Snapple 2009 Annual Report Download - page 124

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The contributions paid into the U.S. and foreign multi-employer plans on the Company’s behalf by Cadbury
were $30 million for 2007.
Other Plans
The Company participates in a number of trustee-managed multi-employer defined benefit pension plans for
employees under certain collective bargaining agreements. Contributions paid into the multi-employer plans are
expensed as incurred and were approximately $8 million, $4 million and $3 million for the years ended
December 31, 2009, 2008 and 2007, respectively.
During the third quarter of 2009, a trustee-approved mass withdrawal under one multi-employer plan was
triggered and the trustee estimated the unfunded vested liability for the Company. As a result of this action, the
Company recognized additional expense of approximately $3 million for the year ended December 31, 2009.
Defined Contribution Plans
The Company sponsors the SIP, which is a qualified 401(k) Retirement Plan that covers substantially all
U.S.-based employees who meet certain eligibility requirements. This plan permits both pre-tax and after-tax
contributions, which are subject to limitations imposed by Internal Revenue Code (the “Code”) regulations. The
Company matches employees’ contributions up to specified levels.
The Company also sponsors a supplemental savings plan (the “SSP”), which is a nonqualified defined
contribution plan for employees who are actively enrolled in the SIP and whose after-tax contributions under the
SIP are limited by the Code compensation limitations.
Additionally, current participants in the SIP and SSP are eligible for an enhanced defined contribution which
vests after three years of service with the Company. The EDC was adopted by the Company during the fourth
quarter of 2006 and contributions began accruing for plan participants effective January 1, 2008 after a one-year
waiting period for participant entry into the plan. The Company made contributions of $12 million to the EDC
during 2009.
The Company’s employer matching contributions to the SIP and SSP plans were approximately $14 million in
2009, $13 million in 2008 and $12 million in 2007.
16. Stock-Based Compensation
Stock-Based Compensation
The Company accounts for stock-based compensation under the fair value method of accounting as required
by U.S. GAAP. Compensation cost is based on the grant-date fair value, which is estimated using the Black-Scholes
option pricing model for stock options. The fair value of restricted stock units is determined based on the number of
units granted and the grant date price of common stock. Stock-based compensation expense is recognized ratably,
less estimated forfeitures, over the vesting period in the Consolidated Statements of Operations related to the fair
value of employee share-based awards and recognition of compensation cost over the service period.
104
DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)