Sunoco 2010 Annual Report Download - page 86

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The following table sets forth the components of the Toledo refinery and related assets held for sale at
December 31, 2010 (in millions of dollars):
Inventories:
Crude oil .................................................... $ 92
Petroleum and chemical products ................................ 14
Materials, supplies and other .................................... 12
Total inventories ............................................ 118
Properties, plants and equipment, net ............................. 895
Deferred charges and other assets ............................... 16
$1,029
Retail Portfolio Management Program—During the 2008-2010 period, Sunoco generated $187 million of
divestment proceeds related to the sale of 262 sites under a Retail Portfolio Management (“RPM”) program to
selectively reduce the Company’s invested capital in Company-owned or leased retail sites. Most of the sites
were converted to contract dealers or distributors thereby retaining most of the gasoline sales volume attributable
to the divested sites within the Sunoco branded business. During 2010, 2009 and 2008, net gains of $17, $24 and
$4 million, respectively ($10, $14 and $3 million after tax, respectively) were recognized as gains on divestments
in other income, net, in the consolidated statements of operations in connection with the RPM program.
Retail Heating Oil and Propane Distribution Business—In 2009, Sunoco sold its retail heating oil and
propane distribution business for $83 million in cash. In connection with this transaction, Sunoco recognized a
$44 million net gain ($26 million after tax), which includes an $8 million accrual for environmental
indemnification and other exit costs. This gain is recognized as a gain on divestments in other income, net, in the
consolidated statement of operations.
Other Matters
Asset Write-Downs and Other Matters—The following table summarizes information regarding the
provision for asset write-downs and other matters recognized during 2010, 2009 and 2008 (in millions of
dollars):
Pretax
Provisions
After-Tax
Provisions
2010
Eagle Point refinery ......................................... $ 57 $ 34
Business improvement initiative ............................... 68 40
MTBE litigation insurance recovery ............................ (16) (9)
$109 $ 65
2009
Eagle Point refinery ......................................... $476 $284
Business improvement initiative ............................... 169 100
Other .................................................... 42 23
$687 $407
2008
MTBE litigation insurance recovery ............................ $(18) $ (11)
In 2009, the Company permanently shut down all process units at the Eagle Point refinery. In connection
with this decision, Sunoco recorded a $476 million provision ($284 million after tax) to write down the affected
78