Snapple 2011 Annual Report Download - page 61

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2009
Net cash flow used in financing activities for the year ended December 31, 2009 consisted primarily of net debt repayments
of $550 million.
On December 21, 2009, we completed the issuance of $850 million aggregate principal amount of senior unsecured notes
consisting of the 2011 and 2012 Notes due December 21, 2011 and December 21, 2012, respectively.
On December 30, 2009, we borrowed $405 million from the Revolver.
On December 31, 2009, we fully repaid the principal balance on the Term Loan A prior to its maturity.
Debt Ratings
As of December 31, 2011, our debt ratings were Baa1 with a stable outlook from Moody's and BBB with a stable outlook
from Standard & Poor's ("S&P"). Our commercial paper ratings were P-2/A-2 from Moody's and S&P.
These debt and commercial paper ratings impact the interest we pay on our financing arrangements. A downgrade of one or
both of our debt and commercial paper ratings could increase our interest expense and decrease the cash available to fund anticipated
obligations.
Cash Management
We fund our liquidity needs from cash flow from operations, cash on hand or amounts available under our financing
arrangements, if necessary.
Capital Expenditures
Capital expenditures were $215 million, $246 million and $317 million for 2011, 2010, and 2009, respectively. Capital
expenditures for all periods primarily consisted of expansion of our capabilities in existing facilities, cold drink equipment and
IT investments for new systems. The decrease in expenditures for 2010 compared with 2009 was primarily related to the significant
investment in 2009 in our new Victorville, California facility, partially offset by expansion and replacement of existing cold drink
equipment. We expect to incur discretionary annual capital expenditures in an amount equal to approximately 4% of our net sales
which we expect to fund through cash provided by operating activities.
Cash and Cash Equivalents
As a result of the above items, cash and cash equivalents increased $386 million since December 31, 2010 to $701 million
as of December 31, 2011.
Our cash balances are used to fund working capital requirements, scheduled debt and interest payments, capital expenditures,
income tax obligations, dividend payments and repurchases of our common stock. Cash available in our foreign operations may
not be immediately available for these purposes. Foreign cash balances constitute approximately 9% of our total cash position as
of December 31, 2011.
Dividends
On November 20, 2009, our Board declared our first dividend of $0.15 per share on outstanding common stock, which was
paid on January 8, 2010 to stockholders of record at the close of business on December 21, 2009. Prior to that declaration, we had
not paid a cash dividend on our common stock since our demerger on May 7, 2008.
Our Board declared dividends of $1.21 and $0.90 per share on outstanding common stock during the years ended December 31,
2011 and 2010, respectively.
Common Stock Repurchases
During the years ended December 31, 2010 and 2009, our Board authorized the repurchase of up to $2 billion of the Company's
outstanding common stock during 2010, 2011 and 2012. On November 17, 2011, the Board authorized the repurchase of an
additional $1 billion of our outstanding common stock, increasing the total aggregate share repurchase plan to $3 billion. For the
year ended December 31, 2011 and 2010, the Company repurchased and retired approximately 14 million and 31 million shares
of common stock valued at approximately $522 million and $1,113 million, respectively. Refer to Part II, Item 5 of this Annual
Report on Form 10-K for additional information regarding these repurchases.