Snapple 2014 Annual Report Download - page 45

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Contractual Commitments and Obligations
We enter into various contractual obligations that impact, or could impact, our liquidity. Based on our current and anticipated
level of operations, we believe that our proceeds from operating cash flows will be sufficient to meet our anticipated obligations.
To the extent that our operating cash flows are not sufficient to meet our liquidity needs, we may utilize cash on hand or amounts
available under our financing arrangements, if necessary. Refer to Note 9 of the Notes to our Audited Consolidated Financial
Statements for additional information regarding the senior unsecured notes payments described in this table.
The following table summarizes our contractual obligations and contingencies as of December 31, 2014 (in millions):
Payments Due in Year
Total 2015 2016 2017 2018 2019 After
2019
Senior unsecured notes(1) $ 2,474 $ — $ 500 $ — $ 724 $ 250 $ 1,000
Capital leases(2) 129 11 11 11 11 10 75
Operating leases(3) 239 47 40 32 24 21 75
Purchase obligations(4) 764 473 136 51 45 39 20
Interest payments(5) 758 95 94 92 69 42 366
Current tax reserve 1 1 — — — — —
43 6 6 6 6 19 —
Total $ 4,408 $ 633 $ 787 $ 192 $ 879 $ 381 $ 1,536
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(1) Amounts represent payment for the senior unsecured notes issued by us. Please refer to Note 9 of the Notes to our Audited
Consolidated Financial Statements for further information.
(2) Amounts represent our contractual payment obligations for our lease arrangements classified as capital leases. These amounts
exclude renewal options not yet executed but were included in the lease term to determine the capital lease obligation as the
lease imposes a penalty on us in such amount that the renewal appeared reasonably assured at lease inception. Additionally,
we changed our leasing strategy during the year ended December 31, 2014. As a result of this change, the Company converted
a number of operating leases with a term less than twelve months into capital leases, which increased our contractual obligations.
(3) Amounts represent minimum rental commitments under non-cancelable operating leases.
(4) Amounts represent payments under agreements to purchase goods or services that are legally binding and that specify all
significant terms, including capital obligations and long-term contractual obligations.
(5) Amounts represent our estimated interest payments based on specified interest rates for fixed rate debt and the impact of
interest rate swaps which convert fixed interest rates to variable interest rates.
Amounts excluded from our table
As of December 31, 2014, we had $12 million of non-current unrecognized tax benefits, related interest and penalties classified
as a long-term liability. The table above does not reflect any payments related to these amounts as it is not possible to make a
reasonable estimate of the amount or timing of the payment. Refer to Note 12 of the Notes to our Audited Consolidated Financial
Statements.
The total accrued benefit liability representing the underfunded position for pension and other postretirement benefit plans
recognized as of December 31, 2014 was approximately $44 million. This amount is impacted by, among other items, funding
levels, plan amendments, changes in plan assumptions and the investment return on plan assets. We did not include estimated
payments related to our total accrued benefit liability in the table above.
The Pension Protection Act of 2006 was enacted in August 2006 and established, among other things, new standards for
funding of U.S. defined benefit pension plans. We generally expect to fund all future contributions with cash flows from operating
activities. Our international pension plans are generally funded in accordance with local laws and income tax regulations. We did
not include our estimated contributions to our various single employer plans in the table above.