Snapple 2009 Annual Report Download - page 65

Restructuring
We have implemented restructuring programs from time to time and have incurred costs that are designed to
improve operating effectiveness and lower costs. These programs have included closure of manufacturing plants,
reductions in force, integration of back office operations and outsourcing of certain transactional activities. We
recorded $57 million and $76 million of restructuring costs for 2008 and 2007, respectively. There were no
significant restructuring costs in 2009. Refer to Note 13 of the Notes to our Audited Consolidated Financial
Statements for further information.
Liquidity
Based on our current and anticipated level of operations, we believe that our proceeds from operating cash
flows will be sufficient to meet our anticipated obligations for the next twelve months. To the extent that our
operating cash flows are not sufficient to meet our liquidity needs, we may utilize cash on hand or amounts available
under our Revolver.
The following table summarizes our cash activity for 2009, 2008 and 2007 (in millions):
2009 2008 2007
For the Year Ended December 31,
Net cash provided by operating activities .................. $ 865 $ 709 $ 603
Net cash (used in) provided by investing activities ........... (251) 1,074 (1,087)
Net cash (used in) provided by financing activities ........... (554) (1,625) 515
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased $156 million for the year ended December 31, 2009,
compared with the year ended December 31, 2008. The $867 million increase in net income included a
$1,039 million decrease in the non-cash impairment of goodwill and intangible assets, a $62 million increase
in the gain on the disposal of intangible assets primarily due to a one-time gain recorded in 2009 upon the
termination of the Hansen distribution agreement and an increase of $344 million in deferred income taxes driven
by the impairment of intangible assets in 2008. Changes in working capital included an $80 million favorable
increase in accounts payable and accrued expenses offset by a decrease of $50 million in other non-current
liabilities. Accounts payable and accrued expenses increased primarily due to higher accruals for customer
promotion and employee compensation, increased inventory purchases and improved cash management by paying
vendors in accordance with invoice terms. Other non-current liabilities decreased primarily due to payments
associated with the Company’s pension and postretirement employee benefit plans.
Net cash provided by operating activities in 2008 was $709 million compared to $603 million in 2007. The
$809 million decrease in net income included a $1,033 million increase in the non-cash impairment of goodwill and
intangible assets, an $83 million decrease in the gain on the disposal of assets due to a one-time gain recorded in
2007 upon the termination of the glaceau distribution agreement, an increase of $39 million in depreciation and
amortization expense driven by higher capital expenditures and the amortization of capitalized financing costs and
the impact of the write-off of $21 million of deferred financing costs related to our bridge loan facility. These
amounts were partially offset by a decrease of $296 million in deferred income taxes driven by the impairment of
intangible assets. Changes in working capital included a $71 million favorable decrease in inventory primarily due
to improved inventory management and lower sales volumes offset by an increase of $43 million in trade accounts
receivable and a $43 million decrease in accounts payable and accrued expenses. Trade accounts receivable
increased despite reduced collection times due to an increase in sales in December 2008. Accounts payable and
accrued expenses decreased primarily due to lower inventory purchases as we focus on inventory management.
Cash provided by operations was also impacted by our separation from Cadbury.
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