Energy Transfer 2010 Annual Report Download - page 85

On January 27, 2011, we declared a cash distribution for the three months ended December 31, 2010 of $0.89375
per Common Unit, or $3.575 annualized. We paid this distribution on February 14, 2011 to Unitholders of record
at the close of business on February 7, 2011.
The total amounts of distributions declared during the periods presented (all from Available Cash from our
operating surplus and are shown in the year with respect to which they relate) are as follows (in thousands):
Years Ended December 31,
2010 2009 2008
Limited Partners:
Common Units $ 676,798 $ 629,263 $ 537,731
Class E Units 12,484 12,484 12,484
General Partner Interest 19,524 19,505 17,322
Incentive Distribution Rights 375,979 350,486 298,575
Total distributions declared $ 1,084,785 $ 1,011,738 $ 866,112
New Accounting Standards
None.
Estimates and Critical Accounting Policies
The selection and application of accounting policies is an important process that has developed as our business
activities have evolved and as the accounting rules have developed. Accounting rules generally do not involve a
selection among alternatives, but involve an implementation and interpretation of existing rules, and the use of
judgment applied to the specific set of circumstances existing in our business. We make every effort to properly
comply with all applicable rules, and we believe the proper implementation and consistent application of the
accounting rules are critical. Our critical accounting policies are discussed below. For further details on our
accounting policies see Note 2 to our consolidated financial statements.
Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to
make estimates and assumptions that affect the reported amounts of assets and liabilities and the accrual for and
disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. The natural gas industry conducts its business by processing
actual transactions at the end of the month following the month of delivery. Consequently, the most current
month’s financial results for the midstream and intrastate transportation and storage segments are estimated using
volume estimates and market prices. Any differences between estimated results and actual results are recognized
in the following month’s financial statements. Management believes that the operating results estimated for the
year ended December 31, 2010 represent the actual results in all material respects.
Some of the other significant estimates made by management include, but are not limited to, the timing of certain
forecasted transactions that are hedged, the fair value of derivative instruments, useful lives for depreciation and
amortization, purchase accounting allocations and subsequent realizability of intangible assets, fair value
measurements used in the goodwill impairment test, market value of inventory, assets and liabilities resulting
from the regulated ratemaking process, contingency reserves and environmental reserves. Actual results could
differ from those estimates.
Revenue Recognition.Revenues for sales of natural gas, NGLs including propane, and propane appliances,
parts, and fittings are recognized at the later of the time of delivery of the product to the customer or the time of
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