REPORTABLE SEGMENTS

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 USAC, including the consolidated operations of USAC;


•	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.

The Investment in USAC segment reflects the results of USAC beginning April 2018, the date that ETE obtained control of USAC. Also beginning April 2018, ETP holds an equity method investment in USAC, the equity in earnings from which is eliminated in ETE’s consolidated financial statements.

The CDM entities were consolidated subsidiaries of ETP prior to April 2018 and are consolidated subsidiaries of USAC beginning April 2018. Therefore, the results of the CDM entities are included in the Investment in ETP segment prior to April 2018 and in the Investment in USAC segment thereafter.

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, gain on deconsolidation 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 and amounts for less than wholly owned subsidiaries based on 100% of the subsidiaries’ results of operations.

The following tables present financial information by segment:



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017*			2018			2017*
Segment Adjusted EBITDA:
Investment in ETP	$	2,051		$	1,545		$	3,932		$	2,990
Investment in Sunoco LP	140			220			249			375
Investment in USAC	95			—			95			—
Investment in Lake Charles LNG	45			44			88			88
Corporate and Other	(9		)	(9		)	(8		)	(22		)
Adjustments and Eliminations	(60		)	(83		)	(92		)	(137		)
Total	2,262			1,717			4,264			3,294
Depreciation, depletion and amortization	(694		)	(607		)	(1,359		)	(1,235		)
Interest expense, net of interest capitalized	(510		)	(477		)	(976		)	(950		)
Impairment losses	—			(89		)	—			(89		)
Gains (losses) on interest rate derivatives	20			(25		)	72			(20		)
Non-cash compensation expense	(32		)	(20		)	(55		)	(47		)
Unrealized gains (losses) on commodity risk management activities	(265		)	29			(352		)	98
Losses on extinguishments of debt	—			—			(106		)	(25		)
Inventory valuation adjustments	32			(29		)	57			(42		)
Equity in earnings of unconsolidated affiliates	92			49			171			136
Adjusted EBITDA related to unconsolidated affiliates	(168		)	(164		)	(324		)	(349		)
Adjusted EBITDA related to discontinued operations	5			(72		)	25			(103		)
Other, net	(15		)	35			26			47
Income from continuing operations before income tax expense	727			347			1,443			715
Income tax expense from continuing operations	(68		)	(33		)	(58		)	(71		)
Income from continuing operations	659			314			1,385			644
Loss from discontinued operations, net of income taxes	(26		)	(193		)	(263		)	(204		)
Net income	$	633		$	121		$	1,122		$	440

* As adjusted. See Note 1.



	June 30, 2018			December 31, 2017
Assets:
Investment in ETP	$	78,570		$	77,965
Investment in Sunoco LP	5,006			8,344
Investment in USAC	3,785			—
Investment in Lake Charles LNG	1,710			1,646
Corporate and Other	585			598
Adjustments and Eliminations	(2,239		)	(2,307		)
Total assets	$	87,417		$	86,246



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017*			2018			2017*
Revenues:
Investment in ETP:
Revenues from external customers	$	9,298		$	6,485		$	17,383		$	13,292
Intersegment revenues	112			91			307			179
	9,410			6,576			17,690			13,471
Investment in Sunoco LP:
Revenues from external customers	4,606			2,892			8,354			5,697
Intersegment revenues	1			—			2			3
	4,607			2,892			8,356			5,700
Investment in USAC:
Revenues from external customers	165			—			165			—
Intersegment revenues	2			—			2			—
	167			—			167			—
Investment in Lake Charles LNG:
Revenues from external customers	49			50			98			99

Adjustments and Eliminations	(115		)	(91		)	(311		)	(182		)
Total revenues	$	14,118		$	9,427		$	26,000		$	19,088

* As adjusted. See Note 1.

The following tables provide revenues, grouped by similar products and services, for our reportable segments. These amounts include intersegment revenues for transactions between ETP, Sunoco LP, USAC and Lake Charles LNG.

Investment in ETP



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017*		2018		2017*
Intrastate transportation and storage	$	761	$	699	$	1,578	$	1,467
Interstate transportation and storage	323		201		636		432
Midstream	594		633		1,034		1,198
NGL and refined products transportation and services	2,472		1,767		4,930		3,885
Crude oil transportation and services	4,789		2,460		8,520		5,035
All Other	471		816		992		1,454
Total revenues	9,410		6,576		17,690		13,471
Less: Intersegment revenues	112		91		307		179
Revenues from external customers	$	9,298	$	6,485	$	17,383	$	13,292

* As adjusted. See Note 1.

The amounts included in ETP’s NGL and refined products transportation and services operation and the crude oil transportation and services operation have been retrospectively adjusted as a result of the Sunoco Logistics Merger.

Investment in Sunoco LP



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Fuel distribution and marketing	$	4,350	$	2,318	$	7,489	$	4,615
All other	257		574		867		1,085
Total revenues	4,607		2,892		8,356		5,700
Less: Intersegment revenues	1		—		2		3
Revenues from external customers	$	4,606	$	2,892	$	8,354	$	5,697

Investment in USAC



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Contract operations	$	160	$	—	$	160	$	—
Retail parts and services	6		—		6		—
Station installations revenue	1		—		1		—
Total revenues	167		—		167		—
Less: Intersegment revenues	2		—		2		—
Revenues from external customers	$	165	$	—	$	165	$	—

USAC’s revenues for all periods presented were related to the compression services business.

Investment in Lake Charles LNG

Lake Charles LNG’s revenues for all periods presented were related to LNG terminalling.