Sunoco 2010 Annual Report Download - page 48

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Results of Operations
Earnings Profile of Sunoco Businesses (millions of dollars after tax)
2010 2009 2008
Refining and Supply:
Continuing operations ....................................... $ (8) $(316) $448
Discontinued Tulsa operations ................................ — 3 67
Retail Marketing ............................................. 110 86 201
Logistics .................................................... 86 97 85
Chemicals:
Continuing operations ....................................... 15 (13) 23
Discontinued polypropylene operations ......................... 21 14 13
Coke ....................................................... 132 180 105
Corporate and Other:
Corporate expenses ........................................ (73) (38) (46)
Net financing expenses and other ............................. (68) (50) (22)
Asset write-downs and other matters:
Continuing operations ................................... (65) (407) 11
Discontinued Tulsa operations ............................ — (3) (95)
Discontinued polypropylene operations ..................... — (4) (54)
Gain on remeasurement of pipeline equity interests ............... 37 — —
Sale of discontinued polypropylene operations ................... (44) — —
Income tax matters ......................................... (9) — 26
LIFO inventory profits ....................................... 100 55 —
Sale of discontinued Tulsa operations .......................... — 41 —
Sale of retail heating oil and propane distribution business ......... — 26 —
Issuance of Sunoco Logistics Partners L.P. limited partnership
units ................................................... — — 14
Net income (loss) attributable to Sunoco, Inc. shareholders . . $234 $(329) $776
Analysis of Earnings Profile of Sunoco Businesses
In 2010, net income attributable to Sunoco, Inc. shareholders was $234 million, or $1.95 per share of
common stock on a diluted basis, compared to a net loss attributable to Sunoco, Inc. shareholders of $329
million, or $2.81 per share, in 2009 and net income attributable to Sunoco, Inc. shareholders of $776 million, or
$6.63 per share, in 2008.
The $563 million increase in results attributable to Sunoco, Inc. shareholders in 2010 was primarily due to
higher margins from continuing operations in Sunoco’s Refining and Supply business ($213 million), lower
expenses ($137 million), lower provisions for asset write-downs and other matters ($349 million), higher LIFO
gains from the liquidation of crude oil and refined product inventories ($45 million) and the gain from the
remeasurement of pipeline equity interests to fair value in 2010 ($37 million). Partially offsetting these positive
factors were lower production of refined products ($53 million), the absence of a $41 million investment tax
credit associated with the start up of the Gateway cokemaking facility, the 2010 loss on the sale of the
discontinued polypropylene operations ($44 million) and the absence of gains associated with 2009 divestments
($67 million).
The $1,105 million decrease in results attributable to Sunoco, Inc. shareholders in 2009 was primarily due to
lower margins from continuing operations in Sunoco’s Refining and Supply ($873 million) and Retail Marketing
($173 million) businesses, higher provisions for asset write-downs and other matters ($276 million), lower
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