Pepsi Bottling Group (PBG)

Foreign Currency Gains and Losses and Currency Translation – We translate the balance sheets of our foreign subsidiaries at the exchange rates in effect at the balance sheet date, while we translate the statements of operations at the average rates of exchange during the year. The resulting translation adjustments of our foreign subsidiaries are included in accumulated other comprehensive loss, net of noncontrolling interests on our Consolidated Balance Sheets. Transactional gains and losses arising from the impact of currency exchange rate fluctuations on transactions in foreign currency that is different from the local functional currency are included in other non-operating expenses (income), net in our Consolidated Statements of Operations.

Foreign Currency Gains and Losses and Currency Translation – We translate the balance sheets of our foreign subsidiaries at the exchange rates in effect at the balance sheet date, while we translate the statements of operations at the average rates of exchange during the year. The resulting translation adjustments of our foreign subsidiaries are included in accumulated other comprehensive loss, net of minority interest on our Consolidated Balance Sheets. Transactional gains and losses arising from the impact of currency exchange rate fluctuations on transactions in foreign currency that is different from the local functional currency are included in other non-operating expenses (income), net in our Consolidated Statements of Operations.

Foreign Currency Gains and
Losses and Currency Translation – We
translate the balance sheets of our foreign subsidiaries at the
exchange rates in effect at the balance sheet date, while we
translate the statements of operations at the average rates of
exchange during the year. The resulting translation adjustments
of our foreign subsidiaries are included in accumulated other
comprehensive loss, net of minority interest on our Consolidated
Balance Sheets. Transactional gains and losses arising from the
impact of currency exchange rate fluctuations on transactions in
foreign currency that is different from the local functional
currency are included in other non-operating expenses (income),
net in our Consolidated Statements of Operations.

Foreign Currency Gains and Losses and Currency Translation – We translate the balance sheets of our foreign subsidiaries at the exchange rates in effect at the balance sheet date, while we translate the statements of operations at the average rates of exchange during the year. The resulting translation adjustments of our foreign subsidiaries are included in accumulated other comprehensive loss, net of minority interest on our Consolidated Balance Sheets. Transactional gains and losses arising from currency exchange rate fluctuations on transactions in foreign currency that is different from the local functional currency are included in net other non-operating (income) expenses on our Consolidated Statements of Operations. Foreign currency gains and losses reflect both transactional gains and losses in our foreign operations, as well as translational gains and losses arising from the re-measurement into U.S. dollars of the net monetary assets of businesses in highly inflationary countries. Beginning January 1, 2006, Turkey was no longer considered to be a highly inflationary economy for accounting purposes.

Foreign Currency Gains and
Losses and Currency Translation – We
translate the balance sheets of our foreign subsidiaries at the
exchange rates in effect at the balance sheet date, while we
translate the statements of operations at the average rates of
exchange during the year. The resulting translation adjustments
of our foreign subsidiaries are included in accumulated other
comprehensive loss, net of minority interest on our Consolidated
Balance Sheets. Transactional gains and losses arising from
currency exchange rate fluctuations on transactions in foreign
currency that is different from the local functional currency
are included in net other non-operating (income) expenses on our
Consolidated Statements of Operations. Foreign currency gains
and losses reflect both transactional gains and losses in our
foreign operations, as well as translational gains and losses
arising from the re-measurement into U.S. dollars of the
net monetary assets of businesses in highly inflationary
countries. Beginning January 1, 2006, Turkey was no longer
considered to be a highly inflationary economy for accounting
purposes.