PLANO, Texas, Feb. 14, 2017 /PRNewswire/ -- Dr Pepper Snapple
Group, Inc. (NYSE: DPS) reported fourth quarter 2016 EPS of
$0.90, which included an $0.11 per diluted share loss on the early
extinguishment of certain debt. Reported EPS were $0.97 in the prior year period. Core EPS were
$1.04, up 4%, compared to
$1.00 in the prior year period. For
the year, the company reported earnings of $4.54 per diluted share compared to $3.97 per diluted share in the prior year. Core
EPS were $4.39, up 9%, compared to
$4.02 in the prior year.
DPS President and CEO Larry Young
said, "I'm proud of our teams and the strong performance they
delivered in 2016. In a continuously competitive environment, we
remained focused on our integrated communication and execution
strategies and unlocked growth across our priority brands. We
recently completed our acquisition of Bai, which will strengthen
our priority brand portfolio and bring exciting innovation
opportunities to the company. We also remained relentlessly focused
on driving growth and productivity across our business with Rapid
Continuous Improvement."
For the quarter, reported net sales increased 2% on favorable
product and package mix, a 1% increase in sales volumes and higher
pricing. Net sales was partially offset by 1 percentage point of
unfavorable foreign currency translation and unfavorable segment
mix. Reported segment operating profit (SOP) increased 2% as net
sales growth, lower logistics costs and ongoing productivity
improvements were partially offset by increases in certain
operating costs and an $8 million
increase in planned marketing investments. Currency neutral segment
operating profit was further reduced by 2 percentage points of
foreign currency transaction.
Reported income from operations for the quarter was $335 million, which included $11 million in unrealized commodity
mark-to-market gains and $3 million
in expenses related to our acquisition of Bai. Reported income from
operations was $322 million in the
prior year period, which included a $7
million impairment charge on the Garden Cocktail brand.
Currency neutral core income from operations for the quarter was
$330 million compared to $329 million in the prior year. Currency neutral
income from operations was further reduced by 3 percentage points
of foreign currency transaction.
For the year, reported net sales increased by 3% to $6.44 billion. Foreign currency translation
negatively impacted reported net sales by 1%. Reported income from
operations was $1.43 billion,
including $52 million in unrealized
commodity mark-to-market gains and $3
million in acquisition expenses related to Bai. Reported
income from operations in the prior year was $1.30 billion, which included a $7 million impairment charge and a $5 million unrealized commodity mark-to-market
loss. Core income from operations was $1.38
billion, up 5%, representing 21.5% of net sales compared to
20.9% in the prior year. Currency neutral core income from
operations was further reduced by 2 percentage points of foreign
currency transaction.
EPS
reconciliation
|
Fourth
Quarter
|
Full
Year
|
2016
|
2015
|
Percent
Change
|
2016
|
2015
|
Percent
Change
|
Reported
EPS
|
$0.90
|
$0.97
|
(7)
|
$4.54
|
$3.97
|
14
|
|
|
|
|
|
|
|
Unrealized commodity
mark-to-market net (gain)/loss
|
-
|
-
|
|
(0.13)
|
0.02
|
|
|
|
|
|
|
|
|
Items affecting
comparability
|
|
|
|
|
|
|
- Extinguishment loss
–Debt
|
0.11
|
-
|
|
0.11
|
-
|
|
- Bai acquisition
costs
|
0.03
|
-
|
|
0.03
|
-
|
|
- Extinguishment gain
– Multi-Employer
|
-
|
-
|
|
(0.07)
|
-
|
|
- Legal entity
restructuring
|
-
|
-
|
|
(0.09)
|
-
|
|
- Brand
impairment
|
-
|
0.03
|
|
-
|
0.02
|
|
- Litigation
provision
|
-
|
-
|
|
-
|
0.01
|
|
|
------
|
------
|
------
|
-----
|
-----
|
------
|
Core EPS
|
$1.04
|
$1.00
|
4
|
$4.39
|
$4.02
|
9
|
Net sales and SOP in the tables and commentary below are
presented on a currency neutral basis. Refer to the Definitions
section of this press release for details on how the company
calculates currency neutral metrics. For a reconciliation of
non-GAAP to GAAP measures see pages A-5 through A-10 accompanying
this release.
Summary of 2016
results
(Percent
change)
|
As
Reported
|
Currency
Neutral
(Translation)
|
Fourth
Quarter
|
Full
Year
|
Fourth
Quarter
|
Full
Year
|
BCS Volume
|
-
|
1
|
-
|
1
|
Sales
Volume
|
1
|
1
|
1
|
1
|
Net Sales
|
2
|
3
|
3
|
4
|
SOP
|
2
|
5
|
2
|
6
|
BCS Volume
For the quarter, BCS volume was flat, with
carbonated soft drinks (CSDs) increasing 1% and non-carbonated
beverages (NCBs) decreasing 1%.
By geography, U.S. and Canada
volume was flat, and Mexico and
the Caribbean volume increased
5%.
In CSDs, Squirt grew 8% driven by strong performance in
Mexico and the U.S. Schweppes grew
7% on distribution gains in sparkling waters and growth in the
ginger ale category. Our Core 4 brands increased 3%, as a
mid-single-digit increase in Canada Dry and a low-single-digit increase in
7UP were partially offset by a low-single-digit decrease in
A&W. Sunkist was flat in the quarter. Peñafiel grew 1%, while
Crush decreased 1%. Brand Dr Pepper decreased 1% in the quarter,
primarily driven by timing in fountain foodservice performance.
Fountain foodservice volume decreased 4% in the period.
In NCBs, Snapple decreased 3% and Hawaiian Punch declined 5% on
category headwinds and higher pricing on single-serve packages.
Mott's decreased 2% in the quarter as growth in sauce was more than
offset by declines in juices. Our water category increased 8% on
strong growth in Bai, Core Hydration and FIJI. Clamato increased 13% on distribution
gains, increased promotional activity and product
innovation.
