Sunoco 2013 Annual Report Download - page 36

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Successor Predecessor
Year Ended
December 31, 2013
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
(in millions) (in millions)
Net cash provided by
operating activities $ 749 $ 280 $ 411 $ 430 $ 341 $ 176
Interest expense, net 77 14 65 89 73 45
Amortization of bond
premium, financing fees
and bond discount 22 6 (2) (2) (2) (2)
Deferred income tax
(expense) benefit (6) 2 — 2 — —
Regulatory matters
excluded from Adjusted
EBITDA — — 10 (11) — —
Claim for (recovery of)
environmental liability — (13) 14 — — —
Expected proceeds from
insurance recovery 1 — — — — —
Net change in working
capital pertaining to
operating activities (21) (94) 35 35 (55) 121
Unrealized losses/
(gains) on commodity
risk management
activities (1) (3) 6 (2) 2 —
Amortization of excess
equity method
investment 2 — — — — —
Proportionate share of
unconsolidated
affiliates’ interest,
depreciation and
provision for income
taxes 20 5 16 16 24 24
Non-cash accrued
liability adjustment (10) — — — — —
Adjustments to
commodity hedges
resulting from "push-
down" accounting — (12) — — — —
Provision for income
taxes 30 8 24 25 8 —
Other 8 26 12 (9) 8 8
Adjusted EBITDA $ 871 $ 219 $ 591 $ 573 $ 399 $ 372
Our management believes Adjusted EBITDA and distributable cash flow information enhances an investor's
understanding of a business's ability to generate cash for payment of distributions and other purposes. In addition, Adjusted
EBITDA is also used as a measure in determining our compliance with certain revolving credit facility covenants. However,
there may be contractual, legal, economic or other reasons which may prevent us from satisfying principal and interest
obligations with respect to indebtedness and may require us to allocate funds for other purposes. Adjusted EBITDA and
distributable cash flow do not represent and should not be considered alternatives to net income or cash flows from operating
activities as determined under GAAP and may not be comparable to other similarly titled measures of other businesses.