Snapple 2013 Annual Report Download - page 73

DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
63
Restructuring Costs
The Company periodically records significant facility closing and reorganization charges as restructuring costs when a facility
for closure or other reorganization opportunity has been identified, a closure plan has been developed and the affected employees
notified, all in accordance with U.S. GAAP. Refer to Note 22 for additional information.
Foreign Currency Translation
The functional currency of the Company's operations outside the U.S. is generally the local currency of the country where the
operations are located. The balance sheets of operations outside the U.S. are translated into U.S. Dollars at the end of year rates.
The results of operations are translated into U.S. dollars at a monthly average rate, calculated using daily exchange rates.
The following table sets forth exchange rate information for the periods and currencies indicated:
Mexican Peso to U.S. Dollar Exchange Rate End of Year
Rates
Annual
Average Rates
2013 13.08 12.77
2012 12.97 13.15
2011 13.95 12.43
Canadian Dollar to U.S. Dollar Exchange Rate End of Year
Rates
Annual
Average Rates
2013 1.06 1.03
2012 0.99 1.00
2011 1.02 0.99
Differences arising from the translation of opening balance sheets of these entities to the rate ruling at the end of the financial
year are recognized in AOCL. The differences arising from the translation of foreign results at the average rate are also recognized
in AOCL. Such translation differences are recognized as income or expense in the period in which the Company disposes of the
operations.
Transactions in foreign currencies are recorded at the approximate rate of exchange at the transaction date. Assets and liabilities
resulting from these transactions are translated at the rate of exchange in effect at the balance sheet date. All such differences are
recorded in results of operations.
Recently Issued Accounting Standards
In February 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2013-04,
Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the
Reporting Date ("ASU 2013-04"). The amendments in ASU 2013-04 provide guidance for the recognition, measurement and
disclosure of obligations resulting from joint and several liability arrangements from which the total amount of the obligation
within the scope of this guidance is fixed at the reporting date. ASU 2013-04 is effective for fiscal years, and interim periods within
those years, beginning after December 15, 2013. The Company does not anticipate a material impact to the Company's financial
position, results of operations or cash flows as a result of this change.
In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss
Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists ("ASU 2013-11"). The amendments in ASU 2013-11
provide guidance on the financial statement presentation of unrecognized tax benefit when a net operating loss carryforward, a
similar tax loss or a tax credit carryforward exists. ASU 2013-11 is effective for fiscal years, and interim periods within those
years, beginning after December 15, 2013. The Company will reflect the impact of these amendments beginning with the Company's
Quarterly Report on Form 10-Q for the period ending March 31, 2014. The Company does not anticipate a material impact to the
Company's financial position, results of operations or cash flows as a result of this change.