Segment Information

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Segment Information

(16) Segment Information

Identification of the majority of the Company's operating segments is based principally upon geographic regions served.  The Company’s reportable segments consist of the following: natural gas gathering, processing, transmission and fractionation operations located in north Texas, south Texas and the Permian Basin in west Texas (“Texas”), the pipelines and processing plants located in Louisiana and NGL assets located in south Louisiana (“Louisiana”), natural gas gathering and processing operations located throughout Oklahoma (“Oklahoma”) and crude rail, truck, pipeline and barge facilities in west Texas, south Texas, Louisiana and Ohio River Valley (“Crude and Condensate”). Operating activity for intersegment eliminations is shown in the corporate segment.  The Company’s sales are derived from external domestic customers.

Corporate expenses include general partnership expenses associated with managing all reportable operating segments. Corporate assets consist primarily of cash, property and equipment, including software, for general corporate support, debt financing costs and unconsolidated affiliate investments in HEP and GCF. The Company evaluates the performance of its operating segments based on operating revenues and segment profits.

Summarized financial information concerning the Company’s reportable segments is shown in the following tables:

	Texas			Louisiana			Oklahoma			Crude and Condensate			Corporate			Totals
	(In millions)
Three Months Ended June 30, 2016
Product sales	$	41.9		$	399.5		$	8.9		$	288.0		$	—		$	738.3
Product sales-affiliates	72.7			15.2			22.5			0.9			(79.6		)	31.7
Midstream services	23.2			52.7			18.0			14.4			—			108.3
Midstream services-affiliates	111.9			25.5			41.7			4.0			(22.5		)	160.6
Cost of sales	(103.6		)	(425.5		)	(31.6		)	(273.8		)	102.1			(732.4		)
Operating expenses	(43.0		)	(25.4		)	(11.8		)	(19.9		)	—			(100.1		)
Loss on derivative activity	—			—			—			—			(5.7		)	(5.7		)
Segment profit	$	103.1		$	42.0		$	47.7		$	13.6		$	(5.7	)	$	200.7
Depreciation and amortization	$	(48.7	)	$	(28.6	)	$	(34.8	)	$	(10.6	)	$	(2.2	)	$	(124.9	)
Goodwill	$	231.1		$	—		$	190.3		$	—		$	1,119.9		$	1,541.3
Capital expenditures	$	57.2		$	14.1		$	63.1		$	0.9		$	4.9		$	140.2
Three Months Ended June 30, 2015
Product sales	$	81.2		$	401.2		$	0.1		$	473.7		$	—		$	956.2
Product sales-affiliates	35.0			17.0			1.7			14.0			(36.0		)	31.7
Midstream services	36.0			63.2			9.8			26.9			—			135.9
Midstream services-affiliates	115.8			0.3			29.1			4.3			—			149.5
Cost of sales	(118.4		)	(418.2		)	(2.0		)	(465.6		)	36.0			(968.2		)
Operating expenses	(45.5		)	(27.2		)	(9.1		)	(27.3		)	—			(109.1		)
Gain on derivative activity	—			—			—			—			1.2			1.2
Segment profit	$	104.1		$	36.3		$	29.6		$	26.0		$	1.2		$	197.2
Depreciation and amortization	$	(42.8	)	$	(26.9	)	$	(11.8	)	$	(14.5	)	$	(1.7	)	$	(97.7	)
Goodwill	$	1,185.0		$	786.8		$	190.3		$	142.1		$	1,427.0		$	3,731.2
Capital expenditures	$	80.9		$	14.7		$	12.3		$	54.4		$	2.5		$	164.8
Six Months Ended June 30, 2016
Product sales	$	104.4		$	687.2		$	16.7		$	518.5		$	—		$	1,326.8
Product sales-affiliates	110.0			22.6			33.1			1.1			(110.6		)	56.2
Midstream services	50.6			107.9			33.1			31.2			—			222.8
Midstream services-affiliates	222.2			38.2			86.7			9.2			(33.1		)	323.2
Cost of sales	(194.9		)	(727.6		)	(50.9		)	(488.9		)	143.7			(1,318.6		)
Operating expenses	(82.3		)	(48.7		)	(24.6		)	(42.7		)	—			(198.3		)
Loss on derivative activity	—			—			—			—			(6.1		)	(6.1		)
Segment profit	$	210.0		$	79.6		$	94.1		$	28.4		$	(6.1	)	$	406.0
Depreciation and amortization	$	(94.9	)	$	(57.9	)	$	(68.6	)	$	(21.0	)	$	(4.4	)	$	(246.8	)

Impairments	$	(473.1	)	$	—		$	—		$	(93.2	)	$	(307.0	)	$	(873.3	)
Goodwill	$	231.1		$	—		$	190.3		$	—		$	1,119.9		$	1,541.3
Capital expenditures	$	80.5		$	36.8		$	132.3		$	4.2		$	6.8		$	260.6
Six Months Ended June 30, 2015
Product sales	$	131.0		$	773.4		$	0.1		$	722.4		$	—		$	1,626.9
Product sales-affiliates	60.9			24.1			5.4			14.0			(56.5		)	47.9
Midstream services	55.6			121.1			20.5			41.1			—			238.3
Midstream services-affiliates	231.3			0.4			60.3			8.5			—			300.5
Cost of sales	(185.6		)	(789.1		)	(7.1		)	(700.3		)	56.5			(1,625.6		)
Operating expenses	(92.6		)	(51.5		)	(16.1		)	(47.4		)	—			(207.6		)
Gain on derivative activity	—			—			—			—			1.4			1.4
Segment profit	$	200.6		$	78.4		$	63.1		$	38.3		$	1.4		$	381.8
Depreciation and amortization	$	(79.2	)	$	(54.4	)	$	(25.3	)	$	(26.9	)	$	(3.2	)	$	(189.0	)
Goodwill	$	1,185.0		$	786.8		$	190.3		$	142.1		$	1,427.0		$	3,731.2
Capital expenditures	$	154.4		$	29.9		$	17.5		$	132.0		$	6.7		$	340.5

The table below presents information about segment assets as of June 30, 2016 and December 31, 2015:

	June 30, 2016		December 31, 2015
Segment Identifiable Assets:	(In millions)
Texas	$	3,179.9	$	3,709.5
Louisiana	2,330.9		2,309.3
Oklahoma	2,413.6		873.4
Crude and Condensate	780.6		898.0
Corporate	1,457.3		1,751.1
Total identifiable assets	$	10,162.3	$	9,541.3

The following table reconciles the segment profits reported above to the operating income (loss) as reported in the Condensed Consolidated Statements of Operations (in millions):

	Three Months Ended    June 30,						Six Months Ended   June 30,
	2016			2015			2016			2015
Segment profits	$	200.7		$	197.2		$	406.0		$	381.8
General and administrative expenses	(30.3		)	(28.1		)	(65.4		)	(70.8		)
Loss on disposition of assets	(0.3		)	—			(0.1		)	—
Depreciation and amortization	(124.9		)	(97.7		)	(246.8		)	(189.0		)
Impairments	—			—			(873.3		)	—
Operating income (loss)	$	45.2		$	71.4		$	(779.6	)	$	122.0