Pepsi 2014 Annual Report Download - page 139

Download and view the complete annual report

Please find page 139 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.

Page out of 166

  • 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

119
• In 2012, we recorded a pension lump sum settlement charge of $195 million ($131 million after-tax or $0.08 per share) related
to payments for pension liabilities to certain former employees who had vested benefits.
• 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.
• In 2011, we incurred merger and integration charges of $329 million ($271 million after-tax or $0.17 per share) related to our
acquisitions of PBG, PAS and WBD.
• The 2011 fiscal year consisted of fifty-three weeks compared to fifty-two weeks in our normal fiscal year. The 53rd week
increased 2011 net revenue by $623 million and net income attributable to PepsiCo by $64 million or $0.04 per share.
• In 2011, we recorded $46 million ($28 million after-tax or $0.02 per share) of incremental costs 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.
• In 2010, we incurred merger and integration charges of $799 million related to our acquisitions of PBG and PAS, as well as
advisory fees in connection with our acquisition of WBD. In addition, we recorded $9 million of merger-related charges,
representing our share of the respective merger costs of PBG and PAS. In total, these costs had an after-tax impact of $648
million or $0.40 per share.
• In 2010, we recorded $398 million ($333 million after-tax or $0.21 per share) of incremental costs related to fair value
adjustments to the acquired inventory and other related hedging contracts included in PBG’s and PAS’s balance sheets at the
acquisition date.
• In 2010, in connection with our acquisitions of PBG and PAS, we recorded a gain on our previously held equity interests of
$958 million ($0.60 per share), comprising $735 million which was non-taxable and recorded in bottling equity income and
$223 million related to the reversal of deferred tax liabilities associated with these previously held equity interests.
• In 2010, we recorded a $120 million net charge ($120 million after-tax or $0.07 per share) related to our change to highly
inflationary accounting for our Venezuelan businesses and the related devaluation of the bolivar.
• In 2010, we recorded a $145 million charge ($92 million after-tax or $0.06 per share) related to a change in scope of one
release in our ongoing migration to SAP software.
• In 2010, we made a $100 million ($64 million after-tax or $0.04 per share) contribution to the PepsiCo Foundation Inc., in
order to fund charitable and social programs over the next several years.
• In 2010, we paid $672 million in a cash tender offer to repurchase $500 million (aggregate principal amount) of our 7.90%
senior unsecured notes maturing in 2018. As a result of this debt repurchase, we recorded a $178 million charge to interest
expense ($114 million after-tax or $0.07 per share), primarily representing the premium paid in the tender offer.