Snapple 2012 Annual Report Download - page 90

Download and view the complete annual report

Please find page 90 of the 2012 Snapple annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 135

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135

DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
72
IMPACT OF FAIR VALUE HEDGES
The following table presents the impact of derivative instruments designated as fair value hedging instruments under U.S.
GAAP to the Consolidated Statements of Income for the years ended December 31, 2012, 2011 and 2010 (in millions):
Amount of Gain Location of Gain
Recognized in Income Recognized in Income
For the year ended December 31, 2012:
Interest rate contracts(1) $ 10 Interest expense
Total $ 10
For the year ended December 31, 2011:
Interest rate contracts(1) $ 11 Interest expense
Total $ 11
For the year ended December 31, 2010:
Interest rate contracts $ 6 Interest expense
Total $ 6
____________________________
(1) The gain recognized in interest expense included amortization of the adjustment to the carrying value of the 2012 Notes as a
result of the de-designation discussed above. For the years ended December 31, 2012 and 2011, the amortization of this
adjustment was $2 million and $3 million, respectively.
For the year ended December 31, 2012, a $3 million benefit due to hedge ineffectiveness was recognized in earnings with
respect to derivative instruments designated as fair value hedges. For the year ended December 31, 2011, $1 million of hedge
ineffectiveness was recorded in earnings for the period. For the year ended December 31, 2010, there was no hedge ineffectiveness
recorded in earnings for the period.