Exhibit 99.1

 

						News Release

 

Sunoco, Inc.

1818 Market Street, Suite 1500

Philadelphia, PA 19103

 

For further information contact:		For release: IMMEDIATELY

    Thomas Golembeski (media) 215-977-6298

    Clare McGrory (investors) 215-977-6764

No. 7-12

SUNOCO UPDATES PRELIMINARY FOURTH QUARTER 2011 RESULTS

No Change to Preliminary Pretax Results; After-Tax Amounts Provided

PHILADELPHIA, February 15, 2012 — Sunoco, Inc. (NYSE: SUN) today updated the information contained in its preliminary release on pretax earnings on February 2, 2012 to include the tax provision and after-tax results. There were no changes to the previously reported pretax amounts. Sunoco reported a net loss attributable to Sunoco shareholders of $362 million ($3.39 per share diluted) for the fourth quarter of 2011 versus net income attributable to Sunoco shareholders of $87 million ($0.72 per share diluted) for the fourth quarter of 2010. Excluding special items, Sunoco had income of $5 million ($0.05 per share diluted) for the fourth quarter of 2011 versus income of $13 million ($0.11 per share diluted) for the fourth quarter of 2010. Key fourth quarter details include:

 

•

Logistics and Retail contributed pretax income of $106 million

 

•

Refining and Supply reported a pretax loss of $117 million

 

•

Completed the separation of SunCoke Energy, Inc. in January 2012

 

•

Recognized a $630 million pretax provision ($374 million after tax) for additional asset write-downs and idling expenses at the Philadelphia and Marcus Hook refineries

The discussion of pretax business results below is unchanged from the preliminary release on February 2. The following updated information for the fourth quarter of 2011 has been provided in this release:

 

•

Earnings per share amounts

 

•

A description of the tax benefits recorded in the fourth quarter for income excluding special items

 

•

After-tax amounts for the special items

 

•

Earnings profile of Sunoco business tables to reflect the tax amounts

 

•

Statements of operations, balance sheets and statements of cash flows

 

1

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DETAILS OF FOURTH QUARTER RESULTS

Logistics

Logistics earned $66 million pretax in the fourth quarter of 2011 versus $35 million in the fourth quarter of 2010. The increase in earnings was primarily due to higher crude oil sales volumes and margins which benefitted from market-related opportunities. Pipeline earnings benefitted from continued strong demand for crude oil in West Texas. Higher earnings attributable to recent acquisitions and organic growth projects also contributed to the improved results.

Retail Marketing

Retail Marketing earned $40 million pretax in the current quarter versus $1 million in the fourth quarter of 2010. The increase in earnings was primarily attributable to higher retail gasoline and distillate margins, partially offset by lower gasoline sales volumes.

Refining and Supply

Refining and Supply had a pretax loss of $117 million in the current quarter versus $17 million in the fourth quarter of 2010. The decrease in earnings was primarily the result of lower realized margins and production volumes. These negative factors were partially offset by lower expenses. Margins deteriorated throughout the fourth quarter during which market margins for gasoline were frequently negative. Margins were also impacted by high premiums for crude oil versus the Dated Brent crude oil benchmark. Production volumes were impacted by the idling of the Marcus Hook facility during the fourth quarter. The overall crude utilization rate was 81 percent for the quarter, down from 90 percent in the third quarter of 2011.

Coke

Coke earned $9 million pretax in the fourth quarter of 2011 versus $25 million in the fourth quarter of 2010. The decrease in earnings was largely attributable to lower coke sales revenues as a result of the Jewell contract restructuring with ArcelorMittal in January 2011, higher general and administrative costs largely associated with the relocation of SunCoke Energy’s corporate offices and additional staffing costs related to becoming a public company and Sunoco’s reduced ownership interest in SunCoke Energy.

Discontinued Chemicals Operations

Discontinued chemicals operations had pretax income of $3 million in the fourth quarter of 2011 versus $6 million in the fourth quarter of 2010.

