Energy Transfer 2013 Annual Report Download - page 82

Table of Contents
months of results during the year ended December 31, 2013. Segment Adjusted EBITDA also increased by $10 million as a result of the MACS acquisition in
October 2013.
All Other
Years Ended December 31,
2013
2012
Change
Revenue $2,367
$1,555
$ 812
Cost of products sold 2,309
1,496
813
Gross margin 58
59
(1)
Unrealized (gains) losses on commodity risk management activities (2)
5
(7)
Operating expenses, excluding non-cash compensation expense (31)
(57)
26
Selling, general and administrative expenses, excluding non-cash compensation expense (106)
(119)
13
Adjusted EBITDA related to discontinued operations 76
84
(8)
Adjusted EBITDA related to unconsolidated affiliates 213
166
47
Other (4)
—
(4)
Elimination (10)
(12)
2
Segment Adjusted EBITDA $ 194
$126
$68
Amounts reflected in our all other segment primarily include:
•our retail propane and other retail propane related operations prior to our contribution of those operations to AmeriGas in January 2012. Our investment in
AmeriGas was reflected in the all other segment subsequent to that transaction;
•Southern Union’s local distribution operations beginning March 26, 2012;
•our natural gas compression operations;
•an approximate 33% non-operating interest in PES, a refining joint venture, effective upon our acquisition of Sunoco on October 5, 2012;
•our investment in Regency related to the Regency common and Class F units received by Southern Union in exchange of its interest in Southern Union
Gathering Company, LLC to Regency on April 30, 2013; and
•our natural gas marketing operations.
The decrease in operating expenses for the year ended December 31, 2013 compared to last year was primarily due to the recognition of $18 million of
operating expenses from our retail propane operations prior to the deconsolidation of those operations in January 2012.
Selling, general and administrative expenses include corporate expenses as well as amounts related to the retail propane, local distribution and natural gas
compression operations.
Adjusted EBITDA related to discontinued operations reflected the results of Southern Union's local distribution operations.
Adjusted EBITDA related to unconsolidated affiliates reflected the results from our investments in AmeriGas, PES and Regency beginning in January 2012,
October 2012 and April 2013, respectively. The increase in Adjusted EBITDA related to unconsolidated affiliates was primarily related to our investments in
AmeriGas and Regency. Additional information related to unconsolidated affiliates is provided above in “Supplemental Information on Unconsolidated
Affiliates.”
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