Energy Transfer 2015 Annual Report Download - page 88

Table of Contents
All Other
Years Ended December 31,
2015
2014
Change
Revenue $ 3,292
$ 3,331
$ (39)
Cost of products sold 2,855
2,975
(120)
Gross margin 437
356
81
Unrealized gains on commodity risk management activities (3)
(14)
11
Operating expenses, excluding non-cash compensation expense (93)
(106)
13
Selling, general and administrative expenses, excluding non-cash compensation expense (138)
(146)
8
Adjusted EBITDA related to discontinued operations —
27
(27)
Adjusted EBITDA related to unconsolidated affiliates 83
146
(63)
Other 75
73
2
Elimination (62)
(8)
(54)
Segment Adjusted EBITDA $ 299
$ 328
$ (29)
Amounts reflected in our all other segment primarily include:
• our natural gas marketing and compression operations;
• an approximate 33% non-operating interest in PES, a refining joint venture;
• our investment in Coal Handling, an entity that owns and operates end-user coal handling facilities; and
• our investment in AmeriGas until August 2014.
 For the year ended December 31, 2015 compared to the prior year, Segment Adjusted EBITDA decreased due to the net impact of
the following:
• a decrease of $63 million in Adjusted EBITDA related to unconsolidated affiliates, primarily due to a decrease of $56 million related to our investment
in AmeriGas driven by a reduction in our investment due to the sale of AmeriGas common units in 2014; and
• a decrease in Adjusted EBITDA related to discontinued operations of $27 million in the prior period related to a marketing business that was sold
effective April 1, 2014; offset by
• an increase of $21 million related to our contract services operations primarily due to an increase in revenue-generating horsepower; and
• an increase of $17 million related to our natural resources operations, for which the period reflected only a partial period due to the acquisition of those
operations in March 2014.
In connection with the Lake Charles LNG Transaction, ETP agreed to continue to provide management services for ETE through 2015 in relation to both
Lake Charles LNG’s regasification facility and the development of a liquefaction project at Lake Charles LNG’s facility, for which ETE has agreed to pay
incremental management fees to ETP of $75 million per year for the years ending December 31, 2015 and 2014. These fees were reflected in “Other” in the
“All other” segment and for the years ended December 31, 2015 and 2014 were reflected as an offset to operating expenses of $25 million and selling, general
and administrative expenses of $50 million in the consolidated statements of operations.
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