Snapple 2008 Annual Report Download - page 131

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2008 2007
For the Year
Ended
December 31,
Property, plant and equipment — net
United States .................................................... $935 $796
International ..................................................... 55 72
Property, plant and equipment — net . ................................... $990 $868
Major Customers
In 2008 and 2007 the Company had one customer which accounted for 10% or more of total net sales, with
$639 million and $588 million of net sales for the year ended December 31, 2008 and 2007, respectively. These
sales were reported primarily in the Finished Goods and Bottling Group segments. No customers contributed 10%
or more of total net sales in 2006.
24. Related Party Transactions
Separation from Cadbury
Upon the Company’s separation from Cadbury, the Company settled outstanding receivable, debt and payable
balances with Cadbury except for amounts due under the Separation and Distribution Agreement, Transition
Services Agreement, Tax Indemnity Agreement, and Employee Matters Agreement. Post separation, there were no
expenses allocated to DPS from Cadbury. See Note 4 for information on the accounting for the separation from
Cadbury.
Allocated Expenses
Cadbury allocated certain costs to the Company, including costs for certain corporate functions provided for
the Company by Cadbury. These allocations were based on the most relevant allocation method for the services
provided. To the extent expenses were paid by Cadbury on behalf of the Company, they were allocated based upon
the direct costs incurred. Where specific identification of expenses was not practicable, the costs of such services
were allocated based upon the most relevant allocation method to the services provided, primarily either as a
percentage of net sales or headcount of the Company. The Company was allocated $6 million, $161 million and
$142 million for the years ended December 31, 2008, 2007 and 2006, respectively. Beginning January 1, 2008, the
Company directly incurred and recognized a significant portion of these costs, thereby reducing the amounts subject
to allocation through the methods described above.
Cash Management
Prior to separation, the Company’s cash was historically available for use and was regularly swept by Cadbury
operations in the United States at Cadbury’s discretion. Cadbury also funded the Company’s operating and investing
activities as needed. Transfers of cash, both to and from Cadbury’s cash management system, were reflected as a
component of Cadbury’s net investment in the Company’s Consolidated Balance Sheets. Post separation, the
Company has funded its liquidity needs from cash flow from operations.
Receivables
The Company held a note receivable balance with wholly-owned subsidiaries of Cadbury with outstanding
principal balances of $1,527 million as of December 31, 2007. The Company recorded $19 million, $57 million and
$25 million of interest income for the years ended December 31, 2008, 2007 and 2006, respectively.
107
DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)