Snapple 2012 Annual Report Download - page 103

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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
85
Future estimated contributions for Local 710 and the Central States based on the number of covered employees and the terms
of the collective bargaining agreements are as follows (in millions):
Year Estimated
Contributions
2013 $ 3
2014 2
2015 1
DEFINED CONTRIBUTION PLANS
The Company sponsors the DPS’ Savings Incentive Plan (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.
The Company's employer matching contributions to the SIP and SSP plans were approximately $15 million in 2012 and $14
million in 2011 and 2010.
Additionally, current participants in the SIP and SSP are eligible for an enhanced defined contribution (the "EDC").
Contributions began accruing for plan participants after a one-year waiting period for participant entry into the plan, which vest
after three years of service with the Company. The Company made contributions of $16 million to the EDC for the each of the
plan years ended December 31, 2012 and 2011 and $17 million for the plan year ended December 31, 2010.
13. Fair Value
Under U.S. GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. U.S. GAAP provides a framework for measuring fair
value and establishes a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation
of an asset or liability. The three-level hierarchy for disclosure of fair value measurements is as follows:
Level 1 - Quoted market prices in active markets for identical assets or liabilities.
Level 2 - Observable inputs such as quoted prices for similar assets or liabilities in active markets; quoted prices for
identical or similar assets or liabilities in markets that are not active; and model-derived valuations in which all significant
inputs and significant value drivers are observable in active markets.
Level 3 - Valuations with one or more unobservable significant inputs that reflect the reporting entity's own assumptions.