Operating Segments (Tables)

6 Months Ended

Jun. 30, 2015

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 June 30, 2015
Revenues:
External customers	$	180	$	137	$	6,346	$	6,663
Intersegment (1)		222		132		5		359
Total revenues of reportable segments	$	402	$	269	$	6,351	$	7,022
Equity earnings in unconsolidated entities	$	52	$	—	$	—	$	52
Segment profit (2) (3)	$	186	$	144	$	41	$	371
Maintenance capital	$	33	$	17	$	2	$	52
Three Months Ended June 30, 2014
Revenues:
External customers	$	195	$	144	$	10,856	$	11,195
Intersegment (1)		217		133		4		354
Total revenues of reportable segments	$	412	$	277	$	10,860	$	11,549
Equity earnings in unconsolidated entities	$	23	$	—	$	—	$	23
Segment profit (2) (3)	$	221	$	134	$	133	$	488
Maintenance capital	$	42	$	5	$	1	$	48

	Transportation		Facilities		Supply and Logistics		Total
Six Months Ended June 30, 2015
Revenues:
External customers	$	366	$	261	$	11,978	$	12,605
Intersegment (1)		437		264		6		707
Total revenues of reportable segments	$	803	$	525	$	11,984	$	13,312
Equity earnings in unconsolidated entities	$	89	$	—	$	—	$	89
Segment profit (2) (3)	$	428	$	285	$	171	$	884
Maintenance capital	$	66	$	32	$	4	$	102
Six Months Ended June 30, 2014
Revenues:
External customers	$	376	$	301	$	22,201	$	22,878
Intersegment (1)		422		275		27		724
Total revenues of reportable segments	$	798	$	576	$	22,228	$	23,602
Equity earnings in unconsolidated entities	$	44	$	—	$	—	$	44
Segment profit (2) (3)	$	427	$	288	$	382	$	1,097
Maintenance capital	$	76	$	15	$	4	$	95

⁽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 2014 Annual Report on Form 10-K.

⁽²⁾ Supply and Logistics segment profit includes interest expense (related to hedged inventory purchases) of $2 million and $5 million for the three months ended June 30, 2015 and 2014, respectively, and $3 million and $7 million for the six months ended June 30, 2015 and 2014, respectively.

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2015		2014		2015		2014
Segment profit	$	371	$	488	$	884	$	1,097
Depreciation and amortization		(110)		(100)		(217)		(196)
Interest expense, net		(105)		(82)		(207)		(161)
Other income/(expense), net		1		4		(3)		2
Income before tax		157		310		457		742
Income tax expense		(33)		(22)		(49)		(70)
Net income		124		288		408		672
Net income attributable to noncontrolling interests		—		(1)		(1)		(1)
Net income attributable to PAA	$	124	$	287	$	407	$	671

Reconciliation of segment profit to net income attributable to PAA

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2015		2014		2015		2014
Segment profit	$	371	$	488	$	884	$	1,097
Depreciation and amortization		(110)		(100)		(217)		(196)
Interest expense, net		(105)		(82)		(207)		(161)
Other income/(expense), net		1		4		(3)		2
Income before tax		157		310		457		742
Income tax expense		(33)		(22)		(49)		(70)
Net income		124		288		408		672
Net income attributable to noncontrolling interests		—		(1)		(1)		(1)
Net income attributable to PAA	$	124	$	287	$	407	$	671