XML 45 R31.htm IDEA: XBRL DOCUMENT v3.4.0.3
Business Segments (Tables)
 3 Months Ended
Mar. 31, 2016
Business Segments [Abstract]  
Measurement of Total Segment Gross Operating Margin
The following table presents our measurement of non-GAAP total segment gross operating margin for the periods indicated:

 
 
For the Three Months
Ended March 31,
 
 
 
2016
  
2015
 
Revenues
 
$
5,005.3
  
$
7,472.5
 
Subtract operating costs and expenses
  
(4,146.9
)
  
(6,616.4
)
Add equity in income of unconsolidated affiliates
  
101.1
   
89.2
 
Add depreciation, amortization and accretion expense amounts not reflected in gross operating margin
  
358.2
   
345.3
 
Add impairment charges not reflected in gross operating margin
  
1.7
   
33.3
 
Add net losses or subtract net gains attributable to asset sales not reflected in gross operating margin
  
4.9
   
(0.1
)
Add non-refundable deferred revenues attributable to shipper make-up rights on major
new pipeline projects reflected in gross operating margin
  
7.1
   
30.7
 
Subtract subsequent recognition of deferred revenues attributable to make-up rights not reflected in
gross operating margin
  
(12.9
)
  
(20.1
)
Total segment gross operating margin
 
$
1,318.5
  
$
1,334.4
 
Reconciliation of Total Segment Gross Operating Margin to Operating Income and Income Before Provision for Income Taxes
The following table presents a reconciliation of total segment gross operating margin to operating income and further to income before income taxes for the periods indicated:

 
 
For the Three Months
Ended March 31,
 
 
 
2016
  
2015
 
Total segment gross operating margin
 
$
1,318.5
  
$
1,334.4
 
Adjustments to reconcile total segment gross operating margin to operating income:
        
Subtract depreciation, amortization and accretion expense amounts not reflected in gross operating margin
  
(358.2
)
  
(345.3
)
Subtract impairment charges not reflected in gross operating margin
  
(1.7
)
  
(33.3
)
Add net gains or subtract net losses attributable to asset sales not reflected in gross operating margin
  
(4.9
)
  
0.1
 
Subtract non-refundable deferred revenues attributable to shipper make-up rights on major
     new pipeline projects reflected in gross operating margin
  
(7.1
)
  
(30.7
)
Add subsequent recognition of deferred revenues attributable to make-up rights not reflected in
     gross operating margin
  
12.9
   
20.1
 
Subtract general and administrative costs not reflected in gross operating margin
  
(43.9
)
  
(49.3
)
Operating income
  
915.6
   
896.0
 
Other expense, net
  
(237.0
)
  
(238.6
)
Income before income taxes
 
$
678.6
  
$
657.4
 
Information by Business Segments
Information by business segment, together with reconciliations to our consolidated financial statement totals, is presented in the following table:

 
 
Reportable Business Segments
       
 
 
NGL
Pipelines
& Services
  
Crude Oil
Pipelines
& Services
  
Natural Gas
Pipelines
& Services
  
Petrochemical
& Refined
Products
Services
  
Offshore
Pipelines
& Services
  
Adjustments
and
Eliminations
  
Consolidated
Total
 
Revenues from third parties:
                     
Three months ended March 31, 2016
 
$
2,402.0
  
$
1,277.5
  
$
547.3
  
$
762.9
  
$
--
  
$
--
  
$
4,989.7
 
Three months ended March 31, 2015
  
2,674.8
   
2,677.0
   
730.9
   
1,349.1
   
34.6
   
--
   
7,466.4
 
Revenues from related parties:
                            
Three months ended March 31, 2016
  
1.8
   
11.1
   
2.7
   
--
   
--
   
--
   
15.6
 
Three months ended March 31, 2015
  
1.5
   
1.0
   
3.0
   
--
   
0.6
   
--
   
6.1
 
Intersegment and intrasegment revenues:
                            
Three months ended March 31, 2016
  
3,174.8
   
1,499.4
   
124.7
   
242.7
   
--
   
(5,041.6
)
  
--
 
Three months ended March 31, 2015
  
2,443.1
   
1,277.1
   
170.0
   
285.6
   
0.4
   
(4,176.2
)
  
--
 
Total revenues:
                            
Three months ended March 31, 2016
  
5,578.6
   
2,788.0
   
674.7
   
1,005.6
   
--
   
(5,041.6
)
  
5,005.3
 
Three months ended March 31, 2015
  
5,119.4
   
3,955.1
   
903.9
   
1,634.7
   
35.6
   
(4,176.2
)
  
