Energy Transfer 2012 Annual Report Download - page 77
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69
Year Ended December 31, 2012 Compared to the Year Ended December 31, 2011 (tabular dollar amounts are expressed
in millions)
In accordance with GAAP, we have accounted for the Holdco Transaction, whereby ETP obtained control of Southern Union, as
a reorganization of entities under common control. Accordingly, ETP's consolidated financial statements have been retrospectively
adjusted to reflect consolidation of Southern Union into ETP beginning March 26, 2012 (the date ETE acquired Southern Union).
This change only impacted interim periods in 2012, and no prior annual amounts have been adjusted.
Consolidated Results
Years ended December 31,
2012 2011 Change
Segment Adjusted EBITDA
Intrastate transportation and storage $ 601 $ 667 $ (66)
Interstate transportation and storage 1,013 373 640
Midstream 438 389 49
NGL transportation and services 209 127 82
Investment in Sunoco Logistics 219 — 219
Retail Marketing 109 — 109
All other 155 225 (70)
Total Segment Adjusted EBITDA 2,744 1,781 963
Depreciation and amortization (656)(405)(251)
Interest expense, net of interest capitalized (665)(474)(191)
Gain on deconsolidation of Propane Business 1,057 — 1,057
Losses on non-hedged interest rate derivatives (4)(77) 73
Non-cash compensation expense (42)(37)(5)
Unrealized losses on commodity risk management activities (9)(11) 2
LIFO valuation reserve (75) — (75)
Loss on extinguishment of debt (115) — (115)
Impairment of investments in affiliates — (5) 5
Adjusted EBITDA attributable to discontinued operations (99)(23)(76)
Adjusted EBITDA related to unconsolidated affiliates (480)(56)(424)
Equity in earnings of unconsolidated affiliates 142 26 116
Other, net 22 — 22
Income from continuing operations before income tax expense 1,820 719 1,101
Income tax expense (63)(19)(44)
Income from continuing operations 1,757 700 1,057
Income from discontinued operations (109)(3)(106)
Net income $ 1,648 $ 697 $ 951
See the detailed discussion of Segment Adjusted EBITDA below.
Depreciation and Amortization. Depreciation and amortization increased primarily due to:
• depreciation and amortization related to Southern Union of $179 million from March 26, 2012 through December 31,
2012;
• depreciation and amortization related to Sunoco Logistics and Sunoco of $63 million and $32 million, respectively, from
October 5, 2012 through December 31, 2012; and
• additional depreciation and amortization recorded from assets placed in service in 2011 and 2012;
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