Snapple 2009 Annual Report Download - page 135

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assess the performance of the Company’s segments, which is principally in accordance with IFRS. In addition, the
Company’s current segment reporting structure is largely the result of acquiring and combining various portions of
its business over the past several years. As a result, profitability trends in individual segments may not be consistent
with the profitability of the company as a whole or comparable to DPS’ competitors.
The Company presents segment information in accordance with U.S. GAAP, which established reporting and
disclosure standards for an enterprise’s operating segments. Operating segments are defined as components of an
enterprise that are businesses, for which separate financial information is available, and for which the financial
information is regularly reviewed by the Company’s leadership team.
As of December 31, 2009, the Company’s operating structure consisted of the following three operating
segments:
• The Beverage Concentrates segment reflects sales of the Company’s branded concentrates to third party
bottlers primarily in the United States and Canada. Most of the brands in this segment are CSD brands.
• The Packaged Beverages segment reflects sales in the United States and Canada from the manufacture and
distribution of finished beverages and other products, including sales of the Company’s own brands and third
party brands, through both DSD and WD systems.
• The Latin America Beverages segment reflects sales in the Mexico and Caribbean markets from the
manufacture and distribution of both concentrates and finished beverages.
Segment results are based on management reports. Net sales and SOP are the significant financial measures
used to assess the operating performance of the Company’s operating segments.
Information about the Company’s operations by operating segment for the years ended December 31, 2009,
2008 and 2007 is as follows (in millions):
2009 2008 2007
For the Year Ended December 31,
Segment Results — Net sales
Beverage Concentrates ................................ $ 1,063 $ 983 $ 984
Packaged Beverages .................................. 4,111 4,305 4,295
Latin America Beverages .............................. 357 422 416
Net sales as reported .................................. $ 5,531 $ 5,710 $ 5,695
115
DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)