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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS
1. Business and Basis of Presentation
References in this Annual Report on Form 10-K to “we”, “our”, “us”, “DPS” or “the Company” refer to
Dr Pepper Snapple Group, Inc. and all entities included in our audited consolidated financial statements. Cadbury
plc and Cadbury Schweppes plc are hereafter collectively referred to as “Cadbury” unless otherwise indicated.
This Annual Report on Form 10-K refers to some of DPS’ owned or licensed trademarks, trade names and
service marks, which are referred to as the Company’s brands. All of the product names included in this Annual
Report on Form 10-K are either DPS’ registered trademarks or those of the Company’s licensors.
Nature of Operations
DPS is a leading integrated brand owner, bottler and distributor of non-alcoholic beverages in the United States,
Canada, and Mexico with a diverse portfolio of flavored (non-cola) carbonated soft drinks (“CSD”) and non-
carbonated beverages (“NCB”), including ready-to-drink teas, juices, juice drinks and mixers. The Company’s brand
portfolio includes popular CSD brands such as Dr Pepper, 7UP, Sunkist, A&W, Canada Dry, Schweppes, Squirt and
Peñafiel, and NCB brands such as Snapple, Mott’s, Hawaiian Punch, Clamato, Mr & Mrs T, Margaritaville and Rose’s.
Formation of the Company and Separation from Cadbury
On May 7, 2008, Cadbury separated the Americas Beverages business from its global confectionery business
by contributing the subsidiaries that operated its Americas Beverages business to DPS. In return for the transfer of
the Americas Beverages business, DPS distributed its common stock to Cadbury plc shareholders. As of the date of
distribution, a total of 800 million shares of common stock, par value $0.01 per share, and 15 million shares of
preferred stock, all of which shares of preferred stock are undesignated, were authorized. On the date of distribution,
253.7 million shares of common stock were issued and outstanding and no shares of preferred stock were issued. On
May 7, 2008, DPS became an independent publicly-traded company listed on the New York Stock Exchange under
the symbol “DPS”.
Dr Pepper Snapple Group, Inc. was formed on October 24, 2007, and did not have any operations prior to
ownership of Cadbury’s beverage business in the United States, Canada, Mexico and the Caribbean (“the Americas
Beverages business”).
Basis of Presentation
The accompanying consolidated financial statements have been prepared in accordance with accounting
principles generally accepted in the United States of America (“U.S. GAAP”) for consolidated financial infor-
mation and in accordance with the instructions to Form 10-K and Article 3A of Regulation S-X. In the opinion of
management, all adjustments, consisting principally of normal recurring adjustments, considered necessary for a
fair presentation have been included. The preparation of financial statements in conformity with U.S. GAAP
requires management to make estimates and assumptions that affect the amounts reported in the financial
statements and the accompanying notes. Actual results could differ from these estimates.
Upon separation, effective May 7, 2008, DPS became an independent company, which established a new
consolidated reporting structure. For the periods prior to May 7, 2008, the consolidated financial statements have
been prepared on a “carve-out” basis from Cadbury’s consolidated financial statements using 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 Company eliminates from its financial results all intercompany transactions between
entities included in the combination and the intercompany transactions with its equity method investees.
The consolidated financial statements may not be indicative of the Company’s future performance and may not
reflect what its consolidated results of operations, financial position and cash flows would have been had the
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