Snapple 2014 Annual Report Download - page 108

Download and view the complete annual report

Please find page 108 of the 2014 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 126

  • 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

DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
105
23. Guarantor and Non-Guarantor Financial Information
The Company's 2016, 2018, 2019, 2020, 2021, 2022 and 2038 Notes (collectively, the "Notes") are fully and unconditionally
guaranteed by substantially all of the Company's existing and future direct and indirect domestic subsidiaries (except two immaterial
subsidiaries associated with charitable purposes) (the "Guarantors"), as defined in the indentures governing the Notes. The
Guarantors are 100% owned either directly or indirectly by the Company and jointly and severally guarantee, subject to the release
provisions described below, the Company's obligations under the Notes. None of the Company's subsidiaries organized outside
of the U.S. or immaterial subsidiaries used for charitable purposes (collectively, the "Non-Guarantors") guarantee the Notes. The
subsidiary guarantees with respect to the Notes are subject to release upon the occurrence of certain events, including the sale of
all or substantially all of a subsidiary's assets, the release of the subsidiary's guarantee of other indebtedness of the Company, the
Company's exercise of its legal defeasance option with respect to the Notes and the discharge of the Company's obligations under
the applicable indenture.
The following schedules present the financial information for the years ended December 31, 2014, 2013 and 2012, and as of
December 31, 2014 and 2013, for Dr Pepper Snapple Group, Inc. (the "Parent"), Guarantors and Non-Guarantors. The consolidating
schedules are provided in accordance with the reporting requirements for guarantor subsidiaries (in millions).
Condensed Consolidating Statements of Income
For the Year Ended December 31, 2014
Parent Guarantors Non-
Guarantors Eliminations Total
Net sales $ — $ 5,474 $ 681 $ (34) $ 6,121
Cost of sales — 2,191 334 (34) 2,491
Gross profit — 3,283 347 — 3,630
Selling, general and administrative expenses 1 2,106 227 — 2,334
Multi-employer pension plan withdrawal — —— — —
Depreciation and amortization — 107 8 — 115
Other operating expense, net — 1 — — 1
Income from operations (1) 1,069 112 — 1,180
Interest expense 104 51 — (46) 109
Interest income (40) — (8) 46 (2)
Other expense (income), net (2) (3) 5 — —
Income (loss) before provision (benefit) for
income taxes and equity in earnings of
subsidiaries (63) 1,021 115 — 1,073
Provision (benefit) for income taxes (38) 383 26 — 371
Income (loss) before equity in earnings of
subsidiaries (25) 638 89 — 702
Equity in earnings of consolidated subsidiaries 728 90 — (818) —
Equity in earnings of unconsolidated
subsidiaries, net of tax — — 1 — 1
Net income $ 703 $ 728 $ 90 $ (818) $ 703