Sunoco 2011 Annual Report Download - page 106

Download and view the complete annual report

Please find page 106 of the 2011 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 136

  • 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
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136

Treasury yield curve at the date of grant for a term that approximates the award’s term. Correlations of stock
returns among the Company and its peers are calculated using historical daily stock-return data for a period
equivalent to the award’s term.
The following tables set forth separately information with respect to Sunoco common stock unit awards to
be settled in stock and awards to be settled in cash under Sunoco’s stock-based incentive plans (dollars in
millions, except per-unit amounts):
Stock Settled Awards Awards
Weighted-
Average
Fair Value
Per Unit*
Fair/
Intrinsic
Value
Nonvested, December 31, 2008 ........................... 528,104 $47.91
Granted ............................................... 264,024 $26.99
Performance factor adjustment** ........................... (23,736)
Vested ................................................ (34,329) $69.95 $1
Canceled .............................................. (39,323) $44.65
Nonvested, December 31, 2009 ........................... 694,740 $38.34
Granted ............................................... 448,540 $28.41
Performance factor adjustment** ........................... (12,011)
Vested ................................................ (84,994) $64.88 $3
Canceled .............................................. (50,745) $34.19
Nonvested, December 31, 2010 ........................... 995,530 $31.50
Granted ............................................... 408,327 $41.68
Performance factor adjustment** ........................... (198,942)
Vested ................................................ (50,050) $43.06 $2
Canceled .............................................. (79,828) $34.68
Nonvested, December 31, 2011 ........................... 1,075,037 $34.24
*Represents the weighted-average fair value per unit as of the date of grant.
**Consists of adjustments to vested performance-based awards to reflect actual performance. The adjustments are required since the original
grants of these awards were at 100 percent of the targeted amounts.
Cash Settled Awards Awards
Weighted-
Average
Fair Value
Per Unit*
Fair/
Intrinsic
Value
Nonvested, December 31, 2008 ............................ 272,150 $66.09
Performance factor adjustment** ........................... (55,832)
Vested*** .............................................. (68,238) $68.43 $2
Canceled ............................................... (10,580) $66.05
Nonvested, December 31, 2009 ............................ 137,500 $63.98
Performance factor adjustment** ........................... (18,941)
Vested*** .............................................. (110,789) $63.98 $5
Canceled ............................................... (7,770) $63.98
Nonvested, December 31, 2010 ............................ —
*Represents the weighted-average fair value per unit as of the date of grant.
**Consists of adjustments to vested performance-based awards to reflect actual performance. The adjustments were required since the original
grants of these awards were at 100 percent of the targeted amounts.
***Cash payments for vested awards were made in the first quarter of the following year.
For the years 2011, 2010 and 2009, the Company recognized stock-based compensation expense of $15, $15
and $5 million, respectively, and related tax benefits of $5, $6 and $2 million, respectively. As of December 31,
98