Sunoco 2014 Annual Report Download - page 72

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The following table summarizes the final allocation of the fair value of partners' capital balances to the assets and
liabilities of the Partnership as of the acquisition date:
(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 67.1 million common units owned by
Sunoco Partners LLC were assigned to ETP.
On June 12, 2014, the Partnership completed a two-for-one stock split of its common units. The unit split resulted in the
issuance of one additional common unit for every one common unit owned. All unit and per unit information included in this
report are presented on a post-split basis.
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. At December 31, 2014, the
Partnership held a controlling financial interest in Inland Corporation ("Inland"), Mid-Valley Pipeline Company ("Mid-
Valley"), West Texas Gulf Pipe Line Company ("West Texas Gulf"), and Price River Terminal, LLC ("PRT"), and as such, these
entities are reflected as consolidated subsidiaries of the Partnership. In January 2015, the Partnership acquired the outstanding
noncontrolling interest in West Texas Gulf (see Note 3). The Partnership is not the primary beneficiary of any variable-interest
entities ("VIEs"). 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. During the fourth quarter 2014, the Partnership adjusted its presentation of certain operating expenses and selling,
general and administrative expenses to conform to the presentation utilized by ETP. These changes did not impact net income.