Energy Transfer 2015 Annual Report Download - page 230

Table of Contents
15. REPORTABLE SEGMENTS:
Our financial statements currently reflect the following reportable segments, which conduct their business in the United States, as follows:
• intrastate transportation and storage;
• interstate transportation and storage;
• midstream;
• liquids transportation and services;
• investment in Sunoco Logistics;
• retail marketing; and
• all other.
Intersegment and intrasegment transactions are generally based on transactions made at market-related rates. Consolidated revenues and expenses reflect
the elimination of all material intercompany transactions.
Revenues from our intrastate transportation and storage segment are primarily reflected in natural gas sales and gathering, transportation and other fees.
Revenues from our interstate transportation and storage segment are primarily reflected in gathering, transportation and other fees. Revenues from our
midstream segment are primarily reflected in natural gas sales, NGL sales and gathering, transportation and other fees. Revenues from our liquids
transportation and services segment are primarily reflected in NGL sales and gathering, transportation and other fees. Revenues from our investment in
Sunoco Logistics segment are primarily reflected in crude sales. Revenues from our retail marketing segment are primarily reflected in refined product
sales.
In connection with the Regency Merger, Regency’s operations were aggregated into ETP’s existing segments. Regency’s gathering and processing
operations were aggregated into our midstream segment. Regency’s natural gas transportation operations were aggregated into our intrastate
transportation and storage and interstate transportation and storage segments. Regency’s contract services and natural resources operations were
aggregated into our all other segment. Additionally, in June 2015, Regency’s 30% equity interest in Lone Star was transferred to ETC OLP.
We report Segment Adjusted EBITDA as a measure of segment performance. We define Segment Adjusted EBITDA as earnings before interest, taxes,
depreciation, depletion, amortization and other non-cash items, such as non-cash compensation expense, gains and losses on disposals of assets, the
allowance for equity funds used during construction, unrealized gains and losses on commodity risk management activities, non-cash impairment
charges, loss on extinguishment of debt, gain on deconsolidation and other non-operating income or expense items. Unrealized gains and losses on
commodity risk management activities include unrealized gains and losses on commodity derivatives and inventory fair value adjustments (excluding
lower of cost or market adjustments). Segment Adjusted EBITDA reflects amounts for unconsolidated affiliates based on the Partnership’s proportionate
ownership.
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