Energy Transfer 2015 Annual Report Download - page 177

Table of Contents
Non-cash investing and financing activities and supplemental cash flow information are as follows:
Years Ended December 31,
2015
2014
2013
NON-CASH INVESTING ACTIVITIES:
Accrued capital expenditures $ 896
$ 643
$ 226
Net gains from subsidiary common unit transactions 300
175
—
NON-CASH FINANCING ACTIVITIES:
Issuance of Common Units in connection with the Regency Merger $ 9,250
$ —
$ —
Issuance of Class H Units in connection with the Bakken Pipeline Transaction 1,946
—
—
Issuance of Common Units in connection with the Susser Merger —
908
—
Issuance of Common Units in connection with the ETP Holdco Acquisition —
—
2,464
Issuance of Class H Units —
—
1,514
Contribution of property, plant and equipment from noncontrolling interest 34
—
—
Long-term debt assumed and non-compete agreement notes payable issued in
acquisitions —
564
—
Predecessor equity issuances of common units in connection with Regency’s
acquisitions —
4,281
—
Long-term debt assumed or exchanged in Regency’s acquisitions —
2,386
—
Redemption of Common Units in connection with the Bakken Pipeline Transaction 999
—
—
Redemption of Common Units in connection with the Sunoco LP Exchange 52
—
—
Redemption of Common Units in connection with the Lake Charles LNG
Transaction —
1,167
—
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest, net of interest capitalized $ 1,467
$ 1,232
$ 1,049
Cash paid for income taxes 71
344
58
Accounts Receivable
Our midstream, NGL and intrastate transportation and storage operations deal with a variety of counterparties across the energy sector, some of which are
investment grade, and most of which are not. Internal credit ratings and credit limits are assigned for all counterparties and limits are monitored against
credit exposure. Letters of credit or prepayments may be required from those counterparties that are not investment grade depending on the internal
credit rating and level of commercial activity with the counterparty. Master setoff agreements are put in place with counterparties where appropriate to
mitigate risk. Bad debt expense related to these receivables is recognized at the time an account is deemed uncollectible.
Our investment in Sunoco Logistics segment extends credit terms to certain customers after review of various credit indicators, including the customer’s
credit rating. Based on that review, a letter of credit or other security may be required. Outstanding customer receivable balances are regularly reviewed
for possible non-payment indicators and reserves are recorded for doubtful accounts based upon management’s estimate of collectability at the time of
review. Actual balances are charged against the reserve when all collection efforts have been exhausted.
We have a concentration of customers in the electric and gas utility industries as well as oil and natural gas producers and municipalities. This
concentration of customers may impact our overall exposure to credit risk, either positively or negatively, in that the customers may be similarly affected
by changes in economic or other conditions. We manage trade credit risk to mitigate credit losses and exposure to uncollectible trade receivables.
Prospective and existing customers are reviewed regularly for creditworthiness based upon pre-established standards consistent with FERC filed tariffs to
manage credit risk within approved tolerances. Customers that do not meet minimum credit standards are required to provide additional credit support in
the form of a letter of credit, prepayment, or other forms of security. We establish an allowance for doubtful accounts on trade receivables based on the
expected ultimate recovery of these receivables and considers many factors including historical
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