Sunoco 2010 Annual Report Download - page 47

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Sunoco’s continued commitment in its expense reduction program, which is critical to improving
the Company’s competitiveness;
• Continued its ongoing business improvement initiative that commenced in 2009 to reduce the
Company’s cost base;
• Modified retirement benefit plans to freeze pension benefits for most participants and to phase
down or eliminate postretirement medical benefits beginning June 30, 2010;
• Modified incentive distribution rights in January 2010 that entitle Sunoco to receive cash in excess
of its general partnership interest in Sunoco Logistics Partners L.P. This transaction has provided
Sunoco with $201 million in cash in exchange for a portion of future cash flows from the
incentive distribution rights;
• Sold 2.2 million of its Sunoco Logistics Partners L.P. limited partnership units to the public in
February 2010 generating approximately $145 million of net proceeds;
• Enhanced the funded status of its defined benefit plans in 2010 with $234 million of contributions
consisting of $144 million of cash and 3.59 million shares of Sunoco common stock valued at $90
million; and
• Reduced the quarterly cash dividend on its common stock, effective beginning in the first quarter
of 2010 from $.30 per share ($1.20 per year) to $.15 per share ($.60 per year), which will reduce
quarterly cash dividend payments by approximately $18 million.
For additional information regarding the above actions, see Notes 2, 9, 15 and 17 to the Consolidated
Financial Statements (Item 8).
39