For the year, BCS volume increased 1% with both carbonated soft
drinks (CSDs) and non-carbonated beverages (NCBs) increasing
1%.
By geography, U.S. and Canada
volume increased 1%, and Mexico
and the Caribbean volume increased
5%.
In CSDs, Squirt increased 6% driven by strong performance in
Mexico and the U.S. Schweppes
increased 8% on distribution gains in sparkling waters and growth
in the ginger ale category. Peñafiel increased 3% primarily due to
distribution gains, increased promotional activity and product
innovation. Brand Dr Pepper increased 1% on growth in fountain
foodservice. Crush increased 3% for the year, and our Core 4 brands
were flat, as a mid-single-digit increase in Canada Dry was offset by a mid-single-digit
decline in 7UP and low-single-digit declines in both A&W and
Sunkist. Fountain foodservice volume increased 2% for the year.
In NCBs, our water category grew 18% primarily on growth in Bai,
FIJI, Aguafiel and Core Hydration.
Snapple was flat and Clamato increased 10% on distribution gains,
increased promotional activity and product innovation. Hawaiian
Punch decreased 6% due to category headwinds and higher pricing for
our single-serve packages. Mott's decreased 3% for the year with
declines in juice partially offset by growth in sauce.
Sales Volume
Sales volumes increased 1% in the quarter
and for the year.
2016 Segment
results
(Percent Change)
|
Fourth
Quarter
|
|
|
As
Reported
|
Currency
Neutral
(Translation)
|
Sales
Volume
|
Net
Sales
|
SOP
|
Net
Sales
|
SOP
|
Beverage
Concentrates
|
1
|
4
|
7
|
4
|
7
|
Packaged
Beverages
|
-
|
3
|
(3)
|
3
|
(3)
|
Latin America
Beverages
|
5
|
(8)
|
(10)
|
6
|
-
|
Total
|
1
|
2
|
2
|
3
|
2
|
2016 Segment
results
(Percent Change)
|
Full
Year
|
|
|
As
Reported
|
Currency
Neutral
(Translation)
|
Sales
Volume
|
Net
Sales
|
SOP
|
Net
Sales
|
SOP
|
Beverage
Concentrates
|
1
|
3
|
3
|
4
|
4
|
Packaged
Beverages
|
-
|
3
|
9
|
3
|
9
|
Latin America
Beverages
|
5
|
(7)
|
(11)
|
7
|
-
|
Total
|
1
|
3
|
5
|
4
|
6
|
Beverage Concentrates
Net sales increased 4% in the
quarter driven by concentrate price increases taken earlier in the
year, favorable product mix, lower discounts and a 1% increase in
concentrate shipments. SOP increased 7%, as the increase in net
sales was partially offset by a $1
million increase in planned marketing investments.
Packaged Beverages
Net sales increased 3% for the
quarter on favorable product and package mix and price increases.
SOP decreased 3% as net sales growth, favorable logistics costs and
ongoing productivity improvements were more than offset by
increases in certain operating expenses, including $4 million of health and welfare and insurance
costs and additional frontline labor costs focused on driving
better execution. SOP was further reduced by an $8 million increase in planned marketing
investments, which reduced SOP by 4 percentage points.
Latin America Beverages
Net sales increased 6% in the
quarter driven by a 5% increase in sales volumes, favorable product
and package mix and higher net pricing. SOP was flat, as the
segment incurred $8 million of higher
U.S. dollar denominated input costs which caused a 40% decline in
SOP. The aforementioned foreign currency transaction cost taken
together with increases in certain other operating expenses
collectively offset net sales growth and ongoing productivity
improvements.
Corporate and Other Items
For the quarter, corporate
costs totaled $73 million, which
included $11 million in unrealized
commodity mark-to-market gains, $3
million in acquisition costs related to Bai and an increase
in American Beverage Association expenses due to timing. Corporate
costs in the prior year period were $75
million.
Other expense decreased $4 million
in the quarter on the favorable comparison of a prior year
impairment charge of $7 million on
the Garden Cocktail brand.
Net interest expense increased $14
million in the quarter driven by $12
million of mark-to-market activity related to certain
interest rate swaps and amortization expense associated with a
bridge facility related to our acquisition of Bai.
For the quarter, the reported effective tax rate was 35.4%. The
effective tax rate in the prior year period was 36.4%.
Cash Flow
For the year, the company generated
$939 million of cash from operating
activities compared to $991 million
in the prior year. Capital spending totaled $180 million compared to $179 million in the prior year period. The
company returned $905 million to
shareholders in the form of stock repurchases ($519 million) and dividends ($386 million).
2017 Full Year Guidance includes the following items:
- Organic volume growth of approximately 1%; total volume growth
of close to 2%, inclusive of the Bai acquisition, which closed on
January 31,
2017.
- Net sales growth of about 4.5%, including over 1 percentage
point of negative foreign currency translation impact and also
includes the Bai acquisition, which is expected to add
approximately 3 percentage points to growth.
- Expected net sales and operating profit associated with the Bai
acquisition are now expected to be better than previously
communicated in November of 2016, however non-cash purchase price
accounting adjustments are expected make the acquisition
$0.10 dilutive to Core EPS for the
year.
- Collectively, foreign currency translation and transaction are
expected to reduce Core EPS by $0.11,
primarily driven by the Mexican peso, which we believe may
deteriorate an additional 14% from the 2016 year-ended
level.
- Recent events affecting Mexico
have created an uncertain economic and consumer environment leading
us to reduce our 2017 Core EPS expectation by $0.04.
- Excluding the Bai acquisition, packaging and ingredient costs
are expected to be inflationary by approximately 0.5% on a constant
volume/mix basis.
