Note 7. Investments in Unconsolidated Affiliates

We own interests in a number of related businesses that are accounted for using the equity method of accounting. We group our investments in unconsolidated affiliates according to the business segment to which they relate (see Note 11 for a general discussion of our business segments). The following table shows our investments in unconsolidated affiliates by business segment at the dates indicated:

	Ownership Interest at June 30, 2011	June 30, 2011		December 31, 2010
NGL Pipelines & Services:
Venice Energy Service Company, L.L.C.	13.1%	$	34.5	$	31.9
K/D/S Promix, L.L.C. (“Promix”)	50%		41.9		43.5
Baton Rouge Fractionators LLC	32.2%		21.2		21.9
Skelly-Belvieu Pipeline Company, L.L.C.	50%		34.1		34.2
Onshore Natural Gas Pipelines & Services:
Evangeline (1)	49.5%		5.6		6.4
White River Hub, LLC (“White River Hub”)	50%		25.8		26.2
Onshore Crude Oil Pipelines & Services:
Seaway Crude Pipeline Company (“Seaway”)	50%		174.1		172.2
Offshore Pipelines & Services:
Poseidon Oil Pipeline Company, L.L.C. (“Poseidon”)	36%		56.2		57.2
Cameron Highway Oil Pipeline Company	50%		227.8		233.7
Deepwater Gateway, L.L.C.	50%		97.0		98.4
Neptune Pipeline Company, L.L.C.	25.7%		53.0		53.9
Petrochemical & Refined Products Services:
Baton Rouge Propylene Concentrator, LLC	30%		9.9		10.1
Centennial Pipeline LLC (“Centennial”)	50%		59.4		63.1
Other (2)	Various		3.6		3.6
Other Investments:
Energy Transfer Equity	15.5%		1,241.8		1,436.8
Total		$	2,085.9	$	2,293.1

(1) Evangeline refers to our ownership interests in Evangeline Gas Pipeline Company, L.P. and Evangeline Gas Corp., collectively. (2) Other unconsolidated affiliates include a 50% interest in a propylene pipeline extending from Mont Belvieu, Texas to La Porte, Texas and a 25% interest in a company that provides logistics communications solutions between petroleum pipelines and their customers.

The Other Investments segment consists of noncontrolling ownership interests in Energy Transfer Equity, which is accounted for using the equity method. At June 30, 2011, we owned 34,526,090 common units of Energy Transfer Equity representing approximately 15.5% of their common units outstanding. Our equity investments are part of our long-term business strategy; however, we may from time-to-time elect to divest of a portion of our long-term equity investments in order to redeploy capital. In May 2011, we sold 4,450,000 Energy Transfer Equity common units for net cash proceeds of $165.8 million and recorded a gain of $5.4 million on the sale. In July 2011, we sold an additional 4,114,136 Energy Transfer Equity common units in two separate transactions for a combined $167.7 million. Proceeds from these transactions were used for general partnership purposes, including funding of capital expenditures. Following the July transactions, we own 30,411,954 Energy Transfer Equity common units representing approximately 13.6% of their common units outstanding.

The following table presents our equity in income (loss) of unconsolidated affiliates by business segment for the periods presented:

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2011			2010			2011			2010
NGL Pipelines & Services	$	6.2		$	3.7		$	12.1		$	7.0
Onshore Natural Gas Pipelines & Services		1.5			0.9			2.7			2.2
Onshore Crude Oil Pipelines & Services		(1.6	)		3.6			(2.1	)		5.9
Offshore Pipelines & Services		6.6			11.1			14.9			22.9
Petrochemical & Refined Products Services		(4.3	)		(2.6	)		(9.3	)		(5.3	)
Other Investments		2.7			(5.7	)		9.0			4.9
Total	$	11.1		$	11.0		$	27.3		$	37.6

On occasion, the price we pay to acquire an ownership interest in a company exceeds the underlying book value of the capital accounts we acquire. Such excess cost amounts are included within the carrying values of our investments in unconsolidated affiliates. The following table presents the unamortized excess cost amounts by business segment at the dates indicated:

