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:


•	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,
	2017			2016			2015
Revenues:
Investment in ETP:
Revenues from external customers	$	28,613		$	21,618		$	34,156
Intersegment revenues	441			209			136
	29,054			21,827			34,292
Investment in Sunoco LP:
Revenues from external customers	11,713			9,977			12,419
Intersegment revenues	10			9			11
	11,723			9,986			12,430
Investment in Lake Charles LNG:
Revenues from external customers	197			197			216

Adjustments and Eliminations:	(451		)	(218		)	(10,842		)
Total revenues	$	40,523		$	31,792		$	36,096

Costs of products sold:
Investment in ETP	$	20,801		$	15,080		$	26,714
Investment in Sunoco LP	10,615			8,830			11,450
Adjustments and Eliminations	(450		)	(217		)	(9,496		)
Total costs of products sold	$	30,966		$	23,693		$	28,668

Depreciation, depletion and amortization:
Investment in ETP	$	2,332		$	1,986		$	1,929
Investment in Sunoco LP	169			176			150
Investment in Lake Charles LNG	39			39			39
Corporate and Other	14			15			17
Adjustments and Eliminations	—			—			(184		)
Total depreciation, depletion and amortization	$	2,554		$	2,216		$	1,951



	Years Ended December 31,
	2017			2016		2015
Equity in earnings of unconsolidated affiliates:
Investment in ETP	$	156		$	59	$	469
Adjustments and Eliminations	(12		)	211		(193		)
Total equity in earnings of unconsolidated affiliates	$	144		$	270	$	276



	Years Ended December 31,
	2017			2016			2015
Segment Adjusted EBITDA:
Investment in ETP	$	6,712		$	5,733		$	5,517
Investment in Sunoco LP	732			665			719
Investment in Lake Charles LNG	175			179			196
Corporate and Other	(31		)	(170		)	(104		)
Adjustments and Eliminations	(268		)	(272		)	(590		)
Total Segment Adjusted EBITDA	7,320			6,135			5,738
Depreciation, depletion and amortization	(2,554		)	(2,216		)	(1,951		)
Interest expense, net of interest capitalized	(1,922		)	(1,804		)	(1,622		)
Gains on acquisitions	—			83			—
Impairment of investments in unconsolidated affiliates	(313		)	(308		)	—
Impairment losses	(1,039		)	(1,040		)	(339		)
Losses on interest rate derivatives	(37		)	(12		)	(18		)
Non-cash unit-based compensation expense	(99		)	(70		)	(91		)
Unrealized gains (losses) on commodity risk management activities	59			(136		)	(65		)
Losses on extinguishments of debt	(89		)	—			(43		)
Inventory valuation adjustments	24			97			(67		)
Adjusted EBITDA related to discontinued operations	(223		)	(199		)	(228		)
Adjusted EBITDA related to unconsolidated affiliates	(716		)	(675		)	(713		)
Equity in earnings of unconsolidated affiliates	144			270			276
Other, net	155			79			23
Income from continuing operations before income tax benefit	$	710		$	204		$	900
Income tax benefit from continuing operations	(1,833		)	(258		)	(123		)
Income from continuing operations	2,543			462			1,023
Income (loss) from discontinued operations, net of tax	(177		)	(462		)	38
Net income	$	2,366		$	—		$	1,061



	December 31,
	2017			2016			2015
Total assets:
Investment in ETP	$	77,965		$	70,105		$	65,128
Investment in Sunoco LP	8,344			8,701			8,842
Investment in Lake Charles LNG	1,646			1,508			1,369
Corporate and Other	598			711			638
Adjustments and Eliminations	(2,307		)	(2,100		)	(4,833		)
Total	$	86,246		$	78,925		$	71,144



	Years Ended December 31,
	2017		2016		2015
Additions to property, plant and equipment, net of contributions in aid of construction costs (capital expenditures related to the Partnership’s proportionate ownership on an accrual basis):
Investment in ETP	$	5,901	$	5,810	$	8,167
Investment in Sunoco LP	103		119		178
Investment in Lake Charles LNG	2		—		1
Adjustments and Eliminations	—		—		(123		)
Total	$	6,006	$	5,929	$	8,223



	December 31,
	2017			2016			2015
Advances to and investments in affiliates:
Investment in ETP	$	3,816		$	4,280		$	5,003
Adjustments and Eliminations	(1,111		)	(1,240		)	(1,541		)
Total	$	2,705		$	3,040		$	3,462

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,
	2017		2016		2015
Intrastate Transportation and Storage	$	2,891	$	2,155	$	1,912
Interstate Transportation and Storage	915		946		1,008
Midstream	2,510		2,342		2,607
NGL and refined products transportation and services	8,326		5,973		4,569
Crude oil transportation and services	11,672		7,539		8,980
All Other	2,740		2,872		15,216
Total revenues	29,054		21,827		34,292
Less: Intersegment revenues	441		209		136
Revenues from external customers	$	28,613	$	21,618	$	34,156

Investment in Sunoco LP



	Years Ended December 31,
	2017		2016		2015
Retail operations	$	2,263	$	1,991	$	2,226
Wholesale operations	9,460		7,995		10,204
Total revenues	11,723		9,986		12,430
Less: Intersegment revenues	10		9		11
Revenues from external customers	$	11,713	$	9,977	$	12,419

Investment in Lake Charles LNG

Lake Charles LNG’s revenues of $197 million, $197 million and $216 million for the years ended December 31, 2017, 2016 and 2015, respectively, were related to LNG terminalling.