Snapple 2010 Annual Report Download - page 93

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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
8. Accounts Payable and Accrued Expenses
Accounts payable and accrued expenses consisted of the following as of December 31, 2010 and 2009 (in millions):
Trade accounts payable
Customer rebates
Accrued compensation
Insurance reserves
Interest accrual and interest rate swap liability
Dividends payable
Other current liabilities
Accounts payable and accrued expenses
December 31,
2010
$ 298
224
102
29
16
56
126
$ 851
December 31,
2009
$ 252
209
126
68
24
38
133
$ 850
9. Long-term Obligations
The following table summarizes the Company’s long-term debt obligations as of December 31, 2010 and 2009 (in
millions):
Senior unsecured notes(1)
Revolving credit facility
Less — current portion(2)
Subtotal
Long-term capital lease obligations
Long-term obligations
December 31,
2010
$ 2,081
—
(404)
1,677
10
$ 1,687
December 31,
2009
$ 2,542
405
—
2,947
13
$ 2,960
____________________________
(1) The carrying amount includes an adjustment of $7 million and $8 million related to the change in the fair value of interest
rate swaps designated as fair value hedges on the 2011, 2012 and 2038 Notes as of December 31, 2010 and 2009,
respectively. See Note 10 for further information regarding derivatives.
(2) The carrying amount includes an adjustment of $4 million related to the change in the fair value of the interest rate swap
designated as a fair value hedge on the 2011 Notes as of December 31, 2010. See Note 10 for further information regarding
derivatives.
The following is a description of the senior unsecured notes, the senior unsecured credit facility and the commercial paper
program. The summaries of the senior unsecured credit facility and the senior unsecured notes are qualified in their entirety by
the specific terms and provisions of the indenture governing the senior unsecured notes, the senior unsecured credit agreement
and the commercial paper program dealer agreement governing the senior unsecured notes, respectively.
Senior Unsecured Notes
The indentures governing the senior unsecured notes, among other things, limit the Company’s ability to incur
indebtedness secured by principal properties, to enter into certain sale and leaseback transactions and to enter into certain
mergers or transfers of substantially all of DPS’ assets. The senior unsecured notes are guaranteed by substantially all of the
Company’s existing and future direct and indirect domestic subsidiaries. As of December 31, 2010, the Company was in
compliance with all financial covenant requirements.
73