Snapple 2011 Annual Report Download - page 88

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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
68
8. Long-term Obligations
The following table summarizes the Company's long-term debt obligations as of December 31, 2011 and 2010 (in millions):
Senior unsecured notes(1)
Revolving credit facility
Less — current portion(2)
Subtotal
Long-term capital lease obligations
Long-term obligations
December 31,
2011
$ 2,701
—
(452)
2,249
7
$ 2,256
December 31,
2010
$ 2,081
—
(404)
1,677
10
$ 1,687
____________________________
(1) The carrying amount includes an adjustment of $29 million and $7 million related to the change in the fair value of interest
rate swaps designated as fair value hedges or the unamortized value of de-designated fair value hedges.
The adjustment as of December 31, 2011 included the change in the fair value for the fair value hedges on the 2.60% senior
notes due January 15, 2019 (the "2019 Notes"), 3.20% senior notes due November 15, 2021 (the "2021 Notes") and
7.45% senior notes due May 1, 2038 (the "2038 Notes") and the unamortized value of the de-designated fair value hedge on
the 2.35% senior notes due December 21, 2012 (the "2012 Notes").
The adjustment as of December 31, 2010 included the same items except for the exclusion of the fair value hedges on the
2019 and 2021 Notes and the addition of the fair value hedge on the 1.70% senior notes due December 21, 2011 (the "2011
Notes"). See Note 9 for further information regarding derivatives.
(2) The carrying amount includes an adjustment of $2 million and $4 million related to the change in the fair value of the interest
rate swap designated as a fair value hedge or the unamortized value of de-designated fair value hedges. The adjustment as of
December 31, 2011 included the unamortized value of the de-designated hedge on the 2012 Notes. The adjustment as of
December 31, 2010, included the change in the fair value for the fair value hedge on the 2011 Notes. See Note 9 for further
information regarding derivatives.
The following is a description of the senior unsecured notes, the senior unsecured credit facility and the commercial paper
program. The summaries of the senior unsecured notes, the senior unsecured credit facility and the commercial paper program
are qualified in their entirety by the specific terms and provisions of the indentures governing the senior unsecured notes, the
senior unsecured credit agreement and the commercial paper program dealer agreements, respectively.
Senior Unsecured Notes
The indentures governing the senior unsecured notes, among other things, limit the Company's ability to incur indebtedness
secured by principal properties, to enter into certain sale and leaseback transactions and to enter into certain mergers or transfers
of substantially all of DPS' assets. The senior unsecured notes are guaranteed by substantially all of the Company's existing and
future direct and indirect domestic subsidiaries. As of December 31, 2011, the Company was in compliance with all financial
covenant requirements.
The 2019 and 2021 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. The discount associated with these Notes was approximately $1 million. The net proceeds from the issuance were
used to repay $400 million aggregate principal amount of the 2011 Notes at maturity and general corporate purposes.