OTHER

Corporate administrative expenses were $17 million pretax in the current quarter versus $27 million in the fourth quarter of 2010. The decrease was largely driven by lower staffing and incentive compensation costs.

 

2

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Net financing expenses and other were $32 million pretax in the fourth quarter of 2011 compared to $27 million in the fourth quarter of 2010. Increased interest expense attributable to new borrowings of Sunoco Logistics Partners L.P. and SunCoke Energy, Inc. was partially offset by higher interest income.

INCOME TAXES

Excluding the impact of special items, the tax benefit on the $48 million pretax loss attributable to Sunoco, Inc. shareholders for the fourth quarter of 2011 was $53 million compared to a tax benefit of $17 million on a pretax loss of $4 million during the fourth quarter of 2010. The increase in the tax benefit was largely the result of higher tax credits in the 2011 fourth quarter under the effective tax rate method as the fourth quarter represented a higher percentage of full year results in 2011 as compared to 2010. The higher pretax loss in 2011 also resulted in a higher tax benefit. Both periods included adjustments to the respective tax benefit as a result of the reconciliation of the prior year tax provisions to the tax returns filed.

SPECIAL ITEMS

During the fourth quarter of 2011, Sunoco recorded a $387 million noncash provision ($230 million after tax) to write down assets at the Philadelphia and Marcus Hook refineries to their estimated fair values and recorded provisions for severance, contract terminations and idling expenses of $243 million ($144 million after tax); recognized a $21 million gain ($12 million after tax) largely attributable to the liquidation of a portion of the refined product LIFO inventories related to the idling of the Marcus Hook refinery; recorded a $3 million net pretax loss ($1 million after tax) primarily related to prior divestments of its Toledo refinery and discontinued chemicals operations; and recorded a $4 million tax provision adjustment related to the March 2010 sale of the polypropylene chemicals business. The total net impact of special items during the fourth quarter of 2011 was a charge of $612 million ($367 million after tax).

During the fourth quarter of 2010, Sunoco recognized a $168 million gain ($100 million after tax) from the liquidation of crude oil and refined product LIFO inventories primarily resulting from the permanent shutdown of the Eagle Point Refinery in the fourth quarter of 2009; recorded a $24 million provision ($14 million after tax) primarily for additional asset write-downs attributable to a decline in the fair market value of certain assets of the Eagle Point refinery; and recorded a $21 million provision ($12 million after tax) for pension settlement losses and accruals for employee terminations and related costs in connection with ongoing business improvement initiatives. The total net impact of special items during the fourth quarter of 2010 was income of $123 million ($74 million after tax).

Sunoco is a leading logistics and retail company. The company owns the general partner interest of Sunoco Logistics Partners L.P. (NYSE: SXL), which consists of a 2-percent ownership interest and incentive distribution rights, and owns a 32 percent interest in the Partnership’s limited partner units. Sunoco Logistics Partners L.P. is an owner and operator of complementary pipeline, terminal and crude oil acquisition and marketing assets. Sunoco also has a network of approximately 4,900 retail locations in 23 states.

 

3

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Those statements made in this release that are not historical facts are forward-looking statements intended to be covered by the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based upon assumptions by the Company concerning future conditions, any or all of which ultimately may prove to be inaccurate, and upon the current knowledge, beliefs and expectations of Company management. These forward-looking statements are not guarantees of future performance. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company expressly disclaims any obligation to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

Forward-looking statements are inherently uncertain and involve significant known and unknown risks and uncertainties (many of which are beyond the control of the Company) that could cause actual results to differ materially from those discussed in this release.

