Sunoco 2007 Annual Report Download - page 56

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The amounts reflected in the consolidated balance sheets at December 31, 2007 and 2006 pertaining to the defined
benefit and postretirement benefit plans are classified as follows:
Defined Benefit Plans
Postretirement
Benefit Plans
2007 2006
(Millions of Dollars)
Funded
Plans
Unfunded
Plans
Funded
Plans
Unfunded
Plans 2007 2006
Prepaid retirement costs* $122 $ — $21 $ — $— $—
Retirement benefit liabilities (including current portion)** (9) (146) (2) (147) (430) (428)
Funded status at end of year $113 $(146) $19 $(147) $(430) $(428)
* Included in deferred charges and other assets in the consolidated balance sheets.
** The current portion of retirement liabilities, which totaled $60 and $54 million at December 31, 2007 and 2006, respectively, is classified in accrued liabilities in the consolidated
balance sheets.
The following table sets forth the cumulative amounts not yet recognized in net income at December 31, 2007 and
2006:
Defined Benefit Plans
Postretirement
Benefit Plans
2007 2006
(Millions of Dollars)
Funded
Plans
Unfunded
Plans
Funded
Plans
Unfunded
Plans 2007 2006
Cumulative amounts not yet recognized in net income:
Prior service costs (benefits) $14 $(3) $ 15 $ (3) $(8) $(19)
Actuarial losses 205 48 253 56 56 73
Accumulated other comprehensive loss (before related tax benefit) $219 $45 $268 $53 $48 $54
The asset allocations attributable to the funded defined benefit plans at December 31, 2007 and 2006 and the target
allocation of plan assets for 2008, by asset category, are as follows:
December 31
(In Percentages) 2008 Target 2007 2006
Asset category:
Equity securities 60% 61% 65%
Debt securities 35 35 32
Other 543
Total 100% 100% 100%
The investment strategy of the Company’s funded defined benefit plans is to achieve consistent positive returns, after
adjusting for inflation, and to maximize long-term total return within prudent levels of risk through a combination of
income and capital appreciation.
Management currently anticipates making up to $100 million of voluntary contributions to the Company’s funded de-
fined benefit plans in 2008.
The expected benefit payments through 2017 for the defined benefit and postretirement benefit plans are as follows:
Defined Benefit Plans
(Millions of Dollars)
Funded
Plans
Unfunded
Plans
Postretirement
Benefit Plans*
Year ending December 31:
2008 $148 $22 $56
2009 $146 $21 $61
2010 $142 $25 $64
2011 $142 $15 $70
2012 $137 $15 $68
2013 through 2017 $611 $58 $370
*Before premiums paid by participants.
54