- The company expects its core tax rate to be approximately
34.5%, inclusive of a favorable accounting change associated with
stock compensation expense that is expected to increase Core EPS by
about $0.07.
- The company expects strong free cash flow, capable of funding
both a 9.4% dividend increase and repurchases of its common stock
of $450 million to $500 million.
- The company expects capital spending to be approximately 3
percent of net sales.
- Taking the above items into consideration, the company expects
2017 Core EPS in the $4.44 to $4.54
range.
Definitions
Bottler case sales (BCS) volume: Sales of
finished beverages, in equivalent 288 fluid ounce cases, sold by
the company and its bottling partners to retailers and independent
distributors and excludes contract manufacturing volume. Volume for
products sold by the company and its bottling partners is reported
on a monthly basis, with the fourth quarter comprising October,
November and December.
Sales volume: Sales of concentrates and finished beverages, in
equivalent 288 fluid ounce cases, shipped by the company to its
bottlers, retailers and independent distributors and includes
contract manufacturing volume.
Organic volume: Represents sales volume excluding the
incremental sales volume associated with the Bai acquisition.
Bai acquisition: Represents the incremental third party Bai
business and the additional mark-up that we purchased on
January 31, 2017.
Pricing refers to the impact of list price changes.
Unrealized mark-to-market: We recognize the change in the fair
value of open commodity and interest rate derivative positions not
designated as hedges in accordance with U.S. GAAP. As the
underlying commodity is delivered, the realized gains and losses
associated with commodity derivatives are subsequently reflected in
the segment results.
EPS represents diluted earnings per share.
Core financial measures are determined utilizing reported
financial numbers adjusted for the unrealized mark-to-market impact
of commodity derivatives and certain items that are excluded for
comparison to prior year periods.
Core metrics are determined based on the core financial
measures.
Net sales and segment operating profit, as adjusted to currency
neutral: Net sales and segment operating profit are calculated on a
currency neutral basis by converting our current-period local
currency financial results using the prior-period foreign currency
exchange rates.
Forward-Looking Statements
This release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, including, in
particular, statements about future events, future financial
performance including earnings estimates, plans, strategies,
expectations, prospects, competitive environment, regulation, and
cost and availability of raw materials. Forward-looking statements
include all statements that are not historical facts and can be
identified by the use of forward-looking terminology such as the
words "may," "will," "expect," "anticipate," "believe," "estimate,"
"plan," "intend" or the negative of these terms or similar
expressions. These forward-looking statements have been based on
our current views with respect to future events and financial
performance. Our actual financial performance could differ
materially from those projected in the forward-looking statements
due to the inherent uncertainty of estimates, forecasts and
projections, and our financial performance may be better or worse
than anticipated. Given these uncertainties, you should not put
undue reliance on any forward-looking statements. All of the
forward-looking statements are qualified in their entirety by
reference to the factors discussed under "Risk Factors" in Part I,
Item 1A of our Annual Report on Form 10-K for the year ended
December 31, 2015, and our other
filings with the Securities and Exchange Commission.
Forward-looking statements represent our estimates and assumptions
only as of the date that they were made. We do not undertake any
duty to update the forward-looking statements, and the estimates
and assumptions associated with them, after the date of this
release, except to the extent required by applicable securities
laws.
Conference Call
At 9 a.m.
(CST) today, the company will host a conference call with
investors to discuss fourth quarter and full year results and the
outlook for 2017. The conference call and slide presentation will
be accessible live through DPS's website at
http://www.drpeppersnapple.com and will be archived for replay for
a period of 14 days.
In discussing financial results and guidance, the company may
refer to certain non-GAAP measures. Reconciliations of any such
non-GAAP measures to the most directly comparable financial
measures in accordance with GAAP can be found on pages A-5 through
A-10 accompanying this release and under "Financial News" on the
company's website at http://www.drpeppersnapple.com in the
"Investors" section.
For additional information about Dr Pepper Snapple Group, please
reference the "DPS Overview" presentation slideshow under "Events
and Presentations" on the company's website at
http://www.drpeppersnapple.com in the "Investors" section.
About Dr Pepper Snapple Group
Dr Pepper Snapple Group
(NYSE: DPS) is a leading producer of flavored beverages in
North America and the Caribbean. Our success is fueled by more than
50 brands that are synonymous with refreshment, fun and flavor. We
have seven of the top 10 non-cola soft drinks, and nine of our 10
leading brands are No. 1 or No. 2 in their flavor categories. In
addition to our flagship Dr Pepper and Snapple brands, our
portfolio includes 7UP, A&W, Bai, Canada Dry, Clamato, Crush,
Hawaiian Punch, IBC, Mott's, Mr & Mrs T mixers, Peñafiel,
Rose's, Schweppes, Squirt and Sunkist soda. To learn more about our
iconic brands and Plano,
Texas-based company, please visit www.DrPepperSnapple.com.
For our latest news and updates, follow us at
www.Facebook.com/DrPepperSnapple or
www.Twitter.com/DrPepperSnapple.
