Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 19, 2016 | Jun. 30, 2015 | |
DEI [Abstract] | |||
Entity Registrant Name | Dr Pepper Snapple Group, Inc. | ||
Entity Central Index Key | 1,418,135 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 11,403,612,484 | ||
Entity Common Stock, Shares Outstanding | 187,349,988 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||||||||||
Net sales | $ 1,546 | $ 1,630 | $ 1,655 | $ 1,451 | $ 1,509 | $ 1,583 | $ 1,631 | $ 1,398 | $ 6,282 | $ 6,121 | $ 5,997 |
Cost of sales | 2,559 | 2,491 | 2,499 | ||||||||
Gross profit | 936 | 957 | 981 | 849 | 895 | 925 | 966 | 844 | 3,723 | 3,630 | 3,498 |
Selling, general and administrative expenses | 2,313 | 2,334 | 2,272 | ||||||||
Multi-employer pension plan withdrawal | 0 | 0 | 56 | ||||||||
Depreciation and amortization | 105 | 115 | 115 | ||||||||
Other operating expense, net | 7 | 1 | 9 | ||||||||
Income from operations | 1,298 | 1,180 | 1,046 | ||||||||
Interest expense | 117 | 109 | 123 | ||||||||
Interest income | (2) | (2) | (2) | ||||||||
Other (income) expense, net | (1) | 0 | 383 | ||||||||
Income before provision (benefit) for income taxes and equity in earnings of unconsolidated subsidiaries | 1,184 | 1,073 | 542 | ||||||||
Provision (benefit) for income taxes | 420 | 371 | (81) | ||||||||
Income before equity in earnings of unconsolidated subsidiaries | 764 | 702 | 623 | ||||||||
Equity in earnings of unconsolidated subsidiaries, net of tax | 0 | 1 | 1 | ||||||||
Net income | $ 185 | $ 202 | $ 220 | $ 157 | $ 150 | $ 188 | $ 210 | $ 155 | $ 764 | $ 703 | $ 624 |
Earnings per common share: | |||||||||||
Basic | $ 0.98 | $ 1.06 | $ 1.15 | $ 0.82 | $ 0.77 | $ 0.97 | $ 1.07 | $ 0.78 | $ 4 | $ 3.59 | $ 3.08 |
Diluted | $ 0.97 | $ 1.05 | $ 1.14 | $ 0.81 | $ 0.77 | $ 0.96 | $ 1.06 | $ 0.78 | $ 3.97 | $ 3.56 | $ 3.05 |
Weighted average common shares outstanding: | |||||||||||
Basic | 188.7 | 190.4 | 191.4 | 193 | 194 | 194.8 | 196.6 | 197.9 | 190.9 | 195.8 | 202.9 |
Diluted | 190.2 | 191.5 | 192.4 | 194.6 | 195.8 | 196.2 | 197.8 | 199.5 | 192.4 | 197.4 | 204.5 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net income | $ 185 | $ 202 | $ 220 | $ 157 | $ 150 | $ 188 | $ 210 | $ 155 | $ 764 | $ 703 | $ 624 |
Foreign currency translation adjustments | (64) | (44) | |||||||||
Net change in pension liability, net of tax | 4 | (7) | |||||||||
Net change in cash flow hedges, net of tax | 2 | 2 | |||||||||
Total other comprehensive income (loss), net of tax | (58) | (49) | 22 | ||||||||
Comprehensive income | $ 706 | $ 654 | $ 646 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Pension liability tax (benefit) expense | $ 1 | $ (4) | $ 12 |
Cashflow hedge tax (benefit) expense | $ 1 | $ 1 | $ 4 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 911 | $ 237 |
Accounts receivable: | ||
Trade, net | 570 | 556 |
Other | 58 | 61 |
Inventories | 209 | 204 |
Deferred tax assets | 0 | 67 |
Prepaid expenses and other current assets | 69 | 86 |
Total current assets | 1,817 | 1,211 |
Property, plant and equipment, net | 1,156 | 1,141 |
Investments in unconsolidated subsidiaries | 31 | 14 |
Goodwill | 2,988 | 2,990 |
Other intangible assets, net | 2,663 | 2,684 |
Other non-current assets | 150 | 151 |
Non-current deferred tax assets | 64 | 74 |
Total assets | 8,869 | 8,265 |
Current liabilities: | ||
Accounts payable | 277 | 289 |
Deferred revenue | 64 | 64 |
Short-term borrowings and current portion of long-term obligations | 507 | 3 |
Income taxes payable | 27 | 10 |
Other current liabilities | 708 | 672 |
Total current liabilities | 1,583 | 1,038 |
Long-term obligations | 2,875 | 2,580 |
Non-current deferred tax liabilities | 787 | 801 |
Non-current deferred revenue | 1,181 | 1,250 |
Other non-current liabilities | 260 | 302 |
Total liabilities | $ 6,686 | $ 5,971 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 15,000,000 shares authorized, no shares issued | $ 0 | $ 0 |
Common stock, $0.01 par value, 800,000,000 shares authorized, 187,841,509 and 192,957,696 shares issued and outstanding for 2015 and 2014, respectively | 2 | 2 |
Additional paid-in capital | 211 | 658 |
Retained earnings | 2,165 | 1,771 |
Accumulated other comprehensive loss | (195) | (137) |
Total stockholders' equity | 2,183 | 2,294 |
Total liabilities and stockholders' equity | $ 8,869 | $ 8,265 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Stockholders' equity: | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 15,000,000 | 15,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 800,000,000 | 800,000,000 |
Common stock, shares issued | 187,841,509 | 192,957,696 |
Common stock, shares outstanding | 187,841,509 | 192,957,696 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities: | |||
Net income | $ 764 | $ 703 | $ 624 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation expense | 192 | 199 | 196 |
Amortization expense | 35 | 36 | 38 |
Amortization of deferred revenue | (64) | (65) | (65) |
Impairment of intangible asset | 7 | 0 | 0 |
Employee stock-based compensation expense | 44 | 48 | 37 |
Deferred income taxes | 29 | 43 | 138 |
Other, net | (10) | 21 | 35 |
Changes in assets and liabilities, net of effects of acquisition: | |||
Trade accounts receivable | (26) | 0 | (13) |
Other accounts receivable | 1 | (5) | (9) |
Inventories | (11) | (8) | (3) |
Other current and non-current assets | 8 | (25) | 456 |
Other current and non-current liabilities | (11) | 58 | (556) |
Trade accounts payable | (9) | 29 | (6) |
Income taxes payable | 42 | (12) | (6) |
Net cash provided by operating activities | 991 | 1,022 | 866 |
Investing activities: | |||
Acquisition of business | 0 | (19) | (10) |
Purchase of property, plant and equipment | (179) | (170) | (179) |
Purchase of intangible assets | (1) | (1) | (5) |
Investments in unconsolidated subsidiaries | (20) | 0 | 0 |
Purchase of cost method investments | (15) | 0 | 0 |
Proceeds from disposals of property, plant and equipment | 20 | 8 | 1 |
Other, net | 1 | (3) | (2) |
Net cash used in investing activities | (194) | (185) | (195) |
Financing activities: | |||
Proceeds from issuance of senior unsecured notes | 750 | 0 | 0 |
Repayment of senior unsecured notes | 0 | 0 | (250) |
Proceeds from (Repayments of) Commercial Paper | 0 | (65) | 65 |
Repurchase of shares of common stock | (521) | (400) | (400) |
Dividends paid | (355) | (317) | (302) |
Tax withholdings related to net share settlements of certain stock awards | (27) | (16) | (13) |
Proceeds from stock options exercised | 30 | 41 | 15 |
Excess tax benefit on stock-based compensation | 23 | 11 | 6 |
Deferred financing charges paid | (6) | 0 | 0 |
Capital lease payments | (5) | (1) | (1) |
Other, net | (3) | 0 | 0 |
Net cash used in financing activities | (114) | (747) | (880) |
Cash and cash equivalents - net change from: | |||
Operating, investing and financing activities | 683 | 90 | (209) |
Effect of exchange rate changes on cash and cash equivalents | (9) | (6) | (4) |
Cash and cash equivalents at beginning of year | 237 | 153 | 366 |
Cash and cash equivalents at end of year | $ 911 | $ 237 | $ 153 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Total Equity [Member] |
Shares issued at beginning of period at Dec. 31, 2012 | 205.3 | |||||
Total equity at beginning of period at Dec. 31, 2012 | $ 2 | $ 1,308 | $ 1,080 | $ (110) | $ 2,280 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued under employee stock-based compensation plans and other | 1.1 | |||||
Stock Issued During Period, Shares, Acquisitions | 0.3 | |||||
Stock issued for acquisition of business | $ 13 | 13 | 13 | |||
Net income | 624 | 624 | 624 | |||
Other Comprehensive Income (Loss), Net of Tax | 22 | 22 | 22 | |||
Value of dividend equivalent units declared | 4 | |||||
Dividends declared, cash | (311) | (307) | ||||
Stock options exercised and stock-based compensation expense, net of tax | 45 | 45 | ||||
Common stock repurchases, shares | (8.7) | |||||
Common stock repurchases, value | (400) | (400) | ||||
Shares issued at end of period at Dec. 31, 2013 | 198 | |||||
Total equity at end of period at Dec. 31, 2013 | $ 2 | 970 | 1,393 | (88) | 2,277 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued under employee stock-based compensation plans and other | 1.8 | |||||
Stock issued for acquisition of business | 0 | |||||
Net income | 703 | 703 | 703 | |||
Other Comprehensive Income (Loss), Net of Tax | (49) | (49) | (49) | |||
Value of dividend equivalent units declared | 4 | |||||
Dividends declared, cash | (325) | (321) | ||||
Stock options exercised and stock-based compensation expense, net of tax | 84 | 84 | ||||
Common stock repurchases, shares | (6.8) | |||||
Common stock repurchases, value | (400) | (400) | ||||
Shares issued at end of period at Dec. 31, 2014 | 193 | |||||
Total equity at end of period at Dec. 31, 2014 | 2,294 | $ 2 | 658 | 1,771 | (137) | 2,294 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued under employee stock-based compensation plans and other | 1.4 | |||||
Stock issued for acquisition of business | 0 | |||||
Net income | 764 | 764 | 764 | |||
Other Comprehensive Income (Loss), Net of Tax | (58) | (58) | (58) | |||
Value of dividend equivalent units declared | 4 | |||||
Dividends declared, cash | (370) | (366) | ||||
Stock options exercised and stock-based compensation expense, net of tax | 70 | 70 | ||||
Common stock repurchases, shares | (6.5) | |||||
Common stock repurchases, value | (521) | (521) | ||||
Shares issued at end of period at Dec. 31, 2015 | 187.9 | |||||
Total equity at end of period at Dec. 31, 2015 | $ 2,183 | $ 2 | $ 211 | $ 2,165 | $ (195) | $ 2,183 |
Consolidated Statements of Cha9
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per share | $ 1.92 | $ 1.64 | $ 1.52 |
Stock options and stock-based compensation tax benefit | $ (23) | $ (11) | $ (6) |
Business and Basis of Presentat
Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | Business and Basis of Presentation References in the Notes to Audited Consolidated Financial Statements to " DPS " or "the Company " refer to Dr Pepper Snapple Group, Inc. and all entities included in the Audited Consolidated Financial Statements . Cadbury plc and Cadbury Schweppes plc are hereafter collectively referred to as " Cadbury " unless otherwise indicated. Kraft Foods Inc. acquired Cadbury on February 2, 2010 and on October 1, 2012, Kraft Foods Inc. spun-off its North American grocery business to its shareholders and changed its name to Mondelēz International, Inc. (" Mondelēz "). The Notes to Audited Consolidated Financial Statements refer to some of DPS ' owned or licensed trademarks, trade names and service marks, which are referred to as the Company 's brands. All of the product names included herein are either DPS ' registered trademarks or those of the Company 's licensors. Nature of Operations DPS is a leading integrated brand owner, manufacturer and distributor of non-alcoholic beverages in the United States (" U.S. "), Mexico and Canada with a diverse portfolio of flavored (non-cola) carbonated soft drinks (" CSD s") and non-carbonated beverages (" NCB s"), including ready-to-drink teas, juices, juice drinks, mixers and water. The Company's brand portfolio includes popular CSD brands such as Dr Pepper, Canada Dry, Peñafiel, Squirt, 7UP, Crush, A&W, Sunkist soda and Schweppes, and NCB brands such as Snapple, Hawaiian Punch, Mott's and Clamato. The Company was incorporated in Delaware on October 24, 2007. In 2008, Cadbury separated its beverage business in the U.S. , Canada, Mexico and the Caribbean (the " Americas Beverages business ") from its global confectionery business by contributing the subsidiaries that operated its Americas Beverages business to the Company. Principles of Consolidation DPS consolidates all wholly-owned subsidiaries. Investments in entities in which DPS does not have a controlling financial interest are accounted for under either the equity method or cost method of accounting, as appropriate. Judgment regarding the level of influence over each equity method or cost method investment includes considering key factors such as ownership interest, representation on the board of directors, participation in policy-making decisions and material intercompany transactions. The Company is also required to consolidate entities that are variable interest entities (“ VIE s”) of which DPS is the primary beneficiary. Judgments are made in assessing whether the Company is the primary beneficiary, including determination of the activities that most significantly impact the VIE ’s economic performance. During the year ended December 31, 2014, the Company provided 100% financing to a VIE as part of a short term leasing structure for which DPS is the primary beneficiary. As a result, DPS consolidated that entity. The Company ’s financing of the VIE , which totaled $21 million as of December 31, 2014, included a transfer of cash and assignment of the rights to deposits previously made with a manufacturer in prior years. The Company 's financing of the VIE , which eliminates in consolidation, was used by the VIE to purchase certain property, plant and equipment. During the year ended December 31, 2015 , the leasing arrangement with the VIE was terminated through the Company assuming ownership of the property, plant and equipment purchased by the VIE as repayment of the $21 million financed by the Company . No gain or loss was recorded as a result of the termination. The Company eliminates from its financial results all intercompany transactions between entities included in the consolidated financial statements and the intercompany transactions with its equity method investees. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (" U.S. GAAP "). In the opinion of management, all adjustments, consisting principally of normal recurring adjustments, considered necessary for a fair presentation have been included. Reclassifications Reclassifications have been made to the prior year Consolidated Balance Sheets to conform with the current year presentation. The Company early adopted Accounting Standards Update (" ASU ") 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, requiring that issuance costs related to a long-term debt issuance be presented as a direct deduction from the carrying amount of that debt. In prior years, we presented unamortized debt issuance costs as current and non-current other assets. With the adoption of the new pronouncement, unamortized debt issuance costs associated with outstanding long-term debt have been classified as a reduction of the carrying value of long-term debt as of December 31, 2015 and 2014 . For further information on the impact to our presentation of our long-term debt, see Note 9 to the Audited Consolidated Financial Statements . Capital lease payments have been reclassified from other, net to capital lease payments caption within the financing activities section in the Consolidated Statements of Cash Flows for prior years to conform to the current year's presentation with no impact to total cash provided by (used in) operating, investing or financing activities. The reclassification to the Consolidated Statements of Cash Flows also resulted in corresponding changes to prior years presentation in Note 23. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Significant Accounting Policies Use of Estimates The process of preparing DPS ' consolidated financial statements in conformity with U.S. GAAP requires the use of estimates and judgments that affect the reported amount of assets, liabilities, revenue and expenses. These estimates and judgments are based on historical experience, future expectations and other factors and assumptions the Company believes to be reasonable under the circumstances. These estimates and judgments are reviewed on an ongoing basis and are revised when necessary. Changes in estimates are recorded in the period of change. Actual amounts may differ from these estimates. Cash and Cash Equivalents Cash and cash equivalents include cash and investments in short-term, highly liquid securities, with original maturities of three months or less. The Company is exposed to potential risks associated with its cash and cash equivalents. DPS places its cash and cash equivalents with high credit quality financial institutions. Deposits with these financial institutions may exceed the amount of insurance provided; however, these deposits typically are redeemable upon demand and, therefore, the Company believes the financial risks associated with these financial instruments are minimal. Trade Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company is exposed to potential credit risks associated with its accounts receivable, as it generally does not require collateral on its accounts receivable. The Company determines the required allowance for doubtful collections using information such as its customer credit history and financial condition, industry and market segment information, economic trends and conditions and credit reports. Allowances can be affected by changes in the industry, customer credit issues or customer bankruptcies. Account balances are charged against the allowance when it is determined that the receivable will not be recovered. The Company has not experienced significant credit-related losses. Activity in the allowance for doubtful accounts during the years ended December 31, 2015, 2014 and 2013 was as follows: (in millions) 2015 2014 2013 Balance, beginning of the year $ 2 $ 3 $ 3 Charges to bad debt expense 2 1 1 Write-offs and adjustments (2 ) (2 ) (1 ) Balance, end of the year $ 2 $ 2 $ 3 As of December 31, 2015 and 2014 , Walmart accounted for approximately $65 million and $67 million of trade receivables, respectively, which exceeded 10% of the Company 's total trade accounts receivable. Inventories Inventories are stated at the lower of cost or market value. Cost is primarily determined for inventories of the Company 's U.S. subsidiaries by the last-in, first-out (" LIFO ") valuation method. The cost for inventories of the Company 's foreign subsidiaries is determined by the first-in, first-out (" FIFO ") valuation method. The costs of finished goods inventories include raw materials, direct labor and indirect production and overhead costs. Reserves for excess and obsolete inventories are based on an assessment of slow-moving and obsolete inventories, determined by historical usage and demand. Excess and obsolete inventory reserves were $2 million as of December 31, 2015 and 2014 . Refer to Note 4 for additional information . Property, Plant and Equipment, Net Property, plant and equipment is stated at cost plus capitalized interest on borrowings during the actual construction period of major capital projects, net of accumulated depreciation. Significant improvements which substantially extend the useful lives of assets are capitalized. The costs of major rebuilds and replacements of plant and equipment are capitalized and expenditures for repairs and maintenance which do not improve or extend the life of the assets are expensed as incurred. The Company capitalizes certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use, which are included in property, plant and equipment. When property, plant and equipment is sold or retired, the costs and the related accumulated depreciation are removed from the accounts, and any net gain or loss is recorded in other operating expense, net in the Consolidated Statements of Income. Refer to Note 5 for additional information . For financial reporting purposes, depreciation is computed on the straight-line method over the estimated useful asset lives as follows: Type of Asset Useful Life Buildings 40 years Building improvements 5 to 35 years Machinery and equipment 3 to 25 years Vehicles 5 to 18 years Cold drink equipment 3 to 7 years Computer software 3 to 8 years Leasehold improvements are depreciated over the shorter of the estimated useful life of the assets or the lease term. Estimated useful lives are periodically reviewed and, when warranted, are updated. The Company periodically reviews long-lived assets for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. In order to assess recoverability, DPS compares the estimated undiscounted future pre-tax cash flows from the use of the asset or group of assets, as defined, to the carrying amount of such assets. Measurement of an impairment loss is based on the excess of the carrying amount of the asset or group of assets over the long-lived asset's fair value. As of December 31, 2015 and 2014 , no analysis was warranted. Investments The Company holds investment securities under the deferred compensation plan, which consist of readily marketable equity securities. Gains or losses from investments classified as trading, if any, are charged to earnings. The Company also holds non-controlling investments in certain privately held entities which are accounted for as equity method or cost method investments. The companies over which we exert significant influence, but do not control the financial and operating decisions, are accounted for as equity method investments. The Company 's proportionate share of the net income (loss) resulting from these investments are reported under the line item captioned equity in earnings of unconsolidated subsidiaries, net of tax, in the Consolidated Statements of Income. The carrying value of our equity method investments is reported in investments in unconsolidated subsidiaries in our Consolidated Balance Sheets. Refer to Note 6 for additional information . Other investments that are not controlled, and over which we do not have the ability to exercise significant influence, are accounted for under the cost method and reported in other non-current assets in our Consolidated Balance Sheets. Refer to Note 11 for additional information . The Company 's equity method investments are reported at cost and adjusted each period for the Company’s share of the investee’s income or loss and dividend paid, if any, while cost method investments are carried at cost. The entities do not have a readily determinable fair value and are periodically evaluated for impairment. An impairment loss would be recorded whenever a decline in value of an investment below its carrying amount is determined to be other than temporary. Goodwill and Other Intangible Assets The Company classifies intangible assets into two categories: (1) intangible assets with definite lives subject to amortization and (2) intangible assets with indefinite lives not subject to amortization. The majority of the Company 's intangible asset balance is made up of brands which the Company has determined to have indefinite useful lives. In arriving at the conclusion that a brand has an indefinite useful life, management reviews factors such as size, diversification and market share of each brand. Management expects to acquire, hold and support brands for an indefinite period through consumer marketing and promotional support. The Company also considers factors such as its ability to continue to protect the legal rights that arise from these brand names indefinitely or the absence of any regulatory, economic or competitive factors that could truncate the life of the brand name. If the criteria are not met to assign an indefinite life, the brand is amortized over its expected useful life. Identifiable intangible assets deemed by the Company to have determinable finite useful lives are amortized on a straight-line basis over their estimated useful lives as follows: Type of Intangible Asset Useful Life Customer relationships 10 years Distribution rights 5 to 15 years DPS conducts tests for impairment in accordance with U.S. GAAP . For intangible assets with definite lives, tests for impairment are performed if conditions exist that indicate the carrying value may not be recoverable. For goodwill and indefinite-lived intangible assets, the Company conducts tests for impairment annually, as of October 1, or more frequently if events or circumstances indicate the carrying amount may not be recoverable. We use present value and other valuation techniques to make this assessment. The tests for impairment include significant judgment in estimating the fair value of reporting units and intangible assets primarily by analyzing forecasts of future revenues and profit performance. Fair value is based on what the reporting units and intangible assets would be worth to a third party market participant. Discount rates are based on a weighted average cost of equity and cost of debt, adjusted with various risk premiums. Management's estimates of fair value, which fall under Level 3, are based on historical and projected operating performance. Refer to Note 7 for additional information . Capitalized Customer Incentive Programs The Company provides support to certain customers to cover various programs and initiatives to increase net sales, including contributions to customers or vendors for cold drink equipment used to market and sell the Company 's products. These programs and initiatives generally directly benefit the Company over a period of time. Accordingly, costs of these programs and initiatives are recorded in prepaid expenses and other current assets and other non-current assets in the Consolidated Balance Sheets. The costs for these programs are amortized over the period to be directly benefited based upon a methodology consistent with the Company 's contractual rights under these arrangements. These programs and initiatives recorded in the current and non-current assets within the Consolidated Balance Sheets were $73 million , net of accumulated amortization, as of December 31, 2015 and 2014 . The amortization charge for the cost of contributions to customers or vendors for cold drink equipment was $4 million , $4 million and $3 million during the years ended December 31, 2015, 2014 and 2013 , respectively, and was recorded in selling, general and administ rative (" SG&A ") expenses in the Consolidated Statements of Income. The amortization charge for the cost of other programs and incentives was $9 million , $13 million and $15 million during the years ended December 31, 2015, 2014 and 2013 , respectively, and was recorded as a deduction from gross sales. Derivatives The Company formally designates and accounts for certain interest rate contracts and foreign exchange forward contracts that meet established accounting criteria under U.S. GAAP as either fair value or cash flow hedges. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instruments is recorded, net of applicable taxes, in Accumulated Other Comprehensive Loss (" AOCL "), a component of Stockholders' Equity in the Consolidated Balance Sheets. When net income is affected by the variability of the underlying transaction, the applicable offsetting amount of the gain or loss from the derivative instrument deferred in AOCL is reclassified to net income and is reported as a component of the Consolidated Statements of Income. For derivative instruments that are designated and qualify as fair value hedges, the effective change in the fair value of the instrument as well as the offsetting gain or loss on the hedged item attributable to the hedged risk, are recognized immediately in current-period earnings. For derivatives that are not designated as a hedging instrument, which creates an economic hedge, or de-designated as a hedging instrument, the gain or loss on the instrument is recognized in earnings in the period of change. Certain interest rate swap agreements qualify for the shortcut method of accounting for hedges under U.S. GAAP . Under the shortcut method, the hedges are assumed to be perfectly effective and no ineffectiveness is recorded in earnings. For all other designated hedges, the Company assesses at the time the derivative contract is entered into, and at least quarterly thereafter, whether the derivative instrument is effective in offsetting the changes in fair value or cash flows. DPS also measures hedge ineffectiveness on a quarterly basis throughout the designated period. For fair value hedges, changes in the fair value of the derivative instrument that do not effectively offset changes in the fair value of the underlying hedged item throughout the designated hedge period are recorded in earnings each period. For cash flow hedges, ineffectiveness, if any, related to the Company's changes in estimates about the forecasted transaction would be recognized directly in earnings during the period incurred. If a fair value or cash flow hedge were to cease to qualify for hedge accounting, or were terminated, it would continue to be carried on the balance sheet at fair value until settled, but hedge accounting would be discontinued prospectively. If the underlying hedged transaction ceases to exist, any associated amounts reported in AOCL are reclassified to earnings at that time. Refer to Note 10 for additional information . Fair Value The fair value of senior unsecured notes and marketable securities as of December 31, 2015 and 2014 are based on quoted market prices for publicly traded securities. The Company estimates fair values of financial instruments measured at fair value in the financial statements on a recurring basis to ensure they are calculated based on market rates to settle the instruments. These values represent the estimated amounts DPS would pay or receive to terminate agreements, taking into consideration current market rates and creditworthiness. The fair value for financial instruments categorized as Level 1 is based on quoted prices in active markets for identical assets or liabilities. The fair value of financial instruments categorized as Level 2 is determined using valuation techniques based on inputs derived from observable market data, quoted market prices for similar instruments or pricing models, such as discounted cash flow techniques. Refer to Note 15 for additional information. Transfers between levels are recognized at the end of each reporting period. Pension and Postretirement Benefits The Company has U.S. and foreign pension and postretirement benefit plans which provide benefits to a defined group of employees who satisfy age and length of service requirements at the discretion of the Company . As of December 31, 2015 , the Company has several stand-alone non-contributory defined benefit plans and postretirement medical plans. Depending on the plan, pension and postretirement benefits are based on a combination of factors, which may include salary, age and years of service. Pension expense has been determined in accordance with the principles of U.S. GAAP . The Company 's policy is to fund pension plans in accordance with the requirements of the Employee Retirement Income Security Act of 1974, as amended. Employee benefit plan obligations and expenses included in the Consolidated Financial Statements are determined from actuarial analyses based on plan assumptions, employee demographic data, years of service, compensation, benefits and claims paid and employer contributions. The expense related to the postretirement plans has been determined in accordance with U.S. GAAP and the Company accrues the cost of these benefits during the years that employees render service. The Company participates in three multi-employer pension plans and makes contributions to those plans, which are recorded in either cost of sales or SG&A expenses. Withdrawal liabilities are recorded once the withdrawal is determined to be probable and estimable. Refer to Note 14 for additional information . Risk Management Programs The Company retains selected levels of property, casualty, workers' compensation, health and other business risks. Many of these risks are covered under conventional insurance programs with high deductibles or self-insured retentions. Accrued liabilities related to the retained casualty and health risks are calculated based on loss experience and development factors, which contemplate a number of variables including claim history and expected trends. As of December 31, 2015 and 2014 , the Company had accrued liabilities related to the retained risks of $117 million and $136 million , respectively, including both other current and long-term liabilities. As of December 31, 2015 and 2014 , the Company recorded receivables of $21 million and $35 million , respectively, for insurance recoveries related to these retained risks. Income Taxes Income taxes are accounted for using the asset and liability approach under U.S. GAAP . This method involves determining the temporary differences between assets and liabilities recognized for financial reporting and the corresponding amounts recognized for tax purposes and computing the tax-related carryforwards at the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The resulting amounts are deferred tax assets or liabilities. The total of taxes currently payable per the tax return, the deferred tax expense or benefit and the impact of uncertain tax positions represents the income tax expense or benefit for the year for financial reporting purposes. The Company periodically assesses the likelihood of realizing its deferred tax assets based on the amount that the Company believes is more likely than not to be realized. The Company bases its judgment of the recoverability of its deferred tax assets primarily on historical earnings, its estimate of current and expected future earnings and prudent and feasible tax planning strategies. Refer to Note 12 for additional information . The Company establishes income tax liabilities to remove some or all of the income tax benefit of any of the Company 's income tax positions at the time DPS determines that the positions become uncertain based upon one of the following: (1) the tax position is not "more likely than not" to be sustained, (2) the tax position is "more likely than not" to be sustained, but for a lesser amount, or (3) the tax position is "more likely than not" to be sustained, but not in the financial period in which the tax position was originally taken. The Company 's evaluation of whether or not a tax position is uncertain is based on the following: (1) DPS presumes the tax position will be examined by the relevant taxing authority such as the Internal Revenue Service (" IRS ") that has full knowledge of all relevant information, (2) the technical merits of a tax position are derived from authorities such as legislation and statutes, legislative intent, regulations, rulings and case law and their applicability to the facts and circumstances of the tax position, and (3) each tax position is evaluated without considerations of the possibility of offset or aggregation with other tax positions taken. The Company adjusts these income tax liabilities when the Company 's judgment changes as a result of new information. Any change will impact income tax expense in the period in which such determination is made. DPS ' effective tax rate may fluctuate on a quarterly and/or annual basis due to various factors, including, but not limited to, total earnings and the mix of earnings by jurisdiction, the timing of changes in tax laws and the amount of tax provided for uncertain tax positions. Common Stock Share Repurchases The Company may repurchase shares of DPS common stock under a program authorized by the Board of Directors, including plans meeting the requirements of Rule 10b5-1(c)(1) of the Securities Exchange Act of 1934. Shares repurchased are retired and not displayed separately as treasury stock on the financial statements. Instead, the par value of repurchased shares is deducted from common stock and the excess repurchase price over par value is deducted from additional paid-in capital and from retained earnings, once additional paid-in capital is depleted. Revenue Recognition The Company recognizes sales revenue when all of the following have occurred: (1) delivery; (2) persuasive evidence of an agreement exists; (3) pricing is fixed or determinable; and (4) collection is reasonably assured. Delivery is not considered to have occurred until the title and the risk of loss passes to the customer. Net sales are reported net of costs associated with customer marketing programs and incentives, as described below, as well as sales taxes and other similar taxes. Multiple deliverables were included in the arrangements entered into with PepsiCo, Inc. (" PepsiCo ") and The Coca-Cola Company (" Coca-Cola ") during 2010. In these cases, the Company first determined whether each deliverable met the separation criteria under U.S. GAAP . The primary requirement for a deliverable to meet the separation criteria is if the deliverable has stand-alone value to the customer. Each deliverable that meets the separation criteria is considered a separate "unit of accounting". As the sale of the manufacturing and distribution rights and the ongoing sales of concentrate would not have stand-alone value to the customer, both deliverables were determined to represent a single element of accounting for purposes of revenue recognition. The one-time nonrefundable cash receipts from PepsiCo and Coca-Cola were therefore recorded as deferred revenue and are recognized as net sales ratably over the estimated 25 -year life of the customer relationship. Customer Marketing Programs and Incentives The Company offers a variety of incentives and discounts to bottlers, customers and consumers through various programs to support the distribution of its products. These incentives and discounts include cash discounts, price allowances, volume based rebates, product placement fees and other financial support for items such as trade promotions, displays, new products, consumer incentives and advertising assistance. These incentives and discounts are reflected as a reduction of gross sales to arrive at net sales. The aggregate deductions from gross sales recorded in relation to these programs were approximately $3,844 million , $3,682 million and $3,618 million during the years ended December 31, 2015, 2014 and 2013 , respectively. The amounts of trade spend are larger in the Packaged Beverages segment than those related to other parts of our business. Accruals are established for the expected payout based on contractual terms, volume-based metrics and/or historical trends and require management judgment with respect to estimating customer participation and performance levels. Cost of Sales Cost of goods sold includes all costs to acquire and manufacture our products including raw materials, direct and indirect labor, manufacturing overhead, including depreciation expense, and all other costs incurred to bring the product to salable condition. All other costs incurred after this condition is met are considered selling costs and included in SG&A expenses. Transportation and Warehousing Costs The Company incurred $806 million , $802 million and $776 million of transportation and warehousing costs during the years ended December 31, 2015, 2014 and 2013 , respectively. These amounts, which primarily relate to shipping and handling costs are recorded in SG&A expenses in the Consolidated Statements of Income. Advertising and Marketing Expense Advertising and marketing production costs related to television, print, radio and other marketing investments are expensed as of the first date the advertisement takes place. All other advertising and marketing costs are expensed as incurred. Advertising and marketing expense was approximately $473 million , $473 million and $486 million during the years ended December 31, 2015, 2014 and 2013 , respectively. These expenses are recorded in SG&A expenses in the Consolidated Statements of Income. As of December 31, 2015 and 2014 , prepaid advertising and marketing costs of approximately $11 million and $17 million , respectively, were recorded as other current and non-current assets in the Consolidated Balance Sheets. Research and Development Costs Research and development costs are expensed when incurred and amounted to $19 million , $18 million and $21 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. These expenses are recorded in SG&A expenses in the Consolidated Statements of Income. Stock-Based Compensation Expense The Company accounts for its stock-based compensation plans in accordance with U.S. GAAP , which requires the recognition of compensation expense in the Consolidated Statements of Income related to the fair value of employee stock-based awards. Compensation cost is based on the grant-date fair value, which is estimated using the Black-Scholes option pricing model for stock options. The fair value of restricted stock units (" RSU s") and performance-based restricted stock units (" PSU s") without a market condition is determined based on the number of units granted and the grant date price of common stock. Beginning with the 2015 grant, the fair value of the market-based PSU s is estimated at the date of grant using a Monte-Carlo simulation. Stock-based compensation expense is recognized ratably, less estimated forfeitures, over the vesting period in the Consolidated Statements of Income. Stock-based compensation expense for PSU s is adjusted quarterly based on the current estimate of performance compared to the target metrics. Refer to Note 16 for additional information . Deferred Compensation Plan Employee and employer matching contributions under the Supplemental Savings Plan (" SSP ") are maintained in a rabbi trust and are not readily available to us. Participants can direct the investment of their deferred compensation plan accounts in the same investment funds offered by the DPS ' Savings Incentive Plan (the " SIP ") . Although participants direct the investment of these funds, the investments are classified as trading securities and are included in other non-current assets. The corresponding liability related to the deferred compensation plan is recorded in other non-current liabilities. Gains and losses in connection with these trading securities are recorded in other expense (income), net, with an offset for the same amount recorded in SG&A expenses. The Company had deferred compensation plan assets of $25 million as of December 31, 2015 and 2014 . There were no gains or losses associated with these trading securities for the year ended December 31, 2015 . Gains associated with these trading securities were $1 million for the year ended December 31, 2014 . Foreign Currency Translation and Transaction 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 2015 17.25 15.87 2014 14.74 13.31 2013 13.08 12.77 Canadian Dollar to U.S. Dollar Exchange Rate End of Year Rates Annual Average Rates 2015 1.38 1.28 2014 1.16 1.10 2013 1.06 1.03 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 May 2014, the Financial Accounting Standards Board (" FASB ") issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (" ASU 2014-09 "). The new guidance sets forth a new five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed in U.S. GAAP . The underlying principle of the new standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in the prior accounting guidance. ASU 2014-09 provides alternative methods of initial adoption. In August 2015, the FASB issued ASU 2015-14 , Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , which defers the effective date of ASU 2014-09 by one year to December 15, 2017 for interim and annual reporting periods beginning after that date and permitted early adoption of the standard, but not before the original effective date. The Company is currently evaluating the impact that these standards will have on the Consolidated Financial Statements and does not plan to early adopt the ASU. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory (" ASU 2015-11 "). This ASU requires inventories measured under any methods other than LIFO or the retail inventory method to be subsequently measured at the lower of cost or net realizable value, rather than at the lower of cost or market. Subsequent measurement of inventory using LIFO or the retail inventory method is unchanged by this ASU . ASU 2015-11 is effective for public companies for interim and annual periods beginning after December 15, 2016. The Company does not anticipate a significant impact to the Company 's financial position as a result of this change. In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments ("ASU 2015-16"). This ASU amends U.S. GAAP to eliminate the requirement to retrospectively account for adjustments to provisional amounts recognized at the acquisition date of a business combination, when the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs. ASU 2015-16 is effective for public companies for interim and annual periods beginning after December 15, 2015. 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 January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . The ASU enhances the reporting model for financial instruments, which includes amendments to address aspects of recognition, measurement, presentation and disclosure. The update to the standard is effective for public companies for interim and annual periods beginning after December 15, 2017. The Company is currently evaluating the impact that the standard will have on the Consolidated Financial Statements. Recently Adopted Provisions of U.S. GAAP In accordance with ASU 2015-17, Income Taxes (Topic 740): Bal |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisition | Acquisitions 2014 Acquisition On October 31, 2014, the Company acquired certain assets and liabilities of Davis Beverages Group, Inc. and Davis Bottling Co., Inc. (“Davis”) to strengthen the Company ’s route to market in the U.S. and support efforts to build and enhance the Company 's leading brands. At acquisition, the fair value of the consideration paid for this acquisition was $21 million and was settled by $19 million in cash and a $2 million holdback liability to satisfy any working capital adjustments and applicable indemnification claims, pursuant to the terms of the purchase agreement. During the year ended December 31, 2015, the Company paid out $1 million of the holdback liability. The following table summarizes the allocation of fair value, as of the acquisition date, of the assets acquired and liabilities assumed by major class for the acquisition: (in millions) Fair Value Useful Life Property, plant & equipment $ 10 1 - 10 years Distribution rights: indefinite-lived 3 — Goodwill 6 — Current assets, net of current liabilities assumed 2 — Total $ 21 The acquisition was accounted for as a business combination, and the identifiable assets acquired and liabilities assumed were recorded at their estimated fair values at the date of acquisition. The excess of the purchase price over the estimated fair values was recorded as goodwill. In connection with this acquisition, the Company recorded goodwill of $6 million , which is deductible for tax purposes. The Company also recorded $3 million in intangible assets related to distribution rights. The Company has not presented pro forma results of operations or amounts of revenue and earnings since the acquisition date because the acquisition is not material to the Company 's Consolidated Financial Statements. 2013 Acquisition On February 25, 2013, the Company acquired certain assets of Dr. Pepper/7-Up Bottling Company of the West ("DP/7UP West") to strengthen the Company 's route-to-market in the U.S. and support efforts to build and enhance the Company 's leading brands. The fair value of the consideration paid for this acquisition was $23 million , consisting of the issuance by the Company of 313,105 shares of common stock to DP/7UP West and $10 million in cash. The fair value of the common stock issued was determined using the closing stock price on the acquisition date. The following table summarizes the allocation of fair value, as of the acquisition date, of the assets acquired and liabilities assumed by major class for the acquisition: (in millions) Fair Value Useful Life Property, plant & equipment $ 7 3 - 40 years Distribution rights: definite-lived 2 5 - 15 years Distribution rights: indefinite-lived 10 — Goodwill 5 — Current liabilities, net of current assets assumed (1 ) — Total $ 23 The acquisition was accounted for as a business combination, and the identifiable assets acquired and liabilities assumed were recorded at their estimated fair values at the date of acquisition. The excess of the purchase price over the estimated fair values was recorded as goodwill. In connection with this acquisition, the Company recorded goodwill of $5 million , which is not deductible for tax purposes. The Company also recorded $12 million in intangible assets related to distribution rights. The Company has not presented pro forma results of operations or amounts of revenue and earnings since the acquisition date because the acquisition is not material to the Company 's Consolidated Financial Statements. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories as of December 31, 2015 and 2014 consisted of the following: December 31, December 31, (in millions) 2015 2014 Raw materials $ 101 $ 92 Spare parts 18 18 Work in process 4 5 Finished goods 123 126 Inventories at FIFO cost 246 241 Reduction to LIFO cost (37 ) (37 ) Inventories $ 209 $ 204 Approximately $154 million and $151 million of the Company 's inventory was accounted for under the LIFO method of accounting as of December 31, 2015 and 2014 , respectively. The reduction to LIFO cost reflects the excess of the current cost of LIFO inventories as of December 31, 2015 and 2014 , over the amount at which these inventories were valued on the Consolidated Balance Sheets. For the years ended December 31, 2015 and 2014 , there was no LIFO inventory liquidation. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Property, Plant and Equipment Net property, plant and equipment consisted of the following as of December 31, 2015 and 2014 : December 31, December 31, (in millions) 2015 2014 Land $ 73 $ 73 Buildings and improvements 504 488 Machinery and equipment 1,465 1,389 Cold drink equipment 279 299 Software 252 244 Construction in progress 76 49 Gross property, plant and equipment 2,649 2,542 Less: accumulated depreciation and amortization (1,493 ) (1,401 ) Net property, plant and equipment $ 1,156 $ 1,141 Net property, plant and equipment in the above table includes the following assets under capital lease as of December 31, 2015 and 2014 : December 31, December 31, (in millions) 2015 2014 Buildings and improvements $ 47 $ 49 Machinery and equipment 92 37 Gross property, plant and equipment under capital lease 139 86 Less: accumulated depreciation and amortization (15 ) (9 ) Net property, plant and equipment under capital lease $ 124 $ 77 The following table summarizes the location of depreciation expense within the Consolidated Statements of Income for the years ended December 31, 2015, 2014 and 2013 : For the Year Ended December 31, (in millions) 2015 2014 2013 Cost of sales $ 93 $ 89 $ 86 Depreciation and amortization 99 110 110 $ 192 $ 199 $ 196 The depreciation expense above also includes the charge to income resulting from amortization of assets recorded under capital leases. |
