Supplemental Condensed Consolidating Financial Information | Supplemental Condensed Consolidating Financial Information The Partnership serves as guarantor of the senior notes. These guarantees are full and unconditional. For the purposes of this footnote, Sunoco Logistics Partners L.P. is referred to as "Parent Guarantor" and Sunoco Logistics Partners Operations L.P. is referred to as "Subsidiary Issuer." All other consolidated subsidiaries of the Partnership are collectively referred to as "Non-Guarantor Subsidiaries." The following supplemental condensed consolidating financial information reflects the Parent Guarantor's separate accounts, the Subsidiary Issuer's separate accounts, the combined accounts of the Non-Guarantor Subsidiaries, the combined consolidating adjustments and eliminations, and the Parent Guarantor's consolidated accounts for the dates and periods indicated. For purposes of the following condensed consolidating information, the Parent Guarantor's investments in its subsidiaries and the Subsidiary Issuer's investments in its subsidiaries are accounted for under the equity method of accounting. Condensed Consolidating Statement of Comprehensive Income (Loss) Three Months Ended March 31, 2016 (in millions, unaudited) Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Consolidating Adjustments Total Revenues Sales and other operating revenue: Unaffiliated customers $ — $ — $ 1,668 $ — $ 1,668 Affiliates — — 109 — 109 Total Revenues — — 1,777 — 1,777 Costs and Expenses Cost of products sold — — 1,413 — 1,413 Operating expenses — — 23 — 23 Selling, general and administrative expenses — — 26 — 26 Depreciation and amortization expense — — 106 — 106 Impairment charge and other matters — — 26 — 26 Total Costs and Expenses — — 1,594 — 1,594 Operating Income — — 183 — 183 Interest cost and debt expense, net — (64 ) (1 ) — (65 ) Capitalized interest — 26 — — 26 Other income — — 7 — 7 Equity in earnings of subsidiaries 145 183 — (328 ) — Income (Loss) Before Provision for Income Taxes 145 145 189 (328 ) 151 Provision for income taxes — — (5 ) — (5 ) Net Income (Loss) 145 145 184 (328 ) 146 Net income attributable to noncontrolling interests — — (1 ) — (1 ) Net Income (Loss) Attributable to Sunoco Logistics Partners L.P. $ 145 $ 145 $ 183 $ (328 ) $ 145 Comprehensive Income (Loss) $ 145 $ 145 — $ 185 $ (328 ) $ 147 Less: Comprehensive income attributable to noncontrolling interests — — (1 ) — (1 ) Comprehensive Income (Loss) Attributable to Sunoco Logistics Partners L.P. $ 145 $ 145 $ 184 $ (328 ) $ 146 Condensed Consolidating Statement of Comprehensive Income (Loss) Three Months Ended March 31, 2015 (in millions, unaudited) Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Consolidating Adjustments Total Revenues Sales and other operating revenue: Unaffiliated customers $ — $ — $ 2,453 $ — $ 2,453 Affiliates — — 119 — 119 Total Revenues — — 2,572 — 2,572 Costs and Expenses Cost of products sold — — 2,318 — 2,318 Operating expenses — — 40 — 40 Selling, general and administrative expenses — — 25 — 25 Depreciation and amortization expense — — 82 — 82 Impairment charge and other matters — — 41 — 41 Total Costs and Expenses — — 2,506 — 2,506 Operating Income — — 66 — 66 Interest cost and debt expense, net — (49 ) (1 ) — (50 ) Capitalized interest — 21 — — 21 Other income — — 6 — 6 Equity in earnings of subsidiaries 36 64 — (100 ) — Income (Loss) Before Provision for Income Taxes 36 36 71 (100 ) 43 Provision for income taxes — — (6 ) — (6 ) Net Income (Loss) 36 36 65 (100 ) 37 Less: Net income attributable to noncontrolling interests — — (1 ) — (1 ) Net Income (Loss) Attributable to Sunoco Logistics Partners L.P. $ 36 $ 36 $ 64 $ (100 ) $ 36 Comprehensive Income (Loss) $ 36 $ 36 $ 64 $ (100 ) $ 36 Less: Comprehensive income attributable to noncontrolling interests — — (1 ) — (1 ) Comprehensive Income (Loss) Attributable to Sunoco Logistics Partners L.P. $ 36 $ 36 $ 63 $ (100 ) $ 35 Condensed Consolidating Balance Sheet March 31, 2016 (in millions, unaudited) Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Consolidating Adjustments Total Assets Cash and cash equivalents $ — $ 43 $ — $ — $ 43 Accounts receivable, affiliated companies — 8 35 — 43 Accounts receivable, net — — 1,146 — 1,146 Inventories — — 683 — 683 Other current assets — — 15 — 15 Total Current Assets — 51 1,879 — 1,930 Properties, plants and equipment, net — — 11,079 — 11,079 Investment in affiliates 6,637 9,883 911 (16,520 ) 911 Goodwill — — 1,358 — 1,358 Intangible assets, net — — 705 — 705 Other assets — 5 66 — 71 Total Assets $ 6,637 $ 9,939 $ 15,998 $ (16,520 ) $ 16,054 Liabilities and Equity Accounts payable $ — $ 2 $ 1,340 $ — $ 1,342 Accounts payable, affiliated companies — — 20 — 20 Accrued liabilities — 54 162 — 216 Accrued taxes payable — — 33 — 33 Intercompany (1,409 ) (2,722 ) 4,131 — — Total Current Liabilities (1,409 ) (2,666 ) 5,686 — 1,611 Long-term debt — 5,968 — — 5,968 Other deferred credits and liabilities — — 126 — 126 Deferred income taxes — — 254 — 254 Total Liabilities (1,409 ) 3,302 6,066 — 7,959 Redeemable noncontrolling interests — — 15 — 15 Redeemable Limited Partners' interests 290 — — — 290 Total Equity 7,756 6,637 9,917 (16,520 ) 7,790 Total Liabilities and Equity $ 6,637 $ 9,939 $ 15,998 $ (16,520 ) $ 16,054 Condensed Consolidating Balance Sheet December 31, 2015 (in millions, audited) Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Consolidating Adjustments Total Assets Cash and cash equivalents $ — $ 37 $ — $ — $ 37 Accounts receivable, affiliated companies — 3 17 — 20 Accounts receivable, net — — 1,165 — 1,165 Inventories — — 607 — 607 Other current assets — — 19 — 19 Total Current Assets — 40 1,808 — 1,848 Properties, plants and equipment, net — — 10,692 — 10,692 Investment in affiliates 6,488 9,692 802 (16,180 ) 802 Goodwill — — 1,358 — 1,358 Intangible assets, net — — 718 — 718 Other assets — 6 65 — 71 Total Assets $ 6,488 $ 9,738 $ 15,443 $ (16,180 ) $ 15,489 Liabilities and Equity Accounts payable $ — $ 1 $ 1,250 $ — $ 1,251 Accounts payable, affiliated companies — — 39 — 39 Accrued liabilities 1 66 262 — 329 Accrued taxes payable — — 44 — 44 Intercompany (1,320 ) (2,408 ) 3,728 — — Total Current Liabilities (1,319 ) (2,341 ) 5,323 — 1,663 Long-term debt — 5,591 — — 5,591 Other deferred credits and liabilities — — 125 — 125 Deferred income taxes — — 254 — 254 Total Liabilities (1,319 ) 3,250 5,702 — 7,633 Redeemable noncontrolling interests — — 15 — 15 Redeemable Limited Partners' interests 286 — — — 286 Total Equity 7,521 6,488 9,726 (16,180 ) 7,555 Total Liabilities and Equity $ 6,488 $ 9,738 $ 15,443 $ (16,180 ) $ 15,489 Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2016 (in millions, unaudited) Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Consolidating Adjustments Total Net Cash Flows from Operating Activities $ 145 $ 127 $ 176 $ (328 ) $ 120 Cash Flows from Investing Activities: Capital expenditures — — (580 ) — (580 ) Change in long-term note receivable — — (1 ) — (1 ) Intercompany (229 ) (501 ) 402 328 — Net cash provided by (used in) investing activities (229 ) (501 ) (179 ) 328 (581 ) Cash Flows from Financing Activities: Distributions paid to limited and general partners (216 ) — — — (216 ) Distributions paid to noncontrolling interests (1 ) — — — (1 ) Net proceeds from issuance of limited partner units 301 — — — 301 Repayments under credit facilities — (813 ) — — (813 ) Borrowings under credit facilities — 1,193 — — 1,193 Contributions attributable to acquisition from affiliate — — 3 — 3 Net cash provided by financing activities 84 380 3 — 467 Net change in cash and cash equivalents — 6 — — 6 Cash and cash equivalents at beginning of period — 37 — — 37 Cash and cash equivalents at end of period $ — $ 43 $ — $ — $ 43 Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2015 (in millions, unaudited) Parent Guarantor Subsidiary Issuer Non-Guarantor Subsidiaries Consolidating Adjustments Total Net Cash Flows from Operating Activities $ 36 $ 38 $ (50 ) $ (100 ) $ (76 ) Cash Flows from Investing Activities: Capital expenditures — — (567 ) — (567 ) Acquisitions — — (131 ) — (131 ) Change in long-term note receivable — — (6 ) — (6 ) Intercompany (579 ) (280 ) 759 100 — Net cash provided by (used in) investing activities (579 ) (280 ) 55 100 (704 ) Cash Flows from Financing Activities: Distributions paid to limited and general partners (146 ) — — — (146 ) Net proceeds from issuance of limited partner units 689 — — — 689 Payments of statutory withholding on net issuance of limited partner units under LTIP — — (8 ) — (8 ) Repayments under credit facilities — (750 ) — — (750 ) Borrowings under credit facilities — 950 — — 950 Contributions attributable to acquisition from affiliate — — 3 — 3 Other — (5 ) — — (5 ) Net cash provided by (used in) financing activities 543 195 (5 ) — 733 Net change in cash and cash equivalents — (47 ) — — (47 ) Cash and cash equivalents at beginning of period — 101 — — 101 Cash and cash equivalents at end of period $ — $ 54 $ — $ — $ 54 |