Contacts:
|
Media
Relations
|
|
Chris Barnes, (972)
673-5539
|
|
|
|
Investor
Relations
|
|
Heather Catelotti,
(972) 673-5869
|
DR PEPPER SNAPPLE
GROUP, INC.
|
CONSOLIDATED
STATEMENTS OF INCOME
|
For the Three and
Twelve Months Ended December 31, 2016 and 2015
|
(Unaudited, in
millions, except per share data)
|
|
|
For
the
|
|
For
the
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net
sales
|
$
|
1,578
|
|
|
$
|
1,546
|
|
|
$
|
6,440
|
|
|
$
|
6,282
|
|
Cost of
sales
|
627
|
|
|
610
|
|
|
2,582
|
|
|
2,559
|
|
Gross
profit
|
951
|
|
|
936
|
|
|
3,858
|
|
|
3,723
|
|
Selling, general and
administrative expenses
|
590
|
|
|
583
|
|
|
2,329
|
|
|
2,313
|
|
Depreciation and
amortization
|
25
|
|
|
26
|
|
|
99
|
|
|
105
|
|
Other operating
(income) expense, net
|
1
|
|
|
5
|
|
|
(3)
|
|
|
7
|
|
Income from
operations
|
335
|
|
|
322
|
|
|
1,433
|
|
|
1,298
|
|
Interest
expense
|
48
|
|
|
34
|
|
|
147
|
|
|
117
|
|
Interest
income
|
(1)
|
|
|
(1)
|
|
|
(3)
|
|
|
(2)
|
|
Loss on early
extinguishment of debt
|
31
|
|
|
—
|
|
|
31
|
|
|
—
|
|
Other income,
net
|
—
|
|
|
(2)
|
|
|
(25)
|
|
|
(1)
|
|
Income before
provision for income taxes and equity in (loss) earnings of
unconsolidated subsidiaries
|
257
|
|
|
291
|
|
|
1,283
|
|
|
1,184
|
|
Provision for income
taxes
|
91
|
|
|
106
|
|
|
434
|
|
|
420
|
|
Income before equity
in (loss) earnings of unconsolidated subsidiaries
|
166
|
|
|
185
|
|
|
849
|
|
|
764
|
|
Equity in (loss)
earnings of unconsolidated subsidiaries, net of tax
|
(1)
|
|
|
—
|
|
|
(2)
|
|
|
—
|
|
Net
income
|
$
|
165
|
|
|
$
|
185
|
|
|
$
|
847
|
|
|
$
|
764
|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.90
|
|
|
$
|
0.98
|
|
|
$
|
4.57
|
|
|
$
|
4.00
|
|
Diluted
|
0.90
|
|
|
0.97
|
|
|
4.54
|
|
|
3.97
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
183.6
|
|
|
188.7
|
|
|
185.4
|
|
|
190.9
|
|
Diluted
|
184.7
|
|
|
190.2
|
|
|
186.6
|
|
|
192.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A-1
|
DR PEPPER SNAPPLE
GROUP, INC.
|
CONSOLIDATED
BALANCE SHEETS
|
As of December 31,
2016 and 2015
|
(Unaudited, in
millions, except share and per share data)
|
|
|
December
31,
|
|
December
31,
|
(in millions,
except share and per share data)
|
2016
|
|
2015
|
|
|
Assets
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
1,787
|
|
|
$
|
911
|
|
Accounts
receivable:
|
|
|
|
Trade, net
|
595
|
|
|
570
|
|
Other
|
51
|
|
|
58
|
|
Inventories
|
202
|
|
|
209
|
|
Prepaid expenses and
other current assets
|
101
|
|
|
69
|
|
Total current
assets
|
2,736
|
|
|
1,817
|
|
Property, plant and
equipment, net
|
1,138
|
|
|
1,156
|
|
Investments in
unconsolidated subsidiaries
|
23
|
|
|
31
|
|
Goodwill
|
2,993
|
|
|
2,988
|
|
Other intangible
assets, net
|
2,656
|
|
|
2,663
|
|
Other non-current
assets
|
183
|
|
|
150
|
|
Non-current deferred
tax assets
|
62
|
|
|
64
|
|
Total
assets
|
$
|
9,791
|
|
|
$
|
8,869
|
|
Liabilities and
Stockholders' Equity
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
303
|
|
|
$
|
277
|
|
Deferred
revenue
|
64
|
|
|
64
|
|
Short-term borrowings
and current portion of long-term obligations
|
10
|
|
|
507
|
|
Income taxes
payable
|
4
|
|
|
27
|
|
Other current
liabilities
|
670
|
|
|
708
|
|
Total current
liabilities
|
1,051
|
|
|
1,583
|
|
Long-term
obligations
|
4,468
|
|
|
2,875
|
|
Non-current deferred
tax liabilities
|
812
|
|
|
787
|
|
Non-current deferred
revenue
|
1,117
|
|
|
1,181
|
|
Other non-current
liabilities
|
209
|
|
|
260
|
|
Total
liabilities
|
7,657
|
|
|
6,686
|
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity:
|
|
|
|
Preferred stock,
$0.01 par value, 15,000,000 shares authorized, no shares
issued
|
—
|
|
|
—
|
|
Common stock, $0.01
par value, 800,000,000 shares authorized, 183,119,843 and
187,841,509 shares issued and outstanding for 2016 and 2015,
respectively
|
2
|
|
|
2
|
|
Additional paid-in
capital
|
95
|
|
|
211
|
|
Retained
earnings
|
2,266
|
|
|
2,165
|
|
Accumulated other
comprehensive loss
|
(229)
|
|
|
(195)
|
|
Total stockholders'
equity
|
2,134
|
|
|
2,183
|
|
Total liabilities and
stockholders' equity
|
$
|
9,791
|
|
|
$
|
8,869
|
|
|
A-2
|
DR PEPPER SNAPPLE
GROUP, INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
For the Twelve
Months Ended December 31, 2016 and 2015
|
(Unaudited, in
millions)
|
|
|
For the Twelve
Months Ended December 31,
|
(in
millions)
|
2016
|
|
2015
|
Operating
activities:
|
|
|
|
