Sunoco 2008 Annual Report Download - page 83

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8. Properties, Plants and Equipment
Properties, plants and equipment consisted of the following components (in millions of dollars):
Gross
Investments
at Cost
Accumulated
Depreciation,
Depletion
and
Amortization
Net
Investment
December 31, 2008
Refining and supply ........................... $ 6,153 $2,266 $3,887
Retail marketing .............................. 1,544 702 842
Chemicals ................................... 1,233 389 844
Logistics ..................................... 1,978 591 1,387
Coke ........................................ 1,105 266 839
$12,013 $4,214 $7,799
December 31, 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
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, there is a dollar cap on Sunoco’s future
contributions for its principal postretirement health care benefits plan.
Defined benefit plans and postretirement benefit plans expense consisted of the following components (in
millions of dollars):
Defined Benefit Plans Postretirement Benefit Plans
2008 2007 2006 2008 2007 2006
Service cost (cost of benefits earned
during the year) .................... $ 47 $50 $53 $ 9 $ 9 $ 9
Interest cost on benefit obligations ...... 81 83 85 25 25 22
Expected return on plan assets ......... (106) (98) (95) — — —
Amortization of:
Actuarial losses .................... 13 32 33 1 3 3
Prior service cost (benefit) ........... 2 2 2 (1) (1) (3)
Special termination benefits and
settlement losses ................... 7 5 — — — —
$ 44 $ 74 $ 78 $34 $36 $31
75