the deconsolidation of ETP (formerly Sunoco Logistics) upon the closing of the Sunoco Logistics Merger. The decrease in the All Other segment was primarily due to a $66 million decrease related to the termination of management fees paid by ETE that ended in 2016 and an increase of $39 million in transaction related expenses, partially offset by a $35 million increase in Adjusted EBITDA related to unconsolidated affiliates due to our investments in PES and Sunoco LP and a $15 million increase from commodity trading activities.
Depreciation, Depletion and Amortization. Depreciation, depletion and amortization expense increased for the nine months ended September 30, 2017 compared to the same period last year primarily due to additional depreciation from assets recently placed in service and recent acquisitions, offset by reduction due to the deconsolidation of Sunoco Logistics in connection with the Sunoco Logistics Merger.
Losses on Interest Rate Derivatives. Losses on interest rate derivatives during the nine months ended September 30, 2017 and 2016 resulted from decreases in forward interest rates, which caused our forward-starting swaps to change in value.
Unrealized Gains (Losses) on Commodity Risk Management Activities. Unrealized gains and losses on commodity risk management activities include unrealized amounts that are included in cost of products sold. These amounts are not included in Segment Adjusted EBITDA; therefore, the unrealized losses are subtracted and the unrealized gains are added back to reconcile from total Segment Adjusted EBITDA to net income. For the nine months ended September 30, 2017 compared to the same period last year, the change in unrealized gains and losses on commodity risk management activities primarily reflected the following:
in our intrastate transportation and other segment, $8 million related to our natural gas storage activities due to the movement in market price of the physical gas and financial derivatives used to hedge that gas, $4 million related to retained fuel sales and storage segment, $4 million related to natural gas sales and other;
in our midstream segment, $20 million related to non-fee based margin;
in our liquids transportation and services segment, $51 million related to liquids marketing activities; and
in our all other segment, $33 million related to natural gas marketing activities.
Inventory Valuation Adjustments. Inventory valuation reserve adjustments were recorded for crude oil, NGLs and refined products inventories as a result of commodity price changes during the respective periods.
Adjusted EBITDA Related to Unconsolidated Affiliates and Equity in Earnings of Unconsolidated Affiliates. See additional information in “Supplemental Information on Unconsolidated Affiliates” below.
Other, net. Includes amortization of regulatory assets and other income and expense amounts.
Income Tax Expense (Benefit). The Partnership’s income tax expense included the impact of a one-time adjustment to deferred tax balances as a result of a change in apportionment and corresponding state tax rates resulting from the Sunoco Logistics Merger in April 2017, which resulted in incremental income tax expense of approximately $68 million during the period. In addition, for the three months ended September 30, 2017, the Partnership recognized a $154 million deferred tax gain resulting from internal restructuring among its subsidiaries that resulted in a change in tax status for one of the subsidiaries. The three and nine months ended September 30, 2017 also reflect increased income tax expense due to higher earnings among the Partnership’s consolidated corporate subsidiaries. For the three and nine months ended September 30, 2016, the Partnership’s income tax benefit primarily resulted from losses among the Partnership’s consolidated corporate subsidiaries.