Investments in Unconsolidated S
Investments in Unconsolidated Subsidiaries | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | Investments in Unconsolidated Subsidiaries The following table summarizes the equity method investments held by the Company as of December 31, 2015 and 2014 : Ownership December 31, December 31, (in millions) Interest 2015 2014 Industria Embotelladora de Bebidas Mexicanas (1) 50.0% $ 11 $ 13 Hydrive Energy, LLC (2) 40.4% — 1 BA Sports Nutrition, LLC (3) 11.7% 20 — Investments in Unconsolidated Subsidiaries $ 31 $ 14 ____________________________ (1) Investment is part of a joint venture with Acqua Minerale San Benedetto. For the year ended December 31, 2015 , the carrying value of the investment decreased due to a $2 million change in foreign currency translation. (2) On November 16, 2012, Hydrive Energy, LLC ("Hydrive") sold its intellectual property rights to Big Red Holdings, Inc. in exchange for earn-out payments to Hydrive based on the earnings associated with Hydrive functional beverages over the next fifteen years. As the expected earn-out payments did not support the value of the investment, the Company recognized an impairment of $1 million during the year ended December 31, 2015 . (3) On August 10, 2015, the Company acquired an 11.7% interest in BA Sports Nutrition, LLC for $20 million . The investment is accounted for as an equity method investment as the Company is deemed to have the ability to exercise influence through more than a minor interest in the investee in accordance with U.S. GAAP . Refer to Note 11 for information regarding cost method investments. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets [Text Block] | 100% 15,647 2,628 13,340 1,994 $ 15,647 $ 2,628 $ 14,309 $ 2,649 ____________________________ (1) Garden Cocktail was removed from this presentation as a result of the $7 million non-cash impairment charge." id="sjs-B4">Goodwill and Other Intangible Assets Changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014 , by reporting unit, are as follows: (in millions) Beverage Concentrates WD Reporting Unit (1) DSD Reporting Unit (1) Latin America Beverages Total Balance as of January 1, 2014 Goodwill $ 1,732 $ 1,220 $ 185 $ 31 $ 3,168 Accumulated impairment losses — — (180 ) — (180 ) 1,732 1,220 5 31 2,988 Foreign currency impact — — — (3 ) (3 ) Acquisition activity (2) — 2 3 — 5 Balance as of December 31, 2014 Goodwill 1,732 1,222 188 28 3,170 Accumulated impairment losses — — (180 ) — (180 ) 1,732 1,222 8 28 2,990 Foreign currency impact 1 — — (4 ) (3 ) Acquisition activity (2) — — 1 — 1 Balance as of December 31, 2015 Goodwill 1,733 1,222 189 24 3,168 Accumulated impairment losses — — (180 ) — (180 ) $ 1,733 $ 1,222 $ 9 $ 24 $ 2,988 ____________________________ (1) The Packaged Beverages segment is comprised of two reporting units, the Direct Store Delivery (" DSD ") system and the Warehouse Direct (" WD ") system. (2) The acquisition activity represents the goodwill associated with the purchase of Davis. See Note 3 for further information related to the acquisition. The net carrying amounts of intangible assets other than goodwill as of December 31, 2015 and 2014 are as follows: December 31, 2015 December 31, 2014 Gross Accumulated Net Gross Accumulated Net (in millions) Amount Amortization Amount Amount Amortization Amount Intangible assets with indefinite lives: Brands (1) $ 2,627 $ — $ 2,627 $ 2,643 $ — $ 2,643 Distribution rights 27 — 27 27 — 27 Intangible assets with finite lives: Brands 29 (29 ) — 29 (28 ) 1 Distribution rights 14 (6 ) 8 13 (4 ) 9 Customer relationships 76 (75 ) 1 76 (72 ) 4 Bottler agreements 19 (19 ) — 19 (19 ) — Total $ 2,792 $ (129 ) $ 2,663 $ 2,807 $ (123 ) $ 2,684 ____________________________ (1) In 2015 , brands with indefinite lives decreased due to the $9 million impact of foreign currency translation and the $7 million impact of an impairment charge related to Garden Cocktail. As of December 31, 2015 , the weighted average useful life of intangible assets with finite lives was 10 years for distribution rights, customer relationships, and in total. Amortization expense for intangible assets was $6 million , $5 million and $7 million for the years ended December 31, 2015, 2014 and 2013 , respectively. Amortization expense of these intangible assets over the next five years is expected to be the following: Year Aggregate Amortization Expense (in millions) 2016 $ 3 2017 1 2018 1 2019 1 2020 2 In accordance with U.S. GAAP , the Company conducts impairment tests of goodwill and indefinite-lived intangible assets annually, as of October 1, or more frequently if circumstances indicate that the carrying amount of an asset may not be recoverable. For purposes of impairment testing, DPS assigns goodwill to the reporting unit that benefits from the synergies arising from each business combination and also assigns indefinite-lived intangible assets to its reporting units. The Company defines reporting units as Beverage Concentrates, Latin America Beverages and Packaged Beverages' two reporting units, DSD and WD . The impairment test for indefinite lived intangible assets encompasses calculating a fair value of an indefinite lived intangible asset and comparing the fair value to its carrying value. If the carrying value exceeds the estimated fair value, impairment is recorded. The impairment tests for goodwill include comparing a fair value of the respective reporting unit with its carrying value, including goodwill and considering any indefinite lived intangible asset impairment charges ("Step 1"). If the carrying value exceeds the estimated fair value, impairment is indicated and a second step analysis must be performed. Fair value is measured based on what each intangible asset or reporting unit would be worth to a third party market participant. Methodologies used to determine the fair values of the assets include an income based approach, as well as an overall consideration of market capitalization and the Company 's enterprise value. Management's estimates of fair value, which fall under Level 3, are based on historical and projected operating performance. Discount rates are based on a weighted average cost of equity and cost of debt and were adjusted with various risk premiums. The range of discount rates used for the 2015 and 2014 impairment analyses was as follows: 2015 Range 2014 Range Low High Low High Goodwill 5.00 % 9.10 % 5.10 % 10.60 % Intangible assets - brands 7.25 % 10.35 % 7.45 % 11.85 % Results of our Impairment Analyses 2015 As of October 1, 2015 , the results of the annual impairment tests indicated no impairment of the Company 's goodwill was required. The estimated fair value of each reporting unit exceeded the carrying value for all of the Company 's goodwill by at least 100% . As a result of the 2015 annual impairment analysis of DPS' brands, the Company recognized a non-cash charge of $7 million to fully impair Garden Cocktail, a Canadian brand recorded in the WD reporting unit. During the fourth quarter of 2015, as a part of the Company's annual budget process, the Company revised its assessment of Garden Cocktail's long-term projected sales volumes based on declines in the vegetable juice category in Canada. The charge was recorded in Other operating expense, net in the Consolidated Statements of Income. There was no indication of impairment for the Company 's remaining brands. 2014 As of October 1, 2014 , the results of the annual impairment tests indicated no impairment was required. The estimated fair value of each reporting unit exceeded the carrying value for all of the Company 's goodwill by at least 100% . Comparison of Fair Value to Carrying Value - Indefinite-Lived Brands The results of the impairment analysis of our indefinite-lived brands as of October 1, 2015 and 2014 are shown below: (in millions) 2015 Impairment Analysis (1) 2014 Impairment Analysis Headroom Percentage Fair Value Carrying Value Fair Value Carrying Value 0 - 10% $ — $ — $ — $ — 11 - 20% — — — — 21 - 50% — — 259 191 51 - 100% — — 710 464 > 100% 15,647 2,628 13,340 1,994 $ 15,647 $ 2,628 $ 14,309 $ 2,649 ____________________________ (1) Garden Cocktail was removed from this presentation as a result of the $7 million non-cash impairment charge. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Prepaid Expenses and Other Current Assets and Other Current Liabilities [Abstract] | |
Prepaid expenses and other current assets and liabilities | Prepaid Expenses and Other Current Assets and Other Current Liabilities The table below details the components of prepaid expenses and other current assets and other current liabilities as of December 31, 2015 and 2014 : December 31, December 31, (in millions) 2015 2014 Prepaid expenses and other current assets: Customer incentive programs $ 21 $ 18 Derivative instruments 9 11 Current assets held for sale — 12 Other 39 45 Total prepaid expenses and other current assets $ 69 $ 86 Other current liabilities: Customer rebates and incentives $ 283 $ 248 Accrued compensation 133 127 Insurance liability 42 46 Interest accrual 30 26 Dividends payable 90 79 Derivative instruments 29 18 Other 101 128 Total other current liabilities $ 708 $ 672 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Long-term Obligations and Borrowing Arrangements LONG-TERM OBLIGATIONS The following table summarizes the Company 's long-term obligations as of December 31, 2015 and 2014 : December 31, December 31, (in millions) 2015 2014 Senior unsecured notes (1)(2) $ 3,246 $ 2,497 Capital lease obligations 136 86 Subtotal 3,382 2,583 Less — current portion (507 ) (3 ) Long-term obligations $ 2,875 $ 2,580 ____________________________ (1) The carrying amount includes the unamortized net discount on debt issuances and adjustments related to the change in the fair value of interest rate swaps designated as fair value hedges of $40 million and $34 million as of December 31, 2015 and 2014 , respectively . See Note 10 for further information regarding derivatives. (2) As of December 31, 2015, the Company early adopted the accounting standard requiring that issuance costs related to a recognized debt liability on the balance sheet be presented in the balance sheet as a direct deduction from the carrying value of the related debt liability, consistent with the presentation of discounts. As a result, $8 million was reclassified from other non-current assets to long-term obligations within the Consolidated Balance Sheets as of December 31, 2014. This table, and the tables below, reflect the detail of this presentation for our long-term obligations as of December 31, 2015 and 2014. SHORT-TERM BORROWINGS AND CURRENT PORTION OF LONG-TERM OBLIGATIONS The following table summarizes the Company 's short-term borrowings and current portion of long-term obligations as of December 31, 2015 and 2014 : December 31, December 31, (in millions) 2015 2014 Commercial paper $ — $ — Current portion of long-term obligations Senior unsecured notes 500 — Capital lease obligations 7 3 Short-term borrowings and current portion of long-term obligations $ 507 $ 3 As of December 31, 2015 , the Company was in compliance with all financial covenant requirements relating to its unsecured credit agreement. Senior Unsecured Notes The Company 's senior unsecured notes consisted of the following: Principal Amount Carrying Amount (in millions) December 31, December 31, December 31, Issuance Maturity Date Rate 2015 2015 2014 2016 Notes January 15, 2016 2.90% $ 500 $ 500 $ 499 2018 Notes May 1, 2018 6.82% 724 723 722 2019 Notes January 15, 2019 2.60% 250 250 249 2020 Notes January 15, 2020 2.00% 250 246 244 2021 Notes November 15, 2021 3.20% 250 250 248 2022 Notes November 15, 2022 2.70% 250 265 264 2025 Notes November 15, 2025 3.40% 500 494 — 2038 Notes May 1, 2038 7.45% 250 271 271 2045 Notes November 15, 2045 4.50% 250 247 — $ 3,224 $ 3,246 $ 2,497 The indentures governing the senior unsecured notes, among other things, limit the Company 's ability to incur indebtedness secured by principal properties, to enter into certain sale and leaseback transactions and to enter into certain mergers or transfers of substantially all of DPS ' assets. The senior unsecured notes are guaranteed by substantially all of the Company 's existing and future direct and indirect domestic subsidiaries. As of December 31, 2015 , the Company was in compliance with all financial covenant requirements. The 2025 and 2045 Notes On November 9, 2015, the Company completed the issuance of two tranches of senior unsecured notes, consisting of $500 million aggregate principal amount of the 2025 Notes and $250 million aggregate principal amount of the 2045 Notes . The discount associated with these notes was approximately $4 million . Debt issuance costs related to the issuance of these notes were approximately $6 million . The net proceeds were used to retire the Company 's 2016 Notes at maturity and for general corporate purposes. The 2020 and 2022 Notes On November 20, 2012, the Company completed the issuance of two tranches of senior unsecured notes, consisting of $250 million aggregate principal amount of the 2020 Notes and $250 million aggregate principal amount of the 2022 Notes . The discount associated with these notes was approximately $3 million . Debt issuance costs related to the issuance of these notes were approximately $3 million . The 2019 and 2021 Notes On November 15, 2011, the Company completed the issuance of two tranches of senior unsecured notes consisting of $250 million aggregate principal amount of the 2019 Notes and $250 million aggregate principal amount of the 2021 Notes . The discount associated with these notes was approximately $1 million . Debt issuance costs related to the issuance of these notes were approximately $3 million . The 2016 Notes On January 11, 2011, the Company completed the issuance of $500 million aggregate principal amount of the 2016 Notes at a discount of $1 million and debt issuance costs of $3 million . The 2016 Notes were repaid at maturity, subsequent to December 31, 2015. The 2018 and 2038 Notes On April 30, 2008, the Company completed the issuance of two tranches of senior unsecured notes consisting of $1,200 million aggregate principal amount of the 2018 Notes and $250 million aggregate principal amount of the 2038 Notes . Debt issuance costs associated with the 2018 Notes and the 2038 Notes were $11 million . In December 2010, the Company completed a tender offer for a portion of the 2018 Notes and retired, at a premium, an aggregate principal amount of approximately $476 million . The aggregate principal amount of the outstanding 2018 Notes was $724 million as of December 31, 2015 and 2014 . BORROWING ARRANGEMENTS Commercial Paper Program On December 10, 2010, the Company entered into a commercial paper program under which the Company may issue unsecured commercial paper notes (the " Commercial Paper ") on a private placement basis up to a maximum aggregate amount outstanding at any time of $500 million . The program is supported by the Revolver, which is discussed below. Outstanding Commercial Paper reduces the amount of borrowing capacity available under the Revolver and outstanding amounts under the Revolver reduce the Commercial Paper availability. As of December 31, 2015 and 2014 , the Company had no outstanding Commercial Paper . Unsecured Credit Agreement On September 25, 2012, the Company entered into a five-year unsecured credit agreement (the " Credit Agreement "), which provides for a $500 million revolving line of credit (the " Revolver "). Borrowings under the Revolver bear interest at a floating rate per annum based upon the alternate base rate (" ABR ") or the Eurodollar rate, in each case plus an applicable margin which varies based upon the Company 's debt ratings. Rates range from 0.000% to 0.300% for ABR loans and from 0.795% to 1.300% for Eurodollar loans. The ABR is defined as the greater of (a) JPMorgan Chase Bank's prime rate, (b) the federal funds effective rate plus 0.500% and (c) the adjusted LIBOR for a one month interest period. The adjusted LIBOR is the London interbank offered rate for dollars adjusted for a statutory reserve rate set by the Board of Governors of the Federal Reserve System of the United States of America. Additionally, the Revolver is available for the issuance of letters of credit and swingline advances not to exceed $75 million and $50 million , respectively. Swingline advances will accrue interest at a rate equal to the ABR plus the applicable margin. Letters of credit and swingline advances will reduce, on a dollar for dollar basis, the amount available under the Revolver . The Credit Agreement further provides that the Company may request at any time, subject to the satisfaction of certain conditions, that the aggregate commitments under the facility be increased by a total amount not to exceed $250 million . The Credit Agreement 's representations, warranties, covenants and events of default are generally customary for investment grade credit and include a covenant that requires the Company to maintain a ratio of consolidated total debt (as defined in the Credit Agreement ) to annualized consolidated EBITDA (as defined in the Credit Agreement ) of no more than 3.00 to 1.00 , tested quarterly. Upon the occurrence of an event of default, among other things, amounts outstanding under the Credit Agreement may be accelerated and the commitments may be terminated. The Company 's obligations under the Credit Agreement are guaranteed by certain of the Company 's direct and indirect domestic subsidiaries on the terms set forth in the Credit Agreement . The Credit Agreement has a maturity date of September 25, 2017; however, with the consent of lenders holding more than 50% of the total commitments under the Credit Agreement and subject to the satisfaction of certain conditions, the Company may extend the maturity date for up to two additional one-year terms. The following table provides amounts utilized and available under the Revolver and each sublimit arrangement type as of December 31, 2015 : (in millions) Amount Utilized Balances Available Revolver $ — $ 500 Letters of credit — 75 Swingline advances — 50 A facility fee is payable quarterly to the lenders on the unused portion of the commitments of the Revolver equal to 0.08% to 0.20% per annum, depending upon the Company 's debt ratings. The Company incurred $1 million in facility fees during the years ended December 31, 2015 , 2014 and 2013 . Shelf Registration Statement On February 7, 2013, the Company 's Board of Directors (the " Board ") authorized the Company to issue up to $1,500 million of securities from time to time. Subsequently, the Company filed a "well-known seasoned issuer" shelf registration statement with the Securities and Exchange Commission, effective May 23, 2013, which registered an indeterminable amount of securities for future sales. On November 9, 2015, the Company issued an aggregate of $750 million of senior unsecured notes, as described in the section " The 2025 and 2045 Notes " above. As of December 31, 2015 , $750 million remained authorized by the Board to be issued following the issuance described above. Letters of Credit Facilities In addition to the portion of the Revolver reserved for issuance of letters of credit, the Company has incremental letters of credit facilities. Under these facilities, $120 million is available for the issuance of letters of credit, $60 million of which was utilized as of December 31, 2015 and $60 million of which remains available for use. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives DPS is exposed to market risks arising from adverse changes in: • interest rates; • foreign exchange rates; and • commodity prices affecting the cost of raw materials and fuels. The Company manages these risks through a variety of strategies, including the use of interest rate contracts, foreign exchange forward contracts, commodity forward and future contracts and supplier pricing agreements. DPS does not hold or issue derivative financial instruments for trading or speculative purposes. INTEREST RATES Cash Flow Hedges In order to hedge the variability in cash flows from interest rate changes associated with the Company's issuances of long-term debt during the fourth quarter of 2015, the Company entered into the following forward starting swap agreements in advance of these issuances: (in millions, except number of instruments) Future 30 year debt issuance Future 10 year debt issuance Number of Number of Period Entered instruments Notional value instruments Notional value Fourth quarter 2014 1 $ 125 — $ — First quarter 2015 3 100 — — Third quarter 2015 1 25 4 175 Fourth quarter 2015 — — 2 100 Total 5 $ 250 6 $ 275 These forward starting swaps were unwound during the fourth quarter of 2015 in connection with the Company's issuance of the 2025 and 2045 Notes. Upon termination, the Company paid $7 million to settle the contracts with the counterparties, which will be amortized to interest expense over the respective term of the issued debt. During the year ended December 31, 2015 , the Company realized no ineffectiveness as a result of these hedging relationships prior to termination. Fair Value Hedges The Company is exposed to the risk of changes in the fair value of certain fixed-rate debt attributable to changes in interest rates and manages these risks through the use of receive-fixed, pay-variable interest rate swaps. Any ineffectiveness is recorded as interest during the period incurred. The following table presents information regarding these interest rate swaps and the associated hedging relationships: (in millions, except number of instruments) Impact to the carrying value Method of of long-term debt Hedging Number of measuring Notional December 31, December 31, Period entered relationship instruments effectiveness value 2015 2014 November 2011 2019 Notes 2 Short cut method $ 100 $ 1 — November 2011 2021 Notes 2 Short cut method 150 1 (1 ) November 2012 2020 Notes 5 Short cut method 120 (2 ) (4 ) December 2013 2022 Notes 4 Cumulative dollar offset (1) 250 17 16 February 2015 2038 Notes (2) 1 Regression 100 23 23 $ 40 $ 34 ____________________________ (1) The assessment of hedge effectiveness is made by comparing the cumulative change in the fair value of the hedged item attributable to changes in the benchmark interest rate with the cumulative changes in the fair value of the interest rate swap. (2) In December 2010, the Company entered into an interest rate swap having a notional amount of $100 million and maturing in May 2038 in order to effectively convert a portion of the 2038 Notes from fixed-rate debt to floating-rate debt and designated it as a fair value hedge. The assessment of hedge effectiveness is made by comparing the cumulative change in the fair value of the hedged item attributable to changes in the benchmark interest rate with the cumulative changes in the fair value of the interest rate swap, with any ineffectiveness recorded in earnings as interest expense during the period incurred. In February 2015, the swap agreement was modified and transferred to another counterparty through a novation transaction. As a result, the Company de-designated the original hedging relationship. Under the original hedging relationship, the $25 million recorded as an increase to debt due to the changes in fair market value of the debt will be amortized into earnings over the remaining term of the 2038 Notes. In February 2015, the Company then designated the new interest rate swap contract as a fair value hedge with a notional amount of $100 million and maturing in May 2038 in order to effectively convert a portion of the 2038 Notes from fixed-rate debt to floating-rate debt. The Company uses regression analysis to assess the prospective and retrospective effectiveness of this hedge relationship. FOREIGN EXCHANGE Cash Flow Hedges The Company 's Canadian business purchases its inventory through transactions denominated and settled in U.S. dollars, a currency different from the functional currency of the Canadian business. These inventory purchases are subject to exposure from movements in exchange rates. During the years ended December 31, 2015, 2014 and 2013 , the Company utilized foreign exchange forward contracts designated as cash flow hedges to manage a small percentage of the exposures resulting from changes in these foreign currency exchange rates. The intent of these foreign exchange contracts is to provide predictability in the Company 's overall cost structure. These foreign exchange contracts, carried at fair value, have maturities between one and 6 months as of December 31, 2015 . The Company had outstanding foreign exchange forward contracts with notional amounts of $7 million and $10 million as of December 31, 2015 and 2014 , respectively. COMMODITIES Economic Hedges DPS centrally manages the exposure to volatility in the prices of certain commodities used in its production process and transportation through forward and future contracts. The intent of these contracts is to provide a certain level of predictability in the Company 's overall cost structure. During the years ended December 31, 2015, 2014 and 2013 , the Company held forward and future contracts that economically hedged certain of its risks. In these cases, a natural hedging relationship exists in which changes in the fair value of the instruments act as an economic offset to changes in the fair value of the underlying items. Changes in the fair value of these instruments are recorded in net income throughout the term of the derivative instrument and are reported in the same line item of the Consolidated Statements of Income as the hedged transaction. Unrealized gains and losses are recognized as a component of unallocated corporate costs until the Company 's operating segments are affected by the completion of the underlying transaction, at which time the gain or loss is reflected as a component of the respective segment's operating profit (" SOP "). The total notional values of derivatives related to economic hedges of this type were $159 million and $160 million as of December 31, 2015 and 2014 , respectively. FAIR VALUE OF DERIVATIVE INSTRUMENTS The following table summarizes the location of the fair value of the Company 's derivative instruments within the Consolidated Balance Sheets as of December 31, 2015 and 2014 : (in millions) Balance Sheet Location December 31, December 31, Assets: Derivative instruments designated as hedging instruments under U.S. GAAP: Interest rate contracts Prepaid expenses and other current assets $ 9 $ 11 Foreign exchange forward contracts Prepaid expenses and other current assets — — Interest rate contracts Other non-current assets 33 29 Derivative instruments not designated as hedging instruments under U.S. GAAP: Commodity contracts Prepaid expenses and other current assets — — Total assets $ 42 $ 40 Liabilities: Derivative instruments designated as hedging instruments under U.S. GAAP: Interest rate contracts Other current liabilities $ 1 $ — Interest rate contracts Other non-current liabilities 1 9 Derivative instruments not designated as hedging instruments under U.S. GAAP: Commodity contracts Other current liabilities 28 18 Commodity contracts Other non-current liabilities 3 8 Total liabilities $ 33 $ 35 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, 2015, 2014 and 2013 : Amount of (Loss) Gain Recognized in Amount of (Loss) Gain Reclassified from AOCL into Income Location of (Loss) Gain Reclassified from AOCL into Income (in millions) Other Comprehensive Income (Loss) ("OCI") For the year ended December 31, 2015: Interest rate contracts $ (5 ) $ (8 ) Interest expense Foreign exchange forward contracts 2 2 Cost of sales Total $ (3 ) $ (6 ) For the year ended December 31, 2014: Interest rate contracts $ (2 ) $ (8 ) Interest expense Foreign exchange forward contracts (2 ) 1 Cost of sales Total $ (4 ) $ (7 ) For the year ended December 31, 2013: Interest rate contracts $ — $ (7 ) Interest expense Foreign exchange forward contracts 4 (1 ) Cost of sales Total $ 4 $ (8 ) There was no hedge ineffectiveness recognized in earnings for the years ended December 31, 2015, 2014 and 2013 with respect to derivative instruments designated as cash flow hedges. During the next 12 months, the Company expects to reclassify net losses of $8 million from AOCL into net income. IMPACT OF FAIR VALUE HEDGES The following table presents the impact of derivative instruments designated as fair value hedging instruments under U.S. GAAP to the Consolidated Statements of Income for the years ended December 31, 2015, 2014 and 2013 : Amount of Gain Location of Gain (in millions) Recognized in Income Recognized in Income For the year ended December 31, 2015: Interest rate contracts (1) $ 17 Interest expense Total $ 17 For the year ended December 31, 2014: Interest rate contracts $ 16 Interest expense Total $ 16 For the year ended December 31, 2013: Interest rate contracts $ 9 Interest expense Total $ 9 ____________________________ (1) Interest expense for the year ended December 31, 2015 includes amortization of the interest rate swap associated with the 2038 Notes, which was de-designated in February 2015, and basis adjustments related to the 2038 and 2022 Notes. For the year ended December 31, 2015 , $1 million in hedge ineffectiveness was recognized in earnings with respect to derivative instruments designated as fair value hedges. No hedge ineffectiveness was recognized in earnings for the year ended December 31, 2014 , and $2 million in hedge ineffectiveness was recognized in earnings with respect to derivative instruments designated as fair value hedges for the year ended December 31, 2013. IMPACT OF ECONOMIC HEDGES The following table presents the impact of derivative instruments not designated as hedging instruments under U.S. GAAP to the Consolidated Statements of Income for the years ended December 31, 2015, 2014 and 2013 : Amount of (Loss) Gain Location of (Loss) Gain (in millions) Recognized in Income Recognized in Income For the year ended December 31, 2015: Commodity contracts (1) $ (24 ) Cost of sales Commodity contracts (1) (14 ) SG&A expenses Total $ (38 ) For the year ended December 31, 2014: Commodity contracts (1) $ 1 Cost of sales Commodity contracts (1) (26 ) SG&A expenses Total $ (25 ) For the year ended December 31, 2013: Commodity contracts (1) $ (24 ) Cost of sales Commodity contracts (1) 1 SG&A expenses Total $ (23 ) ____________________________ (1) Commodity contracts include both realized and unrealized gains and losses. Refer to Note 15 for additional information on the valuation of derivative instruments. The Company has exposure to credit losses from derivative instruments in an asset position in the event of nonperformance by the counterparties to the agreements. Historically, DPS has not experienced credit losses as a result of counterparty nonperformance. The Company selects and periodically reviews counterparties based on credit ratings, limits its exposure to a single counterparty under defined guidelines and monitors the market position of the programs at least on a quarterly basis. |
Other Non-Current Assets and Ot
Other Non-Current Assets and Other Non-Current Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Other Non-Current Assets and Other Non-Current Liabilities [Abstract] | |
Other Non-Current Assets and Other Non-Current Liabilities | Other Non-Current Assets and Other Non-Current Liabilities The table below details the components of other non-current assets and other non-current liabilities as of December 31, 2015 and 2014 : December 31, December 31, (in millions) 2015 2014 Other non-current assets: Customer incentive programs $ 52 $ 55 Marketable securities - trading 25 25 Derivative instruments 33 29 Cost method investments (1) 15 — Other (2) 25 42 Total other non-current assets $ 150 $ 151 Other non-current liabilities: Long-term payables due to Mondelēz $ 26 $ 37 Long-term pension and post-retirement liability 40 44 Multi-employer pension plan withdrawal liability 56 57 Insurance liability 75 90 Derivative instruments 4 17 Deferred compensation liability 25 25 Other 34 32 Total other non-current liabilities $ 260 $ 302 ____________________________ (1) During the year ended December 31, 2015 , the Company acquired a minor interest in Bai Brands, LLC for $15 million . This investment is accounted for as a cost-method investment, as the Company owns a minor interest and does not have the ability to exercise significant influence over operating and financial policies of the entity. This cost method investment does not have a readily determinable fair value as the entity is not publicly traded. (2) As of December 31, 2015, the Company early adopted the accounting standard requiring that issuance costs related to a recognized debt liability on the balance sheet be presented in the balance sheet as a direct deduction from the carrying value of the related debt liability, consistent with the presentation of discounts. As a result, $8 million was reclassified from other non-current assets to long-term obligations within the Consolidated Balance Sheets as of December 31, 2014. Deferred financing costs associated with the Company 's Revolver remain classified in other non-current assets. The above table reflects this presentation as of December 31, 2015 and 2014. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income before provision (benefit) for income taxes and equity in earnings of unconsolidated subsidiaries was as follows: For the Year Ended December 31, (in millions) 2015 2014 2013 U.S. $ 1,070 $ 958 $ 436 Non-U.S. 114 115 106 Total $ 1,184 $ 1,073 $ 542 The provision (benefit) for income taxes has the following components: For the Year Ended December 31, (in millions) 2015 2014 2013 Current: Federal $ 307 $ 259 $ (211 ) State 52 49 (58 ) Non-U.S. 32 20 50 Total current provision (benefit) 391 328 (219 ) Deferred: Federal 21 36 95 State 7 1 10 Non-U.S. 1 6 33 Total deferred provision 29 43 138 Total provision (benefit) for income taxes $ 420 $ 371 $ (81 ) The following is a reconciliation of the provision for income taxes computed at the U.S. federal statutory tax rate to the provision (benefit) for income taxes reported in the Consolidated Statements of Income: For the Year Ended December 31, (in millions) 2015 2014 2013 Statutory federal income tax of 35% $ 414 $ 375 $ 190 Completion of 2006-2008 IRS audit — — (463 ) Canada amortization law change — — 50 Impact of non-taxable indemnity income/non-tax deductible indemnity expense (1) — — 137 State income taxes, net 39 32 34 U.S. federal domestic manufacturing benefit (29 ) (26 ) (23 ) Impact of non-U.S. operations (7 ) (14 ) (7 ) Indemnified taxes (2) — — 5 Other 3 4 (4 ) Total provision (benefit) for income taxes $ 420 $ 371 $ (81 ) Effective tax rate 35.5 % 34.6 % (14.9 )% ____________________________ (1) Due to the resolution of the 2006-2008 IRS audit and the Canada amortization law change in 2013, the Company recognized indemnity expense, net of $392 million as a result of the Tax Sharing and Indemnification Agreement (" Tax Indemnity Agreement "). Since the indemnity expense is not deductible for income tax purposes, the benefit for income taxes also included a permanent difference of $137 million . (2) Amounts represent tax expense recorded by the Company for which Mondelēz was obligated to indemnify DPS under the Tax Indemnity Agreement but excludes the amounts with respect to the completion of the 2006-2008 IRS audit and the Canada amortization law change as they are separately shown on the rate reconciliation. The effective tax rates for the year ended December 31, 2015 and 2014 were 35.5% and 34.6% , respectively. The current year tax rate was higher, compared to the prior year, as a result of an income tax benefit in 2014 of $4 million due to the resolution of a tax audit in a foreign jurisdiction. Deferred tax assets (liabilities) were comprised of the following as of December 31, 2015 and 2014 : December 31, December 31, (in millions) 2015 2014 Deferred income tax assets: Deferred revenue $ 474 $ 501 Accrued liabilities 69 72 Compensation 42 34 Pension and postretirement benefits 35 36 Net operating loss and credit carryforwards 21 22 Inventory 5 4 Other 38 37 684 706 Deferred income tax liabilities: Intangible assets and goodwill (1,162 ) (1,116 ) Fixed assets (192 ) (198 ) Other (25 ) (21 ) (1,379 ) (1,335 ) Valuation allowance (28 ) (31 ) Net deferred income tax liability $ (723 ) $ (660 ) As of December 31, 2015 , the Company had $21 million in tax effected credit carryforwards and net operating loss carryforwards. Net operating loss and credit carryforwards will expire in periods beyond the next five years. The Company had a deferred tax valuation allowance of $28 million and $31 million as of December 31, 2015 and 2014 , respectively. A valuation allowance of $10 million relates to a foreign operation and was established as part of the separation transaction. The remaining $18 million valuation allowance relates to foreign tax credits primarily generated in 2011. The Company provided a full valuation allowance on the deferred tax asset related to the foreign tax credits as the Company does not believe that the benefits will be realized in future years. As of December 31, 2015 and 2014 , undistributed earnings in non- U.S. subsidiaries for which no deferred taxes have been provided totaled approximately $371 million and $354 million , respectively. Deferred income taxes have not been provided on these earnings because the Company has either asserted indefinite reinvestment or outside tax basis exceeds book basis. It is not practicable to estimate the amount of additional tax that might be payable on these undistributed foreign earnings. The Company files income tax returns for U.S. federal purposes and in various state jurisdictions. The Company also files income tax returns in various foreign jurisdictions, principally Canada and Mexico. The U.S. and most state income tax returns for years prior to 2012 are closed to examination by applicable tax authorities. Canadian income tax returns are open for audit for tax years 2008 and forward and Mexican income tax returns are generally open for tax years 2008 and forward. Canadian income tax returns are under audit for the 2009-2013 tax years. The following is a reconciliation of the changes in the gross balance of unrecognized tax benefits for the years ended December 31, 2015 , 2014 and 2013 : December 31, December 31, December 31, (in millions) 2015 2014 2013 Beginning balance $ 13 $ 14 $ 469 Increases related to tax positions taken during the current year — — 1 Increases related to tax positions taken during the prior year 10 3 6 Decreases related to tax positions taken during the prior year (1 ) (2 ) (432 ) Decreases related to settlements with taxing authorities (2 ) (1 ) (27 ) Decreases related to lapse of applicable statute of limitations (1 ) (1 ) (3 ) Ending balance $ 19 $ 13 $ 14 The total amount of unrecognized tax benefits that, if recognized, would reduce the effective tax rate is $13 million after considering the federal impact of state income taxes. Du ring the next twelve months, the Company does not expect a significant change to its unrecognized tax benefits . The Company accrues interest and penalties on its uncertain tax positions as a component of its provision for income taxes. The Company recognized $1 million of interest and penalties for uncertain tax positions for the year ended December 31, 2015 . The Company did not recognize any interest and penalties for uncertain tax positions in the Consolidated Statements of Income for the year ended December 31, 2014 . For the year ended December 31, 2013 , the Company recognized a benefit of $93 million for interest and penalties previously recorded, primarily a result of the resolution of the 2006-2008 IRS audit. The Company had a total of $5 million accrued for interest and penalties for its uncertain tax positions primarily reported as part of other non-current liabilities as of December 31, 2015 and 2014 . |
Other Expense (Income), Net
