Sunoco 2010 Annual Report Download - page 97

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The measurement date for the Company’s defined benefit and postretirement benefit plans is December 31.
The following weighted-average assumptions were used at December 31, 2010 and 2009 to determine benefit
obligations for the plans:
Defined
Benefit Plans
Postretirement
Benefit Plans
2010 2009 2010 2009
Discount rate ................................... 4.95% 5.50% 4.40% 5.10%
Rate of compensation increase ..................... 3.00% 3.00%
The health care cost trend assumption used at December 31, 2010 to compute the APBO for the
postretirement benefit plans was an increase of 8.5 percent (9.0 percent at December 31, 2009), which is assumed
to decline gradually to 5.5 percent in 2017 and to remain at that level thereafter. A one-percentage point change
each year in assumed health care cost trend rates would have the following effects at December 31, 2010 (in
millions of dollars):
1-Percentage
Point Increase
1-Percentage
Point Decrease
Effect on total of service and interest cost components
of postretirement benefits expense ..................... $— $—
Effect on APBO ...................................... $1 $(1)
Defined Contribution Pension Plans
Sunoco has defined contribution pension plans which provide retirement benefits for most of its employees.
Sunoco’s contributions are principally based on a percentage of employees’ annual base compensation and,
effective June 30, 2010, a discretionary profit sharing contribution. These contributions are charged against
income as incurred and amounted to $27, $28 and $28 million in 2010, 2009 and 2008, respectively.
Contributions for 2010 include $7 million attributable to profit sharing contributions which began effective
July 1, 2010.
Sunoco’s principal defined contribution plan is SunCAP. SunCAP is a combined profit sharing and
employee stock ownership plan which contains a provision designed to permit SunCAP, only upon approval by
the Company’s Board of Directors, to borrow in order to purchase shares of Company common stock. As of
December 31, 2010, no such borrowings had been approved.
10. Deferred Charges and Other Assets
Deferred charges and other assets (excluding amounts attributable to the Toledo refinery which are included
in assets held for sale at December 31, 2010) consist of the following (in millions of dollars):
December 31
2010 2009
Goodwill* ........................................................ $120 $ 86
Propylene supply contract** ......................................... — 76
Dealer and distributor contracts and other intangible assets* .............. 136 66
Other ........................................................... 100 98
$356 $326
*Includes balances attributable to $47 million allocated to goodwill and $90 million allocated to patents and customer contracts resulting
from the acquisition of a butane blending business from Texon L.P. in July 2010 (Note 2).
**This asset was sold as part of the polypropylene chemicals business’ common stock sale to Braskem S.A. in March 2010.
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