Pepsi 2014 Annual Report Download - page 97

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77
Net revenue and long-lived assets by country are as follows:
Net Revenue Long-Lived Assets(a)
2014 2013 2012 2014 2013
U.S. $ 34,219 $ 33,626 $ 33,348 $ 27,964 $ 28,157
Russia (b) 4,414 4,908 4,861 4,520 7,922
Mexico 4,113 4,347 3,955 1,126 1,233
Canada 3,022 3,195 3,290 2,815 3,067
United Kingdom 2,174 2,115 2,102 1,155 1,219
Brazil 1,790 1,835 1,866 928 1,005
All other countries 16,951 16,389 16,070 10,478 11,247
$ 66,683 $ 66,415 $ 65,492 $ 48,986 $ 53,850
(a) Long-lived assets represent property, plant and equipment, nonamortizable intangible assets, amortizable intangible assets and investments
in noncontrolled affiliates. These assets are reported in the country where they are primarily used.
(b) Change in long-lived assets in 2014 primarily reflects the depreciation of the Russian ruble.
Note 2 — Our Significant Accounting Policies
Revenue Recognition
We recognize revenue upon shipment or delivery to our customers based on written sales terms that do not
allow for a right of return. However, our policy for DSD and certain chilled products is to remove and replace
damaged and out-of-date products from store shelves to ensure that consumers receive the product quality
and freshness they expect. Similarly, our policy for certain warehouse-distributed products is to replace
damaged and out-of-date products. Based on our experience with this practice, we have reserved for
anticipated damaged and out-of-date products. For additional unaudited information on our revenue
recognition and related policies, including our policy on bad debts, see “Our Critical Accounting Policies”
in Management’s Discussion and Analysis of Financial Condition and Results of Operations. We are exposed
to concentration of credit risk from our customers, including Wal-Mart. In 2014, sales to Wal-Mart (including
Sam’s) represented approximately 12% of our total net revenue, including concentrate sales to our independent
bottlers, which are used in finished goods sold by them to Wal-Mart. We have not experienced credit issues
with these customers.
Total Marketplace Spending
We offer sales incentives and discounts through various programs to customers and consumers. Total
marketplace spending includes sales incentives, discounts, advertising and other marketing activities. Sales
incentives and discounts are primarily accounted for as a reduction of revenue and totaled $35.8 billion in
2014 and $34.7 billion in both 2013 and 2012. Sales incentives and discounts include payments to customers
2014NetRevenue
United
Kingdom
3%
Russia
7%
Other
25%
Canada
5%
Mexico
6%
UnitedStates
51%
Brazil
3%
2014LongLivedAssets
United
Kingdom
2%
Russia
9%
Other
22%
Canada
6%
Mexico
2%
UnitedStates
57%
Brazil
2%