Sunoco 2011 Annual Report Download - page 9

Download and view the complete annual report

Please find page 9 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

PART I
ITEMS 1 AND 2. BUSINESS AND PROPERTIES
Those statements in the Business and Properties discussion that are not historical in nature should be
deemed forward-looking statements that are inherently uncertain. See “Forward-Looking Statements” in
Management’s Discussion and Analysis of Financial Condition and Results of Operations (Item 7) for a
discussion of the factors that could cause actual results to differ materially from those projected.
General
Sunoco, Inc.*was incorporated in Pennsylvania in 1971. It or its predecessors have been active in the
petroleum industry since 1886. Its principal executive offices are located at 1818 Market Street, Suite 1500,
Philadelphia, PA 19103. Its telephone number is (215) 977-3000 and its internet website is www.SunocoInc.com.
The Company makes available free of charge on its website all materials that it files electronically with the
Securities and Exchange Commission (the “SEC”), including its Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q, Current Reports on Form 8-K, interactive data files and amendments to these reports as
soon as reasonably practicable after such materials are electronically filed with, or furnished to, the SEC.
The Company, through its subsidiaries, conducted its operations as a petroleum refiner and marketer and
chemicals manufacturer with interests in logistics and cokemaking during most of 2011. The refining, marketing,
logistics and chemicals operations were conducted principally in the eastern half of the United States and the
cokemaking operations were conducted in Virginia, Indiana, Ohio, Illinois, and Vitória, Brazil. During 2011 and
the early part of 2012, the Company carried out several strategic actions in executing its fundamental shift away
from manufacturing. In addition to its decision to exit the refining business by mid-2012, the exit from the
chemicals business during 2011 and the spin-off of SunCoke Energy, Inc. in January 2012, Sunoco also
conducted a comprehensive strategic review to determine the best way to deliver value to shareholders, including
how best to utilize its strong cash position and maximize the potential for Sunoco’s logistics and retail
businesses. Sunoco retained a third party advisor to assist in this strategic review which was completed in
February 2012. See Management’s Discussion and Analysis of Financial Condition and Results of Operations
(Item 7) for a description of the initiatives announced in connection with this review.
At December 31, 2011, the Company’s operations were organized into four business segments (Logistics,
Retail Marketing, Refining and Supply and Coke) in addition to a holding company and a professional services
group. Sunoco, Inc., the holding company, is a non-operating parent company which includes certain corporate
officers. For additional information regarding the Company’s current and former business units, see
Management’s Discussion and Analysis of Financial Condition and Results of Operations (Item 7) and the
business segment information presented in Note 18 to the Consolidated Financial Statements (Item 8).
Sunoco owns, principally through Sunoco Logistics Partners L.P. (a master limited partnership) (the
“Partnership”), a geographically diverse and complementary group of pipelines, terminal facilities which
transport, terminal and store refined products and crude oil, and crude oil and refined products acquisition and
marketing assets. Sunoco is the general partner of the Partnership, which consists of a 2-percent ownership
interest and incentive distribution rights, and owns a 32-percent interest in the Partnership’s limited partner units
(see “Logistics” below).
Sunoco markets gasoline and middle distillates, and offers a broad range of convenience store merchandise,
through a network of 4,933 retail outlets in 23 states primarily on the east coast and in the midwest United States
(see “Retail Marketing” below).
*In this report, the terms “Company” and “Sunoco” are used interchangeably to mean Sunoco, Inc. or collectively, Sunoco, Inc. and its subsidiaries.
The use of these terms is for convenience of discussion and is not intended to be a precise description of corporate relationships.
1