Common use of EBITDA Reconciliation Clause in Contracts

EBITDA Reconciliation. The following table reconciles Segment Adjusted EBITDA to Net income attributable to PAGP (in millions): Segment Adjusted EBITDA . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,230 $ 2,681 $2,081 Adjustments(1): Gains/(losses) from derivative activities net of inventory valuation adjustments(3) . . . . . . . . . . . . . . . . . . . . . . . . . . (160) 519 46 Long-term inventory costing adjustments(4) . . . . . . . . . . . . . . 20 (21) 24 Net gain/(loss) on foreign currency revaluation(7) . . . . . . . . . . (14) (3) 26 Unallocated general and administrative expenses . . . . . . . . . . . . (5) (4) (4) Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . (604) (521) (519)

EBITDA Reconciliation. The following table reconciles Segment Adjusted EBITDA to Net income attributable to PAGP PAA (in millions): Segment Adjusted EBITDA . . . . . . . . . . . . . . . . . . . . . . . . . . $ . . . . . . . $3,230 $ $2,681 $2,081 Adjustments(1): Depreciation and amortization of unconsolidated entities(2) . . . . . . . . . (62) (56) (45) Gains/(losses) from derivative activities net of inventory valuation adjustments(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (160) 519 46 Long-term inventory costing adjustments(4) . . . . . . . . . . . . . . . . . . . . 20 (21) 24 Deficiencies under minimum volume commitments, net(5) . . . . . . . . . . . 18 (7) (2) Equity-indexed compensation expense(6) . . . . . . . . . . . . . . . . . . . . . . . (17) (55) (23) Net gain/(loss) on foreign currency revaluation(7) . . . . . . . . . . . . . . . . . (14) (3) 26 Unallocated general and administrative expenses Line 901 incident(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (510) — (432) Significant acquisition-related expenses(9) . . . . . . . . . . . . . . . . . . . . . . — — (46) Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (604601) (521520) (519517) Gains/(losses) on asset sales and asset impairments, net . . . . . . . . . . . . . . (28) 114 (109) Gain on investment in unconsolidated entities . . . . . . . . . . . . . . . . . . . . 271 200 — Interest expense, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (425) (431) (510) Other income/(expense), net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 (7) (31) Income before tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,246 2,414 902 Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (66) (198) (44) Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,180 2,216 858 Net income attributable to noncontrolling interests . . . . . . . . . . . . . . . (9) — (2) Net income attributable to PAA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,171 $2,216 $ 856