Sunoco 2008 Annual Report Download - page 96

The following table sets forth the minority interest balance and the changes to this balance attributable to the
third-party investors’ interests in Sunoco Logistics Partners L.P. (in millions of dollars):
2008 2007 2006
Balance at beginning of year ................................ $356 $ 503 $397
Gain recognized in income related to prior issuance
of the Partnership’s limited partnership units .................. (23) (151) —
Net proceeds from public equity offering ....................... — — 110
Minority interest share of income* ............................ 94 56 42
Cash distributions to third-party investors ...................... (61) (55) (48)
Other .................................................... 1 3 2
Balance at end of year .................................... $367 $ 356 $503
*Included in selling, general and administrative expenses in the consolidated statements of income.
The Partnership distributes to its general and limited partners all available cash (generally cash on hand at
the end of each quarter less the amount of cash the general partner determines in its reasonable discretion is
necessary or appropriate to provide for the proper conduct of the Partnership’s business). During the 2006-2008
period, the Partnership increased its quarterly distribution per unit from $.7125 to $.99.
Sunoco is a party to various agreements with the Partnership which require Sunoco to pay for minimum
storage and throughput usage of certain Partnership assets. Sunoco also has agreements with the Partnership
which establish fees for administrative services provided by Sunoco and provide indemnifications by Sunoco for
certain environmental, toxic tort and other liabilities related to operation of the Partnership’s assets prior to its
initial public offering in February 2002.
16. Shareholders’ Equity
Each share of Company common stock is entitled to one full vote. The $7 million of outstanding 6
3
⁄ 4
percent subordinated debentures are convertible into shares of Sunoco common stock at any time prior to
maturity at a conversion price of $20.41 per share and are redeemable at the option of the Company. At
December 31, 2008, there were 353,602 shares of common stock reserved for this potential conversion (Note 12).
The Company increased the quarterly cash dividend paid on common stock from $.20 per share ($.80 per
year) beginning with the second quarter of 2005, to $.25 per share ($1.00 per year) beginning with the second
quarter of 2006, to $.275 per share ($1.10 per year) beginning with the second quarter of 2007 and to $.30 per
share ($1.20 per year) beginning with the second quarter of 2008.
The Company repurchased in 2008, 2007 and 2006, 0.8, 4.0 and 12.2 million shares, respectively, of its
common stock for $49, $300 and $871 million, respectively. At December 31, 2008, the Company had a
remaining authorization from its Board to repurchase up to $600 million of Company common stock.
The Company’s Articles of Incorporation authorize the issuance of up to 15 million shares of preference
stock without par value, subject to approval by the Board. The Board also has authority to fix the number,
designation, rights, preferences and limitations of these shares, subject to applicable laws and the provisions of
the Articles of Incorporation. At December 31, 2008, no such shares had been issued.
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