Pepsi 2010 Annual Report Download - page 109
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Please find page 109 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.108 PepsiCo, Inc. 2010 Annual Report
Interest Expense Incurred in Connection with
DebtRepurchase
In the year ended December 25, 2010, we paid $672million in a
cash tender oer to repurchase $500 million (aggregate principal
amount) of our 7.90% senior unsecured notes maturing in2018.
As a result of this debt repurchase, we recorded a $178million
charge to interest expense, primarily representing the premium
paid in the tender oer.
Management Operating Cash Flow
Additionally, management operating cash flow is the primary
measure management uses to monitor cash flow performance.
This is not a measure defined by GAAP. Since net capital
spending is essential to our product innovation initiatives and
maintaining our operational capabilities, we believe that it is a
recurring and necessary use of cash. As such, we believe inves-
tors should also consider net capital spending when evaluating
our cash from operating activities.
2010 Net Revenue Growth Reconciliation
2010
Reported Net Revenue Growth 34%
Foreign Currency Translation (1)
Constant Currency Net Revenue Growth 33%
Operating Profit Reconciliation
2010 2009 Growth
Total Reported Operating Prot $ 8,332 $8,044 4%
Mark-to-Market Net Gains (91) (274)
Merger and Integration Charges 769 50
Restructuring and Impairment Charges – 36
Inventory Fair Value Adjustments 398 –
Venezuela Currency Devaluation 120 –
Asset Write-Off 145 –
Foundation Contribution 100 –
Total Core Operating Prot 9,773 7,856 24%
Impact of Other Corporate Unallocated 853 791
Core Division Operating Prot
$10,626 $8,647 23%
Foreign Currency Translation
0.5
Core Constant Currency Division
Operating Prot Growth
23%*
* Does not sum due to rounding
Net Income Attributable to PepsiCo Reconciliation
2010 2009 Growth
Reported Net Income
Attributable to PepsiCo
$6,320 $5,946 6%
Mark-to-Market Net Gains (58) (173)
Restructuring and Impairment Charges – 29
Merger and Integration Charges 648 44
Gain on Previously Held Equity Interests (958) –
Inventory Fair Value Adjustments 333 –
Venezuela Currency Devaluation 120 –
Asset Write-Off 92 –
Foundation Contribution 64 –
Debt Repurchase 114 –
Core Net Income Attributable to PepsiCo $6,675 $5,846 14%
Net Cash Provided by Operating Activities Reconciliation
2010 2009 Growth
Net Cash Provided by Operating Activities $ 8,448 $ 6,796 24%
Capital Spending (3,253) (2,128)
Sales of Property, Plant and Equipment 81 58
Management Operating Cash Flow 5,276 4,726
Discretionary Pension and Retiree
Medical Contributions (after-tax)
983 640
Payments Related to 2009
Restructuring Charges (after-tax)
20 168
Merger and Integration Payments (after-tax) 299 49
Foundation Contribution (after-tax) 64 –
Debt Repurchase (after-tax) 112 –
Capital Investments Related to
the PBG/PAS Integration
138 –
Management Operating Cash Flow
Excluding above Items
$ 6,892 $ 5,583 23%
Reconciliation of GAAP and Non-GAAP Information
(continued)