Snapple 2012 Annual Report Download - page 55

37
Liquidity
Based on our current and anticipated level of operations, we believe that our operating cash flows will be sufficient to meet
our anticipated obligations for the next twelve months. To the extent that our operating cash flows are not sufficient to meet our
liquidity needs, we may utilize cash on hand or amounts available under our financing arrangements, if necessary.
The following table summarizes our cash activity for the years ended December 31, 2012, 2011 and 2010 (in millions):
For the Year Ended
December 31,
2012 2011 2010
Net cash provided by operating activities $ 458 $ 760 $ 2,535
Net cash used in investing activities (193)(217)(225)
Net cash used in financing activities (603)(152)(2,280)
NET CASH PROVIDED BY OPERATING ACTIVITIES
Net cash provided by operating activities decreased $302 million for the year ended December 31, 2012 as compared to the
year ended December 31, 2011, primarily due to the tax payments of $531 million resulting from the licensing agreements with
PepsiCo and Coca-Cola. The impact of the tax payments was partially offset by favorability in our working capital. Accounts
payable improved $40 million in 2012 as a result of timing of payments. Trade accounts receivable improved $91 million, driven
primarily by lower sales in the fourth quarter of 2012 and higher collections.
Net cash provided by operating activities decreased $1,775 million for the year ended December 31, 2011, compared with
the year ended December 31, 2010, 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 USED IN INVESTING ACTIVITIES
Net cash used in investing activities decreased $24 million for the year ended December 31, 2012 as compared to the year
ended December 31, 2011, driven primarily by lower capital expenditures of $22 million.
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 partially offset by lower proceeds
of $15 million from disposal of property, plant and equipment in 2011.
NET CASH USED IN FINANCING ACTIVITIES
2012
Net cash used in financing activities for the year ended December 31, 2012 primarily consisted of stock repurchases of $400
million and dividend payments of $284 million.
On November 20, 2012, we completed the issuance of $500 million aggregate principal amount of senior unsecured notes
consisting of $250 million aggregate principal amount of the 2020 Notes and $250 million aggregate principal amount of the 2022
Notes.
On December 21, 2012, we repaid $450 million of the 2012 Notes at maturity.
2011
Net cash used in financing activities for the year ended December 31, 2011 primarily consisted of stock repurchases of $522
million and dividend payments of $251 million.