Sunoco LP
For the period ended Dec 31, 2023. Filed Feb 16, 2024.
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FY2023 · Filed Feb 16, 2024
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7. Goodwill and Other Intangible Assets
- Goodwill and Intangible Assets, net
Goodwill
Goodwill balances and activity for the years ended December 31, 2023 and 2022 consisted of the following:
| Segment | |||
|---|---|---|---|
| Fuel Distribution and Marketing | All Other | Consolidated | |
| Balance at December 31, 2021 | $1,268 | $300 | $1,568 |
| Goodwill related to transmix processing and terminal acquisition | 20 | — | 20 |
| Goodwill related to Peerless acquisition | 13 | — | 13 |
| Balance at December 31, 2022 | 1,301 | 300 | 1,601 |
| Other adjustments | (2) | — | (2) |
| Balance at December 31, 2023 | $1,299 | $300 | $1,599 |
During the fourth quarters of 2023, 2022 and 2021, we used qualitative factors to determine whether it was more likely than not (likelihood of more than 50%) that the fair value of a reporting unit exceeded its carrying amount. No goodwill impairment was identified for the reporting units as a result of these tests.
Intangible Assets, net
Gross carrying amounts and accumulated amortization for each major class of intangible assets, excluding goodwill, consisted of the following:
| December 31, 2023 | December 31, 2022 | |||||
|---|---|---|---|---|---|---|
| GrossCarryingAmount | AccumulatedAmortization | NetBook Value | GrossCarryingAmount | AccumulatedAmortization | NetBook Value | |
| Indefinite-lived | ||||||
| Tradenames | $302 | $— | $302 | $302 | $— | $302 |
| Liquor licenses | 12 | — | 12 | 12 | — | 12 |
| Finite-lived | ||||||
| Customer relations including supply agreements | 669 | 440 | 229 | 669 | 396 | 273 |
| Other intangibles | 8 | 7 | 1 | 8 | 7 | 1 |
| Intangible assets, net | $991 | $447 | $544 | $991 | $403 | $588 |
During the fourth quarters of 2023, 2022 and 2021, we performed the annual impairment tests on our indefinite-lived intangible assets. No impairments were recorded in 2023, 2022 and 2021.
Total amortization expense on finite-lived intangibles included in depreciation, amortization and accretion was $44 million, $48 million and $52 million for the years ended December 31, 2023, 2022 and 2021, respectively.
Customer relations and supply agreements have a remaining weighted average life of approximately 10 years.
As of December 31, 2023, the Partnership’s estimate of amortization for each of the five succeeding fiscal years and thereafter for finite-lived intangibles was as follows:
| Amortization | |
|---|---|
| 2024 | $34 |
| 2025 | 24 |
| 2026 | 24 |
| 2027 | 24 |
| 2028 | 24 |
| Thereafter | 100 |
| Total | $230 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.