Net income
|
$
|
847
|
|
|
$
|
764
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation
expense
|
191
|
|
|
192
|
|
Amortization
expense
|
33
|
|
|
35
|
|
Amortization of
deferred revenue
|
(64)
|
|
|
(64)
|
|
Impairment of
intangible asset
|
—
|
|
|
7
|
|
Employee stock-based
compensation expense
|
45
|
|
|
44
|
|
Deferred income
taxes
|
29
|
|
|
29
|
|
Loss on early
extinguishment of debt
|
31
|
|
|
—
|
|
Gain on step
acquisition of unconsolidated subsidiaries
|
(5)
|
|
|
—
|
|
Gain on
extinguishment of multi-employer plan withdrawal
liability
|
(21)
|
|
|
—
|
|
Unrealized (gains)
losses on economic hedges
|
(40)
|
|
|
5
|
|
Other, net
|
(9)
|
|
|
(15)
|
|
Changes in assets and
liabilities, net of effects of acquisition:
|
|
|
|
Trade accounts
receivable
|
(31)
|
|
|
(26)
|
|
Other accounts
receivable
|
3
|
|
|
1
|
|
Inventories
|
3
|
|
|
(11)
|
|
Other current and
non-current assets
|
(50)
|
|
|
8
|
|
Other current and
non-current liabilities
|
(53)
|
|
|
(11)
|
|
Trade accounts
payable
|
32
|
|
|
(9)
|
|
Income taxes
payable
|
(2)
|
|
|
42
|
|
Net cash provided by
operating activities
|
939
|
|
|
991
|
|
Investing
activities:
|
|
|
|
Acquisition of
business
|
(15)
|
|
|
—
|
|
Cash acquired in step
acquisition of unconsolidated subsidiaries
|
17
|
|
|
—
|
|
Purchase of property,
plant and equipment
|
(180)
|
|
|
(179)
|
|
Purchase of
intangible assets
|
(2)
|
|
|
(1)
|
|
Investment in
unconsolidated subsidiaries
|
(6)
|
|
|
(20)
|
|
Purchase of cost
method investments
|
(1)
|
|
|
(15)
|
|
Proceeds from
disposals of property, plant and equipment
|
6
|
|
|
20
|
|
Other, net
|
(8)
|
|
|
1
|
|
Net cash used in
investing activities
|
(189)
|
|
|
(194)
|
|
Financing
activities:
|
|
|
|
Proceeds from
issuance of senior unsecured notes
|
1,950
|
|
|
750
|
|
Repayment of senior
unsecured notes
|
(891)
|
|
|
—
|
|
Net repayment of
commercial paper
|
—
|
|
|
—
|
|
Repurchase of shares
of common stock
|
(519)
|
|
|
(521)
|
|
Dividends
paid
|
(386)
|
|
|
(355)
|
|
Tax withholdings
related to net share settlements of certain stock awards
|
(31)
|
|
|
(27)
|
|
Proceeds from stock
options exercised
|
14
|
|
|
30
|
|
Excess tax benefit on
stock-based compensation
|
22
|
|
|
23
|
|
Deferred financing
charges paid
|
(19)
|
|
|
(6)
|
|
Capital lease
payments
|
(9)
|
|
|
(5)
|
|
Other, net
|
(1)
|
|
|
(3)
|
|
Net cash provided by
(used in) financing activities
|
130
|
|
|
(114)
|
|
Cash and cash
equivalents — net change from:
|
|
|
|
Operating, investing
and financing activities
|
880
|
|
|
683
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(4)
|
|
|
(9)
|
|
Cash and cash
equivalents at beginning of year
|
911
|
|
|
237
|
|
Cash and cash
equivalents at end of year
|
$
|
1,787
|
|
|
$
|
911
|
|
|
A-3
|
DR PEPPER SNAPPLE
GROUP, INC.
|
OPERATIONS BY
OPERATING SEGMENT
|
For the Three and
Twelve Months Ended December 31, 2016 and 2015
|
(Unaudited,
in millions)
|
|
|
For the Three
Months Ended
December 31,
|
|
For the Twelve
Months Ended
December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Segment Results –
Net sales
|
|
|
|
|
|
|
|
Beverage
Concentrates
|
$
|
332
|
|
|
$
|
318
|
|
|
$
|
1,284
|
|
|
$
|
1,241
|
|
Packaged
Beverages
|
1,138
|
|
|
1,110
|
|
|
4,696
|
|
|
4,544
|
|
Latin America
Beverages
|
108
|
|
|
118
|
|
|
460
|
|
|
497
|
|
Net
sales
|
$
|
1,578
|
|
|
$
|
1,546
|
|
|
$
|
6,440
|
|
|
$
|
6,282
|
|
|
|
For the Three
Months Ended
December 31,
|
|
For the Twelve
Months Ended
December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Segment Results –
SOP
|
|
|
|
|
|
|
|
Beverage
Concentrates
|
$
|
212
|
|
|
$
|
198
|
|
|
$
|
834
|
|
|
$
|
807
|
|
Packaged
Beverages
|
179
|
|
|
184
|
|
|
771
|
|
|
709
|
|
Latin America
Beverages
|
18
|
|
|
20
|
|
|
78
|
|
|
88
|
|
Total SOP
|
409
|
|
|
402
|
|
|
1,683
|
|
|
1,604
|
|
Unallocated corporate
costs
|
73
|
|
|
75
|
|
|
253
|
|
|
299
|
|
Other operating
(income) expense, net
|
1
|
|
|
5
|
|
|
(3)
|
|
|
7
|
|
Income from
operations
|
335
|
|
|
322
|
|
|
1,433
|
|
|
1,298
|
|
Interest expense,
net
|
47
|
|
|
33
|
|
|
144
|
|
|
115
|
|
Loss on early
extinguishment of debt
|
31
|
|
|
—
|
|
|
31
|
|
|
—
|
|
Other income,
net
|
—
|
|
|
(2)
|
|
|
(25)
|
|
|
(1)
|
|
Income before
provision for income taxes and
equity in (loss) earnings of unconsolidated
subsidiaries
|
$
|
257
|
|
|
$
|
291
|
|
|
$
|
1,283
|
|
|
$
|
1,184
|
|
|
A-4
|
DR PEPPER SNAPPLE GROUP,
INC.
