Sunoco 2011 Annual Report Download - page 96

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The expected benefit payments through 2021 (excluding approximately $65 million attributable to SunCoke
Energy) for the defined benefit and postretirement benefit plans are as follows (in millions of dollars):
Defined Benefit Plans
Postretirement
Benefit Plans*
Funded
Plans
Unfunded
Plans
Year ending December 31:
2012** ....................................................... $300 $11 $ 32
2013 ......................................................... $100 $11 $ 31
2014 ......................................................... $ 96 $11 $ 30
2015 ......................................................... $ 90 $10 $ 29
2016 ......................................................... $ 80 $ 9 $ 27
2017 through 2021.............................................. $296 $31 $104
*Net of premiums paid by participants.
**Includes expected defined benefit payments in connection with the Company’s exit from refining.
The measurement date for the Company’s defined benefit and postretirement benefit plans is December 31.
The following weighted-average assumptions were used at December 31, 2011 and 2010 to determine benefit
obligations for the plans:
Defined
Benefit Plans
Postretirement
Benefit Plans
2011 2010 2011 2010
Discount rate ...................................................... 4.15% 4.95% 3.70% 4.40%
Rate of compensation increase ........................................ 3.00% 3.00%
The health care cost trend assumption used at December 31, 2011 to compute the APBO for the
postretirement benefit plans was an increase of 8.0 percent (8.5 percent at December 31, 2010), which is assumed
to decline gradually to 5.5 percent in 2017 and to remain at that level thereafter. Changes in the health care cost
trend assumption are not expected to have a significant impact on Sunoco’s postretirement benefits expense or
the related APBO due to the per retiree dollar cap on Sunoco’s annual contributions and the plan structure
changes announced in February 2012.
Defined Contribution Pension Plans
Sunoco has defined contribution pension plans which provide retirement benefits for most of its employees.
Sunoco’s contributions are principally based on a percentage of employees’ annual base compensation and,
effective July 1, 2010, a discretionary profit sharing contribution. These contributions are charged against income
as incurred and amounted to $33, $27 and $28 million in 2011, 2010 and 2009, respectively. Contributions for
2011 and 2010 include $12 and $7 million, respectively, attributable to the discretionary profit sharing
contributions.
Sunoco’s principal defined contribution plan is SunCAP. SunCAP is a combined profit sharing and
employee stock ownership plan which contains a provision designed to permit SunCAP, only upon approval by
the Company’s Board of Directors (“Board”), to borrow in order to purchase shares of Company common stock.
As of December 31, 2011, no such borrowings had been approved.
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