Sunoco 2009 Annual Report Download - page 42

Download and view the complete annual report

Please find page 42 of the 2009 Sunoco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 128

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128

In the Coke business:
• Commenced operations in the fourth quarter of 2009 at a $320 million, 650 thousand
tons-per-year cokemaking facility in Granite City, IL owned by SunCoke Energy;
• Entered into an agreement in 2008 to build, own and operate a 550 thousand tons-per-year
cokemaking facility and associated cogeneration power plant capable of providing 46 megawatts
of power in Middletown, OH. Construction of these facilities is expected to cost approximately
$380 million and be completed in the second half of 2011;
• Commenced operations in 2008 at a $269 million, second 550 thousand tons-per-year cokemaking
facility and associated cogeneration power plant located at the Company’s Haverhill, OH site; and
• Began operations in 2007 at a 1.7 million tons-per-year cokemaking facility in Vitória, Brazil.
SunCoke Energy has a $41 million preferred stock investment in this facility and receives fees for
operating the plant as well as for licensing its proprietary technology to the project company.
Sunoco also:
• Commenced a business improvement initiative in 2009 which is expected to reduce pretax costs
by $300 million on an annualized basis;
• Modified retirement benefit plans effective June 30, 2010 to freeze pension benefits for most
participants and to phase down or eliminate postretirement medical benefits;
• Modified incentive distribution rights in January 2010 that entitle Sunoco to receive cash in excess
of its general partnership interest in Sunoco Logistics Partners L.P. This transaction has provided
Sunoco with $201 million in cash in exchange for a portion of future cash flows from the
incentive distribution rights;
• Sold 2.2 million of its limited partnership units to the public in February 2010. The sale generated
approximately $145 million of net proceeds and reduced the Company’s ownership interest in
Sunoco Logistics Partners L.P. from 40 to 33 percent;
• Enhanced the funded status of its defined benefit plans in February 2010 with a $230 million
contribution consisting of $140 million of cash and 3.59 million shares of Sunoco common stock
valued at $90 million; and
• Reduced the quarterly cash dividend on its common stock, effective beginning in the first quarter
of 2010 from $.30 per share ($1.20 per year) to $.15 per share ($.60 per year), which will reduce
quarterly cash dividend payments by $18 million.
For additional information regarding the above actions, see Notes 2, 9, 15 and 16 to the Consolidated
Financial Statements (Item 8).
34