Sunoco 2014 Annual Report Download - page 52

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50
The following table presents the operating results and key operating measures for our Terminal Facilities segment for the
periods presented:
Successor Predecessor
Year Ended
December 31,
2014
Year Ended
December 31,
2013
Three Months
Ended
December 31,
2013
Nine Months
Ended
September 30,
2013
Period from
Acquisition,
October 5, 2012
to December 31,
2012 (1)
Period from
January 1, 2012
to October 4,
2012 (1)
(in millions, except for barrel amounts)
(in millions,
except for barrel
amounts)
Sales and other operating revenue
Unaffiliated customers $ 968 $ 561 $ 175 $ 386 $ 148 $ 264
Affiliates 202 139 28 111 50 118
Intersegment revenue 54 51 12 39 8 24
Total sales and other operating
revenue $ 1,224 $ 751 $ 215 $ 536 $ 206 $ 406
Depreciation and amortization expense $ 111 $ 101 $ 26 $ 75 $ 23 $ 28
Impairment charge and other related
matters (2) $ 27 $ — $ — $ — $ — $ (10)
Adjusted EBITDA $ 346 $ 233 $ 62 $ 171 $ 52 $ 173
Terminal throughput (thousands of bpd)
Refined products terminals 414 431 422 434 451 499
Nederland terminal 1,233 932 977 917 787 703
Refinery terminals 288 397 324 421 411 369
(1) The effective date of the acquisition for accounting and reporting purposes was deemed to be October 1, 2012. The activity from
October 1, 2012 through October 4, 2012 was not material in relation to our financial position, results of operations or cash flows.
(2) In the fourth quarter 2014, we recognized a non-cash impairment charge to write down refined product and NGL inventories
resulting from the decline in commodity prices. In the second quarter 2012, we recognized a $10 million gain on the reversal of
certain regulatory obligations that were no longer expected to be incurred.
Adjusted EBITDA for the Terminal Facilities segment increased $113 million to $346 million for the year ended December
31, 2014 compared to $233 million for the year ended December 31, 2013. The increase in Adjusted EBITDA was due primarily
to higher volumes and increased margins from our refined products and NGLs acquisition and marketing activities ($101
million) which included favorable inventory timing compared to the prior year period. Improved contributions from our bulk
marine terminals ($16 million) also contributed to the increase. These positive factors were partially offset by lower volumes at
our refined products terminals ($4 million).
Adjusted EBITDA for the Terminal Facilities segment for the fourth quarter 2013 increased $10 million compared to the
period from October 5, 2012 to December 31, 2012. The increase in Adjusted EBITDA was due primarily to improved
contributions from our bulk marine terminals ($15 million). These increases were partially offset by decreased operating results
from our refined products acquisition and marketing activities ($3 million), which was negatively impacted by inventory timing.
Adjusted EBITDA for the Terminal Facilities segment decreased $2 million to $171 million for the nine months ended
September 30, 2013, compared to $173 million for the period from January 1, 2012 to October 4, 2012. Results for the first nine
months of 2012 included $16 million of non-recurring gains recognized in connection with the sale of the Big Sandy terminal
and pipeline assets ($6 million) and the reversal of regulatory obligations ($10 million). Excluding these items, Adjusted
EBITDA increased $14 million due primarily to improved results from our bulk marine terminals ($32 million), partially offset
by volume reductions at our refined products terminals ($11 million) and higher selling, general and administrative expenses ($3
million).
Products Pipelines
Our Products Pipelines segment consists of refined products and NGL pipelines, including a two-thirds undivided interest
in the Harbor pipeline and joint venture interests in four products pipelines in selected areas of the United States. The Products
Pipeline System primarily earns revenues by transporting refined products and NGLs from refineries in the northeast, midwest
and southwest United States to markets in six states and Canada. Rates for shipments on these pipelines are regulated by the
FERC and the Pennsylvania Public Utility Commission ("PA PUC").