Reportable Segments

3 Months Ended

Mar. 31, 2015

Reportable Segments [Abstract]

Reportable Segments

REPORTABLE SEGMENTS:

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

•intrastate transportation and storage;

•interstate transportation and storage;

•midstream;

•liquids transportation and services;

•investment in Sunoco Logistics;

•retail marketing; and

•all other.

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 liquids 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,
	2015			2014
Revenues:
Intrastate transportation and storage:
Revenues from external customers	$	550		$	847
Intersegment revenues	36			87
	586			934
Interstate transportation and storage:
Revenues from external customers	271			295
Intersegment revenues	5			3
	276			298
Midstream:
Revenues from external customers	255			302
Intersegment revenues	276			351
	531			653
Liquids transportation and services:
Revenues from external customers	813			801
Intersegment revenues	18			29
	831			830
Investment in Sunoco Logistics:
Revenues from external customers	2,526			4,452
Intersegment revenues	46			25
	2,572			4,477
Retail marketing:
Revenues from external customers	4,782			5,008
Intersegment revenues	23			3
	4,805			5,011
All other:
Revenues from external customers	333			527
Intersegment revenues	50			64
	383			591
Eliminations	(454		)	(562		)
Total revenues	$	9,530		$	12,232

	Three Months Ended March 31,
	2015			2014
Segment Adjusted EBITDA:
Intrastate transportation and storage	$	162		$	177
Interstate transportation and storage	277			300
Midstream	153			126
Liquids transportation and services	166			128
Investment in Sunoco Logistics	221			208
Retail marketing	129			109
All other	41			158
Total	1,149			1,206
Depreciation and amortization	(322		)	(266		)
Interest expense, net of interest capitalized	(228		)	(219		)
Gain on sale of AmeriGas common units	—			70
Losses on interest rate derivatives	(77		)	(2		)
Non-cash unit-based compensation expense	(16		)	(14		)
Unrealized losses on commodity risk management activities	(66		)	(29		)
Inventory valuation adjustments	(34		)	14
Adjusted EBITDA related to discontinued operations	—			(27		)
Adjusted EBITDA related to unconsolidated affiliates	(127		)	(196		)
Equity in earnings of unconsolidated affiliates	40			79
Other, net	2			(3		)
Income from continuing operations before income tax expense	$	321		$	613

	March 31, 2015		December 31, 2014
Assets:
Intrastate transportation and storage	$	4,541	$	4,563
Interstate transportation and storage	10,521		10,082
Midstream	4,096		3,548
Liquids transportation and services	5,750		4,581
Investment in Sunoco Logistics	13,799		13,619
Retail marketing	8,573		8,930
All other	3,349		2,898
Total assets	$	50,629	$	48,221