e | 394 | | Balance at December 31, 2023 | $ 978 | | | |

The accompanying notes are an integral part of these consolidated financial statements.

Year Ended December 31,

SUNOCO LP CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in millions)

| | 2023 | 2022 | 2021 | |-----------------------------------------------------------------------------------|-----------|-------------------------|-----------| | OPERATING ACTIVITIES: | | | | | Net income | $ 394 | $ 475 | $ 524 | | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | Depreciation, amortization and accretion | 187 | 193 | 177 | | Amortization of deferred financing fees | 8 | 7 | 7 | | Gain on disposal of assets | (7) | (13) | (14) | | Loss on extinguishment of debt | — | — | 36 | | Non-cash unit-based compensation expense | 17 | 14 | 16 | | Deferred income tax | 13 | 28 | 10 | | Inventory adjustments | 114 | (5) | (190) | | Equity in earnings of unconsolidated affiliates | (5) | (4) | (4) | | Changes in operating assets and liabilities, net of acquisitions: | | | | | Accounts receivable | 34 | (312) | (231) | | Receivables from affiliates | (5) | (3) | (1) | | Inventories | (182) | (172) | 38 | | Other assets | 47 | (94) | (95) | | Accounts payable | (101) | 390 | 296 | | Accounts payable to affiliates | 61 | 50 | (20) | | Accrued expenses and other current liabilities | 43 | — | 9 | | Other non-current liabilities | (18) | 7 | (15) | | Net cash provided by operating activities | 600 | 561 | 543 | | INVESTING ACTIVITIES: | | | | | Capital expenditures | (215) | (186) | (174) | | Distributions from unconsolidated affiliates in excess of cumulative earnings | 9 | 8 | 9 | | Cash paid for acquisitions, net of cash acquired | (111) | (318) | (256) | | Proceeds from disposal of property and equipment | 31 | 32 | 34 | | Other | (2) | — | — | | Net cash used in investing activities | (288) | (464) | (387) | | FINANCING ACTIVITIES: | | | | | Senior Notes borrowings | 500 | — | 800 | | Senior Notes repayments | — | — | (1,252) | | Credit Facility borrowings | 3,283 | 4,127 | 1,922 | | Credit Facility repayments | (3,772) | (3,808) | (1,341) | | Loan origination costs | (5) | — | — | | Cash distribution to unitholders, including incentive distributions | (371) | (359) | (357) | | Net cash used in financing activities | (365) | (40) | (228) | | Net increase (decrease) in cash and cash equivalents | (53) | 57 | (72) | | Cash and cash equivalents at beginning of period | 82 | 25 | 97 | | Cash and cash equivalents at end of period | $ 29 | $ 82 | $ 25 | | | | Year Ended December 31, | | | | 2023 | 2022 | 2021 | | SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING ACTIVITIES: | | | | | Change in note payable to affiliate | $ 2 | $ 6 | $ 4 | | Payable due to seller in acquisition | — | 10 | — | | SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | | | | | Interest paid | 202 | 176 | 174 | | | | | | The accompanying notes are an integral part of these consolidated financial statements.

Income taxes paid, net 29 30 14

SUNOCO LP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular dollar amounts, except per unit data, are in millions)

1. Organization and Principles of Consolidation

As used in this document, the terms "Partnership," "SUN," "we," "us" and "our" should be understood to refer to Sunoco LP and our consolidated subsidiaries, unless the context clearly indicates otherwise.

Source: Item 22 — CONTRACTS (FDD page 68)