Snapple 2010 Annual Report Download - page 124

DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Robert Jones v. Seven Up/RC Bottling Company of Southern California, Inc.
In 2007, one of the Company’s subsidiaries, Seven Up/RC Bottling Company Inc., was sued by Robert Jones in the
Superior Court in the State of California (Orange County), alleging that its subsidiary failed to provide meal and rest periods
and itemized wage statements in accordance with applicable California wage and hour law. The case was filed as a class action.
The parties have reached a tentative settlement in the case, pursuant to which the Company denied any liability or wrongdoing
and reserved all rights, but agreed to a compromise to end litigation and to pay $4.25 million, which amount was accrued as of
June 30, 2010. The settlement is subject to the satisfaction of the following conditions: (i) court approval and (ii) execution of
an acceptable settlement agreement.
Environmental, Health and Safety Matters
The Company operates many manufacturing, bottling and distribution facilities. In these and other aspects of the
Company’s business, it is subject to a variety of federal, state and local environment, health and safety laws and regulations.
The Company maintains environmental, health and safety policies and a quality, environmental, health and safety program
designed to ensure compliance with applicable laws and regulations. However, the nature of the Company’s business exposes it
to the risk of claims with respect to environmental, health and safety matters, and there can be no assurance that material costs
or liabilities will not be incurred in connection with such claims.
The federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA), also known as
the Superfund law, as well as similar state laws, generally impose joint and several liability for cleanup and enforcement costs
on current and former owners and operators of a site without regard to fault of the legality of the original conduct. DPS has
been notified that it is a potentially responsible party for study and cleanup costs at a Superfund site in New Jersey.
Investigation and remediation costs are yet to be determined, but the Company has reasonably estimated that DPS' allocation of
costs related to the study for this site is approximately $350,000.
21. Segments
The Company presents segment information in accordance with U.S. GAAP, which established reporting and disclosure
standards for an enterprise's operating segments. Operating segments are defined as components of an enterprise that are businesses,
for which separate financial information is available, and for which the financial information is regularly reviewed by the Company’s
leadership team.
As of December 31, 2010, the Company’s operating structure consisted of the following three operating segments:
• The Beverage Concentrates segment reflects sales of the Company’sbranded concentrates and syrup to third party bottlers
primarily in the U.S and Canada. Most of the brands in this segment are CSD brands.
• The Packaged Beverages segment reflects sales in the U.S. and Canada from the manufacture and distribution of finished
beverages and other products, including sales of the Company’s own brands and third party brands, through both DSD
and WD.
• The Latin America Beverages segment reflects sales in the Mexico and Caribbean markets from the manufacture and
distribution of concentrates, syrup and finished beverages.
Segment results are based on management reports. Net sales and SOP are the significant financial measures used to assess
the operating performance of the Company’s operating segments.
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