Pepsi 2011 Annual Report Download - page 51

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In 2011 and 2010, management operating cash ow was used
primarily to repurchase shares and pay dividends. In 2009, manage-
ment operating cash ow was used primarily to pay dividends. We
expect to continue to return management operating cash ow to
our shareholders through dividends and share repurchases while
maintaining credit ratings that provide us with ready access to
global and capital credit markets. However, see “Our borrowing
costs and access to capital and credit markets may be adversely
aected by a downgrade or potential downgrade of our credit rat-
ings.” in “Our Business Risks” for certain factors that may impact our
operating cash ows.
Any downgrade of our credit ratings by a credit rating agency,
especially any downgrade to below investment grade, could
increase our future borrowing costs or impair our ability to access
capital and credit markets on terms commercially acceptable to
us, or at all. In addition, any downgrade of our current short- term
credit ratings could impair our ability to access the commercial
paper market with the same exibility that we have experienced
historically, and therefore require us to rely more heavily on more
expensive types of debt nancing. See “Our borrowing costs and
access to capital and credit markets may be adversely aected by
a downgrade or potential downgrade of our credit ratings.” in “Our
Business Risks” and Note 9.
Credit Facilities and Long- Term Contractual Commitments
See Note 9 for a description of our credit facilities and long- term
contractual commitments.
O- Balance-Sheet Arrangements
It is not our business practice to enter into o- balance-sheet
arrangements, other than in the normal course of business.
Additionally, we do not enter into o- balance-sheet transactions
specically structured to provide income or tax benets or to avoid
recognizing or disclosing assets or liabilities. See Note 9.
Management’s Discussion and Analysis
PepsiCo, Inc.  Annual Report
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