Sunoco 2012 Annual Report Download - page 93

respectively. The net proceeds of $595 million from the 2022 and 2042 Senior Notes were used to pay down
outstanding borrowings under the prior credit facilities, which were used to fund the acquisitions of a controlling
financial interest in Inland and the Texon crude oil acquisition and marketing business, and for general
partnership purposes.
In February 2010, the Operating Partnership issued $250 million of 5.50 percent Senior Notes and
$250 million of 6.85 percent Senior Notes, due February 2020 and February 2040, respectively. The net proceeds
of $494 million from the 2020 and 2040 Senior Notes were used to repay the $201 million promissory note
issued in connection with the Partnership’s repurchase and exchange of its IDR interest, repay outstanding
borrowings under the prior credit facility and for general partnership purposes.
Debt Guarantee
The Partnership currently serves as guarantor of the senior notes and of any obligations under the
$350 million and $200 million credit facilities. The Operating Partnership is also a guarantor of the $200 million
Credit Facility. These guarantees are full and unconditional. See Note 20 for supplemental condensed
consolidating financial information.
11. Commitments and Contingent Liabilities
Total rental expense 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 amounted to $3, $8, $10 and $8 million,
respectively. The Partnership, as lessee, has non-cancelable operating leases for office space and equipment for
which the aggregate amount of future minimum annual rentals as of December 31, 2012 was as follows:
Year Ended December 31, (in millions)
2013 ............................................ $11
2014 ............................................ 11
2015 ............................................ 10
2016 ............................................ 8
2017 ............................................ 4
Thereafter ....................................... 1
Total ....................................... $45
The Partnership is subject to numerous federal, state and local laws which regulate the discharge of
materials into the environment or that otherwise relate to the protection of the environment. These laws and
regulations result in liabilities and loss contingencies for remediation at the Partnership’s facilities and at third-
party or formerly owned sites. At December 31, 2012 and 2011, there were accrued liabilities for environmental
remediation in the consolidated balance sheets of $3 and $4 million, respectively. The accrued liabilities for
environmental remediation do not include any amounts attributable to unasserted claims, since no unasserted
claims are probable of settlement or reasonably estimable, nor have any recoveries from insurance been assumed.
Charges against income for environmental remediation totaled $1, $6, $5 and $3 million 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, respectively. The Partnership maintains insurance programs that cover certain of
its existing or potential environmental liabilities. Claims for recovery of environmental liabilities and previous
expenditures that are probable of realization totaled $1 million at December 31, 2012 and are included in other
assets in the consolidated balance sheet.
Total future costs for environmental remediation activities will depend upon, among other things, the
identification of any additional sites, the determination of the extent of the contamination at each site, the timing
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