Operating Segments (Tables)

9 Months Ended

Sep. 30, 2013

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 September 30, 2013
Revenues:
External Customers	$	179	$	138	$	10,386	$	10,703
Intersegment (1)	199		142		—		341
Total revenues of reportable segments	$	378	$	280	$	10,386	$	11,044
Equity earnings in unconsolidated entities	$	19	$	—	$	—	$	19
Segment profit (2) (3)	$	198	$	146	$	64	$	408
Maintenance capital	$	29	$	6	$	7	$	42
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

	Transportation		Facilities		Supply and Logistics		Total
Nine Months Ended September 30, 2013
Revenues:
External Customers	$	517	$	558	$	30,542	$	31,617
Intersegment (1)	594		425		2		1,021
Total revenues of reportable segments	$	1,111	$	983	$	30,544	$	32,638
Equity earnings in unconsolidated entities	$	42	$	—	$	—	$	42
Segment profit (2) (3)	$	522	$	445	$	673	$	1,640
Maintenance capital	$	84	$	23	$	17	$	124
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

(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 2012 Annual Report on Form 10-K.

(2) Supply and Logistics segment profit includes interest expense (related to hedged inventory) of approximately $8 million and $3 million for the three months ended September 30, 2013 and 2012, respectively, and approximately $21 million and $9 million for the nine months ended September 30, 2013 and 2012, respectively.

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

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	2013			2012			2013			2012
Segment profit	$	408		$	466		$	1,640		$	1,404
Depreciation and amortization	(93		)	(210		)	(265		)	(356		)
Interest expense	(72		)	(74		)	(224		)	(214		)
Other income, net	3			4			2			6
Income tax expense	(9		)	(13		)	(79		)	(43		)
Net income	237			173			1,074			797
Net income attributable to noncontrolling interests	(6		)	(8		)	(22		)	(23		)
Net income attributable to Plains	$	231		$	165		$	1,052		$	774

Reconciliation of segment profit to net income attributable to Plains

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

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	2013			2012			2013			2012
Segment profit	$	408		$	466		$	1,640		$	1,404
Depreciation and amortization	(93		)	(210		)	(265		)	(356		)
Interest expense	(72		)	(74		)	(224		)	(214		)
Other income, net	3			4			2			6
Income tax expense	(9		)	(13		)	(79		)	(43		)
Net income	237			173			1,074			797
Net income attributable to noncontrolling interests	(6		)	(8		)	(22		)	(23		)
Net income attributable to Plains	$	231		$	165		$	1,052		$	774