Pepsi 2015 Annual Report Download - page 98
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Table of Contents
81
the economic effects of the derivative without experiencing any resulting mark-to-market volatility, which
remains in corporate unallocated expenses. These derivatives hedge underlying commodity price risk and
were not entered into for trading or speculative purposes.
Net revenue and operating profit/(loss) of each division are as follows:
Net Revenue Operating Profit/(Loss) (a)
2015 2014 2013 2015 2014 2013
FLNA $ 14,782 $ 14,502 $ 14,126 $ 4,304 $ 4,054 $ 3,877
QFNA (b) 2,543 2,568 2,612 560 621 617
NAB (c) 20,618 20,171 20,083 2,785 2,421 2,580
Latin America (d) 8,228 9,425 9,335 (206)1,636 1,617
ESSA 10,510 13,399 13,828 1,081 1,389 1,327
AMENA (e) 6,375 6,618 6,431 941 985 1,140
Total division 63,056 66,683 66,415 9,465 11,106 11,158
Corporate Unallocated
Mark-to-market net gains/(losses) 11 (68)(72)
Restructuring and impairment charges (13)(41)(11)
Pension lump sum settlement charge —(141)—
Venezuela remeasurement charges —(126)(124)
Other (1,110)(1,149)(1,246)
$ 63,056 $ 66,683 $ 66,415 $ 8,353 $ 9,581 $ 9,705
(a) For information on the impact of restructuring and impairment charges on our divisions, see Note 3 to our consolidated financial statements.
(b) Operating profit for QFNA for the year ended December 26, 2015 includes pre-tax impairment charges of $76 million associated with our
MQD joint venture investment, including a fourth quarter charge related to ceasing its operations.
(c) Operating profit for NAB for the year ended December 26, 2015 includes pre-tax gains of $67 million associated with the settlements of
pension-related liabilities from previous acquisitions.
(d) Operating loss for Latin America for the year ended December 26, 2015 includes a pre- and after-tax charge of $1.4 billion related to our
change in accounting for our investments in our wholly-owned Venezuelan subsidiaries and beverage joint venture. See subsequent
“Venezuela” discussion.
(e) Operating profit for AMENA for the year ended December 26, 2015 includes a pre-tax gain of $39 million associated with refranchising a
portion of our beverage businesses in India, a pre- and after-tax charge of $73 million related to a write-off of the value of a call option to
increase our holding in TAB to 20% and a pre- and after-tax impairment charge of $29 million associated with a joint venture in the Middle
East.
Corporate
Corporate unallocated includes costs of our corporate headquarters, centrally managed initiatives such as
research and development projects, unallocated insurance and benefit programs, foreign exchange transaction
gains and losses, commodity derivative gains and losses, our ongoing business transformation initiatives and
certain other items.