Such risks and uncertainties include economic, business, competitive and/or regulatory factors affecting the Company’s business, as well as uncertainties related to the outcomes of pending or future litigation, legislation, or regulatory actions. Among such risks are: changes in crude oil or natural gas prices, refining, marketing and chemicals margins, or other market conditions affecting the oil and gas industry; higher-than-expected costs of, or delays in, planned development or completion of repair projects, capital projects, acquisitions, or dispositions; operational interruptions, unforeseen technical difficulties and/or changes in technical or operating conditions; general domestic and international economic and political conditions, wars and acts of terrorism or sabotage; the outcome of commercial negotiations; the actions of competitors or regulators; the competitiveness of alternate-energy sources or product substitutes; technological developments; liability resulting from pending or future litigation; significant investment or product changes and/or liability for remedial actions or assessments under existing or future environmental regulations; gains and losses related to the acquisition, disposition or impairment of assets; recapitalizations; access to, or significantly higher costs of, capital; the effects of changes in accounting rules applicable to the Company; and changes in tax, environmental and other laws and regulations applicable to the Company’s businesses. Unpredictable or unknown factors not discussed in this release also could have material adverse effects on forward-looking statements.

In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Company has included in its Annual Report on Form 10-K for the year ended December 31, 2010 and in its subsequent Form 10-Q and Form 8-K filings, cautionary language identifying other important factors (though not necessarily all such factors) that could cause future outcomes to differ materially from those set forth in the forward-looking statements. For more information concerning these factors, see the Company’s Securities and Exchange Commission filings, available on the Company’s website at www.SunocoInc.com.

 

4

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SUNOCO, INC.

2011 FOURTH QUARTER AND TWELVE-MONTH FINANCIAL SUMMARY

(Millions of Dollars, Except Per-Share Amounts)

(Unaudited)

 

Fourth Quarter		2011				2010
Revenues		$	12,727			$	9,931
Net income (loss)		$	(320	)		$	118
Less: Net income attributable to noncontrolling interests			42				31
Net income (loss) attributable to Sunoco, Inc. shareholders		$	(362	)		$	87
Net income (loss) attributable to Sunoco, Inc. shareholders per share of common stock:
Basic		$	(3.39	)		$	0.72
Diluted		$	(3.39	)*		$	0.72
Weighted-average number of shares outstanding (in millions):
Basic			106.8				120.6
Diluted			106.8	*			121.0
Twelve Months
Revenues		$	46,916			$	36,400
Net income (loss)		$	(1,509	)		$	428
Less: Net income attributable to noncontrolling interests			175				194
Net income (loss) attributable to Sunoco, Inc. shareholders		$	(1,684	)		$	234
Net income (loss) attributable to Sunoco, Inc. shareholders per share of common stock:
Basic		$	(14.55	)		$	1.95
Diluted		$	(14.55	)*		$	1.95
Weighted-average number of shares outstanding (in millions):
Basic			115.7				120.1
Diluted			115.7	*			120.3

 

*	Since the assumed issuance of common stock incentive awards would not have been dilutive, the diluted per share amounts are equal to the basic per share amounts.

 

5

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SUNOCO, INC.

EARNINGS PROFILE OF SUNOCO BUSINESSES

(Millions of Dollars, Except Per-Share Amounts)

(Unaudited)

 

		For the Three Months Ended
		December 31,								September 30,
		2011				2010				2011
Logistics		$	66			$	35			$	53
Retail Marketing			40				1				48
Refining and Supply			(117	)			(17	)			(17	)
Discontinued chemicals operations			3				6				1
Coke			9				25				24
Corporate and Other:
Corporate expenses			(17	)			(27	)			(23	)
Net financing expenses and other			(32	)			(27	)			(29	)
Pretax income (loss) attributable to Sunoco, Inc. shareholders before special items			(48	)			(4	)			57
Income tax benefit			(53	)			(17	)			(8	)
Income attributable to Sunoco, Inc. shareholders before special items			5				13				65
Special items:
Continuing operations			(611	)			123				(1,966	)
Discontinued operations			(1	)			—				32
Pretax income (loss) from special items			(612	)			123				(1,934	)
Income tax expense (benefit)			(245	)			49				(773	)
Income (loss) from special items			(367	)			74				(1,161	)
Net income (loss) attributable to Sunoco, Inc. shareholders		$	(362	)		$	87			$	(1,096	)
Earnings (loss) per share of common stock (diluted):
Income attributable to Sunoco, Inc. shareholders before special items		$	0.05			$	0.11			$	0.57
Income (loss) from special items			(3.44	)			0.61				(10.19	)
Net income (loss) attributable to Sunoco, Inc. shareholders		$	(3.39	)		$	0.72			$	(9.62	)

 

6

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SUNOCO, INC.

