Operating Segments

9 Months Ended

Sep. 30, 2012

Operating Segments

Operating Segments

Note 13—Operating Segments

We manage our operations through three operating segments: (i) Transportation, (ii) Facilities and (iii) Supply and Logistics. 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 September 30, 2012
Revenues:
External Customers	$	150	$	156	$	9,048	$	9,354
Intersegment (1)	214		106		1		321
Total revenues of reportable segments	$	364	$	262	$	9,049	$	9,675
Equity earnings in unconsolidated entities	$	9	$	—	$	—	$	9
Segment profit (2) (3)	$	184	$	140	$	142	$	466
Maintenance capital	$	26	$	17	$	4	$	47
Three Months Ended September 30, 2011
Revenues:
External Customers	$	140	$	153	$	8,544	$	8,837
Intersegment (1)	160		38		1		199
Total revenues of reportable segments	$	300	$	191	$	8,545	$	9,036
Equity earnings in unconsolidated entities	$	4	$	—	$	—	$	4
Segment profit (2) (3)	$	152	$	95	$	179	$	426
Maintenance capital	$	17	$	6	$	2	$	25
Nine Months Ended September 30, 2012
Revenues:
External Customers	$	458	$	533	$	27,367	$	28,358
Intersegment (1)	585		252		1		838
Total revenues of reportable segments	$	1,043	$	785	$	27,368	$	29,196
Equity earnings in unconsolidated entities	$	25	$	—	$	—	$	25
Segment profit (2) (3)	$	516	$	344	$	544	$	1,404
Maintenance capital	$	78	$	34	$	11	$	123
Nine Months Ended September 30, 2011
Revenues:
External Customers	$	428	$	396	$	24,566	$	25,390
Intersegment (1)	436		120		1		557
Total revenues of reportable segments	$	864	$	516	$	24,567	$	25,947
Equity earnings in unconsolidated entities	$	9	$	—	$	—	$	9
Segment profit (2) (3)	$	416	$	259	$	464	$	1,139
Maintenance capital	$	52	$	16	$	9	$	77

(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. For further discussion, see “Analysis of Operating Segments” under Item 7 of our 2011 Annual Report on Form 10-K.
(2)	Supply and Logistics segment profit includes interest expense (related to hedged inventory purchases) of approximately $3 million and $6 million for the three months ended September 30, 2012 and 2011, respectively, and approximately $9 million and $17 million for the nine months ended September 30, 2012 and 2011, respectively.

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

	For the Three Months						For the Nine Months
	Ended September 30,						Ended September 30,
	2012			2011			2012			2011
Segment profit	$	466		$	426		$	1,404		$	1,139
Depreciation and amortization	(210		)	(65		)	(356		)	(191		)
Interest expense	(74		)	(62		)	(214		)	(190		)
Other income/(expense), net	4			(5		)	6			(24		)
Income tax expense	(13		)	(6		)	(43		)	(28		)
Net income	173			288			797			706
Net income attributable to noncontrolling interests	(8		)	(7		)	(23		)	(18		)
Net income attributable to Plains	$	165		$	281		$	774		$	688