Energy Transfer 2015 Annual Report Download - page 78

Table of Contents
Year Ended December 31, 2015 Compared to the Year Ended December 31, 2014
Consolidated Results
Years Ended December 31,
2015
2014
Change
Segment Adjusted EBITDA:
Intrastate transportation and storage $ 543
$ 559
$ (16)
Interstate transportation and storage 1,155
1,212
(57)
Midstream 1,250
1,318
(68)
Liquids transportation and services 731
591
140
Investment in Sunoco Logistics 1,153
971
182
Retail marketing 583
731
(148)
All other 299
328
(29)
Total 5,714
5,710
4
Depreciation, depletion and amortization (1,929)
(1,669)
(260)
Interest expense, net of interest capitalized (1,291)
(1,165)
(126)
Gain on sale of AmeriGas common units —
177
(177)
Impairment losses (339)
(370)
31
Losses on interest rate derivatives (18)
(157)
139
Non-cash compensation expense (79)
(68)
(11)
Unrealized gains (losses) on commodity risk management activities (65)
112
(177)
Inventory valuation adjustments (104)
(473)
369
Losses on extinguishments of debt (43)
(25)
(18)
Adjusted EBITDA related to discontinued operations —
(27)
27
Adjusted EBITDA related to unconsolidated affiliates (937)
(748)
(189)
Equity in earnings of unconsolidated affiliates 469
332
137
Other, net 20
(36)
56
Income from continuing operations before income tax expense 1,398
1,593
(195)
Income tax (expense) benefit from continuing operations 123
(358)
481
Income from continuing operations 1,521
1,235
286
Income from discontinued operations —
64
(64)
Net income $ 1,521
$ 1,299
$ 222
See the detailed discussion of Segment Adjusted EBITDA below.
Depreciation, depletion and amortization increased primarily due to additional depreciation from assets recently
placed in service and recent acquisitions, including Regency’s acquisitions in 2014.
 During the year ended December 31, 2014 we sold 18.9 million the AmeriGas common units that were originally
received in connection with the contribution of our propane business to AmeriGas in January 2012. We recorded a gain based on the sale proceeds in excess
of the carrying amount of the units sold. As of December 31, 2015, the Partnership’s remaining interest in AmeriGas common units consisted of 3.1 million
units held by a wholly-owned captive insurance company.
 In 2015, we recorded goodwill impairments of (i) $99 million related to Transwestern due primarily to the market declines in current and
expected future commodity prices in the fourth quarter of 2015, (ii) $106 million related to Lone Star Refinery Services due primarily to changes in
assumptions related to potential future revenues as well as the market declines in current and expected future commodity prices, (iii) $110 million of fixed
asset impairments related to Lone Star NGL Refinery Services primarily due to the economic obsolescence identified as a result of low utilization and
expected decrease in future cash flows, and (iv) $24 million of intangible asset impairments related to Lone Star NGL Refinery Services primarily due to the
economic obsolescence identified as a result of expected decrease in future cash flows. In 2014, a $370 million goodwill impairment
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