	June 30,		December 31,
	2011		2010
NGL Pipelines & Services	$	25.2	$	25.7
Onshore Crude Oil Pipelines & Services		19.5		19.7
Offshore Pipelines & Services		15.4		16.0
Petrochemical & Refined Products Services		3.0		3.0
Other Investments (1)		1,334.8		1,525.1
Total	$	1,397.9	$	1,589.5

(1) Holdings' investment in Energy Transfer Equity exceeded its share of the historical cost of the underlying net assets of such investee by $1.66 billion in May 2007. At June 30, 2011, this basis differential decreased to $1.33 billion (after taking into account related amortization amounts and the sale of 4.45 million Energy Transfer Equity common units in May 2011) and consisted of the following: $421.2 million attributed to fixed assets; $451.5 million attributed to the incentive distribution rights (an indefinite-life intangible asset) held by Energy Transfer Equity in the cash flows of ETP; $166.9 million attributed to amortizable intangible assets and $295.2 million attributed to equity method goodwill. These unamortized excess cost amounts are being amortized over their estimated economic lives of 20-27 years, as applicable.

We amortize such excess cost amounts as a reduction in equity earnings in a manner similar to depreciation. The following table presents our amortization of such excess cost amounts by business segment for the periods presented:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2011		2010		2011		2010
NGL Pipelines & Services	$	0.2	$	0.3	$	0.5	$	0.5
Onshore Crude Oil Pipelines & Services		0.2		0.2		0.4		0.4
Offshore Pipelines & Services		0.3		0.3		0.6		0.6
Petrochemical & Refined Products Services		--		0.2		--		0.9
Other Investments		8.4		9.1		17.5		18.3
Total	$	9.1	$	10.1	$	19.0	$	20.7

Summarized Income Statement Information of Unconsolidated Affiliates

The following tables present unaudited income statement information (on a 100% basis) of our unconsolidated affiliates, aggregated by the business segments to which they relate, for the periods presented:

	Summarized Income Statement Information for the Three Months Ended
	June 30, 2011								June 30, 2010
	Revenues		Operating Income (Loss)			Net Income (Loss)			Revenues		Operating Income (Loss)			Net Income (Loss)
NGL Pipelines & Services	$	116.4	$	30.5		$	30.6		$	74.7	$	13.4		$	13.4
Onshore Natural Gas Pipelines & Services		54.7		2.7			2.7			53.7		1.9			1.9
Onshore Crude Oil Pipelines & Services		9.6		(2.1	)		(2.1	)		22.0		10.8			10.8
Offshore Pipelines & Services		43.7		17.7			17.5			51.4		26.8			26.7
Petrochemical & Refined Products Services		9.2		(5.4	)		(7.6	)		15.6		(2.6	)		(6.5	)
Other Investments (1)		1,974.9		260.6			66.3			1,368.5		179.4			19.2
(1) Net income for Energy Transfer Equity represents net income attributable to the partners of Energy Transfer Equity.

	Summarized Income Statement Information for the Six Months Ended
	June 30, 2011								June 30, 2010
	Revenues		Operating Income (Loss)			Net Income (Loss)			Revenues		Operating Income			Net Income (Loss)
NGL Pipelines & Services	$	216.5	$	53.9		$	54.0		$	149.5	$	26.5		$	26.4
Onshore Natural Gas Pipelines & Services		90.2		5.3			5.3			96.0		4.4			4.3
Onshore Crude Oil Pipelines & Services		20.8		(1.6	)		(1.6	)		40.5		18.1			18.1
Offshore Pipelines & Services		90.0		36.6			36.2			106.4		56.0			55.4
Petrochemical & Refined Products Services		19.3		(12.4	)		(16.8	)		24.2		(2.0	)		(6.8	)
Other Investments (1)		3,964.0		624.8			154.9			3,240.5		518.3			132.0
(1) Net income for Energy Transfer Equity represents net income attributable to the partners of Energy Transfer Equity.

With the exception of Energy Transfer Equity, all of these investments are in untraded privately held companies, the fair values of which are not practicable to estimate. At June 30, 2011, the fair value of our investment in Energy Transfer Equity was $1.55 billion based on the closing market price of Energy Transfer Equity's common units on that date.