Reportable Segments

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Reportable Segments

REPORTABLE SEGMENTS:

As a result of the Trunkline LNG Transaction in 2014, our reportable segments were re-evaluated and currently reflect the following reportable segments:

•Investment in ETP, including the consolidated operations of ETP;

• Investment in Regency, including the consolidated operations of Regency;

• Investment in Trunkline LNG, including the operations of Trunkline 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.

Related party transactions among our segments are generally based on transactions made at market-related rates. Consolidated revenues and expenses reflect the elimination of all material intercompany transactions.

We define Segment Adjusted EBITDA as earnings before interest, taxes, depreciation, 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, loss on extinguishment 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. 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.

Regency completed its acquisition of SUGS on April 30, 2013. Therefore, the investment in Regency segment amounts have been retrospectively adjusted to reflect SUGS beginning March 26, 2012.

Eliminations in the tables below include the following:

• ETP’s Segment Adjusted EBITDA reflected 100% of Lone Star, which is a consolidated subsidiary of ETP. Regency’s Segment Adjusted EBITDA included its 30% investment in Lone Star. Therefore, 30% of the results of Lone Star were included in eliminations.

• ETP’s Segment Adjusted EBITDA reflected the results of SUGS from March 26, 2012 to April 30, 2013. Since the SUGS Contribution was a transaction between entities under common control, Regency’s results have been recast to retrospectively consolidate SUGS beginning March 26, 2012. Therefore, the eliminations also included the results of SUGS from March 26, 2012 to April 30, 2013.

• ETP’s Segment Adjusted EBITDA reflected the results of Trunkline LNG prior to the Trunkline LNG Transaction, which was effective January 1, 2014. The Investment in Trunkline LNG segment reflected the results of operations of Trunkline LNG for all periods presented. Consequently, the results of operations of Trunkline LNG were reflected in two segments for the three months ended March 31, 2013. Therefore, the results of Trunkline LNG were included in eliminations for 2013.

The following tables present financial information by segment:

	Three Months Ended March 31,
	2014			2013
Segment Adjusted EBITDA:
Investment in ETP	$	1,206		$	956
Investment in Regency	205			120
Investment in Trunkline LNG	48			45
Corporate and Other	(26		)	(6		)
Adjustments and Eliminations	(58		)	(63		)
Total	1,375			1,052
Depreciation and amortization	(373		)	(312		)
Interest expense, net of interest capitalized	(315		)	(310		)
Gain on sale of AmeriGas common units	70			—
Gains (losses) on interest rate derivatives	(2		)	6
Non-cash unit-based compensation expense	(20		)	(16		)
Unrealized gains (losses) on commodity risk management activities	(33		)	1
LIFO valuation adjustments	14			38
Equity in earnings of unconsolidated affiliates	104			90
Adjusted EBITDA related to unconsolidated affiliates	(210		)	(204		)
Adjusted EBITDA related to discontinued operations	(27		)	(40		)
Other, net	(14		)	(7		)
Income from continuing operations before income tax expense	$	569		$	298

	March 31, 2014			December 31, 2013
Total assets:
Investment in ETP	$	43,589		$	43,702
Investment in Regency	15,197			8,782
Investment in Trunkline LNG	1,221			1,338
Corporate and Other	757			720
Adjustments and Eliminations	(2,995		)	(4,212		)
Total	$	57,769		$	50,330

	Three Months Ended March 31,
	2014			2013
Revenues:
Investment in ETP:
Revenues from external customers	$	12,212		$	10,837
Intersegment revenues	20			17
	12,232			10,854
Investment in Regency:
Revenues from external customers	806			535
Intersegment revenues	57			5
	863			540
Investment in Trunkline LNG:
Revenues from external customers	54			53
Adjustments and Eliminations	(69		)	(268		)
Total revenues	$	13,080		$	11,179

The following tables provide revenues, grouped by similar products and services, for our reportable segments. These amounts include intersegment revenues for transactions between ETP, Regency and Trunkline LNG.

Investment in ETP

	Three Months Ended March 31,
	2014		2013
Intrastate Transportation and Storage	$	847	$	645
Interstate Transportation and Storage	295		323
Midstream	302		331
NGL Transportation and Services	801		346
Investment in Sunoco Logistics	4,452		3,457
Retail Marketing	5,008		5,217
All Other	527		535
Total revenues	12,232		10,854
Less: Intersegment revenues	20		17
Revenues from external customers	$	12,212	$	10,837

Investment in Regency

	Three Months Ended March 31,
	2014		2013
Gathering and Processing	$	793	$	486
Contract Services	63		49
Natural Resources	2		—
Corporate and Other	5		5
Total revenues	863		540
Less: Intersegment revenues	57		5
Revenues from external customers	$	806	$	535

Investment in Trunkline LNG

Trunkline LNG’s revenue of $54 million and $53 million for the three months ended March 31, 2014 and 2013, respectively, were related to LNG terminalling.