Snapple 2012 Annual Report Download - page 112

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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
94
18. Commitments and Contingencies
LEASE COMMITMENTS
The Company has leases for certain facilities and equipment which expire at various dates through 2020. Operating lease
expense was $80 million for the years ended December 31, 2012 and 2011, and $82 million for the year ended December 31, 2010.
Future minimum lease payments under operating leases with initial or remaining noncancellable lease terms in excess of one year
and capital leases as of December 31, 2012 are as follows (in millions):
Operating
Leases Capital
Leases
2013 $ 56 $ 6
2014 48 6
2015 39 6
2016 30 6
2017 23 6
Thereafter 60 155
Total minimum lease payments $ 256 185
Less imputed interest at rates ranging from 1.95% to 15.42% (128)
Present value of minimum lease payments $ 57
Of the $57 million in capital lease obligations above, $56 million is included in long-term debt payable to third parties and
$1 million is included in other current liabilities on the Consolidated Balance Sheet as of December 31, 2012.
LEGAL MATTERS
The Company is occasionally subject to litigation or other legal proceedings as set forth below. The Company does not believe
that the outcome of these, or any other, pending legal matters, individually or collectively, will have a material adverse effect on
the results of operations, financial condition or liquidity of the Company.
Robert M. Ward, et al. v. The American Bottling Company
In March 2009, Robert M. Ward, et al., as plaintiffs, commenced litigation in the U.S. District Court, Central District of
California, Western Division alleging age discrimination against Cadbury Schweppes Bottling Group, Inc. (now The American
Bottling Company), et al., as defendants. The defendants are subsidiaries of the Company. The complaint related to activities which
principally occurred before the Company's spin off from Cadbury in 2008. On December 7, 2011, the jury returned a verdict in
favor of the six plaintiffs and awarded damages of approximately $18 million, which amount was accrued as of December 31,
2012. On June 25, 2012, the Company filed a notice of appeal with the U.S. Court of Appeals for the Ninth Circuit regarding the
judgment and denial of defendants' motions.
Escheat Audit
The State of Delaware, Department of Finance, Division of Revenue (Unclaimed Property), has notified numerous companies,
including wholly-owned subsidiaries of DPSG, that the State intends to examine its books and records to determine compliance
with the Delaware Escheat Laws. The scope of its examination will be for the period 1981 through the present.
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 environmental, 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.