Snapple 2009 Annual Report Download - page 114

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The estimated fair values of other financial liabilities not measured at fair value on a recurring basis at
December 31, 2009 and 2008, are as follows (in millions):
Carrying Amount Fair Value Carrying Amount Fair Value
December 31, 2009 December 31, 2008
Long term debt — 2011 Notes(1) ..... $ 396 $ 400 $ — $ —
Long term debt — 2012 Notes(1) ..... 446 451 — —
Long term debt — 2013 Notes ....... 250 273 250 248
Long term debt — 2018 Notes ....... 1,200 1,349 1,200 1,184
Long term debt — 2038 Notes ....... 250 291 250 249
Long term debt — Revolving credit
facility ....................... 405 405 — —
Long term debt — Senior unsecured
term loan A facility ............. — — 1,805 1,606
(1) The carrying amount includes an adjustment of $8 million related to the change in the fair value of interest rate
swaps designated as fair value hedges on the 2011 and 2012 Notes. See Note 10 for further information
regarding derivatives.
Capital leases have been excluded from the calculation of fair value for both 2009 and 2008.
The fair value of long term debt as of December 31, 2009 and 2008 was estimated based on quoted market
prices for publicly traded securities. The difference between the fair value and the carrying value represents the
theoretical net premium or discount that would be paid or received to retire all debt at such date.
15. Employee Benefit Plans
Pension and Postretirement Plans
Overview
The Company has U.S. and foreign pension and postretirement benefit plans which provide benefits to a
defined group of employees at the discretion of the Company. As of December 31, 2009, the Company had eleven
stand-alone non-contributory defined benefit plans and six stand-alone postretirement health care plans. Each plan
has a measurement date of December 31. To participate in the defined benefit plans, eligible employees must have
been employed by the Company for at least one year. The postretirement benefits are limited to qualified expenses
and are subject to deductibles, co-payment provisions, and lifetime maximum amounts on coverage. Employee
benefit plan obligations and expenses included in our Audited Consolidated Financial Statements are determined
from actuarial analyses based on plan assumptions, employee demographic data, including years of service and
compensation, benefits and claims paid and employer contributions. Additionally, the Company participates in
various multi-employer defined benefit plans.
Prior to the separation from Cadbury, certain employees of the Company participated in five defined benefit
plans and one postretirement health care plan sponsored by Cadbury. Effective January 1, 2008, the Company
separated these commingled plans which historically contained participants of both the Company and other
Cadbury global companies into separate single employer plans sponsored by DPS. As a result, the Company re-
measured the projected benefit obligation of the separated pension plans and recorded the assumed liabilities and
assets based on the number of participants associated with DPS. The separation of the commingled plans into stand
alone plans resulted in an increase of approximately $71 million to other non-current liabilities and a decrease of
approximately $66 million to AOCL, a component of stockholders’ equity.
94
DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)