Other Expense (Income), Net | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Other Expense (Income), Net Disclosure [Text Block] | Other (Income) Expense, Net The table below details the components of other expense (income), net for the years ended December 31, 2015, 2014 and 2013 : For the Year Ended December 31, (in millions) 2015 2014 2013 Indemnity expense from Mondelēz $ — $ — $ 387 Other (1 ) — (4 ) Other (income) expense, net $ (1 ) $ — $ 383 The Company has historically recorded indemnification income from Mondelēz 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 Mondelēz . 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 Mondelēz 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. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans PENSION PLANS Overview The Company has U.S. and foreign pension plans which provide benefits to a defined group of employees. The Company has several non-contributory defined benefit 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. 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% . Financial Statement Impact The following tables set forth amounts recognized in the Company 's financial statements and the pension plans' funded status for the years ended December 31, 2015 and 2014 : Pension Plans (in millions) 2015 2014 Projected Benefit Obligations As of beginning of year $ 227 $ 259 Service cost 3 2 Interest cost 9 13 Actuarial losses (gains), net (1) (14 ) 46 Benefits paid (3 ) (8 ) Currency exchange adjustments (3 ) (3 ) Settlements (2) (13 ) (82 ) As of end of year $ 206 $ 227 Fair Value of Plan Assets As of beginning of year $ 187 $ 237 Actual return on plan assets (7 ) 30 Employer contributions 8 12 Benefits paid (3 ) (8 ) Currency exchange adjustments (3 ) (2 ) Settlements (2) (13 ) (82 ) As of end of year $ 169 $ 187 Funded status of plan / net amount recognized $ (37 ) $ (40 ) Funded status — overfunded $ 1 $ — Funded status — underfunded (38 ) (40 ) Net amount recognized consists of: Non-current assets $ 1 $ — Current liabilities (1 ) — Non-current liabilities (37 ) (40 ) Net amount recognized $ (37 ) $ (40 ) ____________________________ (1) The Company updated the assumption of expected mortality for U.S. plans as of December 31, 2014, in order to reflect the Society of Actuaries' Retirement Plan Experience Committee's updated mortality tables and mortality improvement scale published in October 2014. (2) During 2014, the Company purchased annuity contracts from an insurance company to transfer its projected benefit obligation and assets related to participants currently receiving benefits as part of the U.S. defined benefit pension plans, which resulted in a $71 million reduction in both the projected benefit obligation and the plan assets as of December 31, 2014. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value Under U.S. GAAP , fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP provides a framework for measuring fair value and establishes a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. The three-level hierarchy for disclosure of fair value measurements is as follows: Level 1 - Quoted market prices in active markets for identical assets or liabilities. Level 2 - Observable inputs such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3 - Valuations with one or more unobservable significant inputs that reflect the reporting entity's own assumptions. RECURRING FAIR VALUE MEASUREMENTS The following tables present the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and 2014 : December 31, 2015 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in millions) Level 1 Level 2 Level 3 Interest rate contracts $ — $ 42 $ — Foreign exchange forward contracts — — — Marketable securities - trading 25 — — Total assets $ 25 $ 42 $ — Commodity contracts $ — $ 31 $ — Interest rate contracts — 2 — Total liabilities $ — $ 33 $ — December 31, 2014 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in millions) Level 1 Level 2 Level 3 Interest rate contracts $ — $ 40 $ — Marketable securities - trading 25 — — Total assets $ 25 $ 40 $ — Commodity contracts $ — $ 26 $ — Interest rate contracts — 9 — Total liabilities $ — $ 35 $ — The fair values of marketable securities are determined using quoted market prices from daily exchange traded markets based on the closing price as of the balance sheet date and were classified as Level 1. The fair values of commodity contracts, interest rate contracts and foreign exchange forward contracts are determined based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets. The fair value of commodity contracts are valued using the market approach based on observable market transactions, primarily underlying commodities futures or physical index prices, at the reporting date. Interest rate contracts are valued using models based primarily on readily observable market parameters, such as LIBOR forward rates, for all substantial terms of the Company 's contracts and credit risk of the counterparties. The fair value of foreign exchange forward contracts are valued using quoted forward foreign exchange prices at the reporting date. Therefore, the Company has categorized these contracts as Level 2. As of December 31, 2015 and 2014 , the Company did not have any assets or liabilities measured on a recurring basis without observable market values that would require a high level of judgment to determine fair value (Level 3). There were no transfers of financial instruments between the three levels of fair value hierarchy during the years ended December 31, 2015, 2014 and 2013 . FAIR VALUE OF PENSION AND POSTRETIREMENT PLAN ASSETS The fair value hierarchy discussed above is not only applicable to assets and liabilities that are included in our consolidated balance sheets, but is also applied to certain other assets that indirectly impact our consolidated financial statements. For example, our Company sponsors and/or contributes to a number of pension and postretirement medical plans. Assets contributed by the Company become the property of the individual plans. Even though the Company no longer has control over these assets, DPS is indirectly impacted by subsequent fair value adjustments to these assets. The actual return on these assets impacts the Company 's future net periodic benefit cost, as well as amounts recognized in our consolidated balance sheets. Refer to Note 14 for additional information regarding the Company 's pension and postretirement medical plans. The Company uses the fair value hierarchy to measure the fair value of assets held by our various pension and postretirement medical plans. The following tables present the major categories of plan assets and the respective fair value hierarchy for the pension plan assets as of December 31, 2015 and 2014 : Fair Value Measurements as of December 31, 2015 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in millions) Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 5 $ 5 $ — $ — Equity securities (1) U.S. Large-Cap equities (2) 27 — 27 — International equities (2) 13 — 13 — Fixed income securities Derivative financial instruments (3) 19 — 19 — U.S. Treasuries 12 12 — — U.S. Municipal bonds (4) 5 — 5 — U.S. Corporate bonds (4) 86 — 86 — International bonds (2) 21 — 21 — Total assets 188 17 171 — Fixed income securities Derivative financial instruments (3) 19 — 19 — Total liabilities 19 — 19 — Total net assets $ 169 $ 17 $ 152 $ — Fair Value Measurements as of December 31, 2014 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in millions) Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 10 $ 10 $ — $ — Equity securities (1) U.S. Large-Cap equities (2) 30 — 30 — International equities (2) 19 — 19 — Fixed income securities Derivative financial instruments (3) 31 — 31 — U.S. Treasuries 22 22 — — U.S. Municipal bonds (4) 5 — 5 — U.S. Corporate bonds (4) 82 — 82 — International bonds (2) 19 — 19 — Total assets 218 32 186 — Fixed income securities Derivative financial instruments (3) 31 — 31 — Total liabilities 31 — 31 — Total net assets $ 187 $ 32 $ 155 $ — ____________________________ (1) Equity securities are comprised of actively managed U.S. index funds and Europe, Australia, Far East (" EAFE ") index funds. (2) The NAV is based on the fair value of the underlying assets owned by the equity index fund or fixed income investment vehicle per share multiplied by the number of units held as of the measurement date and are classified as Level 2 assets. (3) Derivative financial instruments consist of U.S Treasury futures. The fair value of these futures is determined by using quoted market prices of similar instruments. (4) U.S. Municipal and Corporate bonds are based on quoted bid prices for comparable securities in the marketplace. The following tables present the major categories of plan assets and the respective fair value hierarchy for the postretirement medical plan assets as of December 31, 2015 and 2014 : Fair Value Measurements as of December 31, 2015 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in millions) Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 1 $ 1 $ — $ — Equity securities (1) U.S. Large-Cap equities (2) 1 — 1 — Fixed income securities U.S. Corporate bonds (3) 3 — 3 — Total assets $ 5 $ 1 $ 4 $ — Fair Value Measurements as of December 31, 2014 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in millions) Total Level 1 Level 2 Level 3 Equity securities (1) U.S. Large-Cap equities (2) $ 1 $ — $ 1 $ — Fixed income securities Derivative financial instruments (4) 1 — 1 — U.S. Treasuries 1 1 — — U.S. Corporate bonds (3) 4 — 4 — Total assets $ 7 $ 1 $ 6 $ — Fixed income securities Derivative financial instruments (4) 1 $ — $ 1 $ — Total liabilities 1 — 1 — Total net assets $ 6 $ 1 $ 5 $ — ____________________________ (1) Equity securities are comprised of actively managed U.S. index funds and EAFE index funds. (2) The NAV is based on the fair value of the underlying assets owned by the equity index fund or fixed income investment vehicle per share multiplied by the number of units held as of the measurement date and are classified as Level 2 assets. (3) U.S. Corporate bonds are based on quoted bid prices for comparable securities in the marketplace. (4) Derivative financial instruments consist of U.S Treasury futures. The fair value of these futures is determined by using quoted market prices of similar instruments. ESTIMATED FAIR VALUE OF THE COMPANY'S FINANCIAL STATEMENT INSTRUMENTS The carrying values and estimated fair values of the Company 's financial instruments that are not required to be measured at fair value in the Consolidated Balance Sheet are as follows: Fair Value Hierarchy Level December 31, 2015 December 31, 2014 (in millions) Carrying Amount Fair Value Carrying Amount Fair Value Assets: Cash and Cash Equivalents (1) 1 $ 911 $ 911 $ 237 $ 237 Liabilities: Long-term debt – 2016 Notes (2) 2 500 500 499 510 Long-term debt – 2018 Notes (2) 2 723 802 722 835 Long-term debt – 2019 Notes (2) 2 250 248 249 253 Long-term debt – 2020 Notes (2) 2 246 244 244 244 Long-term debt – 2021 Notes (2) 2 250 253 248 255 Long-term debt – 2022 Notes (2) 2 265 241 264 244 Long-term debt – 2025 Notes (2) 2 494 491 — — Long-term debt – 2038 Notes (2) 2 271 344 271 363 Long-term debt – 2045 Notes (2) 2 247 244 — — ____________________________ (1) Cash equivalents are composed of certificates of deposit, time deposits and other interest-bearing investments with original maturity dates of three months or less. Cash equivalents are recorded at cost, which approximates fair value. (2) The fair value amounts of long term debt were based on current market rates available to the Company . The difference between the fair value and the carrying value represents the theoretical net premium or discount that would be paid or received to retire all debt and related unamortized costs to be incurred at such date. The carrying amount includes the unamortized discounts and issuance costs on the issuance of debt and adjustments related to the change in the fair value of interest rate swaps designated as fair value hedges on the 2019, 2020, 2021, 2022 and 2038 Notes. Refer to Note 10 for additional information regarding derivatives. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense is recorded in SG&A expenses in the Consolidated Statements of Income. The components of stock-based compensation expense for the years ended December 31, 2015, 2014 and 2013 are presented below: For the Year Ended December 31, (in millions) 2015 2014 2013 Total stock-based compensation expense $ 44 $ 48 $ 37 Income tax benefit recognized in the income statement (15 ) (17 ) (12 ) Stock-based compensation expense, net of tax $ 29 $ 31 $ 25 DPS is required to estimate forfeitures at the time of grant and revise those estimates in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to estimate pre-vesting option, RSU and PSU forfeitures and record stock-based compensation expense only for those awards that are expected to vest. DESCRIPTION OF STOCK-BASED COMPENSATION PLAN Omnibus Stock Incentive Plan of 2009 During 2009, the Company adopted the Omnibus Stock Incentive Plan of 2009 (the " DPS Stock Plan ") under which employees, consultants and non-employee directors may be granted stock options, stock appreciation rights, stock awards, RSU s or PSU s. This plan provides for the issuance of up to 20 million shares of the Company 's common stock. Subsequent to adoption, the Company 's Compensation Committee granted RSU s and PSU s, which vest after three years, and stock options, which vest ratably over three years. Each RSU is to be settled for one share of the Company 's common stock on the respective vesting date of the RSU . Each PSU is to be settled for one share of the Company's common stock on the respective vesting date of the PSU, adjusted for internal return measurement results. PSU grants made during the year ended December 31, 2015 will also be adjusted for relative stock price performance on the respective vesting date of the PSU. No other types of stock-based awards have been granted under the DPS Stock Plan . Approximately 11 million shares of the Company 's common stock were available for future grant as of December 31, 2015 . The stock options issued under the DPS Stock Plan have a maximum option term of 10 years . STOCK OPTIONS The tables below summarize information about the Company 's stock options granted during the years ended December 31, 2015, 2014 and 2013 . The fair value of each stock option is estimated on the date of grant using the Black-Scholes option-pricing model. The risk-free interest rate used in the option valuation model is based on zero-coupon yields implied by U.S. Treasury issues with remaining terms similar to the expected term on the options. The expected term of the option represents the period of time that options granted are expected to be outstanding and is derived by analyzing historic exercise behavior. Expected volatility is based on implied volatilities from traded options on the Company 's stock, historical volatility of the Company 's stock and other factors. The Company 's expected dividend yield is based on historical dividends declared. The weighted average assumptions used to value grant options are detailed below: For the Year Ended December 31, 2015 2014 2013 Fair value of options at grant date $ 9.22 $ 5.80 $ 6.92 Risk free interest rate 1.28 % 1.25 % 0.68 % Expected term of options (in years) 3.9 4.4 4.5 Dividend yield 2.55 % 3.35 % 3.39 % Expected volatility 18.98 % 20.03 % 27.42 % The table below summarizes stock option activity for the year ended December 31, 2015 : Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Outstanding as of January 1, 2015 1,529,235 $ 45.27 8.20 $ 40 Granted 427,698 79.20 Exercised (711,032 ) 41.55 27 Forfeited or expired (14,783 ) 64.22 Outstanding as of December 31, 2015 1,231,118 58.98 8.24 42 Exercisable as of December 31, 2015 201,445 45.80 7.37 10 As of December 31, 2015 , there were 1,223,827 stock options vested or expected to vest. The weighted average exercise price of stock options granted for the years ended December 31, 2014 and 2013 was $51.68 and $43.82 , respectively. The aggregate intrinsic value of the stock options exercised for the years ended December 31, 2014 and 2013 was $24 million and $8 million , respectively. As of December 31, 2015 , there was $4 million of unrecognized compensation cost related to unvested stock options granted under the DPS Stock Plan that is expected to be recognized over a weighted average period of 0.78 years . RESTRICTED STOCK UNITS The table below summarizes RSU activity for the year ended December 31, 2015 . The fair value of restricted stock units is determined based on the number of units granted and the grant date price of common stock. RSUs Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Outstanding as of January 1, 2015 1,925,934 $ 43.85 1.08 $ 138 Granted 380,349 79.18 Vested and released (760,878 ) 38.00 60 Forfeited (47,989 ) 56.30 Outstanding as of December 31, 2015 1,497,416 55.40 1.03 140 The total fair value of RSU s vested for the years ended December 31, 2015, 2014 and 2013 was $29 million , $27 million , and $27 million , respectively. The aggregate intrinsic value of the RSU s vested and released for the years ended December 31, 2014 and 2013 was $38 million and $37 million , respectively. As of December 31, 2015 , there was $34 million of unrecognized compensation cost related to unvested RSU s granted under the DPS Stock Plan that is expected to be recognized over a weighted average period of 1.01 years . During the year ended December 31, 2015 , 760,878 units subject to previously granted RSU s vested. A majority of these vested stock awards were net share settled. The Company withheld issuance of 237,175 shares based upon the Company 's closing stock price on the vesting date to settle the employees' minimum statutory obligation for the applicable income and other employment taxes. Subsequently, the Company remitted the required funds to the appropriate taxing authorities. Total payments for the employees' tax obligations to the relevant taxing authorities were $22 million , $14 million , and $13 million for the years ended December 31, 2015, 2014 and 2013 , respectively. These payments are reflected as a financing activity within the consolidated statements of cash flows. These payments were used for tax withholdings related to the net share settlements of RSU s and dividend equivalent units (" DEUs "). These payments had the effect of share repurchases by the Company as they reduced the number of shares that would have otherwise been issued on the vesting date and were recorded as a reduction of additional paid-in capital. PERFORMANCE SHARE UNITS In 2011, the Compensation Committee of the Board approved a PSU plan. Each PSU is equivalent in value to one share of the Company 's common stock. PSU s granted prior to January 1, 2015, will vest three years from the beginning date of a pre-determined performance period to the extent the Company has met two performance criteria during the performance period: (i) the percentage growth of net income and (ii) the percentage yield from operating free cash flow. PSU s granted after January 1, 2015, are subject to an additional market condition, which compares the Company 's relative total shareholder return performance against the total shareholder return of a specified list of peer companies over the term of the award. The maximum payout percentage for all PSU s granted by the Company is 200% . The PSUs that are subject to the market condition are valued using a Monte Carlo simulation model, which requires certain assumptions, including the risk-free interest rate, expected volatility, and the expected term of the award. The risk-free interest rate used in the Monte Carlo simulation model is based on zero-coupon yields implied by U.S. Treasury issues with remaining terms similar to the performance period on the PSUs. The performance period of the PSUs represents the period of time between the PSU grant date and the end of the performance period. Expected volatility is based on historical data of the Company and peer companies over the most recent time period equal to the performance period. For PSU grants during the year ended December 31, 2015 , the assumptions used in the Monte Carlo simulation are as follows: For the Year Ended December 31, 2015 Risk-free interest rate 1.00 % Expected volatility 16.29 % Performance period (years) 2.8 The table below summarizes PSU activity for the year ended December 31, 2015 . The fair value of performance share units is determined based on the number of units granted and the grant date price of common stock. PSUs Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Outstanding as of January 1, 2015 444,281 $ 44.97 1.07 $ 32 Granted 120,682 77.13 Performance adjustment (1) 70,430 38.07 Vested and released (188,675 ) 37.80 15 Forfeited (3,344 ) 63.31 Outstanding as of December 31, 2015 443,374 55.54 0.88 41 ____________________________ (1) For PSU s which vested during the year ended December 31, 2015 , the Company awarded additional PSUs, as actual results measured at the end of the performance period exceeded target performance levels. As of December 31, 2015 , there was $11 million of unrecognized compensation cost related to unvested PSU s granted under the DPS Stock Plan that is expected to be recognized over a weighted average period of 1.44 years . During the year ended December 31, 2015 , 188,675 units subject to previously granted PSU s vested. A majority of these vested PSU s were net share settled. The Company withheld issuance of 62,208 shares based upon the Company 's closing stock price on the vesting date to settle the employees' minimum statutory obligation for the applicable income and other employment taxes. Subsequently, the Company remitted the required funds to the appropriate taxing authorities. Total payments for the employees' tax obligations to the relevant taxing authorities were $5 million and $2 million for the years ended December 31, 2015 and 2014 , respectively. There were no payments made to the relevant taxing authorities for the year ended December 31, 2013 for the employees' tax obligations as the Company did not have any PSU s that were vested and released. These payments are reflected as a financing activity within the consolidated statements of cash flows. These payments were used for tax withholdings related to the net share settlements of PSU s and DEUs . These payments had the effect of share repurchases by the Company as they reduced the number of shares that would have otherwise been issued on the vesting date and were recorded as a reduction of additional paid-in capital. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share (" EPS ") is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the assumed conversion of all dilutive securities. The following table presents the basic and diluted EPS and the Company 's basic and diluted shares outstanding for the years ended December 31, 2015, 2014 and 2013 : For the Year Ended December 31, (in millions, except per share data) 2015 2014 2013 Basic EPS: Net income $ 764 $ 703 $ 624 Weighted average common shares outstanding 190.9 195.8 202.9 Earnings per common share — basic $ 4.00 $ 3.59 $ 3.08 Diluted EPS: Net income $ 764 $ 703 $ 624 Weighted average common shares outstanding 190.9 195.8 202.9 Effect of dilutive securities: Stock options 0.3 0.3 0.3 RSUs 0.9 1.2 1.3 PSUs 0.3 0.1 — Weighted average common shares outstanding and common stock equivalents 192.4 197.4 204.5 Earnings per common share — diluted $ 3.97 $ 3.56 $ 3.05 Stock options, RSU s, PSU s and associated DEUs totaling 0.3 million shares were excluded from the diluted weighted average shares outstanding for the years ended December 31, 2015 and 2014 , as they were not dilutive. Stock options, RSU s, PSU s and associated DEUs totaling 0.5 million shares were excluded from the diluted weighted average shares outstanding for the year ended December 31, 2013 , as they were not dilutive. Under the terms of our RSU and PSU agreements, unvested RSU and PSU awards contain forfeitable rights to dividends and DEUs . Because the DEUs are forfeitable, they are defined as non-participating securities. As of December 31, 2015 , there were 101,707 DEUs , which will vest at the time that the underlying RSU and PSU vests. Through 2011, the Board authorized a total aggregate share repurchase plan of $3 billion . In February 2015, the Board authorized an additional $1 billion of share repurchases. The Company repurchased and retired 6.5 million shares of common stock valued at approximately $521 million , 6.8 million shares of common stock valued at approximately $400 million and 8.7 million shares of common stock valued at approximately $400 million for the years ended December 31, 2015, 2014 and 2013 , respectively. These amounts were recorded as a reduction of equity, primarily additional paid-in capital. As of December 31, 2015 , $651 million remains available for share repurchase under the Board authorization. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2015 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table provides a summary of changes in the balances of each component of AOCL , net of taxes, for the years ended December 31, 2015, 2014 and 2013 : (in millions) Foreign Currency Translation Adjustments Net Change in Pension Liability Net Change in Cash Flow Hedges Accumulated Other Comprehensive Loss Balance as of January 1, 2013 $ (8 ) $ (56 ) $ (46 ) $ (110 ) OCI before reclassifications (9 ) 19 3 13 Amounts reclassified from AOCL — 4 5 9 Net current year OCI (9 ) 23 8 22 Balance as of December 31, 2013 (17 ) (33 ) (38 ) (88 ) OCI before reclassifications (44 ) (19 ) (2 ) (65 ) Amounts reclassified from AOCL — 12 4 16 Net current year OCI (44 ) (7 ) 2 (49 ) Balance as of December 31, 2014 (61 ) (40 ) (36 ) (137 ) OCI before reclassifications (64 ) — (2 ) (66 ) Amounts reclassified from AOCL — 4 4 8 Net current year OCI (64 ) 4 2 (58 ) Balance as of December 31, 2015 $ (125 ) $ (36 ) $ (34 ) $ (195 ) The following table presents the amount of loss reclassified from AOCL into the Consolidated Statements of Income for the years ended December 31, 2015, 2014 and 2013 : For the Year Ended December 31, (in millions) Location of (Loss) Gain Reclassified from AOCL into Net Income 2015 2014 2013 (Loss) Gain on cash flow hedges: Interest rate contracts Interest expense $ (8 ) $ (8 ) $ (7 ) Foreign exchange forward contracts Cost of sales 2 1 (1 ) Total (6 ) (7 ) (8 ) Income tax expense (2 ) (3 ) (3 ) Total $ (4 ) $ (4 ) $ (5 ) Defined benefit pension and postretirement plan items: Amortization of prior service costs Selling, general and administrative expenses $ — $ — $ 1 Amortization of actuarial losses, net Selling, general and administrative expenses (4 ) (3 ) (4 ) Settlement loss Selling, general and administrative expenses (3 ) (16 ) (3 ) Total (7 ) (19 ) (6 ) Income tax expense (3 ) (7 ) (2 ) Total $ (4 ) $ (12 ) $ (4 ) Total reclassifications $ (8 ) $ (16 ) $ (9 ) |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following table details supplemental cash flow disclosures of non-cash investing and financing activities for the years ended December 31, 2015, 2014 and 2013 : For the Year Ended December 31, (in millions) 2015 2014 2013 Supplemental cash flow disclosures of non-cash investing and financing activities: Dividends declared but not yet paid $ 90 $ 79 $ 75 Capital expenditures included in accounts payable and other current liabilities 14 11 21 Holdback liability for acquisition of business — 2 — Stock issued for acquisition of business — — 13 Capital lease additions (1) 55 31 1 Supplemental cash flow disclosures: Interest paid $ 94 $ 94 $ 107 Income taxes paid 346 345 310 __________________________ (1) During the year ended December 31, 2014, the Company converted a number of month-to-month operating leases into capital leases, which is presented as a non-cash financing activity. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | Leases The Company has leases for certain facilities, fleet and equipment which expire at various dates through 2030. Some lease agreements contain standard renewal provisions that allow us to renew the lease at rates equivalent to fair market value at the end of the lease term. Under lease agreements that contain escalating rent provisions, operating lease expense is recorded on a straight-line basis over the lease term. Under lease agreements that contain rent holidays, rent expense is recorded on a straight-line basis over the entire lease term, including the period covered by the rent holiday. Operating lease expense was $60 million , $69 million and $76 million for the years ended December 31, 2015, 2014 and 2013 , respectively. Future minimum lease payments under operating leases with initial or remaining noncancellable lease terms in excess of one year and capital leases as of December 31, 2015 are as follows: (in millions) Operating Leases Capital Leases 2016 $ 44 $ 17 2017 37 17 2018 30 17 2019 27 16 2020 22 15 Thereafter 70 193 Total minimum lease payments $ 230 275 Less imputed interest (139 ) Present value of minimum lease payments $ 136 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies LEGAL MATTERS The Company is occasionally subject to litigation or other legal proceedings. The Company does not believe that the outcome of these, or any other, pending legal matters, individually or collectively, will have a material adverse effect on the results of operations, financial condition or liquidity of the Company . ENVIRONMENTAL, HEALTH AND SAFETY MATTERS The Company operates many manufacturing, bottling and distribution facilities. In these and other aspects of the Company 's business, it is subject to a variety of federal, state and local environmental, health and safety laws and regulations. The Company maintains environmental, health and safety policies and a quality, environmental, health and safety program designed to ensure compliance with applicable laws and regulations. However, the nature of the Company 's business exposes it to the risk of claims with respect to environmental, health and safety matters, and there can be no assurance that material costs or liabilities will not be incurred in connection with such claims. The federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, also known as the Superfund law, as well as similar state laws, generally impose joint and several liability for cleanup and enforcement costs on current and former owners and operators of a site without regard to fault or the legality of the original conduct. In October 2008, DPS was notified by the Environmental Protection Agency that it is a potentially responsible party for study and cleanup costs at a Superfund site in New Jersey. Investigation and remediation costs are yet to be determined, therefore no reasonable estimate exists on which to base a loss accrual. Through December 31, 2015 , the Company has paid approximately $850,000 since the notification for DPS ' allocation of costs related to the study for this site. |
Segments
Segments | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segments | Segments As of December 31, 2015 and 2014 and for the years ended December 31, 2015, 2014 and 2013 , the Company 's operating structure consisted of the following three operating segments: • The Beverage Concentrates segment reflects sales of the Company 's branded concentrates and syrup to third party bottlers primarily in the U.S. and Canada. Most of the brands in this segment are carbonated soft drink brands. • The Packaged Beverages segment reflects sales in the U.S. and Canada from the manufacture and distribution of finished beverages and other products, including sales of the Company 's own brands and third party brands, through both DSD and WD . • The Latin America Beverages segment reflects sales in the Mexico, Caribbean, and other international markets from the manufacture and distribution of concentrates, syrup and finished beverages. Segment results are based on management reports. Net sales and SOP are the significant financial measures used to assess the operating performance of the Company 's operating segments. Information about the Company 's operations by operating segment as of December 31, 2015 and 2014 and for the years ended December 31, 2015, 2014 and 2013 is as follows: For the Year Ended December 31, (in millions) 2015 2014 2013 Segment Results – Net sales Beverage Concentrates $ 1,241 $ 1,228 $ 1,229 Packaged Beverages 4,544 4,361 4,306 Latin America Beverages 497 532 462 Net sales $ 6,282 $ 6,121 $ 5,997 For the Year Ended December 31, (in millions) 2015 2014 2013 Segment Results – SOP Beverage Concentrates $ 807 $ 790 $ 778 Packaged Beverages 709 636 525 Latin America Beverages 88 78 61 Total SOP 1,604 1,504 1,364 Unallocated corporate costs 299 323 309 Other operating expense, net 7 1 9 Income from operations 1,298 1,180 1,046 Interest expense, net 115 107 121 Other expense (income), net (1 ) — 383 Income before provision (benefit) for income taxes and equity in earnings of unconsolidated subsidiaries $ 1,184 $ 1,073 $ 542 For the Year Ended December 31, (in millions) 2015 2014 2013 Amortization expense Beverage Concentrates $ 12 $ 16 $ 17 Packaged Beverages 7 7 7 Latin America Beverages — — — Segment total 19 23 24 Corporate and other 16 13 14 Total amortization expense $ 35 $ 36 $ 38 For the Year Ended December 31, (in millions) 2015 2014 2013 Depreciation expense Beverage Concentrates $ 7 $ 7 $ 5 Packaged Beverages 161 165 164 Latin America Beverages 14 15 14 Segment total 182 187 183 Corporate and other 10 12 13 Total depreciation expense $ 192 $ 199 $ 196 As of December 31, (in millions) 2015 2014 Identifiable operating assets Beverage Concentrates $ 4,099 $ 4,096 Packaged Beverages 3,429 3,409 Latin America Beverages 303 315 Segment total 7,831 7,820 Corporate and other 1,007 431 Total identifiable operating assets 8,838 8,251 Investments 31 14 Total assets $ 8,869 $ 8,265 GEOGRAPHIC DATA The Company utilizes separate legal entities for transactions with customers outside of the United States. Information about the Company 's operations by geographic region as of December 31, 2015 and 2014 and for the years ended December 31, 2015 , 2014 and 2013 is below: For the Year Ended December 31, (in millions) 2015 2014 2013 Net sales U.S. $ 5,575 $ 5,361 $ 5,292 International 707 760 705 Total net sales $ 6,282 $ 6,121 $ 5,997 As of December 31, (in millions) 2015 2014 Property, plant and equipment, net U.S. $ 1,041 $ 1,039 International 115 102 Total property, plant and equipment, net $ 1,156 $ 1,141 MAJOR CUSTOMER Walmart represents one of the Company 's major customers and accounted for more than 10% of total net sales for the years ended December 31, 2015 , 2014 and 2013 . For the years ended December 31, 2015 , 2014 and 2013 , DPS recorded net sales to Walmart of $779 million , $740 million and $734 million , respectively. These represent direct sales from the Company to Walmart and were reported in DPS ' Packaged Beverages and Latin America Beverages segments. Additionally, customers in the Company 's Beverage Concentrates segment buy concentrate from DPS which is used in finished goods sold by the Company 's third party bottlers to Walmart. These indirect sales further increase the concentration of risk associated with DPS ' consolidated net sales as it relates to Walmart. |
Guarantor and Non-Guarantor Fin
Guarantor and Non-Guarantor Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Guarantor and Non-Guarantor Financial Information | Guarantor and Non-Guarantor Financial Information The Company 's 2016, 2018, 2019, 2020, 2021, 2022, 2025, 2038, and 2045 Notes (collectively, the " Notes ") are fully and unconditionally guaranteed by substantially all of the Company 's existing and future direct and indirect domestic subsidiaries (except two immaterial subsidiaries associated with charitable purposes) (the " Guarantors "), as defined in the indentures governing the Notes . The Guarantors are 100% owned either directly or indirectly by the Company and jointly and severally guarantee, subject to the release provisions described below, the Company 's obligations under the Notes . None of the Company 's subsidiaries organized outside of the U.S. or immaterial subsidiaries used for charitable purposes (collectively, the " Non-Guarantors ") guarantee the Notes . The subsidiary guarantees with respect to the Notes are subject to release upon the occurrence of certain events, including the sale of all or substantially all of a subsidiary's assets, the release of the subsidiary's guarantee of other indebtedness of the Company , the Company 's exercise of its legal defeasance option with respect to the Notes and the discharge of the Company 's obligations under the applicable indenture. The following schedules present the financial information for Dr Pepper Snapple Group, Inc. (the " Parent "), Guarantors and Non-Guarantors . The consolidating schedules are provided in accordance with the reporting requirements for guarantor subsidiaries. Condensed Consolidating Statements of Income For the Year Ended December 31, 2015 (in millions) Parent Guarantors Non-Guarantors Eliminations Total Net sales $ — $ 5,668 $ 633 $ (19 ) $ 6,282 Cost of sales — 2,280 298 (19 ) 2,559 Gross profit — 3,388 335 — 3,723 Selling, general and administrative expenses — 2,105 208 — 2,313 Multi-employer pension plan withdrawal — — — — — Depreciation and amortization — 99 6 — 105 Other operating expense (income), net — (1 ) 8 — 7 Income from operations — 1,185 113 — 1,298 Interest expense 228 56 — (167 ) 117 Interest income (42 ) (120 ) (7 ) 167 (2 ) Other (income) expense, net (1 ) (6 ) 6 — (1 ) Income (loss) before provision (benefit) for income taxes and equity in earnings of subsidiaries (185 ) 1,255 114 — 1,184 Provision (benefit) for income taxes (85 ) 472 33 — 420 Income (loss) before equity in earnings of subsidiaries (100 ) 783 81 — 764 Equity in earnings of consolidated subsidiaries 864 81 — (945 ) — Equity in earnings of unconsolidated subsidiaries, net of tax — — — — — Net income $ 764 $ 864 $ 81 $ (945 ) $ 764 Condensed Consolidating Statements of Income For the Year Ended December 31, 2014 (in millions) Parent Guarantors Non-Guarantors Eliminations Total Net sales $ — $ 5,474 $ 681 $ (34 ) $ 6,121 Cost of sales — 2,191 334 (34 ) 2,491 Gross profit — 3,283 347 — 3,630 Selling, general and administrative expenses 1 2,106 227 — 2,334 Multi-employer pension plan withdrawal — — — — — Depreciation and amortization — 107 8 — 115 Other operating expense, net — 1 — — 1 Income from operations (1 ) 1,069 112 — 1,180 Interest expense 104 51 — (46 ) 109 Interest income (40 ) — (8 ) 46 (2 ) Other expense (income), net (2 ) (3 ) 5 — — Income (loss) before provision (benefit) for income taxes and equity in earnings of subsidiaries (63 ) 1,021 115 — 1,073 Provision (benefit) for income taxes (38 ) 383 26 — 371 Income (loss) before equity in earnings of subsidiaries (25 ) 638 89 — 702 Equity in earnings of consolidated subsidiaries 728 90 — (818 ) — Equity in earnings of unconsolidated subsidiaries, net of tax — — 1 — 1 Net income $ 703 $ 728 $ 90 $ (818 ) $ 703 Condensed Consolidating Statements of Income For the Year Ended December 31, 2013 (in millions) Parent Guarantors Non-Guarantors Eliminations Total Net sales $ — $ 5,406 $ 623 $ (32 ) $ 5,997 Cost of sales — 2,240 291 (32 ) 2,499 Gross profit — 3,166 332 — 3,498 Selling, general and administrative expenses 4 2,048 220 — 2,272 Multi-employer pension plan withdrawal — 56 — — 56 Depreciation and amortization — 107 8 — 115 Other operating expense, net — 9 — — 9 Income from operations (4 ) 946 104 — 1,046 Interest expense 118 89 — (84 ) 123 Interest income (77 ) — (9 ) 84 (2 ) Other expense (income), net 383 (6 ) 6 — 383 Income (loss) before provision (benefit) for income taxes and equity in earnings of subsidiaries (428 ) 863 107 — 542 Provision (benefit) for income taxes (16 ) (147 ) 82 — (81 ) Income (loss) before equity in earnings of subsidiaries (412 ) 1,010 25 — 623 Equity in earnings of consolidated subsidiaries 1,036 26 — (1,062 ) — Equity in earnings of unconsolidated subsidiaries, net of tax — — 1 — 1 Net income $ 624 $ 1,036 $ 26 $ (1,062 ) $ 624 Condensed Consolidating Statements of Comprehensive Income For the Year Ended December 31, 2015 (in millions) Parent Guarantors Non-Guarantors Eliminations Total Net income $ 764 $ 864 $ 81 $ (945 ) $ 764 Other comprehensive income (loss), net of tax: Other comprehensive income impact from consolidated subsidiaries (67 ) (100 ) — 167 — Foreign currency translation adjustments 7 31 (102 ) — (64 ) Net change in pension liability, net of tax — 2 2 — 4 Net change in cash flow hedges, net of tax 2 — — — 2 Total other comprehensive income (loss), net of tax (58 ) (67 ) (100 ) 167 (58 ) Comprehensive income (loss) $ 706 $ 797 $ (19 ) $ (778 ) $ 706 Condensed Consolidating Statements of Comprehensive Income For the Year Ended December 31, 2014 (in millions) Parent Guarantors Non-Guarantors Eliminations Total Net income $ 703 $ 728 $ 90 $ (818 ) $ 703 Other comprehensive income (loss), net of tax: Other comprehensive income impact from consolidated subsidiaries (57 ) (66 ) — 123 — Foreign currency translation adjustments 4 15 (63 ) — (44 ) Net change in pension liability, net of tax — (6 ) (1 ) — (7 ) Net change in cash flow hedges, net of tax 4 — (2 ) — 2 Total other comprehensive income (loss), net of tax (49 ) (57 ) (66 ) 123 (49 ) Comprehensive income (loss) $ 654 $ 671 $ 24 $ (695 ) $ 654 Condensed Consolidating Statements of Comprehensive Income For the Year Ended December 31, 2013 (in millions) Parent Guarantors Non-Guarantors Eliminations Total Net income $ 624 $ 1,036 $ 26 $ (1,062 ) $ 624 Other comprehensive income (loss), net of tax: Other comprehensive income impact from consolidated subsidiaries 11 (19 ) — 8 — Foreign currency translation adjustments 6 11 (26 ) — (9 ) Net change in pension liability, net of tax — 19 4 — 23 Net change in cash flow hedges, net of tax 5 — 3 — 8 Total other comprehensive income (loss), net of tax 22 11 (19 ) 8 22 Comprehensive income (loss) $ 646 $ 1,047 $ 7 $ (1,054 ) $ 646 Condensed Consolidating Balance Sheets As of December 31, 2015 (in millions) Parent Guarantors Non-Guarantors Eliminations Total Current assets: Cash and cash equivalents $ — $ 859 $ 52 $ — $ 911 Accounts receivable: Trade, net — 516 54 — 570 Other 3 40 15 — 58 Related party receivable 11 25 — (36 ) — Inventories — 173 36 — 209 Deferred tax assets — — — — — Prepaid expenses and other current assets 300 55 5 (291 ) 69 Total current assets 314 1,668 162 (327 ) 1,817 Property, plant and equipment, net — 1,041 115 — 1,156 Investments in consolidated subsidiaries 7,062 583 — (7,645 ) — Investments in unconsolidated subsidiaries — 20 11 — 31 Goodwill — 2,972 16 — 2,988 Other intangible assets, net — 2,610 53 — 2,663 Long-term receivable, related parties 3,159 4,989 283 (8,431 ) — Other non-current assets 58 90 2 — 150 Non-current deferred tax assets 20 — 65 (21 ) 64 Total assets $ 10,613 $ 13,973 $ 707 $ (16,424 ) $ 8,869 Current liabilities: Accounts payable $ — $ 252 $ 25 $ — $ 277 Related party payable 18 11 7 (36 ) — Deferred revenue — 63 1 — 64 Short-term borrowings and current portion of long-term obligations 500 7 — — 507 Income taxes payable — 306 12 (291 ) 27 Other current liabilities 126 539 43 — 708 Total current liabilities 644 1,178 88 (327 ) 1,583 Long-term obligations to third parties 2,746 129 — — 2,875 Long-term obligations to related parties 4,989 3,442 — (8,431 ) — Non-current deferred tax liabilities — 808 — (21 ) 787 Non-current deferred revenue — 1,154 27 — 1,181 Other non-current liabilities 51 200 9 — 260 Total liabilities 8,430 6,911 124 (8,779 ) 6,686 Total stockholders' equity 2,183 7,062 583 (7,645 ) 2,183 Total liabilities and stockholders' equity $ 10,613 $ 13,973 $ 707 $ (16,424 ) $ 8,869 Condensed Consolidating Balance Sheets As of December 31, 2014 (in millions) Parent Guarantors Non-Guarantors Eliminations Total Current assets: Cash and cash equivalents $ — $ 186 $ 51 $ — $ 237 Accounts receivable: Trade, net — 494 62 — 556 Other 3 42 16 — 61 Related party receivable 10 10 — (20 ) — Inventories — 168 36 — 204 Deferred tax assets — 65 3 (1 ) 67 Prepaid and other current assets 218 67 9 (208 ) 86 Total current assets 231 1,032 177 (229 ) 1,211 Property, plant and equipment, net — 1,039 102 — 1,141 Investments in consolidated subsidiaries 6,194 612 — (6,806 ) — Investments in unconsolidated subsidiaries 1 — 13 — 14 Goodwill — 2,971 19 — 2,990 Other intangible assets, net — 2,615 69 — 2,684 Long-term receivable, related parties 3,118 4,647 295 (8,060 ) — Other non-current assets 55 90 6 — 151 Non-current deferred tax assets 23 — 74 (23 ) 74 Total assets $ 9,622 $ 13,006 $ 755 $ (15,118 ) $ 8,265 Current liabilities: Accounts payable $ — $ 258 $ 31 $ — $ 289 Related party payable — 10 10 (20 ) — Deferred revenue — 62 2 — 64 Short-term borrowings and current portion of long-term obligations — 3 — — 3 Income taxes payable — 212 6 (208 ) 10 Other current liabilities 112 512 49 (1 ) 672 Total current liabilities 112 1,057 98 (229 ) 1,038 Long-term obligations to third parties 2,497 83 — — 2,580 Long-term obligations to related parties 4,647 3,413 — (8,060 ) — Non-current deferred tax liabilities — 824 — (23 ) 801 Non-current deferred revenue — 1,216 34 — 1,250 Other non-current liabilities 72 219 11 — 302 Total liabilities 7,328 6,812 143 (8,312 ) 5,971 Total stockholders' equity 2,294 6,194 612 (6,806 ) 2,294 Total liabilities and stockholders' equity $ 9,622 $ 13,006 $ 755 $ (15,118 ) $ 8,265 Condensed Consolidating Statements of Cash Flows For the Year Ended December 31, 2015 (in millions) Parent Guarantors Non-Guarantors Eliminations Total Operating activities: Net cash (used in) provided by operating activities $ (209 ) $ 1,105 $ 95 $ — $ 991 Investing activities: Acquisition of business — — — — — Purchase of property, plant and equipment — (133 ) (46 ) — (179 ) Purchase of intangible assets — (1 ) — — (1 ) Investment in unconsolidated subsidiaries — (20 ) — — (20 ) Purchase of cost method investments — (15 ) — — (15 ) Proceeds from disposals of property, plant and equipment — 20 — — 20 Issuance of related party notes receivable — (340 ) (39 ) 379 — Other, net 1 — — — 1 Net cash (used in) provided by investing activities 1 (489 ) (85 ) 379 (194 ) Financing activities: Proceeds from issuance of related party debt 340 39 — (379 ) — Proceeds from issuance of senior unsecured notes 750 — — — 750 Repurchase of shares of common stock (521 ) — — — (521 ) Dividends paid (355 ) — — — (355 ) Tax withholdings related to net share settlements of certain stock awards (27 ) — — — (27 ) Proceeds from stock options exercised 30 — — — 30 Excess tax benefit on stock-based compensation — 23 — — 23 Deferred financing charges (6 ) — — — (6 ) Capital lease payments — (5 ) — — (5 ) Other, net (3 ) — — — (3 ) Net cash (used in) provided by financing activities 208 57 — (379 ) (114 ) Cash and cash equivalents — net change from: Operating, investing and financing activities — 673 10 — 683 Effect of exchange rate changes on cash and cash equivalents — — (9 ) — (9 ) Cash and cash equivalents at beginning of period — 186 51 — 237 Cash and cash equivalents at end of period $ — $ 859 $ 52 $ — $ 911 Condensed Consolidating Statements of Cash Flows For the Year Ended December 31, 2014 (in millions) Parent Guarantors Non-Guarantors Eliminations Total Operating activities: Net cash (used in) provided by operating activities $ (122 ) $ 1,055 $ 89 $ — $ 1,022 Investing activities: Acquisition of business — (19 ) — — (19 ) Purchase of property, plant and equipment — (130 ) (40 ) — (170 ) Purchase of intangible assets — (1 ) — — (1 ) Return of capital — 2 (2 ) — — Proceeds from disposals of property, plant and equipment — 8 — — 8 Issuance of related party notes receivable — (882 ) (55 ) 937 — Other, net (3 ) — — — (3 ) Net cash (used in) provided by investing activities (3 ) (1,022 ) (97 ) 937 (185 ) Financing activities: Proceeds from issuance of related party debt 882 55 — (937 ) — Repurchase of shares of common stock (400 ) — — — (400 ) Dividends paid (317 ) — — — (317 ) Tax withholdings related to net share settlements of certain stock awards (16 ) — — — (16 ) Net issuance of commercial paper (65 ) — — — (65 ) Proceeds from stock options exercised 41 — — — 41 Excess tax benefit on stock-based compensation — 11 — — 11 Capital lease payments — (1 ) — — (1 ) Net cash (used in) provided by financing activities 125 65 — (937 ) (747 ) Cash and cash equivalents — net change from: Operating, investing and financing activities — 98 (8 ) — 90 Effect of exchange rate changes on cash and cash equivalents — — (6 ) — (6 ) Cash and cash equivalents at beginning of period — 88 65 — 153 Cash and cash equivalents at end of period $ — $ 186 $ 51 $ — $ 237 Condensed Consolidating Statements of Cash Flows For the Year Ended December 31, 2013 (in millions) Parent Guarantors Non-Guarantors Eliminations Total Operating activities: Net cash (used in) provided by operating activities $ (99 ) $ 889 $ 84 $ (8 ) $ 866 Investing activities: Acquisition of business — (10 ) — — (10 ) Purchase of property, plant and equipment — (154 ) (25 ) — (179 ) Purchase of intangible assets — (5 ) — — (5 ) Return of capital — 19 (19 ) — — Proceeds from disposals of property, plant and equipment — 1 — — 1 Issuance of related party notes receivable — (810 ) (80 ) 890 — Repayment of related party notes receivable 250 65 — (315 ) — Other, net (3 ) 1 — — (2 ) Net cash (used in) provided by investing activities 247 (893 ) (124 ) 575 (195 ) Financing activities: Proceeds from issuance of related party debt 802 80 8 (890 ) — Repayment of related party debt (65 ) (250 ) — 315 — Repayment of senior unsecured notes (250 ) — — — (250 ) Repurchase of shares of common stock (400 ) — — — (400 ) Dividends paid (302 ) — (8 ) 8 (302 ) Tax withholdings related to net share settlements of certain stock awards (13 ) — — — (13 ) Net issuance of commercial paper 65 — — — 65 Proceeds from stock options exercised 15 — — — 15 Excess tax benefit on stock-based compensation — 6 — — 6 Capital lease payments — (1 ) — — (1 ) Net cash (used in) provided by financing activities (148 ) (165 ) — (567 ) (880 ) Cash and cash equivalents — net change from: Operating, investing and financing activities — (169 ) (40 ) — (209 ) Effect of exchange rate changes on cash and cash equivalents — — (4 ) — (4 ) Cash and cash equivalents at beginning of year — 257 109 — 366 Cash and cash equivalents at end of year $ — $ 88 $ 65 $ — $ 153 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | Selected Quarterly Financial Data (unaudited) The following table summarizes the Company 's information on net sales, gross profit, net income, earnings per share and other quarterly financial data by quarter for the years ended December 31, 2015 and 2014 . This data, with the exception of the common stock prices, was derived from the Company 's unaudited consolidated financial statements. (in millions, except per share data) First Second Third Fourth For the Year Ended December 31, Quarter Quarter Quarter Quarter 2015 Net sales $ 1,451 $ 1,655 $ 1,630 $ 1,546 Gross profit 849 981 957 936 Net income 157 220 202 185 Earnings per common share — basic $ 0.82 $ 1.15 $ 1.06 $ 0.98 Earnings per common share — diluted 0.81 1.14 1.05 0.97 Weighted average common shares outstanding — basic 193.0 191.4 190.4 188.7 Weighted average common shares outstanding — diluted 194.6 192.4 191.5 190.2 Dividend declared per share $ 0.48 $ 0.48 $ 0.48 $ 0.48 Common stock price High $ 81.45 $ 79.98 $ 83.57 $ 95.26 Low 70.78 72.58 72.00 78.01 2014 Net sales $ 1,398 $ 1,631 $ 1,583 $ 1,509 Gross profit 844 966 925 895 Net income 155 210 188 150 Earnings per common share — basic $ 0.78 $ 1.07 $ 0.97 $ 0.77 Earnings per common share — diluted 0.78 1.06 0.96 0.77 Weighted average common shares outstanding — basic 197.9 196.6 194.8 194.0 Weighted average common shares outstanding — diluted 199.5 197.8 196.2 195.8 Dividend declared per share $ 0.41 $ 0.41 $ 0.41 $ 0.41 Common stock price High $ 54.46 $ 60.22 $ 65.32 $ 74.00 Low 47.22 51.19 58.41 61.85 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Event In January 2016, the Company used a portion of the net proceeds from the November 2015 issuance of the 2025 and 2045 Notes for repayment of the aggregate principal amount of the 2016 Notes of $500 million at maturity. |