RECONCILIATION OF GAAP AND NON-GAAP
INFORMATION
(Unaudited)
The company reports its financial results in accordance with
U.S. GAAP. However, management believes that certain non-GAAP
measures that reflect the way management evaluates the business may
provide investors with additional information regarding the
company's results, trends and ongoing performance on a comparable
basis. Specifically, investors should consider the following with
respect to our quarterly results:
Net sales and Segment Operating Profit, as adjusted to
currency neutral: Net sales and Segment Operating Profit are
calculated on a currency neutral basis by converting our
current-period local currency financial results using the
prior-period foreign currency exchange rates.
Free Cash Flow: Free cash flow is defined as net cash
provided by operating activities adjusted for capital spending and
certain items excluded for comparison to prior year periods. For
the twelve months ended December 31,
2016 and 2015, there were no such items excluded for
comparison to prior year periods.
Core Earnings: Core earnings is defined as net income
adjusted for the unrealized mark-to-market impact of commodity
derivatives and interest rate derivatives not designated as hedges
in accordance with U.S. GAAP and certain items that are excluded
for comparison to prior year periods.
The certain items excluded for the three months ended
December 31, 2016, are (i) the loss
on early extinguishment of debt related to the redemption of a
portion of our 2018 Notes and (ii) acquisition costs related to the
Bai Brands Merger. The certain items excluded for the twelve months
ended December 31, 2016, are (i) a
gain on the extinguishment of a multi-employer withdrawal
liability, (ii) an income tax benefit driven by a restructuring of
the ownership of our Canadian business, (iii) the loss on early
extinguishment of debt related to the redemption of a portion of
our 2018 Notes and (iv) acquisition costs related to the Bai Brands
Merger.
The certain item excluded for the three months ended
December 31, 2015, is a non-cash
brand impairment charge for Garden Cocktail. The certain items
excluded for the twelve months ended December 31, 2015, are (i) a non-cash brand
impairment charge for Garden Cocktail and (ii) an adjustment to a
previously disclosed legal provision.
Currency Neutral Core: Core earnings are calculated on a
currency neutral basis by converting our current-period local
currency financial results using the prior-period foreign currency
exchange rates.
The tables on the following pages provide these
reconciliations.
A-5
RECONCILIATION OF
NET SALES AND SOP
|
AS REPORTED TO AS
ADJUSTED TO CURRENCY NEUTRAL
|
(Unaudited)
|
|
|
|
For the Three
Months Ended December 31, 2016
|
|
|
Beverage
|
|
Packaged
|
|
Latin
America
|
|
|
Percent
change
|
|
Concentrates
|
|
Beverages
|
|
Beverages
|
|
Total
|
Reported net
sales
|
|
4
|
%
|
|
3
|
%
|
|
(8)
|
%
|
|
2
|
%
|
Impact of foreign
currency
|
|
—
|
%
|
|
—
|
%
|
|
14
|
%
|
|
1
|
%
|
Net sales, as
adjusted to currency neutral
|
|
4
|
%
|
|
3
|
%
|
|
6
|
%
|
|
3
|
%
|
|
|
|
|
|
For the Three
Months Ended December 31, 2016
|
|
|
Beverage
|
|
Packaged
|
|
Latin
America
|
|
|
Percent
change
|
|
Concentrates
|
|
Beverages
|
|
Beverages
|
|
Total
|
Reported
SOP
|
|
7
|
%
|
|
(3)
|
%
|
|
(10)
|
%
|
|
2
|
%
|
Impact of foreign
currency
|
|
—
|
%
|
|
—
|
%
|
|
10
|
%
|
|
—
|
%
|
SOP, as adjusted
to currency neutral
|
|
7
|
%
|
|
(3)
|
%
|
|
—
|
%
|
|
2
|
%
|
|
|
|
|
|
For the Twelve
Months Ended December 31, 2016
|
|
|
Beverage
|
|
Packaged
|
|
Latin
America
|
|
|
Percent
change
|
|
Concentrates
|
|
Beverages
|
|
Beverages
|
|
Total
|
Reported net
sales
|
|
3
|
%
|
|
3
|
%
|
|
(7)
|
%
|
|
3
|
%
|
Impact of foreign
currency
|
|
1
|
%
|
|
—
|
%
|
|
14
|
%
|
|
1
|
%
|
Net sales, as
adjusted to currency neutral
|
|
4
|
%
|
|
3
|
%
|
|
7
|
%
|
|
4
|
%
|
|
|
|
|
|
For the Twelve
Months Ended December 31, 2016
|
|
|
Beverage
|
|
Packaged
|
|
Latin
America
|
|
|
Percent
change
|
|
Concentrates
|
|
Beverages
|
|
Beverages
|
|
Total
|
Reported
SOP
|
|
3
|
%
|
|
9
|
%
|
|
(11)
|
%
|
|
5
|
%
|
Impact of foreign
currency
|
|
1
|
%
|
|
—
|
%
|
|
11
|
%
|
|
1
|
%
|
SOP, as adjusted
to currency neutral
|
|
4
|
%
|
|
9
|
%
|
|
—
|
%
|
|
6
|
%
|
RECONCILIATION OF
NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH
FLOW
|
(Unaudited, in
millions)
|
|
|
|
For
the
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
December
31,
|
|
|
|
|
2016
|
|
2015
|
|
Change
|
Net cash provided
by operating activities
|
|
$
|
939
|
|
|
$
|
991
|
|
|
$
|
(52)
|
|
Purchase of property,
plant and equipment
|
|
(180)
|
|
|
(179)
|
|
|
|
Free Cash
Flow
|
|
$
|
759
|
