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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
During the third quarter of 2009, a trustee-approved mass withdrawal under one multi-employer plan was triggered and the
trustee estimated the unfunded vested liability for the Company. As a result of this action, the Company recognized additional
expense of approximately $3 million for the year ended December 31, 2009.
Defined Contribution Plans
The Company sponsors the SIP, which is a qualified 401(k) Retirement Plan that covers substantially all U.S.-based
employees who meet certain eligibility requirements. This plan permits both pre-tax and after-tax contributions, which are
subject to limitations imposed by Internal Revenue Code (the “Code”) regulations. The Company matches employees’
contributions up to specified levels.
The Company also sponsors a supplemental savings plan (the “SSP”), which is a non-qualified defined contribution plan
for employees who are actively enrolled in the SIP and whose after-tax contributions under the SIP are limited by the Code
compensation limitations.
Additionally, current participants in the SIP and SSP are eligible for an enhanced defined contribution which vests after
three years of service with the Company. The EDC was adopted by the Company during the fourth quarter of 2006 and
contributions began accruing for plan participants effective January 1, 2008 after a one-year waiting period for participant entry
into the plan. The Company made contributions of $17 million and $12 million to the EDC for the each of the plan years ended
December 31, 2010 and 2009.
The Company’s employer matching contributions to the SIP and SSP plans were approximately $14 million in 2010, $14
million in 2009 and $13 million in 2008.
16. Stock-Based Compensation
Stock-Based Compensation
The components of stock-based compensation expense for the years ended December 31, 2010, 2009 and 2008, are presented
below (in millions):
Plans sponsored by Cadbury
DPS stock options and restricted stock units
Total stock-based compensation expense
Income tax benefit recognized in the income statement
Net stock-based compensation expense
For the Year Ended December 31,
2010
$—
29
29
(10)
$19
2009
$—
19
19
(7)
$12
2008
$3
6
9
(2)
$7
Description of Stock-Based Compensation Plans
Omnibus Stock Incentive Plan of 2009
During 2009, the Company adopted the Omnibus Stock Incentive Plan of 2009 (the “2009 Stock Plan”) under which employees,
consultants, and non-employee directors may be granted stock options, stock appreciation rights, stock awards, or restricted stock
units (“RSUs”). This plan provides for the issuance of up to 20,000,000 shares of the Company's common stock. Subsequent to
adoption, the Company's Compensation Committee granted RSUs, which vest after three years. Each RSU is to be settled for one
share of the Company's common stock on the respective vesting date of the RSU. No other types of stock-based awards have been
granted under the 2009 Stock Plan. Approximately 18,000,000 shares of the Company's common stock were available for future
grant at December 31, 2010.
97