Sunoco 2014 Annual Report Download - page 47

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45
Non-GAAP Financial Measures
To supplement our financial information presented in accordance with United States generally accepted accounting
principles ("GAAP"), management uses additional measures that are known as "non-GAAP financial measures" in its evaluation
of past performance and prospects for the future. The primary measures used by management are earnings before interest, taxes,
depreciation and amortization expenses and other non-cash items ("Adjusted EBITDA") and Distributable Cash Flow ("DCF").
Adjusted EBITDA and DCF 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.
Our management believes Adjusted EBITDA and DCF information enhances an investor's understanding of a business's
ability to generate cash for payment of distributions and other purposes. Adjusted EBITDA calculations are also defined and
used as a measure in determining our compliance with certain revolving credit facility covenants. However, despite compliance
with our credit facility covenants, there may be contractual, legal, economic or other factors which may prevent us from
satisfying principal and interest obligations with respect to indebtedness and may require us to allocate funds for other purposes.
During the fourth quarter 2012, we changed our definition of Adjusted EBITDA and DCF to conform to the presentation
utilized by our general partner. During the first quarter 2013, we also changed our measure of segment profit from operating
income to the revised presentation of Adjusted EBITDA. This change did not impact our reportable segments. Prior period
amounts have been recast to conform to current presentation.