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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
64
The acquisition was accounted for as a business combination, and the identifiable assets acquired and liabilities assumed were
recorded at their estimated fair values at the date of acquisition. The excess of the purchase price over the estimated fair values
was recorded as goodwill.
In connection with this acquisition, the Company recorded goodwill of $5 million, which is deductible for tax purposes. The
Company also recorded $3 million in intangible assets related to distribution rights.
The Company has not presented pro forma results of operations for the acquisition because it is not material to the Company's
Consolidated Financial Statements.
2013 Acquisition
On February 25, 2013, the Company acquired certain assets of Dr. Pepper/7-Up Bottling Company of the West ("DP/7UP
West") to strengthen the Company's route-to-market in the U.S. and support efforts to build and enhance the Company's leading
brands. The fair value of the consideration paid for this acquisition was $23 million, consisting of the issuance by the Company
of 313,105 shares of common stock to DP/7UP West and $10 million in cash. The fair value of the common stock issued was
determined using the closing stock price on the acquisition date.
The following table summarizes the allocation of fair value of the assets acquired and liabilities assumed by major class for
the acquisition (in millions):
Fair Value Useful Life
Property, plant & equipment $ 7 3 - 40 years
Distribution rights: definite-lived 2 5 - 15 years
Distribution rights: indefinite-lived 10 —
Goodwill 5 —
Current liabilities, net of current assets assumed (1) —
Total $ 23
The acquisition was accounted for as a business combination, and the identifiable assets acquired and liabilities assumed were
recorded at their estimated fair values at the date of acquisition. The excess of the purchase price over the estimated fair values
was recorded as goodwill.
In connection with this acquisition, the Company recorded goodwill of $5 million, which is not deductible for tax purposes.
The Company also recorded $12 million in intangible assets related to distribution rights. DP/7UP West has 20,780 shares of the
Company's common stock remaining in an escrow account to satisfy certain working capital adjustments and applicable
indemnification claims, pursuant to the terms of the purchase agreement.
The Company has not presented pro forma results of operations for the acquisition because it is not material to the Company's
Consolidated Financial Statements.