Energy Transfer 2015 Annual Report Download - page 108

Table of Contents
(1) Interest payments on long-term debt are based on the principal amount of debt obligations as of December 31, 2015. With respect to variable rate debt,
the interest payments were estimated using the interest rate as of December 31, 2015. To the extent interest rates change, our contractual obligations for
interest payments will change. See “Item 7A. Quantitative and Qualitative Disclosures About Market Risk” for further discussion.
(2) We define a purchase commitment as an agreement to purchase goods or services that is enforceable and legally binding (unconditional) on us that
specifies all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the
approximate timing of the transactions. We have long and short-term product purchase obligations for refined product and energy commodities with
third-party suppliers. These purchase obligations are entered into at either variable or fixed prices. The purchase prices that we are obligated to pay under
variable price contracts approximate market prices at the time we take delivery of the volumes. Our estimated future variable price contract payment
obligations are based on the December 31, 2015 market price of the applicable commodity applied to future volume commitments. Actual future
payment obligations may vary depending on market prices at the time of delivery. The purchase prices that we are obligated to pay under fixed price
contracts are established at the inception of the contract. Our estimated future fixed price contract payment obligations are based on the contracted fixed
price under each commodity contract. Obligations shown in the table represent estimated payment obligations under these contracts for the periods
indicated.
(3) Assumes the outstanding ETP Preferred Units are redeemed for cash on September 2, 2029.
(4) Expected contributions to fund our pension and postretirement benefit plans were included in “Other” above. Environmental liabilities, asset retirement
obligations, unrecognized tax benefits, contingency accruals and deferred revenue, which were included in “Other non-current liabilities” our
consolidated balance sheets were excluded from the table above as such amounts do not represent contractual obligations or, in some cases, the amount
and/or timing of the cash payments is uncertain.
(5) Excludes non-current deferred tax liabilities of $4.08 billion due to uncertainty of the timing of future cash flows for such liabilities.
Cash Distributions
Cash Distributions Paid by ETP
We expect to use substantially all of our cash provided by operating and financing activities from the Operating Companies to provide distributions to our
Unitholders. Under our Partnership Agreement, we will distribute to our partners within 45 days after the end of each calendar quarter, an amount equal to all
of our Available Cash (as defined in our Partnership Agreement) for such quarter. Available Cash generally means, with respect to any quarter of the
Partnership, all cash on hand at the end of such quarter less the amount of cash reserves established by the General Partner in its reasonable discretion that is
necessary or appropriate to provide for future cash requirements. Our commitment to our Unitholders is to distribute the increase in our cash flow while
maintaining prudent reserves for our operations.
Distributions declared during the periods presented were as follows:
Quarter Ended
Record Date
Payment Date
Rate
December 31, 2012
February 7, 2013
February 14, 2013
$ 0.8938
March 31, 2013
May 6, 2013
May 15, 2013
0.8938
June 30, 2013
August 5, 2013
August 14, 2013
0.8938
September 30, 2013
November 4, 2013
November 14, 2013
0.9050
December 31, 2013
February 7, 2014
February 14, 2014
0.9200
March 31, 2014
May 5, 2014
May 15, 2014
0.9350
June 30, 2014
August 4, 2014
August 14, 2014
0.9550
September 30, 2014
November 3, 2014
November 14, 2014
0.9750
December 31, 2014
February 6, 2015
February 13, 2015
0.9950
March 31, 2015
May 8, 2015
May 15, 2015
1.0150
June 30, 2015
August 6, 2015
August 14, 2015
1.0350
September 30, 2015
November 5, 2015
November 16, 2015
1.0550
December 31, 2015
February 8, 2016
February 16, 2016
1.0550
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