Snapple 2009 Annual Report Download - page 139

Download and view the complete annual report

Please find page 139 of the 2009 Snapple annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 160

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160

23. Guarantor and Non-Guarantor Financial Information
The Company’s 2011, 2012, 2013, 2018 and 2038 Notes (collectively, the “Notes”) are fully and uncondi-
tionally guaranteed by substantially all of the Company’s existing and future direct and indirect domestic
subsidiaries (except two immaterial subsidiaries associated with the Company’s charitable foundations) (the
“Guarantors”), as defined in the indenture governing the notes. The Guarantors are wholly-owned either directly or
indirectly by the Company and jointly and severally guarantee the Company’s obligations under the notes. None of
the Company’s subsidiaries organized outside of the United States guarantee the notes (collectively, the “Non-
Guarantors”).
The following schedules present the information for the Guarantors and Non-Guarantors for the years ended
December 31, 2009, 2008 and 2007 and as of December 31, 2009 and 2008. The consolidating schedules are
provided in accordance with the reporting requirements for guarantor subsidiaries.
On May 7, 2008, Cadbury plc transferred its Americas Beverages business to Dr Pepper Snapple Group, Inc.,
which became an independent publicly-traded company. Prior to the transfer, Dr Pepper Snapple Group, Inc. did not
have any operations. Accordingly, activity for Dr Pepper Snapple Group, Inc. (the “Parent”) is reflected in the
consolidating statements from May 7, 2008 forward.
Parent Guarantors Non-Guarantors Eliminations Total
Condensed Consolidating Statement of Operations
For the Year Ended December 31, 2009
(In millions)
Net sales .......................... $ — $ 5,037 $ 494 $ — $ 5,531
Cost of sales ....................... — 2,028 206 — 2,234
Gross profit ...................... — 3,009 288 — 3,297
Selling, general and administrative
expenses ........................ — 1,954 181 — 2,135
Depreciation and amortization .......... — 114 3 — 117
Impairment of goodwill and intangible
assets ........................... — — — — —
Restructuring costs ................... — — — — —
Other operating expense (income)........ — (38) (2) — (40)
Income (loss) from operations ......... — 979 106 — 1,085
Interest expense ..................... 247 112 — (116) 243
Interest income ..................... (116) (1) (3) 116 (4)
Other (income) expense ............... (23) (24) 25 — (22)
Income (loss) before provision for
income taxes and equity in earnings of
subsidiaries..................... (108) 892 84 — 868
Provision for income taxes ............. (50) 336 29 — 315
Income (loss) before equity in earnings
of subsidiaries .................. (58) 556 55 — 553
Equity in earnings (loss) of consolidated
subsidiaries ...................... 613 57 — (670) —
Equity in earnings of unconsolidated
subsidiaries, net of tax .............. — — 2 — 2
Net income (loss).................... $ 555 $ 613 $ 57 $ (670) $ 555
119
DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)