Acquisitions

6 Months Ended

Jun. 30, 2019

ACQUISITIONS AND DIVESTITURE [Abstract]

Acquisitions

ACQUISITIONS AND OTHER INVESTING TRANSACTIONS

Sunoco LP Retail Store and Real Estate Sales

On January 23, 2018, Sunoco LP completed the disposition of assets pursuant to the purchase agreement with 7-Eleven, Inc. (the “7-Eleven Transaction”). As a result of the 7-Eleven Transaction, previously eliminated wholesale motor fuel sales to Sunoco LP’s retail locations are reported as wholesale motor fuel sales to third parties. Also, the related accounts receivable from such sales are no longer eliminated from the Partnership’s consolidated balance sheets and are reported as accounts receivable.

In connection with the 7-Eleven Transaction, Sunoco LP entered into a Distributor Motor Fuel Agreement dated as of January 23, 2018, as amended (“Supply Agreement”), with 7-Eleven and SEI Fuel (collectively, “Distributor”). The Supply Agreement consists of a 15-year take-or-pay fuel supply arrangement. For the period from January 1, 2018 through January 22, 2018, Sunoco LP recorded sales to the sites that were subsequently sold to 7-Eleven of $199 million, which were eliminated in consolidation. Sunoco LP received payments on trade receivables from 7-Eleven of $1.1 billion and $1.9 billion for the three and six months ended June 30, 2019, respectively, and $979 million and $1.6 billion for the three and six months ended June 30, 2018, respectively, subsequent to the closing of the sale.

The Partnership has concluded that it meets the accounting requirements for reporting the financial position, results of operations and cash flows of Sunoco LP’s retail divestment as discontinued operations.

There were no results of operations associated with discontinued operations for the three and six months ended June 30, 2019. The results of operations associated with discontinued operations for the three and six months ended ended June 30, 2018 were as follows:

	Three Months Ended June 30, 2018			Six Months Ended June 30, 2018
REVENUES	$	—		$	349
COSTS AND EXPENSES
Cost of products sold	—			305
Operating expenses	—			61
Selling, general and administrative	5			7
Total costs and expenses	5			373
OPERATING LOSS	(5		)	(24		)
Interest expense, net	—			2
Loss on extinguishment of debt and other	—			20
Other, net	38			61
LOSS FROM DISCONTINUED OPERATIONS BEFORE INCOME TAX EXPENSE (BENEFIT)	(43		)	(107		)
Income tax expense (benefit)	(17		)	156
LOSS FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES	$	(26	)	$	(263	)
LOSS FROM DISCONTINUED OPERATIONS BEFORE INCOME TAX EXPENSE (BENEFIT) ATTRIBUTABLE TO ET	$	(1	)	$	(10	)