Sunoco 2012 Annual Report Download - page 40

(3) Adjusted EBITDA and distributable cash flow provide additional information for evaluating our ability to
make distributions to our unitholders and our general partner. The following tables reconcile (a) the
difference between net income, as determined under United States generally accepted accounting principles
(“GAAP”), and Adjusted EBITDA and distributable cash flow and (b) net cash provided by operating
activities and Adjusted EBITDA:
Successor Predecessor
Period from Acquisition
(October 5, 2012) to
December 31, 2012
Period from
January 1, 2012 to
October 4, 2012
Year Ended December 31,
2011 2010 2009 2008
(in millions) (in millions)
Net Income $142 $389 $322 $ 348 $250 $214
Interest expense, net ............................ 14 65 89 73 45 31
Depreciation and amortization expense ............. 63 76 86 64 48 40
Impairment charge .............................. — 9 31 3 — 6
Provision for income taxes ....................... 8 24 25 8 — —
Non-cash compensation expense .................. 2 6 6 5 5 4
Unrealized losses/(gains) on commodity risk
management activities ......................... (3) 6 (2) 2 — —
Proportionate share of unconsolidated affiliates’
interest, depreciation and provision for income
taxes ....................................... 5 16 16 24 24 24
Adjustments to commodity hedges resulting from
“push-down” accounting ....................... (12) — — — — —
Gain on investments in affiliates ................... — — — (128) — —
Adjusted EBITDA 219 591 573 399 372 319
Interest expense, net ............................ (14) (65) (89) (73) (45) (31)
Provision for income taxes ....................... (8) (24) (25) (8) — —
Amortization of fair value adjustments on long-term
debt ....................................... (6) — — — — —
Distributions versus Adjusted EBITDA of
unconsolidated affiliates ....................... (3) (25) (17) (36) (31) (24)
Maintenance capital expenditures .................. (21) (29) (42) (37) (32) (26)
Distributable Cash Flow attributable to noncontrolling
interests .................................... (2) (9) (10) (3) — —
Distributable Cash Flow $165 $439 $390 $ 242 $264 $238
Successor Predecessor
Period from Acquisition
(October 5, 2012) to
December 31, 2012
Period from
January 1, 2012 to
October 4, 2012
Year Ended December 31,
2011 2010 2009 2008
(in millions) (in millions)
Net cash provided by operating activities $280 $411 $430 $341 $176 $229
Interest expense, net ............................ 14 65 89 73 45 31
Amortization of bond premium, financing fees and
bond discount ............................... 6 (2) (2) (2) (2) (1)
Deferred income tax expense ..................... 2 — 2 — — —
Regulatory matters excluded from Adjusted
EBITDA ................................... — 10 (11) — — —
Claim for (recovery of) environmental liability ....... (13) 14 — — — —
Net change in working capital pertaining to operating
activities ................................... (94) 35 35 (55) 121 38
Unrealized losses/(gains) on commodity risk
management activities ......................... (3) 6 (2) 2 — —
Proportionate share of unconsolidated affiliates’
interest, depreciation and provision for income
taxes ....................................... 5 16 16 24 24 24
Adjustments to commodity hedges resulting from
“push-down” accounting ....................... (12) — — — — —
Provision for income taxes ....................... 8 24 25 8 — —
Other ........................................ 26 12 (9) 8 8 (2)
Adjusted EBITDA $219 $591 $573 $399 $372 $319
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