Sunoco 2009 Annual Report Download - page 106

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the Company has no significant derivative counterparty credit exposure at December 31, 2009. Market and credit
risks associated with all of Sunoco’s derivative contracts are reviewed regularly by management.
The Company had open derivative contracts pertaining to 472 thousand barrels of refined products at
December 31, 2009. These open derivative positions vary in duration but generally do not extend beyond
December 31, 2010. In addition, the Partnership was a party to a $50 million floating to fixed interest rate swap
agreement that matured in January 2010.
The following table sets forth fair value amounts of the Company’s derivatives included in the consolidated
balance sheet at December 31, 2009 (in millions of dollars):
Assets * Liabilities **
Derivatives designated as cash flow hedging instruments:
Commodity contracts ........................................ $ 3 $ 3
Interest rate contracts ....................................... — —
33
Derivatives not designated as hedging instruments:
Commodity contracts ........................................ 1 1
Transportation contracts ..................................... — —
11
$4 $4
*Included in accounts and notes receivable, net, in the consolidated balance sheet.
**Included in accrued liabilities in the consolidated balance sheet.
The following table sets forth the impact of derivatives on the Company’s financial performance for the year
ended December 31, 2009 (in millions of dollars):
Pretax Gains (Losses)
Recognized in Other
Comprehensive
Income
Pretax Gains
(Losses)
Recognized in
Earnings
Derivatives designated as cash flow hedging instruments:
Commodity contracts ............................ $(16) $ 13*
Commodity contracts ............................ (36)**
Interest rate contracts ............................ — —***
$(16) $(23)
Derivatives not designated as hedging instruments:
Commodity contracts ............................ $ —*
Commodity contracts ............................ (25)**
Transportation contracts .......................... (1)**
$(26)
*Included in sales and other operating revenue in the consolidated statement of operations.
**Included in cost of products sold and operating expenses in the consolidated statement of operations.
***Included in interest cost and debt expense in the consolidated statement of operations.
19. Business Segment Information
Sunoco is a petroleum refiner and marketer, and chemicals manufacturer with interests in logistics and
cokemaking. Sunoco’s operations are organized into five business segments.
98