Sunoco 2008 Annual Report Download - page 79
Download and view the complete annual report
Please find page 79 of the 2008 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.-
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
 |
 |
During 2008, Sunoco announced its intention to sell its Tulsa, OK refinery or to convert it to a terminal by
the end of 2009 and, in January 2009, decided it will permanently shut down, no later than April 30, 2009, a
polypropylene plant in Bayport, TX which has become uneconomic to operate. In connection with these strategic
decisions, Sunoco recorded provisions to write-down the affected assets to their estimated fair values. Sunoco
also determined during 2008 that the goodwill related to its polypropylene business no longer had value and, as a
result, recorded a provision to write off the remaining goodwill. In addition, the Company recognized a gain on
an insurance recovery related to an MTBE litigation settlement which occurred in 2007 (Note 14).
During 2007, a phenol line at the Haverhill, OH chemical plant that had previously been idled in order to
eliminate less efficient production capacity was permanently shut down as it was determined that it had become
uneconomic to restart this line. In connection with the shutdown, Sunoco recorded a provision to write off the
affected production line. Sunoco also sold its Neville Island, PA terminal facility and recorded a loss on the
divestment and established accruals for enhanced pension benefits associated with employee terminations and for
other exit costs. In addition, the Company settled certain MTBE litigation and established an accrual for the costs
associated with the settlement (Note 14).
3. Other Income, Net
The components of other income, net, are as follows (in millions of dollars):
2008 2007 2006
Equity income (loss):
Pipeline joint ventures (Notes 2 and 7) ..................... $23 $28 $22
Other ................................................. (1) 3 4
Gain on divestments (Note 2) ............................... 9 38 18
Other ................................................... 23 13 1
$54 $82 $45
4. Income Taxes
The components of income tax expense are as follows (in millions of dollars):
2008 2007 2006
Income taxes currently payable:
U.S. federal ............................................ $309 $265 $370
State and other ......................................... 73 67 114
382 332 484
Deferred taxes:
U.S. federal ............................................ 22 141 122
State and other ......................................... (7) 45 (5)
15 186 117
$397 $518 $601
71