Energy Transfer 2013 Annual Report Download - page 93

Table of Contents
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 and operating
expenses 4,974
(1,174)
44,119
1,338
(16,677)
32,580
Depreciation and amortization 405
(78)
335
204
(2)
864
Selling, general and administrative 173
(47)
598
42
(56)
710
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
Losses on 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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