Sunoco 2013 Annual Report Download - page 68

66
(in millions)
Current assets $ 2,449
Properties, plants and equipment 5,555
Investment in affiliates 119
Goodwill (1) 1,346
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 $601 million allocated to the Crude Oil Pipelines, Crude Oil Acquisition and Marketing and
Terminal Facilities segments, respectively.
In July 2013, the limited liability agreement of Sunoco Partners LLC was amended to reflect the addition of ETE
Common Holdings, LLC ("ETE Holdings") as an owner of a 0.1 percent membership interest in the Partnership's general
partner. ETE Holdings is a wholly-owned subsidiary of Energy Transfer Equity, L.P., and an affiliate of ETP. This change in the
ownership of the general partner did not impact the Partnership's consolidated financial statements. Subsequent to the
amendment, the Partnership remains a consolidated subsidiary of ETP. In addition, the 33.5 million common units owned by
Sunoco Partners LLC were assigned to ETP.
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"), 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. All significant intercompany accounts and transactions are eliminated in consolidation and noncontrolling interests
in net income and equity 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,
but over which the Partnership can exercise significant influence, 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.
Reclassification
Certain amounts in the prior years’ consolidated financial statements have been reclassified to conform to the current-year
presentation.
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, refined products and NGLs 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 to the Partnership's end markets. Any net differential for exchange
transactions is recorded as an adjustment to cost of products sold in the consolidated statements of comprehensive income.