Energy Transfer 2010 Annual Report Download - page 171

We recognized $47.4 million of unrealized losses, $18.6 million of unrealized losses and $35.5 million of
unrealized gains on commodity derivatives not in fair value hedging relationships (including the ineffective
portion of commodity derivatives in cash flow hedging relationships and amounts classified as trading
activity) for the years ended December 31, 2010, 2009 and 2008, respectively. In addition, for the years
ended December 31, 2010 and 2009, we recognized unrealized gains of $17.4 million and $48.6 million,
respectively, on commodity derivatives and related hedged inventory accounted for as fair value hedges.
11. RETIREMENT BENEFITS:
We sponsor a 401(k) savings plan, which covers virtually all employees. Employer matching contributions
are calculated using a formula based on employee contributions. Prior to 2009, employer matching
contributions were discretionary. We made matching contributions of $9.8 million, $9.8 million and $9.7
million to the 401(k) savings plan for the years ended December 31, 2010, 2009 and 2008, respectively.
12. RELATED PARTY TRANSACTIONS:
As discussed in Note 4, Regency became a related party on May 26, 2010. We provide Regency with certain
natural gas sales and transportation services and compression equipment and Regency provides us with
certain contract compression services. For the period from May 26, 2010 to December 31, 2010, we
recorded revenue of $4.0 million, costs of products sold of $4.0 million and operating expenses of $0.5
million related to transactions with Regency.
We recorded $6.3 million, $0.5 million and $0.5 million from ETE for the provision of various general and
administrative services for ETE’s benefit for the years ended December 31, 2010, 2009 and 2008,
respectively. The increase recorded in the current year was the result of increased service fees related to the
provision of various general and administrative services for Regency which was acquired by ETE in 2010.
Sales of $26.0 million and cost of products sold of $20.5 million are included in our consolidated statement
of operations related to transactions with FEP, our unconsolidated affiliate.
Enterprise currently owns approximately 17.6% of the outstanding common units of ETE. We and
Enterprise transport natural gas on each other’s pipelines, share operating expenses on jointly-owned
pipelines and we sell natural gas to Enterprise. Our propane operations routinely buy and sell product with
Enterprise. The following table presents sales to and purchase from affiliates of Enterprise:
Years Ended December 31,
2010 2009 2008
Natural Gas Operations:
Sales $ 538,657 $ 414,333 $ 154,272
Purchases 23,592 48,528 115,228
Propane Operations:
Sales 15,527 19,961 22,211
Purchases 415,897 343,540 493,809
Our propane operations purchase a portion of our propane requirements from Enterprise pursuant to an
agreement that was extended until March 2015, and includes an option to extend the agreement for an
additional year. As of December 31, 2010 and 2009, Titan had forward mark-to-market derivatives for
approximately 1.7 million and 6.1 million gallons of propane at a fair value asset of $0.2 million and $3.3
million, respectively, with Enterprise. In addition, as of December 31, 2010 and 2009, Titan had forward
derivatives accounted for as cash flow hedges of 32.5 million and 20.5 million gallons of propane at a fair
value asset of $6.6 million and $8.4 million, respectively, with Enterprise.
F-45