Sunoco 2003 Annual Report Download - page 54

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Dividends received from affiliated companies amounted to $32, $27 and $18 million in 2003, 2002 and 2001,
respectively. Earnings employed in the business at December 31, 2003 include $16 million of undistributed earnings of
affiliated companies.
Summarized financial information for all entities accounted for using the equity method is set forth below. Amounts
attributable to acquired interests (Note 3) have been included in the table since the acquisition dates.
100 Percent Sunoco Proportionate Share
(Millions of Dollars) 2003 2002 2001 2003 2002 2001
Balance Sheet Information, at December 31:
Current assets $281 $297 $203 $86 $94 $67
Other assets $735 $762 $498 $191 $211 $161
Current liabilities $169 $166 $90 $46 $49 $28
Other liabilities $620 $596 $344 $160 $159 $108
Income Statement Information, for the years ended December 31:
Revenues $1,197 $992 $927 $542 $358 $339
Income before income tax expense $101 $166 $104 $15 $31 $15
Net income $36 $115 $65 $3 $23 $8
8. Properties, Plants and Equipment
(Millions of Dollars)
December 31
Gross
Investments,
at Cost
Accumulated
Depreciation,
Depletion
and
Amortization
Net
Investment
2003
Refining and supply $3,891 $2,187 $1,704
Retail marketing* 1,512 650 862
Chemicals 1,131 240 891
Logistics 1,039 447 592
Coke 408 180 228
$7,981 $3,704 $4,277
2002
Refining and supply $3,637 $2,019 $1,618
Retail marketing* 1,400 639 761
Chemicals 1,072 171 901
Logistics 1,012 427 585
Coke 401 167 234
$7,522 $3,423 $4,099
* Includes retail sites leased to third parties with a gross investment totaling $543 and
$563 million at December 31, 2003 and 2002, respectively. Related accumulated
depreciation totaled $303 and $302 million at December 31, 2003 and 2002,
respectively.
Annual future minimum rentals due Sunoco, as lessor, on
noncancelable operating leases at December 31, 2003 for
retail sites are as follows (in millions of dollars):
Year ending December 31:
2004 $ 33
2005 20
2006 9
2007 2
2008 1
Thereafter —
$65
9. Retirement Benefit Plans
Defined Benefit Pension Plans and Postretirement Health
Care Plans
Sunoco has noncontributory defined benefit pension
plans (“defined benefit plans”) which provide retirement
benefits for approximately one-half of its employees.
Sunoco also has plans which provide health care benefits
for substantially all of its retirees (“postretirement benefit
plans”). The postretirement benefit plans are unfunded
and the costs are shared by Sunoco and its retirees. The
levels of required retiree contributions to postretirement
benefit plans are adjusted periodically, and the plans con-
tain other cost-sharing features, such as deductibles and
coinsurance. In addition, in 1993, Sunoco implemented a
dollar cap on its future contributions for its principal
postretirement health care benefits plan. In the fourth
quarter of 2003, Congress passed the Medicare Pre-
scription Drug Act of 2003. As permitted, no accounting
recognition has been given to this new legislation be-
cause authoritative accounting guidance has not yet been
issued and the Company cannot reasonably estimate its
impact at this time.
52