Sunoco 2015 Annual Report Download - page 82

80
Contributions Attributable to Acquisition from Affiliate
In the fourth quarter 2014, the Partnership acquired land at Eagle Point from Sunoco under a purchase option embedded
in an existing lease. As a transaction between entities under common control, the land was recorded at Sunoco's historical
carrying value, resulting in an increase to equity of $54 million.
Capital Contributions
During the years ended December 31, 2015, 2014 and 2013, the Partnership issued 0.4, 0.4 and less than 0.1 million
limited partnership units, respectively, to participants in the Sunoco Partners LLC Long-Term Incentive Plan upon completion
of award vesting requirements. As a result of these issuances of limited partnership units, the general partner contributed less
than $0.5 million to the Partnership in 2014 and 2013 to maintain its two percent general partner interest. The Partnership
recorded these amounts as capital contributions to equity within its consolidated financial statements. These contributions were
previously required for the general partner to maintain its two percent general partner interest. In July 2014, the Partnership
agreement was amended to remove the obligation of the general partner to make capital contributions upon the issuance of
limited partner units to retain a two percent interest. Prior to this amendment, the general partner contributed $2 million in
connection with the Partnership's issuance of limited partner units under its at-the-market equity offering program ("ATM"
program) in 2014. The general partner did not make any capital contributions to the Partnership in 2015.
5. Net Income Attributable to Sunoco Logistics Partners L.P. Per Limited Partner Unit
The general partner's interest in net income attributable to SXL consists of its approximate two percent general partner
interest and "incentive distributions," which are increasing percentages, up to 50 percent of quarterly distributions in excess of
$0.0833 per limited partner unit (Note 13). The general partner was allocated net income attributable to SXL of $288 million
(representing 73 percent of total net income attributable to SXL) for the year ended December 31, 2015; $181 million
(representing 62 percent of total net income attributable to SXL) for the year ended December 31, 2014; $124 million
(representing 27 percent of total net income attributable to SXL) for the year ended December 31, 2013. Diluted net income
attributable to SXL per limited partner unit is calculated by dividing the limited partners' interest in net income attributable to
SXL by the sum of the weighted average number of limited partner and Class B units outstanding, and the dilutive effect of
incentive unit awards (Note 14).
The following table sets forth the reconciliation of the weighted average number of limited partner and Class B units used
to compute basic net income attributable to SXL per limited partner unit to those used to compute diluted net income
attributable to SXL per limited partner unit for the periods presented:
Year Ended December 31,
2015 2014 2013
(in millions)
Weighted average number of units outstanding—basic (1) 250.9 212.9 207.6
Add effect of dilutive incentive awards (1) 0.8 1.2 1.0
Weighted average number of units—diluted (1) 251.7 214.1 208.6
(1) Amounts reflect the second quarter 2014 two-for-one unit split (Note 12).