ETP RETAIL HOLDINGS, LLC
NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS (Continued)
(Dollars in millions)
published price from the appropriate exchange as a Level 1 valuation. Level 2 inputs are inputs observable for similar assets and liabilities. Level 3 inputs are unobservable.
Fair Value of Financial Instruments
carrying amounts recorded for cash, accounts receivable, certain other current assets, accounts payable, and accrued expenses and other current liabilities in the consolidated and combined financial statements approximate fair value because of the
short-term maturity of the instruments.
Sunoco Retail LLC (Sunoco Retail) was formed in December 2015 as an indirect wholly-owned subsidiary of ETP. On March 31, 2016,
100% of the equity interests in Sunoco Retail were contributed to the Company. Immediately prior to this contribution, Sunoco Retails assets included (i) the retail assets and the ethanol plant located in Fulton, NY formerly owned by Sunoco,
Inc. (R&M), (ii) the retail assets formerly owned by Atlantic Refining and Marketing Corp; and (iii) 100% of the membership interests in Sunmarks LLC.
On March 31, 2016, effective January 1, 2016, the Company contributed to Sunoco LP the remaining 68.42% membership interest in Sunoco LLC and
100% of the membership interest in Sunoco Retail for approximately $2.2 billion in cash (including the expected value of working capital) and the issuance to the Company of 5,710,922 Sunoco LP common units.
4. Investments in Unconsolidated Affiliates:
The Company has a 68.42% interest in Sunoco LLC as of December 31, 2015.
The Companys investment in PES
consists of a non-controlling membership interest in PES comprising 33% of PESs outstanding common units. PES is a joint venture with The Carlyle Group, L.P. (The Carlyle Group), which owns two crude oil refining facilities in
Philadelphia, Pennsylvania and an adjacent crude oil rail unloading terminal.
At December 31, 2015, the Companys investment in Sunoco LP consists of 4,779,022 Sunoco LP common units that were issued to the
Company as part of the consideration for the MACS and Sunoco LLC Transactions described in Note 1. The Companys investment represented approximately 5% of the total outstanding Sunoco LP common units at December 31, 2015. The Companys
investment in Sunoco LP is accounted for in our consolidated financial statements using the equity method because the Company is presumed to have significant influence over Sunoco LP due to the affiliate relationship resulting from both entities
being under the common control of ETE.