Snapple 2011 Annual Report Download - page 118

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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
98
Environmental, Health and Safety Matters
The Company operates many manufacturing, bottling and distribution facilities. In these and other aspects of the Company's
business, it is subject to a variety of federal, state and local environment, health and safety laws and regulations. The Company
maintains environmental, health and safety policies and a quality, environmental, health and safety program designed to ensure
compliance with applicable laws and regulations. However, the nature of the Company's business exposes it to the risk of claims
with respect to environmental, health and safety matters, and there can be no assurance that material costs or liabilities will not
be incurred in connection with such claims.
The federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, also known as the Superfund
law, as well as similar state laws, generally impose joint and several liability for cleanup and enforcement costs on current and
former owners and operators of a site without regard to fault or the legality of the original conduct. In October 2008, DPS was
notified by the Environmental Protection Agency that it is a potentially responsible party for study and cleanup costs at a Superfund
site in New Jersey. Investigation and remediation costs are yet to be determined, but through December 31, 2011, the Company
paid approximately $425,000 since the notification for DPS' allocation of costs related to the study for this site.
19. Segments
The Company presents segment information in accordance with U.S. GAAP, which established reporting and disclosure
standards for an enterprise's operating segments. Operating segments are defined as components of an enterprise that are businesses,
for which separate financial information is available, and for which the financial information is regularly reviewed by the Company's
leadership team.
As of December 31, 2011, the Company's operating structure consisted of the following three operating segments:
• The Beverage Concentrates segment reflects sales of the Company's branded concentrates and syrup to third party bottlers
primarily in the U.S. and Canada. Most of the brands in this segment are carbonated soft drink brands.
• The Packaged Beverages segment reflects sales in the United States and Canada from the manufacture and distribution
of finished beverages and other products, including sales of the Company's own brands and third party brands, through
both DSD and WD.
• The Latin America Beverages segment reflects sales in the Mexico and Caribbean markets from the manufacture and
distribution of concentrates, syrup and finished beverages.
Segment results are based on management reports. Net sales and SOP are the significant financial measures used to assess
the operating performance of the Company's operating segments.
Information about the Company's operations by operating segment for the years ended December 31, 2011, 2010 and 2009
is as follows (in millions):
Segment Results – Net sales
Beverage Concentrates
Packaged Beverages
Latin America Beverages
Net sales
For the Year Ended December 31,
2011
$ 1,193
4,292
418
$ 5,903
2010
$ 1,156
4,098
382
$ 5,636
2009
$ 1,063
4,111
357
$ 5,531