Sunoco 2009 Annual Report Download - page 101

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Sunoco has agreements with the Partnership which establish fees for administrative services provided by
Sunoco and provide indemnifications by Sunoco for certain environmental, toxic tort and other liabilities related
to operation of the Partnership’s assets prior to its initial public offering in February 2002.
The following table sets forth the noncontrolling interest balances and the changes to these balances (in
millions of dollars):
Cokemaking
Operations
Logistics
Operations
Other
Operations Total
At December 31, 2006 ................... $102 $ 503 $ 13 $ 618
Noncontrolling interests share of income
(loss) ................................ 20 56 (6) 70
Cash distributions ........................ (36) (55) — (91)
Gain recognized in income related to prior
issuance of limited partnership units ....... — (151) — (151)
Acquisition of third-party investor’s interest . . . — — (7) (7)
Other .................................. (3) 3 — —
At December 31, 2007 ................... $ 83 $356 $— $439
Noncontrolling interests share of income ..... 19 94 — 113
Cash distributions ........................ (31) (61) — (92)
Gain recognized in income related to prior
issuance of limited partnership units ....... — (23) — (23)
Other .................................. — 1 — 1
At December 31, 2008 ................... $ 71 $367 $— $438
Noncontrolling interests share of income ..... 22 107 — 129
Cash distributions ........................ (19) (75) — (94)
Net proceeds from public equity offering ..... — 88 — 88
Other .................................. — 1 — 1
At December 31, 2009 ................... $ 74 $488 $— $562
16. Shareholders’ Equity
Each share of Company common stock is entitled to one full vote. The $7 million of outstanding 6
3
⁄
4
percent subordinated debentures are convertible into shares of Sunoco common stock at any time prior to
maturity at a conversion price of $20.41 per share and are redeemable at the option of the Company. At
December 31, 2009, there were 353,602 shares of common stock reserved for this potential conversion (Note 12).
The Company reduced the quarterly cash dividend on its common stock from $.30 per share ($1.20 per year)
to $.15 per share ($.60 per year) beginning with the first quarter of 2010. The Company had previously increased
the quarterly cash dividend from $.25 per share to $.275 per share beginning with the second quarter of 2007 and
then to $.30 per share beginning with the second quarter of 2008.
The Company did not repurchase any of its common stock in 2009. In 2008 and 2007, the Company
repurchased 0.8 and 4.0 million shares, respectively, of its common stock for $49 and $300 million, respectively.
At December 31, 2009, the Company had a remaining authorization from its Board to repurchase up to $600
million of Company common stock.
The Company’s Articles of Incorporation authorize the issuance of up to 15 million shares of preference
stock without par value, subject to approval by the Board. The Board also has authority to fix the number,
designation, rights, preferences and limitations of these shares, subject to applicable laws and the provisions of
the Articles of Incorporation. At December 31, 2009, no such shares had been issued.
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