Snapple 2012 Annual Report Download - page 91

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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
73
IMPACT OF ECONOMIC HEDGES
The following table presents the impact of derivative instruments not designated as 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 (Loss) Location of Gain (Loss)
Recognized in Income Recognized in Income
For the year ended December 31,
2012:
Commodity contracts $ 3 SG&A expenses
Total $ 3
For the year ended December 31,
2011:
Commodity contracts $ (15) Cost of sales
Commodity contracts 2 SG&A expenses
Total $ (13)
For the year ended December 31,
2010:
Interest rate contracts $ 7 Interest expense
Commodity contracts (2) Cost of sales
Commodity contracts 2 SG&A expenses
Total $ 7
Refer to Note 13 for additional information on the valuation of derivative instruments. The Company has exposure to credit
losses from derivative instruments in an asset position in the event of nonperformance by the counterparties to the agreements.
Historically, DPS has not experienced credit losses as a result of counterparty nonperformance. The Company selects and
periodically reviews counterparties based on credit ratings, limits its exposure to a single counterparty under defined guidelines
and monitors the market position of the programs at least on a quarterly basis.