Other Expense (Income), Net
The table below details the components of other expense (income), net for the years ended December 31, 2013, 2012 and 2011 (in millions): |
| | | | | | | | | | | |
| For the Year Ended December 31, |
| 2013 | | 2012 | | 2011 |
Indemnity expense (income) from Mondelēz | $ | 387 |
| | $ | (9 | ) | | $ | (11 | ) |
Other | (4 | ) | | — |
| | (1 | ) |
Other expense (income), net | $ | 383 |
| | $ | (9 | ) | | $ | (12 | ) |
The Company has historically recorded indemnification income from Mondelēz under the Tax Indemnity Agreement as other expense (income), net in the Consolidated Statements of Income. During the year ended December 31, 2013, the IRS concluded an audit which included separation-related items and, as a result, the Company recognized $430 million of other expense, net, as DPS no longer anticipates collecting amounts from Mondelēz. For the year ended December 31, 2013, this amount was partially offset by a $38 million non-cash reduction of the Company's long-term liability to Mondelēz as a result of a bill enacted by the Canadian government which reduced amounts amortized for income tax purposes. Refer to Note 12 for additional information on the conclusion of the IRS audit.
