Sunoco 2008 Annual Report Download - page 85

Download and view the complete annual report

Please find page 85 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.

Page out of 120

  • 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

The following tables set forth the components of the changes in benefit obligations and fair value of plan
assets during 2008 and 2007 as well as the funded status at December 31, 2008 and 2007 (in millions of dollars):
Defined Benefit Plans Postretirement
Benefit Plans2008 2007
Funded
Plans
Unfunded
Plans
Funded
Plans
Unfunded
Plans 2008 2007
Benefit obligations at beginning of year* ....... $1,202 $ 146 $1,268 $ 147 $ 430 $ 428
Service cost .............................. 45 2 48 2 9 9
Interest cost .............................. 73 8 74 9 25 25
Actuarial losses (gains) .................... 41 8 (47) — (11) (15)
Plan amendments ......................... — — 1 — 2 10
Benefits paid ............................. (166) (33) (147) (12) (45) (40)
Premiums paid by participants ............... — — — — 13 13
Special termination benefits ................. — — 5 — — —
Benefit obligations at end of year* ........ $1,195 $ 131 $1,202 $ 146 $ 423 $ 430
Fair value of plan assets at beginning
of year** ............................... $1,315 $1,287
Actual (loss) income on plan assets .......... (358) 75
Employer contributions ..................... 46 100
Benefits paid from plan assets ............... (166) (147)
Fair value of plan assets at end
of year** ........................... $ 837 $1,315
Overfunded (underfunded) accumulated
obligation .............................. $ (303) $(129) $ 173 $(144)
Provision for future salary increases .......... (55) (2) (60) (2)
Funded status at end of year ............ $ (358) $(131) $ 113 $(146) $(423) $(430)
*Represents the projected benefit obligations for defined benefit plans and the accumulated postretirement benefit obligations (“APBO”)
for postretirement benefit plans. The accumulated benefit obligations for funded and unfunded defined benefit plans amounted to
$1,140 and $129 million, respectively, at December 31, 2008 and $1,142 and $144 million, respectively, at December 31, 2007.
**There are no plan assets invested in Company stock.
The amounts reflected in the consolidated balance sheets at December 31, 2008 and 2007 pertaining to the
defined benefit and postretirement benefit plans are classified as follows (in millions of dollars):
Defined Benefit Plans Postretirement
Benefit Plans2008 2007
Funded
Plans
Unfunded
Plans
Funded
Plans
Unfunded
Plans 2008 2007
Prepaid retirement costs* ................... $ — $ — $122 $ — $ — $ —
Retirement benefit liabilities (including
current portion)** ........................ (358) (131) (9) (146) (423) (430)
Funded status at end of year ............ $(358) $(131) $113 $(146) $(423) $(430)
*Included in deferred charges and other assets in the consolidated balance sheets.
**The current portion of retirement liabilities, which totaled $76 and $60 million at December 31, 2008 and 2007, respectively, is classified
in accrued liabilities in the consolidated balance sheets.
77