Snapple 2010 Annual Report Download - page 61

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Net Cash Provided by Operating Activities
Net cash provided by operating activities increased $1,670 million for the year ended December 31, 2010, compared with the
year ended December 31, 2009. The $1,665 million increase in net operating assets was primarily due to the receipt of separate
one-time nonrefundable cash payments of $900 million from PepsiCo and $715 million from Coca-Cola, both recorded as deferred
revenue.
Net cash provided by operating activities increased $156 million for the year ended December 31, 2009, compared with the
year ended December 31, 2008. The $867 million increase in net income included a $1,039 million decrease in the non-cash
impairment of goodwill and intangible assets, a $62 million increase in the gain on the disposal of intangible assets primarily due
to a one-time gain recorded in 2009 upon the termination of the Hansen distribution agreement and an increase of $344 million
in deferred income taxes driven by the impairment of intangible assets in 2008. Changes in working capital included an $80 million
favorable increase in accounts payable and accrued expenses offset by a decrease of $50 million in other non-current liabilities.
Accounts payable and accrued expenses increased primarily due to higher accruals for customer promotion and employee
compensation, increased inventory purchases and improved cash management. Other non-current liabilities decreased primarily
due to payments associated with the Company’s pension and postretirement employee benefit plans.
Net Cash (Used In) Provided by Investing Activities
The decrease of $26 million in cash used in investing activities for the year ended December 31, 2010, compared with the
year ended December 31, 2009, was primarily attributable to lower capital expenditures of $71 million and higher proceeds of
$13 million from disposal of property, plant and equipment in 2010, partially offset by the absence of the one-time cash receipts
in 2009 of $68 million primarily from the termination of certain distribution agreements.
The decrease of $1,325 million in cash provided by investing activities for the year ended December 31, 2009, compared with
the year ended December 31, 2008, was primarily attributable to related party notes receivable due to the separation from Cadbury
during 2008. For 2008, cash provided by net repayments of related party notes receivable of $1,375 million for 2008. We increased
capital expenditures by $13 million in the current year, primarily due to the build out of the new manufacturing and distribution
center in Victorville, California. Capital asset investments for both years primarily consisted of expansion of our capabilities in
existing facilities, replacement of existing cold drink equipment, IT investments for new systems, and upgrades to the vehicle
fleet. Additionally, cash used in investing activities for 2009 included $68 million in proceeds primarily from the termination of
Hansen’s distributor agreement.
Net Cash Used In Financing Activities
2010
Net cash flow used in financing activities for the year ended December 31, 2010 primarily consisted of common stock
repurchases of $1,113 million, the $573 million aggregate principal and premium payment made to holders of the 2018 Notes, the
$405 million repayment of the Revolver included in our senior unsecured credit facility, and dividend payments of $194 million.
On December 1, 2010, we announced a tender offer to repurchase up to $600 million of our outstanding 2018 Notes. On
December 29, 2010, we completed a tender offer and retired at a premium approximately $476 million of aggregate principal of
the 2018 Notes.
2009
Net cash flow used in financing activities for the year ended December 31, 2009 consisted primarily of net debt repayments
of $550 million.
On December 21, 2009, we completed the issuance of $850 million aggregate principal amount of senior unsecured notes
consisting of the 2011 and 2012 Notes due December 21, 2011 and December 21, 2012, respectively.
On December 30, 2009, we borrowed $405 million from the Revolver.
On December 31, 2009, we fully repaid the principal balance on the Term Loan A prior to its maturity.
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