Snapple 2008 Annual Report Download - page 106

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charges for the years ended December 31, 2008, 2007 and 2006 and the cumulative costs to date by operating
segment (in millions). The Company does not expect to incur significant additional charges related to the
integration of the bottling group.
2008 2007 2006
Cumulative
Costs to
Date
Costs for the Year Ended
December 31,
Bottling Group..................................... $ 8 $12 $ 6 $26
Beverage Concentrates ............................... 2 9 6 17
Corporate ........................................ — — 6 6
Total .......................................... $10 $21 $18 $49
Integration of Technology Facilities
In 2007, the Company began a program to integrate its technology facilities. Charges for the integration of
technology facilities were $7 million for the year ended December 31, 2008, and $4 million for the year ended
December 31, 2007. The Company has incurred $11 million to date and does not expect to incur significant
additional charges related to the integration of technology facilities.
Facility Closure
The Company closed a facility related to the Finished Goods segment’s operations in 2007. Charges were
$1 million and $6 million for the years ended December 31, 2008 and 2007, respectively. The Company has
incurred $7 million to date and does not expect to incur significant additional charges related to the closure of the
facility.
Process Outsourcing
In 2007, the Company incurred $6 million in costs related to restructuring actions to outsource the activities of
Mexico and the Caribbean’s warehousing and distribution processes. The Company does not expect to incur
significant additional charges related to this program.
Corporate Restructuring
In 2005 and 2006, the Company initiated corporate organizational restructuring programs. Charges for these
restructuring programs were $3 million and $7 million for the year ended December 31, 2007 and 2006,
respectively. The Company does not expect to incur significant additional charges related to these programs.
15. Employee Benefit Plans
Pension and Postretirement Plans
The Company has U.S. and foreign pension and postretirement benefit plans which provide benefits to a
defined group of employees at the discretion of the Company. As of December 31, 2008, the Company had twelve
stand-alone non-contributory defined benefit plans and six stand-alone postretirement health care plans. Each plan
has a measurement date of December 31. To participate in the defined benefit plans, eligible employees must have
been employed by the Company for at least one year. The postretirement benefits are limited to qualified expenses
and are subject to deductibles, co-payment provisions, and lifetime maximum amounts on coverage. Employee
benefit plan obligations and expenses included in the consolidated financial statements are determined from
actuarial analyses based on plan assumptions, employee demographic data, including years of service and
compensation, benefits and claims paid and employer contributions. Additionally, the Company participates in
various multi-employer defined benefit plans.
82
DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)