Snapple 2009 Annual Report Download - page 66

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Net Cash Provided by Investing Activities
The decrease of $1,325 million in cash provided by investing activities for the year ended December 31, 2009,
compared with the year ended December 31, 2008, was primarily attributable to related party notes receivable due
to the separation from Cadbury during 2008. For 2008, cash provided by net repayments of related party notes
receivable of $1,375 million for 2008. We increased capital expenditures by $13 million in the current year,
primarily due to the build out of the new manufacturing and distribution center in Victorville, California. Capital
asset investments for both years primarily consisted of expansion of our capabilities in existing facilities,
replacement of existing cold drink equipment, IT investments for new systems, and upgrades to the vehicle fleet.
Additionally, cash used in investing activities for 2009 included $68 million in proceeds primarily from the
termination of Hansen’s distributor agreement.
The increase of $2,161 million in cash provided by investing activities for the year ended December 31, 2008,
compared with the year ended December 31, 2007, was primarily attributable to related party notes receivable due
to the separation from Cadbury. For 2007, cash used in net issuances of related party notes receivable totaled
$929 million compared with cash provided by net repayments of related party notes receivable of $1,375 million for
2008. We increased capital expenditures by $74 million in the current year, primarily due to early stage costs of a
new manufacturing and distribution center in Victorville, California. Capital asset investments for both years
primarily consisted of expansion of our capabilities in existing facilities, replacement of existing cold drink
equipment, IT investments for new systems, and upgrades to the vehicle fleet. Additionally, cash used by investing
activities for 2007 included $98 million in proceeds from the disposal of assets, primarily attributable to the
termination of the glaceau distribution agreement, partially offset by net cash used in the acquisition of SeaBev.
Net Cash Provided by Financing Activities
The decrease of $1,071 million in cash used in financing activities for the year ended December 31, 2009,
compared with the year ended December 31, 2008, was driven by payments of third party long-term debt partially
offset by the proceeds from senior unsecured notes and the Revolver.
The following table summarizes the issuances and payments of third party and related party debt for 2009 and
2008 (in millions):
2009 2008
For the Year Ended
December 31,
Issuances of Third Party Debt:
Term Loan A .............................................. $ — $ 2,200
Revolver.................................................. 405 —
Senior unsecured notes(1) ..................................... 850 1,700
Bridge loan facility .......................................... — 1,700
Total issuances of third party debt ............................. 1,255 5,600
Payments on Third Party Debt:
Term Loan A .............................................. (1,805) (395)
Bridge loan facility .......................................... — (1,700)
Other payments ............................................ (4) (5)
Total payments on third party debt............................. (1,809) (2,100)
Net change in third party debt.................................... $ (554) $ 3,500
(1) The carrying amount includes an adjustment of $8 million related to the change in the fair value of interest rate
swaps designated as fair value hedges on the 2011 and 2012 Notes. See Note 10 to our Audited Consolidated
Financial Statements for further information regarding derivatives.
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