Page 117 - Suncor AR English

19. OTHER ASSETS

Dec 31 Dec 31 Jan 1

($ millions)
2013
2012
2012
(restated – (restated –
note 6)
note 6)

325
309
265
Investments
.......................................................................................................................................................................................................................................................
Prepaids and other 97 110 148

422 419
413

20. GOODWILL AND OTHER INTANGIBLE ASSETS

Oil Sands Refining and Marketing

Brand Customer
Total
($ millions)
Goodwill
Goodwill name lists

(restated – (restated –
note 6)
note 6)

3 114
2 752
149 166 47
At January 1, 2012
.......................................................................................................................................................................................................................................................
Derecognition of goodwill — (1) — — (1)
.......................................................................................................................................................................................................................................................
Additions — — — 5 5
.......................................................................................................................................................................................................................................................
Amortization — — — (14) (14)

At December 31, 2012 2 752 148 166 38 3 104
.......................................................................................................................................................................................................................................................

Amortization — — — (12) (12)

At December 31, 2013 2 752 148 166 26 3 092

The company performed its most recent goodwill impairment test at October 31, 2013. Recoverable amounts for the Oil

Sands CGUs were based on fair value less costs of disposal calculated using the present value of the CGUs’ expected
future cash flows. The primary sources of cash flow information are derived from business plans approved by executives

of the company, which were developed based on macroeconomic factors such as forward price curves for benchmark
commodities, inflation rates and industry supply-demand fundamentals. When required, the projected cash flows in the
business plan have been updated to reflect current market assessments of key assumptions, including long-term forecasts

of commodity prices, inflation rates, foreign exchange rates and discount rates specific to the asset (Level 3 fair
value inputs).

Cash flow forecasts are also based on past experience, historical trends and third-party evaluations of the company’s

reserves and resources to determine production profiles and volumes, operating costs, maintenance and capital
expenditures. Production profiles, reserves volumes, operating costs, maintenance and capital expenditures are consistent

with the estimates approved through the company’s annual reserves evaluation process and determine the duration of the
underlying cash flows used in the discounted cash flow test.

Future cash flow estimates are discounted using after-tax risk-adjusted discount rates. The discount rates are calculated

based on the weighted average cost of capital that is implicit in current market transactions for similar assets. The
after-tax discount rate applied to cash flow projections was 10% at October 31, 2013 (July 31, 2012 – 10%). The

company based its cash flow projections on an average West Texas Intermediate (WTI) price of US$ 97.50 per barrel
through 2014-2019 escalated at an average of 2% per year thereafter, adjusted for applicable quality and location

differentials depending on the underlying CGU. The forecasted cash flow period ranged from 20 years to 55 years based
on the reserve life of the respective CGU. As a result of this analysis, management did not identify impairment within the

Oil Sands operating segment and the associated allocated goodwill.

The company also performed a goodwill impairment test at October 31, 2013 of its Refining and Marketing operating
segment, and no impairment was identified within the operating segment or the associated allocated goodwill.

SUNCOR ENERGY INC. ANNUAL REPORT 2013 113