Sunoco 2011 Annual Report Download - page 59

A purchase obligation is an enforceable and legally binding agreement to purchase goods or services that
specifies significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum or variable
price provisions; and the approximate timing of the transaction. Sunoco’s principal purchase obligations in the
ordinary course of business consist of: crude oil, other feedstocks and refined products and transportation and
distribution services, including pipeline and terminal throughput and railroad services. Approximately one half of
the contractual obligations to purchase crude oil, other feedstocks and refined products reflected in the above
table for 2012 relates to spot-market purchases to be satisfied within the first 90 days of the year. Sunoco also has
contracts to acquire or construct properties, plants and equipment, and other contractual obligations, primarily
related to services and materials, including commitments to purchase supplies and various other maintenance,
systems and communications services. Most of Sunoco’s purchase obligations are based on market prices or
formulas based on market prices. These purchase obligations generally include fixed or minimum volume
requirements. The purchase obligation amounts in the table above are based on the minimum quantities to be
purchased at estimated prices to be paid based on current market conditions. Accordingly, the actual amounts
may vary significantly from the estimates included in the table.
Sunoco also has obligations pertaining to unrecognized tax benefits and related interest and penalties
amounting to $28 million, which have been excluded from the table above as the Company does not believe it is
practicable to make reliable estimates of the periods in which payments for these obligations will be made (see
Note 4 to the Consolidated Financial Statements under Item 8). In addition, Sunoco has obligations with respect
to its defined benefit pension plans and postretirement health care plans, which have also been excluded from the
table above (see “Retirement Benefit Plans” below and Note 9 to the Consolidated Financial Statements under
Item 8).
Off-Balance Sheet Arrangements—The Company has not entered into any transactions, agreements or other
contractual arrangements that would result in significant off-balance sheet liabilities.
Capital Program
The following table sets forth Sunoco’s planned and actual capital expenditures for additions to properties,
plants and equipment as well as the Company’s acquisitions and other capital outlays (in millions of dollars):
2012 Plan 2011 2010 2009
Logistics* ..................................................... $350 $ 592 $ 426 $225
Retail Marketing** .............................................. 150 129 124 80
Refining and Supply:
Continuing operations .......................................... 30 120 247 377
Discontinued Tulsa operations ................................... — — — 3
Discontinued chemicals operations ................................. — 17 20 35
Coke*** ...................................................... † 284 223 229
Consolidated capital program .................................... $530 $1,142 $1,040 $949
*Includes acquisitions totaling $381, $243 and $50 million during 2011, 2010 and 2009, respectively.
**Includes acquisition totaling $25 million in 2010.
***Includes acquisition totaling $38 million in 2011.
†Excludes planned capital spending for SunCoke Energy which was separated from Sunoco by means of a spin-off on January 17, 2012.
The Company’s 2012 planned capital expenditures consist of $370 million for income improvement
projects, $95 million for infrastructure spending and $65 million for environmental projects. The $370 million of
outlays for income improvement projects consist of $300 million related to growth opportunities in the Logistics
business and $70 million for various other income improvement projects in Retail Marketing.
51