Sunoco 2006 Annual Report Download - page 57

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8. Properties, Plants and Equipment
(Millions of Dollars)
December 31
Gross
Investments,
at Cost
Accumulated
Depreciation,
Depletion
and
Amortization
Net
Investment
2006
Refining and supply $ 5,491 $2,417 $3,074
Retail marketing* 1,519 659 860
Chemicals 1,373 352 1,021
Logistics 1,541 522 1,019
Coke 616 225 391
$10,540 $4,175 $6,365
2005
Refining and supply $ 4,872 $ 2,289 $ 2,583
Retail marketing* 1,504 624 880
Chemicals 1,317 301 1,016
Logistics 1,327 495 832
Coke 556 209 347
$ 9,576 $ 3,918 $ 5,658
*Includes retail sites leased to third parties with a gross investment totaling $598 and
$593 million at December 31, 2006 and 2005, respectively. Related accumulated
depreciation totaled $300 million at both December 31, 2006 and 2005.
Annual future minimum rentals due Sunoco, as lessor, on
noncancelable operating leases at December 31, 2006 for
retail sites are as follows (in millions of dollars):
Year ending December 31:
2007 $ 39
2008 31
2009 20
2010 8
2011 2
Thereafter —
$100
9. Retirement Benefit Plans
Defined Benefit Pension Plans and Postretirement Health Care Plans
Sunoco has both funded and unfunded 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 contain 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.
Defined benefit plans and postretirement benefit plans expense consisted of the following components:
Defined Benefit Plans Postretirement Benefit Plans
(Millions of Dollars) 2006 2005 2004 2006 2005 2004
Service cost (cost of benefits earned during the year) $53 $49 $46 $9 $9 $8
Interest cost on benefit obligations 85 84 86 22 22 24
Expected return on plan assets (95) (91) (84) ———
Amortization of:
Prior service cost (benefit) 233(3) (5) (7)
Actuarial losses 33 29 33 333
$78 $74 $84 $31 $29 $28
For 2007, amortization of prior service cost (benefit) and actuarial losses is estimated at $2 and $26 million, re-
spectively, for defined benefit plans and $(3) and $3 million, respectively, for postretirement benefit plans.
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