Get paid to review this product! A favorable tax settlement may be recognized as a reduction in our effective tax rate in the period of resolution. Such translation differences are recognized as income or expense in the period in which the Company disposes of the operations. 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. 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. Our cash balances are used to fund working capital requirements, scheduled debt and interest payments, income tax obligations, repurchases of our common stock, dividend payments and capital expenditures.
On February 26, 2010, we completed the licensing of certain brands to PepsiCo following PepsiCo's acquisition of Pepsi Bottling Group and PepsiAmericas, Inc. The intent of these foreign exchange contracts is to provide predictability in the Company 's overall cost structure. More than alive, Allserve would thrive and expand to include two more boats in its fleet that summer. Actual amounts may differ from these estimates. Changes in estimates are recorded in the period of change.
Amounts exclude any gain or loss upon settlement of related interest rate swaps. 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. Differences between estimated expenses and actual costs are normally insignificant and are recognized to earnings in the period differences are determined. The disruption could occur for many reasons, including fire, natural disasters, weather, water scarcity, manufacturing problems, disease, strikes, transportation or supply interruption, government regulation, cybersecurity attacks or terrorism. Our Packaged Beverages segment is principally a brand ownership, manufacturing and distribution business.
Our research and development team engages in activities relating to product development, microbiology, analytical chemistry, process engineering, sensory science, nutrition, knowledge management and regulatory compliance. 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. We depend on key information systems to accurately and efficiently transact our business, provide information to management and prepare financial reports. Although the gross margin for the year ended December 31, 2015 of 59. These systems and services are vulnerable to interruptions or other failures resulting from, among other things, natural disasters, terrorist attacks, software, equipment or telecommunications failures, processing errors, computer viruses, other security issues or supplier defaults. The market and industry data in this Annual Report on Form 10-K is from Nielsen, an independent industry source, and is based on retail dollar sales and sales volumes in 2015.
Exchange rate gains or losses related to foreign currency transactions are recognized as transaction gains or losses in our income statement as incurred. They had no formal business training and conducted no market research. The benefit of higher pricing was offset by increased costs due to the Mexican sugar tax. We have some of the most recognized beverage brands in North America, with significant consumer awareness levels and long histories that evoke strong emotional connections with consumers. Letters of credit and swingline advances will reduce, on a dollar for dollar basis, the amount available under the Revolver. We accrue tax costs for repatriation, as applicable, as cash is generated in those foreign jurisdictions.
As a result of our stable cash flows and the reduction of our capital expenditures, we have been able to increase our dividends each year since 2010 in order to return more cash to our stockholders. Our actual financial performance could differ materially from those projected in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, as well as a variety of other risks and uncertainties and other factors, and our financial performance may be better or worse than anticipated. Volume for our Core 4 brands increased 2% compared to the prior year period, led by a 11% increase in Canada Dry, partially offset by a 2% decline in Sunkist soda. Snapple grew 6% over last year primarily driven by product innovation and distribution gains. Fair value is based on what the reporting units and intangible assets would be worth to a third party market participant. Other drivers of the change in cost of sales included higher costs associated with increased sales volumes and product and package mix, partially offset by lower commodity costs, led by packaging and sweeteners, and ongoing productivity improvements. However, we have exposure with respect to foreign exchange rate fluctuations.
We have been able to create multi-product manufacturing facilities which provide a region with a wide variety of our products at reduced transportation and co-packing costs. We did not include estimated payments related to our total accrued benefit liability in the table above. In addition, some of the products we manufacture are distributed by third parties. Beverage concentrates are highly concentrated proprietary flavors used to make syrup or finished beverages. A version of this article appears in print on March 25, 2002, on Page C00002 of the National edition with the headline: Cadbury Is Said to Be Close to Nantucket Nectars Deal. The Company retains selected levels of property, casualty, workers' compensation, health and other business risks.
We also may be faced with water availability risks. And you can't get distributed by Coke and Pepsi if you are not part of their family. For example, we can focus on maximizing profitability for our company as a whole rather than focusing on profitability generated from either the sale of beverage concentrates or the bottling and distribution of our products. On February 25, 2013, the Company acquired certain assets of Dr. Devil is in the details for sure but a remarkable idea and approach to reimagine the way business is done. These amounts exclude renewal options not yet executed but were included in the lease term to determine the capital lease obligation as the lease imposes a penalty on us in such amount that the renewal appeared reasonably assured at lease inception.