Snapple 2012 Annual Report Download - page 56

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On January 11, 2011, we completed the issuance of $500 million aggregate principal amount of 2.90% senior notes due
January 15, 2016.
On November 15, 2011, we completed the issuance of $500 million aggregate principal amount of senior unsecured notes
consisting of $250 million aggregate principal amount of 2.60% senior notes due January 15, 2019 and $250 million aggregate
principal amount of 3.20% senior notes due November 15, 2021.
On December 21, 2011, we repaid $400 million of 1.70% senior notes due December 21, 2011 at maturity.
2010
Net cash 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 in connection
with the tender offer described below, the $405 million repayment of the revolving credit facility included in our prior 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.
Debt Ratings
As of December 31, 2012, our debt ratings were Baa1 with a stable outlook from Moody's and BBB with a positive outlook
from S&P. On October 26, 2012, S&P affirmed our debt rating of BBB and revised its outlook to positive from stable. Our
commercial paper ratings were P-2/A-2 from Moody's and S&P.
These debt and commercial paper ratings impact the interest we pay on our financing arrangements. A downgrade of one or
both of our debt and commercial paper ratings could increase our interest expense and decrease the cash available to fund anticipated
obligations.
Cash Management
We fund our liquidity needs from cash flow from operations, cash on hand or amounts available under our financing
arrangements, if necessary.
Capital Expenditures
Cash paid for capital expenditures was $193 million for the year ended December 31, 2012. Capital expenditures primarily
related to machinery and equipment, plant improvements, expansion and replacement of existing cold drink equipment and our
distribution fleet and IT investments. In 2013, we expect to incur annual capital expenditures, net of proceeds from disposals, in
an amount equal to approximately 3.50% of our net sales, which we expect to fund through cash provided by operating activities.
Cash and Cash Equivalents
As a result of the above items, cash and cash equivalents decreased $335 million since December 31, 2011 to $366 million
as of December 31, 2012.
Our cash balances are used to fund working capital requirements, scheduled debt and interest payments, capital expenditures,
income tax obligations, dividend payments and repurchases of our common stock. Cash available in our foreign operations may
not be immediately available for these purposes. Foreign cash balances constituted approximately 30% of our total cash position
as of December 31, 2012 as compared to 9% in the prior year. The primary driver of this increase was due to the domestic tax
payments of $531 million made during 2012 resulting from the licensing agreements with PepsiCo and Coca-Cola, which reduced
both our U.S. and total cash positions.
Dividends
Our Board declared dividends of $1.36, $1.21 and $0.90 per share on outstanding common stock during the years ended
December 31, 2012, 2011 and 2010, respectively.