EARNINGS PROFILE OF SUNOCO BUSINESSES

(Millions of Dollars, Except Per-Share Amounts)

(Unaudited)

 

		For the Twelve Months Ended
		December 31,
		2011				2010
Logistics		$	204			$	132
Retail Marketing			169				176
Refining and Supply			(316	)			(19	)
Discontinued chemicals operations			1				56
Coke			62				176
Corporate and Other:
Corporate expenses			(80	)			(108	)
Net financing expenses and other			(101	)			(110	)
Pretax income (loss) attributable to Sunoco, Inc. shareholders before special items			(61	)			303
Income tax expense (benefit)			(58	)			88
Income (loss) attributable to Sunoco, Inc. shareholders before special items			(3	)			215
Special items:
Continuing operations			(2,533	)			118
Discontinued operations			(256	)			(169	)
Pretax loss from special items			(2,789	)			(51	)
Income tax benefit			(1,108	)			(70	)
Income (loss) from special items			(1,681	)			19
Net income (loss) attributable to Sunoco, Inc. shareholders		$	(1,684	)		$	234
Earnings (loss) per share of common stock (diluted):
Income (loss) attributable to Sunoco, Inc. shareholders before special items		$	(0.03	)		$	1.79
Income (loss) from special items			(14.52	)			0.16
Net income (loss) attributable to Sunoco, Inc. shareholders		$	(14.55	)		$	1.95

 

7

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SUNOCO, INC.

FINANCIAL AND OPERATING STATISTICS

(Unaudited)

 

		For the Three Months Ended												For the Twelve Months Ended
		December 31,								September 30,				December 31,
		2011				2010				2011				2011				2010
LOGISTICS
Pretax Income (Millions of Dollars)		$	66			$	35			$	53			$	204			$	132
Pipeline and Terminal Throughputs* (Thousands of Barrels Daily):
Unaffiliated Customers			2,806				2,352				3,033				2,758				2,037
Affiliated Customer			1,075				1,342				1,058				1,041				1,296
			3,881				3,694				4,091				3,799				3,333

 

*	Excludes joint-venture operations which are not consolidated.

 

		For the Three Months Ended												For the Twelve Months Ended
		December 31,								September 30,				December 31,
		2011				2010				2011				2011				2010
RETAIL MARKETING
Pretax Income (Millions of Dollars)		$	40			$	1			$	48			$	169			$	176
Retail Margin* (Per Barrel):
Gasoline		$	4.16			$	2.79			$	4.40			$	4.19			$	3.93
Middle Distillates		$	3.75			$	2.37			$	4.04			$	4.02			$	3.19
Sales (Thousands of Barrels Daily):
Gasoline			292.7				302.9				309.6				298.4				293.4
Middle Distillates			29.6				28.5				30.6				28.4				28.2
			322.3				331.4				340.2				326.8				321.6
Total Retail Gasoline Outlets, End of Period			4,933				4,921				4,933				4,933				4,921
Gasoline and Diesel Throughput per Company-Owned or Leased Outlet (MGal/Site/Month)			159				161				168				160				156
Convenience Stores:
Total Stores, End of Period			630				602				608				630				602
Merchandise Sales (M$/Store/Month)		$	93			$	92			$	105			$	92			$	96
Merchandise Margin (Company Operated) (% of Sales)			25	%			27	%			27	%			26	%			27	%

 

*	Retail sales price less related wholesale price and terminalling and transportation costs per barrel. The retail sales price is the weighted-average price received through the various branded marketing distribution channels.

