Pepsi 2014 Annual Report Download - page 68

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48
Funding
We make contributions to pension trusts that provide plan benefits for certain pension plans. These
contributions are made in accordance with applicable tax regulations that provide for current tax deductions
for our contributions and taxation to the employee only upon receipt of plan benefits. Generally, we do not
fund our pension plans when our contributions would not be currently tax deductible. As our retiree medical
plans are not subject to regulatory funding requirements, we generally fund these plans on a pay-as-you-go
basis, although we periodically review available options to make additional contributions toward these
benefits.
Our pension and retiree medical contributions are subject to change as a result of many factors, such as
changes in interest rates, deviations between actual and expected asset returns and changes in tax or other
benefit laws. See Note 7 to our consolidated financial statements for our past and expected contributions and
estimated future benefit payments.
OUR FINANCIAL RESULTS
Items Affecting Comparability
The year-over-year comparisons of our financial results are affected by the following items:
2014 2013 2012
Operating profit
Mark-to-market net (losses)/gains $ (68) $ (72) $ 65
Merger and integration charges $ — $ (10) $ (11)
Restructuring and impairment charges $ (418) $ (163) $ (279)
Pension lump sum settlement charges $ (141) $ — $ (195)
Venezuela remeasurement charges $ (105) $ (111) $ —
Restructuring and other charges related to the transaction with Tingyi $ — $ — $ (150)
Interest expense
Merger and integration charges $ — $ — $ (5)
Net income attributable to PepsiCo
Mark-to-market net (losses)/gains $ (44) $ (44) $ 41
Merger and integration charges $ — $ (8) $ (12)
Restructuring and impairment charges $ (316) $ (129) $ (215)
Pension lump sum settlement charges $ (88) $ — $ (131)
Venezuela remeasurement charges $ (105) $ (111) $ —
Tax benefits $ — $ 209 $ 217
Restructuring and other charges related to the transaction with Tingyi $ — $ — $ (176)
Net income attributable to PepsiCo per common share – diluted
Mark-to-market net (losses)/gains $ (0.03) $ (0.03) $ 0.03
Merger and integration charges $ — $ (0.01) $ (0.01)
Restructuring and impairment charges $ (0.21) $ (0.08) $ (0.14)
Pension lump sum settlement charges $ (0.06) $ — $ (0.08)
Venezuela remeasurement charges $ (0.07) $ (0.07) $ —
Tax benefits $ — $ 0.13 $ 0.14
Restructuring and other charges related to the transaction with Tingyi $ — $ — $ (0.11)
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