XML 33 R22.htm IDEA: XBRL DOCUMENT v3.8.0.1
Reportable Segments
 12 Months Ended
Dec. 31, 2016
Reportable Segments [Abstract]  
Reportable Segments
REPORTABLE SEGMENTS:
Subsequent to ETE’s acquisition of a controlling interest in Sunoco LP, our financial statements reflect the following reportable business segments:
•
Investment in ETP, including the consolidated operations of ETP;
•
Investment in Sunoco LP, including the consolidated operations of Sunoco LP;
•
Investment in Lake Charles LNG, including the operations of Lake Charles LNG; and
•
Corporate and Other, including the following:
•
activities of the Parent Company; and
•
the goodwill and property, plant and equipment fair value adjustments recorded as a result of the 2004 reverse acquisition of Heritage Propane Partners, L.P.
ETP completed its acquisition of Regency in April 2015; therefore, the Investment in ETP segment amounts have been retrospectively adjusted to reflect Regency for the periods presented.
The Investment in Sunoco LP segment reflects the results of Sunoco LP beginning August 29, 2014, the date that ETP originally obtained control of Sunoco LP. ETE’s consolidated results reflect the elimination of MACS, Sunoco, LLC, Susser and Sunoco Retail LLC for the periods during which those entities were included in the consolidated results of both ETP and Sunoco LP. In addition, subsequent to July 2015, ETP holds an equity method investment in Sunoco, LLC, and a continuing investment in Sunoco LP the equity in earnings from which is also eliminated in ETE’s consolidated financial statements.
We define Segment Adjusted EBITDA as earnings before interest, taxes, depreciation, depletion, amortization and other non-cash items, such as non-cash compensation expense, gains and losses on disposals of assets, the allowance for equity funds used during construction, unrealized gains and losses on commodity risk management activities, non-cash impairment charges, losses on extinguishments of debt and other non-operating income or expense items. Unrealized gains and losses on commodity risk management activities include unrealized gains and losses on commodity derivatives and inventory fair value adjustments (excluding lower of cost or market adjustments). Segment Adjusted EBITDA reflects amounts for unconsolidated affiliates based on the Partnership’s proportionate ownership.
Based on the change in our reportable segments we have recast the presentation of our segment results for the prior years to be consistent with the current year presentation.
Eliminations in the tables below include the following:
•
ETP’s Segment Adjusted EBITDA reflected the results of Lake Charles LNG prior to the Lake Charles LNG Transaction, which was effective January 1, 2014. The Investment in Lake Charles LNG segment reflected the results of operations of Lake Charles LNG for all periods presented. Consequently, the results of operations of Lake Charles LNG were reflected in two segments for the year ended December 31, 2013. Therefore, the results of Lake Charles LNG were included in eliminations for 2013.
•
MACS, Sunoco LLC, Susser and Sunoco Retail LLC for the periods during which those entities were included in the consolidated results of both ETP and Sunoco LP, as discussed above.
 
Years Ended December 31,
 
2016
 
2015
 
2014
Revenues:
 
 
 
 
 
Investment in ETP:
 
 
 
 
 
Revenues from external customers
$
21,618

 
$
34,156

 
$
55,475

Intersegment revenues
209

 
136

 
—

 
21,827

 
34,292

 
55,475

Investment in Sunoco LP:
 
 
 
 
 
Revenues from external customers
8,287

 
10,527

 
4,291

Intersegment revenues
9

 
11

 
—

 
8,296

 
10,538

 
4,291

Investment in Lake Charles LNG:
 
 
 
 
 
Revenues from external customers
197

 
216

 
216

 


 


 


Adjustments and Eliminations:
(218
)
 
(10,842
)
 
(7,343
)
Total revenues
$
30,102

 
$
34,204

 
$
52,639

 
 
 
 
 
 
Costs of products sold:
 
 
 
 
 
Investment in ETP
$
15,394

 
$
27,029

 
$
48,414

Investment in Sunoco LP
7,459

 
9,902

 
4,214

Adjustments and Eliminations
(217
)
 
(9,496
)
 
(6,767
)
Total costs of products sold
$
22,636

 
$
27,435

 
$
45,861

 
 
 
 
 
 
Depreciation, depletion and amortization:
 
 
 
 
 
Investment in ETP
$
1,986

 
$
1,929

 
$
1,669

Investment in Sunoco LP
126

 
103

 
31

Investment in Lake Charles LNG
39

 
39

 
39

Corporate and Other
15

 
17

 
16

Adjustments and Eliminations
—

 
(184
)
 
(86
)
Total depreciation, depletion and amortization
$
2,166

 
$
1,904

 
$
1,669

 
Years Ended December 31,
 
2016
 
2015
 
2014
Equity in earnings of unconsolidated affiliates:
 
 
 
 
 