 

8

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SUNOCO, INC.

FINANCIAL AND OPERATING STATISTICS

(Unaudited)

 

		For the Three Months Ended												For the Twelve Months Ended
		December 31,								September 30,				December 31,
		2011				2010				2011				2011				2010
REFINING AND SUPPLY
Pretax Loss (Millions of Dollars)		$	(117	)		$	(17	)		$	(17	)		$	(316	)		$	(19	)
Realized Wholesale Margin* (Per Barrel of Production Available for Sale)		$	1.13			$	4.77			$	4.89			$	3.39			$	5.04
Market Benchmark** (Per Barrel)		$	3.57			$	5.19			$	5.87			$	5.18			$	5.11
Crude Inputs as Percent of Crude Unit Rated Capacity***			81				85				90				82				87
Throughputs ***(Thousands of Barrels Daily):
Crude Oil			407.4				571.8				452.7				436.2				588.8
Other Feedstocks			47.8				64.5				42.5				46.9				56.4
Total Throughputs			455.2				636.3				495.2				483.1				645.2
Products Manufactured ***(Thousands of Barrels Daily):
Gasoline			234.4				339.9				249.0				245.8				337.0
Middle Distillates			163.0				225.1				181.9				173.5				230.6
Residual Fuel			33.0				28.7				32.1				30.0				34.6
Petrochemicals			12.3				23.3				14.1				14.4				23.4
Other			30.7				48.1				35.8				38.1				48.5
Total Production			473.4				665.1				512.9				501.8				674.1
Less: Production Used as Fuel in Refinery Operations			22.0				31.2				25.9				23.9				31.3
Total Production Available for Sale			451.4				633.9				487.0				477.9				642.8

 

*	Wholesale sales revenue less related cost of crude oil, other feedstocks, product purchases and terminalling and transportation divided by production available for sale.

**

The refinery benchmark margin represents a 6-3-2-1 Value-Added Benchmark beginning March 1, 2011 as a result of the sale of the Toledo refinery. Prior to that date, the weighted-average refinery benchmark margin was comprised of a 6-3-2-1 Value-Added benchmark related to the Northeast refining operations (80% weight) and a 4-3-1 Benchmark related to the Toledo refinery (20% weight). Beginning with the second quarter of 2011, the 6-3-2-1 Value-Added Benchmark has been adjusted to reflect market conditions more closely associated with the Company’s Northeast refining system. The 6-3-2-1 benchmark component of prior period weighted-average benchmark margins has been restated for comparative purposes.

***	Includes 175 thousand barrels-per-day of capacity at the Marcus Hook refinery which has been indefinitely idled and reflects a 170 thousand barrels-per-day reduction attributable to the sale of the Toledo refinery in March 2011.

 

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SUNOCO, INC.

FINANCIAL AND OPERATING STATISTICS

(Unaudited)

 

		For the Three Months Ended												For the Twelve Months Ended
		December 31,								September 30,				December 31,
		2011				2010				2011				2011				2010
COKE
Pretax Income (Millions of Dollars)		$	9			$	25			$	24			$	62			$	176
Coke Production (Thousands of Tons):
United States			1,014				915				964				3,761				3,593
Brazil			293				370				373				1,442				1,636

 

		For the Three Months Ended												For the Twelve Months Ended
		December 31,								September 30,				December 31,
		2011				2010				2011				2011				2010
CAPITAL PROGRAM (Millions of Dollars)
Logistics*		$	89			$	69			$	348			$	592			$	426
Retail Marketing**			35				68				47				129				124
Refining and Supply			36				52				20				120				247
Discontinued chemicals operations			1				5				4				17				20
Coke***			53				83				57				284				223
		$	214			$	277			$	476			$	1,142			$	1,040

 

*	Includes acquisitions totaling $381 and $243 million, respectively, for the twelve months ended December 31, 2011 and 2010.

