In its latest financial reports, Purchase, N.Y.-based PepsiCo Inc. announced that reported net revenue declined 1.9 percent for the third quarter. Foreign exchange translation and the Venezuela deconsolidation each had a 3-percentage-point unfavorable impact on reported net revenue, it adds. Organic revenue, which excludes the impacts of foreign exchange translation and structural changes, grew 4.2 percent.

Reported gross margin expanded 40 basis points and reported operating margin expanded 895 basis points. Reported operating margin expansion in the current year benefited from the 2015 Venezuela impairment charges. Effective as of the end of the third quarter of 2015, PepsiCo began accounting for its investments in its wholly-owned Venezuelan subsidiaries and joint venture using the cost method of accounting and deconsolidated assets and liabilities of its wholly-owned Venezuelan subsidiaries from its consolidated balance sheet, it explains. Impairment charges of $1.4 billion were recognized in the third quarter of 2015 to reduce the carrying value of these investments. These charges had no corresponding tax benefit.

For its North America Beverages (NAB) division, PepsiCo stated that it was positively impacted by productivity gains and lower raw material costs, partially offset by operating cost inflation, a pension-related settlement in the prior year (5 percentage points) and higher advertising and marketing expenses.

Year-to-date, reported net revenue declined 2.7 percent. Foreign exchange translation had a 4-percentage-point unfavorable impact and the Venezuela deconsolidation had a 2.5-percentage-point unfavorable impact on the reported net revenue change. Organic revenue, which excludes the impacts of foreign exchange translation and structural changes, grew 3.7 percent.

Year-to-date for NAB, the division has positively been impacted by productivity gains, lower raw material costs and favorable settlements of promotional spending accruals and insurance adjustments, partially offset by operating cost inflation, a pension-related settlement in the prior year (2 percentage points) and higher advertising and marketing expenses.

"We are pleased with our results for the third quarter and year to date. We are executing our strategy well and managing what is in our control. Our product portfolio, geographic mix and capability centers are enabling us to deliver balanced revenue and productivity," Chairman and Chief Executive Officer Indra Nooyi said in a statement. "Based on our year-to-date performance and our outlook for the fourth quarter, we are raising our full-year core constant currency EPS growth objective."

Because PepsiCo's fiscal year ends on the last Saturday of each December, an additional week of results is accounted for every five or six years. PepsiCo's 2016 fiscal year will include 53 weeks of results.