Snapple 2010 Annual Report Download - page 49

Download and view the complete annual report

Please find page 49 of the 2010 Snapple annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 148

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148

Provision for Income Taxes
The effective tax rates for 2010 and 2009 were 35.8% and 36.3%, respectively. The most significant factor affecting this
comparison of the effective tax rate between the periods was a favorable change of Mexican law, which allowed DPS to release
in 2010 $14 million of tax accrued in 2009 when the law was enacted. The decrease associated with the change of Mexican law
was partially offset by increased state tax rates, which increased our deferred tax liabilities. Adjustments made to deferred tax,
including the adjustment to deferred tax related to a Canadian change of law recognized and disclosed in the quarter ended
March 31, 2010, were not a significant driver for the reduction in the effective tax rate from 2009.
Results of Operations by Segment
We report our business in three segments: Beverage Concentrates, Packaged Beverages and Latin America Beverages. The
key financial measures management uses to assess the performance of our segments are net sales and SOP. The following tables
set forth net sales and SOP for our segments for 2010 and 2009, as well as the adjustments necessary to reconcile our total segment
results to our consolidated results presented in accordance with U.S. GAAP (dollars in millions).
Net sales
Beverage Concentrates
Packaged Beverages
Latin America Beverages
Net sales
For the Year Ended
December 31,
2010
$ 1,156
4,098
382
$ 5,636
2009
$ 1,063
4,111
357
$ 5,531
SOP
Beverage Concentrates
Packaged Beverages
Latin America Beverages
Total SOP
Unallocated corporate costs
Other operating expense (income), net
Income from operations
Interest expense, net
Loss on early extinguishment of debt
Other income, net
Income before provision for income taxes and equity in earnings of unconsolidated
subsidiaries
For the Year Ended
December 31,
2010
$ 745
536
40
1,321
288
8
1,025
125
100
(21)
$ 821
2009
$ 683
573
54
1,310
265
(40)
1,085
239
—
(22)
$ 868
29