Sunoco 2010 Annual Report Download - page 61

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A purchase obligation is an enforceable and legally binding agreement to purchase goods or services that
specifies significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum or variable
price provisions; and the approximate timing of the transaction. Sunoco’s principal purchase obligations in the
ordinary course of business consist of: crude oil, other feedstocks and refined products and transportation and
distribution services, including pipeline and terminal throughput and railroad services. Approximately one-half of
the contractual obligations to purchase crude oil, other feedstocks and refined products reflected in the above
table for 2011 relates to spot-market purchases to be satisfied within the first 90 days of the year. Sunoco also has
contractual obligations supporting financing arrangements of third parties, contracts to acquire or construct
properties, plants and equipment, and other contractual obligations, primarily related to services and materials,
including commitments to purchase supplies and various other maintenance, systems and communications
services. Most of Sunoco’s purchase obligations are based on market prices or formulas based on market prices.
These purchase obligations generally include fixed or minimum volume requirements. The purchase obligation
amounts in the table above are based on the minimum quantities to be purchased at estimated prices to be paid
based on current market conditions. Accordingly, the actual amounts may vary significantly from the estimates
included in the table.
Sunoco also has obligations pertaining to unrecognized tax benefits and related interest and penalties
amounting to $29 million, which have been excluded from the table above as the Company does not believe it is
practicable to make reliable estimates of the periods in which payments for these obligations will be made (see
Note 4 to the Consolidated Financial Statements under Item 8). In addition, Sunoco has obligations with respect
to its defined benefit pension plans and postretirement health care plans, which have also been excluded from the
table above (see “Retirement Benefit Plans” below and Note 9 to the Consolidated Financial Statements under
Item 8).
Off-Balance Sheet Arrangements—Other than the arrangements described in Note 14 to the
Consolidated Financial Statements (Item 8), the Company has not entered into any transactions, agreements or
other contractual arrangements that would result in off-balance sheet liabilities.
Capital Program
The following table sets forth Sunoco’s planned and actual capital expenditures for additions to properties,
plants and equipment as well as the Company’s acquisitions and other capital outlays (in millions of dollars):
2011 Plan 2010 2009 2008
Refining and Supply:
Continuing operations ................................. $135-145* $ 247 $377 $ 629
Discontinued Tulsa operations .......................... — — 3 23
Retail Marketing ........................................ 115-125 124 80 128
Logistics .............................................. 145-195 426** 225*** 330†
Chemicals:
Continuing operations ................................. 25 17 20 24
Discontinued polypropylene operations ................... — 3 15 25
Coke ................................................. 289 223 229 312
Consolidated capital program ........................... $709-779 $1,040 $949 $1,471
*Excludes the Toledo refinery capital after expected closing of the sale in the first quarter of 2011 and the Marcus Hook Consent
Decree capital which may be delayed as a result of discussions with government environmental authorities.
**Includes $152 million acquisition of a butane blending business and $91 million acquisition of additional ownership interests in pipeline
joint ventures.
***Includes $50 million acquisition of a crude oil pipeline in Oklahoma and a refined products terminal in Michigan.
†Includes $185 million acquisition from ExxonMobil of a refined products pipeline system and related storage facilities located in Texas
and Louisiana.
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