SUMMARY ANALYSIS OF QUARTERLY RESULTS BY SEGMENT
(Dollars in millions)
Subsequent to the Sunoco Merger and Holdco Transactions in October 2012, our reportable segments changed, as follows:
Interstate transportation and storage segment now includes Southern Union’s transportation and storage operations;
Midstream segment now includes Southern Union’s gathering and processing operations;
Investment in Sunoco Logistics segment reflects the consolidated operations of Sunoco Logistics;
Retail marketing segment reflects the consolidated operations of Sunoco’s retail marketing business; and,
All other now includes the investments and operations identified under the segment table below.
Our segment results were presented based on the measure of Segment Adjusted EBITDA. The tables below identify the components of Segment Adjusted EBITDA, which was calculated as follows:
Gross margin, operating expenses, and selling, general and administrative. These amounts represent the amounts included in our consolidated financial statements that are attributable to each segment.
Unrealized gains or losses on commodity risk management activities. These are the unrealized amounts that are included in gross margin. These amounts are not included in Segment Adjusted EBITDA; therefore, the unrealized losses are added back and the unrealized gains are subtracted to calculate the segment measure.
Non-cash compensation expense. These amounts represent the total non-cash compensation recorded in operating expenses and selling, general and administrative. These amounts are not included in Segment Adjusted EBITDA and therefore are added back to calculate the segment measure.
Adjusted EBITDA related to unconsolidated affiliates. These amounts represent our proportionate share of the Adjusted EBITDA of our unconsolidated affiliates. Amounts reflected are calculated consistently with our definition of Adjusted EBITDA above.
Three Months Ended March 31,
Segment Adjusted EBITDA:
Intrastate transportation and storage
Interstate transportation and storage
NGL transportation and services
Investment in Sunoco Logistics