Business and Basis of Present35
Business and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations [Text Block] | Nature of Operations DPS is a leading integrated brand owner, manufacturer and distributor of non-alcoholic beverages in the United States (" U.S. "), Mexico and Canada with a diverse portfolio of flavored (non-cola) carbonated soft drinks (" CSD s") and non-carbonated beverages (" NCB s"), including ready-to-drink teas, juices, juice drinks, mixers and water. The Company's brand portfolio includes popular CSD brands such as Dr Pepper, Canada Dry, Peñafiel, Squirt, 7UP, Crush, A&W, Sunkist soda and Schweppes, and NCB brands such as Snapple, Hawaiian Punch, Mott's and Clamato. The Company was incorporated in Delaware on October 24, 2007. In 2008, Cadbury separated its beverage business in the U.S. , Canada, Mexico and the Caribbean (the " Americas Beverages business ") from its global confectionery business by contributing the subsidiaries that operated its Americas Beverages business to the Company. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation DPS consolidates all wholly-owned subsidiaries. Investments in entities in which DPS does not have a controlling financial interest are accounted for under either the equity method or cost method of accounting, as appropriate. Judgment regarding the level of influence over each equity method or cost method investment includes considering key factors such as ownership interest, representation on the board of directors, participation in policy-making decisions and material intercompany transactions. The Company is also required to consolidate entities that are variable interest entities (“ VIE s”) of which DPS is the primary beneficiary. Judgments are made in assessing whether the Company is the primary beneficiary, including determination of the activities that most significantly impact the VIE ’s economic performance. During the year ended December 31, 2014, the Company provided 100% financing to a VIE as part of a short term leasing structure for which DPS is the primary beneficiary. As a result, DPS consolidated that entity. The Company ’s financing of the VIE , which totaled $21 million as of December 31, 2014, included a transfer of cash and assignment of the rights to deposits previously made with a manufacturer in prior years. The Company 's financing of the VIE , which eliminates in consolidation, was used by the VIE to purchase certain property, plant and equipment. During the year ended December 31, 2015 , the leasing arrangement with the VIE was terminated through the Company assuming ownership of the property, plant and equipment purchased by the VIE as repayment of the $21 million financed by the Company . No gain or loss was recorded as a result of the termination. The Company eliminates from its financial results all intercompany transactions between entities included in the consolidated financial statements and the intercompany transactions with its equity method investees. |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (" U.S. GAAP "). In the opinion of management, all adjustments, consisting principally of normal recurring adjustments, considered necessary for a fair presentation have been included. |
Reclassifications [Text Block] | Reclassifications Reclassifications have been made to the prior year Consolidated Balance Sheets to conform with the current year presentation. The Company early adopted Accounting Standards Update (" ASU ") 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, requiring that issuance costs related to a long-term debt issuance be presented as a direct deduction from the carrying amount of that debt. In prior years, we presented unamortized debt issuance costs as current and non-current other assets. With the adoption of the new pronouncement, unamortized debt issuance costs associated with outstanding long-term debt have been classified as a reduction of the carrying value of long-term debt as of December 31, 2015 and 2014 . For further information on the impact to our presentation of our long-term debt, see Note 9 to the Audited Consolidated Financial Statements . Capital lease payments have been reclassified from other, net to capital lease payments caption within the financing activities section in the Consolidated Statements of Cash Flows for prior years to conform to the current year's presentation with no impact to total cash provided by (used in) operating, investing or financing activities. The reclassification to the Consolidated Statements of Cash Flows also resulted in corresponding changes to prior years presentation in Note 23. |
Significant Accounting Polici36
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The process of preparing DPS ' consolidated financial statements in conformity with U.S. GAAP requires the use of estimates and judgments that affect the reported amount of assets, liabilities, revenue and expenses. These estimates and judgments are based on historical experience, future expectations and other factors and assumptions the Company believes to be reasonable under the circumstances. These estimates and judgments are reviewed on an ongoing basis and are revised when necessary. Changes in estimates are recorded in the period of change. Actual amounts may differ from these estimates. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents include cash and investments in short-term, highly liquid securities, with original maturities of three months or less. The Company is exposed to potential risks associated with its cash and cash equivalents. DPS places its cash and cash equivalents with high credit quality financial institutions. Deposits with these financial institutions may exceed the amount of insurance provided; however, these deposits typically are redeemable upon demand and, therefore, the Company believes the financial risks associated with these financial instruments are minimal. |
Receivables, Policy [Policy Text Block] | Trade Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The Company is exposed to potential credit risks associated with its accounts receivable, as it generally does not require collateral on its accounts receivable. The Company determines the required allowance for doubtful collections using information such as its customer credit history and financial condition, industry and market segment information, economic trends and conditions and credit reports. Allowances can be affected by changes in the industry, customer credit issues or customer bankruptcies. Account balances are charged against the allowance when it is determined that the receivable will not be recovered. The Company has not experienced significant credit-related losses. Activity in the allowance for doubtful accounts during the years ended December 31, 2015, 2014 and 2013 was as follows: (in millions) 2015 2014 2013 Balance, beginning of the year $ 2 $ 3 $ 3 Charges to bad debt expense 2 1 1 Write-offs and adjustments (2 ) (2 ) (1 ) Balance, end of the year $ 2 $ 2 $ 3 As of December 31, 2015 and 2014 , Walmart accounted for approximately $65 million and $67 million of trade receivables, respectively, which exceeded 10% of the Company 's total trade accounts receivable. |
Inventory, Policy [Policy Text Block] | Inventories Inventories are stated at the lower of cost or market value. Cost is primarily determined for inventories of the Company 's U.S. subsidiaries by the last-in, first-out (" LIFO ") valuation method. The cost for inventories of the Company 's foreign subsidiaries is determined by the first-in, first-out (" FIFO ") valuation method. The costs of finished goods inventories include raw materials, direct labor and indirect production and overhead costs. Reserves for excess and obsolete inventories are based on an assessment of slow-moving and obsolete inventories, determined by historical usage and demand. Excess and obsolete inventory reserves were $2 million as of December 31, 2015 and 2014 . Refer to Note 4 for additional information . |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment, Net Property, plant and equipment is stated at cost plus capitalized interest on borrowings during the actual construction period of major capital projects, net of accumulated depreciation. Significant improvements which substantially extend the useful lives of assets are capitalized. The costs of major rebuilds and replacements of plant and equipment are capitalized and expenditures for repairs and maintenance which do not improve or extend the life of the assets are expensed as incurred. The Company capitalizes certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use, which are included in property, plant and equipment. When property, plant and equipment is sold or retired, the costs and the related accumulated depreciation are removed from the accounts, and any net gain or loss is recorded in other operating expense, net in the Consolidated Statements of Income. Refer to Note 5 for additional information . For financial reporting purposes, depreciation is computed on the straight-line method over the estimated useful asset lives as follows: Type of Asset Useful Life Buildings 40 years Building improvements 5 to 35 years Machinery and equipment 3 to 25 years Vehicles 5 to 18 years Cold drink equipment 3 to 7 years Computer software 3 to 8 years Leasehold improvements are depreciated over the shorter of the estimated useful life of the assets or the lease term. Estimated useful lives are periodically reviewed and, when warranted, are updated. The Company periodically reviews long-lived assets for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. In order to assess recoverability, DPS compares the estimated undiscounted future pre-tax cash flows from the use of the asset or group of assets, as defined, to the carrying amount of such assets. Measurement of an impairment loss is based on the excess of the carrying amount of the asset or group of assets over the long-lived asset's fair value. As of December 31, 2015 and 2014 , no analysis was warranted. |
Investment, Policy [Policy Text Block] | Investments The Company holds investment securities under the deferred compensation plan, which consist of readily marketable equity securities. Gains or losses from investments classified as trading, if any, are charged to earnings. The Company also holds non-controlling investments in certain privately held entities which are accounted for as equity method or cost method investments. The companies over which we exert significant influence, but do not control the financial and operating decisions, are accounted for as equity method investments. The Company 's proportionate share of the net income (loss) resulting from these investments are reported under the line item captioned equity in earnings of unconsolidated subsidiaries, net of tax, in the Consolidated Statements of Income. The carrying value of our equity method investments is reported in investments in unconsolidated subsidiaries in our Consolidated Balance Sheets. Refer to Note 6 for additional information . Other investments that are not controlled, and over which we do not have the ability to exercise significant influence, are accounted for under the cost method and reported in other non-current assets in our Consolidated Balance Sheets. Refer to Note 11 for additional information . The Company 's equity method investments are reported at cost and adjusted each period for the Company’s share of the investee’s income or loss and dividend paid, if any, while cost method investments are carried at cost. The entities do not have a readily determinable fair value and are periodically evaluated for impairment. An impairment loss would be recorded whenever a decline in value of an investment below its carrying amount is determined to be other than temporary. |
Goodwill and Indefinite-Lived Intangible Assets | Goodwill and Other Intangible Assets The Company classifies intangible assets into two categories: (1) intangible assets with definite lives subject to amortization and (2) intangible assets with indefinite lives not subject to amortization. The majority of the Company 's intangible asset balance is made up of brands which the Company has determined to have indefinite useful lives. In arriving at the conclusion that a brand has an indefinite useful life, management reviews factors such as size, diversification and market share of each brand. Management expects to acquire, hold and support brands for an indefinite period through consumer marketing and promotional support. The Company also considers factors such as its ability to continue to protect the legal rights that arise from these brand names indefinitely or the absence of any regulatory, economic or competitive factors that could truncate the life of the brand name. If the criteria are not met to assign an indefinite life, the brand is amortized over its expected useful life. Identifiable intangible assets deemed by the Company to have determinable finite useful lives are amortized on a straight-line basis over their estimated useful lives as follows: Type of Intangible Asset Useful Life Customer relationships 10 years Distribution rights 5 to 15 years DPS conducts tests for impairment in accordance with U.S. GAAP . For intangible assets with definite lives, tests for impairment are performed if conditions exist that indicate the carrying value may not be recoverable. For goodwill and indefinite-lived intangible assets, the Company conducts tests for impairment annually, as of October 1, or more frequently if events or circumstances indicate the carrying amount may not be recoverable. We use present value and other valuation techniques to make this assessment. The tests for impairment include significant judgment in estimating the fair value of reporting units and intangible assets primarily by analyzing forecasts of future revenues and profit performance. Fair value is based on what the reporting units and intangible assets would be worth to a third party market participant. Discount rates are based on a weighted average cost of equity and cost of debt, adjusted with various risk premiums. Management's estimates of fair value, which fall under Level 3, are based on historical and projected operating performance. Refer to Note 7 for additional information . |
Deferred Charges [Policy Text Block] | Capitalized Customer Incentive Programs The Company provides support to certain customers to cover various programs and initiatives to increase net sales, including contributions to customers or vendors for cold drink equipment used to market and sell the Company 's products. These programs and initiatives generally directly benefit the Company over a period of time. Accordingly, costs of these programs and initiatives are recorded in prepaid expenses and other current assets and other non-current assets in the Consolidated Balance Sheets. The costs for these programs are amortized over the period to be directly benefited based upon a methodology consistent with the Company 's contractual rights under these arrangements. These programs and initiatives recorded in the current and non-current assets within the Consolidated Balance Sheets were $73 million , net of accumulated amortization, as of December 31, 2015 and 2014 . The amortization charge for the cost of contributions to customers or vendors for cold drink equipment was $4 million , $4 million and $3 million during the years ended December 31, 2015, 2014 and 2013 , respectively, and was recorded in selling, general and administ rative (" SG&A ") expenses in the Consolidated Statements of Income. The amortization charge for the cost of other programs and incentives was $9 million , $13 million and $15 million during the years ended December 31, 2015, 2014 and 2013 , respectively, and was recorded as a deduction from gross sales. |
Derivatives, Policy [Policy Text Block] | Derivatives The Company formally designates and accounts for certain interest rate contracts and foreign exchange forward contracts that meet established accounting criteria under U.S. GAAP as either fair value or cash flow hedges. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instruments is recorded, net of applicable taxes, in Accumulated Other Comprehensive Loss (" AOCL "), a component of Stockholders' Equity in the Consolidated Balance Sheets. When net income is affected by the variability of the underlying transaction, the applicable offsetting amount of the gain or loss from the derivative instrument deferred in AOCL is reclassified to net income and is reported as a component of the Consolidated Statements of Income. For derivative instruments that are designated and qualify as fair value hedges, the effective change in the fair value of the instrument as well as the offsetting gain or loss on the hedged item attributable to the hedged risk, are recognized immediately in current-period earnings. For derivatives that are not designated as a hedging instrument, which creates an economic hedge, or de-designated as a hedging instrument, the gain or loss on the instrument is recognized in earnings in the period of change. Certain interest rate swap agreements qualify for the shortcut method of accounting for hedges under U.S. GAAP . Under the shortcut method, the hedges are assumed to be perfectly effective and no ineffectiveness is recorded in earnings. For all other designated hedges, the Company assesses at the time the derivative contract is entered into, and at least quarterly thereafter, whether the derivative instrument is effective in offsetting the changes in fair value or cash flows. DPS also measures hedge ineffectiveness on a quarterly basis throughout the designated period. For fair value hedges, changes in the fair value of the derivative instrument that do not effectively offset changes in the fair value of the underlying hedged item throughout the designated hedge period are recorded in earnings each period. For cash flow hedges, ineffectiveness, if any, related to the Company's changes in estimates about the forecasted transaction would be recognized directly in earnings during the period incurred. If a fair value or cash flow hedge were to cease to qualify for hedge accounting, or were terminated, it would continue to be carried on the balance sheet at fair value until settled, but hedge accounting would be discontinued prospectively. If the underlying hedged transaction ceases to exist, any associated amounts reported in AOCL are reclassified to earnings at that time. Refer to Note 10 for additional information . |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value The fair value of senior unsecured notes and marketable securities as of December 31, 2015 and 2014 are based on quoted market prices for publicly traded securities. The Company estimates fair values of financial instruments measured at fair value in the financial statements on a recurring basis to ensure they are calculated based on market rates to settle the instruments. These values represent the estimated amounts DPS would pay or receive to terminate agreements, taking into consideration current market rates and creditworthiness. The fair value for financial instruments categorized as Level 1 is based on quoted prices in active markets for identical assets or liabilities. The fair value of financial instruments categorized as Level 2 is determined using valuation techniques based on inputs derived from observable market data, quoted market prices for similar instruments or pricing models, such as discounted cash flow techniques. Refer to Note 15 for additional information. Transfers between levels are recognized at the end of each reporting period. |
Pension and Postretirement Benefits | Pension and Postretirement Benefits The Company has U.S. and foreign pension and postretirement benefit plans which provide benefits to a defined group of employees who satisfy age and length of service requirements at the discretion of the Company . As of December 31, 2015 , the Company has several stand-alone non-contributory defined benefit plans and postretirement medical plans. Depending on the plan, pension and postretirement benefits are based on a combination of factors, which may include salary, age and years of service. Pension expense has been determined in accordance with the principles of U.S. GAAP . The Company 's policy is to fund pension plans in accordance with the requirements of the Employee Retirement Income Security Act of 1974, as amended. Employee benefit plan obligations and expenses included in the Consolidated Financial Statements are determined from actuarial analyses based on plan assumptions, employee demographic data, years of service, compensation, benefits and claims paid and employer contributions. The expense related to the postretirement plans has been determined in accordance with U.S. GAAP and the Company accrues the cost of these benefits during the years that employees render service. The Company participates in three multi-employer pension plans and makes contributions to those plans, which are recorded in either cost of sales or SG&A expenses. Withdrawal liabilities are recorded once the withdrawal is determined to be probable and estimable. Refer to Note 14 for additional information . |
Risk Management Programs | Risk Management Programs The Company retains selected levels of property, casualty, workers' compensation, health and other business risks. Many of these risks are covered under conventional insurance programs with high deductibles or self-insured retentions. Accrued liabilities related to the retained casualty and health risks are calculated based on loss experience and development factors, which contemplate a number of variables including claim history and expected trends. As of December 31, 2015 and 2014 , the Company had accrued liabilities related to the retained risks of $117 million and $136 million , respectively, including both other current and long-term liabilities. As of December 31, 2015 and 2014 , the Company recorded receivables of $21 million and $35 million , respectively, for insurance recoveries related to these retained risks. |
Income Taxes | Income Taxes Income taxes are accounted for using the asset and liability approach under U.S. GAAP . This method involves determining the temporary differences between assets and liabilities recognized for financial reporting and the corresponding amounts recognized for tax purposes and computing the tax-related carryforwards at the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The resulting amounts are deferred tax assets or liabilities. The total of taxes currently payable per the tax return, the deferred tax expense or benefit and the impact of uncertain tax positions represents the income tax expense or benefit for the year for financial reporting purposes. The Company periodically assesses the likelihood of realizing its deferred tax assets based on the amount that the Company believes is more likely than not to be realized. The Company bases its judgment of the recoverability of its deferred tax assets primarily on historical earnings, its estimate of current and expected future earnings and prudent and feasible tax planning strategies. Refer to Note 12 for additional information . The Company establishes income tax liabilities to remove some or all of the income tax benefit of any of the Company 's income tax positions at the time DPS determines that the positions become uncertain based upon one of the following: (1) the tax position is not "more likely than not" to be sustained, (2) the tax position is "more likely than not" to be sustained, but for a lesser amount, or (3) the tax position is "more likely than not" to be sustained, but not in the financial period in which the tax position was originally taken. The Company 's evaluation of whether or not a tax position is uncertain is based on the following: (1) DPS presumes the tax position will be examined by the relevant taxing authority such as the Internal Revenue Service (" IRS ") that has full knowledge of all relevant information, (2) the technical merits of a tax position are derived from authorities such as legislation and statutes, legislative intent, regulations, rulings and case law and their applicability to the facts and circumstances of the tax position, and (3) each tax position is evaluated without considerations of the possibility of offset or aggregation with other tax positions taken. The Company adjusts these income tax liabilities when the Company 's judgment changes as a result of new information. Any change will impact income tax expense in the period in which such determination is made. |
Stockholders' Equity, Policy [Policy Text Block] | Common Stock Share Repurchases The Company may repurchase shares of DPS common stock under a program authorized by the Board of Directors, including plans meeting the requirements of Rule 10b5-1(c)(1) of the Securities Exchange Act of 1934. Shares repurchased are retired and not displayed separately as treasury stock on the financial statements. Instead, the par value of repurchased shares is deducted from common stock and the excess repurchase price over par value is deducted from additional paid-in capital and from retained earnings, once additional paid-in capital is depleted. |
Revenue Recognition | Revenue Recognition The Company recognizes sales revenue when all of the following have occurred: (1) delivery; (2) persuasive evidence of an agreement exists; (3) pricing is fixed or determinable; and (4) collection is reasonably assured. Delivery is not considered to have occurred until the title and the risk of loss passes to the customer. Net sales are reported net of costs associated with customer marketing programs and incentives, as described below, as well as sales taxes and other similar taxes. Multiple deliverables were included in the arrangements entered into with PepsiCo, Inc. (" PepsiCo ") and The Coca-Cola Company (" Coca-Cola ") during 2010. In these cases, the Company first determined whether each deliverable met the separation criteria under U.S. GAAP . The primary requirement for a deliverable to meet the separation criteria is if the deliverable has stand-alone value to the customer. Each deliverable that meets the separation criteria is considered a separate "unit of accounting". As the sale of the manufacturing and distribution rights and the ongoing sales of concentrate would not have stand-alone value to the customer, both deliverables were determined to represent a single element of accounting for purposes of revenue recognition. The one-time nonrefundable cash receipts from PepsiCo and Coca-Cola were therefore recorded as deferred revenue and are recognized as net sales ratably over the estimated 25 -year life of the customer relationship. |
Customer Marketing Programs and Incentives | Customer Marketing Programs and Incentives The Company offers a variety of incentives and discounts to bottlers, customers and consumers through various programs to support the distribution of its products. These incentives and discounts include cash discounts, price allowances, volume based rebates, product placement fees and other financial support for items such as trade promotions, displays, new products, consumer incentives and advertising assistance. These incentives and discounts are reflected as a reduction of gross sales to arrive at net sales. The aggregate deductions from gross sales recorded in relation to these programs were approximately $3,844 million , $3,682 million and $3,618 million during the years ended December 31, 2015, 2014 and 2013 , respectively. The amounts of trade spend are larger in the Packaged Beverages segment than those related to other parts of our business. Accruals are established for the expected payout based on contractual terms, volume-based metrics and/or historical trends and require management judgment with respect to estimating customer participation and performance levels. |
Cost of Sales, Policy [Policy Text Block] | Cost of Sales Cost of goods sold includes all costs to acquire and manufacture our products including raw materials, direct and indirect labor, manufacturing overhead, including depreciation expense, and all other costs incurred to bring the product to salable condition. All other costs incurred after this condition is met are considered selling costs and included in SG&A expenses. |
Shipping and Handling Cost, Policy [Policy Text Block] | Transportation and Warehousing Costs The Company incurred $806 million , $802 million and $776 million of transportation and warehousing costs during the years ended December 31, 2015, 2014 and 2013 , respectively. These amounts, which primarily relate to shipping and handling costs are recorded in SG&A expenses in the Consolidated Statements of Income. |
Advertising Costs, Policy [Policy Text Block] | Advertising and Marketing Expense Advertising and marketing production costs related to television, print, radio and other marketing investments are expensed as of the first date the advertisement takes place. All other advertising and marketing costs are expensed as incurred. Advertising and marketing expense was approximately $473 million , $473 million and $486 million during the years ended December 31, 2015, 2014 and 2013 , respectively. These expenses are recorded in SG&A expenses in the Consolidated Statements of Income. As of December 31, 2015 and 2014 , prepaid advertising and marketing costs of approximately $11 million and $17 million , respectively, were recorded as other current and non-current assets in the Consolidated Balance Sheets. |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Costs Research and development costs are expensed when incurred and amounted to $19 million , $18 million and $21 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. These expenses are recorded in SG&A expenses in the Consolidated Statements of Income. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation Expense The Company accounts for its stock-based compensation plans in accordance with U.S. GAAP , which requires the recognition of compensation expense in the Consolidated Statements of Income related to the fair value of employee stock-based awards. Compensation cost is based on the grant-date fair value, which is estimated using the Black-Scholes option pricing model for stock options. The fair value of restricted stock units (" RSU s") and performance-based restricted stock units (" PSU s") without a market condition is determined based on the number of units granted and the grant date price of common stock. Beginning with the 2015 grant, the fair value of the market-based PSU s is estimated at the date of grant using a Monte-Carlo simulation. Stock-based compensation expense is recognized ratably, less estimated forfeitures, over the vesting period in the Consolidated Statements of Income. Stock-based compensation expense for PSU s is adjusted quarterly based on the current estimate of performance compared to the target metrics. Refer to Note 16 for additional information . |
Compensation Related Costs, Policy [Policy Text Block] | Deferred Compensation Plan Employee and employer matching contributions under the Supplemental Savings Plan (" SSP ") are maintained in a rabbi trust and are not readily available to us. Participants can direct the investment of their deferred compensation plan accounts in the same investment funds offered by the DPS ' Savings Incentive Plan (the " SIP ") . Although participants direct the investment of these funds, the investments are classified as trading securities and are included in other non-current assets. The corresponding liability related to the deferred compensation plan is recorded in other non-current liabilities. Gains and losses in connection with these trading securities are recorded in other expense (income), net, with an offset for the same amount recorded in SG&A expenses. The Company had deferred compensation plan assets of $25 million as of December 31, 2015 and 2014 . There were no gains or losses associated with these trading securities for the year ended December 31, 2015 . Gains associated with these trading securities were $1 million for the year ended December 31, 2014 . |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation and Transaction 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 2015 17.25 15.87 2014 14.74 13.31 2013 13.08 12.77 Canadian Dollar to U.S. Dollar Exchange Rate End of Year Rates Annual Average Rates 2015 1.38 1.28 2014 1.16 1.10 2013 1.06 1.03 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 | Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (" FASB ") issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (" ASU 2014-09 "). The new guidance sets forth a new five-step revenue recognition model which replaces the prior revenue recognition guidance in its entirety and is intended to eliminate numerous industry-specific pieces of revenue recognition guidance that have historically existed in U.S. GAAP . The underlying principle of the new standard is that a business or other organization will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects what it expects in exchange for the goods or services. The standard also requires more detailed disclosures and provides additional guidance for transactions that were not addressed completely in the prior accounting guidance. ASU 2014-09 provides alternative methods of initial adoption. In August 2015, the FASB issued ASU 2015-14 , Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , which defers the effective date of ASU 2014-09 by one year to December 15, 2017 for interim and annual reporting periods beginning after that date and permitted early adoption of the standard, but not before the original effective date. The Company is currently evaluating the impact that these standards will have on the Consolidated Financial Statements and does not plan to early adopt the ASU. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory (" ASU 2015-11 "). This ASU requires inventories measured under any methods other than LIFO or the retail inventory method to be subsequently measured at the lower of cost or net realizable value, rather than at the lower of cost or market. Subsequent measurement of inventory using LIFO or the retail inventory method is unchanged by this ASU . ASU 2015-11 is effective for public companies for interim and annual periods beginning after December 15, 2016. The Company does not anticipate a significant impact to the Company 's financial position as a result of this change. In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments ("ASU 2015-16"). This ASU amends U.S. GAAP to eliminate the requirement to retrospectively account for adjustments to provisional amounts recognized at the acquisition date of a business combination, when the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs. ASU 2015-16 is effective for public companies for interim and annual periods beginning after December 15, 2015. 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 January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . The ASU enhances the reporting model for financial instruments, which includes amendments to address aspects of recognition, measurement, presentation and disclosure. The update to the standard is effective for public companies for interim and annual periods beginning after December 15, 2017. The Company is currently evaluating the impact that the standard will have on the Consolidated Financial Statements. |
Recently Adopted Provisions of U.S. GAAP | Recently Adopted Provisions of U.S. GAAP In accordance with ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes , the requirement for all deferred tax assets and liabilities to be classified as non-current in the Consolidated Balance Sheets was early adopted by the Company as of October 1, 2015 on a prospective basis. In accordance with ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs , the Company early adopted the requirement to present debt issuance costs related to a recognized debt liability on the balance sheet as a direct deduction from the related debt liability as of December 31, 2015 . As a result of the retrospective adoption, unamortized debt issuance costs of $8 million were reclassified from other non-current assets to long-term obligations within the Consolidated Balance Sheets as of December 31, 2014. |
Significant Accounting Polici37
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Allowance For Doubtful Accounts Activity [Table Text Block] | Activity in the allowance for doubtful accounts during the years ended December 31, 2015, 2014 and 2013 was as follows: (in millions) 2015 2014 2013 Balance, beginning of the year $ 2 $ 3 $ 3 Charges to bad debt expense 2 1 1 Write-offs and adjustments (2 ) (2 ) (1 ) Balance, end of the year $ 2 $ 2 $ 3 |
Property, Plant and Equipment Useful Life [Table Text Block] | For financial reporting purposes, depreciation is computed on the straight-line method over the estimated useful asset lives as follows: Type of Asset Useful Life Buildings 40 years Building improvements 5 to 35 years Machinery and equipment 3 to 25 years Vehicles 5 to 18 years Cold drink equipment 3 to 7 years Computer software 3 to 8 years |
Intangible Assets Life [Table Text Block] | Identifiable intangible assets deemed by the Company to have determinable finite useful lives are amortized on a straight-line basis over their estimated useful lives as follows: Type of Intangible Asset Useful Life Customer relationships 10 years Distribution rights 5 to 15 years |
Foreign Exchange Rates [Table Text Block] | 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 2015 17.25 15.87 2014 14.74 13.31 2013 13.08 12.77 Canadian Dollar to U.S. Dollar Exchange Rate End of Year Rates Annual Average Rates 2015 1.38 1.28 2014 1.16 1.10 2013 1.06 1.03 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Business Combinations [Abstract] | ||
Schedule of Business Acquisitions | The following table summarizes the allocation of fair value, as of the acquisition date, of the assets acquired and liabilities assumed by major class for the acquisition: (in millions) Fair Value Useful Life Property, plant & equipment $ 10 1 - 10 years Distribution rights: indefinite-lived 3 — Goodwill 6 — Current assets, net of current liabilities assumed 2 — Total $ 21 | The following table summarizes the allocation of fair value, as of the acquisition date, of the assets acquired and liabilities assumed by major class for the acquisition: (in millions) Fair Value Useful Life Property, plant & equipment $ 7 3 - 40 years Distribution rights: definite-lived 2 5 - 15 years Distribution rights: indefinite-lived 10 — Goodwill 5 — Current liabilities, net of current assets assumed (1 ) — Total $ 23 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories consisted of the following: | Inventories as of December 31, 2015 and 2014 consisted of the following: December 31, December 31, (in millions) 2015 2014 Raw materials $ 101 $ 92 Spare parts 18 18 Work in process 4 5 Finished goods 123 126 Inventories at FIFO cost 246 241 Reduction to LIFO cost (37 ) (37 ) Inventories $ 209 $ 204 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Net property, plant and equipment consisted of the following as of December 31, 2015 and 2014 : December 31, December 31, (in millions) 2015 2014 Land $ 73 $ 73 Buildings and improvements 504 488 Machinery and equipment 1,465 1,389 Cold drink equipment 279 299 Software 252 244 Construction in progress 76 49 Gross property, plant and equipment 2,649 2,542 Less: accumulated depreciation and amortization (1,493 ) (1,401 ) Net property, plant and equipment $ 1,156 $ 1,141 |
Property, Plant and Equipment Under Capital Lease [Table Text Block] | Net property, plant and equipment in the above table includes the following assets under capital lease as of December 31, 2015 and 2014 : December 31, December 31, (in millions) 2015 2014 Buildings and improvements $ 47 $ 49 Machinery and equipment 92 37 Gross property, plant and equipment under capital lease 139 86 Less: accumulated depreciation and amortization (15 ) (9 ) Net property, plant and equipment under capital lease $ 124 $ 77 |
Depreciation Expense by Income Statement Caption [Table Text Block] | The following table summarizes the location of depreciation expense within the Consolidated Statements of Income for the years ended December 31, 2015, 2014 and 2013 : For the Year Ended December 31, (in millions) 2015 2014 2013 Cost of sales $ 93 $ 89 $ 86 Depreciation and amortization 99 110 110 $ 192 $ 199 $ 196 |
Investments in Unconsolidated41
Investments in Unconsolidated Subsidiaries Investments in Unconsolidated Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments [Table Text Block] | The following table summarizes the equity method investments held by the Company as of December 31, 2015 and 2014 : Ownership December 31, December 31, (in millions) Interest 2015 2014 Industria Embotelladora de Bebidas Mexicanas (1) 50.0% $ 11 $ 13 Hydrive Energy, LLC (2) 40.4% — 1 BA Sports Nutrition, LLC (3) 11.7% 20 — Investments in Unconsolidated Subsidiaries $ 31 $ 14 ____________________________ (1) Investment is part of a joint venture with Acqua Minerale San Benedetto. For the year ended December 31, 2015 , the carrying value of the investment decreased due to a $2 million change in foreign currency translation. (2) On November 16, 2012, Hydrive Energy, LLC ("Hydrive") sold its intellectual property rights to Big Red Holdings, Inc. in exchange for earn-out payments to Hydrive based on the earnings associated with Hydrive functional beverages over the next fifteen years. As the expected earn-out payments did not support the value of the investment, the Company recognized an impairment of $1 million during the year ended December 31, 2015 . (3) On August 10, 2015, the Company acquired an 11.7% interest in BA Sports Nutrition, LLC for $20 million . The investment is accounted for as an equity method investment as the Company is deemed to have the ability to exercise influence through more than a minor interest in the investee in accordance with U.S. GAAP . |
Goodwill and Other Intangible42
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Change in goodwill by operating segments | Changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014 , by reporting unit, are as follows: (in millions) Beverage Concentrates WD Reporting Unit (1) DSD Reporting Unit (1) Latin America Beverages Total Balance as of January 1, 2014 Goodwill $ 1,732 $ 1,220 $ 185 $ 31 $ 3,168 Accumulated impairment losses — — (180 ) — (180 ) 1,732 1,220 5 31 2,988 Foreign currency impact — — — (3 ) (3 ) Acquisition activity (2) — 2 3 — 5 Balance as of December 31, 2014 Goodwill 1,732 1,222 188 28 3,170 Accumulated impairment losses — — (180 ) — (180 ) 1,732 1,222 8 28 2,990 Foreign currency impact 1 — — (4 ) (3 ) Acquisition activity (2) — — 1 — 1 Balance as of December 31, 2015 Goodwill 1,733 1,222 189 24 3,168 Accumulated impairment losses — — (180 ) — (180 ) $ 1,733 $ 1,222 $ 9 $ 24 $ 2,988 ____________________________ (1) The Packaged Beverages segment is comprised of two reporting units, the Direct Store Delivery (" DSD ") system and the Warehouse Direct (" WD ") system. (2) The acquisition activity represents the goodwill associated with the purchase of Davis. See Note 3 for further information related to the acquisition. |
Change in indefinite-lived intangible assets other than goodwill | The net carrying amounts of intangible assets other than goodwill as of December 31, 2015 and 2014 are as follows: December 31, 2015 December 31, 2014 Gross Accumulated Net Gross Accumulated Net (in millions) Amount Amortization Amount Amount Amortization Amount Intangible assets with indefinite lives: Brands (1) $ 2,627 $ — $ 2,627 $ 2,643 $ — $ 2,643 Distribution rights 27 — 27 27 — 27 Intangible assets with finite lives: Brands 29 (29 ) — 29 (28 ) 1 Distribution rights 14 (6 ) 8 13 (4 ) 9 Customer relationships 76 (75 ) 1 76 (72 ) 4 Bottler agreements 19 (19 ) — 19 (19 ) — Total $ 2,792 $ (129 ) $ 2,663 $ 2,807 $ (123 ) $ 2,684 ____________________________ (1) In 2015 , brands with indefinite lives decreased due to the $9 million impact of foreign currency translation and the $7 million impact of an impairment charge related to Garden Cocktail. |
