Sunoco 2013 Annual Report Download - page 79

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9. Goodwill and Other Intangible Assets
Goodwill
Goodwill represents the excess of consideration transferred plus the fair value of noncontrolling interests of an acquired
business over the fair value of net assets acquired. Goodwill is subject to impairment testing at least annually. The Partnership's
goodwill balance at December 31, 2013 and 2012 was $1,346 and $1,368 million, respectively. The decrease in the
Partnership's goodwill balance related to adjustments made during the measurement period to the fair values of the
Partnership's assets and liabilities resulting from the application of push-down accounting in connection with the acquisition of
the general partner by ETP (Note 1).
Identifiable Intangible Assets
The Partnership's identifiable intangible assets are comprised of customer relationships, which consist of throughput
contracts and historical shipping rights, and patented technology associated with the Partnership's butane blending services. The
values assigned to these intangible assets are amortized to earnings using a straight-line approach, over a weighted average
amortization period of approximately 17 years. Amortization expense related to these intangibles was $49, $12, $20 and $15
million for the year ended December 31, 2013, for the periods from October 5, 2012 to December 31, 2012 and from January 1,
2012 to October 4, 2012, and for the year ended December 31, 2011, respectively.
Customer relationship intangible assets represent the estimated economic value assigned to certain relationships acquired
in connection with business combinations or asset purchases whereby (i) the Partnership acquired information about or access
to customers, (ii) the customers now have the ability to transact business with the Partnership and (iii) the Partnership is
positioned due to limited competition to provide products or services to the customers. The customer relationship intangible
assets are amortized on a straight-line basis over their respective economic lives. Technology-related intangible assets consist
of the Partnership's patents for blending of butane into refined products. These patents are amortized over their remaining legal
lives.
Successor
December 31,
Weighted Average
Amortization Period 2013 2012
(in years) (in millions)
Gross
Customer relationships 18 $ 808 $ 808
Technology 10 47 47
Total gross 855 855
Accumulated amortization
Customer relationships (56)(11)
Technology (5)(1)
Total accumulated amortization (61)(12)
Total Net $ 794 $ 843
As of December 31, 2013, the Partnership forecasts $49 million of annual amortization expense for each year through the
year 2018 for these intangible assets.
Intangible assets attributable to rights of way are included in properties, plants and equipment in the Partnership's
consolidated balance sheets at December 31, 2013 and December 31, 2012.