Page 83 - DPSG 2011 Annual Report

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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
63
The following table sets forth exchange rate information for the periods and currencies indicated:
Mexican Peso to U.S. Dollar Exchange Rate
2011
2010
2009
End of Year
Rates
13.95
12.35
13.07
Annual
Average Rates
12.43
12.63
13.61
Canadian Dollar to U.S. Dollar Exchange Rate
2011
2010
2009
End of Year
Rates
1.02
1.00
1.05
Annual
Average Rates
0.99
1.03
1.15
Differences on exchange 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 accumulated other comprehensive income. The exchange differences arising from the
translation of foreign results from the average rate to the closing 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 and amounted to $8 million, $14 million and $19 million during the years ended December 31,
2011, 2010 and 2009, respectively.
Recently Issued Accounting Standards
In May 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2011-04,
Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs
("ASU
2011-04"). The amendments in ASU 2011-04 change the wording used to describe many of the requirements in U.S. GAAP for
measuring fair value and for disclosing information about fair value measurements. ASU 2011-04 is effective during interim and
annual periods beginning after December 15, 2011. 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, 2012. 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 June and December 2011, the FASB issued ASU2011-05 and ASU2011-12,
Presentation of Comprehensive Income
("ASU
2011-05" and "ASU 2011-12"). ASU 2011-05 requires registrants to present the total of comprehensive income, the components
of net income, and the components of other comprehensive income ("OCI") either in a single continuous statement of comprehensive
income or in two separate but consecutive statements. ASU 2011-12 defers the ASU 2011-05 requirement for registrants to present
on the face of the financial statements reclassification adjustments for items that are reclassified from other comprehensive income
to net income in the statements where the components of net income and the components of other comprehensive income are
presented. ASU 2011-05 and ASU 2011-12 are effective for fiscal years, and interim periods within those years, beginning after
December 15, 2011. The Company will present comprehensive income in two separate but consecutive statements beginning with
the Company's Quarterly Report on Form 10-Q for the period ending March 31, 2012. As the new standard does not change the
items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified
to net income, the Company's financial position, results of operations or cash flows will not be impacted.
In September 2011, the FASB issued ASU 2011-08,
Intangibles—Goodwill and Other: Testing Goodwill for Impairment
("ASU 2011-08"). The intent of ASU 2011-08 is to simplify how registrants test goodwill for impairment. ASU 2011-08 permits
registrants to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit
is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment
test included in U.S. GAAP. A registrant would not be required to calculate the fair value of a reporting unit unless the registrant
determines that it is more likely than not that its fair value is less than its carrying amount. ASU 2011-08 is effective for annual
and interim goodwill impairment tests performed for years beginning after December 15, 2011. Early adoption is permitted.
Management will adopt this guidance for its annual and interim goodwill impairment testing during 2012.