Sunoco 2009 Annual Report Download - page 85
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The tax effects of temporary differences which comprise the net deferred income tax liability are as follows
(in millions of dollars):
December 31
2009 2008
Deferred tax assets:
Retirement benefit liabilities ................................... $ 250 $ 288
Environmental remediation liabilities ............................ 41 41
Other liabilities not yet deductible .............................. 212 186
Inventories ................................................ 66 104
State net operating loss carryforward, net of federal
income tax effects* ........................................ 69 —
Other ..................................................... 13 22
651 641
Deferred tax liabilities:
Properties, plants and equipment .............................. (1,521) (1,329)
Other ..................................................... (32) (33)
(1,553) (1,362)
Net deferred income tax liability ............................. $ (902) $ (721)
*The state net operating loss carryforward of $107 million expires in 2022 through 2029.
The net deferred income tax liability is classified in the consolidated balance sheets as follows (in millions
of dollars):
December 31
2009 2008
Current asset ................................................... $ 96 $138
Noncurrent liability ............................................... (998) (859)
$(902) $(721)
Net cash payments for income taxes were $141, $234 and $397 million in 2009, 2008 and 2007,
respectively. The Company expects to receive a federal income tax refund of approximately $400 million during
2010 for the carryback of its 2009 net operating loss.
During 2008, Sunoco recorded a $16 million after-tax gain related primarily to tax credits claimed on
amended federal income tax returns filed for certain prior years and a $10 million after-tax gain due to the
settlement of economic nexus issues pertaining to certain state corporate income tax returns.
The following table sets forth the changes in unrecognized tax benefits (in millions of dollars):
2009 2008 2007
Balance at beginning of year .................................. $45 $69 $38
Additions (reductions) attributable to tax positions taken in
the current year ........................................... — (17) 9
Additions attributable to tax positions taken in prior years ........... — 7 28
Reductions attributable to tax positions taken in prior years ......... (3) (10) (5)
Settlements ................................................ (22) (4) (1)
Balance at end of year ....................................... $20* $45 $69
*Includes $13 million ($8 million after federal income tax benefits) related to tax positions which, if recognized, would impact the
Company’s effective tax rate.
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