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 September 30,						Nine Months Ended September 30,
	2018			2017*			2018			2017*
Segment Adjusted EBITDA:
Investment in ETP	$	2,329		$	1,784		$	6,261		$	4,774
Investment in Sunoco LP	208			199			457			574
Investment in USAC	90			—			185			—
Investment in Lake Charles LNG	43			43			131			131
Corporate and Other	(9		)	(3		)	(17		)	(25		)
Adjustments and Eliminations	(84		)	(74		)	(176		)	(211		)
Total	2,577			1,949			6,841			5,243
Depreciation, depletion and amortization	(750		)	(642		)	(2,109		)	(1,877		)
Interest expense, net of interest capitalized	(535		)	(490		)	(1,511		)	(1,440		)
Impairment losses	—			(10		)	—			(99		)
Gains (losses) on interest rate derivatives	45			(8		)	117			(28		)
Non-cash compensation expense	(27		)	(29		)	(82		)	(76		)
Unrealized gains (losses) on commodity risk management activities	97			(76		)	(255		)	22
Gains on disposal of assets	18			5			14			—
Losses on extinguishments of debt	—			—			(106		)	(25		)
Inventory valuation adjustments	(7		)	50			50			8
Equity in earnings of unconsolidated affiliates	87			92			258			228
Adjusted EBITDA related to unconsolidated affiliates	(179		)	(205		)	(503		)	(554		)
Adjusted EBITDA related to discontinued operations	—			(76		)	25			(179		)
Other, net	15			24			45			76
Income from continuing operations before income tax (expense) benefit	1,341			584			2,784			1,299
Income tax (expense) benefit from continuing operations	52			157			(6		)	86
Income from continuing operations	1,393			741			2,778			1,385
Income (loss) from discontinued operations, net of income taxes	(2		)	17			(265		)	(187		)
Net income	$	1,391		$	758		$	2,513		$	1,198

* As adjusted. See Note 1.



	September 30, 2018			December 31, 2017
Assets:
Investment in ETP	$	79,156		$	77,965
Investment in Sunoco LP	5,148			8,344
Investment in USAC	3,814			—
Investment in Lake Charles LNG	1,746			1,646
Corporate and Other	625			598
Adjustments and Eliminations	(2,302		)	(2,307		)
Total assets	$	88,187		$	86,246



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017*			2018			2017*
Revenues:
Investment in ETP:
Revenues from external customers	$	9,538		$	6,876		$	26,921		$	20,168
Intersegment revenues	103			97			410			276
	9,641			6,973			27,331			20,444
Investment in Sunoco LP:
Revenues from external customers	4,760			3,058			13,114			8,755
Intersegment revenues	1			6			3			9
	4,761			3,064			13,117			8,764
Investment in USAC:
Revenues from external customers	166			—			331			—
Intersegment revenues	3			—			5			—
	169			—			336			—
Investment in Lake Charles LNG:
Revenues from external customers	50			49			148			148

Adjustments and Eliminations	(107		)	(102		)	(418		)	(284		)
Total revenues	$	14,514		$	9,984		$	40,514		$	29,072

* 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 September 30,				Nine Months Ended September 30,
	2018		2017*		2018		2017*
Intrastate transportation and storage	$	846	$	729	$	2,424	$	2,196
Interstate transportation and storage	390		220		1,026		652
Midstream	537		665		1,571		1,863
NGL and refined products transportation and services	2,948		1,989		7,878		5,874
Crude oil transportation and services	4,422		2,714		12,942		7,749
All Other	498		656		1,490		2,110
Total revenues	9,641		6,973		27,331		20,444
Less: Intersegment revenues	103		97		410		276
Revenues from external customers	$	9,538	$	6,876	$	26,921	$	20,168

* 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 September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Fuel distribution and marketing	$	4,494	$	2,467	$	11,983	$	7,082
All other	267		597		1,134		1,682
Total revenues	4,761		3,064		13,117		8,764
Less: Intersegment revenues	1		6		3		9
Revenues from external customers	$	4,760	$	3,058	$	13,114	$	8,755

Investment in USAC



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Contract operations	$	163	$	—	$	323	$	—
Retail parts and services	5		—		11		—
Station installations revenue	1		—		2		—
Total revenues	169		—		336		—
Less: Intersegment revenues	3		—		5		—
Revenues from external customers	$	166	$	—	$	331	$	—

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.