Enterprise Products Partners L.P.

SEC Filings

8-K
ENTERPRISE PRODUCTS PARTNERS L P filed this Form 8-K on 01/31/2018
Entire Document
 


Gross Operating Margin

We evaluate segment performance based on our financial measure of gross operating margin. Gross operating margin is an important performance measure of the core profitability of our operations and forms the basis of our internal financial reporting.  We believe that investors benefit from having access to the same financial measures that our management uses in evaluating segment results.

This Current Report references total gross operating margin, which is a non-generally accepted accounting principle (“non-GAAP”) financial performance measure.  The GAAP financial measure that is most directly comparable to total gross operating margin is operating income.  The following table presents a reconciliation of operating income to total gross operating margin for the periods indicated (dollars in millions):

   
For the Three Months
Ended December 31,
   
For the Year
Ended December 31,
 
   
2017
   
2016
   
2017
   
2016
 
Operating income (GAAP)
 
$
1,079.4
   
$
923.2
   
$
3,928.9
   
$
3,580.7
 
Adjustments to reconcile operating income to total gross operating margin:
                               
  Add depreciation, amortization and accretion expense
   
392.0
     
371.1
     
1,531.3
     
1,456.7
 
  Add asset impairment and related charges in operating costs and expenses
   
14.6
     
24.1
     
49.8
     
52.8
 
  Subtract net gains attributable to asset sales
   
(9.6
)
   
(0.2
)
   
(10.7
)
   
(2.5
)
  Add general and administrative costs
   
43.7
     
39.1
     
181.1
     
160.1
 
Total gross operating margin (non-GAAP)
 
$
1,520.1
   
$
1,357.3
   
$
5,680.4
   
$
5,247.8
 

Total gross operating margin includes equity in the earnings of unconsolidated affiliates, but is exclusive of other income and expense transactions, income taxes, the cumulative effect of changes in accounting principles and extraordinary charges.  Total gross operating margin is presented on a 100% basis before any allocation of earnings to noncontrolling interests.


Item 9.01.  Financial Statements and Exhibits.

(d)  Exhibits.

Exhibit No.
Description



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