Sunoco 2010 Annual Report Download - page 84

Download and view the complete annual report

Please find page 84 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.

Page out of 136

  • 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 following table summarizes the effects of Sunoco’s acquisitions during 2010 on the consolidated
financial position (including the consolidation of Mid-Valley and WTG and the recognition of the gain from the
remeasurement of the pre-acquisition equity interests) (in millions of dollars):
Texon
L.P.
Pipeline
Equity
Interests
Retail
Marketing
Sites Total
Increase in:
Current assets .......................................... $ 14 $ 8 $ 1 $ 23
Properties, plants and equipment ........................... 1 471 24 496
Deferred charges and other assets* ......................... 137 — — 137
Deferred income taxes .................................... — (186) — (186)
Sunoco, Inc. shareholders’ equity ........................... — (37) — (37)
Noncontrolling interests ................................... — (149) — (149)
Decrease in:
Current liabilities ......................................... — 10 — 10
Investments and long-term receivables ...................... — (26) — (26)
Cash paid for acquisitions ................................... $152 $ 91 $25 $ 268
*Consists of $90 million allocated to patents and customer contracts and $47 million allocated to goodwill.
In the third quarter of 2009, the Partnership acquired Excel Pipeline LLC, the owner of a crude oil pipeline
which services Gary Williams’ Wynnewood, OK refinery and a refined products terminal in Romulus, MI for a
total of $50 million. In November 2008, the Partnership purchased a refined products pipeline system, refined
products terminal facilities and certain other related assets located in Texas and Louisiana from affiliates of
Exxon Mobil Corporation for $185 million. The purchase price of these acquisitions has been included in
properties, plants and equipment in the consolidated balance sheets (except for $21 million allocated to a supply
contract included in deferred charges and other assets related to the crude oil pipeline acquisition in 2009).
No pro forma information has been presented since the impact of acquisitions during the 2008-2010 period
were not material in relation to Sunoco’s consolidated results of operations.
Divestments
Discontinued Operations
On March 31, 2010, Sunoco completed the sale of the common stock of its polypropylene chemicals
business to Braskem S.A. The assets sold as part of this transaction included the polypropylene manufacturing
facilities in LaPorte, TX, Neal, WV, and Marcus Hook, PA, a propylene supply agreement and related inventory.
Cash proceeds from this divestment of $348 million were received in the second quarter of 2010.
In December 2008, Sunoco announced its intention to sell the Tulsa refinery or convert it to a terminal by
the end of 2009 because it did not expect to achieve an acceptable return on investment on a capital project to
comply with the new off-road diesel fuel requirements at this facility. In connection with this decision, during
2008, Sunoco recorded a $160 million provision ($95 million after tax) to write down the affected assets to their
estimated fair values. On June 1, 2009, Sunoco completed the sale of its Tulsa refinery to Holly Corporation. The
transaction also included the sale of inventory attributable to the refinery which was valued at market prices at
closing. Sunoco received a total of $157 million in cash proceeds from this divestment, comprised of $64 million
from the sale of the refinery and $93 million from the sale of the related inventory.
76