Snapple 2008 Annual Report Download - page 93

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unrecognized tax benefits that are subsequently realized. See Note 13 for further information regarding the tax
impact of the separation.
Items Impacting Equity
In connection with the Company’s separation from Cadbury, the following transactions were recorded as a
component of Cadbury’s net investment in DPS (in millions):
Contributions Distributions
Legal restructuring to purchase Canada operations from Cadbury ...... $ — $ (894)
Legal restructuring relating to Cadbury confectionery operations,
including debt repayment ................................. — (809)
Legal restructuring relating to Mexico operations .................. — (520)
Contributions from parent ................................... 318 —
Tax reserve provided under FIN 48 as part of separation, net of
indemnity ............................................. — (19)
Other .................................................. (59) —
Total ................................................. $259 $(2,242)
Prior to the May 7, 2008, separation date, the Company’s total invested equity represented Cadbury’s interest
in the recorded assets of DPS. In connection with the distribution of DPS’ stock to Cadbury plc shareholders on
May 7, 2008, Cadbury’s total invested equity was reclassified to reflect the post-separation capital structure of
$3 million par value of outstanding common stock and contributed capital of $3,133 million.
5. Acquisitions
On May 2, 2006, the Company acquired approximately 55% of the outstanding shares of DPSUBG, which,
combined with the Company’s pre-existing 45% ownership, resulted in the Company’s full ownership of DPSUBG.
DPSUBG’s principal operations are the bottling and distribution of beverages produced by the Company’s Beverage
Concentrates and Finished Goods segments and certain beverages produced by third parties, all in North America.
The Company acquired DPSUBG to strengthen the route-to-market of its North American beverage business.
The results of DPSUBG have been included in the individual line items within the Consolidated Statement of
Operations from May 2, 2006. Prior to this date, the existing investment in DPSUBG was accounted for by the
equity method. Refer to Note 8 for further information.
The following unaudited pro forma summary presents the results of operations as if the acquisition of
DPSUBG had occurred at the beginning of the fiscal year ended December 31, 2006 (dollars in millions, except per
share data). The pro forma information may not be indicative of future performance.
Net sales .............................................................. $5,408
Net income ............................................................ 500
Earnings per common share:
Basic ............................................................... $ 1.97
Diluted ............................................................. $ 1.97
The Company also acquired All American Bottling Company on June 9, 2006, Seven Up Bottling Company of
San Francisco on August 7, 2006 and Southeast-Atlantic Beverage Corporation (“SeaBev”) on July 11, 2007, to
further strengthen the route-to-market of DPS’ North American beverage business. Combined with DPSUBG, these
acquisitions comprise DPS’ Bottling Group segment.
69
DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)