|
|
$
|
812
|
|
|
$
|
(53)
|
|
|
A-6
|
RECONCILIATION OF
NET INCOME TO CORE EARNINGS
|
(Unaudited, in
millions, except per share data)
|
|
|
For the Three
Months Ended December 31, 2016
|
|
Reported
|
|
Mark to
Market
|
|
Extinguishment
Loss - Debt
|
|
BAI
Acquisition
Costs
|
|
Total
Adjustments
|
|
Core
|
|
FX
Translation
|
|
Currency
Neutral
Core
|
Net sales
|
$
|
1,578
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,578
|
|
|
$
|
17
|
|
|
$
|
1,595
|
|
Cost of
sales
|
627
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
627
|
|
|
8
|
|
|
635
|
|
Gross
profit
|
951
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
951
|
|
|
9
|
|
|
960
|
|
Selling, general and
administrative expenses
|
590
|
|
|
11
|
|
|
—
|
|
|
(3)
|
|
|
8
|
|
|
598
|
|
|
6
|
|
|
604
|
|
Depreciation and
amortization
|
25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|
—
|
|
|
25
|
|
Other operating
(income) expense, net
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
Income from
operations
|
335
|
|
|
(11)
|
|
|
—
|
|
|
3
|
|
|
(8)
|
|
|
327
|
|
|
3
|
|
|
330
|
|
Interest
expense
|
48
|
|
|
(12)
|
|
|
—
|
|
|
(5)
|
|
|
(17)
|
|
|
31
|
|
|
—
|
|
|
31
|
|
Interest
income
|
(1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
(1)
|
|
Loss on early
extinguishment of debt
|
31
|
|
|
—
|
|
|
(31)
|
|
|
—
|
|
|
(31)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other income,
net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
Income before
provision for income taxes and equity in (loss) earnings of
unconsolidated subsidiaries
|
257
|
|
|
1
|
|
|
31
|
|
|
8
|
|
|
40
|
|
|
297
|
|
|
2
|
|
|
299
|
|
Provision for income
taxes
|
91
|
|
|
—
|
|
|
10
|
|
|
3
|
|
|
13
|
|
|
104
|
|
|
1
|
|
|
105
|
|
Income before equity
in (loss) earnings of unconsolidated subsidiaries
|
166
|
|
|
1
|
|
|
21
|
|
|
5
|
|
|
27
|
|
|
193
|
|
|
1
|
|
|
194
|
|
Equity in (loss)
earnings of unconsolidated subsidiaries, net of tax
|
(1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
(1)
|
|
Net income
|
165
|
|
|
1
|
|
|
21
|
|
|
5
|
|
|
27
|
|
|
192
|
|
|
1
|
|
|
193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share
|
$
|
0.90
|
|
|
$
|
—
|
|
|
$
|
0.11
|
|
|
$
|
0.03
|
|
|
$
|
0.14
|
|
|
$
|
1.04
|
|
|
$
|
0.01
|
|
|
$
|
1.05
|
|
Effective tax
rate
|
35.4
|
%
|
|
|
|
|
|
|
|
|
|
35.0
|
%
|
|
|
|
35.1
|
%
|
Operating
margin
|
21.2
|
%
|
|
|
|
|
|
|
|
|
|
20.7
|
%
|
|
|
|
20.7
|
%
|
|
A-7
|
RECONCILIATION OF
NET INCOME TO CORE EARNINGS - (Continued)
|
(Unaudited, in
millions, except per share data)
|
|
|
For the Three
Months Ended December 31, 2015
|
|
Reported
|
|
Mark to
Market
|
|
Brand
Impairment
|
|
Total
Adjustments
|
|
Core
|
Net sales
|
$
|
1,546
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,546
|
|
Cost of
sales
|
610
|
|
|
(2)
|
|
|
—
|
|
|
(2)
|
|
|
608
|
|
Gross
profit
|
936
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
938
|
|
Selling, general and
administrative expenses
|
583
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
585
|
|
Depreciation and
amortization
|
26
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26
|
|
Other operating
(income) expense, net
|
5
|
|
|
—
|
|
|
(7)
|
|
|
(7)
|
|
|
(2)
|
|
Income from
operations
|
322
|
|
|
—
|
|
|
7
|
|
|
7
|
|
|
329
|
|
Interest
expense
|
34
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34
|
|
Interest
income
|
(1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
Other income,
net
|
(2)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2)
|
|
Income before
provision for income taxes and equity in (loss) earnings of
unconsolidated subsidiaries
|
291
|
|
|
—
|
|
|
7
|
|
|
7
|
|
|
298
|
|
Provision for income
taxes
|
106
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
108
|
|
Income before equity
in (loss) earnings of unconsolidated subsidiaries
|
185
|
|
|
—
|
|
|
5
|
|
|
5
|
|
|
190
|
|
Equity in (loss)
earnings of unconsolidated subsidiaries, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net income
|
185
|
|
|
—
|
|
|
5
|
|
|
5
|
|
|
190
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share
|
$
|
0.97
|
|
|
$
|
—
|
|
|
$
|
0.03
|
|
|
$
|
0.03
|
|
|
$
|
1.00
|
|
Effective tax
rate
|
36.4
|
%
|
|
|
|
|
|
|
|
36.2
|
%
|
Operating
margin
|
20.8
|
%
|
|
|
|
|
|
|
|
21.3
|
%
|
|
A-8
|
RECONCILIATION OF
NET INCOME TO CORE EARNINGS - (Continued)
|
(Unaudited, in
millions, except per share data)
|
|
|
For the Twelve
Months Ended December 31, 2016
|
|
Reported
|
|
Mark to
Market
|
|
Extinguishment
Gain - Multi-Employer
|
|
Legal Entity
Restructuring
|
|
Extinguishment
Loss - Debt
|
|
BAI Acquisition
Costs
|
|
Total
Adjustments
|
|
Core
|
|
FX
Translation
|
|
Currency Neutral
Core
|
Net sales
|
$
|
6,440
