Sunoco 2012 Annual Report Download - page 76

table summarizes the preliminary allocation of the fair value of partners’ capital balances to the assets and
liabilities of the Partnership on October 5, 2012. The preliminary allocation to certain assets and/or liabilities
may be adjusted by material amounts as the Partnership continues to finalize its fair value estimates.
(in millions)
Current assets .................................... $2,449
Properties, plants and equipment ..................... 5,533
Investment in affiliates ............................. 119
Goodwill (1) ...................................... 1,368
Intangible assets .................................. 855
Other assets ...................................... 25
Current liabilities ................................. (2,132)
Long-term debt ................................... (1,778)
Other deferred credits and liabilities ................... (61)
Deferred income taxes ............................. (244)
$ 6,134
(1) Includes $200, $545 and $623 million allocated to the Crude Oil Pipelines, Crude Oil Acquisition and
Marketing and Terminal Facilities, respectively.
2. Summary of Significant Accounting Policies
Principles of Consolidation
The consolidated financial statements reflect the results of the Partnership and its wholly-owned
subsidiaries, including Sunoco Logistics Partners Operations L.P. (the “Operating Partnership”) and the
proportionate shares of the Partnership’s undivided interests in assets, and the accounts of entities in which the
Partnership has a controlling financial interest. A controlling financial interest is evidenced by either a voting
interest greater than 50 percent or a risk and rewards model that identifies the Partnership or one of its
subsidiaries as the primary beneficiary of a variable interest entity. The Partnership holds a controlling financial
interest in Inland Corporation (“Inland”), Mid-Valley Pipeline Company (“Mid-Valley”) and West Texas Gulf
Pipe Line Company (“West Texas Gulf”), and as such, these joint ventures are reflected as consolidated
subsidiaries of the Partnership from the respective dates of acquisition. All significant intercompany accounts
and transactions are eliminated in consolidation and noncontrolling interests in equity and net income are shown
separately in the consolidated statements of comprehensive income and balance sheets. Equity ownership
interests in corporate joint ventures in which the Partnership does not have a controlling financial interest are
accounted for under the equity method of accounting.
Use of Estimates
The preparation of financial statements in conformity with United States generally accepted accounting
principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported
in the consolidated financial statements and accompanying notes. Actual amounts could differ from these
estimates.
Revenue Recognition
Pipeline revenues are recognized upon delivery of the barrels to the location designated by the shipper.
Acquisition and marketing revenues for crude oil and refined products are recognized when title to and risk of
loss of the product is transferred to the customer. Terminalling and storage revenues are recognized at the time
the services are provided. Revenues are not recognized for crude oil exchange transactions, which are entered
into primarily to acquire crude oil of a desired quality or to reduce transportation costs by taking delivery closer
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