Venezuela Cost Pepsi $1.4 Billion In Charges

Pepsi (PEP) reported a massive $1.4 billion charge for its business in Venezuela, citing the country's uncertain currency, economy and political outlook.
On Tuesday,

It's another sign that Venezuela's skyrocketing inflation, confusing currency laws and plummeting economy are weighing down major U.S. companies.
Sales in Venezuela only make up 2% of Pepsi's revenue. In the third quarter, Pepsi's total revenue was $16.3 billion. By that math, Pepsi only got $326 million in sales from Venezuela while it took a $1.4
billion charge from its business there.
The one-time charge -- or "write down" -- helps the company offer investors more certainty about its future earnings.
A Pepsi spokesperson emphasized that it was a one-time accounting charge. Going forward, Pepsi will not take future charges on its Venezuela business.
That doesn't mean that Venezuelans won't get to drink Pepsi. The company will continue to do business there.
"Despite our change in the accounting for our Venezuela operations and the related accounting charges, we remain dedicated to serving the Venezuelan marketplace," Pepsi CEO Indra Nooyi said in a statement.