Pepsi 2014 Annual Report Download - page 71

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51
Pension Lump Sum Settlement Charges
In 2014, we recorded a pension lump sum settlement charge in corporate unallocated expenses of $141 million
($88 million after-tax or $0.06 per share) related to payments for pension liabilities to certain former
employees who had vested benefits.
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) related to payments for pension liabilities to certain former
employees who had vested benefits.
See Note 7 to our consolidated financial statements.
Venezuela Remeasurement Charges
In 2014, we recorded a $105 million net charge related to our remeasurement of the bolivar for certain net
monetary assets of our Venezuela businesses. $126 million of this charge was recorded in corporate
unallocated expenses, with the balance (equity income of $21 million) recorded in our PAB segment. In total,
this net charge had an after-tax impact of $105 million or $0.07 per share.
In 2013, we recorded a $111 million net charge related to the devaluation of the bolivar for our Venezuela
businesses. $124 million of this charge was recorded in corporate unallocated expenses, with the balance
(equity income of $13 million) recorded in our PAB segment. In total, this net charge had an after-tax impact
of $111 million or $0.07 per share.
For additional information on Venezuela, see “Our Business Risks.”
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.
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
U.S. 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 indicative of our ongoing performance