Pepsi 2011 Annual Report Download - page 43

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Total Net Revenue and Operating Profit
Change
2011 2010 2009 2011 2010
Total net revenue $ 66,504 $ 57,838 $ 43,232 15% 34%
Operating prot
FLNA $ 3,621 $ 3,376 $ 3,105 7% 9%
QFNA 797 741 781 8% (5)%
LAF 1,078 1,004 904 7% 11%
PAB 3,273 2,776 2,172 18% 28%
Europe 1,210 1,054 948 15% 11%
AMEA 887 708 700 25% 1%
Corporate Unallocated
53rd week (18) – – n/m –
Mark- to-market net impact (losses)/gains (102) 91 274 n/m (67)%
Restructuring and impairment charges (74) – – n/m –
Merger and integration charges (78) (191) (49) (59)% 284%
Venezuela currency devaluation – (129) – n/m n/m
Asset write- o – (145) – n/m n/m
Foundation contribution – (100) – n/m n/m
Other (961) (853) (791) 13% 8%
Total operating prot $ 9,633 $ 8,332 $ 8,044 16% 4%
Total operating prot margin 14.5% 14.4% 18.6% 0.1 (4.2)
n/m represents year- over-year changes that are not meaningful.
2011
On a reported basis, total operating prot increased 16% and oper-
ating margin increased 0.1percentage points. Operating prot
growth was primarily driven by the net revenue growth, partially
oset by higher commodity costs. Items aecting comparability (see
“Items Aecting Comparability”) contributed 10percentage points
to the total operating prot growth and 1.2percentage points to the
total operating margin increase.
2010
On a reported basis, total operating prot increased 4% and oper-
ating margin decreased 4.2percentage points. Operating prot
performance was impacted by items aecting comparability (see
“Items Aecting Comparability”), which reduced operating prot by
21percentage points and contributed 2.9percentage points to the
total operating margin decline. Operating prot performance also
reects the incremental operating results from our acquisitions of
PBG and PAS.
Other Consolidated Results
Change
2011 2010 2009 2011 2010
Bottling equity income − $ 735 $ 365 $ (735) $ 370
Interest expense, net $ (799) $ (835) $ (330) $ 36 $ (505)
Annual tax rate 26.8% 23.0% 26.0%
Net income attributable to PepsiCo $ 6,443 $ 6,320 $ 5,946 2% 6%
Net income attributable to PepsiCo per common share — diluted $ 4.03 $ 3.91 $ 3.77 3% 4%
53rd week (0.04) − −
Mark- to-market net impact losses/(gains) 0.04 (0.04) (0.11)
Restructuring and impairment charges 0.18 − 0.02
Gain on previously held equity interests − (0.60) −
Merger and integration charges 0.17 0.40 0.03
Inventory fair value adjustments 0.02 0.21 −
Venezuela currency devaluation − 0.07 −
Asset write- o − 0.06 −
Foundation contribution − 0.04 −
Debt repurchase − 0.07 −
Net income attributable to PepsiCo per common share — diluted, excluding above items* $ 4.40 $ 4.13** $ 3.71 7% 12%
Impact of foreign currency translation (1) 1
Growth in net income attributable to PepsiCo per common share — diluted, excluding
above items, on a constant currency basis* 5%** 12%**
* See “Non- GAAP Measures”
** Does not sum due to rounding
Management’s Discussion and Analysis
PepsiCo, Inc.  Annual Report
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