Sunoco 2011 Annual Report Download - page 93

The long-term expected rate of return on plan assets was estimated based on a variety of factors including
the historical investment return achieved over a long-term period, the targeted allocation of plan assets and
expectations concerning future returns in the marketplace for both equity and fixed income securities.
The following amounts were recognized as components of other comprehensive income (loss) for the years
ended December 31, 2011, 2010 and 2009 (in millions of dollars):
Defined
Benefit Plans
Postretirement
Benefit Plans
2011 2010 2009 2011 2010 2009
Reclassifications to earnings of:
Actuarial loss amortization ............................... $ 31 $ 47 $ 56 $ 8 $ 4 $ 2
Prior service cost (benefit) amortization ..................... — — 1 (20) (20) (4)
Settlement and curtailment losses (gains) .................... 57 57 118 (3) (3) (13)
Retirement benefit plans funded status adjustment:
Actuarial gains (losses) .................................. (121) 28 58 29 (25) (37)
Prior service benefit (cost) ................................ — — — — 31 60
$ (33) $132 $233 $ 14 $(13) $ 8
The following tables set forth the components of the changes in benefit obligations and fair value of plan
assets during 2011 and 2010 as well as the funded status at December 31, 2011 and 2010 (in millions of dollars):
Defined Benefit Plans Postretirement
Benefit Plans2011 2010
Funded
Plans
Unfunded
Plans
Funded
Plans
Unfunded
Plans 2011 2010
Benefit obligations at beginning of year* ............. $1,069 $ 89 $1,123 $100 $ 386 $ 405
Service cost .................................... 7 — 23 — 1 2
Interest cost .................................... 47 4 56 5 14 17
Actuarial (gains) losses ........................... 109 10 53 7 (28) 27
Plan amendments ............................... — — — — — (31)
Benefits paid ................................... (212) (20) (168) (25) (51) (48)
Divestments .................................... — — (11) — — —
Premiums paid by participants ..................... — — — — 19 16
Special termination benefits and curtailment (gains)
losses ....................................... (1) — (7) 2 — (2)
Benefit obligations at end of year* ................ $1,019 $ 83 $1,069 $ 89 $ 341 $ 386
Fair value of plan assets at beginning of year .......... $1,008 $ 804
Actual income on plan assets ...................... 57 149
Employer contributions ........................... — 234
Benefits paid from plan assets ..................... (212) (168)
Divestments .................................... — (11)
Fair value of plan assets at end of year ............. $ 853 $1,008
Underfunded accumulated obligation ................ $ (166) $(83) $ (35) $ (89)
Provision for future salary increases ................. — — (26) —
Funded status at end of year** ..................... $ (166) $(83) $ (61) $ (89) $(341) $(386)
*Represents the projected benefit obligations for defined benefit plans and the accumulated postretirement benefit obligations (“APBO”) for
postretirement benefit plans. The accumulated benefit obligations for funded and unfunded defined benefit plans amounted to $1,019 and $83
million, respectively, at December 31, 2011 and $1,043 and $89 million, respectively, at December 31, 2010.
**Represents retirement benefit liabilities (including current portion) in the consolidated balance sheets. The current portion of retirement liabilities,
which totaled $48 and $55 million at December 31, 2011 and 2010, respectively, is classified in accrued liabilities in the consolidated balance
sheets.
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