Energy Transfer 2010 Annual Report Download - page 59

Our Partnership Agreement treats a distribution of capital surplus as the repayment of the initial unit price from
the initial public offering, which is a return of capital. The initial public offering price per Common Unit less any
distributions of capital surplus per unit is referred to as the “unrecovered capital.”
If we combine our units into fewer units or subdivide our units into a greater number of units, we will
proportionately adjust our minimum quarterly distribution; our target cash distribution levels; and our
unrecovered capital. For example, if a two-for-one split of our Common Units should occur, our unrecovered
capital would be reduced to 50% of the initial level. We will not make any adjustment by reason of our issuance
of additional units for cash or property.
In addition, if legislation is enacted or if existing law is modified or interpreted in a manner that causes us to
become taxable as a corporation or otherwise subject to taxation as an entity for federal, state or local income tax
purposes, we will reduce our minimum quarterly distribution and the target cash distribution levels by
multiplying the same by one minus the sum of the highest marginal federal corporate income tax rate that could
apply and any increase in the effective overall state and local income tax rates.
The total amount of distributions declared is reflected in Note 7 to our consolidated financial statements. All
distributions were made from Available Cash from our operating surplus.
Recent Sales of Unregistered Securities
None.
Issuer Purchases of Equity Securities
The following table discloses purchases of our Common Units made by us or on our behalf for the quarter ended
December 31, 2010.
Period
Total Number
of Units
Purchased (1)
Average
Price Paid
per Unit
Total Number of
Units Purchased as
Part of Publicly
Announced Plans
or Programs
Maximum Number (or
Approximate Dollar Value)
of Units that May Yet Be
Purchased Under
the Plans or Programs
October 1 – October 31 6,137 $ 49.59 N/A N/A
November 1 - November 30 — — N/A N/A
December 1 - December 31 89,406 50.97 N/A N/A
Total 95,543 $ 50.88 N/A N/A
(1) Pursuant to the terms of our equity incentive plans, to the extent the Partnership is required to withhold
federal, state, local or foreign taxes in connection with any grant of an award, the issuance of Common Units
upon the vesting of an award, or payment made to a plan participant, it is a condition to the receipt of such
payment that the plan participant make arrangements satisfactory to the Partnership for the payment of taxes.
A plan participant may relinquish a portion of the Common Units to which the participant is entitled in
connection with the issuance of Common Units upon vesting of an award as payment for such taxes. During
the three months ended December 31, 2010, certain of the participants in the 2004 Unit Plan and the 2008
Long-Term Incentive Plan (the “2008 Incentive Plan”) elected to have a portion of the Common Units to
which they were entitled upon vesting of restricted units withheld by the Partnership to satisfy the
Partnership’s tax withholding obligations. None of the Common Units delivered to recipients of unit awards
upon vesting were purchased by the Partnership through a publicly announced open-market plan or program.
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