Investment in ETP
$
336

 
$
469

 
$
332

Adjustments and Eliminations
(66
)
 
(193
)
 
—

Total equity in earnings of unconsolidated affiliates
$
270

 
$
276

 
$
332

 
Years Ended December 31,
 
2016
 
2015
 
2014
Segment Adjusted EBITDA:
 
 
 
 
 
Investment in ETP
$
5,605

 
$
5,714

 
$
5,710

Investment in Sunoco LP
665

 
719

 
332

Investment in Lake Charles LNG
179

 
196

 
195

Corporate and Other
(170
)
 
(104
)
 
(97
)
Adjustments and Eliminations
(272
)
 
(590
)
 
(300
)
Total Segment Adjusted EBITDA
6,007

 
5,935

 
5,840

Depreciation, depletion and amortization
(2,166
)
 
(1,904
)
 
(1,669
)
Interest expense, net of interest capitalized
(1,803
)
 
(1,621
)
 
(1,368
)
Gains on acquisitions
83

 
—

 
—

Gain on sale of AmeriGas common units
—

 
—

 
177

Impairment of investment in affiliate
(308
)
 
—

 
—

Impairment losses
(970
)
 
(339
)
 
(370
)
Losses on interest rate derivatives
(12
)
 
(18
)
 
(157
)
Non-cash unit-based compensation expense
(70
)
 
(91
)
 
(82
)
Unrealized gains (losses) on commodity risk management activities
(136
)
 
(65
)
 
116

Losses on extinguishments of debt
—

 
(43
)
 
(25
)
Inventory valuation adjustments
267

 
(229
)
 
(445
)
Adjusted EBITDA related to discontinued operations
(293
)
 
(345
)
 
(208
)
Adjusted EBITDA related to unconsolidated affiliates
(675
)
 
(713
)
 
(748
)
Equity in earnings of unconsolidated affiliates
270

 
276

 
332

Other, net
78

 
21

 
(74
)
Income from continuing operations before income tax expense
$
272

 
$
864

 
$
1,319

 
December 31,
 
2016
 
2015
 
2014
Total assets:
 
 
 
 
 
Investment in ETP
$
70,191

 
$
65,173

 
$
62,518

Investment in Sunoco LP
8,701

 
8,842

 
8,773

Investment in Lake Charles LNG
1,508

 
1,369

 
1,210

Corporate and Other
711

 
638

 
1,119

Adjustments and Eliminations
(2,100
)
 
(4,833
)
 
(9,341
)
Total
$
79,011

 
$
71,189

 
$
64,279


 
Years Ended December 31,
 
2016
 
2015
 
2014
Additions to property, plant and equipment, net of contributions in aid of construction costs (accrual basis):
 
 
 
 
 
Investment in ETP
$
5,810

 
$
8,167

 
$
5,494

Investment in Sunoco LP
439

 
491

 
154

Investment in Lake Charles LNG
—

 
1

 
1

Adjustments and Eliminations
—

 
(123
)
 
(90
)
Total
$
6,249

 
$
8,536

 
$
5,559


 
December 31,
 
2016
 
2015
 
2014
Advances to and investments in affiliates:
 
 
 
 
 
Investment in ETP
$
4,280

 
$
5,003

 
$
3,760

Adjustments and Eliminations
(1,240
)
 
(1,541
)
 
(101
)
Total
$
3,040

 
$
3,462

 
$
3,659

The following tables provide revenues, grouped by similar products and services, for our reportable segments. These amounts include intersegment revenues for transactions between ETP and Sunoco LP.
Investment in ETP
 
Years Ended December 31,
 
2016
 
2015
 
2014
Intrastate Transportation and Storage
$
2,155

 
$
1,912

 
$
2,645

Interstate Transportation and Storage
946

 
1,008

 
1,057

Midstream
2,342

 
2,607

 
4,770

NGL and refined products transportation and services
5,973

 
4,569

 
4,746

Crude oil transportation and services
7,539

 
8,980

 
16,904

All Other
2,872

 
15,216

 
25,353

Total revenues
21,827

 
34,292

 
55,475

Less: Intersegment revenues
209

 
136

 
—

Revenues from external customers
$
21,618

 
$
34,156

 
$
55,475

Investment in Sunoco LP
 
Years Ended December 31,
 
2016
 
2015
 
2014
Retail operations
$
301

 
$
334

 
$
43

Wholesale operations
7,995

 
10,204

 
4,248

Total revenues
8,296

 
10,538

 
4,291

Less: Intersegment revenues
9

 
11

 
—

Revenues from external customers
$
8,287

 
$
10,527

 
$
4,291

Investment in Lake Charles LNG
Lake Charles LNG’s revenues of $197 million, $216 million and $216 million for the years ended December 31, 2016, 2015 and 2014, respectively, were related to LNG terminalling.