Change in finite-lived intangible assets other than goodwill | The net carrying amounts of intangible assets other than goodwill as of December 31, 2015 and 2014 are as follows: December 31, 2015 December 31, 2014 Gross Accumulated Net Gross Accumulated Net (in millions) Amount Amortization Amount Amount Amortization Amount Intangible assets with indefinite lives: Brands (1) $ 2,627 $ — $ 2,627 $ 2,643 $ — $ 2,643 Distribution rights 27 — 27 27 — 27 Intangible assets with finite lives: Brands 29 (29 ) — 29 (28 ) 1 Distribution rights 14 (6 ) 8 13 (4 ) 9 Customer relationships 76 (75 ) 1 76 (72 ) 4 Bottler agreements 19 (19 ) — 19 (19 ) — Total $ 2,792 $ (129 ) $ 2,663 $ 2,807 $ (123 ) $ 2,684 ____________________________ (1) In 2015 , brands with indefinite lives decreased due to the $9 million impact of foreign currency translation and the $7 million impact of an impairment charge related to Garden Cocktail. |
Amortization expense of intangible assets | Amortization expense of these intangible assets over the next five years is expected to be the following: Year Aggregate Amortization Expense (in millions) 2016 $ 3 2017 1 2018 1 2019 1 2020 2 |
Range of discounts rates used in impairment analysis | The range of discount rates used for the 2015 and 2014 impairment analyses was as follows: 2015 Range 2014 Range Low High Low High Goodwill 5.00 % 9.10 % 5.10 % 10.60 % Intangible assets - brands 7.25 % 10.35 % 7.45 % 11.85 % |
Results of impairment analysis of indefinite-lived brands | The results of the impairment analysis of our indefinite-lived brands as of October 1, 2015 and 2014 are shown below: (in millions) 2015 Impairment Analysis (1) 2014 Impairment Analysis Headroom Percentage Fair Value Carrying Value Fair Value Carrying Value 0 - 10% $ — $ — $ — $ — 11 - 20% — — — — 21 - 50% — — 259 191 51 - 100% — — 710 464 > 100% 15,647 2,628 13,340 1,994 $ 15,647 $ 2,628 $ 14,309 $ 2,649 ____________________________ (1) Garden Cocktail was removed from this presentation as a result of the $7 million non-cash impairment charge. |
Prepaid Expenses and Other Cu43
Prepaid Expenses and Other Current Assets and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Prepaid Expenses and Other Current Assets and Other Current Liabilities [Abstract] | |
Prepaid expenses and other current assets and liabilities consisted | The table below details the components of prepaid expenses and other current assets and other current liabilities as of December 31, 2015 and 2014 : December 31, December 31, (in millions) 2015 2014 Prepaid expenses and other current assets: Customer incentive programs $ 21 $ 18 Derivative instruments 9 11 Current assets held for sale — 12 Other 39 45 Total prepaid expenses and other current assets $ 69 $ 86 Other current liabilities: Customer rebates and incentives $ 283 $ 248 Accrued compensation 133 127 Insurance liability 42 46 Interest accrual 30 26 Dividends payable 90 79 Derivative instruments 29 18 Other 101 128 Total other current liabilities $ 708 $ 672 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long Term Debt Obligations | The following table summarizes the Company 's long-term obligations as of December 31, 2015 and 2014 : December 31, December 31, (in millions) 2015 2014 Senior unsecured notes (1)(2) $ 3,246 $ 2,497 Capital lease obligations 136 86 Subtotal 3,382 2,583 Less — current portion (507 ) (3 ) Long-term obligations $ 2,875 $ 2,580 ____________________________ (1) The carrying amount includes the unamortized net discount on debt issuances and adjustments related to the change in the fair value of interest rate swaps designated as fair value hedges of $40 million and $34 million as of December 31, 2015 and 2014 , respectively . See Note 10 for further information regarding derivatives. (2) As of December 31, 2015, the Company early adopted the accounting standard requiring that issuance costs related to a recognized debt liability on the balance sheet be presented in the balance sheet as a direct deduction from the carrying value of the related debt liability, consistent with the presentation of discounts. As a result, $8 million was reclassified from other non-current assets to long-term obligations within the Consolidated Balance Sheets as of December 31, 2014. This table, and the tables below, reflect the detail of this presentation for our long-term obligations as of December 31, 2015 and 2014. |
Schedule of Short-term Debt | The following table summarizes the Company 's short-term borrowings and current portion of long-term obligations as of December 31, 2015 and 2014 : December 31, December 31, (in millions) 2015 2014 Commercial paper $ — $ — Current portion of long-term obligations Senior unsecured notes 500 — Capital lease obligations 7 3 Short-term borrowings and current portion of long-term obligations $ 507 $ 3 |
Schedule of Long-term Debt Instruments | The Company 's senior unsecured notes consisted of the following: Principal Amount Carrying Amount (in millions) December 31, December 31, December 31, Issuance Maturity Date Rate 2015 2015 2014 2016 Notes January 15, 2016 2.90% $ 500 $ 500 $ 499 2018 Notes May 1, 2018 6.82% 724 723 722 2019 Notes January 15, 2019 2.60% 250 250 249 2020 Notes January 15, 2020 2.00% 250 246 244 2021 Notes November 15, 2021 3.20% 250 250 248 2022 Notes November 15, 2022 2.70% 250 265 264 2025 Notes November 15, 2025 3.40% 500 494 — 2038 Notes May 1, 2038 7.45% 250 271 271 2045 Notes November 15, 2045 4.50% 250 247 — $ 3,224 $ 3,246 $ 2,497 |
Amount Utilized and Available for Revolver | The following table provides amounts utilized and available under the Revolver and each sublimit arrangement type as of December 31, 2015 : (in millions) Amount Utilized Balances Available Revolver $ — $ 500 Letters of credit — 75 Swingline advances — 50 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Fair Value Hedges [Table Text Block] | The following table presents information regarding these interest rate swaps and the associated hedging relationships: (in millions, except number of instruments) Impact to the carrying value Method of of long-term debt Hedging Number of measuring Notional December 31, December 31, Period entered relationship instruments effectiveness value 2015 2014 November 2011 2019 Notes 2 Short cut method $ 100 $ 1 — November 2011 2021 Notes 2 Short cut method 150 1 (1 ) November 2012 2020 Notes 5 Short cut method 120 (2 ) (4 ) December 2013 2022 Notes 4 Cumulative dollar offset (1) 250 17 16 February 2015 2038 Notes (2) 1 Regression 100 23 23 $ 40 $ 34 ____________________________ (1) The assessment of hedge effectiveness is made by comparing the cumulative change in the fair value of the hedged item attributable to changes in the benchmark interest rate with the cumulative changes in the fair value of the interest rate swap. (2) In December 2010, the Company entered into an interest rate swap having a notional amount of $100 million and maturing in May 2038 in order to effectively convert a portion of the 2038 Notes from fixed-rate debt to floating-rate debt and designated it as a fair value hedge. The assessment of hedge effectiveness is made by comparing the cumulative change in the fair value of the hedged item attributable to changes in the benchmark interest rate with the cumulative changes in the fair value of the interest rate swap, with any ineffectiveness recorded in earnings as interest expense during the period incurred. In February 2015, the swap agreement was modified and transferred to another counterparty through a novation transaction. As a result, the Company de-designated the original hedging relationship. Under the original hedging relationship, the $25 million recorded as an increase to debt due to the changes in fair market value of the debt will be amortized into earnings over the remaining term of the 2038 Notes. In February 2015, the Company then designated the new interest rate swap contract as a fair value hedge with a notional amount of $100 million and maturing in May 2038 in order to effectively convert a portion of the 2038 Notes from fixed-rate debt to floating-rate debt. The Company uses regression analysis to assess the prospective and retrospective effectiveness of this hedge relationship. |
Schedule of Derivative Instruments, Cash Flow Hedges [Table Text Block] | In order to hedge the variability in cash flows from interest rate changes associated with the Company's issuances of long-term debt during the fourth quarter of 2015, the Company entered into the following forward starting swap agreements in advance of these issuances: (in millions, except number of instruments) Future 30 year debt issuance Future 10 year debt issuance Number of Number of Period Entered instruments Notional value instruments Notional value Fourth quarter 2014 1 $ 125 — $ — First quarter 2015 3 100 — — Third quarter 2015 1 25 4 175 Fourth quarter 2015 — — 2 100 Total 5 $ 250 6 $ 275 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table summarizes the location of the fair value of the Company 's derivative instruments within the Consolidated Balance Sheets as of December 31, 2015 and 2014 : (in millions) Balance Sheet Location December 31, December 31, Assets: Derivative instruments designated as hedging instruments under U.S. GAAP: Interest rate contracts Prepaid expenses and other current assets $ 9 $ 11 Foreign exchange forward contracts Prepaid expenses and other current assets — — Interest rate contracts Other non-current assets 33 29 Derivative instruments not designated as hedging instruments under U.S. GAAP: Commodity contracts Prepaid expenses and other current assets — — Total assets $ 42 $ 40 Liabilities: Derivative instruments designated as hedging instruments under U.S. GAAP: Interest rate contracts Other current liabilities $ 1 $ — Interest rate contracts Other non-current liabilities 1 9 Derivative instruments not designated as hedging instruments under U.S. GAAP: Commodity contracts Other current liabilities 28 18 Commodity contracts Other non-current liabilities 3 8 Total liabilities $ 33 $ 35 |
Derivative Instruments Designated As Cash Flow Hedging Instruments | 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, 2015, 2014 and 2013 : Amount of (Loss) Gain Recognized in Amount of (Loss) Gain Reclassified from AOCL into Income Location of (Loss) Gain Reclassified from AOCL into Income (in millions) Other Comprehensive Income (Loss) ("OCI") For the year ended December 31, 2015: Interest rate contracts $ (5 ) $ (8 ) Interest expense Foreign exchange forward contracts 2 2 Cost of sales Total $ (3 ) $ (6 ) For the year ended December 31, 2014: Interest rate contracts $ (2 ) $ (8 ) Interest expense Foreign exchange forward contracts (2 ) 1 Cost of sales Total $ (4 ) $ (7 ) For the year ended December 31, 2013: Interest rate contracts $ — $ (7 ) Interest expense Foreign exchange forward contracts 4 (1 ) Cost of sales Total $ 4 $ (8 ) |
Derivative instruments designated as fair value hedging instruments | The following table presents the impact of derivative instruments designated as fair value hedging instruments under U.S. GAAP to the Consolidated Statements of Income for the years ended December 31, 2015, 2014 and 2013 : Amount of Gain Location of Gain (in millions) Recognized in Income Recognized in Income For the year ended December 31, 2015: Interest rate contracts (1) $ 17 Interest expense Total $ 17 For the year ended December 31, 2014: Interest rate contracts $ 16 Interest expense Total $ 16 For the year ended December 31, 2013: Interest rate contracts $ 9 Interest expense Total $ 9 ____________________________ (1) Interest expense for the year ended December 31, 2015 includes amortization of the interest rate swap associated with the 2038 Notes, which was de-designated in February 2015, and basis adjustments related to the 2038 and 2022 Notes. |
Schedule Of Derivative Instruments Not Designated As Hedging Instruments | The following table presents the impact of derivative instruments not designated as hedging instruments under U.S. GAAP to the Consolidated Statements of Income for the years ended December 31, 2015, 2014 and 2013 : Amount of (Loss) Gain Location of (Loss) Gain (in millions) Recognized in Income Recognized in Income For the year ended December 31, 2015: Commodity contracts (1) $ (24 ) Cost of sales Commodity contracts (1) (14 ) SG&A expenses Total $ (38 ) For the year ended December 31, 2014: Commodity contracts (1) $ 1 Cost of sales Commodity contracts (1) (26 ) SG&A expenses Total $ (25 ) For the year ended December 31, 2013: Commodity contracts (1) $ (24 ) Cost of sales Commodity contracts (1) 1 SG&A expenses Total $ (23 ) ____________________________ (1) Commodity contracts include both realized and unrealized gains and losses. |
Other Non-Current Assets and 46
Other Non-Current Assets and Other Non-Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Non-Current Assets and Other Non-Current Liabilities [Abstract] | |
Other noncurrent assets and other noncurrent liabilities consisted | The table below details the components of other non-current assets and other non-current liabilities as of December 31, 2015 and 2014 : December 31, December 31, (in millions) 2015 2014 Other non-current assets: Customer incentive programs $ 52 $ 55 Marketable securities - trading 25 25 Derivative instruments 33 29 Cost method investments (1) 15 — Other (2) 25 42 Total other non-current assets $ 150 $ 151 Other non-current liabilities: Long-term payables due to Mondelēz $ 26 $ 37 Long-term pension and post-retirement liability 40 44 Multi-employer pension plan withdrawal liability 56 57 Insurance liability 75 90 Derivative instruments 4 17 Deferred compensation liability 25 25 Other 34 32 Total other non-current liabilities $ 260 $ 302 ____________________________ (1) During the year ended December 31, 2015 , the Company acquired a minor interest in Bai Brands, LLC for $15 million . This investment is accounted for as a cost-method investment, as the Company owns a minor interest and does not have the ability to exercise significant influence over operating and financial policies of the entity. This cost method investment does not have a readily determinable fair value as the entity is not publicly traded. (2) As of December 31, 2015, the Company early adopted the accounting standard requiring that issuance costs related to a recognized debt liability on the balance sheet be presented in the balance sheet as a direct deduction from the carrying value of the related debt liability, consistent with the presentation of discounts. As a result, $8 million was reclassified from other non-current assets to long-term obligations within the Consolidated Balance Sheets as of December 31, 2014. Deferred financing costs associated with the Company 's Revolver remain classified in other non-current assets. The above table reflects this presentation as of December 31, 2015 and 2014. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Income before provision (benefit) for income taxes and equity in earnings of unconsolidated subsidiaries was as follows: For the Year Ended December 31, (in millions) 2015 2014 2013 U.S. $ 1,070 $ 958 $ 436 Non-U.S. 114 115 106 Total $ 1,184 $ 1,073 $ 542 |
Summary of Income Tax Contingencies [Table Text Block] | The provision (benefit) for income taxes has the following components: For the Year Ended December 31, (in millions) 2015 2014 2013 Current: Federal $ 307 $ 259 $ (211 ) State 52 49 (58 ) Non-U.S. 32 20 50 Total current provision (benefit) 391 328 (219 ) Deferred: Federal 21 36 95 State 7 1 10 Non-U.S. 1 6 33 Total deferred provision 29 43 138 Total provision (benefit) for income taxes $ 420 $ 371 $ (81 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The following is a reconciliation of the provision for income taxes computed at the U.S. federal statutory tax rate to the provision (benefit) for income taxes reported in the Consolidated Statements of Income: For the Year Ended December 31, (in millions) 2015 2014 2013 Statutory federal income tax of 35% $ 414 $ 375 $ 190 Completion of 2006-2008 IRS audit — — (463 ) Canada amortization law change — — 50 Impact of non-taxable indemnity income/non-tax deductible indemnity expense (1) — — 137 State income taxes, net 39 32 34 U.S. federal domestic manufacturing benefit (29 ) (26 ) (23 ) Impact of non-U.S. operations (7 ) (14 ) (7 ) Indemnified taxes (2) — — 5 Other 3 4 (4 ) Total provision (benefit) for income taxes $ 420 $ 371 $ (81 ) Effective tax rate 35.5 % 34.6 % (14.9 )% ____________________________ (1) Due to the resolution of the 2006-2008 IRS audit and the Canada amortization law change in 2013, the Company recognized indemnity expense, net of $392 million as a result of the Tax Sharing and Indemnification Agreement (" Tax Indemnity Agreement "). Since the indemnity expense is not deductible for income tax purposes, the benefit for income taxes also included a permanent difference of $137 million . (2) Amounts represent tax expense recorded by the Company for which Mondelēz was obligated to indemnify DPS under the Tax Indemnity Agreement but excludes the amounts with respect to the completion of the 2006-2008 IRS audit and the Canada amortization law change as they are separately shown on the rate reconciliation. |
Summary of Deferred Tax Liability Not Recognized [Table Text Block] | Deferred tax assets (liabilities) were comprised of the following as of December 31, 2015 and 2014 : December 31, December 31, (in millions) 2015 2014 Deferred income tax assets: Deferred revenue $ 474 $ 501 Accrued liabilities 69 72 Compensation 42 34 Pension and postretirement benefits 35 36 Net operating loss and credit carryforwards 21 22 Inventory 5 4 Other 38 37 684 706 Deferred income tax liabilities: Intangible assets and goodwill (1,162 ) (1,116 ) Fixed assets (192 ) (198 ) Other (25 ) (21 ) (1,379 ) (1,335 ) Valuation allowance (28 ) (31 ) Net deferred income tax liability $ (723 ) $ (660 ) |
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block] | The following is a reconciliation of the changes in the gross balance of unrecognized tax benefits for the years ended December 31, 2015 , 2014 and 2013 : December 31, December 31, December 31, (in millions) 2015 2014 2013 Beginning balance $ 13 $ 14 $ 469 Increases related to tax positions taken during the current year — — 1 Increases related to tax positions taken during the prior year 10 3 6 Decreases related to tax positions taken during the prior year (1 ) (2 ) (432 ) Decreases related to settlements with taxing authorities (2 ) (1 ) (27 ) Decreases related to lapse of applicable statute of limitations (1 ) (1 ) (3 ) Ending balance $ 19 $ 13 $ 14 |
Other Expense (Income), Net (Ta
Other Expense (Income), Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Components of other expense (income) [Table Text Block] | The table below details the components of other expense (income), net for the years ended December 31, 2015, 2014 and 2013 : For the Year Ended December 31, (in millions) 2015 2014 2013 Indemnity expense from Mondelēz $ — $ — $ 387 Other (1 ) — (4 ) Other (income) expense, net $ (1 ) $ — $ 383 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Funded Status [Table Text Block] | The following tables set forth amounts recognized in the Company 's financial statements and the pension plans' funded status for the years ended December 31, 2015 and 2014 : Pension Plans (in millions) 2015 2014 Projected Benefit Obligations As of beginning of year $ 227 $ 259 Service cost 3 2 Interest cost 9 13 Actuarial losses (gains), net (1) (14 ) 46 Benefits paid (3 ) (8 ) Currency exchange adjustments (3 ) (3 ) Settlements (2) (13 ) (82 ) As of end of year $ 206 $ 227 Fair Value of Plan Assets As of beginning of year $ 187 $ 237 Actual return on plan assets (7 ) 30 Employer contributions 8 12 Benefits paid (3 ) (8 ) Currency exchange adjustments (3 ) (2 ) Settlements (2) (13 ) (82 ) As of end of year $ 169 $ 187 Funded status of plan / net amount recognized $ (37 ) $ (40 ) Funded status — overfunded $ 1 $ — Funded status — underfunded (38 ) (40 ) Net amount recognized consists of: Non-current assets $ 1 $ — Current liabilities (1 ) — Non-current liabilities (37 ) (40 ) Net amount recognized $ (37 ) $ (40 ) ____________________________ (1) The Company updated the assumption of expected mortality for U.S. plans as of December 31, 2014, in order to reflect the Society of Actuaries' Retirement Plan Experience Committee's updated mortality tables and mortality improvement scale published in October 2014. (2) During 2014, the Company purchased annuity contracts from an insurance company to transfer its projected benefit obligation and assets related to participants currently receiving benefits as part of the U.S. defined benefit pension plans, which resulted in a $71 million reduction in both the projected benefit obligation and the plan assets as of December 31, 2014. |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block] | The following table summarizes key pension plan information regarding plans whose accumulated benefit obligations exceed the fair value of their respective plan assets: (in millions) 2015 2014 Aggregate projected benefit obligation $ 194 $ 226 Aggregate accumulated benefit obligation 190 223 Aggregate fair value of plan assets 156 186 |
Schedule of Net Benefit Costs [Table Text Block] | The following table summarizes the components of the net periodic benefit cost and changes in plan assets and benefit obligations recognized in OCI for the stand alone U.S. and foreign plans for the years ended December 31, 2015 , 2014 and 2013 : For the Year Ended December 31, (in millions) 2015 2014 2013 Net Periodic Benefit Costs Service cost $ 3 $ 2 $ 3 Interest cost 9 13 13 Expected return on assets (9 ) (14 ) (14 ) Amortization of net actuarial loss 4 3 4 Settlements 3 16 3 Net periodic benefit costs $ 10 $ 20 $ 9 Changes Recognized in OCI Settlement effects $ (3 ) $ (16 ) $ (3 ) Current year net actuarial loss (gain) 2 30 (29 ) Recognition of net actuarial loss (4 ) (3 ) (4 ) Total recognized in OCI $ (5 ) $ 11 $ (36 ) |
Schedule of Amounts Included in Accumulated Other Comprehensive Loss [Table Text Block] | The following table summarizes amounts included in AOCL for the plans as of December 31, 2015 and 2014 : Pension Plans (in millions) 2015 2014 Prior service cost (credits) $ 2 $ 2 Net losses 52 56 Amounts in AOCL $ 54 $ 58 |
Schedule of Contributions Made [Table Text Block] | The following table summarizes the contributions made to the Company 's pension plans for the years ended December 31, 2015 and 2014 , as well as the projected contributions for the year ending December 31, 2016 : Projected Actual (in millions) 2016 2015 2014 Pension plan contributions $ 1 $ 8 $ 12 |
Schedule of Expected Benefit Payments [Table Text Block] | The following table summarizes the expected future benefit payments cash activity for the Company 's pension plans in the future: (in millions) 2016 2017 2018 2019 2020 2021-2025 Pension plan expected future benefit payments $ 11 $ 12 $ 12 $ 12 $ 13 $ 66 |
Schedule of Assumptions Used [Table Text Block] | The following table summarizes the weighted-average assumptions used to determine benefit obligations at the plan measurement dates for U.S. and foreign pension plans: U.S. Foreign Pension Plans Pension Plans 2015 2014 2015 2014 Weighted-average discount rate 4.65 % 4.15 % 5.31 % 4.92 % Rate of increase in compensation levels 3.00 % 3.00 % 3.94 % 3.89 % The following table summarizes the weighted average actuarial assumptions used to determine the net periodic benefit costs for U.S. and foreign pension plans for the years ended December 31, 2015 , 2014 and 2013 : U.S. Foreign Pension Plans Pension Plans 2015 2014 2013 2015 2014 2013 Weighted-average discount rate 4.33 % 5.00 % 4.30 % 6.66 % 7.11 % 6.90 % Expected long-term rate of return on assets 5.25 % 6.00 % 6.00 % 6.72 % 7.41 % 7.68 % Rate of increase in compensation levels 3.00 % 3.00 % 3.00 % 4.47 % 4.30 % 4.24 % |
Schedule of Allocation of Plan Assets [Table Text Block] | The investment policy contains allowable ranges in asset mix as outlined in the table below: Asset Category Target Range U.S. equity securities 16% - 20% International equity securities 6% - 8% U.S. fixed income 69% - 81% The asset allocation for the U.S. defined benefit pension plans for December 31, 2015 and 2014 are as follows: Target Actual Asset Category 2016 2015 2014 Equity securities 25 % 25 % 25 % Fixed income 75 % 75 % 75 % Total 100 % 100 % 100 % Assets of the Pension Plans The following tables present the major categories of plan assets for the pension plan assets as of December 31, 2015 and 2014 : December 31, December 31, (in millions) 2015 2014 Cash and cash equivalents $ 5 $ 10 Equity securities U.S. Large-Cap equities 27 30 International equities 13 19 Fixed income securities Derivative financial instruments 19 31 U.S. Treasuries 12 22 U.S. Municipal bonds 5 5 U.S. Corporate bonds 86 82 International bonds 21 19 Total assets 188 218 Fixed income securities Derivative financial instruments 19 31 Total liabilities 19 31 Total net assets $ 169 $ 187 |
Schedule of Multi-employer Plan Expense [Table Text Block] | Contributions paid into the multi-employer plans are expensed as incurred. Multi-employer plan expense was as follows for the years ended December 31, 2015, 2014 and 2013 : For the Year Ended December 31, (in millions) 2015 2014 2013 Multi-employer Plan Expense Contributions to individually significant multi-employer plans (1) $ 1 $ 3 $ 3 Contributions to all other multi-employer plans 3 3 3 Withdrawal charge for individually significant multi-employer plans (2) — — 56 Withdrawal charge for all other multi-employer plans (3) — — 1 Total $ 4 $ 6 $ 63 ____________________________ (1) Contributions to individually significant multi-employer plans for the years ended December 31, 2014 and 2013 include amounts contributed to the Soft Drink Industry Local Union 710 Pension Fund (" Local 710 ") which the Company fully withdrew and ceased participation in the plan as of December 31, 2014. Local 710 was considered an individually significant multi-employer when the contributions were made to the plan prior to the withdrawal and for the years ended December 31, 2014 and 2013. (2) During the fourth quarter of 2013, the Company recognized a $56 million withdrawal charge for the withdrawal from the Local 710 . This item was presented as a multi-employer pension plan withdrawal in the Consolidated Statements of Income. As the withdrawal charge represents the Company 's best estimate of the potential amount of the quarterly assessment by Local 710 and the anticipated timing of those assessed payments, actual costs may differ from amounts recorded. (3) During the second quarter of 2013, the Company recognized a $1 million withdrawal charge for one of the collective bargaining units under a multi-employer pension plan based on the trustees' assessment. These charges were recorded as a component of SG&A expenses in the Consolidated Statements of Income. |
Schedule of Multiemployer Plans [Table Text Block] | The Company participates in the following individually significant multi-employer plan as of December 31, 2015 : Legal name of the plan Central States, Southeast and Southwest Areas Pension Fund ("Central States") Plan's Employer Identification Number 36-6044243 Plan Number 001 Expiration dates of the collective bargain agreements February 28, 2016 - May 1, 2020 (2) FIP/RP Status Pending/Implemented (1) Yes PPA zone status as of December 31, 2015 and 2014 Red Surcharge imposed Yes ____________________________ (1) FIP/RP Status Pending/Implemented indicates the plan for which a financial improvement plan ("FIP") or a rehabilitation plan ("RP") is either pending or implemented. (2) Central States includes eight collective bargaining agreements. The largest agreement, which is set to expire February 29, 2020, covers approximately 48% of the employees included in Central States . Approximately 14% of the employees included in Central States are covered by two collective bargaining agreements set to expire during 2016. |
Schedule of Future Estimated Contributions for Individually Significant Plans [Table Text Block] | Future estimated contributions for the Central States based on the number of covered employees and the terms of the collective bargaining agreements are as follows: (in millions) Estimated Year Contributions 2016 $ 1 2017 1 2018 1 2019 1 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and 2014 : December 31, 2015 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in millions) Level 1 Level 2 Level 3 Interest rate contracts $ — $ 42 $ — Foreign exchange forward contracts — — — Marketable securities - trading 25 — — Total assets $ 25 $ 42 $ — Commodity contracts $ — $ 31 $ — Interest rate contracts — 2 — Total liabilities $ — $ 33 $ — December 31, 2014 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in millions) Level 1 Level 2 Level 3 Interest rate contracts $ — $ 40 $ — Marketable securities - trading 25 — — Total assets $ 25 $ 40 $ — Commodity contracts $ — $ 26 $ — Interest rate contracts — 9 — Total liabilities $ — $ 35 $ — |
Fair Value Of Pension Assets [Table Text Block] | The following tables present the major categories of plan assets and the respective fair value hierarchy for the pension plan assets as of December 31, 2015 and 2014 : Fair Value Measurements as of December 31, 2015 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in millions) Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 5 $ 5 $ — $ — Equity securities (1) U.S. Large-Cap equities (2) 27 — 27 — International equities (2) 13 — 13 — Fixed income securities Derivative financial instruments (3) 19 — 19 — U.S. Treasuries 12 12 — — U.S. Municipal bonds (4) 5 — 5 — U.S. Corporate bonds (4) 86 — 86 — International bonds (2) 21 — 21 — Total assets 188 17 171 — Fixed income securities Derivative financial instruments (3) 19 — 19 — Total liabilities 19 — 19 — Total net assets $ 169 $ 17 $ 152 $ — Fair Value Measurements as of December 31, 2014 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in millions) Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 10 $ 10 $ — $ — Equity securities (1) U.S. Large-Cap equities (2) 30 — 30 — International equities (2) 19 — 19 — Fixed income securities Derivative financial instruments (3) 31 — 31 — U.S. Treasuries 22 22 — — U.S. Municipal bonds (4) 5 — 5 — U.S. Corporate bonds (4) 82 — 82 — International bonds (2) 19 — 19 — Total assets 218 32 186 — Fixed income securities Derivative financial instruments (3) 31 — 31 — Total liabilities 31 — 31 — Total net assets $ 187 $ 32 $ 155 $ — ____________________________ (1) Equity securities are comprised of actively managed U.S. index funds and Europe, Australia, Far East (" EAFE ") index funds. (2) The NAV is based on the fair value of the underlying assets owned by the equity index fund or fixed income investment vehicle per share multiplied by the number of units held as of the measurement date and are classified as Level 2 assets. (3) Derivative financial instruments consist of U.S Treasury futures. The fair value of these futures is determined by using quoted market prices of similar instruments. (4) U.S. Municipal and Corporate bonds are based on quoted bid prices for comparable securities in the marketplace. |
Fair Value Of Postretirement Medical Plan Assets [Table Text Block] | The following tables present the major categories of plan assets and the respective fair value hierarchy for the postretirement medical plan assets as of December 31, 2015 and 2014 : Fair Value Measurements as of December 31, 2015 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in millions) Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 1 $ 1 $ — $ — Equity securities (1) U.S. Large-Cap equities (2) 1 — 1 — Fixed income securities U.S. Corporate bonds (3) 3 — 3 — Total assets $ 5 $ 1 $ 4 $ — Fair Value Measurements as of December 31, 2014 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in millions) Total Level 1 Level 2 Level 3 Equity securities (1) U.S. Large-Cap equities (2) $ 1 $ — $ 1 $ — Fixed income securities Derivative financial instruments (4) 1 — 1 — U.S. Treasuries 1 1 — — U.S. Corporate bonds (3) 4 — 4 — Total assets $ 7 $ 1 $ 6 $ — Fixed income securities Derivative financial instruments (4) 1 $ — $ 1 $ — Total liabilities 1 — 1 — Total net assets $ 6 $ 1 $ 5 $ — ____________________________ (1) Equity securities are comprised of actively managed U.S. index funds and EAFE index funds. (2) The NAV is based on the fair value of the underlying assets owned by the equity index fund or fixed income investment vehicle per share multiplied by the number of units held as of the measurement date and are classified as Level 2 assets. (3) U.S. Corporate bonds are based on quoted bid prices for comparable securities in the marketplace. (4) Derivative financial instruments consist of U.S Treasury futures. The fair value of these futures is determined by using quoted market prices of similar instruments. |
Fair Value Measurements, Nonrecurring | The carrying values and estimated fair values of the Company 's financial instruments that are not required to be measured at fair value in the Consolidated Balance Sheet are as follows: Fair Value Hierarchy Level December 31, 2015 December 31, 2014 (in millions) Carrying Amount Fair Value Carrying Amount Fair Value Assets: Cash and Cash Equivalents (1) 1 $ 911 $ 911 $ 237 $ 237 Liabilities: Long-term debt – 2016 Notes (2) 2 500 500 499 510 Long-term debt – 2018 Notes (2) 2 723 802 722 835 Long-term debt – 2019 Notes (2) 2 250 248 249 253 Long-term debt – 2020 Notes (2) 2 246 244 244 244 Long-term debt – 2021 Notes (2) 2 250 253 248 255 Long-term debt – 2022 Notes (2) 2 265 241 264 244 Long-term debt – 2025 Notes (2) 2 494 491 — — Long-term debt – 2038 Notes (2) 2 271 344 271 363 Long-term debt – 2045 Notes (2) 2 247 244 — — ____________________________ (1) Cash equivalents are composed of certificates of deposit, time deposits and other interest-bearing investments with original maturity dates of three months or less. Cash equivalents are recorded at cost, which approximates fair value. (2) The fair value amounts of long term debt were based on current market rates available to the Company . The difference between the fair value and the carrying value represents the theoretical net premium or discount that would be paid or received to retire all debt and related unamortized costs to be incurred at such date. The carrying amount includes the unamortized discounts and issuance costs on the issuance of debt and adjustments related to the change in the fair value of interest rate swaps designated as fair value hedges on the 2019, 2020, 2021, 2022 and 2038 Notes. Refer to Note 10 for additional information regarding derivatives. |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation Expense | The components of stock-based compensation expense for the years ended December 31, 2015, 2014 and 2013 are presented below: For the Year Ended December 31, (in millions) 2015 2014 2013 Total stock-based compensation expense $ 44 $ 48 $ 37 Income tax benefit recognized in the income statement (15 ) (17 ) (12 ) Stock-based compensation expense, net of tax $ 29 $ 31 $ 25 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The weighted average assumptions used to value grant options are detailed below: For the Year Ended December 31, 2015 2014 2013 Fair value of options at grant date $ 9.22 $ 5.80 $ 6.92 Risk free interest rate 1.28 % 1.25 % 0.68 % Expected term of options (in years) 3.9 4.4 4.5 Dividend yield 2.55 % 3.35 % 3.39 % Expected volatility 18.98 % 20.03 % 27.42 % |
Schedule of Share-based Compensation, Stock Options, Activity | The table below summarizes stock option activity for the year ended December 31, 2015 : Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Outstanding as of January 1, 2015 1,529,235 $ 45.27 8.20 $ 40 Granted 427,698 79.20 Exercised (711,032 ) 41.55 27 Forfeited or expired (14,783 ) 64.22 Outstanding as of December 31, 2015 1,231,118 58.98 8.24 42 Exercisable as of December 31, 2015 201,445 45.80 7.37 10 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The table below summarizes RSU activity for the year ended December 31, 2015 . The fair value of restricted stock units is determined based on the number of units granted and the grant date price of common stock. RSUs Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Outstanding as of January 1, 2015 1,925,934 $ 43.85 1.08 $ 138 Granted 380,349 79.18 Vested and released (760,878 ) 38.00 60 Forfeited (47,989 ) 56.30 Outstanding as of December 31, 2015 1,497,416 55.40 1.03 140 |
Schedule of Share-based Compensation, Performance Shares Award, Valuation Assumptions [Table Text Block] | For PSU grants during the year ended December 31, 2015 , the assumptions used in the Monte Carlo simulation are as follows: For the Year Ended December 31, 2015 Risk-free interest rate 1.00 % Expected volatility 16.29 % Performance period (years) 2.8 |
Share-based Compensation, Performance Shares Award Outstanding Activity [Table Text Block] | The fair value of performance share units is determined based on the number of units granted and the grant date price of common stock. PSUs Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Outstanding as of January 1, 2015 444,281 $ 44.97 1.07 $ 32 Granted 120,682 77.13 Performance adjustment (1) 70,430 38.07 Vested and released (188,675 ) 37.80 15 Forfeited (3,344 ) 63.31 Outstanding as of December 31, 2015 443,374 55.54 0.88 41 ____________________________ (1) For PSU s which vested during the year ended December 31, 2015 , the Company awarded additional PSUs, as actual results measured at the end of the performance period exceeded target performance levels. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class | The following table presents the basic and diluted EPS and the Company 's basic and diluted shares outstanding for the years ended December 31, 2015, 2014 and 2013 : For the Year Ended December 31, (in millions, except per share data) 2015 2014 2013 Basic EPS: Net income $ 764 $ 703 $ 624 Weighted average common shares outstanding 190.9 195.8 202.9 Earnings per common share — basic $ 4.00 $ 3.59 $ 3.08 Diluted EPS: Net income $ 764 $ 703 $ 624 Weighted average common shares outstanding 190.9 195.8 202.9 Effect of dilutive securities: Stock options 0.3 0.3 0.3 RSUs 0.9 1.2 1.3 PSUs 0.3 0.1 — Weighted average common shares outstanding and common stock equivalents 192.4 197.4 204.5 Earnings per common share — diluted $ 3.97 $ 3.56 $ 3.05 |
Accumulated Other Comprehensi53
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated other comprehensive income (loss), net of taxes | The following table provides a summary of changes in the balances of each component of AOCL , net of taxes, for the years ended December 31, 2015, 2014 and 2013 : (in millions) Foreign Currency Translation Adjustments Net Change in Pension Liability Net Change in Cash Flow Hedges Accumulated Other Comprehensive Loss Balance as of January 1, 2013 $ (8 ) $ (56 ) $ (46 ) $ (110 ) OCI before reclassifications (9 ) 19 3 13 Amounts reclassified from AOCL — 4 5 9 Net current year OCI (9 ) 23 8 22 Balance as of December 31, 2013 (17 ) (33 ) (38 ) (88 ) OCI before reclassifications (44 ) (19 ) (2 ) (65 ) Amounts reclassified from AOCL — 12 4 16 Net current year OCI (44 ) (7 ) 2 (49 ) Balance as of December 31, 2014 (61 ) (40 ) (36 ) (137 ) OCI before reclassifications (64 ) — (2 ) (66 ) Amounts reclassified from AOCL — 4 4 8 Net current year OCI (64 ) 4 2 (58 ) Balance as of December 31, 2015 $ (125 ) $ (36 ) $ (34 ) $ (195 ) |
Schedule of Reclassifications out of AOCL and into Net Income | The following table presents the amount of loss reclassified from AOCL into the Consolidated Statements of Income for the years ended December 31, 2015, 2014 and 2013 : For the Year Ended December 31, (in millions) Location of (Loss) Gain Reclassified from AOCL into Net Income 2015 2014 2013 (Loss) Gain on cash flow hedges: Interest rate contracts Interest expense $ (8 ) $ (8 ) $ (7 ) Foreign exchange forward contracts Cost of sales 2 1 (1 ) Total (6 ) (7 ) (8 ) Income tax expense (2 ) (3 ) (3 ) Total $ (4 ) $ (4 ) $ (5 ) Defined benefit pension and postretirement plan items: Amortization of prior service costs Selling, general and administrative expenses $ — $ — $ 1 Amortization of actuarial losses, net Selling, general and administrative expenses (4 ) (3 ) (4 ) Settlement loss Selling, general and administrative expenses (3 ) (16 ) (3 ) Total (7 ) (19 ) (6 ) Income tax expense (3 ) (7 ) (2 ) Total $ (4 ) $ (12 ) $ (4 ) Total reclassifications $ (8 ) $ (16 ) $ (9 ) |
Supplemental Cash Flow Inform54
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The following table details supplemental cash flow disclosures of non-cash investing and financing activities for the years ended December 31, 2015, 2014 and 2013 : For the Year Ended December 31, (in millions) 2015 2014 2013 Supplemental cash flow disclosures of non-cash investing and financing activities: Dividends declared but not yet paid $ 90 $ 79 $ 75 Capital expenditures included in accounts payable and other current liabilities 14 11 21 Holdback liability for acquisition of business — 2 — Stock issued for acquisition of business — — 13 Capital lease additions (1) 55 31 1 Supplemental cash flow disclosures: Interest paid $ 94 $ 94 $ 107 Income taxes paid 346 345 310 __________________________ (1) During the year ended December 31, 2014, the Company converted a number of month-to-month operating leases into capital leases, which is presented as a non-cash financing activity. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | Future minimum lease payments under operating leases with initial or remaining noncancellable lease terms in excess of one year and capital leases as of December 31, 2015 are as follows: (in millions) Operating Leases Capital Leases 2016 $ 44 $ 17 2017 37 17 2018 30 17 2019 27 16 2020 22 15 Thereafter 70 193 Total minimum lease payments $ 230 275 Less imputed interest (139 ) Present value of minimum lease payments $ 136 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum lease payments under operating leases with initial or remaining noncancellable lease terms in excess of one year and capital leases as of December 31, 2015 are as follows: (in millions) Operating Leases Capital Leases 2016 $ 44 $ 17 2017 37 17 2018 30 17 2019 27 16 2020 22 15 Thereafter 70 193 Total minimum lease payments $ 230 275 Less imputed interest (139 ) Present value of minimum lease payments $ 136 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Information about the Company 's operations by operating segment as of December 31, 2015 and 2014 and for the years ended December 31, 2015, 2014 and 2013 is as follows: For the Year Ended December 31, (in millions) 2015 2014 2013 Segment Results – Net sales Beverage Concentrates $ 1,241 $ 1,228 $ 1,229 Packaged Beverages 4,544 4,361 4,306 Latin America Beverages 497 532 462 Net sales $ 6,282 $ 6,121 $ 5,997 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | For the Year Ended December 31, (in millions) 2015 2014 2013 Segment Results – SOP Beverage Concentrates $ 807 $ 790 $ 778 Packaged Beverages 709 636 525 Latin America Beverages 88 78 61 Total SOP 1,604 1,504 1,364 Unallocated corporate costs 299 323 309 Other operating expense, net 7 1 9 Income from operations 1,298 1,180 1,046 Interest expense, net 115 107 121 Other expense (income), net (1 ) — 383 Income before provision (benefit) for income taxes and equity in earnings of unconsolidated subsidiaries $ 1,184 $ 1,073 $ 542 |
Reconciliation of Amortization Expense from Segment to Consolidated [Table Text Block]] | For the Year Ended December 31, (in millions) 2015 2014 2013 Amortization expense Beverage Concentrates $ 12 $ 16 $ 17 Packaged Beverages 7 7 7 Latin America Beverages — — — Segment total 19 23 24 Corporate and other 16 13 14 Total amortization expense $ 35 $ 36 $ 38 |
Reconciliation of Depreciation Expense from Segment to Consolidated [Table Text Block] | For the Year Ended December 31, (in millions) 2015 2014 2013 Depreciation expense Beverage Concentrates $ 7 $ 7 $ 5 Packaged Beverages 161 165 164 Latin America Beverages 14 15 14 Segment total 182 187 183 Corporate and other 10 12 13 Total depreciation expense $ 192 $ 199 $ 196 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | As of December 31, (in millions) 2015 2014 Identifiable operating assets Beverage Concentrates $ 4,099 $ 4,096 Packaged Beverages 3,429 3,409 Latin America Beverages 303 315 Segment total 7,831 7,820 Corporate and other 1,007 431 Total identifiable operating assets 8,838 8,251 Investments 31 14 Total assets $ 8,869 $ 8,265 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | utilizes separate legal entities for transactions with customers outside of the United States. Information about the Company 's operations by geographic region as of December 31, 2015 and 2014 and for the years ended December 31, 2015 , 2014 and 2013 is below: For the Year Ended December 31, (in millions) 2015 2014 2013 Net sales U.S. $ 5,575 $ 5,361 $ 5,292 International 707 760 705 Total net sales $ 6,282 $ 6,121 $ 5,997 |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] | As of December 31, (in millions) 2015 2014 Property, plant and equipment, net U.S. $ 1,041 $ 1,039 International 115 102 Total property, plant and equipment, net $ 1,156 $ 1,141 |
Guarantor and Non-Guarantor F57
Guarantor and Non-Guarantor Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Statements of Income | Condensed Consolidating Statements of Income For the Year Ended December 31, 2015 (in millions) Parent Guarantors Non-Guarantors Eliminations Total Net sales $ — $ 5,668 $ 633 $ (19 ) $ 6,282 Cost of sales — 2,280 298 (19 ) 2,559 Gross profit — 3,388 335 — 3,723 Selling, general and administrative expenses — 2,105 208 — 2,313 Multi-employer pension plan withdrawal — — — — — Depreciation and amortization — 99 6 — 105 Other operating expense (income), net — (1 ) 8 — 7 Income from operations — 1,185 113 — 1,298 Interest expense 228 56 — (167 ) 117 Interest income (42 ) (120 ) (7 ) 167 (2 ) Other (income) expense, net (1 ) (6 ) 6 — (1 ) Income (loss) before provision (benefit) for income taxes and equity in earnings of subsidiaries (185 ) 1,255 114 — 1,184 Provision (benefit) for income taxes (85 ) 472 33 — 420 Income (loss) before equity in earnings of subsidiaries (100 ) 783 81 — 764 Equity in earnings of consolidated subsidiaries 864 81 — (945 ) — Equity in earnings of unconsolidated subsidiaries, net of tax — — — — — Net income $ 764 $ 864 $ 81 $ (945 ) $ 764 Condensed Consolidating Statements of Income For the Year Ended December 31, 2014 (in millions) Parent Guarantors Non-Guarantors Eliminations Total Net sales $ — $ 5,474 $ 681 $ (34 ) $ 6,121 Cost of sales — 2,191 334 (34 ) 2,491 Gross profit — 3,283 347 — 3,630 Selling, general and administrative expenses 1 2,106 227 — 2,334 Multi-employer pension plan withdrawal — — — — — Depreciation and amortization — 107 8 — 115 Other operating expense, net — 1 — — 1 Income from operations (1 ) 1,069 112 — 1,180 Interest expense 104 51 — (46 ) 109 Interest income (40 ) — (8 ) 46 (2 ) Other expense (income), net (2 ) (3 ) 5 — — Income (loss) before provision (benefit) for income taxes and equity in earnings of subsidiaries (63 ) 1,021 115 — 1,073 Provision (benefit) for income taxes (38 ) 383 26 — 371 Income (loss) before equity in earnings of subsidiaries (25 ) 638 89 — 702 Equity in earnings of consolidated subsidiaries 728 90 — (818 ) — Equity in earnings of unconsolidated subsidiaries, net of tax — — 1 — 1 Net income $ 703 $ 728 $ 90 $ (818 ) $ 703 Condensed Consolidating Statements of Income For the Year Ended December 31, 2013 (in millions) Parent Guarantors Non-Guarantors Eliminations Total Net sales $ — $ 5,406 $ 623 $ (32 ) $ 5,997 Cost of sales — 2,240 291 (32 ) 2,499 Gross profit — 3,166 332 — 3,498 Selling, general and administrative expenses 4 2,048 220 — 2,272 Multi-employer pension plan withdrawal — 56 — — 56 Depreciation and amortization — 107 8 — 115 Other operating expense, net — 9 — — 9 Income from operations (4 ) 946 104 — 1,046 Interest expense 118 89 — (84 ) 123 Interest income (77 ) — (9 ) 84 (2 ) Other expense (income), net 383 (6 ) 6 — 383 Income (loss) before provision (benefit) for income taxes and equity in earnings of subsidiaries (428 ) 863 107 — 542 Provision (benefit) for income taxes (16 ) (147 ) 82 — (81 ) Income (loss) before equity in earnings of subsidiaries (412 ) 1,010 25 — 623 Equity in earnings of consolidated subsidiaries 1,036 26 — (1,062 ) — Equity in earnings of unconsolidated subsidiaries, net of tax — — 1 — 1 Net income $ 624 $ 1,036 $ 26 $ (1,062 ) $ 624 |
