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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
76
IMPACT OF FAIR VALUE HEDGES
The following table presents the impact of derivative instruments designated as fair value hedging instruments under U.S.
GAAP to the Consolidated Statements of Income for the years ended December 31, 2014, 2013 and 2012 (in millions):
Amount of Gain Location of Gain
Recognized in Income Recognized in Income
For the year ended December 31, 2014:
Interest rate contracts $ 16 Interest expense
Total $ 16
For the year ended December 31, 2013:
Interest rate contracts $ 9 Interest expense
Total $ 9
For the year ended December 31, 2012:
Interest rate contracts(1) $ 10 Interest expense
Total $ 10
____________________________
(1) The gain recognized in interest expense included amortization of the adjustment to the carrying value of the 2012 Notes as a
result of the de-designation of a $450 million notional interest rate swap related to those Notes in 2010. For the year ended
December 31, 2012, the amortization of this adjustment was $2 million.
There was no hedge ineffectiveness recognized in earnings with respect to derivative instruments designated as fair value
hedges for the year ended December 31, 2014. $2 million of hedge ineffectiveness was recognized in earnings with respect to
derivative instruments designated as fair value hedges for the years ended December 31, 2013. For the year ended December 31,
2012, a $3 million benefit due to hedge ineffectiveness was recognized in earnings with respect to derivative instruments designated
as fair value hedges.