Snapple 2009 Annual Report Download - page 123

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The following table presents the major categories of plan assets and the respective fair value hierarchy for the
postretirement benefit plan assets as of December 31, 2009 (in millions):
Total
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Fair Value Measurements at December 31, 2009
(in millions)
Equity securities(1)
U.S. Large-Cap equities(2) ....... $ 1 $ — $ 1 $ —
International equities(2) ......... 1 — 1 —
Fixed income securities(3)
Corporate bonds .............. 2 2 — —
International bonds ............ 1 1 — —
Total ......................... $ 5 $ 3 $ 2 $ —
(1) Equity securities are comprised of common stock and actively managed U.S. index funds and Europe,
Australia, Far East (EAFE) index funds. Investments in common stocks are valued using quoted market prices
multiplied by the number of shares held.
(2) Fixed income securities are comprised of U.S. Treasuries, U.S. Municipal bonds, investment grade U.S. and
non-U.S. fixed income securities which are valued using a broker quote in an active market, and actively
managed fixed income investment vehicles which are valued at NAV.
(3) The NAV is based on the fair value of the underlying assets owned by the equity index fund or fixed income
investment vehicle per share multiplied by the number of units held as of the measurement date and are
classified as Level 2 assets.
Multi-employer Plans
Cadbury
Prior to the separation from Cadbury, certain employees of the Company participated in defined benefit plans
and postretirement health care plans 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 stand alone plans sponsored by DPS. These plans were accounted for as multi-employer plans prior
to 2008. The following table summarizes the components of net periodic benefit cost related to the U.S. multi-
employer plans sponsored by Cadbury recognized in the Consolidated Statements of Operations for 2007 (in
millions):
2007 2007
Postretirement
Benefit PlansPension Plans
Service cost ............................................ $ 13 $ 1
Interest cost ............................................ 17 1
Expected return on assets .................................. (13) (1)
Recognition of actuarial gain ............................... 5 —
Net periodic benefit costs ................................ $ 22 $ 1
Each individual component and the total periodic benefit cost for the foreign multi-employer plans sponsored
by Cadbury were less than $1 million for 2007.
103
DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)