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,440
|
|
|
$
|
79
|
|
|
$
|
6,519
|
|
Cost of
sales
|
2,582
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
2,603
|
|
|
38
|
|
|
2,641
|
|
Gross
profit
|
3,858
|
|
|
(21)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(21)
|
|
|
3,837
|
|
|
41
|
|
|
3,878
|
|
Selling, general and
administrative expenses
|
2,329
|
|
|
31
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3)
|
|
|
28
|
|
|
2,357
|
|
|
28
|
|
|
2,385
|
|
Depreciation and
amortization
|
99
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
99
|
|
|
1
|
|
|
100
|
|
Other operating
(income) expense, net
|
(3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3)
|
|
|
—
|
|
|
(3)
|
|
Income from
operations
|
1,433
|
|
|
(52)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
(49)
|
|
|
1,384
|
|
|
12
|
|
|
1,396
|
|
Interest
expense
|
147
|
|
|
(12)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5)
|
|
|
(17)
|
|
|
130
|
|
|
—
|
|
|
130
|
|
Interest
income
|
(3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3)
|
|
|
—
|
|
|
(3)
|
|
Loss on early
extinguishment of debt
|
31
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(31)
|
|
|
—
|
|
|
(31)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other income,
net
|
(25)
|
|
|
—
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
(4)
|
|
|
1
|
|
|
(3)
|
|
Income before
provision for income taxes and equity in (loss) earnings of
unconsolidated subsidiaries
|
1,283
|
|
|
(40)
|
|
|
(21)
|
|
|
—
|
|
|
31
|
|
|
8
|
|
|
(22)
|
|
|
1,261
|
|
|
11
|
|
|
1,272
|
|
Provision for income
taxes
|
434
|
|
|
(15)
|
|
|
(9)
|
|
|
17
|
|
|
10
|
|
|
3
|
|
|
6
|
|
|
440
|
|
|
3
|
|
|
443
|
|
Income before equity
in (loss) earnings of unconsolidated subsidiaries
|
849
|
|
|
(25)
|
|
|
(12)
|
|
|
(17)
|
|
|
21
|
|
|
5
|
|
|
(28)
|
|
|
821
|
|
|
8
|
|
|
829
|
|
Equity in (loss)
earnings of unconsolidated subsidiaries, net of tax
|
(2)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2)
|
|
|
—
|
|
|
(2)
|
|
Net income
|
847
|
|
|
(25)
|
|
|
(12)
|
|
|
(17)
|
|
|
21
|
|
|
5
|
|
|
(28)
|
|
|
819
|
|
|
8
|
|
|
827
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share
|
$
|
4.54
|
|
|
$
|
(0.13)
|
|
|
$
|
(0.07)
|
|
|
$
|
(0.09)
|
|
|
$
|
0.11
|
|
|
$
|
0.03
|
|
|
(0.15)
|
|
|
$
|
4.39
|
|
|
$
|
0.04
|
|
|
$
|
4.43
|
|
Effective tax
rate
|
33.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
34.9
|
%
|
|
|
|
34.8
|
%
|
Operating
margin
|
22.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21.5
|
%
|
|
|
|
21.4
|
%
|
|
A-9
|
RECONCILIATION OF
NET INCOME TO CORE EARNINGS - (Continued)
|
(Unaudited, in
millions, except per share data)
|
|
|
For the Twelve
Months Ended December 31, 2015
|
|
Reported
|
|
Mark to
Market
|
|
Litigation
Provision
|
|
Brand
Impairment
|
|
Total
Adjustments
|
|
Core
|
Net sales
|
$
|
6,282
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,282
|
|
Cost of
sales
|
2,559
|
|
|
(13)
|
|
|
—
|
|
|
—
|
|
|
(13)
|
|
|
2,546
|
|
Gross
profit
|
3,723
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
3,736
|
|
Selling, general and
administrative expenses
|
2,313
|
|
|
8
|
|
|
(2)
|
|
|
—
|
|
|
6
|
|
|
2,319
|
|
Depreciation and
amortization
|
105
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
105
|
|
Other operating
(income) expense, net
|
7
|
|
|
—
|
|
|
—
|
|
|
(7)
|
|
|
(7)
|
|
|
—
|
|
Income from
operations
|
1,298
|
|
|
5
|
|
|
2
|
|
|
7
|
|
|
14
|
|
|
1,312
|
|
Interest
expense
|
117
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
117
|
|
Interest
income
|
(2)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2)
|
|
Other income,
net
|
(1)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1)
|
|
Income before
provision for income taxes and equity in (loss) earnings of
unconsolidated subsidiaries
|
1,184
|
|
|
5
|
|
|
2
|
|
|
7
|
|
|
14
|
|
|
1,198
|
|
Provision for income
taxes
|
420
|
|
|
2
|
|
|
1
|
|
|
2
|
|
|
5
|
|
|
425
|
|
Income before equity
in (loss) earnings of unconsolidated subsidiaries
|
764
|
|
|
3
|
|
|
1
|
|
|
5
|
|
|
9
|
|
|
773
|
|
Equity in (loss)
earnings of unconsolidated subsidiaries, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net income
|
$
|
764
|
|
|
$
|
3
|
|
|
$
|
1
|
|
|
$
|
5
|
|
|
$
|
9
|
|
|
$
|
773
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share
|
$
|
3.97
|
|
|
$
|
0.02
|
|
|
$
|
0.01
|
|
|
$
|
0.02
|
|
|
$
|
0.05
|
|
|
$
|
4.02
|
|
Effective tax
rate
|
35.5
|
%
|
|
|
|
|
|
|
|
|
|
35.5
|
%
|
Operating
margin
|
20.7
|
%
|
|
|
|
|
|
|
|
|
|
20.9
|
%
|
|
A-10
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/dr-pepper-snapple-group-reports-fourth-quarter-and-full-year-2016-results-300406641.html
SOURCE Dr Pepper Snapple Group, Inc.