Snapple 2010 Annual Report Download - page 104

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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The following is a reconciliation of the changes in the gross balance of unrecognized tax benefits from January 1, 2008 to
December 31, 2010, (in millions):
Balance as of December 31, 2007
Tax position taken in current period:
Gross increases
Tax position taken in prior periods:
Gross increases
Gross decreases
Lapse of applicable statute of limitations
Balance as of December 31, 2008
Tax position taken in current period:
Gross increases
Tax position taken in prior periods:
Gross increases
Gross decreases
Settlements
Lapse of applicable statute of limitations
Balance as of December 31, 2009
Tax position taken in current period:
Gross increases
Tax position taken in prior periods:
Gross increases
Gross decreases
Lapse of applicable statute of limitations
Balance as of December 31, 2010
$98
396
23
(27)
(7)
483
5
21
(14)
(4)
(8)
483
3
18
(6)
(8)
$ 490
The gross balance of unrecognized tax benefits of $490 million excluded $45 million of offsetting state tax benefits and
timing adjustments. Depending on how associated issues are resolved, the net unrecognized tax benefits of $445 million, if
recognized, may reduce the effective income tax rate. It is reasonably possible that the unrecognized tax benefits will be
impacted by the resolution of some matters audited by various taxing authorities within the next twelve months, but a
reasonable estimate of such impact can not be made at this time.
The Company accrues interest and penalties on its uncertain tax positions as a component of its provision for income taxes.
The amount of interest and penalties recognized in the Consolidated Statements of Operations for uncertain tax positions was
$20 million, $19 million and $18 million for 2010, 2009 and 2008, respectively. The Company had a total of $71 million and
$51 million accrued for interest and penalties for its uncertain tax positions reported as part of other non-current liabilities as of
December 31, 2010 and 2009, respectively.
13. Restructuring Costs
The Company implements restructuring programs from time to time and incurs costs that are designed to improve operating
effectiveness and lower costs. When the Company implements these programs, it incurs various charges, including severance and
other employment related costs.
84