Snapple 2009 Annual Report Download - page 61

Prior to May 7, 2008, our total invested equity represented Cadbury’s interest in our recorded assets. In
connection with the distribution of our stock to Cadbury plc shareholders on May 7, 2008, Cadbury’s total invested
equity was reclassified to reflect the post-separation capital structure of $3 million par value of outstanding
common stock and contributed capital of $3,133 million.
Liquidity and Capital Resources
Trends and Uncertainties Affecting Liquidity
Customer and consumer demand for the Company’s products may be impacted by recession or other economic
downturn in the United States, Canada, Mexico or the Caribbean, which could result in a reduction in our sales
volume. Similarly, disruptions in financial and credit markets may impact the Company’s ability to manage normal
commercial relationships with its customers, suppliers and creditors. These disruptions could have a negative
impact on the ability of our customers to timely pay their obligations to us, thus reducing our cash flow, or our
vendors to timely supply materials.
The Company could also face increased counterparty risk for our cash investments and our hedge arrange-
ments. Declines in the securities and credit markets could also affect the Company’s pension fund, which in turn
could increase funding requirements.
We believe that the following recent transactions and trends and uncertainties may impact liquidity:
• changes in economic factors could impact consumers’ purchasing power;
• we have substantial third party debt as of December 31, 2009; and
• we will continue to make capital expenditures to complete our new manufacturing capacity, upgrade our
existing plants and distribution fleet of trucks, replace and expand our cold drink equipment and make
investments in IT systems in order to improve operating efficiencies and lower costs.
• On February 26, 2010, the Company received a one-time cash payment of $900 million for licensing certain
brands to PepsiCo, on completion of PepsiCo’s acquisition of PBG and PAS.
Financing Arrangements
2009 Borrowings and Repayments
On November 20, 2009, the Board authorized the Company to issue up to $1.5 billion of debt securities
through the Securities and Exchange Commission shelf registration process. At December 31, 2009, $650 million
remained authorized to be issued following the issuance described below.
On December 21, 2009, the Company completed the issuance of $850 million aggregate principal amount of
senior unsecured notes consisting of the 2011 and 2012 Notes due December 21, 2011 and December 21, 2012,
respectively.
On December 30, 2009, the Company borrowed $405 million from the Revolver .
On December 31, 2009, the Company fully repaid the principal balance on the senior unsecured Term Loan A
facility prior to its maturity.
Subsequent to December 31, 2009, the Company made optional repayments of $405 million which represented
the outstanding principal balance on the Revolver as of December 31, 2009.
2008 Borrowings and Repayments
On March 10, 2008, the Company entered into arrangements with a group of lenders to provide an aggregate of
$4.4 billion in senior financing. The arrangements consisted of a term loan A facility, a revolving credit facility and
a bridge loan facility.
41