Energy Transfer 2013 Annual Report Download - page 104

Table of Contents
Cash Distributions Paid by Sunoco Logistics
Sunoco Logistics is required by its partnership agreement to distribute all cash on hand at the end of each quarter, less appropriate reserves determined by its
general partner.
Following are distributions declared and/or paid by Sunoco Logistics:
Quarter Ended
Record Date
Payment Date
Rate
September 30, 2013
November 8, 2013
November 14, 2013
$0.63000
June 30, 2013
August 8, 2013
August 14, 2013
0.60000
March 31, 2013
May 9, 2013
May 15, 2013
0.57250
December 31, 2012
February 8, 2013
February 14, 2013
0.54500
On January 29, 2014, Sunoco Logistics declared a cash distribution for the three months ended December 31, 2013 of $0.6625 per common unit, or $2.65
annualized. Sunoco Logistics paid this distribution on February 14, 2014 to unitholders of record at the close of business on February 10, 2014.
The total amounts of Sunoco Logistics distributions declared during the period presented were as follows (all from Available Cash from Sunoco Logistics’
operating surplus and are shown in the period with respect to which they relate):
Year Ended December 31,
2013
Limited Partners $255
General Partner interest 4
Incentive distributions 118
Total distributions declared $377
On January 24, 2013, Sunoco Logistics declared a cash distribution for the three months ended December 31, 2012 of $0.5450 per common unit, or $2.18
annualized. The $80 million distribution, including $23 million to the general partner, was paid on February 14, 2013 to unitholders of record at the close of
business on February 8, 2013.
New Accounting Standards
None.
Estimates and Critical Accounting Policies
The selection and application of accounting policies is an important process that has developed as our business activities have evolved and as the accounting
rules have developed. Accounting rules generally do not involve a selection among alternatives, but involve an implementation and interpretation of existing
rules, and the use of judgment applied to the specific set of circumstances existing in our business. We make every effort to properly comply with all
applicable rules, and we believe the proper implementation and consistent application of the accounting rules are critical. Our critical accounting policies are
discussed below. For further details on our accounting policies see Note 2 to our consolidated financial statements.
Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and the accrual for and disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period. The natural gas industry conducts its business by processing actual transactions at
the end of the month following the month of delivery. Consequently, the most current month’s financial results for the midstream, NGL and intrastate
transportation and storage segments are estimated using volume estimates and market prices. Any differences between estimated results and actual results are
recognized in the following month’s financial statements. Management believes that the operating results estimated for the year ended December 31, 2013
represent the actual results in all material respects.
Some of the other significant estimates made by management include, but are not limited to, the timing of certain forecasted transactions that are hedged, the
fair value of derivative instruments, useful lives for depreciation and amortization, purchase accounting allocations and subsequent realizability of intangible
assets, fair value measurements used in the goodwill impairment test, market value of inventory, assets and liabilities resulting from the regulated ratemaking
process, contingency reserves and environmental reserves. Actual results could differ from those estimates.
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