Snapple 2008 Annual Report Download - page 88

The stock-based compensation plans in which the Company’s employees participate are described further in
Note 16.
Restructuring Costs
The Company periodically records facility closing and reorganization charges when a facility for closure or
other reorganization opportunity has been identified, a closure plan has been developed and the affected employees
notified, all in accordance with SFAS No. 146, Accounting for Costs Associated with Exit or Disposal Activities
(“SFAS 146”). Refer to Note 14 for additional information.
Foreign Currency Translation
The functional currency of the Company’s operations outside the United States is generally the local currency
of the country where the operations are located. The balance sheets of operations outside the United States are
translated into U.S. Dollars at the end of year rates. The results of operations for the fiscal year are translated into
U.S. Dollars at an annual average rate, calculated using month end exchange rates.
The following table sets forth exchange rate information for the periods and currencies indicated:
Mexican Peso to U.S. Dollar Exchange Rate End of Year Rates Annual Average Rates
2008 .......................................... 13.67 11.07
2007 .......................................... 10.91 10.91
2006 .......................................... 10.79 10.86
Canadian Dollar to U.S. Dollar Exchange Rate End of Year Rates Annual Average Rates
2008 .......................................... 1.22 1.06
2007 .......................................... 1.00 1.07
2006 .......................................... 1.17 1.13
Differences on exchange arising from the translation of opening balances sheets of these entities to the rate
ruling at the end of the financial year are recognized in accumulated other comprehensive income. The exchange
differences arising from the translation of foreign results from the average rate to the closing rate are also
recognized in accumulated other comprehensive income. Such translation differences are recognized as income or
expense in the period in which the Company disposes of the operations.
Transactions in foreign currencies are recorded at the approximate rate of exchange at the transaction date.
Assets and liabilities resulting from these transactions are translated at the rate of exchange in effect at the balance
sheet date. All such differences are recorded in results of operations and amounted to $11 million, less than
$1 million and $5 million in 2008, 2007 and 2006, respectively.
Recently Issued Accounting Standards
In December 2008, the Financial Accounting Standards Board (“FASB”) issued FASB Staff Position (“FSP”)
No. 132(R)-1, Employers’ Disclosures about Pensions and Other Postretirement Benefits (“FSP 132R-1”).
FSP 132R-1 requires enhanced disclosures about the plan assets of a Company’s defined benefit pension and
other postretirement plans intended to provide users of financial statements with a greater understanding of: (1) how
investment allocation decisions are made, including the factors that are pertinent to an understanding of investment
policies and strategies; (2) the major categories of plan assets; (3) the inputs and valuation techniques used to
measure the fair value of plan assets; (4) the effect of fair value measurements using significant unobservable inputs
(Level 3) on changes in plan assets for the period; and (5) significant concentrations of risk within plan assets.
FSP 132R-1 is effective for years ending after December 15, 2009. The Company will provide the required
disclosures for all its filings for periods subsequent to the effective date.
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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)