Snapple 2008 Annual Report Download - page 125

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(1) The following detail represents the initial non-cash financing and investing activities in connection with the
Company’s separation from Cadbury for the year ended December 31, 2008 (in millions):
Tax reserve provided under FIN 48 as part of separation ............................ $(386)
Tax indemnification by Cadbury ............................................. 334
Deferred tax asset setup for Canada operations ................................... 177
Transfer of legal entities to Cadbury for Canada operations.......................... (165)
Liability to Cadbury related to Canada operations ................................. (132)
Transfers of pension obligation .............................................. (71)
Settlement of operating liabilities due to Cadbury, net.............................. 75
Other tax liabilities related to separation........................................ 28
Settlement of related party note receivable from Cadbury ......................... (7)
Transfer of legal entities to Cadbury for Mexico operations ........................ (3)
Total .............................................................. $(150)
22. Commitments and Contingencies
Lease Commitments
The Company has leases for certain facilities and equipment which expire at various dates through 2020.
Operating lease expense was $59 million, $46 million, and $39 million for the years ended December 31, 2008,
2007 and 2006, respectively, Future minimum lease payments under capital and operating leases with initial or
remaining noncancellable lease terms in excess of one year as of December 31, 2008 are as follows:
Operating Leases Capital Leases
2009 ............................................... $ 66 $ 4
2010 ............................................... 56 4
2011 ............................................... 41 5
2012 ............................................... 31 5
2013 ............................................... 27 5
Thereafter ........................................... 59 3
Total minimum lease payments .......................... $280 26
Less imputed interest at rates ranging from 6.25% to 12.6% . ..... (7)
Present value of minimum lease payments .................. $19
Of the $19 million in capital lease obligations above, $17 million is included in long-term debt payable to third
parties and $2 million is included in accounts payable and accrued expenses on the Consolidated Balance Sheet as
of December 31, 2008.
Legal Matters
The Company is occasionally subject to litigation or other legal proceedings. Set forth below is a description of
the Company’s significant pending legal matters. Although the estimated range of loss, if any, for the pending legal
matters described below cannot be estimated at this time, the Company does not believe that the outcome of these,
or any other, pending legal matters, individually or collectively, will have a material adverse effect on the business
or financial condition of the Company although such matters may have a material adverse effect on the Company’s
results of operations or cash flows in a particular period.
101
DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)