Sunoco 2011 Annual Report Download - page 60

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The Company’s 2011 capital outlays consisted of $416 million for income improvement projects; $419
million for acquisitions; $203 million for infrastructure spending; $41 million for turnarounds at the Company’s
refineries; and $63 million for environmental projects. The $416 million of outlays for income improvement
projects consisted of $170 million related to growth opportunities in the Logistics business; $179 million towards
the construction of a cokemaking facility in Middletown, OH; and $67 million for various other income
improvement projects primarily in Retail Marketing and Coke. The $419 million of outlays for acquisitions
related to the purchase by the Logistics business of a crude oil purchasing and marketing business, a refined
products terminal and the acquisition of a controlling financial interest in a pipeline joint venture and the
acquisition of a coal company by SunCoke Energy.
The Company’s 2010 capital outlays consisted of $367 million for income improvement projects; $268
million for acquisitions; $203 million for infrastructure spending; $105 million for turnarounds at the Company’s
refineries; and $97 million for environmental projects. The $367 million of outlays for income improvement
projects consisted of $146 million related to growth opportunities in the Logistics business; $177 million towards
the construction of a cokemaking facility in Middletown, OH; $24 million at the ethanol manufacturing facility
in New York which started up in June 2010; and $20 million for various other income improvement projects
primarily in Retail Marketing. The $268 million of outlays for acquisitions related to the purchase by the
Logistics business of a butane blending business and the acquisition of additional ownership interests in pipeline
joint ventures and the acquisition of 25 retail locations in central and northern New York.
The Company’s 2009 capital outlays consisted of $439 million for income improvement projects; $50
million for acquisitions; $216 million for infrastructure spending; $68 million for turnarounds at the Company’s
refineries; $111 million for projects at the Philadelphia and Toledo refineries under the 2005 Consent Decree;
and $65 million for other environmental projects. The $439 million of outlays for income improvement projects
consisted of $71 million related to the $200 million project at the Philadelphia refinery to increase
ultra-low-sulfur-diesel fuel production capability; $143 million related to growth opportunities in the Logistics
business, including amounts attributable to projects to increase crude oil storage capacity at the Partnership’s
Nederland terminal and to add a crude oil pipeline which connects the terminal to Motiva Enterprise LLC’s Port
Arthur, TX refinery; $184 million towards construction of cokemaking facilities in Granite City, IL and
Middletown, OH; and $41 million for various other income improvement projects. The $50 million of outlays for
acquisitions related to the purchase by the Logistics business of a crude oil pipeline in Oklahoma and a refined
products terminal in Michigan.
Retirement Benefit Plans
The following table sets forth the components of the change in market value of the investments in Sunoco’s
defined benefit pension plans (in millions of dollars):
December 31,
2011 2010
Balance at beginning of year ........................................... $1,008 $ 804
Increase (reduction) in market value of investments resulting from:
Net investment income ............................................. 57 149
Company contributions ............................................. — 234
Plan benefit payments .............................................. (212) (168)
Divestments ...................................................... — (11)
Balance at end of year ............................................ $ 853 $1,008
As a result of the workforce reduction, divestments and the permanent shutdown of the Eagle Point refinery,
the Company incurred noncash charges related to settlement and curtailment losses and special termination
benefits in these plans during 2011, 2010 and 2009 totaling approximately $60, $55 and $130 million pretax,
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