Pepsi 2010 Annual Report Download - page 107
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Please find page 107 of the 2010 Pepsi annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Five-Year Summary (unaudited)
106 PepsiCo, Inc. 2010 Annual Report
2010 2009 2008 2007 2006
Net revenue $57,838 $43,232 $43,251 $39,474 $35,137
Net income attributable to PepsiCo $ 6,320 $ 5,946 $ 5,142 $ 5,658 $ 5,642
Net income attributable to PepsiCo per common share − basic $ 3.97 $ 3.81 $ 3.26 $ 3.48 $ 3.42
Net income attributable to PepsiCo per common share − diluted $ 3.91 $ 3.77 $ 3.21 $ 3.41 $ 3.34
Cash dividends declared per common share $ 1.89 $ 1.775 $ 1.65 $ 1.425 $ 1.16
Total assets $68,153 $39,848 $35,994 $34,628 $29,930
Long-term debt $19,999 $ 7,400 $ 7,858 $ 4,203 $ 2,550
Return on invested capital(a) 19.3% 27.2% 25.5% 28.9% 30.4%
(a) Return on invested capital is dened as adjusted net income attributable to PepsiCo divided by the sum of average common shareholders’ equity and average total
debt. Adjusted net income attributable to PepsiCo is dened as net income attributable to PepsiCo plus net interest expense after-tax. Net interest expense after-tax
was $534million in 2010, $211million in 2009, $184million in 2008, $63million in 2007 and $72million in 2006.
• Includes restructuring and impairment charges of:
2009 2008 2007 2006
Pre-tax $ 36 $ 543 $ 102 $ 67
After-tax $ 29 $ 408 $ 70 $ 43
Per share $0.02 $0.25 $0.04 $0.03
• Includes mark-to-market net (income)/expense of:
2010 2009 2008 2007 2006
Pre-tax $ (91) $ (274) $ 346 $ (19) $ 18
After-tax $ (58) $ (173) $ 223 $ (12) $ 12
Per share $(0.04) $(0.11) $0.14 $(0.01) $0.01
• In 2010, we incurred merger and integration charges of $799million related to our acquisitions of PBG and PAS, as well as advisory fees in connection with our
acquisition of WBD. In addition, we recorded $9million of merger-related charges, representing our share of the respective merger costs of PBG and PAS. In total,
these costs had an after-tax impact of $648million or $0.40 per share.
• In 2010, in connection with our acquisitions of PBG and PAS, we recorded a gain on our previously held equity interests of $958million ($0.60 per share), comprising
$735million which is non-taxable and recorded in bottling equity income and $223million related to the reversal of deferred tax liabilities associated with these
previously held equity interests.
• In 2010, we recorded $398million ($333million after-tax or $0.21 per share) of incremental costs related to fair value adjustments to the acquired inventory and other
related hedging contracts included in PBG’s and PAS’s balance sheets at the acquisition date.
• In 2010, we recorded a one-time $120million net charge ($120million after-tax or $0.07 per share) related to our change to hyperinationary accounting for our
Venezuelan businesses and the related devaluation of the bolivar.
• In 2010, we recorded a $145million charge ($92million after-tax or $0.06 per share) related to a change in scope of one release in our ongoing migration to
SAPsoftware.
• In 2010, we made a $100million ($64million after-tax or $0.04 per share) contribution to The PepsiCo Foundation Inc., in order to fund charitable and social programs
over the next several years.
• In 2010, we paid $672million in a cash tender offer to repurchase $500million (aggregate principal amount) of our 7.90% senior unsecured notes maturing in 2018.
As a result of this debt repurchase, we recorded a $178million charge to interest expense ($114million after-tax or $0.07 per share), primarily representing the premium
paid in the tender offer.
• In 2009, we recognized $50million of merger-related charges related to our acquisitions of PBG and PAS, as well as an additional $11million of costs in bottling equity
income representing our share of the respective merger costs of PBG and PAS. In total, these costs had an after-tax impact of $44million or $0.03 per share.
• In 2008, we recognized $138million ($114million after-tax or $0.07 per share) of our share of PBG’s restructuring and impairment charges.
• In 2007, we recognized $129million ($0.08 per share) of non-cash tax benets related to the favorable resolution of certain foreign tax matters. In 2006, we recognized
non-cash tax benets of $602million ($0.36 per share) primarily in connection with the IRS’s examination of our consolidated income tax returns for the years 1998
through 2002.
• On December 30, 2006, we adopted guidance from the FASB on accounting for pension and other postretirement benets which reduced total assets by
$2,016million, total common shareholders’ equity by $1,643million and total liabilities by $373million.