Snapple 2013 Annual Report Download - page 111

DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
101
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. 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. During the
year ended December 31, 2013, the Company paid settlements with five of the six plaintiffs, which reduced the litigation reserve
to $2 million as of December 31, 2013.
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.
The federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, also known as the Superfund
law, as well as similar state laws, generally impose joint and several liability for cleanup and enforcement costs on current and
former owners and operators of a site without regard to fault or the legality of the original conduct. In October 2008, DPS was
notified by the Environmental Protection Agency that it is a potentially responsible party for study and cleanup costs at a Superfund
site in New Jersey. Investigation and remediation costs are yet to be determined, therefore no reasonable estimate exists on which
to base a loss accrual. Through December 31, 2013, the Company has paid approximately $575,000 since the notification for DPS'
allocation of costs related to the study for this site.
21. Segments
As of December 31, 2013 and 2012 and for the years ended December 31, 2013, 2012 and 2011, the Company's operating
structure consisted of the following three operating segments:
• The Beverage Concentrates segment reflects sales of the Company's branded concentrates and syrup to third party bottlers
primarily in the U.S. and Canada. Most of the brands in this segment are carbonated soft drink brands.
• The Packaged Beverages segment reflects sales in the U.S. and Canada from the manufacture and distribution of finished
beverages and other products, including sales of the Company's own brands and third party brands, through both DSD and WD.
• The Latin America Beverages segment reflects sales in the Mexico, Caribbean, and other international markets from the
manufacture and distribution of concentrates, syrup and finished beverages.
Segment results are based on management reports. Net sales and SOP are the significant financial measures used to assess
the operating performance of the Company's operating segments.