Note 2 - Acquisitions Acquisitions (Tables)

12 Months Ended

Dec. 31, 2018

Preliminary Acquisition Date Purchase Price Allocation (in millions)



Cash	$	22
Receivables	112
Inventories	11
Prepayments and Other Current Assets	25
Property, Plant and Equipment (a)	1,295
Goodwill	620
Acquired Intangibles	130
Other Noncurrent Assets	2
Accounts Payable	(167		)
Accrued Liabilities	(41		)
Debt	(347		)
Total purchase price	$	1,662


(a)	Estimated useful lives ranging from 3 to 22 years have been assumed based on the valuation.

Reconciliation of Combined Financial Statements (in millions)



	Year Ended December 31, 2018
	Combined			Andeavor Logistics LP			Predecessors
Revenues:
Fee-based:
Affiliate	$	1,309		$	1,288		$	21
Third-party	591			582			9
Product-based:
Affiliate	280			280			—
Third-party	200			200			—
Total Revenues	2,380			2,350			30
Costs and Expenses
NGL expense (exclusive of items shown separately below)	206			206			—
Operating expenses (exclusive of depreciation and amortization)	885			845			40
General and administrative expenses	121			112			9
Depreciation and amortization expenses	368			346			22
Loss on asset disposals and impairments	4			4			—
Operating Income (Loss)	796			837			(41		)
Interest and financing costs, net	(233		)	(229		)	(4		)
Equity in earnings of equity method investments	31			15			16
Other income, net	6			5			1
Net Earnings (Loss)	$	600		$	628		$	(28	)
Loss attributable to Predecessors	28			—			28
Net Earnings Attributable to Partners	628			628			—
Preferred unitholders’ interest in net earnings	(44		)	(44		)	—
Limited Partners’ Interest in Net Earnings	$	584		$	584		$	—



	Year Ended December 31, 2017
	Combined			Andeavor Logistics LP			Predecessors
Revenues:
Fee-based:
Affiliate	$	942		$	796		$	146
Third-party	656			647			9
Product-based:
Affiliate	489			213			276
Third-party	1,162			495			667
Total Revenues	3,249			2,151			1,098
Costs and Expenses
Cost of fuel and other (excluding items shown separately below)	1,244			330			914
NGL expense (exclusive of items shown separately below)	265			265			—
Operating expenses (exclusive of depreciation and amortization)	691			554			137
General and administrative expenses	158			121			37
Depreciation and amortization expenses	313			255			58
Gain on asset disposals and impairments	(25		)	(24		)	(1		)
Operating Income (Loss)	603			650			(47		)
Interest and financing costs, net	(330		)	(321		)	(9		)
Equity in earnings of equity method investments	22			10			12
Other income, net	11			10			1
Net Earnings (Loss)	$	306		$	349		$	(43	)
Loss attributable to Predecessors	43			—			43
Net Earnings Attributable to Partners	349			349			—
Preferred unitholders’ interest in net earnings	(3		)	(3		)	—
General partner’s interest in net earnings, including IDRs	(79		)	(79		)	—
Limited Partners’ Interest in Net Earnings	$	267		$	267		$	—



	Year Ended December 31, 2016
	Combined			Andeavor Logistics LP			Predecessors
Revenues:
Fee-based:
Affiliate	$	747		$	615		$	132
Third-party	819			502			317
Product-based:
Affiliate	100			100			—
Third-party	3			3			—
Total Revenues	1,669			1,220			449
Costs and Expenses
Cost of fuel and other (excluding items shown separately below)	316			—			316
NGL expense (exclusive of items shown separately below)	2			2			—
Operating expenses (exclusive of depreciation and amortization)	560			426			134
General and administrative expenses	106			94			12
Depreciation and amortization expenses	233			183			50
Loss on asset disposals and impairments	4			4			—
Operating Income (Loss)	448			511			(63		)
Interest and financing costs, net	(195		)	(196		)	1
Equity in earnings of equity method investments	13			13			—
Other income, net	11			11			—
Net Earnings (Loss)	$	277		$	339		$	(62	)
Loss attributable to Predecessors	62			—			62
Net Earnings Attributable to Partners	339			339			—
General partner’s interest in net earnings, including IDRs	(152		)	(152		)	—
Limited Partners’ Interest in Net Earnings	$	187		$	187		$	—