Sunoco 2012 Annual Report Download - page 47

Results of Operations
The following table presents our consolidated operating results for the periods from October 5, 2012 to
December 31, 2012, from January 1, 2012 to October 4, 2012, and for the years ended December 31, 2011 and 2010:
Successor Predecessor
Period from
Acquisition
(October 5,
2012) to
December 31,
2012(1)
Period
from
January 1,
2012 to
October 4,
2012(1)
Three
Months
Ended
December 31,
2011
Nine Months
Ended
September 30,
2011
Total
2011
Year Ended
December 31,
2010
(in millions,
except per
unit data) (in millions, except per unit data)
Statements of Income
Sales and other operating revenue:
Unaffiliated customers ....................... $2,989 $9,460 $3,325 $7,148 $10,473 $6,691
Affiliates ................................. 200 461 51 381 432 1,117
Other income ................................ 5 18 4 9 13 30
Gain on divestment and related matters ............ — 11 — — — —
Total revenues .............................. 3,194 9,950 3,380 7,538 10,918 7,838
Cost of products sold and operating expenses ....... 2,933 9,311 3,178 7,086 10,264 7,398
Depreciation and amortization expense ............ 63 76 25 61 86 64
Impairment charge and related matters(2) ........... — (1) 42 — 42 3
Selling, general and administrative expenses ....... 34 86 23 67 90 72
Total costs and expenses ...................... 3,030 9,472 3,268 7,214 10,482 7,537
Operating income ............................ 164 478 112 324 436 301
Net interest expense ........................... 14 65 26 63 89 73
Gain on investments in affiliates ................. — — — — — 128
Income before provision for income taxes ........ 150 413 86 261 347 356
Provision for income taxes ..................... 8 24 7 18 25 8
Net Income ................................. 142 389 79 243 322 348
Net Income attributable to noncontrolling interests . . . 3 8 3 6 9 2
Net Income attributable to Sunoco Logistics
Partners L.P. ............................. $ 139 $ 381 $ 76 $ 237 $ 313 $ 346
Net Income attributable to Sunoco Logistics
Partners L.P. per Limited Partner unit:
Basic ................................... $ 1.11 $ 3.15 $ 0.60 $ 1.96 $ 2.56 $ 3.13
Diluted ................................. $ 1.10 $ 3.14 $ 0.60 $ 1.95 $ 2.54 $ 3.11
(1) The effective date of the acquisition for accounting and reporting purposes was deemed to be October 1,
2012. The activity from October 1, 2012 through October 4, 2012 was not material in relation to the
Partnership’s financial position, results of operations or cash flows.
(2) In September 2011, Sunoco announced its intention to exit its refining business in the northeast and initiated
a process to sell its refineries located in Philadelphia and Marcus Hook, Pennsylvania. In December 2011,
the main processing units at the Marcus Hook refinery were idled indefinitely. The Partnership recognized a
$42 million charge in the fourth quarter 2011 for certain crude oil terminal assets which would have been
negatively impacted if the Philadelphia refinery was permanently idled. The charge included a $31 million
non-cash impairment for asset write-downs at the Fort Mifflin Terminal Complex and $11 million for
regulatory obligations which would have been incurred if these assets were permanently idled. In September
2012, Sunoco contributed the refining assets of its Philadelphia refinery to Philadelphia Energy Solutions
(“PES”), a joint venture between The Carlyle Group and Sunoco, which enabled the Philadelphia refinery to
continue operating. As a result, the Partnership reversed $10 million of regulatory obligations during 2012
which were no longer expected to be incurred.
45