**	Includes acquisition of retail sites in the fourth quarter of 2010 totaling $25 million.

***	Includes acquisition of a coal business in the first quarter of 2011 totaling $38 million.

 

		For the Three Months Ended												For the Twelve Months  Ended
		December 31,								September 30,				December 31,
		2011				2010				2011				2011				2010
DEPRECIATION, DEPLETION AND AMORTIZATION (Millions of Dollars)*
Logistics		$	25			$	20			$	24			$	86			$	62
Retail Marketing			25				28				23				92				93
Refining and Supply			5				64				50				157				263
Coke			16				12				15				59				49
		$	71			$	124			$	112			$	394			$	467

 

*	Excludes amounts attributable to discontinued chemicals operations.

 

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SUNOCO, INC.

EARNINGS PROFILE OF SUNOCO BUSINESSES

(Millions of Dollars, Except Per-Share Amounts)

(Unaudited)

 

		2010
		1st				2nd				3rd				4th				Total
Logistics		$	27			$	30			$	40			$	35			$	132
Retail Marketing			34				73				68				1				176
Refining and Supply			(70	)			138				(70	)			(17	)			(19	)
Discontinued chemicals operations			38				7				5				6				56
Coke			51				56				44				25				176
Corporate and Other:
Corporate expenses			(23	)			(30	)			(28	)			(27	)			(108	)
Net financing expenses and other			(28	)			(27	)			(28	)			(27	)			(110	)
Pretax income (loss) attributable to Sunoco, Inc. shareholders before special items			29				247				31				(4	)			303
Income tax expense (benefit)			12				89				4				(17	)			88
Income attributable to Sunoco, Inc. shareholders before special items			17				158				27				13				215
Special items:
Continuing operations			(45	)			(22	)			62				123				118
Discontinued operations			(169	)			—				—				—				(169	)
Pretax income (loss) from special items			(214	)			(22	)			62				123				(51	)
Income tax expense (benefit)			(134	)			(9	)			24				49				(70	)
Income (loss) from special items			(80	)			(13	)			38				74				19
Net income (loss) attributable to Sunoco, Inc. shareholders		$	(63	)		$	145			$	65			$	87			$	234
Earnings (loss) per share of common stock (diluted):
Income attributable to Sunoco, Inc. shareholders before special items		$	0.14			$	1.31			$	0.22			$	0.11			$	1.79
Income (loss) from special items			(0.67	)			(0.11	)			0.32				0.61				0.16
Net income (loss) attributable to Sunoco, Inc. shareholders		$	(0.53	)		$	1.20			$	0.54			$	0.72			$	1.95

 

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SUNOCO, INC.

EARNINGS PROFILE OF SUNOCO BUSINESSES

(Millions of Dollars, Except Per-Share Amounts)

(Unaudited)

 

		2011
		1st				2nd				3rd				4th				Total
Logistics		$	31			$	54			$	53			$	66			$	204
Retail Marketing			12				69				48				40				169
Refining and Supply			(138	)			(44	)			(17	)			(117	)			(316	)
Discontinued chemicals operations			(9	)			6				1				3				1
Coke			9				20				24				9				62
Corporate and Other:
Corporate expenses			(22	)			(18	)			(23	)			(17	)			(80	)
Net financing expenses and other			(24	)			(16	)			(29	)			(32	)			(101	)
Pretax income (loss) attributable to Sunoco, Inc. shareholders before special items			(141	)			71				57				(48	)			(61	)
Income tax expense (benefit)			(19	)			22				(8	)			(53	)			(58	)
Income (loss) attributable to Sunoco, Inc. shareholders before special items			(122	)			49				65				5				(3	)
Special items:
Continuing operations			51				(7	)			(1,966	)			(611	)			(2,533	)
Discontinued operations			—				(287	)			32				(1	)			(256	)
Pretax income (loss) from special items			51				(294	)			(1,934	)			(612	)			(2,789	)
Income tax expense (benefit)			30				(120	)			(773	)			(245	)			(1,108	)
Income (loss) from special items			21				(174	)			(1,161	)			(367	)			(1,681	)
Net loss attributable to Sunoco, Inc. shareholders		$	(101	)		$	(125	)		$	(1,096	)		$	(362	)		$	(1,684	)
Earnings (loss) per share of common stock (diluted):
Income (loss) attributable to Sunoco, Inc. shareholders before special items		$	(1.01	)		$	0.40			$	0.57			$	0.05			$	(0.03	)
Income (loss) from special items			0.17				(1.43	)			(10.19	)			(3.44	)			(14.52	)
Net loss attributable to Sunoco, Inc. shareholders		$	(0.84	)		$	(1.03	)		$	(9.62	)		$	(3.39	)		$	(14.55	)

