Pepsi 2014 Annual Report Download - page 114
Download and view the complete annual report
Please find page 114 of the 2014 Pepsi annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104 -
105 -
106 -
107 -
108 -
109 -
110 -
111 -
112 -
113 -
114 -
115 -
116 -
117 -
118 -
119 -
120 -
121 -
122 -
123 -
124 -
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
 |
 |
94
Note 7 — Pension, Retiree Medical and Savings Plans
In the fourth quarter of 2014 and 2012, the Company offered certain former employees who had vested
benefits in our U.S. defined benefit pension plans the option of receiving a one-time lump sum payment
equal to the present value of the participant’s pension benefit (payable in cash or rolled over into a qualified
retirement plan or IRA). In December 2014 and 2012, we made a discretionary contribution of $388 million
and $405 million, respectively, to fund substantially all of these payments. The Company recorded a pre-tax
non-cash settlement charge of $141 million ($88 million after-tax or $0.06 per share) in 2014 and $195
million ($131 million after-tax or $0.08 per share) in 2012 as a result of these transactions. See additional
unaudited information in “Items Affecting Comparability” in Management’s Discussion and Analysis of
Financial Condition and Results of Operations.
The provisions of both the PPACA and the Health Care and Education Reconciliation Act are reflected in
our retiree medical expenses and liabilities and were not material to our financial statements.
During 2014, we revised our mortality assumptions to incorporate the new set of mortality tables issued by
the Society of Actuaries, adjusted to reflect our experience and future expectations. This resulted in an increase
in the projected benefit obligation of our U.S. pension and retiree medical programs. We also reviewed and
revised other demographic assumptions to reflect recent experience. The net effect of these changes and
certain plan design changes resulted in an increase of approximately $150 million in the projected benefit
obligation at December 27, 2014.
Gains and losses resulting from actual experience differing from our assumptions, including the difference
between the actual return on plan assets and the expected return on plan assets, and from changes in our
assumptions are determined at each measurement date. If this net accumulated gain or loss exceeds 10% of
the greater of the market-related value of plan assets or plan liabilities, a portion of the net gain or loss is
included in expense for the following year based upon the average remaining service period of active plan
participants, which is approximately 11 years for pension expense and approximately 8 years for retiree
medical expense. The cost or benefit of plan changes that increase or decrease benefits for prior employee
service (prior service cost/(credit)) is included in earnings on a straight-line basis over the average remaining
service period of active plan participants.
Table of Contents