pepsico financial statements 2016

View Company. 333-64292) filed with the Securities and Exchange Commission on December 29, 2005. Form of 1.350% Senior Notes due 2019, which is incorporated herein by reference to Exhibit 4.3 to PepsiCo, Inc.'s Current Report on Form 8-K filed with the Securities and Exchange Commission on October 6, 2016. See Note 2 to our consolidated financial statements for additional information on our total marketplace spending. In addition, taxes and limitations may impact us and our competitors differently. In 2016, we made discretionary contributions of $452 million primarily to fund the transfer of the obligation. QFNA's food plant in Cedar Rapids, Iowa, which is owned. For the years ended December 31, 2016 , December 26, 2015 and December 27, 2014 , total net revenue generated by our operations in Russia represented 4%, 4% and 7% of our consolidated net revenue, respectively. The outstanding PSUs for which the performance period has not ended as of December 31, 2016 , at the threshold, target and maximum award levels were zero , 0.7 million and 1.1 million , respectively. 333-165107). Additionally, India volume was flat and Australia experienced low-single-digit growth. The predicted effects of climate change may also exacerbate challenges regarding the availability and quality of water. The number of shares may be increased to the maximum or reduced to the minimum threshold based on the results of these performance metrics in accordance with the terms established at the time of the award. Investments in debt and marketable equity securities, other than investments accounted for under the equity method, are classified as available-for-sale. Unfavorable foreign exchange negatively impacted operating profit performance by 3 percentage points. FLNA's branded products are sold to independent distributors and retailers. In 2016, the FASB issued guidance that requires lessees to recognize most leases on their balance sheets, but record expenses on their income statements in a manner similar to current accounting. We are exposed to concentration of credit risk from our major customers, including Wal-Mart. Significant additional labeling or warning requirements or limitations on the marketing or sale of our products may reduce demand for such products and could adversely affect our business, financial condition or results of operations. In connection with our merger with The Quaker Oats Company (Quaker) in 2001, shares of our convertible preferred stock were authorized and issued to an employee stock ownership plan (ESOP) fund established by Quaker. In addition, certain jurisdictions have either imposed, or are considering imposing, product labeling or warning requirements or other limitations on the marketing or sale of certain of our products as a result of ingredients or substances contained in such products or the audience to whom products are marketed. If we are unable to successfully implement our productivity initiatives and global operating model as planned, fail to implement these initiatives as timely as we anticipate, do not achieve expected savings as a result of these initiatives or incur higher than expected or unanticipated costs in implementing these initiatives, fail to identify and implement additional productivity opportunities in the future, or fail to successfully manage business disruptions or unexpected employee consequences on our workforce, morale or productivity, we may not realize all or any of the anticipated benefits, which could adversely affect our business, financial condition or results of operations. We have increased our investment in research and development by 45 percent since 2011, investing approximately $3.5 billion on research and development cumulatively over the past five years. We are also subject to various state and local statutes and regulations, including state consumer protection laws such as Proposition 65 in California, which requires that a specific warning appear on any product that contains a substance listed by the State of California as having been found to cause cancer or birth defects, unless the amount of such substance in the product is below a safe harbor level. Additionally, certain operating cost increases and higher advertising and marketing expenses reduced operating profit growth. Form of Floating Rate Notes due 2017, which is incorporated herein by reference to Exhibit 4.1 to PepsiCo, Inc.'s Current Report on Form 8-K filed with the Securities and Exchange Commission on July 17, 2015. Defending ourselves from claims, including non-meritorious claims, may also require us to incur significant expense and devote significant resources, and may generate adverse publicity that may damage our reputation or brand image, which could have an adverse impact on our business, financial condition or results of operations. Deferred advertising costs of $32 million and $40 million as of December 31, 2016 and December 26, 2015 , respectively, are classified as prepaid expenses and other current assets on our balance sheet. In addition, certain of our employees serve on the boards of Pepsi Bottling Ventures LLC and other affiliated companies of PepsiCo and do not receive incremental compensation for such services. We establish valuation allowances for our deferred tax assets if, based on the available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. All per share amounts reflect common stock per share amounts, assume dilution unless otherwise noted, and are based on unrounded amounts. Mr. Carey began his career with Frito-Lay in 1981 where he spent 20 years in a variety of roles. *, Form of Performance-Based Long-Term Incentive Award Agreement, which is incorporated herein by reference to Exhibit 10.2 to PepsiCo, Inc.'s Current Report on Form 8-K filed with the Securities and Exchange Commission on February 7, 2008. and cash flows relating to customer contracts. See Note 7 to our consolidated financial statemen ts. Accordingly, volume growth measures for 2016 and 2015 reflect adjustments to the 2015 and 2014 results, respectively, for divestitures and other structural