REPORTABLE SEGMENTS

12 Months Ended

Dec. 31, 2011

Reportable Segments [Abstract]

REPORTABLE SEGMENTS

REPORTABLE SEGMENTS:

Our financial statements reflect five reportable segments, which conduct their business exclusively in the United States of America, as follows:

•intrastate natural gas transportation and storage;

•interstate natural gas transportation;

•midstream;

•NGL transportation and services (See Note 3); and

•retail propane and other retail propane related operations.

Intersegment and intrasegment transactions are generally based on transactions made at market-related rates. Consolidated revenues and expenses reflect the elimination of all material intercompany transactions.

Revenues from our intrastate transportation and storage segment are primarily reflected in natural gas sales and gathering, transportation and other fees. Revenues from our interstate transportation segment are primarily reflected in gathering, transportation and other fees. Revenues from our midstream segment are primarily reflected in natural gas sales, NGL sales and gathering, transportation and other fees. Revenues from our NGL transportation and services segment are primarily reflected in NGL sales and gathering, transportation and other fees. Revenues from our retail propane and other retail propane related segment are primarily reflected in retail propane sales and other.

We previously reported segment operating income as a measure of segment performance. We have revised certain reports provided to our chief operating decision maker to assess the performance of our business to reflect Segment Adjusted EBITDA. 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, and other non-operating income or expense items. Unrealized gains and losses on commodity risk management activities includes 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 less than wholly owned subsidiaries and unconsolidated affiliates based on the Partnership's proportionate ownership. Based on the change in our segment performance measure, we have recast the presentation of our segment results for the prior years to be consistent with the current year presentation.

The following tables present the financial information by segment for the following periods:

	Years Ended December 31,
	2011			2010			2009
Revenues:
Intrastate transportation and storage:
Revenues from external customers	$	2,397,887		$	2,075,217		$	1,773,528
Intersegment revenues	276,270			1,215,688			618,016
	2,674,157			3,290,905			2,391,544
Interstate transportation – revenues from external customers	446,743			292,419			270,213
Midstream:
Revenues from external customers	2,041,600			1,955,627			2,060,451
Intersegment revenues	551,783			1,213,687			380,709
	2,593,383			3,169,314			2,441,160
NGL transportation and services:
Revenues from external customers	362,701			—			—
Intersegment revenues	34,400			—			—
	397,101			—			—
Retail propane and other retail propane related – revenues from external customers	1,468,082			1,419,646			1,292,583
All other:
Revenues from external customers	133,427			141,918			20,520
Intersegment revenues	54,155			145,405			1,145
	187,582			287,323			21,665
Eliminations	(916,608		)	(2,574,780		)	(999,870		)
Total revenues	$	6,850,440		$	5,884,827		$	5,417,295
Cost of products sold:
Intrastate transportation and storage	$	1,774,006		$	2,381,397		$	1,393,295
Midstream	2,085,951			2,759,113			2,116,279
NGL transportation and services	218,283			—			—
Retail propane and other retail propane related	860,323			774,742			596,002
All other	155,374			235,614			16,350
Eliminations	(904,584		)	(2,550,925		)	(999,870		)
Total cost of products sold	$	4,189,353		$	3,599,941		$	3,122,056
Depreciation and amortization:
Intrastate transportation and storage	$	119,600		$	116,992		$	107,605
Interstate transportation	80,839			52,582			48,297
Midstream	111,226			85,942			70,845
NGL transportation and services	32,459			—			—
Retail propane and other retail propane related	82,310			81,947			83,476
All other	4,470			5,548			2,580
Total depreciation and amortization	$	430,904		$	343,011		$	312,803

	Years Ended December 31,
	2011			2010			2009
Segment Adjusted EBITDA
Intrastate transportation and storage	$	667,294		$	716,176		$	768,934
Interstate transportation	373,409			220,027			228,705
Midstream	388,578			329,025			206,232
NGL transportation and services	88,197			—			—
Retail propane and other retail propane related	222,204			269,670			270,027
All other	2,881			5,990			3,492
Total Segment Adjusted EBITDA	1,742,563			1,540,888			1,477,390
Depreciation and amortization	(430,904		)	(343,011		)	(312,803		)
Interest expense, net of interest capitalized	(474,113		)	(412,553		)	(394,274		)
Gains (losses) on non-hedged interest rate derivatives	(77,409		)	4,616			39,239
Income tax expense	(18,815		)	(15,536		)	(12,777		)
Non-cash compensation expense	(37,457		)	(27,180		)	(24,032		)
Allowance for equity funds used during construction	957			28,942			10,557
Unrealized gains (losses) on commodity risk management activities	(11,407		)	(78,300		)	29,980
Impairment of investments in affiliates	(5,355		)	(52,620		)	—
Losses on disposal of assets	(3,188		)	(5,043		)	(1,564		)
Adjusted EBITDA attributable to noncontrolling interest	37,842			—			—
Proportionate share of unconsolidated affiliates' interest, depreciation and allowance for equity funds used during construction	(29,994		)	(22,499		)	(22,331		)
Other, net	4,442			(482		)	2,157
Net income	697,162			617,222			791,542
Less: Net income attributable to noncontrolling interest	28,188			—			—
Net income attributable to partners	$	668,974		$	617,222		$	791,542

	As of December 31,
	2011		2010		2009
Total assets:
Intrastate transportation and storage	$	4,784,630	$	4,894,352	$	4,901,102
Interstate transportation	3,661,098		3,390,588		3,313,837
Midstream	2,665,610		1,842,370		1,523,538
NGL transportation and services	2,360,095		—		—
Retail propane and other retail propane related	1,783,770		1,791,254		1,784,353
All other	263,413		231,428		212,142
Total	$	15,518,616	$	12,149,992	$	11,734,972
	Years Ended December 31,
	2011		2010		2009
Additions to property, plant and equipment including acquisitions, net of contributions in aid of construction costs (accrual basis):
Intrastate transportation and storage	$	52,388	$	117,295	$	378,494
Interstate transportation	207,962		872,112		99,341
Midstream	836,841		404,669		95,081
NGL transportation and services	1,745,035		—		—
Retail propane and other retail propane related	66,053		64,520		62,953
All other	13,586		11,405		44,911
Total	$	2,921,865	$	1,470,001	$	680,780