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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
75
IMPACT OF CASH FLOW HEDGES
The following table presents the impact of derivative instruments designated as cash flow hedging instruments under U.S.
GAAP to the Consolidated Statements of Income and Comprehensive Income for the years ended December 31, 2013, 2012 and
2011 (in millions):
Amount of Gain (Loss)
Recognized in
Comprehensive
Income
Amount of Loss
Reclassified from
AOCL into Income
Location of Loss
Reclassified from
AOCL into Income
For the year ended December 31, 2013:
Interest rate contracts (1) (2) $ — $ (7)Interest expense
Foreign exchange forward contracts 4(1)Cost of sales
Total $ 4 $ (8)
For the year ended December 31, 2012:
Interest rate contracts (1) $(19) $ (3) Interest expense
Foreign exchange forward contracts (3)(2) Cost of sales
Total $ (22) $ (5)
For the year ended December 31, 2011:
Interest rate contracts $ (55) $ — Interest expense
Foreign exchange forward contracts 2 (2) Cost of sales
Total $ (53) $ (2)
__________________________
(1) During the fourth quarter of 2011, the Company unwound forward starting swaps associated with the 2019 and 2021 Notes
with an aggregate notional amount of $250 million. Upon termination, the Company paid $25 million to the counterparties,
which will be amortized to interest expense over the term of the issued debt.
(2) During the fourth quarter of 2012, the Company unwound forward starting swaps associated with the 2020 and 2022 Notes
with an aggregate notional amount of $300 million. Upon termination, the Company paid $49 million to the counterparties,
which will be amortized to interest expense over the term of the issued debt.
There was no hedge ineffectiveness recognized in earnings for the years ended December 31, 2013, 2012 and 2011 with respect
to derivative instruments designated as cash flow hedges. During the next 12 months, the Company expects to reclassify net losses
of $5 million from AOCL into net income.