changes, including the deconsolidation of our Venezuelan businesses effective as of the end of the third quarter of 2015. We consider the tax adjustments from the resolution of prior year tax matters to be among such items. *, Amendments to the PepsiCo, Inc. 2003 Long-Term Incentive Plans, the PepsiCo, Inc. 1994 Long-Term Incentive Plan, the PepsiCo, Inc. 1995 Stock Option Incentive Plan, the PepsiCo SharePower Stock Option Plan, the PepsiCo, Inc. 1987 Incentive Plan effective as of December 31, 2005, which are incorporated herein by reference to Exhibit 10.31 to PepsiCo, Inc.'s Annual Report on Form 10-K for the fiscal year ended December 31, 2005. Tabular dollars are presented in millions, except per share amounts. We will continue to monitor the conditions in Venezuela and their impact on our accounting and disclosures. Categorized as a Level 1 asset. *, PepsiCo Director Deferral Program (Plan Document for the 409A Program), amended and restated effective as of January 1, 2005, with revisions adopted through February 2, 2017. Our customers include wholesale and other distributors, foodservice customers, grocery stores, drug stores, convenience stores, discount/dollar stores, mass merchandisers, membership stores, e-commerce retailers and authorized independent bottlers, among others. Business disruptions could have an adverse impact on our business, financial condition or results of operations. The documents incorporated by reference are located in the SEC's Public Reference Room in Washington, D.C. in the SEC's file no. As of December 31, 2016 , the estimated fair values of our indefinite-lived reacquired and acquired franchise rights recorded at NAB exceeded their carrying values. Additionally, within the cash flow statement, the guidance requires the excess tax benefits from share-based payment arrangements to be presented within operating activities and withholding tax payments upon vesting of restricted stock units (RSUs), performance stock units (PSUs) and PepsiCo equity performance units (PEPunits) to be presented within financing activities. Tingyi, regarding the operating results of its beverage business. We also continue to monitor the economic and political developments related to the referendum in the United Kingdom to leave the European Union, and the potential impact, if any, for the ESSA segment and our other businesses. The guidance is effective and we will adopt prospectively beginning in the first quarter of 2017. The majority of the funds are redeemable quarterly subject to availability of cash and have notice periods ranging from 45 to 90 days. *, Form of Annual Long-Term Incentive Award Agreement, which is incorporated herein by reference to Exhibit 10.1 to PepsiCo, Inc.'s Current Report on Form 8-K filed with the Securities and Exchange Commission on February 7, 2008. 333-154314) filed with the Securities and Exchange Commission on October 15, 2008. their contribution to the operating results of NAB's CSD business do not achieve our expected future cash flows or if macroeconomic conditions result in a future increase in the weighted-average cost of capital used to estimate fair value. At PepsiCo, our actions â the actions of all our associates â are governed by our Global Code of Conduct. Fluctuations in exchange rates, including as a result of currency controls or other currency exchange restrictions have had, and may continue to have, an adverse impact on our business, financial condition and results of operations. Other than our accounting for pension and retiree medical plans, our critical accounting policies do not involve a choice between alternative methods of accounting. Total marketplace spending includes sales incentives, discounts, advertising and other marketing activities. In 2016 , 2015 and 2014 , we incurred restructuring charges of $160 million ($ 131 million after-tax or $0.09 per share), $169 million ( $134 million after-tax or $0.09 per share) and $357 million ( $262 million after-tax or $0.17 per share), respectively, in conjunction with our 2014 Productivity Plan. The amounts we report as pension and retiree medical cost consist of the following components: Service cost is the value of benefits earned by employees for working during the year. advertising and marketing expenses, as well as the recording of favorable settlements of promotional spending accruals in 2014, which reduced operating profit growth by 2 percentage points. Provision for income taxes is the expected tax benefit/charge on the underlying item based on the tax laws and income tax rates applicable to the underlying item in its corresponding tax jurisdiction. Changes to the retail landscape, including increased consolidation of retail ownership, and the current economic environment continue to increase the importance of major customers. Board of Directors Resolutions Authorizing PepsiCo, Inc.'s Officers to Establish the Terms of the 2.500% Senior Note due 2016, the 3.000% Senior Note due 2021, the 2.750% Senior Note due 2022, the 4.000% Senior Note due 2042, the 1.250% Senior Note due 2017, the 3.600% Senior Note due 2042 and the 2.500% Senior Note due 2022, which are incorporated herein by reference to Exhibit 4.3 to PepsiCo, Inc.'s Current Report on Form 8-K filed with the Securities and Exchange Commission on May 6, 2011. 10-Q (filing date: 2017-10-04), Operating profit increased 16%, impacted by prior year impairment charges related to our dairy joint venture and ceasing its operations, which contributed 17 percentage points to operating profit growth. The declaration and payment of future dividends are at the discretion of the Board of Directors. Differences between estimated expense and actual incentive costs are normally insignificant and are recognized in earnings in the period such differences are determined. Either independently or in conjunction with third parties, ESSA makes, markets, distributes and sells a number of leading snack food brands including Lay's, Walkers, Doritos, Cheetos and Ruffles, as well as many Quaker-branded cereals and snacks, through consolidated businesses as well as through noncontrolled affiliates.