Sunoco 2003 Annual Report Download - page 28

chased at estimated prices to be paid based on current market conditions. Accordingly, the
actual amounts may vary significantly from the estimates included in the table.
Sunoco also has obligations with respect to its defined benefit pension plans and postretire-
ment health care plans (see “Pension Plan Funded Status” belowand Note 9 to the con-
solidated financial statements).
Off-Balance Sheet Arrangements—Sunoco is contingently liable under an arrangement that
guarantees a $120 million term loan due in 2006 of the Epsilon Products Company, LLC
polypropylene joint venture in which the Company is a partner. Under this arrangement,
Sunoco also guarantees borrowings under the joint venture’s $40 million revolving credit
facility maturing in September 2006, which amounted to $28 million at December 31,
2003 (see Note 1 to the consolidated financial statements). Sunoco is also contingently
liable under various arrangements, which guarantee debt of third parties aggregating to
approximately $12 million at December 31, 2003. At this time, management does not be-
lieve that it is likely that the Company will have to perform under any of these guarantees.
In December 2003, a wholly owned subsidiary of the Company, Sunoco Receivables Corpo-
ration, Inc., entered into a three-year accounts receivable securitization facility under
which the subsidiary may sell on a revolving basis up to a $200 million undivided interest
in a designated pool of certain accounts receivable. This facility replaces a $200 million
facility that was scheduled to terminate in 2004. No receivables have been sold to third
parties under either of these facilities.
Capital Expenditures and Acquisitions
The following table sets forth Sunoco’s planned and actual capital expenditures for additions
to properties, plants and equipment. Actual capital expenditures are consistent with the pre-
sentation of the 2004 plan amounts in the table as well as with amounts presented in Suno-
co’s consolidated financial statements. The Company’s significant acquisitions are included as
footnotes to the table so that total capital outlays for each business unit can be determined.
(Millions of Dollars) 2004 Plan 2003 2002 2001
Refining and Supply $425* $245 $179 $122
Retail Marketing** 130 107 124 114
Chemicals*** 50* 29 36 30
Logistics 27* 39 41†61
Coke 118 5 54
Consolidated capital expenditures $750 $425 $385 $331
* Excludes $235 million acquisition from El Paso Corporation of the Eagle Point refinery and related pipeline and logistics assets, which
includes an estimated $124 million for inventory.
** Excludes in 2004, $187 million associated with an agreement, subject to regulatory approval and the completion of due diligence, to
purchase from ConocoPhillips 385 retail outlets located primarily in Delaware, Maryland, Virginia and Washington, D.C., plus related
inventory. Excludes in 2003, the $162 million purchase from a subsidiary of Marathon Ashland Petroleum LLC of 193 retail gasoline
sites located primarily in Florida and South Carolina, which includes $21 million for inventory. Excludes in 2001, the $59 million
purchase from The Coastal Corporation of 473 retail gasoline outlets located in the eastern United States, which includes $8 million for
inventory.
*** Excludes in 2003, $198 million associated with the formation of a propylene partnership with Equistar Chemicals, L.P. and a related
supply contract and the acquisition of Equistar’s Bayport polypropylene facility, which includes $11 million for inventory. Excludes in
2001, the $649 million acquisition of Aristech Chemical Corporation and related working capital.
†Excludes $54 million purchase from an affiliate of Union Oil Company of California (“Unocal”) of interests in three Midwestern and
Western U.S. products pipeline companies and a $6 million purchase that increased the Partnership’s ownership interest in the West
Texas Gulf pipeline from 17.3 percent to 43.8 percent.
In addition to the purchase of the Eagle Point refinery and related pipeline assets in January
2004 and the agreement, subject to regulatory approval and the completion of due dili-
gence, to purchase 385 retail outlets in Delaware, Maryland, Virginia and Washington,
D.C., the 2004 planned capital outlays include $297 million for base spending, $103 million
for turnarounds at the Company’s refineries, $175 million for spending associated with
meeting clean fuels gasoline specifications (see “Environmental Matters” below), $112 mil-
lion towards construction of a $140 million 550,000 tons-per-year cokemaking facility in
Haverhill, OH and $63 million for various other income improvement projects. These
amounts include spending related to the recently acquired Eagle Point refinery subsequent
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