7,472.5
 
Equity in income (loss) of unconsolidated affiliates:
                            
Three months ended March 31, 2016
  
15.1
   
90.1
   
1.0
   
(5.1
)
  
--
   
--
   
101.1
 
Three months ended March 31, 2015
  
11.6
   
59.9
   
0.9
   
(3.4
)
  
20.2
   
--
   
89.2
 
Gross operating margin:
                            
Three months ended March 31, 2016
  
783.7
   
202.3
   
177.7
   
154.8
   
--
   
--
   
1,318.5
 
Three months ended March 31, 2015
  
695.2
   
214.0
   
204.5
   
174.6
   
46.1
   
--
   
1,334.4
 
Property, plant and equipment, net:
(see Note 4)
                            
At March 31, 2016
  
12,934.9
   
3,896.6
   
8,551.1
   
3,203.3
   
--
   
4,087.4
   
32,673.3
 
At December 31, 2015
  
12,909.7
   
3,550.3
   
8,620.0
   
3,060.7
   
--
   
3,894.0
   
32,034.7
 
Investments in unconsolidated affiliates:
(see Note 5)
                            
At March 31, 2016
  
740.1
   
1,848.6
   
22.3
   
73.1
   
--
   
--
   
2,684.1
 
At December 31, 2015
  
718.7
   
1,813.4
   
22.5
   
73.9
   
--
   
--
   
2,628.5
 
Intangible assets, net: (see Note 6)
                            
At March 31, 2016
  
372.5
   
2,349.8
   
1,079.1
   
189.5
   
--
   
--
   
3,990.9
 
At December 31, 2015
  
380.3
   
2,377.5
   
1,087.7
   
191.7
   
--
   
--
   
4,037.2
 
Goodwill: (see Note 6)
                            
At March 31, 2016
  
2,651.7
   
1,841.0
   
296.3
   
956.2
   
--
   
--
   
5,745.2
 
At December 31, 2015
  
2,651.7
   
1,841.0
   
296.3
   
956.2
   
--
   
--
   
5,745.2
 
Segment assets:
                            
At March 31, 2016
  
16,699.2
   
9,936.0
   
9,948.8
   
4,422.1
   
--
   
4,087.4
   
45,093.5
 
At December 31, 2015
  
16,660.4
   
9,582.2
   
10,026.5
   
4,282.5
   
--
   
3,894.0
   
44,445.6
 
Consolidated Revenues and Expenses
The following table presents additional information regarding our consolidated revenues and costs and expenses for the periods indicated:

 
 
For the Three Months
Ended March 31,
 
 
 
2016
  
2015
 
NGL Pipelines & Services:
      
Sales of NGLs and related products
 
$
1,943.5
  
$
2,242.2
 
Midstream services
  
460.3
   
434.1
 
Total
  
2,403.8
   
2,676.3
 
Crude Oil Pipelines & Services:
        
Sales of crude oil
  
1,121.1
   
2,570.7
 
Midstream services
  
167.5
   
107.3
 
Total
  
1,288.6
   
2,678.0
 
Natural Gas Pipelines & Services:
        
Sales of natural gas
  
315.0
   
476.3
 
Midstream services
  
235.0
   
257.6
 
Total
  
550.0
   
733.9
 
Petrochemical & Refined Products Services:
        
Sales of petrochemicals and refined products
  
553.2
   
1,151.0
 
Midstream services
  
209.7
   
198.1
 
Total
  
762.9
   
1,349.1
 
Offshore Pipelines & Services:
        
Sales of crude oil
  
--
   
1.1
 
Midstream services
  
--
   
34.1
 
Total
  
--
   
35.2
 
Total consolidated revenues
 
$
5,005.3
  
$
7,472.5
 
 
        
Consolidated costs and expenses
        
Operating costs and expenses:
        
Cost of sales
 
$
3,208.3
  
$
5,678.1
 
Other operating costs and expenses (1)
  
573.8
   
559.8
 
Depreciation, amortization and accretion
  
358.2
   
345.3
 
Net losses (gains) attributable to asset sales
  
4.9
   
(0.1
)
Non-cash asset impairment charges
  
1.7
   
33.3
 
General and administrative costs
  
43.9
   
49.3
 
Total consolidated costs and expenses
 
$
4,190.8
  
$
6,665.7
 
  
(1)Represents cost of operating our plants, pipelines and other fixed assets, excluding depreciation, amortization and accretion charges.