Condensed Consolidating Statements of Comprehensive Income | Condensed Consolidating Statements of Comprehensive Income For the Year Ended December 31, 2015 (in millions) Parent Guarantors Non-Guarantors Eliminations Total Net income $ 764 $ 864 $ 81 $ (945 ) $ 764 Other comprehensive income (loss), net of tax: Other comprehensive income impact from consolidated subsidiaries (67 ) (100 ) — 167 — Foreign currency translation adjustments 7 31 (102 ) — (64 ) Net change in pension liability, net of tax — 2 2 — 4 Net change in cash flow hedges, net of tax 2 — — — 2 Total other comprehensive income (loss), net of tax (58 ) (67 ) (100 ) 167 (58 ) Comprehensive income (loss) $ 706 $ 797 $ (19 ) $ (778 ) $ 706 Condensed Consolidating Statements of Comprehensive Income For the Year Ended December 31, 2014 (in millions) Parent Guarantors Non-Guarantors Eliminations Total Net income $ 703 $ 728 $ 90 $ (818 ) $ 703 Other comprehensive income (loss), net of tax: Other comprehensive income impact from consolidated subsidiaries (57 ) (66 ) — 123 — Foreign currency translation adjustments 4 15 (63 ) — (44 ) Net change in pension liability, net of tax — (6 ) (1 ) — (7 ) Net change in cash flow hedges, net of tax 4 — (2 ) — 2 Total other comprehensive income (loss), net of tax (49 ) (57 ) (66 ) 123 (49 ) Comprehensive income (loss) $ 654 $ 671 $ 24 $ (695 ) $ 654 Condensed Consolidating Statements of Comprehensive Income For the Year Ended December 31, 2013 (in millions) Parent Guarantors Non-Guarantors Eliminations Total Net income $ 624 $ 1,036 $ 26 $ (1,062 ) $ 624 Other comprehensive income (loss), net of tax: Other comprehensive income impact from consolidated subsidiaries 11 (19 ) — 8 — Foreign currency translation adjustments 6 11 (26 ) — (9 ) Net change in pension liability, net of tax — 19 4 — 23 Net change in cash flow hedges, net of tax 5 — 3 — 8 Total other comprehensive income (loss), net of tax 22 11 (19 ) 8 22 Comprehensive income (loss) $ 646 $ 1,047 $ 7 $ (1,054 ) $ 646 |
Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets As of December 31, 2015 (in millions) Parent Guarantors Non-Guarantors Eliminations Total Current assets: Cash and cash equivalents $ — $ 859 $ 52 $ — $ 911 Accounts receivable: Trade, net — 516 54 — 570 Other 3 40 15 — 58 Related party receivable 11 25 — (36 ) — Inventories — 173 36 — 209 Deferred tax assets — — — — — Prepaid expenses and other current assets 300 55 5 (291 ) 69 Total current assets 314 1,668 162 (327 ) 1,817 Property, plant and equipment, net — 1,041 115 — 1,156 Investments in consolidated subsidiaries 7,062 583 — (7,645 ) — Investments in unconsolidated subsidiaries — 20 11 — 31 Goodwill — 2,972 16 — 2,988 Other intangible assets, net — 2,610 53 — 2,663 Long-term receivable, related parties 3,159 4,989 283 (8,431 ) — Other non-current assets 58 90 2 — 150 Non-current deferred tax assets 20 — 65 (21 ) 64 Total assets $ 10,613 $ 13,973 $ 707 $ (16,424 ) $ 8,869 Current liabilities: Accounts payable $ — $ 252 $ 25 $ — $ 277 Related party payable 18 11 7 (36 ) — Deferred revenue — 63 1 — 64 Short-term borrowings and current portion of long-term obligations 500 7 — — 507 Income taxes payable — 306 12 (291 ) 27 Other current liabilities 126 539 43 — 708 Total current liabilities 644 1,178 88 (327 ) 1,583 Long-term obligations to third parties 2,746 129 — — 2,875 Long-term obligations to related parties 4,989 3,442 — (8,431 ) — Non-current deferred tax liabilities — 808 — (21 ) 787 Non-current deferred revenue — 1,154 27 — 1,181 Other non-current liabilities 51 200 9 — 260 Total liabilities 8,430 6,911 124 (8,779 ) 6,686 Total stockholders' equity 2,183 7,062 583 (7,645 ) 2,183 Total liabilities and stockholders' equity $ 10,613 $ 13,973 $ 707 $ (16,424 ) $ 8,869 Condensed Consolidating Balance Sheets As of December 31, 2014 (in millions) Parent Guarantors Non-Guarantors Eliminations Total Current assets: Cash and cash equivalents $ — $ 186 $ 51 $ — $ 237 Accounts receivable: Trade, net — 494 62 — 556 Other 3 42 16 — 61 Related party receivable 10 10 — (20 ) — Inventories — 168 36 — 204 Deferred tax assets — 65 3 (1 ) 67 Prepaid and other current assets 218 67 9 (208 ) 86 Total current assets 231 1,032 177 (229 ) 1,211 Property, plant and equipment, net — 1,039 102 — 1,141 Investments in consolidated subsidiaries 6,194 612 — (6,806 ) — Investments in unconsolidated subsidiaries 1 — 13 — 14 Goodwill — 2,971 19 — 2,990 Other intangible assets, net — 2,615 69 — 2,684 Long-term receivable, related parties 3,118 4,647 295 (8,060 ) — Other non-current assets 55 90 6 — 151 Non-current deferred tax assets 23 — 74 (23 ) 74 Total assets $ 9,622 $ 13,006 $ 755 $ (15,118 ) $ 8,265 Current liabilities: Accounts payable $ — $ 258 $ 31 $ — $ 289 Related party payable — 10 10 (20 ) — Deferred revenue — 62 2 — 64 Short-term borrowings and current portion of long-term obligations — 3 — — 3 Income taxes payable — 212 6 (208 ) 10 Other current liabilities 112 512 49 (1 ) 672 Total current liabilities 112 1,057 98 (229 ) 1,038 Long-term obligations to third parties 2,497 83 — — 2,580 Long-term obligations to related parties 4,647 3,413 — (8,060 ) — Non-current deferred tax liabilities — 824 — (23 ) 801 Non-current deferred revenue — 1,216 34 — 1,250 Other non-current liabilities 72 219 11 — 302 Total liabilities 7,328 6,812 143 (8,312 ) 5,971 Total stockholders' equity 2,294 6,194 612 (6,806 ) 2,294 Total liabilities and stockholders' equity $ 9,622 $ 13,006 $ 755 $ (15,118 ) $ 8,265 |
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows For the Year Ended December 31, 2015 (in millions) Parent Guarantors Non-Guarantors Eliminations Total Operating activities: Net cash (used in) provided by operating activities $ (209 ) $ 1,105 $ 95 $ — $ 991 Investing activities: Acquisition of business — — — — — Purchase of property, plant and equipment — (133 ) (46 ) — (179 ) Purchase of intangible assets — (1 ) — — (1 ) Investment in unconsolidated subsidiaries — (20 ) — — (20 ) Purchase of cost method investments — (15 ) — — (15 ) Proceeds from disposals of property, plant and equipment — 20 — — 20 Issuance of related party notes receivable — (340 ) (39 ) 379 — Other, net 1 — — — 1 Net cash (used in) provided by investing activities 1 (489 ) (85 ) 379 (194 ) Financing activities: Proceeds from issuance of related party debt 340 39 — (379 ) — Proceeds from issuance of senior unsecured notes 750 — — — 750 Repurchase of shares of common stock (521 ) — — — (521 ) Dividends paid (355 ) — — — (355 ) Tax withholdings related to net share settlements of certain stock awards (27 ) — — — (27 ) Proceeds from stock options exercised 30 — — — 30 Excess tax benefit on stock-based compensation — 23 — — 23 Deferred financing charges (6 ) — — — (6 ) Capital lease payments — (5 ) — — (5 ) Other, net (3 ) — — — (3 ) Net cash (used in) provided by financing activities 208 57 — (379 ) (114 ) Cash and cash equivalents — net change from: Operating, investing and financing activities — 673 10 — 683 Effect of exchange rate changes on cash and cash equivalents — — (9 ) — (9 ) Cash and cash equivalents at beginning of period — 186 51 — 237 Cash and cash equivalents at end of period $ — $ 859 $ 52 $ — $ 911 Condensed Consolidating Statements of Cash Flows For the Year Ended December 31, 2014 (in millions) Parent Guarantors Non-Guarantors Eliminations Total Operating activities: Net cash (used in) provided by operating activities $ (122 ) $ 1,055 $ 89 $ — $ 1,022 Investing activities: Acquisition of business — (19 ) — — (19 ) Purchase of property, plant and equipment — (130 ) (40 ) — (170 ) Purchase of intangible assets — (1 ) — — (1 ) Return of capital — 2 (2 ) — — Proceeds from disposals of property, plant and equipment — 8 — — 8 Issuance of related party notes receivable — (882 ) (55 ) 937 — Other, net (3 ) — — — (3 ) Net cash (used in) provided by investing activities (3 ) (1,022 ) (97 ) 937 (185 ) Financing activities: Proceeds from issuance of related party debt 882 55 — (937 ) — Repurchase of shares of common stock (400 ) — — — (400 ) Dividends paid (317 ) — — — (317 ) Tax withholdings related to net share settlements of certain stock awards (16 ) — — — (16 ) Net issuance of commercial paper (65 ) — — — (65 ) Proceeds from stock options exercised 41 — — — 41 Excess tax benefit on stock-based compensation — 11 — — 11 Capital lease payments — (1 ) — — (1 ) Net cash (used in) provided by financing activities 125 65 — (937 ) (747 ) Cash and cash equivalents — net change from: Operating, investing and financing activities — 98 (8 ) — 90 Effect of exchange rate changes on cash and cash equivalents — — (6 ) — (6 ) Cash and cash equivalents at beginning of period — 88 65 — 153 Cash and cash equivalents at end of period $ — $ 186 $ 51 $ — $ 237 Condensed Consolidating Statements of Cash Flows For the Year Ended December 31, 2013 (in millions) Parent Guarantors Non-Guarantors Eliminations Total Operating activities: Net cash (used in) provided by operating activities $ (99 ) $ 889 $ 84 $ (8 ) $ 866 Investing activities: Acquisition of business — (10 ) — — (10 ) Purchase of property, plant and equipment — (154 ) (25 ) — (179 ) Purchase of intangible assets — (5 ) — — (5 ) Return of capital — 19 (19 ) — — Proceeds from disposals of property, plant and equipment — 1 — — 1 Issuance of related party notes receivable — (810 ) (80 ) 890 — Repayment of related party notes receivable 250 65 — (315 ) — Other, net (3 ) 1 — — (2 ) Net cash (used in) provided by investing activities 247 (893 ) (124 ) 575 (195 ) Financing activities: Proceeds from issuance of related party debt 802 80 8 (890 ) — Repayment of related party debt (65 ) (250 ) — 315 — Repayment of senior unsecured notes (250 ) — — — (250 ) Repurchase of shares of common stock (400 ) — — — (400 ) Dividends paid (302 ) — (8 ) 8 (302 ) Tax withholdings related to net share settlements of certain stock awards (13 ) — — — (13 ) Net issuance of commercial paper 65 — — — 65 Proceeds from stock options exercised 15 — — — 15 Excess tax benefit on stock-based compensation — 6 — — 6 Capital lease payments — (1 ) — — (1 ) Net cash (used in) provided by financing activities (148 ) (165 ) — (567 ) (880 ) Cash and cash equivalents — net change from: Operating, investing and financing activities — (169 ) (40 ) — (209 ) Effect of exchange rate changes on cash and cash equivalents — — (4 ) — (4 ) Cash and cash equivalents at beginning of year — 257 109 — 366 Cash and cash equivalents at end of year $ — $ 88 $ 65 $ — $ 153 |
Selected Quarterly Financial 58
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | The following table summarizes the Company 's information on net sales, gross profit, net income, earnings per share and other quarterly financial data by quarter for the years ended December 31, 2015 and 2014 . This data, with the exception of the common stock prices, was derived from the Company 's unaudited consolidated financial statements. (in millions, except per share data) First Second Third Fourth For the Year Ended December 31, Quarter Quarter Quarter Quarter 2015 Net sales $ 1,451 $ 1,655 $ 1,630 $ 1,546 Gross profit 849 981 957 936 Net income 157 220 202 185 Earnings per common share — basic $ 0.82 $ 1.15 $ 1.06 $ 0.98 Earnings per common share — diluted 0.81 1.14 1.05 0.97 Weighted average common shares outstanding — basic 193.0 191.4 190.4 188.7 Weighted average common shares outstanding — diluted 194.6 192.4 191.5 190.2 Dividend declared per share $ 0.48 $ 0.48 $ 0.48 $ 0.48 Common stock price High $ 81.45 $ 79.98 $ 83.57 $ 95.26 Low 70.78 72.58 72.00 78.01 2014 Net sales $ 1,398 $ 1,631 $ 1,583 $ 1,509 Gross profit 844 966 925 895 Net income 155 210 188 150 Earnings per common share — basic $ 0.78 $ 1.07 $ 0.97 $ 0.77 Earnings per common share — diluted 0.78 1.06 0.96 0.77 Weighted average common shares outstanding — basic 197.9 196.6 194.8 194.0 Weighted average common shares outstanding — diluted 199.5 197.8 196.2 195.8 Dividend declared per share $ 0.41 $ 0.41 $ 0.41 $ 0.41 Common stock price High $ 54.46 $ 60.22 $ 65.32 $ 74.00 Low 47.22 51.19 58.41 61.85 |
Business and Basis of Present59
Business and Basis of Presentation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 21 | |
Variable Interest Entity, Measure of Activity, Other, Amount | $ 0 |
Significant Accounting Polici60
Significant Accounting Policies (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Significant Accounting Policies [Line Items] | |||
Balance, beginning of the year | $ 2 | $ 3 | $ 3 |
Net charge to cost and expense | 2 | 1 | 1 |
Write-offs and adjustments | (2) | (2) | (1) |
Balance, end of the year | 2 | 2 | 3 |
Trade accounts receivable with single customer | 65 | 67 | |
Inventory Valuation Reserves | $ 2 | 2 | |
Finite-lived intangible asset, useful life | 10 years | ||
Current and Non current Customer Incentives | $ 73 | 73 | |
Amortization - Cold Drink Equipment Customer Program | 4 | 4 | 3 |
Amortization of other customer programs and initiatives | 9 | 13 | 15 |
Accrued Insurance | 117 | 136 | |
Estimated Insurance Recoveries | $ 21 | 35 | |
Deferred revenue recognition period | 25 years | ||
Customers incentives and discounts | $ 3,844 | 3,682 | 3,618 |
Shipping, Handling and Transportation Costs | 806 | 802 | 776 |
Advertising and marketing production costs | 473 | 473 | 486 |
Advertising and marketing assets, current and non-current | 11 | 17 | |
Research and development costs | 19 | 18 | $ 21 |
Marketable securities - trading | 25 | 25 | |
Trading Securities, Unrealized Holding Gain | $ 0 | $ 1 | |
End of Year Rate [Member] | Mexican Peso [Member] | |||
Significant Accounting Policies [Line Items] | |||
Foreign currency exchange rate, translation | 17.25 | 14.74 | 13.08 |
End of Year Rate [Member] | Canadian Dollar [Member] | |||
Significant Accounting Policies [Line Items] | |||
Foreign currency exchange rate, translation | 1.38 | 1.16 | 1.06 |
Average Annual Rate [Member] | Mexican Peso [Member] | |||
Significant Accounting Policies [Line Items] | |||
Foreign currency exchange rate, translation | 15.87 | 13.31 | 12.77 |
Average Annual Rate [Member] | Canadian Dollar [Member] | |||
Significant Accounting Policies [Line Items] | |||
Foreign currency exchange rate, translation | 1.28 | 1.10 | 1.03 |
Customer relationships [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible asset, useful life | 10 years | ||
Distribution Rights [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible asset, useful life | 10 years | ||
Distribution Rights [Member] | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible asset, useful life | 5 years | ||
Distribution Rights [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Finite-lived intangible asset, useful life | 15 years | ||
Buildings [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 40 years | ||
Building Improvements [Member] | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 5 years | ||
Building Improvements [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 35 years | ||
Machinery and Equipment [Member] | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Machinery and Equipment [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 25 years | ||
Vehicles [Member] | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 5 years | ||
Vehicles [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 18 years | ||
Cold Drink Equipment [Member] | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Cold Drink Equipment [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 7 years | ||
Computer Software [Member] | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Computer Software [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 8 years |
Acquisition (Details)
Acquisition (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2015 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2014 | Feb. 25, 2013 | |
Business Acquisition [Line Items] | |||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 0 | $ 19 | $ 10 | ||||
Business Acquisition, Purchase Price Allocation, Goodwill Amount | $ 2,988 | $ 2,988 | 2,990 | 2,988 | |||
Finite-lived intangible asset, useful life | 10 years | ||||||
Distribution Rights [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible asset, useful life | 10 years | ||||||
Minimum [Member] | Distribution Rights [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible asset, useful life | 5 years | ||||||
Maximum [Member] | Distribution Rights [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible asset, useful life | 15 years | ||||||
DP/7UP West [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Consideration Transferred | $ 23 | ||||||
Stock Issued During Period, Shares, Acquisitions | 313,105 | ||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 10 | ||||||
Business Acquisition, Purchase Price Allocation, Property, Plant and Equipment | $ 7 | ||||||
Business Acquisition, Purchase Price Allocation, Goodwill Amount | 5 | ||||||
Business Acquisition, Purchase Price Allocation, Amortizable Intangible Assets | 2 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 10 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | 1 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 23 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 12 | ||||||
DP/7UP West [Member] | Minimum [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Property, plant and equipment, useful life | 3 years | ||||||
DP/7UP West [Member] | Minimum [Member] | Distribution Rights [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible asset, useful life | 5 years | ||||||
DP/7UP West [Member] | Maximum [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Property, plant and equipment, useful life | 40 years | ||||||
DP/7UP West [Member] | Maximum [Member] | Distribution Rights [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangible asset, useful life | 15 years | ||||||
Davis Beverages [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Consideration Transferred | 21 | ||||||
Payments to Acquire Businesses, Gross | 19 | ||||||
Business Combination, Indemnification Holdback | $ 2 | ||||||
Business Acquisition, Purchase Price Allocation, Property, Plant and Equipment | $ 10 | ||||||
Business Acquisition, Purchase Price Allocation, Goodwill Amount | 6 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 2 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 3 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 21 | ||||||
Payments on holdback liability | $ 1 | ||||||
Davis Beverages [Member] | Minimum [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Property, plant and equipment, useful life | 1 year | ||||||
Davis Beverages [Member] | Maximum [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Property, plant and equipment, useful life | 10 years |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Inventory [Line Items] | ||
Raw materials | $ 101 | $ 92 |
Spare parts | 18 | 18 |
Work in process | 4 | 5 |
Finished goods | 123 | 126 |
Inventories at FIFO cost | 246 | 241 |
Reduction to LIFO cost | (37) | (37) |
Inventories | 209 | 204 |
Inventory accounted for under the LIFO method | 154 | 151 |
Effect of LIFO inventory liquidation on gross profit | $ 0 | $ 0 |
Property, Plant and Equipment63
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Land | $ 73 | $ 73 | |
Buildings and improvements | 504 | 488 | |
Machinery and equipment | 1,465 | 1,389 | |
Cold drink equipment | 279 | 299 | |
Software | 252 | 244 | |
Construction in progress | 76 | 49 | |
Gross property, plant and equipment | 2,649 | 2,542 | |
Less: accumulated depreciation and amortization | (1,493) | (1,401) | |
Net property, plant and equipment | 1,156 | 1,141 | |
Depreciation | 192 | 199 | $ 196 |
Capital Leases, Balance Sheet, Assets by Major Class, Net [Abstract] | |||
Gross property, plant and equipment under capital lease | 139 | 86 | |
Less: accumulated depreciation and amortization | (15) | (9) | |
Net property, plant and equipment under capital lease | 124 | 77 | |
Building and Building Improvements [Member] | |||
Capital Leases, Balance Sheet, Assets by Major Class, Net [Abstract] | |||
Gross property, plant and equipment under capital lease | 47 | 49 | |
Machinery and Equipment [Member] | |||
Capital Leases, Balance Sheet, Assets by Major Class, Net [Abstract] | |||
Gross property, plant and equipment under capital lease | 92 | 37 | |
Cost of Sales [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 93 | 89 | 86 |
Depreciation And Amortization Expense [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 99 | $ 110 | $ 110 |
Investments in Unconsolidated64
Investments in Unconsolidated Subsidiaries (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2015 | Aug. 10, 2015 | Dec. 31, 2014 | ||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investments in unconsolidated subsidiaries | $ 31 | $ 14 | ||||
San Benedetto Investment [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investment, Foreign Currency Translation Adjustment to Carrying Value | $ (2) | |||||
Equity Method Investment, Ownership Percentage | 50.00% | [1] | 50.00% | |||
Investments in unconsolidated subsidiaries | [1] | $ 11 | $ 13 | |||
Hydrive [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 40.40% | [2] | 40.40% | |||
Equity Method Investment, Other than Temporary Impairment | $ 1 | |||||
Investments in unconsolidated subsidiaries | [2] | $ 0 | $ 1 | |||
BA Sports Nutrition LLC [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 11.70% | [3] | 11.70% | |||
Investments in unconsolidated subsidiaries | $ 20 | [3] | $ 20 | $ 0 | [3] | |
[1] | Investment is part of a joint venture with Acqua Minerale San Benedetto. For the year ended December 31, 2015, the carrying value of the investment decreased due to a $2 million change in foreign currency translation. | |||||
[2] | On November 16, 2012, Hydrive Energy, LLC ("Hydrive") sold its intellectual property rights to Big Red Holdings, Inc. in exchange for earn-out payments to Hydrive based on the earnings associated with Hydrive functional beverages over the next fifteen years. As the expected earn-out payments did not support the value of the investment, the Company recognized an impairment of $1 million during the year ended December 31, 2015. | |||||
[3] | On August 10, 2015, the Company acquired an 11.7% interest in BA Sports Nutrition, LLC for $20 million. The investment is accounted for as an equity method investment as the Company is deemed to have the ability to exercise influence through more than a minor interest in the investee in accordance with U.S. GAAP. |
Goodwill and Other Intangible65
Goodwill and Other Intangible Assets, Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Change in goodwill by reporting units [Abstract] | |||||
Goodwill | $ 3,168 | $ 3,170 | $ 3,168 | ||
Accumulated impairment losses | (180) | (180) | (180) | ||
Goodwill, net | 2,988 | 2,990 | 2,988 | ||
Foreign currency impact | (3) | (3) | |||
Goodwill, Acquired During Period | [1] | 1 | 5 | ||
Beverage Concentrates [Member] | |||||
Change in goodwill by reporting units [Abstract] | |||||
Goodwill | 1,733 | 1,732 | 1,732 | ||
Accumulated impairment losses | 0 | 0 | 0 | ||
Goodwill, net | 1,733 | 1,732 | 1,732 | ||
Foreign currency impact | 1 | 0 | |||
Goodwill, Acquired During Period | 0 | 0 | |||
WD Reporting Unit [Member] | |||||
Change in goodwill by reporting units [Abstract] | |||||
Goodwill | 1,222 | 1,222 | 1,220 | ||
Accumulated impairment losses | 0 | 0 | 0 | ||
Goodwill, net | [2] | 1,222 | 1,222 | 1,220 | |
Foreign currency impact | 0 | 0 | |||
Goodwill, Acquired During Period | 0 | 2 | [1] | ||
DSD Reporting Unit [Member] | |||||
Change in goodwill by reporting units [Abstract] | |||||
Goodwill | 189 | 188 | 185 | ||
Accumulated impairment losses | (180) | (180) | (180) | ||
Goodwill, net | [2] | 9 | 8 | 5 | |
Foreign currency impact | 0 | 0 | |||
Goodwill, Acquired During Period | [1] | 1 | 3 | ||
Latin America Beverages [Member] | |||||
Change in goodwill by reporting units [Abstract] | |||||
Goodwill | 24 | 28 | 31 | ||
Accumulated impairment losses | 0 | 0 | 0 | ||
Goodwill, net | 24 | 28 | $ 31 | ||
Foreign currency impact | (4) | (3) | |||
Goodwill, Acquired During Period | $ 0 | $ 0 | |||
[1] | The acquisition activity represents the goodwill associated with the purchase of Davis. See Note 3 for further information related to the acquisition. | ||||
[2] | The Packaged Beverages segment is comprised of two reporting units, the Direct Store Delivery ("DSD") system and the Warehouse Direct ("WD") system. |
Goodwill and Other Intangible66
Goodwill and Other Intangible Assets, Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 01, 2015 | [1] | Oct. 01, 2014 | ||
Change in intangible assets other than goodwill [Abstract] | |||||||
Intangible assets with indefinite lives | $ 2,628 | $ 2,649 | |||||
Total intangible assets, gross | $ 2,792 | $ 2,807 | |||||
Accumulated amortization | (129) | (123) | |||||
Total intangible assets, net | 2,663 | 2,684 | |||||
Change due to foreign currency translation | (9) | ||||||
Impairment of intangible asset | $ 7 | 0 | $ 0 | ||||
Finite-lived intangible asset, useful life | 10 years | ||||||
Amortization of Intangible Assets | $ 6 | $ 5 | $ 7 | ||||
Amortization expense of intangible assets [Abstract] | |||||||
2,016 | 3 | ||||||
2,017 | 1 | ||||||
2,018 | 1 | ||||||
2,019 | 1 | ||||||
2,020 | $ 2 | ||||||
Goodwill and Intangible Asset Impairment [Abstract] | |||||||
Fair Value | 15,647 | 14,309 | |||||
Minimum [Member] | Goodwill [Member] | |||||||
Goodwill and Intangible Asset Impairment [Abstract] | |||||||
Discount Rate | 5.00% | 5.10% | |||||
Maximum [Member] | |||||||
Goodwill and Intangible Asset Impairment [Abstract] | |||||||
Discount Rate | 9.10% | 10.60% | |||||
Brands [Member] | |||||||
Change in intangible assets other than goodwill [Abstract] | |||||||
Intangible assets with finite lives, gross | $ 29 | $ 29 | |||||
Accumulated amortization | (29) | (28) | |||||
Intangible assets with finite lives, net | 0 | 1 | |||||
Distribution rights [Member] | |||||||
Change in intangible assets other than goodwill [Abstract] | |||||||
Intangible assets with finite lives, gross | 14 | 13 | |||||
Accumulated amortization | (6) | (4) | |||||
Intangible assets with finite lives, net | $ 8 | 9 | |||||
Finite-lived intangible asset, useful life | 10 years | ||||||
Distribution rights [Member] | Minimum [Member] | |||||||
Change in intangible assets other than goodwill [Abstract] | |||||||
Finite-lived intangible asset, useful life | 5 years | ||||||
Distribution rights [Member] | Maximum [Member] | |||||||
Change in intangible assets other than goodwill [Abstract] | |||||||
Finite-lived intangible asset, useful life | 15 years | ||||||
Customer relationships [Member] | |||||||
Change in intangible assets other than goodwill [Abstract] | |||||||
Intangible assets with finite lives, gross | $ 76 | 76 | |||||
Accumulated amortization | (75) | (72) | |||||
Intangible assets with finite lives, net | $ 1 | 4 | |||||
Finite-lived intangible asset, useful life | 10 years | ||||||
Bottler agreements [Member] | |||||||
Change in intangible assets other than goodwill [Abstract] | |||||||
Intangible assets with finite lives, gross | $ 19 | 19 | |||||
Accumulated amortization | (19) | (19) | |||||
Intangible assets with finite lives, net | 0 | 0 | |||||
Brands [Member] | |||||||
Change in intangible assets other than goodwill [Abstract] | |||||||
Intangible assets with indefinite lives | $ 2,627 | [2] | $ 2,643 | ||||
Brands [Member] | 0 to 10 percent [Member] | |||||||
Change in intangible assets other than goodwill [Abstract] | |||||||
Intangible assets with indefinite lives | 0 | 0 | |||||
Goodwill and Intangible Asset Impairment [Abstract] | |||||||
Fair Value | 0 | 0 | |||||
Brands [Member] | 11 to 20, percent [Member] | |||||||
Change in intangible assets other than goodwill [Abstract] | |||||||
Intangible assets with indefinite lives | 0 | 0 | |||||
Goodwill and Intangible Asset Impairment [Abstract] | |||||||
Fair Value | 0 | 0 | |||||
Brands [Member] | 21 to 50, percent [Member] | |||||||
Change in intangible assets other than goodwill [Abstract] | |||||||
Intangible assets with indefinite lives | 0 | 191 | |||||
Goodwill and Intangible Asset Impairment [Abstract] | |||||||
Fair Value | 0 | 259 | |||||
Brands [Member] | 51 to 100 percent [Member] | |||||||
Change in intangible assets other than goodwill [Abstract] | |||||||
Intangible assets with indefinite lives | 0 | 464 | |||||
Goodwill and Intangible Asset Impairment [Abstract] | |||||||
Fair Value | 0 | 710 | |||||
Brands [Member] | Greater than 100 percent [Member] | |||||||
Change in intangible assets other than goodwill [Abstract] | |||||||
Intangible assets with indefinite lives | 2,628 | 1,994 | |||||
Goodwill and Intangible Asset Impairment [Abstract] | |||||||
Fair Value | $ 15,647 | $ 13,340 | |||||
Brands [Member] | Minimum [Member] | |||||||
Goodwill and Intangible Asset Impairment [Abstract] | |||||||
Discount Rate | 7.25% | 7.45% | |||||
Brands [Member] | Maximum [Member] | |||||||
Goodwill and Intangible Asset Impairment [Abstract] | |||||||
Discount Rate | 10.35% | 11.85% | |||||
Distribution rights [Member] | |||||||
Change in intangible assets other than goodwill [Abstract] | |||||||
Intangible assets with indefinite lives | $ 27 | $ 27 | |||||
[1] | Garden Cocktail was removed from this presentation as a result of the $7 million non-cash impairment charge. | ||||||
[2] | In 2015, brands with indefinite lives decreased due to the $9 million impact of foreign currency translation and the $7 million impact of an impairment charge related to Garden Cocktail. |
Prepaid Expenses and Other Cu67
Prepaid Expenses and Other Current Assets and Other Current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Prepaid Expenses and Other Current Assets and Other Current Liabilities [Abstract] | ||
Customer incentive programs | $ 21 | $ 18 |
Derivative instruments | 9 | 11 |
Current assets held for sale | 0 | 12 |
Other | 39 | 45 |
Total prepaid expenses and other current assets | 69 | 86 |
Customer rebates and incentives | 283 | 248 |
Accrued compensation | 133 | 127 |
Insurance liability | 42 | 46 |
Interest accrual | 30 | 26 |
Dividends payable | 90 | 79 |
Derivative instruments | 29 | 18 |
Other | 101 | 128 |
Total other current liabilities | $ 708 | $ 672 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | Nov. 09, 2015 | Feb. 07, 2013 | Nov. 20, 2012 | Nov. 15, 2011 | Jan. 11, 2011 | Apr. 30, 2008 | ||
Debt Instrument [Line Items] | |||||||||||
Senior unsecured notes | $ 3,246 | $ 2,497 | |||||||||
Capital lease obligations | 136 | 86 | |||||||||
Subtotal | 3,382 | 2,583 | |||||||||
Long-term Debt and Capital Lease Obligations, Current | 507 | 3 | |||||||||
Long-term obligations | 2,875 | 2,580 | |||||||||
Impact of Fair Value Hedges on Carrying Value of Senior Unsecured Notes | 40 | 34 | |||||||||
Balance Sheet Reclassification Amount | 8 | ||||||||||
Debt, Current [Abstract] | |||||||||||
Commercial paper | 0 | 0 | |||||||||
Senior unsecured notes | 500 | 0 | |||||||||
Capital lease obligations | 7 | 3 | |||||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||||||
Senior unsecured notes, principal amount | 3,224 | ||||||||||
Commercial Paper Program [Abstract] | |||||||||||
Commercial Paper Maximum Borrowing Capacity | 500 | ||||||||||
Senior Unsecured Credit Facility [Abstract] | |||||||||||
Revolving credit facility (capacity) | $ 500 | ||||||||||
Debt Instrument Abr Interest Rate Percentage | 0.50% | ||||||||||
Available for Additional Borrowings | $ 500 | ||||||||||
Line of Credit Facility, Amount Outstanding | 0 | ||||||||||
Unused commitment fee, amount | 1 | 1 | $ 1 | ||||||||
Line of Credit, Maximum Increase | $ 250 | ||||||||||
Percent of total commitments | 50.00% | ||||||||||
Shelf Registration Statement [Abstract] | |||||||||||
Debt Securities Authorized | $ 1,500 | ||||||||||
Debt Securities Authorized, Unutilized Amount | $ 750 | ||||||||||
Letters of Credit [Abstract] | |||||||||||
Letters of Credit Borrowing Capacity, Description | 120 | ||||||||||
Letters of Credit Utilized | 60 | ||||||||||
Letters of Credit Available | $ 60 | ||||||||||
Numerator [Member] | |||||||||||
Senior Unsecured Credit Facility [Abstract] | |||||||||||
Ratio of Indebtedness to EBITDA | 3 | ||||||||||
Denominator [Member] | |||||||||||
Senior Unsecured Credit Facility [Abstract] | |||||||||||
Ratio of Indebtedness to EBITDA | 1 | ||||||||||
ABR Loans [Member] | Minimum [Member] | |||||||||||
Senior Unsecured Credit Facility [Abstract] | |||||||||||
Debt Instrument, Interest Rate, Margin Percentage | 0.00% | ||||||||||
ABR Loans [Member] | Maximum [Member] | |||||||||||
Senior Unsecured Credit Facility [Abstract] | |||||||||||
Debt Instrument, Interest Rate, Margin Percentage | 0.30% | ||||||||||
Eurodollar Loans [Member] | Minimum [Member] | |||||||||||
Senior Unsecured Credit Facility [Abstract] | |||||||||||
Debt Instrument, Interest Rate, Margin Percentage | 0.795% | ||||||||||
Eurodollar Loans [Member] | Maximum [Member] | |||||||||||
Senior Unsecured Credit Facility [Abstract] | |||||||||||
Debt Instrument, Interest Rate, Margin Percentage | 1.30% | ||||||||||
Revolving Letters of Credit [Member] | |||||||||||
Senior Unsecured Credit Facility [Abstract] | |||||||||||
Revolving credit facility (capacity) | $ 75 | ||||||||||
Available for Additional Borrowings | 75 | ||||||||||
Line of Credit Facility, Amount Outstanding | 0 | ||||||||||
Swingline Advances [Member] | |||||||||||
Senior Unsecured Credit Facility [Abstract] | |||||||||||
Revolving credit facility (capacity) | 50 | ||||||||||
Available for Additional Borrowings | 50 | ||||||||||
Line of Credit Facility, Amount Outstanding | 0 | ||||||||||
2016 Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior unsecured notes | [1] | 500 | 499 | ||||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||||||
Senior unsecured notes, stated percentage rate | 2.90% | ||||||||||
Senior unsecured notes, principal amount | 500 | $ 500 | |||||||||
Senior Unsecured Notes [Abstract] | |||||||||||
Debt Instrument, Unamortized Discount | 1 | ||||||||||
Debt Issuance Costs, at issuance date | $ 3 | ||||||||||
2018 Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior unsecured notes | [1] | 723 | 722 | ||||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||||||
Senior unsecured notes, stated percentage rate | 6.82% | ||||||||||
Senior unsecured notes, principal amount | 724 | $ 1,200 | |||||||||
Senior Unsecured Notes [Abstract] | |||||||||||
Extinguishment of Debt, Amount | $ 476 | ||||||||||
2019 Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior unsecured notes | [1] | 250 | 249 | ||||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||||||
Senior unsecured notes, stated percentage rate | 2.60% | ||||||||||
Senior unsecured notes, principal amount | 250 | $ 250 | |||||||||
2020 Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior unsecured notes | [1] | 246 | 244 | ||||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||||||
Senior unsecured notes, stated percentage rate | 2.00% | ||||||||||
Senior unsecured notes, principal amount | 250 | $ 250 | |||||||||
2021 Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior unsecured notes | [1] | 250 | 248 | ||||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||||||
Senior unsecured notes, stated percentage rate | 3.20% | ||||||||||
Senior unsecured notes, principal amount | 250 | $ 250 | |||||||||
2022 Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior unsecured notes | [1] | 265 | 264 | ||||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||||||
Senior unsecured notes, stated percentage rate | 2.70% | ||||||||||
Senior unsecured notes, principal amount | 250 | $ 250 | |||||||||
2025 Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior unsecured notes | [1] | 494 | 0 | ||||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||||||
Senior unsecured notes, stated percentage rate | 3.40% | ||||||||||
Senior unsecured notes, principal amount | 500 | $ 500 | |||||||||
2038 Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior unsecured notes | [1] | 271 | 271 | ||||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||||||
Senior unsecured notes, stated percentage rate | 7.45% | ||||||||||
Senior unsecured notes, principal amount | 250 | $ 250 | |||||||||
2045 Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior unsecured notes | [1] | 247 | $ 0 | ||||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||||||
Senior unsecured notes, stated percentage rate | 4.50% | ||||||||||
Senior unsecured notes, principal amount | $ 250 | $ 250 | |||||||||
Revolving Credit Facility [Member] | Minimum [Member] | |||||||||||
Senior Unsecured Credit Facility [Abstract] | |||||||||||
Unused commitment fee, percentage on the unutilized portion of the commitments, revolving credit facility | 0.08% | ||||||||||
Revolving Credit Facility [Member] | Maximum [Member] | |||||||||||
Senior Unsecured Credit Facility [Abstract] | |||||||||||
Unused commitment fee, percentage on the unutilized portion of the commitments, revolving credit facility | 0.20% | ||||||||||
Senior Unsecured Notes Group One [Member] | |||||||||||
Senior Unsecured Notes [Abstract] | |||||||||||
Debt Issuance Costs, at issuance date | $ 11 | ||||||||||
Senior Unsecured Notes Group Two [Member] | |||||||||||
Senior Unsecured Notes [Abstract] | |||||||||||
Debt Instrument, Unamortized Discount | 1 | ||||||||||
Debt Issuance Costs, at issuance date | $ 3 | ||||||||||
Senior Unsecured Notes Group Three [Member] | |||||||||||
Senior Unsecured Notes [Abstract] | |||||||||||
Debt Instrument, Unamortized Discount | 3 | ||||||||||
Debt Issuance Costs, at issuance date | $ 3 | ||||||||||
Senior Unsecured Notes Group Four [Member] | |||||||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||||||
Senior unsecured notes, principal amount | 750 | ||||||||||
Senior Unsecured Notes [Abstract] | |||||||||||
Debt Instrument, Unamortized Discount | 4 | ||||||||||
Debt Issuance Costs, at issuance date | $ 6 | ||||||||||
[1] | The fair value amounts of long term debt were based on current market rates available to the Company. The difference between the fair value and the carrying value represents the theoretical net premium or discount that would be paid or received to retire all debt and related unamortized costs to be incurred at such date. The carrying amount includes the unamortized discounts and issuance costs on the issuance of debt and adjustments related to the change in the fair value of interest rate swaps designated as fair value hedges on the 2019, 2020, 2021, 2022 and 2038 Notes. Refer to Note 10 for additional information regarding derivatives. |
Derivatives Derivatives - Discu
Derivatives Derivatives - Discussion (Details) $ in Millions | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($)Instrument | Dec. 31, 2014USD ($)Instrument | Dec. 31, 2013USD ($) | Sep. 30, 2015USD ($)Instrument | Mar. 31, 2015USD ($)Instrument | Feb. 28, 2015USD ($)Instrument | Dec. 31, 2012USD ($)Instrument | Dec. 31, 2010USD ($) | |||
Derivative [Line Items] | ||||||||||
Derivative Instruments, Loss Recognized in Other Comprehensive Income (Loss), Effective Portion | $ 7 | |||||||||
Cash Flow Hedging [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net | 0 | $ 0 | $ 0 | |||||||
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Fair Value Hedging [Member] | Swap [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Increase (Decrease) in Fair Value of Hedged Item in Interest Rate Fair Value Hedge | 40 | 34 | ||||||||
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Cash Flow Hedging [Member] | Swap [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net | 0 | |||||||||
Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | Forward Contracts [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | $ 7 | 10 | ||||||||
Derivative, Lower Remaining Maturity Range | 1 month | |||||||||
Derivative, Higher Remaining Maturity Range | 6 months | |||||||||
Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Economic Hedge [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | $ 159 | $ 160 | ||||||||
30 year [Member] | Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Cash Flow Hedging [Member] | Swap [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Number of Instruments Held | Instrument | 5 | |||||||||
Derivative, Notional Amount | $ 250 | |||||||||
10 year [Member] | Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Cash Flow Hedging [Member] | Swap [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Number of Instruments Held | Instrument | 6 | |||||||||
Derivative, Notional Amount | $ 275 | |||||||||
Fourth quarter 2014 [Member] | 30 year [Member] | Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Cash Flow Hedging [Member] | Swap [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Number of Instruments Held | Instrument | 1 | |||||||||
Derivative, Notional Amount | $ 125 | |||||||||
Fourth quarter 2014 [Member] | 10 year [Member] | Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Cash Flow Hedging [Member] | Swap [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Number of Instruments Held | Instrument | 0 | |||||||||
Derivative, Notional Amount | $ 0 | |||||||||
First quarter 2015 [Member] | 30 year [Member] | Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Cash Flow Hedging [Member] | Swap [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Number of Instruments Held | Instrument | 3 | |||||||||
Derivative, Notional Amount | $ 100 | |||||||||
First quarter 2015 [Member] | 10 year [Member] | Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Cash Flow Hedging [Member] | Swap [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Number of Instruments Held | Instrument | 0 | |||||||||
Derivative, Notional Amount | $ 0 | |||||||||
Third quarter 2015 [Member] | 30 year [Member] | Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Cash Flow Hedging [Member] | Swap [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Number of Instruments Held | Instrument | 1 | |||||||||
Derivative, Notional Amount | $ 25 | |||||||||
Third quarter 2015 [Member] | 10 year [Member] | Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Cash Flow Hedging [Member] | Swap [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Number of Instruments Held | Instrument | 4 | |||||||||
Derivative, Notional Amount | $ 175 | |||||||||
Fourth quarter 2015 [Member] | 30 year [Member] | Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Cash Flow Hedging [Member] | Swap [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Number of Instruments Held | Instrument | 0 | |||||||||
Derivative, Notional Amount | $ 0 | |||||||||
Fourth quarter 2015 [Member] | 10 year [Member] | Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Cash Flow Hedging [Member] | Swap [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Number of Instruments Held | Instrument | 2 | |||||||||
Derivative, Notional Amount | $ 100 | |||||||||
Senior Notes 2019 [Member] | Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Fair Value Hedging [Member] | Swap [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Number of Instruments Held | Instrument | 2 | |||||||||
Derivative, Notional Amount | $ 100 | |||||||||
Increase (Decrease) in Fair Value of Hedged Item in Interest Rate Fair Value Hedge | 1 | 0 | ||||||||
Senior Notes 2021 [Member] | Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Fair Value Hedging [Member] | Swap [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Number of Instruments Held | Instrument | 2 | |||||||||
Derivative, Notional Amount | $ 150 | |||||||||
Increase (Decrease) in Fair Value of Hedged Item in Interest Rate Fair Value Hedge | 1 | $ (1) | ||||||||
2020 Notes [Member] | Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Fair Value Hedging [Member] | Swap [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Number of Instruments Held | Instrument | 5 | |||||||||
Derivative, Notional Amount | $ 120 | |||||||||
Increase (Decrease) in Fair Value of Hedged Item in Interest Rate Fair Value Hedge | (2) | $ (4) | ||||||||
2022 Notes [Member] | Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Fair Value Hedging [Member] | Swap [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Number of Instruments Held | Instrument | 4 | |||||||||
Derivative, Notional Amount | $ 250 | |||||||||
Increase (Decrease) in Fair Value of Hedged Item in Interest Rate Fair Value Hedge | 17 | 16 | ||||||||
2038 Notes [Member] | Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | Fair Value Hedging [Member] | Swap [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Number of Instruments Held | Instrument | [1] | 1 | ||||||||
Derivative, Notional Amount | $ 100 | [1] | $ 100 | |||||||
Deferred Gain (Loss) on Discontinuation of Interest Rate Fair Value Hedge | $ 25 | |||||||||
Increase (Decrease) in Fair Value of Hedged Item in Interest Rate Fair Value Hedge | [1] | $ 23 | $ 23 | |||||||
