Sunoco 2007 Annual Report Download - page 54

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8. Properties, Plants and Equipment
(Millions of Dollars)
December 31
Gross
Investments
at Cost
Accumulated
Depreciation,
Depletion
and
Amortization
Net
Investment
2007
Refining and supply $ 6,088 $2,554 $3,534
Retail marketing* 1,507 670 837
Chemicals 1,420 405 1,015
Logistics 1,658 557 1,101
Coke 793 241 552
$11,466 $4,427 $7,039
2006
Refining and supply $ 5,491 $ 2,417 $ 3,074
Retail marketing* 1,519 659 860
Chemicals 1,373 352 1,021
Logistics 1,541 522 1,019
Coke 616 225 391
$ 10,540 $ 4,175 $ 6,365
*Includes retail sites leased to third parties with a gross investment totaling $575 and
$598 million at December 31, 2007 and 2006, respectively. Related accumulated
depreciation totaled $284 and $300 million at December 31, 2007 and 2006,
respectively.
Annual future minimum rentals due Sunoco, as lessor, on
noncancelable operating leases at December 31, 2007 for
retail sites are as follows:
(Millions of Dollars)
Year ending December 31:
2008 $40
2009 30
2010 14
2011 5
2012 1
Thereafter —
$90
9. Retirement Benefit Plans
Defined Benefit Pension Plans and Postretirement Health Care Plans
Sunoco has both funded and unfunded noncontributory defined benefit pension plans (“defined benefit plans”) which
provide retirement benefits for approximately one-half of its employees. Sunoco also has plans which provide health
care benefits for substantially all of its retirees (“postretirement benefit plans”). The postretirement benefit plans are
unfunded and the costs are shared by Sunoco and its retirees. The levels of required retiree contributions to
postretirement benefit plans are adjusted periodically, and the plans contain other cost-sharing features, such as
deductibles and coinsurance. In addition, in 1993, Sunoco implemented a dollar cap on its future contributions for its
principal postretirement health care benefits plan.
Defined benefit plans and postretirement benefit plans expense consisted of the following components:
Defined Benefit Plans Postretirement Benefit Plans
(Millions of Dollars) 2007 2006 2005 2007 2006 2005
Service cost (cost of benefits earned during the year) $50 $53 $49 $9 $9 $9
Interest cost on benefit obligations 83 85 84 25 22 22
Expected return on plan assets (98) (95) (91) ———
Amortization of:
Actuarial losses 32 33 29 333
Prior service cost (benefit) 223(1) (3) (5)
Special termination benefits 5—————
$74 $78 $74 $36 $31 $29
52