SUN » Topics » Interest Rate Risk

This excerpt taken from the SUN 10-K filed Feb 24, 2010.

Interest Rate Risk

Sunoco has market risk exposure for changes in interest rates relating to its outstanding borrowings. Sunoco manages this exposure to changing interest rates through the use of a combination of fixed- and floating-rate debt. At December 31, 2009, the Company had $1,798 million of fixed-rate debt and $666 million of floating-

 

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rate debt. A hypothetical one-percentage point decrease in interest rates would increase the fair value of the Company’s fixed-rate borrowings at December 31, 2009 by approximately $80 million. However, such change in interest rates would not have a material impact on income or cash flows as the majority of the outstanding borrowings consisted of fixed-rate instruments. Sunoco also has market risk exposure for changes in interest rates relating to its retirement benefit plans (see “Critical Accounting Policies—Retirement Benefit Liabilities” below). Sunoco generally does not use derivatives to manage its market risk exposure to changing interest rates.

This excerpt taken from the SUN 10-K filed Feb 25, 2009.

Interest Rate Risk

Sunoco has market risk exposure for changes in interest rates relating to its outstanding borrowings. Sunoco manages this exposure to changing interest rates through the use of a combination of fixed- and floating-rate debt. At December 31, 2008, the Company had $1,517 million of fixed-rate debt and $646 million of floating-rate debt. A hypothetical one-percentage point decrease in interest rates would increase the fair value of the Company’s fixed-rate borrowings at December 31, 2008 by approximately $65 million. However, such change in interest rates would not have a material impact on income or cash flows as the majority of the outstanding borrowings consisted of fixed-rate instruments. Sunoco also has market risk exposure for changes in interest rates relating to its retirement benefit plans (see “Critical Accounting Policies—Retirement Benefit Liabilities” below). Sunoco generally does not use derivatives to manage its market risk exposure to changing interest rates.

 

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This excerpt taken from the SUN 10-K filed Feb 27, 2008.

Interest Rate Risk

 

Sunoco has market risk exposure for changes in interest rates relating to its outstanding borrowings. Sunoco manages this exposure to changing interest rates through the use of a combination of fixed- and floating-rate debt. At December 31, 2007, the Company had $1,522 million of fixed-rate debt and $206 million of floating-rate debt. A hypothetical one-percentage point decrease in interest rates would increase the fair value of the Company’s fixed-rate borrowings at December 31, 2007 by approximately $80 million. However, such change in interest rates would not have a material impact on income or cash flows as the majority of the outstanding borrowings consisted of fixed-rate instruments. Sunoco also has market risk exposure for changes in interest rates relating to its retirement benefit plans (see “Critical Accounting Policies—Retirement Benefit Liabilities” below). Sunoco generally does not use derivatives to manage its market risk exposure to changing interest rates.

 

This excerpt taken from the SUN 10-K filed Feb 26, 2007.

Interest Rate Risk

 

Sunoco has market risk exposure for changes in interest rates relating to its outstanding borrowings. Sunoco manages this exposure to changing interest rates through the use of a combination of fixed- and floating-rate debt. Sunoco also has market risk exposure relating to its cash and cash equivalents. At December 31, 2006, the Company had $1,529 million of fixed-rate debt, $458 million of floating-rate debt and $263 million of cash and cash equivalents. The unfavorable impact of a hypothetical 1 percent increase in interest rates on its floating-rate debt would be partially offset by the favorable impact of such an increase on the cash and cash equivalents. Sunoco also has market risk exposure for changes in interest rates relating to its retirement benefit plans (see “Critical Accounting Policies—Retirement Benefit Liabilities” below). Sunoco generally does not use derivatives to manage its market risk exposure to changing interest rates.

 

This excerpt taken from the SUN 10-K filed Mar 3, 2006.

Interest Rate Risk

 

Sunoco has market risk exposure for changes in interest rates relating to its outstanding borrowings. Sunoco manages this exposure to changing interest rates through the use of a combination of fixed- and floating-rate debt. Sunoco also has market risk exposure relating to its cash and cash equivalents. At December 31, 2005, the Company had $1,081 million of fixed-rate debt, $330 million of floating-rate debt and $919 million of cash and cash equivalents. The unfavorable impact of a hypothetical 1 percent decrease in interest rates on its cash and cash equivalents would be partially offset by the favorable impact of such a decrease on the floating-rate debt. Sunoco also has market risk exposure for changes in interest rates relating to its retirement benefit plans (see “Critical Accounting Policies—Retirement Benefit Liabilities” below). Sunoco generally does not use derivatives to manage its market risk exposure to changing interest rates.

 

This excerpt taken from the SUN 10-K filed Mar 4, 2005.

Interest Rate Risk

 

Sunoco has market risk exposure for changes in interest rates relating to its outstanding borrowings. Sunoco manages this exposure to changing interest rates through the use of a combination of fixed and floating rate debt. Sunoco also has market risk exposure relating to its cash and cash equivalents. At December 31, 2004, the Company had $1,088 million of fixed-rate debt, $394 million of floating-rate debt and $405 million of cash and cash equivalents. The unfavorable impact of a hypothetical 1 percent increase in interest rates on the floating-rate debt would be essentially offset by the favorable impact of such an increase on its cash and cash equivalents. Sunoco also has market risk exposure for changes in interest rates relating to its retirement benefit plans (see “Critical Accounting Policies—Retirement Benefit Liabilities” below). Sunoco generally does not use derivatives to manage its market risk exposure to changing interest rates.

 

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