Sunoco 2010 Annual Report Download - page 85
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As a result of the sale of the polypropylene chemicals and Tulsa refining operations, such operations have
been classified as discontinued operations for all periods presented in the consolidated statements of operations
and related footnotes. The following table summarizes income (loss) from discontinued operations recognized
during 2010, 2009 and 2008 (in millions of dollars):
2010 2009 2008
Income (loss) before income tax expense (benefit) ............... $(136) $85 $(114)
Income tax expense (benefit) ................................ (113) 34 (45)
Income (loss) from discontinued operations* .................... $ (23) $51 $ (69)
*Attributable to Sunoco, Inc. shareholders.
Income from discontinued operations in 2010 and 2009 includes a net gain (loss) on divestment consisting
of the following components (in millions of dollars):
Pretax
Gain
(Loss)
After-
tax
Gain
(Loss)
2010
Loss on sale of common stock of polypropylene operations .............. $(169) $(44)
2009
Gain on sale of refinery ........................................... $ 39 $23
Gain on sale of related inventory* ................................... 42 25
Retirement benefit plan settlement and curtailment losses ............... (11) (7)
$70 $41
*Reflects the gain from the sale of inventories that were valued at lower LIFO costs prevailing in prior years.
Sales and other operating revenue (including consumer excise tax) from discontinued operations totaled
$313, $1,543 and $5,152 million for 2010, 2009 and 2008, respectively.
Toledo Refinery—In December 2010, Sunoco entered into an agreement to sell its Toledo refinery and
related crude and refined product inventories. The purchase price for the refinery is $400 million consisting of
$200 million in cash and a $200 million note due two years after closing. The purchase price of the inventory will
be based upon market prices near the time of closing. The purchase agreement also includes a participation
payment of up to $125 million based on the future profitability of the refinery. The transaction is subject to
customary closing conditions, and is expected to be completed in the first quarter of 2011. The sale of the
refinery is expected to permit the Company to direct resources and management focus toward growing Sunoco’s
retail marketing and logistics businesses. Sunoco does not expect a material impact on its 2011 net income as a
result of the closing of this transaction. At December 31, 2010, the Toledo refinery and its related assets have
been classified as held for sale in the consolidated balance sheet. The results of operations for the Toledo refinery
have not been classified as discontinued operations due to Sunoco’s expected continuing involvement with the
Toledo refinery through a three-year agreement for the purchase of gasoline and distillate to supply Sunoco retail
sites in this area.
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