PepsiCo prevailed in U.S. Tax Court in a $363 million dispute with the Internal Revenue Service over the company's use of hybrid securities, a dispute that touches on the issues involved with corporate cash held overseas.

PepsiCo established a home base in Netherlands in the '90s for its operations in Eastern Europe and Asia, then issued hybrid securities that were treated as debt in the Netherlands and equity in the U.S. The IRS argued that the Dutch unit's payments to the parent company were interest payments subject to corporate taxes, and hit PepsiCo with a bill for unpaid taxes. But the Tax Court called Pepsi's moves "legitimate tax planning."

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