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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
72
The following table provides amounts utilized and available under the Revolver and each sublimit arrangement type as of
December 31, 2014 (in millions):
Amount Utilized Balances Available
Revolver $ — $ 499
Letters of credit 1 74
Swingline advances — 50
An unused commitment fee is payable quarterly to the lenders on the unused portion of the commitments of the Revolver
equal to 0.08% to 0.20% per annum, depending upon the Company's debt ratings. The Company incurred $1 million in unused
commitment fees during the years ended December 31, 2014 and 2013.
Shelf Registration Statement
On February 7, 2013, the Company's Board of Directors (the "Board") authorized the Company to issue up to $1,500 million
of securities from time to time. Subsequently, the Company filed a "well-known seasoned issuer" shelf registration statement with
the Securities and Exchange Commission, effective May 23, 2013, which registered an indeterminable amount of securities for
future sales. As of December 31, 2014, the Company had not issued any securities under this shelf registration statement.
Letters of Credit Facilities
In addition to the portion of the Revolver reserved for issuance of letters of credit, the Company has incremental letters of
credit facilities. Under these facilities, $140 million is available for the issuance of letters of credit, $63 million of which was
utilized as of December 31, 2014 and $77 million of which remains available for use.
10. Derivatives
DPS is exposed to market risks arising from adverse changes in:
• interest rates;
• foreign exchange rates; and
• commodity prices affecting the cost of raw materials and fuels.
The Company manages these risks through a variety of strategies, including the use of interest rate contracts, foreign exchange
forward contracts, commodity forward and future contracts and supplier pricing agreements. DPS does not hold or issue derivative
financial instruments for trading or speculative purposes.
INTEREST RATES
Cash Flow Hedges
During the fourth quarter of 2014, in order to hedge the variability in cash flows from interest rate changes associated with
the Company's planned issuances of long-term debt, the Company entered into a forward starting swap agreement with an aggregate
notional value of $125 million in order to fix the rate for a portion of a future 30 year unsecured debt issuance before the due date
of the 2016 Notes. The forward starting swap is expected to be unwound at the issuance of the debt.
The effective portion of changes in the fair value of the derivative that is designated as a cash flow hedge is being recorded
in AOCL and will be subsequently reclassified into earnings during the period in which the hedged forecasted transaction affects
earnings. Ineffectiveness, if any, related to the Company's changes in estimates about the debt issuance related to the forward
starting swap would be recognized directly in earnings as a component of interest expense during the period incurred. During the
year ended December 31, 2014, the Company realized no ineffectiveness as a result of this hedging relationship.
Fair Value Hedges
The Company is exposed to the risk of changes in the fair value of certain fixed-rate debt attributable to changes in interest
rates and manages these risks through the use of receive-fixed, pay-variable interest rate swaps.