Snapple 2009 Annual Report Download - page 112

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Organizational Restructuring
The Company initiated a restructuring program in the fourth quarter of 2007 intended to create a more efficient
organization which resulted in the reduction of employees in the Company’s corporate, sales and supply chain
functions. The Company did not incur any restructuring charges related to the organizational restructuring during
the year ended December 31, 2009. The table below summarizes the charges for the years ended December 31, 2008
and 2007 and the cumulative costs to date by operating segment (in millions). The Company does not expect to incur
additional charges related to the organizational restructuring.
2008 2007
Cumulative
Costs to Date
Costs For the
Year Ended
December 31,
Beverage Concentrates .................................... $ 19 $ 15 $ 34
Packaged Beverages...................................... 9 10 19
Latin America Beverages .................................. 1 1 2
Corporate ............................................. 10 6 16
Total ............................................... $ 39 $ 32 $ 71
Integration of the DSD System
In conjunction with the integration of the DSD system with the other operations of the Company, the Company
began the standardization of processes in 2006. The Company did not incur any restructuring charges related to the
integration of the DSD system during the year ended December 31, 2009. The table below summarizes the charges
for the years ended December 31, 2008 and 2007 and the cumulative costs to date by operating segment (in
millions). The Company does not expect to incur additional restructuring charges related to the integration of the
bottling group.
2008 2007
Cumulative
Costs to Date
Costs For the
Year Ended
December 31,
Packaged Beverages...................................... $ 8 $ 12 $ 26
Beverage Concentrates .................................... 2 9 17
Corporate ............................................. — — 6
Total ............................................... $ 10 $ 21 $ 49
Integration of Technology Facilities
In 2007, the Company began a program to integrate its technology facilities. The Company did not incur any
charges for the integration of technology facilities during the year ended December 31, 2009. Charges for the
integration of technology facilities were $7 million for the year ended December 31, 2008, and $4 million for the
year ended December 31, 2007. The Company has incurred $11 million to date and does not expect to incur
additional charges related to the integration of technology facilities.
Facility Closure
The Company closed a facility related to the Packaged Beverages segment’s operations in 2007. The Company
did not incur any charges related to the closure of the facility during the year ended December 31, 2009. Charges
were $1 million and $6 million for the years ended December 31, 2008 and 2007, respectively. The Company has
incurred $7 million to date and does not expect to incur additional charges related to the closure of the facility.
92
DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)