Snapple 2009 Annual Report Download - page 6

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Creating Value for Stockholders
In 2009 we generated $865 million of cash
from operating activities. Our strong, stable
cash flow allowed us to repay approximately
$550 million in long-term debt while
continuing to invest in growth opportunities.
We also began deploying excess cash in
shareholder-friendly ways, including declaring
our first-ever dividend of $0.15 per share on
the company's common stock and announcing
plans to repurchase up to $200 million of
our outstanding common stock over the
next three years.
More recently, we completed the licensing
of certain brands to PepsiCo, Inc. following
its acquisitions of The Pepsi Bottling Group,
Inc. and PepsiAmericas, Inc. As part of the
transaction, DPS received a one-time cash
payment of $900 million before taxes and
other related fees and expenses. Having
used a portion of these proceeds to further
reduce our debt obligations, our total
outstanding debt now stands at $2.55
billion, in line with our target capital structure
of approximately 2.25 times total debt to
EBITDA after certain adjustments. Moreover,
our board authorized the repurchase of an
additional $800 million of our outstanding
common stock, bringing our total share
repurchase authorization to $1 billion.
Less than two years after going public, we
have achieved our target capital structure.
Combined with our focus on growing the
business organically, we are now committed
to returning excess cash to shareholders
over time.
Empowering Our People
Over the past two years, our people strategy
has centered on aligning and mobilizing our
19,000 employees around our business
strategy. The value of these efforts is reflected
in our strong 2009 financial performance as
well as third-party survey results that show
our team leaders’ level of engagement has
improved significantly in the last two years
and is now in a league with other high-
performing U.S. companies.
Leadership Transition
As we announced last October, John Stewart,
our chief financial officer, will soon retire.
Without question, Dr Pepper Snapple Group
would not be where it is today without John’s
talent, dedication and exemplary work ethic.
He played a critical role in our successful
separation from Cadbury Schweppes and led
significant improvements in our systems and
financial controls. He also built a talented and
highly effective finance and IT organization.
We’re grateful for John’s many contributions
to our business.
Succeeding John as chief financial officer
is Martin Ellen, who will join us from Snap-on
Incorporated on April 1. Marty has a strong
background in finance as well as expertise
in strategy and operations and will play an
important role in taking our business to the
next level of financial and operating success.
Growing with Flavor in 2010
Although the economy and consumer
spending are not expected to pick up until
later this year, we remain confident in our
powerful brand portfolio, our ability to capture
new sales and distribution wins, our continued
focus on cost control and our dedicated
employees. Combined, they provide the
platform to seize opportunities and deliver
another year of solid financial results in 2010.
Sincerely,
Wayne R. Sanders
CHAIRMAN OF THE BOARD
Larry D. Young
PRESIDENT & CHIEF EXECUTIVE OFFICER
March 2, 2010
DR PEPPER SNAPPLE GROUP 2009 ANNUAL REPORT
4
letter to stockholders