Sunoco 2010 Annual Report Download - page 111
Download and view the complete annual report
Please find page 111 of the 2010 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 -
121 -
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
 |
 |
The Company had open derivative contracts pertaining to 10,580 thousand barrels of crude oil and refined
products and 2,100 thousand MM BTUs of natural gas at December 31, 2010, which vary in duration but
generally do not extend beyond December 31, 2011.
The following tables set forth the impact of derivatives on the Company’s financial performance for the
years ended December 31, 2010 and 2009 (in millions of dollars):
Pretax Gains (Losses)
Recognized in Other
Comprehensive
Income
Pretax Gains
(Losses)
Recognized in
Earnings
Year Ended December 31, 2010
Derivatives designated as cash flow hedging instruments:
Commodity contracts .............................. $ (6) $35*
Commodity contracts .............................. (37)**
Interest rate contracts ............................. — —***
$ (6) $ (2)
Derivatives not designated as hedging instruments:
Commodity contracts .............................. $(15)*
Commodity contracts .............................. 3**
Transportation contracts ........................... —**
$(12)
Year Ended December 31, 2009
Derivatives designated as cash flow hedging instruments:
Commodity contracts .............................. $(16) $ 13*
Commodity contracts .............................. (36)**
Interest rate contracts ............................. — —***
$(16) $(23)
Derivatives not designated as hedging instruments:
Commodity contracts .............................. $ —*
Commodity contracts .............................. (25)**
Transportation contracts ........................... (1)**
$(26)
*Included in sales and other operating revenue in the consolidated statements of operations.
**Included in cost of products sold and operating expenses in the consolidated statements of operations.
***Included in interest cost and debt expense in the consolidated statements of operations.
19. Business Segment Information
Sunoco is a petroleum refiner and marketer and chemicals manufacturer with interests in logistics and
cokemaking. Sunoco’s operations are organized into five business segments.
The Refining and Supply segment manufactures petroleum products and commodity petrochemicals at
Sunoco’s Marcus Hook, Philadelphia and Toledo refineries and sells these products to other Sunoco businesses
and to wholesale and industrial customers. In the fourth quarter of 2009, Refining and Supply permanently shut
down all process units at its Eagle Point refinery in response to weak demand and increased global refining
capacity and, in the second quarter of 2009, sold its discontinued Tulsa refining operations (Note 2). Prior to the
shutdown of the Eagle Point refinery and the sale of the Tulsa refinery, Refining and Supply manufactured
petroleum products at these facilities as well as lubricants at Tulsa, which were sold to other Sunoco businesses
and to wholesale and industrial customers. In December 2010, Sunoco entered into an agreement to sell its
103