Reportable Segments

3 Months Ended

Mar. 31, 2014

Reportable Segments [Abstract]

Reportable Segments

REPORTABLE SEGMENTS:

Our financial statements currently reflect following reportable segments, which conduct their business in the United States, as follows:

•intrastate transportation and storage;

•interstate transportation and storage;

•midstream;

•NGL transportation and services;

•investment in Sunoco Logistics;

•retail marketing; and

•all other.

During the fourth quarter 2013, management realigned the composition of our reportable segments, and as a result, our natural gas marketing operations are now aggregated into the “all other” segment. These operations were previously reported in the midstream segment. Based on this change in our segment presentation, we have recast the presentation of our segment results for the prior years to be consistent with the current year presentation.

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 and storage 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 investment in Sunoco Logistics segment are primarily reflected in crude sales. Revenues from our retail marketing segment are primarily reflected in refined product sales.

We report Segment Adjusted EBITDA as a measure of segment performance. 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.

The following tables present financial information by segment:

	Three Months Ended March 31,
	2014			2013
Revenues:
Intrastate transportation and storage:
Revenues from external customers	$	847		$	645
Intersegment revenues	87			39
	934			684
Interstate transportation and storage:
Revenues from external customers	295			323
Intersegment revenues	3			1
	298			324
Midstream:
Revenues from external customers	302			331
Intersegment revenues	351			269
	653			600
NGL transportation and services:
Revenues from external customers	801			346
Intersegment revenues	29			19
	830			365
Investment in Sunoco Logistics:
Revenues from external customers	4,452			3,457
Intersegment revenues	25			55
	4,477			3,512
Retail marketing:
Revenues from external customers	5,008			5,217
Intersegment revenues	3			5
	5,011			5,222
All other:
Revenues from external customers	527			535
Intersegment revenues	64			96
	591			631
Eliminations	(562		)	(484		)
Total revenues	$	12,232		$	10,854

	Three Months Ended March 31,
	2014			2013
Segment Adjusted EBITDA:
Intrastate transportation and storage	$	177		$	132
Interstate transportation and storage	300			297
Midstream	126			87
NGL transportation and services	128			80
Investment in Sunoco Logistics	208			236
Retail marketing	109			37
All other	158			87
Total	1,206			956
Depreciation and amortization	(266		)	(260		)
Interest expense, net of interest capitalized	(219		)	(211		)
Gain on sale of AmeriGas common units	70			—
Gains (losses) on interest rate derivatives	(2		)	7
Non-cash unit-based compensation expense	(14		)	(14		)
Unrealized gains (losses) on commodity risk management activities	(29		)	19
LIFO valuation adjustments	14			38
Adjusted EBITDA related to discontinued operations	(27		)	(40		)
Adjusted EBITDA related to unconsolidated affiliates	(196		)	(165		)
Equity in earnings of unconsolidated affiliates	79			72
Other, net	(3		)	3
Income from continuing operations before income tax expense	$	613		$	405

	March 31, 2014		December 31, 2013
Total assets:
Intrastate transportation and storage	$	4,514	$	4,606
Interstate transportation and storage	10,238		10,988
Midstream	3,176		3,133
NGL transportation and services	4,464		4,326
Investment in Sunoco Logistics	12,917		11,650
Retail marketing	4,271		3,936
All other	4,009		5,063
Total	$	43,589	$	43,702