Energy Transfer 2015 Annual Report Download - page 89

Table of Contents
Year Ended December 31, 2014 Compared to the Year Ended December 31, 2013
Consolidated Results
Years Ended December 31,
2014
2013
Change
Segment Adjusted EBITDA:
Intrastate transportation and storage $ 559
$ 521
$ 38
Interstate transportation and storage 1,212
1,368
(156)
Midstream 1,318
757
561
Liquids transportation and services 591
350
241
Investment in Sunoco Logistics 971
871
100
Retail marketing 731
325
406
All other 328
212
116
Total 5,710
4,404
1,306
Depreciation, depletion and amortization (1,669)
(1,296)
(373)
Interest expense, net of interest capitalized (1,165)
(1,013)
(152)
Gain on sale of AmeriGas common units 177
87
90
Impairment losses (370)
(689)
319
Gains (losses) on interest rate derivatives (157)
44
(201)
Non-cash compensation expense (68)
(54)
(14)
Unrealized gains on commodity risk management activities 112
42
70
Inventory valuation adjustments (473)
3
(476)
Losses on extinguishments of debt (25)
(7)
(18)
Non-operating environmental remediation —
(168)
168
Adjusted EBITDA related to discontinued operations (27)
(76)
49
Adjusted EBITDA related to unconsolidated affiliates (748)
(722)
(26)
Equity in earnings of unconsolidated affiliates 332
236
96
Other, net (36)
19
(55)
Income from continuing operations before income tax expense 1,593
810
783
Income tax expense from continuing operations (358)
(97)
(261)
Income from continuing operations 1,235
713
522
Income from discontinued operations 64
33
31
Net income $ 1,299
$ 746
$ 553
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, partially offset by a decrease in depreciation and amortization of
$39 million related to the Lake Charles LNG Transaction.
 During the year ended December 31, 2014 and 2013, we sold 18.9 million and 7.5 million, respectively, of 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, 2014, the Partnership’s remaining interest in
AmeriGas common units consisted of 3.1 million units held by a wholly-owned captive insurance company.
 In 2014, a $370 million goodwill impairment was recorded related to the Permian Basin gathering and processing operations. The decline
in estimated fair value of that reporting unit was primarily driven by a significant decline in commodity prices in the fourth quarter of 2014, and the resulting
impact to future commodity prices as well as increases in future estimated operations and maintenance expenses. An assessment of these factors in the fourth
quarter of 2014 led to a conclusion that the estimated fair value of the Permian reporting unit was less than its carrying amount.
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