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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The following table presents the impact of derivative instruments not designated as hedging instruments under U.S. GAAP
to the Consolidated Statements of Operations for the years ended December 31, 2010 and 2009 (in millions):
For the year ended December 31, 2010:
Interest rate swap contracts
Treasury lock contracts
Commodity futures
Commodity futures
Total
For the year ended December 31, 2009:
Commodity futures
Commodity futures
Total
Amount of Gain
(Loss)
Recognized in
Income
$6
1
(2)
2
$7
$5
2
$7
Location of Gain (Loss)
Recognized in Income
Interest expense
Interest expense
Cost of sales
Selling, general and administrative
Cost of sales
Selling, general and administrative
See Note 14 or more information on the valuation of derivative instruments. The Company has exposure to credit losses from
derivative instruments in an asset position in the event of nonperformance by the counterparties to the agreements. Historically,
DPS has not experienced credit losses as a result of counterparty nonperformance. The Company selects and periodically reviews
counterparties based on credit ratings, limits its exposure to a single counterparty under defined guidelines, and monitors the
market position of the programs at least on a quarterly basis.
11. Other Non-Current Assets and Other Non-Current Liabilities
Other non-current assets consisted of the following as of December 31, 2010 and 2009 (in millions):
Long-term receivables from Kraft
Deferred financing costs, net
Customer incentive programs
Other
Other non-current assets
December 31,
2010
$ 419
15
84
34
$ 552
December 31,
2009
$ 402
23
84
34
$ 543
Other non-current liabilities consisted of the following as of December 31, 2010 and 2009 (in millions):
Long-term payables due to Kraft
Liabilities for unrecognized tax benefits, related interest and penalties
Long-term pension and postretirement liability
Insurance reserve
Other
Other non-current liabilities
December 31,
2010
$ 112
561
19
51
34
$ 777
December 31,
2009
$ 115
534
49
—
39
$ 737
80