Snapple 2008 Annual Report Download - page 133

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Transactions with Dr Pepper/Seven Up Bottling Group
Prior to the Company’s acquisition of the remaining shares of DPSUBG on May 2, 2006, the Company and
DPSUBG entered into various transactions in the ordinary course of business as outlined below:
Marketing support, co-packing fees and other arrangements
The Company assisted DPSUBG in a variety of marketing programs, local media advertising and other similar
arrangements to promote the sale of Company-branded products. DPSUBG charged the Company co-packing fees
related to the manufacture of certain Company-branded products. The Company paid DPSUBG marketing support,
co-packing fees and other fees totaling $41 million during 2006.
Sales of beverage concentrates
DPSUBG bought concentrates from the Company for the manufacture of DPS-branded soft drinks. DPS’
concentrates sales to DPSUBG totaled $100 million during 2006.
Sales of finished beverages
DPSUBG purchased finished beverages from the Company for sale to retailers. DPS’ finished beverage sales
totaled $16 million during 2006.
25. Guarantor and Non-Guarantor Financial Information
The Company’s 6.12% senior notes due 2013, 6.82% senior notes due 2018 and 7.45% senior notes due 2038
(the “notes”) are fully and unconditionally guaranteed by substantially all of the Company’s existing and future
direct and indirect domestic subsidiaries (except two immaterial subsidiaries associated with the Company’s
charitable foundations) (the “guarantors”), as defined in the indenture governing the notes. The guarantors are
wholly-owned either directly or indirectly by the Company and jointly and severally guarantee the Company’s
obligations under the notes. None of the Company’s subsidiaries organized outside of the United States guarantee
the notes.
The following schedules present the guarantor and non-guarantor information for the years ended Decem-
ber 31, 2008, 2007 and 2006 and as of December 31, 2008 and 2007. The consolidating schedules are provided in
accordance with the reporting requirements for guarantor subsidiaries.
On May 7, 2008, Cadbury plc transferred its Americas Beverages business to Dr Pepper Snapple Group, Inc.,
which became an independent publicly-traded company. Prior to the transfer, Dr Pepper Snapple Group, Inc. did not
have any operations. Accordingly, activity for Dr Pepper Snapple Group, Inc. (the “parent”) is reflected in the
consolidating statements from May 7, 2008 forward.
109
DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)