Snapple 2014 Annual Report Download - page 85

Download and view the complete annual report

Please find page 85 of the 2014 Snapple annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 126

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126

82
13. Other Expense (Income), Net
The table below details the components of other expense (income), net for the years ended December 31, 2014, 2013 and
2012 (in millions):
For the Year Ended December 31,
2014 2013 2012
$ — $ 387 $ (9)
Other —(4) —
Other expense (income), net $ — $ 383 $ (9)
The Company has historically recorded indemnification income from under the Tax Indemnity Agreement as other
expense (income), net in the Consolidated Statements of Income. During the year ended December 31, 2013, the IRS concluded
an audit which included separation-related items and, as a result, the Company recognized $430 million of other expense, net, as
DPS no longer anticipates collecting amounts from For the year ended December 31, 2013, this amount was partially
offset by a $38 million non-cash reduction of the Company's long-term liability to as a result of a bill enacted by the
Canadian government which reduced amounts amortized for income tax purposes. Refer to Note 12 for additional information on
the conclusion of the IRS audit.
14. Employee Benefit Plans
PENSION AND POSTRETIREMENT PLANS
Overview
The Company has U.S. and foreign pension and postretirement medical plans which provide benefits to a defined group of
employees. The Company has several non-contributory defined benefit plans and postretirement medical plans, each having a
measurement date of December 31. To participate in the defined benefit plans, eligible employees must have been employed by
the Company for at least one year. The postretirement benefits are limited to qualified expenses and are subject to deductibles, co-
payment provisions and other provisions. Employee benefit plan obligations and expenses included in the Company's Audited
Consolidated Financial Statements are determined using actuarial analyses based on plan assumptions including employee
demographic data such as years of service and compensation, benefits and claims paid and employer contributions, among others.
The Company also participates in various multi-employer defined benefit plans.
The Company's largest U.S. defined benefit pension plan, which is a cash balance plan, was suspended and the accrued benefit
was frozen effective December 31, 2008. Participants in this plan no longer earn additional benefits for future services or salary
increases. The cash balance plans maintain individual recordkeeping accounts for each participant which are annually credited
with interest credits equal to the 12-month average of one-year U.S. Treasury Bill rates, plus 1%, with a required minimum rate
of 5%.
Table of Contents DR PEPPER SNAPPLE GROUP, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS