Energy Transfer 2012 Annual Report Download - page 80

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The following table presents the pro forma financial information for the year ended December 31, 2011.
ETP
Historical Propane Transaction (a) Sunoco
Historical (b)
Southern
Union
Historical (c)
Holdco
Pro Forma
Adjustments (d) Pro
Forma
REVENUES $ 6,799 $ (1,427) $ 45,328 $ 1,997 $ (16,528) $ 36,169
COSTS AND EXPENSES:
Cost of products sold - natural
gas operations 4,935 (1,174) 44,119 1,338 (16,677) 32,541
Depreciation and amortization 405 (78) 335 204 (2) 864
Selling, general and
administrative 212 (47) 598 42 (56) 749
Impairment charges — — 2,629 — (2,569) 60
Total costs and expenses 5,552 (1,299) 47,681 1,584 (19,304) 34,214
OPERATING INCOME 1,247 (128) (2,353) 413 2,776 1,955
OTHER INCOME
(EXPENSE):
Interest expense, net of interest
capitalized (474) (40) (172)(218) 29 (875)
Equity in earnings of affiliates 26 148 15 99 (158) 130
Gains (losses) on non-hedged
interest rate derivatives (77) — — — — (77)
Impairment charges (5) — — — — (5)
Other, net 2 2 44 — (2) 46
INCOME FROM
CONTINUING
OPERATIONS BEFORE
INCOME TAX EXPENSE
(BENEFIT) 719 (18) (2,466) 294 2,645 1,174
Income tax expense
(benefit) 19 (4) (1,063) 80 1,070 102
INCOME FROM
CONTINUING
OPERATIONS $ 700 $ (14) $ (1,403) $ 214 $ 1,575 $ 1,072
(a) Propane Transaction adjustments reflect the following:
• The adjustments reflect the deconsolidation of ETP's propane operations in connection with the Propane Transaction.
• The adjustments reflect the pro forma impacts from the consideration received in connection with the Propane
Transaction, including ETP's receipt of AmeriGas common units and ETP's use of cash proceeds from the transaction
to redeem long-term debt.
• The 2012 adjustments include the elimination of (i) the gain recognized by ETP in connection with the deconsolidation
of the Propane Business and (ii) ETP's loss on extinguishment of debt recognized in connection with the use of proceeds
to redeem of long-term debt.
(b) Sunoco historical amounts in 2012 include only the period from January 1, 2012 through September 30, 2012.
(c) Southern Union historical amounts in 2012 include only the period from January 1, 2012 through March 25, 2012.
(d) Substantially all of the Holdco pro forma adjustments relate to Sunoco's exit from its Northeast refining operations and
formation of the PES joint venture, except for the following:
• The adjustment to depreciation and amortization reflects incremental amounts for estimated fair values recorded in
purchase accounting related to Sunoco and Southern Union.
• The adjustment to selling, general and administrative expenses includes the elimination of merger-related costs
incurred, because such costs would not have a continuing impact on results of operations.
• The adjustment to interest expense includes incremental amortization of fair value adjustments to debt recorded in
purchase accounting.
• The adjustment to equity in earnings of affiliates reflects the reversal of amounts related to Citrus Corp. recorded in
Southern Union's historical income statements.
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