Snapple 2012 Annual Report Download - page 108
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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
90
ESTIMATED FAIR VALUE OF LONG-TERM OBLIGATIONS
The estimated fair values of long-term obligations as of December 31, 2012 and 2011, are as follows (in millions):
December 31, 2012 December 31, 2011
Carrying
Amount Fair Value Carrying
Amount Fair Value
Long-term debt – 2012 Notes(1) $ — $ — $ 452 $ 457
Long-term debt – 2013 Notes 250 255 250 267
Long-term debt – 2016 Notes 500 528 500 521
Long-term debt – 2018 Notes 724 919 724 882
Long-term debt – 2019 Notes(1) 253 256 250 249
Long-term debt – 2020 Notes(1) 247 245 — —
Long-term debt – 2021 Notes(1) 254 253 249 250
Long-term debt – 2022 Notes(1) 249 250 — —
Long-term debt – 2038 Notes(1) 271 366 276 353
____________________________
(1) The carrying amount includes the unamortized discounts on the issuance of debt and adjustments related to the change in the
fair value of interest rate swaps designated as fair value hedges on the 2012, 2019, 2020, 2021 and 2038 Notes. Refer to Note 9
for additional information regarding derivatives.
Capital leases have been excluded from the calculation of fair value for both 2012 and 2011.
The fair value amounts of long term debt as of December 31, 2012 and 2011, were based on current market rates available to
the Company (Level 2 inputs). The difference between the fair value and the carrying value represents the theoretical net premium
or discount that would be paid or received to retire all debt at such date.
14. Stock-Based Compensation
Stock-based compensation expense is recorded in SG&A expenses in the Consolidated Statements of Income. The components
of stock-based compensation expense for the years ended December 31, 2012, 2011 and 2010 are presented below (in millions):
For the Year Ended December 31,
2012 2011 2010
Total stock-based compensation expense $ 35 $ 34 $ 29
Income tax benefit recognized in the income statement (12)(11)(10)
Stock-based compensation expense, net of tax $ 23 $ 23 $ 19
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, RSUs or PSUs.
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 and PSUs, which vest after three years and stock options, which vest ratably
over 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 15,000,000 shares of
the Company's common stock were available for future grant at December 31, 2012.