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
 


Enterprise Products Partners L.P.
       
Exhibit F
 
Total Gross Operating Margin – UNAUDITED 
                
($ in millions)
           
   
For the Three Months
Ended December 31,
   
For the Year
Ended December 31,
 
   
2017
   
2016
   
2017
   
2016
 
Total gross operating margin (non-GAAP)
 
$
1,520.1
   
$
1,357.3
   
$
5,680.4
   
$
5,247.8
 
Adjustments to reconcile non-GAAP total gross operating margin to
 GAAP total operating income:
                               
Subtract depreciation, amortization and accretion expense
   amounts not reflected in gross operating margin
   
(392.0
)
   
(371.1
)
   
(1,531.3
)
   
(1,456.7
)
Subtract non-cash asset impairment and related charges not
   reflected in gross operating margin
   
(14.6
)
   
(24.1
)
   
(49.8
)
   
(52.8
)
Add net gains attributable to asset sales
   not reflected in gross operating margin
   
9.6
     
0.2
     
10.7
     
2.5
 
Subtract general and administrative costs not reflected in
   gross operating margin
   
(43.7
)
   
(39.1
)
   
(181.1
)
   
(160.1
)
Total operating income (GAAP)
 
$
1,079.4
   
$
923.2
   
$
3,928.9
   
$
3,580.7
 

Total 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. 

The term “total gross operating margin” represents GAAP operating income exclusive of (i) depreciation, amortization and accretion expenses, (ii) impairment charges, (iii) gains and losses attributable to asset sales, and (iv) general and administrative costs.  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 percent basis before any allocation of earnings to noncontrolling interests.  The GAAP financial measure most directly comparable to total gross operating margin is operating income.

Total gross operating margin excludes amounts attributable to shipper make-up rights as described in footnote (4) to Exhibit A of this press release.



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