Snapple 2009 Annual Report Download - page 91

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• The establishment of accounting and reporting standards for the noncontrolling interest in a subsidiary and
the deconsolidation of a subsidiary, including disclosure requirements that clearly identify and distinguish
between the controlling and noncontrolling interests and that separate the disclosure of income attributable
to the controlling and noncontrolling interests.
• The change in the factors that should be considered in developing assumptions about renewal or extension
used in estimating the useful life of a recognized intangible asset with a finite life under U.S. GAAP. The
update is intended to improve the consistency between the useful life of a recognized intangible asset and the
period of expected cash flows used to measure the fair value of the asset. The measurement provisions of this
update applied only to intangible assets acquired after January 1, 2009.
• The change in the disclosure requirements for derivative instruments and hedging activities, requiring
enhanced disclosures about how and why an entity uses derivative instruments, how derivative instruments
and related hedged items are accounted for, and how derivative instruments and related hedged items affect
an entity’s financial position, financial performance and cash flows. The enhanced disclosure requirements
are included within Note 10.
• The change in accounting for business acquisitions, including the impact on financial statements both on the
acquisition date and in subsequent periods. The Company will apply the guidance on all future business
combinations subsequent to January 1, 2009.
In accordance with U.S. GAAP and effective June 30, 2009, the Company adopted the following provisions,
which had no material impact on the Company’s financial position, results of operations or cash flows.
• The establishment of general standards regarding the accounting for and disclosure of events that occur after
the balance sheet date but before financial statements are issued or are available to be issued. The additional
disclosures are included within the section “Basis of Presentation” in Note 1.
• The change in the disclosure requirements about the fair value of financial instruments in interim financial
statements as well as in annual financial statements. The additional disclosures are included within Note 14.
In accordance with U.S. GAAP and effective December 31, 2009, the Company adopted the following
provision, which had no material impact on the Company’s financial position, results of operations or cash flows.
• The change in the disclosure requirements, which require enhanced annual disclosures about the plan assets
of a company’s defined benefit pension and other postretirement plans intended to provide users of financial
statements with a greater understanding of: (1) how investment allocation decisions are made, including the
factors that are pertinent to an understanding of investment policies and strategies; (2) the major categories
of plan assets; (3) the inputs and valuation techniques used to measure the fair value of plan assets, including
those using the net asset value per share to estimate the fair value of an alternative investment; (4) the effect
of fair value measurements using significant unobservable inputs (Level 3) on changes in plan assets for the
period; and (5) significant concentrations of risk within plan assets. The additional disclosures are included
within Note 15.
3. Accounting for the Separation from Cadbury
Upon separation, effective May 7, 2008, DPS became an independent company, which established a new
consolidated reporting structure. For the periods prior to May 7, 2008, the Company’s consolidated financial
information has been prepared on a “carve-out” basis from Cadbury’s consolidated financial statements using the
historical results of operations, assets and liabilities, attributable to Cadbury’s Americas Beverages business and
including allocations of expenses from Cadbury. The results may not be indicative of the Company’s future
performance and may not reflect DPS’ financial performance had DPS been an independent publicly-traded
company during those prior periods.
71
DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)