 

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SUNOCO, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Millions of Dollars)

(Unaudited)

 

		2010
		1st				2nd				3rd				4th				Total
Revenues
Sales and other operating revenue (including consumer excise taxes)		$	7,917			$	9,294			$	9,058			$	9,906			$	36,175
Interest income			—				1				3				1				5
Gain on remeasurement of pipeline equity interests			—				—				128				—				128
Other income, net			26				13				29				24				92
			7,943				9,308				9,218				9,931				36,400
Costs and Expenses
Cost of products sold and operating expenses			7,079				8,090				8,055				8,787				32,011
Consumer excise taxes			530				608				616				594				2,348
Selling, general and administrative expenses			142				163				157				178				640
Depreciation, depletion and amortization			107				115				121				124				467
Payroll, property and other taxes			33				24				36				20				113
Provision for asset write-downs and other matters			45				22				(3	)			45				109
Interest cost and debt expense			39				40				43				42				164
Interest capitalized			(3	)			(3	)			(4	)			(5	)			(15	)
			7,972				9,059				9,021				9,785				35,837
Income (loss) from continuing operations before income tax expense (benefit)			(29	)			249				197				146				563
Income tax expense (benefit)			(20	)			78				28				32				118
Income (loss) from continuing operations			(9	)			171				169				114				445
Income (loss) from discontinued operations, net of income taxes			(29	)			5				3				4				(17	)
Net income (loss)			(38	)			176				172				118				428
Less: Net income attributable to noncontrolling interests			25				31				107				31				194
Net income (loss) attributable to Sunoco, Inc. shareholders		$	(63	)		$	145			$	65			$	87			$	234

 

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SUNOCO, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Millions of Dollars)

(Unaudited)

 

		2011
		1st				2nd				3rd				4th				Total
Revenues
Sales and other operating revenue (including consumer excise taxes)		$	10,308			$	11,670			$	12,145			$	12,701			$	46,824
Interest income			4				8				5				6				23
Gain on remeasurement of pipeline equity interests			—				9				—				—				9
Other income, net			24				8				8				20				60
			10,336				11,695				12,158				12,727				46,916
Costs and Expenses
Cost of products sold and operating expenses			9,522				10,693				11,098				11,817				43,130
Consumer excise taxes			547				553				583				563				2,246
Selling, general and administrative expenses			140				166				173				166				645
Depreciation, depletion and amortization			105				106				112				71				394
Payroll, property and other taxes			36				23				25				20				104
Provision for asset write-downs and other matters			6				7				1,964				652				2,629
Interest cost and debt expense			43				39				56				60				198
Interest capitalized			(6	)			(6	)			(8	)			(6	)			(26	)
			10,393				11,581				14,003				13,343				49,320
Income (loss) from continuing operations before income tax expense (benefit)			(57	)			114				(1,845	)			(616	)			(2,404	)
Income tax expense (benefit)			18				17				(787	)			(299	)			(1,051	)
Income (loss) from continuing operations			(75	)			97				(1,058	)			(317	)			(1,353	)
Income (loss) from discontinued operations, net of income taxes			(5	)			(168	)			20				(3	)			(156	)
Net loss			(80	)			(71	)			(1,038	)			(320	)			(1,509	)
Less: Net income attributable to noncontrolling interests			21				54				58				42				175
Net loss attributable to Sunoco, Inc. shareholders		$	(101	)		$	(125	)		$	(1,096	)		$	(362	)		$	(1,684	)

 

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SUNOCO, INC.

