Sunoco 2015 Annual Report Download - page 85

83
At December 31, 2015, the Partnership's investments in Explorer Pipeline Company, Yellowstone Pipe Line Company,
West Shore Pipe Line Company and Wolverine Pipe Line Company included net excess investment amounts of $123 million.
The excess investment is the difference between the investment balances and the Partnership's equity in the net assets of the
entities. The Partnership has not provided additional financial support to any of the Refined Products joint ventures during the
2013 through 2015 periods.
The Partnership had $52 million of undistributed earnings from its investments in corporate joint ventures within equity
at December 31, 2015. During the years ended December 31, 2015, 2014 and 2013, the Partnership recorded equity income of
$24, $25, and $21 million, respectively, and received dividends of $23, $14, and $14 million, respectively, from its investments
in corporate joint ventures.
9. Goodwill and Other Intangible Assets
Goodwill
Goodwill, which represents the excess of the purchase price in a business combination over the fair value of net assets
acquired, is tested for impairment annually in the fourth quarter, or more often if events or changes in circumstances indicate
that the carrying value of goodwill may exceed its estimated fair value. The Partnership's goodwill balance at December 31,
2015 and 2014 was $1,358 million. There were no goodwill impairments recorded during the 2013 through 2015 period.
In connection with the change in the Partnership's reporting segments in the fourth quarter 2015, goodwill was reassigned
to the new reporting segments. The Partnership's legacy Crude Oil Pipelines, Crude Oil Acquisition and Marketing, and
Terminal Facilities segments included goodwill of $200, $557, and $601 million, respectively. The goodwill related to the
legacy Crude Oil Pipelines and Crude Oil Acquisition and Marketing segments was combined under the Partnership's new
segment alignment, while the goodwill related to the legacy Terminal Facilities segment was allocated to the new segments
based on a relative fair value basis. Subsequent to the realignment of its reporting segments, the Partnership's Crude Oil,
Natural Gas Liquids, and Refined Products segments include goodwill of $912, $357 and $89 million, respectively.
The Partnership will continue to monitor the volatility in the energy markets and the impact it could have on the
estimated fair value of its reporting segments. It is possible that continued negative volatility within these markets could change
the Partnership's conclusion regarding whether goodwill is impaired.
Identifiable Intangible Assets
The Partnership's identifiable intangible assets are comprised of customer relationships 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 $52, $52, and $49 million for the years ended December 31, 2015, 2014 and 2013,
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.