | (13) |  |  | 18 |
Income/(loss) before tax | 132 |  |  | 425 |  |  | (2,691) |  |  | 1,419 |
Income tax (expense)/benefit | 12 |  |  | 23 |  |  | (10) |  |  | (1) |
Net income/(loss) | 144 |  |  | 448 |  |  | (2,701) |  |  | 1,418 |
Net income attributable to noncontrolling interests | (2) |  |  | (2) |  |  | (4) |  |  | (2) |
Net income/(loss) attributable to PAA | $ | 142 |  |  | $ | 446 |  |  | $ | (2,705) |  |  | $ | 1,416 |
(1)Represents adjustments utilized by our CODM in the evaluation of segment results. (2)Includes our proportionate share of the depreciation and amortization of unconsolidated entities. (3)We use derivative instruments for risk management purposes and our related processes include specific identification of hedging instruments to an underlying hedged transaction. Although we identify an underlying transaction for each derivative instrument we enter into, there may not be an accounting hedge relationship between the instrument and the underlying transaction. In the course of evaluating our results, we identify the earnings that were recognized during the period related to derivative instruments for which the identified underlying transaction does not occur in the current period and exclude the related gains and losses in determining Segment Adjusted EBITDA. In addition, we exclude gains and losses on derivatives that are related to investing activities, such as the purchase of linefill. We also exclude the impact of corresponding inventory valuation adjustments, as applicable. (4)We carry crude oil and NGL inventory that is comprised of minimum working inventory requirements in third-party assets and other working inventory that is needed for our commercial operations. We consider this inventory necessary to conduct our operations and we intend to carry this inventory for the foreseeable future. Therefore, we classify this inventory as long-term on our balance sheet and do not hedge the inventory with derivative instruments (similar to linefill in our own assets). We exclude the impact of changes in the average cost of the long-term inventory (that result from fluctuations in market prices) and write-downs of such inventory that result from price declines from Segment Adjusted EBITDA. (5)We have certain agreements that require counterparties to deliver, transport or throughput a minimum volume over an agreed upon period. Substantially all of such agreements were entered into with counterparties to economically support the return on our capital expenditure necessary to construct the related asset. Some of these agreements include make-up rights if the minimum volume is not met. We record a receivable from the counterparty in the period that services are provided or when the transaction occurs, including amounts for deficiency obligations from counterparties associated with minimum volume commitments. If a counterparty has a make-up right associated with a deficiency, we defer the revenue attributable to the counterparty’s make-up right and subsequently recognize the revenue at the earlier of when the deficiency volume is delivered or shipped, when the make-up right expires or when it is determined that the counterparty’s ability to utilize the make-up right is remote. We include the impact of amounts billed to counterparties for their deficiency obligation, net of applicable amounts subsequently recognized into revenue, as a selected item impacting comparability. Our CODM views the inclusion of the contractually committed revenues associated with that period as meaningful to Segment Adjusted EBITDA as the related asset has been constructed, is standing ready to provide the committed service and the fixed operating costs are included in the current period results. (6)Includes equity-indexed compensation expense associated with awards that will or may be settled in units. (7)Includes gains and losses realized on the settlement of foreign currency transactions as well as the revaluation of monetary assets and liabilities denominated in a foreign currency. (8)Includes costs recognized during the period related to the Line 901 incident that occurred in May 2015, net of amounts we believe are probable of recovery from insurance. See Note 12 for additional information regarding the Line 901 incident. (9)Includes acquisition-related expenses associated with the Felix Midstream LLC acquisition. See Note 14 for additional discussion. An adjustment for these non-recurring expenses is included in the calculation of Segment Adjusted EBITDA for the three and six months ended June 30, 2020 as our CODM does not view such expenses as integral to understanding our core segment operating performance.

X
- Definition Tabular disclosure of the reconciliation of profit (loss) from reportable segments to the consolidated income (loss) before income tax expense (benefit) and discontinued operations. Includes, but is not limited to, reconciliation after income tax if income tax is allocated to the reportable segment. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599 + Details
Name: | us-gaap_ReconciliationOfOperatingProfitLossFromSegmentsToConsolidatedTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8813-108599 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599 + Details
Name: | us-gaap_ScheduleOfSegmentReportingInformationBySegmentTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration