Snapple 2011 Annual Report Download - page 111

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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
91
Equity securities(1)
U.S. Large-Cap equities(2)
International equities(2)
Fixed income securities
U.S. Corporate bonds(3)
International bonds(3)
Total
Fair Value Measurements at December 31, 2010
Total
$ 1
1
2
1
$ 5
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
$ —
—
—
—
$ —
Significant
Observable
Inputs
(Level 2)
$ 1
1
2
1
$ 5
Significant
Unobservable
Inputs
(Level 3)
$ —
—
—
—
$ —
____________________________
(1) Equity securities are comprised of actively managed U.S. index funds and EAFE index funds.
(2) The NAV is based on the fair value of the underlying assets owned by the equity index fund or fixed income investment vehicle
per share multiplied by the number of units held as of the measurement date and are classified as Level 2 assets.
(3) The assets for 2010 were previously mischaracterized as Level 1 and moved to Level 2 based upon further analysis in 2011.
Multi-employer Plans
The Company participates in a number of trustee-managed multi-employer defined benefit pension plans for union-represented
employees under certain collective bargaining agreements. The risks of participating in these multi-employer plans are different
from single-employer plans due to the following:
• Assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other
participating employers.
• If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the
remaining participating employers.
• If the Company chooses to stop participating in some of its multi-employer plans, the Company may be required to pay
those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability.
Contributions paid into the multi-employer plans are expensed as incurred and were as follows for the years ended December 31,
2011, 2010 and 2009 (in millions):
Multi-employer Plan Expense
Contributions to individually significant multi-employer plans
Contributions to all other multi-employer plans
Withdrawal liabilities from all other multi-employer plans(1)
Total
For the Year Ended December 31,
2011
$ 2
3
1
$ 6
2010
$ 2
2
—
$ 4
2009
$ 2
3
3
$ 8
____________________________
(1) During the second quarter of 2011, a trustee-approved mass withdrawal under one multi-employer plan was triggered. As a
result of this action, the Company recognized additional expense of $1 million for the year ended December 31, 2011. During
the third quarter of 2009, a trustee-approved mass withdrawal under one multi-employer plan was triggered and the trustee
estimated the unfunded vested liability for the Company. As a result of this action, the Company recognized additional expense
of approximately $3 million for the year ended December 31, 2009.