Sunoco 2011 Annual Report Download - page 110

The following table sets forth the noncontrolling interest balances and the changes to these balances (in
millions of dollars):
Logistics
Operations
Cokemaking
Operations Total
Balance at December 31, 2008 ............................ $367 $ 71 $438
Noncontrolling interests share of income ..................... 107 22 129
Cash distributions ....................................... (75) (19) (94)
Sale of limited partner units to the public ..................... 88 — 88
Other ................................................. 1 — 1
Balance at December 31, 2009 ............................ 488 74 562
Noncontrolling interests share of income ..................... 186* 8 194
Cash distributions ....................................... (102) (21) (123)
Sale of limited partner units to the public ..................... 162 — 162
Distribution in connection with modification of incentive
distribution rights ..................................... (121) — (121)
Consolidation of pipeline acquisitions ....................... 80 — 80
Other ................................................. (1) — (1)
Balance at December 31, 2010 ............................ 692 61 753
Noncontrolling interests share of income ..................... 175 — 175
Cash distributions ....................................... (121) (1) (122)
SunCoke Energy IPO .................................... — 112 112
Issuance of deferred distribution units ....................... (12) — (12)
Purchase of Indiana Harbor noncontrolling interest ............. — (24) (24)
Consolidation of pipeline acquisition ........................ 20 — 20
Other ................................................. 3 2 5
Balance at December 31, 2011 ............................ $757 $150 $ 907
*Includes $69 million attributable to the noncontrolling interests’ share of the $128 million pretax gain from the remeasurement of
pre-acquisition equity interests in Mid-Valley and WTG.
17. Fair Value Measurements
The Company’s cash equivalents, which amounted to $1,805 and $1,469 million at December 31, 2011 and
2010, respectively, were measured at fair value based on quoted prices in active markets for identical assets. The
additional assets and liabilities that were measured at fair value on a recurring basis were not material to the
Company’s consolidated balance sheets.
Sunoco’s other current assets (other than inventories, deferred income taxes and assets held for sale) and
current liabilities (other than the current portion of retirement benefit liabilities) are financial instruments and
most of these items are recorded at cost in the consolidated balance sheets. The estimated fair values of these
financial instruments approximate their carrying amounts. At December 31, 2011 and 2010, the estimated fair
value of Sunoco’s long term debt was $3,440 and $2,379 million, respectively, compared to carrying amounts of
$3,159 and $2,136 million, respectively. Long-term debt that is publicly traded was valued based on quoted
market prices while the fair value of other debt issues was estimated by management based upon current interest
rates available at the respective balance sheet dates for similar issues. Sunoco also had a long-term note
receivable from the sale of the Toledo refinery with an interest rate of LIBOR plus eight percent with a
maximum interest rate of 10 percent (Note 2). The estimated fair value of this financial instrument approximates
its carrying value of $182 million at December 31, 2011. The note was repaid in February 2012.
Sunoco is exposed to credit risk in the event of nonperformance by counterparties on its derivative
instruments. Management believes this risk is not significant as the Company has established credit limits with
such counterparties which require the settlement of net positions when these credit limits are reached.
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