CONSOLIDATED BALANCE SHEETS

(Millions of Dollars)

(Unaudited)

 

		At December 31,
		2011				2010
Assets
Cash and cash equivalents		$	2,064			$	1,485
Accounts and notes receivable, net			3,071				2,679
Inventories			587				404
Deferred income taxes			286				129
Assets held for sale			—				1,029
Total current assets			6,008				5,726
Investments and long-term receivables			158				160
Note receivable from sale of Toledo refinery			182				—
Properties, plants and equipment, net			4,965				7,055
Deferred income taxes			68				—
Deferred charges and other assets			601				356
Total assets		$	11,982			$	13,297
Liabilities and Equity
Accounts payable		$	4,098			$	3,912
Accrued liabilities			741				554
Short-term borrowings			103				115
Current portion of long-term debt			282				178
Taxes payable			146				170
Total current liabilities			5,370				4,929
Long-term debt			3,159				2,136
Retirement benefit liabilities			542				481
Deferred income taxes			544				1,390
Other deferred credits and liabilities			567				562
Total liabilities			10,182				9,498
Equity
Sunoco, Inc. shareholders’ equity			893				3,046
Noncontrolling interests			907				753
Total equity			1,800				3,799
Total liabilities and equity		$	11,982			$	13,297

 

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SUNOCO, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Millions of Dollars)

(Unaudited)

 

		For the Twelve Months Ended December 31,
		2011				2010
Cash Flows from Operating Activities:
Net income (loss)		$	(1,509	)		$	428
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
(Gain) loss on divestment of discontinued chemicals operations			(13	)			169
Gain on remeasurement of pipeline equity interests			(9	)			(128	)
Provision for asset write-downs and other matters			2,898				109
Depreciation, depletion and amortization			410				497
Deferred income tax expense (benefit)			(1,165	)			110
Payments in excess of expense for retirement plans*			(8	)			(130	)
Changes in working capital pertaining to operating activities:
Accounts and notes receivable			(392	)			(390	)
Inventories			(212	)			82
Accounts payable and accrued liabilities			178				641
Income tax refund receivable and taxes payable			(35	)			294
Other			(6	)			12
Net cash provided by operating activities			137				1,694
Cash Flows from Investing Activities:
Capital expenditures			(723	)			(772	)
Acquisitions			(419	)			(268	)
Proceeds from divestments:
Discontinued chemicals operations			181				348
Toledo refinery and related inventory			855				—
Other divestments			21				50
Other			(13	)			(5	)
Net cash used in investing activities			(98	)			(647	)
Cash Flows from Financing Activities:
Net repayments of short-term borrowings			(12	)			(282	)
Net borrowings from money market notes			213				—
Expenses related to SunCoke Energy, Inc. initial public offering			(21	)			—
Net proceeds from issuance of long-term debt			1,834				1,144
Repayments of long-term debt			(741	)			(894	)
Net proceeds from sale/issuance of Sunoco Logistics Partners L.P. limited partnership units			—				289
Purchase of noncontrolling interest in Indiana Harbor cokemaking operations			(34	)			—
Cash distributions to noncontrolling interests			(122	)			(123	)
Cash dividend payments			(71	)			(73	)
Purchase of common stock for treasury			(500	)			—
Other			(6	)			—
Net cash provided by financing activities			540				61
Net increase in cash and cash equivalents			579				1,108
Cash and cash equivalents at beginning of period			1,485				377
Cash and cash equivalents at end of period		$	2,064			$	1,485

 

*	Payments for the year ended December 31, 2010 exclude 3.59 million shares of Sunoco common stock valued at $90 million that were contributed to the Company’s defined benefit plans in February 2010.

 

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