Sunoco 2010 Annual Report Download - page 110

The following table sets forth the noncontrolling interest balances and the changes to these balances (in
millions of dollars):
Cokemaking
Operations
Logistics
Operations Total
At December 31, 2007 ............................. $83 $356 $439
Noncontrolling interests share of income ............... 19 94 113
Cash distributions ................................. (31) (61) (92)
Gain recognized in income related to prior issuance of
limited partnership units ........................... — (23) (23)
Other ............................................ — 1 1
At December 31, 2008 ............................. $71 $367 $438
Noncontrolling interests share of income ............... 22 107 129
Cash distributions ................................. (19) (75) (94)
Reduction in Sunoco ownership attributable to the
issuance of limited partner units to the public ......... — 88 88
Other ............................................ — 1 1
At December 31, 2009 ............................. $74 $488 $562
Noncontrolling interests share of income ............... 8 186* 194
Cash distributions ................................. (21) (102) (123)
Distribution to Sunoco in connection with modification of
incentive distribution rights ........................ — (121) (121)
Reduction in Sunoco ownership attributable to the
issuance/sale of limited partner units to the public ..... — 162 162
Increase attributable to the consolidation of pipeline
acquisitions ..................................... — 80 80
Other ............................................ — (1) (1)
At December 31, 2010 ............................. $61 $692 $753
*Includes $69 million attributable to the noncontrolling interests’ share of the $128 million pretax gain on remeasurement of
pre-acquisition equity interests in Mid-Valley and WTG.
18. Fair Value Measurements
The Company’s cash equivalents, which amounted to $1,469 and $367 million at December 31, 2010 and
2009, respectively, were measured at fair value based on quoted prices in active markets for identical assets. The
additional assets and liabilities that were measured at fair value on a recurring basis were not material to the
Company’s consolidated balance sheets.
Sunoco’s other current assets (other than inventories, deferred income taxes and Toledo refinery and related
assets held for sale) and current liabilities (other than the current portion of retirement benefit liabilities) are
financial instruments and most of these items are recorded at cost in the consolidated balance sheets. The
estimated fair values of these financial instruments approximate their carrying amounts. At December 31, 2010
and 2009, the estimated fair value of Sunoco’s long term debt was $2,379 and $2,186 million, respectively,
compared to carrying amounts of $2,136 and $2,061 million, respectively. Long-term debt that is publicly traded
was valued based on quoted market prices while the fair value of other debt issues was estimated by management
based upon current interest rates available at the respective balance sheet dates for similar issues.
Sunoco is exposed to credit risk in the event of nonperformance by counterparties on its derivative
instruments. Management believes this risk is not significant as the Company has established credit limits with
such counterparties which require the settlement of net positions when these credit limits are reached.
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