[1] | In December 2010, the Company entered into an interest rate swap having a notional amount of $100 million and maturing in May 2038 in order to effectively convert a portion of the 2038 Notes from fixed-rate debt to floating-rate debt and designated it as a fair value hedge. The assessment of hedge effectiveness is made by comparing the cumulative change in the fair value of the hedged item attributable to changes in the benchmark interest rate with the cumulative changes in the fair value of the interest rate swap, with any ineffectiveness recorded in earnings as interest expense during the period incurred. In February 2015, the swap agreement was modified and transferred to another counterparty through a novation transaction. As a result, the Company de-designated the original hedging relationship. Under the original hedging relationship, the $25 million recorded as an increase to debt due to the changes in fair market value of the debt will be amortized into earnings over the remaining term of the 2038 Notes. In February 2015, the Company then designated the new interest rate swap contract as a fair value hedge with a notional amount of $100 million and maturing in May 2038 in order to effectively convert a portion of the 2038 Notes from fixed-rate debt to floating-rate debt. The Company uses regression analysis to assess the prospective and retrospective effectiveness of this hedge relationship. |
Derivatives Derivatives - Fair
Derivatives Derivatives - Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | $ 42 | $ 40 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 33 | 35 |
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 9 | 11 |
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 33 | 29 |
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 1 | 0 |
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 1 | 9 |
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 0 | 0 |
Commodity Contract [Member] | Not Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 0 | 0 |
Commodity Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 28 | 18 |
Commodity Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | $ 3 | $ 8 |
Derivatives Derivatives - Impac
Derivatives Derivatives - Impact on Net Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ (38) | $ (25) | $ (23) | ||
Fair Value Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (Loss) on Fair Value Hedge Ineffectiveness, Net | (1) | 0 | (2) | ||
Derivative, Gain (Loss) on Derivative, Net | 17 | 16 | 9 | ||
Cash Flow Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net | 0 | 0 | 0 | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (3) | (4) | 4 | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (6) | (7) | (8) | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | (8) | ||||
Commodity Contract [Member] | Cost of Sales [Member] | Not Designated as Hedging Instrument [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | [1] | (24) | 1 | (24) | |
Commodity Contract [Member] | Selling, General and Administrative Expenses [Member] | Not Designated as Hedging Instrument [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | [1] | (14) | (26) | 1 | |
Interest Rate Contract [Member] | Interest Expense [Member] | Fair Value Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Gain (Loss) on Derivative, Net | 17 | [2] | 16 | 9 | |
Interest Rate Contract [Member] | Interest Expense [Member] | Cash Flow Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (5) | (2) | 0 | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (8) | (8) | (7) | ||
Foreign Exchange Forward [Member] | Cost of Sales [Member] | Cash Flow Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 2 | (2) | 4 | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 2 | $ 1 | $ (1) | ||
[1] | Commodity contracts include both realized and unrealized gains and losses. | ||||
[2] | Interest expense for the year ended December 31, 2015 includes amortization of the interest rate swap associated with the 2038 Notes, which was de-designated in February 2015, and basis adjustments related to the 2038 and 2022 Notes. |
Other Non-Current Assets and 72
Other Non-Current Assets and Other Non-Current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | ||
Other non-current assets: | ||||
Customer incentive programs | $ 52 | $ 55 | ||
Marketable securities - trading | 25 | 25 | ||
Derivative instruments | 33 | 29 | ||
Cost method investments | 15 | [1] | 0 | |
Other | [2] | 25 | 42 | |
Other non-current assets | 150 | 151 | ||
Other non-current liabilities: | ||||
Long-term payables due to Mondelēz | 26 | 37 | ||
Long-term pension and postretirement liability | 40 | 44 | ||
Multi-employer pension plan withdrawal liability | 56 | 57 | ||
Insurance reserves | 75 | 90 | ||
Derivative instruments | 4 | 17 | ||
Deferred compensation liability | 25 | 25 | ||
Other | 34 | 32 | ||
Other non-current liabilities | 260 | 302 | ||
Acquisition of cost method investment | $ 15 | |||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||||
Balance Sheet Reclassification Amount | $ 8 | |||
[1] | During the year ended December 31, 2015, the Company acquired a minor interest in Bai Brands, LLC for $15 million. This investment is accounted for as a cost-method investment, as the Company owns a minor interest and does not have the ability to exercise significant influence over operating and financial policies of the entity. This cost method investment does not have a readily determinable fair value as the entity is not publicly traded. | |||
[2] | As of December 31, 2015, the Company early adopted the accounting standard requiring that issuance costs related to a recognized debt liability on the balance sheet be presented in the balance sheet as a direct deduction from the carrying value of the related debt liability, consistent with the presentation of discounts. As a result, $8 million was reclassified from other non-current assets to long-term obligations within the Consolidated Balance Sheets as of December 31, 2014. Deferred financing costs associated with the Company's Revolver remain classified in other non-current assets. The above table reflects this presentation as of December 31, 2015 and 2014. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Provision for income tax by country [Abstract] | ||||
U.S. - Income before provision for income taxes | $ 1,070 | $ 958 | $ 436 | |
Non-U.S. - Income before provision for income taxes | 114 | 115 | 106 | |
Income before provision (benefit) for income taxes and equity in earnings of unconsolidated subsidiaries | 1,184 | 1,073 | 542 | |
Provision for income taxes by type [Abstract] | ||||
Current - Federal Tax Expense (Benefit) | 307 | 259 | (211) | |
Current - State Tax Expense (Benefit) | 52 | 49 | (58) | |
Current - Non-U.S. Tax Expense (Benefit) | 32 | 20 | 50 | |
Total current provision | 391 | 328 | (219) | |
Deferred - Federal Income Tax Expense (Benefit) | 21 | 36 | 95 | |
Deferred - State Income Tax Expense (Benefit) | 7 | 1 | 10 | |
Deferred - Non-U.S. Income Tax Expense (Benefit) | 1 | 6 | 33 | |
Total deferred provision | 29 | 43 | 138 | |
Total (benefit) provision for income taxes | 420 | 371 | (81) | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | ||||
Statutory federal income tax of 35% | 414 | 375 | 190 | |
Completion of 2006-2008 IRS audit | 0 | 0 | (463) | |
Canada amortization law change | 0 | 0 | 50 | |
Impact of non-taxable indemnity income/ non-tax deductible indemnity expense | [1] | 0 | 0 | 137 |
State income taxes, net | 39 | 32 | 34 | |
U.S. Federal domestic manufacturing benefit | (29) | (26) | (23) | |
Impact of Non-U.S. operations | (7) | (14) | (7) | |
Indemnified taxes | [2] | 0 | 0 | 5 |
Other | 3 | 4 | (4) | |
Total (benefit) provision for income taxes | $ 420 | $ 371 | $ (81) | |
Effective income tax rate | 35.50% | 34.60% | (14.90%) | |
Indemnity expense, net | $ 392 | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Beginning balance | $ 13 | $ 14 | 469 | |
Increases related to tax positions taken during the current year | 0 | 0 | 1 | |
Increases related to tax positions taken during the prior year | 10 | 3 | 6 | |
Decreases related to tax positions taken during the prior year | (1) | (2) | (432) | |
Decreases related to settlements with taxing authorities | (2) | (1) | (27) | |
Decreases related to lapse of applicable statute of limitations | (1) | (1) | (3) | |
Ending balance | 19 | 13 | 14 | |
Components of Deferred Tax Liabilities [Abstract] | ||||
Intangible assets and goodwill | (1,162) | (1,116) | ||
Fixed assets | (192) | (198) | ||
Other | (25) | (21) | ||
Deferred tax liabilities, gross | (1,379) | (1,335) | ||
Valuation allowance | (28) | (31) | ||
Net deferred income tax liability | (723) | (660) | ||
Deferred income tax assets [Abstract] | ||||
Deferred revenue | 474 | 501 | ||
Accrued liabilities | 69 | 72 | ||
Compensation | 42 | 34 | ||
Pension and postretirement benefits | 35 | 36 | ||
Net operating loss and credit carryforward | 21 | 22 | ||
Inventory | 5 | 4 | ||
Other | 38 | 37 | ||
Deferred tax assets, gross | 684 | 706 | ||
Income Tax Uncertainties [Abstract] | ||||
Net unrecognized tax benefits and other tax related items | 13 | |||
Interest and penalties recognized | 1 | 0 | $ (93) | |
Uncertain tax positions, noncurrent | 5 | 5 | ||
Income Taxes Textuals [Abstract] | ||||
Undistributed Earnings of Foreign Subsidiaries | 371 | 354 | ||
International [Member] | ||||
Components of Deferred Tax Liabilities [Abstract] | ||||
Valuation allowance | (18) | |||
International [Member] | Other Tax Liabilities Related To Separation [Member] | ||||
Components of Deferred Tax Liabilities [Abstract] | ||||
Valuation allowance | $ (10) | |||
Completion of Audit [Member] | ||||
Provision for income taxes by type [Abstract] | ||||
Total (benefit) provision for income taxes | (4) | |||
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | ||||
Total (benefit) provision for income taxes | $ (4) | |||
[1] | Due to the resolution of the 2006-2008 IRS audit and the Canada amortization law change in 2013, the Company recognized indemnity expense, net of $392 million as a result of the Tax Sharing and Indemnification Agreement ("Tax Indemnity Agreement"). Since the indemnity expense is not deductible for income tax purposes, the benefit for income taxes also included a permanent difference of $137 million. | |||
[2] | Amounts represent tax expense recorded by the Company for which Mondelēz was obligated to indemnify DPS under the Tax Indemnity Agreement but excludes the amounts with respect to the completion of the 2006-2008 IRS audit and the Canada amortization law change as they are separately shown on the rate reconciliation. |
Other Expense (Income), Net (De
Other Expense (Income), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Income and Expenses [Abstract] | ||||
Indemnity expense from Mondelēz | $ 430 | $ 0 | $ 0 | $ 387 |
Other | (1) | 0 | (4) | |
Other (income) expense, net | $ (1) | $ 0 | 383 | |
Other Noncash Income | $ 38 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 29, 2020 | ||
Overview [Abstract] | ||||||
Cash Balance Plan, Percentage increase over Treasury bill rate | 1.00% | |||||
Cash Balance Plan, Minimum Annual Rate | 5.00% | |||||
Defined Benefit Plan, Funded Status of Plan [Abstract] | ||||||
Non-current liabilities | $ (40) | $ (44) | ||||
Accumulated benefit obligation for the defined benefit pension plans | $ 202 | 223 | ||||
U.S. pension plans as a percentage of total pension plans | 91.00% | |||||
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets [Abstract] | ||||||
Aggregate projected benefit obligation | $ 194 | 226 | ||||
Aggregate accumulated benefit obligation | 190 | 223 | ||||
Aggregate fair value of plan assets | 156 | 186 | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||||
Amortization of prior service cost (credit) | 0 | 0 | $ 1 | |||
Multiemployer Plans [Abstract] | ||||||
Multi-employer pension plan withdrawal | 0 | 0 | 56 | |||
Multiemployer Plan Expense | 4 | 6 | 63 | |||
MultiemployerPlanExpectedFutureContributionYearOne | 1 | |||||
MultiemployerPlanExpectedFutureContributionsYearTwo | 1 | |||||
MultiemployerPlanExpectedFutureContributionYearThree | 1 | |||||
MultiemployerPlanExpectedFutureContributionYearFour | 1 | |||||
EDC [Member] | ||||||
Defined Contribution Plans [Abstract] | ||||||
Defined Contribution Plan, Cost Recognized | 17 | 16 | 16 | |||
SIP and SSP [Member] | ||||||
Defined Contribution Plans [Abstract] | ||||||
Defined Contribution Plan, Cost Recognized | 17 | 16 | 15 | |||
Individually Significant Multiemployer Plans [Member] | ||||||
Multiemployer Plans [Abstract] | ||||||
Multiemployer Plan, Period Contributions | [1] | 1 | 3 | 3 | ||
Multi-employer pension plan withdrawal | [2] | 0 | 0 | |||
All Other Multiemployer Plans [Member] | ||||||
Multiemployer Plans [Abstract] | ||||||
Multiemployer Plan, Period Contributions | 3 | 3 | 3 | |||
Multi-employer pension plan withdrawal | [3] | $ 0 | $ 0 | 1 | ||
Local 710 [Member] | ||||||
Multiemployer Plans [Abstract] | ||||||
Multi-employer pension plan withdrawal | [2] | $ 56 | ||||
Central States [Member] | Scenario, Forecast [Member] | ||||||
Multiemployer Plans [Abstract] | ||||||
Multiemployer Plans, Collective-Bargaining Arrangement, Percentage of Participants | 14.00% | 48.00% | ||||
Equity Securities [Member] | ||||||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||||||
Defined Benefit Plan, Actual Plan Asset Allocations | 25.00% | 25.00% | ||||
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 16.00% | |||||
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 20.00% | |||||
Equity Securities [Member] | Scenario, Forecast [Member] | ||||||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||||||
Defined Benefit Plan, Target Plan Asset Allocations | 25.00% | |||||
Equity Funds [Member] | ||||||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 8.70% | 9.20% | 8.20% | |||
Defined Benefit Plan, Target Plan Asset Allocations | 25.00% | |||||
International Equity Funds [Member] | ||||||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||||||
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 6.00% | |||||
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 8.00% | |||||
Fixed Income Securities [Member] | ||||||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 3.70% | 3.90% | 6.00% | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 75.00% | 75.00% | ||||
Defined Benefit Plan, Target Plan Asset Allocations | 75.00% | |||||
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 69.00% | |||||
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 81.00% | |||||
Fixed Income Securities [Member] | Scenario, Forecast [Member] | ||||||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||||||
Defined Benefit Plan, Target Plan Asset Allocations | 75.00% | |||||
Annuity Settlement Effects [Member] | ||||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||||
Settlements2 | $ 71 | |||||
Pension Plan [Member] | ||||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||||
Defined Benefit Plan, Benefit Obligation | $ 206 | 227 | $ 259 | |||
Service cost | 3 | 2 | 3 | |||
Interest cost | 9 | 13 | 13 | |||
Actuarial losses (gains), net(1) | [4] | 14 | (46) | |||
Benefits paid | (3) | (8) | ||||
Currency exchange adjustments | (3) | (3) | ||||
Settlements2 | [5] | 13 | 82 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 169 | 187 | 237 | |||
Actual return on plan assets | (7) | 30 | ||||
Employer contributions | 8 | 12 | ||||
Benefits paid | (3) | (8) | ||||
Currency exchange adjustments | (3) | (2) | ||||
Settlements2 | [5] | (13) | (82) | |||
Defined Benefit Plan, Funded Status of Plan [Abstract] | ||||||
Funded status of plan / net amount recognized | (37) | (40) | ||||
Non-current assets | 1 | 0 | ||||
Current liabilities | (1) | 0 | ||||
Non-current liabilities | (37) | (40) | ||||
Net amount recognized | (37) | (40) | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||||
Service cost | 3 | 2 | 3 | |||
Interest cost | 9 | 13 | 13 | |||
Expected return on assets | (9) | (14) | (14) | |||
Amortization of net actuarial loss | 4 | 3 | 4 | |||
Settlements | 3 | 16 | 3 | |||
Net periodic benefit costs | 10 | 20 | 9 | |||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ||||||
Total recognized in OCI | (5) | 11 | (36) | |||
Summary of amounts included in AOCL | ||||||
Prior service cost (credit) | 2 | 2 | ||||
Net losses | 52 | 56 | ||||
Amounts in AOCL | 54 | 58 | ||||
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | ||||||
Pension plan expected future benefit payments - year one | 11 | |||||
Pension plan expected future benefit payments - year two | 12 | |||||
Pension plan expected future benefit payments - year three | 12 | |||||
Pension plan expected future benefit payments - year four | 12 | |||||
Pension plan expected future benefit payments - year five | 13 | |||||
DPension plan expected future benefit payments - years six through ten | 66 | |||||
Assets of the Pension Plans [Abstract] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 169 | 187 | 237 | |||
Pension Plan [Member] | Scenario, Forecast [Member] | ||||||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ||||||
Estimated net actuarial loss that will be amortized from AOCL into periodic benefit cost in the next year | $ (4) | |||||
Pension and Other Postretirement Benefit Contributions [Abstract] | ||||||
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 1 | |||||
Pension Plan [Member] | Contribution for Annuity Purchase [Member] | ||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Employer contributions | 10 | |||||
Pension Plan [Member] | Discretionary Contributions [Member] | ||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Employer contributions | 7 | |||||
Pension Plan [Member] | Cash and Cash Equivalents [Member] | ||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 5 | 10 | ||||
Assets of the Pension Plans [Abstract] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 5 | 10 | ||||
Pension Plan [Member] | Domestic Equity Securities [Member] | ||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | [6],[7] | 27 | 30 | |||
Assets of the Pension Plans [Abstract] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | [6],[7] | 27 | 30 | |||
Pension Plan [Member] | Foreign Equity Securities [Member] | ||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | [6],[7] | 13 | 19 | |||
Assets of the Pension Plans [Abstract] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | [6],[7] | 13 | 19 | |||
Pension Plan [Member] | Derivative Financial Instruments, Assets [Member] | ||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | [8] | 19 | 31 | |||
Assets of the Pension Plans [Abstract] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | [8] | 19 | 31 | |||
Pension Plan [Member] | US Treasury Securities [Member] | ||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 12 | 22 | ||||
Assets of the Pension Plans [Abstract] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 12 | 22 | ||||
Pension Plan [Member] | Municipal Bonds [Member] | ||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | [9] | 5 | 5 | |||
Assets of the Pension Plans [Abstract] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | [9] | 5 | 5 | |||
Pension Plan [Member] | International Equity Funds [Member] | ||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 13 | 19 | ||||
Assets of the Pension Plans [Abstract] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 13 | 19 | ||||
Pension Plan [Member] | Domestic Corporate Debt Securities [Member] | ||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | [9] | 86 | 82 | |||
Assets of the Pension Plans [Abstract] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | [9] | 86 | 82 | |||
Pension Plan [Member] | Foreign Corporate Debt Securities [Member] | ||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | [7] | 21 | 19 | |||
Assets of the Pension Plans [Abstract] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | [7] | 21 | 19 | |||
Pension Plan [Member] | Derivative Financial Instruments, Liabilities [Member] | ||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | [8] | (19) | (31) | |||
Assets of the Pension Plans [Abstract] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | [8] | (19) | (31) | |||
Pension Plan [Member] | Assets, Total [Member] | ||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 188 | 218 | ||||
Assets of the Pension Plans [Abstract] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 188 | 218 | ||||
Pension Plan [Member] | Liabilities, Total [Member] | ||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | (19) | (31) | ||||
Assets of the Pension Plans [Abstract] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | (19) | (31) | ||||
Pension Plan [Member] | Settlement Effects [Member] | ||||||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ||||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, before Tax | (3) | (16) | (3) | |||
Pension Plan [Member] | Annuity Settlement Effects [Member] | ||||||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ||||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, before Tax | 14 | |||||
Pension Plan [Member] | Recognition of net actuarial loss [Member] | ||||||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ||||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, before Tax | (4) | (3) | (4) | |||
Pension Plan [Member] | Current Year Actuarial Gain Loss [Member] | ||||||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ||||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, before Tax | 2 | 30 | (29) | |||
Pension Plan [Member] | Overfunded [Member] | ||||||
Defined Benefit Plan, Funded Status of Plan [Abstract] | ||||||
Funded status of plan / net amount recognized | 1 | 0 | ||||
Pension Plan [Member] | Underfunded [Member] | ||||||
Defined Benefit Plan, Funded Status of Plan [Abstract] | ||||||
Funded status of plan / net amount recognized | (38) | (40) | ||||
Other Postretirement Benefit Plan [Member] | ||||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||||
Defined Benefit Plan, Benefit Obligation | 7 | 8 | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 5 | 6 | ||||
Defined Benefit Plan, Funded Status of Plan [Abstract] | ||||||
Non-current assets | 1 | 2 | ||||
Non-current liabilities | (3) | (4) | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||||
Net periodic benefit costs | 0 | 0 | (1) | |||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ||||||
Total recognized in OCI | 1 | 0 | $ 1 | |||
Assets of the Pension Plans [Abstract] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 5 | 6 | ||||
Other Postretirement Benefit Plan [Member] | Cash and Cash Equivalents [Member] | ||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 1 | |||||
Assets of the Pension Plans [Abstract] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 1 | |||||
Other Postretirement Benefit Plan [Member] | Domestic Equity Securities [Member] | ||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | [10],[11] | 1 | 1 | |||
Assets of the Pension Plans [Abstract] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | [10],[11] | 1 | 1 | |||
Other Postretirement Benefit Plan [Member] | Derivative Financial Instruments, Assets [Member] | ||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | [12] | 1 | ||||
Assets of the Pension Plans [Abstract] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | [12] | 1 | ||||
Other Postretirement Benefit Plan [Member] | US Treasury Securities [Member] | ||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 1 | |||||
Assets of the Pension Plans [Abstract] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 1 | |||||
Other Postretirement Benefit Plan [Member] | Domestic Corporate Debt Securities [Member] | ||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | [13] | 3 | 4 | |||
Assets of the Pension Plans [Abstract] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | [13] | 3 | 4 | |||
Other Postretirement Benefit Plan [Member] | Derivative Financial Instruments, Liabilities [Member] | ||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | [12] | (1) | ||||
Assets of the Pension Plans [Abstract] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | [12] | (1) | ||||
Other Postretirement Benefit Plan [Member] | Assets, Total [Member] | ||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | 5 | 7 | ||||
Assets of the Pension Plans [Abstract] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | $ 5 | 7 | ||||
Other Postretirement Benefit Plan [Member] | Liabilities, Total [Member] | ||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | (1) | |||||
Assets of the Pension Plans [Abstract] | ||||||
Defined Benefit Plan, Fair Value of Plan Assets | $ (1) | |||||
U.S. Pension Plans | ||||||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 5.25% | 6.00% | 6.00% | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.65% | 4.15% | ||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 3.00% | 3.00% | ||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 4.33% | 5.00% | 4.30% | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 3.00% | 3.00% | 3.00% | |||
Foreign Pension Plans | ||||||
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | ||||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 6.72% | 7.41% | 7.68% | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 5.31% | 4.92% | ||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 3.94% | 3.89% | ||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 6.66% | 7.11% | 6.90% | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 4.47% | 4.30% | 4.24% | |||
[1] | Contributions to individually significant multi-employer plans for the years ended December 31, 2014 and 2013 include amounts contributed to the Soft Drink Industry Local Union 710 Pension Fund ("Local 710") which the Company fully withdrew and ceased participation in the plan as of December 31, 2014. Local 710 was considered an individually significant multi-employer when the contributions were made to the plan prior to the withdrawal and for the years ended December 31, 2014 and 2013 | |||||
[2] | During the fourth quarter of 2013, the Company recognized a $56 million withdrawal charge for the withdrawal from the Local 710. This item was presented as a multi-employer pension plan withdrawal in the Consolidated Statements of Income. As the withdrawal charge represents the Company's best estimate of the potential amount of the quarterly assessment by Local 710 and the anticipated timing of those assessed payments, actual costs may differ from amounts recorded. | |||||
[3] | During the second quarter of 2013, the Company recognized a $1 million withdrawal charge for one of the collective bargaining units under a multi-employer pension plan based on the trustees' assessment. These charges were recorded as a component of SG&A expenses in the Consolidated Statements of Income. | |||||
[4] | The Company updated the assumption of expected mortality for U.S. plans as of December 31, 2014, in order to reflect the Society of Actuaries' Retirement Plan Experience Committee's updated mortality tables and mortality improvement scale published in October 2014. | |||||
[5] | During 2014, the Company purchased annuity contracts from an insurance company to transfer its projected benefit obligation and assets related to participants currently receiving benefits as part of the U.S. defined benefit pension plans, which resulted in a $71 million reduction in both the projected benefit obligation and the plan assets as of December 31, 2014. | |||||
[6] | Equity securities are comprised of actively managed U.S. index funds and Europe, Australia, Far East ("EAFE") index funds. | |||||
[7] | The NAV is based on the fair value of the underlying assets owned by the equity index fund or fixed income investment vehicle per share multiplied by the number of units held as of the measurement date and are classified as Level 2 assets. | |||||
[8] | Derivative financial instruments consist of U.S Treasury futures. The fair value of these futures is determined by using quoted market prices of similar instruments. | |||||
[9] | U.S. Municipal and Corporate bonds are based on quoted bid prices for comparable securities in the marketplace. | |||||
[10] | Equity securities are comprised of actively managed U.S. index funds and EAFE index funds. | |||||
[11] | The NAV is based on the fair value of the underlying assets owned by the equity index fund or fixed income investment vehicle per share multiplied by the number of units held as of the measurement date and are classified as Level 2 assets. | |||||
[12] | Derivative financial instruments consist of U.S Treasury futures. The fair value of these futures is determined by using quoted market prices of similar instruments. | |||||
[13] | U.S. Corporate bonds are based on quoted bid prices for comparable securities in the marketplace. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments, Assets and Liabilities Measured on a Recurring Basis(Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | $ 42 | $ 40 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities - trading | 25 | 25 |
Assets, Fair Value Disclosure | 25 | 25 |
Derivative Liability, Fair Value, Net | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Commodity Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Interest Rate Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Fair Value, Net | 0 | 0 |
Derivative Liability | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Exchange Forward [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Fair Value, Net | 0 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities - trading | 0 | 0 |
Assets, Fair Value Disclosure | 42 | 40 |
Derivative Liability, Fair Value, Net | 33 | 35 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Commodity Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 31 | 26 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Interest Rate Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Fair Value, Net | 42 | 40 |
Derivative Liability | 2 | 9 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Foreign Exchange Forward [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Fair Value, Net | 0 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities - trading | 0 | 0 |
Assets, Fair Value Disclosure | 0 | 0 |
Derivative Liability, Fair Value, Net | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Commodity Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Interest Rate Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Fair Value, Net | 0 | 0 |
Derivative Liability | 0 | $ 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Foreign Exchange Forward [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset, Fair Value, Net | $ 0 |
Fair Value of Pension and Postr
Fair Value of Pension and Postretirement Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | $ 169 | $ 187 | $ 237 | |
Pension Plan [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 17 | 32 | ||
Pension Plan [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 152 | 155 | ||
Pension Plan [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||
Pension Plan [Member] | Cash and Cash Equivalents [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 5 | 10 | ||
Pension Plan [Member] | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 5 | 10 | ||
Pension Plan [Member] | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||
Pension Plan [Member] | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||
Pension Plan [Member] | Domestic Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [1],[2] | 27 | 30 | |
Pension Plan [Member] | Domestic Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [1],[2] | 0 | 0 | |
Pension Plan [Member] | Domestic Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [1],[2] | 27 | 30 | |
Pension Plan [Member] | Domestic Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [1],[2] | 0 | 0 | |
Pension Plan [Member] | Foreign Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [1],[2] | 13 | 19 | |
Pension Plan [Member] | Foreign Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [1],[2] | 0 | 0 | |
Pension Plan [Member] | Foreign Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [1],[2] | 13 | 19 | |
Pension Plan [Member] | Foreign Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [1],[2] | 0 | 0 | |
Pension Plan [Member] | Derivative Financial Instruments, Assets [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [3] | 19 | 31 | |
Pension Plan [Member] | Derivative Financial Instruments, Assets [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [3] | 0 | 0 | |
Pension Plan [Member] | Derivative Financial Instruments, Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [3] | 19 | 31 | |
Pension Plan [Member] | Derivative Financial Instruments, Assets [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [3] | 0 | 0 | |
Pension Plan [Member] | US Treasury Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 12 | 22 | ||
Pension Plan [Member] | US Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 12 | 22 | ||
Pension Plan [Member] | US Treasury Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||
Pension Plan [Member] | US Treasury Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||
Pension Plan [Member] | Municipal Bonds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [4] | 5 | 5 | |
Pension Plan [Member] | Municipal Bonds [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [4] | 0 | 0 | |
Pension Plan [Member] | Municipal Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [4] | 5 | 5 | |
Pension Plan [Member] | Municipal Bonds [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [4] | 0 | 0 | |
Pension Plan [Member] | Domestic Corporate Debt Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [4] | 86 | 82 | |
Pension Plan [Member] | Domestic Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [4] | 0 | 0 | |
Pension Plan [Member] | Domestic Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [4] | 86 | 82 | |
Pension Plan [Member] | Domestic Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [4] | 0 | 0 | |
Pension Plan [Member] | Foreign Corporate Debt Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [2] | 21 | 19 | |
Pension Plan [Member] | Foreign Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [2] | 0 | 0 | |
Pension Plan [Member] | Foreign Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [2] | 21 | 19 | |
Pension Plan [Member] | Foreign Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [2] | 0 | 0 | |
Pension Plan [Member] | Assets, Total [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 188 | 218 | ||
Pension Plan [Member] | Assets, Total [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 17 | 32 | ||
Pension Plan [Member] | Assets, Total [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 171 | 186 | ||
Pension Plan [Member] | Assets, Total [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||
Pension Plan [Member] | Derivative Financial Instruments, Liabilities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [3] | (19) | (31) | |
Pension Plan [Member] | Derivative Financial Instruments, Liabilities [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [3] | 0 | 0 | |
Pension Plan [Member] | Derivative Financial Instruments, Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [3] | (19) | (31) | |
Pension Plan [Member] | Derivative Financial Instruments, Liabilities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [3] | 0 | 0 | |
Pension Plan [Member] | Liabilities, Total [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | (19) | (31) | ||
Pension Plan [Member] | Liabilities, Total [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||
Pension Plan [Member] | Liabilities, Total [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | (19) | (31) | ||
Pension Plan [Member] | Liabilities, Total [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | ||
Other Postretirement Benefit Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 5 | 6 | ||
Other Postretirement Benefit Plan [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 1 | |||
Other Postretirement Benefit Plan [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 5 | |||
Other Postretirement Benefit Plan [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | |||
Other Postretirement Benefit Plan [Member] | Cash and Cash Equivalents [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 1 | |||
Other Postretirement Benefit Plan [Member] | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 1 | |||
Other Postretirement Benefit Plan [Member] | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | |||
Other Postretirement Benefit Plan [Member] | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | |||
Other Postretirement Benefit Plan [Member] | Domestic Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [5],[6] | 1 | 1 | |
Other Postretirement Benefit Plan [Member] | Domestic Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [5],[6] | 0 | 0 | |
Other Postretirement Benefit Plan [Member] | Domestic Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [5],[6] | 1 | 1 | |
Other Postretirement Benefit Plan [Member] | Domestic Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [5],[6] | 0 | 0 | |
Other Postretirement Benefit Plan [Member] | Derivative Financial Instruments, Assets [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [7] | 1 | ||
Other Postretirement Benefit Plan [Member] | Derivative Financial Instruments, Assets [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [7] | 0 | ||
Other Postretirement Benefit Plan [Member] | Derivative Financial Instruments, Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [7] | 1 | ||
Other Postretirement Benefit Plan [Member] | Derivative Financial Instruments, Assets [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [7] | 0 | ||
Other Postretirement Benefit Plan [Member] | US Treasury Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 1 | |||
Other Postretirement Benefit Plan [Member] | US Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 1 | |||
Other Postretirement Benefit Plan [Member] | US Treasury Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | |||
Other Postretirement Benefit Plan [Member] | US Treasury Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | |||
Other Postretirement Benefit Plan [Member] | Domestic Corporate Debt Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [8] | 3 | 4 | |
Other Postretirement Benefit Plan [Member] | Domestic Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [8] | 0 | 0 | |
Other Postretirement Benefit Plan [Member] | Domestic Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [8] | 3 | 4 | |
Other Postretirement Benefit Plan [Member] | Domestic Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [8] | 0 | 0 | |
Other Postretirement Benefit Plan [Member] | Assets, Total [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 5 | 7 | ||
Other Postretirement Benefit Plan [Member] | Assets, Total [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 1 | 1 | ||
Other Postretirement Benefit Plan [Member] | Assets, Total [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 4 | 6 | ||
Other Postretirement Benefit Plan [Member] | Assets, Total [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | $ 0 | 0 | ||
Other Postretirement Benefit Plan [Member] | Derivative Financial Instruments, Liabilities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [7] | (1) | ||
Other Postretirement Benefit Plan [Member] | Derivative Financial Instruments, Liabilities [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [7] | 0 | ||
Other Postretirement Benefit Plan [Member] | Derivative Financial Instruments, Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [7] | (1) | ||
Other Postretirement Benefit Plan [Member] | Derivative Financial Instruments, Liabilities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | [7] | 0 | ||
Other Postretirement Benefit Plan [Member] | Liabilities, Total [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | (1) | |||
Other Postretirement Benefit Plan [Member] | Liabilities, Total [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | |||
Other Postretirement Benefit Plan [Member] | Liabilities, Total [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | (1) | |||
Other Postretirement Benefit Plan [Member] | Liabilities, Total [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Fair Value of Plan Assets | $ 0 | |||
[1] | Equity securities are comprised of actively managed U.S. index funds and Europe, Australia, Far East ("EAFE") index funds. | |||
[2] | The NAV is based on the fair value of the underlying assets owned by the equity index fund or fixed income investment vehicle per share multiplied by the number of units held as of the measurement date and are classified as Level 2 assets. | |||
[3] | Derivative financial instruments consist of U.S Treasury futures. The fair value of these futures is determined by using quoted market prices of similar instruments. | |||
[4] | U.S. Municipal and Corporate bonds are based on quoted bid prices for comparable securities in the marketplace. | |||
[5] | Equity securities are comprised of actively managed U.S. index funds and EAFE index funds. | |||
[6] | The NAV is based on the fair value of the underlying assets owned by the equity index fund or fixed income investment vehicle per share multiplied by the number of units held as of the measurement date and are classified as Level 2 assets. | |||
[7] | Derivative financial instruments consist of U.S Treasury futures. The fair value of these futures is determined by using quoted market prices of similar instruments. | |||
[8] | U.S. Corporate bonds are based on quoted bid prices for comparable securities in the marketplace. |
Fair Value of Financial Instr78
Fair Value of Financial Instruments, Non-Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement Captions [Line Items] | |||||
Cash and Cash Equivalents, at Carrying Value | $ 911 | $ 237 | $ 153 | $ 366 | |
Long-term Debt, Carrying Value | 3,246 | 2,497 | |||
Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement Captions [Line Items] | |||||
Cash and Cash Equivalents, Fair Value Disclosure | [1] | 911 | 237 | ||
2016 Notes [Member] | |||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Carrying Value | [2] | 500 | 499 | ||
2016 Notes [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | [2] | 500 | 510 | ||
Long term debt - 2018 Notes [Member] | |||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Carrying Value | [2] | 723 | 722 | ||
Long term debt - 2018 Notes [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | [2] | 802 | 835 | ||
2019 Notes [Member] | |||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Carrying Value | [2] | 250 | 249 | ||
2019 Notes [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | [2] | 248 | 253 | ||
2020 Notes [Member] | |||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Carrying Value | [2] | 246 | 244 | ||
2020 Notes [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | [2] | 244 | 244 | ||
2021 Notes [Member] | |||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Carrying Value | [2] | 250 | 248 | ||
2021 Notes [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | [2] | 253 | 255 | ||
2022 Notes [Member] | |||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Carrying Value | [2] | 265 | 264 | ||
2022 Notes [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | [2] | 241 | 244 | ||
2025 Notes [Member] | |||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Carrying Value | [2] | 494 | 0 | ||
2025 Notes [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | [2] | 491 | 0 | ||
2038 Notes [Member] | |||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Carrying Value | [2] | 271 | 271 | ||
2038 Notes [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | [2] | 344 | 363 | ||
2045 Notes [Member] | |||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Carrying Value | [2] | 247 | 0 | ||
2045 Notes [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement Captions [Line Items] | |||||
Long-term Debt, Fair Value | [2] | 244 | 0 | ||
Fair Value, Measurements, Nonrecurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Financial Statement Captions [Line Items] | |||||
Cash and Cash Equivalents, at Carrying Value | [1] | $ 911 | $ 237 | ||
[1] | Cash equivalents are composed of certificates of deposit, time deposits and other interest-bearing investments with original maturity dates of three months or less. Cash equivalents are recorded at cost, which approximates fair value. | ||||
[2] | The fair value amounts of long term debt were based on current market rates available to the Company. The difference between the fair value and the carrying value represents the theoretical net premium or discount that would be paid or received to retire all debt and related unamortized costs to be incurred at such date. The carrying amount includes the unamortized discounts and issuance costs on the issuance of debt and adjustments related to the change in the fair value of interest rate swaps designated as fair value hedges on the 2019, 2020, 2021, 2022 and 2038 Notes. Refer to Note 10 for additional information regarding derivatives. |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Stock-based compensation expense | ||||
Total stock-based compensation expense | $ 44 | $ 48 | $ 37 | |
Income tax benefit recognized in the income statement | (15) | (17) | (12) | |
Stock-based compensation expense, net of tax | $ 29 | $ 31 | $ 25 | |
Shares authorized for stock plans | 20,000,000 | |||
Shares available for grant | 11,000,000 | |||
Maximum option term | 10 years | |||
Assumptions used to value grants of share-based payment awards [Abstract] | ||||
Fair value of options at grant date | $ 9.22 | $ 5.80 | $ 6.92 | |
Risk-free interest rate | 1.28% | 1.25% | 0.68% | |
Expected term (years) | 3 years 10 months 24 days | 4 years 4 months 24 days | 4 years 6 months | |
Dividend yield | 2.55% | 3.35% | 3.39% | |
Expected volatility | 18.98% | 20.03% | 27.42% | |
Stock Option Activity | ||||
Stock options - beginning balance outstanding | 1,529,235 | |||
Stock options - beginning balance outstanding, weighted average exercise price | $ 45.27 | |||
Stock options - weighted average remaining contractual term | 8 years 2 months 26 days | 8 years 2 months 12 days | ||
Stock options - beginning balance outstanding, aggregate intrinsic value | $ 40 | |||
Stock options - granted | 427,698 | |||
Stock options - granted, weighted average excercise price | $ 79.20 | $ 51.68 | $ 43.82 | |
Stock options - exercised | (711,032) | |||
Stock options - exercised, wighted average exercise price | $ 41.55 | |||
Stock options - exercised, total intrinsic value | $ 27 | $ 24 | $ 8 | |
Stock options - forfeited or expired | (14,783) | |||
Stock options, forfeited or expired, weighted average exercise price | $ 64.22 | |||
Stock options - ending balance outstanding | 1,231,118 | 1,529,235 | ||
Stock options - ending balance outstanding, weighted average exercise price | $ 58.98 | $ 45.27 | ||
Stock options - ending balance outstanding, aggregate intrinsic value | $ 42 | $ 40 | ||
Stock options - exercisable | 201,445 | |||
Stock options - exercisable, weighted average exercise price | $ 45.80 | |||
Stock options- exercisable, weighted average remaining contractual term | 7 years 4 months 13 days | |||
Stock options - exercisable, intrinsic value | $ 10 | |||
Stock options vested or expected to vest | 1,223,827 | |||
Restricted Stock Units and Performance Stock Units Activity | ||||
Tax withholdings related to net share settlements of certain stock awards | $ 27 | $ 16 | 13 | |
