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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
95
The federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, 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 or the legality of the original conduct. In October 2008, DPS was
notified by the Environmental Protection Agency 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, therefore no reasonable estimate exists in which
to base a loss accrual. Through December 31, 2012, the Company has paid approximately $500,000 since the notification for DPS'
allocation of costs related to the study for this site.
19. 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, 2012 and 2011, the Company's operating structure consisted of the following three operating segments:
• The Beverage Concentrates segment reflects sales of the Company's branded 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.
Information about the Company's operations by operating segment for the years ended December 31, 2012, 2011 and 2010
is as follows (in millions):
For the Year Ended December 31,
2012 2011 2010
Segment Results – Net sales
Beverage Concentrates $ 1,221 $ 1,193 $ 1,156
Packaged Beverages 4,358 4,292 4,098
Latin America Beverages 416 418 382
Net sales $ 5,995 $ 5,903 $ 5,636