Sunoco 2003 Annual Report Download - page 68

Segment Information
(Millions of Dollars)
Refining
and
Supply*
Retail
Marketing Chemicals Logistics Coke
Corporate
and Other Consolidated
2001
Sales and other operating revenue
(including consumer excise taxes):
Unaffiliated customers $5,999 $6,019 $1,264 $ 545 $236 $ — $14,063
Intersegment $3,711 $ — $ — $1,068 $ — $ — $ —
Pretax segment income (loss) $ 459 $ 137 $ 9 $ 61 $ 91 $(170) $ 587
Income tax (expense) benefit (171) (50) (3) (19) (30) 84 (189)
After-tax segment income (loss) $ 288 $ 87 $ 6 $ 42 $ 61 $ (86)** $ 398
Equity income (loss) $3 $ — $ (6) $ 11 $ — $ — $ 8
Depreciation, depletion and amortization $ 150 $ 100 $ 41 $ 18 $ 12 $ — $ 321
Capital expenditures $ 122 $ 114*** $ 30†$ 61 $ 4 $ — $ 331
Investments in and advances to affiliated
companies $12 $ — $ 106 $ 21 $ — $ — $ 139
Identifiable assets $ 2,346 $1,131 $1,325 $ 699 $293 $ 241†† $ 6,019†††
* Includes Value Added and Eastern Lubricants operations (Note 3).
** Consists of $24 million of after-tax corporate expenses, $82 million of after-tax net financing expenses and other, a $21 million after-tax gain on income tax settlement and a $1
million after-tax provision for asset write-downs and other matters (Note 3).
*** Excludes the $59 million purchase from The Coastal Corporation of 473 retail gasoline outlets located in the eastern United States and related working capital.
†Excludes the $649 million acquisition of Aristech Chemical Corporation and related working capital (Note 3).
†† Consists of Sunoco’s $116 million consolidated deferred income tax asset, $87 million of prepaid retirement costs and $38 million attributable to corporate activities.
††† After elimination of intersegment receivables.
The following table sets forth Sunoco’s sales to unaffiliated
customers and other operating revenue by product or
service:
(Millions of Dollars) 2003 2002 2001
Gasoline:
Wholesale $ 2,167 $ 1,787 $ 1,690
Retail 4,529 3,545 3,542
Middle distillates 3,518 2,736 2,861
Residual fuel 797 549 525
Petrochemicals 1,884 1,599 1,508
Lubricants 295 263 476
Other refined products 505 510 450
Other products and services 703 596 543
Resales of purchased crude oil 1,218 632 491
Coke and coal 251 248 236
Consumer excise taxes 1,999 1,834 1,741
$17,866 $14,299 $14,063
18. Subsequent Events
In January 2004, Sunoco completed the purchase of the
150 thousand barrels-per-day Eagle Point refinery and
related assets from El Paso Corporation for $235 million,
including an estimated $124 million for crude oil and re-
fined product inventory. In connection with this trans-
action, Sunoco assumed certain environmental and other
liabilities. The Eagle Point refinery is located in West-
ville, NJ near the Company’s existing Northeast refining
operations. Management believes the acquisition of the
Eagle Point refinery complements and enhances the
Company’s refining operations in the Northeast and en-
ables the capture of significant synergies in the larger
Northeast Refining Complex. The related assets acquired
include certain pipeline and other logistics assets asso-
ciated with the refinery which Sunoco intends to sell to
Sunoco Logistics Partners L.P.
In January 2004, Sunoco agreed to purchase 385 retail
outlets currently operated under the Mobil®brand from
ConocoPhillips for $187 million, plus inventory. The
acquisition consists of 114 Company-owned or leased
outlets, 36 dealer-owned locations and 235 distributor-
supplied outlets. These outlets, which include 31 sites
that are Company-operated and have convenience stores,
are located primarily in Delaware, Maryland, Virginia and
Washington, D.C. The transaction, which is subject to
certain conditions including regulatory approval and the
completion of due diligence, is expected to be completed
in the second quarter of 2004.
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