Sunoco 2006 Annual Report Download - page 25

Sunoco has a shelf registration statement that provides the Company with financing flexi-
bility to offer senior and subordinated debt, common and preferred stock, warrants and
trust preferred securities. At December 31, 2006, $650 million remains available under this
shelf registration statement. Sunoco Logistics Partners L.P. also has a shelf registration
statement, under which the Partnership may sell debt or common units in primary
offerings to the public, and Sunoco may sell common units, which represent a portion of
its limited partnership interests in the Partnership, in secondary offerings to the public. At
December 31, 2006, $210 million remains available to the Partnership under this registra-
tion statement for primary offerings and up to five million common units remain available
to Sunoco for secondary offerings. The amount, type and timing of any future financings
under these registration statements will depend upon, among other things, the Company’s
and Partnership’s funding requirements, market conditions and compliance with covenants
contained in the Company’s and Partnership’s respective debt obligations and revolving
credit facilities.
Contractual Obligations—The following table summarizes the Company’s significant contractual
obligations:
Payment Due Dates
(Millions of Dollars) Total 2007 2008-2009 2010-2011 Thereafter
Total debt:
Principal $ 1,987 $ 282 $ 153 $ 357 $1,195
Interest 789 96 210 174 309
Operating leases* 1,067 175 268 179 445
Purchase obligations:
Crude oil, other feedstocks and
refined products** 11,930 7,489 1,610 947 1,884
Convenience store items*** 621 269 352 — —
Transportation and distribution 1,697 278 440 412 567
Fuel and utilities 412 115 199 98 —
Obligations supporting financing
arrangements†71 9 16 16 30
Properties, plants and equipment 84 84 — — —
Other 173 44 58 27 44
$18,831 $8,841 $3,306 $2,210 $4,474
* Includes $235 million pertaining to lease extension options which are assumed to be exercised.
** Includes feedstocks for chemical manufacturing and coal purchases for cokemaking operations.
*** Actual amounts will vary based upon the number of Company-operated convenience stores and the level of purchases.
†Represents fixed and determinable obligations to secure wastewater treatment services at the Toledo refinery and coal handling
services at the Indiana Harbor cokemaking facility.
Sunoco’s operating leases include leases for marine transportation vessels, service stations,
office space and other property and equipment. Operating leases include all operating
leases that have initial noncancelable terms in excess of one year. Approximately 36 per-
cent of the $1,067 million of future minimum annual rentals relates to time charters for
marine transportation vessels. Most of these time charters contain terms of between three
to seven years with renewal and sublease options. The time charter leases typically require
a fixed-price payment or a fixed-price minimum and a variable component based on spot-
market rates. In the table above, the variable component of the lease payments has been
estimated utilizing the average spot-market prices for the year 2006. The actual variable
component of the lease payments attributable to these time charters could vary sig-
nificantly from the estimates included in the table.
A purchase obligation is an enforceable and legally binding agreement to purchase goods
or services that specifies significant terms, including: fixed or minimum quantities to be
purchased; fixed, minimum or variable price provisions; and the approximate timing of the
transaction. Sunoco has various obligations to purchase in the ordinary course of business:
crude oil, other feedstocks and refined products; convenience store items; transportation
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