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Table of Contents
59
2014
Net interest expense increased $10 million, primarily reflecting lower gains on the market value of investments
used to economically hedge a portion of our deferred compensation costs, partially offset by higher interest
income due to higher average cash balances.
The reported tax rate increased 1.4 percentage points, primarily due to lapping the prior year impact of the
favorable resolution with the IRS of audits for taxable years 2003 through 2009, partially offset by favorable
resolution of certain tax matters in 2014.
Net income attributable to PepsiCo decreased 3% and net income attributable to PepsiCo per common share
decreased 1%. Items affecting comparability (see “Items Affecting Comparability”) negatively impacted
both net income attributable to PepsiCo and net income attributable to PepsiCo per common share by 7
percentage points.
Results of Operations — Division Review
The results and discussions below are based on how our Chief Executive Officer monitors the performance
of our divisions. Accordingly, 2015 volume growth measures exclude the fourth quarter 2014 results of our
Venezuelan businesses, which were deconsolidated effective as of the end of the third quarter of 2015. See
“Items Affecting Comparability” for a discussion of items to consider when evaluating our results and related
information regarding non-GAAP measures.
FLNA QFNA NAB
Latin
America ESSA AMENA Total
Net Revenue, 2015 $ 14,782 $ 2,543 $ 20,618 $ 8,228 $ 10,510 $ 6,375 $ 63,056
Net Revenue, 2014 $ 14,502 $ 2,568 $ 20,171 $ 9,425 $ 13,399 $ 6,618 $ 66,683
% Impact of:
Volume(a) 1% 1 % 0.5% 1 % (2)% 4 % 0.5 %
Effective net pricing(b) 2 — 3 19 4 0.5 5
Foreign exchange translation (1) (2) (1) (27) (24) (5) (10)
Acquisitions and divestitures —— —— — (3)—
Venezuela deconsolidation(c) — — — (6) — — (1)
Reported growth(d) 2% (1)% 2% (13)% (22)% (4)% (5)%
FLNA QFNA NAB
Latin
America ESSA AMENA Total
Net Revenue, 2014 $ 14,502 $ 2,568 $ 20,171 $ 9,425 $ 13,399 $ 6,618 $ 66,683
Net Revenue, 2013 $ 14,126 $ 2,612 $ 20,083 $ 9,335 $ 13,828 $ 6,431 $ 66,415
% Impact of:
Volume(a) 2% — % — % (2)% 1 % 6% 1%
Effective net pricing(b) 1 (1) 1 11 3.5 1 3
Foreign exchange translation (1) (1) (0.5) (9) (8) (3)(3)
Acquisitions and divestitures —————
(1.5)—
Reported growth(d) 3% (2)% — % 1 % (3)% 3% —%
(a) Excludes the impact of acquisitions and divestitures. In certain instances, volume growth varies from the amounts disclosed in the following
divisional discussions due to nonconsolidated joint venture volume, and, for our beverage businesses, temporary timing differences between
BCS and CSE, as well as the mix of beverage volume sold by our Company-owned and franchised-owned bottlers. Our net revenue excludes
nonconsolidated joint venture volume, and, for our beverage businesses, is based on CSE.
(b) Includes the year-over-year impact of discrete pricing actions, sales incentive activities and mix resulting from selling varying products in
different package sizes and in different countries.