Snapple 2012 Annual Report Download - page 85

DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
67
The following table provides amounts utilized and available under the Revolver and each sublimit arrangement type as of
December 31, 2012 (in millions):
Amount Utilized Balances Available
Revolver $ — $ 493
Letters of credit 7 68
Swingline advances — 50
The Credit Agreement further provides that the Company may request at any time, subject to the satisfaction of certain
conditions, that the aggregate commitments under the facility be increased by a total amount not to exceed $250 million.
The Credit Agreement's representations, warranties, covenants and events of default are generally customary for investment
grade credit and includes a covenant that requires the Company to maintain a ratio of consolidated total debt (as defined in the
Credit Agreement) to annualized consolidated EBITDA (as defined in the Credit Agreement) of no more than 3.00 to 1.00, tested
quarterly. Upon the occurrence of an event of default, among other things, amounts outstanding under the Credit Agreement may
be accelerated and the commitments may be terminated. The Company's obligations under the Credit Agreement are guaranteed
by certain of the Company's direct and indirect domestic subsidiaries on the terms set forth in the Credit Agreement. The Credit
Agreement has a maturity date of September 25, 2017; however, the Company, with the consent of lenders holding more than 50%
of the total commitments under the Credit Agreement and subject to the satisfaction of certain conditions, may extend the maturity
date for up to two additional one-year terms.
An unused commitment fee is payable quarterly to the lenders on the unused portion of the commitments of the Revolver
equal to 0.08% to 0.20% per annum, depending upon the Company's debt ratings. There were no significant unused commitment
fees incurred during the year ended December 31, 2012.
Commercial Paper Program
On December 10, 2010, the Company entered into a commercial paper program under which the Company may issue unsecured
commercial paper notes (the "Commercial Paper") on a private placement basis up to a maximum aggregate amount outstanding
at any time of $500 million. As of December 31, 2012 and 2011, the Company had no outstanding Commercial Paper.
Capital Lease Obligations
Long-term capital lease obligations, primarily related to manufacturing facilities, totaled $56 million and $7 million as of
December 31, 2012, and 2011, respectively. Current obligations related to the Company's capital leases were $1 million and $4
million as of December 31, 2012 and 2011, respectively, and were included as a component of other current liabilities.
Letters of Credit Facilities
The Company currently has letter of credit facilities available in addition to the portion of the Revolver reserved for issuance
of letters of credit. Under these letter of credit facilities, $65 million is available for the issuance of letters of credit, $58 million
of which was utilized as of December 31, 2012 and $7 million remains available for use.
9. Derivatives
DPS is exposed to market risks arising from adverse changes in:
• interest rates;
• foreign exchange rates; and
• commodity prices affecting the cost of raw materials and fuels.
The Company manages these risks through a variety of strategies, including the use of interest rate contracts, foreign exchange
forward contracts, commodity forward contracts and supplier pricing agreements. DPS does not hold or issue derivative financial
instruments for trading or speculative purposes.