Snapple 2008 Annual Report Download - page 104

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The following is reconciliation of the changes in the gross balance of unrecognized tax benefits amounts
during 2008 (in millions):
Balance as of January 1, 2007 ................................................ $ 70
Tax position taken in current period:
Gross increases ....................................................... 30
Tax position taken in prior periods:
Gross increases ....................................................... 11
Gross decreases ....................................................... (9)
Settlements with taxing authorities — cash paid ................................. (4)
Balance as of December 31, 2007 ............................................. 98
Tax position taken in current period:
Gross increases ....................................................... 396
Tax position taken in prior periods:
Gross increases ....................................................... 23
Gross decreases ....................................................... (27)
Lapse of applicable statute of limitations ...................................... (7)
Balance as of December 31, 2008 ............................................. $483
The gross balance of unrecognized tax benefits of $483 million excluded $41 million of offsetting tax benefits.
The net unrecognized tax benefits of $442 million, if recognized, would benefit the effective income tax rate. It is
reasonably possible that the effective tax rate will be impacted by the resolution of some matters audited by various
taxing authorities within the next twelve months, but a reasonable estimate of such impact can not be made at this time.
The Company accrues interest and penalties on its uncertain tax positions as a component of its provision for
income taxes. The amount of interest and penalties recognized in the Statement of Operations for uncertain tax
positions was $18 million and ($2) million for 2008 and 2007, respectively. The Company had a total of $33 million
and $12 million accrued for interest and penalties for its uncertain tax positions as of December 31, 2008 and 2007,
respectively.
14. Restructuring Costs
The Company implements restructuring programs from time to time and incurs costs that are designed to
improve operating effectiveness and lower costs. When the Company implements these programs, it incurs various
charges, including severance and other employment related costs.
Restructuring charges incurred during the years ended December 31, 2008, 2007 and 2006 were as follows
(in millions):
2008 2007 2006
For the Year
Ended December 31,
Organizational restructuring ....................................... $39 $32 $—
Integration of the Bottling Group ................................... 10 21 18
Integration of technology facilities .................................. 7 4 —
Facility Closure ................................................ 1 6 —
Process outsourcing ............................................. — 6 —
Corporate restructuring .......................................... — 3 7
Other ....................................................... — 4 2
Total restructuring charges ...................................... $57 $76 $27
80
DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)