Snapple 2011 Annual Report Download - page 84

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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
64
Recently Adopted Provisions of U.S. GAAP
In accordance with U.S. GAAP, certain fair value measurement disclosure requirements specific to the different classes of
assets and liabilities, valuation techniques and inputs used, as well as Level 3 activity, were effective as of January 1, 2011. The
fair value measurement disclosure requirements had no material impact on the Company's financial position, results of operations
or cash flows.
In accordance with U.S. GAAP and effective December 31, 2011, the Company adopted additional disclosure requirements
about an employer's participation in a multi-employer pension plan, which had no material impact on the Company's financial
position, results of operations or cash flows. The additional disclosures are included within the section "Multi-employer Plans"
in Note 13.
3. Inventories
Inventories as of December 31, 2011 and 2010 consisted of the following (in millions):
Raw materials
Work in process
Finished goods
Inventories at FIFO cost
Reduction to LIFO cost
Inventories
December 31,
2011
$ 91
4
171
266
(54)
$ 212
December 31,
2010
$ 97
5
184
286
(42)
$ 244
4. Property, Plant and Equipment
Net property, plant and equipment consisted of the following as of December 31, 2011 and 2010 (in millions):
Land
Buildings and improvements
Machinery and equipment
Cold drink equipment
Software
Construction in progress
Gross property, plant and equipment
Less: accumulated depreciation and amortization
Net property, plant and equipment
December 31,
2011
$ 80
422
1,165
284
181
58
2,190
(1,038)
$ 1,152
December 31,
2010
$ 81
408
1,084
265
153
90
2,081
(913)
$ 1,168
Land, buildings and improvements included $21 million of assets at cost under capital lease as of December 31, 2011 and
2010. Machinery and equipment included $1 million of assets at cost under capital lease as of December 31, 2011 and 2010. The
net book value of assets under capital lease was $13 million and $14 million as of December 31, 2011 and 2010, respectively.
Depreciation expense amounted to $198 million, $185 million and $167 million in 2011, 2010 and 2009, respectively.
Depreciation expense was comprised of $81 million, $74 million and $67 million in cost of sales and $117 million, $111 million
and $100 million in depreciation and amortization on the Consolidated Statements of Income in 2011, 2010 and 2009, respectively.
The depreciation expense above also includes the charge to income resulting from amortization of assets recorded under capital
leases.
Capitalized interest was $3 million during 2011 and 2010 and $8 million during 2009.