Snapple 2008 Annual Report Download - page 141

26. Subsequent Events
Hansen Natural Distribution Agreement Termination
In October 2008, Hansen Natural notified the Company that they were terminating the agreements to distribute
Monster Energy as well as other Hansen’s beverage brands drinks in the United States effective December 11, 2008.
Pursuant to the terms of the agreements, DPS received a payment of approximately $48 million in relation to the
termination in February 2009. In December 2008, Hansen notified the Company that they were terminating the
agreement to distribute Monster Energy drinks in Mexico, effective January 26, 2009. Pursuant to the terms of the
agreement, in March 2009 the Company entered into a settlement agreement to receive approximately $5 million in
relation to the termination.
27. Selected Quarterly Financial Data (unaudited)
The following table summarizes the Company’s information on net sales, gross profit, net income and earnings
per share by quarter for the years ended December 31, 2008 and 2007. This data was derived from the Company’s
unaudited consolidated financial statements.
For periods prior to May 7, 2008, DPS’ financial data has been prepared on a “carve-out” basis from Cadbury’s
consolidated financial statements using the historical results of operations, assets and liabilities attributable to
Cadbury’s Americas Beverages business and including allocations of expenses from Cadbury. The historical
Cadbury’s Americas Beverages information is the Company’s predecessor financial information. The results
included below are not necessarily indicative of DPS’ future performance and may not reflect the Company’s
financial performance had the Company been an independent, publicly-traded company.
For the Year Ended December 31,
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
(In millions, except per share data)
2008
Net Sales ...................................... $1,295 $1,545 $1,494 $1,376
Gross profit .................................... 730 851 785 754
Net income..................................... 95 108 106 (621)
Basic earnings (loss) per common share(1) ............. $ 0.38 $ 0.42 $ 0.41 $ (2.44)
Diluted earnings (loss) per common share(1) ............ $ 0.38 $ 0.42 $ 0.41 $ (2.44)
2007
Net Sales ...................................... $1,257 $1,529 $1,521 $1,388
Gross profit .................................... 697 850 816 768
Net income..................................... 69 136 154 138
Basic earnings per common share(1) .................. $ 0.27 $ 0.54 $ 0.61 $ 0.54
Diluted earnings per common share(1)................. $ 0.27 $ 0.54 $ 0.61 $ 0.54
(1) In connection with the separation from Cadbury on May 7, 2008, DPS distributed to Cadbury shareholders the
common stock of DPS. On the date of the distribution 253.7 million shares of common stock were issued. As a
result, on May 7, 2008, the Company had 253.7 million shares of common stock outstanding and this share
amount is being utilized for the calculation of basic earnings per common share for all periods presented prior to
the date of the Distribution. The same number of shares is being used for diluted earnings per common share as
for basic earnings per common share as no common stock of DPS was traded prior to May 7, 2008, and no DPS
equity awards were outstanding for the prior periods.
Subsequent to the issuance of the Company’s unaudited interim Condensed Consolidated Financial Statements
for the periods ended September 30, June 30, and March 31, 2008, the Company identified an error in the
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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)