Snapple 2011 Annual Report Download - page 60

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40
Net Cash Provided by Operating Activities
Net cash provided by operating activities decreased $1,775 million for the year ended December 31, 2011, compared with
the year ago period, primarily due to the receipt in 2010 of separate one-time nonrefundable cash payments of $900 million from
PepsiCo and $715 million from Coca-Cola, which were recorded as deferred revenue. For the year ended December 31, 2011, net
cash provided was $760 million, primarily due to net income adjusted for deferred income taxes and non-cash depreciation and
amortization. Inventory provided $29 million as a result of a reduction in the inventory on-hand as of December 31, 2011. Trade
receivables used $55 million as a result of increased sales in 2011 and accounts payable used $30 million due to the timing of
payments. In addition, net cash provided by operating activities was reduced as a result of $54 million of income tax payments
resulting from the licensing agreements with PepsiCo and Coca-Cola.
Net cash provided by operating activities increased $1,670 million for the year ended December 31, 2010, compared with the
year ended December 31, 2009. The $1,665 million increase in net operating assets was primarily due to the receipt of separate
one-time nonrefundable cash payments of $900 million from PepsiCo and $715 million from Coca-Cola, both recorded as deferred
revenue.
Net Cash Used in Investing Activities
The decrease of $8 million in cash used in investing activities for the year ended December 31, 2011, compared with the year
ended December 31, 2010 was primarily attributable to lower capital expenditures of $31 million and lower proceeds of $15
million from disposal of property, plant and equipment in 2011.
The decrease of $26 million in cash used in investing activities for the year ended December 31, 2010, compared with the
year ended December 31, 2009, was primarily attributable to lower capital expenditures of $71 million and higher proceeds of
$13 million from disposal of property, plant and equipment in 2010, partially offset by the absence of the one-time cash receipts
in 2009 of $68 million primarily from the termination of certain distribution agreements.
Net Cash Used in Financing Activities
2011
Cash used in financing activities for the year ended December 31, 2011, consisted of stock repurchases of $522 million and
dividend payments of $251 million.
On January 11, 2011, the Company completed the issuance of $500 million aggregate principal amount of the 2016 Notes.
On November 15, 2011, the Company completed the issuance of $500 million aggregate principal amount of senior unsecured
notes consisting of $250 million aggregate principal amount of the 2019 Notes and $250 million aggregate principal amount of the
2021 Notes.
On December 21, 2011, the Company repaid $400 million of the 2011 Notes at maturity.
2010
Net cash flow used in financing activities for the year ended December 31, 2010 primarily consisted of common stock
repurchases of $1,113 million, the $573 million aggregate principal and premium payment made to holders of the 2018 Notes in
connection with the tender offer described below, the $405 million repayment of the Revolver included in our senior unsecured
credit facility and dividend payments of $194 million.
On December 1, 2010, we announced a tender offer to repurchase up to $600 million of our outstanding 2018 Notes. On
December 29, 2010, we completed a tender offer and retired at a premium approximately $476 million of aggregate principal of
the 2018 Notes.