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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
102
21. Commitments and Contingencies
LEGAL MATTERS
The Company is occasionally subject to litigation or other legal proceedings. The Company does not believe that the outcome
of these, or any other, pending legal matters, individually or collectively, will have a material adverse effect on the results of
operations, financial condition or liquidity of the Company.
ENVIRONMENTAL, HEALTH AND SAFETY MATTERS
The Company operates many manufacturing, bottling and distribution facilities. In these and other aspects of the Company's
business, it is subject to a variety of federal, state and local environmental, health and safety laws and regulations. The Company
maintains environmental, health and safety policies and a quality, environmental, health and safety program designed to ensure
compliance with applicable laws and regulations. However, the nature of the Company's business exposes it to the risk of claims
with respect to environmental, health and safety matters, and there can be no assurance that material costs or liabilities will not be
incurred in connection with such claims.
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 on which
to base a loss accrual. Through December 31, 2014, the Company has paid approximately $675,000 since the notification for DPS'
allocation of costs related to the study for this site.
22. Segments
As of December 31, 2014 and 2013 and for the years ended December 31, 2014, 2013 and 2012, 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 carbonated soft drink 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, Caribbean, and other international 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.