Employee Stock Option [Member] | ||||
Restricted Stock Units and Performance Stock Units Activity | ||||
Unrecognized compensation costs related to nonvested awards | $ 4 | |||
Weighted average recognition period of unrecognized compensation costs | 9 months 11 days | |||
Restricted Stock [Member] | ||||
Restricted Stock Units and Performance Stock Units Activity | ||||
RSUs and PSUs - beginning balance outstanding | 1,925,934 | |||
RSUs and PSUs - beginning balance outstanding, weighted average grant date total fair value | $ 43.85 | |||
RSUs and PSUs - outstanding, weighted average remaining contractual term | 1 year 11 days | 1 year 29 days | ||
RSUs and PSUs - beginning balance outstanding, aggregate intrinsic value | $ 138 | |||
RSUs and PSUs - granted | 380,349 | |||
RSUs and PSUs - granted, weighted average grant date fair value | $ 79.18 | |||
RSUs and PSUs - vested and released | (760,878) | |||
RSUs and PSUs - vested and released, weighted average grant date fair value | $ 38 | |||
RSUs and PSUs - vested and released, aggregate intrinsic value | $ 60 | $ 38 | 37 | |
RSUs and PSUs - forfeited | (47,989) | |||
RSUs and PSUs - forfeited, weighted average grant date fair value | $ 56.30 | |||
RSUs and PSUs - ending balance outstanding | 1,497,416 | 1,925,934 | ||
RSUs and PSUs - ending balance outstanding, weighted average grant date total fair value | $ 55.40 | $ 43.85 | ||
RSUs and PSUs - ending balance outstanding, aggregate intrinsic value | $ 140 | $ 138 | ||
Unrecognized compensation costs related to nonvested awards | $ 34 | |||
Weighted average recognition period of unrecognized compensation costs | 1 year 4 days | |||
Tax withholdings related to net share settlements of certain stock awards, shares | 237,175 | |||
Tax withholdings related to net share settlements of certain stock awards | $ 22 | 14 | 13 | |
Total fair value of RSUs vested in the period | $ 29 | $ 27 | 27 | |
Performance Shares [Member] | ||||
Assumptions used to value grants of share-based payment awards [Abstract] | ||||
Risk-free interest rate | 1.00% | |||
Expected term (years) | 2 years 9 months 29 days | |||
Expected volatility | 16.29% | |||
Restricted Stock Units and Performance Stock Units Activity | ||||
RSUs and PSUs - beginning balance outstanding | 444,281 | |||
RSUs and PSUs - beginning balance outstanding, weighted average grant date total fair value | $ 44.97 | |||
RSUs and PSUs - outstanding, weighted average remaining contractual term | 10 months 17 days | 1 year 25 days | ||
RSUs and PSUs - beginning balance outstanding, aggregate intrinsic value | $ 32 | |||
RSUs and PSUs - granted | 120,682 | |||
RSUs and PSUs - granted, weighted average grant date fair value | $ 77.13 | |||
PSUs - Performance adjustment | [1] | 70,430 | ||
PSUs - Performance adjustment, weighted average grant date fair value | [1] | $ 38.07 | ||
RSUs and PSUs - vested and released | (188,675) | |||
RSUs and PSUs - vested and released, weighted average grant date fair value | $ 37.80 | |||
RSUs and PSUs - vested and released, aggregate intrinsic value | $ 15 | |||
RSUs and PSUs - forfeited | (3,344) | |||
RSUs and PSUs - forfeited, weighted average grant date fair value | $ 63.31 | |||
RSUs and PSUs - ending balance outstanding | 443,374 | 444,281 | ||
RSUs and PSUs - ending balance outstanding, weighted average grant date total fair value | $ 55.54 | $ 44.97 | ||
RSUs and PSUs - ending balance outstanding, aggregate intrinsic value | $ 41 | $ 32 | ||
Unrecognized compensation costs related to nonvested awards | $ 11 | |||
Weighted average recognition period of unrecognized compensation costs | 1 year 5 months 8 days | |||
Tax withholdings related to net share settlements of certain stock awards, shares | 62,208 | |||
Tax withholdings related to net share settlements of certain stock awards | $ 5 | $ 2 | $ 0 | |
Performance Shares [Member] | Maximum [Member] | ||||
Restricted Stock Units and Performance Stock Units Activity | ||||
Percentage of award that may vest | 200.00% | |||
[1] | For PSUs which vested during the year ended December 31, 2015, the Company awarded additional PSUs, as actual results measured at the end of the performance period exceeded target performance levels. |
Earnings Per Share (Details)
Earnings Per Share (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015USD ($)shares$ / shares | Sep. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2015USD ($)$ / sharesshares | Mar. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Sep. 30, 2014USD ($)$ / sharesshares | Jun. 30, 2014USD ($)$ / sharesshares | Mar. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2015USD ($)shares$ / shares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)$ / sharesshares | Dec. 31, 2012USD ($) | |
Basic EPS: | ||||||||||||
Net income | $ | $ 185 | $ 202 | $ 220 | $ 157 | $ 150 | $ 188 | $ 210 | $ 155 | $ 764 | $ 703 | $ 624 | |
Weighted average common shares outstanding — basic | 188,700,000 | 190,400,000 | 191,400,000 | 193,000,000 | 194,000,000 | 194,800,000 | 196,600,000 | 197,900,000 | 190,900,000 | 195,800,000 | 202,900,000 | |
Earnings per common share - basic | $ / shares | $ 0.98 | $ 1.06 | $ 1.15 | $ 0.82 | $ 0.77 | $ 0.97 | $ 1.07 | $ 0.78 | $ 4 | $ 3.59 | $ 3.08 | |
Diluted EPS: | ||||||||||||
Net income | $ | $ 185 | $ 202 | $ 220 | $ 157 | $ 150 | $ 188 | $ 210 | $ 155 | $ 764 | $ 703 | $ 624 | |
Weighted average common shares outstanding — basic | 188,700,000 | 190,400,000 | 191,400,000 | 193,000,000 | 194,000,000 | 194,800,000 | 196,600,000 | 197,900,000 | 190,900,000 | 195,800,000 | 202,900,000 | |
Effect of dilutive securities: | ||||||||||||
Weighted Average Number Diluted Options Outstanding Adjustment | 300,000 | 300,000 | 300,000 | |||||||||
Weighted Average Number Diluted Restricted Stock Units Outstanding Adjustment | 900,000 | 1,200,000 | 1,300,000 | |||||||||
Weighted Average Number Diluted Performance Stock Units Outstanding Adjustment | 300,000 | 100,000 | 0 | |||||||||
Weighted average common shares outstanding — diluted | 190,200,000 | 191,500,000 | 192,400,000 | 194,600,000 | 195,800,000 | 196,200,000 | 197,800,000 | 199,500,000 | 192,400,000 | 197,400,000 | 204,500,000 | |
Earnings per common share - diluted | $ / shares | $ 0.97 | $ 1.05 | $ 1.14 | $ 0.81 | $ 0.77 | $ 0.96 | $ 1.06 | $ 0.78 | $ 3.97 | $ 3.56 | $ 3.05 | |
Earnings Per Share (Textuals) [Abstract] | ||||||||||||
Exclusion from the diluted weighted average shares outstanding | 300,000 | 300,000 | 500,000 | |||||||||
Dividend equivalent units outstanding | 101,707 | 101,707 | ||||||||||
Aggregate shares authorized under repurchase program, initial amount | $ | $ 1,000 | $ 1,000 | $ 3,000 | |||||||||
Number of shares repurchased and retired | 6,500,000 | 6,800,000 | 8,700,000 | |||||||||
Value of shares repurchased and retired | $ | $ 521 | $ 400 | $ 400 | |||||||||
Stock Repurchase Program, Value of Shares Authorized to be Repurchased | $ | $ 651 | $ 651 |
Accumulated Other Comprehensi81
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated other comprehensive income (loss), net of taxes | |||
Accumulated other comprehensive income (loss), net of tax, beginning balance | $ (137) | $ (88) | $ (110) |
Foreign currency translation adjustments | (64) | (44) | |
Net change in pension liability | 4 | (7) | |
Cash flow hedges, net of tax | 2 | 2 | |
Current year OCI | (58) | (49) | 22 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Reclassification Adjustments, Net of Tax | 0 | (19) | 19 |
Other Comprehensive Income Reclassification Of Defined Benefit Plans Net Gain Loss and Actuarial Changes Recognized In Net Periodic Benefit Cost Net Of Tax | 4 | 12 | 4 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (2) | (2) | 3 |
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax | 4 | 4 | 5 |
Other Comprehensive Income (Loss) Prior to Reclassifications | (66) | (65) | 13 |
Other Comprehensive Income (Loss), Reclassification Adjustment On Items Included In Net Income Net Of Tax | (8) | (16) | (9) |
Accumulated other comprehensive income (loss), net of tax, ending balance | (195) | (137) | (88) |
Other Comprehensive Income (Loss), Reclassification Adjustments [Abstract] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax | 4 | 4 | 5 |
Amortization of prior service cost (credit) | 0 | 0 | 1 |
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, before Tax | (4) | (3) | (4) |
Settlement loss | (3) | (16) | (3) |
Comprehensive income reclassification of defined benefit plans for net prior service credit and actuarial gains or losses | (7) | (19) | (6) |
OtherComprehensiveIncomeAmortizationOfDefinedBenefitPlanNetPriorServiceCostRecognizedInNetPeriodicPensionCostAndActuarilaLossorGainTax | (3) | (7) | (2) |
Other Comprehensive Income Reclassification Of Defined Benefit Plans Net Gain Loss and Actuarial Changes Recognized In Net Periodic Benefit Cost Net Of Tax | 4 | 12 | 4 |
Other Comprehensive Income (Loss), Reclassification Adjustment On Items Included In Net Income Net Of Tax | (8) | (16) | (9) |
Foreign Currency Translation [Member] | |||
Accumulated other comprehensive income (loss), net of taxes | |||
Accumulated other comprehensive income (loss), net of tax, beginning balance | (61) | (17) | (8) |
Foreign currency translation adjustments | (64) | (44) | (9) |
Accumulated other comprehensive income (loss), net of tax, ending balance | (125) | (61) | (17) |
Change in Pension Liability [Member] | |||
Accumulated other comprehensive income (loss), net of taxes | |||
Accumulated other comprehensive income (loss), net of tax, beginning balance | (40) | (33) | (56) |
Net change in pension liability | 4 | (7) | 23 |
Accumulated other comprehensive income (loss), net of tax, ending balance | (36) | (40) | (33) |
Cash Flow Hedges [Member] | |||
Accumulated other comprehensive income (loss), net of taxes | |||
Accumulated other comprehensive income (loss), net of tax, beginning balance | (36) | (38) | (46) |
Cash flow hedges, net of tax | 2 | 2 | 8 |
Accumulated other comprehensive income (loss), net of tax, ending balance | (34) | (36) | (38) |
Cash Flow Hedging [Member] | |||
Other Comprehensive Income (Loss), Reclassification Adjustments [Abstract] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (6) | (7) | (8) |
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Tax | (2) | (3) | (3) |
Interest Expense [Member] | Interest Rate Contract [Member] | Cash Flow Hedging [Member] | |||
Other Comprehensive Income (Loss), Reclassification Adjustments [Abstract] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (8) | (8) | (7) |
Cost of Sales [Member] | Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | |||
Other Comprehensive Income (Loss), Reclassification Adjustments [Abstract] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 2 | $ 1 | $ (1) |
Supplemental Cash Flow Inform82
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Supplemental Cash Flow Elements [Abstract] | ||||
Dividends declared but not yet paid | $ 90 | $ 79 | $ 75 | |
Capital expenditures included in accounts payable and other current liabilities | 14 | 11 | 21 | |
Holdback liability for acquisition of business | 0 | 2 | 0 | |
Stock issued for acquisition of business | 0 | 0 | 13 | |
Capital lease additions | 55 | 31 | [1] | 1 |
Interest paid | 94 | 94 | 107 | |
Income taxes paid | $ 346 | $ 345 | $ 310 | |
[1] | During the year ended December 31, 2014, the Company converted a number of month-to-month operating leases into capital leases, which is presented as a non-cash financing activity. |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Leases [Abstract] | |||
Operating lease expense | $ 60 | $ 69 | $ 76 |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 44 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 37 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 30 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 27 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 22 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 70 | ||
Operating Leases, Future Minimum Payments Due | 230 | ||
Capital Leases, Future Minimum Payments Due, Next Twelve Months | 17 | ||
Capital Leases, Future Minimum Payments Due in Two Years | 17 | ||
Capital Leases, Future Minimum Payments Due in Three Years | 17 | ||
Capital Leases, Future Minimum Payments Due in Four Years | 16 | ||
Capital Leases, Future Minimum Payments Due in Five Years | 15 | ||
Capital Leases, Future Minimum Payments Due Thereafter | 193 | ||
Capital Leases, Future Minimum Payments Due | 275 | ||
Capital Leases, Future Minimum Payments, Interest Included in Payments | (139) | ||
Present value of minimum lease payments | $ 136 | $ 86 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 87 Months Ended |
Dec. 31, 2015USD ($) | |
Accrual for Environmental Loss Contingencies Disclosure [Abstract] | |
Site Contingency Study Paid | $ 850,000 |
Segments (Details)
Segments (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)integer | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of Operating Segments | integer | 3 | ||||||||||
Segment Results - SOP | |||||||||||
Total segment operating profit | $ 1,604 | $ 1,504 | $ 1,364 | ||||||||
Unallocated corporate costs | 299 | 323 | 309 | ||||||||
Other operating expense, net | 7 | 1 | 9 | ||||||||
Income from operations | 1,298 | 1,180 | 1,046 | ||||||||
Interest expense, net | 115 | 107 | 121 | ||||||||
Other (income) expense, net | (1) | 0 | 383 | ||||||||
Income before provision (benefit) for income taxes and equity in earnings of unconsolidated subsidiaries | 1,184 | 1,073 | 542 | ||||||||
Depreciation | 192 | 199 | 196 | ||||||||
Segment Results - Assets [Abstract] | |||||||||||
Identifiable operating assets | $ 8,838 | $ 8,251 | 8,838 | 8,251 | |||||||
Investments | 31 | 14 | 31 | 14 | |||||||
Total assets | 8,869 | 8,265 | 8,869 | 8,265 | |||||||
Segments, Geographical Areas [Abstract] | |||||||||||
Net sales | 1,546 | $ 1,630 | $ 1,655 | $ 1,451 | 1,509 | $ 1,583 | $ 1,631 | $ 1,398 | 6,282 | 6,121 | 5,997 |
Property, plant and equipment, net | 1,156 | 1,141 | 1,156 | 1,141 | |||||||
U.S. | |||||||||||
Segments, Geographical Areas [Abstract] | |||||||||||
Net sales | 5,575 | 5,361 | 5,292 | ||||||||
Property, plant and equipment, net | 1,041 | 1,039 | 1,041 | 1,039 | |||||||
International | |||||||||||
Segments, Geographical Areas [Abstract] | |||||||||||
Net sales | 707 | 760 | 705 | ||||||||
Property, plant and equipment, net | 115 | 102 | 115 | 102 | |||||||
Beverage Concentrates [Member] | |||||||||||
Segment Results - SOP | |||||||||||
Total segment operating profit | 807 | 790 | 778 | ||||||||
Amortization | 12 | 16 | 17 | ||||||||
Depreciation | 7 | 7 | 5 | ||||||||
Segment Results - Assets [Abstract] | |||||||||||
Identifiable operating assets | 4,099 | 4,096 | 4,099 | 4,096 | |||||||
Segments, Geographical Areas [Abstract] | |||||||||||
Net sales | 1,241 | 1,228 | 1,229 | ||||||||
Packaged Beverages [Member] | |||||||||||
Segment Results - SOP | |||||||||||
Total segment operating profit | 709 | 636 | 525 | ||||||||
Amortization | 7 | 7 | 7 | ||||||||
Depreciation | 161 | 165 | 164 | ||||||||
Segment Results - Assets [Abstract] | |||||||||||
Identifiable operating assets | 3,429 | 3,409 | 3,429 | 3,409 | |||||||
Segments, Geographical Areas [Abstract] | |||||||||||
Net sales | 4,544 | 4,361 | 4,306 | ||||||||
Latin America Beverages [Member] | |||||||||||
Segment Results - SOP | |||||||||||
Total segment operating profit | 88 | 78 | 61 | ||||||||
Amortization | 0 | 0 | 0 | ||||||||
Depreciation | 14 | 15 | 14 | ||||||||
Segment Results - Assets [Abstract] | |||||||||||
Identifiable operating assets | 303 | 315 | 303 | 315 | |||||||
Segments, Geographical Areas [Abstract] | |||||||||||
Net sales | 497 | 532 | 462 | ||||||||
Segment Total [Member] | |||||||||||
Segment Results - SOP | |||||||||||
Amortization | 19 | 23 | 24 | ||||||||
Depreciation | 182 | 187 | 183 | ||||||||
Segment Results - Assets [Abstract] | |||||||||||
Identifiable operating assets | 7,831 | 7,820 | 7,831 | 7,820 | |||||||
Corporate and Other [Member] | |||||||||||
Segment Results - SOP | |||||||||||
Amortization | 16 | 13 | 14 | ||||||||
Depreciation | 10 | 12 | 13 | ||||||||
Segment Results - Assets [Abstract] | |||||||||||
Identifiable operating assets | $ 1,007 | $ 431 | 1,007 | 431 | |||||||
Walmart [Member] | |||||||||||
Segments, Geographical Areas [Abstract] | |||||||||||
Net sales | $ 779 | $ 740 | $ 734 |
Guarantor and Non-Guarantor F86
Guarantor and Non-Guarantor Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Consolidating Statements of Income | ||||||||||||||
Net sales | $ 1,546 | $ 1,630 | $ 1,655 | $ 1,451 | $ 1,509 | $ 1,583 | $ 1,631 | $ 1,398 | $ 6,282 | $ 6,121 | $ 5,997 | |||
Cost of sales | 2,559 | 2,491 | 2,499 | |||||||||||
Gross profit | 936 | 957 | 981 | 849 | 895 | 925 | 966 | 844 | 3,723 | 3,630 | 3,498 | |||
Selling, general and administrative expenses | 2,313 | 2,334 | 2,272 | |||||||||||
Multi-employer pension plan withdrawal | 0 | 0 | 56 | |||||||||||
Depreciation and amortization | 105 | 115 | 115 | |||||||||||
Other operating expense, net | 7 | 1 | 9 | |||||||||||
Income from operations | 1,298 | 1,180 | 1,046 | |||||||||||
Interest expense | 117 | 109 | 123 | |||||||||||
Interest income | (2) | (2) | (2) | |||||||||||
Other (income) expense, net | (1) | 0 | 383 | |||||||||||
Income before provision (benefit) for income taxes and equity in earnings of unconsolidated subsidiaries | 1,184 | 1,073 | 542 | |||||||||||
Provision (benefit) for income taxes | 420 | 371 | (81) | |||||||||||
Income before equity in earnings of unconsolidated subsidiaries | 764 | 702 | 623 | |||||||||||
Equity in earnings of unconsolidated subsidiaries, net of tax | 0 | 1 | 1 | |||||||||||
Net income | 185 | $ 202 | $ 220 | 157 | 150 | $ 188 | $ 210 | 155 | 764 | 703 | 624 | |||
Condensed Consolidating Statements of Comprehensive Income | ||||||||||||||
Foreign currency translation adjustments | (64) | (44) | ||||||||||||
Net change in pension liability, net of tax | 4 | (7) | ||||||||||||
Net change in cash flow hedges, net of tax | 2 | 2 | ||||||||||||
Current year OCI | (58) | (49) | 22 | |||||||||||
Comprehensive income (loss) | 706 | 654 | 646 | |||||||||||
Current assets: | ||||||||||||||
Cash and Cash Equivalents, at Carrying Value | 911 | 237 | 237 | 153 | 237 | 153 | 366 | $ 911 | $ 237 | $ 153 | ||||
Accounts receivable: | ||||||||||||||
Trade, net | 570 | 556 | ||||||||||||
Other | 58 | 61 | ||||||||||||
Related party receivable | 0 | 0 | ||||||||||||
Inventories | 209 | 204 | ||||||||||||
Deferred tax assets | 0 | 67 | ||||||||||||
Prepaid expenses and other current assets | 69 | 86 | ||||||||||||
Total current assets | 1,817 | 1,211 | ||||||||||||
Property, plant and equipment, net | 1,156 | 1,141 | ||||||||||||
Investments in consolidated subsidiaries | 0 | 0 | ||||||||||||
Investments in unconsolidated subsidiaries | 31 | 14 | ||||||||||||
Goodwill | 2,988 | 2,990 | 2,988 | |||||||||||
Other intangible assets, net | 2,663 | 2,684 | ||||||||||||
Long-term receivable, related parties | 0 | 0 | ||||||||||||
Other non-current assets | 150 | 151 | ||||||||||||
Non-current deferred tax assets | 64 | 74 | ||||||||||||
Total assets | 8,869 | 8,265 | ||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | 277 | 289 | ||||||||||||
Related party payable | 0 | 0 | ||||||||||||
Deferred revenue | 64 | 64 | ||||||||||||
Short-term borrowings and current portion of long-term obligations | 507 | 3 | ||||||||||||
Income taxes payable | 27 | 10 | ||||||||||||
Other current liabilities | 708 | 672 | ||||||||||||
Total current liabilities | 1,583 | 1,038 | ||||||||||||
Long-term obligations to third parties | 2,875 | 2,580 | ||||||||||||
Long-term obligations to related parties | 0 | 0 | ||||||||||||
Non-current deferred tax liabilities | 787 | 801 | ||||||||||||
Non-current deferred revenue | 1,181 | 1,250 | ||||||||||||
Other non-current liabilities | 260 | 302 | ||||||||||||
Total liabilities | 6,686 | 5,971 | ||||||||||||
Total stockholders' equity | 2,183 | 2,294 | ||||||||||||
Total liabilities and stockholders' equity | 8,869 | 8,265 | ||||||||||||
Operating activities: | ||||||||||||||
Net cash (used in) provided by operating activities | 991 | 1,022 | 866 | |||||||||||
Investing activities: | ||||||||||||||
Acquisition of business | 0 | (19) | (10) | |||||||||||
Purchase of property, plant and equipment | (179) | (170) | (179) | |||||||||||
Purchase of intangible assets | (1) | (1) | (5) | |||||||||||
Return of capital | 0 | 0 | ||||||||||||
Investments in unconsolidated subsidiaries | (20) | 0 | 0 | |||||||||||
Purchase of cost method investments | (15) | 0 | 0 | |||||||||||
Proceeds from disposals of property, plant and equipment | 20 | 8 | 1 | |||||||||||
Issuances of related party notes receivables | 0 | 0 | 0 | |||||||||||
Repayment of related party notes receivables | 0 | |||||||||||||
Other, net | 1 | (3) | (2) | |||||||||||
Net cash used in investing activities | (194) | (185) | (195) | |||||||||||
Proceeds from Related Party Debt | 0 | 0 | ||||||||||||
Financing activities: | ||||||||||||||
Proceeds from issuance of related party debt | 0 | |||||||||||||
Proceeds from issuance of senior unsecured notes | 750 | 0 | 0 | |||||||||||
Repurchase of shares of common stock | (521) | (400) | (400) | |||||||||||
Dividends paid | (355) | (317) | (302) | |||||||||||
Tax withholdings related to net share settlements of certain stock awards | (27) | (16) | (13) | |||||||||||
Net issuance of commercial paper | 65 | |||||||||||||
Proceeds from stock options exercised | 30 | 41 | 15 | |||||||||||
Excess tax benefit on stock-based compensation | 23 | 11 | 6 | |||||||||||
Deferred financing charges paid | (6) | 0 | 0 | |||||||||||
Capital lease payments | (5) | (1) | (1) | |||||||||||
Other, net | (3) | 0 | 0 | |||||||||||
Net cash used in financing activities | (114) | (747) | (880) | |||||||||||
Repayment of related party debt | 0 | |||||||||||||
Repayment of senior unsecured notes | 0 | 0 | (250) | |||||||||||
Proceeds from (Repayments of) Commercial Paper | 0 | (65) | 65 | |||||||||||
Cash and cash equivalents - net change from: | ||||||||||||||
Operating, investing and financing activities | 683 | 90 | (209) | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | (9) | (6) | (4) | |||||||||||
Cash and cash equivalents at beginning of year | 237 | 153 | 237 | 153 | 366 | |||||||||
Cash and cash equivalents at end of year | 911 | 237 | 911 | 237 | 153 | |||||||||
Parent [Member] | ||||||||||||||
Condensed Consolidating Statements of Income | ||||||||||||||
Net sales | 0 | 0 | 0 | |||||||||||
Cost of sales | 0 | 0 | 0 | |||||||||||
Gross profit | 0 | 0 | 0 | |||||||||||
Selling, general and administrative expenses | 0 | 1 | 4 | |||||||||||
Multi-employer pension plan withdrawal | 0 | |||||||||||||
Depreciation and amortization | 0 | 0 | 0 | |||||||||||
Other operating expense, net | 0 | 0 | 0 | |||||||||||
Income from operations | 0 | (1) | (4) | |||||||||||
Interest expense | 228 | 104 | 118 | |||||||||||
Interest income | (42) | (40) | (77) | |||||||||||
Other (income) expense, net | (1) | (2) | 383 | |||||||||||
Income before provision (benefit) for income taxes and equity in earnings of unconsolidated subsidiaries | (185) | (63) | (428) | |||||||||||
Provision (benefit) for income taxes | (85) | (38) | (16) | |||||||||||
Income before equity in earnings of unconsolidated subsidiaries | (100) | (25) | (412) | |||||||||||
Equity in earnings of consolidated subsidiaries | 864 | 728 | 1,036 | |||||||||||
Equity in earnings of unconsolidated subsidiaries, net of tax | 0 | 0 | 0 | |||||||||||
Net income | 764 | 703 | 624 | |||||||||||
Condensed Consolidating Statements of Comprehensive Income | ||||||||||||||
Other comprehensive income impact from consolidated subsidiaries | (67) | 57 | 11 | |||||||||||
Foreign currency translation adjustments | 7 | 4 | 6 | |||||||||||
Net change in pension liability, net of tax | 0 | 0 | 0 | |||||||||||
Net change in cash flow hedges, net of tax | 2 | 4 | 5 | |||||||||||
Current year OCI | (58) | (49) | 22 | |||||||||||
Comprehensive income (loss) | 706 | 654 | 646 | |||||||||||
Current assets: | ||||||||||||||
Cash and Cash Equivalents, at Carrying Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Accounts receivable: | ||||||||||||||
Trade, net | 0 | 0 | ||||||||||||
Other | 3 | 3 | ||||||||||||
Related party receivable | 11 | 10 | ||||||||||||
Inventories | 0 | 0 | ||||||||||||
Deferred tax assets | 0 | 0 | ||||||||||||
Prepaid expenses and other current assets | 300 | 218 | ||||||||||||
Total current assets | 314 | 231 | ||||||||||||
Property, plant and equipment, net | 0 | 0 | ||||||||||||
Investments in consolidated subsidiaries | 7,062 | 6,194 | ||||||||||||
Investments in unconsolidated subsidiaries | 0 | 1 | ||||||||||||
Goodwill | 0 | 0 | ||||||||||||
Other intangible assets, net | 0 | 0 | ||||||||||||
Long-term receivable, related parties | 3,159 | 3,118 | ||||||||||||
Other non-current assets | 58 | 55 | ||||||||||||
Non-current deferred tax assets | 20 | 23 | ||||||||||||
Total assets | 10,613 | 9,622 | ||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | 0 | 0 | ||||||||||||
Related party payable | 18 | 0 | ||||||||||||
Deferred revenue | 0 | 0 | ||||||||||||
Short-term borrowings and current portion of long-term obligations | 500 | 0 | ||||||||||||
Income taxes payable | 0 | 0 | ||||||||||||
Other current liabilities | 126 | 112 | ||||||||||||
Total current liabilities | 644 | 112 | ||||||||||||
Long-term obligations to third parties | 2,746 | 2,497 | ||||||||||||
Long-term obligations to related parties | 4,989 | 4,647 | ||||||||||||
Non-current deferred tax liabilities | 0 | 0 | ||||||||||||
Non-current deferred revenue | 0 | 0 | ||||||||||||
Other non-current liabilities | 51 | 72 | ||||||||||||
Total liabilities | 8,430 | 7,328 | ||||||||||||
Total stockholders' equity | 2,183 | 2,294 | ||||||||||||
Total liabilities and stockholders' equity | 10,613 | 9,622 | ||||||||||||
Operating activities: | ||||||||||||||
Net cash (used in) provided by operating activities | (209) | (122) | (99) | |||||||||||
Investing activities: | ||||||||||||||
Acquisition of business | 0 | 0 | 0 | |||||||||||
Purchase of property, plant and equipment | 0 | 0 | 0 | |||||||||||
Purchase of intangible assets | 0 | 0 | 0 | |||||||||||
Return of capital | 0 | 0 | ||||||||||||
Investments in unconsolidated subsidiaries | 0 | |||||||||||||
Purchase of cost method investments | 0 | |||||||||||||
Proceeds from disposals of property, plant and equipment | 0 | 0 | 0 | |||||||||||
Issuances of related party notes receivables | 0 | 0 | 0 | |||||||||||
Repayment of related party notes receivables | 250 | |||||||||||||
Other, net | 1 | (3) | (3) | |||||||||||
Net cash used in investing activities | 1 | (3) | 247 | |||||||||||
Proceeds from Related Party Debt | 340 | 882 | ||||||||||||
Financing activities: | ||||||||||||||
Proceeds from issuance of related party debt | 802 | |||||||||||||
Proceeds from issuance of senior unsecured notes | 750 | |||||||||||||
Repurchase of shares of common stock | (521) | (400) | (400) | |||||||||||
Dividends paid | (355) | (317) | (302) | |||||||||||
Tax withholdings related to net share settlements of certain stock awards | (27) | (16) | (13) | |||||||||||
Net issuance of commercial paper | 65 | |||||||||||||
Proceeds from stock options exercised | 30 | 41 | 15 | |||||||||||
Excess tax benefit on stock-based compensation | 0 | 0 | 0 | |||||||||||
Deferred financing charges paid | (6) | |||||||||||||
Capital lease payments | 0 | 0 | 0 | |||||||||||
Other, net | (3) | |||||||||||||
Net cash used in financing activities | 208 | 125 | (148) | |||||||||||
Repayment of related party debt | (65) | |||||||||||||
Repayment of senior unsecured notes | (250) | |||||||||||||
Proceeds from (Repayments of) Commercial Paper | (65) | |||||||||||||
Cash and cash equivalents - net change from: | ||||||||||||||
Operating, investing and financing activities | 0 | 0 | 0 | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | |||||||||||
Cash and cash equivalents at beginning of year | 0 | 0 | 0 | 0 | 0 | |||||||||
Cash and cash equivalents at end of year | 0 | 0 | 0 | 0 | 0 | |||||||||
Guarantors [Member] | ||||||||||||||
Condensed Consolidating Statements of Income | ||||||||||||||
Net sales | 5,668 | 5,474 | 5,406 | |||||||||||
Cost of sales | 2,280 | 2,191 | 2,240 | |||||||||||
Gross profit | 3,388 | 3,283 | 3,166 | |||||||||||
Selling, general and administrative expenses | 2,105 | 2,106 | 2,048 | |||||||||||
Multi-employer pension plan withdrawal | 56 | |||||||||||||
Depreciation and amortization | 99 | 107 | 107 | |||||||||||
Other operating expense, net | (1) | 1 | 9 | |||||||||||
Income from operations | 1,185 | 1,069 | 946 | |||||||||||
Interest expense | 56 | 51 | 89 | |||||||||||
Interest income | (120) | 0 | 0 | |||||||||||
Other (income) expense, net | (6) | (3) | (6) | |||||||||||
Income before provision (benefit) for income taxes and equity in earnings of unconsolidated subsidiaries | 1,255 | 1,021 | 863 | |||||||||||
Provision (benefit) for income taxes | 472 | 383 | (147) | |||||||||||
Income before equity in earnings of unconsolidated subsidiaries | 783 | 638 | 1,010 | |||||||||||
Equity in earnings of consolidated subsidiaries | 81 | 90 | 26 | |||||||||||
Equity in earnings of unconsolidated subsidiaries, net of tax | 0 | 0 | 0 | |||||||||||
Net income | 864 | 728 | 1,036 | |||||||||||
Condensed Consolidating Statements of Comprehensive Income | ||||||||||||||
Other comprehensive income impact from consolidated subsidiaries | (100) | (66) | 19 | |||||||||||
Foreign currency translation adjustments | 31 | 15 | 11 | |||||||||||
Net change in pension liability, net of tax | 2 | 6 | (19) | |||||||||||
Net change in cash flow hedges, net of tax | 0 | 0 | 0 | |||||||||||
Current year OCI | (67) | (57) | 11 | |||||||||||
Comprehensive income (loss) | 797 | 671 | 1,047 | |||||||||||
Current assets: | ||||||||||||||
Cash and Cash Equivalents, at Carrying Value | 859 | 186 | 186 | 88 | 186 | 88 | 257 | 859 | 186 | 88 | ||||
Accounts receivable: | ||||||||||||||
Trade, net | 516 | 494 | ||||||||||||
Other | 40 | 42 | ||||||||||||
Related party receivable | 25 | 10 | ||||||||||||
Inventories | 173 | 168 | ||||||||||||
Deferred tax assets | 0 | 65 | ||||||||||||
Prepaid expenses and other current assets | 55 | 67 | ||||||||||||
Total current assets | 1,668 | 1,032 | ||||||||||||
Property, plant and equipment, net | 1,041 | 1,039 | ||||||||||||
Investments in consolidated subsidiaries | 583 | 612 | ||||||||||||
Investments in unconsolidated subsidiaries | 20 | 0 | ||||||||||||
Goodwill | 2,972 | 2,971 | ||||||||||||
Other intangible assets, net | 2,610 | 2,615 | ||||||||||||
Long-term receivable, related parties | 4,989 | 4,647 | ||||||||||||
Other non-current assets | 90 | 90 | ||||||||||||
Non-current deferred tax assets | 0 | 0 | ||||||||||||
Total assets | 13,973 | 13,006 | ||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | 252 | 258 | ||||||||||||
Related party payable | 11 | 10 | ||||||||||||
Deferred revenue | 63 | 62 | ||||||||||||
Short-term borrowings and current portion of long-term obligations | 7 | 3 | ||||||||||||
Income taxes payable | 306 | 212 | ||||||||||||
Other current liabilities | 539 | 512 | ||||||||||||
Total current liabilities | 1,178 | 1,057 | ||||||||||||
Long-term obligations to third parties | 129 | 83 | ||||||||||||
Long-term obligations to related parties | 3,442 | 3,413 | ||||||||||||
Non-current deferred tax liabilities | 808 | 824 | ||||||||||||
Non-current deferred revenue | 1,154 | 1,216 | ||||||||||||
Other non-current liabilities | 200 | 219 | ||||||||||||
Total liabilities | 6,911 | 6,812 | ||||||||||||
Total stockholders' equity | 7,062 | 6,194 | ||||||||||||
Total liabilities and stockholders' equity | 13,973 | 13,006 | ||||||||||||
Operating activities: | ||||||||||||||
Net cash (used in) provided by operating activities | 1,105 | 1,055 | 889 | |||||||||||
Investing activities: | ||||||||||||||
Acquisition of business | 0 | (19) | (10) | |||||||||||
Purchase of property, plant and equipment | (133) | (130) | (154) | |||||||||||
Purchase of intangible assets | (1) | (1) | (5) | |||||||||||
Return of capital | 2 | 19 | ||||||||||||
Investments in unconsolidated subsidiaries | (20) | |||||||||||||
Purchase of cost method investments | (15) | |||||||||||||
Proceeds from disposals of property, plant and equipment | 20 | 8 | 1 | |||||||||||
Issuances of related party notes receivables | (340) | (882) | (810) | |||||||||||
Repayment of related party notes receivables | 65 | |||||||||||||
Other, net | 0 | 0 | 1 | |||||||||||
Net cash used in investing activities | (489) | (1,022) | (893) | |||||||||||
Proceeds from Related Party Debt | 39 | 55 | ||||||||||||
Financing activities: | ||||||||||||||
Proceeds from issuance of related party debt | 80 | |||||||||||||
Proceeds from issuance of senior unsecured notes | 0 | |||||||||||||
Repurchase of shares of common stock | 0 | 0 | 0 | |||||||||||
Dividends paid | 0 | 0 | 0 | |||||||||||
Tax withholdings related to net share settlements of certain stock awards | 0 | 0 | 0 | |||||||||||
Net issuance of commercial paper | 0 | |||||||||||||
Proceeds from stock options exercised | 0 | 0 | 0 | |||||||||||
Excess tax benefit on stock-based compensation | 23 | 11 | 6 | |||||||||||
Deferred financing charges paid | 0 | |||||||||||||
Capital lease payments | (5) | (1) | (1) | |||||||||||
Other, net | 0 | |||||||||||||
Net cash used in financing activities | 57 | 65 | (165) | |||||||||||
Repayment of related party debt | (250) | |||||||||||||
Repayment of senior unsecured notes | 0 | |||||||||||||
Proceeds from (Repayments of) Commercial Paper | 0 | |||||||||||||
Cash and cash equivalents - net change from: | ||||||||||||||
Operating, investing and financing activities | 673 | 98 | (169) | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | |||||||||||
Cash and cash equivalents at beginning of year | 186 | 88 | 186 | 88 | 257 | |||||||||
Cash and cash equivalents at end of year | 859 | 186 | 859 | 186 | 88 | |||||||||
Non-Guarantors [Member] | ||||||||||||||
Condensed Consolidating Statements of Income | ||||||||||||||
Net sales | 633 | 681 | 623 | |||||||||||
Cost of sales | 298 | 334 | 291 | |||||||||||
Gross profit | 335 | 347 | 332 | |||||||||||
Selling, general and administrative expenses | 208 | 227 | 220 | |||||||||||
Multi-employer pension plan withdrawal | 0 | |||||||||||||
Depreciation and amortization | 6 | 8 | 8 | |||||||||||
Other operating expense, net | 8 | 0 | 0 | |||||||||||
Income from operations | 113 | 112 | 104 | |||||||||||
Interest expense | 0 | 0 | 0 | |||||||||||
Interest income | (7) | (8) | (9) | |||||||||||
Other (income) expense, net | 6 | 5 | 6 | |||||||||||
Income before provision (benefit) for income taxes and equity in earnings of unconsolidated subsidiaries | 114 | 115 | 107 | |||||||||||
Provision (benefit) for income taxes | 33 | 26 | 82 | |||||||||||
Income before equity in earnings of unconsolidated subsidiaries | 81 | 89 | 25 | |||||||||||
Equity in earnings of consolidated subsidiaries | 0 | 0 | 0 | |||||||||||
Equity in earnings of unconsolidated subsidiaries, net of tax | 0 | 1 | 1 | |||||||||||
Net income | 81 | 90 | 26 | |||||||||||
Condensed Consolidating Statements of Comprehensive Income | ||||||||||||||
Other comprehensive income impact from consolidated subsidiaries | 0 | 0 | 0 | |||||||||||
Foreign currency translation adjustments | (102) | (63) | (26) | |||||||||||
Net change in pension liability, net of tax | (2) | 1 | 4 | |||||||||||
Net change in cash flow hedges, net of tax | 0 | (2) | 3 | |||||||||||
Current year OCI | (100) | (66) | (19) | |||||||||||
Comprehensive income (loss) | (19) | 24 | 7 | |||||||||||
Current assets: | ||||||||||||||
Cash and Cash Equivalents, at Carrying Value | 52 | 51 | 51 | 65 | 51 | 65 | 109 | 52 | 51 | 65 | ||||
Accounts receivable: | ||||||||||||||
Trade, net | 54 | 62 | ||||||||||||
Other | 15 | 16 | ||||||||||||
Related party receivable | 0 | 0 | ||||||||||||
Inventories | 36 | 36 | ||||||||||||
Deferred tax assets | 0 | 3 | ||||||||||||
Prepaid expenses and other current assets | 5 | 9 | ||||||||||||
Total current assets | 162 | 177 | ||||||||||||
Property, plant and equipment, net | 115 | 102 | ||||||||||||
Investments in consolidated subsidiaries | 0 | 0 | ||||||||||||
Investments in unconsolidated subsidiaries | 11 | 13 | ||||||||||||
Goodwill | 16 | 19 | ||||||||||||
Other intangible assets, net | 53 | 69 | ||||||||||||
Long-term receivable, related parties | 283 | 295 | ||||||||||||
Other non-current assets | 2 | 6 | ||||||||||||
Non-current deferred tax assets | 65 | 74 | ||||||||||||
Total assets | 707 | 755 | ||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | 25 | 31 | ||||||||||||
Related party payable | 7 | 10 | ||||||||||||
Deferred revenue | 1 | 2 | ||||||||||||
Short-term borrowings and current portion of long-term obligations | 0 | 0 | ||||||||||||
Income taxes payable | 12 | 6 | ||||||||||||
Other current liabilities | 43 | 49 | ||||||||||||
Total current liabilities | 88 | 98 | ||||||||||||
Long-term obligations to third parties | 0 | 0 | ||||||||||||
Long-term obligations to related parties | 0 | 0 | ||||||||||||
Non-current deferred tax liabilities | 0 | 0 | ||||||||||||
Non-current deferred revenue | 27 | 34 | ||||||||||||
Other non-current liabilities | 9 | 11 | ||||||||||||
Total liabilities | 124 | 143 | ||||||||||||
Total stockholders' equity | 583 | 612 | ||||||||||||
Total liabilities and stockholders' equity | 707 | 755 | ||||||||||||
Operating activities: | ||||||||||||||
Net cash (used in) provided by operating activities | 95 | 89 | 84 | |||||||||||
Investing activities: | ||||||||||||||
Acquisition of business | 0 | 0 | 0 | |||||||||||
Purchase of property, plant and equipment | (46) | (40) | (25) | |||||||||||
Purchase of intangible assets | 0 | 0 | 0 | |||||||||||
Return of capital | (2) | (19) | ||||||||||||
Investments in unconsolidated subsidiaries | 0 | |||||||||||||
Purchase of cost method investments | 0 | |||||||||||||
Proceeds from disposals of property, plant and equipment | 0 | 0 | 0 | |||||||||||
Issuances of related party notes receivables | (39) | (55) | (80) | |||||||||||
Repayment of related party notes receivables | 0 | |||||||||||||
Other, net | 0 | 0 | 0 | |||||||||||
Net cash used in investing activities | (85) | (97) | (124) | |||||||||||
Proceeds from Related Party Debt | 0 | 0 | ||||||||||||
Financing activities: | ||||||||||||||
Proceeds from issuance of related party debt | 8 | |||||||||||||
Proceeds from issuance of senior unsecured notes | 0 | |||||||||||||
Repurchase of shares of common stock | 0 | 0 | 0 | |||||||||||
Dividends paid | 0 | 0 | (8) | |||||||||||
Tax withholdings related to net share settlements of certain stock awards | 0 | 0 | 0 | |||||||||||
Net issuance of commercial paper | 0 | |||||||||||||
Proceeds from stock options exercised | 0 | 0 | 0 | |||||||||||
Excess tax benefit on stock-based compensation | 0 | 0 | 0 | |||||||||||
Deferred financing charges paid | 0 | |||||||||||||
Capital lease payments | 0 | 0 | 0 | |||||||||||
Other, net | 0 | |||||||||||||
Net cash used in financing activities | 0 | 0 | 0 | |||||||||||
Repayment of related party debt | 0 | |||||||||||||
Repayment of senior unsecured notes | 0 | |||||||||||||
Proceeds from (Repayments of) Commercial Paper | 0 | |||||||||||||
Cash and cash equivalents - net change from: | ||||||||||||||
Operating, investing and financing activities | 10 | (8) | (40) | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | (9) | (6) | (4) | |||||||||||
Cash and cash equivalents at beginning of year | 51 | 65 | 51 | 65 | 109 | |||||||||
Cash and cash equivalents at end of year | 52 | 51 | 52 | 51 | 65 | |||||||||
Eliminations [Member] | ||||||||||||||
Condensed Consolidating Statements of Income | ||||||||||||||
Net sales | (19) | (34) | (32) | |||||||||||
Cost of sales | (19) | (34) | (32) | |||||||||||
Gross profit | 0 | 0 | 0 | |||||||||||
Selling, general and administrative expenses | 0 | 0 | 0 | |||||||||||
Multi-employer pension plan withdrawal | 0 | |||||||||||||
Depreciation and amortization | 0 | 0 | 0 | |||||||||||
Other operating expense, net | 0 | 0 | 0 | |||||||||||
Income from operations | 0 | 0 | 0 | |||||||||||
Interest expense | (167) | (46) | (84) | |||||||||||
Interest income | 167 | 46 | 84 | |||||||||||
Other (income) expense, net | 0 | 0 | 0 | |||||||||||
Income before provision (benefit) for income taxes and equity in earnings of unconsolidated subsidiaries | 0 | 0 | 0 | |||||||||||
Provision (benefit) for income taxes | 0 | 0 | 0 | |||||||||||
Income before equity in earnings of unconsolidated subsidiaries | 0 | 0 | 0 | |||||||||||
Equity in earnings of consolidated subsidiaries | (945) | (818) | (1,062) | |||||||||||
Equity in earnings of unconsolidated subsidiaries, net of tax | 0 | 0 | 0 | |||||||||||
Net income | (945) | (818) | (1,062) | |||||||||||
Condensed Consolidating Statements of Comprehensive Income | ||||||||||||||
Other comprehensive income impact from consolidated subsidiaries | 167 | (123) | (8) | |||||||||||
Foreign currency translation adjustments | 0 | 0 | 0 | |||||||||||
Net change in pension liability, net of tax | 0 | 0 | 0 | |||||||||||
Net change in cash flow hedges, net of tax | 0 | 0 | 0 | |||||||||||
Current year OCI | 167 | 123 | 8 | |||||||||||
Comprehensive income (loss) | (778) | (695) | (1,054) | |||||||||||
Current assets: | ||||||||||||||
Cash and Cash Equivalents, at Carrying Value | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | $ 0 | ||||
Accounts receivable: | ||||||||||||||
Trade, net | 0 | 0 | ||||||||||||
Other | 0 | 0 | ||||||||||||
Related party receivable | (36) | (20) | ||||||||||||
Inventories | 0 | 0 | ||||||||||||
Deferred tax assets | 0 | (1) | ||||||||||||
Prepaid expenses and other current assets | (291) | (208) | ||||||||||||
Total current assets | (327) | (229) | ||||||||||||
Property, plant and equipment, net | 0 | 0 | ||||||||||||
Investments in consolidated subsidiaries | (7,645) | (6,806) | ||||||||||||
Investments in unconsolidated subsidiaries | 0 | 0 | ||||||||||||
Goodwill | 0 | 0 | ||||||||||||
Other intangible assets, net | 0 | 0 | ||||||||||||
Long-term receivable, related parties | (8,431) | (8,060) | ||||||||||||
Other non-current assets | 0 | 0 | ||||||||||||
Non-current deferred tax assets | (21) | (23) | ||||||||||||
Total assets | (16,424) | (15,118) | ||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | 0 | 0 | ||||||||||||
Related party payable | (36) | (20) | ||||||||||||
Deferred revenue | 0 | 0 | ||||||||||||
Short-term borrowings and current portion of long-term obligations | 0 | 0 | ||||||||||||
Income taxes payable | (291) | (208) | ||||||||||||
Other current liabilities | 0 | (1) | ||||||||||||
Total current liabilities | (327) | (229) | ||||||||||||
Long-term obligations to third parties | 0 | 0 | ||||||||||||
Long-term obligations to related parties | (8,431) | (8,060) | ||||||||||||
Non-current deferred tax liabilities | (21) | (23) | ||||||||||||
Non-current deferred revenue | 0 | 0 | ||||||||||||
Other non-current liabilities | 0 | 0 | ||||||||||||
Total liabilities | (8,779) | (8,312) | ||||||||||||
Total stockholders' equity | (7,645) | (6,806) | ||||||||||||
Total liabilities and stockholders' equity | $ (16,424) | $ (15,118) | ||||||||||||
Operating activities: | ||||||||||||||
Net cash (used in) provided by operating activities | 0 | 0 | (8) | |||||||||||
Investing activities: | ||||||||||||||
Acquisition of business | 0 | 0 | 0 | |||||||||||
Purchase of property, plant and equipment | 0 | 0 | 0 | |||||||||||
Purchase of intangible assets | 0 | 0 | 0 | |||||||||||
Return of capital | 0 | 0 | ||||||||||||
Investments in unconsolidated subsidiaries | 0 | |||||||||||||
Purchase of cost method investments | 0 | |||||||||||||
Proceeds from disposals of property, plant and equipment | 0 | 0 | 0 | |||||||||||
Issuances of related party notes receivables | 379 | 937 | 890 | |||||||||||
Repayment of related party notes receivables | (315) | |||||||||||||
Other, net | 0 | 0 | 0 | |||||||||||
Net cash used in investing activities | 379 | 937 | 575 | |||||||||||
Proceeds from Related Party Debt | (379) | (937) | ||||||||||||
Financing activities: | ||||||||||||||
Proceeds from issuance of related party debt | (890) | |||||||||||||
Proceeds from issuance of senior unsecured notes | 0 | |||||||||||||
Repurchase of shares of common stock | 0 | 0 | 0 | |||||||||||
Dividends paid | 0 | 0 | 8 | |||||||||||
Tax withholdings related to net share settlements of certain stock awards | 0 | 0 | 0 | |||||||||||
Net issuance of commercial paper | 0 | |||||||||||||
Proceeds from stock options exercised | 0 | 0 | 0 | |||||||||||
Excess tax benefit on stock-based compensation | 0 | 0 | 0 | |||||||||||
Deferred financing charges paid | 0 | |||||||||||||
Capital lease payments | 0 | 0 | 0 | |||||||||||
Other, net | 0 | |||||||||||||
Net cash used in financing activities | (379) | (937) | (567) | |||||||||||
Repayment of related party debt | 315 | |||||||||||||
Repayment of senior unsecured notes | 0 | |||||||||||||
Proceeds from (Repayments of) Commercial Paper | 0 | |||||||||||||
Cash and cash equivalents - net change from: | ||||||||||||||
Operating, investing and financing activities | 0 | 0 | 0 | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | |||||||||||
Cash and cash equivalents at beginning of year | $ 0 | $ 0 | 0 | 0 | 0 | |||||||||
Cash and cash equivalents at end of year | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Selected Quarterly Financial 87
Selected Quarterly Financial Data (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net sales | $ 1,546 | $ 1,630 | $ 1,655 | $ 1,451 | $ 1,509 | $ 1,583 | $ 1,631 | $ 1,398 | $ 6,282 | $ 6,121 | $ 5,997 |
Gross profit | 936 | 957 | 981 | 849 | 895 | 925 | 966 | 844 | 3,723 | 3,630 | 3,498 |
Net income | $ 185 | $ 202 | $ 220 | $ 157 | $ 150 | $ 188 | $ 210 | $ 155 | $ 764 | $ 703 | $ 624 |
Earnings per common share - basic | $ 0.98 | $ 1.06 | $ 1.15 | $ 0.82 | $ 0.77 | $ 0.97 | $ 1.07 | $ 0.78 | $ 4 | $ 3.59 | $ 3.08 |
Earnings per common share - diluted | $ 0.97 | $ 1.05 | $ 1.14 | $ 0.81 | $ 0.77 | $ 0.96 | $ 1.06 | $ 0.78 | $ 3.97 | $ 3.56 | $ 3.05 |
Weighted average common shares outstanding — basic | 188.7 | 190.4 | 191.4 | 193 | 194 | 194.8 | 196.6 | 197.9 | 190.9 | 195.8 | 202.9 |
Weighted average common shares outstanding — diluted | 190.2 | 191.5 | 192.4 | 194.6 | 195.8 | 196.2 | 197.8 | 199.5 | 192.4 | 197.4 | 204.5 |
Dividends declared per share | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.41 | $ 0.41 | $ 0.41 | $ 0.41 | $ 1.92 | $ 1.64 | $ 1.52 |
High [Member] | |||||||||||
Common stock price | 95.26 | 83.57 | 79.98 | 81.45 | 74 | 65.32 | 60.22 | 54.46 | |||
Low [Member] | |||||||||||
Common stock price | $ 78.01 | $ 72 | $ 72.58 | $ 70.78 | $ 61.85 | $ 58.41 | $ 51.19 | $ 47.22 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | 1 Months Ended |
Jan. 31, 2016USD ($) | |
2016 Notes [Member] | Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Extinguishment of Debt, Amount | $ 500 |