Sunoco 2011 Annual Report Download - page 85

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2012 based on the Toledo refinery’s 2011 estimated operating results. In connection with this transaction, the
Company recognized a $2 million net pretax gain ($4 million loss after tax) during 2011 which is included in
other income, net, in the consolidated statements of operations. This loss includes a pretax gain of $535 million
attributable to the sale of crude and refined product inventories. The results of operations for the Toledo refinery
have not been classified as discontinued operations due to Sunoco’s expected continuing involvement with the
Toledo refinery through a three-year agreement for the purchase of gasoline and distillate to supply Sunoco retail
sites in this area.
The following table sets forth the components of the Toledo refinery and related assets that were classified
as held for sale at December 31, 2010 (in millions of dollars):
Inventories:
Crude oil ......................................................... $ 92
Petroleum and chemical products ..................................... 14
Materials, supplies and other ......................................... 12
Total inventories ................................................. 118
Properties, plants and equipment, net .................................. 895
Deferred charges and other assets ..................................... 16
$1,029
Retail Portfolio Management Program—During the 2009-2011 period, Sunoco generated $178 million of
divestment proceeds related to the sale of 229 retail sites under a Retail Portfolio Management (“RPM”) program
to selectively reduce the Company’s invested capital in Company-owned or leased retail sites. Most of the sites
were converted to contract dealers or distributors thereby retaining most of the gasoline sales volume attributable
to the divested sites within the Sunoco branded business. During 2011, 2010 and 2009, net gains of $9, $17 and
$24 million, respectively, were recognized as gains on divestments in other income, net, in the consolidated
statements of operations in connection with the RPM program.
Retail Heating Oil and Propane Distribution Business—In 2009, Sunoco sold its retail heating oil and
propane distribution business for $83 million in cash. In connection with this transaction, Sunoco recognized a
$44 million net gain ($26 million after tax), which includes an $8 million accrual for environmental
indemnification and other exit costs. This gain is recognized as a gain on divestment in other income, net, in the
consolidated statements of operations.
Other Matters
Asset Write-Downs and Other Matters—The following table summarizes information regarding the
provision for asset write-downs and other matters recognized during 2011, 2010 and 2009 (in millions of
dollars):
2011 2010 2009
Pretax
After
Tax Pretax
After
Tax Pretax
After
Tax
Philadelphia and Marcus Hook refineries* .................. $2,611 $1,549 $ — $— $ — $ —
Eagle Point refinery .................................... 5 3 57 34 476 284
Business improvement initiatives ......................... 13 8 68 40 169 100
MTBE coverage settlement .............................. — — (16) (9) — —
Other ............................................... — — — — 42 23
$2,629 $1,560 $109 $65 $687 $407
*Includes $22 million pretax attributable to noncontrolling interests.
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