Pepsi 2013 Annual Report Download - page 68

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50
Tax Benefits
In 2013, we recognized a non-cash tax benefit of $209 million ($0.13 per share) associated with our agreement
with the IRS resolving all open matters related to the audits for taxable years 2003 through 2009, which
reduced our reserve for uncertain tax positions for the tax years 2003 through 2012. See Note 5 to our
consolidated financial statements.
In 2012, we recognized a non-cash tax benefit of $217 million ($0.14 per share) associated with a favorable
tax court decision related to the classification of financial instruments. See Note 5 to our consolidated
financial statements.
Restructuring and Other Charges Related to the Transaction with Tingyi
In 2012, we recorded restructuring and other charges of $150 million ($176 million after-tax or $0.11 per
share) in the AMEA segment related to the transaction with Tingyi. See Note 15 to our consolidated financial
statements.
Pension Lump Sum Settlement Charge
In 2012, we recorded a pension lump sum settlement charge in corporate unallocated expenses of $195 million
($131 million after-tax or $0.08 per share). See Note 7 to our consolidated financial statements.
53rd Week
In 2011, we had an additional week of results (53rd week). Our fiscal year ends on the last Saturday of each
December, resulting in an additional week of results every five or six years. The 53rd week increased 2011
net revenue by $623 million and operating profit by $109 million ($64 million after-tax or $0.04 per share).
Inventory Fair Value Adjustments
In 2011, we recorded $46 million ($28 million after-tax or $0.02 per share) of incremental costs in cost of
sales related to fair value adjustments to the acquired inventory included in WBD’s balance sheet at the
acquisition date and hedging contracts included in PBG’s and PAS’s balance sheets at the acquisition date.
Non-GAAP Measures
Certain measures contained in this Form 10-K are financial measures that are adjusted for items affecting
comparability (see “Items Affecting Comparability” for a detailed list and description of each of these items),
as well as, in certain instances, adjusted for foreign exchange. These measures are not in accordance with
Generally Accepted Accounting Principles (GAAP). Items adjusted for currency assume foreign currency
exchange rates used for translation based on the rates in effect for the comparable prior-year period. In order
to compute our constant currency results, we multiply or divide, as appropriate, our current year U.S. dollar
results by the current year average foreign exchange rates and then multiply or divide, as appropriate, those
amounts by the prior year average foreign exchange rates. We believe investors should consider these non-
GAAP measures in evaluating our results as they are more indicative of our ongoing performance and with
how management evaluates our operational results and trends. These measures are not, and should not be
viewed as, a substitute for U.S. GAAP reporting measures. See also “Organic Revenue Growth” and “Free
Cash Flow.”