Sunoco 2009 Annual Report Download - page 55

The following table sets forth Sunoco’s outstanding debt (in millions of dollars):
December 31
2009 2008
Short-term borrowings .......................................... $ 397 $ 310
Current portion of long-term debt ................................. 6 148
Long-term debt ................................................ 2,061 1,705
Total debt* ................................................ $2,464 $2,163
*Includes $868 and $748 million at December 31, 2009 and 2008, respectively, attributable to Sunoco Logistics Partners L.P.
In March 2009, Sunoco issued $250 million of 9
5
⁄ 8 percent notes due in 2015. In February 2009, Sunoco
Logistics Partners L.P. issued $175 million of 8
3
⁄ 4 percent notes due in 2014.
Management believes the Company can access the capital markets to pursue strategic opportunities as they
arise. In addition, the Company has the option of selling an additional portion of its Sunoco Logistics Partners
L.P. interests, and Sunoco Logistics Partners L.P. has the option of issuing additional common units.
Contractual Obligations—The following table summarizes the Company’s significant contractual
obligations (in millions of dollars):
Total
Payment Due Dates
2010 2011-2012 2013-2014 Thereafter
Total debt:
Principal ...................................... $ 2,464 $ 403 $ 734 $ 427 $ 900
Interest ....................................... 645 128 217 168 132
Operating leases* ................................ 731 123 154 103 351
Purchase obligations:
Crude oil, other feedstocks and refined products** . . . 8,049 6,250 516 425 858
Transportation and distribution .................... 1,610 321 348 264 677
Obligations supporting financing arrangements*** .... 51 9 18 10 14
Properties, plants and equipment ................. 53 50 3 — —
Other ........................................ 243 73 71 45 54
$13,846 $7,357 $2,061 $1,442 $2,986
*Includes $172 million pertaining to lease extension options which are assumed to be exercised.
**Includes feedstocks for chemical manufacturing and coal purchases for cokemaking operations.
***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 24 percent of the $731 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 2009.
The actual variable component of the lease payments attributable to these time charters could vary significantly
from the estimates included in the table.
47